MOEA sets FDI goals for service industry investment

February 7, 2007

The Ministry of Economic Affairs Department of Investment Services (DOIS) has set a target FDI amount for 2007 of USD 7.6 billion. The DOIS is directing its investment recruitment efforts at the financial services and IT media industries in particular.

FDI reached a record-high USD 13 billion in 2006, according to statistics from the MOEA Investment Commission. The statistics showed that the service industries now receive the most FDI in Taiwan. A breakdown given by the commission showed that the financial assistance, financial investment, and electronic components sectors received the most investment, comprising 23.2%, 16.3%, and 10.9% respectively.

Such a development -- increasing investment in the service industries -- is line with international trends, said Berton Chiu, Director-General of the DOIS. Chiu cited the 2006 World Investment Report by the United Nations Conference on Trade and Development, which showed that between 1995 and 2006, service industry investment comprised 63% of FDI worldwide.

This year developing the service industries will be the DOIS' top goal, said Chiu.

Last year's record amount of FDI in Taiwan was reached thanks to a significant contribution from mergers with international companies last year, and the DOIS anticipates that high-amount investment mergers between Taiwan and foreign companies will continue this year, said Chiu.

Investment in financial services in Taiwan is expected to remain strong in 2007, said the DOIS. According to the department, the financial services industry is expected to continue with mergers and forming strategic alliances with foreign companies, and as IT media service companies increase triple-play services, foreign companies will likely continue to seek investment targets in the cable TV and Internet multimedia sectors.

Also, with the popularity of real estate investment trusts (REITs), a potential for flourishing development lies in markets such as business real estate and tourism and leisure, said the DOIS.

In order to continue developing investment resources, the MOEA is cooperating with other government agencies, including the Financial Supervisory Commission, to recruit further investment. In addition, an MOEA delegation will be dispatched to Europe, the US, and Japan to invite the world's top 20 insurance companies to invest in Taiwan.

(Central News Agency)

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