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To sustain Taiwan’s competitiveness, the Cabinet is accelerating the development of strategic industries and emerging technologies, the president said
President William Lai (賴清德) yesterday said Taiwan needed many industries across its economy to become a “chain of guardian mountains” to broaden the foundation of the nation’s economic strength. Leading companies expanding overseas should help their supply chains establish deeper roots in Taiwan, Lai said in his Double Ten National Day address. “We cannot rely on just one guardian mountain; we must ensure that all sectors join together to form a chain of guardian mountains,” Lai said.
President William Lai delivers a speech during Double Ten National Day yesterday in front of the Presidential Office Building in Taipei.
Photo: Ann Wang, Reuters
His statement appeared to refer to Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker and a pillar of Taiwan’s economy. The US, Japan and other countries have encouraged it to build factories abroad to bolster supply security and reduce reliance on Taiwan. Lai outlined government measures to support that development, highlighting Taiwan’s strong economic performance while warning of challenges from tariffs, energy issues and competition from Chinese supply chains.
Taiwan’s economy grew 14.15 percent in the first half of the year, he said. Full-year growth could exceed 11 percent, which would be the highest in 39 years, while per capita GDP was projected to reach US$45,332, almost double its 2016 level. The TAIEX has reached 49,000 points, making it the fourth-largest stock market by market capitalization, Lai said. Taiwan also placed fourth in the Institute for Management Development’s World Competitiveness Ranking this year, the country’s best performance to date, he said. To sustain Taiwan’s competitiveness, the Executive Yuan is accelerating the development of strategic industries and emerging technologies, Lai said, highlighting the government’s “Five Trusted Industry Sectors” — semiconductors, artificial intelligence (AI), defense, security and surveillance, and next-generation communications — alongside the three core technologies targeted by its 10 new AI infrastructure initiatives: silicon photonics, quantum computing and robotics. Technological advances should also benefit traditional industries, he added. Other priorities include critical minerals, biotechnology and healthcare, an Asian asset management hub, public infrastructure and urban renewal, cultural and creative industries, and developing tourism into a trillion-NT-dollar industry. A NT$100 billion (US$3.14 billion) program for micro, small and medium-sized enterprises would support their financing, workforce training, digital transformation, net zero upgrades and access to international distribution channels, Lai said. To address labor and talent shortages, the government would maintain Taiwanese workers as the primary workforce and supplement them with foreign workers, he said. Amendments to the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) would also expand opportunities for foreign professionals to come to and remain in Taiwan, and for foreign students to stay after graduation, he added. On energy, the government would pursue stable electricity supply, energy security and a net zero transition through renewable generation, storage, conservation and grid upgrades, Lai said. It would also assess different energy options based on scientific evidence, legal procedures and safety standards, he added. Lai outlined plans to toughen penalties for drug-impaired driving, saying that the government will step up drug enforcement, strengthen rehabilitation and education, trace drugs to their source, and introduce rapid saliva tests at roadside checks to identify drug-impaired drivers. Meanwhile, the Executive Yuan’s anti-fraud command center has become a permanent body, coordinating efforts to disrupt scams, from online advertising to the movement of money, he said. As for the declining birthrate, the government from next year plans to introduce a NT$5,000 monthly allowance for every child from birth until they reach 18, Lai said. The allowance would be accompanied by expanded childcare services, more family-friendly workplaces and housing assistance, he said. The Long-term Care 3.0 plan launched this year aims to bring medical and community services together so that older people can receive care in familiar surroundings, while easing the pressure on family caregivers, he added. On housing, the government will continue its program supporting 1 million renter households by expanding supply and providing rental assistance, Lai said. A larger proportion of social housing would be reserved for newlyweds and families with young children, and the government would raise the amount they can borrow under the Preferential Housing Loans for the Youth 3.0 program, he said. The president also pledged to advance gender equality, saying no one should be excluded because of gender, ethnicity, background or identity.