2009 was a key transformative year for Taiwan. Even as the country recovers from the recent financial crisis, its thawing relationship with China has now opened up exciting new avenues for Chinese investments in specific Taiwanese industries. Moreover, Taiwanese businesses are now seriously strategizing to position themselves in the Chinese market to take advantage of China’s shift from the “World’s Factory” into the “World’s Market”.

China’s economy has held strong despite the financial crisis, impressing everyone with its strong economic growth. In addition, Chinese businesses are proactively expanding via merger and acquisition activities. In April’s Hainan Boao Forum, Prime Minister Wen Jiabao announced several important policies in regards to Taiwan, which included encouraging Chinese companies to invest in Taiwanese industries, endorsing Chinese tourists to visit Taiwan, and promoting Chinese imports of Taiwanese products.

However, with private equity activity continuously decreasing and multi-national companies choosing to keep their investments at a constant, these new economic policies are not enough to boost Taiwan’s capital raising needs. We believe that there is a huge gap between policy and reality, and the government has not yet clearly explained to potential Chinese and foreign investors what Taiwan’s true economic value is.

Due to these factors, we decided to form the Taiwan M&A and Private Equity Council (“MAPECT”) to advocate Taiwan’s economic advantages and bridge the gap between the public and the government. Aside from actively endorsing M&A and private equity deals in Taiwan, MAPECT also advises government authorities of potential policies, promoting broad economic cooperation with China and the rest of the world.

MAPECT’s framework includes: (1) A diverse membership of professionals that have extensive experience in securities firms, commercial banks, accounting firms, law firms, and academia. We tap into many different fields in the spirit of creativity and cooperation. (2) Our influential power comes from our esteemed council, which is composed of prominent members of various different industries who are passionate about promoting Taiwan. Together, MAPECT holds an influence that can be used as a direct medium to the government. (3) MAPECT holds an international perspective that is not just Taiwan-focused. We believe that successful future M&A and private equity activity is a two-way street between Taiwan and the rest of the world.

Through MAPECT, we can achieve the following:

• Formulate greater, faster, and fairer industry integration
• Increase cross-strait business entity collaborations
• Encourage more foreign and Chinese capital flow into Taiwan via financial investments and strategic business synergies
• Help Taiwanese authorities formulate policies to internationalize Taiwan’s industries
• Promote Taiwan’s industries to become key players in the world market
• Position Taiwan to become one of the most active private equity markets in Greater China
• Promote the funding of outstanding local private equity funds
• Advocate the Taiwan Stock Exchange as Asia’s NASDAQ

MAPECT Chairman
CY Huang