The National Development Council (NDC) yesterday unveiled a four-year economic development plan with an aim to pursue GDP growth of 2.6 to 3.4 percent backed by 5G wireless communication, artificial intelligence and technology supply chain realignment.
The council mapped out economic goals that also seek to bring the jobless rate down to 3.5 to 3.8 percent, with increases of 1 to 1.5 percent in consumer prices.
“Different government agencies will jointly pursue the goals once the Cabinet gives its approval,” NDC Minister Kung Ming-hsin (龔明鑫) said.
Photo: CNA
While China and the US vie for global technology leadership, Taiwan would press ahead with digital innovation and deepen its participation in regional economic integration, the council said.
The government has offered favorable financing and tax terms to help expedite the supply chain realignment and the creation of a new industrial ecosystem, Kung said.
COMING HOME
Investment pledges of more than NT$1 trillion (US$33.8 billion) from companies returning from China to cope with the COVID-19 pandemic and US-China trade tensions would fuel economic growth in the coming years and help build Taiwan into a global high-tech hub, he said.
From semiconductors to servers, and from data centers to critical electronic components, the related sectors have been benefiting from a boom in demand for remote learning and working arrangements amid the outbreak, Kung said.
“The virus will remain a threat to the global economy until the development of vaccines,” Kung said, adding that vaccines would be developed eventually.
In the meantime, the government would continue to shore up the “five plus two” industries and take steps to overcome expected declines in consumer activity due to Taiwan’s fast-growing aged population, the council said.
An NDC committee proposed a public works budget of NT$141.46 billion for next year to prop up the nation’s economy, Kung said.
Public works intended to improve the transportation infrastructure account for 47.36 percent of the budget, followed by environment enhancement spending at 22.17 percent, and funds to protect forestry and water resources, as well as disaster prevention at 12.46 percent, the council said.
As of last month, government agencies scored an improvement of 3 percentage points in executing public works budgets for this year, the council said, adding that all departments would seek to raise the execution rate to 95 percent toward the end of this year.
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