Premier Lai Ching-te on Tuesday met with the heads of six major business groups in Taiwan to gather feedback on the nation's current economic situation. The meeting began with presentations by the National Development Council and the Ministry of Economic Affairs on the development of an action plan to welcome Taiwanese businesses in China home and a new economic immigration bill, as well as related measures.
The Third Wednesday Club indicated its belief that the trade tensions between the U.S. and China may continue for some time. Club representatives said that while in the short term the government has established measures to address shortages affecting industry in Taiwan and bring back investment from Taiwanese businesses in China, in the medium and long term more concrete plans, such as changes to the environmental impact assessment system, will be necessary to help upgrade domestic industries.
The General Chamber of Commerce of the ROC meanwhile asked for more policies aimed at developing local service industries. Taking the tourism industry as an example, chamber members explained that although there are many areas of scenic beauty in Taiwan, the amount of land available for development is limited. The government should therefore make the best use of the nation's unique natural resources and push strongly for the advancement of tourism by developing even more spots of cultural and human interest.
The Chinese National Federation of Industries pointed out that taxes are a key factor affecting investment, and asked the government to carefully review tax-related issues. This includes tax regulations on the repatriation of offshore capital, and the differences in stock dividend income tax rates paid by domestic versus foreign investors.
The Manufacturers United General Association of Industrial Parks of the ROC said that central and local authorities must work closely together to bring the tangible benefits of industrial policies to the people. Taiwan should also pay keen attention to the growth of the digital economy and make full use of its advantages as a small nation.
The Chinese National Association of Industry and Commerce Taiwan suggested that the government evaluate energy policy in a pragmatic manner. This includes pursuing the best mix of coal, gas, nuclear and renewable energy resources that supports both environmental sustainability and economic growth. Taiwan should also persist in its efforts to integrate with regional economies.
The National Association of Small and Medium Enterprises of the ROC (NASME) pointed out that small and medium-sized enterprises (SMEs) by nature have fewer resources than large corporations. While the Small and Medium Enterprise Credit Guarantee Fund of Taiwan already provides SMEs with credit guarantees on a risk-sharing basis, NASME representatives said the government could coordinate with banks to provide more financial assistance.
Premier Lai reiterated that the coming two to three years will offer a prime opportunity to bring overseas Taiwanese firms back home. Recognizing the public consensus and the urgency of getting the economy on track, the administration will take up its responsibilities, continue listening to the people, and formulate economic policies that will boost Taiwan's overall competitiveness.