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Moving Backwards
Taiwan's long-held goal has been to develop itself into a regional financial center, especially for asset management and fundraising. Considerable progress was made toward that objective in recent years through liberalized regulations that allowed a fuller and freer flow of capital between Taiwan and global markets. International funds responded with greater attention to the Taiwan market, benefiting the country's increasingly sophisticated local consumers with wider investment choices.
Now much of that good work is in danger of being undone. Concerned about a weak New Taiwan dollar and mounting capital outflows (some US$11 billion in the first quarter of this year), the Central Bank and the Securities and Futures Bureau (SFB) of the Financial Supervisory Commission have been adopting a series of measures since May to slow down growth of the international fund business in Taiwan. Under the guise of voluntary "guidelines" worked out with the domestic trade association for the fund industry, the authorities are capping new mutual funds aimed at offshore investments at NT$10 billion (US$302 million) - and at NT$8 billion for second rounds of fundraising.
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Best Practices can be Learned at Home
BY RICHARD R. VUYLSTEKE
Service industries generate some 73% of Taiwan's GDP, but the primary driver of the economy continues to be its extraordinary prowess in high-tech manufacturing, including semiconductors, flat panel displays, and other IT/computer components. The range of available services is still relatively narrow compared with other developed economies, and they rarely exhibit the same high standards and international best practices as in the IT sector. As a result, Taiwan has a bifurcated economy not only in terms of business strength and vitality, but also in the quality of standards and performance.
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- MACROECONOMICS
CROSS-STRAIT
TAIWAN SEEKS RETURN OF PILOTS' REMAINS
DOMESTIC
PRESIDENTIAL ELECTION ACTIVITY HEATS UP
SIJHIH TRIO AGAIN GET DEATH SENTENCE
LY PASSES PORTION OF U.S. ARMS DEAL
INTERNATIONAL
OTHER COUNTRIES OPPOSE CHEN'S REFERENDUM PLAN
COSTA RICA SWITCHES DIPLOMATIC RELATIONS
TAIWAN GETS BETTER RATING REGARDING HUMAN TRAFFCIKING
BUSINESS
CARLYE TO INVEST IN DOMESTIC BANK
RUSSIA PASSES TAIWAN IN FOREX HOLDINGS
PENSION INVESTMENT COMMISSION FORMED
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*Indigestible Alphabet Soup
*ICRT Seeks Help with Upcoming Capital Cost
*The LY Sometimes Does More than Brawl
- By Don Shapiro
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Reinventing Kaohsiung
Taiwan's southern metropolis is now a much better place to live, with cleaner air and more open space. But with high-tech having taken over from heavy and chemical industries as the key driver of the economy, Kaohsiung needs to make the transformation to new sectors of business. Some progress has occurred, but will it be enough?
BY LIN MEI-CHUN
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