Taiwan leader calls for unity amid severe economic challenges
Posted: 01 January 2009 1601 hrs

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TAIPEI: In his first New Year message as president, Ma Ying-jeou on Thursday called on Taiwanese to unite to overcome economic challenges facing the island in 2009 and called on employers not to sack workers.

He also implored all political parties to work on rejuvenating the economy, which has been hit hard by the global economic downturn, and said a government stimulus package would create hundreds of thousands of jobs.

"In facing severe global economic challenges, we must stand together," Ma said.

"The ruling and opposition parties, and all citizens, regardless of their political colour, must join together to rejuvenate our economy," he said.

Taiwan's gross domestic product (GDP) contracted 1.02 per cent in the third quarter of 2008, the first such fall in seven years due to a drop in spending and investment, the government says.

GDP is projected to fall 1.73 per cent in the fourth quarter while the full-year 2008 figure is expected to increase by 1.87 per cent.

Ma, who took office in May pledging to improve ties with rival China as one way of bolstering the island's economy, said his administration would not back away from problems caused by the global downturn.

"Instead, we will transform this challenge into a golden opportunity to refortify Taiwan's economic strength," he said.

He called on local enterprises to avoid laying off employees.

"As human capital is the greatest asset of a corporation, I am calling on all enterprises in Taiwan to avoid laying off their employees as much as possible, and instead work together to try to come to some mutual accommodation to weather this difficult period."

Taiwan's jobless rate in November hit a four-year high of 4.64 per cent amid widespread business closures and downsizing.

For its part, the government has launched an all-in-one economic stimulus package to expand investment in public infrastructure, stimulate domestic consumption and boost employment, Ma said.

The so-called "i-Taiwan 12 public infrastructure projects" are expected to create 220,000 jobs over four years, he said.


- AFP/so