Taiwan promotes industrial transformation and innovation

2016/05/30

Policies promoting industrial transformation, upgrading and innovation, key planks in President Tsai Ing-wen’s New Model for Economic Development for Taiwan, and an initiative to boost investment were unveiled by the Ministry of Economic Affairs and National Development Council May 25 in Taipei City respectively.

“Structural transformation and sustainable development are to be achieved through innovation, employment and distribution, core values of New Model for Economic Development for Taiwan,” MOEA Minister Lee Chih-kung said. “They are necessary if we are to engineer a rebound in domestic demand and export growth.”

The four measures adopted by MOEA are encouraging industrial innovation, promoting sustainable energy, expanding trade and exports, and fostering a solid investment environment in Taiwan.

According to Lee, encouraging industrial innovation will focus on seven industries: biopharmaceuticals, defense technology and precision machinery, information and communications technology, innovative agriculture, new energy and new petrochemicals.

Lee also said one of the pillars in promoting sustainable energy is to make Taiwan a nuclear-free homeland by 2025. “Electricity generated from renewable energy will be increased from the current 3 percent to 20 percent by 2025, he said, adding that the generation efficiency of Taiwan’s 33 thermal power plants will lift from 35 percent to 45 percent in the near future.

Further improvements include establishing a liquefied natural gas plant at Guanyin District in Taoyuan City by 2023, Lee said, bringing the number of such facilities in Taiwan to three. The others are in Guanyin’s Datan Village and Yongan District in Kaohsiung City, southern Taiwan.

In addition, Lee said the MOEA will actively participate in regional trade and economic groupings like Trans-Pacific Partnership and Regional Comprehensive Economic Partnership to expand emerging markets and also reforming regulations to build a positive business environment.

Equally important is investment promotion, as underscored by NDC Minister Chen Tain-jy’s announcement of plans for an NT$100 billion (US$30.6 billion) equity fund supporting mainly small and medium enterprises.

“The fund will assist startups, smooth the way for SME mergers and acquisitions—as well as their upgrades—and attract new investment for such firms.”

According to Chen, a national trade and investment company with capital of NT$10 billion will also be launched by year-end as a way of creating and coordinating investment opportunities for local outfits from home and abroad.

The investment company is part of Tsai’s New Southbound Policy, which seeks to elevate the scope and diversity of Taiwan's export to South and Southeast Asia and minimize overreliance on any single market. The policy is seen by the government as the best way for Taiwan to overcome current economic challenges and stimulate growth momentum.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=245089&ctNode=2194&mp=9)