Taiwan should move swiftly to reduce a widening industrial gap and avoid leaning too heavily on the booming tech sector for economic expansion, the Taipei-based Chinese National Association of Industry and Commerce (CNAIC, 工商協進會) said yesterday, calling for broader structural upgrades to reinforce long-term resilience.
CNAIC chairman Thomas Wu (吳東亮) made the remarks during a breakfast with Premier Cho Jung-tai (卓榮泰) and several ministers, saying that the momentum created by artificial intelligence (AI) hardware exports, while impressive, cannot sustain the nation’s economy indefinitely.
“Taiwan’s AI hardware suppliers have delivered strong earnings results and underpinned robust exports, but the nation cannot lean on the AI boom indefinitely,” said Wu, who also chairs TS Financial Holding Co (台新新光金控).
Photo: CNA
He urged the government to take the growing imbalance between cutting-edge tech industries and lagging traditional sectors seriously, saying that the latter employ most of the workforce, and provide essential goods and services.
Wu said he expected the Directorate-General of Budget, Accounting and Statistics tomorrow to raise this year’s GDP growth forecast to between 5 and 6 percent, up from 4.45 percent forecast in August, after exports exceeded expectations amid accelerating global AI demand.
Taiwan would likely outperform regional peers this year, Wu said, attributing the stronger outlook to close cooperation between the government and the private sector.
The business tycoon also expressed hope that ongoing Taiwan–US tariff negotiations would soon yield progress, allowing businesses to operate in a more predictable environment and concentrate on growth strategies.
The recent decision by Nvidia Corp to establish a subsidiary in Taiwan further underscored the nation’s strategic importance in the global AI supply chain and would add new momentum to the economy, Wu said.
However, the strength of AI-related industries contrasts sharply with the weak performance of non-AI and traditional sectors, he said, adding that policy measures should support a more balanced industrial structure.
Wu thanked the Financial Supervisory Commission for easing rules on private wealth management for high net-worth clients and for giving life insurers more flexibility in managing foreign-exchange volatility.
Several government agencies pledged to review proposals aimed at improving the business environment, but the Ministry of Finance remained reluctant to consider tax incentives to help develop Taiwan into a regional asset-management hub, or to cut stamp and business taxes to boost financial sector competitiveness, Wu added.
The ministry said it declined the proposals, as financial institutions are performing well and the revenue involved is still crucial for public finances.
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