| Prime News | | ![]() | ![]() | Stan Shih Will Propose ADOC 2.0 in APEC Leaders' Meeting
Taipei, Sept. 6, 2007 (CENS)--During the APEC (Asia Pacific Economic Cooperation) Economic Leaders' meeting on Sept. 8-9 in Sidney, Stan Shih, the Taiwanese representative, will propose ADOC 2.0 (APEC Digital Opportunity Center 2.0) program, to continue the effort of narrowing global digital gap under the auspices of ADOC over the past several years.
In a press conference yesterday (Sept. 4), prior to his departure for the meeting, Stan Shih reported that he will take advantage of the meeting to push the ADOC 2.0 program and the idea of "green APEC opportunities" to leaders of various countries in attendance, adding that he has also sent e-mails to Microsoft and Intel seeking their support to the ADOC 2.0.
ADOC 2.0 is designed as a follow-up program for ADOC, which is scheduled to expire at the end of 2008, differing from the existing program in its reliance on participation of the private sector and non-government organizations.
ADOC was first proposed by Lee Yuan-tseh, former president of Academia Sinica, Taiwan's foremost academic institution, in his capacity as the Taiwanese representative during the 2003 APEC Economic Leaders' Meeting.
Since its inauguration in August 2004, the Taiwanese government has invested US$8 million in the program, having set up 27 digital opportunity centers in seven APEC member nations, including Vietnam, Chile, and Peru, greatly enhancing their digital-application capabilities via provision of not only software/hardware facilities but also digital-application training and solutions.
The program has also helped Taiwanese ICT (information-communications technology) firms penetrate emerging markets, such as Vietnam, Peru, Chile, and Mexico.
An ICT road show held under the auspices of ADOC in Peru in June, for instance, attracted participation of 10-odd Taiwanese firms, including Elite Group and D-Link, as well as many firms from Chile, Mexico, and the host country, leading to achievement of 71 cooperative projects, with trading volume estimated at NT$420 million.
Moreover, several domestic firms set up "ADOC international ICT alliance" two months ago, aiming to tap Vietnam's US$2.5 billion telecom infrastructure market. In a road show in Vietnam in August, domestic firms secured 77 memorandums of understanding for procurement, worth some NT$100 million in total.
VIA Technologies recently landed orders from the Peru authorities for its project establishing 3,010 telecom centers, thanks to its experience in supplying software/hardware facilities and system-development support, free of charge, to an e-school and an e-center set up there under the ADOC program.
((PL)) (GE) | |
| | ![]() | | | Draft Revised Bill Bans Strikes in Some Sectors
Taipei, Sept. 6, 2007 (CENS)--The Executive Yuan (the Cabinet) passed the draft revisions to the "Law for Handling Labor-Management Disputes" yesterday (Sept. 5), banning employees in the sectors of power, running water, aviation management, securities/futures trading, settlement, and custody, and institutions and schools under the Ministry of National Defense to undertake strike.
Employees in the sectors of mass transportation, communications/broadcast, public hygiene, oil refinery, hospital, fuel gas, and finance, as well as non public-functionary employees in government organizations and public schools, can strike but must notify the regulators three days in advance, and the Council of Labor Affairs (CLA) are authorized to impose a 30-day "cooling period," when they will be forbidden to launch strikes.
CLA pointed out that a new special chapter is instituted in the revised draft containing regulations on strikes, which are scattered in various related laws, such as the Labor Union Law, presently.
The chapter restricts causes for strikes to disputes over adjustment issues, such as working hour or pay change, excluding disputes over rights, such as back pay or layoff. Decisions for strike can be passed by approval by over half of labor-union members via unregistered ballots, different from the current stipulation of the "Labor Union Law" which requires passage by a union-member assembly. The current requirement is difficult for labor unions of large companies with tens of thousands of employees. Moreover, voting on strike proposal can be carried out only after failure of mediation by the regulators.
