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2018/11/5 下午1:12 Published by the by Published Commerce Commerce In Taipei American Chamber Of NT$150 November 2018 | Vol. 48 | Issue 11 Issue | 48 Vol. | 2018 November Taiwan’s Taiwan’s New Residents BACKGROUNDER ENTERPRISES STATE-OWNED INDUSTRY FOCUS INDUSTRY EDUCATION Read TOPICS Online at topics.amcham.com.tw Online at TOPICS Read 號執照登記為雜誌交寄 THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI TAIWAN BUSINESS TOPICS November 2018 | Vol. 48 | Issue 11 中華郵政北台字第 11_2018_Cover.indd 1

CONTENTS NEWS AND VIEWS 6 Editorial Championing the Drive for Liver Health NOVEM BER 2018 VOLUM E 48, NUM BER 11 導一年一月 7 Taiwan Briefs By Don Shapiro Publisher 發行人 William Foreman 維 11 Issues Editor-in-Chief 總 Aiming to Serve Foreign Investors; Don Shapiro For Faster Regulatory Treatment Associate Editor 主 Tim Ferry 法 for Medical Devices Art Director/ 主任/ 力務資人加 Production Coordinator 後管適用請 Katia Chen 陳國 Manager, Publications Sales & Marketing 廣告行經 By Don Shapiro Caroline Lee Translation 翻 Kevin Chen, Yichun Chen AMCHAM EVENT 陳又, 陳 14 Taiwan Liver Health Forum

America n Chamb er of Commerce in Taipei 1 2 9 MinSheng East Road , Sect ion 3 , 7 F, Suite 7 0 6 , Taipei 1 0 5 9 6 , Taiw an P .O. Box 1 7 - 2 7 7 , Taipei, 1 0 4 1 9 Taiw an Tel: 2 7 1 8 - 8 2 2 6 Fax: 2 7 1 8 - 8 1 8 2 e- mail: amch am@ amch am.co m.tw COVER SECTION w eb site: http://w w w .amch am.co m.tw 名台國會工發行所台國會 Taiwan's New Residents 105生10 話2718-8226 真2718-8182

Taiwan Business Topics is a publication of the American 16 Taiwan Embraces Southeast Chamber of Commerce in Taipei, ROC. Contents are independent of and do not necessarily reflect the views of the Asian Immigration Officers, Board of Governors, Supervisors or members. © Copyright 2018 by the American Chamber of Commerce in 台灣擁抱東南亞移民 Taipei, ROC. All rights reserved. Permission to reprint original material must be requested in writing from AmCham. Production done in-house, Printing by Farn Mei Printing Co., Ltd. The recent influx of immigrants 台第一 from ASEAN nations dovetails 所有公司經台灣文台108台長66 with the Tsai administration’s New 發行期中國一年一月中台第5000為 Southbound Policy. ISSN 1818-1961 By Matthew Fulco 撰文／傅長壽

Chairman/ Alb ert Chang V ic e Chairmen/ Leo Seew ald , V inc ent Shih Sec retary : Fupei W ang 20 Taiwan Attracting Fewer Treasurer: C.W . Chin Chinese Immigrants 2 0 1 7 - 2 0 1 8 G ov ernors: Alb ert Chang , W illiam Farrell, Rev ital G olan, Tim Ju, 經濟發展快速中國移民台灣人 Seraphim Ma, Leo Seew ald , V inc ent Shih. 數減少

2 0 1 8 - 2 0 1 9 G ov ernors: Anita Chen, C.W . Chin, Ed w ard Shob er, Joanne Tsai, D aniel Tseng , Fupei W ang . Given the tepid economy and tensions in relations with Beijing, 2 0 1 8 Superv isors: P etra Jumpers, Joy c e Lee, Timothy Shield s. the island is no longer a magnet

COMMITTEES: for cross-Strait marriages. Ag ro- Chemic al/ Melod y W ang ; Asset Manag ement/ 撰文／傅長壽 Christine Jih, D erek Y ung ; Bank ing / P aulus Mok ; Capital By Matthew Fulco Mark ets/ Nad ia Chen, Mand y Huang , C.P . Liu; Chemic al Manuf ac turers/ Charles Liang , Mic hael W ong ; Cosmetic s/ 23 Meet Some New Taiwanese Shirley Chen, Julien Jac q uet, Ab ig ail Lin; CSR/ Lume Liao, Fupei W ang ; Energ y / Rand y Tsai; Human Resourc es/ By Courtney Donovan Smith V ic k ie Chen, Ric hard Lin, Monic a Han, Seraphim Ma; Inf rastruc ture/ W ay ne Chin, P aul Lee; Insuranc e/ D an Ting , Lind a Tsou, D y lan Ty son; Intellec tual P roperty & Lic ensing / Jason Chen, P eter D ernb ac h, V inc ent Shih; Mark eting & D istrib ution/ W ei Hsiang ; Med ic al D ev ic es/ THE VIEW FROM ABROAD Rag hav end ra Shenoy , Joanne Y ao; P harmac eutic al/ P etra Jumpers, W end y Lin, Lai Li P ang ; P ub lic Health/ Joy c e Lee, 25 Organized Sleepwalking Sophia Lee, Tim Shield s; Real Estate/ Tony Chao; Retail/ Ceasar Chen, Mark Chen, P rud enc e Jang ; Sustainab le A day in the life of a Taiwan-based D ev elopment/ Kenny Jeng , Cosmas Lu, Kernel W ang ; Tax/ Stella Lai, Cheli Liaw , Josephine P eng ; Tec hnolog y / Cy nthia Swiss lawyer in Cambridge, Mas- Chy n, Rev ital G olan, Hans Huang ; Telec ommunic ations & Med ia/ Thomas Ee, Joanne Tsai; Transportation & sachusetts. Log istic s/ ( tb a) ; Trav el & Tourism/ P auline Leung , Ac him v . By Nathan Kaiser Hak e.

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BACKGROUNDER 28 Privatization Effort Slows to a Crawl Thirty-nine state enterprises have been converted into private companies since 1989. The next stage will be the most difficult. By Philip Liu

TAIWAN BUSINESS 46 Pivoting to Technical Textiles Companies are seeking to avoid the low-margin trap by moving into this technically demanding segment of the industry. By Jens Kastner 48 Taiwan’s Functional Fabrics are a Winner By Philip Liu

SPONSORED CONTENT 50 IRPMA Sharing the Risk of the Healthcare Cost Burden 52 Taiwan Tourism Bureau: INDUSTRY Seeing Taiwan F CUS A REPORT ON THE EDUCATION SECTOR Approaches to Learning 34 Falling Population Squeezes 39 A Growing Need for Taiwan’s Universities Continuing Education Foreign students can help boost In developed, knowledge-based enrollment, but some reduction in economies, the benefits of a “learn- the number of schools seems inevi- ing society” take on added impor- table. tance. By Matthew Fulco By Wujun Ke 41 The Intersection of Adult 36 Taking a Different Approach Education and Social Work to Learning By Wujun Ke Taiwan’s experimental schools Taking Life Slowly in the Hills of seek to develop highly motivated 42 Living through Language Miaoli students who can think for them- The government is making a strong 54 Bayer Taiwan selves. effort to preserve Taiwan’s endan- Learning from the Younger Genera- By Kathy Chen gered languages so as to maintain tion a multicultural society. By Benjamin Parker

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11 contents.indd 5 2018/11/5 下午1:13 E D I T O R I A L Championing the Drive for Liver Health

n its section of AmCham Taipei’s 2018 Taiwan White standing cooperation between the United States and Taiwan in Paper, the Chamber’s Public Health Committee encour- the fight against hepatitis. He paid tribute to Dr. Baruch Blum- I aged Taiwan to adopt the goal of developing itself into a berg (1925-2011) of the U.S. National Institutes of Health and “Liver Health Center of Excellence in Asia.” Taiwan, after all, to Dr. R. Palmer Beasley (1936-2012), a University of Wash- has a strong background in combating diseases of the liver, ington epidemiologist who spent 15 years in Taiwan affiliated which are particularly prevalent in the Asian region. As far with the U.S. Naval Medical Research facility. Blumberg, a back as the 1980s, Taiwan played a pioneering role in intro- Nobel laureate in medicine in 1976, was the first to iden- ducing a national hepatitis B vaccination program that has tify the hepatitis B virus and later developed its diagnostic test been highly successful in bringing the malady under control and vaccine. He visited Taiwan frequently and was elected in this country. Currently the government is taking aim at as an honorary academician of Academia Sinica. Building on eradicating hepatitis C, and has devoted increased budget to Blumberg’s work, Beasley’s research provided proof of the screening and treatment programs. transmission of hepatitis B from mother to infant – paving the Last month the Public Health Committee’s idea was way for the vaccination program that has enabled that chain carried a step further when AmCham Taipei joined forces to be broken. with the American Institute in Taiwan (AIT) and the In opening remarks for the Forum, AIT Director W. Brent Ministry of Health and Welfare (MOHW) to sponsor a half- Christensen also noted the U.S. connection, noting that Amer- day Taiwan Liver Health Forum featuring presentations by ican pharmaceutical and biotech companies have been at leading specialists in the healthcare community. Taiwan’s the forefront of developing advanced technologies that are Vice President, Chen Chien-jen – an epidemiologist by contributing to the fight against hepatitis. He also emphasized training and an expert in hepatitis research – delivered the that Taiwan has an opportunity to serve as a model for the keynote address. rest of Asia through its efforts to control liver diseases before Many of the speakers and panelists emphasized the impor- those conditions develop into deadly liver cancer. tance of increasing the amount of screening to detect the AmCham Taipei is proud to be among those taking a presence of the hepatitis C virus, since drugs with a high rate leading role in the liver health initiative and to help in show- of effectiveness are now available. Although the initial cost of casing Taiwan’s achievements in this field and its continuing such a program may be steep, over time the program would contributions through clinical research. As long-term corpo- more than pay for itself as rates of infection decline and rate citizens of Taiwan, our member companies have a strong productivity is enhanced. stake in the welfare of the Taiwan public. A healthy citizenry In his presentation, the Vice President noted the long- helps ensure a stable and prosperous society.

北市美國商會公共衛生委員會在2018《台灣白皮（生於1925，歿於2011年）以及華盛頓大學的流行病學專書》中鼓勵台灣，把發展「亞洲肝臟健康卓越中家畢斯禮。畢斯禮曾以美國海軍醫學研究專家的身分在台台心」訂為目標。畢竟台灣在對抗肝病方面具有豐灣工作15年；曾在1976年榮獲諾貝爾獎的布倫柏格最早發富經驗，而亞洲肝病患者特別普遍。早在1980年代，台現B型肝炎病毒，之後並發明B肝的檢測方法與疫苗。他生灣就率先推行全國性的B型肝炎疫苗施打計畫，在控制台前經常造訪台灣，並且獲選為中央研究院的榮譽院士。畢灣肝病疫情方面非常成功。目前政府以根除C型肝炎為目斯禮在布倫柏格研究的基礎上繼續鑽研，並提出B型肝炎標，並增加預算用於C肝的籂檢與治療。會從母體傳給嬰兒的證明。這項發現為後來的疫苗施打計上個月，公共衛生委員會的構想往前推進了一步。台北畫鋪路，成功截斷這個傳染路徑。市美國商會與美國在台協會及衛福部共同主辦為期半天的美國在台協會台北辦事處處長酈英傑在開幕致詞時，也台美肝病防治論壇，邀請知名醫療專家提出報告，研究流提到了美台合作。他指出，美國製藥與生技公司領導開發行病學並且本身是肝病研究專家的副總統陳建仁在會中發先進技術，對肝炎防治做出貢獻。他並強調，台灣努力防表主題演講。治肝炎，避免肝炎演變成為致命的癌症，而台灣在這方面多位演講者與參與座談的人士強調加強籂檢以偵測C型肝的努力，有機會成為亞洲的典範。炎病毒的重要性，因為療效很好的藥品已經上市。雖然籂檢台北市美國商會很榮幸與其他單位在肝病防治方面共同計畫的初期成本可能偏高，但長期而言，隨著肝炎感染率降扮演重要角色，並協助展現台灣在這方面的成果，以及台低、生產力提高，籂檢計畫的成本效益將會十分顯著。灣透過臨床研究持續做出的貢獻。本會會員是台灣長期的陳副總統在演講中指出，美國與台灣在肝炎防治方面企業公民，台灣民眾的福祉對他們而言極為重要。有健康有多年合作。他特別感謝美國國家衛生研究院的布倫柏格的民眾，才有穩定與繁榮的社會。

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— BY DON SHAPIRO —

MACROECONOMICS ECONOMIC INDICATORS MORE MIXED SIGNALS Current Account Balance (Q2 2018)p 17.82 17.34 The release of Taiwan’s September Foreign Trade Balance (Jan.-Sept.) 36.7 40.7 trade figures brought some good news – New Export Orders (Sept.) 47.86 45.92 a record monthly level for exports – but Foreign Exchange Reserves (end Sept.) 459.9 446.4 any exuberance was dimmed by uncer- tainties about the potential impact of the Unemployment (Sept.) 3.76% 3.77% “trade war” being waged between the Discount Rate (Oct.) 1.375% 1.375% United States and China, given the large Economic Growth Rate Q2 2018p 2.55% 2.28% number of Taiwanese enterprises with Annual Change in Industrial Output (Sept.)p 1.54% 5.13% Annual Change in Industrial Output (Jan.-Sept.)p 3.83% production facilities in China. Exports Annual Change in Consumer Price Index (Sept.) 1.72% 0.49% in September rose by 2.6% from a year Annual Change in Consumer Price Index (Jan.-Sept.) 1.66% earlier to reach US$29.6 billion, with a favorable balance of trade of US$4.3 P=PRELIMINARY SOURCES: MOEA, DGBAS,CBC, BOFT billion. That brought eight-month totals for the year to US$250.1 billion estimate of 2.3%, based on the strong growth,” Governor Yang Chin-long told in exports (up 8.1% year-on-year) and showing in exports. It sees slower growth a news conference following the meeting. US$213.4 billion in imports (up 11.9%), of 2.2% next year due to cyclical factors for a surplus of US$36.7 billion. Exports as well as the U.S.-China trade war and INTERNATIONAL orders, at US$47.86 billion, were the the U.S. Federal Reserve’s moves to hike highest ever for the month of September, interest rates. The Chung-Hua Institution VICE PRESIDENT CHEN although – in a possible indication of the for Economic Research (CIER) simi- RECEIVED BY THE POPE “trade war effect” – substantially less larly raised its 2018 forecast – to 2.61%, Leading a delegation to the Holy See than had been forecast. compared to the 2.48% estimated in July. to attend canonization ceremonies for The strong current performance For next year, CIER reduced its projec- Pope Paul VI and others, Vice President coupled with doubts about the future tion from the previous 2.23% to 2.18%. Chen Chien-jen was received by Pope were reflected in the actions of several “A protracted trade war would deal a Francis at Castel Gandolfo, the former economic forecasting organizations that blow to the world’s technology supply Papal summer residence. Chen said Pope raised projections for GDP growth this chain and the nation’s export-reliant Francis sent his regards to President Tsai year while making a downward adjust- economy,” CIER acting president Wang Ing-wen and said he would pray for ment for 2019. Cathay Financial Holding Jiann-chyuan told the media. Taiwan. The Holy See is one of only 17 in early October raised its growth fore- In its September survey of manu- countries that maintain diplomatic rela- cast for 2018 to 2.8% from its previous facturers’ confidence in the business tions with Taiwan, but the Vatican’s climate, the Taiwan Institute of Economic recent signing of a provisional agreement TAIWAN STOCK EXCHANGE PERFORMANCE Research (TIER) found that 11.6% of with Beijing regarding the appointment THE BLUE LINE SHOWS CHANGES IN TRADE VALUE AND companies expected business to improve of bishops in China has raised concern in THE SHADED AREA CHANGES IN THE TAIEX INDEX. in the short-term, 42.1% saw it as likely Taiwan about how long that recognition POINTS NT$ BILLION 13000 18000 to get worse, and 46.3% felt it would can continue. 12000 16000 remain the same. Responses regarding 11000 14000 a six-month outlook were 15.7% for CROSS-STRAIT 10000 12000 improvement, 32% for worsening, and 9000 10000 52.3% for remaining constant. TSAI URGES BEIJING 8000 8000 For the ninth consecutive time, the TO ACT RESPONSIBLY 7000 6000 quarterly board meeting of the Central In her Double Ten National Day 6000 4000 Bank in late September kept the redis- address, President Tsai Ing-wen called on 5000 2000 count rate steady at 1.375%. “A lenient the “authorities in Beijing, as a respon- 4000 0 September monetary policy is favorable for finan- sible major power, to play a positive cial market stability and economic role in the region and the world, instead DATA SOURCE: TWSE

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of being a source of conflict.” She said DOMESTIC The receiving terminal will enable that China’s unilateral diplomatic offen- Taiwan to have enough LNG capac- sive and military coercion have not only THIRD LNG TERMINAL, YES; ity to feed additional gas-fired units at harmed cross-strait relations, they have SHENAO THERMAL PLANT, NO Taoyuan’s Datan Power Plant, hopefully also seriously challenged the status quo Following passage of the environmen- permitting the government to meet its of peace and stability in the Taiwan tal impact assessment (EIA) for Taiwan’s goal of having LNG account for half of Strait.” proposed third liquefied natural gas Taiwan’s power generation by 2025. “I want to assure everyone that terminal on October 12, the government we will neither act rashly to escalate announced that it would drop plans for THOUSANDS DEMONSTRATE confrontation, nor will we give in,” the a controversial coal-fired plant at Shenao TO SUPPORT REFERENDUMS president said. “I will not be provoked on the northeast coast. Both projects A largescale rally in front of the into confrontation or conflicts that were opposed by environmental groups, Democratic Progressive Party (DPP) endanger cross-strait relations, nor will but officials insisted that it is necessary headquarters on Oct. 20 attracted tens I deviate from the will of the people for at least one of them to go forward if of thousands of demonstrators calling and sacrifice Taiwan’s sovereignty.” She Taiwan is to maintain energy sufficiency on the government to permit refer- reaffirmed Taiwan’s mission as being a while eliminating nuclear power genera- endums on the issue of Taiwanese beacon for democracy. tion by 2025. The third LNG terminal, to independence from China. Although the With regard to the current U.S.-China be operated by the national oil company, referendum law was recently relaxed, trade dispute and its potential impact on CPC Corp. Taiwan, and located in proposals about changing the national the global economic and trade order, Tsai Taoyuan’s Guanyin District, failed a territory, name, and flag are still prohib- noted that Taiwan will need to adjust its previous EIA review in July because of ited as too provocative. The rally was role in regional development and global the likely effect on nearby algal reefs. But organized by the Formosa Alliance, a supply chains, as well as accelerate is revisions to the original plan allowed the pro-independence group established efforts at industrial transformation. project to pass a reevaluation. earlier this year.

RAIL DISASTER — 18 passengers were killed and nearly 200 injured when a Puyama Express train was derailed in Yilan County. Investigations into the cause are proceeding. PHOTO: CNA

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INVESTIGATIONS CONTINUE OF RAILWAY ACCIDENT In the worst railroad accident in Taiwan in many years, 18 passengers were killed and nearly 200 injured when a Puyama Express train jumped the tracks in Yilan County, overturn- ing five of the eight cars. It appeared that the train was going at too high a speed around a curve, but it was not immediately clear whether that was due to driver negligence or equipment malfunction. In addition to an investigation of the cause of the accident by a Cabinet task force, prosecutors said they were looking “RED TEMPLE” — Changhua County authorities demolished structures at a into the procurement procedures for the Buddhist temple after they were turned into a shrine in honor of the Chinese Communist Party. purchase of the trains eight years ago. PHOTO: CNA

F-16 MAINTENANCE CENTER space.” She also hailed the facility as apparent effort by his former deputy PROJECT BEING PLANNED making it possible for residents of south- to undermine the mayoral campaign of According to local media reports, ern Taiwan to have access to world-class Kuomintang candidate Hou You-yi in the Ministry of National Defense has cultural performances. New Taipei City. Before stepping down, confirmed plans to create an F-16 main- Designed by Dutch architect Francine Huang presided over a news conference tenance and repair facility in Taiwan, Houben, the Center sits within a lush in which the Commission exonerated utilizing industrial cooperation cred- park covering 9.9 hectares. It encom- 1,270 people who were convicted during its from U.S. defense suppliers. Under passes an opera house, vineyard-style the “White Terror” period. the arrangement, Lockheed Martin, concert hall with the largest pipe organ producer of the F-16s, would transfer in Asia, recital hall, indoor theatre (“The “COMMUNIST TEMPLE” necessary technology to the government’s Playhouse”), and outdoor theatre. The DEMOLISHED IN CHANGHUA Chungshan Institute of Science and Tech- Berlin Philharmonic Orchestra will be In late September, the Changhua nology. The Taiwan air force’s F-16s among the first prominent international County government demolished addi- are currently undergoing an upgrading groups to perform at the Center. The tions to a onetime Buddhist temple to the F-16V standard, with 20 to 24 project took 15 years from planning to whose current owner, a contractor named aircraft reportedly to be retrofitted per completion. Wei Ming-jen, had turned it into a shrine year between now and 2022. dedicated to the Chinese Communist In other military news, Minis- TRANSITIONAL JUSTICE Party. The Buddhist temple had hired Wei ter of National Defense Yen De-fa told CHAIRMAN RESIGNS to undertake the expansion project, but the Legislative Yuan in late October The September resignation of Tran- later lost the rights to the property to him that plans for the domestic produc- sitional Justice Commission deputy in a legal dispute. Wei expelled the nuns tion of eight submarines are progressing chairman Chang Tien-chin for making who had been living there and replaced smoothly, with first-phase blueprints to what he conceded were inappropriate the Buddhist symbols with propaganda be ready by March 1 next year. remarks that called into question the posters of Mao Zedong, Chinese presi- Commission’s political neutrality was dent Xi Jin-ping, and other Communist KAOHSIUNG ARTS CENTER not the end of the incident. On October leaders. Initially county officials defended OPENS ITS DOORS 2, Premier Lai Ching-te issued a public Wei’s rights to express even unpopular President Tsai presided over the apology, saying that Chang’s behav- political stands under Taiwan’s demo- opening ceremony for the Weiwuying ior had “hurt the agency’s reputation, cratic system, but eventually they decided National Kaohsiung Center for the Arts sparked confrontation, and caused social to act after the incident received interna- on October 13, praising the conversion disturbance.” Four days later, Hung tional publicity, including a report in The of the site – a former military train- Huang-hsiung resigned as Commission New York Times, igniting more expres- ing base – into a symbol of “democratic chairman to take responsibility for the sions of public outrage domestically.

