Speaker Han, Deputy Speaker Chiang, esteemed members of the Legislature:
I hereby present this policy report on the government's recent accomplishments and the nation's future outlook.
On November 29, 2025, the Chi Po-lin Satellite, the first in Taiwan's indigenous FORMOSAT-8 satellite constellation program, was successfully launched, and just before the Lunar New Year, Hai Kun, the first domestically built submarine, completed several shallow-water test dives. Together, these achievements underscore Taiwan's steady progress toward President Lai Ching-te's national vision of setting our sights on the space industry while further developing our strengths as a maritime nation.
With regard to Taiwan-U.S. negotiations on the reciprocal trade agreement and the recent February 20 ruling by the U.S. Supreme Court, our government will closely monitor developments, protect the gains secured and respond prudently. The U.S. side has indicated that the ruling has no bearing on Section 232 of the U.S. Trade Expansion Act of 1962; however, it will continue with relevant investigations and initiate probes under Section 301 of the Trade Act of 1974. Taiwan's negotiating team will carefully assess the situation, maintain close communication with its U.S. counterparts and monitor any potential tariff measures implemented by the U.S. in the future, so as to ensure Taiwan's comparative advantages over other countries.
In a time of profound transformation and advancement, we must rise to meet every challenge with strength and resilience, and pursue a national roadmap toward a more open, prosperous and secure future, striving to shape the Republic of China (Taiwan) into a more enlightened society and a more equitable nation.
A more open Taiwan
Through the collective efforts of Taiwanese citizens and industries, our economy grew by 8.63% in the previous year, with exports reaching a record high of US$640.75 billion. We intend to build on this momentum to energize domestic demand-oriented industries, elevate national strength and boost infrastructure development.
● Implementing a more open land policy
The government is resuming its public land release policy for state-owned flat farmland and state-owned marginal aquaculture land, allowing long-term farmers to obtain legal ownership.
We will also accelerate resident-led urban renewal efforts, while further increasing floor area ratio bonuses, offering an additional 50% to redevelopment projects that provide units for social housing, youth housing or newlywed/childrearing housing.
In addition, we are advancing a land reclamation program to safeguard territorial integrity, prevent coastline erosion and expand land for ports and industrial use.
● Creating a more open financial environment
Private capital is abundant in Taiwan, with total assets in the banking, insurance and securities sectors exceeding NT$133 trillion (approximately US$4.2 trillion), growing nearly 70% over the past decade.
As of November last year, the Asia Asset Management Center initiative has helped the financial sector to reach NT$36.51 trillion (approx. US$1.2 trillion) in assets under management, surpassing the original two-year growth target of NT$4 trillion (approx. US$127.1 billion). Through the Trillion NT Dollar Investment National Development Plan, NT$337.2 billion (approx. US$10.7 billion) has been directed into national infrastructure projects, representing a 112% increase compared with 2024.
The government is seeking the establishment of a sovereign wealth fund, so as to create a national investment platform that will help local industries extend their reach globally while providing reliable sources of capital and a mechanism for sustaining fiscal balance.
Informed by the passage of the GENIUS Act in the U.S., Taiwan is actively pursuing legislation for a virtual asset service act. Furthermore, we are studying the issuance of stablecoins and other virtual asset services to foster industry development, strengthen regulatory oversight and align with international trends.
In the area of personal investment and savings, we are enhancing the benefits and functionality of the Taiwan Individual Savings Account (TISA) system, expanding tax incentives, and building a stable long-term investment framework that encourages broader participation and simplifies investing, thereby fortifying retirement security for citizens.
● Promoting a more open labor policy
To tackle labor shortages across Taiwan's industries, particularly in the tourism, hospitality and commercial port sectors, a plan to enhance the use of transnational labor was officially launched on New Year's Day this year. The plan links the expansion of the migrant worker quota to wage increases for local workers, and relaxes restrictions on retaining experienced migrant workers.
The Act for the Recruitment and Employment of Foreign Professionals has also been amended to further ease work regulations, loosen permanent residency requirements and boost social security protections, with the aim of attracting top international talent, foreign and overseas compatriot students, second-generation overseas Taiwanese and digital nomads.
Meanwhile, an updated policy for hiring foreign domestic helpers is in the final review stage. It aims to reduce the burden of family care and facilitate labor retention, while also prioritizing support for vulnerable and high-need households.
● Advancing a more open energy policy
Developing diversified green energy is the top priority of the government's Second Energy Transition Policy, and we are continuing to roll out the Residential Rooftop Solar Energy Installation Acceleration Plan.
In the offshore wind power sector, the Offshore Wind Farms Channel Vessel Traffic Service (VTS) Center at the Port of Taichung has officially begun operations. Next year, four new radar stations are scheduled for completion, and the VTS system will be integrated with the automatic identification systems of six wind farms, leveraging technology to strengthen wind farm and maritime safety.
