Source: Republic of China Taiwan
On the morning of January 1, President Lai Ching-te delivered his 2026 New Year’s Address, titled “Island of Resilience – Light of Hope,” in the Reception Hall of the Presidential Office. President Lai noted that Taiwan faced a slew of challenges over the last year but conquered them all, one after another, not once hesitating because of a volatile international landscape or closing itself off because of domestic political turbulence. The president emphasized that our great accomplishments belong to all the people of Taiwan. He stated that the government, looking ahead to the new year, will continue working toward four overall goals: building a safer and more resilient Taiwan, advancing toward a smart and prosperous Taiwan, achieving even more balanced development across Taiwan, and promoting democratic unity throughout Taiwan. He then expressed hope that in the new year, the ruling and opposition parties can work together, unite the nation in the face of both internal and external challenges, and begin a new chapter.
President Lai stated that as a president elected by the people, he shoulders the mandate of all the people of Taiwan, and thus he will spare no effort to defend the nation and protect our hard-earned free and democratic way of life. He said that we will not be held back by political deadlocks; rather, we will embrace hope and take action, even if we must brave wind and waves, and with heads held high, lead our nation ever onward.
A translation of President Lai’s address follows:
Today is the first day of 2026. So let me wish you and your families a happy, healthy, and peaceful new year.
The new year is a fresh start. As the first rays of light shine on Taiwan, no matter how many challenges we met with in the past, we all continue boldly forward, with hope in our hearts.
Over the last year, the world has seen much turbulence – a shifting global economic order, escalating international conflicts, and China’s rising expansionary ambitions. We have also been through natural disasters as well as heart-rending social incidents. Each of these has tested our social resilience, our crisis awareness, and our unity.
Nevertheless, the people of Taiwan were not cowed by these trials – rather, they stood firm and achieved many astonishing successes. Over the last year, our economic growth rate has hit a 15-year high and is projected to reach 7.37 percent. The Taiwan Stock Index set new records despite the changing economic environment. The unemployment rate averaged around 3 percent, and employment is in its best condition in 25 years.
We have raised salaries for our military personnel, civil servants, and educators. We have also raised the minimum monthly wage for workers each year for the past 10 years, from NT$20,008 in 2016 to NT$29,500 this year, and encouraged businesses to increase employee salaries, ensuring that the fruits of economic growth are enjoyed by all our people. But we have seen more than just economic achievement. Our FORMOSAT-8 Chi Po-lin satellite is now in orbit. The Taoyuan Airport Terminal 3 North Concourse has officially opened, signifying that Taiwan is embracing the world with a fresh new look. And our indigenous coast guard patrol corvettes have been put into service, helping safeguard the nation.
The Tamkang Bridge, after 40 years of anticipation, is nearing completion as the last segment in its main span is now connected. The bridge will open to traffic this year and will not only be a link for key transportation hubs in the north, but will also be another instance of Taiwan’s world-class infrastructure ascending to the international stage.
From the ocean to outer space, from the front door of each home to the entryway of the nation, we have proven by our actions that so long as we are resolved and united, there is no place that the Taiwanese people cannot reach, and no feat that we cannot achieve. These great accomplishments belong to all the people of Taiwan. It is not lost on me that while we pursue development, we must also fulfill commitments to care and invest in our future. People’s health has always been my mission, from my time practicing medicine to now, in politics. That is why we are advancing the Healthy Taiwan Cultivation Plan and have established an NT$10 billion fund for new cancer drugs. Last year – five years in advance – we met the WHO target to eliminate hepatitis C as a public health problem. This is a public health success that has garnered international recognition. We also established the Ministry of Sports, and allocated a more than NT$24.8 billion budget to provide strong support for our athletes and promote physical activity for all, as well as competitive sports and professional sports. This will make our people healthier, our nation stronger, and encourage the world to embrace Taiwan. At the same time, the government-promoted Taiwan Global Pathfinders Initiative has already supported many outstanding young Taiwanese people as they pursue their dreams around the world, allowing Taiwan to shine even brighter on the world stage. Over the last year, we faced a slew of challenges, but we conquered them all, one after another. Not once did we hesitate because of a volatile international landscape, nor did we close ourselves off because of domestic political turbulence.
