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Economic Daily News: Challenges for Taiwan's economy in 2014

Economic Daily News: Challenges for Taiwan's economy in 2014

In his New Year's Day address, President Ma Ying-jeou said the government's top priority this year is to revive Taiwan's sluggish economy and he urged the people to unite to work toward that goal. Indeed, Taiwan's economy is at a crucial stage of transition. Despite improvement in the European and U.S. economies and significant export growth in other Asian countries, Taiwan's exports declined in September and October last year, remained flat in November and were unsatisfactory in December. Over the past decade, Taiwan's export growth has lagged behind most other countries in Asia. Taiwanese products have been losing their competitiveness amid challenges from South Korea, China and Thailand. One of the most important issues in 2014 is how to help the industrial sector deal with its plight. Promoting the development of creative industries to facilitate economic transformation is one of the possible solutions. In the past, government incentives in this respect mostly targeted cultural creativity, rather than industrial innovation. But now, Taiwan needs to follow Japan's example and encourage industrial innovation by setting up a mechanism to facilitate the commercialization of inventions. On the government's free economic pilot zone project there are still some areas that require attention. One example is the ban on Taiwan dollar-denominated financial instruments within the pilot zones, which overlooks the needs of local residents. Also, steps should be taken to prevent smuggling. On Taiwan's efforts to join regional economic integration, Ma has asked former Vice President Vincent Siew to help set up a committee of private sector members to promote Taiwan's bid to take part in the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). This shows that while the government is paying great attention to the matter, there are still many difficulties to be overcome. (Editorial abstract -- Jan. 7, 2014) (By Y.F. Low)


Updated : 2021-01-19 17:04 GMT+08:00