Employees of the Taiwan Stock Exchange and the GreTai Securities Market will be denied the right to strike due to the monopolistic nature of the institutions and the consideration to assure smooth operation of the securities market, a stipulation adopted upon the request of the Financial Supervisory Commission (FSC).
The draft also envisions setup of an arbitration mechanism for labor-management disputes, in order to shorten the protracted process for solving disputes over labor rights via mediation or lawsuit at present.
((PL)) (GE) | |
| | ![]() | | | E United, FPG, Walsin Lihwa Deploy Stainless-steel Production in Mainland China
Taipei, Sept. 6, 2007 (CENS)--Taiwan's three business conglomerates, including Formosa Plastics Group (FPG), E United Group, Walsin Lihwa Group, are going all out to set up production of stainless steel in mainland China.
FPG has resolved to set up a plant to produce stainless steel in Zhangzhou of Fujian province with designed annual output reaching 720,000 up to one million metric tons, which is expected to have an impact on the neighboring Guangdong province-based Lianzhong Stainless Steel Co. set up by E United Group. Lianzhong currently has an annual production capacity of between 680,000 and one million metric tons.
With the support of its parent in Taiwan, Lianzhong stands firmly as the largest Taiwanese-invested stainless-steel producer in the mainland. The high production efficiency of Lianzhong has amazed the stainless-steel industry in the Asian region.
E United said it has obtained approval from Vietnamese government to set up a large-sized steel mill with designed annual output reaching five million metric tons. But the group will boost the production capacity to 10 million metric tons in the foreseeable future.
But Lianzhong's leading position in southern China region will face tough challenge from the FPG as the latter will complete construction of a stainless-steel plant in Zhangzhou of neighboring Fujian province in as early as three years.
E United also has its advantage as it has built a consolidated marketing network worldwide.
A few years ago, Walsin Lihwa had planned to set up a stainless-steel plant in Nanjing Municipality but the plan was stalled by the mainland's credit-control policy. Despite the aborted plant construction plan, Walsin Lihwa has already tapped the lucrative market through merger and acquisition.
Walsin Lihwa had already entered mainland market a few years ago and has become a major supplier of stainless steel and brass wire. Last year, the group set aside 308 million renminbi, mainland's currency, to acquire a steel mill, which has an annual production capacity of between 250,000 and 300,000 metric tons, in Changzhou of Jiangsu province, through its subsidiary—Walsin Lihwa Specialty Steel.
In the beginning of this year, the group further invested 280 million renminbi to fully acquire a steel mill in Yantai of Shandong province. With the acquisition of the Yantai plant, Walsin Lihwa currently has an annual production capacity of one million tons of stainless steel across the Taiwan Strait.
((BS)) (H) | |
| | ![]() | | | Yuen Foong Yu Halts Supply of Toilet Tissue Paper to RT-Mart
Taipei, Sept. 6, 2007 (CENS)--Because of a pricing problem, Yuen Foong Yu Group, one of Taiwan's leading manufacturers of household paper, has recently taken its "May Flower" brand toilet tissues off the shelves at the leading RT-Mart, a hypermarket owned by Ruentex Group.
In addition, another leading manufacturer of household paper-Cheng Loong Corp. has also taken its "Andante" brand toilet tissues off the shelves at Carrefour hypermarket. Such moves by the two leading paper makers show a tear in the long-term relations between manufacturers and distributors.
P.H. Tseng, vice president of Yuen Foong Yu Consumer Products, a subsidiary of the Yuen Foong Yu Group, confirmed that his company has stopped supplying toilet tissues to RT-Mart since half a year ago because of a failure to agree on setting promotional prices for its products with the hypermarket.
To stand its ground as distributor, RT-Mart has replaced "May Flower"-brand toilet tissues with others on its shelves.
Despite its halt to supply products to RT-Mart, Yuen Foong Yu has seen its share in domestic household-paper market increase as it has concentrated on targeting other distribution channels and convenience stores.
