|
 |
 |
Neighbourhood Competition |
| |
Taiwan's ranking has slipped slightly in the latest World Bank report on ease of doing business, dropping three places to 61st among global economies, though there is a good chance it will bounce back next year.
The World Bank's "Doing Business 2009" report ranks 181 world economies based on 10 indicators of business regulation, including the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes and closing a business.
Taiwan came in ninth out of 24 countries in the East Asia and Pacific region, ranked just behind Vanuatu and before Samoa in overall ease of doing business. The East Asia and Pacific region is a competitive group, with Singapore being the World Bank's top ranked economy worldwide, Hong Kong coming in fourth and Thailand 13th.
In part, Taiwan's dip in the rankings can be attributed to the zeal that other countries, especially those in the region, have shown in opening up their economies.
"Countries in the region are clearly committed to reform agendas," said Dahlia Khalifa, a co-author of the report. "Regardless of their stage of economic development, they are recognizing the role that regulatory reform can play in staying competitive while boosting entrepreneurship and job creation," she said in a briefing that accompanied the report.
The report shows that Taiwan did not raise barriers against doing business in the past year, but that the East Asia and the Pacific grouping had the greatest momentum among regions in reforming business regulations, with 24 economies making a total of 26 reforms. In total, the 181 countries canvassed in the report instituted 226 reforms between them.
Taiwan introduced one major reform in the 12 month-period ending June 30, having amended its civil code to make secured lending more flexible. Since September 2007, parties to a mortgage or pledge agreement have been allowed to set the loan amount as a maximum line of credit.
By comparison, mainland China is a long way from matching Taiwan in terms of liberalised regulation of conducting business, even though it is climbing up the rankings, having jumped seven places in this year's report to 83rd overall. China was the leading reformer in the region, implementing changes to regulations that made it easier to obtain credit, pay taxes and enforce contracts. It also lowered its corporate income tax rate from 33.3% to 25%, and unified the criteria and accounting methods for tax deductions.
Importantly for a country that relies heavily on foreign trade to sustain its economy, Taiwan was ranked 30th in the world for ease of cross border trading. The country also scored well for the time it takes to complete the procedures to close a business (11th), the processes required to register a business (26th) and the protection of investors' rights (70th).
However, Taiwan was evaluated less favourably for the steps and time required to open a business (119th), construction permits (127th) and - at the lowest end of the scale - the difficulties that employers face in hiring and firing workers (159th).
While Taiwan's standing may have slipped in this year's report, it is likely that next year the country will make up for lost ground, or indeed climb further up in the rankings. Since coming to office in May, President Ma Ying-jeou - having campaigned on a platform of revitalising the economy - has been pushing a programme of reforms intended to reduce red tape and facilitate business activities.
These reforms have included allowing Taiwanese companies with more than 40% of their net assets in China to make public offerings in their home market and easing restrictions on Chinese institutional investors to invest in Taiwan.
These reforms did not fall within the timeline of the World Bank report's June 30 cut-off date. In a report issued by Moody's Investment Services on September 10 entitled "Taiwan: 2008 Credit Analysis", the ratings agency said Taiwanese financial reforms could reinvigorate the economy.
"If financial sector reform initiatives are complemented with closers relations with the mainland, it could raise productivity and result in faster service-sector growth," the report stated.
In a move seen as trying to speed up the pace of those reforms as well as respond to the current global downturn, on September 18 Ma announced the formation of a special panel to study financial and economic issues and to advise the cabinet.
Vice President Vincent Siew, who will head up the group, said many expect the effects of the economic crisis, especially in the US, to be felt for up to two years.
"If we can use this time to speed up reform and build our economy, when the global economy recovers, we'll have the biggest opportunities," he told local media.
According to Siew, the most urgent issue for the government is to increase investment and stimulate domestic consumption, while in the medium to long term the plan is to implement deregulation and reform policies intended to build a healthier economic system in order to enhance Taiwan's position in the international community.
Ma's administration has been criticised for not doing more in its first four months in office to boost and streamline the economy, culminating in street protests in late August prompted by rising inflation and the slowing of economic growth. If anything, the current international financial crisis could serve to give greater incentive to the government to act on its campaign promises.
This article was provided courtesy of Oxford Business Group, a leading publisher of economic and political intelligence on the emerging markets of South East Europe, South East Asia, North Africa, the Levant and the Gulf. |
| |
|
|
|
|
|
|
Taiwan Business
 |
|
Busy Signal |
| |
Taiwan's crowded telecommunications sector is likely to get even more competitive in the coming months as rival firms strive to woo customers away from each other and launch new services, at a time of economic upheaval.
The telecommunications sector... |
 |
details
|
|
 |
|
Marketing Capital |
| |
Taiwan's main capital markets have felt the pinch of the global financial turmoil in 2008, with the stock market plunging in the second half of the year and bond yields approaching all-time-lows. However, the underlying strength of the economy... |
|
details
|
|
 |
|
Riding Out The Storm |
| |
Taiwan's computer industry is looking to shrug off the effects of the economic downturn in the US, hoping that new products and strong sales in other countries will take up the slack caused by the slowdown in the sector's... |
|
details
|
|
 |
|
Hot Times for Real Estate |
| |
Buoyed by incoming head of state Ma Ying-jeou's commitment to closer economic ties with mainland China, Taiwan's real estate sector is looking optimistically at the future.
While on the hustings for the March 22 election, Ma promised to improve... |
|
details
|
|
 |
|
Riding Out the Subprime Frenzy |
| |
Taiwan is confident it can ride out the worst effects of the US credit crisis and any slowing of the world's biggest economy, with its exposure to various markets providing a safety net.
