Taiwan working to improve investment climate

  • Date: 2016-08-25
  • Source: Office of Information Services, Executive Yuan

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.