TAIPEI — Taiwan will switch its economic focus to the domestic market to help fuel job growth, Council for Economic Planning and Development (CEPD) Minister Christina Liu said yesterday.
Liu said the backbone of the country’s economy has long been exports. However, she went on, exporters tend to establish presences in foreign markets and hire staff there, which contributes little to job growth in Taiwan.
Taiwan’s economic structure needs to be changed if the domestic labor market is to grow, Liu said during an investment forum held by Academia Sinica that same day.
She said Taiwan’s domestic demand contributed to nearly 80 percent of the 10.72 percent economic growth in the country last year, while 20 percent of the growth came from exports.
Taiwan should strive to grow domestic demand in the face of continuing sluggish demand from the European and U.S. markets, she said.
While some might question the wisdom of this, given the tiny size of Taiwan’s market, Liu said that China and other parts of Asia could also be tapped more effectively.
Taiwan needs to focus more on job growth, she said, adding that when an investment is made, the focus should be on how many jobs it will create instead of how big the investment amount is.