News / Economy

Southeast Asian Migrants Revitalizing Taiwan Economy

An investor monitors the stock market at a securities brokerage in Taipei, April 16, 2013.
An investor monitors the stock market at a securities brokerage in Taipei, April 16, 2013.
TEXT SIZE - +
Ralph Jennings
— Decades ago Taiwan was one of the four fastest-growing economies in Asia. But factories have moved away since then, making China the region’s growth leader.  That dynamic has forced Taiwan to look increasingly to its Southeast Asian migrant workers to get the country's economy back on track. 

Taiwan’s annual economic growth of less than four percent has left it lagging behind the rest of industrialized Asia.  Before 2000, Taiwan was growing quickly, reaching a Gross Domestic Product (GDP) of $467 billion as contracts for high-tech manufacturing put its economy on a level with Singapore and South Korea.

That was before China became the region’s low-cost manufacturing hotspot, luring capital away from Taiwan and avoiding free trade deals with the island’s Beijing-hostile government. Taiwan’s birth rate was also falling and at one child per woman it ranks now as one of the world’s lowest, a threat to productivity.
 
But a growing population of migrant workers is reheating Taiwan’s economy.

Peter O’Neill, a Catholic Church priest, who counsels migrants, says Southeast Asians do valuable work for up to 18 hours per day and get paid less than the Taiwanese.
 
“Those industries are where the working conditions are very dangerous, very hot, very uncomfortable, because Taiwanese people no longer want to work in the manufacturing sector,” O'Neill stated.
 
Nearly 450,000 Southeast Asian workers live in Taiwan today, up from 270,000 just 15 years ago. More than half come from Indonesia and the rest are mainly Thai, Filipino or Vietnamese. Migrants reach Taiwan on short-term labor contracts and are paid minimum wage, earning enough on average by their third year to send money to relatively poor families back home.
 
Taiwan’s government relaxed migrant labor laws last year to let in more workers. The move was part of a bigger directive to bring Taiwanese factories home from China, where they have operated in some cases for nearly three decades.
 
There is no official estimate on migrant labor’s contribution to Taiwan’s economy,  but Liu Shao-yin, supervisor with the Catholic Migrant Centers, a nongovernmental migrant workers service group, said foreign labor now keeps locally owned factories at home.
 
She said the problem Taiwan would face is factory owners moving out of Taiwan. They would relocate plants to mainland China or Southeast Asia because of lower labor costs in those regions, she said, leaving relatively few in Taiwan.
 
Taiwan’s increasing reliance on migrant workers puts it in a league with Hong Kong, Singapore and other countries that look to their poorer neighbors for labor.

Migrants in Taiwan fill a range of jobs. Filipinos may work as engineers for Taiwanese information technology firms. Thai workers can be found doing tough factory work and other Southeast Asians help on fishing boats, a job that many Taiwanese consider dangerous.
 
Many of the 100,000 Vietnamese migrants care for Taiwan’s elderly, freeing up younger Taiwanese who would normally look after their parents to work.
 
Homecare workers earn the equivalent of $530 per month, and factory labor pays a monthly $638, both below average wages for Taiwan.

Filipino national Emmanuel Nanocatcat came a year ago to earn minimum wage plus overtime pay at a family-owned factory in Taipei. “For now, the economy is down, so the changes are really small. Still if you work in the Philippines compared to here, you earn more [in Taiwan]. The salary is good here,” he said.

Some Taiwanese consider migrants a threat as their numbers grow and their lifestyles influence the formerly more homogenous Chinese society.
 
But Taiwan’s government expects higher economic growth this year than last, and investment bank Barclays Capital said the island attracted a notable $5 billion in foreign direct investment over the past four months.
 
Taipei is widely expected to allow more Southeast Asian migrant workers to settle in Taiwan in order to sustain the recent faster rate of economic growth.

You May Like

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.