390. We are happy to co-sponsor the paper. Our industrial structure is composed mainly of SMEs, accounting for nearly 98% of the total number of enterprises, thus highlighting the importance of providing assistance to innovative R&D SMEs to obtain funds – one of our policy objectives. However, innovation-based MSMEs often have difficulty accessing capital through traditional means due to the relatively low level of financial inclusion worldwide.
391. SMEs tend to have relatively fragile financial structures due to their sizes and difficulties obtaining capital. In order to assist SMEs in obtaining funds, the government has established the Small and Medium Enterprise Credit Guarantee Fund (SMEG) to provide credit guarantees for enterprises with potential, stable business operation, and good credit scores – resolving the challenges SMEs face in obtaining financing from financial institutions such as insufficiency in collateral.
392. In addition, for SMEs that research and develop innovative products or provide innovative services, we offer the Directions for SME Innovation Development Project Loan, which provides loans to enterprises with innovation potential, recipients of innovation awards from either home or abroad, or R&D subsidy grantees, so as to encourage innovation and assist their continuous growth and development. This programme offers up to TWD 100 million, and the aforementioned SMEG provides a minimum credit guarantee of 80% of the loan limits; as for start-ups that have been established for less than five years, the minimum guarantee percentage is 90%.
393. The Statute for Industrial Innovation was amended in 2017 to introduce a legal framework for the valuation of intangible assets. Since 2020, SMEG has been able to provide an over 80% guarantee for the loan of SMEs or start-ups that meet the qualifications upon the board of experts' approval. We strive to effectively assist innovative MSMEs and startu-ps in obtaining sustainable funding and ensure enterprises' stable developments. In pursuit of this goal, the means, and measures to achieve it require our further thought and deliberation. We welcome all Members to kindly share related measures and experiences regarding this topic with us.