The London Metal Exchange's (LME) selection of Kaohsiung as an East Asian delivery point demonstrates that the city is richly blessed with resources for entry to the mainland Chinese and other East Asian markets, Premier Jiang Yi-huah said at the opening ceremony for LME deliveries at the port today.
"This is where future lies not just for Kaohsiung, but for all of Taiwan," the premier said. "Related industries will rise up with the Port of Kaohsiung to flourish and prosper."
The LME is the world's largest market for non-ferrous metal commodities, the premier explained. Its major commodities for exchange include copper, aluminum, aluminum alloy, lead, nickel and zinc. As mainland China is a major market for such metals, the selection of Kaohsiung as an LME delivery point could attract metal products for international futures contracts to the nation's free trade ports for storage and make Kaohsiung a critical link in this supply chain, Jiang said. Furthermore, foreign logistics firms could be enticed to move to the port and invest there, making Kaohsiung an Asian logistics hub.
"Kaohsiung has long been an important national import and export gateway. Besides being a natural harbor, it has a world-class customs and tax management system," the premier said. "Following its selection as an LME delivery point, the government will invest even more in improving its systems and infrastructure so that it will not only be excellent in handling, storage and transport but also in terms of services. It has room to grow in fields such as finance and the food and beverage industry.
"Taiwan is working to become a 'free economy island,'" Jiang continued. "This process includes many systemic adjustments and requires both caution and boldness. This is why the government is promoting free economic pilot zones (FEPZs).
"FEPZs are based on Taiwan's free trade ports. Hinterlands are being expanded, regulations relaxed and infrastructure strengthened at these six ports so they can become FEPZs. Through the 'store in the front, factory in the back' model, these locations will then bring together goods, capital and talent from Taiwan and abroad which will be linked with every part of the island so all businesses can share in the opportunities created.
"A special act for FEPZs drafted by the Council for Economic Planning and Development is currently undergoing revision by the Executive Yuan. The objective of this legislation is to further connect Taiwan with the world as quickly as possible through liberalization, internationalization and forward-looking planning. It is hoped that the nation's intelligent logistics, value-added agriculture, international health care and traditional manufacturing and service industries will be transformed by the opportunities provided by FEPZs.
"The stimulation of the Taiwanese economy by FEPZs would jumpstart all of the nation's industries. Hence, I hope not only that the nation's agencies continue their hard work on this project but also that the Legislative Yuan gives its full support to the passage of the FEPZ special act so the Taiwanese economy can be transformed in the shortest possible time and get a step ahead of other nations in Asia."