Wed, Oct 05, 2016 - Page 11 News List

Taiwan Business Quick Take

Staff writer

FINANCIAL

Fubon unveils fintech plan

Fubon Financial Holding Co (富邦金控) yesterday outlined plans focusing development on big data, blockchain and robo-advisory services as part of the conglomerate’s strategy to adapt to the expected proliferation of financial technology (fintech). Due to a lack of long-term development, Taiwan relies on foreign software solutions in the field, said Eric Lee (李相臣), chief of Fubon’s fintech innovation office, adding that domestic development would lead to job growth, as well as cultivate local talent. To minimize exposure, the company will prioritize credit ratings, risk management and information security before pursuing market growth, Lee said.

TOBACCO

Cigarette tax plan drafted

A joint policy meeting of executive and legislative branch officials on Monday resulted in the drafting of a proposal to raise the cigarette tax by NT$20 (US$0.64) per pack, Cabinet spokesman Hsu Kuo-yung (徐國勇) said. The new measure, which is to be finalized by the legislature, is expected to increase tax revenue by NT$15.8 billion per year, Hsu said, adding that the government would use the income to fund a long-term care program for seniors and the physically challenged. A pack of cigarettes is currently taxed NT$11.8 plus a NT$20 surcharge. The surcharge is to remain the same in the latest proposal, Hsu said, adding that policymakers decided to increase the tax, but not the surcharge, because the tax would better ensure a stable source of funding for the long-term care program.

BANKING

Overseas branches see loss

Overseas branches of domestic banks in August reported a net loss of NT$3.74 billion, dragged down by a massive fine levied against Mega International Commercial Bank’s (兆豐銀行) New York branch for breaches of US money laundering rules. The state-run bank paid the US$180 million fine in August. In June, overseas branches recorded net income of NT$2.34 billion. Overall, domestic banks saw their earnings dip 20.7 percent month-on-month and 13 percent year-on-year to NT$21.66 billion in August. In the first eight months of this year, domestic banks reported that earnings fell 4.1 percent year-on-year to NT$214.26 billion, data from the Financial Supervisory Commission’s Banking Bureau showed.

ENTERTAINMENT

XPEC calls for rating change

XPEC Entertainment Inc (樂陞科技) yesterday appealed to the Taipei Exchange to remove a full-cash delivery rating that was placed on the company’s shares. The company’s shares, which have been on a precipitous tumble since August following a botched tender offer, yesterday continued to drop by the daily 10 percent limit to NT$27.45. The company said that without a resumption of regular trading, shareholders’ interests would be harmed.

MACHINERY

Global PMX revenue rises

Global PMX Co Ltd (智伸科), a supplier of precision machinery processing services, reported revenue of NT$299.6 million for last month, up by 28.7 percent from a year earlier, backed by strong demand for automotive safety components and medical equipment. From January through last month, total revenue increased 16.2 percent from the same period last year. The company expects revenue to grow further in the fourth quarter, as its major customers’ demand remains strong, the firm said in a statement yesterday.

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