The government will carry on the ideals of the free economic pilot zones (FEPZ) program as it continues to loosen regulations, Premier Mao Chi-kuo said Wednesday after hearing the National Development Council's (NDC) report on the outcomes of the first-phase of the FEPZ plan.
Executive Yuan Spokesperson Sun Lih-chyun indicated that the FEPZ goals for 2015 appear more conservative as compared with 2014. As lawmakers have yet to reach a consensus on the special act governing the FEPZs, agencies will take a pragmatic approach to the tasks ahead.
According to the NDC, 41 administrative regulations had been eased since the plan was launched in August 2013. Of the 47 companies that have set up shop inside the zones, 16 are located in free trade ports and 31 in the Pingtung Agricultural Biotechnology Park (PABP), injecting a total investment of NT$9.8 billion (US$321 million).
Among the five fields targeted for priority development in the FEPZs, financial services delivered the best performance, with offshore banking units reaping pretax revenues of NT$85.3 billion (US$2.8 billion) in 2014, a jump of 52.8 percent year-on-year. Moreover, the Financial Supervisory Commission had issued 17 licenses to allow offshore securities units to expand their business in the zones. With financial services growing rapidly, the industry employed an additional 27,000 persons in 2014.
The international medical service centers established in Taiwan's four international airports late 2013 had welcomed 115,000 visitors as of the end of 2014. From January to November 2014, some 230,000 people came to Taiwan for medical treatments, creating output value of more than NT$12.7 billion (US$418.2 million).
As for value-added agriculture, a cloud-based platform and an Asia-Pacific Operation Center for Aquaculture were launched last November. With quarantine and custom clearance agencies stationed in the FEPZs, the platform has spurred the development of Taiwan's ornamental aquaculture industry.
In education innovation, six cases of collaboration between domestic and foreign universities were approved, allowing them to jointly establish special degree programs or professional programs and courses.
In 2015, the government's goal is to see 10 to 12 enterprises move into the free trade ports while launching formal operations for express shipping areas. Some 270,000 visitors are expected to come to Taiwan for medical services, generating output value of NT$15 billion (US$483.87 million). Meanwhile, the Council of Agriculture (COA) will continue improving the PABP's services and promoting the park's expansion.
At Wednesday's meeting, officials also discussed value-added agriculture issues and concluded that Taiwan should process imported agricultural materials and then export them. This will not only minimize impacts on the domestic market after the country signs free trade agreements to imports foreign agricultural products, but also help Taiwan's produce processing industry tap into emerging markets. Premier Mao instructed the COA to strengthen communication with all parties and promote the measures proactively.
Also this year, Taiwan's insurance companies will be allowed to set up offshore insurance units, showing the government's determination to liberalize financial services. As for education innovation, the goal is to promote six to 10 cases of cooperation between domestic and foreign universities for degree or professional programs.