Premier Sean Chen stated today at the 2012 Central Taiwan Business Luncheon in Taichung that Taiwan's economic development is influenced by two major factors—the country's industrial structure and the global economic environment—and the Executive Yuan's Economic Power-Up Plan puts great emphasis on reforming the former by boosting small and medium-sized enterprises (SMEs) and injecting new elements to enhance industries' competitiveness.
Premier Chen noted that in the past, Taiwanese industries were labor-intensive, so all those who provided labor shared in the fruits of economic growth, and there was comparatively little economic inequality. In recent years, however, production has become more capital-intensive, as businesses have had to devote an increasing share of their budget to technology and have become increasingly dependent on the technologies of other firms. To propel economic growth in this environment, an improved industrial structure is imperative, he said.
With respect to the global environment, Chen said that while the impact of the European debt crisis is widely known, the most important trend is the formation of international economic organizations, and Taiwan cannot afford to be isolated or marginalized from such integration. This means signing free trade agreements (FTAs), removing obstacles to such accords and ensuring the domestic economy is ready for them, he said.
Later in the day, Premier Chen visited YOKE Industrial Corp., which is headquartered in Taichung Industrial Park, and observed the company's automated warehousing, assembly line and automated packaging systems. He praised YOKE's drive to innovate and expressed optimism it will continue to prosper and develop sustainable management through its investments in technology, environmental protection and green energy.
Executive Yuan Secretary-General Steven S.K. Chen and Spokesperson Cheng Li-wun and Deputy Minister of Economic Affairs Francis Kuo-hsin Liang accompanied the premier to the event.