Taiwan Cabinet Approves US$3.33 Bn. to Help Upgrade Industries

Taiwan's Cabinet has recently approved a proposal to upgrade domestic industries, for which Premier Y. H. Jiang has instructed the National Development Fund to appropriate NT$100 billion (US$3.33 billion).

The Ministry of Economic Affairs (MOEA) is the brains behind the proposal and will handle the restructuring of the island's industries, aiming to raise the total production value of such industries to NT$19.5 trillion (US$650 billion) by 2020 from the current NT$13.9 trillion (US$463.33 billion).

The proposal targets raising the output of hi-tech industries to NT$11.7 trillion (US$390 billion) from NT$5.9 trillion (US$196.67 billion), and that of the service industry to NT$4.75 trillion (US$158.33 billion) from NT$3.03 trillion (US$101 billion).

An MOEA official says domestic manufacturers are accustomed to investing in enhancing efficiency, but neglect importance of improving manufacturing technologies and developing complex key items, not to mention being weak to set up brands and marketing channels, tendencies that are intrinsically tied to the Taiwanese culture of  conservativeness especially among traditional manufacturers.

Seeing such shortcomings of domestic industries, MOEA has decided to do whatever it can to upgrade and transform industries to enhance production capability.

Jiang urges MOEA to accelerate improving domestic industries as Taiwan seems lagging leading economies including the U.S., Japan, Germany, South Korea and China, who are actively upgrading their industries. (JL)