Industry Minister Kacır Unveils New Incentive System
The Minister of Industry and Technology, Mehmet Fatih Kacır, announced new support programs aimed at protecting employment in SMEs. Minister Kacır stated that if SMEs maintain their employment levels until the end of 2024, they will receive support of up to 2,500 Turkish liras per employee in four sectors.
The young population will be employed in the region Minister Kacır noted that the average age has fallen to about 23-24 in some regions of Turkey, which is why efforts are being made to employ the young population in these areas. He highlighted that during the ruling of the AK Party, 20 organized industrial zones were established in 9 cities, generating over 360,000 additional jobs. In this context, Kacır emphasized that the most progressive investment incentives are provided in the region known as the 6th Zone, adding that the obligation for employers to pay monthly insurance premiums for new investments has been removed.
With these incentives in place, investments exceeding 1 trillion Turkish liras have been encouraged through more than 15,000 projects, creating 710,000 job opportunities. Kacır expressed their belief that this region could become a center of development beyond Turkey. The aim is to develop the region, employ the young population locally, and serve as a development locomotive for surrounding areas.
SMEs will receive employment payments in February Kacır highlighted that more than 1.2 million people are currently employed in the ready-to-wear, textile, leather, footwear, and furniture sectors, which generate an annual export of 37 billion dollars. To maintain the employment level in these sectors, support of up to 2,500 Turkish liras per employee will be provided through KOSGEB. Kacır stated that the new program will be simple and free from bureaucracy, indicating that SMEs will receive payments in February if they preserve their employment levels in January of this year.
The minister also expressed that these supports aim to enhance branding, design, and R&D capabilities in the sectors as well as to protect employment. He stated that efforts would continue to increase the global competitiveness of the sectors and to take significant steps in Turkey's industrialization process.
A new incentive system is on the way Kacır drew attention to the 2025 agenda, announcing that the process regarding the incentive system has been completed in collaboration with the Strategy and Budget Directorate and the Ministry of Treasury and Finance, and it will be announced soon. He pointed out that the main approach of the new incentive system is to strongly support labor-intensive sectors in provinces with a young population and to enhance the match between provinces and sectors. Comprehensive supports will be provided for investments that will convert the economic potential of each province into value as part of the Local Development Initiative Program.
Kacır also emphasized that technology-focused industrial initiatives and programs that add value through high technology will be supported more effectively. The new incentive system aims to accelerate Turkey’s development goals in the fields of industry and technology.