After President Chen Shui-bian (陳水扁) announced that he would pursue an "active management, effective opening" stance toward cross-Taiwan Strait trade policy in his New Year speech, analysts appeared unimpressed with the changes, saying that the announcement would not make much of an impact on the local bourse.
"This could hint at a slowdown in the pace of cross-strait opening," said Yu Huei-ling (于蕙玲), president of Jih Sun Securities Investment Trust Co (日盛證券投信).
"Since the market anticipated a slow-down in cross-strait relaxations after the [Dec. 3] local government elections, the policy change may not have such a negative effect on local stocks," she added.
The market had earlier predicted that Chen would announce a more relaxed policy toward China. Therefore analysts said the stock market may experience some selling pressure early in the session today, but the market may return to focus on fundamentals as investors still favor electronics shares during the holiday season.
The benchmark TAIEX, which closed at 6,548.34 on Friday, is expected to fluctuate within a narrow band between 6,300 points and 6,500 points before the Lunar New Year holiday, Yu said.
During the speech, Chen said, "The complexity of cross-strait economic and trade policy-making should not be simplified into either `opening up' or `tightening up'; nor should `active opening' be given too much emphasis while neglecting the more important `effective management'."
Business leaders are concerned Chen's remarks may spark further speculation on the possibility of increased tightening up of regulations, but an economist said the president's announcement would not necessarily lead to any more restrictions.
"It is necessary to review cross-strait policy, because the current system only seems to constrain law-abiding companies, but does nothing about those who dodge the legal restrictions," said Kung Ming-hsin (龔明鑫), a department director at the Taiwan Institute of Economic Research.
"Policy cannot be to every group's benefit ? but it is necessary for the government to achieve a balance of interests that is beneficial for all concerned parties," Kung said.
Kung hoped the government could come up with explicit and consensus-based management principles via constructive discussions with the business community, academia and the opposition parties, so that people and enterprises have clear rules to follow.
Business leaders said they still want the government to lift cross-strait barriers for the sake of competitiveness. They called on the government to adhere to the path of opening-up, and to implement its `effective opening' plan as it had promised.
Luo Huai-jia (羅懷家), executive director of the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA, 電電公會), said the government should allow Taiwanese companies to leverage their advantages to help sharpen their competitive edge, in a bid to catch up with the region rising stars, LG Electronics and Samsung Electronics Co, as China has become the second-most significant market worldwide.
According to the organization, TEEMA represents over 4,000 companies.
The government should at least carry out what it has promised, like granting the applications by Powerchip Semiconductor Corp (力晶半導體) and ProMOS Technology Inc (茂德科技) to relocate their old, eight-inch wafer
manufacturing facilities to China, Lo said.
Powerchip and ProMOS applied to manufacture memory chips in China about a year ago, after the government said three years ago that they would give permission to three Taiwanese chipmakers to make low-end 0.25-micron chips
in China. The applications are still pending before the National Security Council gives them a green light, the Minister of Economic Affairs Ho Mei-yueh (何美玥) said last week.
Lo urged the government for further relaxation, like allowing investment by chip packaging and testing firms and small-sized flat-panel makers across the strait, as well as the investment cap of 40 percent of listed companies’net value and direct freight and passenger links.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day