Introduction: In a strategic move to enhance Taiwan’s global competitiveness, Premier Cho Jung-tai announced on Tuesday that the government will propose the creation of five NT$10 billion (US$308.2 million) funds. These funds are aimed at fostering development in crucial sectors such as artificial intelligence (AI), smart healthcare, green technology, and youth empowerment initiatives. The funds will be part of Taiwan’s ongoing efforts to maintain its economic momentum and sustain growth in the coming years.
Details of the Five New Funds: During a business breakfast hosted by the Chinese National Association of Industry and Commerce (CNAIC), Premier Cho outlined the government’s vision for Taiwan’s economic future. The five funds will focus on areas that are expected to drive innovation and economic transformation, ensuring Taiwan remains competitive in the global market.
The five areas receiving funding will include:
- AI Development – To advance Taiwan’s AI capabilities and applications across various industries.
- Cultural and Creative Industries – A fund aimed at fostering innovation and supporting Taiwan’s cultural sector.
- Smart Healthcare – Integrating cutting-edge technologies like AI, IoT, and big data into healthcare delivery systems to enhance services.
- Green Growth – Promoting environmentally sustainable development while boosting the economy.
- Youth Overseas Dream Fund – A new initiative to support young people’s participation in international volunteer programs, internships, and study opportunities.
Boosting Taiwan’s Economic Growth: Premier Cho emphasized that Taiwan’s economy is projected to grow by over 4% this year, building on the strong growth seen under President Tsai Ing-wen’s leadership, where Taiwan’s average annual economic growth reached 3.14%. To continue this positive trajectory, the Executive Yuan will convene a third meeting of its Economic Development Commission in December to discuss the proposed funds and their expected impact.
The Economic Development Commission, formed in July, is responsible for strengthening Taiwan’s economic foundations. Under the leadership of Premier Cho, the commission aims to enhance Taiwan’s competitiveness on the global stage.
Renewable Energy and Nuclear Energy Debate: In addition to the economic development funds, Premier Cho also addressed Taiwan’s future energy strategy. The government will continue efforts to reduce coal usage in favor of natural gas and renewables. However, Cho also hinted at a potential shift in Taiwan’s stance on nuclear power. While the ruling Democratic Progressive Party had pledged to phase out nuclear energy by 2025, Cho expressed openness to exploring new nuclear technologies, provided they are safe, solve the nuclear waste issue, and have public support.
Cho added that Taiwan’s electricity mix in 2023 consisted of 42.2% coal, 39.5% natural gas, 6.3% nuclear, 9.5% renewable energy, and 2.4% from other sources.
Economic Goals for the Next Four Years: Looking ahead, Premier Cho set ambitious economic goals for the government’s next four-year term. These include:
- Maintaining GDP growth above 3%.
- Raising GDP per capita to US$40,000, up from US$32,319 in 2023.
- Keeping the unemployment rate below 3.5% and inflation stable at 2%.
The government is also preparing for the upcoming U.S. presidential transition and has formed a specialized team to focus on Taiwan-U.S. trade relations. Efforts to finalize a U.S.-Taiwan bilateral trade agreement and gain membership in international trade pacts will continue.
Key Focus Areas for the New Funds
| Sector | Focus Area | Key Objectives |
|---|---|---|
| Artificial Intelligence | AI Development | Promote AI innovation across industries. |
| Cultural & Creative | Cultural & Creative Industries | Foster creativity and support cultural initiatives. |
| Smart Healthcare | Healthcare Innovation | Improve healthcare services through AI, IoT, and big data. |
| Green Growth | Sustainable Development | Promote green technologies and environmental sustainability. |
| Youth Overseas Fund | International Exposure for Youth | Support young people’s overseas learning, volunteering, and internships. |
Frequently Asked Questions (FAQs)
1. What are the five new NT$10 billion funds for? The funds will support development in AI, smart healthcare, green growth, cultural industries, and youth international engagement programs.
2. When will the new funds be launched? The government is set to propose these funds during a meeting of the Economic Development Commission in December 2024.
3. How will these funds boost Taiwan’s economy? These funds are designed to enhance Taiwan’s technological innovation, economic sustainability, and global competitiveness in key sectors, driving future growth.
4. Is Taiwan reconsidering its stance on nuclear energy? Yes, Premier Cho expressed openness to exploring new nuclear technologies, provided they are safe and have public support, despite previous pledges to phase out nuclear power by 2025.
5. What are the government’s economic goals for the next four years? The government aims for GDP growth above 3%, GDP per capita of US$40,000, and an unemployment rate below 3.5% while keeping inflation at 2%.
