Taiwan’s economic outlook may not be so rosy in 2020

Prominent businessmen in Taiwan hold cautious view on economy

Wang Wen-yuan (王文淵)(left) and Douglas Hsu (徐旭東)(CNA photo)

Wang Wen-yuan (王文淵)(left) and Douglas Hsu (徐旭東)(CNA photo)

TAIPEI (Taiwan News) — A sluggish economy can be expected for Taiwan in the coming year, said the island’s leading business tycoons on Monday (Oct. 7).

Wang Wen-yuan (王文淵), president of Formosa Plastics Group, said at the opening event for the 2019 Taipei Innovative Textile Application Show (TITAS) that the economic outlook may seem “rosy” based on available economic data, but demand for DRAM products has been flat. This suggests a lack of confidence in the market, he cautioned.

Taiwan has seen slowing economic activity since the second quarter this year, and the situation got even worse in the third quarter. There is no ground for optimism, CNA quoted Wang as saying.

Sharing his views, Far Eastern Chairman Douglas Hsu (徐旭東) believes Taiwan should brace for flagging economic growth next year but some industries may still continue on a growth trajectory. Businesses in the textile sector are likely to sustain momentum by riding the tide of eco and smart themes, he reckoned.

Nevertheless, the government of Taiwan last month forecast a growth rate of 2.58 percent for 2020, citing increased returnee investment. The statistics agency said returning production has had a positive effect on exports, and demand for new technologies like AI and 5G could serve to drive growth, wrote Reuters.