President Chen Shui-bian (
Speaking at the annual dinner organized by the American Chamber of Commerce, Chen said that Taiwan will leave no stone unturned in creating a "first-rate financial service sector" prior to its entry into the WTO.
"This year will be a crucial year for Taiwan's financial system to undergo an overall transformation," he said. "Taiwan fortunately survived the Asian financial crisis in 1997 but missed the opportunity for financial reform."
The current economic slowdown, Chen said, warrants "no panic" now that the government is going out of its way to help bolster growth by increasing infrastructure spending. The government has earmarked NT$111.5 billion for infrastructure spending this year.
"I would like to point out that a short-term stagnation is possible, but this should not cause panic," he said.
In one of his most unequivocal statements on the financial sector, Chen said that "problems cannot be solved by hiding the truth."
The government's just-passed Financial Institutions Merger Law and the proposed Financial Holding Company Law will provide a mechanism to expedite the financial reforms, he said.
With regard to mergers in the banking system, Chen said that foreign participation in the restructuring, mainly through acquisition of domestic financial institutions or by taking stakes in these firms, will help enhance the sector's competitiveness.
Financial reform will take the top spot, he said, because "without reforms there will be no sound and open financial environment" -- seen as indispensable attributes for succeeding in the increasingly internationalized world.
He also said that the government will improve administrative efficiency -- as repeatedly suggested by Amcham's yearly white paper -- to ensure the smooth operation of multinationals based in Taiwan.
"At this particular moment, when Taiwan is pushing to join the WTO, we are willing to help local and foreign enterprises based in Taiwan completely grasp the business opportunities offered by Taiwan's globalization," Chen said.
Peter Banko, president of Amcham, said that the financial restructuring and the upgrading of Taiwan's technology industry remain the president's "utmost concern."
"President Chen is very concerned that the international community should have a positive opinion of Taiwan's financial health," said Banko, who is Taiwan country manager for Bank of America.
Banko said that Chen's reference to Amcham's white paper in his speech underscores his "keen interest in talking to US and other multinationals in order to attract further foreign investment in Taiwan."
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