A leading international economist sets the scene for the conversations to follow with insights on the global economy and financial system, and the implications for Taiwan’s economic development.

Economic indicators such as Taiwan’s GDP growth rate (currently about 4%) and per-capita GDP (US$37,720 at purchasing power parity) declare Taiwan to be one of the richest and most secure economies in the region. The Island has more than US$4 trillion of foreign exchange reserves, placing it fourth in the world, and the ratio of foreign debt to GDP is 36.7%. But can the Island’s export-dependent economy maintain this resilience? As growth in China continues to slow, how can Taiwan position itself as an exporter of choice, and increase its shipments to Europe and the US? What must the Island do in order to compete against nimble rivals elsewhere in Asia, and emerging markets elsewhere in the world? Which sectors promise the greatest potential for growth? What skills might be required in order to monetise such opportunities – and what are the solutions to finding the required talent? How are the public and the private sector collaborating to facilitate more R&D for innovation?

The international drive for more stringent regulation of the banking industry, involving multilateral efforts to eliminate tax evasion, has meant that some of the traditional wealth management hubs and offshore financial centres are fading losing their prominence – and new ones are emerging. Taiwan’s regulator has introduced substantial regulatory easing in order to attract more offshore business. What does Taiwan have to offer as a rival international RMB centre in comparison with other countries? To what extent will the Island’s close trading relationship with China stand it in good stead against competing centres such as London and Singapore? What role might Taiwan’s wealthy entrepreneurs play in terms of the pooling, trading and funding of RMB, as their investments and business ventures on the mainland continue to grow? What must Taiwan do around regulation of RMB products in order to become a trusted and esteemed financial centre? What uncertainties might be barriers to the Island’s success as an RMB hub?

Taiwan’s prosperity remains heavily reliant upon exports overseas. This means that any uncertainty in the global economy invariably hurts Taiwan. Over the past few years, the Island’s manufacturers have been spreading their operations across China, with exports into the Mainland providing a healthy income to the Taiwanese economy. What are the implications for Taiwan of China’s recent sluggish growth? How can additional trade partnerships, such as the Regional Comprehensive Economic Partnership, help to diversify the Island’s trade corridors? What will these new regional and international trade pacts mean for Taiwan’s high-tech manufacturers? Trade competition in Asia is extremely tough, with countries racing to sign trade agreements and establish free-trade zones. In order to compete with regional rivals, Taiwan has signed a number of multilateral trade arrangements, and at present, is also piloting five free economic zones. What will the implications be for Taiwan if these zones are successful, and are duplicated across the country? And what is Taiwan doing to mitigate the risks associated with an export-heavy economy?