President Ma Ying-jeou met with Hiroshi Mikitani, Chairman and CEO of Japan's Rakuten, Inc., on the afternoon of May 20 at the Presidential Office and welcomed Mr. Mikitani on his visit to Taiwan.
The president noted that Taiwan Rakuten Ichiba has been quite a success since its establishment last year, and added that he is quite impressed that the growth of the company has not been affected despite the economic downturn caused by the worldwide financial tsunami.
President Ma said oil prices were on the rise and inflationary pressure was gaining steam when he took office last year. Measures were adopted immediately, and consumer prices began to show signs of stabilizing in July. However, after oil prices began to fall, Taiwan started to face challenges associated with the global financial tsunami, leading to serious contractions in Taiwan's export markets. Since exports comprise 64% of Taiwan's GDP, weakness in export markets caused a serious blow to Taiwan's economy, President Ma remarked.
The president furthermore said that given the size of Taiwan's domestic market, the nation has no choice but to remain an export-driven economy. Therefore, the government's external trade strategy is to diversify and broaden Taiwan's export markets. The president pointed to trade with mainland China, saying that the other side of the Taiwan Strait not only can serve as a manufacturing base for Taiwan enterprises, but also is a market for Taiwan products. President Ma said the importance of diversifying markets is one of the lessons learned from the financial tsunami.
Chairman Mikitani said that he is honored that President Ma took time out of his busy schedule on the anniversary of his inauguration to meet with him. He added that while Japan is presently facing steep economic challenges, Internet-based firms continue to exhibit growth. He said Rakuten's market has grown 30% in comparison with last year, demonstrating the sector's ability to withstand the impact of the financial tsunami. Chairman Mikitani said his firm will continue to cooperate with Taiwan companies in the future and expressed his desire to make a contribution to Taiwan's economic development.