Taiwan's main policies and advantages for attracting global investment

1. Why Taiwan?
Taiwan possesses extremely strong soft powers than can hardly be surpassed by other countries. These soft powers include:
－Technology, innovation, flexibility, diligence, global perspective, understanding of mainland China, knowledge and experience in global positioning, and a firm and prolific industrial base.
－On the cultural side, Taiwan has a diverse and open society, a democracy to be proud of, high standards of business management, education, and accounting, notable capabilities in design, R&D, and marketing, a strong and reliable legal system, friendly and courteous people, and a safe and convenient living environment.

2. Why Now？
In the past three years, the government’s efforts to carry out key policies and attract investment from around the world have made the Taiwan of today very different from the Taiwan of three years ago. Highlights of these policies include:
－The opening of direct cross-strait flights in July 2008
－Opening Taiwan to mainland Chinese tourists in July 2008
－Cutting estate and gift taxes from a top 50% to a flat 10% in January 2009
－Opening Taiwan to investment from mainland China in July 2009
－Reducing business income tax from 25% to 17% in May 2010
－Signing ECFA in June 2010
－Possession of abundant domestic capital

II. Ideas behind the policies

1. Pursuing steady, balanced, and sustainable economic development
We seek sustainable economic development that includes five equally important overall objectives. In addition to pursuing economic growth, it should also include lowering the unemployment rate, stabilizing prices, reducing the wealth gap, and sustainably developing the environment.

2. Sparking the twin engines of domestic demand and export, so that everyone can share the fruits of economic development
We aim to encourage more investment from the private sector, to create more job opportunities and spur wage growth, and thereby raise the purchasing power of the whole population, for the realization of our policy ideal of sharing the fruits of economic growth among all of the people.

III. Economic Performance

1. The economy grew 10.88% in 2010, the highest growth rate in 24 years.

2. The Twin Engines:

In 2010, Taiwan's economy was powered by the twin engines of domestic demand and export. This was a change from the past model of growth driven predominantly by net external demand.

(1) Real growth of private investment was 32.51%, the highest in 45 years.

(3) In 2010, domestic demand contributed 78% of the economic growth, and export contributed 22%.

3. Employment Stimulus of Investment Expansion:

The average number of Taiwanese employed in 2010 increased to 10,493,000, a historic record.

4. Record-Breaking Wage Growth:

The average monthly wage for Taiwanese employees in 2010 was NT$44,430, also the highest in history.

5. The IMF’s positive view of Taiwan's economic potential:

The IMF has forecast that Taiwan will have the highest growth rate among Asia’s Four Little Dragons every year from 2011 to 2015.

IV. Focal Undertakings

－Carrying out the “Invest in Taiwan” global investment promotion drive (see website at http://www.cepd.gov.tw/InvestTW/)
－Implementing the "Homes for Industries, Industries for Homes" plan (see web page at http://www.cepd.gov.tw/m1.aspx?sNo=0014868)