background of mr. mike hung -...

Background of Mr. Mike Hung Mr. Mike Hung had been traveling to many countries around the world, especially Central and South America, Africa and Middle-East, leading delegations and conducting business seminars for more than 30yrs. Pioneering in investments and providing transfer of technical skills & know-how; aiding businessmen on setting up businesses overseas; building business relationships between Taiwan and other nations; providing technical and vocational training for foreign and domestic; and being one of the most important designated guest of President’s Office, Ministry of Foreign Affairs, Ministry of Economic Affairs, and other NGOs on hosting/entertaining foreign VIPs.

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VIPs he had met and entertained 2013-10-23, His Excellency Denzil Douglas, Prime Minister of The Federation of Saint

Christopher and Nevis. 2013-11-27, His Excellency Kenny Anthony, Prime Minister of Saint Lucia. 2013-12-20, Her Excellency Verónica Sión, Minister of Industry and Productivity of the

Republic of Ecuador. 2014-01-13, His Excellency Julio Cesar Velazquez Tilleria, President of the Senate and the

National Congress of the Republic of Paraguay 2014-02-18, His Excellency Juan Bartolome Ramirez Brizuela, President of the Chamber

of Deputies, Republic of Paraguay. 2014-03-25, His Honorable Guillermo Alberto Lasso Mendoza of the Republic of Ecuador. 2014-04-08, His Honorable Guillermo Alejandro Celi Santos of the Republic of Ecuador. 2014-04-21, His Excellency Michel Joseph Martelly, President of the Republic of Haiti. 2014-06-20 ,His Excellency José del Castillo Saviñón, Minister of Industry and Commerce

of the Dominican Republic. 2014-09-16, His Honorable Herman Giron of the Republic of Guatemala. 2014-09-30, His Excellency Abel Martínez Durán, President of the Chamber of Deputies

of the Dominican Republic 2014-10-08, His Excellency Horacio Cartes, President of the Republic of Paraguay.

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Organizations Affiliated

Taiwan Africa Industry Development Association (TAIDA) – Chairman

National Association of Small & Medium Enterprises , R.O.C. (NASME) – Chairman of the International Affairs Committee

Mike Hung Products Co., Ltd. (MHPC) – President

Taiwan Pro-Wrestling Federation, R.O.C. – Chairman

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A Brief Overview on Taiwan

• Taiwan is formerly called “Formosa” the beautiful island, during the 16th century.

• The total land area is 36,193 km² (about only 4% of the total land area of Nigeria), and a total population of 23,340,136, male 50.03%, female 49.97%.

• National language is Chinese Mandarin (Traditional Characters) Main dialects: Taiwanese Hokkien, Hakka, & Formosan (Aboriginal).

• As of 2014 estimate, the GDP (PPP) total is US$977.088 billion, and GDP (Nominal) per capita of US$22,002; (PPP) per capita US$39,800. Expecting a 3.5% growth by the end of 2014.

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A Brief Overview on Taiwan

• Unemployment Rate: 4.24% (2012), and Inflation Rate (CPI): 0.33% (2013).

• Total Trade Value: US$ 571.5 billion.

• Foreign Exchange Reserves: US$ 425.75 billion (as of 9/2014).

• World’s 18th largest “Trading Nation”.

• The currency is New Taiwan Dollar (NTD), the average exchange rate is USD1 = NTD30.747 (as of 11/2014)

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A Brief Overview on Taiwan • Main affiliated trade organizations:

WTO, APEC, and ICC (International Chamber of Commerce)

• GDP by Sector: - Service: 69.2% - Industry: 29.2% - Agriculture: 1.6%

• Main Industries: - Electronics - Communications & IT Products - Petroleum Refining - Armaments - Chemicals - Textiles - Iron & Steel - Machinery

- Cement - Food Processing - Vehicles - Consumer Products - Pharmaceuticals

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A Brief Overview on Taiwan • Main Agricultural Products:

- Rice - Corn - Vegetables - Fruit - Tea

- Pork - Poultry - Beef - Milk - Fish

• Main Natural Resources: - Small Deposits of Coal - Natural Gas - Limestone - Marble - Asbestos

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Economy of Taiwan • Due to the rapid industrialization and

economic growth of Taiwan during the latter half of the twentieth century, Taiwan had

acquired a title called "Taiwan Miracle".

