Financial & Professional Services Sector in Taiwan
Taiwan is the fifth largest economy in Asia and the third largest banking sector by asset in Asia. The continuous relaxation in financial policies on investment restrictions with China also enhances the strong trade and investment links with China.
Taiwan’s financial services industry (including real estate), which accounts for 15.3% of the total GDP, has changed greatly since financial liberalisation in the 1990s and become a more international and liberalised industry. Taiwan is the 5th largest economy in Asia with a GDP growth rate of 4.04% in 2011. While the rest of the world slowly emerges from the economic downturn, the Taiwanese economy continues to display encouraging signs of recovery. Steady economic growth, high rates of savings and ongoing financial liberalization make Taiwan an attract market for capital. Increasing opportunities in wealth management, foreign currency securities exchange, pension fund management and training in financial service are worth noting.
The continuing cross-straits rapprochement is likely to lead to further opportunities for companies with capabilities in wealth management, corporate/trade finance, and investment advisory.
With the implementation of Economic Co-operation Framework Agreement (ECFA, a quasi free trade agreement), Taiwanese banks, insurers and futures and securities firms are able to operate in China. In addition to that, a cross-strait RMB clearance agreement signed on 31 August 2012 will enable Taiwanese banks to provide all the operations in RMB and to promote Taiwan as an important offshore RMB financial centre. The just passed agreement will allow Taiwanese to repatriate earning back to Taiwan and is expected to provide a fertile market to financial services companies to further tap into such wealth from Greater China.
The capital city is committed to implement PPP/PFI model in future projects:
The Taipei City Government (TCG) has been under pressure to review its BOT policy framework due to the surfacing of contractual dispute in its major infrastructure projects. Given that background, the TCG plans to remodel the existing framework to international standard and to roll out future projects under PPP/PFI model. Several visits to the UK by the TCG has been taken in the past few years, trainings delivered by IUK (formally PUK) were organized for TCG officials too. The continuous influence is expected to pave the way for UK companies to participate in future projects. This year, the TCG plans to roll out Affordable Housing Project under PPP/PFI model which will be the pilot PPP/PFI project in Taiwan.
Getting into the market
In Taiwan the regulatory standards for financial and professional service sector are generally similar to those of the EU, but there are some differences- so British companies wishing to develop their business in the Taiwanese market are advised to undertake as much market research and planning as possible in the UK.
UKTI’s team in Taiwan, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
Vicki Wu, British Trade and Cultural Office, Senior Commercial Officer
Emily Chen, British Trade and Cultural Office, Commercial Officer
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.