Investments in NSB countries make up over 50% of total outbound funds

Taipei, Feb. 17 (CNA) The amount of approved outbound investments in countries under the government's New Southbound Policy, which is aimed at reducing reliance on China, accounted for more than 50 percent of Taiwan's total approved outbound investments in January, the Ministry of Economic Affairs (MOEA) said on Saturday.

Data released by the ministry's Department of Investment Review showed the investments pledged by Taiwanese firms in the countries under the policy totaled about NT$310 million in January, up 29.97 percent from a year earlier.

The funds pledged for these countries made up about 57 percent of the total outbound funds -- US$542 million -- approved by the MOEA in January.

The New Southbound Policy aims to enhance trade and exchanges between Taiwan and 18 countries in Southeast and South Asia, as well as Australia and New Zealand, to reduce Taiwan's dependence on China. It was introduced after President Tsai Ing-wen (蔡英文) took office in 2016.

MOEA officials said the surge in investments in the countries under the policy showed the efforts made by the government to diversify Taiwan's investments and forge closer business ties with them had paid off.

In January, Vietnam, Thailand and Malaysia were the top three destinations for Taiwanese investors, according to the MOEA.

That month, funds pledged for the Thai market jumped 243 percent from a year earlier to NT$49 million on the back of a large single investment plan worth NT$45 million, the MOEA said.

The number of investment plans under the New Southbound policy also soared 166.67 percent from a year earlier to 32 in January, according to the MOEA.

On the other hand, approved investments bound for China fell 66.3 percent from a year earlier to US$95.61 million in January, when the number of approved investment applications also fell 14.81 percent from a year earlier to 23, according to the ministry.

The MOEA said the support service industry in China, which is comprised of travel agencies, attracted the largest investments of US$16.20 million from Taiwan in January, ahead of the electronics component sector (US$11.96 million).

The MOEA said approved foreign direct investments in January hit US$684 million, up 134.62 percent from a year earlier, with the number of applications receiving the green light rising 14.91 percent year-on-year to 185.

The United Kingdom pledged the largest investments of US$325.81 million in Taiwan in January, ahead of Samoa (US$130.45 million), the MOEA said.

Although investments in NSB countries rose, the approved investments in Taiwan pledged by the countries under the New Southbound policy fell 83.21 percent from a year earlier to US$12.38 million in January.

Singapore, Australia and the Philippines were the largest investors from NSB countries investing in Taiwan, the data showed.

However, the number of investment applications from the countries under the policy rose 43.24 percent from a year earlier to 53 in January, the data indicated.

As for approved investments in Taiwan from China, the amount rose 245.72 percent from a year earlier to about US$3.05 million in January, the MOEA said, adding the surge came from a relatively low comparison base over the same period last year.

The local wholesale and retail, electronics component and banking industries were the top three sectors to attract Chinese investors in January, the MOEA said.

Since Taiwan lifted a ban on Chinese investments in June 2009, the government has approved about US$2.59 billion in funds from China, the MOEA said.