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Taiwan seeks to absorb Malaysia's brain drain as battle with South Korea intensifies



Taiwan's Ministry of Education revealed that 4,000 overseas Chinese students from Malaysia will come to study in Taiwan this year, as part of a student recruitment program where the island seeks to recruit approximately 100,000 foreign students as the solution to Taiwan's declining birth rate, Education Minister Chiang Wei Ling said.





Taiwan to Malaysia: We want your brains



The falling birth rate, resulting in a smaller labor workforce, is an inevitable phenomenon in Taiwan, but it can be partially solved by admitting students from China and other foreign countries, Chiang noted. Taiwan is competing with South Korea, a nation 2 times more populous, in fields of electronics and information communication technology.



A Taiwanese delegation recently visited Malaysia in the hope of attracting more students, a journey that proved effective, said the minister. "Overseas Chinese residents in Malaysia seemed deeply intrigued by the option of studying in Taiwan. We hope this is a good way to supply our schools with more students."



Yung-Fu Cheng, president of the Jinwen University of Science and Technology, suggested that there are 300,000 graduating foreigners residing in the nation, allowing them to become apprentices in different job sectors later on. Taiwan says it is actively seeking more qualified overseas Chinese and other desirable immigrants to rebalance its labor markets.





Taiwan under pressure as island falling behind rival South Korea



The Council of Labor Affairs (CLA) has loosened the requirements for overseas Chinese and foreign graduates to stay in Taiwan and take up a job. Beginning June 14 this year, they can apply to remain on the island and take up a professional or a technical job with a starting salary of NT$37,619 (US$1,267) or more per month without the prior work experience of two years as stipulated by previous rules.



CLA says it hopes this new measure will boost the returns on Taiwan's educational investment by retaining new talents. According to Ministry, the 2011 academic year accepted 4,959 foreign students. The majority of whom are from Vietnam, Indonesia and Malaysia. An additional 14,045 overseas Chinese students returned to study in Taiwan during the 2011 academic year, with the majority of them from Macau, Hong Kong, Indonesia and Malaysia.



Taiwan currently suffers from wage stagnation, a testament to the effect of the migration of Taiwan's manufacturing to China over the past two decades has had on the island's economy. That move "hollowed out" Taiwan's manufacturing sector, says Waiho Leong, an economist with Barclays. It is also sparking a brain drain of educated workers that is worrying employers.





Taiwan: We need to do something to sustain our economy and industries



Although Taiwan's economy remains robust, wages adjusted for inflation fell 1.6 per cent, their third largest fall in history, and are now just below their 2000 levels. By contrast, average real wages in Asia rose 5 percent in 2011 alone. In rival South Korea, wages after inflation are up about 3 percent since 2000, according to research from DBS.



The concerns about a brain drain are particularly acute for Taiwan's technology sector, whose companies produce a large portion of the world's electronics but have lately been struggling to figure out how to overcome slowing PC sales and fight the rise of larger Korean and Chinese competitors. With the island increasingly falling behind South Korea, Malaysian talents come into spotlight.



There has been a serious brain drain from Malaysia, a Southeast Asian state whom is plagued by corruption, social inequality, and the government's racial affirmative action policies. As of 2011, there are 1 million talented Malaysians working overseas. Recently the brain drain has increased in pace; over 300,000 highly skilled citizens are migrating out of the country every year.





Malaysia's racial policies and its subsequent brain drain caught Taiwan's attention



Popular emigration destinations for Malaysians include Singapore, Australia, the United States and the United Kingdom, and most emigrants are of ethnic Indian and Chinese origin. This brain drain has caused Malaysia's economic growth rate to fall from an average 7.2 percent in the 1990s to the 4.6 percent per annum now. The World Bank reported that Singapore absorbed 57 percent or nearly 600,000 of Malaysia's overseas citizens, with almost 90 percent of those being ethnic Chinese.



Many overseas Malaysian interviewees, when asked on their concerns about returning to Malaysia, cited racial tensions and the country’s affirmative action policy, which gives special privileges to ethnic Malays, who make up 60 percent of the population. Private investment, meanwhile, has fallen to about 10 percent of gross domestic product from more than 30 percent back in 1990s, the World Bank estimated.



