Taiwan’s economy appears to have emerged from its most challenging phase and is expected to improve next year, trade group Third Wednesday Club (三 三會) said yesterday, as easing global trade tensions following recent US tariff adjustments begin to take effect.
The local business community generally believes “the worst period linked to US tariffs is over,” and firms have gained experience navigating US trade policies, tariff changes and global supply-chain restructuring, group chairman Lin Por-feng (林伯豐) said on the sidelines of a monthly gathering in Taipei.
Companies that are pursuing transformation, investing in new product development and innovation, and remaining committed to research would be better positioned to capture growth opportunities, Lin said.
Photo: Taipei Times file photo
Citing his own company, Taiwan Glass Industry Corp (台玻), Lin said the firm is developing products such as fiberglass cloth and flat glass, and future performance would show whether these transitions prove successful.
Strong global demand for artificial intelligence (AI) hardware benefits Taiwan’s exports of semiconductors, electronics and related products, and firms that recalibrate their business models to align production with sales are likely to see improved outlooks, he said.
However, Taiwan’s economic structure remains heavily concentrated in a few sectors, while private consumption and services have yet to fully return to pre-COVID-19 pandemic levels, he said.
Green energy development has also progressed slowly, driving up the costs of energy transition, while a rapidly aging population and labor shortages pose risks to long-term growth, he added.
To address these challenges, the trade group yesterday urged the government to promote smart tourism, digital, cultural and creative industries, and upgrade local service sectors.
It also called on the government to expand Taiwan’s talent pool in AI, semiconductors and sustainable industries, while easing regulations to attract high-level foreign professionals.
Policymakers should also seek to maintain price stability and adopt prudent monetary policies to guard against asset bubbles, it said.
Energy self-sufficiency is another key focus, the group said, urging the government to extend the lifespans of nuclear power plants after completing assessments.
The government should also accelerate renewable energy and energy storage development, and support companies in adopting environmentally friendly and carbon-reduction technologies, it said.
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