Minister engages with established sectors of the economy

In a bid to boost local industries and streamline distribution, representatives are suggesting that local companies consider mergers, including with international channels. This move is aimed at enhancing efficiency and reaching wider markets.

The Ministry of Economic Affairs is also considering the possibility of setting up an industrial park or cluster in Kaohsiung, a move that could potentially attract more businesses and stimulate economic growth in the region.

The government's support for businesses is evident, with over 300 applications for expanding sales channels – the most among the categories. Furthermore, the government has secured an agreement from banks that financial support would not be withdrawn when needed.

To address labor shortages, a top concern for traditional sectors like screw makers and the plastics industry, the Ministry of Labor has a plan in place. This includes training workers to help manufacturers upgrade their technology.

The government has also prepared financial support, including loans for companies. A single company can apply for at least NT$5 million for research and development or upgrades, while joint applications can reach NT$40 million. Joint applications for expanding sales channels can reach NT$20 million.

In addition, another NT$20 billion could be added to the budget to support industrial development. Minister Kung Ming-hsin, in his efforts to support the fastener industry in Kaohsiung, met with representatives of the sector.

Recognising the need for temporary relief, Minister Kung hopes the legislature would pass draft amendments to the Business Mergers and Acquisitions Act to temporarily exempt companies from additional taxes on mergers.

Specific company applications and requested financial support amounts for research, development, or technical upgrades are not detailed, but all taxable companies can apply for a research allowance of 25% (35% for SMEs after March 26, 2024) on eligible expenses up to a maximum base of 10 to 12 million euros, with total aid per project capped at 15 million euros.

The government is addressing other issues such as labor shortages, financial support, and structural transformation to ensure a robust and sustainable economic future for Taiwan.