TAIPEI (TVBS News) — President Lai Ching-te (賴清德) announced Wednesday (May 20) that Taiwan will provide a monthly NT$5,000 (around US$158) "growth stipend" to every citizen from birth through age 18. The new family subsidy plan, unveiled during Lai's second anniversary address at the Office of the President (總統府), aims to reverse Taiwan's rapidly declining birthrate. The government estimates the policy could cost roughly NT$200 billion (around US$6.31 billion) annually.
Taiwan recorded just 8,144 births in April, according to government statistics. The island's total fertility rate stood at 1.12 in 2025, placing it among the world's lowest alongside Japan at 1.41 and China at 1.20. The demographic decline carries growing economic implications, including labor shortages, an aging population and long-term pressure on healthcare and pension systems.
"Taiwan's future cannot be decided by outside forces," Lai said in his address. He warned that demographic decline has become an increasingly serious domestic challenge requiring urgent action. The government reviewed existing pro-birth policies and concluded additional measures were necessary after birth numbers continued declining in recent years, Lai said.
Part of the monthly subsidy will be placed into future savings accounts for children, allowing them access to funds for education, entrepreneurship or major expenses once they reach adulthood, according to the proposal. Lai said rising tax revenues and economic growth would allow the program to move forward without affecting other government spending. Details on implementation timeline and funding mechanisms were not immediately available.
Other East Asian governments facing similar demographic pressures have rolled out large-scale child subsidies and family incentives in recent years, though results have remained mixed. South Korea, which recorded a fertility rate of 0.72 in 2023, has spent over US$200 billion on pro-natalist policies since 2006 with limited success. Japan has similarly expanded childcare subsidies and parental leave programs.
The scale of Lai's proposal signals growing urgency from Taiwan's government as it addresses demographic challenges. The National Development Council (國家發展委員會), Taiwan's cabinet-level planning agency, has warned that the working-age population could shrink by 3.3 million people by 2040 without intervention. Whether the new subsidies will significantly boost birthrates remained unclear. ◼ (At time of reporting, US$1 equals approximately NT$31.68)