Chairman Chang and Board Member Mr. Wang of the General Chamber of Commerce, Ambassador Santana, Representative Ikeda, Director MacIntosh, Representative Palma, Director Feer, Recipients of the 2007 Golden Merchant Awards, Distinguished Guests:
Good morning and greetings to each of you!
I am most delighted to have this opportunity to meet with the recipients and outstanding Taiwan and foreign businessmen and trade representatives. First of all, I would like to commend you and thank you for your long-term support of Taiwan and congratulate you for your outstanding achievements. I also look forward to the continued improvement of Taiwan's business environment with all our concerted efforts and dedication.
Some have criticized the government by saying that: "in the past 7 years, we have made no progress here in Taiwan." I think our friends here today from the business community and the trade representatives can bear witness to this untruthful argument. We welcome criticism, but not those ungrounded and so far-fetched.
A few decades ago, we had the "ten major construction projects" that sustained Taiwan through the two oil crises. Similarly, today, I'd like to point out that in the past 7 years and plus, this government has engaged itself in invigorating the economy and promoting well-being of our people, which can be best illustrated with the "15 innovations". These refer to the construction or measures previously unseen before I became the President of this country on May 20, 2000. Each innovation also documented the fruits of the hard work of the people of Taiwan under severe competition and rather harsh environment. We have worked to ensure our nation's survival and sustainable development.
The first item on the innovation list is the Taiwan High Speed Rail. With a total investment of more than NTD.500 billion, its construction only began after I became president and it came into full operation on January 1 of this year, combining the west coast of Taiwan into a "one-day living zone", thus revolutionize Taiwan's land utilization and development.
The second one is the Hsueh-shan Tunnel. It was a mission impossible which, at certain points, was about to be given up. But with the austere leadership of the Executive Yuan, the workers work three-shift round the clock every day. And finally, we saw its full completion on September 16 in 2004. Later the Taipei-I-lan Highway opened on June 16, 2005, incorporating the county of I-lan into the Taipei Metropolis.
Third, Taipei 101. Before the Asian financial crisis, three cities in this region—Shanghai, Hong Kong and Taipei have made the attempt to construct the world's tallest building. Yet after the Asian financial crisis, we are the only one left to meet this challenge. I am most honored to say that I was instrumental in hastening the birth of this magnificent building, which has now become the new landmark of Taipei and also the symbol of progress and the pride and joy of Taiwan.
Fourth, Central Taiwan Science Park and the TFT-LCD display panels industry. With full dedication of the government, it only took 10 months and 5 days to complete the construction of this science park and see the groundbreaking ceremony of the first company, AU Optronics, set up there. One could say that the display panels industry started from ground zero. And today it is already No. 1 in the world.
Fifth, tax reform. Cut the Land Appreciation Tax by half to boost the real estate market and to improve the financial environment. Implement the "Minimum Tax Rate" to effectively abridge the gap between the rich and the poor so as to realize social equity and justice.
Sixth, to reform the state-run enterprises. Take the renewal and remaking of Taiwan Shipbuilding Corp. for example, back in 2000, it was still called the China Shipbuilding Corp. Back then, it had an annual deficit of NTD.6.7 billion. In 2001, we saw a further loss of 3.1 billion. Therefore, the Ministry of Economic Affairs decided to launch the "renewal and remaking" plan, downsizing the employees by half and also cutting the salary by 35% of those who stayed on. Within one year after the measure was taken, in 2002, we saw a positive turn and there was no longer any deficit. Last year, there was a profit of 1.5 billion.
Seventh, financial reform. We have met our goal of "258" ahead of time, that is: in two years time, we lowered the bad loan ration to under 5% and increased the BIS ration to 8%. Moreover, we have written off enormous amount of bad loans, from 11.4% for local banks, to 2.16% in September this year, totaled at 1 trillion 900 some billion of bad loan. The government had also publicized the list of companies or individuals with notorious bad debts. These efforts have helped improve the overall financial environment.
Eighth: Vibrant export. In September of last year (2006), the value of monthly export exceeded 20 billion USD, setting a new record. This September we saw another historic high, with the export value of 22 billion USD. Vibrant export continues to provide the biggest impetus for Taiwan's economic growth.