Ho Yi-ta, president of Yuen Foong Yu Consumer Products, said domestic paper manufacturers have been pushed into corners as their profit margins continue to be reduced by distributors over the past few years.
By focusing on own-brand products, Yuen Foong Yu Consumer Products will become independent from its parent sometime in October this year. The company estimated it would see overall sales reach NT$5 billion (US$151.51 million at US$1:NT$33) across the Taiwan Strait this year. Of this, Taiwan will account for NT$3.6 billion (US$109.09 million) and mainland China will secure 300 million renminbi (US$42.25 million).
Cheng Loong said it has stopped supplying toilet tissues to Carrefour since July last year because the hypermarket demanded stricter terms that were unacceptable. Since that time, Cheng Loong's "Andante" toilet tissues has never been carried on Carrefour shelves.
At present, only the U.S.-based Kimberly Clark can sell its "Scott"-brand toilet tissues at various hypermarkets.
Despite the chaotic situation between household paper manufacturers and hypermarkets, both sides are still negotiating to resume doing business.
RT-Mart procurement vice president W.J. Chang said the stoppage in supply of Yuen Foong Yu toilet tissues may not be a permanent situation.
((BS)) (G) | |
| | ![]() | | | Taiwan's Hand Tool Association Has New Chairman
Taipei, Sept. 6, 2007 (CENS)--M.C. Cheng, president of Honiton Industries Inc., was recently elected chairman of the Taiwan Regional Hand Tool Association, making him the 11th top executive of the organization, which represents over 400 Taiwanese makers of hand tools.
Cheng pointed out that he will continue to promote Taiwan hand-tool brands in international markets and set up a dedicated hand-tool industrial park on the island, which is now under plan.
Cheng, whose company specializes in sock wrenches, pointed out that it is urgent for Taiwanese hand-tool manufacturers to open a dedicated industrial park in consideration of the threatening underselling from mainland Chinese rivals and expensive land costs for the manufacturers to expand their operations at home.
The chairman elect noted that a dedicated industrial park for the island's hand-tool makers will offer international buyers a convenient one-stop shopping environment on the island and local manufacturers less-expensive land.
According to the association, the state-run Taiwan Sugar Corp. in late July this year agreed to allocate nearly 100 hectares of land to the association as the site for the park.
The association estimates the land will cost only NT$17,000 (US$515 at US$1:NT$33) per ping, or 36 square feet, because the association will develop the land by itself. Currently, average price of the lands in industrial parks elsewhere on the island is about NT$50,000 (US$1,515). The association organized a preparatory office early this year for land development project.
Cheng pointed out that Taiwan's hand-tool industry is seeking to upgrade by equipping the tools with digital technologies. With high-end tools like digital tools and medical tools increasing in Taiwan's hand-tool industry, Cheng estimated the island's hand-tool industry will be able to maintain annual growth pace of 10% to NT$300 billion (US$9 billion) in 2015 from last year's NT$100 billion (US$3 billion).
Last year, Taiwan exported US$2.5 billion worth of tools, up 4% from a year earlier. In the first five months of this year, the export value of the Taiwan industry totaled NT$36.1 billion (US$1.09 billion), surging 8% over NT$33.4 billion (US$1.01 billion).
The latest election at the association became complicated after Cheng suddenly announced his decision to run for the post against then chairman, Charles Hsieh, chairman of J&K International Co., Ltd.
Hsieh, 66, said he had achieved his mission during his tenure and it was about time to hand over the reins. Hsieh is noted for his efforts in promoting digital technologies for the tools and expanding overseas trade promotions during his three-year term that began Sept. 2004.
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| | ![]() | | | Monthly LCD TV Sales to Exceed 10,000 Units From Oct.: BenQ
Taipei, Sept. 6, 2007 (CENS)--BenQ Corp's monthly sales volume of LCD TVs is expected to outstrip 10,000 units starting October, according to Hank Horng, president of BenQ's Taiwan branch.
