National Development Plan 2021 2024 National Development Council

National Development Plan (2021 - 2024) National Development Council July 2020

Table of Contents National 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

National Development Plan (2021 -2024) In accordance with Presidential term, embodying President’s governing rationales and Premier’s administrative priorities Incorporating President’s policy agenda, inauguration speech, and important projects of ministries/commissions approved by the Executive Yuan 1 Studying global mega trends Since 1953 2 Analyzing medium/ long-term issues 3 4 Macroeconomic targets (2021 -2024) 17 medium/long-term plans have been formulated. Economic development National construction plan National development strategies (2021 -2024) This is the 18 th medium/long-term plan. National development plan 1

The formulation process revision according to President’s inauguration speech Submitting to Executive Yuan for approval (May-June 2020) (July 2020) Issues collection preliminary drafting consultation meetings (since Aug. 2019) (since Jan. 2020) (May 2020) President’s policy agenda important projects of ministries/commissions approved by Executive Yuan cross-ministerial consultation meetings for national development strategies expert consultation meeting for macroeconomic targets analyzing medium/long-term issues related to national development collecting policy agendas of all presidential candidates approved by Executive Yuan adjustments for incorporating important policy priorities in President’s inauguration speech submitting to Council Meeting of NDC submitting to Executive Yuan weekly meeting issuing for compliance by all ministries/commissions According to this functionally-categorized mediumterm NDP, all ministries/commissions are to formulate their sectoral annual administrative plans and medium/long-term individual projects, so as to implement all intended policies 24

The international situations Taiwan faced and policy evolution Becoming Forging new economic development model • promoting ECFA, Free Economic Demonstration Zone, “Three industries and four reforms” policy, Ten key service industries, i-Taiwan 12 Construction Projects, regulatory adjustments for the internet age, Long-term care system • setting carbon emission reduction targets • economic development tilting towards China • countries initiating Industry 4. 0 • accelerating regional economic and trade integration • the rise of digital economy • climate warming exacerbating May 2012 -May 2016 New economic development model: Innovation, employment, equitable distribution 5+2 Industrial Innovation Plan energy transformation+ green technology DIGI+ Forward-looking Infrastructure Project(1 st 4 year plan) New Southbound Policy removing investment barriers in 5 major aspects Long-term Care 2. 0 promoting youth employment paying respect to mountains • over-reliance on the Chinese market • economic growth momentum continuing to slow down • rapid development of digital economy • Fukushima nuclear disaster triggering anti-nuclear movement May 2016 -May 2020 a global key economic driver a blessed land in troubled times New economic development model 2. 0: innovative growth, investing in employment, youth distribution 6 core strategic industries trillion investment plan Forward-looking Infrastructure Project (2 nd 4 year plan) DIGI+ 2. 0 Asia-Pacific Green Energy Center Long-term Care 2. 0 upgraded plan Investing in the youth paying respect to oceans Bilingual Nation 2030 New Life Movement for Epidemic Prevention comfortable campus 5 opportunities US-China trade & technology war spreading COVID-19 accelerating supply chain restructuring geopolitical shocks, e. g. Hong Kong anti-extradition movement May 2020 -May 2024 ü Industry 4. 0 trend (5 G+, AI) more obvious ü changes in the pattern of international division of labor ü innovation power of key components ü state role strengthening ü new economic and trade order under US-China competition 3

National development strategies (2021 -2024) development strategies Digital innovation, launching new economic development model 2. 0 People-centered sustainable development, shaping a LOHAS homeland for balanced development Forging a happy society for care of all ages Peaceful reciprocity, pursuing peaceful foreign relations for generations 4

National development strategies (2021 -2024) I. Digital innovation, launching new economic development model 2. 0 1 Forging 6 core strategic industries making Taiwan a key driver for global economy 6 core strategic industries information & digital industries cybersecurity excellence industry precision health industry national defense & strategic industries Taiwan brands regulations capitals livelihood & strategic stockpile industries common strategies for optimizing infrastructure environment talents green energy & renewable energy industries 5+2 industrial innovation upgraded version 5

I. Digital innovation, launching new economic development model 2. 0 2 continuing to promote industrial innovation, optimization & transformation new agriculture 3 circular economy Taking heartfelt care of farmers 4 optimizing Taiwan’s startup ecosystem developing capital -deployment center for Asia businesses and high asset & wealth management center 5 capital regulation talent market forging digital nation, smart island DIGI+2. 0 (2021~2025)Program dedicated agency - Ministry of Digital Development information cybersecurity telecommunication network dissemination 6

I. Digital innovation, launching new economic development model 2. 0 6 7 forging a bilingual nation by 2030 cultivating new generation excellent manpower industry-academia linkage dedicated promotion agency universalized bilingual education Higher Education Sprout Project recruiting & retaining key talents 8 optimizing innovative financial industries encouraging Fin. Tech innovation assisting industrial financing promoting inclusive finance 9 enhancing the sustainable financial structure strengthening debt management improving financial management efficiency implementing tax reform 7