• Taiwan is also notable for maintaining exceptionally high growth rates (in excess of 7% a year) and rapid industrialization between the early 1960s and 1990s. By the 21st century, Taiwan had developed into one of the advanced & high-income economies, as well as specializing in areas of competitive advantage in Asia. Taiwan developed alongside Singapore, South Korea and Hong Kong, which became known as the

"Four Asian Tigers" (or Four Asian Dragons).

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Economy of Taiwan “The Rising” Since the 1960’s, hard work by small and medium

enterprises, coupled with forward looking government

policies, have helped Taiwan’s economy to perform

brilliantly.

Import substitution and export expansion strategies

have enabled Taiwan to spread its wings and soar.

Taiwan has been the world’s biggest supplier of many

products, creating a strong image for the Made-in-

Taiwan label.

Powered by industrial transition and upgrades,

Taiwan’s foreign trade has soared to a series of

record levels, increasing 1,531-fold from 1955 to 2012.

How does

Taiwan

create

“Economic

Miracle”

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Economy of Taiwan “World’s No. 1”

1971 - 1980 • Decoration • Ship Dismantling

• Electric Fans • Footwear

1981 - 1990

• Gourmet Powder • Tennis Rackets • Mini Electronics • Sewing Machines

• Umbrella • Bicycle • ABS Resin • Monitors

• Hat • Yachts

1991 - 2000 • Scanners • Mother Boards

• IC Packaging • Wafer Foundry

• Notebook • Computers

2001 - 2004

• Record Optical • Mother Board • Notebook PC • SOHO Router • LCD Monitor • Network Interface • ABS Copolymer

• Glass Fiber • CDT Monitor • Foundry • IC Packaging • Optical Disk • DSL Modem • Cable Modem

• Disk • Hub • Card • Switch • Driver • WLAN

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Economy of Taiwan “World’s No. 1”

2005 - 2006

• Servers (System & Pure MB)

• Mother Board • Notebook PC • LCD Monitor • Blank Optical Disks • ABS Copolymer

• DSL Modem • SOHO Routers • VoIP Routers • IC Foundry • Mask ROM • IC Packaging • LAN Switches

• IP Phones • PDA • WLAN • WLAN NIC • Switch • Diving Suits

2007 - 2008

• Servers (System & Pure MB)

• LCD Monitor • CDT Monitor • Large Size LCD Panel

• Mother Board • DSL CPE • Cable CPE • WLAN NIC • Notebook PC

• PDA • IP Phone • VoIP Routers • VoIP TA • Netbook

2009 - 2012

• WLAN NIC • Digital Subscriber

Line (DSL) • Cable Modem

• Notebook PC • Netbook • IP Phone • VoIP Gateway

• Mother Board • LCD Monitor • CDT Monitor

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Economy of Taiwan “Stages of Development”

1960s 1950s

Import Replacement

Policy (light industry)

Export Expansion Policy

(light industry)

Liberalization, Internationalization, & Systematization Policies (strategic industries) - Hsinchu Science Park

2000 ～ Present Globalized Operations

(developing knowledge-based economy)

Era of High-Tech Industry (10 major emerging industries)

Era of Import Replacement & Export Expansion (heavy industry)

1980s

1970s

1990s

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0

5

10

15

20

CPI Growth Rate (%)

Average EconomicGrowth Rate (%)


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0

20

40

60

80

100

Agriculture (%)

Manufacture (%)

Service (%)

GDP Ratio

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US$0.000

US$50.000

US$100.000

US$150.000

US$200.000

US$250.000

US$300.000

US$350.000

Export

Import

Trade Balance

Trade Value (in Billion)


Total Trade Value as of 2013:

US$571.4 billion

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Economy of Taiwan

• Taiwan is a "Gateway" to China

- Geographically: Taiwan is the closest to the East Asian Emerging Markets.

- Culturally: Taiwan is highly influenced by both Chinese and Western Cultures, which can be the “Link” between China and Western doors without having conflict between both cultures.

- Economically: Due to Taiwan's export oriented factor, Taiwan is also one of the largest investor in China.

• With Taiwan's familiarity with both Chinese & Western markets, as well as both cultures, Taiwan is the considered the best option as a "stepping-stone" for Western investors before investing in China.

