ECCT: Ma's economic plans a step in right direction

Taipei, Taiwan -- The European Chamber of Commerce Taipei (ECCT) said yesterday that it was very pleased KMT Presidential candidate Ma Ying-jeou provided a comprehensive outline of his economic platform at yesterday's joint chamber luncheon. Ma mentioned that he could not agree more with the title of ECCT's 2007-2008 Position Paper -- "Time to Act!"

The ECCT recognizes that Ma has addressed a number of issues raised in the recently released 2007-2008 Position Papers, such as the revitalization of Taiwan's financial services and tourism sectors, normalization of cross-strait economic relations, plans to further upgrade Taiwan's infrastructure such as wastewater sewage systems, the revival of coastal zones to make them attractive for tourism, and putting the economy first and ahead of political concerns.

At today's luncheon, Ma announced plans for his "12 i-Taiwan Priority Projects" covering transportation, industrial development, human resources and quality of living. The ECCT in particular supports his plans to revive Taiwan's logistics center capabilities, such as turning Kaohsiung into a free port with direct shipping links to China and the development of the Taoyuan International Air City. Ma further mentioned that he will look into lifting the import ban on products from mainland China -- currently a major trade barrier for many European brands operating in Taiwan.

However, Ma did not address recommendations made by the ECCT regarding taxation. Responding to a question from the floor as to how the new government would finance the new spending plan, Ma replied there would be no need to raise taxes, but there also wouldn't be any tax cuts.

The ECCT has called for a clear tax roadmap and a tax environment that is competitive with rival economies, which would imply lowering taxes in Taiwan. On the issue of infrastructural development, the ECCT welcomes Ma's stance, but would like to see further details of how his administration would deregulate the opaque and over-regulated public procurement environment to make it attractive for foreign investors.

Ma also touched on issues of human resources and the environment, but did not elaborate as to how to improve the flow of human talent, the educationa; system and reduce Taiwan's greenhouse gas emissions.

Several other priority issues for the chamber were not touched upon, such as stepping up Intellectual Property Rights protection and creating a sustainable health care environment. The ECCT looks forward to hearing more details of the economic plans of the KMT as well as the DPP in months ahead.