Premier Jiang Yi-huah today presided over a ceremony in Taipei launching financial services in free economic pilot zones (FEPZs), during which 12 securities companies were granted certificates for conducting international securities business in these locations.
"FEPZs are the engine propelling Taiwan toward regional economic integration," stated Premier Jiang. "Allowing offshore banking units and offshore security units to provide financial products and services under a negative list approach (under which only prohibited services are listed, and all others are permitted) is the focal point of the financial industry's being included in the FEPZs and also marks an important milestone in the development of Taiwan's financial services."
The financial industry is predicted to hire an additional 20,000 people this year, boosting employment, and banks and securities companies are expected to receive an additional NT$140 billion (US$4.67 billion) or more in revenues over the next five years, he remarked.
"The government's efforts to make Taiwan's economy freer and bring it closer to international practices will continue unabated," he pledged. "As FEPZs provide new momentum driving Taiwan toward liberalization and internationalization, the government will keep promoting policies and measures conducive to the nation's international competitiveness."
As the financial industry is an important part of this effort, the premier said the government will consider further deregulation premised on financial stability. He expressed hope that financial businesses can proactively reinforce their competitiveness and cultivate the ability to tap into the Asian market so as to bring about the establishment of an Asian regional bank as early as possible. He also encouraged bankers to offer domestic businesses the best assistance possible to make greater contributions to domestic economic development.
During today's ceremony, Financial Supervisory Commission (FSC) Minister Tseng Ming-chung gave a report explaining the strategy of including financial services into the FEPZs. "With the establishment of the FEPZs, financial regulations can be greatly loosened to give the sector more flexibility and room for growth," he said.
On behalf of the financial sector, Taiwan Stock Exchange Corp. (TSEC) Chairman Lee Sush-der expressed gratitude for this measure and encouraged financial institutions to actively cultivate talents, offer innovative products and services, and bolster their competitiveness.
Through the efforts of the FSC and other ministries, a total of 18 financial regulations and decrees had been amended as of February 2014, enabling financial institutions to provide more services to more enterprises and individual clients and increase their revenues. The inclusion of the financial sector in FEPZs, hence, is expected to bring in many opportunities to expand business. Meanwhile, financial institutions are estimated to hire 20,000 new contract employees this year due to the expansion of services resulting from deregulation, which will help improve the domestic employment rate, Executive Yuan officials said.
The premier also presented awards to six banks at the event for their outstanding performance in OBU business, namely Mega International Commercial Bank, Fubon Financial, Citibank, Cathay United Bank, First Bank and Bank Sinopac. He then personally presented OSU certificates to 12 securities firms: Yunta Securities, KGI Securities, Fubon Financial, Capital Securities Corp., Sinopac Securities, JihSun Securities, Masterlink Securities Corp., Mega Securities, Hua Nan Securities, Waterland Securities, Concord Securities Co., Ltd., and Cathay Securities Corp.. This indicates official approval from the government for securities companies' OSU business, ushering in a new era for the industry.
A total of 400 representatives from the financial sector attended today's event. In concluding the ceremony, Premier Jiang, FSC Minister Tseng, National Development Council Minister Kuan Chung-ming, Deputy Governor of the Central Bank of the Republic of China (Taiwan) Yang Chin-long, TSEC Chairman and concurrently Taiwan Financial Services Roundtable Chairman Lee, as well as chairpersons of 10 financial unions jointly participated in the ceremonial inauguration—whose motto was "supporting industries with financial services, reviving the financial sector with industries"—declaring a new era for the sector.