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Economy of Taiwan “Gateway to China”

Officially, there are 80,000+ Taiwan companies in Mainland China. Off the record, there are more than 300,000 Taiwan companies in Mainland China.

• Bilateral trade has amounted to over US$170 Billion last year.

• The export volume is about 3 times more than import volume.

• The total investment has accumulated over US$100 Billions from 1991 - 2012. (US$124.4 billion)

• Economic Cooperation Framework Agreement (ECFA) signed by China and Taiwan.

• In reality, (off the record) there are over 300,000 Taiwanese investors in Mainland China.

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Economy of Taiwan • In a 2013 report by World Economic Forum (WEF),

out of 144 countries, in terms of Business Sophistication (State of Cluster Development), Taiwan ranked 1, and in terms Overall Ranking (Global Competitiveness Index), Taiwan ranked 12th.

• In a 2013 report by World Bank, out of 185 countries, Taiwan's "Ease of Doing Business" index (rank) jump from 61 to 16th.

• In a 2013 report by Business Environment Risk Intelligence (BERI), Taiwan ranked 3rd Best Investment Environment Globally, or so called "Profit Opportunity Recommendation".

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Economy of Taiwan

• Taiwan ranks 6th in the 2013 Global Manufacturing Competitiveness Index.

• Taiwan was the World’s 19th richest country in terms of PPP-based per capita GDP in 2012.

• Taiwan was European Union’s 23rd largest Trading Partner in 2012.

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Economy of Taiwan • Main Trading Partners:

China

United States

ASEAN Nation

European Union

Japan

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Economy of Taiwan • Exports: US$301.1 billion (2013)

• Main Export Partners (2012): - China: 27.1% - Hong Kong: 13.2% - United States: 10.3%

• Main Export Goods:

- Electronics - Flat Panels - Machinery - Metals - Textiles - Plastics

- Japan: 6.4% - Singapore: 4.4%

- Chemicals - Optical - Photographic - Measuring - Medical Instruments

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Economy of Taiwan • Imports: US$270.4 billion (2013)

• Main Import Partners (2012): - Japan: 17.6% - China: 16.1% - United States: 9.5%

• Main Import Goods: - Electronics - Machinery - Metals

• Foreign Direct Investment (FDI): - US$59.36 billion (domestic) (2012) - US$154.9 billion (overseas) (2013)

- Crude Petroleum - Precision Instruments - Organic Chemicals

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Economy of Taiwan • Foreign Trade has been the engine of Taiwan's rapid growth during

the past 40 years. Taiwan's economy remains export-oriented, thus it depends on an open world trade regime and remains vulnerable to downturns in the world economy.

• The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s. The 1990s saw a more modest, slightly less than twofold, growth.

• Export composition changed from predominantly agricultural commodities to industrial goods (now 98%).

• The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of U.S. investment.

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Economy of Taiwan • Taiwan is the world's largest supplier of

contract Computer Chip manufacturing (foundry services) and is a leading LCD Panel manufacturer, DRAM Computer Memory, Networking Equipment, and Consumer Electronics designer and manufacturer.

• Textiles is another major industrial export sector.

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Economy of Taiwan • Taiwan's information technology industry has

played an important role in the worldwide IT market over the last 20 years.

• In 1960, the Electronics Industry in Taiwan was virtually nonexistent, the government's focus on development of expertise with high technology, along with marketing and management knowledge to establish its own industries. The industry used its industrial resources and product management experience to cooperate closely with major international suppliers to become the research and development hub of the Asia-Pacific region.

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Economy of Taiwan • Taiwan is among the world's leading semiconductor industries.

• Taiwan is 2nd globally in IC designing, and 4th in manufacturing.

• Taiwan is one of the world's leading LCD industry, nearly 50% of the global market share in terms of large LCD panels.

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Economy of Taiwan COMPUTEX Taipei, the 2nd largest technology trade show in the world, is a global IT exhibition which attracts many foreign investors. Upcoming will be held on June 3-7, 2014.

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Economy of Taiwan • The structure of the industry in Taiwan includes a handful of

companies at the top along with many Small and Medium-sized Enterprises (SME) which account for 85% of industrial output (Taiwan SME will be further discussed later). These SMEs usually produce products on an “Original Equipment Manufacturer” (OEM) or “Original Design Manufacturer” (ODM) basis.

