To transform the nation's export structure and increase exports of products and services, the Ministry of Economic Affairs (MOEA) will encourage Taiwanese companies to invest in labor-intensive manufacturing in countries such as India and Indonesia while keeping upstream key components as well as research and development in Taiwan.
The MOEA briefed Premier Mao Chi-kuo on this program at today's Cabinet meeting. The National Development Council (NDC) also gave a report on the current economic situation.
Mao pointed out that the global economy is relatively weak this year, affecting the nation's export performance. In April the nation's overall monitoring indicator flashed "blue," signaling economic sluggishness. This also demonstrated the new challenges the island's past growth model faces when global economic growth falls to mid-to-low levels, the premier said.
The government is proactively promoting the industrial upgrading and transformation action plan, the NDC stated. Via legal and regulatory easing, the administration is promoting innovative industrial development models to bolster the economy. In addition, the government has set up an innovative startup policy task force to integrate the public and private sectors' innovative startup capabilities and resources while also proactively implementing the HeadStart Taiwan program. By eliminating legal obstacles and attracting international capital as well as professional expertise, the administration hopes to create a high-quality environment conducive to innovation and startups to regenerate national economic growth momentum.
The MOEA stated that in carrying out its overall export resolution plan, it hopes in the short term to promote exports to target markets by businesses that already have good records or potential. In the mid-to-long term, the MOEA will set up effective incubation mechanisms for those newly emerging resolution plans with developmental potential, such as smart cities, cloud computing, the Internet of Things, big data and Productivity 4.0.