The World Market Place Working with Foreign Companies Taiwan Experience

1. IAWP Annual Educational Conference International Panel The World Market Place Working with Foreign Companies Taiwan Experience Presented by Mei Chuan CHUANG Republic of China (Taiwan)

2. Outline • A Brief Introduction to Taiwan • Why Foreign Companies come in Taiwan • Impacts and Responses

3. A Brief Introduction to Taiwan • The 17th largest economy in the world • The 14th largest exporter • The 16th largest importer • The third largest holder of foreign exchange reserves, with over US$180 billion • World Competitiveness

4. World Competitiveness • #13 in 2008 (IMD World Competitiveness Yearbook) • #6 in 2008(Business Environment Risk Intelligence-BERI Profit Opportunity Recommendation) • #1 in 2007(World Economic Forum-WEF State of Cluster Development)

5. Why Foreign Companies Come in Taiwan • Geographical Advantages • Various Worldwide Leading Products Made by Taiwan • Abundant Capacity for Innovation and R&D Growth • Full Functioning of the Industrial Clustering Effect • Highly Educated Human Resource

6. Geographical Advantages

7. Various Worldwide Leading Products Made by Taiwan Source: MIC/III, January 2007

8. Abundant Capacity for Innovation and R&D Growth (1) U.S. Patents Granted (2) R&D Growth

9. Nankang Software Park • Software • Knowledge Industries • Hsinchu Science Park • Electronics and Information • Software • Optoelectronics • Central Science Park • Optoelectronics • Precision Machinery • Nanometer Materials • Aerospace • Yunlin Technology Industrial Park • Textiles • Optoelectronics • Southern Science Park • Optoelectronics • Machinery • Foodstuffs • Biotechnology • Environmental Protection • Kaohsiung • Petrochemicals • Steel • Electronics Full Functioning of the Industrial Clustering Effect

10. Highly Educated Human Resource • advantage is the second most important factor Population of 15 Years and Over by Educational Attainment • Literacy Rate: 97.63%(99.4% vs. 95.85%) • Illiteracy Rate: 2.37% • According to a survey • 63% for high quality human resources • Geographical advantage

11. Impacts • Talents competition-most office workers want job with foreign company • More than nine out of 10 white-collar workers in Taiwan would like to work for a foreign enterprise • High salary, good benefits, and broad opportunities" are main reasons. • 61% for believe they will have a better future, 58% for good benefits, and 51% for high wages

12. Impacts • New KASo • Language ability • Knowledge • Multicultural Sensitive… • New managerial concept and framework • Performance-based system • Working style

13. Competence-based HRP(cont.) • Armstrong (2001)-a competence-based integrated HRP Recruitment & selection HRD Performance management Competence framework Reward Management

14. The Company’s Core Competence • Management developed eight core competencies: • Customer Orientation • Teamwork • Initiative • Responsible • Result Orientation • Cost Control & Management • Industry knowledge • English Ability.

15. Employees’ Competence Gap

16. Responses • Attracting investment by establishing a free and open investment system, and by providing a good environment for corporate operations. • Providing key statistics, infrastructure, major business expenses, and related laws and regulations • Introducing incentive program • Delivering intensive training program focus on language and related knowledge and skills • International Trade Program

17. International Trade Program • Supplying an even balance of English language and trade courses • Full-time, six-month program is available to those who have or are receiving their bachelors

18. THANK YOU