Building on the existing Micro-, Small, and Medium-sized Enterprise (MSME) Diversified Revitalization and Development Plan, the government has launched an enhanced program to continue supporting and growing MSMEs. The new program extends government backing to a broader range of businesses and provides more in-depth assistance, while also updating the Act for Development of Small and Medium Enterprises to cover the upgrading and transformation of MSMEs, thereby incorporating the new policy direction into the legal framework. This initiative also calls for an additional investment of NT$100 billion (approximately US$3.2 billion) over eight years to ensure stable, long-term funding for the upgrading and transformation of MSMEs.
Key points
■ Refine legal framework: Update the Act for Development of Small and Medium Enterprises to enhance statutory support for MSME development.
■ Broaden scope of government backing: Extend assistance to commercial districts, traditional markets, local specialty industries, agribusinesses, startups and the tourism sector. Improve the physical infrastructure and consumer environments of commercial districts, traditional markets and night markets, while helping individual vendors and stalls to upgrade their operations.
■ Enhance support strategies: Continue assisting MSMEs with digital transformation, net-zero transition and channel development, and fostering collaboration in which benchmark firms, industry clusters and large enterprises help smaller, traditional businesses integrate into high-tech supply chains. Establish a stronger legal foundation and commit the resources needed to build a thriving startup ecosystem.
■ Strengthen assistance measures: Keep expanding access to inclusive financing to help MSMEs obtain the funding needed for digital transformation. Raise credit guarantee limits and coverage ratios for MSMEs that voluntarily raise employee wages. Offer tax incentives to MSMEs that hire more young, middle-aged or older workers to promote employment and inclusive growth.