Plans to roll out lighter tax rates and simplify regulations
for the island's technology companies to encourage more firms to invest
at home.
TAIPEI (Reuters) - Taiwan President-elect Ma Ying-jeou said on
Tuesday he plans to roll out lighter tax rates and simplify regulations
for the island's technology companies to encourage more firms to invest
at home.
Many of Taiwan's technology companies have moved their manufacturing
to other countries, such as Vietnam and China, due to lower production
costs and the government has been trying to lure these firms back.
Taiwan is home to the world's two largest contract chip makers and
its companies produce 80 percent of the world's laptops and 40 percent
of flat panel displays.
"We're looking at more tax reforms and lighter tax rates," Ma
Ying-jeou told a news conference after he met with some of Taiwan's top
technology executives. He did not provide details.
Ma, who will take office on May 20, met with leaders of seven major high-tech firms, including Acer, Asustek Computer, Lite-On Technology, Compal Electronics, Qisda and Delta Electronics.
Ma added that he aimed to boost foreign investments in Taiwan and
hoped that high-tech talent from China would be able to work on the
island. "We want to give these firms more space and freedom," he said.
Earlier on Tuesday, a grouping of Taiwan companies said Chinese
officials are planning to draft measures to help Taiwanese firms
operating in China stay competitive.
Ma had said he would loosen investment restrictions to China, but
also encouraged domestic companies to invest locally. Taiwan generally
limits its companies to invest no more than 40 percent of its net asset
in China.
Earlier this month, Ma met with top electronics maker Hon Hai Precision Industry
Chairman Terry Gou and Formosa Plastics Group Chairman Wang Yung-ching
on potential opportunities for new investments in Taiwan.
Ma, who favors closer trade ties with China, had also recently said
he is considering opening up the commercial property market to mainland
investors and plans to make direct flights available between Taiwan and
China in July.
Self-ruled Taiwan and China, which claims the island as its own,
remain political rivals since the end of the Chinese civil war in 1949.
But despite that rivalry, economic links between the pair have thrived,
with China now the island's biggest trading partner and favored
investment destination.
Taiwan investors have poured more than $100 billion into China since the 1980's.
(Reporting by Sheena Lee; Editing by Anshuman Daga)
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