Nation should adjust monetary policies to survive: industry head
By John Liu, The China PostTAIPEI, Taiwan -- The government should more highly regard Taiwan's exports and adjust monetary policy in response to turbulent changes in the global market so as to enhance Taiwan's competitiveness, said Guo Tai-chiang (郭台強), the chairman of the Taiwan Electrical and Electronic Manufacturers' Association, at an industry convention.
October 9, 2013, 12:07 am TWN
Guo said in the opening ceremonies of TAITRONICS 2013 that manufacturers in Taiwan are facing increasing competition from abroad, particularly as the U.S.' manufacturing sector has gained momentum and Japan and South Korea depreciate their currencies to boost exports.
Featuring the theme of “E-mobile Era, Smart Living,” TAITRONICS 2013 kicked off yesterday. In addition to Guo, the event's opening ceremony was attended by President Ma Ying-jeou, as well as the Taiwan External Trade Development Council Chairman Wang Chih-kang (王志剛) and Vice Economics Minister Cho Shih-chao (卓士昭).
Ma said in response that he would consider Guo's suggestion. However, Ma also indicated that policies must be made with a balanced approach that takes various factors into consideration so as not to hurt the public livelihood and private consumption.
Reasons for Optimism
Exports unexpectedly fell 7 percent in September compared with last year, causing concerns that 2013 GDP growth may drop further. Nevertheless, Guo stressed that Taiwan's manufacturing sector is strong in electronic parts and components. Although 10 fewer merchants participated in the show compared with last year, Guo joked that the reason for sponsoring this exhibition is to show to the world that “We are still alive.”
Although China's recent labor shortage has hurt the industry, there are reasons to be optimistic. As shopping season draws near, sales of consumer electronics are expected to go up in the fourth quarter. This will likely benefit domestic manufacturers, Guo said.
The Taiwan Electrical and Electronic Manufacturers' Association's has 3,600 members and forms a supply chain that creates US$250 billion in value, according to Guo, who said that the supply chain comprises 46.7 percent of Taiwan's total export value.
President Ma's Confidence
Ma said that the global economy has grown only 1.5 percent in the past five years. Nevertheless, Taiwan saw a 3-percent growth during the same period and ranked second among the “Four Asian Tigers,” namely Singapore, Hong Kong, Taiwan and South Korea.
Ma offered positive remarks regarding Taiwan's electronics players, and described merchants participating in the exhibition as “invisible champions.” While the scale of the industry is not particularly large, its players are indispensable and play a crucial role in Taiwan's economy, Ma said, stressing that the competitiveness of Taiwan's businesses are growing. “We are not only alive, but also very well alive,” Ma said, adding that more “invisible champions” will grow in strength, and expressed his confidence in Taiwan's economy.
Top Electronics Procurement Platform
TAITRONICS 2013 was organized by the Bureau of Foreign Trade and the Ministry of Economic Affairs, and implemented by the Taiwan External Trade Development Council, the Taiwan Electrical and Electronic Manufacturers' Association, and the Cloud Computing Association in Taiwan.
TAITRONICS 2013 encompasses the 39th Taipei International Electronics Show, the 6th Broadband Taiwan Show, and the 2nd Cloud & IOT Taiwan. Held at Taipei World Trade Center's Nangang Exhibition Hall, the show will last until Oct. 11. There are 738 merchants participating across 1,415 stalls scattered in 19 exhibition areas. It is estimated that 45,000 buyers from around the world will visit the event.