Taipei, May 15 (CNA) A national investment company will be set up if an initial NT$2 billion (US$66.48 million) fund designed to support Taiwan's startups in the Internet of Things (IoT) sector can be raised from the private sector in the next six months, said Chen Tain-jy (陳添枝), head of the Cabinet's National Development Council (NDC).
The company is part of the "three-carriage" strategy proposed by Chen soon after he assumed his post a year ago to stimulate the economy by encouraging private sector investment.
The two other carriages are creating an industrial innovation and transformation fund to encourage companies to invest in structural transformation and promoting investment in five innovative industries, including green energy, biomedicine, intelligent machinery, national defense and "Asia Silicon Valley."
The industrial innovation and transformation fund has been established, the five innovative industries program has been launched, and preparations are being made for the investment company's establishment, Chen said.
The national investment company was devised to set up five funds to support the development of each of the five innovative industries, according to Chen.
The government is actively seeking NT$2 billion in capital in the next six months to help spur the development of the IoT sector and establish the national investment company, Chen said.
Domestic small- and medium-sized enterprises have developed their own characteristics but lack the technology needed to upgrade and create opportunities, and Chen said the government wants to help them transform and have access to capital through the program.
The next step will be for the NDC to set up a joint consultation group with the Ministry of Economic Affairs to help SMEs upgrade and transform their business structures, according to Chen.