Public investments have declined for five years in a row at an average rate of 5.6 percent annually, leading to the nation’s anemic growth in fixed investments, the Ministry of Economic Affairs said in a report.
Public investment usually accounts for 20 percent of the nation’s fixed investment, while private investment constitutes 80 percent, according to data released by the ministry on Monday.
After the international financial crisis, Taiwanese high-tech companies have since 2010 significantly expanded their capital expenditure as global orders flowed in, the report said.
However, the nation’s fixed investments remained weak over the past five years.
From 2010 to last year, fixed investments grew a mere 0.9 percent annually on average.
During the same period, private investment grew by an average of 2.7 percent, while public investment fell by an average of 5.6 percent, the report showed.
Last year alone, fixed investments dipped 0.77 percent year-on-year from NT$3.48 trillion to NT$3.46 trillion.
Private investment rose 0.85 percent to NT$2.83 trillion from a year earlier, while its public counterpart shrank 5.2 percent to NT$624.1 billion.
Little investment in new public infrastructure projects, government deficits and the privatization of state-owned enterprises have contributed to the slump in public investment, the ministry said.
On the other hand, private investment benefited from a growing information technology and electronics business, boosting investment in the manufacturing sector.
The manufacturing sector accounted for more than 40 percent of the nation’s fixed investments in 2014, which was higher than South Korea’s 33.9 percent and Japan’s 16.1 percent, the report showed.
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
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to