Ninth: Prosperous Stock Market: When I was sworn in as President in May 2000, the Taiex index sat at 8500 points, two days ago the figure was 9809 points, setting a record-high for the past seven years and a half. If the international stock markets remain steady, then we expect to see the Taiex index breaks the 10,000 points benchmark very soon. If foreign investors have such confidence in our stock markets, we must also have great faith in Taiwan.
Tenth, Cross-strait exchange: The "mini-three-links" (MTL) between China and the islands of Kinmen and Matsu officially began operation on January 1, 2001, and in March 2007, were expanded to include Penghu. In 2003, indirect charter flights to and from China for the Lunar New Year were launched. In 2005, two-way, nonstop charter flights were implemented. In June 2006, four types of specialized charter flights, namely specialized cargo charter flights, holiday passenger charter flights, charter flights for emergency medical treatment, and special humanitarian charter flights, were implemented. That means charter flights are now in service for almost one fifth of the year.
No. 11: Control and management of the Keelung River: Following the completion of the Keelung River Yuanshanzih Flood Diversion Tunnel and the comprehensive control and management of the river, nearby areas will no longer face the threat of flooding. Moreover, the flood-prevention levels in Taipei City and Taipei County have been harmonized so that both the City and County are now well-prepared to withstand a 200-year flood.
No. 12, Improving the quality of water in Kaohsiung: On August 5, 2000, I promised the people of Kaohsiung that the government would improve the quality and quantity of water available in the Kaohsiung area within three years. This promise was fulfilled on November 23, 2003, and the city's residents now have access to clean water like the residents of other cities across the nation.
Thirteenth: the Kaohsiung Rapid Transit (KRT): Until now, Taipei has been the only city in Taiwan to benefit from a mass rapid transit (MRT) system. Beginning in December this year, however, people in the city of Kaohsiung will also be able to enjoy a comfortable and convenient MRT service. Although the Kaohsiung Rapid Transit will be the second MRT system in Taiwan, it will be the country's first successful BOT (build-operate-transfer) mass rapid transit project. If it had been purely a government project, the KRT would have needed a budget of NT$195.2 billion. But with the private sector undertaking the construction, the government only had to spend NT$150.9 billion, which translated into a saving of NT$45 billion.
No. 14: the new Labor pension scheme: In the past, over 80 percent of retired laborers had no pension at all. But after the launch of the new labor pension scheme on July1, 2005, we have been able to ensure that every retired laborer can have pensions. Furthermore, we established the Labor Pension Fund Supervisory Commission on July 2 this year to seek greater benefits for our laborers through investment.
No. 15: the National Pension Program: Before 2000, only a handful of counties or cities in Taiwan gave the elderly a monthly old-age pension of NT$3,000 per person every month. After the transfer of power between political parties, the government has made old-age pensions a national program. This year, we completed the legislation of the National Pension Act. The National Pension Program will be officially launched on October 1 next year, which will ensure basic care for all elderly people.
Seven and a half years ago, it would be difficult to imagine that all these 15 innovations can be implemented. The previous government had talked about the labor pension scheme, the National Pension Program, and the improvement of water quality in Kaohsiung for over 10 years, but had done nothing to carry out these projects. It is useless to just talk about these projects. It takes firm determination and capacity to implement them. The Hsuehshan Tunnel, the improvement of the Keelung River, and financial reform were headaching problems left by previous government leaders. But these problems have been solved under my administration. The previous ruling party members may refuse to express appreciation for my government's hard work, but they should not take the liberty to wrongly accuse my government of just spinning at the same place and of making no progress.
These fifteen innovations, plus reforms in other areas, are like puzzles that form the picture of a "happy Taiwan." We promised our people to achieve a "happy Taiwan," and we need to attain this by the end of my term in office. Although we still have lots of improvements to make and we need to work harder, our accomplishments cannot be denied simply for the sake of electoral competitions. The achievements jointly made by our people should not fail to be recognized just because of the differences between the blue and green camps and divergent ideologies.
"I think, therefore, I am" should not be distorted into "I negate and I disparage, therefore I am." By all out negating the efforts made by others won't make one seem greater. Some have hoped to hold Taiwan still on the day of March 18, 2000 (the presidential election day). But they ended up stopping themselves only, making no progress.
I have spent a lengthy amount of time trying to share with you our progress and achievements and I hope to solicit your continued support, comments and observations.
In closing, let me congratulate you once again and thank you all for your remarkable contribution to the economic development and progress of Taiwan. I wish all you good health and every success. Thank you very much.