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Bonus floor space incentives encourage vertical expansion at urban industrial parks


Premier Lai Ching-te said Thursday that a Ministry of Economic Affairs (MOEA) incentive plan for the vertical development of urban industrial parks can, in a short period of time, put out additional urban floor space for industrial use, enhance land utilization efficiency, spur industrial innovation and energy conservation, and attract more investments in Taiwan from domestic and foreign companies.

The initiative is one of the government's key strategies for addressing the land shortage problem facing industries in Taiwan, the premier said at the Cabinet's weekly meeting. Offering bonus floor space incentives commonly used in urbanization projects, the plan will accelerate urban renewal and vertical expansion in industrial parks while encouraging park firms to increase investments and better manage energy resources.

According to the MOEA, park companies making additional investments or adopting green energy practices may be rewarded with up to 20 percent additional allowed floor area. Companies that donate industrial space or monetary contributions may also receive up to an additional 30 percent floor-area allowance (including donated space) beyond the industrial park's statutory limits. Combined, these measures can provide up to 50 percent additional floor area (including donated space) beyond the limits established by each park.

Assuming companies that receive the floor area bonus increase their total floor area ratio to 300 percent on average, the MOEA estimates the companies can enjoy 150 hectares extra floor space, accommodate 13,927 more employees, and generate an additional NT$84.3 billion (US$2.9 billion) in output value.

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