Home Economy Taiwan considering direct hiring to cut costs for Filipino workers

Taiwan considering direct hiring to cut costs for Filipino workers

Taiwan considering direct hiring to cut costs for Filipino workers

MANILA, Philippines — Taiwan is considering a direct-hiring arrangement for Filipino workers aimed at lowering their employment costs, strengthening protections and speeding recruitment for Taiwanese companies, its representative in the Philippines said.

Wallace Minn-Gan Chow, head of the Taipei Economic and Cultural Office in the Philippines, outlined the proposal during a reception Thursday evening in Taguig City.

Chow said his office established a labor division earlier this year to make services more accessible to Filipino migrant workers bound for Taiwan. The initiative would include direct-hiring arrangements in the future.

“Through this mechanism, we aim to lower the expense for Filipino workers going to Taiwan, enhance their protection, and simultaneously expedite recruitment for Taiwanese companies,” he said.

The Philippines is Taiwan’s third-largest source of migrant workers, Chow said, with more than 191,000 Filipinos employed there, mostly in steel factories.

Chow also called for closer cooperation in semiconductors, artificial intelligence and advanced manufacturing, saying the two economies have complementary strengths.

Taiwan could contribute technology, engineering expertise and established industrial supply chains, while the Philippines offers a young workforce and land and energy resources, he said.

“Together, we have enormous potential for co-prosperity,” Chow said.

Taiwan’s economy is forecast to expand 11.05% in 2026, its fastest growth in 39 years, according to the Philippine News Agency report, driven by demand for AI and emerging technologies.

Chow said Taiwan produces more than 90% of the world’s most advanced chips and that Taiwanese suppliers produce and assemble more than 90% of AI servers.