Taiwan aims to increase foreign direct investment (FDI) by 10 percent to US$8.5 billion this year to spur the economy amid a global recession, Minister of Economic Affairs Yiin Chii-ming (尹啟銘) said at a media briefing yesterday.
International companies such as 3M and others promised to invest US$2 billion in the country at a global business forum in October.
Yiin said the Ministry would employ a two-pronged strategy to boost this year’s GDP by increasing FDI and enhancing domestic investment and consumption.
Srategic alliances with international companies in the US, Japan and Europe will be increased by encouraging companies to set up satellite offices and research and development (R&D) centers, he said.
The ministry anticipates more than NT$35 billion (US$1.06 billion) in investment flow-back by repatriating China-based Taiwanese businesses through the implementation of tax incentives, promotional leases and designated commerce areas for enhanced sourcing and operational flow.
Taiwanese businesses in China have pledged more than NT$21.2 billion in repatriation investment by the end of November, the ministry said.
For the nation’s 1.27 million small and medium-sized enterprises (SME), the ministry will provide NT$300 billion in loans this year. Non-SMEs can expect NT$600 billion in credit made available through the end of next year, it said.
The ministry is also deploying NT$40 billion for the development of nine industrial parks and the “006688” industrial park campaign, anticipating more than 110 company participants, NT$48 billion in annual production and 8,000 new jobs.
For retail outlets, the government will provide monetary subsidies for newly opened stores while waiving requirements on statutory cash reserves and centralizing the issuance of licenses.
The combined efforts will bring in NT$12 billion in retail investments, 4,500 new chain stores and create more than 30,000 jobs this year alone, the ministry estimated.
Other policies include raising government subsidies for domestic R&D from 40 percent to 50 percent, with an annual budget of NT$106 million; increasing credit allowance on exports and risk management insurance on imports to maintain the country’s export volume; and other energy conservation, waterway redirection and government enterprise restructuring plans.
When confronted with a recent poll showing only 40 percent support, Yiin said that as a government official he did not care for applause, but only for the long-term good of the country.
Yiin said that reaching NT$985 billion domestic investment in November was a milestone, and that the ministry expected last year’s annual figure to meet its goal of NT$1.8 trillion.