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BUSINESS TAIWAN'S JAN. - SEP. TRADE FIGURES (YEAR-ON-YEAR COMPARISON)

WYOMING ESTABLISHES HK/China Japan ASEAN TOTAL TAIPEI TRADE OFFICE Wyoming Governor Matt Mead led 93 a trade delegation to Taiwan from his 102.8 43.6 40.8 43.2 250.1 37.4 33.2 31 25.8 231.4

state in early October to take part in 23.1 17.2 15.4 213.4

ceremonies for the opening of a State 190.7 2018 2017 2018 2017 2018 2017 of Wyoming-Asia Pacific Trade Office in the Taipei World Trade Center. At U.S.A Europe a reception at the Sherwood Taipei 29.1 27.2 26.1 25.5 23.8 22.7 22.3

featuring Wyoming beef, Mead said 21.6 that besides agricultural products the 2018 2017 2018 2017 2018 2017 office would seek to develop bilateral UNIT: US$ Billion exchanges with Taiwan in the areas of Exports Imports SOURCE: BOFT/MOEA technology, tourism, and education. Six other U.S. states currently maintain offices in Taiwan. Commerce Department statement said United States. that “Jinhua poses a significant risk of • Qualcomm Inc. disclosed plans to CHINA STEEL LAUNCHES becoming involved in activities that are set up two R&D centers in Taiwan WIND POWER ALLIANCE contrary to the national security interests – one for multimedia technology China Steel Corp. (CSC) in early of the United States. It alluded to threats and the other to develop AI applica- October announced the formation of to the security of the “supply chain for tions for mobile and IoT devices – Wind-Team, an alliance of domes- essential components in our military to begin operations early next year. tic suppliers ready to support offshore systems.” A statement from a senior executive wind-farm projects. Reportedly a total said the company hopes to “assist of 24 tier-1 and 40 tier-2 suppliers are INVESTMENT NEWS Taiwan to cultivate its talents and currently involved. CSC has been given • In the first new private equity invest- upgrade its R&D capabilities.” In rights to develop one of the offshore ment in Taiwan in several years, August the giant mobile-phone chip wind-power concession zones, and Morgan Stanley Private Equity Asia supplier agreed to investment US$700 aims for electricity from the zone to be gained approval from the Investment million in Taiwan over the next five connected to the national grid by 2024. Commission for a NT$9.3 billiion years as part of the settlement of anti- (US$318.6 million) buyout of medical trust action brought by the Fair Trade U.S. RESTRICTS EXPORTS diagnostic equipment manufacturer Commission. TO CHINESE IC COMPANY Microlife Corp. • Eslite Spectrum Corp., operator of The U.S. Commerce Department • U n ited Renewable Energy Co. Taiwan’s iconic Eslite bookstore announced that American compa- (UREC), created through a merger of chain, said it would open a retail nies will need to apply for licenses for solar energy companies – Neo Solar outlet in Tokyo’s Nihonbashi district all exports or transfers of commodi- Power Corp., Gintech Energy Corp., next fall, working together with Japa- ties, software, and technology to China’s and Solartech Energy Corp., received nese bookstore Yurindo Co. Eslite Fujian Jinhua Integrated Circuit Co., a fund injection of more than NT$2.7 currently has 42 stories in Taiwan, effective October 30, and that “such billion (US$87.32 million) in a private three in Hong Kong, and one in license applications will be reviewed placement from the National Devel- China’s Suzhou. with a presumption of denial.” Micron, opment Fund and the government- • Kwang Yang Motor Co., whose the largest foreign investor in Taiwan, is controlled Yao Hua Glass Co. KYMCO motor scooters are the bringing suit in California against Fujian • Ta Chen Stainless Pipe Co. announced biggest selling brand in Taiwan, Jinhua and its Taiwan partner United plans to acquire Alumax Mill Prod- announced plans to manufacture and Microelectronics Corp. for alleged theft ucts Co. of Texarkana, Texas for market electric scooters in the Indian of Micron’s trade secrets for the produc- US$350 million. Ta Chen’s U.S. market together with unnamed local tion of dynamic random access memory subsidiary, TCI, is already the largest partners. The company is reportedly (DRAM) integrated circuits. The aluminum products wholesaler in the enjoying excellent sales in China.

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Aiming to Serve Foreign Investors

A revamped government organization stresses dedication to helping companies solve problems.

rom early this year, the government agencies dealing with investment matters have been brought together under a new F umbrella organization, InvesTaiwan, characterized by a logo featuring a stalk of grain, symbolizing the fertility of Taiwan’s business environment. 力務資人 Three agencies of the Ministry of Economic Affairs (MOEA) come under the InvesTaiwan aegis: 的 • The Investment Commission, primarily responsible for over- seeing the approval process for incoming foreign investment and applications by Taiwanese companies to invest abroad; • The Department of Investment Services (DOIS), which takes the lead in promoting Taiwan as an investment destination 今年起，台灣主管資務的機 and assisting local companies investing in other countries, 關為資台灣務所這是一個 especially in South or Southeast Asia under Taiwan’s New 自新的，是以一作為 Southbound Program. 別，台灣的經環。 • The InvesTaiwan Service Center (ITSC), which stands ready to 資台灣務所合經部下個機 help existing or new foreign-invested companies resolve any problems they are facing. 資議員會主要來資 The purpose of the reorganization was to enable the various ，以台灣企業資請。 agencies to better share resources in working toward the common 資業務處領導進對台資，並助 goal of increasing the amount of foreign direct investment (FDI) 企業資他國，其是台灣新向 entering Taiwan, as well as expanding Taiwanese companies’ role in 的或國。 the world market. For example, the big data collected by the Invest- 資務中心時助有或新 ment Commission – over the years it has approved over 40,000 cases 的資企業，解其所面臨的任 of inward and more than 60,000 cases of outward investment – can 題。 be useful reference in investment promotion efforts, says Emile M.P. 的的是讓機關得以 Chang, who multitasks as CEO of InvesTaiwan, Director-General of 分享資源，以達進多來接資入 DOIS, and Executive Secretary of the Investment Commission. 台灣的共，以展台灣企業在 The revamping is part of Premier Lai Ching-te’s campaign to 場的。時任資台灣務所行長、 attract more FDI to Taiwan. For the past year he has been presiding 資業務處處長和會行的 over twice-a-month inter-agency meetings designed to boost 指出，會多年來起資 the investment flow in order to create employment and increase 和的對資計畫，其所的大 economic growth. “The Premier has instructed us to be more proac- 作為資廣工作的有用參。 tive,” says Chang – “not just waiting for investors to come to us for 是行長多 help but to actively go out to contact them and invite them to utilize 資資台灣行動的一環。一年中， our services.” 為了創造就業和經長，月會 As a result, Chang and his colleagues have been reaching out 主持兩次在進資的跨部會會議。 to the foreign chambers of commerce and other organizations, 「（）長指我們要加主 as well as participating in trade fairs. In September, for instance, 動，不要是資人來向我們助，而是 InvesTaiwan acted as a sponsor of AmCham Taipei’s 67th anniver- 要主動出，並請資人用我們的 sary reception, using the occasion to spread its message that it can 務。」 serve as a “one-stop service center” for dealings with the govern- 此，和部不但主動接國 ment, including local authorities. 會和其，還參加業動。如今年 The most common type of problem that investors request assis- 月，資台灣務所助台國會在台 tance with – in fact, it accounts for more than 50% of the cases – is 第年會，此資台

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the search for suitable land or existing factory building for their oper- 灣務所當「一式務中心」，幫助企 ations. InvesTaiwan maintains a large database of potential sites, and 業和方當在內的台灣打道。 can also tap into data compiled by the Industrial Development Bureau 資人助的最常題（其實在助 and the various local governments. 個中50以上），就是供營的合 When prospective new investors approach InvesTaiwan for help in 適或現工建。資台灣務所有 getting established, the organization assigns one of its staff members 大的在用資，還利用經部工 to be their “angel,” guiding them through the procedures of applying 業和方的資。 to the Investment Commission for investment approval, obtaining 在的新資來創業助時， company registration from the MOEA’s Department of Commerce, 資台灣務所會指一名工作人員擔任「 and meeting the various requirements at the local-government level. 」，指導資向會請資許 Another key function of InvesTaiwan is to promote Taiwan as a 、向經部業司進行公司，以達 prime location for foreign talent to come to live and work, partic- 方項要。 ularly young would-be entrepreneurs with ideas for start-ups. Its 資台灣務所的一項重要職，就是 Contact Taiwan website is a font of information on work regulations 台灣是適合國人才和工作的一 and opportunities in Taiwan. The organization has also dispatched ，其適合持創新創公司想法的有創 recruiting missions to California, Boston, and Japan, and set up coop- 業年輕人。資台灣務所了在「才 erative relations with some 40 universities around the world, including 方」大台灣就業法規和工作機會 the Irvine and Riverside campuses of the University of California, 資，還才代加、 the National University of Singapore, and Kobe, Waseda, and Meiji 和，並和約0所大學建合作關 Universities in Japan. ，加大學的灣和分、新加 Further, InvesTaiwan is putting increased effort into the role of 國大學，以的神大學、大學 investment promotion. In the past, the more than 60 MOEA represen- 和大學。 tative offices abroad dealt mainly with trade affairs. Now 24 of them 此，資台灣務所加進資 are also responsible for soliciting investment in Taiwan or investment 的。經部的0多個代處主要 opportunities together with Taiwanese partners in third countries, and 處務現在其中個代處 members of Taiwan’s diplomatic corps have similarly been instructed 對台資，或和台灣在第國合作 by the foreign ministry to add this item to their job functions. 資的機會。台灣人員接部 The kind of investment being sought is not limited to the tradi- 的似指，新進資的職。 tional model of a manufacturing operation. “It could also be other 台灣所的這資並不於模式的 types of activity such as a regional operations center, research center, 造業務。指出「以是其他 or logistics center,” notes Chang. 的動，如營中心、研究中心或 To cope with the added duties, InvesTaiwan has recently expanded 中心。」 what was its 24-member staff, adding 10 more personnel through 為了應新的職，資台灣務所最 secondment from other government agencies. Chang says he is also 有名工作人員的制，向其他 striving to inculcate the organization with the mindset of dedica- 機關的方式，10名人員。 tion to “providing service with a global vision.” Beyond investment ，他力對資台灣務所力於 in Taiwan itself, the goal is to benefit Taiwan’s participation in global 「提供具有性的務」思維。資台 supply chains and to link with Taiwanese companies and their subsid- 灣務所的並不於為台灣 iaries abroad. 資，希望幫助台灣參與供應，並和台 — By Don Shapiro 資企業其公司建。

文

For Faster Regulatory Treatment for Medical Devices

Taiwan should adopt the MDSAP multilateral approach to plant audit reports.

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n this year’s Taiwan White Paper, AmCham Taipei’s Medical Devices Committee called attention to problems arising 加管 I from Taiwan’s documentary requirements for medical device companies to qualify to utilize the government’s simplified 適用請 approach to auditing manufacturing facilities in the United States. As part of the process, the Taiwan Food and Drug Administra- 台灣 tion (TFDA) has ruled, the companies must obtain and submit an Establishment Inspection Report (EIR) from the U.S. FDA. 的國 The catch is that the U.S. FDA is no longer making such reports available. As a consequence, companies seeking to import their U.S.-made medical devices into Taiwan have been unable to 今年的台灣中，台國 take advantage of the simplified Quality System Documentation 會員會，關台灣要 (QSD) system. Instead, they have been subject to a more onerous 在業出具文，以合適用 and time-consuming regimen. 「造規國化模式」資 As a solution, the Committee proposed in the White Paper 所發的題。在管中，台灣 that Taiwan take advantage of an alternative auditing approach, 管規，業得並提國管 the Medical Device Single Audit Program (MDSAP) that was （FD）出具報告（R）。 developed by the U.S. FDA and adopted by IMDRF (the Inter- 題是FD不出具這報告，導 national Medical Device Regulators Forum). Member regulatory 國造台灣的業，法適用 bodies of IMDRF have either already accepted the auditing stan- 造規化模式，反而 dards necessary to participate in the MDSAP program or have 時的續。 committed to a timeline for doing so. 為了解題，員會在中建 Besides the U.S. FDA, the current MDSAP participants are the 請台灣接單一計畫（MD）作 relevant auditing organizations in Australia, Brazil, Canada, and 為代方式。此計畫由FD制，得國 Japan. A regulatory audit report issued by any of these bodies is 法規（MDRF）。MDRF員國 accepted by all of them as the equivalent of an EIR. 管機關非接加入MD計畫所的 TFDA has expressed interest in joining IMDRF in line with ，就是行時間。 Taiwan’s desire to take part in as many international orga- 了FD，加入MD的有、 nizations as possible. But so far Taiwan has refrained from 、加大和的關。任機 committing to set the auditing standards that are the heart of the 出具的管報告，被所有員為於 IMDRF initiative, making its acceptance as a member unlikely. 方報告。 The Medical Device Committee continues to urge TFDA to 台灣有加入MDRF，這合台 accept MDSAP reports instead of U.S. FDA EIR reports for appli- 灣能多加入國的望。不台灣 cations for treatment under the simplified QSD framework. 未建MDRF計畫心所在的，此 Following that course of action would bring several significant 不能加入。 benefits. It would enable medical device companies to bring inno- 員會持續台灣，對於 vative new products to Taiwan in more timely fashion, enabling 造規化模式提出的適用 Taiwanese patients to gain access to the latest medical procedures. 請，意業以MD報告代FD報 In addition, Taiwan’s participation in the MDSAP system would 告。此行動帶來重大好處，讓 make it easier for domestic Taiwan manufacturers of medical 業能時創新的新入台灣，台灣 devices to introduce their products to key overseas markets. 得以得最新的。此，台灣加入MD ，讓造於向 — By Don Shapiro 重要場。文

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Promoting Taiwan as a Liver Health Center of Excellence epublic of China Vice President speakers at the forum were the impor- keynote address, Chen Chien-jen, an epidemi- tance of increasing the amount of Vice President R ologist with a background in screening conducted in Taiwan for hep- used a Power- researching hepatitis B, was the key- atitis C. Although the effort would lead Point presentation note speaker at the Taiwan Liver Health to higher healthcare expenditures in the to brief the audi- Forum sponsored by AmCham Taipei near term, in the long-run it will sub- ence on Taiwan’s together with the American Institute stantially save costs due to reduced past successes in in Taiwan (AIT) and the Ministry of hospitalization and mortality, as well as combating liver Health and Welfare (MOHW). The heightened productivity. disease. Other speakers were Dr. Kao event, held at the Howard-Plaza Hotel Speakers also called for further Jia-horng, president of the Taiwan on October 3, was attended by 90-some expansion of clinical trials in Taiwan, Association for the Study of the Liver; guests from government, the medical more public education to raise aware- Dr. Pwu Raoh-fang, director of the community, and industry. ness regarding liver health, and MOHW National Hepatitis C Program The idea for workplace programs to encourage more Office; Dr. Homie Razavi, managing the forum grew screening. director of the U.S. Center for Disease out of a suggestion Opening remarks at the forum were Analysis; and Dr. Chiu Chang-fang, vice by AmCham Tai- delivered by AIT Director W. Brent president of China Medical University pei’s Public Health Christensen and MOHW Deputy Min- Hospital. Committee in ister Ho Chi-kung. In his half-hour Two panel discussions were mod- the 2018 Taiwan erated by Ramanathan Velayutham, 2018 U.S. - Taiwan Liver Health Forum White Paper that 2018臺美肝病防治論壇 Taiwan general manager for AbbVie Taiwan strive to become the “Liver Biopharmaceutical, and Pang Lai-li, Platinum Sponsors Health Center of Excellence in Asia.” Taiwan managing director for Merck Participants in the forum conﬁrmed the Sharp & Dohme (MSD), respectively. validity of that goal, citing Taiwan’s Aside from the speakers, the panelists pioneering work in past decades in con- included Dr. Lee Po-chang, director-gen- trolling hepatitis B through vaccination eral of the National Health Insurance

and the government’s progress toward Sliver Sponsor Administration, and Bristol-Myers eradicating hepatitis C in the coming Squibb General Manager Sophia Lee. decade in line with World Health Orga- AmCham Taipei President William nization objectives. Foreman gave closing remarks. Hepatitis is endemic in this part of Event Hosts Platinum sponsors for the event the world, and is considered a major were Abbvie, Bristol-Myers Squibb, health risk because it often leads to and Gilead Sciences. MSD was a silver liver cancer. Among the points made by sponsor.

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Taiwan’s New Residents 台灣的新住民

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NEW TAIWANESE

Taiwan Embraces Southeast Asian Immigration

The recent influx of immigrants from ASEAN nations dovetails with the Tsai administration’s New Southbound Policy.

BY MATTHEW FULCO

outheast Asian immigration to and stagnant population growth. out Southeast Asian laborers, Taiwan’s Taiwan is steadily rising amid “The impact of immigrants in Taiwan construction industry would be far less S deepening ties between the island is entirely positive,” Minister of the Inte- efficient. Meanwhile, Southeast Asian and ASEAN nations. Between 2010 rior Hsu Kuo-Yung said in an inter- caregivers ensure that many of the and 2016, Southeast Asian immigrants view. He says that the steady influx of nation’s elderly enjoy a decent quality increased from 130,000 to 170,000, Southeast Asian immigrants is natural of life. according to government data. Last for Taiwan “because we have been an Yet for the Tsai administration, the year, for the first time since 2005, more immigrant country since ancient times,” outreach to Southeast Asia also has a Taiwanese married Southeast Asians than adding that Taiwanese can trace their strong political dimension. During Ma partners from China. ancestry to Austronesia and Japan as well Ying-jeou’s presidency, Taiwan focused In addition to the brides of Taiwanese as mainland China. on building ties with China. Concerned men, many of the arrivals from Southeast To be sure, Southeast Asian immi- with Taiwan’s heavy dependence on Asia are male laborers or female caretak- grants are becoming a vital part of China, the Tsai administration has ers for elderly Taiwanese. The Taiwanese Taiwanese society, contributing to revamped former President Lee Teng-hui’s government hopes to attract more skilled economic productivity and diversify- outreach to ASEAN as the “New South- professionals from the region in the future ing the population. In some cases, they bound Policy.” to counter the island’s chronic brain drain fill tough jobs that natives reject. With- The Tsai administration has deep-

才，以應人才的老題以人長的現台灣擁抱東南亞移民。內部長國在接時「台灣來的是面的。」他說，持續有人台灣是常現，「為我們從時就是個國」。他並說，台灣人的了來自中國大，和有關。在為台灣會不或的一部分，對台灣經的生力與人的多化有。有時他們會擔起不從的工作如有工，台灣建業的就會差很多。文長時，讓許多台灣的老年人以享好的生質。灣與國會會員國的關，但對於文總的來說，加與關國到台灣的人長。的法有個重要的面。在總任內，台台方計，從010年到01年，台灣的灣於與中國發展關。對於台灣高從1人為1人。年，台灣人與中國到關，總發展的的台兩的，這是出來，為「新向」。 005年以來次出現的。化的，不是在加了到台灣的性，來到台灣的國對的資，時重帶到台灣。台有許多是性工與台灣老年人的性。灣會行長、大學研究中心台灣希望未來能從多業人行長，他們的下一代在內，台灣很

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ened Lee’s initiative by focusing as much Vietnamese spouses are especially indus- Asian immigration aligns with the Tsai on the inbound side as outbound invest- trious. After becoming established in administration’s shift away from China. ment. Alan Hao Yang, executive direc- Taiwan, they may set up small businesses Chinese immigration may entail poten- tor of the Taiwan-Asia Exchange Foun- of their own – including informal lending tial national-security risks that South- dation and National Chengchi Univer- services – that serve the wider Vietnamese east Asian immigration does not, says sity’s Center for Southeast Asian Stud- migrant community. “Some Vietnamese Yang Lian-fu, a historian and expert on ies, notes that there will soon be 1 million spouses even attain economic dependence Taiwan's demographic changes. “New Taiwanese” immigrants in Taiwan from their husbands,” he says. “The fact (including their children), a huge portion that they are able to do so shows the Attracting professionals of them from Southeast Asia. In Taiwan’ strong business opportunities Taiwan K-12 schools, there are already 80,000 offers to immigrants.” At the person-to-person level, Taiwan- students with a Vietnamese parent and At the same time, from a politi- ese have become accepting of South- 20,000 with an Indonesian parent, cal standpoint, encouraging Southeast east Asian immigrants, observers say. according to the Ministry of Education. As Southeast Asians grow in number here, “Taiwan is no longer just the south- ernmost point of Northeast Asia, it’s becoming the northernmost part of Southeast Asia,” Yang says. “This is a significant paradigm shift for a society that has historically identified most with its Chinese heritage.” Yang reckons that the number of Southeast Asian immigrants will steadily rise in the coming years. He points out that Taiwan’s minimum wage – while considered low by native Taiwanese – is higher than anywhere in ASEAN, even the region’s most developed economies of Malaysia and Singapore. As Taiwan ages, demand for laborers, caregivers, and other workers will only increase, he says. The Taoyuan Public Library has added children’s books in Vietnamese, Indonesian, Thai, and Burmese languages and urged mothers from Southeast Asian countries to In his research, Yang has found that read together with their children. PHOTO: CNA

