The nation’s service sector needs to transform itself to prepare for global economic changes expected after US president-elect Donald Trump takes office, the Commerce Development Research Institute (CDRI, 商業發展研究院) said on Monday.
Economic shifts during the Trump era might pose challenges to Taiwan’s service industry, but they might also present new opportunities, CDRI chairman Hsu Tain-tsair (許添財) said at a news conference in Taipei.
While expected exchange rate fluctuations could affect Taiwan’s import costs and export competitiveness, Trump’s emphasis on reducing China’s influence in supply chains presents an opportunity for Taiwan to enhance the competitiveness of its service businesses, Hsu said.
Photo: CNA
One such area of potential cooperation with the US is artificial intelligence, he said.
The uneven recovery of the economy would persist as trade and supply chains undergo global transformations, he said.
If Taiwan’s service sector does not make digital and services changes, it might result in the sector’s structural decline, he said.
Taiwan’s chronic labor shortages would not be easily solved in the short term and likely become a long-term trend, and any lack of action in addressing the issue could lead to a wave of business closings, Hsu said.
An approach of permitting more migrant workers to Taiwan would be too passive, he said, adding that a structural makeover to bring in workers is needed.
Japan not only recruits workers from abroad, but also sends one-third of its workers who did not get through training programs back to their homelands, Hsu said, adding that such a method is more “proactive.”
The issue should be discussed at the Legislative Yuan, he said.
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