Journal of ASEAN Studies, Vol. 3, No. 2 (2015), pp. 68-92 ©2015 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic Migration between Southeast Asia and Taiwan: Trends, Characteristics and Implications Ching-lung Tsay Tamkang University, Taiwan Abstract The migration of human resources between Southeast Asia and Taiwan is significant, indicating a close bilateral relationship. This study takes the perspective of economic development to examine the migration flows, aiming to explore the migration impacts of differences in societal development. Based on the Taiwan-Southeast Asia relative development status, the study further theorizes the possible migration trends between the two places. Empirically, the investigation focuses on major types of migration from Indonesia, the Philippines, Thailand, and Vietnam to Taiwan, including contract workers, immigrant spouses, professionals and the skilled, as well as students. The Taiwan to Southeast Asia migration covers mainly those migrants induced by Taiwanese investment. According to available information, the migration between Taiwan and Southeast Asia is rather asymmetric, with the Southeast Asia to Taiwan flows far more important than the counter flows. This fact indicates an advantageous position for Taiwan to cultivate relations with the migrant sending nations. It also provides a niche for every source country to work closely with Taiwan in migration management and migrant protection, for the interests of both the places of origin and destination. Keywords: International Migration, Migration and Development, Taiwan, Southeast Asia, Asymmetric Interaction Introduction With the trend of globalization and the improvement in transportation and communication technology, the number of people who can afford and are willing to migrate to other countries has substantially increased. The size of international migrants in the world increased by 37 percent and reached 214 million from 1990 to 2010. The big volume of cross-border migration provided with various development opportunities to both the source and the host countries. It also brought brand-new challenges to all nations involved in this process. Nowadays, the migration of population and the labour force has become a normal and permanent feature of most countries. As a result, the relationship between migration and national development has been regarded as Journal of ASEAN Studies 69 highly correlated. (Athukurola, 2006; IOM, 2008) Taking off circa mid-1960s and going through the early process of development in the 1970s, the Taiwan economy entered the stage of a mature economy with the emergence of surplus capital and shortage of workers in the 1980s. Consequently, Taiwan has since then become a target destination for workers from neighbouring less developed nations, who were looking for overseas employment opportunities. In the meanwhile, the source countries of workers in SE Asia are destinations of Taiwanese investment. With the investment, some capital-assisted professionals and skilled workforce such as business managers, production engineers, and market specialists, as well as their dependents were relocated to SE Asia. This movement represents a counter-flow of the labour migration from SE Asia to Taiwan. Since the 1990s, the international migration between SE Asia and Taiwan has gained momentum. This is particularly true in the part of migration to Taiwan, including contract workers, immigrant spouses, and foreign students. There are many significant changes in the size, composition, and characteristics of each type of migration. The trends and changes are important to SE Asia as a whole, and to major sending countries in particular. This fact has also received a great deal of attention from international organizations concerned about migration. Following the introductory section, this paper will discuss briefly the background of migration flows between SE Asia and Taiwan. Afterwards, the presentation will focus on (1) the migration of SE Asians to Taiwan, and (2) the migration of Taiwanese to SE Asia. The first part includes the four groups of contract workers, immigrant spouses, students, and professionals. The second part deals mainly with the capital-assisted migrants. The paper will conclude with a summary of major findings and some discussions on the implications of human interactions, in terms of migration, for regional cooperation and integration. Economic Development and Human Migration Due to differences in the level and speed of development among countries, the returns to the two major production factors (i.e., labour and capital) vary substantially from markets to markets. In order to obtain higher expected returns, the two production factors tend to move across countries. As a result, international labour migration (ILM) and foreign direct investment (FDI) have been integral parts of economic development. (Tsai and Tsay, 2012, 2004). As clearly indicated above, globalization is a facilitating factor of international migration of both labour and capital. In the past few decades, the accelerating movements of products (goods and services) and production factors (labour and capital) in the world represent solid evidence of globalization. Both ILM and FDI are phenomena induced by the market equilibrating forces. It had been 70 Migration between Southeast Asia and Taiwan experienced by many Western developed countries. Similarly, the large scale of ILM and FDI movements that have been occurring in East and SE Asia since the mid- 1980s also reflects the results of the market mechanism. According to the existing literature (e.g. Athukurola, 2006; Perkins, 2014; Tsay, 2003), Japan is often taken as the leader of the East Asian experience in economic development since 1960s. The first tier of followers includes the four Asian Dragons of South Korea, Taiwan, Hong Kong and Singapore, while the ASEAN-4 (Indonesia, Malaysia, the Philippines, and Thailand) and China are regarded as the second tier countries. Vietnam could be seen as a newcomer to join the second tier. Even though the level of development in Vietnam remains low, its growth rate has been rather high since the open-up of the economy in 1986. The third tier followers will surely be Cambodia, Laos and Myanmar on the mainland Southeast Asia. With the surge of FDI inflows, the three economies are expected to grow quickly in the near future. In the development process of East and SE Asian counties discussed above, the direction of FDI in the 1960s to the mid- 1980s was mainly from Japan to the four Asian Dragons. From