According to Horng, BenQ is the leading brand of 37- and 42-inch LCD TVs in the domestic market and sales of the medium-to-large-sized models now account for over 45% of BenQ's total LCD TVs shipment in Taiwan.
BenQ is scheduled to launch a 46-inch LCD TV model in October, which will be priced at about NT$89,000 (US$2,697 at US$1: NT$33), and a 65-inch model in early 2008.
The LCD TV sales are expected to enter a high season from September, Horng said, and BenQ is expected to sell over 10,000 units per month from October to December. BenQ shipped about 6,000 LCD TVs in August, and an accumulated volume of about 50,000 units in the first half.
This year, according to the local president, BenQ's Taiwan operation has turned profitable for several months. Currently, higher unit-price LCD TVs account for about 60% to 65% of BenQ's local sales revenue.
After taking the helm as BenQ's Taiwan president, Horng has been actively developing his company's LCD TV sales and grabbed some market share. Next step, he said, BenQ would focus on developing notebook PC sales in Taiwan and aims to achieve a monthly notebook PC volume goal of over 10,000 units.
Horng claimed that BenQ aims to sell over 6,000 notebook PCs per month in 2008, making it the No. 3 brand in the local market. For cellphone sales, BenQ expects to ship 25,000 to 30,000 handsets per month in the fourth quarter, and achieve an annual volume goal of 260,000 to 270,000 units, about 90% of the firm's original goal of 300,000 units this year.
To promote its brand image, BenQ has been actively sponsoring sports activities in Taiwan. Horng promised that his company would reward every Taiwan athlete who wins gold at the coming 2008 Beijing Olympics.
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| | ![]() | | | Annual Large-sized TFT-LCD Shipments to Exceed Original Forecast
Taipei, Sept. 6, 2007 (CENS)--This year's global shipment of large-sized (over-10-inch) thin film transistor-liquid crystal display (TFT-LCD) panels is expected to reach 357.6 million units, up 30% from 2006 and 5.49% from its original forecast, according to an upward-adjusted forecast recently released by DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting.
DisplaySearch adjusted upward its forecast of the 2007 notebook PC panel shipments to 103.2 million units (up 5.31% from original forecast), monitor panels to 174 million units (up 9.43%), and LCD TV panels to 80.4 million (down 1.95%).
The shipments of notebook PC and monitor panels were larger than expected, the research firm said, and such growing trends are expected to continue in August and September.
David Hsieh, president of DisplaySearch Taiwan Office and vice president of DisplaySearch Greater China, pointed out that the demands from the terminal market outstripped original expectations, which are expected to lead to the annual global shipments of notebook PCs, monitors, and LCD TVs outstripping 100 million, 165 million, and 72 million units, respectively, this year.
DisplaySearch estimated that this year's total LCD TV panel demand volume would reach about 80.4 million units, up 48% from previous year; that for notebook PC panels about 103.2 million, up 29% Year-on-Year (YoY); and that for monitor panels 174 million, up 24%.
As more and more LCD TVs now adopt monitor panels under cost concerns, DisplaySearch adjusted downward its forecast of annual TV-panel demand. According to the company's data, over 900,000 LCD TVs shipped in the second quarter adopted monitor panels, including major sizes of 15-, 17-, wide-format 19-, wide-format 20-, and wide-format 22-inch.
The research firm said that LCD TVs using monitor panel are expected to become a trend in the under-26-inch LCD TV market, especially models with wide-format 19-, wide-format 20-, and wide-format 22-inch panels. That means, DisplaySearch said, about three million LCD TVs are expected to use monitor panels this year.
Hsieh said that most TFT-LCD panel suppliers are enjoying smooth order-taking for September or October, with the office automation (OA)-panel supply even seeing a 20% supply gap. In September, Hsieh estimated, there may be room to raise each OA panel by US$3, or about US$5 for 17-, 19-, and wide-format 22-inch monitor panels.
