President Willaim Lai (賴清德) yesterday talked about three new aspects of economic developments facing the nation and the role of a proposed sovereign wealth fund in helping Taiwan’s traditional industries.
First, the government must assist small and medium-sized enterprises (SMEs) and microenterprises affected by the US’ tariffs in getting through this tough time, he said yesterday during an exclusive interview with the Liberty Times (sister newspaper of the Taipei Times).
That was why Premier Cho Jung-tai (卓榮泰) tabled an NT$88 billion (US$2.87 billion) support package for domestic industries on April 4, shortly after US President Donald Trump announced “reciprocal” tariffs on April 2, Lai said.
Photo: Fang Pin-chao, Taipei Times
The amount was boosted to NT$93 billion after more than 20 industry forums, he added.
The bill has passed the third reading in the legislature and the Cabinet would send the budget to legislators for review, Lai said, adding that it would be implemented soon if the budget is approved.
Second is the upgrading and transformation of SMEs and microenterprises, Lai said.
These businesses have been uncompetitive globally, especially as the era of artificial intelligence and net zero emissions has begun, he said.
Therefore, the government would continue to help them digitalize and align with the net zero transition, so that their products could be better marketed to the world, he added.
The third involves special help for SMEs, Lai said.
While some have a major share in the global market, others are facing challenges, such as the machine tool industry in central Taiwan and screw manufacturers in the south, he said.
They are too small in scale to be competitive globally and expect the government to help with their mergers, Lai said, adding that a related bill has been approved by the Cabinet.
Post-merger, these companies’ securities transaction tax could be exempted to help the merged entity grow and become more competitive, he said.
These businesses also lack international distribution channels, Lai said, adding that many distributors used to place orders with Taiwan, but they have shifted to other countries that have lower prices, such as Japan and China.
“Therefore, we must open up more channels,” Lai said.
While the Taiwan External Trade Development Council can help in promoting international trade, Lai said he has proposed establishing a sovereign wealth fund to purchase or invest in international channels.
That would ensure that traditional industry commodities could be marketed globally and foregrounded in the future economy, he said.
The economy, people’s livelihoods, the youth and disadvantaged groups have been the government’s priorities in its policies, Lai said.
“Unfortunately, the intensity of domestic political struggles over the past year diminished our achievements in this regard,” he said. “As Taiwanese society must rest to regain vitality after the mass recall movement, I have asked the Cabinet to continue to push forward policies addressing those four issues.”
As for the US’ tariffs, Lai said that negotiations have technically been completed and that they are just waiting for a final meeting.
The government has told Washington it hoped to complete the process as soon as possible and be exempted from tariff stacking, he said.
Taiwan’s investment in Alaska was part of the negotiation, Lai said, adding that the government has long planned to invest in Alaska’s natural gas, as it is more accessible and could be transported more safely than from the Middle East.
“Given later invitations from Washington and the ongoing tariff negotiations, we did express willingness to invest in Alaska,” Lai said.
Additional reporting by Chen Yun
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