Taiwan faces complex challenges like other Asia-Pacific nations, including demographic decline, income inequality and climate change. In fact, its challenges might be even more pressing.
The nation struggles with rising income inequality, declining birthrates and soaring housing costs while simultaneously navigating intensifying global competition among major powers. To remain competitive in the global talent market, Taiwan has been working to create a more welcoming environment and legal framework for foreign professionals. One of the most significant steps in this direction was the enactment of the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) in 2018.
Subsequent amendments in 2021 and 2023 aimed to make Taiwan’s migration and employment regulations more foreigner-friendly. The revised law has relaxed work, visa and residency requirements, enhanced tax and social benefits, and simplified entry processes for foreigners. It also includes strategies to coordinate talent retention efforts by targeting critical industries and improving the overall quality of life for expatriates in Taiwan.
However, the nation’s strategy for attracting foreign talent has faced criticism, particularly regarding its focus on high-income professionals. Critics argue that this approach neglects the needs of early-career professionals, who are essential for Taiwan’s small and medium-sized enterprises (SMEs). SMEs face significant challenges in attracting foreign talent, and many are hesitant to hire foreigners due to complex legal frameworks. Given their crucial role in Taiwan’s economy, failing to address their needs could hinder the government’s efforts to attract and retain foreign talent.
The nation’s focus on attracting top-earning professionals has also affected foreign graduates of Taiwanese universities. These graduates, having already spent at least two years in Taiwan, are well-adapted to the local culture and society. However, low salaries and an unfriendly working environment in SMEs often push them to seek career opportunities elsewhere.
The emphasis on high-level talent is not limited to the private sector. Research and academic institutions such as Academia Sinica and leading universities also prioritize hiring senior researchers and experienced faculty members. While this approach is understandable, such professionals can receive better salaries, benefits and accommodations in other developed countries. As a result, Taiwan struggles to attract and retain foreign academics beyond short-term visiting fellowships.
One of the most effective ways to attract foreign talent is to retain those who are already in Taiwan. Every year, hundreds of international students come to the nation for undergraduate and graduate studies. The recent extension of the employment-seeking visa to two years is a commendable step, as Taiwan’s job market is not as dynamic as other East Asian countries, and finding a decent job can take months.
However, significant issues remain. While students in Taiwan are allowed to work part-time with a special work permit, those transitioning to an employment-seeking visa face confusion and bureaucratic hurdles.
When I attempted to change my visa after completing my studies, the National Immigration Agency informed me that I could still work part-time, but needed to apply through the Ministry of Labor. Upon inquiry, ministry staff told me there was no part-time work permit option under this visa. Considering the language barrier, I asked a Mandarin speaking friend to call the ministry, and she was told that she needed to contact the Ministry of Foreign Affairs’ Bureau of Consular Affairs, and the response was equally unclear. This lack of coordination between government offices highlights the challenges early-career professionals face and contributes to frustration among potential long-term residents.
Furthermore, the absence of clear part-time work options during the job search period can push foreign graduates toward illegal employment, often in cram schools, which wastes their potential and exposes them to exploitation. Without legal avenues to sustain themselves, many talented individuals are forced to leave Taiwan, without waiting for substantial job-seeking periods like the aftermath of the Lunar New Year.
If Taiwan aims to become a true hub for foreign talent, its policies must be more inclusive and extend beyond high-income professionals. Easing self-issued work permits for recent graduates and providing part-time work opportunities under the employment-seeking visa would be a good first step. The two-year visa is an exceptional practice that should be complemented by an equally exceptional support system.
Taiwan is set to become a super-aged society this year, coupled with a significant domestic brain drain. To stay competitive globally, the government must take serious, comprehensive and coordinated actions, and attract and retain foreign talent at all levels. Balancing policies for high-level professionals and support for early-career specialists and international students are crucial for building a sustainable talent ecosystem.
Harun Talha Ayanoglu is a research associate at the Taiwan Center for Security Studies.
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