Premier Su Tseng-chang (蘇貞昌) yesterday approved three plans proposed by the Ministry of Economic Affairs aimed at attracting an estimated NT$1.175 trillion (US$37.7 billion) of investment and 104,000 job opportunities over three years.
To encourage overseas Taiwanese to invest in Taiwan the government implemented the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan, which was funded by the National Development Fund.
However, due to the popularity of the scheme, the NT$20 billion allocated to the action plan has already been exhausted.
Photo: Li Hsin-fang, Taipei Times
As a result, a second edition of the plan, or Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan 2.0, one of the three plans approved, was drafted.
The new plan promises an additional NT$500 billion in subsidies to overseas businesses returning to invest in Taiwan.
Under the new plan, the government is to subsidize 0.5 percent of the processing fees for businesses borrowing less than NT$2 billion, 0.3 percent for businesses borrowing NT$2 billion to NT$10 billion, and 0.1 percent for businesses borrowing more than NT$10 billion.
The loans must be repaid in five years, down from 10 years under the original plan.
The subsidies are to become available after the regulations have been confirmed, Deputy Minister of Economic Affairs Wang Mei-hua (王美花) said.
Meanwhile, the other two plans approved seek to extend the benefits to large businesses that have remained in Taiwan, as well as small and medium-sized enterprises.
Subsidies for the former group would be given according to the same rules that apply to overseas businesses returning to invest in Taiwan, while the latter would get a 1.5 percent subsidy.
The two groups are to be offered NT$80 billion and NT$20 billion in subsidies respectively.
The two plans are to take effect on July 1, Wang said.
The three plans would benefit not only businesses returning from abroad to invest in Taiwan, but also large enterprises that have never invested in China and small and medium-sized enterprises, Su said at a Cabinet meeting.
In addition to the subsidies, all three plans also have dedicated points of contact to help businesses secure land, water and electricity, and handle taxes, he said.
The government wants to show the corporate world and the public that it is determined to boost the economy, Su said.
It wants to demonstrate its effectiveness in reviewing applications, its flexibility in implementing plans and that it can “keep up with trends” and make adjustments as needed, he said.
The Cabinet on May 31 raised the foreign worker quota from 10 percent to 15 percent for multiple businesses, including Accton Technology Corp (智邦科技), the first company to be approved under the original action plan.
Additional reporting by CNA
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