Minister Wang Mei-Hua's oral administrative report to the 4th session of the 10th Legislative Yuan, the 5th Plenary Meeting of the Economics Committee
October 6, 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 economic circumstances and the focus of the MOEA's administration. Please advise as necessary.
Current Economic Situation
The COVID-19 virus continues to mutate into new variants, and the world continues to be threatened. However, following the widespread administration of vaccines on the international level and the gradual loosening of epidemic prevention and control measures in major economies such as Europe and the United States, there has been a rebound of the global economy from the negative growth of last (2020) year to the positive growth we see now. Domestically, the epidemic situation heated up from May to July this (2021) year. The warning levels for epidemic prevention increased, and domestic consumption was inevitably impacted. However, with the joint efforts of the whole population of Taiwan and the government, the epidemic has gradually and effectively been controlled. We have worked hard to ensure an unbroken production chain, so that domestic production and exports are not affected. Our technological advantages were fitting answers to the zero-contact and remote business opportunities driven by the epidemic. Global economic recovery has also led to a rebound in terminal demand for products from traditional industries. Exports have shown double-digit growth since March of this year. In August, exports showed positive growth, continuing 14 months of consecutive growth and leading to a new high of nearly US$40 billion. With the return of Taiwanese businesses and increase in investment in areas such as semiconductors, 5G, and green energy facilities, investment has gained momentum. Driven by the dual engines of exports and investment, the Directorate General of Budget, Accounting and Statistics (DGBAS) of the Executive Yuan estimates that the economic growth rate this year will climb to 5.88%, an 11-year record high.
Direction and Implementation of the MOEA's Administration
As countries are beset by the challenges of the epidemic, trade and technological disputes between the US and China, and climate change, reducing supply chain risks and ensuring economic security have become the focus of attention for each country and enterprise. This situation presents the perfect opportunity for Taiwan to take advantage of its safe and stable supply chain, attract domestic and foreign investment, and expand opportunities for international cooperation. We have also accelerated industrial innovation and upgrading, enhanced environmental governance capabilities, and improved the resilience of our supply chain, leading Taiwan to an ever more important position in the world. In terms of administration, the MOEA will strengthen its actions in five aspects: outbreak response, enhancing industrial ability, boosting investment capacity, strengthening international connections, and securing a low-carbon and sustainable environment.
- Outbreak response: Ensure that production chains remain intact and unbroken, promote COVID relief package 4.0, and accelerate industrial revitalization.
- Enhancing industrial ability: Expand upon the advantages of the core supply chain and promote the digital transformation of enterprises.
- Boosting investment capacity: Attract manufactures back to Taiwan, implement local manufacturing, and promote increased foreign investment.
- Strengthening international connections: Apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), strengthen the economic and trade ties between Taiwan and the US, strengthen economic and trade cooperation between Taiwan and the EU as well as between Taiwan and Japan, and diversify and expand into New Southbound markets.
- Securing a low-carbon and sustainable environment: Promote net zero emissions, promote the development of renewable energies and green energy, stabilize the power supply, and improve water supply resilience.
Conclusions
Dear Legislators, although Taiwan has undergone major changes this year due to the local epidemic, we have nevertheless helped companies to weather the storm while also curbing the epidemic as quickly as possible. Our economy has grown despite the prevailing trend, once again allowing the world see Taiwan's strength and resilience. As the global economic order is restructured, we will seize new opportunities; we will accelerate industrial upgrades and transformation; we will endeavor to be the best international partner; and we will play a more active role in the global supply chain. Such actions will prove that the world not only needs Taiwan, but that it cannot do without Taiwan.