The National Development Council on Friday last week reported that the nation’s composite index of leading indicators — which aims to gauge the economic outlook over the next six months — increased last month for the 10th consecutive month and the composite index of coincident indicators — a gauge used to reflect the current economic state — also increased, for the ninth straight month.
The council said that the overall business climate monitor was “red” — from “yellow-red” in January — for the first time in a decade, indicating that the economy is “heating up” as the COVID-19 situation remains relatively under control.
On Tuesday last week, the Ministry of Economic Affairs said that industrial production last month increased by a better-than-expected 2.96 percent annually to 108.76 — the best February figure ever on the back of demand for semiconductors and LCD panels.
Export orders last month also grew on an annual basis, the 12th consecutive month, supported mainly by strong orders for information and communications technology products, the ministry reported on Monday last week.
Major semiconductor manufacturers’ increased investment in advanced technology and production capacity has led more firms in the domestic supply chain to invest more locally.
As Taiwanese businesses abroad and international firms seek local business opportunities — due to US-China trade tensions and realignments in the global supply chain — telecoms are beefing up 5G networks, green energy developers are accelerating construction of offshore wind farms and photovoltaic systems, and land developers are expediting the renovation of older buildings and advancing urban renewal projects. On Feb. 20, the Directorate-General of Budget, Accounting and Statistics forecast that private investment this year would grow 3.91 percent year-on-year to NT$4 trillion (US$139.85 billion).
While the government has predicted that the ratio of domestic investment to gross national income this year would reach 23.47 percent, the highest since 2011, the “five industrial shortages” — land, water, electricity, talent and workers — have returned to haunt the nation and cast a shadow over its economic development.
For example, if the water shortage worsens and more areas are hit with water restrictions, production at the nation’s major science and industrial parks would be impeded. Another example is the struggle between environmental protection and power generation. The push to protect algal reefs off the coast of Taoyuan could jeopardize the government’s goal of generating 50 percent of the nation’s power from liquefied natural gas, 30 percent from coal and 20 percent from renewable resources by 2025.
Taiwan’s declining birthrate and aging population have long plagued local industries with a shortage of talent and workers. Even though the government is providing more incentives, recruitment efforts by key industries show that a large gap remains between demand and supply. Companies might need to look overseas to make up for personnel shortages.
Substantial investment by businesses returning to Taiwan has led to a huge increase in demand for industrial land, office space and manufacturing facilities, which has sparked a significant rise in property prices and generated fears of a land shortage.
Before the trade tensions between the US and China, Taiwan witnessed years of sluggish domestic investment and the relocation of companies overseas. This wave of local investment — something rarely seen in the past 30 years — is an opportunity for economic transformation and industrial upgrades.
However, a failure to resolve these shortages might cause Taiwan to miss out. In 2018, the Democratic Progressive Party administration presented a set of policies aimed at solving these shortages. The government needs to review these solutions — right away.
It is almost three years since Chinese President Xi Jinping (習近平) and Russian President Vladimir Putin declared a friendship with “no limits” — weeks before Russia’s invasion of Ukraine in February 2022. Since then, they have retreated from such rhetorical enthusiasm. The “no limits” language was quickly dumped, probably at Beijing’s behest. When Putin visited China in May last year, he said that he and his counterpart were “as close as brothers.” Xi more coolly called the Russian president “a good friend and a good neighbor.” China has conspicuously not reciprocated Putin’s description of it as an ally. Yet the partnership
The ancient Chinese military strategist Sun Tzu (孫子) said “know yourself and know your enemy and you will win a hundred battles.” Applied in our times, Taiwanese should know themselves and know the Chinese Communist Party (CCP) so that Taiwan will win a hundred battles and hopefully, deter the CCP. Taiwanese receive information daily about the People’s Liberation Army’s (PLA) threat from the Ministry of National Defense and news sources. One area that needs better understanding is which forces would the People’s Republic of China (PRC) use to impose martial law and what would be the consequences for living under PRC
Chinese Nationalist Party (KMT) Chairman Eric Chu (朱立倫) said that he expects this year to be a year of “peace.” However, this is ironic given the actions of some KMT legislators and politicians. To push forward several amendments, they went against the principles of legislation such as substantive deliberation, and even tried to remove obstacles with violence during the third readings of the bills. Chu says that the KMT represents the public interest, accusing President William Lai (賴清德) and the Democratic Progressive Party of fighting against the opposition. After pushing through the amendments, the KMT caucus demanded that Legislative Speaker
Although former US secretary of state Mike Pompeo — known for being the most pro-Taiwan official to hold the post — is not in the second administration of US president-elect Donald Trump, he has maintained close ties with the former president and involved himself in think tank activities, giving him firsthand knowledge of the US’ national strategy. On Monday, Pompeo visited Taiwan for the fourth time, attending a Formosa Republican Association’s forum titled “Towards Permanent World Peace: The Shared Mission of the US and Taiwan.” At the event, he reaffirmed his belief in Taiwan’s democracy, liberty, human rights and independence, highlighting a
RSS