Investments managed by the Bureau of Labor Funds lost more than NT$470 billion (US$15.77 billion) as of the end of March, when equity markets plunged as the global spread of COVID-19 picked up.
The bureau, part of the Ministry of Labor, on Friday said in statement that funds, including the Labor Insurance Fund, the Labor Pension Fund and the Employment Insurance and Wage Arrears Payment Fund, posted a combined loss of NT$471.2 billion, or 11.16 percent at the end of March.
During March, the TAIEX, Taiwan’s benchmark index, shed 1,584.11 points, or 14.03 percent, as the virus escalated in the US and European countries, particularly in Italy and Spain.
As many major economies imposed lockdowns to contain the disease, production was scaled back, the global supply chain was undermined and consumption was hurt, sending financial markets worldwide downward, the bureau said.
In addition to weakness in the equity markets, the global bond market also took a beating in March, forcing the bureau’s labor funds into the red, as investors preferred to hold on to as much cash as possible, it said.
As of the end of March, the new Labor Pension Fund, launched in July 2015, posted a loss of 11.37 percent, while the original Labor Pension Fund lost 13.37 percent, and the Employment Insurance Fund lost 10.33 percent, the bureau said.
The bureau said that it would monitor the pandemic closely and increase its risk-control efforts in managing the funds.
It said that many nations have come up with alternative monetary and fiscal measures to boost their economies, which could stabilize the financial markets.
As the pandemic has been showing signs of easing, and with many nations coming out of lockdown, global financial markets are expected to improve furth.er, it added.
The brilliant blue waters, thick foliage and bucolic atmosphere on this seemingly idyllic archipelago deep in the Pacific Ocean belie the key role it now plays in a titanic geopolitical struggle. Palau is again on the front line as China, and the US and its allies prepare their forces in an intensifying contest for control over the Asia-Pacific region. The democratic nation of just 17,000 people hosts US-controlled airstrips and soon-to-be-completed radar installations that the US military describes as “critical” to monitoring vast swathes of water and airspace. It is also a key piece of the second island chain, a string of
A magnitude 5.9 earthquake that struck about 33km off the coast of Hualien City was the "main shock" in a series of quakes in the area, with aftershocks expected over the next three days, the Central Weather Administration (CWA) said yesterday. Prior to the magnitude 5.9 quake shaking most of Taiwan at 6:53pm yesterday, six other earthquakes stronger than a magnitude of 4, starting with a magnitude 5.5 quake at 6:09pm, occurred in the area. CWA Seismological Center Director Wu Chien-fu (吳健富) confirmed that the quakes were all part of the same series and that the magnitude 5.5 temblor was
Taiwan will now have four additional national holidays after the Legislative Yuan passed an amendment today, which also made Labor Day a national holiday for all sectors. The Chinese Nationalist Party (KMT) and Taiwan People’s Party (TPP) used their majority in the Legislative Yuan to pass the amendment to the Act on Implementing Memorial Days and State Holidays (紀念日及節日實施辦法), which the parties jointly proposed, in its third and final reading today. The legislature passed the bill to amend the act, which is currently enforced administratively, raising it to the legal level. The new legislation recognizes Confucius’ birthday on Sept. 28, the
The Central Weather Administration has issued a heat alert for southeastern Taiwan, warning of temperatures as high as 36°C today, while alerting some coastal areas of strong winds later in the day. Kaohsiung’s Neimen District (內門) and Pingtung County’s Neipu Township (內埔) are under an orange heat alert, which warns of temperatures as high as 36°C for three consecutive days, the CWA said, citing southwest winds. The heat would also extend to Tainan’s Nansi (楠西) and Yujing (玉井) districts, as well as Pingtung’s Gaoshu (高樹), Yanpu (鹽埔) and Majia (瑪家) townships, it said, forecasting highs of up to 36°C in those areas