Taiwan's Domestic Investments Warming Up

Taipei, June 26, 2006 (CENS)--Investments by the private sector in Taiwan will likely reach the annual goal of NT$900 billion (US$28 billion at US$1:NT$32) by the end of this year from the NT$519.1 billion (US$16 billion) registered in the first five months, according to a senior government official.

Director General Chen Chao-yih of the Industrial Development Bureau (IDB), Ministry of Economic Affairs, pointed out that more-than-expected major investment plans, which must contain investment capital of at least NT$50 million (US$1.5 million) each case, have been registered in the first half this year. He estimated environmental-protection assessments on five major investment plans would be the major factor in deciding whether or not the investment goal would be met in the second half.

PowerChip Semiconductor Corp.'s and Chunghwa Picture Tube Co., Ltd.'s investment plans were approved along with some conditions added to their environmental-protection assessments. AU Optronics's investment plan will undergo an environmental-protection review on June 30. China Petroleum Corp.'s project to invest in a massive petrochemical facility and Formosa Plastics Group's plan to open a huge steel-making compound on a reclaimed land off central Taiwan coast raise the most critical environmental issues.

The outstanding domestic investments, according to the ministry, also reflected that an increasing number of Taiwanese enterprises in mainland China have invested in Taiwan. The ministry's officials pointed out that the increased investment figure suggested that the mainland's macro economic control has posed many uncertain factors for investments by Taiwanese enterprises.

To inspire Taiwanese enterprises in the mainland to invest on the island, the government has offered some incentives in land acquisition and loans since last year. Around 48 Taiwanese enterprises had applied for the incentives in the first five months this year, according to the IDB.