1. Exports grow 0.9% in November
Exports grew 0.9 percent in November, the Ministry of Finance
said yesterday, figures which suggest continuous export growth
in 2013.
According to the ministry, though there was a small increase in
September, total export output has generally been decreasing
since March.
Total exports in October decreased 1.9 percent, with total export
values falling to US$250 billion. The total export rate from
January to October declined 3.7 percent.
The ministry said that a growth in purchasing power in the U.S.
helped increase exports in November — a positive outcome
given the upcoming holiday season.
Commentators had earlier predicted that the Finance
Ministry would release figures showing export growth in
November.
According to the ministry, the value of exports in November
grew to US$26 billion. In December, exports are forecast to
reach US$27 billion.
Due to export ties with the U.S., Thanksgiving consumption
along with Christmas purchasing will increase demands for
exports from Taiwan.
These two events are stimulating the export market in Taiwan
and led to the increase in manufacturing orders in November.
The fourth quarter is forecast to grow based on export market
expansion in November.
According to the ministry, overall estimated export growth in
November and December is likely to encourage continuous
growth in 2013. This may increase total economic output in a
range of industrial and service sectors.
The ministry predicted that the high-tech industry will still be
responsible for one-third of total productivity. This industry is
expected to be the main economic driver, boosting optimism for
future export performance. In particular, the market for
semiconductors is expected to catalyze significant growth.
2. Banks may post earnings of NT$230 bil.
Taiwan banks are expected to make total profit of NT$230
billion this year, which will be a new high and surpass the
NT$200 billion for last year, financial experts said yesterday.
Strong earnings are also expected to prompt banks to issue
bonuses of three to four months, higher than the 1.11-month
average for employers in other sectors, experts said.
FSC Chairman Chen Yu-chang has already hinted at the fact
that banks this year will see earnings surpass the NT$200 billion
for 2011. Kuei Hsien-nung, chief of the banking unit under FSC,
has also said that earnings from January to October have
reached NT$214.9 billion, already an all-time high.
Based on the average monthly profit of NT$10 billion posted by
banks, the total for the year is set to reach NT$230 billion,
experts said.
The figure may go higher to NT$250 billion if banks posted
monthly earnings of NT$20 billion during the final few months
of the year, they said.
Kuei attributed the earnings increase to better asset quality at
banks and the opening of new businesses, which helped lift
banks' revenue.
“Because of our stricter monitoring, banks have stepped up risk
management, which led to better asset quality,” he said.
According to him, banks' overseas branches have also reported
higher earnings that contributed to their parent corporations'
profit increases, Kuei said.
On criticism banks' high profits resulted from the fact they do
not have to pay a 5-percent busines tax, Kuei said that wasn't the
case.
“They do pay a business tax of 2 percent, which goes to the
financial restructuring fund that takes care of failed banks,” he
said.
3. European trade office reports successful 2012
A European trade office in Taipei said it had a “very successful”
year despite Taiwan's economic slowdown.
The European Chamber of Commerce Taipei (ECCT) released
its annual report to members at its general meeting yesterday.
Despite Taiwan's challenging economic conditions, the chamber
has had a very successful year, according to the report.
The chamber is finishing the year with strong membership and a
stable financial base. Quality and participation at events has
remained very high, while the chamber has regularly engaged
with the Executive Yuan throughout the year, according to the
report.
“The chamber continues to be the leading organization
representing European businesses interests in Taiwan and is
seen by the EU Commission, government and business as one of
the two most influential foreign business organizations in
Taiwan,” the report stated, adding that conditions for the ECCT
bode well for 2013.
Also yesterday, the ECCT elected its board of directors and
supervisors for 2013, and the new board elected a new chairman,
Giuseppe Izzo. Izzo is general manager of STMicroelectronics,
a French-Italian semiconductor chip and electronics maker.
The ECCT, which has some 700 members, represents European
business interests in Taiwan. The chamber publishes
recommendations to the Taiwan government, meets with
government officials, conducts studies and hosts talks related to
its trade interests.
4. Taiwan's GDP expected to grow 3.6 percent in 2013: think
tank
Taipei, Dec. 12 (CNA) The Chung-Hua Institution for Economic
Research (CIER), one of Taiwan's leading think tanks, forecast
Wednesday that Taiwan's domestic gross product (GDP) will
grow 3.6 percent in 2013.
The think tank has upgraded its forecast for the country's 2013
economic growth from a previous estimate of 3.59 percent,
saying that the local economy is likely to grow quarter by
quarter next year on the back of a recovery in global economic
fundamentals.
Nonetheless, the CIER has cut its forecast for Taiwan's 2012
GDP growth to 1.19 percent from a previous prediction of 1.52
percent after taking into account the weakness of domestic
investment and consumption, and a slowdown in bilateral trade.
In 2012, Taiwan's private fixed investments are expected to fall
3.33 percent from a year earlier, while private consumption is
likely to rise just 1.64 percent, compared with a 3.13 percent
increase recorded in 2011, according to the CIER.
The CIER expects Taiwan's merchandise and services exports
for 2012 to rise 0.08 percent, compared with 4.45 percent
growth registered in 2011, while the country's goods and service
imports this year could fall 1.54 percent compared with a 2011
decline of 0.47 percent.
However, CIER Chairman Liang Chi-yuan said the worst of the
poor economic fundamentals at home and abroad has passed and
he urged the public not to be too pessimistic.