the late 1980s onward, the four Dragons joined Japan in investing in the ASEAN-4 countries, China and Vietnam. The FDI flows have naturally induced some capital-assisted migrants. They consist chiefly of the professionals in manufacturing production and business management as well as their accompanying dependents. In terms of labour migration, Japan has been resistant in receiving unskilled workers despite the emergence of clandestine foreign labourers around 1980. The majority of foreign workforce in Japan has been with the legal status of students, trainees, and Japanese language learners. Among the Asian Dragons, Singapore, Taiwan, and Hong Kong opened their labour markets to foreign workers in the late 1980s or 1990s, whereas South Korea did not do so until 2000. Opposite to the direction of capital flows, the migration of blue-collar workers from ASEAN-4 (except Malaysia) and Vietnam to Asian Dragon countries is very significant. The volume is substantial and the rate of increase is high (IOM, 2008; Tsai and Tsay, 2004; Tsay 2002). In the mid 1980s, Taiwan entered the stage of labour shortage due to increases in national income as well as changes in demographic and economic structures, which in turn led to the emergence of foreigners illegally working for low-skilled jobs. Moreover, with the Taiwanese currency (New Taiwan Dollar) appreciated by some 40 percent in 1985-1990, the per capita income gap between Taiwan and some SE Asian nations reached 10-20 times, furthering the surge of SE Asian workers to Taiwan. By the end of the 1980s, the number was estimated at 50-125 thousand (Tsay, 1992). This big number of clandestine foreign workers brought great pressure to the Taiwanese authority to consider various responses, including the policy option of importing workers from abroad (Tsay, 2007, 1995a, 1995b). Journal of ASEAN Studies 71 In the late 1980s, the completion of several major public construction projects in Taiwan was seriously delayed due to lack of workers. As a result, the government granted in 1989 an ad hoc permission to import construction workers from Thailand to meet the need. Soon after that, the Employment Service Act of 1992 provided the legal base for labour importation and Taiwan formally started the policy of opening up its labour market to contract workers from SE Asia. Initially, the source countries were limited to Thailand, Malaysia, the Philippines, and Indonesia. Vietnam was added to the list in 1999 and quickly became an important one. In the meanwhile, the number of Malaysian workers decreased rapidly to become insignificant, due to its domestic economic development. (Tsay, 2007, 2002). In the following section, the presentation will be mainly on contract workers from the four major providers of Indonesia, the Philippines, Thailand and Vietnam. By the end of 2014, the total number of imported workers reached 550 thousand, not including the undocumented ones. Since the mid-1980s, many Taiwanese men have married SE Asian ladies and taken their brides to settle down in Taiwan. There are of course demographic and socio- economic factors behind this marriage migration (Tsay, 2008, 2004). The majority of the immigrant spouses from SE Asia are young females, with high capacity and strong incentives to work in Taiwan. Despite the fact that they are disadvantageous in Taiwan labour market, most of them are very aggressive in participating in economic activities, and willing to take the low end jobs (Tsay, 2008, 2007). Based on this fact, the immigrant spouses are similar to the contract workers, in the sense that they also reflect the development gap between Taiwan and SE Asia. Through marriages, the young SE Asian ladies are able to obtain the most direct and effective channel to have the legal status for working in Taiwan. The purpose of migration is clearly to pursue better economic life conditions and to obtain higher job opportunities and pay. By this way, the immigrant spouses could realize their individual (or family) economic expectations of their migration (Tsay, 2015). At the end of 2014, the number of immigrant spouse from Southeast Asia has reached 140 thousand. The major source countries are Vietnam (2/3), Indonesia, Thailand, the Philippines and Cambodia. The first four countries are exactly the providers of contract workers to Taiwan. This overlapping in places of origin indicates a high degree of similarity in the nature of the two different types of migration to Taiwan. The total number of contract workers and immigrant spouses has surged to 690 thousand in 2014. Not only are they important contributors to economic development in Taiwan, but also are important participants in major social activities. For many aged and disabled Taiwanese in particular, they are key care providers and household helpers. 72 Migration between Southeast Asia and Taiwan Migration from Southeast Asia to Taiwan Contract workers In the late 1970s and the first half of 1980s, the out-migration of SE Asian workers was mainly from the Philippines, Thailand, Indonesia, and Malaysia, heading for the Middle East countries. From the mid-1980s, however, the demand for foreign workers in the Arab nations decreased substantially due to the decline of oil prices and the outbreak of the Gulf War. In the meanwhile, the currencies of Japan and the four East Asian Dragons appreciated significantly after the signature of the Plaza Accord in 1985. As a result, the Southeast Asian workers started to bound for Japan and the Asian Dragon countries, where economic development was very impressive. Among the new destinations, Taiwan was particularly attractive due to the big increase in manufacturing production costs and the sharp appreciation of New Taiwan Dollar (Tsay, 2002, 1995b; Martin, Mason and Tsay, 1995). As shown in Fig. 1A, the number of Southeast Asian workers in Taiwan has continuously increased since the opening up of Taiwanese labour market in the early 1990s. The rate of increment was relatively much higher during the periods of Kuo Min Tang (KMT – Chinese National Party) government (before 2000 and after 2008) than those of the Democratic Progressive Party (DPP) government (2000-2008). The number was 2,999 in 1992, accounting for only 0.18% of the labour force in Taiwan. It jumped up quickly to 189,051 in 1995 and then almost doubled to 326,515 in 2000. In 2010, the number reached 379,653, representing for 3.7% of Taiwan labour force. It is clear that Southeast Asia has become an important source area of human resources for Taiwan. In 2000, the national composition