Executive Summary
In recent years, with changing international investment trends and the global popularity of sovereign wealth funds for accumulating national wealth and promoting social security policies, coupled with market reports that President Lai Ching-te hopes to invest in the United States through a sovereign wealth fund in exchange for the US reducing high reciprocal tariffs on goods exported from Taiwan [1], "whether a sovereign wealth fund should be established" has gradually become a focus of nationwide discussion. This article will outline the fundamental differences between sovereign wealth funds and foreign exchange reserves, and explore the resources and feasibility of establishing a sovereign wealth fund. Through preliminary calculations, we believe Taiwan has the capability to establish a sovereign wealth fund with a scale of USD 100 billion.
