The number of foreign direct investment (FDI) projects and the value of capital investments in the country in the first 11 months of this year have decreased by a double-digit percentage compared to the same period last year , as global investment collapsed due to containment measures linked to the COVID-19 pandemic, the Investment Commission said.
From January to last month, the number of FDI projects approved stood at 2,448, down 22.46% from the previous year, while capital investment fell by 17.57% to $ 6.718 billion, according to commission data.
The financial and banking services, wholesale and retail, information and communications technology (ICT), electronic components and real estate sectors were the main recipients of FDI in the first 11 months of the year.
However, while the ICT sector saw a 99.58% increase in capital inflows compared to the same period last year, flows to other sectors have all fallen, the data shows.
The commission said COVID-19 continued to impact investment, including business travel and economic activity, causing both the number of FDI projects and capital investment to plummet.
Meanwhile, the number of investments from countries covered by the government’s new southerly policy also declined, with 480 approved in the first 11 months of the year, down 0.41% year-on-year. .
However, the value of investments from those countries rose 172.45 percent to $ 962.13 million in the first 11 months, the commission said.
The growth was mainly driven by larger investments from Thailand, Singapore and Australia, including an investment of NT $ 8.55 billion (US $ 308.24 million) by Cal-Comp Electronics and Communications Co Ltd (泰 金寶) of Thailand and an investment of NT $ 2.99 billion by Empyrion of Singapore. Ed Pte Ltd, he said.
In the 11-month period, investment from China fell to 37 cases, down 56.47% year-on-year, while total investment was $ 46.05 million, down by 62.86 percent, according to the data.
In terms of outward investment by Taiwanese companies, 371 cases were approved, down 21.73% year-on-year.
Total investment amounted to US $ 9.72 billion, up 22.69% year-on-year, mainly due to larger investments, such as the investment of 2, US $ 5 billion from GlobalWafers Inc (環球 晶圓) in German company Siltronics AG.
The increase in overseas investment reflects the struggle of Taiwanese companies for a share of the profits from the reshuffle of supply chains around the world in the wake of the COVID-19 pandemic, the commission said.
Outward investment to countries covered by the new southbound policy fell 28.48% yoy to 113 cases in the first 11 months, but the total value jumped 115.55% yoy, Singapore, Vietnam and Thailand being the main destinations.
Meanwhile, foreign investment in China fell 12.81% year-on-year to 388 cases and fell 14.47% to $ 4.79 billion.
The drop shows Taiwanese companies are taking a more cautious approach to investing in China due to the volatile business environment following a trade dispute between Beijing and Washington, the commission said.
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