ECCT urges gov’t to step up internationalization effort

"Taiwan has fallen behind three of the Asian tigers," said outgoing ECCT Chairman Ralf Scheller, who hoped the ruling Democratic Progressive Party (DPP) and opposition Kuomintang (KMT) could both pay attention to economic development, rather than focusing on political issues.

"From a European perspective, 4 to 5 percent growth seems high, but not if you work in an Asian environment," he said. Last September, a World Bank study showed that Singapore rates first for overall business-friendliness, while Taiwan ranks no more than 50th.

"If Taiwan would lift its restrictions on cross-strait trade, another 2 or 3 percent growth would not be unlikely, he added.

Scheller explained that ECCT's position papers should not come as a surprise for the government, as some of the issues it has raised have remained unresolved for years. Released in early November, the chamber's latest Position Paper included a "roadmap for economic recovery" that provides 10 practical recommendations for dealing with the current sluggish economy.

These suggestions are based on issues identified by ECCT's committee members as further hindering the development of local and international industries over the previous year.

Founded in 1988, the ECCT is the largest platform for European businesses in Taiwan, with 652 individual members from more than 400 different companies, grouped in 23 industry-specific committees.

Since its founding, the ECCT has functioned as an active lobbying organization, communicating the concerns of European companies directly to members of Taiwan's central and local government in addition to serving as a network — sponsoring social functions and charity events — for European business representatives.

Over the years, European companies have become the top investors in Taiwan with accumulated investments of more than NT$604 billion.

"In order to keep up this momentum, it is vital for Taiwan to be more attractive than its regional neighbors," he said.

Sheller explained that normalization of cross-strait business, full compliance with WTO requirements, simplification of tax regulations, and deregulation of key service industries, are among the most pressing issues facing European companies at present.

In a comparative study of Taiwan's taxation climate and competitiveness with other Asian countries published this year by the ECCT in conjunction with its annual position paper, Taiwan's overall tax environment is described as "less attractive" than in rival economies of the Asia-Pacific region. When competing for investment from both domestic and multinational corporations, Taiwan is at a disadvantage in the region, shows the survey, conducted by KPMG Taiwan in cooperation with the ECCT.

"It will be difficult for Taiwan to develop into a regional logistic or financial center, if packages for financial services offered by neighboring markets such as Hong Kong and Singapore are much more attractive," he said.

1|2|Next Page>>

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email