President: NT$100 Billion, 8-Year Plan to Aid SME Transformation; Budget Will Continue if Insufficient

(Central News Agency, Taipei, June 5) President Lai Ching-te stated in an interview today that Taiwan will leverage its technological industry development to drive micro, small, and medium enterprises (MSMEs) and promote balanced growth. The government plans to propose an 8-year, NT$100 billion plan to assist SMEs in upgrading and transformation. It will also proactively assist more vulnerable, low-cost industrial parks and privately developed industrial parks. Furthermore, if the budget is exhausted within four years, the government will continue to allocate funds to meet the needs.

The interview, broadcast by TTV and UBN TV, covered topics including 18 new population strategy measures, economic development strategies, and national vision.

Discussing Taiwan's economic situation, President Lai said Taiwan's first-quarter GDP growth was revised up to 14.55%, and the full-year GDP forecast was also revised up to 9.64%. Per capita GDP has surpassed Japan and South Korea, and Taiwan's stock market capitalization is the 5th largest globally. He expects Taiwan to enter the world's top 20 economies next year.

The President noted that Taiwan's investment in China was 83.4% in 2010 but dropped to just 3.7% last year. He stated that earning money from the world is better than earning money solely from China, leading to a more developed, resilient economy capable of forging its own path.

While Taiwan's industrial development benefits from AI, President Lai also mentioned that Taiwan has many hidden champions. In 2024, Taiwan's economic growth rate was 5.6%, but excluding the tech industry, the traditional industry GDP still grew by 2.7%. Therefore, he hopes to continue using the tech industry to drive MSME development for balanced industrial growth.

The President stated that the government plans to amend the Micro, Small and Medium Enterprise Development Act into the Micro, Small and Medium Enterprise Upgrade and Transformation Development Act, promoting digital and net-zero dual-axis transformation. The government will also change its approach by proactively assisting low-cost industrial parks developed by the Ministry of Economic Affairs, as well as disadvantaged industrial parks developed by county/city governments or private entities.

President Lai also said the government will encourage raw material, equipment, and component suppliers to become part of the high-tech industry chain. Through technological transformation and upgrading, these companies can undertake business from TSMC or other tech firms, naturally driving overall industrial development. He added that if combined with a self-reliant defense industry, Taiwan could integrate its precision machinery, electronics, and basic industries. However, he regretted that the budget for defense self-reliance has been cut by the Legislative Yuan.

Emphasizing that "without money, nothing is possible," President Lai stressed that the government proposes an 8-year, NT$100 billion plan to assist SMEs in upgrading and transformation. He added that it is acceptable if the budget is exhausted within four years, as the government can continue to allocate funds. (Editor: Tsai Su-jung) 1150605