New Year's Day Message
Through Reform and Hard Work, Taiwan Will Rise Again
Ma Ying-jeou
President
Republic of China
January 1, 2010
Vice President Siew, Presidents of the Five Yuans, Ministers, Distinguished Guests, Fellow Countrymen:
Happy New Year!
Today we begin the 99th year of the Republic of China. Over the past year, we have experienced the impacts of a financial tsunami—the economy saw a deep recession and the unemployment rate climbed steeply. We also suffered the effects of the August 8 Flood in which many precious lives and a great deal of property were lost. Nevertheless, through the cooperation and hard work of the central and local governments and the people, we have overcome this myriad of difficulties. At present, Taiwan's economy is on its way to recovery, and reconstruction of disaster areas is also well under way. There certainly have been shortcomings in the government's work this past year, resulting in complaints. To improve, we have already engaged in a thorough review process and will work hard in the new year.
I. Taking advantage of economic recovery and promoting major investments
A little over a month ago, we were pleased to see that the economic monitoring indicator turned green, and last week it further turned to yellow/red. Export orders have gradually returned to their normal levels; the number of employees on involuntary unpaid leave in Hsinchu Science Park, Central Taiwan Science Park and Southern Taiwan Science Park declined from a peak of over 132,000 people last January to less than 1,000 at the end of 2009; the unemployment rate has fallen for two consecutive months; and the economic growth rate this year is expected to reach 4.39 percent.
This year will be crucial for the recovery of Taiwan's economy. To maintain steady economic growth, domestically we must be proactive. We have to improve the economic system, encourage more far-reaching industrial innovation, diversify the industrial structure, spur an upgrading of traditional industries, and increase the added value of the service industry. Internationally, we must grasp hold of current trends in the global economy, participate in the regional economic integration of East Asia, and explore and develop new markets.
However, in the course of promoting economic growth, we also need to monitor the distribution of wealth, increase employment opportunities, and help the disadvantaged in society. I understand that currently in some counties and cities, small and medium-sized businesses that rely on domestic sales, as well as certain shops and restaurants, have yet to see a recovery and are still struggling. Therefore, although the number of unemployed has fallen, it still is higher than in previous years. To relieve the burden of unemployment, the government has decided to continue to implement various measures to boost employment this year. It is estimated that over 100,000 jobs can be created, and college graduates who have just entered the job market will also benefit.
This year, the government plans to invest around NT$328.5 billion in major public works projects. Such projects include the construction of the Taiwan Taoyuan International Airport Access MRT System, the widening of the Wugu to Yangmei section of the Sun Yat-sen Freeway, the Taichung Metropolitan Area Railway Elevation Project, the electrification and double-tracking project for Taiwan Railways' Hualien-Taitung Line, and the construction of the Kaohsiung underground railway. The fourth expansion phase at Central Taiwan Science Park—the Erlin Science Park—began last week, and will create over 12,000 job opportunities in the next five years. Private-sector investment is estimated to reach NT$1,718.8 billion this year. If the Act for Industrial Innovation is passed and promulgated as planned, I believe that this will attract more private investment, create more jobs and deliver a powerful boost to Taiwan's economic growth.
We are aware that in the past, investment was insufficient owing to cross-strait tensions, unclear policies and government inefficiency. But circumstances have changed of late. The cross-strait situation has stabilized, and economic cooperation between the two sides has expanded. Moreover, the government is determined to speed the pace of efforts to ease existing restrictions and create a positive investment environment, thereby removing barriers present in regulations, procedures, taxation, transportation and the living environment. We will also bring Taiwan's strengths into full play by promoting six emerging industries. The tourism industry, for example, is expected to kick-start the job market, and the renewable energy industry will help reduce carbon emissions and energy use.
My administration has been promoting a government-restructuring bill to improve administrative efficiency and has approved the formation of more special municipalities to help local governments stay competitive. These systemic changes at different levels of government were pursued not for the sake of winning the next election, but for the welfare of the next generation. We firmly believe that if we set up an open, business-friendly environment, Taiwan will be able to exert the full potential of its key position in the East Asian economy. Here, I would like to advertise to the world that now is the time to invest in Taiwan!
