Legislative Yuan Proposes Further Cuts to Drone Budget; Kung Ming-hsin: 'Like Losing Both Arms,' Laments Industry May Have to Fend for Itself

The KMT caucus in Taiwan's Legislative Yuan has proposed suspending the 'Unmanned Vehicle Industry Development Integrated Program' and eliminating its entire budget for fiscal year 115. Economic Affairs Minister Kung Ming-hsin responded on the 22nd, expressing profound disappointment and concern, stating that the previous deletion of defense-related drone funding had already felt like losing one arm, and now cutting economic ministry drone budgets would be like losing the other arm, leaving the industry disheartened and fearful of having to survive on its own.

Speaking before the Economic Committee session at the Legislative Yuan, Kung noted that Taiwan's industrial sector is generally feeling disheartened and anxious about U.S. presidential candidate Trump's proposals on defense spending and additional tariffs. Kung stated, 'This appears to have significant impact. From our understanding, the industry was already deeply disappointed when the previous special defense legislation failed to pass, resulting in the elimination of drone-related funding.'

Kung emphasized that the current proposed deletion of the Ministry of Economic Affairs' overall budget represents a consecutive blow to the industry. He said, 'Previously, one arm was cut; now the other arm is being severed. This means the industry will have to fend for itself in the future.' He stressed that without government policy or budgetary support, the impact would be enormous, and he hopes the budget cuts do not ultimately pass, as deliberations are still ongoing.

Regarding U.S. election-related issues on tariffs and defense spending, the government is actively communicating with U.S. counterparts through various channels to safeguard Taiwan's industrial interests. Meanwhile, in response to cost and inventory pressures faced by edible oil and food service industries, the Ministry of Economic Affairs has coordinated to extend production increases and inventory periods until the end of August and has initiated emergency import mechanisms from abroad. A consultation meeting with downstream food manufacturers will also be held this afternoon to fully assist the industry in overcoming difficulties and maintaining stability in the domestic oil market.

Kung explained that the Industrial Development Bureau has communicated with multiple edible oil producers and conducted inventory assessments. Due to some producers facing pressure in increasing output and adjusting inventory, the Ministry has coordinated to extend the production and inventory timeline until the end of August. After August, the Ministry will assist producers in launching emergency imports from overseas and will hold a consultation session this afternoon with downstream food industry players to gain a deeper understanding of their current situation and needs.

Kung emphasized that for projects that meet regulations and pass evaluation, the Ministry will fully assist and listen to all stakeholders to maintain stability in the domestic oil market. He stated, 'The good news is that the Food and Drug Administration has already clarified:不合格 products cannot be sold—that's a health principle. But合格 products can be actively brought to market. The FDA has already made this public, and we understand how we can assist food manufacturers in their follow-up actions.'