Taiwan’s economy outperformed major regional rivals between 2019 and 2022, helped by the government’s introduction of policy measures to attract capital repatriation, improve infrastructure, assist strategic sectors and facilitate industrial upgrades, the National Development Council (NDC) said in a statement yesterday.
The council’s remarks came in response to the campaign office for Chinese Nationalist Party (KMT) presidential candidate and New Taipei City Mayor Hou You-yi (侯友宜), which held a news conference earlier criticizing the nation’s economy as “poor and lagging behind.”
In the statement, the council said Taiwan led the pack during the period by measure of GDP growth among the four Asian Tigers, namely Hong Kong, Singapore, South Korea and Taiwan. All four economies have been fueled by export-led growth and rapid industrialization since the 1960s.
Photo: Wu Hsin-tien, Taipei Times
In addition, the TAIEX last year put up a stronger showing than the Hong Kong bourse, which has been hit hard by capital outflows, the council said. By contrast, the local bourse reported massive capital inflows in November and last month, consistent with recovery expectations on the part of global funds for technology products, Taiwan Stock Exchange data showed.
Taiwan in 2022 became the world’s 21st-largest economy with annual per capita income surpassing US$30,000, making it the 10th-best performer among nations with a population of more than 21 million and the second-strongest judging by purchasing power parity, the council said.
The government lent support by rolling out the Invest Taiwan program that allowed local firms based in China to shift manufacturing facilities home with favorable investment terms to dodge the US-China trade disputes, it said.
Further, the government provided aid to the “five plus two” industries that help advance policy initiatives regarding an “Asian Silicon Valley,” biomedical technology, green energy, robotics, defense and aviation, innovative agriculture and a circular economy, the council said.
In addition, the government poured money into infrastructure projects to help narrow development gaps in the north, central and south of Taiwan, it said.
Taiwan also fared well during the COVID-19 pandemic as manufacturers maintained normal operations and supplied the world’s smartphones, tablets, wearables, TVs and cars, the council said.
Over the past eight years, Taiwan’s GDP growth averaged 3.1 percent, better than Singapore, South Korea and Hong Kong, it said.
The same period saw cumulated foreign investment amounting to NT$2.49 trillion (US$80.32 billion) with foreign direct investment in 2022 climbing to a 15-year high of US$13.3 billion, it added.
The income gaps between households are widening because family sizes have grown smaller, weighing on their overall income, as Taiwan’s population ages rapidly, the council said.
However, Taiwan’s Gini coefficient, a globally used measure of income inequality, was 0.277 in 2021, milder than 0.333 in South Korea, 0.386 in Singapore and 0.382 in China, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
RSS