National Development Plan(2021 - 2024)

National Development CouncilJuly 2020

Table of ContentsNational Development Plan (2021-2024)

Formulation process

International situations Taiwan faced and policy evolution

National development strategies (2021-2024)

Digital innovation, launching new economic development model 2.0

Forging a happy society for care of all ages

People-centered sustainable development, shaping a LOHAS homeland for

balanced development

Peaceful reciprocity, pursuing peaceful foreign relations for generations

Macroeconomic targets (2021-2024)

Scenario simulation for Taiwan’s economic growth rate (2021-2024)

Important achievements of Taiwan’s economic development in the last 4 years

Conclusions

1Studying

global megatrends

3Macroeconomic

targets(2021-2024)

In accordance with Presidential term, embodying President’s governing rationales andPremier’s administrative priorities

1

2Analyzingmedium/long-termissues

4National

developmentstrategies

(2021-2024)

Incorporating President’s policy agenda, inauguration speech, and important projectsof ministries/commissions approved by the Executive Yuan

National Development Plan (2021-2024)

National construction plan National development planEconomic development plan

Since 1953 This is the 18th

medium/long-term plan.17 medium/long-term planshave been formulated.

Issuescollection

preliminarydrafting

consultationmeetings

revision according to

President’sinauguration speech

(May-June 2020)(May 2020)

Submitting toExecutive Yuan

for approval

(July 2020)

The formulation process

President’s policyagendaimportant projects ofministries/commissionsapproved by ExecutiveYuan

cross-ministerialconsultation meetingsfor nationaldevelopment strategiesexpert consultationmeeting formacroeconomic targets

adjustmentsforincorporatingimportantpolicy prioritiesin President’sinaugurationspeech

submitting toCouncil Meeting ofNDCsubmitting toExecutive Yuanweekly meeting

analyzingmedium/long-termissues related tonational developmentcollecting policyagendas of allpresidentialcandidates

issuing for compliance by all ministries/commissionsAccording to this functionally-categorized medium-term NDP, all ministries/commissions are toformulate their sectoral annual administrative plansand medium/long-term individual projects, so as toimplement all intended policies

approved byExecutive Yuan

42

(since Jan. 2020)(since Aug. 2019)

The international situations Taiwan faced and policy evolution

• economic development tiltingtowards China

• countries initiating Industry 4.0• accelerating regional economic

and trade integration• the rise of digital economy• climate warming exacerbating

• promoting ECFA, FreeEconomicDemonstration Zone,“Three industries andfour reforms” policy, Tenkey service industries, i-Taiwan 12 ConstructionProjects, regulatoryadjustments for theinternet age, Long-termcare system

• setting carbon emissionreduction targets

May 2012-May 2016

5+2 Industrial Innovation Planenergy transformation+ greentechnologyDIGI+Forward-lookingInfrastructure Project(1st 4-year plan)New Southbound Policyremoving investment barriersin 5 major aspectsLong-term Care 2.0promoting youth employmentpaying respect to mountains

New economic development model:Innovation, employment, equitabledistribution

• over-reliance on the Chinesemarket

• economic growth momentumcontinuing to slow down

• rapid development of digitaleconomy

• Fukushima nuclear disastertriggering anti-nuclear movement

a global key economic drivera blessed land in troubled times

US-China trade & technologywar spreadingCOVID-19 accelerating supplychain restructuringgeopolitical shocks, e.g. HongKong anti-extradition movement

6 core strategic industriestrillion investment planForward-lookingInfrastructure Project (2nd 4-year plan)DIGI+ 2.0Asia-Pacific Green EnergyCenterLong-term Care 2.0upgraded planInvesting in the youth

New economic development model 2.0:innovative growth, investing in employment, youthdistribution

May 2016-May 2020 May 2020-May 2024

5 opportunities Industry 4.0 trend (5G+, AI)

more obvious changes in the pattern of

international division of labor innovation power of key

components state role strengthening new economic and trade

order under US-Chinacompetition

paying respect tooceansBilingual Nation2030New Life Movementfor EpidemicPreventioncomfortable campus

Becoming

3

Forging new economicdevelopment model

Digital innovation,launching new economicdevelopment model 2.0

Forging a happy societyfor care of all ages

People-centered sustainabledevelopment,shaping a LOHAS homelandfor balanced development

Peaceful reciprocity,pursuing peaceful foreignrelations for generations

National development strategies (2021-2024)

development strategies

4

Forging 6 core strategic industries

making Taiwan a key driver for global economy

common strategies foroptimizing infrastructure environment

5+2 industrial innovationupgraded version

6core

strategicindustries

1

information & digital industries

cybersecurity excellence industry

precision health industry

national defense & strategicindustries

green energy & renewable energyindustries

livelihood & strategic stockpileindustries

5

I. Digital innovation, launching new economic development model 2.0

National development strategies (2021-2024)

new agriculture circular economy

continuingtopromoteindustrialinnovation,optimization&transformation optimizingTaiwan’sstartupecosystem

developing capital-deployment center forAsiabusinessesandhighasset&wealthmanagementcenter

forgingdigitalnation,smartisland

DIGI+2.0 (2021~2025)Programdedicated agency - Ministry of DigitalDevelopment information

