The National Development Council (NDC) of Taiwan has announced plans to host a series of breakfast meetings aimed at gathering insights from small and medium-sized enterprises (SMEs) and the traditional economy sector. This initiative underscores the NDC’s commitment to understanding the unique needs of these crucial segments of Taiwan’s economy.
Listening to the Needs of SMEs and Traditional Industries
During a press conference on Monday, NDC chief Liu Chin-ching emphasized the importance of direct dialogue with business leaders. “While we have established strong partnerships with major corporations like Taiwan Semiconductor Manufacturing Co. (TSMC), it is essential for us to also engage with SMEs and traditional industries to comprehend their operational challenges and support requirements,” he stated.
Economic Context
Recent economic data from the Directorate General of Budget, Accounting and Statistics (DGBAS) indicated that Taiwan’s gross domestic product (GDP) grew by 3.97% in the third quarter, surpassing initial forecasts. This growth is primarily driven by robust demand for emerging technologies, including artificial intelligence. However, the recovery remains uneven, with the old economy sector lagging behind.
Economic Growth Estimates
| Quarter | GDP Growth Rate | Forecast for Q4 | Projected 2024 Growth |
|---|---|---|---|
| Q3 2024 | 3.97% | 1.12% | 4.1% |
| Initial Forecast | 3.21% | 3.9% |
Importance of SMEs in Taiwan’s Economy
According to a 2023 white paper by the Small and Medium Enterprise and Startup Administration, Taiwan is home to over 1.63 million SMEs, representing more than 98% of all businesses in the country. By law, an SME is defined as a company with paid-in capital under NT$100 million (approximately US$3.13 million), a stark contrast to TSMC’s substantial NT$259.33 billion capital.
Challenges Facing SMEs and Traditional Industries
Liu pointed out that the NDC aims to address the specific needs of SMEs and traditional sectors. He noted that the government’s focus on high-tech industries should not overshadow the support needed by these foundational sectors. “Understanding their challenges will enable the government to design and implement more effective economic projects,” Liu remarked.
Meeting Structure and Goals
The breakfast meetings will feature small groups, with seven representatives from SMEs and traditional industries invited to facilitate in-depth discussions. Liu, along with officials from the Ministry of Economic Affairs, will personally attend each session.
FAQs
1. What is the purpose of the NDC’s breakfast meetings?
The meetings aim to gather insights from SMEs and traditional industries to better understand their needs and challenges.
2. How many SMEs are there in Taiwan?
There are over 1.63 million SMEs in Taiwan, accounting for more than 98% of the country’s businesses.
3. What recent economic data was released?
The DGBAS reported a GDP growth of 3.97% for Q3 2024, with an expectation of 4.1% growth for the year.
4. Why is there a focus on SMEs and traditional sectors?
These sectors are critical to Taiwan’s economy and have been identified as lagging behind in the current recovery, necessitating targeted support.
5. Who will attend the breakfast meetings?
The meetings will include NDC chief Liu Chin-ching and representatives from the Ministry of Economic Affairs, along with selected SME and traditional industry representatives.
Conclusion
The NDC’s initiative to engage directly with SMEs and traditional industries marks a proactive approach to economic planning in Taiwan. By facilitating dialogue, the government aims to bridge the gap between high-tech advancements and the needs of foundational sectors, ensuring a balanced and inclusive economic growth.
