Alexa
  • Directory of Taiwan

MOEA to come up with measures to stimulate economy

MOEA to come up with measures to stimulate economy

Taipei, Aug. 5 (CNA) Minister of Economic Affairs John Deng (???) said Wednesday that the Ministry of Economic Affairs (MOEA) will continue to push for stimulus measures to boost the local economy. Deng made the comments after Taiwan reported last week lower-than-expected gross domestic product (GDP) growth data for the second quarter. The GDP grew only 0.64 percent year-on-year during the April-June period, far behind a government forecast of a 3.05 percent increase. Deng said that the tepid second-quarter economic growth largely reflected slower-than-expected exports, adding that the local petrochemical sector was affected by a plunge in international crude oil prices, while the high-tech sector suffered weakening global demand. In June alone, Taiwan's exports fell 13.9 percent from a year earlier, marking the fifth consecutive month in which outbound sales registered a drop. After the poor second-quarter GDP data, fears have been rising that Taiwan is unlikely to sustain a 3 percent increase in its economy this year. The government might lower its forecast for 2015 GDP growth from an estimate of 3.28 percent growth made in May. To boost Taiwan's exports, Deng said the MOEA will come up with some short-term measures, such as trade promotion campaigns and efforts to help exporters to develop new products and boost buying interest. Deng said that since the Taiwan government has a tight budget, it is not possible to adopt large-scale fiscal stimulus policies for the moment, but it is possible to try to attract foreign investment to Taiwan. The MOEA head cited Japanese investment in Taiwan in recent years as an example of Taiwan using foreign funds to improve its economy. He added that many Japanese investors who boast advanced technology and good management skills have helped Taiwan strengthen a wide range of businesses, such as auto parts, electronics and animation. According to the Investment Commission, Japan's investment in Taiwan for 2014 rose 34.28 percent from a year earlier to about US$549 million. In the first six months of this year, Japanese investment in Taiwan rose 58.79 percent year-on-year to US$214 million. In response to concerns over power and water shortages in Taiwan, Deng said that the MOEA has been making efforts to develop renewable energy and improve the efficiency of existing power generation equipment. He said the ministry has also encouraged manufacturers to recycle waste water. Deng said the government is determined to help private investors find land for plant construction by releasing more land owned by state-run companies onto the market. (By Yang Shu-min and Frances Huang)


Updated : 2021-09-25 14:18 GMT+08:00