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Malaysia to allow Taiwan insurers

The Ministry of Economic Affairs yesterday said Malaysia has agreed to allow Taiwan's insurance companies to set up representative offices in the country.

The agreement was reached during a Tuesday meeting between Minister of Economic Affairs Lin Yi-fu (林義夫) and Malaysian International Trade and Industry Minister Datuk Seri Rafidah Aziz in Kuala Lumpur, according to a statement released by the ministry.

The representative offices would only be permitted to collect information and conduct market surveys to better understand Malaysian markets. The ministry statement failed to clarify if or when insurers would be allowed to conduct business there.

In addition, Taiwan-based reinsurance companies will also be able to set up branches in Malaysia, the ministry said.

Leading a delegation consisting of officials and business leaders, Lin arrived in Penang, Malaysia, on Sunday and left for Thailand yesterday as part of a mission to promote Taiwanese investments in all SouthEast Asian countries other than China. The trip was also scheduled to include talks on free trade after China signed an agreement on Nov. 4 with the 10 ASEAN members, including Malaysia and Thailand, to set up a free-trade zone by 2010.

Minister Lin, however, had little luck with the free-trade talks because Malaysia refused to talk with Taiwan independently and instead referred Lin to the ASEAN Secretariat, according to the ministry.

Taiwan, fearing economic marginalization by China, is working hard to sign Free Trade Agreements with ASEAN countries.

So far, Taiwan's efforts to muster interest in trade pacts have failed after Japan, Singapore, New Zealand, Thailand and Malaysia have reportedly delayed talks with Taiwan -- after pressure from China.

Pundits in Taiwan yesterday also poured cold water on the economic minister's efforts, saying that the chances for ASEAN countries to sign a free-trade pact with Taiwan are low given China's political interference.

"Taiwan may not succeed in its efforts because these countries -- disadvantaged politically and militarily -- may be attracted to China's large market and surrender to China's political will," Wu Chung-chi (吳忠吉), an economics professor from National Taiwan University, told the Taipei Times yesterday.
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