TAIPEI -- Taiwan's government is considering allowing red-light districts on the island, a minister said Friday, in a controversial bid to legalize prostitution.

"We are currently researching this and the cabinet's human rights committee will make a decision," Vice-Interior Minister Lin Join-sane told reporters.

According to the ministry, sex workers may be licensed to work in special zones in a move aimed at better monitoring the sex trade and preventing the spread of sexually transmitted diseases.

However, the plan has drawn a mixed reaction, with some critics saying it would help reduce crime while others worry it could hurt Taiwan's image.

"We have to be prudent as the trend is to phase out red-light districts. Our national image is very important," said lawmaker Lee Ching-hua of the ruling Kuomintang (KMT).

Under existing laws, prostitutes face detention of three days or a fine of up to 30,000 Taiwan dollars (888 US) if they are caught providing sexual services. Their clients go unpunished.

While there is no official estimate of the scale of Taiwan's sex industry, it is estimated to involve up to 800,000 people and generate an annual revenue of at least 60 billion Taiwan dollars.

About 30 prostitutes are licensed nationwide under laws enacted in 1957. However, the government has since stopped issuing licenses, allowing these permits to be phased out.