An academic said the next president would face four major economic difficulties: “adjustments to the industrial structure”; “regional economic integration”; “development of domestic demand”; and “real-wage increases,” while another academic said there will also be a four-month window between the presidential and legislative elections on Jan. 16 and May 20, when the new government is to be installed, so the new legislature must strictly monitor President Ma Ying-jeou’s (馬英九) administration in case it does something to damage the economy.
Many indicators have shown poor economic performance since the second quarter last year, National Central University professor of economics Chiou Jiunn-rong (邱俊榮) said, adding that the economy is in bad shape, so president-elect Tsai Ing-wen (蔡英文) will certainly face major challenges after taking office.
“The first challenge is adjustments to the industrial structure,” he said. “Taiwan’s industrial structure used to be too focused on the electronics industry and lacked diversity, so once a global recession occurred, it greatly affected the nation’s economy.”
By comparison, South Korea’s industrial structure is more diverse, Chiou said, adding that Tsai’s government must develop and foster emerging industries to diversify the economy.
As that would involve the reallocation of resources, the new government must undertake comprehensive planning and communication, he said.
Regarding regional economic integration, Chiou said that the Trans-Pacific Partnership (TPP) trade agreement might be beneficial for some industries, but other industries could be negatively affected, so making appropriate arrangements to enter the TPP would be a big challenge.
The development of domestic demand will be the third challenge, because the government has always emphasized developing the export-oriented manufacturing industry to more effectively stimulate GDP growth, but has neglected the development of domestic demand, especially refined agriculture and long-term care — industries that could greatly boost domestic consumption, Chiou said.
The fourth challenge is how to see real wages increase, because over the past eight years of the Ma administration, real wages have dropped to the same level as 15 years ago, while the low average wage has already aroused discontent among the people, Chiou said, adding that popular discontent has affected the public’s willingness to consume, which has also harmed economic growth.
Chiou said that although overseas production orders have continued to grow, increasing the nation’s GDP, such activity does not increase real wages in Taiwan, so the new president must facilitate an industrial upgrade to solve the problem of stagnant wages.
National Taipei University professor of economics Wang To-far (王塗發) said the new legislature is to assemble on Monday next week, but the new administration is to take office on May 20, so he is worried that the Ma administration might do something that harms the economy between those two dates.
For example, if the Ma administration allows Chinese companies to merge with or take over firms in the nation’s integrated-circuit design industry, it would threaten the survival of Taiwan’s factories, Wang said, adding now that the Democratic Progressive Party has obtained a majority in the legislature, it must monitor the Ma administration during the transition window.
Three Taiwanese airlines have prohibited passengers from packing Bluetooth earbuds and their charger cases in checked luggage. EVA Air and Uni Air said that Bluetooth earbuds and charger cases are categorized as portable electronic devices, which should be switched off if they are placed in checked luggage based on international aviation safety regulations. They must not be in standby or sleep mode. However, as charging would continue when earbuds are placed in the charger cases, which would contravene international aviation regulations, their cases must be carried as hand luggage, they said. Tigerair Taiwan said that earbud charger cases are equipped
Foreign travelers entering Taiwan on a short layover via Taiwan Taoyuan International Airport are receiving NT$600 gift vouchers from yesterday, the Tourism Administration said, adding that it hopes the incentive would boost tourism consumption at the airport. The program, which allows travelers holding non-Taiwan passports who enter the country during a layover of up to 24 hours to claim a voucher, aims to promote attractions at the airport, the agency said in a statement on Friday. To participate, travelers must sign up on the campaign Web site, the agency said. They can then present their passport and boarding pass for their connecting international
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Tropical Storm Fung-Wong would likely strengthen into a typhoon later today as it continues moving westward across the Pacific before heading in Taiwan’s direction next week, the Central Weather Administration (CWA) said. As of 8am, Fung-Wong was about 2,190km east-southeast of Cape Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, moving westward at 25kph and possibly accelerating to 31kph, CWA data showed. The tropical storm is currently over waters east of the Philippines and still far from Taiwan, CWA forecaster Tseng Chao-cheng (曾昭誠) said, adding that it could likely strengthen into a typhoon later in the day. It is forecast to reach the South China Sea
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