Attracting and Retaining Talent in Taiwan

This piece is a part of the Next-Generation Perspectives on Taiwan: Insights from the 2024 Taiwan-US Policy Program, hosted by the German Marshall Fund. Writer Adrienne Chih-fang Wu is a program manager at the Global Taiwan Institute.

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Taiwan’s Gold Card has been a moderate success, but the island would benefit from more immigration options

Amid a global talent shortage in which 75% of employers worldwide struggle to fill jobs, Taiwanese businesses, unsurprisingly, face the same challenge. A 2024 report by ManpowerGroup, a multinational staffing company, notes that a slightly below-average 73% of Taiwanese employers have difficulties finding qualified workers. Taipei, recognizing the importance of immigration for reducing labor shortages, has introduced policies to attract foreign workers. These measures include initiatives under the New Southbound Policy and the 2018 launch of the Taiwan Employment Gold Card (TGC), which aims to recruit highly skilled professionals to help raise Taiwan’s competitiveness.

But how successful has the TGC been? And how can Taipei build on progress already made?

A Golden Opportunity

The TGC, which emerged from Taipei’s 2017 Act for the Recruitment and Employment of Foreign Professionals, is “a 4-in-1 card that includes a resident visa, work permit, Alien Resident Certificate (ARC), and re-entry permit”. It covers a wide range of industries (see table below), and applications can be made online. The TGC, which is based on Singapore’s Employment Pass Program and its $5,000 monthly salary qualification, also uses high salaries alongside academic credentials and experience working at a senior level as indicators of an applicant’s suitability. An additional focus on industry provides a great degree of precision for recruiting based on Taiwan’s needs. However, the stringent qualifications reflect the TGC’s targeting of mid- or senior-level professionals. The program is not intended to cultivate talent or attract students. As one commenter has wryly noted, “there aren’t really any downsides to the Gold Card if you’re eligible for it.” With 6,605 valid Gold Cards as of January 31 (out of 9,205 approvals), the TGC has been a moderate success.6 The program picked up steam in 2020 due to Taiwan’s handling of COVID-19, with the number of applicants doubling between August of that year and March 2021. However, without more robust data collection, assessing the TGC’s record in retaining foreign talent is difficult. Taiwan Employment Gold Card Office Director Jonathan Liao says new and valid TGC holders are the main data points collected by the National Immigration Agency (see graph below), with additional information gathered through annual surveys of current cardholders. Since those with a TGC can let the card expire if they no longer need it—and reasons for this vary from leaving Taiwan to switching visas or applying for permanent residency— the number of former cardholders remaining in Taiwan is hard to determine.

More detailed data collection, such as requiring the completion of a survey upon the card’s expiration admittedly difficult to enforce) or tracking which former cardholders stay within the immigration system, would provide more insight into TGC’s retention rate.

Attracting Talent

With a shrinking pool of diplomatic allies and a limited international presence, Taiwan often struggles with a lack of awareness of its society and culture. This includes limited knowledge about Taiwan as a place to work. “Most people only find that Taiwan is a great place after they have been here as [a] language or exchange student, during a layover, or visiting a friend. It is often not a first-choice destination, which we would love to change,” says Liao.

To draw more interest, the Taiwan Employment Gold Card Office frequently coordinates with the island’s diplomatic missions to disseminate information about the TGC program, particularly through Taiwan pavilions at international exhibitions or the Taiwan Tech Arena. David Chang, founder and secretary-general of Taiwanese NGO Crossroads, noted that a downside of such a strategy is that people are naturally more skeptical of government-initiated outreach. He believes that an official system that allows current or former residents of Taiwan to refer new applicants to the Gold Card Office and, by doing so, earn, based on the number of referrals, honorary titles, or even points toward their own visas, permanent residency, or naturalization would be a more personal and effective alternative. “With coordination among relevant agencies, such a program for crowdsourcing ambassadorship, could [bring more talent to Taiwan and act as] effective publicity campaigns for Taiwan,” Chang said.

