Taiwan's economy shifts towards Southeast Asia

SINGAPORE (Nov 22): Taiwan’s new president is leading a charge to boost economic ties with Southeast Asia, and away from mainland China. The reality is that the shift is already well underway.

In a case of economics moving faster than politics, foreign direct investment by Taiwanese companies into the six largest Southeast Asian economies doubled in the past five years, according to Singapore-based DBS Group Holdings Ltd. That’s even before the government began pushing its “New Southbound” initiative to target markets in the Association of Southeast Asian Nations as companies face declining returns in mainland China.

In contrast to China’s slowing economy and rising wages, Southeast Asian nations like the Philippines and Vietnam are among the fastest-growing in the world and are benefiting from a burgeoning population. There’s still plenty of room for Taiwanese FDI to expand further in the region, according to Ma Tieying, an economist at DBS in Singapore.

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