The Ministry of Economic Affairs yesterday proposed reducing rent by 20 percent for manufacturers operating production facilities in the nation’s industrial parks and export processing zones as it seeks to avoid furloughs and layoffs due to economic turmoil stirred up by the COVID-19 pandemic.
“We would offer a 20 percent cut in payments for a total of six months,” Vice Minister of Economic Affairs Lin Chuan-neng (林全能) told a news conference at the Executive Yuan in Taipei, adding that the reduction in rent would also be applicable to companies leasing land from state-owned enterprises, particularly Taiwan Sugar Corp (台糖).
Companies “could choose between delaying payments for one year, with the amount divided over the following three years, or the 20 percent reduction,” Lin said.
Photo: CNA
The ministry is also providing a 50 percent reduction in maintenance fees for public infrastructure, as well as extending payment periods for the treatment of industrial wastewater.
As part of a broader economic stimulus program, the ministry is subsidizing up to 40 percent of employee wages for companies in the manufacturing and service sectors that have posted a 50 percent drop in sales due to the pandemic, and slashing utility rates at Taiwan Power Co (台電) and Taiwan Water Corp (台灣自來水).
The 50 percent threshold could be further lowered to 30 percent for certain industries, Minister of Economic Affairs Shen Jong-chin (沈榮津) told reporters yesterday following a meeting with local businesses.
“We need to be flexible... The Industrial Development Bureau is to hold discussions with labor unions to reach common ground,” Shen said.
The ministry yesterday also approved applications from 11 small and medium-sized enterprises (SMEs) to join a government program.
Specializing in various industries, including machinery equipment, metal components and tools, as well as imported vehicles sales, Cheng Yu Precision Industry Co Ltd (承育精密), Amita Technologies Inc (有量科技), Jing Fong Industry Co Ltd (璟鋒工業), Yung Chang Co Ltd (泳常公司), Chao Chiun Mechanical Industry Co Ltd (喬群機械), Finewit Precision Industrial Co Ltd (泓憶精密), Ison Corp (光感動公司), Kuan Yu Advanced Composite Enterprise Co Ltd (冠羿企業), Changqing Motor Co Ltd (長慶汽車), Huanqiu Air Quality monitoring Co Ltd (環球車輛檢測) and an unnamed gear manufacturer are to invest a total of NT$1.9 billion (US$63.1 million).
The program, which launched in July last year amid rising trade tensions between the US and China, has to attracted more than NT$88.8 billion in investment from 206 SMEs, ministry data showed.
Separately yesterday, the central bank extended its NT$200 billion relief program for SMEs that have been affected by the pandemic to include self-employed workers.
The program provides loans of up to NT$500,000 with an interest rate of less than 1 percent to small business whose sales have fallen to less than NT$200,000 per month.
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