The Looming Challenge for National Healthcare Insurance 全民健保面臨迫在眉睫的挑戰 TAIWAN BUSINESS TOPICS May 2019 | Vol
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May 2019 | Vol. 49 | Issue 5 THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI IN OF COMMERCE THE AMERICAN CHAMBER The Looming Challenge for National Healthcare Insurance 全民健保面臨迫在眉睫的挑戰 TAIWAN BUSINESS TOPICS TAIWAN May 2019 | Vol. 49 | Issue 5 Vol. 2019 | May INDUSTRY FOCUS 中 華 郵 政 北 台 字 第 FINANCIAL SERVICES BACKGROUNDER 5000 RECOVERY FROM MORAKOT 號 執 照 登 記 為 雜 誌 交 寄 ISSUE SPONSOR Published by the American Chamber Of NT$150 Commerce In Taipei Read TOPICS Online at topics.amcham.com.tw 5_2019_Cover.indd 1 2019/5/9 上午11:49 CONTENTS NEWS AND VIEWS 6 Editorial Strengthen the U.S.-Taiwan MAY 2019 VOLUME 49, NUMBER 5 Alliance for the AI Age 一○八年五月號 台美攜手 共創AI時代新猷 7 President’s View Publisher Check out our updated mission William Foreman statement and take our survey Editor-in-Chief By William Foreman Don Shapiro Art Director/ / 10 Taiwan Briefs Production Coordinator By Jane Rickards Katia Chen Manager, Publications Sales & Marketing Caroline Lee Translation COVER SECTION Kevin Chen, Yichun Chen, Andrew Wang 16 The Looming Challenge for National Healthcare Insurance American Chamber of Commerce in Taipei 全民健保面臨迫在眉睫的挑戰 129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan For the time being, Taiwan’s P.O. Box 17-277, Taipei, 10419 Taiwan Tel: 2718-8226 Fax: 2718-8182 highly popular universal e-mail: [email protected] website: http://www.amcham.com.tw healthcare program is still operating in the black. But 050 due to rising costs and a 2718-8226 2718-8182 rapidly aging population, Taiwan Business Topics is a publication of the American Chamber of Commerce in Taipei, ROC. Contents are the system may run out of independent of and do not necessarily reflect the views of the Officers, Board of Governors, Supervisors or members. funds within two years unless © Copyright 2019 by the American Chamber of Commerce in increased premiums and other Taipei, ROC. All rights reserved. Permission to reprint original 24 Can the U.S. Learn material must be requested in writing from AmCham. Production reforms are put in place. done in-house, Printing by Farn Mei Printing Co., Ltd. Something from Taiwan’s 撰文/李可珍 By Jane Rickards Healthcare? 10866 By Jane Rickards 22 Innovations from a Pilot 5000 ISSN 1818-1961 Smart Hospital 27 Kidney Stoned in Taipei By Jane Rickards By Jim Klar Chairman: Leo Seewald Vice Chairmen: C.W. Chin, Petra Jumpers Secretary: Fupei Wang Treasurer: Al Chang BACKGROUNDER 2018-2019 Governors: Anita Chen, C.W. Chin, Petra Jumpers, Leo Seewald, Daniel Tseng, Fupei Wang. 29 Making a Comeback from 2019-2020 Governors: Morakot Al Chang, Albert Chang, Seraphim Ma, Jan-Hendrik Meidinger, Paulus Mok. Some areas of southern 2019 Supervisors: Vincent Shih, Terry Tsao, Dylan Tyson. Taiwan have recovered more rapidly than others from the COMMITTEES: Agro-Chemical/ Melody Wang; Asset Management/ powerful 2009 typhoon with Christine Jih, Derek Yung; Banking/ Paulus Mok; Capital Markets/ Nadia Chen, Mandy Huang, C.P. Liu; Chemical its deadly flooding and land- Manufacturers/ Charles Liang, Michael Wong; Cosmetics/ slides. Shirley Chen, Abigail Lin; CSR/ Lume Liao, Fupei Wang; Energy/ Randy Tsai; Human Resources/ Vickie Chen, By Steven Crook and Monica Han, Carmen Law, Seraphim Ma; Infrastructure/ Eryk Michael Smith Wayne Chin, Paul Lee; Insurance/ KT Lim, Linda Tsou, Dylan Tyson; Intellectual Property & Licensing/ Jason Chen, Peter Dernbach, Vincent Shih; Marketing & Distribution/ Wei Hsiang; Medical Devices/ Jeffrey Wang, Joanne Yao; Pharmaceutical/ Petra Jumpers, Rie Nakajima; Public SPONSORED CONTENT Health/ Joyce Lee, Sophia Lee, Tim Shields; Real Estate/ Tony Chao; Retail/ Ceasar Chen, Mark Chen, Peggy Liao; 8 In Biopharma, Amgen Sets the Pace Sustainable Development/ Kenny Jeng, Cosmas Lu, Kernel Wang; Tax/ Stella Lai, Cheli Liaw; Technology/ Cynthia 14 Zuellig Pharma: Making Healthcare More Accessible Chyn, Hans Huang; Telecommunications & Media/ Thomas Ee, Joanne Tsai; Transportation & Logistics/ (tba); Travel & Tourism/ Gina Tsai. 43 Shangri-La’s Far Eastern Plaza Hotel Italian Cuisine Takes a New Twist at the Marco Polo 4 TAIWAN BUSINESS TOPICS • MAY 2019 5 contents.indd 4 2019/5/9 下午4:21 MAY 2019 • VOLUME 49 NUMBER 5 COVER SPONSOR 46 Visa Direct – the Safe, Convenient and Cheaper Way to Transfer Money 48 Seeing Taiwan Footsteps Through Old Hsinchu 50 Isa Huang The Coming Antibiotic Resistance Crisis Fubon Financial Holdings Overview Committed to becoming one of Asia’s first-class financial institutions, Fubon Financial Holdings has built a strong lineup of financial service companies. Its major subsidiaries include Fubon Life, Taipei Fubon Bank, Fubon Bank (Hong Kong), Fubon Bank (China), Fubon Insurance, Fubon Securities. As INDUSTRY of the end of 2018, Fubon Financial Holdings had total assets of US$251 billion, ranking second among Taiwan’s financial F CUS holding companies, and it has been the most profitable A Report on the Financial company in the industry in terms of earnings per share (EPS) for Services Sector ten consecutive years. The company was named to the Fortune By Matthew Fulco Global 500 for the first time in 2018. 