The National Development Council on Friday last week reported that the nation’s composite index of leading indicators — which aims to gauge the economic outlook over the next six months — increased last month for the 10th consecutive month and the composite index of coincident indicators — a gauge used to reflect the current economic state — also increased, for the ninth straight month.
The council said that the overall business climate monitor was “red” — from “yellow-red” in January — for the first time in a decade, indicating that the economy is “heating up” as the COVID-19 situation remains relatively under control.
On Tuesday last week, the Ministry of Economic Affairs said that industrial production last month increased by a better-than-expected 2.96 percent annually to 108.76 — the best February figure ever on the back of demand for semiconductors and LCD panels.
Export orders last month also grew on an annual basis, the 12th consecutive month, supported mainly by strong orders for information and communications technology products, the ministry reported on Monday last week.
Major semiconductor manufacturers’ increased investment in advanced technology and production capacity has led more firms in the domestic supply chain to invest more locally.
As Taiwanese businesses abroad and international firms seek local business opportunities — due to US-China trade tensions and realignments in the global supply chain — telecoms are beefing up 5G networks, green energy developers are accelerating construction of offshore wind farms and photovoltaic systems, and land developers are expediting the renovation of older buildings and advancing urban renewal projects. On Feb. 20, the Directorate-General of Budget, Accounting and Statistics forecast that private investment this year would grow 3.91 percent year-on-year to NT$4 trillion (US$139.85 billion).
While the government has predicted that the ratio of domestic investment to gross national income this year would reach 23.47 percent, the highest since 2011, the “five industrial shortages” — land, water, electricity, talent and workers — have returned to haunt the nation and cast a shadow over its economic development.
For example, if the water shortage worsens and more areas are hit with water restrictions, production at the nation’s major science and industrial parks would be impeded. Another example is the struggle between environmental protection and power generation. The push to protect algal reefs off the coast of Taoyuan could jeopardize the government’s goal of generating 50 percent of the nation’s power from liquefied natural gas, 30 percent from coal and 20 percent from renewable resources by 2025.
Taiwan’s declining birthrate and aging population have long plagued local industries with a shortage of talent and workers. Even though the government is providing more incentives, recruitment efforts by key industries show that a large gap remains between demand and supply. Companies might need to look overseas to make up for personnel shortages.
Substantial investment by businesses returning to Taiwan has led to a huge increase in demand for industrial land, office space and manufacturing facilities, which has sparked a significant rise in property prices and generated fears of a land shortage.
Before the trade tensions between the US and China, Taiwan witnessed years of sluggish domestic investment and the relocation of companies overseas. This wave of local investment — something rarely seen in the past 30 years — is an opportunity for economic transformation and industrial upgrades.
However, a failure to resolve these shortages might cause Taiwan to miss out. In 2018, the Democratic Progressive Party administration presented a set of policies aimed at solving these shortages. The government needs to review these solutions — right away.
Taiwan faces complex challenges like other Asia-Pacific nations, including demographic decline, income inequality and climate change. In fact, its challenges might be even more pressing. The nation struggles with rising income inequality, declining birthrates and soaring housing costs while simultaneously navigating intensifying global competition among major powers. To remain competitive in the global talent market, Taiwan has been working to create a more welcoming environment and legal framework for foreign professionals. One of the most significant steps in this direction was the enactment of the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) in 2018. Subsequent amendments in
The recent passing of Taiwanese actress Barbie Hsu (徐熙媛), known to many as “Big S,” due to influenza-induced pneumonia at just 48 years old is a devastating reminder that the flu is not just a seasonal nuisance — it is a serious and potentially fatal illness. Hsu, a beloved actress and cultural icon who shaped the memories of many growing up in Taiwan, should not have died from a preventable disease. Yet her death is part of a larger trend that Taiwan has ignored for too long — our collective underestimation of the flu and our low uptake of the
US President Donald Trump on Saturday signed orders to impose tariffs on Canada, Mexico and China effective from today. Trump decided to slap 25 percent tariffs on goods from Mexico and Canada as well as 10 percent on those coming from China, but would only impose a 10 percent tariff on Canadian energy products, including oil and electricity. Canada and Mexico on Sunday quickly responded with retaliatory tariffs against the US, while countermeasures from China are expected soon. Nevertheless, Trump announced yesterday to delay tariffs on Mexico and Canada for a month and said he would hold further talks with
Taiwan’s undersea cables connecting it to the world were allegedly severed several times by a Chinese ship registered under a flag of convenience. As the vessel sailed, it used several different automatic identification systems (AIS) to create fake routes. That type of “shadow fleet” and “gray zone” tactics could create a security crisis in Taiwan and warrants response measures. The concept of a shadow fleet originates from the research of Elisabeth Braw, senior fellow at the Washington-based Atlantic Council. The phenomenon was initiated by authoritarian countries such as Iran, North Korea and Russia, which have been hit by international economic