51.5 per cent, while light industrial products dropped from 48 per cent to 44.4 per cent, which very much reflects the ongoing shakeout of the structure of manufacturing industry. Of imports, capital equipment made up
up 17
17 per cent, agricultural and industrial raw materials 70 per cent, and consumer goods 13 per cent, a ratio barely changed from 1992.
9. Gold imports reached 108.1 tonnes in the first three quarters, down 24 per cent from the same period in 1992. Imports from the UK were down 60 per cent at 9.1 tonnes, according to Finance Ministry figures.
10. The Chunghwa Institute for Economic Research, (CIER) a state- funded thinktank, has forecast exports for the year to rise by 7.21 per cent, and imports by 8.44 per cent, because some western industrialised economies are now showing signs of life. Wide- ranging tariff cuts are likely in 1994, along with substantial progress on removing non-tariff barriers, as Taiwan adjusts its economy to meet the stringent requirements of Gatt membership.
Domestic Investment: Government cutbacks, private sector cautious
11.
Total fixed capital formation in the first half grew by 10.8 per cent, low by Taiwanese standards. A similar figure is expected for the whole year. The Stimulus Plan, whose main aim is to boost manufacturing investment, is designed to keep the figure in a 10 to 15 per cent range. Investment by government departments was curtailed sharply when the new fiscal year began on 1 July, and is forecast to grow by between 11 per cent and 14 per cent for the year (compared to 17 per cent in 1992.) And investment by state-owned industry grew only 1.8 per cent in the first half, and is forecast to rise between 2 and 5 per cent for the year, compared to an original forecast of 7 per cent. As the economy opens up and privatisation creeps along, investment by Taiwan's ponderous state-run industry will contribute far less to GNP growth than it once did.
12.
Private investment grew at 14.4 per cent in the first half and should grow at about 11.4 per cent in the second, giving a figure of 12.3 per cent for the year. This would be higher than originally forecast, but still 5.6 percentage points lower than the previous year. In general, there seems to be a strong willingness on
on the part of large companies to invest, but many frustrating obstacles to their plans, while small and medium sized companies are putting their plans on hold or investing offshore. At present, 11 major investment projects are being "guided" by the Economics Ministry. Private sector ones include a steel mill, numerous petrochemicals plants including two naphtha crackers, and the British Aerospace-Taiwan Aerospace joint venture. Progress on almost every one is being held up by problems with land acquisition, environmental protests, red tape and other factors.
13. Of nearly 1,100 industrialists polled in November, 75 per cent were dissatisfied with Taiwan's investment environment.
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