Minister Wang Mei-Hua's oral administrative report to the 3rd session of the 10th Legislative Yuan, the 3rd Plenary Meeting of the Economics Committee
March 17, 2021
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
It was full of challenges last year (2020). However, thanks to the correct epidemic control measures taken by the government of Taiwan, economic activities in the country proceeded as usual. In addition, countries around the world encouraged their people to work and study from home, creating a bigger demand for emerging technology applications, such as 5G, vehicles, Internet of Things, etc., which has driven growth of various ICT products and semiconductor exports to a record high. Since August of 2020, the monthly export value has exceeded US$30 billion, the economy has grown against the trend by 3.11%, ranking first among the Four Asian Tigers for two consecutive years and spearheading all developed countries. As countries begin to administer the COVID-19 vaccine this year (2021), the pandemic is expected to slow down, leading to a gradual recovery of global economic activities. Coupled with the low base period factor from last year, the international forecasting agency IHS Markit predicts that the global economy will grow by 4.97% this year, stepping out of the economic gloom caused by the 3.73% negative growth in 2020.
Looking ahead to the domestic economy this year, the strong external demand, coupled with the advantages of Taiwan's communications industry, is expected to increase the country's export growth momentum. In terms of domestic demand, the stable employment rate and active stock market will help private consumption recover. Moreover, Taiwan's top semiconductor manufacturing capabilities keep leading the world. In addition, the continued implementation of investments by home-coming Taiwan enterprises, the promotion of green energy, and the Forward-Looking Infrastructure Development Program, etc., can support Taiwan's growth in terms of investment. The Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive Yuan projected that our economic growth rate will reach 4.64% this year, which is the highest since 2015.
Direction and Implementation of the MOEA's Administration
In the past two years, the US-China trade and technological conflict, as well as the COVID-19 pandemic, have accelerated the restructuring of the global supply chain, and have also brought new opportunities for Taiwan. To keep abreast of international trends such as digitization, smart technologies, carbon reduction, and green energy, we will accelerate industrial innovation, optimize the investment environment, and deepen international economic and trade cooperation. At the same time, we must also continue the transition to new forms of energy and ensure stable electricity and water supplies, so that Taiwan can continue to be play a key role in the global economic scene. The MOEA will continue to make more breakthroughs in the following four areas: industrial value innovation, increased investment momentum, diversifying global deployment, and sustainable energy development:
- Innovating the industrial value: Strengthen the resilience of the core industry supply chain, enhance the competitiveness of traditional industries, and accelerate the digital transformation.
- Increasing investment momentum: Attract famous international enterprises to increase investment and implement measures that promote investment.
- Diversifying global deployment: Help enterprises widen deployment; deepen Taiwan-US economic and trade cooperation; strengthen our economic and trade relations with the European Union and Japan; seek to join the "Comprehensive and Progressive Agreement for Trans-Pacific Partnership" (CPTPP).
- Promoting sustainable energy: Promote the development of renewable energy, accelerate the promotion of green energy , and ensure safe, diversified, and stable water and electricity supplies.
Conclusions
Dear Legislators, over the past year the global economy has plunged into a recession, but our country has demonstrated strong economic resilience, allowing the world to see the value of Taiwan. Taiwan has played the key role of rescuer and alleviated the global shortage of masks and chips used to manufacture cars. It is clear as day that although Taiwan is a small country, it is an indispensable link in the global supply chain. The challenges posed by the pandemic are not over yet; the global supply chain is also entering a period of reorganization. We will seize this opportunity to accelerate our industrial innovation, so that Taiwan can stand out from the global competition in the post-pandemic era.