Taiwan's President Lai Ching-te used his National Day address to announce a universal cash dividend and a child-rearing allowance — good news for the general public, though cross-strait military pressure remains the greatest source of concern.

• Taiwan's economic growth rate this year is expected to exceed 11%, and its world competitiveness ranking has risen to 4th globally, the best showing on record.
• The government plans to distribute an "AI dividend" of NT$10,000 per person next year, and to raise social welfare payments including the elderly farmers' allowance and the National Pension.
• To address the falling birth rate, from next year children and young people aged 0 to 18 will receive a growth allowance of NT$5,000 per month, alongside childcare and housing measures.
• China continues to apply pressure through military and grey-zone activities. Taiwan will strengthen its asymmetric warfare capabilities, with the emphasis that increased defence spending is intended to deter war rather than to provoke it.
• Industrial policy aims to have the technology sector bring traditional industries along with it, accelerating 13 core strategic industries rather than relying on semiconductors alone as the nation's single "sacred mountain" of protection.

Outlook: The cash handout and the growth allowance must still pass through budgetary and legislative procedures, and friction between the executive and the legislature will be the key factor in whether they are implemented next year.