Service industry in need of stimulus
Updated: 2009-07-10 07:41
(HK Edition)
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TAIPEI: The Executive Yuan yesterday approved a service industry development program aimed at boosting the industry's gross domestic product (GDP) to NT$11 trillion ($333.3 billion) by 2012 and its exports to 1.2 percent of the global total the same year.
The Council for Economic Planning and Development (CEPD), which drafted the plan, said in a report that due to lack of stimulation, Taiwan's service industry is import-centered rather than export-oriented.
Last year, the export value of the industry was only $33.8 billion, which accounted for 0.9 percent of the global total and ranked 28th in the world.
In 2007, the sector's R&D spending was less than 0.2 percent of GDP, far lower than the 7 percent recorded in the manufacturing sector, the CEPD said. The council added that resources should be invested to boost the service sector's international competitiveness. That, according to the report, means improved R&D and innovation performance, creating new platforms for differentiated services, strengthened talent recruitment and nurturance of development potential.
The CEPD said the government should guide domestic service providers toward tapping overseas markets and help them overcome barriers to market access by lifting and easing regulations and restrictions.
Meanwhile, the CEPD will study ways to encourage operators in the industry to develop their own brand names through a "Branding Taiwan" program and include the service industry in a business guidance project.
To enhance industrial development, the CEPD has come up with development strategies for several key emerging industries. A CEPD tourism development plan aims to generate NT$550 billion in tourism revenue, creating 400,000 jobs and attracting NT$200 billion in private investment by the end of 2012.
Other initiatives include a health care promotion project aimed at providing 260,000 jobs and creating NT$346.4 billion in business turnover by 2012. Its cultural and creative industry development plan targets NT$1 trillion in turnover and the creation of 200,000 jobs. The refined agriculture promotion program aims to generate NT$32.6 billion in revenue and 6,000 jobs.
Additional proposals include a plan to speed up logistics service development, with a target of NT$1.162 trillion in revenue and 222,000 jobs by 2012. The telecommunication industry development plan aims to generate NT$390 billion in turnover, attracting NT$21.3 billion in private investment and providing 41,000 jobs.
China Daily/CNA
(HK Edition 07/10/2009 page2)