• Agriculture has served as a strong foundation for Taiwan's Economic Miracle. After retrocession from Japan in 1945, the government announced a long-term development strategy of "Developing Industry Through Agriculture, and Developing Agriculture Through Industry". Thus, agriculture became the foundation for Taiwan's economic development, while promoting growth in industry and commerce.

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Taiwan Technology “Emerging Industries”

Green Energy

Healthcare

Cloud Technology

Biotechnology

Cultural and Creative

(OTOP)

Electric Powered &

Smart Vehicles

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International Recognition • Taiwan’s manufacturing industry is

highly internationalized and competitive. Many “Made in Taiwan” products were rank among the top 3 globally in their class.

• Taiwan also has extensive capacity in innovative R&D. Original designs from Taiwan have earned international praise. In recent years, Taiwan designs have won several number of awards at 6 major invention exhibitions and 4 major design shows.

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Taiwan Excellence Products

• To encourage Taiwan industries to upgrade and incorporate Innovalues into their products, the Ministry of Economic Affairs (MOEA), Bureau of Foreign Trade (BOFT) and Taiwan External Trade Development Council (TAITRA) through the effort of the project called "2013 Integrated Marketing Communications for Emerging Markets (IMC)", developed "The Taiwan Excellence Awards".

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Taiwan Excellence Products • The Taiwan Excellence Awards

Selection is based on four different criteria: R&D, design, quality, and marketing. The project aims to assist quality Taiwan's "own brand manufacturing" (OBM) companies in raising brand awareness and preference among consumers in emerging markets including Indonesia, India, Vietnam, Philippines, and Mainland China.

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Taiwan Excellence Products • Furthermore, the project provides aid and support

for around 100 award-winning Taiwan Excellence brands in ICT, Home & Leisure, and Machinery industries, by introducing the brands' innovation, reliability and product's worth value which brings excellent lifestyles, through some promotional activities, such as: - Putting up pavilion on some international B2B trade

shows.

- Setting up "experience area" in some major shopping malls worldwide to get closer to foreign consumers.

- Press conferences & press releases.

- Celebrity endorser & promotional ads, and etc.

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Science and Industrial Parks • In order to promote industrial research and development, the

government began establishing science parks, economic zones which provide rent and utility breaks, tax incentives and specialized lending rates to attract investment.

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Hsinchu Science and Industrial Park • The first of these, the Hsinchu Science Park was established in

1980 by the National Science Council with a focus on research and development in information technology and biotechnology. It has been called Taiwan's "Silicon Valley" and has expanded to six campuses covering an area of 1,140 hectares (11.4 km2).

• Hsinchu Science Park (HSP) is now one of the world's most significant areas for semiconductor manufacturing. More than 400 high-tech companies, mainly involved in the semiconductor, computer, telecommunication, and optoelectronics industries, have been established in the park since the end of December 2003.

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Hsinchu Science and Industrial Park • Over 430 companies which employing over

130,000 people are located within the park, and paid in capital totaled US$36.10 billion, accounted for 10% of Taiwan's GDP in 2008. Both Taiwan Semiconductor Manufacturing Company and United Microelectronics Corp.,

• Taiwan is the only country that possesses a professional division-of-labor system in the semiconductor industry and also has the highest density of 20-inch and 14-inch wafer-producing fabs, most of which are based in the park.

the world's largest and second largest contract chipmakers, are headquartered within the park.

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Hsinchu Science and Industrial Park • Next door to the science park are two of

Taiwan's science and engineering powerhouses, National Chiao Tung University and National Tsing Hua University. There is also a science-themed amusement park nearby.

• In order to ensure the water and air be protected from pollution. The Park's industrial wastewater treatment plant began to operate in 1986, and environmental protection department monitors the air quality around the Park.

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Other Science and Industrial Park Currently there are… 6 Industrial and Science Parks in Taiwan: • Central Taiwan Science Park • Hsinchu Science Park • Kaohsiung Science Park • Nankang Software Park • Neihu Science Park • Tainan Science Park

5 Economic Research Institutes: • Taiwan Institute of Economic Research • Chung-Hua Institution for Economic Research • Institute of Economics, Academia Sinica • Industrial Technology Research Institute • Taiwan Livestock Research Institute

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Taiwan FTA – “What is TPP and RCEP?”

