The COVID-19 pandemic intensified what was already a global race for foreign talent. This has led to an increase in countries announcing new initiatives or reforming existing ones to entice more professionals, who now have more options than ever in where they choose to work.

Why should Taiwan look to the South? 

A key feature of most talent attraction programs is that they include concessions to attract individuals from the global south, as it is home to 75% of the world's population and has historically been a significant source of permanent migration. 

Source: World Immigration Report 2022

India here stands out as a migrant powerhouse. Recognized as the world's top country of origin for migrants and boasting the second-largest English-speaking populace, it's home to over 750 million youth under 25. This demographic dynamism means India can supply the world with a virtually limitless pool of talent spanning all skill levels.

Why is competition for human capital so heated? 

In the past, countries in the global north mainly competed against each other for top-tier talent, but these dynamics are now shifting, as places in East Asia become new economic centers of the world. 

Several other southern nations are also entering an era of unprecedented growth and opportunity. This has turbocharged talent migration within the global south, making the competition even fiercer.

This means Taiwan not only has to compete with leading economies in East Asia and the West, but also other developing countries that are quickly becoming talent magnets themselves. 

The main drivers for this competition are bridging labor gaps in vital sectors, bolstering investment and entrepreneurship, fostering diversity, igniting innovation, and sharpening global competitiveness. Increasingly, it’s also about battling demographic challenges like an aging or shrinking population and brain drain. 

For Taiwan, many of these challenges resonate deeply. Additionally, Taiwan’s complicated geopolitician situation further warrants a diverse and international populace. 

Fortunately, since 2018, Taiwan’s Gold Card program has successfully attracted thousands of professionals. 

*As of August 31, 2023 Source: Taiwan NDC

But to keep the momentum going, Taiwan needs to cast a wider net, especially if it wants to increase the naturalization rate among professionals, which is negligible at the moment. 

Looking at the data, it’s clear that one area where they could improve is to make the Gold Card more accessible to countries from their Southbound policy. 

But what makes Taiwan attractive to foreign talent, and how can it become more appealing, especially to those from the Global South? 

To answer this, we need to look at some key indicators of talent attraction and retention and evaluate where Taiwan stands. 

Taiwan’s Allure and Challenges for Retaining Global Talent

Positives : 

1. Quality of Life: 

Regularly gracing the top 25 in global HDI rankings, Taiwan offers an excellent quality of life for individuals and families alike. It has one of the lowest crime rates in the world, and its status as a sought-after tourist hotspot ensures residents never run out of fun experiences. 

For a highly developed country, Taiwan’s cost of living remains low. 

Taiwan has other charms, too, and its enchanting appeal often sees short-term visitors turning into long-term residents. In fact, Taiwan consistently ranks among the most preferred destinations for expats. 

If there’s one major stain on the quality of life here, it’s road safety. 

2. Healthcare: 

Taiwan offers a comprehensive healthcare system that is both inclusive and world-class. 

Here again, Taiwan consistently ranks at the top, boasting one of the best healthcare systems in the world.  Healthcare in Taiwan is affordable, accessible, and efficient. It’s one of the best things about Taiwan.

Negatives : 

3. Job opportunities and future prospects: 

The job market in Taiwan is imbalanced, with limited opportunities available for foreign residents beyond teaching English. These issues become more pronounced as you move towards the south of Taiwan. 

Foreign students graduating in Taiwan also face significant hurdles in landing suitable jobs. Domestic companies are hesitant to employ foreigners, often for multiple reasons. Those lucky to be locally employed may find that their jobs don’t provide a good career growth trajectory, as it can be a challenge to rise through the ranks. Taiwan’s work culture also leaves a lot to be desired. 

According to NDC, out of 8,100+ Cards issued, only 6,486 are currently valid. I can only assume that some gold card holders left due to frustrations with the local job market. 

Having sufficient job opportunities across multiple industries is vital to retaining global talent. Taiwan cannot reach tens of thousands of foreign professionals with just remote workers, self-employed, or entrepreneurs. To hit those big numbers, Taiwan will need to target those economic migrants who expect their host nation to provide them with means to earn as well as a good utilization of their skills and experience. 

4. Wages and Work hours: 

Taiwan’s wages are lower than many developed countries, while their work hours are among the highest, making jobs unappealing to foreign professionals seeking decent pay and a work-life balance. Here’s some data for comparison: 

Taiwan may struggle to retain skilled professionals, both foreign and local, if those professionals can get paid a lot more for fewer hours elsewhere. 

These issues also affect Taiwan Gold Card holders. A sizable number qualified via the NT$160,000 monthly salary route only to find that such salaries are uncommon in Taiwan. 