More broadly, Taipei would benefit by increasing the pathways for foreigners to come to Taiwan. Since, however, the number of those interested is small, it would be best to allow as many people as possible within that group to qualify. Taipei’s recent announcement that it will extend the time that recent foreign graduates of Taiwanese universities may stay on the island from between six to 12 months to two years—longer than Singapore (three months) and on par with Hong Kong—is a step forward. However, increasing partnerships for Taiwan’s working-holiday visa (no such partnership between Taiwan and the United States exists) or offering a digital nomad visa would provide other low-barrier ways for foreigners to experience living in Taiwan while contributing to the economy. Such visas should mirror the TGC by not requiring an applicant to find a local employer before applying and differ from the TGC by having laxer qualifications and covering shorter time periods, with a potential transition to a longer-term employment visa. South Korea’s decision to offer a “Hallyu” visa for K-pop fans also raises prospects for a possible Taiwanese equivalent.16 Chang proposed a culinary visa, but Taiwan’s strong civil society could prompt NGO- or civil society-related visas. Regardless of the options made available, expanding immigration programs would allow Taipei to capitalize on interested applicants and build an awareness of Taiwan that goes beyond a site of potential military conflict and a semiconductor manufacturing hub.

Retaining Talent

In addition to attracting talent, retaining talent is also important. InterNations’ 2023 expat rankings ranked Taiwan the fifth-best place to live, with especially high ratings for quality of life (second), travel and transit (third), and healthcare (first). But Taiwan also ranked lower in language (39th), housing (23rd), and work culture satisfaction (22nd). The National Development Council’s decision to open a Taiwan International Talent Office, which provides bilingual support for TGC holders and all foreign professionals, represents a government effort to tackle some of these obstacles. However, finance-related issues, such as low wages, difficulties with banking, and taxes, are also deterrents for foreigners considering a long-term stay in Taiwan.

A 2022 survey by the Taiwan Employment Gold Card Office showed that more cardholders are employed by foreign companies (34.8%) than by their Taiwanese counterparts (30.4%). This is, at least in part, likely due to low local wages. Still, TGC holders can teach locals in Taiwan about integrating with foreigners, especially in the banking sector. Chang noted that discomfort about interacting with foreigners can lead people in Taiwan to shy away from serving them, which creates complications when foreigners open bank accounts. A survey by Crossroads found that 50% of respondents in Taiwan were intimidated by foreigners and worried that their English was insufficient. Taiwan’s “antiquated” banking system also compounds difficulties with communication since services must often be done in person and require significant paperwork. Strengthening Taiwan’s online banking services would contribute to retaining foreign professionals.

Liao and Chang agreed that a double-taxation avoidance agreement between the United States and Taiwan would be instrumental in attracting more companies and professionals from the former to the latter. The absence of such a treaty is not only a financial deterrent but also an incentive for Americans to leave Taiwan. US citizens are, after all, required to file and pay taxes on overseas income in Taiwan only if they stay more than 90 days. TGC holders are eligible for tax reductions and exemptions, but only if they reside in Taiwan for more than 183 days in a calendar year and if their income exceeds NTD 3,000,000 ($94,800). Even then, these benefits can be claimed for only five years. A tax treaty would provide long-term benefits that would facilitate talent flow.

Recommendations

The TGC program is an excellent pathway to Taiwan for foreign professionals, but areas for improvement exist. They include:

• Collecting more data. More information about the number of TGC holders who transition to other Taiwanese visas or immigration programs would help evaluate the TGC.
• Expanding available immigration programs. Broadening the options for foreigners to come to Taiwan would facilitate the path for the limited number of people who know Taiwan and want to live there. It would also help to raise the visibility of Taiwan as a place to live and work.
• Prioritizing reciprocal agreements. Tax treaties can spur a larger talent flow, and other reciprocal arrangements, such as recognition of driver licenses, would ease the process for foreigners to settle in Taiwan.

(Featured photo by StartupStockPhotos on Pixabay)