Taiwan Legal Update: Government to invest 20 Billion NT$ on 5G & The Performance of Free Trade Zones Increases Significantly

WEEKY NEWS PICTURE (TW)

Taiwan Legal Update: Government to invest 20 Billion NT$ on 5G & The Performance of Free Trade Zones Increases Significantly

Government to Fund 5G Development in Taiwan

On Thursday, the Executive Yuan spokesman Kolas Yotaka confirmed that the « Taiwan 5G Action Plan. » has been approved.  It is hoped that Taiwan’s investment in 5G will now be  » fast, not slow ».

Government steps towards this in 2017, which saw the government approve the « Digital National Innovation Economic Development Plan » in October 2017, followed by the 2018 directive « Taiwan 5G Action”.

The Executive Yuan is expected to invest 20.466 billion NT$ between 2019 and 2022, hoping to become a major partner in the global 5G supply chain. Premier Su Tseng-chang noted Taiwan’s mobile and information telecommunications prowess, alongside her professional training systems as strong grounds for Taiwan’s position as a global competitor.

The Cabinet have expressed their refusal to allow Taiwan to “miss the chance of hegemony in the era of Internet of Things and virtual and integrated services’.

The Action Plan promises to provide strong support for 5G core technologies, system test platforms and provide a 5G application test environment to help manufacturers cross the 5G technology threshold.

Furthermore, in the « Taiwan 5G Action Plan », the Ministry of Economic Affairs, the National Development Committee, the Ministry of Education, the National Communications and Communications Committee, the Ministry of Communications, the Ministry of Science and Technology, the Ministry of Culture, and the Ministry of Health and Welfare will all work together.

The government perceive a “future” society which places great emphasis on smart manufacturing, smart families, smart transportation, smart campus, smart medical care, smart disaster prevention and self-driving cars. If such a future exists, Taiwan aims to be at the forefront.

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Growth in Free Trade Zones in Taiwan

Since 1998, the operational performance of Free Trade Zones (FTZs) has increased steadily with an average annual growth rate of 11% (trade volume) and 13% (trade value). Between January and April 2019, the value and performance of FTZs have increased by 21.2% (value) and 6.5% (quantity). This is largely due to the presence of 115 new businesses. Additionally, the trade volume and value of Taoyuan Airlines FTZ increased by 26.7% and 30.6%, compared with the same period of last year.

According to the Ministry of Communications, the improved performance can also be attributed to the recent growth of Freeport operations; the increase in non-ferrous metal storage capacity; the export of machinery and equipment in the port of LME; and the new electronics industries entering the FTZs.

Business decisions to move production lines back to Taiwan for development are also contributing to this growth. For instance, a new business launched this year aims at engaging in the production of international pressure vessels and fan equipment. It is expected to drive the international competitiveness of Taiwan’s wind power related industries.

FTZs are closely related to international trade and economics, thus, still, need to be handled with caution. In response to the rapid changes in the global economic and trade situation, the Ministry of Communications and its affiliated agencies have amended development goals and strategies accordingly.

They have also expressed the need to continue to loosen regulations in order to promote new business models, through coordination and cooperation between the ministries. This includes encouraging foreign businessmen coming to Taiwan to engage in cargo storage and value, taxation and levy clarification and rationalization, improving cross-border e-commerce, sea and air transport, etc. It is also important to cooperate with the development of innovative technology, actively introduce the construction of free port area to become a smart logistics leader, Through the improvement of laws and regulations, the expansion of re-exports and transhipment efficiency, the country’s overall logistics industry will develop new business opportunities.

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