FSC to heed advice after US criticism

By Crystal Hsu  /  Staff reporter

Fri, Mar 07, 2014 - Page 13

The Financial Supervisory Commission (FSC) said yesterday it welcomes foreign investment, but that it would protect the rights of employees and customers.

The commission made the statement after the US trade agenda for this year criticized Taiwan’s investment climate as lacking the transparency and predictability necessary to attract foreign investment, especially in financial services.

This has led to rejections of investment deals, excessive delays and a low levels of investment in the private equity sector, the US trade agenda said.

The White House impression reflected the complaints of the American Chamber of Commerce (AmCham) in Taipei, which said in its latest position paper that Taiwan lags far behind Thailand, Vietnam, Indonesia, Hong Kong and Singapore in attracting foreign investment.

In June 2012, the Investment Commission rejected US private equity fund Orion Investment Co’s bid for Yageo Corp (國巨), the nation’s biggest maker of passive components used in electronic devices, a move that AmCham private equity committee chairman William Bryson said last year had ended hopes of another 10 or 11 investment deals valued at about US$20 billion.

Last year, Taiwan ranked second to last among 17 Asian countries in attracting private equity fund investment, behind Sri Lanka and ahead only of Pakistan, the AmCham report said.

AmCham issued a press statement on Jan. 26 to praise a series of deregulations for financial institutes.

The commission yesterday said it would heed the US trade group’s advice when formulating criteria for assessing investment proposals.

It said it would also help improve communication with the US government through bilateral investment task forces.