In their "Look South" policy, Taiwanese investors can give more attention to the Supercorridor that will contact the export processing zones located in Kaohsiung in Taiwan and Clark and Subic in the Philippines. Such an integration of export processing zones do not clash with the One China policy being adopted by the Philippine Government. On the contrary, Taiwanese investors, who contribute the largest share of foreign direct investments (FDIs) in China, can better integrate their regional manufacturing operations if they can complement the strengths of China (cheap labor and efficient infrastructures) with those of the Philippines (productive middle-level manpower) and proximity to the growing Southeast Asian market (the AFTA).
I recommended to our policy makers to expand the concept of a supercorridor to agroprocessing export zones since Taiwan will increasingly have to import high-value food items because of the declining competitiveness of agricultural production in Taiwan, considering very scarce agricultural lands and high wages. With an annual per capital income of more than US$20,000 and the most equitable distribution income in the region, Taiwan will have an exploding demand for such high-value crops as vegetable, fruits, and livestock that can be produced in many agricultural provinces of Northern and Central Luzon. Taiwanese investors should be very active in transferring the highly productive technology of small-scale agriculture which has been the competitive advantage of Taiwan in the last quarter of the twentieth century. An example of this transfer of technology is that being implemented by a Philippine enterprise, Harbest, that is spreading Taiwanese methods of growing high-value vegetables and flowers. Taiwanese manufacturers of agricultural machinery, irrigation systems and similar farm-related capital goods should be encouraged under the Memorandum of Understanding in Agriculture and Aquaculture that was signed by the MECO and TECO representatives during my visit to Taipei.
At the educational level, the Taiwanese government grants scholarships to Filipino students to study in some of the leading Taiwanese universities. Mandarin-speaking Filipino students should especially pursue programs in which the Taiwanese educational institutions excel: microelectronics, biotechnology, management of small and medium-scale enterprises, logistics, air transport, and agribusiness.
An emerging trend is the increasing presence of private universities following the Philippine model, where more than 90 percent of university students are enrolled by private universities, profitmaking or non-for-profit. One of the newest private universities is KainanUniversity in the city of Taoyuen, where the Chang Kai Sek International Airport is located. Under the leadership of a very dynamic US-educated President, Dr. Michael Tang, Kainan University is rapidly evolving into an international university with a large number of Ph.D. holders from US and European universities among its faculty members.
For the School Year 2005-2006, Kainan University awarded a four-year tuition-fee scholarships to seventeen Filipino high school graduates from Philippine Science, Manila Science and St. Jude Catholic High School. These Filipino students from the core of the foreign student population in the all-English program that Kainan University has introduced to attract the best foreign students who may not yet be fluent in Mandarin. I met the first Filipino students in the program and was impressed by their quality. Those interested in the program may consult the website http://www.knu,edu.tw.
To parallel the advantages to the youth of closer Taiwan-Philippine relations are the benefits to the aging population of Taiwan of retirement villages, tourism resorts and health services that can be provided by the Philippines. Taiwan can benefit from the health, wellness and beauty sector that is being assigned a high priority in the investment priorities program of the Philippine Department of Trade and Industry. The widespread use of Fookienese among the Filipino-Chinese community can be an advantage in attracting the Taiwanese – most of whom speak this language – to be longer staying tourists in the Philippines. Taiwanese entrepreneurs should invest in retirement villages, hospitals, health farms and other related facilities that can cater to their aging fellow citizen. Taiwanese investors can be our partners in the health, wellness and beauty industry. For comments, my email is bvillegas@uap.edu.ph.
