The government is looking to develop a new economic model that would build Taiwan into a regional high-end manufacturing hub, while low-end manufacturing activity migrates to ASEAN, National Development Council Minister Kung Ming-hsin (龔明鑫) said yesterday at a meeting of The Third Wednesday Club, a trade group whose membership is limited to the top 100 firms in each business sector.
The government is drawing up plans to help firms cope with the COVID-19 pandemic and US-China trade tensions, which are reshaping global technology supply chains, Kung said.
The undertaking, dubbed the “economic development plan version 2.0,” calls for the deployment of a forward-looking space and microsatellite industry, the creation of a digital development department, and the nation becoming Asia’s advanced manufacturing hub, he said.
Photo: Lee Ya-wen, Taipei Times
Ministries are working to realize NT$6 trillion (US$202.14 billion) of investment projects and to increase funding for the development of renewable energy sources, Kung said.
The new economic model would seek to shore up businesses other than those in the “five-plus-two” sectors, a key policy during President Tsai Ing-wen’s (蔡英文) first term office, he said.
Electronics will no longer dominate global technology supply chains that are to undergo drastic changes due to 5G, artificial intelligence and Internet of Things technologies, he added.
International technology giants have also noted the trend and plan to increase their investments in Taiwan, which is home to the world’s leading chipmakers, chip designers, and suppliers of laptops and peripherals, Kung said.
The government is to make the development of 5G and artificial intelligence technologies its top priority, so that Taiwan could help shape and define the 5G era, he said.
However, the economic strategy does not run counter to the New Southbound Policy, as it would encourage local companies to expand in ASEAN members that would continue to attract low-end manufacturing activity from China, he added.
“Local firms would make high-end devices in Taiwan and produce low-priced products in Southeast Asian plants,” Kung said. “The division of labor is clear and makes sense.”
In the 5G era, the government would collaborate more closely with private companies, including on developments in other nations, he said.
The government has also identified an opportunity to develop Taiwan into a regional asset management center, as Hong Kong is losing its appeal due to China’s tightening control over the territory, he added.
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