NDC to meet with SMEs, old economy sector to understand needs better

Taipei, Nov. 4 (CNA) The National Development Council (NDC), Taiwan's leading economic planning agency, said Monday it will hold breakfast meetings with the business sector to better understand the support needed by small and medium-sized enterprises (SMEs) and the old economy sector.

NDC chief Liu Chin-ching (劉鏡清) told reporters that the government already cooperates closely with Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker.

However, the NDC needs to listen more closely to SMEs and the old economy sector to understand how it can help them boost operations, he said.

On Oct. 31, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported its advance estimate that Taiwan's gross domestic product (GDP) grew 3.97 percent in the third quarter. This was higher than an August forecast of 3.21 percent.

The DGBAS said if GDP grows 1.12 percent in the fourth quarter as anticipated, Taiwan's 2024 economic growth is expected to hit 4.1 percent, surpassing the agency's previous forecast of 3.9 percent.

This follows a robust demand for emerging technologies, including artificial intelligence applications, it said.

However, the DGBAS acknowledged that the local economic recovery has been uneven, with the old economy sector lagging behind, indicating that not everyone would share equally in the benefits of a growing economy.

According to a 2023 white paper released by the Small and Medium Enterprise and Startup Administration, the number of SMEs in Taiwan surpassed 1.63 million in 2022, accounting for more than 98 percent of businesses in the country.

Per Taiwanese law, an SME has paid-in capital under NT$100 million (US$3.13 million), far below the giant TSMC, which has NT$259.33 billion of paid-in capital.

"The government should pay more attention to what the old economy sector and SMEs need because it would help the government plan and execute economic projects more effectively," Liu said. "So, the NDC is planning breakfast meetings to collect opinions."

Liu said that he and his colleagues have been visiting parts of Taiwan outside Taipei and found different opinions regarding business, which suggest the meetings will be helpful for the government to build up its understanding of different industries and what they need.

According to the NDC plan, the agency will invite seven representatives from SEMs and traditional industries to each breakfast meeting. This small number is intended to allow for in-depth discussions.

The NDC said Liu will attend each breakfast meeting and that officials from the Ministry of Economic Affairs will join him.