Former legislator of the People's Party, Wu Hsin-ying, highlighted the issue that "there are 172 sovereign funds globally, yet Taiwan has none," pointing to the Taiwanese central bank's substantial foreign reserves. According to Wu's analysis, the central bank's foreign reserves amount to approximately $578.02 billion, with an annualized return rate of only 2.64%, growing less than three times over the past 40 years.

Wu advocates for allocating 10% of foreign reserves to establish a sovereign fund which could activate assets and seek higher returns without compromising the economy or national security. The central bank has maintained an open attitude towards the establishment of a sovereign fund but suggests that such a fund should be regulated by special laws and comply with the Santiago principles.

The Santiago principles were formulated in 2008 by the IMF and the International Working Group on Sovereign Wealth Funds, aiming to ensure transparency and governance structures meet international standards. Sovereign funds can be used for diverse investments, managing the nation's wealth in the long term to enhance returns.

Currently, successful examples such as Norway's Government Pension Fund, Singapore's Temasek Holdings, and Abu Dhabi Investment Authority demonstrate that sovereign funds can yield significant returns. If Taiwan can leverage its foreign reserves to establish a sovereign fund, it could potentially increase asset returns and prevent idle capital.