Taipei, June 20 (CNA) The Cabinet on Thursday approved three projects to boost investment in Taiwan by providing new incentives estimated to increase investment by NT$1.75 trillion (US$5.65 billion) and create 104,000 jobs in the country over the next three years.
The three projects include an expanded action plan to encourage overseas Taiwanese businesses to invest in Taiwan, a program to encourage domestic enterprises to increase investment and an accelerated investment project targeting small and medium-sized enterprises (SMEs).
To help Taiwanese businesses cushion the impact of the trade conflict between the United States and China, the Executive Yuan launched an action plan Jan. 1 that allocated NT$20 billion in loans and subsidies to cover the 1.5 percent bank service charge for firms investing in Taiwan.
However, the NT$20 billion fund ran out in less than six months, having resulted in 73 overseas Taiwanese companies investing over NT$375 billion and creating more than 34,100 jobs, Executive Yuan Secretary-General Li Meng-yen (李孟諺) said Thursday.
The expanded action plan, which came into effect Thursday, raises the loans available to Taiwanese businesses to NT$500 billion. Enterprises that have invested in China for more than two years that invest in "five plus two" innovative industries, high value added products or national priority industries can apply for the loans, according to the Ministry of Economic Affairs.
The "five plus two" innovative industries refers to the Internet of Things, biotechnology, green energy, smart machinery and defense, plus high-value agriculture and the circular economy, which the government has been promoting to help enhance Taiwan's industries.
Under the new plan, qualified overseas Taiwanese enterprises will be granted bank handling fee subsidies of 0.5 percent on loans worth NT$2 billion or less and 0.3 percent on loans of NT$2 billion- NT$10 billion.
Subsidies of 0.1 percent will be available to firms that take out loans worth more than NT$10 billion, according to the MOEA.
For SMEs that take out loans, bank change subsidies of 1.5 percent will remain unchanged, it added.
Under the new action plan, the loans will be available for a maximum of five years, as opposed to 10 years in the original plan.
The Cabinet will also allocate NT$80 billion and NT$20 billion in subsidies to local Taiwanese enterprises and SMEs, respectively, under the two other projects which are expected to come into effect July 1.
Premier Su Tseng-chang (蘇貞昌) said that the three projects have been devised to create a more favorable environment for businesses to invest in Taiwan and create more jobs at home.