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Ministry of Economic Affairs,R.O.C.

Administrative Reports

Minister Shen Jong-chin’s oral administrative report to the 1th session of the 10th Legislative Yuan

Minister Shen Jong-chin’s oral administrative report to the 1th session of the 10th Legislative Yuan, the 5th Plenary Meeting of the Economics Committee

March 11, 2020


The following content is a translation of excerpts from 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

     As the Coronavirus disease 2019 (hereinafter referred to as the "COVID-19") spreads around the world, China and the global economy have been impacted. Furthermore, global supply chains could also be interrupted. Moreover, there are more uncertainties in the global economy due to the US-China trade dispute, fluctuations in exchange rates and international oil prices, and geopolitical risks. The global forecasting institution IHS Markit has revised its estimate for global economic growth in 2020 to 2.46%, down from 2.63% in 2019. The revision shows that the recovery momentum for the global economy remains weak.

     The COVID-19 outbreak has not only led to the uncertainty of global economic growth but also has impacted Taiwan's domestic demand and exports. The Directorate General of Budget, Accounting and Statistics (DGBAS) of the Executive Yuan revised our predicted economic growth in 2020 to 2.37%. Domestic demand remains the primary driving force for our growth. Private investments are steadily increasing because of the investments of the 5G, semiconductor, and offshore wind power sectors, as well as the gradual implementation of investments by repatriating companies. Although the COVID-19 outbreak has also had an impact on private consumption, its impact is softened by the flourishing development of e-commerce and delivery platforms. Regarding exports, production capacity is driven by the repatriating companies, but the growth of exports could still be affected by the outbreak. Exports will regain momentum when the virus is gradually contained in the future, and the supply chain resumes production.

Direction of the MOEA's Policies

     In the face of the impact brought by the outbreak at a global level, in the short-term, it is necessary to ensure that there is a sufficient supply of resources for disease prevention. Furthermore, the MOEA will help businesses weather this difficult time and take this chance to improve their conditions. Moreover, in order to take advantage of the global supply chain reorganization currently occurring and increasing inbound investments by repatriating companies and foreign companies, the MOEA has committed itself to focusing on advanced R&D through industry transformation, diversifying production bases and export markets through economic and trade transformation, accelerating companies' investment in Taiwan, and promoting green energy development through energy transformation. The MOEA aims to assist industries in securing a key presence in the new value chain, boost the job market and wage levels, and maintain Taiwan's long-term economic momentum. Therefore, the direction of the MOEA's policies will employ the following five strategies:

  1. COVID-19 outbreak response: Ensure a sufficient supply of resources for disease prevention and help businesses weather the difficult period and conduct upgrades.
  2. Industry transformation: Build Taiwan into hubs of advanced manufacturing, advanced technology R&D, advanced semiconductor processes, and green energy development.
  3. Economic and trade transformation: Help companies to disperse risks through adaptable business deployment, usher enterprises to expand into international markets, and seek to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
  4. Invest in Taiwan: Accelerate the implementation of investing in Taiwan and help to resolve the "5 Shortages."
  5. Energy transformation: Maintain a stable electricity supply, improve the air pollution situation, and provide reasonable electricity prices.


      Dear Legislators, this global outbreak has a huge impact on the economy. The MOEA will fully provide companies with all kinds of assistance to weather this difficult time, guide industries to conduct upgrades, seize the opportunities for trade diversion, and transform the crisis into opportunity. In addition, the MOEA will follow the previous administrative direction and is committed to helping companies with base deployment, expanding their global business, accelerating the implementation of investing in Taiwan, driving the next wave of industrial development, and strengthening Taiwan's economic flexibility and adaptability.