Following amendments to the Nuclear Reactor Facilities Regulation Act, Taiwan Power Co. (Taipower) will, in accordance with statutory procedures, submit plans for restarting the Kuosheng and Maanshan Nuclear Power Plants (known as the Second and Third Nuclear Power Plants, respectively) and commence independent safety inspections. Taipower has also signed a Memorandum of Understanding (MOU) with the original designer of the Maanshan plant, which will assist with safety inspections and subsequent technical support.
Committed to attaining nuclear safety, effective nuclear waste management and social consensus, we will take an open approach and actively engage in discussions on advanced technologies, providing reassurance to both the public and industry while ensuring a robust and stable energy supply.
● Introducing more open regulatory measures
In alignment with a more open policy direction, our administrative team has proactively consulted with the public to build consensus and implemented various legal and regulatory measures.
The regulations introduced or updated include:
- Amendments to the regulations for urban renewal floor area bonuses
- Amendments to the regulations for floor area bonuses applicable to unsafe and old urban buildings
- New regulations for work qualifications and permits for foreign technical workers
- Amendments to the Industrial Innovation Statute
- Amendments to the review directions for the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan
- Amendments to the review directions for the Action Plan for Accelerated Investment by Domestic Corporations
- Amendments to the review directions for the Action Plan for Accelerated Investment by Small and Medium-sized Enterprises (SMEs)
- Amendments to the directions for loans for accelerated investment by SMEs
- Amendments to the Implementation Regulations Governing Renewable Energy Certificates
- Amendments to the Electricity Act
A more prosperous Taiwan
Former President Tsai Ing-wen championed the "five plus two" innovative industries plan and Six Core Strategic Industries, enabling Taiwan to capitalize on a critical juncture in global supply chain restructuring. President Lai initiated the Five Trusted Industry Sectors policy, spurring development across a broad range of sectors while fortifying national security and resilience. With Taiwan's industries forging ahead in a new economic landscape, the government is focused on 13 strategic industries to steer the country's future development:
- Semiconductors: Rooted in Taiwan, expanding globally and maintaining industry leadership.
- Artificial intelligence (AI): Creating smart living environments for all through the government's 10 major AI projects.
- Silicon photonics, quantum and other critical technologies: Enhancing the autonomy and resilience of Taiwanese supply chains.
- AI robotics: Fostering high-tech industry linkages, research and development by leveraging Tainan's Liuying Science and Technology Park as the industry hub, and integrating the National Center for AI Robotics in Shalun Smart Green Energy Science City and the AI Robotics Innovation and Development Center in Liujia District.
- Defense: Developing military drones and AI robots, and forging non-red defense industry supply chains.
- Security and surveillance: Building upon Taiwan's trusted industry foundations to align with international standards and accelerate smart technologies.
- Next-generation communications: Accelerating the commercialization of Taiwanese communications products by establishing satellite ground equipment, 6G simulation networks and other testing and verification platforms.
- Critical minerals: Strengthening bilateral cooperation in the mining, refining and exploration of mineral resources under the framework of the Taiwan-U.S. Pax Silica Declaration.
- Biotechnology and medical care: Realizing the vision of a healthier Taiwan by integrating proprietary technologies with data resources and driving innovation in health data services.
- Asia-based asset management center: Applying the experiences of the Kaohsiung Asset Management Zone to other counties and cities to upgrade services and transform Taiwan into Asia's central hub for asset management.
- Basic public infrastructure and urban renewal: Increasing incentives for private sector participation in public infrastructure projects, encouraging resident-led urban renewal, and accelerating the overall upgrading of Taiwan's infrastructure.
- Cultural and creative industries: Designating over 100 "culture base" locations to showcase regional charm while strengthening Taiwan's rich cultural identity and vitality.
- Tourism: Developing a trillion-NT-dollar tourism industry that encompasses the meetings, incentives, conventions and exhibitions (MICE) economy, as well as concerts, international conferences and international competitions.
We are also putting special focus on an ongoing plan for the diversified revitalization and development of micro-, small and medium-sized enterprises (MSMEs). In 2026, the plan will allocate NT$10.9 billion (approx. US$346.5 million) to expand international market channels and facilitate net-zero and digital transformations.
Speaking of digital transformation, last year we focused on the fields of smart dining services and smart health care, successfully introducing such technologies to 551 locations and counting. This year we are expanding to smart manufacturing, smart business services and smart livestock farming.
In February this year, the Advanced Semiconductor R&D Center at Hsinchu Science Park officially began construction. The center will be Taiwan's first next-generation high-tech semiconductor facility with a 12-inch wafer pilot production line. It will support startups and small and medium-sized integrated circuit (IC) design companies by lowering verification barriers and accelerating the commercialization of technologies.
The government is advancing several new measures to encourage childbirth, support childrearing and invest in education. Childbirth allowances have been increased to NT$100,000 (approx. US$3,179) per child, regardless of social insurance enrollment status. Version 3.0 of an in vitro fertilization (IVF) subsidy program now provides up to NT$150,000 (approx. US$4,768) to first-time applicants. Furthermore, our national child care policy 2.0 for ages 0-6 is also reducing the burden of child care on families.
