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Taiwan to spend NT$200 billion to help key industries

Premier Liu Chao-Shiuan said in a year-end briefing on Dec. 30 that Taiwan’s government plans to spend NT$200 billion over four years to help key indu...

Premier Liu Chao-Shiuan said in a year-end briefing on Dec. 30 that Taiwan’s government plans to spend NT$200 billion over four years to help key indu...

Taiwan’s government plans to spend NT$200 billion ($6.1 billion) over four years to help key industries through the global financial crisis, Premier Liu Chao-Shiuan (劉兆玄) said.

“The government wants to ensure that Taiwan’s key industries can weather this crisis,” the premier said at a briefing in Taipei Tuesday. He didn’t give details on how the money will be spent.

Taiwan’s benchmark stock index jumped 3.9 percent, led by Nanya Technology Corp., after Liu said an economics ministry panel is preparing a rescue plan for memory-chip makers. The NT$200 billion will also be used to help the renewable-energy, telecommunications and biotechnology industries, he said.

The government is also mulling a special trade zone to encourage Taiwanese companies, now based in China, to return home, Liu said.
Taiwan’s export orders and industrial production fell by records in November.

Taiwan’s economy probably followed Japan, Singapore and Hong Kong into a recession this quarter as a slowdown in the world economy cut demand for electronics goods, according to a government forecast.

Memory-chip makers worldwide have cut production and sold assets to stave off a cash crunch amid a glut that has caused prices to plunge. Taiwan’s five largest lost NT$94.8 billion in the first nine months of the year.

The government will spend NT$858.5 billion over four years to boost the economy, including NT$500 billion on infrastructure building and NT$85.7 billion on shopping vouchers, Liu reiterated today.

The government plans to invest NT$1.1 trillion in companies, including NT$300 billion to be spent on smaller firms, Liu said. That spending plan, also disclosed previously, doesn’t include the NT$200 billion announced yesterday.

Taiwan last month lowered its estimate for economic growth next year to 2.12 percent from an earlier projection of 5.08 percent. The government forecasts a 1.73 percent contraction this quarter.


Updated : 2020-12-04 19:59 GMT+08:00