Taiwan steps up measures to woo Taiwanese firms abroad

  • Date: 2018-11-29
  • Source: Department of Information Services, Executive Yuan

At the Cabinet’s weekly meeting Thursday, Premier Lai Ching-te said that the government will soon launch an action plan to encourage outstanding Taiwanese companies abroad to return and invest in Taiwan, where they can aid in the upgrade and transformation of industry and make the island a key hub in the global industrial supply chain.

In remarks following a briefing by the National Development Council (NDC), the premier said the plan will focus on meeting the companies’ needs, providing customized single-window service, and simplifying administrative processes. Specific strategies include providing industrial-use land, expanding the pool of industrial talent, facilitating swift access to financing, ensuring reliable water and electricity supplies, and offering dedicated tax services.

As the trade war continues to simmer between the U.S. and China, the coming three years will offer a prime opportunity to bring Taiwanese firms back from China, Premier Lai continued. To ensure that the companies indeed contribute to Taiwan’s economic growth, the government must review investment applications with strict adherence to regulations while adopting innovative and forward-thinking approaches. Government agencies should also identify high-potential companies and steer investment dollars into key sectors to create a chain of industries that promotes innovative upgrading and strengthens Taiwan’s economic power.

According to the NDC, the action plan will begin on January 1, 2019 and run for a period of three years. With respect to industrial land, the plan is expected to make available an additional 873 hectares from 2019 through 2021, with land resources to be inventoried on a rolling basis. In terms of financing assistance, the Executive Yuan’s National Development Fund will provide NT$20 billion (US$647 million) worth of loans to be released through bank lending programs. The loans may be used by companies to construct factories and facilities, purchase machinery and equipment, or support business operations over the medium term. Interest rates will not exceed the post office’s floating two-year time deposit rate plus 0.5 percentage point.