New Minister of Economic Affairs Shih Yen-shiang (施顏祥) will face the challenge of continuing his predecessor Yiin Chii-ming’s (尹啟銘) tasks, including the planned economic cooperation framework agreement (ECFA) with China and an initiative to revamp the dynamic random access memory (DRAM) industry, pundits said.
Shih, chairman of state-owned CPC Corp, Taiwan (CPC, 台灣中油), was previously a deputy minister of economic affairs and has also headed the Ministry of Economic Affairs (MOEA) Industrial Development Bureau. He worked for the MOEA in various capacities for 23 years before taking up his position at CPC six months ago.
Taiwan Thinktank (台灣智庫) chairman Chen Po-chih (陳博志) said Shih should start by filling in the blanks concerning the controversial ECFA.
“Yiin has left many questions unanswered, such as how inking an ECFA with China would facilitate Taiwan’s signing free trade agreements with other countries,” Chen told the Taipei Times yesterday by phone.
“Yiin never really told the public how severely the ECFA would affect [certain] local industries and drive them into extinction ... Increased commerce with the mainland has lowered wages for blue collar workers and now it’s white collar workers’ turn, ” Chen said.
Shih has plenty of experience at the ministry, but whether the 59-year-old, who has a doctorate in chemistry from the Massachusetts Institute of Technology, will bring fresh ideas remains to be seen, he said.
JPMorgan analyst Nick Lai (賴以哲) said Premier Wu Den-yih (吳敦義) wanted Shih to be the administration’s point man on cross-strait trade and investment policies.
Like his predecessor, Shih will pursue relaxed investment and travel regulations to boost the economy.
Yiin said at his farewell party yesterday that he strongly believed in Shih’s ability to lead the ministry.
“I can’t think of a better candidate, who has had such extensive experience at the MOEA and who is really on board with its every initiative,” Yiin said.
Another challenge facing Shih, who returned last night from a business trip to Japan, is the consolidation of the DRAM industry, an analyst said.
“Without intellectual property technology rooted in Taiwan, it is very difficult for our DRAM industry to survive in the long term,” Topology Research Institute (拓墣產業研究所) researcher Maxwell Me (莫積良) said by phone.
Me said he did not expect the government to change its initiative concerning the DRAM industry, but he wondered whether its efforts would be effective, especially after the creation of the ministry-backed Taiwan Memory Co (TMC, 台灣創新記憶體公司).
“When TMC was first formed and Yiin was determined to consolidate and rebuild the domestic multibillion dollar industry, Samsung Electronics Co did express trepidation at a potential formidable competitor,” Me said.
But when Nanya Technology Corp (南亞科技) and the US’ Micron Technology Inc opted out of partnering with TMC, Samsung’s fears subsided.
Later, Samsung’s technology advancement leapfrogged when it procured a significant supply of expensive immersion tools. The South Korean company feels confident that it will take time for Taiwan to catch up, Me said.
ADDITIONAL REPORTING BY CNA
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