Taiwan Plans To Boost Drug Industry

In Taiwan, the Ministry of Economic Affairs has announced that thepharmaceutical sector is to be designated one of the island's 10 "new star" industries, with the goal of increasing the industry's production from NT$40 billion ($1.44 billion) currently to NT$110 billion ($3.96 billion) by 2002.

In a new report, the Ministry envisages that production will be increased mainly as a result of the creation of new business alliances and development foundations, although it notes that to achieve this a number of serious problems will have to be overcome, reports The China Post. For example, a recent survey found that more than 70% of foreign investors now present in Taiwan are pessimistic about prospects there, and the Ministry also noted that an increasing number of foreign pharmaceutical companies are relocating their production facilities to mainland China and countries in Southeast Asia. Competition for Taiwan-produced products is expected to intensify strongly after the country joins the World Trade Organization, and the Ministry report fears that against this background, the country could eventually lose out altogether.

Sector Consolidation Forecast There are now around 530 pharmaceutical production facilities on the island, although 30% of them have operating capital under NT$100 million. Moreover, around 800 of the 1,000 or so ingredients used by these plants in drug manufacturing have to be imported, it says.