of the contract workers reveal that Thailand is the dominant country (44%), to be followed by the Philippines (30%), Indonesia (24%), and Vietnam (2.4%). In the past decade, however, the number of Indonesian workers increased sharply and continuously, as Fig. 1B clearly depicted. Consequently, the latest available data as of April 2015 (Tables 1, 1A and 1B) reveal that Indonesia has taken the lead in terms of market share (42%), Vietnam was the second (28%), while the corresponding figures for the Philippines and Thailand dropped to 20% and 10%, respectively. As shown in Tables 1, 1A and 1B, the number (stock) of Southeast Asian contract workers in Taiwan is 572,555 at the end of April 2015. About 60 percent of them are employed in the industrial sector (with very high concentration (95%) in the manufacturing industry), while the remaining 40 percent in the service sector (Table 1A). The industrial sector consists of the agriculture and fishery industry, the manufacturing industry, and the construction industry. The service sector covers mainly the health care providers for the aged and the disabled as well as a small number of household service workers. Journal of ASEAN Studies 73 Figure 1A: SE Asian Contract Workers in Taiwan by Nationality, 1991-2015 Figure 1B: Contract Workers for Individual Countries, 1994- 2015 Source: Ministry of Labor, 2015 74 Migration between Southeast Asia and Taiwan Table 1: SE Asian Workers in Taiwan by Sector and Nationality, April 2015 Nation Sector Total Indonesia Philippines Thailand Vietnam Total 572,555 238,298 116,960 59,021 158,270 Industry Sector 344,706 57,510 90,720 58,385 138,088 Agr.+Fishery 10,491 8,955 1,439 19 78 Manufacturing 328,198 47,249 89,264 55,426 136,256 Construction 6,017 1,306 17 2,940 1,745 Service Sector 227,849 180,788 26,240 636 20,182 Health Care & House Services 227,849 180,788 26,240 636 20,182 Source: Ministry of Labor, 2015 Table 1A: Sector Composition (%) of SE Asian Workers by Nationality, April 2015 Nation Sector Total Indonesia Philippines Thailand Vietnam Sum (Number) 100.0 (572,555) 100.0 (238,298) 100.0 (116,960) 100.0 (59,021) 100.0 (158,270) Industry Sector 60.2 24.1 77.6 98.9 87.2 Agr.+Fishery 1.8 3.8 1.2 0.0 0.0 Manufacturing 57.3 19.8 76.3 93.9 86.1 Construction 1.1 0.5 0.0 5.0 1.1 Service Sector 39.8 75.9 22.4 1.1 12.8 Source: Ministry of Labor, 2015 Table 1B: Market Share of SE Nations in Taiwan’s Foreign Workers by Sector, April 2015 Nation Sector Total Indonesia Philippines Thailand Vietnam Sum (Number) 100.0 (572,555) 41.6 20.4 10.3 27.6 Industry Sector (Number) 100.0 (344,706) 16.7 26.3 16.9 40.1 Agr.+Fishery (Number) 100.0 ( 10,491) 85.3 13.7 0.2 0.7 Manufacturing (Number) 100.0 (328,198) 14.3 27.2 16.9 41.5 Construction 100.0 21.7 0.3 48.9 29.2 Journal of ASEAN Studies 75 (Number) ( 6,017) Service Sector (Number) 100.0 (227,849) 79.3 11.5 0.3 8.9 Source: Ministry of Labor, 2015 Each of the agriculture (including fishery) and construction industries employs only 1.8 and 1.1 percent of the total foreign workers. The data on sector composition of the contract workers by nationality further reveal a clear distinction for Indonesian workersfrom other nationals. Indonesians are highly concentrated in the service sector (76%), while workers from the other three countries are mostly engaged in the industrial employment (Table 1A). For the industrial sector, the data in Table 1B reveal that Vietnamese is the biggest group (market share of 40%), while Filipinos ranked the second (26%). Each of the Thai and Indonesian groups accounts for only 17 percent of the foreign workers in the industrial sector. This ranking holds true when only the manufacturing industry is considered. On the contrary, Indonesians dominate the market of the service sector (79%) while the market share of Filipinos and Vietnamese is 12 percent and 9 percent, respectively. Table 2 presents the gender composition of Southeast Asian workers in Taiwan, which is highly related to the industrial composition of the workers as discussed above. For the 572,555 SE Asian workers as a whole, the proportion male is 42 percent. In other words, more than a half (58%) of the total SE Asian workers in Taiwan are females. For individual countries, the smallest group of Thais has the highest percent male (83%), to be followed by the 63 percent of Vietnamese, while that of the biggest group (Indonesians) is the lowest (22%). When the employment sector is considered, the gender composition has changed significantly. The percentage of males is 70 percent for all the SE Asian workers in the industrial sector. This sector includes mainly the manufacturing industries (95%), and a small portion of the construction and fishery industries. All countries except the Philippines have high male proportion ranging from 72 to 89 percent. The corresponding figure for the Philippines is 46 percent due to the fact that more Filipino females than males are employed in the electronic manufacturing industries. On the contrary, the service sector which consists of mainly personal care for the aged and the disabled, is highly dominated by female (99%), as expected. Only minimum variation is observed among SE Asian countries. The number of Thais working in the service sector is trivial, accounting for merely 1 percent of the total. In short, Taiwan started to import contract workers from Thailand in 1989 to meet the need of national public construction projects. With the Employment Service Act of 1992, Taiwan formally opened her labour market to the selected SE Asian countries. Initially, only Indonesians, Malaysians, Filipinos and Thais were admitted to work in certain qualified industries in construction and manufacturing. However, the industrial 76 Migration between Southeast Asia and Taiwan limitation was rapidly relaxed in the 1990s. By the end of the last century, the importation schemes had covered virtually all kinds of manufacturing and construction industries (Tsay, 1995b). As a result, the total number of foreign workers jumped from 3,000 in 1992 to 190,000 in 1995 and 326,000 in 2000. They took over the 3K (or 3D – dirty, difficult and dangerous) jobs left by Taiwanese workers. Table 2: Gender Composition of SE Workers in Taiwan by Nationality and Employment Sector, April 2015 Nation Sector Total Indonesia Philippines Thailand Vietnam Total (person) 572,555 238,298 116,960 59,021 158,270 % Male 42.4 21.9 35.7 82.7 63.2 Industry Sector 344,706 57,510 90,720 58,385 138,088 % Male 69.9 88.9 45.6 83.5 72.2 Service Sector 227,849 180,788 26,240 636 20,182 % Female 