At a summit meeting among leaders of the nation's industrial groups today, Premier Mao Chi-kuo remarked that in response to global economic slumps, the government must help the nation's industries to transform and upgrade. The industrial sector is expected to work hand in hand with the government on this effort in light of the severe challenges posed by the international environment.
The government will help improve the domestic investment environment as well as assist relevant industries to upgrade and find new export expansion directions, Mao said. The administration has been employing various means to help industries that previously competed on production cost and efficiency to step up to the next level and compete on innovation and value. To further develop exports, the government has been seeking various possible models to help businesses pivot to India and the ASEAN (Association of Southeast Asian Nations).
In addition, the government has been promoting the Productivity 4.0 plan, which integrates the Internet of Things, big data, and smart production and marketing, and has applied them in such sectors as manufacturing, agriculture, commerce and service.
The nation's ETC (electronic toll collection) system is a case in point, Mao pointed out, as it employs the Internet of Things and big data while also incorporating smart management. Presently eight to nine countries have inquired about relocating the entire system's technologies to their home countries or conducting relevant technological collaboration with the ROC.
Because of the nation's industrial structure, Taiwanese exports in the past were comprised mainly of intermediate goods and components, the premier pointed out. In the future, industries should advance toward systems integration.
Regarding investment, Mao stated that the government will adopt an expansionary fiscal policy in 2016, with budgets for public infrastructure and investments of state-run businesses more than 13 percent higher than those in 2015.
As for bringing about industrial transformation through research and development, the premier said the government hopes to assist industries to break through technological constraints by upgrading their technology. For instance, through relevant ministries such as the Ministry of Economic Affairs, Ministry of Science and Technology, and Council of Agriculture, the administration will usher in advance research via the Science and Technology Development Fund, and create a favorable investment environment.
Regarding financing, the government has prepared NT$240 billion (US$7.66 billion) for loans to small and medium-sized enterprises, Mao said. For big enterprises, the government has raised NT$500 billion (US$15.95 billion). It hopes to collaborate with private sector forces to maximize the loans' effectiveness.
As for public concerns over the stock markets, the premier pointed out stock markets nosedived worldwide and fluctuated drastically in major economies a few days ago. Taiwan, as a member of the international community, could not be spared from the ripple effects. However, thanks to everyone's efforts, the local stock markets have rebounded in terms of both price and transaction volume, reflecting the sound fundamentals of Taiwanese enterprises. The government will continue to monitor the local stock markets and take necessary response measures.