Entrepreneur sees economic downturn as a key opportunity not to be missed

The sluggishness of Taiwan's stock market may be an opportunity, in the eyes of a leading entrepreneur, for the Taiwan business sector to reduce its zealousness for the securities market and to refocus on economic fundamentals.

Day Sheng-tong (戴勝通), president of the National Association of Small-and Medium-Size Enterprises (中小企業協會), said yesterday that Taiwan's stock market experienced its heyday last year when the dotcom myth drove high-tech stocks to unrealistic highs.

Day said that at that time, the electronics manufacturing sector, which created no more than 20 percent of the nation's jobs, was able to attract 80 percent of all the capital invested in the stock market.

Many businesspeople began neglecting their own trade when they started focusing on making easy money on the stock market, Day said, adding that a depressed stock market, negative economic growth and a decline in foreign trade have worsened the crisis. However, he said Taiwan's economic prospects are not all bad judging by the sound fundamentals of the manufacturing industry.

When businesses dedicate their efforts and invest money in upgrading their operations and improving their products, more job opportunities can be created, he said, adding that laying off employees or moving businesses overseas might not be the best solutions.

Firms that have built sound operational structures will be able to weather the storm, and Taiwan industry will be healthier when companies that don't make it are weeded out of the market, he said.