While society at large was busy discussing the issue of card abusers -- people who are unable to handle their credit card debt -- the Association for Knowledge Development, the Economic Daily News and the Children's Hearing Foundation recently held a symposium to discuss the relaxation of regulations to allow state enterprises to invest in China. The association demanded that the government reduce its administrative interference and said it should transform the system for issuing permits to invest in China into a simple reporting system, allowing companies to evaluate and make the appropriate investment based on their own needs.
The idea that companies can evaluate risks on their own and that there is no need for government interference has increasingly taken hold in Taiwan. Fifteen years ago, working on this precept, the government allowed the establishment of 16 banks, which resulted in cutthroat competition in the banking sector.
After the establishment of all these private banks, businesspeople used this same argument to demand that the government reduce its meddling in the banking sector. That's how the idea that everyone should have two types of cards -- ?a credit card and a cash card (offering immediate loan approval and cash withdrawal at high interest rates) -- grew and came to dominate the banking business. Banks have tried to solve the problem with growing debt, which has snowballed into mammoth proportions. Now, they are asking the government to step in, but the damage has already been done.
According to newspaper reports, on Feb. 24, the Financial Supervisory Commission (FSC) called a meeting with the representatives of all banks in response to rising public concern over the problem of card abuse. An agreement was reached not to press low-income households for debt repayment within a specified time period and to complete all debt-related negotiations before March 5.
The interior ministry has set up a hotline for card-debt negotiation and another line for reporting use of inappropriate methods to collect debt. These measures are good examples of the importance the government places on this issue and how it is meeting its responsibilities. Regrettably, the government still hasn't prohibited banks from outsourcing debt recovery to outsiders.
Every country has problems with credit card debt. But why has it led to deaths in Taiwan, in effect making the credit card debt issue a killer?
An analysis of the cases that have resulted in deaths over the past few years shows that banks' practice of outsourcing debt recovery to be the main culprit. One might argue that this system is also practiced in other countries and ask why it hasn't led to similar problems in those places.
To answer this question, we have to look across the Strait. China, which shares a common language with Taiwan and is geographically close, offers a place where criminals and debt collectors can flee to or hide when necessary. This is something that doesn't exist in other countries.
China has all along been a dead end for Taiwan's crime fighters, and the closer our exchanges with China, the greater this problem will become and the more exhausted our anti-criminal agencies will be. Despite this, politicians in Taiwan use pro-unification media to disseminate their propaganda that cross-strait exchanges are an absolute economic positive. Maybe this is what people mean when they talk about Taiwan's tragedy?
The Taiwanese government has set clear regulations, such as the Rules for Outsourcing of Financial Services of Financial Institutions (金融機構作業委託他人處理應注意事項), on the handling of the outsourcing of debt collection. These clearly prohibit using inappropriate methods to recover debt. The question is how many debt collectors will respect these when faced with performance demands.
It used to be that banks approved and recovered credit themselves. To first let go of all these restrictions, and then pay to outsource debt recovery to outsiders is nothing but unbridled capitalism. It is not suited to the moral and ethical standards of the East, and even less so to Taiwan. We should rethink how to put an end to this situation.
Some experts may say that we cannot close down debt outsourcing just because of one hiccup. While there are many other things that can be outsourced, banks should handle debt recovery themselves as responsible businesses do. This is also the only way to improve the quality of credit and debt collection and solve the deadly credit-abuse problem.
The two-card idea and credit debt problem require "active management" just as investments in China do.
Huang Tien-lin is a national policy adviser to the president.
Translated by Perry Svensson
Recently, China launched another diplomatic offensive against Taiwan, improperly linking its “one China principle” with UN General Assembly Resolution 2758 to constrain Taiwan’s diplomatic space. After Taiwan’s presidential election on Jan. 13, China persuaded Nauru to sever diplomatic ties with Taiwan. Nauru cited Resolution 2758 in its declaration of the diplomatic break. Subsequently, during the WHO Executive Board meeting that month, Beijing rallied countries including Venezuela, Zimbabwe, Belarus, Egypt, Nicaragua, Sri Lanka, Laos, Russia, Syria and Pakistan to reiterate the “one China principle” in their statements, and assert that “Resolution 2758 has settled the status of Taiwan” to hinder Taiwan’s
Singaporean Prime Minister Lee Hsien Loong’s (李顯龍) decision to step down after 19 years and hand power to his deputy, Lawrence Wong (黃循財), on May 15 was expected — though, perhaps, not so soon. Most political analysts had been eyeing an end-of-year handover, to ensure more time for Wong to study and shadow the role, ahead of general elections that must be called by November next year. Wong — who is currently both deputy prime minister and minister of finance — would need a combination of fresh ideas, wisdom and experience as he writes the nation’s next chapter. The world that
Can US dialogue and cooperation with the communist dictatorship in Beijing help avert a Taiwan Strait crisis? Or is US President Joe Biden playing into Chinese President Xi Jinping’s (習近平) hands? With America preoccupied with the wars in Europe and the Middle East, Biden is seeking better relations with Xi’s regime. The goal is to responsibly manage US-China competition and prevent unintended conflict, thereby hoping to create greater space for the two countries to work together in areas where their interests align. The existing wars have already stretched US military resources thin, and the last thing Biden wants is yet another war.
As Maldivian President Mohamed Muizzu’s party won by a landslide in Sunday’s parliamentary election, it is a good time to take another look at recent developments in the Maldivian foreign policy. While Muizzu has been promoting his “Maldives First” policy, the agenda seems to have lost sight of a number of factors. Contemporary Maldivian policy serves as a stark illustration of how a blend of missteps in public posturing, populist agendas and inattentive leadership can lead to diplomatic setbacks and damage a country’s long-term foreign policy priorities. Over the past few months, Maldivian foreign policy has entangled itself in playing