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Premier Cho Jung-tai's oral policy report to 1st session of 11th Legislature

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The following is a translation of selected portions of the premier's report.

Speaker Han, Deputy Speaker Chiang, esteemed members of the Legislature:

I have been invited to present this policy report to the Legislative Yuan today as one of the duties entrusted to me by the Constitution. I feel greatly honored and deeply appreciate the significance of this occasion.

In recent years, Taiwan has faced major shifts in the global environment, including geopolitical instability and restructuring of industrial supply chains, as well as the challenges of transitioning to net-zero carbon emissions and new digital technologies. But thanks to the foresight of former President Tsai Ing-wen and the previous Cabinet's administrative team, Taiwan's development has charted a new course: shifting economic paradigms to regain new growth momentum; creating employment opportunities, raising starting salaries, and implementing worker protections; reforming public finances, expanding social care programs, and strengthening child care and long-term care services; actively promoting green energy; and facilitating digital transformation.

The members of my "active and innovative (AI) Cabinet" and I will be the first to proactively offer solutions, and introduce innovative ideas to make government more effective. Going forward, we will prioritize cracking down on five types of crime—organized crime, financial crime, gun crime, drug crime and fraud crime—in addition to upholding seven types of safety—public safety, food safety, road safety, occupational safety, school safety, housing safety and cyber safety—in order to uphold a stable and just society. As quickly as possible, we will formulate version 2.0 of the government's next-generation anti-fraud strategy guidelines to comprehensively upgrade our fraud-fighting capabilities. And we respectfully request that the Legislature swiftly pass the four anti-fraud draft bills that the Executive Yuan recently submitted for your deliberation, so that our colleagues in law enforcement can have the legal tools they need to curb emerging new forms of criminal fraud.

In addition, to help victims of the recent Hualien earthquake resume normal life as soon as possible, the Executive Yuan will increase the overall budget for reconstruction to match the needs on the ground, allowing people to quickly obtain aid through relief assistance and condolence payments; monetary assistance for relocation, rent and loan interest; and relief subsidies and loan assistance to revitalize tourism and other industries.

Today, Taiwan is not only a paragon of democracy in Asia, but also a critical hub for scientific and technological industries worldwide. Yet we face an ever-evolving state of world affairs, and new challenges at home and abroad. The National Project of Hope is the blueprint that my active and innovative Cabinet will adopt to push forward the nation's development, respond to people's needs and improve social welfare, bringing hope to the next generation.

I would now like to deliver my report summarizing the eight goals and main tasks of the National Project of Hope.

1. Expanding investment in society, easing household burdens

We will expand investment in society and bolster social support systems for child care, education, social care programs, housing, health care and labor. This administration will promote a set of policies to invest in the future generation from ages 0 to 22. The policies will increase subsidies for children ages 0 to 2 attending public and quasi-public care centers, and extend the hours of public preschool care services, which will be made available during winter and summer vacations as well. The policies will also provide free tuition for all students attending senior and vocational high schools, annual subsidies to alleviate the higher cost of tuition and other fees at private colleges and universities, and bigger scholarships for economically disadvantaged students at public and private colleges and universities, thereby reducing the economic burden on students and their parents. We will also publish a white paper on youth policy; set up an NT$10 billion (US$308.5 million) fund enabling young people to travel abroad to expand their horizons and develop international skills; expand investment in higher education and vocational education with regards to the development of teaching and research, international collaboration, and cultivating talent for a diverse range of industries; and help young people elevate their bilingual skills and digital expertise.

Housing costs are an issue of concern, particularly for renters and young people. To alleviate their burdens, the government will accelerate implementation of its program to support 1 million renter households. By 2032 the program aims to achieve a cumulative total of 250,000 newly constructed social housing units, 250,000 rental units through a government subleasing and management program, and 500,000 rent-subsidized households.

