Ministry of Economic Affairs,R.O.C.

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Administrative Reports

Minister Shen Jong-chin’s oral administrative report to the 7th session of the 9th Legislative Yuan

Minister Shen Jong-chin’s oral administrative report to the 7th session of the 9th Legislative Yuan, the 5th Plenary Meeting of the Economics Committee

Date:2019-03-20

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

Dear Chairman and Legislators ,

It is such a honor for me to deliver the Administrative Report of the Ministry of Economic Affairs (MOEA) before the Economics Committee. Firstly, 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, in 2019 global economic growth is expected to decelerate to 2.8%; the lowest in the last three years. Major variables, such as the development of U.S.-China trade negotiations, fluctuations in the global financial markets, trends in oil prices and other raw materials, and geopolitical risks, will affect the steady growth of the global economy.

Because the uncertainty of global economic growth is increasing, and Taiwan’s exports expansion is facing challenges, domestic demand will become the main driving force of Taiwan’s economic growth. Under the continuous and active investments of large semiconductor manufacturers, the government’s promotion for Taiwanese business to come back and invest at home, the Forward-looking Infrastructure Development Program and the expansion of domestic demand, investment and consumption will be stimulated. The Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive Yuan, predicted that Taiwan’s economic growth will be 2.27% this year.

Direction of the MOEA's Policies

The MOEA will employ short-term, effective strategies that have an immediate impact on the public, starting with critical areas that affect the growth of domestic demand, such as investment, construction, and consumption. In the meantime, the MOEA will maintain export drives, deepen the development of emerging technologies and increase the vitality of industrial growth in order to reinvigorate the economy. The direction of the policies will employ the following strategies:

I.   Incentivize investment: promote incentives for Taiwanese businesses based overseas to return and invest at home, and appropriately meet their needs for water, electricity, and land so as to increase employment and drive industrial innovations.

II.  Boost construction: expand the development of solar power, accelerate the promotion of offshore wind power, implement the Forward-Looking Infrastructure Development Program and make major investments in state-owned enterprises.

III. Stimulate consumption: handle subsidies for industrial and residential energy-saving measures as well as electric scooter purchases; promote the development of domestic-oriented service industries.

IV. Promote exports: reinforce export promotion, accelerate global diversified deployment and maintain the momentum of export growth.

V. Develop emerging technologies: deploy emerging technologies that are internationally crucial, such as AI and 5G, so as to drive the development of innovative application services for business opportunities and provide new stimulus for economic growth.

Conclusions

Dear Legislators, this year’s prospect is characterized by the risk of the global economic deceleration, and the Taiwanese economy therefore faces more challenges. In response, the MOEA accelerates global diversification and strengthens export promotion. On the other hand, the MOEA implements construction and increases domestic investments, thus boosting consumption so that domestic demand becomes the backing that supports the stable growth of Taiwan’s economy and consequently create local employment opportunities. Certainly, in fundamental the areas such as of industrial innovation and talent cultivation, the MOEA will continue to develop and push forward in order to stimulate an economic upturn that drives the next wave of economic prosperity. During the policy promotion process, the MOEA will actively listen to the voices of all concerned parties and reinforce the cooperation with public associations so that policies will follow the will of the people and in line with the opinions of the people. Dear Legislators, in relation to the MOEA’s administration, I’m appreciated if you point out any weaknesses and advise as necessary.


Update: 2019-11-06