Chiu Reports on Current Economy and Government Policies

Chiu Reports on Current Economy and Government Policies

Source: KMT

July 16, 2008

On July 16, Vice Premier Paul C.H. Chiu presented a report entitled “Commodity Prices, the Economy, and Government Policies” to the KMT Central Standing Committee, explaining how the KMT government would handle high fuel prices, inflation, and issues related to an economic slowdown.

In order to respond to the serious domestic and international economic downturn, and to achieve the goals of stabilizing commodity prices and creating healthy economic development, Vice Premier Chiu said that the KMT administration would carry out various measures, including stabilizing commodity prices, pushing forward economic growth, advancing normalization of cross-Strait relations, and speeding up financial and taxation reforms. The aforementioned substantive measures have been adopted and are currently being implemented, added Chiu.

I. “Stabilization Plans for Commodity Prices” and relevant measures
(1) Foreign exchange rates policy, monetary policy, and consumer goods policy.
(2) Fiscal policy and other comprehensive measures:
(a) Fiscal policy
(b) Subsidies
(c) Policy on energy-saving and reduction of carbon emissions, and developing alternative energy resources

II. Pushing forward economic growth and normalization of cross-Strait relations
(1) Direct cross-Strait charter flights during weekends and the opening of Taiwan to Mainland tourists.
(2) Expanding public and private-sector investments.

III. Financial Regulatory Reform

IV. Taxation Reform

Many domestic institutions were still optimistic about future economic growth, and they slightly raised their projections on the economic growth rates for this year. Figures among leading research institutions ranged between 4.30% and 4.78%.

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