Responding to projections that Taiwan will become a super-aged society next year, the government is preparing version 3.0 of its Long-term Care Plan, which will expand national service coverage. The government's social safety net will also be upgraded to ensure it protects each and every person. Together these policies will strengthen child protections and promote better health, guarantee rights and community support systems for disabled people, and create environments friendly and conducive to independent living for elderly people. Cross-system connectivity and integration of social services will be enhanced to better meet the needs of vulnerable households and create a more resilient social safety net. We will also pursue amendments to the Public Assistance Act to broaden conditions to qualify for assistance, so that financially insecure individuals and households can get the help they need.

We will optimize working environments for our friends in the labor community, enforce the Minimum Wage Act while continuing to raise minimum wages, and expand tax incentives for small and medium-sized enterprises (SMEs) to raise employee salaries. This administration will create friendlier workplace environments for older middle-aged people and for family caregivers, to increase their labor force participation rate. We will furthermore strengthen protections for the rights of atypical workers and migrant workers. And the government will continue channeling resources into the national Labor Insurance Fund.

2. Powering the economy with innovation and smart technology

Gross domestic product (GDP) jumped from NT$17.6 trillion (US$542.9 billion) in 2016 to NT$23.5 trillion (US$724.9 billion) last year, with an average annual growth rate of 3.15% over the past 8 years; Taiwan has become the world's 22nd largest economy. By investing in people and through innovation in industry, science, technology and finance, we will propel future economic momentum, creating the next wave of innovative growth and strengthening Taiwan's position in global industrial supply chains. At the same time, we will encourage industries to diversify their development and create more high-quality job opportunities.

The government plans to complete phase five of the Forward-looking Infrastructure Development Program, and, based on the model of the Six Core Strategic Industries, will focus on development of the five trusted industry sectors of semiconductors, artificial intelligence, military, security and surveillance, and communications. We are promoting Taiwan as an "AI island," industrializing AI and integrating AI technology into industries. We will also leverage Taiwan's existing advantages in manufacturing for technological industries, driving cross-sector innovation in technological R&D and application services to spur development across all industries.

To help Taiwanese industries expand worldwide, sell to a global market, but remain based in Taiwan, the government will incentivize both foreign capital and overseas Taiwanese companies to invest here in Taiwan. This administration will employ a multifaceted strategy integrating diplomacy, industrial economy and trade, and technological innovation, and foster bilateral and multilateral cooperation with like-minded countries. As such, we are actively seeking entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Indo-Pacific Economic Framework for Prosperity (IPEF), and other frameworks for regional economic cooperation.

The government will establish platforms to advance technological innovation in the four areas of cutting-edge technology R&D; innovative net-zero technologies; interdisciplinary technology research incorporating the humanities and social sciences; and software R&D. The government will also develop forward-looking technology in the fields of quantum computing, robots, the metaverse and precision health care. We aim for Taiwan to become Asia's central hub for the drone industry supply chain among democratic nations, and to make strides into the global space industry by developing next-generation medium and low Earth orbit communications satellites.

We will create a new society of digital technology that puts people first, promoting smart technologies in government while upholding the belief that innovative progress should benefit everyone. Digital technologies will be applied to develop new services in education, medicine, transportation, the environment and more. We will also pursue digital equality, promote trustworthy mechanisms of data flow, and encourage software R&D and data-driven industrial and social innovation.

The government will also devote full efforts to investing in human resources, strengthening the cultivation of talent required by the nation's industries, supporting Taiwan's youth traveling overseas to broaden their experiences, helping Taiwanese businesses establish transnational two-way R&D centers, continuing to attract the foreign talent that Taiwan needs, and building friendly institutions that encourage retention of migrant workers and foreign and overseas compatriot students.

To support innovation and entrepreneurship, the government will create a thriving "rainforest ecosystem" for startup companies, which is estimated will produce 20,000 new job opportunities within five years and attract NT$150 billion (US$4.6 billion) in startup investment annually, driving Taiwan to become a net exporter of innovative solutions within a decade.

While ensuring stability through oversight, the government will promote the development of financial innovation, environmentally-friendly green finance, digital finance and inclusive finance, and transform Taiwan into Asia's center for both asset management and financial technology innovation. We will also steer domestic and foreign investment toward the development of Taiwan's industries and infrastructure, injecting new vitality into economic growth.

