At a press conference following Thursday's weekly Cabinet meeting, Vice Premier Cheng Li-chiun outlined the government's seven key measures in response to the evolving situation in the Middle East, with a focus on (1) ensuring the safety of nationals and expatriates; (2) stabilizing energy supplies; (3) maintaining domestic price stability for essential goods; (4) stabilizing supply chain operations; (5) maintaining market order; (6) ensuring financial stability, including the stock and foreign exchange markets; and (7) enhancing cooperation between the central and local governments.
The vice premier said that since the outbreak of the U.S.-Iran conflict, Premier Cho Jung-tai has been holding weekly special meetings to review supplies of key energy resources and essential goods and ensure they remain stable. In addition, the Executive Yuan's price stabilization task force now convenes weekly to reinforce policy measures, maintain market order and protect consumer rights.
Regarding the safety of nationals and expatriates, Vice Premier Cheng noted that as of April 1, the government has repatriated 5,289 citizens and raised travel advisories for the Middle East.
On energy, the Ministry of Economic Affairs and CPC Corporation, Taiwan, are actively managing oil and gas supplies, with crude oil and natural gas stockpiles remaining above the legally mandated minimums, while diversifying procurement to include non-Middle East sources and secure stable supply.
To stabilize prices for essential goods, the government is monitoring prices in Asia and implementing a special stabilization mechanism to moderate fuel price increases in Taiwan and keep them below the levels of neighboring countries. It has also frozen the prices of natural gas for residential use, bottled gas and electricity; reduced taxes on key raw materials; and kept transport fares stable.
To stabilize supply chain operations, the government has established reporting and coordination platforms. In response to recent concerns about fluctuations pertaining to petrochemical raw materials, it will closely track production and supply from upstream to market, and ensure the continued availability of medical services, medical supplies and medicines. Additionally, business taxes on specific commodities will be reduced to lower production costs in the domestic livestock industry.
To maintain market order, a joint inspection mechanism has been activated to conduct rigorous checks for hoarding and price gouging, while on the financial front, movements in the stock and foreign exchange market are being closely monitored and inter-ministerial stabilization measures will be applied if needed.
Vice Premier Cheng highlighted that the central and local governments have set up a collaborative framework to jointly safeguard supply and price stability. Based on projections from the Directorate-General of Budget, Accounting and Statistics, Taiwan's consumer price index (CPI) is expected to rise by less than 1.5% in March and stay below 1.5% for the current quarter, with the annual target remaining at 2% or under.