Taiwan's ailing economy major challenge for leadership hopefuls

TAIPEI: As baker Lin Hsiao-an sits hoping for more customers to save her beloved but shrinking business she rails against Taiwan's leaders for the slowing economy that has turned many angry voters against the government ahead of presidential elections.

Lin, 36, opened her Taipei cake shop 10 years ago with high hopes for her creative designs. But after a promising start she was forced to lay off four staff and relocate to her apartment to save on rent. Now she bakes to order from home.

"My business is getting worse each year. In the past people didn't hesitate to order a cake that cost Tw$2,000 ($64) or more, but now most people order a cake under Tw$1,000 and they want discounts."

Voters are bitterly disappointed that the economic prosperity promised by President Ma Ying-jeou when he took office in 2008 has not materialised.

A stagnant economy, as well as fears over China's growing influence, a string of food scandals and soaring housing prices saw the ruling Kuomintang party routed in local elections last month seen as a barometer for the 2016 presidential race.

Ma had pledged that improved links with China would spur growth, but many feel that new trade deals have only served big business, with ordinary citizens left out of pocket.

"I'm going to close my business because it is getting worse and I can barely make ends meet," said Lin.

"It's a pity that I have to give up something I've worked 10 years for, but I just have to be realistic. I have to change career while I still can."

Lin blames the government for her woes, as a lack of disposable income, rising prices of raw ingredients and food safety crises have left her business reeling.

The health minister resigned in September after tonnes of food products made with tainted cooking oil had to be pulled from shop shelves.

With political parties formulating their campaigns ahead of the vote resurrecting the hope of prosperity is key.

Taiwan was once one of the most dynamic economies in Asia but its power has largely been absorbed by rival China, which still claims the island as part of its territory.