Taiwan to form New Southbound Policy investment company

Company will be led by the private sector, with the government in a secondary role: MOEA

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Economics Minister Shen Jong-chin.

Economics Minister Shen Jong-chin. (By Central News Agency)

TAIPEI (Taiwan News) – The government will promote the formation of an investment company focusing on the New Southbound Policy countries and official diplomatic allies before the end of the year, the Ministry of Economic Affairs said Thursday.

Since assuming power in 2016, the administration of President Tsai Ing-wen (蔡英文) has been promoting a New Southbound Policy, targeting the nations of South and Southeast Asia as well as Australia and New Zealand for closer ties, while encouraging Taiwanese businesses to invest there.

On August 7, Tsai indicated that three national investment companies should be set up, one each for international industrial development, agriculture and overseas construction, the Liberty Times reported.

Commenting on the first type, Economics Minister Shen Jong-chin (沈榮津) clarified Thursday that by the end of the year, there should be a company led by private enterprise and with the government in a secondary role to provide assistance with investments and with industrial technology development to New Southbound Policy countries and allies.

The company could also assist Taiwanese businesses in redirecting their investment toward the New Southbound Policy area, the minister added.

Shen said the scale and funding of the new company were still under discussion, but details would be announced as they were determined before the end of 2018, the Liberty Times reported.