The Taiwan Banker

In his National Project of Hope, articulated in the third political speech during his campaign, President-elect Lai proposed several policies relevant to the financial industry, including the “Asian Asset Management Center,” “Asian Fintech Innovation Center,” and “Asian Sustainable Finance Model.” In addition, he hopes to highlight the future role of the financial industry in “supporting the development of small and medium-sized enterprises,” and also to enhance “financial inclusion” and “national financial resilience.” Fully implementing these six policy goals will reshape financial services in Taiwan. As the election season comes to an end, Taiwan will enter a new stage of development. The new administration will continue to implement past governance achievements, innovate, and strive for excellence in response to the needs of Taiwan.Looking back, the financial policies implemented by President Tsai in both terms include turning Taiwan into an Asian financial center for high-end asset management, promoting the venture capital industry, and establishing national financing guarantees. Perhaps the political impetus could still be strengthened, but the establishment of a national venture capital company, repatriation of Taiwanese capital, Wealth Management Action Plan 2.0, Trust Action Plan 2.0, and other policies have slowly given Taiwan's financial industry new opportunities and directions.These new policies are more comprehensive. Building upon the past development of asset management, they also emphasize applications of finance like green energy and fintech. In addition, financial inclusion will continue to be strongly promoted, and financial security will be further strengthened.Because Taiwan is such a leader in excess savings and one of the world’s main purchasers of various financial products, a major part of its financial industry profits has been harvested by financial institutions in other countries, leaving only limited profits for local institutions, and resulting in low industry added value. It would be like owning vast sugarcane farms but still purchasing sugar from outside, leaving the profits for trading companies and foreign banks, and relegating Taiwanese finance to a cash crop model.The development of fintech and ESG, combined with asset management, is a real opportunity for Taiwan for import substitution and vertical development, no longer acting only as a buyer. This way, Taiwanese money can stay in Taiwan and add value; asset management can become the strength of Taiwan’s financial services, helping create value for global wealth. Taiwanese wealth will become an important fuel for Taiwan’s financial development, just like sugarcane farms were transformed into the world’s candy factories in the past.When Taiwan’s financial industry issued a “Advanced Future Chip Fund” allowing people to make regular fixed savings, the fund invested in ASML. This endowed ASML with more directors with Taiwanese thinking, making good use of Taiwan’s first-hand knowledge to increase its profits, thus not only safeguarding TSMC’s interests, but also contributing to Taiwan’s overall asset base. An effort like this to bring together Taiwan’s numerous funds to secure its wealth requires more skills for Taiwan’s financial industry and a better regulatory environment. This all echoes the vision of this political vision and makes people look forward to it.With good climatic conditions, cane sugar was once the foundation for Taiwan’s economic connection to the world. However, thanks to the efforts of our predecessors, cash crops are no longer Taiwan’s economic foundation. Instead, production and manufacturing now occupies an important position in the world. The financial industry still has limited innovation, in contrast, only accumulating huge amounts of funds year after year, deposited for meager interest. I look forward to the effective promotion of these six financial policies. Industrial transformation, national defense and security, elder care, and housing justice can all enable the financial industry to play a greater role in building a better Taiwan.