The nation’s global competitiveness moved up one notch to 12th place this year, aided by a top ranking in macroeconomic stability and a strong showing in innovative capacity, according to a World Economic Forum report released yesterday.
The Geneva, Switzerland-based organization rated 141 economies through 103 indicators grouped into 12 themes, including health, financial system, market size, business dynamism and capacity to innovate.
Taiwan was the fourth-best performer in the Asia-Pacific region after Singapore (first), Hong Kong (third) and Japan (sixth), but ahead of South Korea (13th) and China (28th).
The results showed that the Asia-Pacific region the world’s most competitive, followed closely by Europe and North America.
Taiwan retained its top ranking in macroeconomic stability, thanks to stable inflation and average long-term GDP growth of 3 percent, despite global headwinds, the report said.
“The world is at a social, environmental and economic tipping point where subdued growth, rising inequalities and accelerating climate change provide the context for a backlash against capitalism, globalization, technology, and elites,” the report said.
This year has seen gridlock in the international governance system, while escalating trade and geopolitical tensions are fueling uncertainty, it added.
This holds back investment and increases the risk of supply shocks: disruptions to global supply chains, sudden price spikes or interruptions in the availability of key resources, the report said.
Against that backdrop, a survey of 13,000 business executives highlighted deep uncertainty and low confidence, it said.
However, some of this year’s better performing economies, such as Singapore and Vietnam, appear to be benefiting from global trade tensions through trade diversion, the report said.
Taiwan had also emerged unscathed due to a sharp increase in private investment by local companies moving production lines out of China to avoid heavy tariffs on goods bound for the US.
The nation was ranked fourth in terms of innovative capability, with strong scores in research and development expenditure, patent applications, cluster development and diversity of the workforce.
The report lamented a lack of global productivity growth over the past 10 years, calling it a “lost decade,” and while a US$10 trillion injection by central banks had succeeded in averting a deeper recession, it was not enough to catalyze the allocation of resources toward productivity enhancing investments in the private and public sectors.
The injection of cash by the world’s four biggest central banks might have had the effect of diverting more capital toward financial markets rather than to productivity-enhancing investments, the report said.
The National Development Council said that it would examine the report and take steps to improve the nation’s competitiveness where necessary.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign