The government puts forward the Investment Expansion Programs to revitalize the economy

• Origin

Global economic recovery has been weaker than hoped, thus impacting the nation’s economic growth momentum. As expanding of exports depends on the state of the global economy, the government is aware that inducing private investment is one of the key factors to boost the economy and upgrade industry.

• Policy's Benefits

The government’s strategies are to improve the investment climate, spur private investment, increase investment in state-operated and publicly owned businesses, and strengthen digital innovation capabilities. These strategies aim to cushion the impact of global economic weakness and stimulate domestic economy over the short term, while building next-generation industries and strengthening overall growth potential over the medium term.

• Key Strategies and Measures

The programs are based on policy suggestions by commercial and   industrial groups, specific approaches developed by Ministry of Economic Affairs and Ministry of Science and Technology, and new investment plans formulated by state-operated and publicly owned businesses. These programs consist of four main components：

1. Improving the Investment Climate

• Revitalizing the Use of Land in Industrial Zones and Science Parks

• Make land in industrial zones available for lease rather than for sale and provide qualified companies with rent concessions
• Lower land leasing prices in science parks
• Take measures to stabilize industrial zone land prices

• Ensuring the Sustainability of Power Supply

• Speed up smart-meter deployment
• Promote establishment of solar photovoltaic power stations and offshore wind farms  
• Encourage investment in renewable energy

• Securing Reliable Water Supplies 

• Replace water pipelines to reduce leakage
• Encourage investment in water reclamation systems by providing tariff reduction and exemption

2. Spurring Private Investment

• Revising Fixed Asset Useful Life Regulations

• Depending on the emerging industry trends, review the table of service life of fixed assets to encourage businesses to invest in new equipment, such as equipment for internet of things(IoT), artificial intelligence(AI), and energy saving and storage

• Promoting Innovative Industries

• Help innovative industries, such as smart machinery, green energy, and biotechnology, obtain experimental platforms, enter  the high-end application market, and provide them with domestic field test sites

• Developing Lifestyle Industries

• Ease tourism industry regulations, such as Regulations for the Management of Home Stay Facilities, and visa requirements for foreign visitors
• Promote cultural and creative industries by expanding the National Development Fund’s investment in the film and television industry in the short term, and establishing a professional intermediary organization and circulating funds in the medium term to enhance public-private cooperation, which help the industries enter the international market under the concept of “national team”

• Government Funds Leveraging Private Investment

• Stimulate domestic investment by setting up an industrial innovation and transformation fund and a national-level investment company

3. Increasing Investment in State-operated and publicly owned Businesses

As for state-operated and businesses, government plans to invest a total of NT$340 billion (US$10.6 billion) in basic infrastructure and emerging industries.

• Ensuring the Sustainability of Energy Supply

• Promote energy infrastructure investment project such as the Dah-Tarn Power Plant (gas-fired) with a combined cycle gas turbine expansion plan, Ta-Yuan Cogeneration Plant and Dalin petrochemical storage center project

• Increasing Investment in Transportation Infrastructure

• Military Pier Facility Relocation and Renovation Plan in Keelung Port
• Taoyung Airport Taxiway Updating and Renovation

• Strengthening Investment in Green Energy and Emerging Industries

• Invest in 2nd and 3rd phase of Photovoltaic Project and 5th phase of Wind Power Project
• Promote investment projects such as IDC/Cloud, IoT, Information Security and 5G wireless mobile telecommunications technology

• Improving the Manufacturing Environment and Public Service Quality

• Promote effluent zero liquid discharge technologies establishment and application plan to enhance industrial wastewater reuse
• Enhance post office environment and quality of services

4. Strengthening Digital Innovation Capabilities

• Improving Digital Infrastructure

• Upgrade campus broadband and wireless network and strengthen remote area network construction
• Promote the e-government cloud infrastructure program

• Speeding up the Digital Transformation of Enterprises

• Promote Public Procurement for Innovation(PPI) and Pre-commercial procurement(PCP)
• Assist domestic industry to participate in IoT international standards setting
• Foster Fintech innovation and work with enterprises to speed up digital transformation