會有100「新台灣人」，其中很大部分是來自。教育部計，在台灣的和學，有名生於其中一人是的，有名觀察說，在個人面，台灣逐接的的其中一人是。，但好位接台國會TC月說，台灣的加，「台灣不的，從機的來，還要進。是的最端，而是在為的最端。對歷 enny L是生於的，但不是國國。史上以認中為主的會來說，這是個重要的的在1年到台灣，進到國實轉」。驗高中學就。後來在台灣到大學學位，現在是認為，人在未來年會持續高中教師。加。他指出，台灣的工資被人認為，但說，到台灣後，很長時間能到中高於任國，內發展最高的經國國。在台灣生多年，但到「如來和新加。他說，台灣人老化，對於」，上面有分。有個文，以工、和其他工人的會來高。新加和，但不能國。說「他們我『有研究發現，來自的別，們在台國的時』。」灣生後，能會起生意，非式的，台灣最法，讓 enny L於在兩年以務其他。他說「有些不到中國，但對於了麼長的時間還是於，到經。們能到這一，就說了台灣。說「我此是要在這。我實喜台灣能對提供好的機。」的安性以工作與生的。為的和時，從觀來，合，我不會在。」不重中國的。研究台灣人化的歷史學但enny L不習台灣的文化。說，來自中國的能帶有國安的在風說「大的很。他們重的是，而非內，來自的則有這個題。在，這讓我很難接。」

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NEW TAIWANESE

However, from an institutional stand- gration laws allowed Lu to finally get found a job with the Taiwan branch of point, there is need for improvement, her ROC citizenship two years ago, but Garmin International, an American GPS according to several immigrants inter- she remains resentful about the drawn- technology company. He says that the viewed by Taiwan Business TOPICS. out process. “I’m here by default at this pay is good, the work is interesting, and Jenny Lu was born in the Philippines point,” she says. “I do like the safeness the working hours are reasonable. – but was not a citizen of the country – of Taiwan and the work/life balance. I He credits the Taiwanese govern- to a Chinese diaspora family. Lu’s parents wouldn’t go back to the Philippines to live ment with facilitating more opportuni- sent her here to study in 1996 at the because of the corruption and pollution.” ties for skilled professionals. In particular, National Overseas Chinese Experimental But Lu still struggles with Taiwan’s he cites the recent change in alien resi- High School. She later earned a univer- conservative Confucian culture. “People dency card regulations that allows skilled sity degree in Taiwan and now works as a are thin-skinned,” she says. “They’re foreign professionals to maintain their high-school English teacher. focused on how things appear rather than ARC – and by default, national health Lu says that after moving to Taiwan, their substance, which is very hard for me insurance – for up to six months when she had a hard time acquiring Repub- to accept.” they change jobs. lic of China citizenship. After living in Still, she plans to stay here for the “Before that change, if you were Taiwan for a number of years, she was immediate future as she enjoys her work. fired, you had to leave after two weeks,” issued an “overseas Chinese passport” “Teaching high-school English here is he says. “And if you wanted to switch that didn’t contain a national identifica- something I could do for a long time,” jobs, you still had to leave the country tion number. With that document, for she says. unless you were able to get all the paper- instance, she was able to travel to Singa- Andy Do, a Vietnamese national and work done in advance with your new pore and South Korea, but not the United permanent resident of Taiwan, is also employer” before leaving the original job. States. “They told me to come back enjoying professional success here. After In his seven years here, Do says ‘when you have a country,’” she says. earning a Master of Computer Science that he has seen a change in the atti- Recent changes to Taiwan’s immi- from Dayeh University in Changhua, he tude of native Taiwanese towards South-

但計畫期內還是要在台灣，為喜的工內部長國告TC月，在面作。說「在這的高中教文，是我以長期從力助新適應在台灣的生。他說，與的工作。」察部有能說言的人員，他們能說、 ndy Do是公，在台灣有永，而和的Bahaa，此，在台為新他在台灣的工作很利。他在化大大學得提供的國課。腦學位後，進入國位公司armin 在方，在擔任台長期間（1 nternationa台灣分公司任職。他說，他的高、工 00年），新會，的說作有意思，而工時合。，這個提供持，幫助新適應台灣的生他說，要台灣讓具有能的業人得，以「出與助的」。會以、多機會。他別出國人在台規，讓、、Bahaa提供務，有關法國業人在轉工作時，以最長達個題的建議。會並提供、、月，時以。，讓「位新以與」。他說「，如被開，在兩個期後時，新的經法與的就。如要工作，非（在職）能業人才與資。，資新台1,500以新的主好所有的文，還是出。」上於營利業或價值,000公的， ndy Do說，在台灣年期間，他到對時為台灣提供5個就業機會，要續在台的有所。他說「台灣的會如今對灣年，請台灣的永。現行規經。在，他們以為我很有，國人在台灣續5年，才能請永，才能來這學習，為當時工的學生。並不多。其實我是了學和生。」有些經學質這項法的處。台灣經研究他台灣的工作制。他是經學達生說「這項法起來是要提供人，有大學歷，但法不能在台灣工作。台灣永加人，能是讓台灣的工作機現行法規，有高階業人的以在台會被。」灣工作。中經研究第一研究所所長5月間在文他說「內人要5年才能得， Taiei Time發說，了工作難，才有在台灣工作。這並不合。」新法能「帶來會題，如台灣接大的時，為ndy Do是人，他們的話」。法輕進入台灣的公學就。台灣的公學一智台灣研長開給在台灣有的學生。他說「這真的不這項法的。他說「我們在向多。我在這工作，有，但我的不能上公業人才的方向，這是的。」但他說，應要學。」永規的。

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east Asian immigrants. “Taiwanese society is now more familiar with South- east Asians,” he says. In the past, people assumed I was very rich to be able to come here and study because there weren’t many Vietnamese studying in engineering programs at the time. I actually received a full scholarship and a living stipend.” Do urges the Taiwanese government to relax restrictions on foreign spouses’ ability to be employed. Although his wife, who is also Vietnamese, has a college degree, she cannot legally work in Taiwan; only the spouses of senior foreign professionals in Taiwan are eligible under current immigration law. A community service center in Kaohsiung teaches basic computer skills, including “My wife needs to wait five more emailing, to spouses from Southeast Asia. years until she gets a permanent alien resi- PHOTO: CNA dency card to have the right to work in Taiwan, which isn’t reasonable,” he says. system to help immigrants adapt to life in Some economists question the bill’s At the same time, because both Do Taiwan so as to “avoid isolation” as well merits. “The legislation looks like an and his wife are foreigners, their child as an “underprivileged image.” The Hall attempt to boost the population by offer- cannot easily gain entry to Taiwan’s offers consultation services in English, ing permanent residency, and it may take public school system, which is typically Vietnamese, Thai, and Bahasa Indone- jobs away from Taiwanese,” says Darson open only to students with a Taiwan- sian, including advice on legal matters. Chiu, an economist at the Taiwan Insti- ese household registration. “It’s really Among the Hall’s recreational facilities tute of Economic Research (TIER). unfair,” he says. “I work here, pay taxes, are children’s reading materials, a chil- In addition to increasing competi- and my kid can’t go to public school.” dren’s play area, and karaoke equipment tion for jobs, the law might “give rise Minister Hsu told Taiwan Business to enable “all new immigrants to sing to social problems if large numbers of TOPICS that the government is making a and enjoy their time with friends.” immigrants are absorbed into Taiwan,” comprehensive effort to help immigrants Meanwhile, new economic immi- wrote Liu Meng-chun, a director at the adjust to life in Taiwan. He says that the gration legislation is targeting profes- Chung-Hua Institution for Economic National Immigration Agency and various sional talent and capital from Southeast Research, in a May commentary police departments have personnel with Asia, Hong Kong, and Macau. Under published in the Taipei Times. Southeast Asian language skills, includ- the draft act, immigrants who invest at Hank Huang, president of the Taiwan ing Vietnamese, Thai, and Bahasa Indone- least NT$15 million in a “profit-oriented Academy of Banking and Finance, a sian. Further, the government offers free enterprise” or NT$30 million in govern- financial-policy think tank, urges the Chinese-language classes to immigrants in ment bonds, while creating job oppor- government to carefully consider the locations throughout Taiwan. tunities for five Taiwanese or more, will impact of the legislation. “We are moving At the local level, a New Immigrants be eligible for permanent residency after in the direction of welcoming more skilled Hall was established in Taipei’s Wanhua residing in Taiwan for just three consec- immigrants – that’s for certain,” he says. District during Ma Ying-jeou’s mayorship utive years. At present, one must stay in However, the government should consider (1998-2006). The official English website Taiwan for five years in a row to apply the social-welfare costs of easing restric- states that the facility provides a support for permanent residency. tions on permanent residency, he adds.

New Coding Coming for ARCs Minister of the Interior Hsu Kuo-yung informed Taiwan tive for them to stay, the Minister said. Business TOPICS that the current coding format for Alien After the revision, foreign nationals will be able to Residence Certificates (ARCs) – two letters from the English shop online, book tickets, and register for medical care or alphabet followed by eight Arabic numberals – will be various types of membership using the same procedure as changed to mirror the coding format of Taiwan’s National Taiwanese nationals. The Ministry of the Interior said it Identity Card number issued to citizens. This change to one will coordinate with other ministries and important indus- letter from the English alphabet followed by nine Arabic trial and commercial groups to help integrate the vari- numberals is designed to provide greater convenience to ous information systems and facilities of the public and foreign nationals living in Taiwan, providing another incen- private sectors.

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she is disappointed with the stagna- tion of the island’s economy over the past decade. “Politicians here don’t do enough to support the economy,” she Taiwan Attracting Fewer says. “They’re always just thinking about the next election.” Because of that short-term think- Chinese Immigrants ing, Taiwan is falling behind many of the mainland’s cities, she says, adding: “The opportunities here are not growing.” Given the tepid economy and tensions in relations with Beijing, That may be one of the reasons why Chinese immigration to Taiwan has fallen the island is no longer a magnet for cross-Strait marriages. sharply in recent years. Data compiled by the National Immigration Agency show that nearly 339,000 Chinese spouses BY MATTHEW FULCO reside in Taiwan, accounting for close to 65% of the 533,000 new immigrants over the past decade. Yet the majority of Chinese spouses – roughly 200,000 or hen Lisa Li arrived in Taiwan air-conditioned bus. The Wuhan metro 59% – arrived more than a decade ago. in 2001, the island was more did not begin service until 2004. There Last year, the number of Southeast W advanced than anywhere were no five-star hotels and few 24-hour Asian spouses surpassed Chinese spouses on the Chinese mainland. The capi- convenience stores. for the first time since 2005, according to tal city of Taipei had a brand-new MRT In the late 1990s, Li met the man who the Ministry of the Interior. About 41% system, five-star international hotels, would become her husband, a Taiwanese of Taiwan’s transnational marriages last and 24-hour convenience stores on most businessman, in Wuhan. As the romance year were to Southeast Asians, compared blocks, and was building the world’s tall- blossomed, they relocated to Taiwan and to 36% with Chinese. est skyscraper. got married. Today she and her husband Back when Taiwan’s economy was Li’s hometown of Wuhan, the capi- live in Taipei with their two sons. still booming in the 1990s, some Chinese tal of Hubei Province and the most popu- She has no regrets about her deci- women dreamed of marrying a Taiwanese lous city in central China, was primitive sion to move here. “I like Taiwan,” she man and moving here to enjoy a better by comparison. Most of its 10.5 million says. “The standard of living is good life, says Yang Lian-fu, a historian who people got around by bicycle or non- and life moves at a leisurely pace.” But studies Taiwan’s demographic changes.

（）在001年來到台灣，當時台灣中國大任方進步。所在的台有新的、國，經濟發展快速有年不打的利，而台在建世界最高的大。中國移民台灣人數減少來自的會，是中人最多的，台後許多。有1,050人，多人在來是自行或有的公。的到00年才開始營，當有，很到時營業的利。 10年代期，在認未來的，通他是個台。兩人的長，他們到台灣，為。他們兩個台。對於到台灣的不到後。說「我喜台灣。這的生好，步。」但對於文長台灣10年經發展到望。說「這的人在經方面得不，他們老是想下一次的選。」說，台灣為，經後中國大的許多，「這的機會有在加」。這能是中國台灣人年大的

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At the time, Taiwanese businessmen were prevalent along China’s southeastern seaboard, the site of many Taiwan-owned manufacturing facilities. A 2004 report in the Washington Post described the cross-Strait marriages as often “based more on economics than love.” Chinese immigration to Taiwan peaked at about 34,000 arrivals in 2003, accounting for more than 20% of all immigrants. The following year, Chinese immigrant numbers dropped to just 10,500 and have yet to significantly rebound. Meanwhile, China’s economy grew by a double-digit clip from 2003 to 2007 and didn’t fall below 9% until 2012. This year China is expecting 6.5% growth, Members of a support group for spouses from China demonstrate in front of the which is still almost triple that of Taiwan. Legislative Yuan to advocate more liberal residency status for wives in “cross-Strait Ironically, despite the celebrated thaw marriages.”. in cross-Strait relations during Ma Ying- PHOTO: CNA jeou’s presidency, fewer Chinese chose to move here. By 2016, Taiwan was years ago might have taken a chance on Obstacles to integration welcoming fewer than 9,000 new Chinese an arranged marriage with a Taiwanese immigrants per year. man are now less likely to do so, Yang To be sure, Chinese spouses face “Some Chinese are choosing to stay says. “Some of those marriages didn’t particular challenges assimilating in put because of the significant economic work out,” he observes. “Some Chinese Taiwanese society. One of the foremost is improvements there in recent years,” Hsu spouses came here and found that they the six-year wait before becoming eligible Kuo-Yung, Taiwan’s Minister of the Inte- had been misled [by the marriage broker for Republic of China (the official name rior, told Taiwan Business TOPICS in an and/or their husbands] about their of Taiwan) citizenship. Immigrants of interview. husbands’ finances, occupation, or social other nationalities are eligible for citizen- As a result, Chinese women who 15 status.” ship after four years.

一。的資，有,000名大為人所道，但選台灣的中國在台灣，10年新人（5,000 得。到了01年，中國台灣的人到人）的5，但這些多（約0人，5） ,000人以下。並非在10年來到台灣。內部長國接台國會TC月內部計，來自的人在年時「由於對經來大長，有些中，這是005年以來次出現的現。國選在當。」研究台灣人化的歷史學說，10年說，此，15年中國能會在安排代，當台灣經還在發展的時，有些中國下，未經就到台灣，如今就不能這麼想要給台灣人，然後到台灣來享對好的生。他說「當年的有些了。有些來到台。當時台中國，是許多台灣，發現被（或他們的）了，們灣企業所在。的財務、職業或會位不是所說的。」報00年的一報導，台兩的「是經而非」。台灣的中國大人在00年達到高，約有 ,000人左右，當年部來的0，但很的是，要入台灣會，面臨別的挑年就1500人，此後未。戰，其中最主要的年，才有資得中時，中國經從00到00年間，年以兩位國國。其他國的年。的長，到01年才下到以下。中國今年的實上，在中國法下，不是「國」經長為5，還是台灣的長高出人，他們的位是台灣與大人關兩。規。行大員會的資，兩人關的是，管擔任總期間兩關的和是要在「國一，為台灣安與

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In fact, Chinese spouses are not who live in Taiwan and fight for Taiwan who have gained the right to vote in considered “foreign” under Republic of are our family members,” the Taipei Taiwan’s elections through ROC citizen- China law. Their status in Taiwan falls Times quoted party spokeswoman Rosa- ship, he says. under the jurisdiction of the Act Govern- lia Wu as saying. “The Chinese government keeps track ing Relations between the People of the Minister of the Interior Hsu explains of the people who move to Taiwan,” he Taiwan Area and the Mainland Area. that “the citizenship requirement for notes. That law is “specially enacted for the Chinese exists for legal reasons and is not In a December 2015 commen- purposes of ensuring the security and at all intended to be discriminatory.” tary published on theasiadialogue.com, public welfare in the Taiwan Area, regu- Lisa Li says that when she first arrived Lara Momesso, a researcher at Britain’s lating dealings between the peoples of the in Taiwan, she felt that people sometimes University of Portsmouth, noted that Taiwan Area and the Mainland Area, and treated her differently if they discov- 122,269 out of 329,215 Chinese spouses handling legal matters arising therefrom ered she was from China. “It wasn’t that had acquired ROC citizenship and were before national unification,” according to I was treated badly, but people might be eligible to vote in Taiwan’s November an English translation published by the less open with me. They would be a little 2014 elections. Mainland Affairs Council. more on guard.” Further, she points out that Chinese In August, the issue came to the fore Over the years, such encounters have spouses have set up several alleg- when Democratic Progressive Party become rare. Li attributes the change in edly pro-unification political parties in (DPP) legislator Tsai Yi-yu said in a Face- attitudes to the assimilation of Chinese Taiwan, including the China Production book post that Chinese spouses’ longer spouses into Taiwanese society and the Party, the Chinese New Resident Party, wait for citizenship was justified. In the rise in cross-Strait exchanges. “It’s no and the Taiwan New Republican Party. post, which was later deleted, Tsai cited longer unusual to see mainland Chinese However, the emergence of these parties Beijing’s pressure on airlines to refer to in Taiwan, so locals are more relaxed should be seen as a reaction to the Taiwan as a part of China and its lobby- around them,” she says. “long-term discrimination and margin- ing to prevent Taichung from hosting Still, given Beijing’s intentions to alisation” Chinese spouses have been the East Asian Youth Games. That bully- annex Taiwan, some suspicion of subject to in Taiwan, Momesso wrote. ing has “made Chinese spouses deserv- Chinese immigrants is unavoidable, That includes “a neglect of the desires ing of differential treatment,” Tsai wrote, analysts say. Historian Yang reck- and needs of this group by the main according to an August report in the ons that the Chinese Communist Party parties and a politicisation of their daily English-language Taipei Times. is able to influence 5-10% of Taiwan- lives and intentions.” The DPP quickly moved to distance ese voters to select its preferred – pro- With the right to vote, Chinese itself from Tsai’s comments. “All new Beijing – candidates. One of the ways spouses have “a new means to change immigrants, including Chinese spouses, it does that is through Chinese spouses this unfair condition,” she concludes.

，規台灣與大人來，並處了。說「在台灣到大來的人經不麼，生法」。此人在接到大人的時，就了。」今年月，主進步在文，為但分說，一心想要台灣，此台灣與的差別合化，讓這個議題到關對大難會有些。說，中國共。他在這後來的文中說，當對國以5到10的選，讓他們給好的公司，要台灣為中國的一部分，而中選人，方法一是經得中國國此台中法主年動會。文Taiei 以的大。 Time在月的報導，在文中說，在中共的說「中國會意到台灣的動打下，「我們和差別，好而向。」！」國資大學研究員015年1月在進與的發言界。Taiei theaiadiaoeom發的，在,15 Time進發言人思的話說「所有在台名的當中，有1,人得中國國，灣力生、為台灣共打的新，，以在01年11月的選中。是我們的人。」此，指出，在台灣好個是持內部長國說指出，「對於中國人入的規一的，中國生、中新和台灣新有法，不是出於」。共和。說，到台灣時得，如別人發現是但道，這些的出現，應被為對於從大來的，對的就會不一。「不是對我不在台灣「長期到與化」的反應，「主要好，但他們對我能就不麼開。他們會心一這個的望與，以他們的常生。」與意到化」。這些年來，這了。認為這個上的在中說，有了後，得了「，是為入台灣的會，兩的多不公的新」。

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Meet Some New Immigrants

BY COURTNEY DONOVAN SMITH

the spouses to work for themselves – a situation that causes friction and often leads to divorce. Elizabeth, however, is happy in Taiwan, enjoying the way of life, safety, cleanliness, and convenience here. When asked if she missed anything about the Philippines, she at first said “nothing,” but on reflection noted that she is disappointed at the lack of an English-language environment in Taiwan for her daughters to improve their language skills.

