Coordinating private sector efforts in developing opportunities for Taiwan firms in emerging markets throughout Southeast Asia and beyond is a top priority for the government, according to James C. F. Huang, head of the New Southbound Policy Office under the Presidential Office May 27.

“The New Southbound Policy has three prongs: new range, new direction and new support,” Huang said. “Taiwan must start eyeing markets beyond the 10 Association of Southeast Asian Nations member economies.”

Under new range, the New Southbound Policy extends to six South Asian countries: Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka. New direction encompasses inbound investment and tourism, as well as educational exchanges. And new support involves viewing Southeast and South Asia as more than just a base for manufacturing, but an opportunity to extend Taiwan’s domestic demand.

According to Huang, business opportunities related to infrastructure construction in ASEAN economies are estimated to reach US$1 trillion by 2020. Taiwan enterprises can look to tap robust demand, capitalizing on our strengths in power generation, sewage treatment, telecommunications and transport engineering, he said.

“By serving as a central communication platform for different industries, NSPO will oversee government policies and organize outreach programs for maximum effect,” Huang said, adding these include setting up an all-English ASEAN and South Asia think tank, as well as cultivating tertiary and vocational educational resources to deepen ties.

Chen Mu-min, chair of Graduate Institute of International Politics at Taichung City, central Taiwan-based National Chung Hsing University, said the New Southbound Policy will significantly contribute to building dialogue and cooperation.

“In addition to diversifying cooperation, Taiwan must assume the role of a strategic partner for countries like India,” he said. “While exploring opportunities for bilateral trade and investment, Taiwan can gain from boosting interactions spanning academic, cultural, economic and technological issues.”

Human resources are to play a pivotal role in the success of the New Southbound Policy, Chen said, adding that they will benefit from the government’s ongoing talent cultivation projects focused on stimulating two-way exchanges.

According to the latest Ministry of Education statistics, the number of Southeast Asians studying in Taiwan was 26,000 last year, or 24 percent of all overseas students in Taiwan, up 13 percent from 2014. The number of Taiwan students studying in Southeast Asia is also rising, with 2,334 Taiwan students receiving ministry assistance to study or work in the region to date.

Upon completion of their studies, these students are expected to play a crucial part in furthering the headway of Taiwan’s southbound development, capitalizing on their superior language skills and international networking capabilities.

The New Southbound Policy seeks to elevate the scope and diversity of Taiwan’s export economy and minimize overreliance on any single market. The policy is seen by the government as one of the best ways for the country to overcome current economic challenges and stimulate growth momentum. (YHC-E)

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