http://www.etaiwannews.com/etn/news_con ... g=eng_newsThe government began distributing US$2.5 billion worth of spending vouchers to citizens yesterday in a bid to spur buying and prop the slowing economy.
The global economic slump has undermined Taiwan's economy with demand for high-tech exports dropping sharply in industrialized countries such as the United States.
Long lines formed at dispersal centers where people were handed a stack of vouchers valued at NT$3,600 (US$108). The government is giving away a total of NT$80 billion (US$2.5 billion) worth of vouchers to all citizens regardless of age or income levels.
In Taipei County, nearly 30,000 people were mobilized to distribute the vouchers at stations similar to those set up for elections. Vouchers worth over NT$13.7 billion are expected to be distributed to over 3.82 million residents in the country's largest administrative district.
Officials said the move was expected to add 0.6 percentage point to the GDP growth rate when the voucher plan was first unveiled in November.
Vice President Vincent Siew, who traveled south to his hometown of Chiayi City after receiving his vouchers in Taipei to boost consumption there, said the impact of the move on the domestic economy may not be as great with the world economic situation deteriorating. "We would be happy if the extra retail sales generated could slow a steeper decline of the economy," Siew said.
In November, Taiwan's government projected 2.1 percent economic growth for 2009. Several research groups say, however, the economy could contract as much as 2.0 percent this year.
Meanwhile President Ma Ying-jeou said that Taiwan is the first country in the world to distribute shopping vouchers since the onset of the global economic downturn, and that now was a good time to issue them.
Ma said that although the NT$3,600 in vouchers every citizen will receive is not that much, it is enough to stimulate domestic consumption and directly benefit retailers and department stores, especially in the week before the Lunar New Year holiday begins.
Ma indicated that several nations are closely watching Taiwan's voucher program to determine if they should follow suit.
"I consider this a positive example for the world," the president said.
Ma, who picked up the vouchers for all four members of his family yesterday morning, said he will not use his vouchers all in one go, but will spread out their use over the coming days to encourage more shopping and stimulate the sagging domestic economy.
In southern Taiwan's Tainan County, 21 county councilors of the ruling Kuomintang (KMT) announced that they would donate their vouchers to charity and urged the public to follow their lead.
They said the NT$3,600 amount may be an insignificant amount for those who are well off but can make a difference to disadvantaged families.
Councilor Tsai Yu-huei also urged Tainan's people to spend their vouchers on domestically produced goods, saying that increased procurement can help invigorate Tainan County's economy, which may see unemployment exceed 5 percent in January.
The Cabinet will spend NT$85.7 billion on the voucher program, which it hopes will boost the slumping retail sector and spark economic growth.
One person arriving to collect his vouchers in Hengchun, Pingdong County yesterday morning got an unpleasant surprise after doing so. Police promptly arrested the man, surnamed Su, on his way out as they had an outstanding warrant for his arrest on charges of theft.
Is giving out free shopping vouchers on a holiday season really going to work at all?
