Economy

Taiwan trains sights on SME ‘hidden champions’

ROC Premier Sean C. Chen sketches out the path Taiwan’s SMEs will take in flexing their economic muscle on the global stage. (Photo: Ku Chin-tang)

• Publication Date：08/09/2012
• Source： Taiwan Today
• By  Meg Chang

A project assisting Taiwan’s small and medium enterprises strengthen their market presence through enhanced branding, innovation and technology is being mulled by the ROC Cabinet.

“Our SMEs can no longer afford to operate solely as contract manufacturers for international heavyweights without possessing key technological know-how,” ROC Premier Sean C. Chen said.

“We plan to identify an elite group of firms with top-notch management that can champion the island’s economic development.”

Chen made the remarks following a briefing Aug. 8 by the Ministry of Economic Affairs on the proposed SME project.

Incorporating the “hidden champions” concept touted by German scholar and business executive Hermann Simon, the initiative aims to develop 100 SMEs and create 10,000 quality jobs by 2015.

“There are around 450 such firms in Germany, highly successful but relatively unknown with rock-solid market position. These are all inspirational examples for Taiwan,” Chen said.

The premier said all relevant central government ministries and agencies have been instructed to draft measures encompassing financial and technological assistance, as well as talent cultivation and intellectual property rights protection. A finalized project blueprint is expected to be ready by month-end.

Under the plan, the MOEA will select SMEs with leading business advantages and transform them into key market players.

Selection criteria include the ability to develop brand names and core technologies; high growth potential and track record of export success; a workforce of less than 2,000 employees; and annual revenues under NT$10 billion (US$334.2 million).

A source close to the government said possible candidates include home accessory designer Franz Collection Inc., bike producer Giant Manufacturing Co. Ltd. and special fabric supplier G-Fun Industrial Corp. (JSM)

Write to Meg Chang at sfchang@mail.mofa.gov.tw