Inadequate human resources and infrastructure policies are among the key problems for Taiwan's economic development, according to the annual White Paper of the American Chamber of Commerce in Taipei.
Health care, financial reform and direct links with China are also on the list of items Taiwan needs to improve to remain competitive and attractive to foreign business.
'The economy is really modernising and what that means is a shift from manufacturing to services ... but there are whole areas where services are lagging,' said Richard Vuylsteke, the executive director of AmCham Taipei.
The top concern for multinational chief executives in Taiwan is the excessive bureaucracy involved in hiring foreign staff. The restrictive environment is even worse when it comes to mainlanders.
'Virtually all multinational companies now have employees who are PRC nationals; for such companies it is too cumbersome, if not risky, to plan events in Taiwan that require participation by staff members with Chinese passports,' AmCham says in its 48-page paper.
The restrictions on hiring mainlanders compounds the problems caused by the lack of direct transport between Taiwan and China.
