Taiwan must strengthen its advantages and seek synergies with other Asian countries to propel itself into a new era of growth, Premier Mao Chi-kuo said today at the 2015 Chinese Business Leaders Forum held by the Taipei-based Global Views Monthly magazine.
"To keep pace with Asia's complex economic developments, Taiwan must take advantage of the region's economic boom and harness the strength of Chinese-speaking communities throughout Asia."
Mao said Taiwan also faces severe challenges brought on by the global economic situation. Internally, it must transform and upgrade its entire industry structure to cope with declining export demand. Externally, Taiwan must avoid marginalization by joining regional economic blocs such as the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). And with mainland China's new Silk Road initiative (known as "One Belt, One Road") expected to bring profound changes to Asia's economy, Taiwan must strengthen its foothold in Association of Southeast Asian Nations (ASEAN) markets and turn the mainland threat into an opportunity.
To meet these challenges, the government is reforming Taiwan's economic and financial systems and relying on several strategies: (1) expediting the nation's participation in economic integration, (2) accelerating the development of innovation drivers, (3) hastening the arrival of the new industrial revolution, (4) and speeding up the expansion of export markets. The aim is to make Taiwan a top investment destination and industrial innovation center for Asia, as well as a global talent hub where creative entrepreneurs can come to realize their dreams.
First, to expedite regional economic integration, Taiwan must work harder to gain membership into the TPP and the RCEP. Second, to accelerate innovation, Taiwan should make innovation its core competitive ability and move from an efficiency- to an innovation-driven economy. The government's priority here is to create a favorable environment for creative startups. In the past year, for instance, it eased regulations in the Company Act, set up an equity crowdfunding platform for startups, and launched a visa program for foreign entrepreneurs. And to take Taiwan's startups global, the government established the Taiwan Innovation and Entrepreneurship Center in Silicon Valley, the first of its kind by any Asian country.
Taiwan also published the Ide@Taiwan 2020 white paper on Internet development policies covering the digital infrastructure, transparent governance, smart living, the cyber economy, and intelligent homeland planning. Aside from guiding government endeavors for the digital age, this policy blueprint will spur the Internet business industry, encourage companies to develop online markets, and create a niche for Taiwan in the worldwide digital economy.
Third, to hasten the new industrial revolution—while accommodating the graying population and shrinking workforce—the government has rolled out the Productivity 4.0 project. This initiative aims to transform Taiwan's manufacturing, agricultural and service sectors into high-value added industries by developing self-reliant core technologies, enhancing international cooperation, forging industrial alliances, and strengthening training links among companies and universities.
Finally, to speed up the expansion of export markets, Taiwan is diversifying its commodities, markets and sales channels in an effort to move away from the export of intermediate goods to the creation of higher-value systematic products and services. This strategy is particularly important for capturing the massive opportunities presented by the burgeoning middle class in emerging Asian markets as well as in mainland China, which is now shifting its role from the "world's factory" to the "world's market."
Moreover, the government is helping Taiwanese companies set up cooperation with self-owned brands in high-potential emerging markets. Small and medium-sized enterprises are also receiving assistance in combining virtual sales channels with physical stores to reach more ASEAN consumers.