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Why cash alone is unlikely to reverse Taiwan’s baby bust

Reporter Dimitri Bruyas / TVBS World Taiwan
Release time:2026/01/02 18:02
Last update time:2026/01/02 20:55
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TAIPEI (TVBS News) — Taiwan stands one decimal point from becoming a "super-aged society" as the government launches a NT$100,000 (around US$3,195) birth subsidy that critics say arrives too late. The population aged 65 and older now comprises 19.99 percent of the total, just below the 20 percent threshold the World Health Organization uses for that designation.

President Lai Ching-te (賴清德) announced Thursday (Jan. 1) that the subsidy comes with a separate 13-month stipend for low and medium-low income households — NT$1,000/NT$750 (around US$32/US$24) per person per month. The breakdown of new funding versus existing benefits remains unclear — though the first beneficiaries have already arrived: Seven babies were born in Hsinchu City by noon Thursday, with eight more mothers in labor.

 

Ministry of the Interior (內政部) data released Dec. 10 showed Taiwan recorded just 7,946 births in November 2025, a record monthly low representing a 36.72 percent decline from November 2024. The island has now seen 59 consecutive months of more deaths than births. From January through November 2025, the cumulative number of births totaled 98,785, making it unlikely for full-year births to exceed 110,000.

"In 2024, total births were 130,000. This year, we may not even reach 120,000," said Maw-Sheng Lee (李茂盛), founder and president of Lee Women's Hospital (茂盛醫院). "It could fall below that, maybe even down toward 100,000." The base of women of childbearing age has decreased from approximately 3.8 million in 2015 to around 3.5 million in 2025.

 
Tesla CEO Elon Musk reposted content about Taiwan's demographic decline on his X platform in early December, writing: "Population collapse continues to accelerate." The Economic Daily News (經濟日報) editorial board suggested his attention stems from concerns about global technology supply chains, warning that Taiwan's semiconductor industry faces direct threats because chip manufacturing relies heavily on talent requiring long-term cultivation.

Local Governments Step In
Local governments have launched their own incentives. Taichung City Mayor Shiow-Yen Lu (盧秀燕) outlined her city's tiered subsidy program, which offers an extra NT$20,000 (around US$639) for the first and second child. "For the third child, you get NT$30,000 (around US$958). For the fourth child, you get NT$40,000 (around US$1,278). For the fifth, NT$50,000 (around US$1,597)," Lu said.

Lu joked with Legislator Huang Jian-hao (黃建豪) about whether he might have more children. "Legislator Huang Jian-hao already has three kids. And you get that amount for the fourth. Should we go for it?" Lu asked. When Huang replied that he would have to ask his wife, Lu continued: "If I weren't so busy, and you all weren't so unambitious and getting older, I would really want to try again for the love of Taiwan."

 
Yet surveys suggest money alone may not solve the problem. A Commonwealth Magazine (遠見雜誌) poll found 76.1 percent of respondents believed corporate subsidies were more effective than government payments. Some 68.8 percent said flexible working hours would most encourage childbirth. "Giving time and leave is more useful than giving money," the survey concluded.

Huang Chiao-ling (黃喬鈴), spokesperson for the Childcare Policy Alliance (托育政策催生聯盟), told the United Daily News (聯合報) that local governments' cash subsidies reveal policymakers' assumption that "money can solve the problem." She argued cash offers short-term relief without addressing root causes. Ministry of Health and Welfare (衛福部) surveys indicate economic burden is the primary reason women cite for not wanting children.

Among unmarried women aged 35-44, 33.2 percent say they do not want to marry. Since Taiwan's non-marital birth rate is only about 4 percent, not marrying typically means not having children. Reluctance to change existing lifestyle ranks as the second reason women cite for not having children.

The Limits of Cash
A 2019 United Nations report linked East Asian low birth rates to gender division of labor within families. The report noted that inflexible work hours and childcare responsibilities, which often fall predominantly on mothers, contribute to the problem. Countries cited include Japan, South Korea, Taiwan and Hong Kong.

Taiwan's total population stood at 23,306,085 as of the end of November, marking 23 consecutive months of decline. The designation "super-aged society" typically triggers concerns about pension sustainability, healthcare costs, and workforce shortages — challenges Taiwan now confronts as births continue to fall.
 

Hsinchu City offers a potential bright spot. Mayor Ko Hung-an (高虹安) cited Ministry of the Interior statistics showing that the city's crude birth rate (the number of live births divided by the total population and multiplied by 1,000) reached 6.7 per thousand in 2024, exceeding the national average of 5.8 per thousand. She attributed the results to the city's "0-6 Years Old, City Government Raises" (0-6歲市府養) initiative. November 2025 data showed Hsinchu's rate had fallen to 5.00 per thousand, raising questions about sustainability.

The first New Year's baby at Hsinchu MacKay Children's Hospital (新竹市立馬偕兒童醫院) weighed 2,942 grams (approximately 6.5 pounds). The mother, surnamed Liu (劉), thanked her husband and Dr. Tsai Chin-han (蔡金翰) for their support. President Lai also announced the launch of "housing for newlyweds and parents of young children" (婚育宅) and a revised house tax aimed at releasing vacant units.

The seven babies born in Hsinchu on New Year's Day will each receive NT$100,000 from the government. Whether they will have siblings may depend less on cash than on whether Taiwan's employers offer the flexible hours that 68.8 percent of surveyed citizens say would actually encourage childbirth. For now, the government has chosen money. The demographic clock continues to tick. ◼ (At time of reporting, US$1 equals approximately NT$31.3)

The Taiwan Briefing

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