On March 18, the cabinet-level Financial... |
|
details
|
|
 |
|
Steeling Itself For Higher Prices |
| |
Taiwan has responded to soaring international metals prices by announcing it will temporarily suspend exports of some processed steel products, with the possibility of extending the ban to include other items in the future.
On February 20, the Ministry... |
|
details
|
|
 |
|
Airlines Scaling Back |
| |
Taiwan's Civil Aeronautics Administration (CAA) on January 28 approved a request by UNI Airways to end flights by March 1 between the northern city of Taipei and the southern city of Kaohsiung. This is the third approval for flight... |
|
details
|
|
 |
|
Building Up Technology |
| |
On January 14 officials at the Central Taiwan Science Park (CTSP) said they anticipate the park's annual business revenue will reach almost $31bn in the next 10 years, up from a little over $8bn in 2007. They predicted that... |
|
details
|
|
 |
|
2007 Year In Review |
| |
The year 2007 was Chen Shui-bian's second and last term as the president of the Republic of China (Taiwan). Although Chen has made independence from mainlaind China a major theme for his Taiwanese Democratic Party (DPP) since his election... |
|
details
|
|
 |
|
HSBC takes over Chinese Bank |
| |
The competition for a larger piece of Taiwan's banking market has further heated up. The Central Deposit Insurance Corp (CDIC), which handles failed financial institutions in Taiwan, stated on December 14 that it will pay HSBC NT$47.49bn ($1.5bn) to... |
|
details
|
|
 |
|
Losing Ground |
| |
After decades of enjoying a reputation as one of Asia's strongest economic forces, Taiwan has received warning signals that its competitive edge is under pressure.
On November 5 the European Chamber of Commerce in Taipei (ECCT) presented its position... |
|
details
|
|
 |
|
Bright Forecast for LED |
| |
From its humble beginnings as a small light indicator in electrical devices such as hi-fis and clock radios, the light emitting diode (LED) has grown into a multi-application global industry of which Taiwan is keen to secure an even... |
|
details
|
|
 |
|
Assuring the Future |
| |
In Taiwan's highly competitive insurance market, foreign insurers are increasingly tapping bancassurance as a means of reaching out to customers. The model, which involves the selling of insurance products through a bank's branches, provides a mutually beneficial arrangement to... |
|
details
|
|
 |
|
Bio Full of Brio |
| |
Last month, the government reiterated its pledge to invest almost $610m of its National Development Fund in the development of biotechnology and said it would raise an additional $922m for a venture capital fund in the biotechnology business.
The... |
|
details
|
|
 |
|
Hi-Tech Edge |
| |
Taiwan ranks sixth in the world in terms of the competitiveness of its information technology (IT) industry, according to a white paper issued this month. "The means to compete: Benchmarking IT industry competitiveness" awarded Taiwan a score of 65.8... |
|
details
|
|
 |
|
Direct Flight Talks Resume |
| |
Chen Ming-tong, the chairman of the Mainland Affairs Council (MAC), the decision-making body on cross-Strait policy, said on June 21 that Taiwan and China would resume talks over lifting the ban on direct charter and cargo flights across the... |
|
details
|
|
 |
|
Fuelling the future |
| |
On May 24, CPC Corporation, Taiwan (CPC) and Taiwan Fertilizer announced they would form a join venture to produce ethanol fuel. W Pan, chairman of CPC, said the details of the joint venture would be formally announced in June.... |
|
details
|
|
 |
|
Fuelling the Future |
| |
On May 24, CPC Corporation, Taiwan (CPC) and Taiwan Fertilizer announced they would form a join venture to produce ethanol fuel. W Pan, chairman of CPC, said the details of the joint venture would be formally announced in June.... |
|
details
|
|
 |
|
Merging Markets |
| |
The Taiwan Stock Exchange announced on May 9 that it is planning to merge with the island's smaller exchange and futures market, GreTai. It is hoped this merger will increase efficiency and make it more attractive for companies to... |
|
details
|
|
 |
|
Airlines Looking Abroad |
| |
Taiwan's two biggest airlines, China Airlines and Eva Air, suffered first quarter losses at a time when there is increased domestic competition from the high speed train and a fall in cargo volumes.
In a filing to the Taiwan... |
|
details
|
|
 |
|
Mobile Taiwan |
| |
The government's M-Taiwan (mobile Taiwan) plan to build up wireless broadband technology looks set to push WiMAX to the top of the telecoms agenda in 2007. As the government hopes Taiwan can become a major centre for the development... |
|
details
|
|
 |
|
Rebar group financial debacle may speed up reforms |
| |
On January 4, two subsidiaries of Rebar Asia Pacific Group filed for bankruptcy protection, triggering a bank run on an affiliated bank. This has highlighted corporate governance concerns, in a sector where many investors see potential, and could increase... |
|
details
|
|
 |
|
High speed hope |
| |
On January 4, Taiwan\'s high-speed rail network opened to the public for the first time. Once fully completed, the train will take passengers from Taipei in the north to Kaohsiung, the island\'s second biggest city in the south, in... |
|
details
|
|
 |
|
Goal of $30,000 per capita GDP by 2015 |
| |
Taiwan is aiming for a per capita gross domestic product (GDP) of $30,000 by the year 2015. This would be double the $15,271 registered in 2005, according to a cabinet-hosted economic conference.
Meanwhile, the island will try to keep... |
|
details
|
|
 |
|
Chicago trade office opened |
| |
The government of Taiwan has reopened a trade office on Michigan Avenue in Chicago to seek business from Midwestern companies. The new Taiwan Trade Center at 225 N. Michigan, operated by the Taiwan External Trade Development Council, will work... |
|
details
|
|
|
|
|
|
