Restructuring Taiwan’s economy will be a top priority for the ROC government in 2012, according to Council for Economic Planning and Development Minister Yiin Chii-ming Feb. 8.
“Getting the economic fundamentals right is key to sustaining growth amid mounting global uncertainties,” Yiin said. “We must also strike a balance between manufacturing and services so as to ensure long-term development.”
Yiin, who took over the CEPD portfolio Feb. 6 as part of Premier Sean C. Chen’s new Cabinet, made the remarks in a series of interviews with the local media in Taipei.
According to Yiin, Taiwan’s services and manufacturing sectors accounted for 70 percent and 30 percent, respectively, of gross domestic product last year.
“Yet services made up less than half of economic growth, with manufacturing responsible for the rest,” he said. “Taiwan is overly reliant on exports, while consumption and investment remain unable to pull their weight as growth engines.”
Yiin sees a lack of diversification as another problem that needs to be addressed post haste.
“Our exports to mainland China, comprising mainly semifinished goods, are concentrated on a handful of sectors such as display panels, petroleum and semiconductors,” he said. “This presents an enormous risk to the economy.”
The CEPD plans to address this situation by further developing the R&D, international medical services and tourism sectors. This is expected to lift output values and create more job opportunities, Yiin said.
Another major challenge identified by the minister is seeking greater integration for Taiwan into the global economy, with strengthening cross-strait cooperation an important first step in the process.
“Mainland China is forecast to maintain the highest level of growth momentum in Asia,” he said. “Accordingly, Taiwan’s free trade zones are being planned to capitalize on this development.”
But Yiin said the CEPD is not putting all its eggs in the mainland China basket.
“We will map out measures to attract more foreign investment, cultivate new markets and develop upgraded business models for local firms. The ultimate goal is to transform Taiwan into a free trade island without peer.” (JSM)
Write to Meg Chang at meg.chang@mail.gio.gov.tw