TAIPEI (Taiwan News) — Taiwan announced plans to attract 25,000 foreign students, mainly from Southeast Asia, annually to study and eventually stay and work in Taiwan.

As Taiwan’s birth rate continues to fall, the Ministry of Economic Affairs (MOEA) said it will recruit international students to address industry labor shortages. The National Development Council estimated Taiwan’s labor market gap will be about 350,000 people by 2028 and 480,000 by 2030.

The ministry said that in August, more than 1,000 of about 24,000 companies expressed a strong demand for foreign talent, per CNA. Each company requested about 5,000 workers. 

However, only around 19,000 international students study in Taiwan each year. The retention rate among those students is 47%, meaning less than 10,000 students stay for employment. 

In the plan's first phase, the MOEA will cooperate with the Ministry of Education to match talents with industries. It will provide training to the students as they adjust to the workplace. 

In the medium and long term, the program will offer courses for students to gain professional knowledge. The ministry said the courses would allow students to meet the growing needs of companies and industries.

The government will compensate students for tuition fees, according to a press release. Companies will be responsible for providing the students with living allowances to support their employment in Taiwan. 

The government said students will be recruited mainly from the Philippines, Malaysia, and Thailand. After two years of training courses, the students can decide to stay in Taiwan for an additional two or four years. 

The government acknowledged industries’ concerns that past efforts to retain international students to work in Taiwan fell short of their goals. The ministry said it will give CEOs, senior managers, and human resource personnel more decision-making power to resolve talent issues and labor shortages.