Minister promises incentives for overseas Taiwanese businesses

Minister of Economic Affairs Ho Mei-yueh (何美玥) said yesterday in Manila that the government will continue to help Taiwanese manufacturers operating in areas other than China develop industrial clusters to ensure more efficient business operations.

Ho, who arrived in Manila on Wednesday for a three-day fact-finding visit at the head of a 53-member delegation, made the remarks while meeting with a group of Taiwanese investors.

Citing the Subic Bay Industrial Park as an example, Ho said the government has offered various incentives to those wishing to set up production lines in the facility to make it an industrial cluster.

Industrial clustering is one of the most efficient strategies to help Taiwanese businesspeople operating abroad to expand their business operations, Ho said, adding that such industrial clusters will maintain close relations with Taiwan.

Many Taiwanese enterprises have established operations in the Subic Bay Industrial Park in support of the "go south" policy launched by the government to encourage Taiwanese manufacturers to invest in Southeast Asian nations. Over half of the industrial factories in the park are founded by Taiwanese companies, including Acer Inc, Taiwan Hitachi and Teco Electric and Machinery Co (東元電機).

Taiwanese businesses investing in Subic Bay enjoy many privileges, including a 5 percent tax on gross income, no import or export tariffs, and no foreign currency restrictions, according to the Subic Bay management authorities.

Shortly after her arrival in Manila, Ho held talks with Philippine Trade and Industry Secretary Juan Santos to exchange opinions on Taiwan's investment and future cooperation between the two nations in the economic and trade fields.

During the meeting, the two sides reached an agreement to each set up a task force to map out a cooperation program for Taiwan's export processing zones and the Philippines' Subic Bay Industrial Park.