The government will also actively promote a program for the diversified development and revitalization of SMEs and micro-enterprises. This program will accelerate digital transformation of SMEs, traditional industries and service industries; assist regional revitalization; and create a more diverse range of high-quality, higher-paying job opportunities.

The government will continue to improve social welfare programs for agricultural workers, specifically raising coverage for four existing welfare measures—farmers' health insurance, occupational hazards insurance, agricultural insurance and a pension savings system. This administration will also encourage more young adults to get involved in the agricultural industry, broaden smart technology integration in agriculture, promote comprehensive regeneration of rural villages, develop new agricultural industry chains, and increase the value of agricultural produce to stabilize the income of agricultural workers.

3. Promoting green growth and net zero by 2050

In order to make progress toward the transition to net-zero carbon emissions by 2050, the government will invest NT$900 billion (US$27.8 billion) by 2030 to guide investment in green energy both domestically and abroad, thereby turning the challenge of climate change into an opportunity for green growth.

We will promote a second energy transition with the primary goal of ensuring stability and security of power supply, while moving toward a nuclear-free homeland in accordance with our obligations under domestic law. This will involve developing diverse forms of green energy that are both technologically smart and beneficial to all of society, as well as promoting natural gas as a bridge fuel to combine with carbon capture, utilization and storage (CCUS) technology. We will also promote deep energy saving, spur on the development of the domestic energy-saving industry, encourage businesses to engage in technological energy storage, and build a strong and resilient power grid.

Furthermore, the government will promote both digital transformation and green transformation in industries. Through green finance, technological innovation, carbon pricing and market mechanisms, we will guide the low-carbon transformation of industries, develop green manufacturing and the circular economy, and promote net-zero green lifestyles, green buildings, low-carbon transportation and low-carbon diets.

4. Expanding medical investment for a healthier Taiwan

We will promote an enhanced plan to cultivate a healthier Taiwan, focusing on four main areas: talent cultivation, smart health care, social responsibility, and optimizing work conditions for medical professionals. We will also continue to allocate funding and increase revenue sources for National Health Insurance, as well as improve division of care throughout the medical system, in order to build a more sustainable health care model.

The government will improve the remuneration of primary care staff, accelerate the integration of smart medicine into health care, enhance the medical care environment, and support more talented individuals to enter the medical profession.

To enhance the quality of health care, we will strengthen the primary care network and the family medicine system. We will adopt a multi-faceted approach to reduce cancer deaths by one-third by 2030. This administration will also promote good nutritional and exercise habits, and complete the establishment of 100 community mental health centers by 2028 to support people with mental disabilities and their families.

5. Balancing development to spread hope across Taiwan

To realize President Lai Ching-te's goal of balancing regional development across Taiwan, the government will promote a total of 140 infrastructure projects related to local development, including the water environment, railroads, highways, airports and ports. We will also support regional governance to foster the diversity and vitality of local communities and advance regional revitalization.

This administration will continue to effectively manage the nation's water resources through a combination of water resource development, water conservation measures, water allocation adjustment, and the creation of auxiliary networks. This includes promoting anti-siltation projects and environmental conservation management, improving the water supply system and building auxiliary pipelines, as well as promoting the construction of reclaimed water and seawater desalination plants.

The government will also proactively improve railway and public road construction, including extensions of Taiwan High Speed Rail to Pingtung and Yilan counties; fully dual-tracking Taiwan Railway Corporation's east coast line between Hualien and Taitung; and promoting elevated or underground railways and mass rapid transit construction projects in metropolitan areas. We will also continue to optimize public transportation in remote areas and on outlying islands to broaden transportation equality. Additionally, we will push forward completion of the Terminal 3 project at Taoyuan International Airport, and promote airport and runway improvement projects across the country, as well as expand port construction and container throughput to transform the nation into a major cruise tourism locale in Asia. These policies will strengthen international links, turning Taiwan into a transportation and logistics hub for the Asia-Pacific region. Furthermore, in order to establish a pedestrian-centric safe road environment, the government will invest NT$40 billion (US$1.2 billion) to promote a sustainable pedestrian safety enhancement plan.

