Taiwan’s National Development Council has presented its new economic stimulus plan to the country’s Cabinet, as businesses across the country suffer amid an outbreak of COVID-19. But Thursday’s policy outline will still need the approval of Taiwan’s legislature to pass into law.
National Development Council Chairperson Kung Ming-hsin says the soft lockdown in place across Taiwan has affected businesses in a range of sectors. That’s why the council is suggesting a wide-ranging stimulus package with a budget of NT$210 billion (US$7.6 billion).
Under the plans, lower and middle-income households would receive an allowance of NT$1500 (US$54) a month for three months. There would also be an emergency relief fund offering a one-off payment of between NT$10,000 and NT$30,000 (US$360 to US$1080). Self-employed workers and other freelance workers could receive up NT$10,000 (US$360) for up to three months.
Kung says salary subsidy requirements will also be relaxed. That means companies that have seen business decline by 50% or more will be able to claim NT$20,000 (US$720) per employee.
Taiwan’s Central Bank has also announced an increase in the budget for business loans. That budget will rise to NT$400 billion (US$3.6 billion), with a range of loans of different sizes depending on credit scores.
Taiwan previously encouraged consumer spending by offering coupons directly to shoppers. Kung says the government has not yet considered reviving the scheme, but it remains an option if necessary.