The Executive Yuan of Taiwan launches the "Trillion Investment for National Development" program, aiming to attract 3 trillion New Taiwan dollars in funding.

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Government Launches Three Major Plans, Aiming to Create NT$10 Trillion Economic Benefits

The Executive Yuan's Economic Development Committee held its first meeting on July 18 and confirmed three major plans, including the "trillion-dollar investment in national development" program. This program aims to introduce NT$3 to 4 trillion of domestic and foreign funds to invest in significant infrastructure and key industries in Taiwan, with the goal of creating NT$10 trillion in economic benefits. Premier Su Tseng-chang, Vice Premier Shen Rong-jun, and Secretary-General Kung Ming-hsin personally held a press conference to introduce the specifics of these plans and the future implementation steps.

Inter-Agency Collaboration to Promote a New Model of Investment in Infrastructure

Liu Jing-ching, Chairman of the Economic Development Committee, stated that these plans will aim to reduce the fiscal burden by expanding public construction projects, encouraging the establishment of private equity (PE) funds for public infrastructure investments, and promoting related financial products such as Real Estate Investment Trusts (REITs). The government will establish a dedicated platform to facilitate the connection between public infrastructure projects and private investments, thereby enhancing investment efficiency.

Abundant Funds in the Insurance Industry, Government Actively Seeking Cooperation

Liu Jing-ching pointed out that in recent years, the insurance industry has been affected by widening interest rate spreads and exchange rate fluctuations, making overseas investments unstable. Therefore, insurers are seeking safe domestic investment opportunities. The government has actively engaged in discussions with the top eight life insurance companies on how to utilize their abundant funds to participate in Taiwan's public infrastructure. By utilizing these funds for public construction, the government can generate additional economic benefits.

Regulatory Relaxation to Simplify Investment Processes

In order to promote investment of insurance funds, the government also plans to adjust relevant regulations. The Financial Supervisory Commission has agreed to study the modification of the Risk-Based Capital (RBC) ratio regulations, reducing the risk coefficient for insurance companies investing in public infrastructure funds from 10.18% to 1.28%. This measure aims to lower investment risks and enhance the enthusiasm for capital investment.