Premier Lin Chuan said today that crises the world is currently facing are also opportunities, and that Taiwan should seize these opportunities to become more competitive and build greater economic advantages for the next wave of the industrial revolution.
Speaking at a forum on new global challenges and new economic pathways, organized by the Economic Daily News on its 50th anniversary, the premier said globalization is important to Taiwan because its economy has been driven by international trade for many decades. Countries that have problems with negotiations under the World Trade Organization can turn to bilateral or multilateral pacts with other countries, but Taiwan faces considerable obstacles pursuing these agreements due to its unique diplomatic situation.
Several important patterns have emerged around the world, the premier pointed out. First is the backlash against globalization and immigration that has made Trans-Pacific Partnership and Regional Comprehensive Economic Partnership negotiations even more difficult. Second, a new industrial revolution is taking hold where self-driving vehicles, robots, unmanned factories, and the internet of things are changing the way people live and work. Third, the world is paying more attention to global crises such as energy shortages, carbon emissions and air pollution, but efforts like the green economy and environmental sustainability carry the hope of creating a new world order.
To improve external trade, the government will find more opportunities for signing bilateral and multilateral agreements with other nations, remove trade barriers, and expand Taiwan's markets overseas.
The government may not have full control over factors operating in the external environment, but it can and will improve the investment climate within Taiwan, Premier Lin pledged. Uncertainty is the biggest factor affecting how businesses make investments, so the government will do what it can to remove uncertainties about water and electricity supplies, land availability and environmental impact assessments; in international trade studies this is called "creating comparative advantages."
People are the main force driving a nation forward, and Taiwan suffers one of the most severe brain drain problems in the world. After months of coordination and communication, the government has therefore drafted a special bill on recruiting and hiring foreign professionals. When the bill becomes law, it will increase interactions between foreign and domestic talent and help drive Taiwan's industrial growth.
The government is also working to reform the tax system, including addressing differences in taxes paid by foreign and Taiwanese workers. Creating a fairer and more reasonable tax code will attract more high-level professionals to Taiwan, the premier said.
In closing, Premier Lin said turning crises into opportunities is not a task for government or businesses alone, but one that requires cooperation from all sectors. Believing the adage that faith can move mountains, he hopes everyone will come together and move Taiwan forward into a new era of economic development.