Taiwan has evolved into a smart and diversified economy. It has favourable innovation attributes and its location positions Taiwan as a gateway to China and the ASEAN region.
Taiwan’s technology-driven and advanced financial services economy supports high disposable incomes, creating demand for high-quality food, education, and products and services.
The Taiwan Government launched the New Southbound Policy in 2016 to drive economic development and regional integration between ASEAN, South Asia, New Zealand and Australia.
Key aspects of the New Southbound Policy are:
- economic and trade relations
- science, technology, and culture
- the sharing of resources, talent, and markets
- new cooperation for a ‘sense of economic community’.
The Taiwan Government’s ‘5+2’ Innovative Industry Plan supports 7 industries and projects to drive Taiwan’s industrial growth and sustainable development. This focus is expected to move Taiwan from contract manufacturing to a new commercial model of high-value-added business, services and solutioning. Key aspects are:
- intelligent machinery
- Asia Silicon Valley
- green energy
- national defence and aerospace
- new agriculture
- the Circular Economy.
Taiwan is one of the most innovative regions in the world as measured by numbers of patents lodged and international designs awarded.
Taiwan is Queensland’s fifth-largest export market. Its unique relationship with China makes it an important market for Queensland companies.
Taiwan’s ageing demographic and need for food and energy security will drive opportunities for Queensland in the future.
Taiwan became an ‘aged’ society in 2018, when its population over the age of 65 surpassed 14%. Taiwan is expected to become a ‘super’ aged society by 2026 (over 20% in this age group), making it one of the fastest ageing societies in the world. It will therefore require sophisticated aged care infrastructure and services.
Taiwan currently imports almost all of its energy needs. The Taiwan Government plans to phase out nuclear power plants and have an energy mix containing 50% natural gas, 30% coal and
20% renewable energy by 2025.
Greater energy security will drive its increasing interest in renewable energy applications in wind, tidal and solar.
Alternative fuels, such as biofuels, will also become a priority due to the Green Energy and Circular Economy initiatives.
Taiwan is a major investor in mainland China.
Its advanced economy is considered a gateway to China and ASEAN, with a multi-billion dollar investment footprint in these countries.
A total of 5 Taiwanese banking institutions currently have branch offices operating in Queensland. This significant investment is about to increase, with a sixth Taiwanese bank planning to open a Queensland branch, which will provide further funds, employment and economic benefits to the state.