In October, the end of the high season, he added, the panel quote is expected to see a minor hike of US$1 to US$2 each, or remain unchanged.
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| | ![]() | | | Taiwan Suppliers See Rosy Outlook for Next Six Months
Taipei, Sept. 6, 2007 (CENS)--Taiwan's business monitoring index for the manufacturing sector rose by 3.18 points from a month earlier to 119.24 points in July for a new high in last 12 months, while the corresponding index for the service sector was up by 1.09 points to 120.06 points, according to the survey done by Taiwan Institute of Economic Research (TIER).
The July survey showed that 37.7% of the polled manufacturers anticipated a better business climate in the next six months, which saw a sharp fall of 5.1 percentage points from the corresponding 42.8% posted a month earlier; while those that expected a worse climate went up to 15% from 10.7%. Those who believed that the climate would remain unchanged accounted for 47%, which was the same as that in the previous month.
In the same survey, about 85% of the polled in the manufacturing industry foresaw better business in the next six months despite rising prices of raw materials in the global market. As for the service industry, those in banking and traveling sectors held a conservative attitude toward the future business climate while those in shipping and other marine transportation sectors felt optimistic about operations in the upcoming six months.
T.S. Hung, president of TIER, said that Taiwan's foreign trade would keep growing along with the continuing strong global demand in the second half of the year. Taiwan's financial institutions would in the near future maintain stable interest rates despite having been slightly impacted by the U.S. sub-prime loan storm. He further indicated that Taiwan now sees no looming risk of inflation.
((JL)) (GE) | |
| | ![]() | | | Taiwan's Export Reliance on China Grows to Near 30% in First Half
Taipei, Sept. 6, 2007 (CENS)--Taiwan's reliance on China as an export market hit a record high of 29.3% in the first half of this year, according to the statistics released by the Bureau of Foreign Trade (BOFT) under the Ministry of Economic Affairs (MOEA).
In the same period, Taiwan-made products took a market share of 10.2% in China, down by 0.9 of a percentage point from last year's corresponding 11.1%. Nevertheless, Taiwan was still China's third largest import source, next only to Japan and South Korea.
In June alone, Taiwan's exports to China reached US$6.01 billion, the second highest of its kind and next only to US$6.07 recorded in March of the same year. Compared to the same month of last year, the export value witnessed a sharp rise of 18.9%. As for the imports from China in June, the value posted an annual growth of 12.5% to US$2.33 billion. As a result, the trade surplus for the month jumped by 23.5% to US$3.68 billion.
From January to June of the year, Taiwan's bilateral trade with China totaled US$46.49 billion, of which, exports accounted for US$33.35 billion and imports US$13.14 billion, both experienced double-digit annual rise of 14%. In the same period, Taiwan enjoyed trade surplus of US$20.21 billion with China and the figure is expected to break US$40 billion mark for the full year.
Taiwan's exports to China were mainly electric machinery equipment & related parts, plastic products, organic chemicals, steel & iron, copper & related products, and miscellaneous chemical items, all of which saw sizable annual growths between 14.9% to 41.3% in exports to China in the first half.
((JL)) (GE) | |
| | ![]() | | | Kinpo Affiliates Racked Up Considerable Revenues in Aug.
Taipei, Sept. 6, 2007 (CENS)--The Taiwan-based Kinpo Group generated considerable turnover in August, with its Cal-Comp Electronics (Thailand) Pub Co. Ltd. posting record revenues of NT$8.42 billion in combined revenue and Compal Electronics Inc. also posting a new high in sales, according to company sources.
Last year, group chairman Rock Hsu reorganized Kinpo Group, running more than 12 enterprise in different industries, into two major subgroups, namely Kinpo Group and Compal Group, with the two affiliates Cal-Comp and Compal being top performers in terms of sales growth.
