Investment Climate Deteriorating, President Tsai Remains Oblivious

  Investment Climate Deteriorating, President Tsai Remains Oblivious

United Daily News Editorial (Taipei, Taiwan)

August 29, 2017

 Translation of an Excerpt

Last December, President Tsai delivered her year-end address, proclaiming that her administration would focus on four areas the following year, "revitalizing Taiwan's economy with every effort. This is the most important mission in 2017." Now, two-thirds of 2017 has elapsed, and Taiwan’s economy remains in the doldrums; furthermore, the depressed atmosphere has had a tendency to deteriorate in view of power shortages, “one mandatory holiday, one flexible day-off,” and other disturbances.

In the stagnant atmospherics with decreasing foreign investments and the suspension of domestic investments, President Tsai pins her hopes on the idea that the forward-looking plan will lead Taiwan's economy to make a breakthrough. However, this plan was hastily made, with vast amounts of money spread on minor items; whether this prescription will be able to rescue the stagnant economy in Taiwan is one of the big questions. Enterprises believe that the forward-looking plan has a very low linkage with the existing domestic industry, whether it will successfully play the role of a locomotive that will stimulate domestic investment is another big question.

The root of the current stagnant economy in Taiwan lies in the lack of private sector investments; relying only on the forward-looking plan will not be adequate to inject vitality that would bring about long-lasting economic growth. If the government remains oblivious to the lack of private sector investments, we are afraid, it is inevitable that President Tsai’s cheque to revitalize the economy will bounce ahead of schedule.

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