Speaking at an international conference organized in Taipei by the London-based publication The Economist, Ma stressed that “there is no reason for us to be too pessimistic.”

“We are very well aware of the many challenges that lie ahead. However, Taiwan’s economy is basically sound and our people are very hard-working,” he said.

Yet he acknowledged that “Taiwan’s economy is already at a crossroad,” with the subprime mortgage crisis in the United States and the fluctuation in international crude oil prices that have sparked worldwide inflation and other economic problems.

To escape global economic woes, the president explained that the government has undertaken a number of measures to improve the country’s investment environment, including encouraging research and development in the high tech sector and easing regulations in many of Taiwan’s industrial sectors and in commercial exchanges with China.

“The idea is not to encourage investment on the mainland because the investment climate [there] has deteriorated as a result of the changing labor and environmental laws. The idea is to encourage companies which have made money on the mainland to come back in Taiwan and get their stock listed in Taiwan stock exchange,” he continued.

Over the past eight years, Ma pointed out that up to 68 Taiwanese companies which were doing well on the Chinese mainland eventually got their stock listed in Hong Kong.

Also, the recent trade and transportation agreements signed with Beijing authorities have greatly reduced the odds of confrontation across the Taiwan Strait, he indicated.

“That makes our investment climate much better than what it was before,” he said.

“Obviously our efforts have generated a lot of good will across the Taiwan Strait. At the same time we were still able to get what we want from the United States government. It is very important for Taiwan,” he added.

Citing a Business Environment Risk Intelligence (BERI) assessment issued last September, Ma said Taiwan ranked 6th worldwide for Profit Opportunity Recommendation, up from 15th in January 2008.

“Taiwan has become much safer as far as the business community is concerned. This is something that we hope will last as long as we keep on the policy of improving relations with the mainland,” he went on. “The relations between Taiwan and mainland China have generated many opportunities. I am not a wishful thinker. I am not naive.”

In addition, the president touted the government’s plans to stimulate domestic consumption, which would be based on providing local residents with consumption vouchers.

“I hope to stimulate domestic consumption with this policy’s implementation and I also hope that everyone will be more confident in Taiwan’s economy,” Ma said.

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