Taiwan's government on Tuesday announced new measures to promote growth in its export-reliant economy, largely by strengthening domestic consumption.
The new plan, announced by Premier Jiang Yi-huah in Taipei, involves measures to boost investment, along with consumption, as external demand remains weak.
The government said it may allow insurers to invest in public infrastructure projects and may consider reviewing the new capital gain tax on stock investments plans. It also plans to subsidize electronic home appliances that are more energy-efficient.
President Ma Ying-jeou has recently stepped up efforts to revive trade relations with major markets including the US and China to counter his dwindling popularity.
In March, Taiwan and the US resumed trade talks to strengthen economic ties after Taipei agreed to scrap a six-year-old ban on US beef imports. Ma has also sought closer co-operation with China since his re-election.
Last week, Taiwan's statistical office reduced its outlook for 2013 to 2.4 percent from previously forecast 3.59 percent. The gross domestic product grew 1.67 percent in the first quarter of 2013 from a year earlier.
The statistical office estimates the growth in external trade to be limited due to the softened expansion of the global economy and strong competition from abroad.
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