"Seventy eight percent of job opportunities in Taiwan are offered by the small and medium enterprises (SMEs), and they play an important role in our country's economic growth," Premier Sean Chen said this afternoon at a tea break with SME leaders. "I believe our SMEs' go-all-out, never-give-up spirit is Taiwan's most valuable asset."
The premier indicated that the government annually devotes NT$6-8 billion (US$202-270 million) of the budget to the Small and Medium Enterprise Credit Guarantee Fund. Although government finances are tight at the moment, other financial institutions are chipping in to assure the fund's total value will not decrease, he said. This fund signifies the government's commitment to SMEs, he said.
In recent years, the Ministry of Economic Affairs and other relevant agencies have devoted themselves to assisting the SMEs on improving the quality of financial reports and management, Chen pointed out. One result of this is that banks are now less likely to ask SMEs to provide additional documents when they apply for loans.
SMEs were Chen's clients when he worked in the lending business for a bank, and he has paid close attention to them ever since, he said. As premier, he often visits them on weekends to listen to their stories and experiences and ascertain their needs.
Premier Chen also expressed his appreciation to the organizers of the teatime meeting for offering the chance for the government and SMEs to talk. He pledged that the government would refer to the opinions and suggestions proposed in the event when making policies.
The Council for Economic Planning and Development (CEPD) gave a briefing on the Economic Power-Up Plan at the event and explained its measures to help SMEs develop. CEPD Deputy Minister Wu Ming-ji said that the average guaranty percentage of the Small and Medium Enterprise Credit Guarantee Fund has increased from 59.4 in 2008 to 75.6 in August of this year, a record rise of 16.2 percent which proves that the fund helps SMEs obtain loans effectively.
The tea break was co-hosted by the National Association of Small and Medium Enterprises and the Small and Medium Enterprise Foundation. Executive Yuan Spokesman Hu Yu-wei and Deputy Secretary-General Huang Min-kon, Minister of Economic Affairs Shih Yen-shiang and CEPD Deputy Minister Wu all accompanied the premier to the event.