Taiwan announced an economic stimulus package Thursday worth 5.6 billion US dollars less than four months since the president took office as growth flags and the stock market struggles.
The initiative, worth 180 billion Taiwan dollars, would help the island achieve the government's target of 4.3 percent economic growth this year and shore up the ailing stock market, officials said.
"The package aims to stimulate spending, boost investment and infrastructure, and stabilise financial markets," said Chen Tian-jy, the chairman of the Council for Economic Planning and Development.
But Taiwan's stock market tumbled just over three percent Thursday to a 33-month low, even though the package includes a provision of 30 billion dollars to halve the stock transaction tax to 0.15 percent for six months.
Taiwanese President Ma Ying-jeou was inaugurated in May after sweeping to a landslide victory largely on pledges to boost the island's economy and achieve six percent annual economic growth, partly by improving ties with rival China.