Cal-Comp reported combined revenues of NT$8.42 billion in August, up 6.7% from July and 23.66% from last August, and has scored aggregate revenues of NT$55.268 billion over the past eight months this year, growing 37.81% from a year earlier, with net profits of NT$0.36 per share for the period.
Institutional investors noted that fueled by increasing orders for mobile phones and hard disk drives in the second half of this year, Cal-Comp is expected to see its September revenues keep moving up, and maintain a 30% growth at least in sales revenues for the third quarter of the year from the second quarter and a small increase in that for the fourth quarter.
Cal-Comp has been diversifying its product lines for many years, including low- and middle-end mobile phones, hard disk drives and set top boxes, with its efforts paying off in the second half of this year.
With its shipment of hard disk drives to two major clients Seagate and Western Digital, who collectively command half the global market for the products, edging up in the second half of this year, Cal-Comp foresees its annual revenue to exceed an original projection of US$2.5 billion.
In addition, Compal also posted shining sales performance for the first half of this year, with its sales revenue and shipment both hitting single-month highs in July. Compal is expected to further drive up the corresponding figures in August due to a booming season for notebook PCs.
According to institutional investors, its clients, including Japan's Toshiba, Taiwan's Acer and U.S.'s HP, will start to increase orders for new notebook PCs during the second half of the year, Compal projects shipment of notebook PCs to reach 5.8 million units for the third quarter, up 14% from a quarter earlier, and a 4% growth in that for the fourth quarter, with an increase of 26% and 3% in sales revenue for the third quarter and the fourth quarter, respectively.
((SC)) (E)
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| | ![]() | | | ASUS to Squeeze into World's Top 3 NB PC Brands in Six Years
Taipei, Sept. 6, 2007 (CENS)--ASUSTeK Computer Inc. one of the world's leading suppliers of notebook PCs with its own ASUS brand, aims to squeeze into the world's big five brands in next three years, and into top three brands in next six years, according to Jerry Shen, chief executive officer of the company.
To achieve the objective, ASUSTeK has been active to seek to acquire mainly IC design and web design companies, and, meanwhile, to integrate its production resources with other suppliers in the line, according to Shen.
ASUSTeK will have built its own brand for exactly 10 years in 2007, with ASUS ranking No. 8 brand of notebook PCs in global market share at the moment. However, Shen projected that the company, which usually sees explosive increase in sales in the second half of a year, is very likely to challenge annual shipment of more than four million notebook PCs for this year, hence will move up two notches to the No. 6 position.
In the goal to become the world's top three brands in six years, ASUSTeK plans to still concentrate on middle- and high-end products for consistent growth in sales of notebook PCs, attempting to squeeze into top five brands in the first three year as its first stage.
And then, in another three years, or the second stage, Shen noted, the company will venture into providing low-end models for a further increase sales volume. However, it will be challenging for the company to control costs and operations at that time, which will depend on accumulation of experience.
At present, ASUSTeK focuses promotion in the European and Pacific Asian markets, with the first place in Taiwan, fifth in Europe and third in China, and therefore has yet to be affected too much by the sub-prime-mortgage crisis occurring in the U.S., according to Shen. But, he emphasized that the company will have to explore the U.S. market ultimately, when it becomes world's big three brands, and is afoot to introduce more models into the market starting this year, in addition to existing models for gaming.
On the other hand, Sharon Su, chief investment officer of ASUSTeK, is to take charge of production, conducting investment and acquisition of other companies to integrate production resources, according to Shen.
ASUSTeK scored combined revenue of NT$226 billion for the first quarter of this year, with sales of own-branded notebook PCs accounting for 23%, and the corresponding figure of NT$137 billion for the second quarter, dropping 40% from a quarter earlier, due to declining shipment of Play Station 3 consoles.
Nevertheless, thanks to an increasing proportion of own-branded products in shipment, the company smoothly drove up its gross profit rate to 11% in the second quarter, higher than 8% posted in the first quarter.