• TPP - Trans-Pacific Partnership is a proposed regional free-trade

agreement. As of 2014, 12 countries throughout the Asia-Pacific region have participated in negotiations on the TPP: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. On Sept. 2013, Taiwan had announced interest on joining, as being one of the 2 potential candidate along with Korea.

Taiwan had invested US$25.43 billion on TPP member countries, accounting to 16.41% of total overseas FDI (as of 2013, total overseas FDI: US$154.9 billion), with a trade value of US$198.14 billion, accounting to 34.44% of Taiwan’s total trade value.

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Taiwan FTA – “What is TPP and RCEP?”

• RCEP - Regional Comprehensive Economic Partnership is a

proposed free trade agreement (FTA) between the 10 ASEAN members (Association of Southeast Asian Nations): Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam and the 6 nations with which ASEAN has existing FTAs: Australia, China, India, Japan, Korea and New Zealand.

Taiwan had invested US$127.9 billion on RCEP member countries, accounting to 82.56% of total overseas FDI (as of 2013, total overseas FDI: US$154.9 billion), with a trade value of US$325.13 billion, accounting to 56.51% of Taiwan’s total trade value.

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Taiwan FTA Taiwan’s Current Situation on Promoting FTA (The importance of ECFA, TPP and RCEP in Taiwan):

• TPP and RCEP members country are the main export market and investment place for Taiwan’s enterprises, Taiwan is speeding-up on promoting economic integration on the region, in order to solve the current economic difficulties.

• Due to the rise of the regional economic integration, many countries are actively promoting multilateral and bilateral FTAs, causing Taiwan loosing its overseas market share. This is why there is an urgency for Taiwan to be active on joining TPP and RCEP.

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Taiwan FTA (continuation):

• By 2013, TPP members stands about 34.44% of the total trade value of Taiwan, amounting to US$198.14 billion.

• By 2013, RCEP members stands about 56.51% of the total trade value of Taiwan, amounting to US$325.13 billion.

• From 2003 to 2013, Taiwan investments on TPP member countries stands about 16.41%, amounting to US$25.43 billion.

• From 2003 to 2013, Taiwan investments on RCEP member countries stands about 82.56%, amounting to US$127.90 billion.

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Taiwan FTA

65.56% 10.04%

10.84%

4.88% 2.84%

2.03%

2.01%

0.67% 0.45%

0.68%

TPP Others

USA

Japan

Singapore

Malaysia

Australia

Vietnam

Canada

Mexico

Chile, NZ, Peru, Brunei

About US$377.30 billion

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Taiwan FTA

43.49%

21.61%

15.89%

10.84%

4.84% 2.03% 1.07%

0.23% RCEP Others

China

ASEAN (10 nations)

Japan

Korea

Australia

India

New Zealand

About US$250.32 billion

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Taiwan FTA

COUNTRY ACCOUNTED

TO TRADE

Already signed and took effect

8 Nations (7 FTA)

9.69% • El Salvador • Guatemala • Honduras • Nicaragua

• Singapore (ASTEP) • Panama • New Zealand

(ANZTEC)

Undergoing negotiations

China (ECFA) Early Harvest

Trade Amount

17.18%

Total: 26.87%

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A Brief Overview on Taiwan SME

• Out of 1.37 million business enterprises available in Taiwan, there are 1.33 million SMEs, occupying about 97.63% of total business enterprises.

• Providing jobs to 8.33 million people, accounting to 77.85% of the total national employment.

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The criteria of SMEs in Taiwan

1. In the case of manufacturing, construction, mining or quarrying enterprises, paid-in capital shall not exceed NT$80 million; or

2. The enterprise is an enterprise in the industry other than any of those mentioned in the sub-paragraph immediately above and had its sales revenue of NT$100 million or less in the previous year.

3. In the case of manufacturing, construction, mining or quarrying enterprises, the number of regular employees shall not exceed 200 persons; or

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The criteria of SMEs in Taiwan

4. In the case of agriculture, forestry, fishing, animal raising, plumbing, electrical power, gas and fuel-oil supply, commerce, transportation, warehouse, communications, finance, insurance, real estate, industrial service, commercial service, social service or personal service enterprises, the number of regular employees shall not exceed 50 persons.

