Lien promises budget boost for

Vice President and KMT presidential candidate Lien Chan (連戰) yesterday unveiled details of his proposed high-tech development policy, including a plan to spend as much as NT$26 billion of the nation's budget on research and development.

"The government's budgeted fund for research and development for the high-technology sector will increase by 10 percent each year," Lien told a group of high-technology company representatives at the Nankang Industrial Park in Taipei yesterday.

Lien also promised that by 2002, 2.5 percent of the nation's GDP would be devoted to high-tech research and development -- which amounts to roughly NT$25 billion -- and the figure would increase to 3 percent by year 2010.

According to the Council for Economic Planning and Development (經建會), the annual GDP is roughly NT$10 trillion.

Specifically, Wang Chih-kang (王志剛), Minister of Economic Affairs, said that his agency would push for a budget increase from the NT$20 billion level next year.

"We are aiming for a budget of more than NT$26 billion next year," Wang said.

Wang also said that, in order to provide more land for high-tech industries, the government plans to make available between 20 and 30 industrial zones this year. The zones differ from industrial parks in that they do not provide companies with tax credits.

As for the existing vacancies at current industrial parks, Wang said the government is designing ways in which space can be leased.

"Most small and medium business can not afford to follow the current rules that only allow the buying" of space, Wang said. "Therefore, we are changing the rules to make leasing available, too."

Lien also said that the government would establish an industrial park in Kaohsiung as soon as possible, to establish both northern and southern technology centers. Currently, there is the Hsinchu Industrial Park -- which has an annual production value of NT$600 billion -- and the Tainan Industrial Park.

To address the problem of the talent shortage in the high-tech industry, Lien said the government would loosen regulations on high-tech workers coming from China for employment in Taiwan.

Potential immigrants would need to posses academic or professional experience in Europe or the US. However, details of the exact regulations are still pending, and it was not immediately clear whether rules would be substantially changed.

Wang said the government does plan to spend NT$30 million next year recruiting high-tech workers.

According to Lien's proposal, by year 2010, there will be 35 researchers for every 10,000 people in Taiwan, and 60 percent of the researchers would have a Master's degree or PhD.

Lien also said that within five years, Taiwan will become the world's largest chipmaker, and would rank number three in terms of semiconductor and information electronics production.