Elizabeth Yeh (Philippines)

Today Elizabeth Yeh is well known among many of Tai- chung’s international travelers as the owner of the Eliza- beth Travel Service, a future that never would have occurred to her as a young girl in Manila. After earning a degree in medical technology and moving on to medical school, she had to give up her studies to help support her family after her father passed away. With her good English and Chinese skills, she was hired Wong Sai Cheong (Hong Kong) by a Taiwanese pharmaceutical company in the Philippines. But in pursuit of a higher salary, she began looking for jobs With a strength built of hard work and a ready wit, in countries like Canada. Taiwan wasn’t even in her “wild- Wong Sai Cheong has for many years run a Hong Kong- est dreams” until her mother suggested she ask her company style duck restaurant with his wife, mainly serving work- about working there. The answer was no, not without a ers from the towering office blocks on Taichung’s Taiwan Taiwanese ID. But the very next day the manager called – Boulevard. During a lull between lunch and preparing for “Do you believe in fate?” he asked – and told her that he dinner, he spoke with Taiwan Business TOPICS in fluent, had just met a Taiwan Provincial Government official who barely accented Mandarin. had come looking to hire a nanny for his children. In the wake of the United Kingdom’s agreement to hand She arrived in 1989, when the Taiwan economy was over Hong Kong to China, 22-year old Wong was one of booming and everyone seemed very busy and hardworking – many who left the city, nervous about the future under the but friendly. Being ethnically Chinese, she was able to apply Chinese Communist Party. Arriving in Taiwan in 1988, he for citizenship, and eventually went on to other jobs, includ- was impressed by the flourishing economy but startled at ing secretarial work for a Japanese company, then with a how chaotic Taiwan seemed compared to British-ruled Hong travel agency, and eventually founding her own agency. She Kong, especially the traffic. married, coincidentally, a student of the very same manager He found a job with a restaurant, and after getting used who had helped her in the Philippines and started teaching to life in Taiwan, marrying a Taiwanese wife, and draw- English after returning to Taiwan. ing a good salary, he lost any interest in returning to Hong While she herself didn’t face many challenges in her life Kong. Wong speaks positively about many aspects of living or marriage due to being an immigrant, she spoke at length in Taiwan, particularly how relaxed it is in contrast to the about the challenges her friends from Southeast Asian coun- stressful working environment in Hong Kong. He also tries often face. Some Taiwanese look down on Southeast appreciates the friendliness of the Taiwanese, and says he Asians, and that – combined with the conservatism of many has never felt any sort of discrimination or lack of accep- Taiwanese men – can create marital problems, she said. tance as an immigrant. Specifically, some husbands are reluctant to share access to He did note, however, that before he secured his local the family finances with their Southeast Asian wives, forcing identity card (at the time it was relatively easy for Hong

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Kong citizens to get ROC citizenship), it was often difficult to handle many procedures or obtain government services. Today, he says the only thing he misses about Hong Kong is family, whom he visits annually during the Lunar New Year. He has one grown child, who is currently – ironically considering the reason Wong came to Taiwan in the first place – living in China.

Gilana Bulakon (Thailand) PHAM AT RIGHT, WITH A FRIEND Joined by her genial husband and briefly by phone by Pham Thi Huong (Vietnam) her English-speaking son, Gilana Bulakon, a practical and hard-working woman originally from Bangkok, spoke to Pham Thi Huong is the proprietor of a frequently this reporter while all were perched on stools around an bustling Vietnamese restaurant selling classic dishes like pho office desk. and baguettes to a crowd of largely Vietnamese workers and She came to Taiwan in 1988 at age 25 to take a job at spouses near the Taichung Industrial Park. Shifting effort- a shoe factory, at the time a massive industry centered in lessly between roles as no-nonsense business owner and Taichung. Within a year, she was married to her boss, and friendly, smiling, and engaging hostess, Pham has done well began putting down roots in Taiwan. Today, she and her since arriving in Taiwan in 2009. husband run a small Thai restaurant and supply shop, serv- Speaking with Taiwan Business TOPICS in fluent, only ing up excellent pad Thai and providing a comfortable lightly accented Mandarin, she took some time off after hangout for both residents of the local neighborhood and her busy work day to share her story. Like many Vietnam- for Thai workers from the factories in the area looking for ese, she came to Taiwan because of her marriage, which she a place to relax after work. said – when asked – remains the top reason for her staying Given to short, to-the-point answers, Gilana speaks in Taiwan today, suggesting her marriage has avoided the fluent Taiwanese (Hoklo), with Mandarin very much her pitfalls that Elizabeth Yeh noted plague some other cross- second choice for communicating with the local population. cultural marriages. These days she shuttles back and forth between Taiwan and Pham had a good impression of Taiwan from the Thailand, spending about half the year in Thailand, where beginning, noting that on arrival she was impressed that her son is currently working. the people were friendly and enjoyed a good lifestyle. Asked about the current differences between the two Commenting on the differences between Vietnamese soci- countries, her answer was a simple “about the same.” But ety and Taiwan, she noted that in Taiwan she feels very safe, she emphasized that there were big differences when she and that if any problems arise the hospitals, police, and first arrived in Taiwan. Taiwan then was “good for making others in Taiwan are genuinely there to help – something she money – lots of work, lots of factories,” she noted. is less certain of in Vietnam. After a pause, she added that the people in Taiwan are In answer to a question, she conceded that there are very good, and that medical care is much more conve- also some problems and challenges in Taiwan. With some nient in Taiwan than in Thailand, where there is usually a frustration showing, she commented that some people in long wait to get to see a doctor. When the topic came up of Taiwan don’t seem to like to listen to or deal with Southeast whether she had ever faced any challenges or difficulties as Asians. Still, she remains committed to her life in Taiwan, an immigrant in Taiwan, her answer was “no.” However, only missing family members in Vietnam, whom she visits after a pause she came up with one very practical challenge several times a year. she faced as a new immigrant: “I had less money.”

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ORGANIZED SLEEPWALKING

A day in the life of a Taiwan-based Swiss lawyer in Cambridge, Massachusetts.

BY NATHAN KAISER

PHOTOS BY FIONA KUEI

an ideal option, despite a nap at noon. of the terms of use of the U.S. providers The original idea was to stay in due to being below the minimum age, the United States for a few weeks, I can reconcile with the research goal. then a summer, and finally a decision As a parent, I have to take responsi- to remain for a whole school year at bility for this. For the sake of research, I the Harvard Law School’s Berkman accept that. Klein Center, Institute for Internet and Society. This would not be a sabbatical, 6:00 a.m. After a weather and cal- since it is well known that lawyers are endar announcement by Google, I make not allowed to take holidays or make a ﬁrst push with emails and one or two themselves unavailable. Why lawyers short phone calls. With that, I can tie up should be an exception is still a mys- some last loose ends in the working day tery to me, but I didn’t want to break regarding clients and employees in Asia. old conventions. After 18 years in Asia. I simply wanted a physical and mental 6:45 a.m. “Guete Morge Papi!” - the change, an enrichment for myself and children are awake now, and my first 4:30 a.m. Getting enough sleep my family. batch of work comes to an abrupt end. turns out to be one of the biggest chal- In the Far East it’s closing time again. lenges here. Due to the 12-hour time 5:45 a.m. After a few weeks my difference, Harvard’s location in Mas- daily routine has begun to settle down. sachusetts is not the most suitable for Getting up in the morning at a more dealing with Taiwan matters. At first I normal time, my day starts in the tried various approaches, for example kitchen with the routine “OK Google, getting up at 4:30 in the morning so Good Morning!” and support from I could start working from 5 a.m. artificial intelligence. “AI” is the buzz- around the corner at Starbucks, which word I’m working on as a fellow at opens conveniently early. That gave me Harvard involved in fintech. If you another hour of time with Asia. want to get familiar with artiﬁcial intel- It quickly turned out, however, that ligence, you have to feel it every day – my evening window in Boston from 9 including my two rascals, who take part p.m. is the more practical timeframe. in the AI experiment in our own living The children are in bed, and colleagues room and kitchen, with a lot of com- in Taipei are about to start their day. But mitment. I soon realized that neither time is really That the two of them violate some

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7:50 a.m. After breakfast I bring the her preference in no uncertain terms. children to school, which is still quite an experience for me. As a child in 8:35 a.m. Depending on the day Solothurn in Switzerland, I would ride and meeting schedule, I sometimes stop around on a bike. As an adult in Taipei, for coffee on the way to my workplace it is usually Uber. Here in the States, it near Harvard Square. Not far from the is a mixture of both – in sunshine with area’s German school, a Swiss couple the bicycle, in rain or snow with Lyft has set up a café with a bakery called and Uber. “Swissbäkers.” It’s always filled with customers – parents from the German school, but also students and professors from the nearby Harvard Business School, on their laptops, on the phone, or making business plans on napkins made of recycled paper. I’m in familiar territory, as it feels but they dig deeper and prompt fur- like being at Starbucks or 85°C in ther discussion, so the follow-up can Taipei. For longer conference calls, I be as valuable as the meeting itself. At follow a procedure developed by an first this style seems less efficient, but acquaintance of mine, also a lawyer as I quickly discover it leads to more with a child at school. She leaves the broad-based decisions, which are more cake on the table, takes her coffee with in-depth, or in the local jargon “more her, and gets into her car in the parking informed.” lot to make calls. My experience here also reminds me of my longstanding fascination 9:00 a.m. In Boston, the optimal with foreign languages. Just as when The latter option is AI-supported – I time window with Europe is the local I arrived as a young exchange student can’t seem to get away from the topic. morning, so I spend the next few hours at a high school in Pennsylvania, then In the first option, however, I choose (in addition to occasional meetings again as a 20-year-old at the University the optimal route myself, with the short at the university) mainly with confer- of Lausanne, and finally as a 28-year- ride surprisingly safe and comfortable ence calls, allowing me mentally to put old in Taipei, I was again confronted thanks to the town’s well-developed Taiwan behind. The constant thinking with situations completely beyond my bike lanes and considerate drivers. in three time zones is mental acrobatics understanding. Traffic is a pleasant contrast to Asia, and one more thing that keeps me Language is a mediator of ideas. where despite the recent wave in bike feeling young. It was brought home to me how in popularity, cyclists usually need to keep The research and academic work at Asia ideas like the newer concept of to the sidewalk for safety reasons. Harvard is the real reason for our being “inclusion” – but also older topics like So far I have managed to more or here and greatly enriches my everyday “gender equality” – unfortunately are less maintain a Taiwanese lifestyle, life as a lawyer. Appointments and time too infrequently the subject of everyday which is not what I had originally asso- pressures are the same, and yet it’s dif- conversation, whether in the profes- ciated with the U.S. east coast, and ferent. There are still questions and sional or private sphere. Even more especially New England. To deepen comments at the end of a meeting, pronounced is the gap regarding the the experience a bit, I occasionally word “diversity,” an expression that is use my newest gadget, an electric uni- only just emerging in Asia. A panel with cycle designed in California and made only male participants (“manel”) is in China, instead of a bicycle. Staying hardly conceivable in the United States, balanced keeps me young – more of an but still happens often in Taiwan. exercise than a sport. The intellectual fertilization and The purchase, partially made in an the exchange of ideas are of course attempt to overcome my midlife crisis, two-track. For my part, I am able to was urgent. According to the poorly introduce Asian ideas in Boston, for translated manual, the maximum age example how to maintain a certain for use is 50 years old. As my time ease in navigating in a complex and window is just under two years, it was adverse environment. What I learned in now or never! My wife, who is from Taipei as a Swiss national (note: in the Taiwan, aided with the decision. When meantime I have become a Taiwanese I asked her whether I should buy a race citizen, while keeping my Swiss citizen- car or an electric unicycle, she stated ship) now helps me as a foreigner in

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the United States. Others appreciate it and I don’t miss out on keeping up with when I keep calm in the face of prob- the neighborhood news. lems and challenges, responding with a radiant smile. “Everything is possible” 7:30 p.m. We continue our conver- is a lesson I learned in Taiwan. sation while being driven home from the restaurant. Everyone is talking at 12 noon. Cambridge, Massachusetts the same time, which in our family has a population of just over 100,000, means Swiss German and Mandarin plus around the same number of stu- with a Taiwanese flair, depending on dents and visitors of all kinds – a small who is talking to whom (one of us town comparable to Taipei’s Shilin speaks Mandarin with a strong Swiss district. But there is a lot going on – accent). After only three minutes and practically every day I find an event to having turned his head to look back attend relating to Taiwan or China, fin- about five times, the driver finally dares tech, or AI. The numerous schools and to ask the standard question: “Where institutes seem to outbid one another to Valley culture than the early Massa- are you from?!?” and a lively discussion satisfy their clientele. From gene editing chusetts that one associates with events begins. Although supported by artificial with CrispR to Chinese health policy, like the Boston Tea Party or Salem intelligence through car-sharing apps, the range is wide and deep. witchcraft trials. the ride is ultimately about interper- Nevertheless, it remains a manage- It is at this time of day that I often sonal contact and being human. able world, with most events within just take a break with a yoga lesson, walking distance. The metro line, where I regularly fall asleep at the end 8:30 p.m. The children are in bed. deeply in need of renovation, doesn’t (known as savasana or the “corpse pose” My Asian night shift now begins again make a strong urban impression the – I’ve learned a new language in my yoga through phone calls with the teams in way the MRT does in Taipei. Rather, it classes too). The one or two unavoidable Shanghai, Hong Kong, and Taipei. To is more like a bus line that happens to phone calls at 6 o’clock in the morning motivate myself I treat myself to a por- be underground. take revenge around this time. tion of warmed up mapo doufu. Old Only the law firms seem to hold habits die hard! events on the other side of the river, 2:00 p.m. I enjoy the afternoon amid the skyscrapers of downtown and my isolation from both sleeping Boston, kind of like the Xinyi district. Europe and Asia. I calmly devote myself Both Boston and Cambridge have been to longer documents, more complex strongly influenced by Palo Alto and contracts, and to whatever has been Mountain View. The dress code in the postponed. The late summer here grips city’s law firms is also casual, and net- me like a cliché – I do not fight against working is in everyone’s blood. The it, but let myself be carried along. questions “Where are you from?” and “What are you working on?” are 5:00 p.m. Duty calls and it is time heard often, usually answered by “I’m to pick up my son. “Sports” is written still looking around.” Cocktail parties in capital letters here in the United with topics like “Artificial Intelligence States and also at the German school. in Healthcare” are closer to Silicon My older son climbs, which somehow reminds me of my Sunday bicycle rides up to Yangmingshan. With their indoor climbing walls, today’s youth is much — Nathan Kaiser, a partner in the more detached from the outdoors. Taipei and Shanghai-based law firm Eiger, is currently a Fellow at Harvard 6:00 p.m. We happily go out for University’s Berkman Klein Center, Chinese food in the evening. Thanks where he works on regulatory and to the substantial number of Chinese policy issues at the intersection of law students in Boston, there is more than and technology. His main focus is on enough to choose from, from spicy digital finance and digital assets, as Sichuan, to Hong Kong dim sum, to well as artificial intelligence. These Taiwanese noodle soups. Chinese is topics are closely linked to data protec- being spoken all around us, and our tion and privacy laws. As a practicing family feels like we’re in a strangely lawyer within the academic setting, familiar environment. From time to he is able to add a unique Taiwan and time the talk turns to law and politics, Asian legal perspective.

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 27

profile.indd 27 2018/11/5 下午1:17 BACKGROUNDER

PRIVATIZATION EFFORT SLOWS TO A CRAWL

Thirty-nine state enterprises have been converted into private companies since 1989. The next stage will be the most difficult.

BY PHILIP LIU

ver the past three decades, a A key reason for the turnabout by the Executive Yuan in 2009, due to total of 39 state-owned enter- has been the strong opposition from a deadlock in the negotiations between O prises in Taiwan have been employees and the labor movement, management and the labor union. transformed into private corporations fearing the impact on jobs and benefits. When the Taisugar privatization through the sale of shares in an effort The government originally planned plan was approved by the Executive to promote efficiency and reduce the to cut its stake in CPC, for instance, Yuan in 2006, a schedule was set for direct involvement of the government to under 50% by the end of 2017 by spinning off the company’s non-core in the economy. The last such case – the means of an initial public offering. activities – such as hog raising, leisure Taichung-based Aerospace Industrial The plan has been put on hold indefi- and entertainment, and gas stations – Development Corp. (AIDC) – occurred nitely due to vehement opposition by with the main sugar business, along in 2014. the labor union, which demanded a with majority of its vast land holdings, Since then the process has slowed to pledge that privatization would not lead remaining in the hands of the original a halt – in part because the remaining to any layoff or pay cuts. That posi- company. Now, more than a decade cases may be the most challenging and tion proved to be a major obstacle, as later, the plan is progressing at a snail’s perhaps partially because the Demo- the Legislative Yuan had approved the pace, again mainly due to complications cratic Progressive Party (DPP) appears privatization plan on the condition that involving personnel issues. to have changed its attitude toward agreement could be reached between At Taipower, the privatization pro- privatization since returning to power management and the work force. gram was suspended following the in 2016. Nevertheless the original rationale January 2017 enactment of the Elec- During the Ma Ying-jeou presi- for privatization is still seen as compel- tricity Act, which calls for the company dency, seven state enterprises were put ling. “Privatization is imperative for to split into two entities – one for on a priority list for privatization: CPC CPC Corp. given the acute competi- power generation and the other for Corp. Taiwan (previously called Chi- tion in the liberalized petroleum market, power transmission and distribution – nese Petroleum Corp.), Taiwan Sugar notably that from the Formosa Plas- within six to nine years. Corp. (Taisugar), Taiwan Power Co. tics Group, and the company’s pledge The power-generation company will (Taipower), Taiwan Tobacco & Liquor to remove its refinery in Taoyuan, fol- face competition from private green- Corp. (TTLC), Taiwan Water Corp., lowing the closure of its fifth naphtha power generators, mainly solar and Taiwan Railways Administration, and cracking complex in 2015,” said an offi- wind power, which are being encour- Chunghwa Post. Under the current Tsai cial at the State Enterprise Commission, aged through government incentives Ing-wen administration, however, there who asked not to be identified by name. as part of the ruling DPP’s vision of has been no indication of movement TTLC has also suspended its priva- creating a “nuclear-free homeland.” toward carrying out that process. tization program, which was approved Consequently, Taipower’s share of the

28 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

state enterprise.indd 28 2018/11/5 下午1:18 BACKGROUNDER

power generation market will drop nient to have the huge state-enterprise government has continued to hold a from the current 66% (the remaining assets at its disposal to help facili- substantial minority stake in the enter- 34% is accounted for by the nine inde- tate implementation of its economic prise, enabling it to dominate the pendent power producers and 50-plus policies, notably the Five Innovative board, control appointments to top co-generators). Industries of green energy, biotech, management posts, and dictate opera- The power transmission and distri- smart machinery, defense technology, tional policy. bution company is expected to maintain and the Internet of Things (IoT). The Often such former state enterprises a near-monopoly position, although pri- state enterprises also provide extensive are even handier tools for the govern- vate green-power firms will be allowed opportunities for political appointments ment, due to their exemption from to transmit and distribute their power to executive positions. legislative oversight. These compa- output themselves. “From an economic perspective, nies include Chunghwa Telecom, China But considering the pending reor- state enterprises should be fully priva- Steel, CSBC Corp. (formerly China ganization, not to mention Taipower’s tized, except some with special policy Shipbuilding), and the three commer- dismal financial situation in recent missions, such as Taipower, which has cial banks of Chang Hwa, First, and years, there is little likelihood that pri- to serve the power needs of remote Huanan. vate investors would be interested in areas,” observes C.V. Chen, chairman taking over either company at this time. and senior partner of law firm Lee Historical background Given the public nature of its ser- and Li. “Once assuming power, the vice, including meeting the needs of DPP, like the KMT, has been reluc- The government began promoting remote areas, the Taiwan Water Corp. tant to forego the grip on the enormous the privatization of state enterprises has halted its privatization program, resources of state enterprises, not only in 1989, in line with global trends of instead introducing a management style for the implementation of its policies economic liberalization and internation- more akin to private enterprises and but presumably also the mobilization of alization, in order to strengthen business farming out some operations. support during elections. In addition, performance, enliven market competi- Meanwhile, the privatization with few exceptions, legislators oppose tion, stimulate private investment, and programs of the Taiwan Railways privatization of state enterprises, which alleviate the government’s financial Administration and Chunghwa Post will deprive them of opportunities for burden. Advocates argued that the large have hardly gotten off the ground, ham- manipulation.” share of the economy occupied by rel- pered by complexities resulting from The government still retains a firm atively inefficient state enterprises had their enormous size, the public nature grip on many former state enterprises put a damper on the nation’s economic of their operations, and other thorny that have been privatized by virtue of development. Moreover, privatiza- problems. Even the plan to convert the government shareholding falling tion was seen as the only way for the the organizational structure of Taiwan beneath 50%. But in many cases the state-owned companies to survive the Railways from the current adminis- trative agency into a corporation has been postponed repeatedly, stymied by the staggering financial problem posed by its accumulated debt of more than NT$200 billion (about US$6.6 billion). In light of the various difficulties, in October 2017 the Executive Yuan ceased operations of its “Committee for the Promotion and Oversight of the Privatization of State Enterprises,” whose mission was to coordinate execution of the privatization programs and seek solutions to any problems. Since coming to power, the Tsai Ing-wen administration has appeared lukewarm about fostering privatization, a departure from its past stance as an opposition party when it viewed state enterprises as tools of the previous Kuomintang government, enabling the KMT to tap those companies’ huge resources to support party policies and Avionics functional testing underway at the Taichung facility of the Aerospace Industry Develop- interests. ment Corp., the most recent state enterprise to be privatized. Instead, the DPP now ﬁnds it conve- PHOTO: AIDC