5. For an enterprise whose business tax is determined by the tax-assessing agency, the total operating revenue of the previous year must be below NT$80 million.

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6 Development Stages of Taiwan SMEs

Agriculture Products

Export (1950-1953) sugar, camphor,

China Fur

Labor

Intensive Light

Industry (1953-1962)

as import substitute

Light industry

(1963-1972) for export

Heavy Industry

(1973-1980)

Industry Upgrade / Strategic Industry

(1981-1990)

High-Tech & Information Technology (1991-2000)

DRAM &

LCD Panels (2001-2010)

Cloud Computing

& Green Technology (2011-2013)

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The 50 year track of development and current status of Taiwan SMEs

1961 Home Factory Agricultural Culturing Industry Agricultural Industrialization Import Substitution

1971 Processing and

Export Trade Trade boosting

growth

1981 Oil Crisis & Gulf

War Record breaking

highs on export

1991 Rapid rise of the

Electronics Technology Establishment of the

SME Cluster

2001 Taiwan became one of

the major supply chain for electronics and tech industries. The power source on stabilizing financial crisis.

Current Knowledge

Economy Emerging

Industries

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Future Development for Taiwan SMEs

TAIWAN SMEs

Emerging Industries

Green Industry

Tourism

Fine Agriculture

Solar Energy

Medical Care

Cultural Creative

(OTOP)

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Taiwan SMEs Development Policies

1960

1965

1970

1975

1980

1985

Establishment of SME Guidance Workshop

Establishment of SME Joint Service Center

Establishment of SME Financing for long and medium term

approach

Establishment of SME Credit Guarantee Fund of Taiwan (Taiwan SMEG)

Establishment of Taiwan Business Bank

(TBB)

Establishment of SME Administration Office under the Ministry of

Economic Affairs

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1985

1990

1995

2000

Liberalization Period

Implementing the SME Development

Regulations and Establishment of SME Development Funds

Implementation of the “Fair Trade Act”, and promoting “Business

Automation Program”

Amending the main points regarding the loaning credit guarantee for export, under the SME Credit Guarantee

Fund’s regulation

Adding a “Credit Guarantee Financing for Turnover Difficulties

on Installment Basis”, and promoting Business

Modernization Related Program

Promoting “Small Business Innovation

Research” (SBIR)

Establishment of SME Incubation

and Business Start-Up Program

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2000

2005

2010

Economic Globalization

Promoting “Increasing SME Competitiveness

Program”, and implementation of

Enterprise Merger Act

Promoting “SME Internet Awareness Program, then “SME E-Business Training Program”, “Encouraging SME Skills & Technology Development Program,

Formulate “Business Research

& Development Guidance

Promotion Act”

Promoting the “Decreasing of the gap on technological advancement between industries, “Nakang

Incubation Center”, “Guidance on promoting local specialties industries.

Promoting “Taiwan Branding Development Program”, and Establishment of Commerce

Development Research Institute (CDRI)

Formulate “Strengthening

SME Investments Process”

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Apart from 2010, the number of SME, Sales Value, Overseas and Domestic Sales Value & Employment continuously increases in 2011, extricating from the influence of the “Worldwide Financial Crisis”

Number of SME: 1.33 Million, 97.6% of the total enterprise.

Sales Value: 12 Trillion, 29.64% of the total sales value nationwide.

Domestic Sales Value: 9.5 Trillion, 30% of the total domestic sales value.

Overseas Sales Value: 1.6 Trillion, 14% of the total overseas sales value.

Employment: 8.5 Million, 80% of the total employment.

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The sole proprietorship in SME stands 56.72%, limited partnership companies 28.3%, and 8.55% for corporations, all in all stands about 93.57% of the total SME.

SME operating more than 10 years stands about 47.01% of the total SME, showing high resiliency rate of market (in and out) of some SME, but still there are 47% of the total SME that are being stable and operating more than 10 years.

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Global Trade & Economic Development Trends

TAIWAN

The pressure on the business opportunities that ECFA and FTA have brought, as well as the lifting the ban on overseas competitors in order to satisfy domestic needs.

The pressure that has brought by the transition of the industrial structure.

Needs of new urging force for growth and development which should be implanted into the market.

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Domestic Economic Trends

As per 2014, the monthly salaries had increased by 1.42%, with a total of NT$19,273 per month, and an hourly wages of NT$115 per hour.

