Sunday, December 19, 2010

Taiwan's economic development in 2011

l  With average monthly salary expected to reach NT$44,453—which is a new high—this year, Taiwan will likely place a stronger emphasis on increasing domestic demand next year. Instead of relying heavily on exports as in the years past, therefore, economic officials are now calling for more domestic demand to stimulate Taiwan’s economic growth in 2011.

l  The government, in turn, is drafting plans to: (1) identify, at least, three key industries for each city and county on the island, (2) promote these designated industries to attract foreign and domestic investment, and (3) coordinate among the cities and counties to provide multiple choices for foreign and domestic investors to invest in.

l  On paper, the proposed plan appears plausible. However, a lot of coordination and teamwork between local and central governments are needed for the proposal to work as planned. Moreover, given the recent election of new “super-mayors” for the five special municipalities last month, the task could become more complicated since local authorities will have more autonomy in formulating their own path of economic growth and development.

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