Indicators stay much the same
Taiwan's index of leading economic indicators fell slightly in November from a month earlier, reflecting few changes are expected in the local economic climate in the short term, the Council for Economic Planning and Development (CEPD) said.
Out of the seven leading indicators, the year-on-year increase in export value improved over October, while the November growths in export orders, M1B money supply, stock prices, average monthly working hours in the manufacturing sector and housing start applications were down from the previous month.
In November, 14 percent of local manufacturers expected the economy to improve over the next three months, while 21 percent held a negative view, the CEPD said. It added 65 percent of the manufacturers expected the economy to maintain its current direction.
MOF to prolong bank takeover
The Ministry of Finance yesterday said it has decided to prolong the government's takeover of management of the debt-ridden Bank of Kaohsiung (高雄企銀) for another six months until June 27, 2003, as it hasn't been able to locate a potential buyer for the failed lender.
The ministry in late January instructed the Central Deposit Insurance Corp (CDIC, 中央存保) to take over the Bank of Kaohsiung, which operates 52 branches in Taiwan and reported a negative NT$3.8 billion in net assets last year. Central Deposit's stewardship came to an end yesterday, based on a ruling by the ministry's Financial Restructuring Fund (金融重建基金) committee.
Exports to China rose 33%
Taiwan's exports to China rose 33 percent in October from a year earlier to US$3.1 billion, the Board of Foreign Trade said. Imports from China rose 21 percent to US$732.5 million, it said.
In October, China accounted for 27 percent of Taiwan's overseas sales, the Board of Foreign Trade said.
In the first 10 months, Taiwan's exports to China rose 35 percent from a year earlier, making up 25 percent of the nation's overseas sales. Imports from China rose 31 percent.
Electricity to be deregulated
Taiwan authorities are planning to deregulate the local electricity industry next year, Wang Yunn-ming, deputy secretary general of the Energy Commission said yesterday.
"After parliament passes the electric power industry bill, the monopoly which state-owned Taiwan Power Co (Taipower, 台電) has enjoyed will be ended to open the market for competition," Wang said.
The bill will allow private power plant owners to build their own power delivery networks and sell power, Wang said. It also permits 100 percent foreign ownership in local power plants.
The bill has passed the first reading in the Legislature and will be forwarded for further review next month.
Local-currency bonds rise
Taiwan's local-currency bonds rose after the central bank pared its M2 money-supply growth forecast for next year to 5.5 percent from the maximum 8.5 percent projected for this year, signaling it expects sluggish business and consumer demand.
"There are few alternative investment targets now amid a sluggish stock market, and the lowering of the money-supply forecast shows that demand for capital is weak," said Samuel An, a bond trader at International Bills Finance Corp (國際票券).
NT dollar drops slightly
The New Taiwan dollar yesterday traded lower against its US counterpart, declining NT$0.01 to close at NT$34.878 on the Taipei foreign exchange market. Turnover was US$367 million, compared with the previous day's US$270 million.
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