At the Cabinet meeting today, Premier Jiang Yi-huah was briefed by the Ministry of Economic Affairs (MOEA) on the progress of the Project to Strengthen Investment in Strategic Service Industries.
The premier remarked that investments are a major driver of long-term economic growth. In addition to government investments, the project has directed venture capital and private funding toward strategic service industries. Already, 23 businesses have received funding under the project. The premier asked the MOEA to continue promoting the strategic service industries and to incorporate other high-potential industries such as tourism, personnel services and franchise stores. Rolling reviews should also be conducted.
The premier further stated that aside from injecting capital into businesses, the project can also borrow the experiences of successful entrepreneurs to advise funded businesses on strengthening their operation structures and developing distribution channels. In the future the project could also link with the business guidance resources of other ministries, such as the National Development Fund's Angel Investor Program and the Small and Medium Enterprise (SME) Credit Guarantee Fund. This will bolster the environment for industrial development and maximize the government's industrial policy effects, thus achieving the objectives of creating jobs, exporting services, and add value to the service industry via technology application.
The premier pointed out that recently there have been heated discussions on the cross-strait trade in services agreement, and the general public is eager to know how the government will help the service industry. By explaining the project and citing success cases, the government can help people understand how it has not only extended a hand to large companies such as information communications technology enterprises, but has also done much to assist the SMEs. Currently a number of service companies have been able to enlarge their business scopes thanks to government funding and private-sector investor capital. Jiang asked the MOEA to continue publicizing the program and its successful examples, so that the public will give their support and be encouraged to establish startups.
The MOEA stated that the project's available capital is NT$10 billion (US$330 million), which will be invested exclusively on domestic service industries over 10 years. This is expected to spur private investment of NT$11 billion in 300 domestic service companies and create 12,000 jobs. As of March 2014, the project's overall investments amounted to about NT$2.8 billion, which is projected to increase NT$2.1 billion in export capital over three years and generate production value of NT$2.3 billion in the domestic service industry.
The MOEA stated that it is focusing on the nine strategic service industries of information technology service, Chinese-language e-commerce, digital content, cloud computing, exhibition industry, Taiwanese cuisine, international logistics, elderly care and design; and will incorporate one other high-potential service industry into the program.