99.2 99.4 98.4 88.1 98.7 Source: Ministry of Labor, 2015 The number of SE Asian workers in Taiwan was kept rather stable in the first decade of the 21st century (351,000 in 2009). However, the proportion working in the industrial sector decreased, while the percentage in the service sector increased due to the rapid population ageing in Taiwan. Since 2009, the size of foreign workers has surged up again probably because of the difficulties encountered by the manufacturing industries during economic downturns. It is clear that the international relations between Taiwan and each of the four SE Asian countries have been on the rise, as evidenced by the trend of labour migration. In the meanwhile the relative importance of individual labour sending nations has changed substantially. Indonesia is now the biggest provider of workers (esp. care takers) to Taiwan, to be followed by Vietnam and the Philippines. Thailand, the lead country in the 1990s, now provides only 10 percent of the total contract workers in Taiwan. Immigrant Spouses International marriages had not been common among Taiwanese until the mid-1990s. With the lift of the Martial Law in 1987 and the trend of economic globalization, an increasing number of Taiwanese men went abroad to find brides in China and SE Asia, and then brought them back to settle down in Taiwan (Tsay, 2004). Between 2001 and 2014, the Taiwanese household registration data (Table 3) reveal that more Taiwanese men than women got married (2,008,943 v.s. 1,714,825), and more males than females married to non-Taiwanese (348,576 v.s. Journal of ASEAN Studies 77 54,458). As a result, the proportion female of the 403,034 immigrant spouses is as high as 86 percent. Their major places of origin are China (56%) and SE Asia (33%). The records reflect the fact that in the past 14 years many Taiwanese men married to Chinese and SE Asian ladies. The brides tended to be much younger and less educated than grooms (Tsay, 2004). In the 1990s, the inter-married males were mostly disadvantageous in terms of age, socio- economic status, or even physical conditions. In recent years, however, the negative selectivity of grooms in the inter- marriage has gradually diminished. Table 3: Grooms and Brides Registered in Taiwan, 2001-2014, by Nationality All Nations Taiwan Non-Taiwan China Hong Kong & Macau SE Asia Others Total 4,126,802 3,723,768 403,034 227,141 7,026 131,632 37,235 100.0% 90.2% 9.8% 5.5% 0.2% 3.2% 0.9% Grooms 2,063,401 2,008,943 54,458 10,976 3,360 9,529 30,593 100.0% 97.4% 2.6% 0.5% 0.2% 0.5% 1.5% Brides 2,063,401 1,714,825 348,576 216,165 3,666 122,103 6,642 100.0% 83.1% 17.9% 10.5% 0.2% 5.9% 0.3% Source: Department of Household Registration, Ministry of the Interior, 2015 Table 4 provides further information on the original nationality of the immigrant spouses residing in Taiwan at the end of 2014. China (including Mainland, Hong kong and Macau) accounts for about two thirds of the total immigrant spouses, while the share of SE Asian nations is 28 percent. Among the SE Asian countries, Vietnam is the biggest provider (65%), to be followed by Indonesia (20%), and then Thailand (6%), the Philippines (6%), and Cambodia (3%). In addition to the direct effect on the population size and composition, the immigration of foreign spouses could have various impacts on the host society of Taiwan. For example, the immigrant spouses from different cultural backgrounds could have adjustment difficulties due to differences in personal life and family experiences. These impacts and problems represent one kind of holistic social fact that the immigrant spouses, their family members and the general public of Taiwan have to face and deal with together. 78 Migration between Southeast Asia and Taiwan Table 4: Number of Immigrant Spouses in Taiwan by Nationality, End of 2014 Country Number % As % of SE. Asia Total 498,368 100.00 SE. Asia 140,061 28.10 100.00 Vietnam 91,004 18.26 64.97 Indonesia 28,287 5.68 20.20 Thailand 8,467 1.70 6.05 Philippines 8,021 1.61 5.73 Cambodia 柬埔寨 4,282 0.86 3.06 China 337,028 67.63 China Mainland 323,358 64.88 Hong Kong & Macau 13,670 2.74 Others 21,279 4.27 Source: Information Network of the Ministry of the Interior, 2015. The yearly data in Table 5 on marriage registration and foreign spouses show some major changes during 2001- 2014. As mentioned earlier, international marriages became more and more common in Taiwan in the mid and late 1990s. Before that, the percentage of inter-marriages in the total marriages was around 5 percent or less. The proportion went up rapidly in the 1990s and reached 27 percent in 2001. Table 5 shows a peak of 32 percent of the proportion in 2003. It dropped to 24 percent in the next year, and then to 15.5 percent in 2010. In 2013 and 2014, only 13 percent of the total registered marriages in Taiwan are with foreigners. The numbers on foreign spouses by nationality in Table 5 clearly reveal that the decline in inter-marriages is due to both the decline in marriages with Chinese (from around 30,000 to 10,000) and the decrease in marriages with SE Asians (from around 18,000 to 5,000). On the contrary, there are substantial increases in marriages with people from Hong Kong and Macao (about 3 times) and from the rest of the world (about 50%). The declining trend of immigrant spouses indicates, at least on the surface, an evident slow- down in the hot fashion of international marriages occurred in the late 1990s and the early 2000s. Nevertheless, the current level of 13 international marriages per 100 total registered marriages remains high for Taiwanese as seen from the historical records in the early 1990s. The immigrant spouses, especially those females from SE Asia, have enhanced the existing multicultural configuration in Taiwan. They also affected the processes of social reproduction and economic production, because of the closeness between the marriage market and the labour market. In the case of international Journal of ASEAN Studies 79 marriages, the relationship is further influenced by the state policy and the social relation of production (Huang and Yeoh, 1999). The female immigrant spouses in Taiwan have served not only the need of reproduction of the society, but also the need of economic production of the country. On the one hand, they gave births and played the multiple roles of wives, mothers, and daughter-in-laws. On the other hand, they filled up the gap of labour shortage in the production system. The immigrant spouses usually took jobs in the secondary labour market which are characterized with low pay