Taipei: Taiwan's opposition parties, the Kuomintang (KMT) and the Taiwan People's Party (TPP), have introduced an initiative aimed at establishing government-funded investment accounts for children, which they believe will alleviate financial burdens on parents and address the nation's declining birthrate.
According to Focus Taiwan, the proposal, known as the "Taiwan Future Accounts," was unveiled during a press conference. The initiative targets children aged 12 and under who have valid household registration in Taiwan, approximately 2.26 million individuals. The government plans to deposit an initial NT$50,000 (US$1,591) into each account, followed by an annual contribution of NT$10,000 until the child reaches the age of 12. These funds would be invested in index funds on Taiwan's stock market.
The proposal allows parents or guardians to make additional deposits, though the accounts would remain under the children's ownership. The funds would become available when the account holder turns 18, offering financial support for higher education, entrepreneurial endeavors, home purchases, or investments.
TPP Chairman Huang Kuo-chang cited inspiration from the "Trump Accounts" recently announced in the United States, describing the program as an investment in Taiwan's future generations. He emphasized the urgency of addressing the decreasing birthrate, which is projected to fall below 110,000 by 2025. Trial calculations indicate that a Taiwan Future Account could grow to NT$339,000 (US$10,782) by maturity, or NT$561,000 with parental contributions of NT$10,000 annually.
KMT Chairperson Cheng Li-wun emphasized that a Taiwan Future Accounts Fund Management Committee would oversee the program's funds. She highlighted the dual benefits of supporting young adults and stimulating the local stock market and economy. The initiative is projected to cost NT$113 billion in its first year, with an annual investment of NT$26 billion, assuming 120,000 new births annually.
The proposal has drawn mixed reactions. The Ministry of Health and Welfare underscored the need for comprehensive planning and prioritization of those in need, given the government's existing budget constraints. Democratic Progressive Party legislative caucus leader Chung Chia-pin expressed constitutional concerns, referencing Article 70 of the ROC Constitution, which restricts legislative proposals for increased expenditures in budgetary bills submitted by the Executive Yuan.