Premier Mao Chi-kuo today underscored the importance of the government's short-term stimulus package for tackling a string of economic challenges at home and abroad, saying that the measures will pave the way for the next stage of Taiwan's economic growth.
The country in recent months has been hurt by declining exports, a slowing economy, a lackluster stock market as well as a worse-than-expected global economic environment, Mao said. Meanwhile, the consumer electronics market is reaching saturation, traditional industries are seeing weak exports, and mainland China's import substitution policy is eating into Taiwan's market share. At a time like this, it is imperative that the nation's industries are transformed and upgraded, he stressed.
The stimulus package outlined by the National Development Council (NDC) last month focuses on three main areas: To upgrade industries, the government will promote innovation and help industries shift from price competition to value competition. To expand exports, Taiwan will strengthen its systems integration capabilities and transform from an exporter of intermediate goods to a provider of systematic products and services. To promote investment, the government will increase domestic and foreign sources of investment and channel public and private funds into upgrading industries and expanding exports.
The government has put together an array of stimulus measures and policies for the second half of 2015 through 2016, Mao continued. For instance, the NDC is aiming to draw more foreign tourists to Taiwan. It is also working with the Central Bank of the Republic of China to implement an expansionary fiscal policy (such as by increasing the science and technology budget by 10 percent). In addition, the central bank has recommended a loose monetary policy while the Ministry of Finance and the Financial Supervisory Commission have proposed financing programs for small and medium-sized enterprises.
Premier Mao said all of these actions are expected to create immediate results. He directed all ministries and agencies to continue in their efforts and help pull the country through this global downturn.