At Thursday's Cabinet meeting, the Ministry of Economic Affairs (MOEA) delivered a briefing on raising the overall competitiveness of small and medium-sized enterprises (SMEs). Premier Su Tseng-chang said that SMEs form the bedrock of Taiwan's economy and announced that the government plans to invest up to NT$100 billion (US$3.1 billion) for their development during the next five years. This would help the nation's SMEs become more internationally competitive and further strengthen the resilience of Taiwan's economy.
Taiwan is home to nearly 1.6 million SMEs, which constitute 99% of the nation's private sector and provide jobs for over 9.2 million people—equivalent to approximately 80% of Taiwan's working population. Last year, SME exports grew by 25%, which represents an incredible achievement.
Premier Su called on all related ministries and agencies to proactively promote the government's SME policy and provide guidance to SMEs as they transition to digitized, low-carbon business models, and adjust their operating models to incorporate the latest industrial technology and sustainable production capabilities.
The premier encouraged the nation's SMEs to form cooperative alliances in areas of mutual interest, and for larger enterprises to seek out innovative collaborations with smaller-sized businesses to add increased value to their businesses. Meanwhile, the government will continue to optimize local business environments to attract young Taiwanese to return to their hometowns and help build thriving local communities.
To further alleviate the financing difficulties faced by SMEs, Premier Su said, the government launched another plan in 2019 to guarantee NT$100 billion (US$3.1 billion) in financing for SMEs. The government has also reduced the service fees charged by the Small and Medium Enterprise Credit Guarantee Fund of Taiwan. Meanwhile, both the number of SMEs receiving loans and the value of loans provided by public banks to SMEs have continued to grow, which has incentivized all banks to increase the number of SMEs receiving loans and the value of their loans to SMEs. In addition, the government has assisted the digital transformation and green transformation of SMEs, and facilitated the acquisition of the working capital necessary to revitalize their operations.
The Ministry of Finance announced in early October that the value of Taiwan's exports from January to September was US$367.7 billion, while the MOEA announced on October 20 that the value of export orders from January to September was US$509 billion. Both figures broke same-period record highs.
The premier emphasized that Taiwan's economy has strong fundamentals and holds an indispensable position in the global industrial supply chain. As the pandemic subsides and national borders reopen, Taiwan's government will continue to back SMEs and help them seize opportunities for development.
Sources: Executive Yuan
