A reverse mortgage trial program and early childhood education reforms were discussed at today's meeting of the Executive Yuan's Social Welfare Promotion Committee.
The premier said the government should take the initiative in planning and promoting the trial mortgage program, as private financial institutions are not eager to extend this service because they do not yet have experience in the field.
Some senior citizens are strapped for cash because the value of their homes is higher than the wealth ceiling for eligibility for social security. Under this program, they could convert their real estate into a cash annuity to safeguard their standard of living. With Taiwan's aging population and high rate of home ownership, many people could benefit from having this option available, and more people may become aware of the need to be self-reliant in old age.
The program will allow the financial and insurance sectors to accumulate information and experiences for future reference in order to offer similar or related services in the future, the premier said, and he instructed the Financial Supervisory Commission to extend relevant assistance to these financial institutions.
Chen was also briefed by the Ministry of Education (MOE) on the results of its policy of upgrading all nurseries to kindergartens. "Child care is one aspect of education," the premier said. "Since the Early Childhood Education and Care Act went into effect on January 1, 2012, the MOE has assisted local governments to complete the system change of 6,999 kindergartens and nurseries, both public and private, for a highly successful completion rate of 99.52 percent."
In response to the suggestions of committee members—which included encouraging enterprises to set up nurseries, setting up community-administrated nursery centers in outlying areas and improving nursery care for single parents and disadvantaged families—Premier Chen responded that although the supply of public nurseries and kindergartens following this system change is sufficient overall, services in outlying areas and for disadvantaged groups still have room for improvement.
The premier asked the MOE to coordinate with related agencies to continue collecting information and making timely adjustments to complete the objectives of the law.
The improvement of the economy will have a positive effect on social welfare programs in general, as the government will have more funding to develop services, Chen also remarked.
The premier cited the improvement of Taiwan's color-coded economic indicator from blue to green (symbolizing stability), the year-on-year economic growth rate of 3.42 percent in the fourth quarter of last year and the increase in the Manufacturing Index, which shows the economy is picking up.
Chen was also briefed on the progress of other policies previously decided by the committee. After thanking the committee members for their participation and recommendations, he wished them a happy Lunar New Year.