Asia Express - East Asian ICT
Taiwanese SME Applications for COVID-19 Wage Subsidies Break US$5 Billion in 10 Days
April 08, 2020

Due to COVID-19 pandemic, Taiwanese SMEs (Small and Medium Enterprises) have been significantly affected. Taiwan’s MoEA (Ministry of Economic Affairs) recently announced that the total applications from SMEs for COVID-19 wage subsidies has topped over NT$16 billion (US$5.4 billion; U$1 = NT$29.5) in total within 10 working days, the China Times News reported on April 6. Applicants include B&B, hotel, and night market vendors and applications are expected to peak in April and May after adding fitness centers, restaurants, and entertainment businesses to the subsidy program. In addition to a loan extension, the government will lower the interest rate by 0.81 percentage points and provide wage subsidies to ensure these businesses to make their best efforts to retain employees and business for the subsidized period. As of April 2, the Taiwanese government has prepared up to NT$1.5 trillion (US$ 51 billion) subsidies to help bail out individuals, households, businesses, and specific industries, which have experienced a significant decline in revenue.