The Gap between Perception and Reality
* Despite suffering a devastating electoral defeat on November 29, the appointment of the former vice Premier, Mao Chi-kuo, to head the Cabinet as the next premier has been perceived by most that Taiwan President Ma Ying-jeou still wants to retain power for as long as possible.
* Worse yet, the "old-look" administrative team fell far below the general expectation that the ruling Kuomintang (KMT) would attempt to regroup with fresh faces and gain some traction amidst plummeting public support. It just didn't happen.
* Unless the KMT can regain credibility and confidence from the electorate--whether through policy or personnel reshuffle--in the next 12 months, the prospects are not particularly bright heading into the next legislative (January 2016) and presidential elections (March 2016).
* We expect progress, if any, in cross-Strait relations to move at a snail's pace in 2015.
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