Ministry of Economic Affairs,R.O.C.

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Administrative Reports

Minister Shen Jong-chin’s oral administrative report to the 8th session of the 9th Legislative Yuan

Minister Shen Jong-chin’s oral administrative report to the 8th session of the 9th Legislative Yuan, the 3th Plenary Meeting of the Economics Committee

Date:2019-10-02                                                                                                                                       

The following is a translation of the main points of the minister’s report.

Dear Chairman and Legislators,

It is such a pleasure for me to deliver the Administrative Report of the Ministry of Economic Affairs (MOEA) before the Economics Committee. I will briefly explain current internal and external economic circumstances and the focus of the MOEA’s administration. Please advise as necessary.

Current Economic Situation

According to the latest predictions from the global forecasting institution, IHS Markit, global economic growth in 2019 is expected to decelerate to 2.65%, and growth is projected to fall further to 2.60% in 2020. In the future, uncertain variables, including the US-China and Japan-South Korea trade disputes, fluctuations in international stock, currency, and bond markets as well as international oil prices, Brexit, and geopolitical risks, will still require close attention.

Rising potential risks to the global economy have led to weak demand, which is detrimental to export-oriented countries and has brought challenges to Taiwan. However, the US-China trade friction has led to orders being transferred elsewhere, and emerging business opportunities are now being promoted. These are expected to infuse vitality into our exports. Regarding domestic demand, investments by repatriating companies are gradually being implemented, the semiconductor industry is continuing to invest in advanced manufacturing processes, and implementation of public infrastructure has entered its peak period. Furthermore, subsidies for domestic tourism are continuing to be promoted. These factors are expected to drive growth in our economy. The Directorate General of Budget, Accounting and Statistics (DGBAS) of the Executive Yuan, predicted that our economic growth in 2019 will be 2.46% and will rise to 2.58% in 2020.

Direction of the MOEA's Policies

At this crucial juncture, when the US-China trade friction is accelerating global supply chain reorganization, in order to carry out "following the will of the people, and striving for the economy," the MOEA has committed itself to assisting enterprises with global deployment, attracting more companies to establish strong roots in Taiwan, and promoting industrial innovations and transformations. We must also continue the energy transformation and ensure stable electricity supplies, so as to drive the steady economic growth of Taiwan. The direction of the policies will employ the following strategies:

I.  Economic and trade transformation: To effectively assist companies with base deployment, deepen the expansion of global business opportunities, and strengthen regional economic integration.

II. Industry transformation: To further cultivate industrial innovation, strengthen support for small and medium enterprises and startups, amend the Factory Management Act, and upgrade the gasoline and Electric Motorcycle Industries.

III. Energy transformation: To accelerate the development of renewable energy and the green energy industry while maintaining a stable electricity supply and reasonable electricity prices.

IV. Promotion of investment and consumption: To encourage enterprises to invest in Taiwan, and accelerate the implementation of the Forward-Looking Infrastructure Development Program while promoting consumption in business districts and night markets, and pushing forward subsidies for gas stoves and gas water heaters.

Conclusions

I hope Legislators will know that despite the fickle international economic and trade situations, the MOEA continues to help enterprises with global deployment and business expansion, as well as help them establish strong bases in Taiwan, develop in a sustainable manner, and drive industrial upgrading. Now is the best timing to invest in Taiwan. We will not only strive for investments, but also make more efforts to stimulate consumption in order to drive the growth of domestic demand. We are fully aware that enterprises are good partners when the government pushes forward with economic transformations. Recently, Premier Su and I have presided over several face-to-face forums with corporate representatives, listening carefully to their opinions and suggestions, and assisting various industries to develop and flourish.


Update: 2019-11-06