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 29

state enterprise.indd 29 2018/11/5 下午1:18 BACKGROUNDER

The CSBC Corp, shipyard in Kaohsiung is expecting to keep busy with both military contracts and orders for support vessels for Taiwan's offshore wind-power initiative. PHOTO: CSBC

increasingly acute competition from can be accessed via TV, PC, and mobile 2006. Currently the company is gearing both domestic and foreign sources. phone. From a traditional telecom car- up to enter the realm of IoT and 5G The accompanying chart lists the rier, Chunghwa Telecom has become an mobile-communications service. enterprises that have been privatized integrated information and communica- Since privatization in 1996, China as a whole or in part and the year of tions service provider. Steel has been actively diversifying privatization. After privatization, Chunghwa its operations, turning itself into a Free from the shackles imposed on Telecom established an investment busi- sprawling business group with 26 sub- state enterprises – notably legislative ness division that has extended the sidiaries in the five major sectors of controls over budgets and personnel company’s reach into various emerging steel, engineering, industrial materials, policies – many of these companies sectors such as online music. It also logistics, and services. Its paid-in cap- have been prospering since privatiza- set up an internet data joint venture in ital is now NT$157.7 billion, compared tion. Chunghwa Telecom, for instance, Vietnam with Viettel, a leading Viet- with NT$72.6 billion upon privatiza- has been able to consolidate its leading namese telecom carrier. tion. Although the government’s stake position in the local telecom market, Chunghwa Telecom now has 38 has been reduced to just 21%, it still even including mobile communications subsidiaries that contributed over maintains control of the company’s where it faces strong competition. NT$40 billion in revenue in 2017, 11-seat board of directors, thanks to For its workforce of 22,000 compared with the mere NT$140 mil- cross shareholdings among affiliates of (streamlined from the 27,000 before lion from subsidiaries in 2005. With the group. It is currently taking a prom- privatization), Chunghwa Telecom the government still retaining a 35% inent role in Taiwan’s development of offers a bonus scheme, awarding those controlling stake, the company has offshore wind power. with good performance and strength- been a cash cow for government coffers AIDC, which several decades ago ening employees’ identification with as well as the investing public, having developed and built Taiwan’s Indigenous the company. It has also invested vig- issued nearly NT$500 billion in cash Defense Fighters (IDF), has carved out orously to stay abreast of the rapid dividends since 2005. a route for survival by making inroads developments in telecom technolo- In 2017, Chunghwa Telecom into the supply chains of major interna- gies. In 2014, it pioneered the rollout of reported NT$46.7 billion in net oper- tional aircraft makers – success that has 4G mobile-communications service in ating profits on consolidated revenue been attributed to its enhanced man- Taiwan. It also launched a digital-con- of NT$227.55 billion, a substantial agement flexibility post-privatization. vergence service platform, MOD, which increase from the NT$180 billion in Its third plant, in Kaohsiung’s Kang-

30 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

state enterprise.indd 30 2018/11/5 下午1:18 BACKGROUNDER

shan district, has become a production in 2020. The contract value is report- actively diversifying its operations in base for crankcases for the Trend-XWB edly NT$69 billion. recent years in order to make up for engine series for the Airbus A350, while To cope with the expanding business the loss of its monopoly of the salt another plant is dedicated to producing opportunities, AIDC has been investing market. The share of revenue from construction parts for the A350. heavily in new facilities and vigorously salt products has dropped to 50-60%, The company has signed long-term recruiting engineering talent. The com- while bottled water and biotech prod- contracts with General Electric and pany last year took in NT$1.75 billion ucts – sectors with a gross margin of Rolls-Royce to supply crankcases for in net profits on revenue of NT$27.54 about 50% – now each account for LEAP engines for use in new-generation billion, a record high. It has a backlog 20-25% of revenue. Boeing 737 MAX and Airbus A320neo of orders worth NT$180 billion over Taiyen annually sells 4-5 million aircraft. It has also started building 66 the next ﬁve years. cases of its bottled oceanic alkaline supersonic AJTs (advanced jet trainers), At Taiyen (the former Taiwan Salt), ionic water, the largest domestic bottled for the Taiwan air force, with the proto- where the government still owns 38% water brand, and 2.5 million bottles type scheduled to make its maiden ﬂight of the shares, the company has been of its “Yuchingsu,” a mainstay biotech

THE 39 PRIVATIZED STATE ENTERPRISES

Original Wholly or partially privatized Year of Wholly or partially privatized state Year of supervisory state enterprises privatization enterprises privatization agency

China Petrochemical Develop- Taiwan Agricultural and Industrial 1994 2003 ment Corp. Development

BES Engineering 1994 Taiwan Salt 2003

Ministry of China Steel 1995 Tang Eng Iron Works 2006 Economic Affairs Taiwan Fertilizer 1999 CSBC Corp. 2008 Chung Hsing Papermaking 2001 Aerospace Industrial Development 2014 Taiwan Machinery 2001 Chung Kuo Insurance 1994 Central Reinsurance 2002 Ministry of Finance Farmers Bank of China 1999 Taiwan Cooperative Bank 2005 Chiao Tung Bank 1999 Ministry of Yangming Marine Transport 1996 Taiwan Railway Freight 2003 Transportation and Communications Kuo-Kuang Motor Transportation 2001 Chunghwa Telecom 2005

Chang Hwa Commercial Bank 1998 Taiwan Fire and Marine Insurance 1998

Taiwan Provincial Huanan Commercial Bank 1998 Taiwan Navigation 1998 Government First Commercial Bank 1998 Taiwan Life Insurance 1998

Taiwan Business Bank 1998 Taiwan Land Development 1999 Liquefied Petroleum Gas Supply 1996 Veterans Pharmaceutical Factory 2005 Department “Business waste processing area” of Lungchi Veterans Gas Factory 1998 2006 Veterans Affairs Factory Council Gangshan Factory 1998 RSEA Engineering 2009

Foodstuff Factory 2003 Government Hsin Sheng Daily News 2000 Information Office Taipei City Bank of Taipei 1999 Print shop 2000

Kaohsiung City Bank of Kaohsiung 1999

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 31

state enterprise.indd 31 2018/11/5 下午1:18 BACKGROUNDER

product for weight control. In 2017 tization programs for both companies. of finance and chairman of the Bank the company earned NT$354 million The move was highly controver- of Taiwan, notes that government-run in after-tax net profits on NT$2.76 bil- sial. As the underwriter, Core Pacific banks still account for 60% of the local lion in revenue, with earnings per share arranged with major buyers of released financial market in terms of assets, put- (EPS) of NT$1.77. shares to back its bid for a majority of ting a damper on the nation’s financial Kaohsiung-based CSBC Corp. is seats on the boards of directors, and competitiveness. “Given the constraints counting on the offshore wind-power then allegedly utilized the two com- from multiple regulations, how can market to help it out of its dire financial panies as tools for stock speculation, those government-owned banks com- straits, a result of the downturn in the incurring heavy loss. Sheen Ching-jing, pete with privately owned banks?” asks global shipping market since 2015. The chairman of Core Pacific, was prose- Yang. He adds that “the government company is stressing its capabilities in cuted for forgery and violations of the still meddles heavily in the operation undersea foundation works, maritime securities law but was later acquitted. of those banks where the government’s engineering, building specialized ships Reversing a string of red ink from stake has dropped below 50%, without for the installation of offshore wind tur- 2012 to 2016, CPDC last year regis- oversight by the legislature.” bines, and the construction of offshore tered after-tax net profits of NT$3.55 As another reason why the gov- substations. billion on NT$33.33 billion in consol- ernment-run banks should be fully The offshore wind-power project idated revenue, with EPS of NT$2.55. privatized, C.V. Chen of Lee and envisioned by the government is esti- For its part, BES Engineering earned Li cites the recent scandal in which mated to entail total investments of NT$272 million in after-tax net profits Chingfu Shipbuilding received large some NT$720 billion, including mar- on NT$9.5 billion revenue in 2017, loans from government-run banks to itime engineering works valued at with EPS amounting to NT$0.17. finance a project – building six mine- around NT$144 billion. The project will The CPDC and BES cases aroused sweepers for the Taiwan navy) – that also need three fleets of 26 ships each, opposition to the privatization pro- it was unable to carry out. Chen notes costing some NT$20.8 billion per fleet. gram, equating it with favoritism that the nine banks providing the syn- Further relief for the company is toward conglomerates. The anti-priva- dicated loan for Chingfu were all coming from the government’s indige- tization sentiment was fueled further by government-controlled institutions. nous defense industry program. So far the “Second Financial Reform” that the “Such state-run banks should be ultra- this year, CSBC has been awarded con- then DPP government sought to carry discreet in evaluating the risks for loans tracts worth NT$17.8 billion from out between 2004 and 2008. Designed for policy-related projects, such as off- the Ministry of National Defense for to strengthen the competitiveness of the shore wind power,” notes Chen. He building warships. If the government’s nation’s financial industry, the program urges privatization of those banks “as plan to build such vessels domestically called for halving the number of gov- soon as possible,” under the conditions proceeds smoothly, the business scale ernment-owned financial institutions of “adequate risk assessment and super- could exceed NT$50 billion. An even from 12 to 6, leading to the formation vision.” bigger potential source of business is of three giant financial institutions with “Under government control, an the government’s plan to build eight over 10% market share each. enterprise cannot undergo transforma- submarines, which may cost NT$300 The program set off a frenzy of tion, due to the meddling of political billion. mergers and acquisitions that enabled forces,” says Lin Wen-yuan, chairman In recent years, however, the com- major private financial institutions to of Eastern Broadcasting and ex- pany – in which the government holds gain control over some government- chairman of Taipower and China Steel, a 33.6% stake – has been operating in run or government-owned financial and former vice chairman of the State- the red. Last year it suffered an after- institutions. CTBC Financial Holding owned Enterprise Commission under tax net loss of NT$58.8 billion on (formerly Chinatrust) emerged as a the Ministry of Economic Affairs. He NT$16.4 billion in revenue, following dominant player on the local financial says that at state enterprises, personnel an NT$1.3 billion deficit in 2016 on market, bringing China Develop- who start out as enthusiastic young revenue of NT$15.7 billion. ment Financial under its auspices. It employees “eventually become uniform attempted to do the same with Mega and submissive.” Poor performers Financial before the Ministry of Finance The privatization drive has sig- stepped in to block the move. nificantly reduced the role of state Business at the China Petrochem- Meanwhile, Taishin Finan- enterprise in the economy. In 1981 the ical Development Corp. (CPDC) and cial Holding became the controlling revenue of government-owned com- BES Engineering have also been in bad shareholder in Chang Hwa Bank by panies equaled 24.8% of Taiwan’s shape since their privatization in June acquiring a 22.5% stake, and Hua Nan GDP. Although that proportion has 1994 as part of the first batch of 19 Financial Holding came under the con- since dropped to 5%, at that level it is state enterprises to be sold off. Both trol of a private group, although the still certain that state enterprises will were taken over by Core Pacific Secu- government managed to retain a signifi- continue to be a major factor in the rities (itself later acquired by Yuanta cant stake. nation’s economic development for Securities), the underwriter of the priva- Yang Tze-jiang, former vice minister some time to come.

32 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

state enterprise.indd 32 2018/11/5 下午1:18 INDUSTRY F CUS

A Report on the Education Sector

Approaches to Learning

PHOTO: XUE XUE INSTITUTE TAIWAN BUSINESS TOPICS • NOVEMBER 2018 33

11 IF.indd 33 2018/11/5 下午1:19 INDUSTRY F CUS

FALLING POPULATION SQUEEZES TAIWAN’S UNIVERSITIES

BY MATTHEW FULCO

aiwan’s population is pro- close down or transform by merging jected to peak at 23.61 with other schools,” Minister of Edu- T million in 2021 and then cation Yeh Jiunn-rong told Taiwan begin to decrease. The fertility rate of Business TOPICS in an interview. an average of 1.17 children born to Mergers could allow schools to pool each woman is insufficient to main- resources, ultimately boosting their tain the present population level, competitiveness, he says. IN THIS REPORT never mind expand it. Government The cause of the oversupply of efforts to boost the fertility rate – universities dates to the early 1990s primarily in the form of childcare when Taiwan, still in the midst of subsidies – have yet to bear fruit. an economic boom, allowed tech- Even if the subsidies are increased, nical schools to upgrade their status • Falling Population Squeezes Taiwan’s there is no guarantee that Taiwanese to become universities. Officially, the Universities p34 will reproduce in greater numbers. goal was to nurture engineering talent The potential impact of a as Taiwan evolved into an IT manu- declining population on the nation’s facturing hub. education system is bound to be enor- “The government had a fiscal • Taking a Different Approach to Learning mous, particularly at the university surplus and there was a lot of pop- p36 level where there is already a large ular support for the policy – parents gap between supply and demand. wanted their kids to have higher edu- The Ministry of Education (MOE) cation opportunities that they never estimates that the number of col- had,” says Lu Hsin-chang, an associate • A Growing Need for Continuing Education lege students will decline by 40% to professor of international business at p39 reach 723,000 by 2028. The reduced National Taiwan University. number of applicants will affect all Unfortunately, expansion out- universities, but the weakest schools stripped demand, with the number are expected to be hit hardest. of universities increasing more than In the 2017-18 academic year, 198 fivefold in less than 30 years. Amid • The Intersection of Adult Education and Social Work p41 university and college departments the supply glut, students with poor failed to recruit any students at all, entrance examination scores were per- an increase from 151 the previous mitted to enroll. The overall university year, according to an MOE report last acceptance rate jumped from 49% of December. Some schools had shock- applicants in 1996 to 96% in 2006 • Living through Language p42 ingly low new enrollment rates. The and has not fallen significantly since. incoming class at Hualien’s Taiwan “The government didn’t worry Hospitality and Tourism University about future demand, even though the has filled less than 30% of the avail- falling birthrate was already evident,” able places, while the comparable says Darson Chiu, an economist at figure at Tainan’s Nan Jeon Univer- the Taiwan Institute of Economic sity of Science and Technology was Research (TIER). “Now that every- only slightly better at roughly 32%. body gets in, the overall quality of “Some universities may have to university education has declined.”

34 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

11 IF.indd 34 2018/11/5 下午1:19 A Report on the Education Sector

For faculty members, it has become at the ballot box.” never attended a single class. difficult to find full-time positions. In March 2015, the Ma Ying-jeou Further, “foreign workers masquer- Given declining enrollment, “schools are administration announced that it would ading as students and students with not sure they can afford full-time fac- encourage public universities to merge special needs are two disadvantaged ulty,” he says. while allowing private universities to groups used by private universities to If student enrollment keeps falling, decide their own future. The exception help boost their enrollment numbers and Chiu says, more Taiwanese professors would be in cases when universities failed get their hands on scholarship funding may relocate to China, where they are to meet minimum standards set by the and subsidies,” alleges a September 2017 likely to enjoy better compensation and MOE. Under the plan, the government opinion piece in the Taipei Times by Fu career opportunities. As part of its “1000 estimated that 8 to 12 of Taiwan’s 51 Jen Catholic University sociology pro- Talents” program aimed at upgrading public universities and 20 to 40 of its 101 fessor Tai Po-fen. China’s technology expertise, Beijing private universities would be merged or The article also alleges that a man- reportedly has already recruited 33 aca- shut down by 2023. agement school in southern Taiwan demics and other experts from Taiwan. Since then, three schools – all public “symbolically enrolls 150 students each The initiative is known for offering gen- universities in Kaohsiung – have merged. year.” That school reportedly aims to erous packages to participants. There have been no significant closures. transform itself into a corporate training Better compensation could well lure Yet there have been scandals. In academy, but continues to receive subsi- young Taiwanese academics across the 2016, the Tainan District Prosecutors’ dies available to educational institutions. Strait, particularly those who have yet Office indicted Huang Tsung-liang, Noting that “some abnormalities” to establish themselves in the island’s then dean of the Nan Jeon University with regard to enrollment in Taiwan’s research community. But the significant of Science and Technology, for alleg- university system, Minister Yeh says that structural problems in the Taiwanese edly selling fake academic degrees from the MOE has set up a system to regulate economy mean that salaries are likely to Costa Rica’s University of Empresarial – underperforming schools each aca- remain stagnant for some time to come. not the most obvious choice for a phony demic year. Schools at high risk, based on At the same time, increasing num- diploma. Huang sold doctoral degrees enrollment and other risk indicators, are bers of Taiwanese are choosing to study for NT$700,000 and master’s degrees for put on a watch list. If a school remains in universities in China, attracted by NT$400,000, prosecutors said. He also on the watch list two years in a row, the the potential job prospects in its huge offered research papers to instructors for government will “sternly request the market following graduation. From 2014 NT$150,000 to NT$550,000, claiming school improve and return to a normal to 2016, about 10,000 Taiwanese were the papers would boost their prospects state of operation,” he says. enrolled in Chinese universities. Last year, for promotion. Given Taiwan’s stagnant population that figure rose to almost 12,000. In 2017, Taiwanese media revealed growth, only an influx of foreign students The MOE has emphasized that that Kaohsiung’s Fortune Institute of can prevent university enrollment from Taiwan does not recognize diplomas Technology in Kaohsiung and Changhua cratering. The Ma Ying-jeou administra- from about 30% of Chinese universi- County’s Chung Chou University of Sci- tion initially looked to China for foreign ties. Any Taiwanese students who plan to ence and Technology enrolled more than students. In 2007, a year before Ma took study at a Chinese university are advised 100 middle-aged Aborigines to inflate office, roughly 800 Chinese students to make sure that Taiwan recognizes enrollment numbers. The media dubbed were attending Taiwanese universities. By diplomas from that school, the MOE them “phantom students” since they 2015-16, at the end of Ma’s second term, says. Otherwise, the Taiwanese students could find themselves in a difficult situation upon returning to Taiwan and looking for work.

Academic integrity

The government has long been aware of the pressures on Taiwan’s university system, but has exercised caution in its handling of the ailing schools. Clo- sures would be contentious, putting teachers out of work and forcing students to change schools. “No politician [in Taiwan] wants to take responsibility for shutting down scores of universities,” says Yang Lian-fu, a historian who has written extensively about Taiwanese society. “They’re afraid it will hurt them

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 35

11 IF.indd 35 2018/11/5 下午1:19 INDUSTRY F CUS there were over 34,000. na’s best students. “Some come to study Now a permanent resident of Taiwan, Since then, Chinese student num- in Taiwan because they can’t get into a Do works as a process integration engi- bers have not grown significantly. good school in mainland China,” he says. neer at the Taiwan branch of Garmin Beijing has likely sought to limit educa- Under the Tsai Ing-wen administra- International, an American GPS tech- tional exchanges with Taiwan as part tion’s New Southbound Policy, Taiwan nology company. of a concerted campaign to pressure the is increasingly turning its attention to Meanwhile, as it accelerates the New pro-independence ruling Democratic Pro- students from Southeast Asia. Roughly Southbound Policy, the Tsai administra- gressive Party (DPP), analysts say. The 38,000 of the nearly 118,000 internation aims to bring 58,000 students from DPP has irked Beijing by rejecting the idea tional students enrolled at Taiwanese ASEAN countries to Taiwanese univer- that Taiwan and the Chinese mainland are universities last year were from ASEAN sities by 2019. To help accomplish that part of the same whole: “One China.” countries, up from 28,000 in 2016, objective, it will increase scholarships. As a result of the current political sit- according to the Ministry of Education. The push to attract Southeast Asian uation, “the number of students from Andy Do, a Vietnamese national, students to Taiwan actually began during China is not predictable,” says Yeh. decided to study in Taiwan instead of the Ma Ying-jeou presidency. From 2008 As to quality, in some circles the Chi- South Korea. While both countries excel to 2015, their numbers surged almost nese students have a reputation for in tech hardware manufacturing, Do 125%, from just under 12,000 to almost academic excellence, notes TIER’s Chiu. chose Taiwan because he was offered a 27,000. He recalls a recent visit to Providence full scholarship and living stipend. He “The Ma administration was interested University in Taichung. At the lecture he went on to earn a Master of Computer in Southeast Asian students, but just to fill attended, two Chinese students were the Science degree from Dayeh University in spaces at our universities,” says Alan Hao only ones who asked the speaker ques- Changhua. Yang, executive director of the Taiwan- tions. “They asked intelligent questions He lauds the program and its faculty. Asia Exchange Foundation and the Center – they seemed eager to learn,” he says. “The professors have good qualifica- for Southeast Asian Studies at National “Local students appeared less engaged.” tions; many have experience in the U.S.,” Chengchi University. “The Tsai adminis- However, historian Yang notes that he says. “They provided us with many tration sees them as vital in strengthening Taiwan has not necessarily attracted Chi- opportunities to do hands-on projects.” Taiwan’s links to Southeast Asia.”

TAKING A DIFFERENT APPROACH TO LEARNING

Taiwan’s experimental schools seek to develop highly motivated students who can think for themselves.