Over focused of investments on ICT manufacturing and exporting, no improvements on service industry, problems on unchanged OEM manufacturing method, and low added value needed to be solved for local OEM manufacturers.

Serious manpower shortage, vocational education must be paid attention.

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Domestic Economic Trends Investment environment must be reinforce. The competitiveness

index of Governance and trade convenience are still on behind.

Lack of people’s consensus; disagreement between people.

Older age and low birth rate: deriving into shortage of labor force, aggravation on the burden on raising family, long-term caring and nursing of aged people.

High economic inequality with a Gini index of 6.01

Imbalance development between rural and urban areas. There are considerable differences in economic and educational opportunities.

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The transition on the mind setting for industrial policies after the worldwide financial crisis

Diversification, Branding Strategies, Acquisition of Key Technologies

Cross Strait ECFA, and Industrial Cooperation

Reengineering of Core Industries (Key Products Development)

Development of 6 Emerging Industries

Industrial Innovation Act

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Future trends that could affects Taiwan SME

The expanding of China’s domestic needs and increase of tourism which could be brought

on to Taiwan

Business opportunities that would emerge through increase of aged people, low birth

rate, and existence of “M” Type society.

Unemployment and stagnation of salaries/wages

Technological Integration and Digital Convergence

Imbalance of manpower supply and demand

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Award Strategy

Grouping Strategy

Guidance Strategy

Guidance Measure for Taiwan SMEs

Foundation of SMEs 65-70% ‧Mutual Cooperation ‧Local Cultural Industry ‧Financing Programs ‧Industry Cluster

Middle Level SMEs, & Ltd. Co. 27-34% ‧Guidance Systems

Top SMEs

Corp. & Co. 1-3%

SMEs Start-Up

• National Award • Rising Star Award • R&D Award • Business Start-Up

Award

Mechanism for supporting entrepreneurial activity & innovation

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National Association of Small and Medium Enterprises (NASME), R.O.C. • NASME was founded in 1972.

• Corporate members account to 71% of membership, while individual members 19%, group members 9%, and the sponsor members is 1%.

• NASME have 47 businessmen organized as board of Directors and Supervisors, and have 6 functional committees under the board of directors, which is according to the types of activities.

• SME network of NASME comprises of 55 organizations and cross-enterprise association in Taiwan.

• In addition, it has also extended its service overseas, and has established cooperative economic and trade relations with 130 global organizations from 78 countries, by signing MOU.

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National Association of Small and Medium Enterprises (NASME), R.O.C.

Guidance Systems:

• Industrial Safety • R & D • Pollution Prevention • Production Technology • Marketing • Management • Finance • Quality Upgrading • Information Management • Business Start-up and Incubation • Mutual Assistance and Collaboration

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Vision and Strategies:

Integrating the SME financing mechanism

Building a platform for business start-up

and incubation

Strengthening the SME management guidance function

Creating a healthy environment for the

development of SMEs

Creating an environment beneficial

to the establishment and growth

of SMEs

Enhancing SMEs’ information technology

capability

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Mike Hung’s Adventures:

Diplomatic trip to St. Kitts and Nevis, St. Vincent, St. Lucia, New York, Haiti, and Paraguay with His Excellency President Ma Ying-Jeou.

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Diplomatic trip to São Tomé and Príncipe, Burkina Faso, and Honduras with His Excellency President Ma Ying-Jeou.


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His Excellency Horacio Cartes, President of the Republic of Paraguay

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His Excellency Michel Joseph Martelly, President of the Republic of Haiti

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His Excellency Abel Martínez Durán, President of the Chamber of Deputies of the Dominican Republic

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His Excellency Juan Bartolome Ramirez Brizuela, President of the Chamber of Deputies, Republic of Paraguay.

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His Honorable Francisco Fernandez, Mayor of Santo Domingo City of Dominican Republic

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His Honorable Herman Giron of the Republic of Guatemala

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His Honorable Jonathan Bass and Mrs. Bass, Chief Executive Officer of St. Christopher and

Nevis Air and Sea Ports Authority (SCASPA) of the

Federation of St. Kitts & Nevis

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Mike Hung’s Adventures: Permanent Secretary Patricia

Martin, Vice Minister of Ministry of Tourism and

International Transport of St. Kitts and Nevis. Together with her spouse Dr. Patrick Martin, Chief Medical Officer of the

Ministry of Health, Social Services, Community

Development, Culture & Gender Affairs

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Mike Hung’s Adventures: (New Zealand)

Signing of Economic Cooperation Agreement (ECA) “Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC)”

80



Headed a business delegation to Nicaragua and Dominican Republic

81



Dinner with St. Lucia Prime Minister at the Presidential Palace in R.O.C.

