Taiwan President Lai calls for multi-industry 'guardian mountain chain' to broaden economic base
President William Lai in his Double Ten National Day address called for multiple industries across Taiwan's economy to form a 'chain of guardian mountains', rather than relying on a single pillar such as TSMC. He outlined government measures including a NT$100 billion SME programme, expanded foreign
President William Lai yesterday called for Taiwan to develop a "chain of guardian mountains" across many industries to broaden the foundation of the nation's economic strength, in his Double Ten National Day address. Leading companies expanding overseas should help their supply chains establish deeper roots in Taiwan, Lai said. The statement appeared to refer to Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a pillar of Taiwan's economy.
Lai highlighted Taiwan's strong economic performance, with growth of 14.15 per cent in the first half of the year. Full-year growth could exceed 11 per cent, which would be the highest in 39 years, while per capita GDP was projected to reach US$45,332, almost double its 2016 level. The TAIEX has reached 49,000 points, making it the fourth-largest stock market by market capitalisation, and Taiwan placed fourth in the Institute for Management Development's World Competitiveness Ranking this year.
To sustain competitiveness, the Executive Yuan is accelerating development of strategic industries and emerging technologies, Lai said, highlighting the government's "Five Trusted Industry Sectors" — semiconductors, artificial intelligence (AI), defence, security and surveillance, and next-generation communications — alongside three core technologies targeted by its 10 new AI infrastructure initiatives: silicon photonics, quantum computing and robotics. Other priorities include critical minerals, biotechnology and healthcare, an Asian asset management hub, public infrastructure and urban renewal, cultural and creative industries, and developing tourism into a trillion-NT-dollar industry.
A NT$100 billion (US$3.14 billion) programme for micro, small and medium-sized enterprises would support their financing, workforce training, digital transformation, net zero upgrades and access to international distribution channels. To address labour and talent shortages, the government would maintain Taiwanese workers as the primary workforce and supplement them with foreign workers. Amendments to the Act for the Recruitment and Employment of Foreign Professionals would also expand opportunities for foreign professionals to come to and remain in Taiwan, and for foreign students to stay after graduation.
On energy, the government would pursue stable electricity supply, energy security and a net zero transition through renewable generation, storage, conservation and grid upgrades, and would assess different energy options based on scientific evidence, legal procedures and safety standards. On housing, the government will continue its programme supporting 1 million renter households by expanding supply and providing rental assistance. A larger proportion of social housing would be reserved for newlyweds and families with young children, and the government would raise the amount they can borrow under the Preferential Housing Loans for the Youth 3.0 programme.
As for the declining birthrate, the government from next year plans to introduce a NT$5,000 monthly allowance for every child from birth until they reach 18, accompanied by expanded childcare services, more family-friendly workplaces and housing assistance. The Long-term Care 3.0 plan launched this year aims to bring medical and community services together so that older people can receive care in familiar surroundings.
