Premier Cho: Budget Doubled to Over NT$20 Billion Annually to Support SMEs, Including Commercial Districts

(CNA, Taipei, July 1, 2024) -- Regarding the content of the draft "Act for the Transformation, Upgrading, and Development of Small and Medium-sized Enterprises," Premier Cho Jung-tai stated today that the core objectives of the act are to strengthen micro-enterprises, expand small enterprises, upgrade medium-sized enterprises, and elevate new industries. The scope of application will also include businesses in commercial districts. An estimated NT$100 billion fund will be invested over 8 years, which, combined with the original public budget, will exceed NT$20 billion annually, effectively doubling the budget.

Premier Cho, Financial Supervisory Commission (FSC) Chairman Peng Chin-lung, and others attended the 2026 Taiwan Service Industry Excellence Award ceremony. Vice President Lai Ching-te delivered a video message, stating that the service industry is Taiwan's unique "warm power." This trust built on service is Taiwan's most valuable asset, and every friendly smile and precise service demonstrates Taiwan's overall resilience and competitiveness.

There are 1.7 million small and medium-sized enterprises in Taiwan, 80% of which are in the service industry. Premier Cho said that the service industry is Taiwan's soft power and a force for social stability. While Taiwan's high-tech industry is currently excelling, the government will never forget small and medium-sized enterprises and aims for overall upward development.

Premier Cho stated that in the past, the government allocated over NT$10 billion annually to assist small and medium-sized enterprises, yet there was no perceived narrowing of the gap with the high-tech industry, indicating insufficient effort. Therefore, the government will propose the draft "Act for the Transformation, Upgrading, and Development of Small and Medium-sized Enterprises," integrating past diverse revitalization programs for SMEs and the "SME Development Act." After completing the Executive Yuan's procedures, it will be sent to the Legislative Yuan for review.

He explained that the act will include sole proprietorships, partnerships, and limited partnerships within its scope of services. This means it will not only apply to small factories and small businesses but will also cover micro-enterprises, startups, and businesses in commercial districts and markets across various counties and cities. The aim is to assist small and medium-sized enterprises in becoming part of the supply chain for high-tech industries or becoming distinctive local businesses.

Premier Cho emphasized that only by maintaining the livelihoods of partners in commercial districts and traditional markets and assisting the industry can the grassroots of society be stabilized. Whether it's production, processing, sales, procurement, logistics, or technology development, small and medium-sized enterprise operators can all benefit from universal support and financial assistance under the act. The core purpose of the policy is to strengthen micro-enterprises, expand small enterprises, upgrade medium-sized enterprises, and elevate new industries. Through an NT$100 billion fund over 8 years, combined with the original public budget, the annual expenditure will exceed NT$20 billion, doubling the budget.

He stated that the government's goal is to achieve comprehensive care and development for national strategic industries, prevent gaps and neglected grassroots sectors, and build a stable social foundation. It also hopes to set standards so that upgraded medium and small enterprises can connect with global industry supply chains, thereby changing Taiwan's economic structure. This will be a "routine and resilient support policy."

Furthermore, Premier Cho, who earlier attended the Financial Competitiveness Forum, discussed the progress of promoting Asia's asset management center. He reported that the FSC has completed 52 financial regulatory adjustments, opened private banking and family office businesses, seen significant growth in investment trusts, expanded wealth management for high-net-worth individuals, achieved stable increases in Taiwan's personal investment and savings accounts (TISA), and advanced the Kaohsiung special zone.

He noted that the original target for managed assets was NT$4 trillion within 2 years, but the current figure has exceeded NT$10 trillion. This indicates that the government's direction is correct and its supporting measures are becoming increasingly complete. In the next two years, in addition to tangible results, the government must also quickly and bravely introduce various innovative financial services. The FSC is also preparing to draft the "Financial Market and Asset Management Development Act" to serve as a legal basis for future implementation. (Editor: Wan Shu-chang) 1150701

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