II. Adjusting our global deployment strategy in response to ASEAN Plus One
My fellow citizens, as the world economy rebounds from rock bottom this year, international competition will grow more intense. Taiwan needs to be alert to such changes and adjust its global deployment strategy accordingly. Starting this year, as the free trade zone involving the Association of Southeast Asian Nations (ASEAN) and mainland China has come into effect, affected goods and services from the ten ASEAN member states can enter mainland China tariff-free. However, Taiwan's competing exports to the mainland are still subject to high import taxes, thus placing us at a disadvantage. We cannot simply sit by and watch this happen.
This is why the government is pushing to sign an economic cooperation framework agreement (ECFA) with mainland China. We hope to see an "early harvest" list of items eligible for lower tariffs included in the ECFA to help us maintain our export competitiveness, avoid being marginalized in our export markets, attract new foreign investment, stimulate Taiwan's economic growth and boost employment. And, concerning the industries and workers most likely to be harmed by the signing of the ECFA, we will draw up relief measures to invest NT$95 billion (US$2.85 billion) over the next 10 years into providing needed guidance and assistance. At the same time, we must stand firm in not allowing the import of more agricultural items from mainland China, and in forbidding mainland Chinese laborers to work in Taiwan.
The trend toward economic integration in Asia is clearly evident, and proceeding at a rapid pace. Regional trade accounts for over 50 percent of Asian nations' total trade, and now outweighs trade with markets outside the region. There were only three free trade agreements (FTA) between nations in the region in 2000, a figure which grew about 19-fold to 58 in 2009. North Korea and Taiwan are the only nations that have not participated in the integration process. Facing such a situation, Taiwan must not be marginalized, but make the most of opportunities presented by regional cooperation to expand our market presence. With the ECFA as our starting point, we will fight for a fair international environment to ensure that our enterprises are able to compete on equitable terms. In addition, we will actively pursue FTAs with our other major trading partners. Only through such linkages can we accelerate our involvement in East Asian regional economic integration and remain competitive.
III. Giving due attention to climate change, taking action to reduce carbon emissions and energy use
Global climate change is another challenge that Taiwan must face. The issue of reducing carbon dioxide emissions was given unprecedented attention at the recent climate change conference in Copenhagen. As a member of the global village, we welcome this development. We have set the reduction of CO2 emissions as a key national development goal. When running for president two years ago, I advocated that Taiwan's CO2 emissions be kept at the level of 2008 between 2016 and 2020, that they be reduced to the level of 2000 by 2025, and that they be cut to half the level of 2000 in 2050. This has now become government policy.
Saving energy and cutting CO2 emissions are part of a movement that stands to benefit everyone; they are elements of a better lifestyle. We should all incorporate them into our daily lives. We have already seen the results of the measure the government implemented to give discounts to those who reduce their electricity use. From the program's inception in July 2008 to the end of December 2009, we saved a total of roughly 6.3 terawatt-hours of electricity, equivalent to two years' worth of household electricity consumption by the 1.87 million residents of Tainan City and Tainan County. As a result, 4.04 million fewer metric tons of CO2 were released into the atmosphere, an amount equal to what would be absorbed in the course of a full year by 10,919 of Taipei City's 26-hectare Da-an Forest Park. In 2008, Taiwan's CO2 emissions fell by 4.4 percent over the previous year, dropping to the level of 2005. In that same year, energy use per NT$1,000 of GDP fell by 3.6 percent year-on-year, meaning that energy-use efficiency has been raised, reversing a persistent trend that had existed prior to my taking office in 2008.
Although these achievements are but a small step toward our goal, the message they send is encouraging: As long as we work hard, we can all make a contribution to the environment and to the future of all humanity. The government will set up incentive programs, including plans for carbon trading and tax measures, and will help enterprises retool their facilities so as to reduce CO2 emissions. Further, the government will throw its weight behind "green" industries to turn Taiwan into a major producer of energy technologies while creating more job opportunities and enhancing our global competitiveness.
Global climate change has already had a detrimental effect on Taiwan. In August 2009, southern Taiwan was devastated by the August 8 Flood. This year, the south is facing a severe drought. We must thoroughly review our development and use of water resources. The government has already enacted contingency measures to alleviate the drought. However, conserving water cannot merely be a slogan, it must become a comprehensive, nationwide movement that involves all the people so that we can get through this period of water shortage.
