BH 30703 International Human Resource Economics

Group 10: Migration of Workers in Taiwan

NAME MATRIC NUMBER

NICOLEJESSENTTA JALIAU BB11110373

RAHIMAH BINTI RAZALI BB11110491

SHANTY BINTI ANUAR BB11110530

SITI RAHAYU BINTI ABDURAHMAN BB11160792

CHAPTER 1: INTRODUCTION OF TAIWAN

TAIWAN’S FLAG

TAIWAN PROFILE

Capital - Taipei

Population (2012) - 23,234,940 million

Area - 35,980 square kilometres

Ethnics – Taiwanese 84%

Language – Putonghua or Mandarin Chinese as

the official language, Hokkien and

Hakka

Currency – New Taiwan Dollar (TWD)

GDP per capita, PPP (2011) – US$ 38,200

Net migration (2012) – 0.03/1,000 population

Taiwan originally based in mainland China that now is the Republic of China that governs the island of Taiwan

Taiwan is an island 100 miles or 161 kilometres off the Asian mainland in the Pacific

The total population until 2012 is 23,234,940 million persons (source: National Statistics, Republic of China)

Ethnic groups that include in Taiwan are Taiwanese (84%), mainland Chinese (14%) and aborigine (2%)

Religion that practiced in the country such as mixture of Buddhist, Confucian, Taoist and Christian.

While, the language that been used is Putonghua or Mandarin Chinese as the official language, however there are some other language that used such as Hokkien and Hakka

Data of population, employment rate, unemployment rate and net migration rate

Year Population

(million)

Employment(%)

Unemployment (%)

Net migration rate

(migrant(s)/1,000

population)2000 22,191,090 97 3 -0.38

2001 22,370,460 95.5 4.5 -0.34

2002 22,548,010 94.8 5.2 -0.3

2003 22,603,000 95 5 0

2004 22,749,840 95.5 4.5 0

2005 22,894,380 95.9 4.1 0

2006 23,036,090 96.1 3.9 0

2007 22,858,870 96.1 3.9 0.61

2008 22,920,950 95.9 4.1 0.04

2009 22,974,350 94.1 5.9 0.03

2010 23,024,960 94.8 5.2 0.03

2011 23,071,780 95.6 4.4 0.03

2012 23,234,940 95.8 4.2 0.03

Foreign Resident by Nationality

CountryForeign resident - by nationality

Male

(person)

Female

(person)

Total

(person)

Indonesia 34,155 149,521 183,676

Philippine 32,376 50,871 83,247

Thailand 52,256 13,831 66,087

Malaysia 5,120 4,068 9,188

Inflow and outflow of migration in Taiwan

Year Immigrants (From Foreign

Countries + From Other

Province (cities))

Unit : person

Emigrants (To Foreign

Countries + To Other Province

(cities))

Unit : person

2000 1, 381, 843 1, 376, 912

2001 1, 373, 363 1, 377, 174

2002 1, 452, 575 1, 456. 261

2003 1, 273, 526 1, 286, 021

2004 1, 264,937 1, 261, 692

2005 1, 442, 018 1, 427, 213

2006 1, 414, 340 1, 376, 816

2007 1, 173, 040 1, 154, 510

2008 1, 196, 407 1, 172, 845

2009 1, 198, 561 1, 163, 548

2010 1, 213, 899 1, 192, 662

2011 1, 128, 449 1, 109, 372

2012 1, 118, 006 1, 102, 326

CHAPTER 2: LITERATURE REVIEW

According to Kenji (2009), migration started during the late 1980s when economy of Taiwan had been boosted by the presence of many transnational companies and international business.

According to government statistics for 2011, only 11% of foreign workers were white-collar, and in fact many of these workers had occupations such as language teachers, without any connection to the professional and technical field.

Based on study by Kenji (2009), most Taiwanese youth prefer occupations in the first occupational level which is business and financial sectors than in the second level which is manufacturing industries.

This is because, in second level of occupations are often referred as 3D jobs which mean Dirty, Dangerous, and Demanding. This is because an employer demands for immigrant workers.

According to Kung (2002), during May 1992, the Taiwanese government officially started the policy of importing foreign labour force from several Asian countries such Thailand, Philippines, Malaysia, Indonesia, and Vietnam.

The policy calls “The Employment Service Act”. In the beginning, the migrant workers were invited

in to Taiwan to solve the labour shortage. However, there was no real labour shortage but it was simply the employer wanted cheap labour because their own citizen does not willing to perform 3D jobs.

The category of jobs that allowed coming in to Taiwan is domestic helper, factory worker, construction worker, and fisherman.

According to Lin, Ji- Ping (2012), during the period of the 1950 to the 1980’s, there was a net loss of elites and students emigrating from Taiwan to more developed countries which is Japan and United States.

Kevin (2003) found that in 1980s an estimated 20 percent of Taiwanese college graduates went abroad for advanced study, and few of them returned.

Although the number of emigrants was not large, the loss of high skilled workers and intellectuals resulted in a significant brain drain in Taiwan.

Dr. Ke, Wen-Li, Dr Hsieh, and Li Kung (2013), globalization and changing political environments have increased the demand for highly skilled workers in many countries in order to encourage country development.