and low status. At the same time, the immigrant spouses have been deep in the society and families of Taiwan. They could be significant players in the human interactions between Taiwan and their countries of origin. Table 5: Number of Total Marriages and Foreign Spouses by Nationality, 2001-2014 Year Total Marriages (A) Foreign Spouses Foreign Spouses by Nationality No. (B) (B)/(A) (%) China Mainland H.K. M.K. SE Asia Others 2001 170,515 46,202 27.10 26,516 281 17,512 1,893 2002 172,655 49,013 28.39 28,603 303 18,037 2,070 2003 171,483 54,634 31.86 34,685 306 17,351 2,292 2004 131,453 31,310 23.82 10,642 330 18,103 2,235 2005 141,140 28,427 20.14 14,258 361 11,454 2,354 2006 142,669 23,930 16.77 13,964 442 6,950 2,574 2007 135,041 24,700 18.29 14,721 425 6,952 2,602 2008 154,866 21,729 14.03 12,274 498 600,9 2,948 2009 117,099 21,914 18.71 12,796 498 5,696 2,924 2010 138,819 21,501 15.49 12,807 525 5,212 2,957 2011 165,327 21,516 13.01 12,800 663 4,887 3,166 2012 143,384 206,00 14.37 12,034 679 4,784 3,103 2013 147,636 19,492 13.20 10,829 713 4,823 3,127 2014 149,287 19,701 13.20 10,044 942 5,466 3,249 Source: Information Network of the Ministry of the Interior, 2015 Professionals and the Skilled Comparing to the 570 thousand contract workers at the end of April 2015, the number of foreign professionals and the skilled in Taiwan is rather small. According to the data on person-times of effective employment permits (Table 6), the corresponding figure for the professionals 80 Migration between Southeast Asia and Taiwan and skilled is no more than 28,668. In terms of category of application, the biggest group is the professionals and skilled jobs (including CEO/Managers of MNC and FDI companies), accounting for over 60 percent of the total. The second biggest group is teachers (mainly English) in regular and cram schools (27%). In terms of national composition of the professionals and skilled, Table 7 shows a heavy concentration of Japanese (29%) and Americans (19%). Among the SE Asian countries, Malaysia has the largest share of 6.6 percent, to be followed by the Philippines (4%). The share for each of Indonesia and Singapore is around 2 percent, while the proportion for Thais is barely 1 percent. The fact that not many SE Asian professionals and the skilled are working in Taiwan deserves great attention for the host country. On the demand side, Taiwan as a semi-periphery country in the world system is not easy to attract professionals and technicians from other semi-periphery countries, not to mention core countries. Usually, they come with FDI from their countries. Yet the global FDI flows have bounded mainly for the huge market of China and the relatively low labour cost SE Asian nations in recent years. On the supply side, the development of higher education is still at an early stage in many Southeast Asian countries. For these reasons, Taiwan has been working aggressively to attract SE Asian students to pursue advanced studies in Taiwan with a hope that some of them will work as professionals in Taiwan in the future. The next sub-section will further elaborate this endeavour. Table 6: Person-times of Effective Employment Permits Issued between April 2014 and April 2015 by Category of Application Category of Application End of Apr. 2014 End of Apr. 2015 ((2)-(1))/(1) (%) Total 27,676 28,668 3.58 Professional + Skilled Jobs 14,862 15,565 4.98 Teachers in cram schools 5,187 5,069 - 2.27 Teachers in schools 2,730 2,615 - 4.21 Religion, Art and Performance Jobs 1,408 1,825 29.62 CEO/Managers of FDI Companies 2,059 2,196 6.65 Taking contracts 1,384 1,348 - 2.60 Coaches + Athletic Jobs 46 50 8.69 Source: Ministry of Labor, 2015. Journal of ASEAN Studies 81 Table 7: Number of Applications and Employment Permits of Foreign Professionals and the Skilled by Nationality, 2004-April 2015 Nation Cumulative Application Cumulative Employment Permits Effective Employment Permits Effective Permits (country %) Total 397,629 383,562 28,668 100.00 Japan 90,964 88,978 8,439 29.43 USA 67,453 65,207 5,501 19.19 Canada 27,688 26,712 1,165 4.06 UK 20,180 19,654 1,116 3.89 Philippines 15,485 14,870 1,143 3.98 Malaysia 15,622 14,551 1,884 6.57 South Africa 11,721 11,299 531 1.85 Korea 13,137 12,646 909 3.17 Germany 11,299 11,041 449 1.57 Russia 10,029 9,826 479 1.67 India 10,100 9,633 1,081 3.77 Australia 7,763 7,523 422 1.47 Thailand 8,404 7,833 265 0.92 Hong Kong 8,731 8,203 694 2.42 France 7,637 7,382 569 1.98 Indonesia 6,664 6,414 632 2.20 Singapore 6,213 5,909 542 1.89 Others 58,239 55,881 2,847 9.93 Source: Ministry of Labor, 2015 Foreign Students Before the 1980s, the focus of internationalization of higher education was placed on culture and student exchanges. Due to accelerating globalization and the market-oriented considerations, the internationalization of higher education started in late 1980s to take the political- economic approach and to emphasize the importance of economic development and national competitiveness. At the same time, the degree of internationalization in higher education was taken as an important indicator of international competitiveness. As such, a major consideration for many countries to internationalize higher education has been on how to attract foreign students and to help these talents find employment in the host societies. 82 Migration between Southeast Asia and Taiwan The Taiwan government has since 2004 adopted various policies to encourage local students to pursue higher education abroad and initiated many programs to facilitate students to be more internationalized. At the same time, the government also launched the policy of recruiting students from abroad to take higher education in Taiwan. One of the major endeavours is the set up of the Foundation for International Cooperation in Higher Education of Taiwan (FICHET) in 2005 and its ESIT (Elite Study in Taiwan) project put out in 2008. However, it is a fact that the export of higher education services is embedded in the power structure of the world system. It would be difficult for Taiwan, as a semi-periphery country, to sell higher education services to the core countries, or even to other semi- periphery nations. The relatively possible destinations of the export would be the neighbouring periphery states. Consequently, the education export programs of Taiwan have almost completely targeted at the developing countries in SE Asia. There are other reasons for Taiwan to focus on the SE Asian markets of higher education. They include: (1) low rate of enrolment in the tertiary schools (average gross rate of < 20%) in these countries, (2) geographic proximity and cultural similarity to Taiwan, (3) a big number of ethnic Chinese population, and (4) solid relations in economic activities with Taiwan, including trade, investment, and labour migration. Taiwan has been expecting to act as an international incubation center for the high-level manpower of SE Asia. The final aim is to be more integrated with the SE Asian community. For this reason, Taiwan would like to strengthen the interactions with SE Asian countries through academic exchanges and the training of professionals and the skilled workforce. An initial step toward this end is to increase the recruitment of Southeast Asian students to Taiwan for pursuing higher education. According to official statistics of the past ten academic years (Table 8), the major source countries of SE Asian students in Taiwan are Vietnam (24,629), Malaysia (18,674) and Indonesia (17,841). These three countries together account for 85 percent of the total SE Asian students (72,464). The size of Vietnamese students was below 1,000 in the first two academic years, but increased rapidly since then to be over 3,000 in the last five years. The rate of increase has also been high in the case of Malaysia, while the number of Indonesian students remains more stable. The increasing trends shown in Table 8 reflect some results of the efforts that Taiwan has made since the early 2000s in attracting students from SE Asia. There are, of course, still rooms for further improvement, as the numbers for some countries remain either very small or not much increasing. Journal of ASEAN Studies 83 Table 8: Southeast Asian Students in Taiwan by Nationality, 2005~2015 Year Nation 2005~ 2006 2006~ 2007 2007~ 2008 2008~ 2009 2009~ 2010 2010~ 2011 2011~ 2012 2012~ 2013 2013~ 2014 2014~ 2015 Total Myanmar 80 57 79 47 33 17 17 14 7 47 398 Cambodia 29 57 36 24 14 6 8 5 3 2 184 Indonesia 1,394 1,555 1,658 2,056 1,492 1,524 1,706 1,923 2,183 2,350 17,841 Laos - - - - - 2 1 - 1 2 6 Malaysia 425 671 872 1,001 1,560 1,961 2,286 2,722 3,420 3,756 18,674 Philippines 164 197 252 302 313 292 336 338 411 430 3,035 Singapore 22 45 71 67 103 99 122 109 140 132 910 Thailand 332 379 487 549 637 760 848 814 972 1009 6,787 Vietnam 671 836 1,276 1,779 2,592 3,282 3,687 3,706 3,428 3,372 24,629 Total 3,117 3,797 4,731 5,825 6,744 7,943 9,011 9,631 10,565 11,100 72,464 Source: Department of Statistics, Ministry of Education Table 9 presents data on SE Asian students in Taiwan by gender and area of specialization for the 2013-14 academic year. Among the total 11,100 SE Asian students in Taiwan, slightly more males (53%) than females (47%), and a quarter of the total enrolled in Mandarin language programs (1,111 males and 1,701 females). The proportion of students engaged in pursuing higher education degrees is over 70 percent, representing a significant increase in the recent years. In the early 2000s and before, about a half or more of the SE Asian students came to Taiwan mainly for learning Mandarin. The higher percentage of students enrolled in degree programs means an improvement in the internationalization of higher education (Huang, 2006). In other words, Taiwan has made progress in the export of educational services to some developing nations in SE Asia. The total number of degree students (close to 8,300) is rather evenly distributed by gender, but unequally spread out in terms of area of specialization (Table 9). Slightly over two thirds of them major in the fields of humanities, social sciences, and business, while the rest in natural sciences and engineering. As expected, the former group is consisted of more females (58%), while the later group is more represented by males (65%). For individual countries, Indonesia is distinctive in having a high percentage of non-degree language students. Among the degree students, Indonesians are also unique in having more studying natural sciences and engineering than studying social sciences and business. On the contrary, Malaysians are 84 Migration between Southeast Asia and Taiwan characterized with a very low proportion of language students (2.3%), but a high concentration in social sciences and business among the degree students. To a less extent, degree students from Vietnam are also more enrolled in the fields of social sciences and business. Human Migration from Taiwan to Southeast Asia Capital-assisted Migration With economic globalization, Taiwan has attracted a big number of migrant workers and spouses from SE Asia in the past two decades. The sending countries of the migrants have also been destinations of outward FDI from Taiwan. In fact, Taiwan started to invest substantially in the ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand), China and Vietnam in the mid-1980s. There are two important contributing factors: (1) the sharp appreciation of Taiwan currency after the Plaza Accord of 1985, and (2) the relaxation of tight foreign exchange regulations in 1987. In 1994, 1997, and 2002, Taiwan initiated three waves of ‚Go-South Policy‛ in order to reduce the concentration of investment in China and to avoid the over-dependence on Chinese economy. Table 9: Number of Southeast Asian Students in Taiwan by Gender and Specialization, 2013~2014 Academic Year Area of Specialization Country Gender Total Mandarin Language Humanities + Social Sciences Business, Law, Services General Science, Engineering Life Science Total 11,100* 2,812 2,552 3,104 1,974 655 Male 5,172* 1,111 997 1,359 1,434 271 Female 5,928* 1,701 1,555 1,745 540 384 Myanmar 47 42 1 2 - 2 %Male 34.0 35.7 - - - 50.0 Indonesia 2,350 976 213 445 564 155 %Male 44.9 41.0 25.8 39.1 65.2 36.8 Malaysia 3756 85 1619 1,180 600 262 %Male 52.9 42.4 44.0 53.1 83.7 42.0 Philippines 430 292 16 43 64 15 %Male 52.3 51.7 50.0 41.9 65.7 40.0 Singapore 132 32 76 10 5 9 %Male 28.8 31.3 23.7 40.0 80.0 22.2 Thailand 1,009 461 135 219 80 114 %Male 34.5 35.1 30.4 26.9 48.8 41.2 Vietnam 3,372 922 491 1,208 661 90 %Male 44.6 36.6 33.0 39.6 72.5 53.3 Note: * including 2 females from each of Cambodia and Laos Journal of ASEAN Studies 85 Source: Department of Statistics, Ministry of Education, 2015 In the meanwhile, SE Asian countries adopted more open policies toward FDI and provided various incentives to attract foreign capital. As a result, Taiwanese investment in SE Asia increased significantly. With the capital flows, a certain number of management specialists and production engineers and technicians, as well as some of their dependents, moved to the capital receiving countries. They formed a counter