July 28, 2004
The Council for Economic Planning and Development (CEPD) has completed the drafting of a program for the use of foreign exchange to stimulate investment, which has won the approval in principle of Premier Yu Shyi-kun. Related agencies have been asked to map out implementation measures.
Key points of the CEPD draft include the following:
1.A subsidy will be provided to pay part of the loan interest for the purchase of machinery that is no longer, or can not be found, in Taiwan.
2.The "00-66-88" program for land in industrial zones, which offers free rental of land for the first two years, a 40% reduction on rental for the third and fourth years, and a 20% reduction for the fifth and sixth years, will be expanded.
3.Investment in strategic service industries will be encouraged under the CEPD's Service Industry Development Framework and Action Plan.
4.Measures will be formulated to encourage enterprises to invest in India, Eastern Europe, and other emerging markets so as to diversify risk.
5.The difference between fund raising conditions at home and overseas will be lessened, the issuance of NT Dollar or foreign currency bonds in Taiwan by foreign companies will be encouraged, and practicable methods of promoting the issuance of TDRs in Taiwan by foreign companies will be worked out.
6.The CEPD and the Public Construction Commission will plan a control and incentive mechanism to expand private participation in infrastructure projects.
7.The promotion of mergers between financial institutions will be stepped up so as to enhance the operating efficiency, and the feasibility of revising acts related to the Banking Act will be studied with the aim of expanding bank financing and breaking through quota restrictions on corporate loans from banks.
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