Deputy Minister of Economic Affairs Kung Ming-hsin (龔明鑫) yesterday denied suggestions that the nation’s domestic demand has remained sluggish, saying General Chamber of Commerce (全國商總) chairman Lai Cheng-yi’s (賴正鎰) criticism was not consistent with a slew of major economic indicators released this month.
“Apart from exports, we have seen significant improvement in domestic demand [from the latest economic data],” Kung said at a press conference at the ministry, citing lower unemployment numbers and improving consumer confidence.
Citing data compiled by the Directorate-General of Budget, Accounting and Statistics (DGBAS), Kung said the unemployment rate last month fell to 3.77 percent, the lowest level for the month in 17 years.
Meanwhile, the consumer confidence index this month rose to 83.34, its highest level in 23 months, as consumers are more optimistic on the outlook of stock investments, Kung said, referring to a National Central University survey released yesterday.
Revenue in some local industries reached record highs last month, which also reflects the present economic condition, Kung added.
Revenue in the wholesale sector last month rose 6.7 percent year-on-year to NT$882 billion (US$29.13 billion), while the retail sector’s revenue grew 3.2 percent annually to NT$341.2 billion, the Ministry of Economic Affairs reported on Monday.
Revenue in the beverage and restaurant sector also rose by 0.9 percent annually to NT$35.5 billion, which the ministry attributed to local restaurant chain operators’ outlet expansions.
Kung made the remarks after several industry leaders on Thursday expressed concerns over the softening sentiment in the nation’s service sector and called on the Cabinet to revise rigid labor laws to meet local firms’ real-life demands.
While presenting the trade association’s annual white paper, Lai accused the government of favoritism toward certain manufacturing industries over the service industry in past years, especially neglecting the development of local tourism and the real-estate sector.
Kung yesterday tried to downplay the criticism made by the commerce association, saying that the ministry has collected feedback from local companies to help the Cabinet parts of the new labor regulations that have sparked outcries among the public and in several business segments since late last year.
Premier William Lai (賴清德) had on Thursday announced that the government is to propose an amendment to the “one fixed day off and one flexible rest day” labor policy next month, Kung said.
Commenting on possible adjustments to the five-day workweek policy, Kung said some local firms are urging the government to reduce overtime pay requirements for rest days and increase upper limits on overtime working hours, measures the ministry is “considering.”
The ministry is also considering relaxing regulations on the shift systems and annual leave, as well as extending the scope of the “four-week flexible working hours” policy, Kung said.
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