MOEA

New Investment Advantages in Taiwan

Taipei Representative Office in Singapore

April, 2013

2011 IBM Corporation

MOEA

Outline

Taiwan at a Glance

Top 10 Reasons to Invest

in Taiwan

Investment Opportunities
Page 2

MOEA

Taiwan at a Glance
Size

36,190 Square kilometers

Population

23 million

Economic Growth
Per Capita Income
Unemployment Rate

4.03% (2011)
1.25% (2012)

US$20,374 (2012)
4.39% (2011)
4.18% (2012)
Total: US$ 571.82 Billion (-3.03%)

Foreign Trade
(2012)

Exports: US$ 301.10 Billion (- 2.32%)

Imports: US$ 270.72 Billion (- 3.81%)

18th largest trading economy in the world

Page 3

MOEA

Top

10 Reasons to Invest
in Taiwan

Page 4

MOEA

Top 10 Reasons to Invest in Taiwan

1. Investment Environment and Global Competitiveness

IMD World Competitiveness Ranking

2012 Index Rankings:

7th in the world

3rd in Asia
Business Environment Risk
Intelligence
2012 Investment Environment
Rating:
th

4 in the world
nd
2 in Asia

World Economic Forum

Global Competitiveness
Index (2011-2012):

13th in the world

4th in Asia
Page 5

MOEA

Top 10 Reasons to Invest in Taiwan

2. Gateway to China After Signing ECFA (1/2)

18 agreements, including the ECFA and Intellectual

Property Rights Agreement, were signed between Taiwan
and China over the past 2 years

Economic Cooperation Framework Agreement (ECFA) was

signed on June 29th and took effect on September 12th,
2010

The signing of ECFA clearly shows the willingness of the

two sides to further improve bilateral trade and investment
relations, which is beneficial for economic prosperity and
development across the Strait

Page 6

MOEA

Top 10 Reasons to Invest in Taiwan

2. Gateway to China After Signing ECFA (2/2)
Using Taiwan's location and industry clusters to develop the Asian market

Qualcomm (USA)

Houston (Japan)

Currently investing in Taiwan to build Mirasol

Pingtung Agricultural Biotechnology Park

Display (reflective display technology) factory for

mass production.
Mirasol Display is an emerging display technology,
with bistable e-paper features, ability to be clearly
seen in sunlight, and energy saving benefits.
Expected to begin production at end of 2012 with a
first- phase investment of US$1bn.

Branch upgraded into a subsidiary, Compass

Biotech Co., Ltd.
Current annual output of 1,120 tons; second
factory being built an annual output of 2,100
tons. The company produces cultivated
edible mushrooms for the Taiwan and
Mainland China markets.

Increasing Taiwan investment due to optimism about Taiwan's consumer market

Decathlon (France)
Expected to establish 15 large-scale stores in
Taiwan; Signed contract with the Taichung City
Government to set up operational headquarters
in Taichung.
First flagship store opened in Taichung Eighthperiod Redevelopment Zone in 2012.

Costco (USA)
Already has eight branches in Taiwan; 3 out
of 8 are within top 10 in the world. the
Neihu store is the 3rd most profitable in the
world.
5-6 new branches are planned to open in
northern Taiwan (Sanchong, Xindian,
Xinzhuang) and central Taiwan.
Page 7

MOEA

Top 10 Reasons to Invest in Taiwan

3. Tax Environment and International Competitiveness
Business Income Tax
25%
17%

Income Tax Act revised on May 28,

2010.
Company tax burden reduced with
business income tax cut from 25% to
17%.
The reduced rate is more favorable
than China (25%) and Korea (22%).

Item

Taiwan

China

Singapore

Corporate
Income Tax

17%

25%

17%

Value-added
Business Tax

5%

17%

7%

10%

High- and
new-tech
enterprises,
R&D
investment

Emerging
industries
operations,

Foreign
investment,

Tax Incentive
Policy

R&D
investment

R&D
investment

South Korea
22%
(201220%)

R&D investment

Page 8

MOEA

Top 10 Reasons to Invest in Taiwan

4. Strong Design Capability
Awards won by Taiwan in Top International Design Competitions, Including
52 Gold Awards
Year
Award

2005

2006

2007

2008

2009

2010

2011

2012

Total

679

519

IF, Germany
(Called the
Design Oscar)

37
56
72
99
(1 gold ) (3 gold) (1 gold) (2 gold)

66
(1gold)

105
(5 gold)

116

109
(16
gold)

Red dot, Germany

design award

37
20
(1 first) (2 first)

71
(5first)

101
(3 first)

136 (3
1st )

41 (3
1st)

IDEA, U.S.
(industrial design
award)

5
(2 silver,
1
3
(1 gold)
bronze)

G-Mark, Japan
product design
award

Total

45

66
(5 first)

