Taiwan intends to set up a sovereign wealth fund.
President Lai Ching-te announced the plan during a national address in conjunction with his first year in office on May 20, saying that the aim is to boost the island’s economic momentum.
“With our sights set on the whole globe, we will invest in international markets, while the government will also set up a sovereign wealth fund and build a national-level investment platform,” he said.
“We will make full use of Taiwan’s industrial advantages and, with the government taking the lead and synergising private-sector enterprises, expand our global presence and link with major target markets of the AI [artificial intelligence] era,” he added.
He said the government will propose legislation to create the fund, without providing a timeline.
A number of Asian governments have established sovereign wealth funds in recent years.
Indonesia has two: the Indonesia Investment Authority, to invest in infrastructure assets, and Danaharta, launched three months ago as President Prabowo Subianto’s main vehicle to achieve his 8% economic growth target within four years by managing shares of state-owned enterprises and reinvesting the dividends in commercial projects.
The Philippines and Malaysia’s Sarawak state have also launched their own wealth funds.