Business Seminar with H.E. Denzil Douglas Prime Minister

of St. Kitts and Nevis

82



Meeting with Ex-Industrial Secretary Ms. Verónica Sión of the Republic of Ecuador

Meeting with His Excellency Julio Cesar Velazquez Tilleria, President of the Senate & the

National Congress of the Republic of Paraguay

83

Taiwan Africa Industry Development Association (TAIDA)

Mike Hung’s Adventures: (Swaziland)

Attending an old friend’s birthday celebration,

His Royal Highness King Mswati III of the Kingdom of Swaziland

Greeting Her Royal Highness Queen Mother

(H.R.H. King Mswati III’s mother)

84


Mike Hung’s Adventures: (Gambia)

Luncheon and meeting with Her Excellency Vice President Isatou Njie-Saidy of the Repbulic of The Gambia, held at the

Presidential Palace of R.O.C.

85


Meeting with H.E. Dr. Gabriel Arcanjo Ferreira da Costa

A diplomatic visit from His Excellency Prime Minister of São Tomé and Príncipe (VIP Luncheon at The Taipei Guest House)

Mike Hung’s Adventures: (São Tomé and Príncipe)

86


Mike Hung’s Adventures: (Nigeria)

Meetin with His Hon. Sylvester Ogbaga, His Hon. Peter Oge Ali

& His Hon. Abdulrahman Badamasuiy

Meeting with His Hon. Mohammed Ogoshi Onawo

87



Dinner with H.R.H. King Mswati III and H.E. President Ma Ying-Jeou

at Presidential Palace of the R.O.C

Meeting with the Gambian Officials

88



Meeting with H.R.H. Prince Hlangusemphi Dlamini (Ministry of

Economic Planning and Development) & H.R.H Prince Jabree Lindani Dlamini

of the Kingdom of Swaziland

Meeting with Her Hon. Mabel Petronella Mentor

(Parliament Member of The Republic of South Africa)

89



South African Trade and Investment Seminar

Meeting with the Swaziland Officials

90



Celebrating the 50th Anniversary of the African Union, with H.E.

President Ma Ying-Jeou

Conducting speech at the 2013 African Market Forum

91


Mike Hung’s Adventures: (Burkina Faso)

Holding Burkina Faso Trade Seminar in Taiwan

92



Conducting seminar on trade and investment opportunities in Africa

93



Headed Taiwan business delegations to Southern Africa (Swaziland, Mozambique, & South Africa)

94



TAIDA Annual Year-End Party

95

Invest in Taiwan

Invest in Taiwan

Barrier Free Environment

Regional Operating Hub

Global Headquarter

97

Invest in Taiwan

Creating Tax Incentives to attract investment

Lower Estate/Gift Tax from 50% to 10%

Lower Business Income Tax from 25% to 17%

Promoting Trade Liberalization & Dynamic Economic Growth

Benefits and Incentives

98

Invest in Taiwan

Industry Development Guidelines

Reduced its business income tax from 25% to 17%.

Encourages investment in innovative R&D

Industrial Innovation Act

99

Invest in Taiwan

Sustainable Energy Policy

Security Efficiency Cleanness

High Efficiency High Value Low Emission Low Dependence

Renewable Energy Energy Conservation Carbon Reduction

100

Invest in Taiwan

“Bilateral Agreements” with the following countries:

People's Republic of China Economic Cooperation Framework Agreement (ECFA)

New Zealand Economic Cooperation Agreement (ECA) "Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC)"

El Salvador

Guatemala

Honduras

Nicaragua

Singapore (ASTEP)

Panama

101

Invest in Taiwan

Intellectual Property Rights Protection

Patent and Trademark

Examination IPR Police Team Intellectual

Property Court

Foster a Business-Friendly Investment Environment

102

Video Presentation of Taiwan Economy

103

THE END

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