Liang said the local economy will improve in 2013 from 2012,
adding that other research institutions have also anticipated that
the GDP for next year will stage a rebound and register growth
of between 3.1 percent and 3.5 percent.
He said the debt problems in the eurozone have been contained,
while there is rising optimism that the White House and the U.S.
Congress will reach an agreement soon to avoid a pending
"fiscal cliff" in Washington.
The fiscal cliff refers to sizeable tax increases and spending cuts
that will kick in Jan. 1 if alternative deficit-cutting measures are
not adopted, which could trigger a recession.
Liu Meng-chun, director of the CIER Center for Economic
Forecasting, agreed, saying that the local economy has shown
signs of improving, with the GDP growth for the fourth quarter
of this year expected to reach 3.21 percent, compared with a
preliminary reading of a 0.98 percent increase in the previous
quarter.
The CIER said the GDP growth for the first quarter of next year
is expected to hit 3.06 percent, followed by anticipated 3.72
percent growth, 3.77 percent growth and 3.81 percent growth for
the second, third and fourth quarters, respectively.
5. Taiwan praised as world leader in human rights
Taipei, Dec. 10 (CNA) Taiwan has shown world leadership on
the issue of human rights although it is not recognized by the
United Nations, an international child rights group said Monday.
"Taiwan is a key player. ... Taiwan is a world leader in this
particular aspect of human rights for good reason," said
Maureen Crombie, chairwoman of ECPAT International, on
Human Rights Day.
Crombie praised Taiwan's legal framework and quality law
enforcement during an interview after receiving a human rights
award in Taipei in recognition of her group's dedication to
ending the commercial sexual exploitation of children in Asia.
Although Taiwan is not a member of the U.N., "on behalf of
human heart, we don't necessarily need U.N. instruments to do
the right thing," Crombie said.
Mark Capaldi, research and program adviser of the rights group,
supported Crombie's view, saying that human rights are
universal and everyone should expect and aspire to reach the
global standard.
"It's obviously a challenge for Taiwan. However, it did not stop
Taiwan from strengthening its legal framework so that it meets
the international standard," he said.
"Despite the challenge, it has motivated Taiwan to do even more
and to show the world that this is an important issue that
concerns them internationally, not just in Taiwan."
Taiwan has also funded and supported many international
projects and events to help prevent trafficking and sexual
exploitation of children, Capaldi said.
Asked to comment on the overall legalization of prostitution in
Taiwan, Crombie and Capaldi both said that such a move will
make the work to address commercial sexual exploitation of
children even more important.
Taiwan amended a law in late 2011 to allow cities and counties
to set up designated red light districts. Local governments,
however, have shown little interest in establishing such zones in
their areas.
"You'll have to increase your efforts to protect children even
more," Capaldi said.
"It's purely a question of supply and demand," he said, adding
that once prostitution is legalized, demand increases, and,
therefore, the supply increases.
Although legalization of prostitution is meant to protect the
rights of women who are involved, it does lead to an increase in
the trafficking of women and girls for sexual exploitation, he
added.
Crombie, meanwhile, took her home country New Zealand -which legalized prostitution in 2003 -- as an example, saying
that prostitution laws there had not protected children and had
probably failed to prevent trafficking.
"We have anecdotal evidence that gangs targeted children at
school for drugs and partly did force them to prostitution and
traffic them across the country to the cities," she said.
"The most vulnerable have actually been compromised in a
worse position before the prostitution laws," said Crombie,
adding that New Zealand saw a prolific increase in numbers of
underage sex workers on the street.
Established in 1991 to stop child sex tourism in Asia, the ECPAT
network now has more than 80 groups in over 70 countries
worldwide, including Taiwan.
The groups are all independent organizations or coalitions
working against commercial sexual exploitation of children.
6.
Taiwanese graffiti artist brings color to Geneva
Geneva, Dec. 12 (CNA) A solo exhibition by a Taiwanese
graffiti artist opened in Geneva on Wednesday, featuring artwork
inspired by his one-month travel experience in Europe.
The artist, known by the name Bounce, is displaying 10 pieces
of graffiti art that represent his cultural perceptions over the past
month.
The art pieces show a fascination with the symbolism of skull
images in the West, but at the same time, reflect distinctive
elements of Taiwanese traditional art such as Hakka flower
prints.
"Creating graffiti work is amazing as you have to devote all
your senses to it," Bounce said.
Yann Boggio, a resident in Geneva who bought one of Bounce's
paintings at Graffiti Nation 2012 in November, said the artist
has a unique style.
"Bounce's graffiti is very instructive. It is warm and full of
love," Boggio said.
The artist adopted his name from a rabbit character that he
created in 2005.
The rabbit, born blind and without front paws, was living in a
quiet forest, using mainly his sense of hearing to learn about the
world. One day, he heard a type of music that made him want to
"bounce" and he decided to head for city to find the alluring
sound.
Based on that storyline, the artist started to paint graffiti in the
streets of Taiwan to make the cities more colorful and lively,
according his website.
Bounce, along with nine international artists, was invited to take
part in the Xbox 360 "FUSE" in Taipei in 2006.
In 2007, he participated in an exhibition in Shanghai, displaying
artwork created specifically for global computer vendors ASUS
and Dell.
His show in Geneva will run through Jan. 21 next year.