IV. Working on a climate of peace and strengthening cross-strait contact
My fellow citizens, the people of the two sides of the Taiwan Strait are all of Chinese ethnicity. We share a common heritage, language, history and culture. But the two sides have been separately governed for 60 years now. In that time, each side has operated under different political, economic and social systems. As our ways of life and experiences are vastly different, we require a certain period of time in which to connect and gain a better understanding of each other. At present, making political choices hastily, whether they be for immediate unification or immediate independence, would cause serious confrontation and tumult. No one would be the better-off, and neighboring nations would all be affected.
And so, for cross-strait relations, I have always called for adherence to the principle of "no unification, no independence and no use of force" under the framework of the ROC Constitution, and have sought to promote cross-strait interaction and cooperation within the parameters of the 1992 Consensus. This is not passively maintaining the status quo, but rather an active attempt to gain enough time in which to allow for the peaceful development of the cross-strait relationship. This will help the people of Taiwan and mainland China better understand one another and eliminate prejudices through greater communication and cooperation in the areas of trade and culture. With Chinese culture as the foundation, we can seek pragmatic and feasible solutions to cross-strait disputes.
My fellow citizens, since I took office in 2008, the government has resumed cross-strait talks, insisting all the while on parity and dignity. The ROC is a sovereign, independent nation, and Taiwan long ago became a democracy in which sovereignty lies in the hands of the people. We should have full confidence that Taiwan's future is, as a matter of course, in the hands of its 23 million people. Precisely because the Republic of China is a democratic country, cross-strait policy must be subject to both supervision by the Legislature and to public opinion. As to cross-strait agreements that concern the people's welfare, the government must be responsive to public opinion and increase communication with opposition parties and the people to seek out consensus and gain support.
During the fourth round of talks held 10 days ago between Chiang Pin-kung, head of Taiwan's Straits Exchange Foundation, and Chen Yunlin, head of mainland China's Association for Relations Across the Taiwan Strait, the two sides signed three agreements. Along with the nine agreements signed previously, altogether 12 agreements have been signed over the past 19 months. These agreements have yielded considerable results, for they cover regular direct cross-strait flights; direct postal services; allowing mainland Chinese tourists to visit Taiwan; financial cooperation; food safety; cooperation on fishing crew affairs; product testing and certification; inspection and quarantine of agricultural products; and joint crime-fighting and mutual judicial assistance. Each agreement enhances and safeguards the rights and interests of Taiwan's people and has nothing to do with sovereignty.
During each of the four rounds of talks, the government has always held to the principle of "putting Taiwan first for the benefit of the people." The government will not do anything that is unfavorable to the people or will impair their ability to decide their own affairs. Additionally, the government has made the issues transparent and the content of the agreements public, and the process has been supervised by the Legislature. Numerous public opinion polls have shown that these agreements have the support of over half of the people. Over the past 19 months, steady progress has been made in cross-strait relations.
The mending of the cross-strait relationship has won the affirmation of the international community, thus restoring other nations' confidence in us and opening the door to closer and friendlier ties. On the international scene, Taiwan now symbolizes not only freedom, democracy and prosperity, but also peace. In the past, many countries stayed away from Taiwan, greatly apprehensive of getting caught up in cross-strait quarrels. Now that the cross-strait relationship has entered into a period of rapprochement, these countries have begun to discuss with us visa-free arrangements and agreements on the avoidance of double taxation. Today, more nations are supportive of Taiwan's participation in international organizations and related activities.
All of this has proceeded from cross-strait detente. However, this government will not indulge in wishful thinking by having the development of cross-strait ties determine our external relations. We will adopt a principle of seeking a proper balance between the two, so that cross-strait ties and foreign relations are mutually complementary and progress together, with neither subordinated to the other. Indeed, if Taiwan can get more international space, it will make us more willing and give us the courage to continue strengthening the cross-strait relationship, thereby creating a virtuous circle between the two sides.
V. Pursuing progress and values and promoting reform among the entire populace
While Taiwan may not be large in size compared with other advanced nations, it has nevertheless created twin economic and political miracles over the past 60 years. Taiwan's democracy and way of life are the sources of its creativity and vitality, and this is something of which the Chinese-speaking world can be proud. Just over a month ago, our young inventors made quite a sensation at the iENA Inventors' Trade Show in Nuremberg, Germany, securing a group championship with 26 gold, 26 silver and 15 bronze medals, and setting the finest record of recent years. Our fashion designers Jason Wu and Johan Ku have also made a splash on the international stage.