But whatever may be the cause, Taiwan is looking forward to grab a share of Malaysian brain drain amid its high-tech rivalry with South Korea. Anxiety is high in Taiwan after South Korean nominal GDP per capita surpassed it back in 2010. Few months ago, Business Today, Taiwan's top business magazine, accused Samsung Electronics of launching a "Kill Taiwan'' effort and targeting some of the island's leading high-tech companies including Taiwan Semiconductor Manufacturing Co. and Foxconn.





Powerful Samsung targeting Taiwan after destroying Japanese competitors



Taiwan watches in fear the downward spiral of famous Japanese companies such as Sony Corp. which were outrun by Korean competitors like Samsung. Few years ago, Taiwan's HTC was a top global smartphone maker, cashing in on its status as the first company to make handsets using Google's Android operation system. Now, however, it is struggling as Samsung and Apple smartphones dominate. Taiwan's high tech exports totaled $98 billion last year, accounting for about 20 percent of the island's GDP.



Taiwan's Industrial Technology Research's Dr. Tsung-Tsan Su says Samsung now has the upper hand in attracting first rate talent, a crucial element in the continuing high-tech battle. The Korean conglomerate has aggressively hunted talent from Japan, China and Taiwan – often luring skilled staff away with higher pay – and has sent large number of Koreans to study abroad and learn about overseas markets, he said.



Dr. Su added that semiconductors and flexible panels, slated for use on watches, street lighting and a number of other applications, may be the next battleground in the Samsung-Taiwan rivalry. "Taiwanese makers can maintain their edge for only another three years, and after that it would depend on how hard they can work," he said. Samsung single-handedly account for 17 percent of South Korean GDP, or 20 percent of its exports.





With falling birth rate, foreign talents could be Taiwan's only savior



"The Taiwan government is trying to relax various rules to help our high-tech industries, but we are lagging behind South Korea in this area because they have made it the strategic national goal to attract and facilitate high-tech investments. To this, we need to begin working on absorbing foreign talents," the research panel added.





Source:



