Minister of Economic Affairs Kung Ming-hsin (龔明鑫) yesterday said the government would stand by the machine tool and machinery industries, as they are the backbone of the domestic manufacturing industry, and vowed not to withdraw financial aid when needed.
The two industries are facing headwinds from the US’ decision last month to impose a 20 percent tariff on Taiwanese goods.
Without them, local manufacturing would be severely affected, Kung told reporters after meeting with industry representatives in Taichung.
Photo: Tsai Shu-yuan, Taipei Times
During the meeting, manufacturers voiced concern over exchange rate volatility, with the New Taiwan dollar trading at about NT$30.5 to the US dollar, Kung said.
They would like to see greater stability in the short term, as fluctuations complicate price quotations, he said.
As many small and medium-sized enterprises (SMEs) lack experience with foreign-exchange hedging, the ministry is offering assistance through hedging tools and financing programs via the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (信保基金), he said.
The fund provided NT$143.38 billion (US$4.67 billion) in loan guarantees to SMEs and micro-enterprises last month, down 7.73 percent from NT$155.4 billion in July, a fund official told the Taipei Times by telephone.
In the first eight months of this year, total loan guarantees rose 5.85 percent to NT$1.13 trillion from NT$1.07 trillion a year earlier, the official said on condition of anonymity, adding that the fund would do its best to comply with the ministry’s policy.
If companies make regular interest payments, the guarantee fund would allow them to extend loans without reapplying, while the government would also provide financing and potentially lower interest rates to support overseas expansion, Kung said.
Companies investing in innovation — whether by replacing outdated equipment or upgrading research and development capacity — would likewise receive government backing, he said.
However, as the ministry is currently offering only urgent and limited aid through last year’s earmarked budget, Kung urged the legislature to swiftly approve a special budget to expand overseas support for companies.
He was referring to a NT$93 billion special budget under the Special Act for Strengthening Economic, Social and National Security Resilience in Response to International Circumstances (因應國際情勢強化經濟社會及民生國安韌性特別條例), designed to cushion the impact of US tariffs.
As overseas exhibitions and booths at international trade shows are costly and burdensome for SMEs, such support is especially critical, Kung said.
Machine tool and machinery makers attending the meeting yesterday included Hiwin Technologies Corp (上銀), Fair Friend Enterprise Co (友嘉實業), Tongtai Machine & Tool Co (東台精機), Victor Taichung Machinery Works Co (台中精機), Leadermac Machinery Co (勝源機械), Honor Seiki Co (榮田精機), Yinsh Precision Industrial Co (盈錫精密), Taiwan Takisawa Technology Co (台灣瀧澤), Quaser Machine Tools Inc (百德機械) and Ching Yuan Mechatronics Co (慶源機電).
To help address the challenges facing local businesses, Kung said he would spend the rest of the week meeting with industry and business associations, visiting companies and consulting legislators.
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