Both the IMF and HSBC yesterday revised up their forecasts for Taiwan’s GDP growth this year to more than 7 percent, which the Council for Economic Planning and Development (CEPD) attributed mainly to increasing domestic investment. \nThe IMF forecast that Taiwan’s economy would expand 7.7 percent this year, up from its previous estimate of 6.5 percent in April, while HSBC raised its prediction to 7.3 percent from 6.4 percent. Both are higher than the government’s forecast of 6.14 percent. \n“In the second half of this year, domestic investment and consumption will be the main drive for economic growth,” CEPD Minister Christina Liu (劉憶如) said, adding that the recently signed Economic Cooperation Framework Agreement (ECFA) with China would promote local service sectors and bring in more funds for domestic investment. \nLiu said the IMF’s upward revision of Taiwan’s GDP growth forecast for this year was the largest among all Asian economies, indicating that the international body was optimistic about its economic development in the second half. \nHSBC, meanwhile, said that with pay hikes sweeping China, Taiwan’s onshore business income tax rate cut to 17 percent from 20 percent and improving cross-strait relations that continue to boost onshore confidence, more Taiwanese businesses would likely return to the nation to invest in the second half of this year. \n“Given that Taiwan’s exports to Europe account for just 10 percent, while the share of exports to Asia is more than 60 percent, the Europe-Greece debt crisis is unlikely to have a huge impact on the export outlook,” the bank said. \nHSBC said that strong regional demand, particularly from China, would continue to support the nation’s exports in the coming quarters, adding that the ECFA would enhance Taiwan’s export competitiveness in the long term. \nCathay Financial Holdings Co (國泰金控) yesterday also adjusted its monthly GDP growth forecasts for Taiwan for May, last month and this month to 0.22 percent, 0.25 percent and 0.27 percent respectively. \nNevertheless, the financial company said that the pace of economic growth would gradually decelerate throughout the year, adding that there was a 50 percent chance that the economic climate would remain “cloudy” from next month to October. \nCathay Financial predicted that the economy would grow 0.18 percent next month, lower than its previous forecast of 0.19 percent, and 0.09 percent in September, compared with its estimate of 0.16 percent last month.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for