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Resignation of 'premier' sets up big reshuffle

(China Daily)
Updated: 2009-09-08 06:46

Ma's spokesman Wang Yu-chi said Chu, who has a background in finance and business management, will oversee the island's economic development, which has been hit hard by the global financial crisis.

Joseph Lau, an economist with Credit Suisse, said the reshuffle's impact on cross-Straits relations "is probably minimal".

"Any form of political instability is negative, but the KMT is so dominant, right now, with no major elections upcoming, so I don't see things changing for a while yet," he said.

Mainland experts Monday hailed the change as a move to show Ma's firm determination and respect for public opinion.

"Currently, this is the best choice for Ma. He does not have an alternative under such heavy criticism," Wu Nengyuan, director of the Institute of Taiwan Studies at the Fujian Academy of Social Sciences, told China Daily.

"Ma should use the opportunity to tell Taiwan's people that all things are starting anew," Wu Nengyuan said.

The "Cabinet" change is expected to boost Ma's popularity in the short-term. In the long-term, it will be crucial for the new executive team to take responsibility and meet people's needs, he said.

Wang Hailiang, a Shanghai-based expert on Taiwan studies, said the reshuffle was a little "unexpected" but represents both "wisdom" and "determination".

"Wu Den-yih is Taiwan-born, and has rich executive experience, which makes him an ideal person to replace Liu. He will be warmly accepted by the general public," he said.

Wang also said Liu's resignation paved the way for a "thorough reshuffle" of the executive team, which is what the public wants.

He said the reshuffle will also mute criticism from the opposition Democratic Progressive Party.

Opinion polls conducted in the wake of Typhoon Morakot showed support for Ma and Liu had plunged below 20 percent - a drop of between 20 and 30 points in a matter of months.

Initially, Ma had firmly backed Liu, despite claims that the "Cabinet" failed to respond quickly enough to the tragedy.

Taiwan's "defence minister" and other officials offered to resign last month. Their offers are still pending.

"People were expecting change, they were prepared for change," said Andrew Deng, assistant vice president at Taiwan International Securities Corp.

"What's important now is who's going to be steering the wheel for the island's economy. Investors will remain cautious before the government announces its new cabinet members," Deng said.

AP and Reuters contributed to the story

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