Accelerating investment in Taiwan

  • Date: 2017-10-12

I. Background

Premier Lai Ching-te on September 27 of this year convened the first in a series of interministerial meetings aimed at accelerating investment in Taiwan by having the government help the private sector remove investment barriers, as part of a larger effort to build economic momentum and create a healthy environment for investment. Continuing interministerial meetings are scheduled to discuss issues related to the transformational “five plus two” innovative industries policy, the plan to transition to new sources of energy to ensure a steady supply of power, and other programs that will bolster the economy to improve people’s daily lives and lay down a new foundation for national development. Personally chaired by Premier Lai, this series of meetings attests to the government’s resolve to boost Taiwan’s economy.

II. Government will lead the way in public-private partnership to accelerate investment in Taiwan

A. Push for greater private-sector participation in public works

The government will promote public works projects to improve the investment environment in Taiwan, build momentum towards greater employment and economic growth, achieve balanced regional development and improve the overall quality of life. In order to speed the execution of public construction projects in the future, the Public Construction Commission will call monthly meetings of a supervisory board to report on progress and assist in resolving project-related difficulties, as well as to research and implement mechanisms for re-prioritizing public works budgets and withdrawing from projects altogether.

As for encouraging private-sector participation in public construction projects, the government will issue public announcements of new business opportunities, hold open forums and continue to improve rules governing such participation to attract private capital.

B. Increase investment by state-owned corporations and publicly invested enterprises

State-owned corporations and publicly invested enterprises will formulate long-term, proactive investment plans for retrofitting electricity generation facilities, manufacturing renewable energy equipment, building electric grids, operating natural gas transfer stations, modernizing petroleum refineries, and developing new sources of water. An alert mechanism will also be devised to flag and quickly resolve issues as they arise, thereby enabling projects to be completed on time and on spec.

C. Improve the efficiency and capabilities of single-window service for business investment

The government will provide assistance and service to both domestic and foreign companies throughout the entire lifetime of an investment, ensuring smooth and rapid transition from first funding to project completion to ongoing operations. Since 2016, 762 investment projects have been registered, with a total value of over NT$2 trillion (US$66.2 billion). For enterprises engaged in one of the government’s “five plus two” innovative industries, the single-window service center will provide extra services, such as a dedicated manager to provide information and assist with resolving issues. Future improvements to the single-window service will include enhanced capabilities to assist foreign investors.

III. Conclusion

Building Taiwan’s economy is the number-one priority and a critical component of the Executive Yuan’s overall work. The government is pivoting from a passive approach to an active service model to assist businesses and encourage both domestic and international investors to commit capital. The Executive Yuan is actively working to address business needs for available land, sufficient electrical power, guaranteed water supplies, adequate labor and suitable talent, as well as providing attractive investment opportunities, including as part of the Forward-looking Infrastructure Development Program and the “five plus two” innovative industries initiative. These efforts and the investment that follows will energize national economic development and help build a better Taiwan.