Taiwan is seeking to expand the scale of its asset management industry as it aims to strengthen its position as a regional financial hub, reported The Japan Times.
Financial Supervisory Commission Chairman Dr Peng Jin-lung said Taiwan’s $630bn asset management sector must capitalise on the country’s global leadership in technology and tap into the strong capital base of domestic financial conglomerates to compete more effectively on the international stage.
Dr Peng said that Taiwan must develop multiple large-scale asset management firms to remain competitive internationally, warning that without sufficient scale, it would be difficult for the industry to compete on a global level. He also noted that limited scale reduces Taiwan’s ability to effectively promote its domestic investment opportunities overseas, reported The Japan Times.
The initiative reflects both economic and geopolitical considerations.
Taiwan is working to bolster its financial industry alongside its globally dominant semiconductor sector to enhance economic resilience amid growing pressure from Beijing.
It was reported that Dr Peng also said regulators are urging institutional investors to channel more investment mandates to local asset managers, whether within their own financial groups or through other domestic firms, to help accelerate industry growth and scale.