Foreign direct investment (FDI) approved by the government last month hit the highest level this year, but the figure for the first six months of this year was down nearly 27 percent from the same period last year, the Investment Commission said yesterday.
FDI is measured based on the investment activities of foreign firms, such as the incorporation of a subsidiary or joint venture, a cash injection into a local unit, or mergers or stake acquisitions of domestic firms. Taiwan’s FDI excludes investments from China.
The commission approved US$2.14 billion in FDI last month, down 52.3 percent from a year earlier.
Photo: CNA
However, last month’s figure surged 121.64 percent from the previous month, as Singapore-based DBS Bank Ltd (星展銀行) gained approval to inject NT$52 billion (US$1.67 million) in new capital into DBS Bank Taiwan (星展台灣) to fund its subsidiary’s acquisition of Citibank Taiwan Ltd’s (花旗台灣) consumer banking business, the commission said.
Total foreign direct investment in the first six months was US$6.42 billion, a 26.97 percent decrease from the same period last year, which the commission attributed to a relatively high comparison base last year, when Denmark’s Orsted Wind Power TW Holding A/S won approval to invest NT$87.19 billion in offshore wind projects in Taiwan and Costco Wholesale Australia Pty Ltd secured permission to invest US$1.05 billion in expanding its local wholesale and logistics businesses.
Meanwhile, investments from January to last month from countries that are part of the government’s New Southbound Policy increased 57.87 percent annually to US$2.24 billion, with the sources of investment coming mainly from Singapore, Malaysia and Thailand, the commission said
As for investments by Chinese firms, the commission approved US$16.65 million in the first six months, down 2.23 percent from a year earlier, it said.
In terms of outbound investment by Taiwanese individuals and businesses in nations excluding China, the commission said it approved US$8.97 billion in the first six months, an annual increase of 112.78 percent and boosted mainly by Taiwan Semiconductor Manufacturing Co’s (台積電) investment in its fab in Arizona, as well as Yageo Corp’s (國巨) equity investment in Hudson Holdco France under Schneider Electric SE.
Outbound investments to China increased 6.38 percent year-on-year to US$1.91 billion in the first six months, while those to New Southbound Policy countries grew 2.94 percent to US$2.13 billion, which the ministry attributed to local firms’ increasing investments in Singapore, Vietnam and Malaysia.
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