In education, we will continue to alleviate the costs of tuition and fees at private universities and colleges; offer financial aid for student accommodation at colleges and universities; promote a dormitory re-design initiative to improve student living environments; and cultivate talent and research through a scholarship program for doctoral students. Beyond these new measures, we are also looking at expanding eligibility for dedicated savings accounts that will help young people aged 7-18 accumulate their first nest egg for the future.
To realize the vision of a healthier Taiwan, the government last year greatly increased funding for cancer screenings from NT$2.8 billion (approx. US$89 million) to NT$6.8 billion (approx. US$216.1 million) and established a fund for new cancer medicines. To address Taiwan's transition to a super-aged society, we are allocating NT$115.3 billion (approx. US$3.7 billion) this year to the Long-term Care Plan 3.0 to strengthen the integration of home, community, medical and institutional care services.
A more secure Taiwan
In the face of the Chinese Communist Party's ongoing gray-zone harassment, Taiwan's government and people are the armed forces' staunchest supporters. Over the past 10 years, in addition to cumulative salary increases of 14.7% for military personnel, civil servants and public school teachers, we have also made 23 additional adjustments to military allowances across various categories and recently approved additional allowances for drone combat units.
This year's national defense budget totals NT$949.5 billion (approx. US$30.2 billion), accounting for 3.32% of GDP. A proposed special act on procurement to enhance defensive resilience and asymmetric capabilities would allocate NT$1.25 trillion (approx. US$40 billion) over the next eight years to bolster Taiwan's advanced military capabilities, establishing a multi-layer defense structure, introducing high-tech and AI-driven defense systems, and promoting the growth of defense industries.
Under the special act, the U.S. government has already formally provided draft Letters of Offer and Acceptance for three arms sale cases—TOW missiles, Javelin anti-armor missiles and M109A7 Self-Propelled Howitzers. According to the arms sale procedure, the letters must be signed and the first payment made by March 31.
In combating fraud, both the number of fraud cases and associated financial losses have declined since the launch of version 2.0 of our next-generation anti-fraud strategy guidelines and the enactment of four key pieces of anti-fraud legislation: the Fraud Crime Hazard Prevention Act and amendments to the Communication Security and Surveillance Act, Money Laundering Control Act, and Code of Criminal Procedure. Going forward, we will continue to advance our comprehensive campaign against fraud.
A more equitable Taiwan
Following rapid economic growth, we want to ensure everybody enjoys its rewards and to create a more equitable Taiwan.
The government has raised the minimum wage for 10 consecutive years, bringing the monthly minimum wage to NT$29,500 (approx. US$938), with projections that it will exceed NT$30,000 (approx. US$954) next year—delivering tangible improvements to people's livelihoods.
To provide meaningful tax relief, we have increased the tax-deductible allowance for basic living expenses per person to NT$213,000 (approx. US$6,770) and raised the special deduction for individuals in long-term care to NT$180,000 (approx. US$5,721). Next year we will continue adjusting tax exemptions, deductions and tax brackets based on relevant economic indicators.
To further strengthen social benefits, we are increasing the government's contribution ratio to the farmer pension savings system from 50% to 60%; raising the monthly welfare allowance for elderly farmers to NT$10,000 (approx. US$318); and increasing the basic monthly benefit under the National Pension to NT$5,000 (approx. US$159).
Guided by the three principles of improving people's livelihoods, protecting vulnerable populations and maintaining fiscal sustainability, we are also boosting living allowance subsidies for vulnerable groups, including disabled people, low-to-middle income seniors, and disadvantaged children and adolescents.
To enrich young people's lives and encourage them to explore diverse life paths, the government has been issuing three types of digital vouchers—Culture Points, Hakka Coin and Sports Coin—which are redeemable toward spending on corresponding cultural and athletic activities. We will continue to expand the size and scope of these vouchers.
The NT$10 billion (approx. US$317.9 million) Taiwan Global Pathfinders Initiative provides young people with opportunities to engage in international exchanges across various professional fields. This year, the initiative has expanded to offer 34 programs and 355 slots specifically for children from disadvantaged backgrounds, rural areas, indigenous groups, and families facing special hardships, so that young people may dream freely, unhindered by urban-rural barriers or economic circumstances.
Conclusion
As the new legislative session begins, I urge all caucuses, regardless of party affiliation, to put the nation's interests first and support the passage of three key bills: the Executive Yuan's proposed amendments to the Act Governing the Allocation of Government Revenues and Expenditures, to make our economy safer; the central government's 2026 general budget, to make our society safer; and the proposed special act on procurement to enhance defensive resilience and asymmetric capabilities, to make our nation safer.
I firmly believe that now is the finest era of the Republic of China (Taiwan). We are ready to stand atop the highest peaks on the global stage.
I am confident, too, that our renewed national vision will make the Republic of China (Taiwan) more open, more prosperous and more secure. Taiwan must continue to grow into a more enlightened society and a more equitable nation.
Thank you.
