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Taiwan government plans NT$1 trillion stimulus package

[TAIPEI] Taiwan's government said on Friday it is planning to implement an eight-year stimulus package of up to NT$1 trillion (S$45.7 billion) by end of this month in a bid to boost the island's export-driven economy.

The move follows a pledge made by President Tsai Ing-wen when she took office in 2016 to increase domestic investments and achieve stable economic growth via infrastructure improvement projects, including digital, green energy and water resources.

Addressing parliament, Premier Lin Chuan did not specify the exact amount of stimulus investment, which will need legislative approval, only saying that it should be close to earlier estimates of NT$800 billion to NT$1 trillion. "We're proposing infrastructure projects here which need to be done sooner rather than later," he said.

Taiwan recently raised its 2017 economic growth target to a three-year high on expectations it will benefit from stronger global demand for tech gadgets though growing signs of US trade protectionism remain a downside risk.

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Taiwan's exports are widely expected to take a hit if US President Donald Trump implements more protectionist trade and economic policies later this year.