The Executive Yuan today approved the first phase of the Council for Economic Planning and Development's (CEPD) plan for establishing free economic pilot zones (FEPZs) in Taiwan.
Premier Jiang Yi-huah said the zones will help propel economic growth and accelerate the nation's integration into the regional economy. An economic priority for the government and part of President Ma Ying-jeou's vision for a golden decade, the project calls for full support of all related agencies, the premier added.
Citing liberalization, market opening and innovation as keys to economic development, the premier said the government will deregulate the flow of goods, talent and capital in the FEPZs. This will help develop forward-looking high-end industries, improve business efficiency, and attract investment from home and abroad.
Jiang said the FEPZs will be developed in two phases. The first phase kicked off today with the Executive Yuan's approval and will ease various administrative rules. The second phase, focusing on tax incentives, will have to wait until the Legislative Yuan passes a special law governing the zones that is being drafted by the CEPD, Ministry of Economic Affairs and other agencies.
To generate wider economic benefits, the zones will employ the "Inside the Border but Outside of Customs" and "Store in the Front, Factory in the Back" business models to link with nearby industrial parks and local businesses. This strategy makes it possible for places like New Taipei City and Changhua County to benefit from the business opportunities that come from having an FEPZ in the neighborhood.
As for Tainan City Government's bid to have Anping Port designated as an FEPZ, the premier said the harbor will qualify as an FEPZ after the Executive Yuan grants it the status of a free trade port. He added that any eligible sites or high-potential niche industries are welcome to apply for FEPZ status.
In the first phase, the FEPZs will focus on but not be limited to intelligent logistics, international medical services, value-added agriculture and industrial cooperation, said Premier Jiang. Any high-potential industry suitable for liberalization and internationalization may also be considered for inclusion inside the FEPZs. As an example, the CEPD and Financial Supervisory Commission incorporated financial services into the first phase operations. Premier Jiang hopes other agencies will take the initiative to identify more suitable industries.
Government agencies should send their suggestions on any related action plans or laws to the FEPZ task force convened by Vice Premier Mao Chi-kuo, said Premier Jiang.