In this new year, we must continue to take big steps forward and reach four overall goals:
First, we must build a safer and more resilient Taiwan.
In the face of China’s rising expansionary ambitions, the international community is paying attention to whether the Taiwanese people possess the resolve for self-defense. As president, my position has always been clear: to staunchly defend national sovereignty, strengthen national defense, and enhance whole-of-society defense and resilience, and to comprehensively establish robust deterrence and democratic defense mechanisms.
Last year, we announced 17 major national security strategies to combat infiltration and that we would accelerate amendments for 10 national security laws. I also announced an eight-year, NT$1.25 trillion special defense budget to comprehensively upgrade our combat capabilities and strengthen our defense industry, thereby boosting national security and social stability. This year, we will be implementing each of these initiatives. On the first day of the new year, I would once again like to make an appeal. Facing China’s alarming military ambitions, Taiwan has no time to wait and certainly no time to consume ourselves with internal strife. We may hold different views on many issues, but without strong and resilient national defense, there will be no country, nor will there be space allowed for us to debate. This should be a national consensus across party lines. And so I hope the ruling and opposition parties can work together to swiftly pass this crucial national defense budget.
Second, we must advance toward a smart and prosperous Taiwan.
At present, the total assets of our banking, insurance, and securities industries have surpassed NT$130 trillion, which represents nearly 70 percent growth over the past decade. The government is working to make Taiwan a hub in Asia for asset management. Our goal is to deeply cultivate talent and capital in Taiwan, attract international capital, properly position ourselves in global markets, and create even greater wealth for the nation. At the same time, we have supported multiple powerhouses, including the 10 new AI infrastructure initiatives, the biotechnology and healthcare industry, and the national defense industry, while also assisting micro-, small-, and medium-sized enterprises in maintaining their competitiveness throughout the transformation. In this way, we are building a chain of “guardian mountains” to ensure Taiwan retains its competitive edge in the next generation.
Third, we must achieve even more balanced development across Taiwan.
1. Our pursuit of balance across generations goes beyond caring for our elders – we must also care for our young people. That is why we are launching Long-Term Care 3.0, as well as providing free tuition for high school and vocational high school students, and subsidizing tuition and fees for students of private colleges and universities. Our rent subsidy and social housing programs are also helping to relieve pressure for the younger generation.
This year, we will be launching housing for newlyweds and parents of young children, implementing version 2.0 of the differential tax rate for house tax, and facilitating the release of vacant units so that young people can find housing that fits their needs. Through the Youth Basic Act, we will further help young people steady their strides.
2. Our pursuit of balanced urban and rural development aims to spur growth not just in industry, medical care, and social housing, but also transportation and railway infrastructure, including high-speed rail extension and the laying of double tracks and electrification for the Hualien–Taitung Line, giving young people more opportunities to pursue in their hometowns. We must also maintain good fiscal balance to keep the urban–rural gap from widening, and more importantly, distribution of resources should be reasonably planned.
To address the controversies that have arisen from amendments to the Act Governing the Allocation of Government Revenues and Expenditures, the ruling and opposition parties should conduct a full-scale review and discussion of comprehensive fiscal reform, taking into account all aspects of society, all generations, and all levels of government. This will assist local governments with maintaining fiscal discipline, as well as enable the central government to leverage policy to support local development.
3. We are also pursuing balanced income distribution, aiming to narrow the income gap and even out distribution through pay raises, tax reductions, and social welfare programs. This will help ensure social fairness and stability.
Starting next year, unmarried renters with an annual income below NT$644,000, renting dual-income families with a combined annual income below NT$1.108 million, and renting families of four with two children under the age of six and a combined annual income below NT$1.685 million will be exempt from income tax.
As for social welfare policies, the Executive Yuan launched our program to improve care services for people with disabilities in 2024, which has planned funding of more than NT$48 billion over five years; and this year, it is rolling out version 2.0 of our program to strengthen Taiwan’s social safety net, with an expected investment of NT$81.96 billion over five years. Just last month, it approved the People with Disabilities Rights Protection Act amendment draft, further enhancing compliance with the United Nations Convention on the Rights of Persons with Disabilities. This shows that our social safety system is becoming increasingly robust and can provide the public with even more comprehensive support and services.
