Micro Electric Two-Wheelers to Receive Subsidies? Kung Ming-hsin: Not at This Time

(CNA reporter Tseng Yun-ting, Taipei, July 1) Regarding external attention on whether the Ministry of Economic Affairs (MOEA) plans to subsidize micro electric two-wheelers, MOEA Minister Kung Ming-hsin stated today that the MOEA's Industrial Development Administration (IDA) had previously gathered opinions from manufacturers. Due to divergent views from various parties, the ministry will not be designing subsidy programs in this direction at the current stage.

The Legislative Yuan's Economic Committee held a special report today on "Comprehensive Review of Conflict of Interest Avoidance Regulations in the Review Mechanisms for MOEA and National Development Council Subsidy Programs and Investment Project Deliberation Procedures."

Media reports indicated that the MOEA was planning to include micro electric vehicles in electric vehicle subsidies, which has drawn objections from some motorcycle manufacturers. Kung Ming-hsin, speaking to reporters before the meeting today, said that this issue was proposed by external parties, and the IDA had collected relevant opinions from many manufacturers. However, "it appears that these opinions are quite divided," and therefore, the ministry will not be designing subsidy programs in this direction at the current stage.

Furthermore, regarding the separate draft versions of the drone regulations proposed by the ruling and opposition parties, the Kuomintang caucus advocates for annual appropriations from the public budget, planning a total of NT$240 billion over six years. Kung Ming-hsin stated that the Executive Yuan's version of the "Special Act for Procurement of Unmanned Vehicles for National Defense Autonomy" adopts a special budget. However, regardless of whether it is a special budget or an annual budget, the MOEA is happy to support industrial development.

He said that national defense procurement falls under national defense needs, and the ministry hopes to maintain stable demand. As for supporting the development of the drone industry, that is the responsibility of the MOEA. Therefore, he hopes all parties will support national defense procurement and industrial development.

Regarding the MOEA's recently released survey on overseas production of export orders in 2025, which shows the production ratio in China and Hong Kong falling to 26.2%, dropping below 30% for the first time, Kung Ming-hsin stated that since the outbreak of the first US-China trade war in 2017-2018, coupled with the impact of the pandemic, Taiwanese businesses have gradually moved their production bases out of China. The first wave involved the information and communication technology (ICT) industry returning to Taiwan, followed by gradual expansion of production to Southeast Asia.

He pointed out that Southeast Asia remains an important production base, and "it appears very enthusiastic." In the future, it is expected that more Taiwanese enterprises will invest in supply chains and establish industrial parks in advanced countries such as the United States and Europe, including TEEMA establishing overseas science parks, forming a new layout trend.

As for the survey showing an increase in the domestic production ratio to 52.9%, reflecting a more significant return of Taiwanese businesses, Kung Ming-hsin said that since the government promoted the "Three Major Plans for Investment in Taiwan," including the return of Taiwanese businesses, starting in 2017-2018, over NT$2 trillion in investment plans have been accumulated and are still being implemented, not including investments in semiconductors and high-end semiconductors. Driven by AI demand, Taiwan's high-end manufacturing capacity continues to expand, investment scale is growing, and more products are being shipped from Taiwan. (Edited by Lin Shu-yuan) 1150701

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