Cabinet approves new incentives to attract investment in Taiwan

Taipei, July 3 (CNA) Deputy Economics Minister Cynthia Kiang (江文若) on Thursday pledged government support for overseas Taiwanese and foreign businesses investing in Taiwan, following Cabinet approval of a slate of incentives that includes loans and subsidies.

"Any companies [that wish to invest in Taiwan] and contribute to Taiwan's economy will receive government support," Kiang told a press briefing in Taipei.

She added that the government would not only support targeted industries -- notably artificial intelligence, cybersecurity and military technology -- but also welcome investment from the health and service sectors.

According to the Ministry of Economic Affairs (MOEA), the newly approved measures are part of an expansion of the "Invest Taiwan" initiative, first launched in 2017 in response to the U.S.-China trade war to encourage Taiwanese companies to relocate their operations from China to Taiwan.

In addition to companies with operations in China, Taiwanese businesses operating globally and foreign enterprises will also be eligible for the measures, which will be in effect from 2025 to 2027, senior MOEA official Chang Ming-pin (張銘斌) said at the briefing.

The measures include up to NT$720 billion (US$24.96 billion) in loans over three years, as well as subsidies for loan service fees ranging from 0.3 to 1 percent, up from the original 0.1 to 0.7 percent, Chang said.

He added that the government aims to attract NT$1.2 trillion in investment and create about 80,000 jobs in Taiwan through the incentives.

According to MOEA data, since 2017, 1,678 enterprises -- more than 1,100 of them small and medium-sized companies -- have passed the review of its investment screening agency and invested a total of NT$2.53 trillion in Taiwan under the "Invest Taiwan" initiative.