BY KATHY CHEN

unchtime is approaching and cook,” he says. Although Taiwan’s first alternative 18-year-old Tsai Jia-hao and It’s all in a day’s classes at Taiwan’s school was set up in 1990, the gov- L his classmates are cooking sea- Xue Xue Institute. Xue Xue isn’t a culi- ernment didn’t codify its policy on food noodles in the sleek, open kitchen. nary institution, though, but rather an experimental and home schools until 2014 Jia-hao expertly tosses the pasta in the experimental school where teachers use when the Enforcement Act for School- pan, while other students chop cabbage cooking as a way to help students get based Experimental Education and two and carrots for stir-fry. Their teacher in touch with their senses. It is also one related laws were passed. An amendment looks on, finishing off the noodles with a of several dozen alternative schools that last year paved the way for experimental sprinkle of Thai basil. have opened on the island in recent years, education initiatives to be expanded from Jia-hao, a lanky kid in T-shirt and as educators and parents seek to engage K-12 to include higher education. baseball cap, slides the noodles into a the younger generation in learning that The number of students engaged in serving bowl, and his classmates gather will prepare them for the 21st century experimental learning has surged since around to serve themselves. “I love to workplace. then, with more than 12,000 either

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enrolled in 62 experimental schools or being home schooled in 2017, says Nicole Lee, director general of the higher education department at Taiwan’s Ministry of Education. In 2015, just 5,300 such students were enrolled in 11 schools or being home schooled. Still, the current numbers account for a mere sliver of Taiwan’s 4.5 million students and 10,000-plus schools, though Lee predicts that the numbers will continue to rise. “The world will lose a lot of jobs to artificial intelligence in the future, so teachers must change what they teach,” she says. “Education must provide an innovative environment for kids to develop their talents.” The growing popularity of experimental schools comes amid broader A class session underway at the experimental Xue Xue institute.

changes to Taiwan’s educational system, PHOTO: XUE XUE INSTITUTE including reforms to the curriculum and to the admissions process. Some traditional schools are adapting strategies Microsoft, and IBM. Multinational com- entrance exams. But even as some insti- pioneered by experimental schools, and panies such as these see an opportunity tutions have started to weigh written companies are working with educators to to leverage Taiwan’s central role in the responses and other criteria for admis- introduce innovative programs. global supply chain and its highly edu- sions, “everyone still feels changes are Policymakers around the world are cated workforce to turn Taiwan into a too slow and the education system is too grappling with how to tailor education digital hub for the new economy. restrictive, especially with the increasing systems to equip students with relevant But some feel the workforce isn’t ade- digitalization of the world,” says Cheng skills in a world being transformed by AI quately prepared. As part of its 2017 Tung-liao, an associate professor of edu- and automation. McKinsey Global Insti- Business Climate Survey, the Amer- cation at National Chengchi University. tute says in a 2017 report that 15% to ican Chamber of Commerce in Taipei As a result of the continued focus on 30% of work globally could be auto- asked hundreds of executives to assess testing, he says, “students enter college mated by 2030, potentially displacing the quality of human capital in Taiwan. without a proactive interest in learning or 400 million to 800 million individuals. Taiwan workers received top scores for any idea of what their life goal is.” In another 2017 report, Accenture pre- being hardworking, trustworthy, and That’s one reason Lilin Hsu estab- dicts that 65% of children starting school well educated, but were rated far lower lished Xue Xue Institute. Opened in the today will hold jobs that don’t yet exist. for showing initiative, innovation, and fall of 2017, the high school has 73 stu- Educators agree that such seismic creativity. dents, more than double last year’s 31, shifts will demand different skill sets, “This will affect how Taiwan remains and specializes in art and design. Stu- including the “Four Cs”: critical thinking, competitive,” says AmCham Taipei dents must also take classes in basic communication, collaboration, and cre- Chairman Albert Chang, who is also subjects such as Chinese literature and ativity. Other desirable traits include an managing partner of the Taiwan office of English, but instead of math, the school ability to adapt to change, digital fluency, McKinsey & Co., the global consulting offers more practical accounting and and the capability to work across cultures company. “Singapore, Korea, and Japan finance classes. in a globalized world. are doing massive pushes to prepare busi- “We want students to explore dif- Such a skilled workforce is crit- ness, students, and labor for this new ferent fields in creative and culture ical to President Tsai Ing-wen’s goal to economy. For Taiwan, the challenge is to industries so eventually they can work in revive Taiwan’s lagging economy and connect education to build these capabili- multiple sectors,” says Hsu, who serves reduce its economic reliance on China by ties in companies.” as the school’s president. In addition, a focusing on “5+2” innovative industries. background in art gives students “the These include five pillar industries – the Less focus on testing flexibility to adapt to different situations Internet of Things, biomedicine, green and to discover new things.” energy, smart machinery, and defense Since the 1990s, Taiwan has sought She adds that worker creativity will be – plus high-value agriculture and the cir- to move away from a “stuffing the duck” critical for Taiwan’s economy, which is cular economy. approach to teaching, which emphasizes now dominated by OEM or ODM con- The island recently has attracted memorization of facts, especially those tract manufacturing, but faces increasing new investment projects from Google, needed to pass the all-important college competition from China.

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11 IF.indd 37 2018/11/5 下午1:19 INDUSTRY F CUS Xue Xue’s curriculum includes of thinking and analysis, and that she’s quarter, the theme is storytelling, with the daily cooking sessions, which Hsu says not afraid to express her views.” kids studying an abridged version of the stimulates the senses and promotes “syn- Heping Experimental Elementary Chinese classic Journey to the West. esthesia,” such as when a pianist recalls School Taipei, an alternative school which One group gathers in a circle on the a certain painting to capture a mood to also opened last autumn, was flooded floor around teacher Yu Hsiu-wen, who inspire his playing. Similarly, in a class with 356 lottery applications for 23 slots sits on a stool at kid-level. The students on garment making “we will let students for the first-grade class, says Principal rehearse a song they will perform for taste sour, sweet, and spicy, and then Huang Chih-shun. (The other 35 first- a year-end show, then take turns sum- draw and pick their colors.” graders are from the school district; as a marizing the reading. Most classmates Other courses aim to nurture creative public school, it is required to take 60% listen quietly, but a few boys start fooling thinking and a sense of global citizen- of its students from the district.) around. Yu quietly walks over and taps ship. In the class that Ann Liao teaches It’s immediately clear to a visitor them on the head, but she lets one rest- on the circular economy and fashion, why the school is so popular. Behind less, bespectacled boy alone because, she students are working on creating a brand the building’s tan façade lie bright, open explains later, “he’s listening – he’s not that represents a circular system and classrooms and plenty of green space. affecting the other kids.” decreases waste. Students sit or lie on the blond wood “I like this school,” the boy, seven- “The class is a combination of social floor during class. Those who have fin- year-old Jian Jie, says afterwards during science, design, and branding,” she ished their assignments are let loose to the daily, half-hour free time. says, as she walks among rows of teens work in the school garden. “Because we learn ourselves,” a class- working on laptops. “Students need to “Our core value is self-regulated mate chimes in. figure out what they really care about learning,” says Huang. “In Taiwan, “And there are no tests,” another and then use their talent to expand on adults say do this, and kids do it. We girl says, adding: “My friend [at another their idea.” Final grades will be based on want to change that.” Clocks are scat- school] says she has to study so much she factors such as class participation and tered around the school, so students take wants to cry.” unique execution. responsibility to get to class on time, Rather than teach through repeti- Sixteen-year-old Ian Shao envisions instead of relying on bells. tive drilling or rote memorization, the a chain of pop-up shops called “The As an experimental school, Heping teachers incorporate basic learning into Props,” which would rent light wands has broad leeway in hiring teachers and the theme course. Chinese characters and other paraphernalia to concertgoers, designing its curriculum and learning from Journey to the West decorate the so they wouldn’t have to buy them only materials. Teachers work in teams, with walls and cabinets, and the class plays to throw them away. flexibility to tailor classes, which are word games to help students remember “What apps will you use to target dif- focused on theme- and problem-based them. The children also use the characters ferent audiences?” Liao asks the students. learning. when they jot daily journal entries about “At my old school, questions have “Education must be applied to the their reading. Homework is to read these a fixed response,” Ian says. “Here, you daily and the practical,” Huang says. entries to their parents. have to come up with your own answer.” “What do you observe? How can you be The course culminates in a final What he also likes about Xue Xue is that a learner and a doer based on what you project of the student’s choosing: put- unlike his old school, where he says the see? We hope students can eventually use ting on a play, creating a board game, or homework load often meant getting four what they learn, not just apply it to tests.” writing their own storybook based on the hours of sleep a night, “there’s not a lot Chinese classic. After lunch, some first- of homework here – mostly thinking.” A different culture graders head to drama class to work on Many Taiwanese families have their play. They watch a video of a Jap- only one child, so parents tend to con- To that end, teachers don’t give a lot of anese school’s rendition of the story, sider their children’s happiness, not just exams, and report cards list learning goals pausing every few minutes to analyze whether they can get into a good col- with space for both teacher and student the performance as a way to inform and lege or make more money. “Experimental to reflect on how the student performed potentially improve their own acting. education puts the focus on the child,” and how he or she can move forward. Other students stay in the class- says Cheng, the education professor. “It “Teachers don’t act like adults teaching room to work on board games, which preserves their natural-born curiosity and children, but as a more-experienced the teachers hope will be relevant to the creativity, their most authentic quality, person working with a child to inquire story. But instead of directing the stu- and develops it.” and explore,” Huang says. “This is very dents what to do, the teachers pass out an Mary Teng says her 17-year-old different from traditional culture.” exercise sheet asking the kids to list the daughter Erin chafed at the rules, home- On one recent morning, Heping’s characters, setting, and most important work load, and competition at her first graders flocked inside after first- developments in the plot – “to help them former high school, but has thrived period gym class. Wheeled cabinets and focus their games,” one says. at Xue Xue. “The classes here let you desks divide the spacious room into cozy Heping’s innovative approach has explore different views,” says Teng. spaces, where three teachers split up attracted considerable media attention, as “After a year, I feel she has her own way teaching the 58 students. For the fourth well as observers from local schools and

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those in the United States, Europe, and quality and automatically turns on an air experimental education, the approach elsewhere in Asia, Huang says. “We can purifier as needed. isn’t for everyone. Some parents worry serve as a model for private schools and “Maker education, STEM, design that such schools don’t give their children traditional schools.” thinking, and computerization are all our enough homework or a rigorous enough Taipei Rixin Elementary School, focus,” Lin says, as he proudly shows education. Another concern is the paucity which has made “maker education” a off models and the numerous awards of similar options at the high school and core part of the curriculum, is helping they have garnered. “Maker education college levels, raising questions about the teachers from other schools learn about teaches students the practical use of these future path for students attending experi- the program. Maker education promotes skills and how to create with their hands. mental lower schools. problem- and project-based learning These are all things our students will need Over winter break in 2017, five through a hands-on, collaborative in the 21st century workplace, and we families withdrew their children from approach, and is closely associated with hope they will take these skills away with Heping Experimental Elementary STEM (science, technology, engineering, them when they graduate.” School. Principal Huang puts it this and mathematics) education. Companies such as MediaTek Inc. way: “We sell beef noodle soup, another Besides holding workshops and school are getting involved in the promotion of school sells pork chop rice, and both tours for students and teachers from maker education and other initiatives to are good and nutritious. But the parents other schools, Taipei Rixin is training revamp Taiwan’s education system, with worried that beef noodle soup wouldn’t some of its own teachers so that they, in an eye on developing the island’s future nourish their kids.” turn, will be able to train other teachers, workforce. Cynthia Feng, MediaTek’s The cost of private schools can says Principal Ethan Lin. “Taiwan wants executive secretary, says the fabless semi- also prove a barrier. Annual tuition to be a leader in high-tech, so having a conductor company based in Hsinchu at Xue Xue Institute totals more than talented workforce is crucial.” aims to work with four cities each year NT$230,000 (about US$7,460) after Taipei Rixin is a regular public school, to train teachers on how to use this accounting for government subsidies, with the exception that students take approach. “Maker education strengthens an amount similar to the yearly cost of 24 maker-education classes each year, people’s ability to discover and identify attending a top Taiwan university. starting in kindergarten. The school problems and come up with solutions,” But for Xue Xue student Tsai Jia-hao, receives annual subsidies from Taipei she says. the school’s attraction is clear: “At my City’s education department and the MediaTek is also in talks with edu- old high school, I hated to read or learn Ministry of Education to fund the pro- cators to help design information something just to pass a test. I want to gram and to pay for the 3-D printers, technology training programs as part of learn things that I want to learn, and not laser cutters, and computers that line the Ministry of Education’s guidelines just for a grade.” four workshops. Here the students learn for Taiwan’s new curriculum, which will After graduating with a focus on pho- everything from woodworking to coding make IT classes mandatory. tography at Xue Xue this past summer, for OSMO games, Dash robotics devices, Under McKinsey’s Emerging Scholars Jia-hao is taking a gap year to intern at and the Scratch programming language, Program, partners at the firm mentor the school before going to college. Even- to the construction of remote-controlled graduate students, helping them to apply tually, he expects to work for his family’s cars and robots. what they learn at school to business tea company. Whatever he ends up Lin’s office is filled with some of challenges. “We work with them on cases doing, he says, Xue Xue “has made me these student projects, including a wood- like Taiwan’s aging population and low more sensitive, made me better at ana- carved mini car that moves by harnessing fertility rate, and ask them what is a busi- lyzing, and helped me develop my own a rubber band, and a controller designed ness solution,” says Albert Chang. opinions. All of that should help me in by a student with allergies that gauges air Even as demand grows in Taiwan for the job market.”

magine taking a class about a sub- A GROWING NEED FOR ject you always wanted to explore I without the stressful checkpoints of CONTINUING EDUCATION homework, exams, or grade point aver- ages. Instead of pursuing a degree, you are deepening and sharpening your In developed, knowledge-based economies, wisdom. Instead of gearing your studies the benefits of a “learning society” take on towards the whims of the job market, you are following sparks of nascent curiosity. added importance. Perhaps you are a professional musician toying with the idea of starting your own BY WUJUN KE business, or maybe a strategic consultant

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11 IF.indd 39 2018/11/5 下午1:19 INDUSTRY F CUS with a passion for Tang poetry. sutras to their everyday lives. says. “We’ll go out to eat and chat, and As the concept of lifelong learning “When I teach the Yogacara school they’ll ask me for advice.” takes root in Taiwan, personal and of Buddhism, I teach students how to Because coming to class is not an intellectual enrichment is becoming analyze their mind’s structure and inten- obligation, in Chao’s experience adult increasingly central to the lives of tions,” he explains. “This way, we can learners are also more likely to under- working professionals. While education look at the genesis of our emotions. We stand the value of knowledge. He points is compulsory for the young and usually can decrease feelings of depression and to the SPECS marketing booklet, which accompanied by parental supervision, anger. It’s not therapy; but it is under- bears the cheerful title Happiness is Just adult education emphasizes individual standing how the self is constituted.” Around the Corner. The essays inside responsibility. Going to museums, taking Because most of his adult students are spotlight SPECS alumni who have accu- online classes, participating in work- not interested in becoming specialists, mulated reams of accomplishments. Each shops, or simply reading the news Chao says he tries to design a curriculum responded to the question, “What is hap- are all avenues of lifelong learning, that they will find practical and useful. piness?” with a Post-It note containing which Taiwanese educators and poli- He tends to include plenty of examples handwritten answers such as “Attaining cymakers believe will result in greater in his lectures so that students know how a deeper understanding of the self,” civic participation and collective social to apply what they’re learning. Such an “Feeling like you’ve lived a meaningful advancement. approach produces tangible results. One life,” “Sharing wisdom and joy,” and Beyond offering degrees in business, of his students told him that he used to “Doing what you love.” management, and law, National Taiwan get into petty arguments with his col- Although the specific answers differ, University’s School of Professional Edu- leagues at work, but after taking his the narratives share an understanding cation and Continuing Studies (SPECS) class, he became capable of mentally dis- that happiness involves the pursuit of provides classes appealing to adult tancing himself from negative moods and self-realization. Tucked into the crevices learners who wish to cultivate non-career- situations. between successful careers and supportive related skills. These include courses on Chao says that he enjoys teaching families, continuing education seems to Buddhist sutras, Chinese literature, Chi- Continuing Education classes because he occupy a small but significant space in nese Traditional Medicine, chocolate- can build closer relationships with adult how interviewees view living a mean- making, and wine-tasting. learners, many of whom are nearer to ingful life. Chao Fei-peng, a professor of Chi- him in age than college students. Some of nese literature at NTU, says the difference his students have dutifully enrolled in his Multiple benefits between teaching college students and courses for the past seven years, and may SPECS classes is the latter’s emphasis on linger after class, whereas college students Adult education serves many pur- applicability. While university students are typically out the door as soon as the poses, including vocational training, may learn about Buddhist scriptures as two hours are over. remedial training, and personal enrich- an academic pursuit, Chao teaches his “During class, I play the teacher’s role, ment. As developing countries make the adult students not only scholarly exegeses but after class is over, the [adult] students transition from manufacturing to ser- but also how to apply the wisdom of the will regard me as their friend,” Chao vice and knowledge-based economies, employers’ demand for skilled workers grows correspondingly. Increased leisure time and disposable income also heighten demand for continuing education. In 1972, UNESCO (the United Nations Educational, Scientific and Cul- tural Organization) began to promote the concept of a “learning society” to prepare nations for the challenges of globaliza- tion, aging populations, and information technology. Continuing education has been demonstrated to benefit not only the individual but also the broader society. Policy- makers have promoted lifelong learning to reduce unequal access to educational opportunities during childhood that may result in intellectual, social, and economic disparities. According to UNESCO’s 2009 conference on Adult Education, A man tells his life story through art as a part of the tour-guide classes offered by the Dream adult education participation rates corre- City Building Association. late positively with a country’s per capita PHOTO: DREAM CITY BUILDING ASSOCIATION

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GDP. Each additional year of adult edu- have fulltime work and family obligations. is its focus on active aging, which seeks cation per person brings about a 3.7% Because of advanced medical knowl- to mobilize senior citizens to volunteer increase in long-term economic growth edge and greater longevity, governments and give back to society. The AALC pro- and a 6% increase in per capita income. also must confront the challenges posed gram has significantly increased the rate In 2002, Taiwan’s Executive Yuan by a growing elderly population. As of of participation in adult education, espe- implemented the Lifelong Learning Act, March this year, 14.05% of Taiwan’s cially for older adults. A national survey which underscores the importance of total population was over the age of 65, of adult education showed that the par- formal and informal learning beyond meaning that one in seven in Taiwan is a ticipation rate of citizens over 65 nearly compulsory education. In 2010, the Min- senior citizen. By 2025, it is projected that doubled from 11.4% in the AALC inau- istry of Education (MOE) sought to the elderly will constitute 20.1% of the gural year of 2008 to 22.64% in 2014. promote lifelong learning through its total population, creating what demogra- Any experience, however episodic 3-3-1 Initiative, encouraging citizens phers call a “hyper-aged society.” or sporadic, can contribute to lifelong to exercise at least 30 minutes a day, Starting in 2008, the MOE began learning, and anyone who has the time, study for 30 minutes a day, and perform addressing the educational needs of resources, energy, and motivation can one good deed a day. To raise Taiwan’s elderly populations by establishing become a lifelong learner. As opposed to overall educational attainment, the MOE Active Aging Learning Centers (AALC). the conventional association of learning has offered subsidies to community col- The number of centers has grown from with classrooms, the lifelong learner is – leges, local governments, non-profit 104 in 2008 to 363 in 2017. These cen- to quote a 1999 report in The Economist organizations, Active Aging Learning ters serve people over 55 years old, – “an intelligent agent with the potential Centers, and open universities. providing a variety of courses on topics to learn from any and all of her encoun- Two open universities currently such as mobile phone usage, exercise, ters with the world around her.” operate in Taiwan, the National Open health maintenance, and intergenera- Whether as a tool for changing one’s University and the Open University of tional relations. livelihood or a method for building com- Kaohsiung. Open universities offer dis- According to Tsai Hsiu-mei, a pro- munity, the pursuit of knowledge as a tance learning, do not require entrance fessor of adult and continuing education lifelong commitment will always bring exams, and do not impose time limits on at National Chung Cheng University, the welcome new perspectives into one’s life. the completion of coursework, making biggest difference between AALCs and Tired of your 9 to 5? Maybe it’s time to them an attractive option for those who other institutions serving senior citizens go back to school.

community colleges in the United States. Rather than providing vocational training or functioning as stepping stones to four-year universities, Taiwanese community colleges primarily THE INTERSECTION aim to promote community development and foster interest in public affairs. These colleges provide participatory education premised on OF ADULT EDUCATION the belief that political action should not be limited to voting for elected officials. These institutions seek to help train their stu- AND SOCIAL WORK dents in how to participate in dialogue with fellow citizens, and expect the faculty members to learn to foster democratic debate. In practice, however, Xu sees this community ethos as less common than desired. “We have to admit that in Taiwan’s com- ome critics have expressed reservations about the indi- munity colleges, two out of three are more like continuing vidualized, market-oriented nature of lifelong learning education programs in that the emphasis is on leisure and enter- S and wonder if it might even exacerbate existing inequali- tainment,” he says. “But we all want more of the former kind.” ties. Among scholars, there has been concern that disadvantaged According to its website, NTNU’s Department of Adult and groups, such as women and low-income populations, may Continuing Education aims to cultivate students with a “human- face greater difficulty than others in accessing opportunities to itarian spirit,” training them to value “social responsibility” and engage in adult education. “cultural perspectivism.” Aligned with this aim is advocacy for Xu Minxiong, Director of National Taiwan Normal Univer- migrant laborers, aboriginal peoples, immigrant spouses, and sity’s Adult Education Research Center, has been working to other underprivileged groups. address some of these inequalities through his non-profit Dream “At NTNU, adult education is an avenue of expression for City Building Association. Xu came to the field of adult educa- social work,” says Xu. “But we’re trying to be different from tion through a career in social work, which in Taiwan is closely welfare systems, which treat people as clients to be served.” associated with community colleges and social education. Xu explains that he finds working in adult education Community colleges in Taiwan function differently from rewarding because it avoids the stigma often associated with

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 41

11 IF.indd 41 2018/11/5 下午1:19 INDUSTRY F CUS social work. While those who seek counseling may be stigma- cleaner, friendlier, and more conscientious about his personal tized as weak or mentally ill, there is no shame attached to those appearance, behavioral changes that Xu attributes to his new who pursue continuing education. Because the latter focuses social role as a student. on self-directed learning rather than therapy, it also encourages Although only four of fifteen homeless students stayed for people to adopt proactive attitudes towards improving their lives. the entire course and just three became employed as tour guides, Furthermore, social education aims to disrupt the idea that Xu explains that what matters more than the results is the learning occurs only through what Brazilian educator Paolo learning process. Civic literacy involves learning how to partic- Friere calls the “banking” model of education. While formal ipate in discussions and reaching decisions collectively, so the education typically involves teachers lecturing to the class in discussion process is more important than the outcome. a paternalistic, top-down approach, social education involves Because such seminars can be arduous, filled with conflicts teachers and students learning from one another through and differences of opinion, the attrition rate is high. “Most exchanging ideas. Ideally, teachers respect and seek to cultivate people don’t like it, but a minority of people stay,” Xu observes. their students’ autonomy. “They know it’s difficult but stay anyway because they think it’s Xu’s Dream City Building Association, which collaborates worthwhile.” with Wanhua Community College as well as local businesses, An added layer of difficulty comes from the emotional vul- stems from a commitment to grassroots education. Inspired by nerability required to build the kind of relationships that makes the Unseen Tours project in London, the organization trains honest dialogue possible. Because the homeless participants of homeless people to become tour guides in Taipei’s historic the Dream City Building Association are used to being excluded Wanhua District. and looked down on by society at large, they find it difficult to The tour-guide classes are divided into two stages. Initially, trust other people. homeless participants are led on tours by local tour guides and Xu encourages teachers and volunteers to first share their encouraged to converse with their teachers. Next, they narrate fears and failures to make the participants feel comfortable. Then their life stories using music, art, and storytelling, and with the once they begin to lower their guards and share their feelings, the help of volunteers they arrange their storylines into a script for volunteers must dedicate themselves to listening. Through this use during tours. Besides tour-guide training, the non-profit also demanding process, all parties learn to compassionately commu- trains volunteers to run carpentry, art, and music classes. nicate with those with different backgrounds and opinions. Xu says he is heartened by visible markers of progress. In music class, he noticed that a participant gradually became — By Wujun Ke

LIVING THROUGH LANGUAGE

The government is making a strong effort to preserve Taiwan’s endangered languages so as to maintain a multicultural society.

