Ministry of National Defense has stated today (31^st) that the Legislative Yuan has passed the “National Defense Industry Development Act” at the session today through reading, and the ministry hereby expresses its gratitude to the instruction and assistance provided by the Legislative Yuan, various political parties, legislators, and relevant ministries during the review period of the act.

In order to implement the policy of autonomous national defense, effectively integrate civil forces, and construct national defense industry, a virtuous cycle of “Economy Constructs National Defense, and National Defense Supports the Economy” is created through a stipulation of a special act by considering the requirements of both national security and economic development, as well as taking into account the features of national defense industry including high technology, highly intelligent intellectural property, and market segmentation; the focuses of the act are shown as below:

1. Establish an Evaluation Mechanism, Reinforce Safety Control:

        To avoid leakage of confidential national defense information, the manufacturer that is involved with the research and development, manufacturing, and maintenance of military items monitored by the Armed Forces are implemented with level evaluation according to the area of expertise of the national defense industry, and the relevant personnel, facility (equipment), and information system are completed with safety inspection to verify its qualified manufacturer status, which precipitates the manufacturer to contain a complete safety management mechanism when participating future national defense affairs to ensure national defense security.

2. Attract Investment from Manufacturers, Expand Market Scale:

        Atttact domestic manufacturers to invest in the national defense industry market and motivate the willingness of investing in the R&D of advanced technology through incentive measures includinf capital and technical investment.

3. Assist with R&D and Trial Production, Cross-domain Talent Cultivation:
        In order to accelerate domestic manufacturers in the national defense industry to participate R&D and trial production, as well as prevent leakage of confidential military items, the help from the government on conducting domestic tests and solving technical obstacles is much required; therefore, a cross-domain collaboration mechanism between government agencies and private institutions must be established for the national defense, economic, and technology sectors to implement talent cultivation as well as the technical collaboration between the national defense industry and academic institutions, which gradually elevates the domestic scientific research energy.

        Ministry of National Defense has further stated that the development of national defense industry is a major target of autonomous national defense, hence the ministry hereby expresses its gratitude to the assistance and support from various sectors during the stipulation period of the act, which establishes a supply chain for the national defense industry, and deepens the autonomous national defense energy. Ministry of National Defense will continue to refine the relevant measures and act to ensure a sustainable development of the national defense industry.