Taiwan's government unveiled the first stage of a new stimulus effort Thursday to help the island's export-driven economy grow up to 4 percent next year amid global uncertainty. Vice Premier Sean Chen said the government will expand investment in public projects and help industries create new jobs. He said the announcements Thursday are the first part of a comprehensive plan to keep growth on track. Weak demand from Europe and the US is casting a shadow over Taiwan's export-driven economy. The government recently forecast growth in exports to fall to 5.3 percent next year from 13 percent this year. Among Taiwan's mainstay industries, computer and semiconductor makers are holding up as a slowdown in PC sales has been partially offset by rising sales of tablet computers and smartphones. Leading makers, such as Taiwan Semiconductor Manufacturing Company, are expanding or building new factories. But several other industries are being hit by oversupply and sharply falling prices. Chen said the government will rescue the LED light industry from the current slump by installing 320,000 energy-saving LED street lights across the island. It will also subsidize purchases of energy-saving home appliances, he said. The memory chip and flat panel screen industries are also facing a gloomy future as their top competitors in South Korea are investing heavily to advance their technologies. Taiwanese makers of dynamic random-access memory chips are expected to register a combined loss of more than 100 billion New Taiwan dollars ($3.3 billion) this year, officials say. The government has encouraged mergers among the memory chip and flat panel companies to little avail. Thursday's stimulus package did not include specific measures, but Chen said the government will draw up plans to make mergers and acquisitions easier. Despite slower export growth, Taiwan's pain index has remained relatively low, with a 4.3 percent jobless rate and 1.2 percent inflation. However, many high-tech companies have asked their employees to take leave without pay amid the current slowdown. Officials said an influx of mainland Chinese tourists has spurred the tourism industry, with a host of luxury hotels being built around the island. Taiwan's economy grew a robust 10.7 percent in 2010.
