Taipei: President Lai Ching-te announced Wednesday his proposal for hundreds of billions of Taiwan dollars in subsidies aimed at enhancing small business operations and alleviating the financial burden on families raising children. Lai presented these proposals during a speech at the Presidential Office to commemorate the second anniversary of his inauguration.
According to Focus Taiwan, the proposals require approval from Taiwan's opposition-controlled Legislative Yuan. The plan involves NT$100 billion (US$3.15 billion) over eight years to aid small businesses and non-tech industries in embracing the digital age, and NT$200 billion annually to address Taiwan's declining birth rate, which is among the lowest globally.
"I will propose in the coming days a NT$100 billion acceleration plan to upgrade and transform MSMEs and traditional industries," Lai stated, emphasizing the role of the technology sector in driving traditional industries and enhancing national development.
MSMEs, which include micro, small, and medium-sized enterprises, represent over 80 percent of Taiwan's workforce. Lai highlighted that the economic benefits should extend beyond the high-tech sector to all societal segments. He assured that this eight-year plan would not affect funding for other projects, although the Presidential Office did not specify the funding source.
In addition to business subsidies, Lai proposed expanding the NT$5,000 monthly child-rearing subsidy eligibility from households with children under five to those with children under 19. This plan also includes saving part of the subsidy in a "future account" for university tuition, improving workplace welfare, and providing affordable housing for parents.
The overall strategy, costing around NT$200 billion annually, aligns with Taiwan's economic growth. Lai cited a forecast indicating that Taiwan's GDP will exceed NT$32 trillion this year, suggesting the economy can sustain this expenditure.