This study analyze funding problems of various manufacturing sectors, including different kinds of industries such as hi-tech, overseas direct investment abroad, export-oriented, and small- and medium-sized enterprises. The demand for different types of funding in different stages of growth of the firms is scrutinized vis-a-vis the supply of funds by current financial institution and various government initiatives. Although the Taiwanese economy has enjoyed surplus savings for more than two decades, some sectors such as hi-tech industries and small- and medium-sized businesses find it difficult to access funding given the current framework of the financial system. Policy recommendations are proposed to improve the traditional conduits of flows of funds to better serve the new demand of ever-transforming manufacturing sectors in Taiwan.
