Lai proposes billions in subsidies for small businesses, child-rearing

Taipei, May 20 (CNA) President Lai Ching-te (賴清德) said Wednesday he will soon propose hundreds of billions of Taiwan dollars in subsidies to help small businesses improve their operations and ease the financial burden of more families in raising their children.

Lai announced the proposals, which would ultimately have to obtain the approval of Taiwan's opposition-controlled Legislative Yuan, in his speech at the Presidential Office to mark the second anniversary of his inauguration.

The proposed spending was NT$100 billion (US$3.15 billion) over an estimated eight years to help small businesses and non-tech industries move into the digital age and NT$200 billion a year to reverse Taiwan's declining birth rate, among the lowest in the world.

"I will propose in the coming days a NT$100 billion acceleration plan to upgrade and transform MSMEs and traditional industries ... The technology sector will drive the traditional industries, helping the nation's development further extend to all sectors and translate into better lives for every family," he said.

MSMEs refer to micro, small, medium-sized enterprises.

Asked after his speech to elaborate on the plan, Lai said the government currently allocates about NT$10 billion annually to help MSMEs make digital transitions, access carbon reduction technologies, and expand their international reach.

To "accelerate and expand" such efforts, the government will propose an additional NT$100 billion initiative, Lai said.

Lai said there are about 1.7 million MSMEs in Taiwan, which account for over 80 percent of employed workers, and old economy sectors contribute significantly to Taiwan's economic growth.

"The benefits of economic development should be shared across all sectors of society, rather than concentrated in the high-tech sector," he said.

Lai said the plan would span eight years and would not crowd out funding for other projects.

The Presidential Office did not immediately respond to CNA's question on how the initiative would be funded.

Population and family support package

Lai's proposals on addressing Taiwan's low birth rate included a proposal to expand eligibility for the NT$5,000 monthly child-rearing subsidy from households with a child under the age of five to those with a child under the age of 19.

Part of this subsidy will be saved in a "future account," so that when the children are enrolled at a university, the savings can cover their tuition, Lai said.

Other measures include improving workplace welfare policies and providing affordable housing for parents, he added.

The plans included in the overall strategy will cost around NT$200 billion a year, Lai said.

He expressed confidence that Taiwan's economy would be able to support this expenditure, citing a forecast published in February by the Directorate-General of Budget, Accounting and Statistics that the GDP will exceed NT$32 trillion this year.