In response to a number of recent food safety incidents, the government is investing NT$7.4 billion (US$228 million) in a food safety infrastructure plan under the Forward-looking Infrastructure Development Program, which is enhancing the capacity of biological laboratories and food safety inspections to protect the public.

6. Cultivating soft power, building a national brand

We will harness the Cultural Fundamental Act to empower cultural diversity as a driving force for Taiwan's advancement. We will expand Taiwan's cultural content output and develop a "Taiwanese Wave" economy based on exporting Taiwanese pop culture abroad. We plan to establish a ministry of sports to increase spending for the promotion of fitness and sports for all, and for the growth of the domestic sports industry. We will also build Taiwan into an international tourism brand by integrating local features, upgrading service quality and strengthening international marketing in order to elevate tourism to a "trillion-dollar" industry by 2030.

7. Achieving a pluralistic, egalitarian, prosperous society

This administration will formulate policy guidelines for the mainstreaming of Taiwan's ethnicities to ensure all ethnic groups enjoy equal opportunities for participation and development. To fulfill our responsibilities under the Development of National Languages Act, we will also establish a center for the research and development of national languages, to promote the revitalization, sustainable development and continued inheritance of Taiwan's languages.

In order to maintain the status recognition and cultural heritage of all indigenous peoples, the Executive Yuan will rapidly complete amendments to the Indigenous Peoples Status Act. We will also implement the Indigenous Peoples Basic Law to facilitate and promote the autonomy of Taiwan's indigenous peoples.

The government will support the Hakka cultural content industry to promote the formation of an international "Hakka wave," and expand a Hakka village revitalization and environmental development program, while also continuing to promote the Hakka 369 Project to revitalize local Hakka cultural industries. Furthermore, we will strengthen the functions of the Executive Yuan's coordination meetings on new immigrants' affairs and additionally establish a development policy for new immigrants.

In order to build a gender-friendly and equal society, the government will uphold three gender equality laws, create family-friendly workplaces, promote gender equity education across all age groups from diverse perspectives, facilitate women's participation in decision-making positions, and cultivate female talent within public affairs.

8. Forging a resilient Taiwan, upholding security and peace

We will conduct healthy and orderly exchanges with the other side of the Taiwan Strait based on the premises of reciprocity and dignity. In order to maintain peace and stability in the Indo-Pacific region, we must enhance our national defense capabilities through policies including the reinstatement of one-year compulsory military service, all-out national defense and the indigenous military aircraft and shipbuilding programs, so as to protect our sovereignty and enhance homeland security, digital security and social resilience.

The government will strengthen the nation's disaster response and risk management systems, enhancing the disaster prevention planning and response capabilities of central government agencies and local governments, as well as regularizing disaster response drills and exercises. We will also establish a digital trust framework, and expand development of highly resilient telecommunications industries and information security industries to improve the data security and protection capabilities of government, industry and civil society. We must also bolster the nation's ability to uphold maritime security in order to guarantee the safety of the fishing and marine recreation industries by comprehensively strengthening maritime law enforcement, rescue and patrol capabilities, and continued international coast guard cooperation.

We will deepen our cooperation with democratic nations, consolidating ties with our diplomatic allies and friends in the U.S., Europe, Japan and more, and continue to promote the New Southbound Policy while also cooperating more closely with likeminded countries to promote a free and open, peaceful and prosperous Indo-Pacific region.

Taiwan is a trusted partner of the world's democracies and holds a vital geopolitical position in the Indo-Pacific region. We must work closely and cooperate proactively with the rest of the world in order to achieve mutually beneficial outcomes. By pursuing reconciliation and coexistence between political parties, peace and co-prosperity across the Taiwan Strait, and mutually advantageous cooperation with our democratic partners, the Republic of China (Taiwan) will assuredly become a fairer society and a more enlightened nation.

Thank you!

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