Financial services kick of in nation's FEPZs Wed.
By John Liu, The China Post
March 5, 2014, 12:13 am TWN
TAIPEI, Taiwan -- The Financial Supervisory Commission (FSC) and Taiwan Stock Exchange (TWSE) are scheduled to hold a ceremony today to celebrate the launch of financial services in the Free Economic Pilot Zones, marking a new page for Taiwan's financial industry.
Premier Jiang Yi-huah (江宜樺), FSC Chairman Tseng Ming-chung (曾銘宗) and TWSE Chairman Lee Sush-der (李述德) as well as a number of executives from the banking industry are expected to attend the event.
The goal of incorporating the finance sector into the pilot zones is to enhance the finance industry's development, Lee said, adding that so long as the finance industry creates more business opportunities, other parties in the industry, such as employees, shareholders and customers will all benefit.
There are 750,000 people employed by more than 8,000 financial firms in Taiwan. As firms' operation efficiency increases, and as a result makes more profit, their 5.5 million shareholders are expected to benefit as well.
Finance Sector Works with Other Industries
Lee said that the finance sector bears a close relation with other domestic industries, adding that "the finance sector supports other industries, while other industries vitalize the finance sector." As the cycle continues, flows of capital, labor, and information are set to increase. Analysts believe that the launch of finance services in the pilot zone is going to boost the share prices of financial firms in the long run.
It is the government's policy to loosen up regulations and further open up Taiwan's finance sector. The government hopes that these measures will help retain local talent and capital. By diversifying financial services, the government wants to create more business opportunities in the finance sector. In following this principle, offshore banking units (OBU) and offshore securities units (OSU) will be the main financial products exported abroad.
Premier Jiang's attendance at the ceremony will mark the government's major efforts to boost Taiwan's economy. Jiang is the mastermind behind incorporating the finance sector in the pilot zone. Jiang is scheduled to promote the endeavor of innovation education in the pilot zone on Thursday.
12 Financial Firms Approved to Conduct OSU
Up to 12 financial firms engaged in the securities business will be approved to conduct OSU transactions in the event, which will be a major landmark for Taiwan, Tseng said, adding that as a result, securities firms are expected to hire more talent to handle increased business, creating more job opportunities in the process.
The FSC passed regulations on Feb. 28 to allow local firms to open overseas branches to engage in securities businesses, in a gesture to demonstrate the government's efforts to promote Taiwan's finance industry.
According to research commissioned by the FSC, after rules governing OBU and DBU are relaxed, up to NT$300 billion worth of capital will flow into Taiwan, while creating NT$30 billion worth of revenues for the banking industry and NT$40 billion for the securities industry. About 1,200 job opportunities are also expected to be created, allowing the government to collect NT$2.7 billion worth of individual income tax.