Thu, Nov 26, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer

ASIA-PACIFIC

S&P forecasts 5.3% growth

Standard & Poor’s Ratings Services (S&P) yesterday projected economic growth of 5.3 percent in the Asia-Pacific region next year and 5.2 percent for 2017, as strong consumer demand offsets the slower growth in exports and productivity in the region. As for emerging Asia, the ratings agency predicted growth of about 6 percent each for next year and in 2017. “India has overtaken China as the region’s growth leader, at least for now,” S&P said in a report. GDP growth for the so-called “Tiger” economies — Taiwan, Hong Kong, Singapore and South Korea — is forecast to show a modest recovery in the next two years, with growth remaining below 3 percent, S&P said. However, growth in the Asia-Pacific region in the next two years will still be better than that in the rest of the global economy, the report said.

MACROECONOMY

Money supply increases

Annual growth of the M1B and M2 money supply increased last month mainly due to continued net foreign capital outflows, the central bank said on Tuesday. M1B, a narrow measure of the amount of money in circulation, last month rose 6.75 percent from a year earlier, while the broader M2 monetary measurement — which includes M1B, time deposits, foreign currency deposits and mutual funds — increased 6.58 percent, the bank said in its monthly report. That compares with annual growth rates of M1B and M2 at 6.62 percent and 6.5 percent respectively in September. For the first 10 months, the average annual growth rates of M1B and M2 were 6.01 percent and 6.4 percent respectively, the bank said.

AUTOMakers

Tax bill may spur sales

If an amendment to the Commodity Tax Act (貨物稅條例) passes its third reading at the Legsislative Yuan by the end of this year, it could motivate motorists to replace their old vehicles and increase new car sales in Taiwan by about 250,000 units in the next five years, Yulon Nissan Motor Co (裕隆日產) chairman Tsay Wen-rong (蔡文榮) said yesterday at an investors’ conference. The revision bill aims to trim commodity tax by up to NT$50,000 per vehicle for new car and motorcycle buyers in exchange of either exporting or discarding their used vehicles. Next year, the nation’s new car sales may grow to between 460,000 and 470,000 units — the highest level since 2004 — from about 410,000 units this year, Tsay said.

FINANCE

Merger amendment passes

An amendment to the Financial Institution Merger Act (金融機構合併法) passed its third reading on Tuesday at the Legislative Yuan. The amendment increases the incentives for financial institutions to conduct merger and acquisition (M&A) activities. Under the amended law, in addition to newly issued shares, surviving institutions or newly incorporated institutions may use shares of other institutions, cash or other property of different types or in different proportion as consideration to the shares held by the shareholders of the dissolved institutions. The law also provides tax incentives related to mergers of financial institutions by exempting them from securities transaction tax and business tax, while the land value increment tax of lands owned by dissolved institutions may be deferred until the lands are transferred. Moreover, the period to amortize the goodwill generated due to mergers will be extended from five years to 15 years.

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