TAIPEI (Taiwan News) — The new Minister of Economic Affairs, Kung Ming-hsin (龔明鑫), on Monday cast doubt on continuing the current formula to calculate the minimum wage, given the rising burden of US tariffs on Taiwan's exports. 

Kung held a meeting in the afternoon with industrial associations, such as the General Chamber of Commerce, National Association of Small and Medium Enterprises, and Taiwan Electrical and Electronic Manufacturers' Association, per CNA. After the meeting, Kung said industry leaders expressed concerns over exchange rate stability, tariff negotiations, carbon fees, labor supply, and the minimum wage.

With a Ministry of Labor minimum wage review meeting set for this month, Kung said that from a macroeconomic perspective, Taiwan has performed well this year, especially with strong GDP growth in the first half. Based on the old wage adjustment formula, he said this would automatically lead to a wage hike. 

“But the reality is different, while the high-tech sector is doing very well, SMEs and traditional industries have been significantly impacted," said Kung. Therefore, Kung said he will communicate to the Cabinet and labor ministry that “the previous formula, at least for this year, is not suitable.”

As for electricity prices, he said Taipower is currently gathering the information needed by the review committee. Once the data is collected, it will be assessed and provided to the committee for reference.

When asked about next year's carbon fees, which could increase the financial burden on Taipower and CPC Corp., Kung said that businesses and associations have voiced calls for a delay. He added that while net-zero emissions remain an important long-term goal, a balance must be struck between this long-term vision and short-term challenges.

Kung said he will consult with the Ministry of Environment on the issue and ensure the Cabinet understands concerns from the business community.