The National Development Council (NDC) yesterday unveiled several short-term measures aimed at stimulating the economy through private investment by establishing an equity fund and a trading company to help firms expand, innovate and upgrade.
“Unlike past practices, the council and other government agencies will take the initiative and lend a helping hand wherever they spot worthy investment opportunities,” National Development Council Minister Chen Tain-jy (陳添枝) told a news conference in Taipei.
The council plans to establish an equity fund of NT$100 billion (US$3.06 billion) under the National Development Fund and take shares in promising firms through capital injection, Chen said.
Photo: Wang Yi-sung, Taipei Times
The equity fund would not vie for management rights, but would limit its role to pure capital investment and would exit once it achieves its goal, he said.
The planned fund differs from the National Development Fund in that the latter functions like a venture capitalist and focuses on business start-ups alone, Chen said.
Private investment is a GDP component the government can undertake to achieve lasting benefits, he said.
During the presidential campaign, President Tsai Ing-wen (蔡英文) pledged to promote biomedicine, “green” technology, “smart” machinery, national defense and building Taiwan into an Asian “Silicon Valley.”
Firms with plans to increase job opportunities would win favorable considerations, but that is not a necessary requirement, Chen said.
The planned trading company is to be capitalized at NT$10 billion, drawn from the public and private sectors, to help create and integrate investment opportunities for local companies, Chen said.
He said it would be different from Singapore’s sovereign wealth funds in that those focus on wealth management and help support social welfare with their profits.
The company is part of the government’s “new southward policy” — an attempt to guide private investment away from China toward Southeast Asian countries to reduce economic dependence on China and diversify investment risks.
The nation’s economy is in need of structural reform, the council said, adding that it would announce later how it plans to help diversify export products and destinations.
An overconcentration on a few sectors and technology devices have made Taiwan vulnerable in times of unfavorable technology cycles, Chen said.
The council would invite interested parties from the private sector to join the equity fund and the trading company, Chen said, adding that details of the two measures are not finalized.
Officials from the council and technology and economic ministries are to visit companies around the nation to learn their needs and come up with solutions, rather than wait and see what is needed as was done in the past, Chen said.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old