credit to



http://www.ft.com/intl/cms/s/0/7bec7f70-8f...l#axzz2epONkNAb



http://www.chinapost.com.tw/taiwan/nationa...5/Taiwan-to.htm



http://www.bbc.co.uk/news/world-asia-22610210



http://my.news.yahoo.com/racial-policies-e...-060600167.html



http://news.techeye.net/business/samsung-w...-to-kill-taiwan



http://www.taipeitimes.com/News/front/arch...3/23/2003557762



http://www.nytimes.com/2013/04/22/technolo...?pagewanted=all



http://www.cepd.gov.tw/encontent/m1.aspx?sNo=0017374

Taiwan's Ministry of Education revealed that 4,000 overseas Chinese students from Malaysia will come to study in Taiwan this year, as part of a student recruitment program where the island seeks to recruit approximately 100,000 foreign students as the solution to Taiwan's declining birth rate, Education Minister Chiang Wei Ling said.The falling birth rate, resulting in a smaller labor workforce, is an inevitable phenomenon in Taiwan, but it can be partially solved by admitting students from China and other foreign countries, Chiang noted. Taiwan is competing with South Korea, a nation 2 times more populous, in fields of electronics and information communication technology.A Taiwanese delegation recently visited Malaysia in the hope of attracting more students, a journey that proved effective, said the minister. "Overseas Chinese residents in Malaysia seemed deeply intrigued by the option of studying in Taiwan. We hope this is a good way to supply our schools with more students."Yung-Fu Cheng, president of the Jinwen University of Science and Technology, suggested that there are 300,000 graduating foreigners residing in the nation, allowing them to become apprentices in different job sectors later on. Taiwan says it is actively seeking more qualified overseas Chinese and other desirable immigrants to rebalance its labor markets.The Council of Labor Affairs (CLA) has loosened the requirements for overseas Chinese and foreign graduates to stay in Taiwan and take up a job. Beginning June 14 this year, they can apply to remain on the island and take up a professional or a technical job with a starting salary of NT$37,619 (US$1,267) or more per month without the prior work experience of two years as stipulated by previous rules.CLA says it hopes this new measure will boost the returns on Taiwan's educational investment by retaining new talents. According to Ministry, the 2011 academic year accepted 4,959 foreign students. The majority of whom are from Vietnam, Indonesia and Malaysia. An additional 14,045 overseas Chinese students returned to study in Taiwan during the 2011 academic year, with the majority of them from Macau, Hong Kong, Indonesia and Malaysia.Taiwan currently suffers from wage stagnation, a testament to the effect of the migration of Taiwan's manufacturing to China over the past two decades has had on the island's economy. That move "hollowed out" Taiwan's manufacturing sector, says Waiho Leong, an economist with Barclays. It is also sparking a brain drain of educated workers that is worrying employers.Although Taiwan's economy remains robust, wages adjusted for inflation fell 1.6 per cent, their third largest fall in history, and are now just below their 2000 levels. By contrast, average real wages in Asia rose 5 percent in 2011 alone. In rival South Korea, wages after inflation are up about 3 percent since 2000, according to research from DBS.The concerns about a brain drain are particularly acute for Taiwan's technology sector, whose companies produce a large portion of the world's electronics but have lately been struggling to figure out how to overcome slowing PC sales and fight the rise of larger Korean and Chinese competitors. With the island increasingly falling behind South Korea, Malaysian talents come into spotlight.There has been a serious brain drain from Malaysia, a Southeast Asian state whom is plagued by corruption, social inequality, and the government's racial affirmative action policies. As of 2011, there are 1 million talented Malaysians working overseas. Recently the brain drain has increased in pace; over 300,000 highly skilled citizens are migrating out of the country every year.Popular emigration destinations for Malaysians include Singapore, Australia, the United States and the United Kingdom, and most emigrants are of ethnic Indian and Chinese origin. This brain drain has caused Malaysia's economic growth rate to fall from an average 7.2 percent in the 1990s to the 4.6 percent per annum now. The World Bank reported that Singapore absorbed 57 percent or nearly 600,000 of Malaysia's overseas citizens, with almost 90 percent of those being ethnic Chinese.Many overseas Malaysian interviewees, when asked on their concerns about returning to Malaysia, cited racial tensions and the country’s affirmative action policy, which gives special privileges to ethnic Malays, who make up 60 percent of the population. Private investment, meanwhile, has fallen to about 10 percent of gross domestic product from more than 30 percent back in 1990s, the World Bank estimated.But whatever may be the cause, Taiwan is looking forward to grab a share of Malaysian brain drain amid its high-tech rivalry with South Korea. Anxiety is high in Taiwan after South Korean nominal GDP per capita surpassed it back in 2010. Few months ago, Business Today, Taiwan's top business magazine, accused Samsung Electronics of launching a "Kill Taiwan'' effort and targeting some of the island's leading high-tech companies including Taiwan Semiconductor Manufacturing Co. and Foxconn.Taiwan watches in fear the downward spiral of famous Japanese companies such as Sony Corp. which were outrun by Korean competitors like Samsung. Few years ago, Taiwan's HTC was a top global smartphone maker, cashing in on its status as the first company to make handsets using Google's Android operation system. Now, however, it is struggling as Samsung and Apple smartphones dominate. Taiwan's high tech exports totaled $98 billion last year, accounting for about 20 percent of the island's GDP.Taiwan's Industrial Technology Research's Dr. Tsung-Tsan Su says Samsung now has the upper hand in attracting first rate talent, a crucial element in the continuing high-tech battle. The Korean conglomerate has aggressively hunted talent from Japan, China and Taiwan – often luring skilled staff away with higher pay – and has sent large number of Koreans to study abroad and learn about overseas markets, he said.Dr. Su added that semiconductors and flexible panels, slated for use on watches, street lighting and a number of other applications, may be the next battleground in the Samsung-Taiwan rivalry. "Taiwanese makers can maintain their edge for only another three years, and after that it would depend on how hard they can work," he said. Samsung single-handedly account for 17 percent of South Korean GDP, or 20 percent of its exports."The Taiwan government is trying to relax various rules to help our high-tech industries, but we are lagging behind South Korea in this area because they have made it the strategic national goal to attract and facilitate high-tech investments. To this, we need to begin working on absorbing foreign talents," the research panel added.Source:credit to [email protected]