Taiwanese voters bank on new leader to spur economy

AFP, TAIPEI: Taiwan's voters, angry at low salaries and unaffordable housing, are set to elect a new president -- but the island's flagging fortunes and a slowdown in China mean the winner will have a mountain to climb.
Tsai Ing-wen of the main opposition Beijing-sceptic Democratic Progressive Party (DPP) is expected to win the presidential vote, polling well ahead of rival candidate Eric Chu from the embattled ruling Kuomintang (KMT).
Chu is struggling to win public support as the KMT's popularity has plummeted over its China-friendly policies and failure to deliver the prosperity promised by current President Ma Ying-jeou.
More than 20 deals with China have been signed since Ma took office in 2008 and Taiwan's tourist industry has flourished under an eight-year rapprochement with Beijing as mainland visitors flock to the island.
But many voters feel warmer ties have benefited big business over ordinary people.
"Most people around me are living harder lives," said Kelly Chang, a 23-year-old former administrative assistant in Taipei who lost her job three months ago at a land development company that went bankrupt.
"I think the new DPP government can do better. I hope it can improve the economy and raise salaries. Cross-strait ties are important, but the benefits from better ties should be shared by all."
Student-led protesters occupied parliament in 2014 to oppose a China trade pact, forcing the government to shelve the deal.
But it is not just the younger generation voicing frustration. "Enough is enough," said one 60-year-old mechanic at a car repair shop in Taipei, who declined to give his name.
"Everyone who comes to our shop complains, saying they are suffering from the bad economy. Our business is falling too," he added.
"I think those who want a better future for Taiwan will want to change the ruling party."
Tough hand
Analysts say Ma was dealt a tough hand, with the 2008 financial crisis, European debt problems and a China slowdown -- all of which have been bad news for Taiwan's export-driven economy.
The island's key technology sector has suffered from weak demand, particularly as China seeks to create its own homegrown tech industry. There are rocketing housing prices, an ageing population and low birth-rate to deal with.
But the KMT's approach has also drawn criticism.
"For the past four years, Taiwan's GDP growth averaged around 2.3 per cent annually, but people's average income rose merely one percent," said Gordon Sun, head of the Macroeconomic Forecasting Centre at the Taiwan Institute of Economic Research.
"The fruits of economic growth were not shared by the general public."
Taiwan has trimmed its growth forecast for 2016 to 2.32 percent, from an earlier 2.7 percent.

Taiwanese voters bank on new leader to spur economy

AFP, TAIPEI: Taiwans voters, angry at low salaries and unaffordable housing, are set to elect a new president -- but the islands flagging fortunes and a slowdown in China mean the winner will have a mountain to climb. Tsai Ing-wen of the main opposition Beijing-sceptic Democratic Progressive Party (DPP) is expected to win the presidential vote, polling well ahead of rival candidate Eric Chu from the embattled ruling Kuomintang (KMT). Chu is struggling to win public support as the KMTs popularity has plummeted over its China-friendly policies and failure to deliver the prosperity promised by current President Ma Ying-jeou. More than 20 deals with China have been signed since Ma took office in 2008 and Taiwans tourist industry has flourished under an eight-year rapprochement with Beijing as mainland visitors flock to the island. But many voters feel warmer ties have benefited big business over ordinary people. Most people around me are living harder lives, said Kelly Chang, a 23-year-old former administrative assistant in Taipei who lost her job three months ago at a land development company that went bankrupt. I think the new DPP government can do better. I hope it can improve the economy and raise salaries. Cross-strait ties are important, but the benefits from better ties should be shared by all. Student-led protesters occupied parliament in 2014 to oppose a China trade pact, forcing the government to shelve the deal. But it is not just the younger generation voicing frustration. Enough is enough, said one 60-year-old mechanic at a car repair shop in Taipei, who declined to give his name. Everyone who comes to our shop complains, saying they are suffering from the bad economy. Our business is falling too, he added. I think those who want a better future for Taiwan will want to change the ruling party. Tough hand Analysts say Ma was dealt a tough hand, with the 2008 financial crisis, European debt problems and a China slowdown -- all of which have been bad news for Taiwans export-driven economy. The islands key technology sector has suffered from weak demand, particularly as China seeks to create its own homegrown tech industry. There are rocketing housing prices, an ageing population and low birth-rate to deal with. But the KMTs approach has also drawn criticism. For the past four years, Taiwans GDP growth averaged around 2.3 per cent annually, but peoples average income rose merely one percent, said Gordon Sun, head of the Macroeconomic Forecasting Centre at the Taiwan Institute of Economic Research. The fruits of economic growth were not shared by the general public. Taiwan has trimmed its growth forecast for 2016 to 2.32 percent, from an earlier 2.7 percent.