Taipei, Oct. 29 (CNA) As the majority of Taiwan's foreign investment went to China and the BRICs (Brazil, Russia, India and China) had been the "media darlings" in recent years, it's time for Taiwanese businesses to turn their focus to the Middle East and Latin America, two regions with vast potential, financial researchers said Monday.
Economic development of six Gulf Cooperation Council (GCC) members -- Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Qatar -- has been so phenomenal that Taiwan has to be a part of it and take advantage of the great opportunity, said Wang Mei-ling, a researcher of Polaris International Securities Investment, in a forum which focused on investment opportunities in developing nations.
GCC member nations are expected to have high demands in information technology (IT) services, which is one of Taiwan's strengths. Therefore, it will be Taiwan's great opportunity to make its way into the Middle East market, she said.
For example, Qatar is seeking help from Taiwan's Institute for Information Industry (III) to plan for a science park. Taiwan will be able to provide with its top-caliber engineers, which are among the most sought-after work force in these Gulf nations, Wang said.
These countries knew very well that they need to take advantage of the current oil price surge and seek multi-faceted development to prepare for potential price downfall or oil depletion. And that's why they will increase investments in Asia dramatically while keep investing in the Western countries, Wang said.
Investors in the region has shifted their priority to Asia following the Sept. 11 terrorist attack and deteriorating U.S.-Middle East relations, she claimed.
A survey of more than a dozen Gulf investors found that they were planning to place 10-30 percent of their assets allocation in Asia, she said, adding that the amount could reach US$ 250 billion in the next five years and Taiwan should try to attract some of the Middle East investors.
The future of Latin America is intriguing as it has the advantages of large markets, rich resources and rapid-developing labor skills, but the economic integration and political stability in certain countries are still in doubt, said Hsieh Ming-jui, a professor at National Open University's Department of Business.
Given the region's uncertainties, Taiwanese businesses will probably hesitate in investing in Latin America, Hsieh said. However, the economic integration and development of Latin America is expected to be a factor in Taiwan's global competitiveness. Taiwan needs to understand more about the market and increase bilateral cooperation, he said.
The forum was organized by Taiwan Research Institute. Former president Lee Teng-hui served as the Honorary Chairman of the institute.