Taiwan government to expand fiscal support amid economic headwinds: BofA

Published 21/08/2025, 10:06
© Reuters.

Investing.com - Taiwan’s government plans to add NT$20 billion to its existing NT$93 billion aid package announced in April to support companies affected by tariffs, according to Bank of America.

The expanded fiscal support comes alongside a proposed universal cash handout of NT$10,000 per person as Taiwan faces currency and tariff pressures, with fiscal policy expected to play the primary role in supporting the hardest-hit businesses.

Bank of America anticipates Taiwan’s fiscal support measures will intensify, leveraging the country’s existing fiscal framework and previous budget surpluses that provide sufficient financial firepower to implement targeted relief.

Expected additional measures include financing access improvements and cost reductions for SMEs through interest subsidies, credit guarantees, and export insurance fee reductions, according to the bank’s analysis.

The fiscal support strategy is also likely to incorporate sector-specific tax incentives, cost waivers, targeted wage subsidies, retraining programs, and consumer subsidies, with supporting vulnerable sectors described as a rare bipartisan priority in Taiwan.

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