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
Eight Chinese naval vessels and 24 military aircraft were detected crossing the median line of the Taiwan Strait between 6am yesterday and 6am today, the Ministry of National Defense said this morning. The aircraft entered Taiwan’s northern, central, southwestern and eastern air defense identification zones, the ministry said. The armed forces responded with mission aircraft, naval vessels and shore-based missile systems to closely monitor the situation, it added. Eight naval vessels, one official ship and 36 aircraft sorties were spotted in total, the ministry said.
INCREASED CAPACITY: The flights on Mondays, Wednesdays, Fridays and Sundays would leave Singapore in the morning and Taipei in the afternoon Singapore Airlines is adding four supplementary flights to Taipei per week until May to meet increased tourist and business travel demand, the carrier said on Friday. The addition would raise the number of weekly flights it operates to Taipei to 18, Singapore Airlines Taiwan general manager Timothy Ouyang (歐陽漢源) said. The airline has recorded a steady rise in tourist and business travel to and from Taipei, and aims to provide more flexible travel arrangements for passengers, said Ouyang, who assumed the post in July last year. From now until Saturday next week, four additional flights would depart from Singapore on Monday, Wednesday, Friday
The Ministry of National Defense yesterday reported the return of large-scale Chinese air force activities after their unexplained absence for more than two weeks, which had prompted speculation regarding Beijing’s motives. China usually sends fighter jets, drones and other military aircraft around the nation on a daily basis. Interruptions to such routine are generally caused by bad weather. The Ministry of National Defense said it had detected 26 Chinese military aircraft in the Taiwan Strait over the previous 24 hours. It last reported that many aircraft on Feb. 25, when it spotted 30 aircraft, saying Beijing was carrying out another “joint combat
The Ministry of Foreign Affairs (MOFA) today said that if South Korea does not reply appropriately to its request to correct Taiwan’s name on its e-Arrival card system before March 31, it would take corresponding measures to alter how South Korea is labeled on the online Taiwan Arrival Card system. South Korea’s e-Arrival card system lists Taiwan as “China (Taiwan)” in the “point of departure” and “next destination” fields. The ministry said that it changed the nationality for South Koreans on Taiwan’s Alien Resident Certificates from “Korea” to “South Korea” on March 1, in a gesture of goodwill and based on the
RSS