flow of the migration of contract workers and immigrant spouses from SE Asia to Taiwan. The size of the capital-assisted migrants from Taiwan to SE Asia has never been clearly known. It is believed that the number became substantial around 1990 and reached 100,000 in the 1990s (Wang, 2003). In 2001, it was estimated that the number of Taiwanese businessmen (‚Tai Shang‛) in SE Asia is about 300,000 (Chen, 2012). However a high percentage of them entered the destination countries with (short term) visitor visas. As a result, the volume of ‚Tai Shang‛ in SE Asia was estimated as small as 50 to 60 thousand (Ku, 2006). The geographic distribution of the ‚Tai Shang‛ has significantly changed over time, reflecting the shift of investment areas. Initially, Malaysia and Thailand were the major receiving countries, to be followed by Indonesia and the Philippines. In recent years, Vietnam has overtaken other SE Asian countries due to lower wage level. Indonesia and the Philippines are the next important new destinations, while the number of ‚Tai Shang‛ in Thailand and Malaysia has been stabilizing. It is indeed a serious limitation in migration studies that Taiwan does not have adequate data on migration of her nationals to other countries. As the constitution protects the right of free movement of the people, no information on country of destination, status of visit, and length of stay abroad can be collected after Taiwanese citizens have exited Taiwan. However, it is clear that the number of capital-assisted migration from Taiwan to SE Asia is rather substantial, probably in the range of a few hundred thousand to almost a half million. With the continuing inflows of Taiwanese capital, the size of the capital- assisted migration to SE Asia will keep growing (Song, 2012; Peng, 2008). Student Migration Traditionally, the general direction of student migration is mainly from the less developed countries (LDCs) to the more developed countries (MDCs), or between MDCs. In recent years, the number of MDC students to study in LDCs has started to increase. According to the data on student visas in Table 10, the number of Taiwanese students going to study abroad increased from 29 thousand in 1999 to 52 thousand in 2014. However, the destination of the student migration out of Taiwan in 1999- 2014 is highly concentrated in American 86 Migration between Southeast Asia and Taiwan countries (52%), to be followed by European countries (25%), Oceania (13% mainly Australia and New Zealand) and Asia (10%, mainly Japan). Southeast Asia accounts for only 1.3 percent of the total student migration from Taiwan. Among the 7,680 students went to study in SE Asia, Singapore is the top receiving country (3,624), while the number for each of Thailand (1,564) and Malaysia (1,170) is much smaller. The remaining SE Asian countries received only a few Taiwan students (Vietnam and the Philippines), or no students at all (e.g., Indonesia). Table 10: Number of Student Visas Issued to Taiwanese by Destination, 1999~2014 Nation 1999-2003 2004-2008 2009 2010 2011 2012 2013 2014 Total Total 154,162 176,545 33,629 33,881 32,346 57,859 49,219 52,031 589,672 Asia 12,027 14,334 3,912 4,313 3,963 7,192 6,948 8,964 61,653 SE Asia 2,808 1,708 95 150 170 273 290 2,186 7,680 Philippines 418 - - - - 418 Singapore 2,184 1,440 - - - 3,624 Thailand 206 268 95 150 170 214 214 247 1,564 Malaysia 59 76 1,035 1,170 Vietnam 904 904 America 80,244 93,896 17,914 18,705 16,936 28,167 26,133 24,516 306,511 Europe 46,529 52,693 7,150 6,830 7,555 9,101 7,479 8,984 146,321 Africa 236 111 8 21 - - - - 376 Oceania 15,126 15,511 4,645 4,012 3,892 13,399 8,659 9,567 74,811 Source: Ministry of Education, 2015 Table 11 presents data on student migration between Taiwan and SE Asian countries in 1999-2014. It is evident that the Taiwan-SE Asia interaction in terms of student migration is highly asymmetrical, with the size of SE Asian Students in Taiwan more than 11 times the number of Taiwanese students in Southeast Asia as a whole. At the national level, all countries except Singapore are characterized with net student migration to Taiwan. The size of the net migration is particularly large for Indonesia (26,212) and Vietnam (25,326), to be followed by Malaysia (18,383) and Thailand (6,386). Journal of ASEAN Studies 87 Table 11: Student Migration between Taiwan and Southeast Asian Countries, 1999~2014 Country SE Asians in Taiwan Taiwanese in SE Asia Net Migration Myanmar 667 - 667 Cambodia 202 - 202 Indonesia 26,212 - 26,212 Laos 9 - 9 Malaysia 19,553 1,170 18,383 Philippines 3,843 418 3,425 Thailand 7,950 1,564 6,386 Vietnam 26,230 904 25,326 Singapore 1,006 3,624 -2,618 Total 85,672 7,680 77,992 Source: Department of Statistics, Ministry of Education, 2015. Concluding Remarks Historically, Taiwan has been a society of migrants. In many time periods, immigration was an important component of the population growth in Taiwan. In the past three decades, Taiwan experienced rapid social changes, economic development, political democratization, and demographic transition. As a result, Taiwan entered the stage of labour shortage and attracted migrant workers from SE Asia. By April 2015, the total number of SE Asian contract workers in Taiwan is 570 thousand. Indonesia is the lead sending country, while Vietnam, the Philippines and Thailand are also key providers. The workers have efficiently filled up the labour shortage and contributed significantly to the economic and social development in Taiwan. Their time and efforts deserve to be highly appreciated. From the mid-1990s, more and more SE Asian females married to Taiwanese and migrated to Taiwan, with the hope of getting higher standard of living and better working conditions and rewards. At the end of 2014, the number of immigrant spouses reached 140 thousand. The major source countries are Vietnam (2/3) and Indonesia (20%). The countries of origin of the immigrant spouses and the migrant workers are virtually the same. The female immigrant spouses mostly got married at rather young ages. They have high rates of participation in economic and family activities and contribute significantly to household work, care for children and the aged, and family business. Many of them even supplement their family income by working as wage earners in the labour market. The immigrant spouses have played an important role in their own family lives as well as in the economy and society of Taiwan (Tsay, Cheng and Huang, 2012). The labour migration and the marriage migration discussed above represent important human interactions 