More than 50 regulations will be relaxed within two years, as part of a government plan transform Taiwan into Asia's asset management centre, according to the chairman of the Financial Supervisory Commission (FSC), Mr Peng Jin-long.
Speaking at a session of the Finance Committee of the Legislative Yuan on 24 October, he said that the timetable to turn Taiwan into an Asian Asset Management Centre (AAMC) would cover three phases over six years, at the end of which assets under management would have doubled by NT$30bn (around $1tn) to NT$60tn.
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Period
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Development
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Increase in assets under management (NT$tn)
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Years 1 and 2
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Regulations loosened and market adjustments made to enhance perceptions that the AAMC will be a reality
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3 to 4
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Years 3 and 4
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Change is tangible, such as a significant expansion of the asset management sector
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8 to 10
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Years 5 and 6
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Success attained, including international recognition
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10 to 16
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Total after 6 years
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21 to 30
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Assets under management from all sectors — including insurance, banking, wealth management, investment trust, investment advisory, and securities — currently total around NT$30tn.
The FSC’s approach is to retain local wealth onshore, encourage Taiwanese individuals and companies, including life insurance companies, to transfer funds home that are currently invested in foreign bonds, equities, or other investment instruments, and then attract more foreign funds to Taiwan’s asset management industry.
Mr Peng said, "We are not trying to become a second Singapore, but rather become an Asian asset management centre with Taiwanese characteristics."
On 10 September, the FSC invited insurance companies, banks, securities and futures firms, three major financial associations, stock exchanges and other ancillary units, to the "Policy and Industry for Building an Asian Asset Management Centre Summit Forum" to officially launch the AAMC project. At the forum, the FSC released five specific plans to build the AAMC.
1. establish a special financial zone in Kaoshiung for asset management;
2. establish the Taiwan Investment and Savings Account (TISA) scheme for individuals, to encourage saving for retirement in an ageing society;
3. promote wealth management, including family offices;
4. promote capital investment in public construction;
5. steer investments in national strategic industries.
The AAMC is a pivotal financial and economic policy idea mooted by Mr Lai Ching-te when he ran to become the island’s president in 2023.