07/25/2007

News / Taiwan should look to Hong Kong

The media reported recently that the Council for Economic Planning and Development has drafted a plan to attract foreign investment and skilled immigrants. However, if the plan is to succeed, the government needs to make several improvements. Hong Kong would serve as a good example for Taiwan as it tries to address the following issues.

First, traffic networks and the rules that govern them have to be well-organized. Transportation undoubtedly has a great influence on economic development. Apart from Taipei, where the transportation network is fairly comprehensive, Taiwan's cities have transportation systems that are at a "third-world" level.

For example, if a foreigner arriving at Taoyuan International Airport for the first time wants to go to the Hsinchu Science-based Industrial Park, the cheapest and most "convenient" way for him or her to do so is to take a shuttle bus from the airport to Taipei and then transfer to another bus going from Taipei to Hsinchu. Such roundabout routes are ridiculous and the reason for them is that there is no dedicated bus service from the airport to Hsinchu.

Also, if foreigners want to ride motorcycles or drive motor vehicles in Taiwan, they must hold an Alien Resident Certificate for more than one year before applying for a driver's license. They cannot apply for a professional driver's license. As a result, foreign professionals' primary obstacle to working in Taiwan will be inconvenient transportation.

Second, tax regulations need to be adjusted. Currently, non-Taiwanese resident taxpayers have to pay 20 percent tax on their earnings for the first six months they are here. All work permit applications for foreign technicians must be sent to the Council of Labor Affairs' Bureau of Employment and Vocational Training or the Science Park Administration. Given the complexity of the application procedures, some foreign teachers and skilled industrial workers choose to work illegally or sign up for short-term contracts and do visa runs.

Third, the language environment needs to be improved. Thanks to politics and history, Taiwan has very complicated language policies. This is evident in the mixed-up use of both Hanyu and Tongyong romanization. Misspellings are commonplace in the media and in things as small as elevator signs and as big as official government announcements. If Taiwan wants to make life more convenient for foreigners, then this needs to be addressed.

Fourth, residency rights need to be protected. Many foreigners not only want to obtain the right to work, live and receive health care and tax benefits in Taiwan, but also hope to settle down permanently. Taiwan continues to lag behind other nations in providing the right to political participation, basic convenience in banking services, international schooling, financial assistance, and protection of educational rights.

The Cabinet boasts that its plan will attract 1 million skilled, white-collar immigrants. But if it is to do so, the aforementioned issues must be addressed. Hong Kong's systems and infrastructure may offer the government a few ideas. In order to meet its basic labor demands and attract foreign investment, Hong Kong not only issues permits to 150 people from China each day, but also implemented a "Quality Migrant Admission Scheme" last year aimed at attracting talented people from China and overseas to settle in Hong Kong.

Furthermore, Hong Kong has a bilingual language policy in which both Chinese and English are official languages. This applies to not only legal, tax and governmental documents, but also to financial institutions and the transportation infrastructure.

Compared to the Hong Kong government's practical understanding of what it takes to attract talent from abroad, the Taiwanese government's ill-informed plan to attract skilled, white-collar immigrants seems naive and full of holes.

Jackson Yeh is a research assistant in the Center for Contemporary China at National Tsing Hua University.

Translated by Lin Ya-ti
By Jackson Yeh
http://www.taipeitimes.com/News/editorials/archives/2007/07/25/2003371198

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