88 Migration between Southeast Asia and Taiwan between Taiwan and major SE Asian countries in the past 2-3 decades. The two types of migration also account for the major part of immigration to Taiwan except that from China. In 2001-2010, the number of immigrants (excluding those from China) almost doubled (from 470,000 to 820,000). Migrant workers (all SE Asians) and immigrant spouses (90% are SE Asians) together account for 90 percent of the total increment in population inflows to Taiwan. It is clear that SE Asian countries have played key roles in the human interactions between Taiwan and other countries. This particular relationship should be well appreciated and properly utilized. With the globalization of higher education, Taiwan has made great efforts to attract student migration from SE Asia in the past decade. Between the academic years of 2005-06 and 2014-15, the total number of SE Asian students in Taiwan is over 72 thousand. The list of major sending countries is almost exactly the same as that of migrant workers and immigrant spouses. The student migration has just added a new key dimension to the existing interactions between Taiwan and the places of origin of migrants in SE Asia. Compared to migrant workers and immigrant spouses, or even foreign students, the number of professionals and the skilled from the whole world to Taiwan has been small and stayed at slightly over 20 thousand. The proportion from SE Asia is only 16 percent, mainly from Malaysia and the Philippines while the number from each of Indonesia, Singapore and Thailand is less than 1,000. There is plenty of room for improvement in this area. It is hoped that the recent increase in SE Asian students in Taiwan will bring some of them to stay and work in Taiwan. Due to differences in the level of economic development, the human migration from Taiwan to SE Asia is much less popular than that of the opposite direction. One major component of the Taiwan-SE Asia migration is the capital- assisted migrants (Tai Shang). It is believed that the number of ‚Tai Shang‛ is in the range of 50 to 60 thousand. The total number of Taiwanese (including dependents) in SE Asia could be 2 or 3 times that of ‚Tai-San.‛ There are a few thousand Taiwanese students in SE Asia, some of them are in fact dependents of ‚Tai Shang‛ The size of student migration from Taiwan to SE Asia is much smaller than the flow of SE Asian students to Taiwan. In summary, the human interactions in terms of migration between Taiwan and SE Asia in the past 2 to 3 decades are highly asymmetrical. For each type of migration, the main flow of SE Asians to Taiwan is much more significant than the flow of the opposite direction. The most important type is the migration of contract workers, who are admitted to Taiwan based on employment. Even for the marriage migration, job considerations are also often observed in various cases and mentioned by many immigrant spouses. To some extent, the marriage migration can be seen as a special type of labour migration. In Taiwan, the majority of workers and spouses from SE Asia can realize their migration expectations. They also efficiently solved the problem of severe labour shortage in Taiwan. The result is good for all parties including the individuals (workers and spouses as well as their families), the Journal of ASEAN Studies 89 employers, as well as the sending and receiving countries. The asymmetry in human migration between SE Asia and Taiwan means an advantage to Taiwan in managing bilateral relations with each of the labour source countries. For example, Taiwan is one of the most important host countries of out- migrants from SE Asian countries. Taiwan receives 25-30 percent of the total number of workers sent out by Vietnam. The corresponding figure for Indonesia is about 20 percent while that for the Philippines is 4 percent. For Thailand, Taiwan used to receive as high as 60 percent of the total Thai labour export. With the decline of Thai workers going abroad in general and to Taiwan in particular, the proportion has declined to the current level of below 40 percent. The remittances that the SE Asian workers took back home from Taiwan have contributed significantly to the improvement of economic status of their family members. The inflow of remittances is also a key component of foreign income for the labour sending countries. It is a fact that Taiwan has made great efforts in improving the systems of recruiting, managing, and utilizing the contract workers from Southeast Asia. There are still some shortcomings, nevertheless, in the design of various programs and in their enforcement. Consequently, there are still cases of illegal brokers, labour exploration, and mistreatment and abuses. There are also quite some numbers of workers running away from their contracts. These irregularities have resulted in problems of worker protection and social safety. All the difficulties could be much easier solved with appropriate cooperation between the labour sending countries and the host society of Taiwan. The international community has been urging the establishment of some regional mechanisms to enhance smooth operations of international labour migration (IOM, 2008). If the rights and benefits of migrants, and migrant workers in particular, could be properly protected, the cross-border movement of people would benefit individual migrants, sending and receiving countries, simultaneously. About the Author Ching-lung Tsay is a professor at the Institute of Asian Studies and in the Department of Diplomacy and International Relations, Tamkang University, Tamsui, Taiwan. With a Ph.D. degree from Brown University, USA, his areas of interest include development studies, international political economy, population and human resources, and Southeast Asian studies. The author can be contacted at: ctsay200@yahoo.com Note Some materials presented in this paper were utilized for a keynote speech entitled ‚Growth and Structural Change of Indonesian Migration to Taiwan: Significance and Implications‛ which was delivered by the author at the 4th ICOBIRD (International Conference on Business, International Relations and Diplomacy) on ‚Migration and Mobility in Asia and Beyond‛ held at Bina Nusantara University mailto:ctsay200@yahoo.com 90 Migration between Southeast Asia and Taiwan in Jakarta on 3 Nov. 2015. An earlier version of this paper was presented at The Fourth Chinese-Thai Strategic Research Seminar held at Huaqiao University in Xiamen, China on 27-29 July 2015. 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