However, he noted that Southeast Asian countries wanted Taiwanese investors to continue providing employment and hoped the government would encourage more investment in the region. Businessmen have not been rushing in to mop up the bargains despite the tempting prices particularly of finance houses and hotels. And while there are reports that Taiwanese businessmen are interested in buying five-star hotels in Thailand and South Korea, some have put their investment plans on hold. Tuntex, a Taiwanese petrochemical company has recently frozen plans for a new plant in Thailand. The majority of Taiwanese investors believe the risks are still too great in the region and that further price falls are still possible, even though the currencies of Malaysia, Thailand, Indonesia, Philippines and South Korea have tumbled by between 30 and 70 per cent in recent weeks, providing cheap investment opportunities for Taiwanese businessmen whose currency has dropped only 20 per cent during the same period.
Investors also fear social unrest in Thailand and Indonesia.
Some analysts also point out that Asian countries, particularly Indonesia and Malaysia, are not happy seeing wealthy foreigners buying up their assets when the chips are down. Even the Taiwanese government is treading carefully over official assistance. Taiwan was deeply mortified in 1988 when Seoul switched its diplomatic ties to Beijing with little warning. If the trips were intended to promote fairer trade terms and to fight for longer-term privileges for Taiwanese businessmen, they would serve the Taiwan economy better, Yok said. Information contributions are welcome and will be integrated into country profiles.