Nearly 300 financial companies plan to spend NT$3.032 billion (US$101.3 million) subsidizing domestic trips for employees from this month to the end of the year to help boost the economy, the Financial Supervisory Commission (FSC) said yesterday.
The 287 companies include 36 banks, 41 insurance companies, 68 securities brokerages, 39 securities investment trust firms, 84 securities investment consulting companies, 15 futures traders and four accounting firms, FSC Chairman Thomas Huang (黃天牧) said.
Banks plan to spend NT$1.36 billion, the highest among all industries, followed by insurers with NT$1.35 billion, securities companies with NT$185 million and accounting firms with NT$67 million, the commission said.
Photo: Wang Meng-lun, Taipei Times
A total of 600,000 employees are expected to benefit from the subsidies, Huang said.
Many firms had planned to organize overseas trips for their employees, or hold conferences and employee training courses abroad, Huang said.
In light of the nation’s stable epidemic situation compared with other countries, they have decided to hold these events domestically, he said.
Fubon Financial Holding Co (富邦金控) yesterday said it would spend NT$700 million on domestic travel and training programs for its 58,000 employees.
The company’s insurance unit, Fubon Life Insurance Co (富邦人壽), plans to spend NT$220 million on similar endeavors, it added.
Lin Yuan Group (霖園集團) — which owns Cathay Financial Holdings Co (國泰金控), Cathay Real Estate Co (國泰建設) and Cathay General Hospital (國泰綜合醫院) — last month announced that it would spend NT$440 million to subsidize domestic trips and other events for its 50,000 employees.
Meanwhile, a survey released yesterday by MasterCard showed that 45 percent of respondents are willing to travel locally within three months after the government eases restrictions on social distancing, while more than 50 percent would spend between NT$5,000 and NT$8,000 on domestic trips.
The survey indicated that most respondents are conservative about taking trips abroad as border controls remain in place in many countries.
For those who are willing to travel overseas, up to 70 percent said they would prioritize countries where virus infections have slowed down, the survey said.
In other news, the FSC yesterday said that 22 life insurance companies have trimmed their interest rates on policy loans by 50 basis points for the next six months.
The move is aimed at easing the financial burden on people affected by the virus, such as medical staff, COVID-19 patients or furloughed workers, Huang said.
The policy loans offered by life insurers totaled NT$614.7 billion at the end of April, and the rate cuts would lead to a NT$1.5 billion dip in insurers’ interest income this year, the commission said.
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