Minister of Economic Affairs Shih Yen-shiang (施顏祥) painted an optimistic picture of Taiwan’s economic prospects for next year, citing the improved expectations of benchmark companies and a diversification of export markets.
Shih anticipated that the domestic economy will grow 4 percent next year as the global economy rebounds, Taiwan’s leading manufacturers expand investment and cross-strait relations continue to improve.
“The prospects are looking rosy, “ Shih said in an interview.
Citing forecasts made by international organizations, including the IMF and Global Insight, Shih said the global economy is likely to expand by between 2 percent and 3 percent next year, while Taiwan will post growth of between 3 percent and 4 percent.
His optimism stems in part from statements at recent investors conferences by top executives that their businesses will improve next year.
These include a pledge to investors by Taiwan Semiconductor Manufacturing Co (台積電) chairman and CEO Morris Chang (張忠謀) that TSMC will increase capital expenditure next year.
Other factors underlying Shih’s optimism are the fourth-phase expansion of the Central Taiwan Science Park, which will begin soon after it passed an environmental impact assessment, and a potential breakthrough in Guoguang Petrochemical’s NT$400 billion (US$12.3 billion) investment project in the second quarter of next year.
Meanwhile, Shih said the “New Zheng He Project (新鄭和計畫)” that the Ministry of Economic Affairs (MOEA) devised last year to help diversify Taiwanese export markets around the world has begun to bear fruit.
“While efforts in the US and European markets began to show positive returns, achievements have also been reported from the newly emerging BRIC markets, including Brazil, India and China,” he said.
The minister remained concerned, however, about the country’s unemployment rate, which remained above 6 percent in September with some 661,000 people out of work.
He said his ministry would work to facilitate further development of certain industries which can generate more job openings.
On the possible impact of Taiwan’s plan to sign an economic cooperation framework agreement (ECFA) with China, Shih said the MOEA would offer subsidies to assist Taiwanese industries hardest hit by the trade deal to survive the change.
These funds would be used to upgrade their manufacturing capabilities or help them make the transition to alternative businesses.
Meanwhile, he said, the ministry would conduct an overall review before the end of the year on Taiwan’s opening to Chinese capital, which began four months ago.
The government essentially intends to gradually open Taiwan’s doors to Chinese capital.
“We would welcome big chunks of Chinese investment in Taiwan,” he said.
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