The spread of the A(H1N1) influenza around the globe has created a serious shortage of vaccines, but Taiwan has been able to produce 10 million doses of its own vaccine. At present, 5.2 million people in Taiwan—or nearly 22 percent of the population—have already been vaccinated. This puts Taiwan in the front ranks globally and has ameliorated public anxiety while contributing greatly to preventing an epidemic. It has also reduced the number of cases and cut the number of classes cancelled due to outbreaks of the virus from four figures to two. In the meantime, our government has purchased 500,000 doses of the Taiwan-manufactured vaccine, and will donate them to the World Health Organization once the peak influenza period has passed and the epidemic has been brought under control. In this way, we hope both to help people in other countries and to make the international community more aware of the positive value that Taiwan brings to the world.
Mainland China has arisen with lightning speed in recent years and is growing in influence day by day. However, it still lags behind Taiwan in such areas as democratic government, human rights guarantees, legal standards, innovative design and quality of life. We in Taiwan, therefore, should believe in ourselves and be fully confident about our values and institutions. In the process of working on a friendly relationship with mainland China, we should be glad to share our values and experiences. Freedom and democracy are the spiritual hallmarks of the people of Taiwan, and we have every reason to be proud of that fact.
Taiwan must continue to move forward. Reform cannot be centered on mere comparisons with our past; it must be future-oriented and forward-looking. Change for the better not only proves that we have progressed beyond the past; it also demonstrates that we can develop a new vision to fulfill the hopes and expectations of the people, as we march together into the future.
Divisions over independence versus unification, ethnic clashes and partisan wrangling are perennial issues that have shaped debate in Taiwan for decades. Despite changes in the environment and public fatigue with such controversy, the old divisions persist as before. However, if our discourse remains stuck in the past, reform and progress will surely be constrained.
Recently, a group of journalists published the book "Small Revolutions," which recounts 24 stories from all over Taiwan. Each story stands as evidence that there is a group of people in Taiwan who believe in themselves. Indeed, they show a stubborn, never-say-die persistence that is most inspiring. In a variety of areas, they have broken through the bonds of traditional thinking and realized their dreams in hopes of transforming society for the better.
The book introduces the "PunCar" group, which drives around rural areas to help reduce the urban-rural digital divide. The reader also learns about fair-trade-coffee importers Hsu Wen-yen and Yu Wan-ru, who have stood up against exploitation in hopes of helping poor, marginalized farmers in developing nations. The story of Chen Meng-jin, who runs a farm that provides a home for mentally handicapped children, is also included, as is that of a group of young people who delivered meals to elderly people following the September 21, 1999 earthquake. This same group also set up community kitchens in Lugu, Longyanlin and Heping. Also written of is Ou Ji-fu, who leads a simple life in coastal Hualien.
The hard work of these people did not initially attract much attention, recognition or support—failure was even possible—but each of these stories radiates with idealism, passion, persistence, care for one's local community, courage to change and courage to innovate. These are the values Taiwan needs most at present.
I believe that there are not just 24 "revolutions" happening in Taiwan, but thousands upon thousands. The people involved in them are sacrificing quietly but are courageously realizing their ambitions, helping Taiwan to progress in many areas. The government's responsibility is to create an open environment, encourage attempts and changes that foster progress, give everyone the chance to realize his or her dream and let these dreams become the force that shapes the new face of Taiwan.
Reform requires the ruling and opposition parties to work together. We hope that they can engage in dialogue on key policies soon so as to increase mutual trust and create consensus. Society is inevitably moving forward; political parties must not remain stuck in the past, living in mutual suspicion and fighting one another. There are so many issues on which the parties can work together to promote Taiwan's progress and prosperity. This is our hope in this new year, and even more so, it is the expectation of the people.
VI. Working together to bring back prosperity
My fellow citizens, 2010 will be a key year for rebuilding Taiwan's economy. This year, we will also implement a variety of reforms. I believe that as long as we are passionate, work together and spare no effort, we can certainly overcome any number of difficulties, leave this challenging period behind and ring in a time of unparalleled competitiveness.
Let us be bold and forceful as we work to reach our goals. In confidence, let us welcome the 100th anniversary of the founding of the Republic of China!
Happy New Year, everyone! Thank you all very much.