President Lai Ching-te recently announced the establishment of a sovereign fund, currently under discussion by the National Development Council with relevant ministries. Wang Chien-chuan, Deputy Director of the Chung-Hua Economic Research Institute, proposed specific recommendations on the 5th, suggesting that the fund's resources could integrate both government and private sector capital, with 70% to 80% allocated for investment and 20% to 30% dedicated to industrial policy.

In the forum, Wang noted that while U.S. President Trump’s aggressive tariff policies might not benefit America, they certainly create a negative scenario globally. He urged Taiwan to adopt a bold strategy to avoid industrial hollowing amid the ongoing global supply chain restructuring, indicating that the sovereign fund could present a vital opportunity for breakthrough.

Regarding the funding strategy for the sovereign fund, Wang suggested retaining most of the foreign reserves, utilizing only 5% to 6%, approximately $30 billion, combined with another $30 billion from private sector contributions. He emphasized that under this framework, the sovereign fund would not impact Taiwan’s economy or national security while fulfilling industrial policy objectives.

Wang believes Taiwan has a robust high-tech industrial chain, and with the infusion of capital from the sovereign fund, economic growth could benefit from both technological and financial drivers, attracting global AI investments. He cited examples of Middle Eastern countries that, despite being arid land, have utilized sovereign funds to invest in infrastructure, thus attracting global AI enterprises, suggesting Taiwan should learn from this experience.

In terms of operational models, Wang observed that countries like Singapore, Norway, and Saudi Arabia employ a strategy where the state provides funding while the private sector takes the lead, ensuring that funding, investment firms, and performance are more transparent.