ROC Cabinet announces economic stimulus plan

2015/08/24

A raft of short-term stimulus measures was announced Aug. 20 by the ROC Cabinet, aiming to strengthen Taiwan’s industrial sector and promote economic growth.

Heading the package are expansionary fiscal and loose monetary policies, as well as an easing of regulations for the stock market and tourism industry. In addition, the Productivity 4.0 program—originally set for implementation next year—is brought forward to October.

Premier Mao Chi-kuo said the measures are necessary given lackluster projections for the global economy and a rapidly changing industrial environment. “With expanded investment in infrastructure construction and improvement for business innovations, we expect to quickly enhance Taiwan’s overall competitiveness going forward.”

According to Mao, NT$3.5 billion (US$107.3 million) will be spent by year-end 2016 to implement the Productivity 4.0 program. “The sectors identified for strategic promotion under the initiative are agriculture, food manufacturing, information technology, logistics, machinery equipment, retailing, textile and transportation.

“The government will also assist 100,000 small and medium enterprises in these sectors with upgrading their value-added capabilities.”

Facilitating Taiwan’s industrial upgrade through securing core technologies is the ultimate goal of the program, as this should lay the foundations for the country to remain at the forefront amid intensifying global competition, Mao added.

Echoing the premier’s remarks, National Development Council Minister Duh Tyzz-jiun said state-run banks will boost lending by NT$540 billion by the end of next year, and the National Development Fund will free up an additional NT$20 billion.

“We expect these steps to spur private-sector investments valued at over NT$150 billion and add heft to Productivity 4.0, as well as the electric vehicles and green energy sectors.”

The tourism business will also get a shot in the arm, Duh said. “The government is mulling waiving visa fees for high-end Southeast Asian tourist groups. In addition, the daily cap for individual mainland Chinese tourists visiting Taiwan proper and outlying islands is likely to be raised to 5,000 and 1,000, respectively.

“All up, this is expected to add a total of 220,000 tourists and boost revenues by NT$10.75 billion by year-end.”

According to the Cabinet, the scheme is set to kick off in September, with more flexible fiscal and monetary policies in the pipeline as Taiwan’s economy picks up steam.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=234052&ctNode=413)