Taiwan Stock Exchange Holds Symposium in KL to Urge Malaysian Taiwanese Companies to List at Home.

KUALA LUMPUR, Malaysia -- Taiwan Stock Exchange Corporation ("TSEC") Chairman Dr. Wu Rong-I hosted the "2008 Taiwanese Enterprises Symposium, Malaysia" in Kuala Lumpur today. The event is aimed at communicating with local Taiwanese firms, to understand their development status and to share the bourse's strategic plan to attract overseas companies to list in Taiwan.

The visit to Malaysia follows a series of visits to New York, London, Dubai, Abu Dhabi, Singapore and Hong Kong in 2007, and the Middle East, Vietnam and Thailand in 2008. Taiwan corporations comprise the 3rd largest investor in Malaysia, investing up to USD 9.87 billion. Taiwanese investment in Malaysia accounts for almost 20% of total ASEAN investment.

Participants of the "2008 Taiwanese Enterprises Symposium, Malaysia" include 43 companies and 3 journalists. Dr. Wu explained in detail the "123 Plan for attracting overseas companies" which was approved by the Executive Yuan of the Taiwan government. He also analyzed the benefits of listing in Taiwan to overseas companies.

Brilliant performance demonstrated by Taiwan market

According to statistics from the World Federation of Exchanges, the Taiwan market has performed better than Southeast Asian markets such as Hong Kong, Singapore, Malaysia, Vietnam and Thailand in terms of market capitalization and transaction volume. It also tops the list in terms of number of listed companies and turnover rate.

The first quarter of 2008 was disappointing to most Southeast Asian markets. Singapore, Hong Kong and China markets suffered declines of 20.29%, 23.10% and 13% respectively, whereas the Taiwan market grew by 3% during the same period. "There is an upward trend for exports from Taiwan. This proves that we are less affected by the downturn in the US," Dr. Wu said.

Amending statutes and assisting corporations to list

In face of intense competition in the international financial community, TSEC is proactive in enlarging its own scale by pushing for more listings. TSEC offers Taiwanese companies the "easy, fast, simple and convenient" method to list in Taiwan. TSEC could provide overseas Taiwanese companies with a list of underwriters and accountants who are experienced in assisting companies for listing. If companies follow the listing schedule to appoint underwriters and accountants, it is expected that they could be listed within a year at a low listing cost.

After the presentation by Chairman of TSEC Dr Wu in the symposium, Taiwanese companies realized that capital raising in Taiwan is quite simple. However, some attendees had further queries on the listing procedures and fees for overseas companies. They also expressed queries about the restriction imposed on the use of capital raised through TDRs as well as applicability of their accounting principles in Taiwan. To address their concerns, TSEC highlighted that they had already submitted a plan to the relevant authority for uplifting the restriction on the use of capital raised in Taiwan. TSEC's commitment to continuously simplify and relax the listing procedure, listing fees and accounting principles is well received by the audiences.

TSEC will continue its campaign to attract overseas companies to list in Taiwan, and act as the bridge between quality companies and international investors. It will strive to build TSEC as an ideal fundraising and trading platform by building global service networks for Taiwan companies, amending related statues and making the listing criteria for overseas companies. Companies shall be regulated under the "Foreign securities issuance regulations" if they wish to raise fund in Taiwan.

Dr. Wu expressed that Taiwanese overseas companies can raise funds at lower costs in Taiwan. The funds that they raised may be further invested in places they desire and facilitate economic development. On the other hand, the Taiwan market can benefit from new choices, internationalization and increased competitiveness, thus creating a multiple-win situation.

About Taiwan Stock Exchange Corporation

Founded in 1961, TSEC works with the Financial Supervisory Commission (FSC) to regulate Taiwan's stock market, enhance market transparency and improve market infrastructure. It currently offers trading markets for stocks, warrants, Exchange-Traded Funds (ETFs), Taiwan Depository Receipts (TDRs) and corporate bonds.

About requirements for primary listing in Taiwan for overseas corporations

1. Only requires due diligence of documents: On-site due diligence is currently required for the IPO of domestic companies.

2. Primary Listing (IPO) Enabled: Most overseas corporations listed by issuing Taiwan Depository Receipts (TDRs) in the past. Upon amendment of relevant statutes, overseas companies will be allowed to launch primary listings, a much simplified process.

3. Requirement of 3 years operation history: if company A from Malaysia wishes to list in Taiwan, it may establish a holding company B (in places such as the Cayman Islands) and list company B. There is no operation history requirement for company B, as long as the subsidiary company, Company A, has operated more than 3 years.

4. Two sets of requirements available: originally, a company must have at least NTD 600 mln (USD 20 mln) paid-in capital in order to list. Under the new regulations, those smaller companies unable to fulfill this requirement may fulfill an alternative requirement by market cap at least USD 50 mln at the IPO. Thus, a company with a total 20 mln shares setting the offering price at USD 3 will be able to fulfill the listing criteria.

5. Profit test: it is required that the company record at a minimum profit of an aggregated NTD 250 mln (USD 8 mln) within the most recent 3 fiscal years, and a minimum profit of NTD 120 mln (USD 4 mln) in the most recent fiscal year.

6. Accounting standards: overseas companies may follow the Taiwan GAAP, the US GAAP or the IFRS. For accounting principles other than the Taiwan GAAP, the major differences in items and amount should be disclosed. Audit may be done by foreign accountants, but the listing company must gain the signed certification by a Taiwan accountant.

7. The listing company must undergo counseling by the underwriter or list on the emerging market for a period of 6 months.

8. Funds raised will be denominated in NTD.

9. Upon the due diligence process, the company will be listed in accordance to its sector.