Hsiao Bi-khim promotes balanced Taiwan support initiatives to help SMEs innovate

Vice President Hsiao Bi-khim met with the National Federation of Automobile Dealers Associations of the Republic of China at the Presidential Office on the 15th of this month. During the meeting, she pointed out that the government is actively promoting the overall strategic layout of a "Balanced Taiwan," providing more concrete assistance and support to small, medium, and micro enterprises (SMMEs) specifically through four major dimensions: financing channels, talent cultivation, resource allocation, and industrial policy. She expressed hope that all industries will be able to thrive and develop in a fair environment.

SMMEs have long played a critical role in Taiwan's economic system. According to official statistics, more than 98 percent of businesses nationwide are SMEs, providing approximately 70 percent of employment opportunities and serving as the primary source of innovation and flexibility in both the manufacturing and service sectors. In recent years, changes in global supply chains and adjustments in the domestic market demand structure have caused these businesses to face dual challenges in capital, technology, and talent. Without effective support, this will directly impact overall economic resilience and growth momentum.

The "Balanced Taiwan" policy was first introduced during the term of the former premier, aiming to narrow the disparities in geography, industry, and resource distribution, allowing rural areas and foundational industries to also share in the dividends of development. The core of the policy lies in building diversified industrial clusters and enhancing the synchronicity of local revitalization and industrial upgrading. Since last year, relevant ministries and councils have successively rolled out measures including tax incentives, innovative R&D subsidies, and industrial chain integration, guided by the philosophy of being "industry-oriented and people-oriented" to help enterprises acquire the resources they need at different stages.

Regarding specific support for SMMEs, the government has launched multiple financing facilitation programs, such as lowering loan thresholds, extending repayment periods, and providing interest subsidies, while cooperating with financial institutions to establish dedicated credit platforms to mitigate funding gaps. In terms of talent, through industry-academia-government cooperation, on-the-job training and technical certification are promoted to help enterprises quickly bridge shortages in technical and managerial personnel. Regarding resource utilization, enterprises are encouraged to share equipment and intellectual property, and to utilize digital platforms to enhance supply chain transparency in order to reduce operating costs. Industrial policies focus on green transformation and smart manufacturing, providing R&D subsidies and market introduction guidance to help traditional industries leap toward high-value-added fields.

As one of Taiwan's key manufacturing sectors, the automotive industry has long focused on contract manufacturing and component supply, while facing global shocks from electric vehicles and autonomous driving technologies. Vice President Hsiao emphasized during the meeting that if the aforementioned four major support measures can be implemented for small and medium-sized automotive enterprises, it will help enhance the R&D capacity and supply chain resilience of domestic components while creating market space for emerging electric vehicle parts and smart in-vehicle systems. Industry representatives responded that if the bottlenecks in capital and talent are alleviated, they will have greater confidence to invest in new technological developments and accelerate cooperation with major international manufacturers, thereby elevating Taiwan's position in the global automotive value chain.

Overall, the Vice President's dialogue with the automobile association highlights the government's emphasis on SMMEs within its macroeconomic layout, and demonstrates that a "Balanced Taiwan" is not merely a slogan, but an attempt to strike a balance between industrial structural transformation and regional development through concrete policy tools. If the implementation effectiveness can be continuously reviewed and support details adjusted in the future, it will inject a more solid foundation into Taiwan's economy and maintain flexibility and innovation in international competition. (Source of facts: Central News Agency)