With domestic investments on the decline, the government must improve the overall environment by investing more in public and state-owned enterprises and spurring private-sector involvement, Premier Lin Chuan said at today’s Cabinet meeting.
After hearing the National Development Council’s report on investment expansion programs, the premier said that attracting and retaining talent is an important part of improving the private investment environment. He directed the council to submit related program proposals for the Cabinet’s discussion.
The council reported that Taiwan’s economic growth is slowing down primarily due to the global economic cycle and domestic socioeconomic restructuring. In response, the government’s strategies are to improve the investment climate, spur private investment, increase investments in state-operated and publicly owned businesses, and strengthen digital innovation capabilities. These strategies aim to blunt the impact of global economic weakness and stimulate the economy over the short term, while building next-generation industries and strengthening overall growth potential over the medium term.
To improve the investment climate, the government will make land in industrial zones and science parks available for lease rather than sale, and provide qualified companies with a two-year rent-free period. Measures will be taken to stabilize industrial zone land prices while curbing speculation. Land lease prices in science parks are also expected to be lowered by 8.99 percent on average.
To spur private investment, the council will set up an industrial innovation and transformation fund on the scale of NT$100 billion (US$3.1 billion). Resources from the National Development Fund, state-owned enterprises and the private sector will also be combined to form a national-level investment company and drive investments in innovative industries.
As for state-operated and publicly owned businesses, the government plans to invest a total of NT$340 billion (US$10.6 billion) in basic infrastructure and emerging industries.