November 2012  
Leadership transition in US and China add uncertainties to world economy
Taiwan’s exports momentum dismissed
Leadership transition occurred recently in the world largest and second largest economy, the US and China. After winning over the presidential election, the US leader needs to deal with the fiscal cliff issue right away. Although China underwent a smooth transition, their new leader will not be running the office until March next year. From now till then, the incumbent administration will tend to be more conservative. As a result, leadership transition in US and China actually add further uncertainties to the global economy. In addition, geopolitical issues in the Middle East also complex the pricing of crude oil plus the Taiwanese government’s policy dithering jointly weakening the confidence of domestic business sectors.
Excellent performance in the Taiwanese external sectors in September did not extent to October this year. The exports in October accounted as a total value of USD 26.53 billion that would be 2.4% less than the exports in September or 1.9% less Year-on-Year. The imports in value stood at USD 23.37 billion in October meaning 0.8% more than the imports value of September or 1.8% less on the Year-on-Year basis. Furthermore, the accumulative exports from January 1 to October 31 stood at USD 250.13 billion that would be 3.7% less compared with accumulative exports during the same period of 2011. The accumulative imports from January 1 to October 31 accounted as USD 227.26 billion, which would be 4.7% less compared with total imports occurred during the same period of previous year. The trade surplus in October was in the value of USD 3.26 billion making the total surplus from January 1 till October 31 USD 22.87 billion that would be 7.4% growth on a Year-on-Year basis.
On the subject of the supply side, the Taiwan Industrial production (IP) index was 133.46 in October, and it would be 3.15% increase compared with the IP index in September. Furthermore, the IP index in October 2012 would be 4.56% higher than the index in October 2011.
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Industrial MOUs signed between Taiwan and Japan
Taiwan and Japan signed a memorandum of understanding (MOU) on industrial cooperation and a mutual recognition agreement on testing and verification services for electrical machinery and electronics products in November. The MOUs were signed by Liao Liou-Yi, chairman of Taiwan’s Association of East Asian Relations, and Mitsuo Ohashi, chairman of the Japan Interchange Association. The two countries were scheduled to sign an MOU on the regulation of medicine by year end, which would help provide closer regulatory support between two sides, Liao said.

The Executive Yuan mapped out an Economic Plan designed to promote the further upgrading of Taiwan’s economic momentum
Taiwan’s “Ease of Doing Business” ranking jumped from 16th to 9th place among the 185 economies covered in the World Bank’s “Doing Business 2013” report
Taiwan Economic Research Monthly
Road to cleaner and safer prosperity
Evaluation of the costs and effects on developing alternative natural gas
99.3% of Taiwan’s energy is imported, and Taiwan government adapted by using substantial natural gas as a substitute for fossil fuel in response to the call of international carbon reduction. This article evaluated the costs and effects on developing synthetic natural gas in Taiwan
The proposal on carbon capture and storage industrial development
The EU power department expected to commercialise carbon capture and storage before 2030 in response to the impacts of climate change and achieve the goal of zero carbonisation. Japan and Korea also initiated plans to reduce their carbon emissions. Taiwan has a perfect CO2 storage environment, thus Taiwan should take its advantage of perfect environment to promote its carbon capture and storage on the industrial development.
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