BY BENJAMIN PARKER

aiwan has long been a place of in decline despite government revitaliza- present-day aborignal groups are believed linguistic diversity. Besides the tion campaigns begun in the 1990s. Over to have come to the island from the Asian T Chinese languages of Mandarin, the past few years, the authorities have mainland starting about 5,000 years ago. Hokkien (Taiwanese), and Hakka, the redoubled efforts, including programs The first Chinese-speaking settlers were various indigenous tribes have each had that are part of the public education mainly from Guangdong and Fujian, the their own version of an Austronesian lan- system, to prevent the disappearance of provinces closest to Taiwan, through guage, and many senior citizens are still endangered languages. waves of immigration beginning in the fluent in Japanese due to Japan’s previous Although evidence of a human pres- 17th century. Neither the Dutch nor the colonial rule over the island. ence in Taiwan dates back 20,000 Spanish, who both sought to colonize Today many of Taiwan’s languages are to 30,000 years, the ancestors of the Taiwan in the 1600s, left any lasting lin-

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guistic impession. Over the next several centuries, immigrants from China continued to pour in, establishing Hokkien, the southern Fukien dialect (Minnan yu), as the main language in Taiwan. After the Qing Dynasty’s defeat in the 1895 Sino-Japanese War led to Taiwan’s cessation to Japan, strict language policies were imposed on the colony. Use of Taiwanese language in the press was banned, and Japanese generally replaced Taiwanese as the language of instruction in the schools. The controls were a source of resent- ment and occasional pushback. For example, troupes putting on local forms of entertainment such as puppet shows would often begin the performance in Japanese for the benefit of the local authorities, and then slip into Taiwanese once the Japanese censors had left. The end of World War II in 1945 The children of immigrant mothers at a Vietnamese language class in their middle school. brought the departure of the Japanese PHOTO: CNA presence and Taiwan’s return to the Republic of China. After losing a civil war to the Communists in 1949, the trast, 96% of all children aged six to 14 in cance, as becomes evident during election ROC government under Chiang Kai-shek Taiwan speak Mandarin at home. season. For example, Presidents Ma Ying- and his Nationalist Party (Kuomintang) Even those children who hear Tai- Jeou and Tsai Ing-wen, neither of whom is retreated from the mainland to Taiwan. wanese or other languages at home often a native speaker of Taiwanese, have both By most accounts, Taiwan’s local lan- learn them incompletely, preferring to made great efforts to speak in Hokkien guages fared little better under the new communicate in Mandarin. When they when campaigning. In Taiwan’s political administration than under the Japanese. in turn have children, the non-Mandarin landscape, it is vital to show oneself to be Mandarin was made the official lan- language is unlikely to be passed on to a member of the community. guage and language of instruction. Again, the next generation. The first attempts to preserve language other languages were banned from public The rapid aging of the population diversity in Taiwan followed the ending broadcast or restricted in their use. serves to exacerbate the issue. Says Liu of martial law in 1987. “In school, people “In school, if you spoke in dialect or Yue-lan, a Hakka woman who runs a could study their own language,” Lo says an indigenous language, you would be convenience store in the Hakka Cultural of the programs that were introduced in punished,” Lo Mei-ching, senior execu- Park in Taipei: “The young people move the 1990s. “If you were Amis, you would tive officer in the government’s Council to the north, to the big cities. In the vil- have an Amis teacher to teach the Amis of Indigenous Peoples, says of the Chiang lages, it’s all older people, and when we language. But you’d only have one hour era. “We couldn’t use our own language have celebrations with songs, it’s only of class a week.” in public either – we would also be pun- the old people who have the time to go The more formal, most heavily sub- ished. So naturally you wouldn’t use it at sing. The biggest problem that Taiwanese sidized programs tend to target the less home as well. These are the reasons our society is currently facing is there are frequently spoken languages, including languages are disappearing.” many, many old people.” the indigenous tongues and Hakka. Out The policies of that period have had a In most of the large cities, Mandarin is of the seven government-operated televi- deep, lasting impact on current language predominant and serves as a lingua franca sion stations, one is dedicated to content use in Taiwan. Today, fluency in Man- when members of different ethnic or lan- in Hakka and one to the indigenous lan- darin is almost universal, and the numbers guage groups communicate. The lack of guages. None of the seven broadcasts of speakers of Taiwanese, Hakka, and consistent contact with a language causes exclusively in Taiwanese. indigenous languages are all declining. proficiency to erode, and many of those According to Zhang Tang-bing, an According to data from the Taiwan Sta- who have become used to speaking Man- active member of the Hakka commu- tistics Bureau, in the case of 69.7% of darin outside the home may gradually nity, the government has long earmarked children aged 6 to 14, some Taiwanese find themselves also speaking it at home. funds to promote Hakka culture. Every is spoken at home, while that is true for Still, Taiwan’s local languages continue county, he notes, has its own Hakka 83.6% of those aged 25 to 44. In con- to have their cultural and political signifi- Association where members of the Hakka

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 43

11 IF.indd 43 2018/11/5 下午1:19 INDUSTRY F CUS minority can gather, spend time together, In December 2017, the Legislative Yuan test administered by the Indigenous Peo- and practice the language by engaging passed an amendment further stipulating ples Department of each county. in activities such as singing traditional that Hakka be considered a “national Moreover, the Legislative Yuan is Hakka folk songs. language” of Taiwan. Legally, Taiwan has currently considering a proposal for a Despite the efforts of these orga- no official language, though the de facto National Languages Development Act, nizations, many young Hakkas lack a national language remains Mandarin. which is expected to pass. “The legis- complete grasp of the language, instead The Hakka Basic Act also pro- lative spirit of the National Language preferring to communicate in Taiwanese vides that the government will fund and Development Law is to respect Taiwan’s or Mandarin. Though many are gener- provide support for Hakka cultural devel- multiculturalism, and language is often ally able to understand when spoken to opment, including the use of Hakka in the core of culture,” says Zhangliao Wan- in Hakka, they are unable to pass the lan- schools and kindergartens as well as jian, the lawmaker who proposed the guage on to their own children, leading Hakka-language radio and television bill. “The death of language is the demise to a shift away from Hakka and towards broadcasts. of culture. The inheritance of language Mandarin. In a 2012-2013 study, only Legislation has also been enacted to through legislation guarantees the sus- 16% of Hakka teenagers were found to target indigenous language loss, notably tainable development of culture.” speak the language fluently. the Indigenous Languages Development The bill calls for a regular confer- It seems that while the past govern- Act passed in June 2017. Although indig- ence on the status of Taiwan’s national mental efforts have slowed language enous people represent 2.3% of Taiwan’s languages, requires a census mecha- disappearance, they have not succeeded population, reportedly only 1.4% of the nism and database system to keep track in rejuvenating Taiwan’s secondary lan- population speak any form of indigenous of language use, and provides additional guages. In a survey organized by the language. Citing a study conducted by the resources for research and development. Council of Indigenous People and admin- Council on Indigenous People in 2012, Lo Instruction in one of Taiwan’s “national” istered by Shih Hsin University, less than says that “in everyday exchanges, more languages – meaning Hokkien, Hakka, 40% of aboriginal children under 10 than 89% of indigenous people usually and the indigenous languages – will be years of age reported using an indige- use Mandarin to talk to each other.” guaranteed as a part of a basic educa- nous language on a regular basis, and In addition, that 1.4% is shared tion, and subsidies will be given to radio the proportion of adult respondents who among 16 languages and 42 subdivi- and television broadcasters who pro- teach their children indigenous tongues sions and dialects recognized by the duce content in the national languages. is around 30%. “These low numbers Taiwan government. “The study found The bill goes as far as to make Taiwanese “hinder the generational flow of lan- that of our languages and dialects, each Sign Language (TSL) a national language guage,” the study concluded. is facing a dire predicament. Of those of Taiwan. 42 subdivisions, 10 are facing immi- In June this year the Council of Indig- Redoubled Efforts nent extinction,” says Lo. “Among the enous Peoples announced a new program Thao people, for example, there are only aimed at indigenous university students. In response to the limited success of around 300 remaining speakers. And For those interested in continuing their the earlier language reforms, the govern- there aren’t even 10 left who speak the education in indigenous languages, seven ment has sought to deepen and broaden language fluently.” universities have been designated as “lan- the efforts, and significant progress As the push to preserve Taiwan’s lin- guage learning centers” for indigenous has been achieved over the past sev- guistic diversity continues, the budget languages. At several of those universi- eral years. The motivation behind these of the Council of Indigenous Peoples ties, college students already proficient efforts has been the fact that multicultur- has grown considerably. Besides admin- in one of the languages can tutor inter- alism is now seen as an integral part of istering programs directly, it also gives ested young children, restoring the cycle the Taiwanese experience. Preserving it is grants and subsidies to NGOs to establish of passing language on. therefore regarded as vital to maintaining community centers and schools to create This program is in addition to Taiwan’s identity. a language-learning environment. the Ministry of Education’s policy of Few of the reform programs have For the 10 indigenous languages funding 10 tuition-free study-abroad focused on Taiwanese. Though use of the with the highest risk of extinction, the opportunities for indigenous students. language is in decline, it is still spoken by Council has created a “babysitter pro- As another incentive to learn indigenous more than 80% of the population and gram” in which speakers of indigenous languages, applicants for those spots remains a language in everyday use. For tongues care for children up to 2 years must first pass the Indigenous Language the moment, the focus is on languages of age. From the ages of 2 to 5, children Special Examination. in more imminent need of aid, such as can attend indigenous language daycare Although the future of Taiwan’s lin- Hakka. centers. The goal is to immerse children guistic diversity remains uncertain, clearly The Hakka Basic Act, passed in 2013, in the language from birth and provide the political will exists to preserve the stipulates that “people’s right to use [the a stable foundation to continue learning languages of this multiethnic and mul- Hakka language] for public services, the languages later in life. To ensure the ticultural country. Taiwan is still at the dissemination of resources, and as a lan- speaking abilities of the child caretakers, beginning stage of what will need to be a guage of learning shall be guaranteed.” applicants must pass a language ability long-term, dedicated effort.

44 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

11 IF.indd 44 2018/11/5 下午1:19

TAIWAN BUSINESS

PIVOTING TO TECHNICAL TEXTILES

Companies are seeking to avoid the low-margin trap by moving into this technically demanding segment of the industry.

BY JENS KASTNER

s the days are gone when fabric could be cut and sewn in ATaiwan at competitive costs, its textile sector has been shifting toward technical textiles for which production relies on automation rather than human labor. In this segment of the industry, in addition, the ability to deliver cus- tomized solutions trumps the ability to churn out huge volumes at cheap prices. Data from the Taiwan Technical Textiles Association (TTTA) shows that the island’s output of technical textiles reached NT$130 billion (US$4.2 billion) in 2017, more than double the level at the beginning of the decade. It already accounts for roughly one-third The Taiwan pavilion at Cinte Techtextil China, held in September in Shanghai, the leading exhi- bition in Asia for technical textiles. of Taiwan’s total textile output. PHOTO: JENS KASTNER Technical textiles can be divided into 12 sub-categories, namely for agri- hot products in Mobiltech are air- are higher than for functional textiles, cultural use (Agrotech), construction bags, automotive engine oil filters and which many Taiwanese manufacturers (Buildtech), functional apparel (Cloth- high-speed train gangways. Buildtech supply to international brands such as tech), civil engineering (Geotech), includes fabrics used to separate dif- Nike, Adidas and Under Armour, as curtains and other domestic textiles ferent types of cement, for example in technical textiles are more specialized (Hometech), filters and other indus- the construction of roads, airports, and and thus involve less standardized low- trial applications (Indutech), healthcare subway tubes. value production,” said TTTA general (Medtech), transportation (Mobiltech), As a reflection of Taiwan’s turn secretary Huang Po-hsiung, interviewed environmental protection (Oekotech or towards technical textiles, the island at Cinte. “We have seen steady annual Ecotech), packaging materials (Pack- had the third-strongest presence at the output growth rates of 3-5% over the tech), protective textiles (Protech), and sector’s leading fair in Asia, the Cinte last decade and, interestingly, growth athletics (Sportech). Techtextil China, held in early Sep- remained robust even during the global Mobiltech and Buildtech are cur- tember in Shanghai. The total of 13 financial crisis,” he added. rently seeing particularly rapid increases booths from Taiwan trailed only Ger- According to Huang, most Tai- in demand thanks to such factors as many, considered the world leader in wanese technical-textile makers focus strong growth in automobile produc- technical textiles, and host country on nonwovens, a category of fabric for tion in China and China’s Belt and China. which the fibers are bonded together by Road infrastructure drive. Among the “Profit margins for technical textiles chemical, mechanical, heat, or solvent

46 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

11 textile.indd 46 2018/11/5 下午1:20 TAIWAN BUSINESS

treatment, as opposed to being knitted Standardization (ISO), the Taiwan Tex- the replacement of stitches with radio- or woven. Applications for nonwovens tile Research Institute (TTRI), and other frequency welding, a technique that has range from baby diapers and surgical organizations. The certifications deal been around for a while for boats and gowns to car acoustics – the fabric with physical properties such as tear military applications but is new for out- placed inside the auto body or mud strength, fissure strength, abrasion resis- door civilian bags. “Our customers are guard to dampen noise and give passen- tance, and color accuracy. the top echelon of the outdoor industry, gers a more pleasant ride. “Our lifejacket fabric has ISO cer- and the cost of our solutions is rela- “Taiwanese new investment in non- tification for color accuracy, as minor tively high, with the end-product like woven factories has already reached deviation from the permitted color a bag for climbing usually costing in NT$6 billion this year, illustrating that range could bring about a dangerous the neighborhood of 200 euros,” said the manufacturers have been enjoying loss of visibility in adverse weather con- Daphne Hsu, Tomlong’s marketing good profits,” Huang said. “The out- ditions at sea,” explained Ken Liu, an director. look is also rosy for smart textiles, a Advance Hitech Textile sales manager. “We have 10 R&D engineers and sector where Taiwanese textile and elec- “The challenge in manufacturing this cooperation projects with the Plastics tronics companies cooperate in the fabric lies in the difficulty of controlling Industry Development Center in Tai- development of fabrics with embedded the dyeing process to an extent that the chung, TTRI, and several technical washable sensors, for example to mea- color becomes extremely stable.” universities in Taiwan, and we need sure heartbeat or temperature or to The process becomes even more dif- good profits to sustain our R&D. We make devices save energy.” ficult, Liu said, when extremely thin wouldn’t be able to compete with Chi- Fabrics that can help save energy fabric – such as that used for military nese factories on volume and price,” have become more sought-after with sleeping bags – is dyed, as thin fabric she added. the advent of electro mobility, vehicles tends to move around erratically and Taipei-based Everlight Chemical powered by electric drivetrains rather wrinkle when processed in the dyeing Industrial Corp. does not make fabrics than fossil fuels. Recent tests by German machine. but rather the glue that bonds fabric car-maker Audi have shown that new The Taiwanese police are also layers or leather together for applica- innovative types of fabric used to heat among Advance Hitech Textile’s cus- tions such as home accessories, medical car seats can reduce the electricity con- tomers. The police had previously used gowns, and automotive uses. Its sumption for heating by 50%. only waterproof, breathable U.S.-pat- flagship product, Evereco PUR, is envi- Cars today typically use between ented Gore-Tex for its uniforms, but in ronmentally friendly, as it does not emit 25 and 50 kilograms of technical tex- 2016 the police force opened a tender harmful volatile organic compounds tiles. For electric cars, any reduction in for alternative, less costly local solu- (VOCs). electricity consumption translates into tions, enabling Advance Hitech Textile Everlight’s Evereco PUR and its dye- extended range, which is an extremely to win an order for several thousand stuffs have gained the Zero Discharge strong selling point. police uniforms. of Hazardous Chemicals (ZDHC) cer- “However, there is no easy entry tification from an alliance of major for outside players in terms of Refugees spur demand global apparel brands, including Zara, Mobiltech, as auto-makers main- Nike, and Adidas. “Many competi- tain an extremely close-knit net of Although as a fabric supplier Liu tors in India and China use solvent- suppliers that usually have their pro- usually does not know the specific end- duction lines in close proximity to the use of the fabric, in recent months he car factories,” Huang said. has been noticing significantly increased Among the exhibitors at the Taiwan European demand for fabrics used pavilion at Cinte was Chiayi-based in life vests and lifeboats. “We think U-Long High Tech Textile, which show- these customers supply European orga- cased its newest product, a fabric made nizations rescuing Arab and African by weaving nylon and collagen yarns refugees who come to Europe across the together. The collagen, made of sea- Mediterranean,” Liu said. weed, absorbs humidity, sweat, and Another Taiwanese company in the body heat, and the fabric is designed to technical textile supply chain providing be used in protective clothing for con- solutions for protection against water is struction workers and others. Tomlong, also based in Taichung. Another Taiwanese technical textile Tomlong laminates fabric, such as manufacturer exhibiting at Cinte was that made from nylon or polyester, with Taichung-based Advance Hitech Tex- a thermoplastic polyurethane (TPU) tile International Corp. The company’s film, for use in producing waterproof booth contained a heap of file folders items such as hunting bags or inflatable with numerous letters of certification products like life vests and rafts. Woody aWu shows off Everlight Chemical's applications. from the International Organization for Complete waterproofing may involve PHOTO: JENS KASTNER

TAIWAN BUSINESS TOPICS • NOVEMBER 2018 47

11 textile.indd 47 2018/11/5 下午1:20 TAIWAN BUSINESS

type glue, which is not eco-friendly and harms textile workers and consumers Taiwan’s Functional Fabrics alike,” said Woody Wu, sales engineer are a Winner with Everlight. “Demand for our products is boosted by ever stricter Chinese Although Taiwan did not have a standards for environment and worker team competing in the 2018 World protection, as the Chinese government Cup in Russia this June, it was still is under increasing pressure to reduce well represented on the playing air pollution in the cities and ensure fields. The uniforms worn by the workers’ welfare,” he added. athletes from the great majority of This trend has been amplified in the 32 participating countries were recent years by the increased produc- made by Taiwanese companies, tion in China by foreign companies, as mainly for such prominent interna- these manufacturers have to equip their tional brands as Nike and Adidas. workers with modern protective clothing The achievement underscored in order to keep their insurance coverage. the leading status of Taiwan textile At the same time, China’s crackdown companies as contract manufactur- on air pollution and its efforts to control ers on the global market. They have industrial hazards have forced count- been able to maintain that position less non-compliant factories supplying due to their technical prowess in raw materials to close down recently, Wu producing functional apparel meet- said. As a result, prices of chemicals such ing the needs of serious athletes. as those used for Everlight’s PUR and A World Cup team jersey made of eco- The fabric is permeable, thin, and dyestuffs have risen quite dramatically friendly yarn, in turn made from PET this year, bottles recycled in Taiwan. lightweight, and features such PHOTO: CNA functions as moisture wicking (meaning that moisture is drawn Additional headaches away from the body), sweat siphoning, and water repelling. In many cases the fabric is produced from recycled materials. Willy Shih, general manager of Kae Taiwan has captured some 70% of the fast-expanding global market Hwa Industrial, a Changhua-based for functional fabric, which in turn accounts for 10% of the total fabric maker of breathable ﬁlm used in diapers, market. It has also been a major supplier of fabric made from recycled packaging, and coveralls to protect lac- materials, mainly PET bottles. About 50% of the fabric material is now querers or medical workers, noted that recycled, and the proportion is expected to rise to 60-70% in the next the speculative hoarding of raw materials few years as increased environmental awareness drives international in China has also contributed to higher demand. raw material prices this year. Making To help assure quality and reduce production costs, many of the matters worse, the ongoing U.S.-China major Taiwanese textile companies have integrated operations that trade war is a source of concern. Shih cover everything from fabric production and dyeing to making the appar- worries that it will drive down global el. They have also established global production networks to further prices of intermediate products, including control costs. technical textiles. As a means of adding value, a number of the leading firms are cur- “If the U.S. slaps higher tariffs on rently promoting knitted jacquard products that feature sophisticated Chinese imports, our Chinese compet- designs and are produced through computer-aided manufacturing. itors will have to sell their products In addition to serving long-established brands, Taiwanese companies elsewhere and will reduce their sales recently have been making forays into the rapidly emerging sector of prices to meet that end,” Shih said. “And fast-fashion apparels, supplying such brands as H&M and Root, whose while the sales prices of technical textiles order-to-shipment time may be only one week instead of the usual half go down, many Chinese suppliers will year. Such fast-fashion apparel is generally sold in department stores, go bankrupt. Many of them already are large shopping outlets, and dedicated apparel stores in North America. heavily indebted, and this is something Another new business sector is online brands in China. we will have to watch very carefully. In the first half of 2018, Taiwan’s textile exports inched up by 2% It could eventually mean customers year-on-year to reach US$5.1 billion, according to customs data. Of that defaulting on payment.” amount, fabric accounted for 66%, followed by yarn with 17%, fiber 8%, Another difficulty derives from Tai- apparel 5%, and others 4%. Vietnam was the largest export destination, wan’s inability to sign trade agreements followed by China, the United States, Hong Kong, and Indonesia. with major export markets. Kae Hwa in recent years has been compelled to — By Philip Liu shift some production from Taiwan

