Taipei, Oct. 20 (CNA) President Chan Shui-bian said Wednesday that Taiwan can still achieve a 6 percent economic growth for this year despite soaring crude oil prices and global terrorist activities.
The president made the remarks when he presided over a meeting of his economic advisory group, during which the economic experts discussed issues related to oil prices, national health insurance, financial reforms and the land value increment tax.
Chen said that according to the International Monetary Fund's latest forecast, global economic growth could reach 5 percent for this year, or the highest figure in more than two decades.
Buoyed by the world economic recovery and the efforts of the Taiwan people, Taiwan's economy has performed well this year, the president said, adding that Taiwan's imports and exports have maintained a growth at over 20 percent and that private investment and consumption have also steadily increased.
He noted that surging oil prices and terrorist activities in the world will affect the continued growth of the world economy, but "as long as we put in more effort, it is still possible for us to achieve growth of 6 percent for this year."
The economic advisory group to the president also endorsed the goals of the nation's second-stage financial reforms proposed by the Council for Economic Planning and Development (CEPD).
According to CEPD proposed goals, by the end of 2005, there should be at least one "representative" company in each financial field, such as asset management, banking, insurance and securities.
Moreover, the number of financial institutions in which the government have stakes will be cut by half to six institutions. By the end of 2006, financial holding companies will be cut by half from the present 14 companies, and at least one financial institution will be run by foreign-owned companies or be listed in other countries.
The president instructed related government agencies to implement the conclusions so as to upgrade the efficiency and liberalization of Taiwan's financial market.
Chen also said that the measure of halving of the land value increment tax, which was put into effect in February 2002, has had good results as seen by brisk real estate transactions.
He expressed the hope that the Executive Yuan will actively promote the revised land tax law proposed by the Ministry of Finance so as to further cut the land value increment tax. He added that if the revised law can't clear the legislature by the end of this year, the Executive Yuan should still extend the measure of halving the land value increment tax for another year.