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EDITORIAL: Investment plan extension challenging

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With continued demand from Taiwanese businesses and an expected wave of innovations amid changes in the global trade and investment landscape, the Cabinet on Thursday extended the “Investment in Taiwan” initiative until 2024. The expansion will provide an additional $ 430 billion (US $ 15.5 billion). While meeting standards that will advance the country’s target of zero net carbon emissions by 2050.

The initiative, which began in 2019 during U.S.-China trade tensions, has three programs: one focuses on rehoring, another program helps companies deepen their roots at home, and the third helps SMEs find favorable loan terms and tax incentives. Participants find stable land, water and electricity, as well as talents.

To be accepted, candidates must present high-value-added investment projects that are essential to the international supply chain and are in line with national industry policy.

The programs have yielded excellent results – much better than expected. According to the InvesTaiwan Service Center, 1,126 applications from local businesses have been approved so far, with total investment promises of NT $ 1.61 trillion. Divided by plan, the acceleration program attracted 250 companies and an investment of NT 103.2 billion with 80,651 jobs, the program for accelerated investment by local companies attracted 264.8 billion NT from 131 companies and 19,529 jobs, and the program for small and medium-sized businesses. Organizations the size of have attracted NT $ 317.2 billion in investments and 28,208 jobs from 745 companies, the center reported on Friday.

The ongoing conflict between the US and China – trade in tariffs and now technology – has brought Taiwan unprecedented opportunities and caused Taiwanese businesses to think twice about transferring investments mainly to China. Asia – while adopting the so-called “China Plus One” risk diversification strategy.

The diversification of investments by Taiwanese businesses may continue in light of the ongoing rivalry between Washington and Beijing. There was a need to expand the “socket in Taiwan” initiative as their trade tensions continue to offer Taiwan beneficial opportunities. Preferred loan terms may not be what some companies need, so the extended initiative has adjusted the interest rate subsidy and loan duration over the next three years.

The government needs to closely monitor the progress of committed investments – check whether companies are increasing investment and promised jobs – but it must also be careful to fulfill its commitments, especially when faced with the challenge of ensuring not only a steady supply of water, electricity and talent, but also land Industrial.

Preventing a power shortage may be the biggest challenge, especially after the December 18 referendum postponed the start of reconstruction of the fourth nuclear power plant.

Over the next four years, the Wushang Nuclear Power Station in Wanli Province in New Taipei (萬里) and the Ma-Ansan Nuclear Power Station in Pingtong Province should be shut down, and it remains to be seen whether the construction of some on a large scale. Liquefied natural gas generators can fill the gaps.

To encourage a reduction in carbon emissions and promote a circular economy, candidates should be tested on whether they plan to use energy-saving or low-carbon equipment, recycling processes and green architecture.

However, the government has lagged behind in achieving its stated goal of electricity generated from renewable energy, so the way the country is catching up with the global zero trend presents the government with another challenge – and requires further cooperation between the public and private sectors.

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