The bank’s experts share insights of economic outlook, AI trends, trade corridors, and corporate finance strategy with the audience

HSBC yesterday held “HSBC Taiwan 40th Anniversary – Global Economic Outlook Forum” in Taipei, featuring HSBC experts discussing four key topics with over 100 corporate representatives from various sectors, sharing insights on how Taiwanese companies will continue to thrive and seize opportunities amidst the rapidly changing economic landscape.

The four topics include global and Asian economic outlook, trends in artificial intelligence (AI), Taiwan-ASEAN and Taiwan-Middle East corridor opportunities, as well as corporate finance strategies.

“HSBC aims to play a pivotal role for supporting Taiwanese companies’ international expansion and industrial development. HSBC has been continuously the journey for the past 40 years to develop full-scope and one-stop financial services, from cross-border financing, foreign exchange services, trade finance, cash management, to supply chain financing, for our corporate customers,” HSBC Bank (Taiwan) Ltd CEO Adam Chen said in the opening remarks of the event.

“Going forward, the bank will continue to leverage its strengths, connecting its insights for the Taiwan market with its global network capability to provide superior and efficient financial solutions tailored to our clients’ needs,” Chen added.

The full-day forum was unveiled by the analysis session of global and Asian economic outlook by Frederic Neumann, Chief Asian Economist and Co-Head of Asia Economics Research at HSBC. He characterized the economic prospects for the Year of the Dragon in 2024 as having “still fire in the belly,” indicating that despite the presence of uncertainties in the broader environment, the growth outlook for most Asian economies remains relatively optimistic.

Furthermore, Amanda Murphy, Head of Commercial Banking, South and Southeast Asia at HSBC, along with Christina Ma, Head of Global Banking, Asia Pacific at HSBC, and HSBC senior leaders, discussed several key market themes at the forum.

In terms of corridor opportunities, Taiwan plays a pivotal role in global technological development, with its economic spillover effects driving innovation and transformation across different areas, including electric vehicles, data centers, and machinery, said HSBC speakers, adding that foreign investment to Taiwan has been expanding from the sectors of semiconductors, ICT, and TMT, to new economy field such as 5G, AI, sharing economy, satellites, and renewables, backed by Taiwan’s strategic geographical position, policy support, and talents accessibility.

On the other hand, the two major emerging markets – ASEAN and the Middle East – are accelerating the pace of reforms to keep up with global trends, including economic diversification, infrastructure development, and urbanization, along with digitalization driven by the relatively young population and huge consumption potential in the two regions, the bank said, adding that these key focuses will bring tremendous business opportunities to Taiwanese companies.

For the rapid advancement of AI applications, HSBC speakers said the trend presents critical opportunities for Taiwan’s industry ecosystem, given that Taiwan’s technology sector has long been benefited from the robust growth of AI supply chain. The current wave driven by AI enables Taiwanese industries to showcase significant advantages – leveraging the accumulated capabilities and strengths in semiconductors, components, and downstream to midstream manufacturing. Overall, Taiwanese companies are expected to play a vital role in meeting strong demand for AI-related hardware and software.

This forum further explored how businesses can enhance their financial resilience during a period of interest rate cuts. HSBC speakers highlighted that although a lower interest rate environment presents opportunities such as reduced financing costs and increased investment prospects, it also brings challenges like heightened currency risks and intensified market competition. Therefore, the key focus for businesses is to seize the potential capital growth that come with lower rates whilst effectively managing associated risks. The approaches of how businesses adjust financial strategies, optimize capital structures, and utilize financial instruments to improve cash flow were further discussed.

HSBC is the only major international bank in Taiwan providing services to full spectrum of customers with the global network capability. With its network covering 90% of the world’s trade and capital flows and an on-the-ground presence in major regions, HSBC is integral to support businesses at every stage of their growth. In fact, HSBC provides clients with unrivalled access to the East and West, with 70% of its Global Banking and Markets investments booked in the East originating from clients in the West. HSBC is capable of empowering clients in the Asia Pacific to access Western markets and facilitate trade and capital flows across the world.