Alexa
  • Directory of Taiwan

Talk of the day -- Taiwan gears up to help firms return

Talk of the day -- Taiwan gears up to help firms return

Taiwan's government is working hard in an attempt to convince Taiwanese companies to relocate production lines back to their home turf from China amid surging wages there.
In a recent interview with the Economic Daily News, Minister of Economic Affairs Shih Yen-shiang revealed that a leading business group will return to Taiwan for investment in the near future.
Shih was referring to Hon Hai Precision Industry Co., the parent of the world's largest electronics contract manufacturer, China-based Foxconn Technology Group.
Industry sources said the Ministry of Economic Affairs (MOEA) is helping Hon Hai find a suitable location to accommodate its massive investment project. Once Hon Hai comes up with a detailed blueprint, the ministry will also assist it in resolving power, water and labor force issues, the sources said.
The following are excerpts from local media coverage of the issue: United Daily News: MOEA officials familiar with the Hon Hai investment plan said the ministry has assigned staff to help with the group's land acquisition bid in hopes that Hon Hai's new high-end production lines will generate jobs to lower the country's unemployment rate.
The ministry also hopes the Hon Hai project will inspire other Taiwanese enterprises to follow suit by launching new investment programs on their home turf to cash in on the recently lowered corporate income tax rate (from 20 percent to 17 percent) under the Industrial Innovation Act, the officials said.
Premier Wu Den-yih said Wednesday the government has taken a number of measures to lure Taiwanese companies back to Taiwan amid a changing business environment in China, where wages are skyrocketing and labor supply is no longer abundant.
Officials from economics and labor affairs agencies also said they are seeking ways to help companies reduce labor costs, particularly those related to hiring foreign laborers, in order to enhance incentives to lure back Taiwanese investors. (June 10, 2010).
China Times: After Foxconn and Japanese automaker Honda Co. significantly raised basic wages for workers at their factories in southern China to quell labor unrest, their peers in other major Chinese industrial hubs have felt the pinch.
Taiwanese information technology companies in the Pearl River Delta and the Yangtze River Delta are worried workers at their plants will go on strike to force wage hikes.
The manager of a Taiwanese-owned factory in Shanghai said Chinese authorities have asked Taiwanese corporations in the Shanghai and Kunshan areas to offer psychological counseling services for their workers, many of whom are migrants from China's rural areas and need help coping with their new lives in the big cities. (June 10, 2010).
Commercial Times: Ling Chia-yuh, director of the MOEA's Department of Investment Services, said Wednesday the government can offer customized assistance to Taiwanese companies willing to launch new investment projects in their homeland.
With wages rising quickly and furiously in China, Ling said his department will sponsor a seminar June 15 on luring China-based Taiwanese companies to come back for investment. More than 300 Taiwanese businessmen have registered for the meeting, he said.
According to Ling, the MOEA will offer assistance in land acquisition, special loans, R&D subsidies and manpower resourcing for businesses intending to invest in their home turf. (June 10, 2010).
(BY Sofia Wu)