Wed, Jul 10, 2019 - Page 3 News List

Industries are set to benefit from ‘four trillions,’ Kung says

By Sean Lin  /  Staff reporter

Minister Without Portfolio Kung Ming-hsin (龔明鑫) yesterday said that the nation’s industries are expected to benefit from “four trillions” in the buildup to 2025, which should spur economic growth.

Kung said the US-China trade dispute is not likely to end soon, but presents Taiwan with challenges and opportunities.

The first trillion would be comprised of investment by local firms returning from China amid the trade dispute, which is currently at NT$430 billion (US$13.79 billion) and is expected to reach NT$600 billion to NT$700 billion later this year and surpass the NT$1 trillion mark in 2021 or 2022, he said.

The second trillion would comprise the fund the government is set to budget for the second phase of the Forward-looking Infrastructure Development Program in the coming fiscal year, which totals about NT$400 billion, coupled with an estimated increase in remittances on the back of the passage of the Act on the Use and Taxation on the Inward Remittance of Overseas Funds (境外資金匯回管理運用及課稅條例), he said.

The act is valid for two years and analysts have said that if things go well, it would be able to attract between NT$900 billion and NT$1 trillion of funds held overseas, and between NT$100 billion and NT$200 billion in the worst-case scenario, he said.

The estimate is derived using a conservative estimate of NT$500 billion in remittances, which in conjunction with the fund for the infrastructure program should reach NT$1 trillion, he added.

The third trillion would be contributed by investment in offshore wind farms, which is expected to reach NT$1 trillion, in addition to the creation of about 20,000 new jobs, Kung said.

The fourth trillion would be jointly provided by the semiconductor manufacturing industry and Internet of Things applications, he said.

The four trillions would provide the economy with a solid foundation for the next 20 years, and provide the opportunities and momentum needed to sustain growth amid the challenges posed by the trade dispute, he added.

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