Taiwan heads to the polls that will decide on its political direction, with the people making their choice on a referendum as well as on their government.

The first round is Legislative Elections that will include the referendum. This will take place on January 12 while the Presidential poll will commence later in the year.

The outcome of the Legislative Election will give a good indication of the outcome of March 22's direct election of President and Vice-President of the Republic of China (Taiwan).

This will be the fourth direct presidential election for the 12th president who will replace President Chen Sui-bian after eight years of rule.

The presidential candidates will be from Taiwan’s two main political parties, the ruling Democratic Progressive Party (DPP) and the opposition Kuomintang (KMT).

The DPP is leading the pan-Green coalition and the KMT heads the pan-Blue coaltion. The parties are now locked in a bitter battle for seats in the Taiwan parliament.

The outcome, which will influence the choice of president, will also greatly affect the economic and political status of Taiwan for the next four years.