Short video clip summarizing some perspectives on taiwan’s economy stagnation.
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Employment rates are high , it’s just pay levels are low (generally speaking ) and lots of younger people , and even not so young people , are subsidised by their elders wealth.
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This is not vastly different from how it is in HK. Quick google shows income 1999 was roughly 12,000HKD per month and in 2018 it was 16,500HKD.
Accounting for inflation I am 100% sure they are worse off.
My own anecdotal evidence speaks for this, for example 2008 a grande cafe latte in Starbucks would set you back 22(or was it 26HKD), but on my last visit a couple of weeks ago it was 39HKD. Similarly in 711 a coke would cost 5HKD in 2008, and now its at 9HKD. So, prices have roughly doubled the last 10 years. I am sure if you got back 20 years, its even worse.
Property prices I believe that quadrupled since 20008, but I am too busy to look up the exact number now.
So all in all, it is exactly the same thing in HK at least. Wouldn’t be surprised if it is similar in SG and SK as well.
The brain drain will probably ease once the chinese economy further slows down(crashes?), it won’t be comparatively as attractive compared to tw anymore.
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This is something I only realized after already staying in Taiwan for some time and meeting these people. 40 yrs old, two children and their whole life taken care of by their parents (close to 70 yrs old, got rich a long time ago and now in wealth management mode).
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My mate’s 43 and his parents bought him a 5 million NT apartment back in 2001 (I don’t want to think about how much it’s worth now). However, he hasn’t had a pay rise in over a decade. The fact that he doesn’t have to pay rent/mortgage repayments has cushioned him in that respect. It’s possibly partly the reason why Taiwanese aren’t more militant about their stagnant salaries.
So, your mate is incompetent with his money if his income in your scenario has been stagnant since 2001.
Not necessarily incompetent, he could be happy with his job , he could be on a pension scheme and earn more than enough to support himself . We don’t know.
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So, I used the word income instead of salary because there are many other types of income than salary.
If the guy has an apartment free of any mortgage, almost no matter what his salary is he should be able to save each month something which will eventually accumulate and create him additional income to that of his regular salary.
Yep in theory. Maybe he has a lot of outgoings, maybe his salary is too low to invest. We don’t know.
Yes, agree. If he is on minimum wage at 20k/month it will be impossible(at least it would be for me).
But, if he earns 40k+ he should be able to save at least something now that he has 0 housing cost. Especially if he lives local life style, albeit for a foreigner it could be tricky(at least it would be for me).
No, it’s gone up since 2001. His salary has been stagnant for a decade or so at around 60-70k a month (depending on overtime). I don’t think he has any other sources of income. I think his problems are he spends everything he earns and drinks way too much.
I was coincidentally chatting to him about this topic last night.
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He’s a complete Taiwanese stereotype. His dad died a couple of years ago and it was then discovered that his dad, who lived like a pauper, had secretly accumulated a portfolio of about 30 properties. However, his mum is refusing to allow him or his brother access to any of this wealth and she’s managing the rentals. He reckons she’s pulling in 200k a month rental profit - but I reckon it’s a lot more than that. Of course, she lives off lunch boxes and won’t dish out any cash to her sons.
When she dies he’s going to be minted.
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So there’s the explanation. There’s really no pressure from him at all to earn more. Ah if life was so easy…
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Although, having met his mum I think he’s going to be waiting another couple of decades. I wouldn’t be surprised if he goes first.
Irony. But at least he’s enjoying himself.
In fact , his behavior is very logical if he doesn’t want extra stress in his life.
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Oh my that sounds horrifying for HK.
I don’t think it’s the same thing at all. Hong Kong is extremely expensive.
If you look at the real statistics the brain drain has always been relatively tame. Not really that many people go on to work elsewhere. The number is nothing out of the ordinary and the growth of that number is like 10% in like 8 years.
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This I mostly agree with. I don’t see high rates of emigration . But do the top people stay or will they come back. That’s another question.
I really don’t get this Taiwanese mentality. Accumulating money for what? 
When will they learn that money is a mean, not a goal?
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Poor people mentality, where the buck you can get now is everything and you think your time is free. Remember the toilet paper panic? People waiting in their idling cars for hours, burning fuel with AC on full blast so they can “save” what, 100 NT on the whole shopping cart? (turned out later there was no price increase after all)
Will iron itself out in a couple of generations.
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