48 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

11 textile.indd 48 2018/11/5 下午1:20 TAIWAN BUSINESS

to Malaysia, so as to avoid 15-20% imports of technical textiles due to gaps passenger cars to be equipped with air- ASEAN import duties on Taiwan-made between foreign and domestic manufac- bags, according to Messe Frankfurt. technical textiles. Under the China- turers in terms of technology, product The manufacturing of fabric for airbags ASEAN free-trade agreement, such standards, and quality. requires a high degree of technological imports into China from ASEAN coun- Besides Taiwan, the major sources sophistication to ensure that the fabric tries are tariff-free. The company is of supply are Japan, South Korea, can withstand the enormous pressure considering opening a second factory in the United States, and Germany.The generated when the airbag inflates. Malaysia to serve both the ASEAN and main import segments are medical and Another market with substantial China markets under the preferential hygiene, plastic and rubber coated tex- growth potential is the United States. tariff regime. tiles, nonwovens, and glass-fiber textiles. Michael Jaenecke, Messe Frankfurt’s The China market remains attrac- New opportunities are also opening director of brand management technical tive enough to spur ever increasing up for Taiwanese technical-textile textiles, notes that “in the U.S., two of investment by Taiwan’s technical-textile makers to explore in other potentially the largest consumers of technical tex- makers. Messe Frankfurt, the orga- large markets. For example, two highly tiles – the military and infrastructure – nizer of Cinte, forecasts that China will populous countries, Brazil and India, are about to receive huge new financial continue to have a vast demand for have recently made it mandatory for infusions from the government.”

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11 textile.indd 49 2018/11/5 下午1:20 ADVERTORIAL A Message from the International Research-based Pharmaceutical Manufacturers Association (IRPMA)

Sharing the Risk of the Healthcare Cost Burden

n recent years the utilization of risk- opportunities for discounts to payers. three months. If the drug has proved to sharing mechanisms – also known as Over the past two years, industry be effective, payment would start from I managed entry agreements (MEAs) representatives have held numerous the fourth month. In a variation on that – has become increasingly common in rounds of discussions with officials from approach, the government reimburses healthcare systems around the world. the Ministry of Health and Welfare for the cost of the drug from the start, Britain, Italy, Canada, and Korea are (MOHW) and its National Health Insur- but if the hospitals find the treatment prominent examples. These arrange- ance Administration (NHIA) on how to be ineffective the pharmaceutical ments have been welcomed by both the to best implement such risk-sharing company pays back the amount that pharmaceutical industry and national methods in Taiwan. Last May, the Amer- was spent. healthcare administrations as a means ican, European, and Japanese Chambers In a financial-based MEA, the phar- of accommodating innovative but of of Commerce sent a joint letter to the maceutical company might agree, for ten expensive new medications without Minister of Health and Welfare to example, to rebate a certain percentage causing budgets to soar out of control. endorse the risk-sharing approach and of the drug expenditures, to absorb the IRPMA introduced the concept to request early implementation. drug costs during the initial period of Taiwan at a Pharmaceutical Innova- Those efforts bore fruit recently with treatment, or to pay for other drugs tion & Drug Policy Workshop held in MOHW’s formal announcement on used in combination therapy. May 2016, which featured presentations September 19 setting out guidelines for “It’s noteworthy that the MOHW by two foreign experts on risk-sharing entering into MEA schemes. guidelines don’t include any fixed approaches. Adrian Griffin, vice presi- “This was a very important step in numbers” regarding the obligations of dent for Health Technology Assessment assuring the sustainability of Taiwan’s each side in the agreement, says Heather & Market Access Policy at Johnson & healthcare system,” says Heather Lin, Lin. “There’s no way to set such Johnson, stressed how such programs IRPMA’s chief operating officer. “The numbers in principle because the condi- can assist payer organizations in making burden of providing universal coverage tions for each products are different, decisions when they “face significant should be borne not just by the govern- and it’s necessary to rely on the outcome uncertainty over the clinical or finan- ment but also by the industry and by of the clinical data to determine any cial impact of new drugs.” Adam patients through co-payments.” compensation. That situation requires a Mitchell-Heggs, consulting associate Risk sharing between govern- high level of trust between government at the global consulting firm Charles ment and industry may take a variety and industry, and fortunately that kind River Associates, noted that the bene- of forms, some based on assessing the of trust has been established.” fits of MEAs include reduced delay for outcome of the treatment and some A key aspect of risk-sharing agree- patients in access to new medications, geared to the financial impact. In one ments must be confidentiality, so that greater financial certainty for both example of an outcome-based MEA, information about treatment outcomes manufacturers and healthcare systems, the manufacturer provides sufficient and costs cannot be used against manu- guarantees regarding performance, and supply of a new drug free of charge for facturers by their competitors. “Only

50 TAIWAN BUSINESS TOPICS • NOVEMBER 2018

11 IRPMA.indd 50 2018/11/5 下午1:20 來自中華民國開發性製藥研究協會的消息 ADVERTORIAL

the government and the company will companies often have only a few innovative drugs, the government know the details,” says Lin. “Each years to make back that investment healthcare organization obtains better must agree that those details cannot for a breakthrough drug that can control over its budget, and manu- be released to the public, hospitals, or cure a disease, price can be a barrier facturers receive more predictability other stakeholders. Without that agree- to bringing new products to market. regarding price and market access. ment, the system can’t work.” Risk-sharing arrangements offer the Already 10-20 drugs are in the queue Given the enormous investment best hope for a win-win-win solution. to apply for MEAs. IRPMA hopes these necessary to develop a successful Patients get quicker access to potentially cases will serve as successful models for medication, plus the fact that drug life-saving and quality-of-life enhancing many more examples in the years ahead.

分攤健保成本負擔風險

年全球健保制度採用風險分攤機制的作法越是根據治療評估結果，有的則視財務影響而定。在根來越普遍。健保風險分攤機制又稱為新增藥據治療結果給付的一項MEA實例中，藥品製造商免品給付協議（MEA），英國、義大利、加費供應充足的新藥達三個月；若新藥證實有效，就從拿大和南韓均是採用此類機制的知名例子。製藥業和第四個月開始給付。此方式的一個變體版是政府從一國家健保行政機構都樂於採用這些作法，作為接受通開始就給付藥價，不過若醫院發現沒有療效，製藥公常昂貴的創新性新藥，但又不會造成預算暴增失控的司就須返還已給付金額。方法。在以財務為給付依據的MEA中，舉例來說，製藥中華民國開發性製藥研究協會2016年5月舉辦公司可同意返還某比例的藥品開支、吸收治療初期的「創新藥品政策研討會」，將前述概念引入台灣。這藥品成本，或負擔聯合療法中使用的其他藥品費用。場研討會邀請兩位外國風險分攤專家發表演說。其中林慧芳表示，「值得注意的是，衛福部的準則並未一位是嬌生公司醫藥科技評估暨藥品市場政策副總包含（關於議價各方義務的）任何固定數字」。她指裁Adrian Griffin，他強調這類計畫能協助給付機構出：「原則上無法設定這類數字，因為每項產品的狀在「面對新藥臨床與財務影響的重大不確定性」時況並不相同，任何賠償都須視臨床資料結果而定。這做出決策。另一位講者是在全球性顧問公司Charles 需要政府和業界互相高度信任；幸運的是，這種信任 River Associates擔任顧問的Adam Mitchell- 已經建立。」 Heggs，他指出，MEA的好處包括縮短病患取得新藥風險分攤協議中相當重要的一點就是必須保密，有的等待時間、讓藥品製造商和健保制度的財務更加穩關治療結果和成本的資訊才不會被競爭對手拿來對付定、確保用藥效果，以及有機會提供付費者價格優惠藥品製造商。林慧芳說：「只有政府和業者才知道這等。些細節。各方都須同意，這些細節不能對民眾、醫院過去兩年來，業界代表已就如何在台灣充分落實風或其他利害關係人透露。若沒有此共識，健保制度就險分攤模式的議題，和行政院衛服部及所屬健保署的無法運作。」官員進行多次討論。今年五月，美、歐、日商會聯合開發一項成功藥品須投入極大投資，加上製藥業者致函衛服部，表示支持風險分攤模式，並要求儘早實通常只有數年時間，能將可治療疾病的突破性藥品投施。資成本賺回來，因此價格可能成為將新藥引入市場的這些努力日前終於開花結果。衛服部9月19日正式障礙。風險分攤協議最有可能帶來雙贏解決方案。患宣布，著手制定MEA機制準則。者可以更快取得可能挽救性命和強化生活品質的創新中華民國開發性製藥研究協會秘書長林慧芳表示：性藥物，政府健保主管機關能更妥善控制預算，藥品「這是非常重要的一步，確保台灣健保制度得以長製造商則可以更準確預測價格和市場。存。提供全民保險的負擔不應只由政府承擔，業界和目前已有10到20種藥品正等候申請MEA。中華民患者也應透過共同支付一起分攤。」國開發性製藥研究協會希望，這些例子能作為未來數政府和業界之間的風險分攤可採取多種形式，有些年更多個案的成功榜樣。

想了解更多資訊，請透過以下方式與我們聯絡： For more information, please contact: 中華民國開發性製藥研究協會 International Research-based Pharmaceutical Manufacturers Association (IRPMA) 台北市南京東路五段188號9樓之八 9F-8, 188 Nanjing E. Rd., Sec. 5, Taipei 10571, Taiwan www.irpma.org.tw Tel: +886-2-2767-5661 Fax: +886-2-2746-8575

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urbanites saw nothing to envy when they looked upon life in rural areas. Economic factors aside, the big cities have always had the best schools and hospitals. Many remote districts have seen consistent population declines since 1985, even though Taiwan’s total population has grown 23% since then to its current 23.6 million. In recent years, for a variety of reasons, some Taiwanese have been leaving the cities and relocating to small towns or villages. The rapid growth of the tourism industry has created opportunities to run B&Bs, restaurants, and other businesses in places like Dulan on the east coast. More and more citizens now appreciate that material success is not the same as happiness, and there is often Taking Life Slowly in the an environmentalist aspect to this new thoughtfulness. Some return to their ancestral home in order to take care Hills of Miaoli of land they inherited. Others wish to modernize and expand artisanal food businesses established by their grand- aiwan’s major cities are remark- and other agricultural produce, to a key parents. Some simply have become able centers of industriousness. partner in numerous high-tech global smitten by places with which they have T People work long hours, yet supply chains. no family connection. many also fit in early morning sessions In 1958, only a third of Taiwan’s A number of local governments of tai chi in a park near their home, not population lived in settlements with around Taiwan have realized that if to mention evening visits to the local more than 2,500 people. But many they wish to prosper in the long term, night market for snacks. For many visi- country folks were keen to leave their they need to build on their strengths tors, the 24/7 urban energy is part of villages. Farm work was arduous, and and play up their distinctiveness. Some- Taiwan’s appeal. life in the countryside was dull. Towns one who likes taking the metro to a Other Taiwan residents feel that and cities, by contrast, were awash with conventional office job and shopping their life is frenetic enough. If they can opportunities and excitement. in fashionable stores is never going take a vacation, they want it to be as Until very recently, Taiwanese to leave Taipei for Sanyi (population restful as possible. To put it another way: What speeds up must slow down. The global Slow Movement is a response to modern lifestyles that often leave people feeling stressed and breath- less. Its proponents argue that while technology makes it possible to do things much more quickly than before, people have not become happier. They point out that cooking and enjoying a meal the old-fashioned way can be more satisfying, healthier, and bring about far more meaningful human interaction than grabbing a bite and eating it on the go. Since World War II, Taiwan has evolved from a farming-based economy that exported mainly sugar, bananas,

交通部觀光局廣告

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16,300) or Nanzhuang (population 10,500). Yet an artist might, or a location-independent freelancer – or parents who want their children to grow up close to nature and without the heavy academic pressure that is common in urban schools. Sanyi and Nanzhuang in Miaoli County in Taiwan’s northwest are among places in Taiwan that have begun to position themselves in this way. Both townships have been accepted as members of Cittaslow Inter- national, an Italy-based alliance that promotes lifestyles that are (in the words of its website, www.cittaslow. org), “respectful of citizens’ health, the authenticity of products and good food, [and] fascinating craft traditions.” bought icons of the Virgin Mary. and Sanyi are accessible to day-trip- The majority of people in Miaoli The American soldiers are long gone, pers. The bus journey from Hsinchu to County are Hakka. When Hakka fami- but the woodcarvers continue to thrive. Nanzhuang takes a bit over an hour. lies began migrating to Taiwan from Each summer there are competitions, Trains from the metropolis of Taichung the Chinese mainland in the early and Sanyi’s Wood Sculpture Museum to Sanyi take a mere 35 minutes. Of 18th century, pioneers were drawn to showcases dozens of superb works. course, staying a few nights in a B&B Miaoli’s hilly interior because it resem- For those who like to blend culture run by local people is a much better bled the terrain they were used to with exercise, Sanyi is an ideal destina- way of slowing down and enjoying the farming in China’s Guangdong and tion. Among the many hiking trails is unique ambiance. Fujian provinces. one that begins right beside the Wood To find out more about Nanzhuang, Sculpture Museum. It climbs through Sanyi, and other parts of Miaoli a forest to a tea plantation from which County, visit the website of the coun- there are excellent views. Cycling enthu- ty’s Culture and Tourism Bureau (www. siasts adore the Sanyi region, Road 130 miaolitravel.net). For all kinds of infor- being one of many scenic challenges. mation about Taiwan, visit the Tourism Another attraction near Sanyi is the Bureau’s website (www.taiwan.net.tw), Shengxing Railway Station and what or call the 24-hour tourist information is called the Old Mountain Railway hotline 0800-011-765 (toll free within Line. At 402 meters above sea level, this Taiwan). station used to be the highest point on the north-south railroad. Trains now take a straighter route nearer the sea, but the delightful Japanese-era wooden depot remains in place. The line itself is

SANYI WOOD CARVING still in good condition, and from time to time a special train pulled by an old Much of Sanyi is covered by wood- steam locomotive pulls into the station. land, and the town has been Taiwan’s Nanzhuang has a substantial indig- foremost woodcarving center since enous population. The township’s the early part of the 1895-1945 Japa- Xiangtian Lake is one of the venues of nese colonial period. When stands of the biennial Pas-ta’ai ritual, an impor- camphor were cut down, local crafts- tant event for the Saisiyat tribe. In men turned the roots and stumps into villages of the Atayal tribe elsewhere in decorative, practical, and religious the township, age-old weaving tradi- items. Japanese buyers commissioned tions are being preserved. statuettes of Buddha and Guanyin. Thanks to good transportation After World War II, Catholics serv- networks, very few places in Taiwan ing in the U.S. military bases in Taiwan are truly remote. Both Nanzhuang

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11 ST.indd 53 2018/11/5 下午1:21 ADVERTORIAL

REVERSE MENTOR PROGRAM At Bayer Taiwan, Learning from the Younger Generation

ust what is the Z generation think- Given the experimental nature of beginning, I was partly in shock, partly ing about? What does holding a the project, two interns were chosen to happy, and partly scared. I was uneasy J job mean to them? What types of serve as mentors, with the arrangement because I didn’t know just what I entertainment do young people prefer? that two of the company’s senior exec- should try to teach the Managing Direc- Many high-level corporate executives utives – the Managing Director and the tor. But my ‘mentee’ was a very serious have been pondering these ques- CFO – would learn from them. Crys- student and referred to the list of topics tions, but still haven’t come up with tal Chan said the project lasted about for study. She wanted to understand the the answers. Considering the differ- a month. “The first interaction was a thinking of young talent about careers ences between the generations, perhaps report that the two instructors prepared and workplace values, so I shared my it is best to let young people take on to enable to two mentees to understand own experience and observations. I the role of instructor in teaching senior the strengths and concerns of the new hope it will help the company cultivate “apprentices.” generation,” she noted. more young talent.” Bayer Taiwan used the opportu- That was followed by two individ- The ability to attract young talent nity presented by its summer internship ual coaching sessions, and then a final will be an extremely important element program to carry out an experimen- lesson that was an overall sharing. Ryne in the company’s long-term sustain- tal “Reverse Mentor” program. Bayer Chen, who served as the mentor for ability, says Freda Lin. For a company Taiwan HR head Crystal Chan notes Bayer Taiwan Managing Director Freda with a history of more than 150 years, that enterprises often utilize a mentor- Lin and is still a student at National continuing to learn from young people ing system in which executives or senior Taiwan University’s Graduate Insti- is the key to innovation. employees provide guidance to new or tute of Brain and Mind Sciences, said he The experience junior employees, helping them adapt doesn’t know why he was selected, but gained from this to the corporate and workplace culture to participate in the project was “really experiment has been and giving them advice on planning very cool.” extremely valuable. their career development. “Although I wanted to provide As a result of the From the head of the company to some guidance to the project, the spirit of the summer interns, participants in Managing Director, “Reverse Mentor” Bayer Taiwan’s “Reverse Mentor” having the chance Mentor , Ryne Chen has gradually taken program benefited from exposure to the to interact with the hold internally within Bayer Taiwan. thinking of a wide range of age groups, leaders of a multina- That spirit entails learning from the enabling them to understand each tional enterprise was younger generation, together providing generation’s values, mode of interac- really an extremely solutions to the challenges facing the

tion with other people, and approach to Mentee, Freda Lin, special opportunity,” world, and creating a better future for career planning. Bayer Taiwan MD he said. “At the the coming generations.

世代到底在想什麼？工作對他們而言有什麼意義？年輕接下來則有兩次個別指導時間，最後一堂課則是綜合分人現在到底在玩些什麼？許多職場上叱咤風雲的高階主享。擔任台灣拜耳總裁林達玲導師的陳端慶（Ryne），現在管左思右想，還是似懂非懂，不如就請這些年輕人來當還是台灣大學腦與心智科學研究所學生，他說，不知道為什 Z 麼被選上，但是能參加這個計畫「真的很酷」，「竟然是我老師，教教資深的「徒弟」，翻轉世代的差異吧！台灣拜耳利用今年暑期實習計畫的機會，實驗性質的進行要指導總裁，能有機會與跨國企業的領導人互動，真的是非「反向師徒制」計畫。台灣拜耳人力資源部處長詹和頤說，常難得的機會。」企業中常會利用師徒制，由資深的員工或是主管，指導資淺陳端慶說，「一開始其實是又驚又喜又害怕，忐忑不安，或新進的員工，適應職場與企業的文化，並給予職涯發展的不知道要教給總裁什麼才好。但是我的『學徒』很認真，開規畫與建議。出學習菜單，想要了解年輕人才對職涯的想法，工作的價值而台灣拜耳的「反向師徒制」計畫，由公司的主管向參與觀，於是我分享自己的經驗與觀察，希望能對企業培育年輕暑期實習的學生，廣泛學習年輕世代的思維，了解他們的生人才上有幫助。」涯規畫、價值觀與互動模式。由於計畫是實驗性質，所以挑台灣拜耳總裁林達玲說，對於企業永續經營而言，年輕人選兩名實習生擔任導師（mentor），安排公司兩位高階主管才的加入是非常重要的一環，對於具有150多年歷史的公司 ─總裁與財務長來拜師學習。詹和頤說，這項計畫約進行一而言，持續向年輕人學習，是邁向創新的關鍵，這次經驗非個月的時間，第一場互動是由兩位導師帶自選的主題報告，常寶貴，台灣拜耳會從這此實驗計畫出發，逐步在內部導入讓兩位學徒（mentee）了解導師的所長與新世代關心的話「反向師徒制」的精神，向年輕世代學習，一起為世界面臨題。的挑戰提供解方，打造世代共好的未來。

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Taiwan's New Residents ���105���生����1������0�� ������ �話�2718-8226 �真�2718-8182

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