Taiwan can’t afford not to have private equity – AVCJ Taiwan

"At a time when private equity has become one of the most active channels for capital investment and transferring expertise worldwide, Taiwan has attracted a little private equity in recent years," said Kurt Tong, principal deputy assistant secretary at the US Department of State's Bureau of Economic and Business Affairs. "In an increasingly integrated regional and global marketplace, Taiwan simply can't afford not to have private equity investment."

Taiwan has lost its luster among foreign investors in recent years, with FDI reaching $4.7 billion in 2012, compared to $16 billion for South Korea. In addition, investor protection and regulatory transparency have been poor when placed against other Asian cities such as Singapore and Hong Kong.

Tong added Taiwan's leadership has recognized the economic situation and made progress on resolving some foreign investment issues, including more regulatory clarity for US private equity investors. He has discussed these issues with local authorities.

"The Financial Supervisory Commission (FSC) has made a significant step in the right direction. But let me point that reform requires broader support. I think it's critical for all the members of Taiwan's Investment Commission to have more liberalized rules that the FSC has already committed to," Tong said.

These efforts should include the Ministry of Economic Affairs (MOEA) providing clarification of rules governing M&A processes and then enforcing these rules consistently. Tong also called upon the public and local media to look at foreign investment through a rational and scientific lens so as to appreciate the potential benefits it brings to any economy.

Separately, Tong said the US welcomes Taiwan's interest in participating in free trade agreements through the Trans-Pacific Partnership (TPP). However, qualification depends on economic reform and improvements to competitiveness.

The TPP is currently being negotiated by the US and 11 other countries, including Japan, Australia, Malaysia, Vietnam, New Zealand and Singapore.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Regulation
• Taiwan (China)
• regulation
• AVCJ Events
• FDI