5
(2 silver,
3 bronze)

6
5
5
(4
(2G
silver,2 /1S/2B) (2S/1B)
bronze)

34

38

38

28

31

21

48

26

277

100

148

133

201

160

260

283

155

1509

Source: Industrial Development Bureau, Ministry of Economic Affairs

Page 9

MOEA

Top 10 Reasons to Invest in Taiwan

5. Innovation in Taiwan
150 local R&D centers

54 international R&D
centers (2012)

North: 106

Center: 15

South: 29

Page 10

MOEA

Top 10 Reasons to Invest in Taiwan

6. Pleasant Living Environment
Shopping
Transportation
Xinyi shopping
area

HSR
MRT

Daily Life

Culture
Traditional
culture

Food
Infinite
choices of
cuisine

Convenience store
on every corner

Medical Service
Providing the best
medical treatment in
the world
Page 11

MOEA

Top 10 Reasons to Invest in Taiwan

7. Hub of Northeast Asia
Direct air and sea links with China:
Direct flight destinations: 41
Direct flights: 558/week
Cargo charter flights: 48/week
Sea transport:
Beijing
12 harbors in Taiwan,
70 harbors in China

Seoul

3:30

Tokyo

2:20
Shanghai
1:40

1:40
Hong Kong

3:00
Taiwan offers the shortest
average flying time to major
Cities in Northeast Asia :
2 hours and 26 minutes

MOEA

Top 10 Reasons to Invest in Taiwan

8. Well-Developed Industry Clusters
Nankang Software Park

Hsinchu Science Park

IC manufacturing
Optoelectronics
Biotechnology
Central Taiwan Science Park,
Taichung Precision Park
Semiconductors,
optoelectronics
Biotechnology
Precision Machinery
Changhua Coastal
Industrial Park
Metal products, metal surface
treatment
Recycling, green energy

IC design
Digital Content
Biotechnology
Foreign investment 30%
(IBM, Siemens, Philipsetc.)

Tainan Technology, Liouying, Yongkang

Technology Industrial Parks
Optoelectronics
Environmental technology
Automobile parts
Precision machinery
Kaohsiung Linhai, Da-Fa and
software industrial parks
Petrochemicals, iron and steel industry
Metal processing, precision machinery
IC, optoelectronics, communications,
environmentail technology
Page 13

MOEA

Top 10 Reasons to Invest in Taiwan

9. Skilled Workforce
43.32% of the workforce with college, university, or higher education background.

Every year, 320,000 students are graduated from college, university, or higher
education, supplying an abundant workforce for industry.
Lower labor wages than Hong Kong, Macau, Japan, Korea, and Singapore. Workers
are highly motivated and productive.

Page 14

MOEA

Top 10 Reasons to Invest in Taiwan

10. Extensive Infrastructure
Comprehensive industrial
land zoning
Highly-developed sea, air, and
land transportation
Fully integrated
transportation network
High-speed rail enables
same-day travel between
Taipei and Kaohsiung.
Over 10,000
domestic/overseas
sea/air/land freight and
warehousing companies
form a comprehensive and
efficient transportation
network.

Well-developed ICT facilities

Taiwan has a well-developed
ICT infrastructure with
97.56% penetration for fixed
line, 76% penetration for
household Internet use, and
92.5% penetration for mobile
phones.

There are currently 181

industrial zones, 3
science parks, 10
export processing
zones, and 5 free trade
zones.

Extensive
Infrastructure

Convenient freight and

logistics
International logistics
companies based out of key
Taiwanese and foreign cities
effectively reduce
import/export/transshipment
times for cargo, enabling rapid
flow of goods and information.

Comprehensive legal system and

IP protection
Taiwan has a comprehensive
legal system and IP
protection legislation is
backed by an IP court.

Source: MOEA Department of Investment Services, compiled by ITRI IEK (2010/10)

Page 15

MOEA

Investment Opportunites
in Taiwan

MOEA

6 Emerging Industries
Government Investment:
Government Investment:

0.8 Billion USD

High-end
Agriculture

2 Billion USD

Biotech

Private Investment:

1.6 Billion USD annually

Tourism

Government Investment:

Six Emerging

1 Billion USD

Industries

Culture &
Creation

Private Investment:

Government Investment:

6.6 Billion USD

0.6 Billion USD

Government Investment:

Green
Energy

0.83 Billion USD

Private Investment:

Healthcare

0.2Billion USD

Government Investment:

Trigger Private Investment:

6.6 Billion USD

2.9 Billion USD

MOEA

Investment Opportunities in Six Major Emerging

Industries
Industry

Est. Production Value

Investment Opportunities

Biotechnology

US$9 billion (2012)

Development of new drugs, biopharmaceutical manufacturing,

medical equipment, lab testing, agricultural biotechnology, health
foods, biotech services

Tourism

US$19 billion (2012)

