Taipei, Dec. 26 (CNA) Led by the semiconductor sector, Taiwan's high-tech industry led the way for the national economy, but hurt it at the same time, a researcher said Wednesday in a forum.
"Taiwan's economy is export-driven and most of the contribution came from the high-tech industry. There is no doubt about it. However, Taiwanese citizens did not benefit from the profits made by the industry, " said Liu Tai-ying, President of Taiwan Research Institute (TRI).
Speaking in a forum looking at the prospects for economic growth in 2008, Liu explained that the high-tech industry is a high capital sector, and although it has made huge profits, most companies have to re-invest in themselves as well as increasing capital through public offerings due to the short life-cycle of their equipment and products.
"That means that not only did the money made not go into the people's pockets, but the sector also took money out of the public's pocket," Liu said.
Additionally, the industry created massive output values but failed to create local jobs given the fact that most of their factories have been shifted to China and Southeast Asian countries, he added.
"That is simply the nature and characteristics of the business, " he said matter-of-factly.
The institute predicted robust export growth of more than four percent for Taiwan in 2008. Liu said the high-tech sector is still expected to be the driving force behind the growth. It is estimated that the growth rate for private sector investment will also exceed four percent, with much of it coming from the high-tech industry.
According to the TRI's research, the economic growth rate for Taiwan in 2008 is estimated to hit 4.23 percent, which is slightly lower than the 10-year average of 4.38 percent and more than one percentage point lower than the estimated economic growth rate of 5.29 percent in 2007.