II. Secure caring, forging a happy society for care of all ages 1 Improving long-term care system Aging locally, diversified continuous and universal long-term care services caring & professional services at-home care, community care, professional care 3 Improving youth wages, investing in the youth cultivation bases NDF investing in youth starting business cultivation plans worry-free childrearing for parents High quality & fair price, excellent & affordable childcare 4 Investing in youth education, employment, starting business deferred loan interest Strengthening childcare services 2 youth startup bases youth education & employment saving account program Implementing housing justice quality housing 優質社宅 urban renewal and reconstruction of hazardous & old buildings looking after the disadvantaged & the rental groups 8

II. Secure caring, forging a happy society for care of all ages 5 Building a stable and secure life anti-drug Suppressing drug recidivism Reducing new drug use health care comfortable campus Completing medical care and epidemic prevention & response system Practicing the "New Life Movement for Epidemic Prevention " 6 Establishing a safety protection system for children, the elderly & women diverse ethnic groups labor rights Maintaining labor employment, occupational safety, welfare, etc. Deeply cultivating cultural heritage and cultural soft power Completing support system of arts & culture social security Repairing primary & junior-high school buildings, changing electricity, installing air conditioner Combining innovation and creation to inherit culture Protecting rights of indigenous peoples, Hakka, & immigrants 7 food security implementing the 5 aspects of food security transitional justice Restoring historical truth, promoting social reconciliation Boosting sports development Promoting national sports culture - Paying respecting to mountains, promoting outdoors activities in forests & mountains talent cultivation Creating a National Team to forging Taiwan culture brand sports industries international sports events 9

III. People-centered sustainable development, shaping a LOHAS homeland for balanced development constructing people-centered transportation & tourism networks holistic enhancement of transportation construction and service efficacy forward-looking planning of tourism industries and medical tourism strengthening forward-looking infrastructure construction project innovative thinking, infrastructure construction satisfying living quality of the next generation implementing regional revitalization promoting balanced Taiwan development projects guiding industries to invest in the south of Zhuoshui River, reinvigorating employment & consumption of southern Taiwan taking advantage of local strengths, reigniting innovative growth momentum and promoting returning of people to their hometown forging resilient & sustainable LOHAS homeland implementing climate change adaptation, strengthening territory resilience and ocean development, promoting coprosperity & co-existence of human and environment paying respect to oceans, making every inch of the coastline be managed 10

IV. Peaceful reciprocity, pursuing foreign relations for generations to live peacefully reform of defense affairs • building a reliable combat force • realizing national defense independence • optimizing recruitment mechanism active international participation • • promoting practical diplomacy expanding international participation strengthening foreign economic and trade linkages promoting New Southbound Policy • promoting positive cross-strait interaction cross-Strait peace & stability • initiating cultural, educational, economic and trade exchanges • strengthening security management 11

Macroeconomic targets (2021 -2024) 2020 (prediction) 2021 -2024 Target range real GDP growth rate(%) 2. 54 2. 6~3. 4 per capita GDP(US$) 28, 180 29, 006~29, 584 employment rate (%) 3. 88 3. 5~3. 8 core CPI increase rate(%) 0. 28 (average from Jan. to Oct. ) 1. 0~1. 5 Source: DGBAS (Nov. 27, 2020) and NDC; the predicted 2020 unemployment rate is taken from the IHS Markit (Nov. 17, 2020). 12

Scenario simulation for Taiwan’s economic growth rate (2021 -2024) Efficacy of policies digitalizationdriven baseline forecast 4 -year average downside risks investmentdriven intensified US-China trade and technology war the development of COVID-19 vaccine and medicine is not as expected, and the pandemic continues. increased geopolitical risks fluctuations of oil and raw material prices, and shocks to international stock exchange & bond markets 15 13

Important achievements of Taiwan’s economic development in the last 4 years u Macroeconomic targets of the Four-year Plan (2017 -2020) to be achieved Indicators Target values (average of 2017 -2020) Actual values (average of 2017 -2020) economic growth rate (%) 2. 5~3. 0 2. 90 to be achieved per capita GDP (US$) 25, 000~26, 000 26, 260 to be achieved unemployment rate (%) 3. 75~3. 82 3. 77* to be achieved CPI increase rate (%) maintaining under 2 0. 57 to be achieved *The actual value of 2020 unemployment rate is calculated by using the predicted value from IHS Markit (Nov. 17, 2020). Source: DGBAS (Nov. 27, 2020) and NDC. 14

Conclusions After the National Development Plan 2021 -2024 is approved by the Executive Yuan, all government agencies are to implement it with concerted efforts, so as to display the determination and efficacy of the government and to respond to the high expectation of the society. Ｗe have a government that can do things right! 15