Premier Jiang Yi-huah today exchanged views with commercial leaders at a symposium co-organized by the General Chamber of Commerce of the ROC (ROCCOC) and the Taiwan Coalition of Service Industries (TWCSI). Jiang and other officials candidly answered attendees' questions and heard their suggestions on government policy in order to better understand and resolve their problems.
In his address, the premier stated that in April of this year the Executive Yuan approved a plan for free economic pilot zones (FEPZs) and proceeded to substantially deregulate laws and regulations for personnel, logistics and cash flows. FEPZs will prioritize development of economic activities such as intelligent logistics, international medical services, value-added agriculture and industrial cooperation in existing free trade zones together with industrial parks in the vicinity, he said. Jiang also gave the good news that the Financial Supervisory Commission (FSC) has recently decided to further expand the categories of financial products permitted in the FEPZs.
"The country should not hesitate to walk down the path of free trade and liberalization and boldly revise laws and regulations, such as to provide single window services, streamline administrative procedures and deregulate the financial sector," the premier emphasized. "I hope that by implementing the government's new economic policies, more opportunities will be generated for Taiwan's future economic development."
"Aside from its work on FEPZs, the government has also made exciting progress in regional economic integration this year: the revival of TIFA talks in March, the cross-strait services trade agreement in June and the economic cooperation pact with New Zealand this month, for example," Jiang noted. "In addition, the signing of an economic cooperation pact with Singapore is expected soon."
Regarding concerns about the cross-strait services trade agreement, Jiang acknowledged many are worried that it would spur an influx of mainland capital and personnel that could choke off the development of relatively vulnerable Taiwanese industries such as publishing, beauty salons, traditional Chinese medicine and laundry services.
In order to dispel their worries, the Ministry of Economic Affairs (MOEA) and other relevant ministries have begun extensive communication and dialogue with concerned sectors. Since the signing of the pact on June 21, the premier has himself attended more than 10 seminars and met with industry representatives to explain the agreement and set people at ease.
"This morning, for example, I met with beauty salon union chairpersons. This industry employs about 300,000 people in Taiwan, and they are worried that big mainland firms will inject large amounts of capital into establishing franchises to compete with personalized studios," he said.
"Many people are under the impression that the agreement will bring a large number of mainland blue-collar workers to the island. Actually, in the case of the salon industry, for instance, a company would only be able to bring two mainlanders—white-collar managers—to Taiwan, under the condition that it invested more than US$200,000 in the island. Furthermore, these managers can neither directly engage in production nor perform any work that requires a license.
"This type of misconception may stem from insufficient media coverage or deliberate misinformation. There are many groups of laborers who still do not know the pact is meant to open the country to capital, not workers. Thus, the government will step up its advocacy and communication efforts.
"In fact, the pact creates several opportunities for competitive Taiwanese commercial and service industries to enter the mainland market. Some companies are full of confidence and say they are already preparing to take advantage.
"Taiwan is not a country that fears competition. The ROC has always taken the path of liberalization to achieve development rather than using high tariffs or protectionism to safeguard its own industries."
The premier also used the opportunity to thank and praise industry for contributing so much to Taiwan over the years by keeping ahead of the curve.
"Taiwan is competitive, and I firmly believe this will continue in the next generation," he said.
Expressing his appreciation for the opportunity to speak with business leaders, Jiang said, "I hope this kind of interaction will continue so the government can hear the valuable opinions of industries and be spurred and encouraged by them."