telecommunication

network dissemination

cybersecurity

6

2 3

4 5

capital regulation

talent market

I. Digital innovation,launching new economic development model 2.0

Taking heartfeltcare of farmers

7

I. Digital innovation,launching new economic development model 2.0

cultivatingnewgenerationexcellentmanpower

industry-academia linkage

Higher Education Sprout Project

recruiting & retaining key talents

7

optimizinginnovativefinancialindustries

enhancingthesustainablefinancialstructure8 9

encouraging FinTech innovation

assisting industrial financing

promoting inclusive finance

strengthening debt management

improving financial management efficiency

implementing tax reform

forging a bilingual nation by 2030

dedicated promotion agency

universalized bilingual education

6

1 Improving long-term care systemAging locally, diversified continuous and universal

long-term care services

2Strengthening childcare services

3Investing in youth education,employment, starting business

Improving youth wages,investing in the youth

deferredloan interest

cultivationbases

youth education &employment saving

account program

youthstartupbases

NDF investing inyouth starting

business

8

4 Implementing housing justice

urban renewal andreconstruction ofhazardous & old buildings

looking after the disadvantaged& the rental groups

優質社宅quality housing

II. Secure caring, forging a happy society for care of all ages

cultivationplans

at-home care,community care,professional care

caring &professionalservices

worry-freechildrearingfor parentsHigh quality& fair price,excellent &affordablechildcare

5

6 7Boosting sports development

Building a stable and secure life

anti-drugSuppressing drug recidivismReducing new drug use

food securityimplementing the 5

aspects of food security

health careCompleting medical careand epidemic prevention &response systemPracticing the "New Life Movementfor Epidemic Prevention "

social securityEstablishing a safetyprotection system for children,the elderly & women

labor rightsMaintaining laboremployment,occupational safety,welfare, etc.

diverse ethnicgroups

Protecting rights ofindigenous peoples,Hakka, & immigrants

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II. Secure caring, forging a happy society for care of all ages

transitionaljustice

Restoring historical truth,promoting socialreconciliation

Promoting national sports culture

- Paying respecting to mountains, promoting outdoorsactivities in forests & mountains

talent cultivation

sports industries

international sports events

Deeply cultivating cultural heritageand cultural soft power

comfortable campusRepairing primary & junior-high

school buildings, changingelectricity, installing air conditioner

Combininginnovation andcreation to inheritcultureCompleting

support systemof arts & culture

Creating aNational Team toforging Taiwanculture brand

forging resilient & sustainableLOHAS homeland

promoting balanced Taiwandevelopment projects

implementing regionalrevitalization

10

constructing people-centeredtransportation & tourism networks

guiding industries to invest in the southof Zhuoshui River,reinvigorating employment &consumption of southern Taiwan

taking advantage of local strengths,reigniting innovative growthmomentum and promotingreturning of people to their home-town

innovative thinking,infrastructure construction satisfying livingquality of the next generation

holistic enhancement of transportationconstruction and service efficacyforward-looking planning of tourismindustries and medical tourism

strengthening forward-lookinginfrastructure construction project

III. People-centered sustainable development,shaping a LOHAS homeland for balanced development

implementing climate change adaptation,strengthening territory resilience andocean development, promoting co-prosperity & co-existence of human andenvironmentpaying respect to oceans, making everyinch of the coastline be managed

reform of defense affairs

• building a reliable combat force

• realizing national defenseindependence

• optimizing recruitmentmechanism

active international participation

• promoting practical diplomacy• expanding international participation• strengthening foreign economic and trade linkages• promoting New Southbound Policy

cross-Strait peace & stability• promoting positive cross-strait interaction• initiating cultural, educational, economic

and trade exchanges• strengthening security management

IV. Peaceful reciprocity,pursuing foreign relations for generations to live peacefully

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2.54 2.6~3.4

28,180 29,006~29,584

3.88 3.5~3.8

0.28

(average from Jan. to Oct.)1.0~1.5

real GDP growth rate(%)

per capita GDP(US$)

employment rate (%)

core CPI increase rate(%)

2020(prediction)

2021-2024

Target range

Macroeconomic targets (2021-2024)

12

Source: DGBAS (Nov. 27, 2020) and NDC; the predicted 2020 unemployment rate is taken from the IHS Markit (Nov. 17, 2020).

baseline forecast

4-year average

Efficacy ofpolicies

downsiderisks

15

intensified US-China trade andtechnology warthe development of COVID-19 vaccineand medicine is not as expected, andthe pandemic continues.increased geopolitical risksfluctuations of oil and raw materialprices, and shocks to internationalstock exchange & bond markets

Scenario simulation for Taiwan’s economic growth rate (2021-2024)

13

investment-drivendigitalization-

driven

Macroeconomic targets of the Four-year Plan (2017-2020) to be achieved

Important achievements of Taiwan’s economic development in the last 4 years

economic growthrate (%)

2.5~3.0 2.90

per capita GDP (US$) 25,000~26,000 26,260

unemployment rate(%)

3.75~3.82 3.77*

CPI increase rate (%) maintaining under 2 0.57

Source: DGBAS (Nov. 27, 2020) and NDC.

Indicators Target values(average of 2017-2020)

Actual values(average of 2017-2020)

to beachieved

to beachieved

to beachieved

14

to beachieved

*The actual value of 2020 unemployment rate is calculated by using the predicted value from IHS Markit (Nov. 17, 2020).

Conclusions

After the National Development Plan2021-2024 is approved by the ExecutiveYuan, all government agencies are toimplement it with concerted efforts, so asto display the determination and efficacyof the government and to respond to thehigh expectation of the society.

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Ｗe have a government that can do things right!