Home

Hsieh, Ma outline blueprints for Taiwan economy

By Amber Wu

FROM TAIWAN Journal

Ruling Democratic Progressive Party presidential candidate Frank Hsieh vowed Nov. 18 to lead Taiwan to an economic boom to ensure people felt a sense of well-being, promising he would take care of the middle class, small and medium-sized enterprises, as well as citizens living in central and southern Taiwan.

"The key to revitalizing Taiwan's traditional industries and to prevent the loss of talent is to stabilize prices and increase the employment rate," said Hsieh in a report by Taiwan's Central News Agency on the same day. Hsieh emphasized that looking only at the growth of the gross domestic product is not adequate, and he wished to establish a golden triangle in Taiwan, consisting of economic development, social justice and environmental sustainability.

Opposition Kuomintang presidential candidate Ma Ying-jeou also outlined his proposal for Taiwan's economy, in a white paper released Nov. 29. He suggested two key solutions, pointing out the government should first reinforce the island's infrastructure to stimulate local demand and to attract investments.

The KMT heavyweight's economic blueprint included spending US$80.3 billion on 12 projects designed to bolster the fabric of the economy, and having a more open attitude toward cross-strait communication, saying that it would be beneficial to Taiwan to establish direct trade and transport links with China.

On the issue of taxation, Hsieh said he would cut income and business taxes to increase consumers' purchasing power. The nation's coffers would not be emptied due to such a measure because the government would raise energy taxes, Hsieh noted. "Under my plan, the government would still collect the same amount of tax, but the money would be taken from the people who are doing the most damage to our environment," he said. Meanwhile, Ma said that he would not recklessly increase or slash taxes to maintain government operations.

Concerning employment, Hsieh holds the opinion that Taiwan must revitalize the manufacturing industry, as it plays an important role in creating jobs. "Ma said he wants to reduce the unemployment rate to 3 percent, but I plan to make it zero percent because under my plan no one will go jobless," he said.

Ma's method to increase employment is to upgrade the nation's road network, while establishing a free-trade port in Kaohsiung, an Asia-Pacific marine and aviation operations hub in Taichung, an aviation park at the Taiwan Taoyuan International Airport, and six industrial innovation corridors in Hualien and Taitung Counties.

The KMT estimates that the plan would help Taiwan enjoy a per-capita income of about US$30,000 in 2016, an unemployment rate of lower than 3 percent and an annual growth rate of more than 6 percent. Moreover, Ma stressed the importance of balanced development in every region of the country, outlining rejuvenation plans for industrial zones and rural areas. Ma also placed emphasis on forestation projects and the basic tenets of environmental protection.

While the business world pays attention to the two candidates' cross-strait policies as a touchstone, in reality, both men are seen as having few differences in essence. Being viewed as more open in this issue, Ma promised to readjust the current 40-percent investment cap for Taiwanese companies in China. Opening Taiwan to tourists from China through direct transportation links is also included in his policy. "Not only entrepreneurs but also farmers hope for direct flights, because the latter can sell their fruit in China," Ma argued. "This is intended not to encourage Taiwanese investors to flow into China, but to assist them in making profits there and bringing them back to Taiwan." However, Ma said that the local agricultural marketplace would not be open to Chinese imports, and China's blue-collar workers would not be allowed to work in Taiwan.

Hsieh said he approved of direct flights, but only on a charter-flight basis. He also proclaimed that an evaluation system designed to manage companies' investments in China is a must, adding that anything to do with national defense and agriculture must be strictly monitored. Hsieh pointed out that he is not against Taiwanese businessmen having closer ties with China, but every case should be handled on an individual basis.