Cabinet targets Taiwan’s economy for transformation

2015/07/29

No efforts will be spared in promoting innovation, investment and job creation en route to fast-tracking structural changes to Taiwan’s economy, according to the Cabinet July 27.

“Taiwan’s economic fundamentals remain healthy despite a decline in exports during the first half of the year,” Cabinet spokesman Sun Lih-chyun said. “This drop of 7.1 percent is largely due to drastic falls in global oil prices and slower-than-expected economic recovery worldwide.

“But from a long-term perspective, Taiwan needs to do more when it comes to export diversification, investment promotion and sector upgrades so as to fully embrace industrial transformation.”

According to Sun, these goals can be achieved through a raft of measures proposed by the National Development Council based on input from the ministries of Economic Affairs, Finance, and Transportation and Communications, as well as the Financial Supervisory Commission.

“The top priority is to shift the focus from cost efficiency to value creation,” Sun said, adding that the government will work to build a business environment more conducive to fostering key policy agendas spanning innovation, services industries and productivity 4.0.

In terms of export promotion, it is imperative Taiwan changes from an exporter of intermediary goods to one providing systematic products and services catering to emerging markets such as India and Indonesia, he added.

“In this regard, sectors targeted for strategic promotion include culture and creativity, tourism, turnkey and system-integration solutions like Taipei City Government’s U-bike project, as well as sectors meeting the special needs of seniors.”

With regards to investment promotion, Sun said the government will prioritize public infrastructure projects as a way of raising Taiwan’s profile as a leading destination for international funds.

“We are also seeking to spur private sector investment,” Sun said, citing plans to offer NT$740 billion (US$23.3 billion) in loans to firms from potential-laden sectors such as biotechnology, green energy and smart cities.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=233092&ctNode=413)