Starting today, a total of NT$100,000 from both social insurance maternity benefits and birth subsidies can be received for each newborn. And for the next 13 months, including this month, low-income households will receive an additional NT$1,000 per person per month, while medium-low-income households will receive an additional NT$750 per person per month. I hope that the central government’s general budget for this year will be deliberated and passed as soon as possible, so that these policies that benefit the nation and our people can take effect without undue delay.
Going ahead, we will continue to expand social investment, and help build a just, harmonious, and sustainable society.
Fourth, we must promote democratic unity throughout Taiwan.
Over the past year, many bills promoting the well-being of our nation and people have faced serious delays due to political obstruction, while multiple constitutionally questionable bills were forced through the legislature.
My fellow citizens, the true meaning of democracy lies in our willingness to abide by the Constitution, even when our opinions differ, and to take the constitutional order as our largest common denominator. Our Constitution emphasizes separation of powers and checks and balances. It also guarantees our rights. If the constitutional system is not upheld – if a single power expands without limitations – it is our people who suffer, and our nation that is forsaken.
I would like to thank the Constitutional Court for its professionalism and moral courage in making a decision that aligns with both our Constitution and our people’s expectations, that is, to resume operations and ensure our citizens’ rights and interests.
On this new dawn, a time of fresh starts, I believe many of us share the feeling that the 2025 deadlocks ought not to persist into 2026. Projects that are crucial for the nation to endure and develop must no longer be stalled by obstruction.
As president, I will take action to promote cooperation between the ruling and opposition parties. I also want to reiterate that, provided it is beneficial for resolving disputes and building consensus, I am willing to deliver a state of the nation address to the Legislative Yuan in accordance with the constitutional methods stipulated by Article 4, Paragraph 3 of the Additional Articles of the Constitution and Constitutional Court Judgment 113-Hsien-Pan-9 (2024). It is my sincere hope that in the new year, the ruling and opposition parties can work together, unite the nation in the face of both internal and external challenges, and begin a new chapter.
My fellow citizens, 2026 is the 30th anniversary of our first direct presidential election, and it will also be a crucial year for Taiwan. We already have an excellent foundation; our remarkable economic achievements have impressed the world, and international enterprises continue to boost their investment. The world is optimistic about Taiwan.
All the while, international support for Taiwan has never ceased. Countries including the United States, Japan, the United Kingdom, and European Union nations have all expressed support for Taiwan and for peace and stability across the Taiwan Strait. The US recently announced its largest-ever military sale to Taiwan, as well as highlighted Taiwan’s importance in its National Security Strategy. All of this shows us that Taiwan is not just indispensable, but is also a trustworthy, responsible force for good in the international community.
My fellow citizens, we have no time to wait, and no time to waste. The nation must stride ahead and not reverse course.
Democracy gives us the right to debate and the right to disagree. But without a nation, freedoms and rights like these would not exist.
As a president elected by the people, I shoulder the mandate of all the people of Taiwan. Thus, I will spare no effort to defend the nation and protect our hard-earned free and democratic way of life. We will not be held back by political deadlocks; rather, we will embrace hope and take action, even if we must brave wind and waves. Heads held high, we must lead our nation ever onward.
Finally, I would like to thank all those currently on duty to ensure our people’s safety, including the military, coast guard, police, firefighters, and medical personnel, all the superhero volunteers, and the friends and families providing support behind the scenes. I appreciate your hard work. Thank you.
Your efforts keep our people safe, and your selflessness is proof that the people of Taiwan are a community with a shared destiny working together to support one another. No matter what trials we may face, we can overcome them one by one. No matter the challenge, we can work together to create another Taiwan miracle.
I would also like to thank the four healthcare organizations for hosting the New Year’s Day flag-raising ceremony, along with all our brilliant performers.
In this new year, let us stride ahead together!
Taiwan belongs to us all. Blessings to Taiwan and each and every one of our citizens!
Thank you.