Source: Taiwan DGBAS

Another major issue is that Taiwan’s housing market is among the most expensive, making it unaffordable, particularly for foreigners who often struggle to get mortgages because of their status. 

5. Inclusiveness and Integration: 

Taiwan has made many strides towards improving conditions for foreign residents. However, there’s still much room for improvement. Despite years of complaints, foreign residents continue to face discrimination in many areas. Exclusionary policies exist, both official and hidden. 

Banks often refuse services, some landlords won’t lease to foreigners, while telecom operators often give differential treatment. Numerous online systems don't accommodate foreign residents. 

Ironically, the lack of inclusiveness becomes more evident the longer a foreign resident stays in Taiwan and the more they try to assimilate into Taiwanese society. 

For instance, getting married in Taiwan can become a nightmare if one happens to be from a Southeast Asian country – a major source of Taiwan’s migrant labor. Foreign residents, even those who have lived in Taiwan for decades, are ineligible for disability benefits. 

Even for the things that do work for foreigners, it’s easy to get mired in bureaucratic hurdles due to Taiwan’s infamous red tape. 

Taiwanese laws further differentiate between nationalities. For instance, Taiwan has a significant migrant worker population from Southeast Asia who are often mistreated. This not only tarnishes Taiwan's image but also hurts Taiwan’s chances of attracting talent from these nations. 

Established migrant communities (known as corridors) often attract more immigrants from their home countries as it becomes easier for them to integrate. Capitalizing on Taiwan's substantial Southeast Asian population could make it an attractive destination for professionals from those countries. 

6. Reasonable pathway to citizenship  

Research consistently underscores that a reasonable pathway to permanent residence and citizenship is a key deciding factor for many foreign professionals. It’s one of the reasons why just a handful of countries significantly outperform the rest of the world in talent acquisition and retention. 

Taiwan’s insistence on renunciation remains a formidable barrier. Immigrants from developed nations are unlikely to give up their citizenship for a Taiwanese one, while those from the Global South may find it unappealing, even if they are a tad more flexible, considering Taiwan’s high-ranking passport. 

I speak from experience when I say Taiwan is, unfortunately, not that immigration-friendly. 

Obtaining Taiwanese citizenship can be easy or difficult, depending on your nationality, that of your spouse and children, and your willingness to renounce your original citizenship. My case was challenging in particular because of my wife’s Filipino nationality. Additionally, I failed to obtain citizenship for my daughter because the law requires that even minors renounce their original citizenship first. 

Perhaps Taiwan could take inspiration from Germany here. Despite already being among the top in talent acquisition in the EU, in order to attract more professionals, they have recently announced sweeping changes to their citizenship law: by slashing the residency requirement from eight to five years, endorsing dual citizenship, and offering automatic citizenship to children of naturalized citizens.

Another good example here is Singapore, which also requires renunciation, but their approach to residency and citizenship is a lot more streamlined. It’s comparatively easier to obtain citizenship for your spouse and children. Even parents have a path to permanent residence, however tricky that path may be.

7. Family unification

Family reunification plays a crucial role in talent migration. Simplifying the process of bringing spouses and children is essential, but it’s also important to include provisions for parents. 

For many foreign residents, there's an innate aspiration to eventually bring parents abroad to share in the success they've achieved. Providing even a constrained pathway for long-term residence of parents is necessary. 

Unfortunately, Taiwan currently offers nothing, even to parents of naturalized citizens. This makes Taiwan less appealing to foreign professionals hoping to bring their families along.

Closing Thoughts

According to IMD, Taiwan currently ranks 20th out of 64 countries for talent attraction and retention, having dropped four places since 2021. It’s obvious that Taiwan has enormous potential, but there are definite areas of improvement. 

Taiwan Gold Card office and NDC are already doing their utmost to bring in more professionals, but if the broader Taiwan system can’t retain them, then it’s not the NDC’s fault. 

Governments that do not prioritize the integration and assimilation of foreign residents, where foreigners are only considered a tool to be used and discarded rather than an integral part of society, cannot succeed in attracting foreign professionals in the long term. 

Attracting global talent is not a race anymore but a war, and how Taiwan acts in the following years will decide whether Taiwan will be on the winning or losing side of it.

(This piece reflects the author's opinion, and does not represent the opinion of CommonWealth Magazine.)

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About the author

Sam is a naturalized Taiwanese citizen and an ex-Gold Card holder. Sam has worked in various senior roles in the IoT industry for over 15 years. He is permanently based in Kaohsiung, where he lives with his wife and daughter. You can connect with Sam on [LinkedIn] [Twitter]

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