34 Does Taiwan Need Virtual Banks? Fubon Financial Holdings’ subsidiaries rank among the top Internet-only banks could poten- performers in their respective sectors. Fubon Insurance has tially serve a credit-strapped consistently led all P&C insurers with an over 23% market young demographic that prefers share. Taipei Fubon Bank is one of Taiwan’s biggest privately to bank online, but what will be the effect on an already saturated owned banks; Fubon Securities ranks among Taiwan’s top banking sector. three securities houses; and Fubon Life ranks second in total 37 Taiwan’s Mobile Payments premium. Market Heats Up The competition for market share Fubon Financial Holdings is now the only Taiwanese financial for mobile-wallet business is institution with banking subsidiaries in China, Taiwan and Hong intensifying as consumers increas- ingly settle transactions with their Kong, and the company continues to expand its Asian network smartphones. and deepen its presence in Greater China. 40 Taiwan Set to Regulate STOs Regulating security token offerings Looking ahead, Fubon Financial Holdings will continue to could provide a new equity fund- strengthen our presence in Taiwan and pursue stable growth. raising channel for startups, but At the same time, Fubon Financial Holdings will continue to questions remain about the utility of the new rules. search for suitable M&A opportunities in Greater China in order to develop a foothold in the regional market and move closer to AMCHAM EVENTS the goal of becoming a first-class business group in Asia. 44 Hsieh Nien Fan 2019 A Night for Commemoration TAIWAN BUSINESS TOPICS • MAY 2019 5 5 contents.indd 5 2019/5/9 下午4:22 E D I T O R I A L Strengthen the U.S.-Taiwan Alliance for the AI Age rtificial intelligence will be the electricity of the sarily elite – AI algorithm engineers. China has an abundance twenty-first century – a technology that will super- of all of these things, Lee says. A charge industries across the board. That’s just one That may very well be true. But let’s return to Lee’s initial of many bold observations from Taiwanese venture capi- claim that the age of discovery is mostly over. Is that possible? talist Kai-Fu Lee’s new book, AI Super-powers: China, Silicon When has innovation ever ended? Predicting how technology Valley and the New World Order. will evolve is a tricky task, and many of the most brilliant It’s a provocative must-read for anyone who wants to experts have gotten it wrong. better understand the trends in technology that are going to Lee’s arguments feed into a bigger popular discussion transform global business – and our daily lives. about how the world is dividing into two techno blocs, one Lee argues that China will become the dominant power dominated by China and another aligned with the U.S. Amer- in AI. This is a claim that is vulnerable to challenge, but it’s ica’s advantage is that it has longstanding relationships with important not to let any skepticism about his argument feed allies that bring a lot of talent and potential for innovation. complacency. Lee’s book should be read as a loud wake-up Taiwan is one of those key allies, so Washington needs to call for the U.S. and Taiwan. Both need to get their acts have a deeper appreciation of the role the island plays as a together in serious ways and find ways to tighten their alliance U.S. ally. A robust Taiwanese economy that creates interesting so that they can better compete in the age of AI. jobs for young workers and retains talent is squarely in the One of Lee’s bolder and most controversial points is that U.S. strategic interests during the AI era. AI’s “age of discovery” is over. This era was dominated In Taiwan, policymakers need to make sure they’re doing by brilliant elite thinkers, mostly clustered in the U.S. and everything they can to strengthen the country’s position as a Canada. Lee says their research led to the spectacular ramping safe haven for intellectual property. Officials need to be savvier up of what computers could do. But he says the fundamental about attracting the foreign investment that Taiwan desper- AI technology has already been developed and that engi- ately needs if it’s going to be a hub for innovative industries. neering talent has reached its threshold. Now we’re shifting to Both sides have spent far too much time locked in long- a new era – the “age of implementation” – when AI is applied running disputes over issues such as Taiwan’s ban on U.S.