Foreign businesses in Taiwan had mixed reactions to reports that the nation is one of the most competitive in the world yesterday, with one pundit even saying the reports were "gobbledygook."
On Wednesday, US-based research institute Business Environment Risk Intelligence (BERI) ranked Taiwan number four in the world in terms of competitiveness tied, with Japan. Meanwhile, the Swiss business school IMD International placed the country in sixth place ahead of the UK, France and Spain.
One executive asserted competitiveness here is hampered by bureaucracy.
"The rules here are too restrictive," said Charles Kruse, president of French hypermarket developers Ai Mai Geant Taiwan plc.
"It is hard to meet the zoning requirements of Taipei City ? opening a hypermarket [here] is more difficult than in Thailand. I opened 13 stores there with no problem," he said.
Hypermarket shoppers in the capital are forced to travel to suburbs like Neihu or even Taipei County, Kruse said.
Shipping companies have a better environment to operate in here, but it is still far from competitive, according to Jeroen Rozendal, president of Dutch shipping company, Vopak Logistic Service.
"Customs requirements are a problem when compared to Hong Kong and Singapore which operate free ports," he said.
"Valuable hours are wasted on customs paperwork in Taiwan," he said.
Kaohsiung and Keelung are expected to open free ports -- free from customs requirements -- sometime this year.
Taxation of off-shore companies and the absence of direct shipping links to China also restrict Taiwan's competitiveness, Rozendahl said.
One economist dismissed the two reports entirely yesterday.
"These reports are gobbledygook -- complete nonsense," said John Pickles, president of Asian Pacific Research Ltd in Taipei.
"Goodness knows why people subscribe to them. Japan has been in recession for the last 10 years, and Taiwan was in recession last year. How can they be rated as competitive?" he said.
Far from being competitive, investment in Taiwan has plummeted as a result of the world economic climate, a slowdown in the US, and China taking a major proportion of global foreign direct investment.
"There are many things the government could do to improve the environment. Dropping the ban on direct links to China would be a major one," Pickles said.
But Taiwan has major competitive advantages over other economies in the region.
"The cost of storage space is a lot cheaper and more readily available than in Hong Kong or Singapore," Rozendahl said.
"Taiwan also has a large skilled workforce that speaks the same language as its major market, China," he said.
In addition, Kaohsiung and Keelung are much closer to major Asian markets such as China, Japan and South Korea than Singapore, and labor disputes like the one currently blocking South Korean ports are unheard of, Rozendahl said.
Meanwhile, government officials had nothing but praise for the annual reports. Taiwan's competitive environment is a result of policies that stretch back 30 years, Council for Economic Planning and Development Vice Chairwoman Ho Mei-yueh (
"For more than 30 years we have continuously invested in research and the education system, and supported technology and science," she said.
The investment has created a skilled workforce that is able to turn ideas from overseas rapidly into products, she said.
"By co-operating with the US and Japan, we can transfer research into products very quickly," Ho said.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
MAJOR BENEFICIARY: The company benefits from TSMC’s advanced packaging scarcity, given robust demand for Nvidia AI chips, analysts said ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip packaging and testing service provider, yesterday said it is raising its equipment capital expenditure budget by 10 percent this year to expand leading-edge and advanced packing and testing capacity amid strong artificial intelligence (AI) and high-performance computing chip demand. This is on top of the 40 to 50 percent annual increase in its capital spending budget to more than the US$1.7 billion to announced in February. About half of the equipment capital expenditure would be spent on leading-edge and advanced packaging and testing technology, the company said. ASE is considered by analysts