Premier lauds SME award winners, promotes innovation and added-value policy initiatives

  • Date: 2016-10-28
  • Source: Department of Information Services, Executive Yuan
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Meeting  business  award  winners  at  the  Executive  Yuan  yesterday,  Premier  Lin  Chuan  said  that  the  government  is  dedicated  to  working  with  the  industrial  sector  to  increase  the  competitiveness  of  small  and  medium-sized  enterprises  (SMEs)  by  enhancing  their  capacity  for  innovation,  opening  up  recruitment  channels  and  developing  key  technologies.

Speaking  to  the  winners  of  the  25th  National  Award  of  Outstanding  SMEs  and  the  18th  Outstanding  Overseas  Taiwanese  SMEs  Award,  the  premier  noted  that  globalization  has  compelled  companies  to  move  offshore,  decreased  local  job  opportunities,  lowered  wages  and  created  an  unequal  distribution  of  wealth—all  of  which  have  had  a  serious  impact  on  Taiwan.  

Given  challenges  such  as  Taiwan’s  environmental  protection  requirements,  changing  labor  conditions  and  rising  land  costs,  businesses  seeking  to  lower  costs,  stay  competitive  and  expand  their  markets  have  no  choice  but  to  relocate  to  other  countries,  which  has  created  employment  problems  in  Taiwan,  he  said.  Meanwhile,  businesses  that  want  to  remain  in  Taiwan  must  learn  to  lower  costs  and  increase  production  value  to  meet  those  challenges.  Confident  that  Taiwanese  enterprises  can  lower  production  costs,  the  premier  said  it  is  the  government’s  responsibility  to  help  them  increase  their  industrial  value-added.

Taiwan’s  future  growth  hinges  on  investment,  and  right  now,  the  nation’s  poorer-than-expected  economic  performance  is  a  clear  sign  that  investment  is  lacking,  the  premier  said.  But  to  enhance  industrial  competitiveness,  investment  must  be  directed  toward  innovation  and  job  creation.

The  government  has  made  “innovation,  employment  and  equitable  distribution”  the  keynotes  of  its  economic  policy,  with  equitable  distribution  as  the  foundation  of  social  stability.  Without  that  foundation,  the  premier  said,  there  can  be  no  social  stability,  while  enterprise  owners  that  share  profits  with  their  employees  can  attract  better  talent  and  create  a  virtuous  cycle  of  growth.

The  government,  Lin  said,  is  responsible  for  creating  the  basic  conditions  for  a  healthy  investment  environment.  Noting  public  concern  about  electricity  supplies,  the  premier  underscored  the  administration’s  efforts  to  reform  Taiwan’s  energy  structure  and  develop  renewable  energy  resources.  These  efforts  include  managing  peak-load  demand,  promoting  energy  conservation  and  the  further  diversification  of  energy  sources  to  ensure  that  energy  demand  is  met  during  the  transition  process.

Looking  ahead,  the  government  will  promote  solar  and  wind  power  projects,  adopt  smart  grids  and  time-of-use  pricing  strategies,  and  reduce  energy  demand  during  peak  hours.  This  will  not  only  ease  Taiwan’s  energy  problems,  but  also  create  investment  opportunities  in  the  renewable  energy  sector,  he  said.

The  premier  also  mentioned  the  “five  plus  two”  innovative  industries  policy,  which  focuses  on  integrating  and  investing  in  existing  and  new  industries.  The  Asian  Silicon  Valley  plan,  for  instance,  aims  to  combine  Industry  4.0  concepts  with  computers,  smart  enterprises,  and  information  and  communications  technology  to  make  Taiwan  globally  competitive  in  smart  cities,  smart  transportation,  internet  of  things  technology,  and  e-finance.  Another  example  is  the  policy  to  develop  intelligent  machinery,  which  aims  to  upgrade  the  machinery  industry  and  integrate  industrial,  academic  and  research  resources  to  stay  competitive  with  European  and  Japanese  peers,  and  keep  the  industry  abreast  of  the  latest  developments.

Through  the  New  Southbound  Policy,  Lin  said,  the  government  is  also  building  closer  ties  with  Southeast  and  South  Asian  countries  to  pursue  free  trade  and  investment  protection  agreements,  enhance  exchanges  and  cooperation,  and  create  strategic  alliances  for  mutual  benefit.  He  added  that  under  this  policy,  Taiwanese  companies  will  enjoy  greater  protection  when  operating  or  investing  abroad.

In  closing,  the  premier  touted  small  and  medium-sized  enterprises  as  the  heart  of  Taiwan’s  innovation  and  job  growth.  These  small  but  nimble  businesses  represent  Taiwan’s  greatest  strength  due  to  their  capacity  for  innovation,  diversity,  and  adaptability.  Those  strengths  create  many  new  development  opportunities,  so  the  government  will  facilitate  continued  growth  by  helping  them  overcome  obstacles  and  developing  new  recruitment  channels.