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Taiwanese experts urge companies to lower cost to boost economy
Publication Date : 31-07-2012
With Taiwan's exports showing sluggishness, experts offered their views yesterday on how to improve the economy amid declining external trade.
Sun Ming-teh, forecaster with the Taiwan Institute of Economic Research (TIER), said the global economy has been hit hard by the European debt crisis, which is expected to drag on.
Yet he said low-priced products are popular internationally, especially those made in mainland China.
He pointed out in the first half, exports to China from Japan, Korea and Taiwan showed signs of stagnation. Helping companies lower cost and raise competitiveness is what needs to be done right now, he said.
Yang Chia-yen, a unit chief with TIER, meanwhile said government efforts to help exporters may be limited at this point.
He said the European debt crisis has ravaged major markets such as the United States and China, where consumption has turned conservative.
Instead, increasing domestic demand would be a more feasible way to save the economy, which may benefit from increased consumption and private investment, Yang said.
To increase investment, the government must improve the island's investment climate and make it as attractive as that of Korea, China and Southeast Asia, which an increase number of investors have migrated to, he said.
“Taiwan must develop an investment environment that lures foreign businesspeople,” he said.
Taiwan's business environment even finds detractors locally, who often complain about the island's labour shortage and difficulty with which land is acquired, Sun said.