Taiwan pushes deregulation to remove barriers to investment

  • Date: 2017-11-03

I. Background

Countries around the world understand that legal system reforms are an important aspect of government work to spur economic development and raise national competiveness unfettered by over-restrictive regulation.

Taiwan is no different. The task of speeding deregulation to improve flexibility and responsiveness cannot be delayed. The government is moving forward with deregulation as a primary objective. Operating under the principles of seeking advantage, simplifying administration and providing convenience for the public, the government has turned away from a former approach focused on restrictions and prohibitions toward a more accommodating review of current investment regulations, and a loosening of interpretative rules, administrative regulations, and legal orders. Starting with interpretative rules issued by supervisory agencies, the government will begin to build a more convenient, efficient and business-friendly legal environment.

II. Where does deregulation begin?

The work of deregulation will focus on strengthening self-evaluation mechanisms at agencies and ministries throughout the government, and in the following areas, specifically:

A. Administrative procedures will be simplified (for example, application and screening processes).

B. Supervisory measures outside of traditional controls will be adopted for startups and other new modes of business not prohibited or restricted by existing laws or regulations, in order to allow for self-regulation and market forces to create a wider arena for advantageous development.

C. With respect to interpretative rules issued by administrative agencies, cases should be evaluated on an individual basis with consideration given to unique contexts and differences, rather than having previously interpreted rules applied uniformly.

D. Interpretative rules that give rise to excessive or overly restrictive regulations that exceed the authority granted under the parent law should be rescinded.

E. Where ministries and agencies have exceeded the regulatory scope authorized by law in establishing additional related points of supervision called for under law, these ministries and agencies will re-evaluate and remove provisions running counter to the legislative purpose.

F. Greater flexibility will be sought in rule-making and regulation established by administrative agencies in the course of implementing legislation.

III. Conclusion

Taiwan has arrived at a critical point in its industrial transformation and push to raise national competitiveness. The government will take up the work of deregulation with dedication and purpose in order to reduce legal compliance costs, remove barriers to investment and bring about improvements that the people of Taiwan can see and enjoy. Beginning with reviews at all ministries and agencies, where supervisory bodies are found to have adopted regulatory interpretations that go beyond the scope required or allowed by parent legislation, changes will be made in order to remove regulatory barriers to corporate investment, building a healthy investment environment and encouraging enterprises to take an even greater stake in the future of Taiwan.