Political and social instability, a labor shortage,...

Political and social instability, a labor shortage, high prices and rising crime are making foreign and local investors look away from Taiwan.

Foreign investment approvals fell about 48% to $138 million in April from $267 million in 1989, the steepest fall in two years, the Investment Commission said.

Overseas investment by the Taiwanese jumped 276% to $139 million from $37 million during the same period.

“In the past we were known as an investors’ heaven, but these favorable factors no longer exist in Taiwan,” said Lu Ming-jen, economics professor at National Chengchi University.

Economists said local and foreign businessmen were looking for somewhere else with a better investment climate.

Constitutional reform protests, high prices and wages, and reports of a rising crime rate had slowed foreign investment in Taiwan and were driving local money out, they said.

Officials at the Bureau of Statistics said Taiwan’s private domestic investment would grow at a real 3.3% this year, down from last year’s 5.44%. Domestic investment rose 11% to 24% between 1986 and 1988.