Diversified development and privatization are not only concepts but also our practice ……
Diversified Development” has already become our operating objective and direction; “promoting privatization” is an effective way to liberate state-owned enterprises from bureaucratic constraints and to boost competitiveness. With everyone’s effort, we are convinced that we can create a better quality of life for the Taiwan people.
Privatization
With the current trend toward economic liberalization, privatization of state-owned enterprises has become a worldwide phenomenon. On July 25, 1989, the Executive Yuan established a “Task Force for the Implementation of the Privatization of National Corporations.” This task force is charged with the task of implementing matters directly related to the privatization of national enterprises.
In step with central government initiatives, the MOEA has also started promoting the privatization of industrial enterprises under its authority. Meanwhile, more authority has been given to each enterprise to increase efficiency and competitiveness on the road to sustainable development.
At present, the China Petrochemical Development Corporation, the BES Engineering Corporation, the China Steel Corporation, the steel production, shipbuilding and alloy steel production facilities of the Taiwan Machinery Manufacturing Corporation, the Taiwan Fertilizer Co., Ltd. ,and the Taiwan Salt Industrial Corporation have already been privatized. Apart from Taiwan Water Corporation, which is currently unsuitable for privatization because it is a public utility, a consultation company is studying the Taiwan Sugar Corporation for privatization in light of its vast land holdings. All remaining state-owned enterprises are gradually being privatized according to their business nature, and their privatization is expected to complete within the approved tine frame.
Management of governmental stocks
After the privatization of the state-owned enterprises, the government will still be the largest shareholder. Therefore, the management of government stocks will be in accordance with relevant stipulations of the Executive Yuan and the Ministry of Economic Affairs. The Commission of National Corporations will continue to outline operating procedures relating to the selection, evaluation and termination of public stockholding in order to establish an effective system for managing public stock ownership.