At a convention to solicit private participation in public infrastructure projects today, Premier Jiang Yi-huah stated that promoting investment in Taiwan is the government's most important policy at present.
"Only by devoting the capital we have to projects conducive to national development can we create a sustainable and prosperous Taiwan," he said.
"Economic development is the focus of this administration," the premier continued. "Under the current unideal economic conditions, abundant private capital should be channeled into public projects. This is the reason the Ministry of Finance (MOF) has hosted this convention."
The government has already mapped out plans for short-, mid- and long-term development, the premier pointed out. Mid- and long-term measures encompassing numerous aspects of the economy were set forward in the Economic Power-Up Plan presented by former premier Sean Chen in September 2012. Since those projects will take some time to bear fruit, however, last month the Cabinet unveiled an additional short-term economic stimulus plan whose measures can be immediately implemented and quickly boost the economy.
Among the aspects of this new stimulus plan are an early revision of the capital gains tax. The provision that the tax would only go into effect after the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) surpassed 8,500 points will be removed because it has had the unintended consequence of capping the growth of the TAIEX.
Additionally, this revision will also include new arrangements for companies ready to conduct initial public offerings, making sure that taxation fairness and economic growth will both be achieved, the premier said.
Another of the plan's initiatives is to attract private investment in public construction, particularly from insurance funds, whose total could be as high as NT$1.5 to 2 trillion (US$50 to 66 billion). An infusion of one-fifth or even one-tenth of that capital into public works would reap huge results for the nation's infrastructure, the premier says.
Hence, the Executive Yuan has asked the MOF and Financial Supervisory Commission to immediately amend regulations that impede relevant funding and requested the MOF to draw up projects that are suitable for private participation.
Today's convention offered 51 projects and over NT$180 billion (US$5.97) in financing opportunities, Jiang said. The flagship projects include an urban renewal project around the Nangang railway yard, with scale of investment estimated at NT$26.5 billion ($879 million); the renovation of Keelung Railway Station as well as West Piers 2 and 3, at NT$12.8 billion (US$424 million); and the creation, development and management of a special industrial district at Miaoli High Speed Rail station, at NT$10 billion (US$332 million). Financing options include build-operate-transfer, urban renewal methods and sales of superficies rights.
The premier expressed hope that all convention participants would find appropriate projects on which to bid and that they would invest in Taiwan together with the government to realize these important plans.