In order to attract highly-skilled foreign workers to Taiwan, on 1st November 2008, the Executive Yuan approved a visa programme to foreigners for those want to conduct academic exchanges, seek jobs or make investment. The card was called “4 in 1” card which combines a visa, working permit, alien resident certificate (ARC) and re-entry permit.

CHAPTER 3: ISSUES AND PROBLEMS

1. Brain Drain and Brain Gain

Brain drain refers to the situation where a country loses the best workers, usually because the best skilled labor leaves the economy while Brain gain refers to the ‘brain exchange’ among the foreign workers especially skilled workers and local workers in a country.

In Taiwan, brain drain is one of the big issue they faced- most of the high skilled workers were migrate to others countries, some of the reasons for job satisfaction, education, better payment and condition and higher standard living.

In the same time, there are lots of less educated workers came to Taiwan. It is difficult to gaining foreign skilled workers to come to Taiwan. All these happen because government of Taiwan never realized the important of ‘Brain gain strategy’.

2. Unemployment Among Local Workers.

There are many foreign workers such as from Thailand, Philippines, Vietnam and Indonesia have been moving to Taiwan because in their country they need to compete each others. Without proper educational qualification or job skills they prefer to leave their home country to look job opportunities in Taiwan.

For example: In 1970s to mid 1980s (export-oriented manufacturing industries was rapid growth) there are lots of immigrants came to Taiwan.

This is definitely give negative impact to local less skilled workers. They perforce to compete with immigrants workers that relatively lower wage demand. Many of them become unemployed.

It is become worse, when some of the local Taiwanese employers recruiting the illegally foreign workers with the reason they are more cheaper compared local workers.

Cont…

In late 1980s, there were over 50 000 foreign laborers working illegally in Taiwan.

This caused economics problem among the local workers because the unemployment rate are increase.

Another factor: In 1999, 35% of the workers in Taiwan were unemployed due to their workplace closed or business shrunk especially small and medium businesses. Many of them move to their capital and equipment to Mainland China and there are two reasons:

a) Many labor-intensive industries( Food and beverage processing)

b) The market of mainland China is substantially large and thus is attractive to transnational firms all over the world.

3. Remittance Problem.

Based on Global Commission on International Migration 2005: remittance gives nearly three times the value of the official development assistance to the developing countries and the second largest source of external funding after foreign direct investment(FDI).

In Taiwan, as we mentioned before, there are lots of immigrants workers. For example, by the end of 2000, the national statistics of Taiwan estimated that there were 326 515 foreign workers in blue-collar jobs.

Logically, they will sent money to their home countries, this is obviously bad impact to Taiwan.

It become worse when many remittance are sent through informal channels, the actual of remittance is even higher than official figure show.

Cont…

For example Philippine, this country was third ranks in world in receipt of total remittance behind China and India. In Taiwan, there are many Taiwanese companies hired large number to work in factories. It is mean, the Filipinos workers have higher propensity to remit to their country.

4. Human Trafficking

Human trafficking is the buying and selling of human in order within countries and across borders, usually the purposes are for sexual exploitation and forced labor.

In Taiwan, there are 60 326 cases had been reported on October 2007 and it was primarily a destination for Southeast Asian and Chinese nationals trafficked into forced labor and sexual exploitation. The numerous of women mainly from Vietnam, Philippines, Thailand and Indonesia. They were forced into the sex trade after receiving fraudulent offers of employers or marriage brokers.

On April 2, 2005 an article in Vietnamese Nguio Viet Daily News, there are 200 000 Vietnamese women in Taiwan who are sold as bride to men Taiwanese.

For China, based on Government Information Officer of Taiwan estimate that 190 000 Chinese women are marriage with Taiwanese men and there is no way to determine which marriages are genuine.

CHAPTER 4: SOLUTIONS AND RECOMEMNDATIONS

1. Brain Drain Issue.

Cultivating Talent Narrowing the academia-industry gap Creating an international environment for

academic research Linking Taiwan’s talent to the world.

Retaining TalentRelaxing salary restrictions Improving international academic

cooperation. Retaining overseas Chinese and foreign

students as a “brain gain” to Taiwan.

Recruiting TalentEase regulations for foreigners to work and

live in TaiwanRecruiting foreign facultyCreated a foreigner-friendly environment

2. Unemployment Among Local Workers Issue.

Introduce Unemployment Insurance and Employment Promoting Allowance.

Cut down the effective entry permits of foreign workers for example through the policy of ‘Limitation of quantity and industries’

3. Human Trafficking Issue

Used the advantages of mass media in

enlightening the public about this issue.

Secondly, Taiwan authorities signed memorandum

of understanding with the governments of

Mongolia, Indonesia, and The Gambia to increase

cooperation in combating human trafficking

Recommendations

1. Unemployment Issue

This problem can be reduce if the government takes action to the Taiwanese employers that take illegally workers into work in their companies.

So that, the competition rate between local workers and foreign workers will be fair.

In addition, the local workers do not too choosy when they want involved in jobs market.

2. Human Trafficking Issue

Authorities need to sustain and improve efforts to investigate, prosecute, and convict trafficking offenders using the anti-trafficking law.

Continue and strengthened the effort to raise awareness among victims of the option to assist in prosecutions.

Thank You…