Pan Tzu-yu and Frances Huang
Taipei, Taiwan, February 1, 2019
The volume of Approved Investment in Taiwan from countries targeted by the government’s New Southbound Policy (NSP) rose by more than 40% in 2018, according to data released by the Investment Commission under the Ministry of Economic Affairs.
The Commission said that the growth showed that the NSP has been successful in strengthening economic ties with countries under the Policy, attracting more foreign investment, thereby reducing dependence on China.
NSP (with 18 countries) was launched by the Democratic Progressive Party government after President Tsai Ing-wen took office in May 2016.
Among them are the 10 Member-countries of the Association of Southeast Asian Nations (ASEAN) along with Australia, New Zealand and South Asian countries including India.
Significant rise
According to the data, the Commission approved a total of US$ 392 million in investment from NSP countries in Taiwan in 2018, up 43.33% from a year earlier.
Growth in Approved Investment from Thailand, the Philippines and Australia increased 942 percent, 393% and 142% respectively, from a year earlier.
In terms of the number of deals, the Commission approved 643 investment applications from NSP countries in 2018, up 10.86% from a year earlier.
However, the value of Approved Investment applications from Taiwanese investors in NSP countries fell 34.7% from a year earlier to US$ 2.42 billion with the number of deals up more than 70% at 229, the data showed.
Some declines
The Commission said that the decline in investment value in NSP countries largely reflected a relatively high comparison base over the previous year, when Formosa Plastics Group secured a green light to invest US$ 590 million in Formosa Resources Australia PTY Ltd., and silicon wafer maker Globalwafers. Co was approved to invest US $300 million in Singapore.
In 2018, Approved Investments from China in Taiwan fell 12.97% from a year earlier to about US$ 230 million, while the number of Approved Investment applications from Chinese investors was 141, up about 1% from the previous year.
China-bound investment falls
Since Taiwan lifted a ban on investment from China at the end of June 2009, aggregate Approved Investment has reached US$ 2.18 billion in 1228 deals, the data showed.
China-bound investment from Taiwan approved by the Commission fell 8% from a year earlier to about US$ 850 million in 2018, the data showed.
The Commission said it was the fourth consecutive year of decline.
The Commission said Taiwanese investors secured approval to invest US$ 14.29 billion in overseas markets, excluding China, in 2018, up 23.51 percent from a year earlier with the number of the deals up almost 30% at 638.
Meanwhile, the amount of approved foreign investments in Taiwan rose 52% from a year earlier to US$ 11.44 billion, the Commission added.
Source: Enditem/AW through Taiwan-Asia Exchange Foundation, Taipei, Taiwan.