ASUSTeK projects its combined revenue for the third quarter to grow by 20% from a quarter earlier, with a sales boom in the second half of the year, and annual revenue of US$23 billion, or NT$720-750 billion, for this year. In other words, its own-branded notebook PCs will play a key part, infusing the company with momentum for sales growth in the future.
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| | ![]() | | | Taiwan's Card Issuers Focus on Top-end Market
Their recent severe problems with defaults have turned Taiwan's card-issuing banks more conservative, and most of them are now moving toward the issuance of cards in the high-end consumer market where the perceived risk of bad loans is much lower.
The banks are offering different kinds of credit cards designed for different kinds of high-end consumers: gold cards, platinum cards, infinity cards, global cards, and co-branded cards.
These cards are, of course, not so easy to get as run-of-the-mill credit cards. Applicants for the infinity cards offered by Visa International Service or the global cards from MasterCard International have to prove an annual income of more than NT$2 million (US$60.606 at NT$33:US$1). To get a gold card, the applicant must have assets of more than NT$3 million (US$90,909).
Taiwan currently has an estimated 50,000 infinity cards, and 15,000-20,000 global cards, in circulation. Market observers say that the targets are 90,000-200,000 for the former and 210,000-250,000 for the latter.
Infinity cares are issued by the Chinatrust Commercial Bank, Taishin International Bank, Taiwan Shin Kong Commercial Bank, Far Eastern International bank, Union Bank of Taiwan, and Taiwan Cooperative Bank. Global cards are issued by the Cathay United Bank and Chinatrust.
Taishin has the largest number of these top-end cards in circulation, at 15,000, followed by Chinatrust with about 6,000.
Taiwan Shin Kong president Lee Tseng-chang says that the average holder of these cards spends at least NT$28,000 (US$848.48) per month, and rarely uses revolving credit or defaults. Besides being good card customers, these cardholders also provide a pool of potential wealth-management clients for the banks.
Some banks offer special incentives to attract preferred clients. Taiwan Shin Kong, for instance, cooperates with other members of the Shin Kong Group to offer such draws as 24-hour medical information services and a 50% discount on check-ups provided by the Shin Kong Wu Ho Su Memorial Hospital, as well as a free one-night stay at the group's Jaspervilla serviced apartments in Taipei.
Medical Incentives
For an additional fee, holders of Shin Kong's infinity cards can become members of the Shin Kong Medical Club, a health-management company, and are given free health-oriented trips to Japan.
Taiwan Shin Kong has issued 3,300 infinity cards so far. It has found that 60% of those who hold these cards are women, so the bank plans to cooperate with the group's department stores in offering discounts to attract more of them. It hopes to have 5,000 holders of infinity cards by the end of the year.
Taishin reports that the minimum annual income for its infinity card applicants is NT$3.5 million (US$106,060), and that the annual fee for its cards is NT$35,000 (US$1,060). The annual fee will be exempted beginning in the second year if the cardholder racks up spending of more than NT$3 million (US$90,909) on the card during the year.
The company is offering incentives in cooperation with China Airlines: holders of its infinity cards can buy economy-class tickets on CAL, and get upgraded to business class. This offering is considered a major factor behind the success of these cards; however, it requires Taishin to pay the airline about NT$100 million (US$3.03 million) per year. This may be too much of a burden; if the reports are correct, Taishin will suspend this incentive on Oct. 31 this year.
Chinatrust also requires its infinity cardholders to have an annual income of at least NT$3.5 million (US$106,060), and to pay an annual fee of NT$25,000 (US$757.5) for the main card and subsidiary cards.
The company is cooperating with EVA Airways to offer discounts of up to 40% on business-class flight tickets (some routes, including those serving Hong Kong and Macao, are excluded). According to a senior Chinatrust official, the bank also offers professional private financial consulting services to its top cardholders. (JL, August 2007) | |
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