Taiwan’s government unveils new stimulus effort
Exports from the Asian country expected to fall by 7.7 per cent next year
TAIPEI, Taiwan—Taiwan’s government has unveiled the first stage of a new stimulus effort to help the island’s export-driven economy grow up to four per cent next year amid global uncertainty.
The government said it will expand investment in public projects and help industries create new jobs.
Weak demand from Europe and the U.S. is casting a shadow over Taiwan’s export-driven economy. The government recently forecast growth in exports to fall to 5.3 per cent next year from 13 per cent this year.
Among Taiwan’s mainstay industries, computer and semiconductor makers are holding up as a slowdown in PC sales has been partially offset by rising sales of tablet computers and smartphones. Leading makers, such as Taiwan Semiconductor Manufacturing Company, are expanding or building new factories.
But several other industries are being hit by oversupply and sharply falling prices.
The government says it will rescue the LED light industry from the current slump by installing 320,000 energy-saving LED street lights across the island. It will also subsidize purchases of energy-saving home appliances, he said.
The memory chip and flat panel screen industries are also facing a gloomy future as their top competitors in South Korea are investing heavily to advance their technologies.
Taiwanese makers of dynamic random-access memory chips are expected to register a combined loss of more than $3.3 billion this year.