Taiwan’s Ministry of Economic Affairs (“MOEA”) recently announced a draft amendment to Article 43 of the Statute for Industrial Innovation, proposing changes to the mechanism for providing public land required for industrial park development. The amendment is intended to prevent existing public land management procedures from delaying development projects and to facilitate the acquisition and use of industrial land. 

Under Article 25 of the Land Act, a municipality, county or city government generally may not dispose of, encumber, or lease public land under its administration for a term exceeding ten years without the consent of the relevant local council and approval of the Executive Yuan. Under Article 43, Paragraph 3 of the proposed amendment, where public land provided by a municipal, county or city authority does not exceed one-tenth of the total area of the industrial park, or does not exceed five hectares in total, such provision would be exempt from the restrictions under Article 25 of the Land Act and relevant local government regulations governing public land management. 

The draft amendment also provides that where a public or private enterprise or an industrial park developer requires public land for industrial park development, the competent public land authority may provide such land in accordance with the generally applicable rules governing the use, revenue generation, management and disposition of public land, rather than being required to proceed by way of sale in all cases. This approach also reflects the government’s policy of generally refraining from selling large tracts of state-owned land. 

If enacted, the amendment is expected to streamline procedures for industrial park projects involving public land and may shorten the time required to secure project sites. Businesses considering the acquisition or use of industrial land, or participation in industrial park development in Taiwan, should monitor the legislative process and assess the applicable requirements for individual projects.