Promotion of themed tours, development of Taiwanese leisure

and recreation, bringing in international hotel chains, nurturing
Taiwanese tourist hotels, developing the MICE industry, medical
tourism, and cultural exhibitions and performances

Green energy

US$400 billion (2012)

Solar cells, LED lighting, wind power, biofuels, hydrogen fuel

cells, energy information communication technology (EICT),
electric vehicles

Health care

US$12 billion (2012)

Medical care, long-term care, wellness and health maintenance,

intelligent medical care services, cross-border medical care
services, national health security

High-end

US$5.5 billion(2012)

Organic agriculture, agricultural biotechnology, orchids,

groupers, ornamental fish, plant nurseries, livestock and poultry
breeding, in-depth agricultural tourism, high-end agricultural
products

agriculture

Cultural and
creative industries

US$24.5 billion (2013)

The six flagships: television, cinema, popular music, digital

content, design, handicrafts

MOEA

4 Emerging Smart Industries

Government Investment:

Est. Output (2016)

Intelligent
Electric
Vehicles (Evs) 60,000 Vehicles

Cloud
Computing

0.8 Billion USD

Trigger Private Investment:

Est. Output (2020)

3.3 Billion USD

1,200,000 Vehicles

Four Emerging

( 1 M. for export)

Smart Industries
Smart
Green
Buildings

Industrial
Application of
Invention
Patents
Government Investment:

Government Investment:

0.11 Billion USD

Trigger Private Investment:

0.95 Billion USD

0.4 Billion USD

Trigger Private Investment:

0.67 Billion USD

MOEA

Ten Key Service Industries

Sectors
Gourmet
Taiwan

Vision
Bring international cusine to Taiwan
Promote Taiwanese cuisine
internationally

Target (2013)
Promote US$0.07 billion in private investment
Add 3,500 outlets in Taiwan and abroad

International
Medical
Tourism

Achieve inbound clients and

outbound medical services
Raise medical quality and improve
Taiwan's image as a provider of
quality medical services

Attract US$0.14 billion in private sector investment.

Create international medical industry worth
US$0.37 billion

Music and
Digital
Content

Raise the production and

distribution of Taiwanese pop music
Promote Taiwan as an advanced
country with creative music and
multimedia industries

Pop music industry production targets (2010-2014):

Combined production value for the five year period
reaching US$1.67billion
Attract US$5.83 million in private sector investment
Digital content (Targets):
Industry production value of US$26 billion
Increased investment of up US$3.3 billion

Chinese
language
electronic
commerce

Promote Taiwan as a secure,

sophisticated and dynamic
location for Chinese-language ecommerce operations centers
catering to international
businesses

2015 targets:
Increase revenues to US$33.3 brillion
Have at least eight Chinese-language e-commerce
businesses with annual revenues exceeding US$0.33
billion

Global
Logistics

Establish Taiwan as a hub for

value-added logistics and supplychain integration

Initiate US$0.097billion in private sector investment

Logistics industry achieves a scale of US$0.33
billion

MOEA

Ten Key Service Industries (cont.)

Sectors

Vision

Target (2013)

MICE

Establish Taiwan as Asias top

MICE location

Target (2012)
Bring in US$0.43 billion in investment
Achieve direct and peripheral benefits
worth US$8.3 billion

Urban renewal

Speed up the promotion of urban

renewal and create an urban
renewal industry

WiMAX

Making Taiwan a global wireless

broadband service demonstration
island and solution exporter

Export of higher
education

Strengthening Taiwans higher

education brand and attracting
larger numbers of high-caliber
foreign students

Fund-raising
platforms for
high-tech and
innovative
industries

Attracting overseas high-tech and

innovative companies seeking to
list on Taiwans stock exchange or
over-the counter; establishment
regional fund-raising platforms
tailored to specific industries

2011-2014 Targets:
Building construction investment totaling
US$7.5 billion
Creating economic production value of
US$38.1 billion
Stimulating US$1.67 billion in private
investment
Increasing the value of WiMAX equipment
output to US$4.3 billion
Overseas student in Taiwan for continuing
or advanced study:
95,000 students by 2015, or 7.48% of the total
college and university student population
150,000 students by --2020, or 10% of the
total university and college student population
Increasing the number of new listed
companies to 330, out of which 194 will be in
technology and innovative industries
The market capitalization of listed high-tech
and innovative firms will increase to US$560
billion
Increasing fund-raising in Taiwan several fold
to US$8.9 billion

MOEA

Thank You for Your Attention

Taipei Representative Office in Singapore
Contact us
TEL: (65) 6500-0120
FAX: (65) 6271-9885
E-mail : singapore@moea.gov.tw
Address: 460 Alexandra Road #23-00
PSA Building, Singapore
119963
Web: www.roc-taiwan.org/SG/

Page 22