Taiwan curbs on the Philippines 'to cost HK$2.3b'
Taiwan will not be left untouched if it punishes the Philippines for the death of a fisherman killed by its coastguard, an economist warns
The sanctions slapped on the Philippines by Taiwan in the escalating row over the shooting of a Taiwanese fisherman are expected to cost Manila an estimated NT$9 billion (HK$2.33 billion) in lost revenue a year, according to Taiwanese officials.
But a Taiwanese economist said the economic impact on the Philippines would not be that serious and that Taiwan would be likely to suffer more if Taipei imposes the trade sanctions on Manila called for by some Taiwanese politicians.
We have received many calls from our clients seeking to cancel their trips to the Philippines
Taiwan stepped up its diplomatic reprisals against the Philippines yesterday in protest at the killing of a Taiwanese fisherman by the Philippine coastguard last week.
Insisting that Manila had not shown sufficient sincerity in formally apologising for the death of Hung Shih-cheng, 65, Taiwan announced 11 retaliatory measures against Manila. The sanctions, all effective immediately, include a freeze on the hiring of Filipino workers, the recall of Taipei's envoy in Manila, a demand that the Philippine envoy to Taipei return home, the imposition of barriers to tourism and the suspension of various government exchange and co-operation programmes.
Taiwanese officials and media said that the hiring freeze and a warning against visiting the Philippines were the most severe reprisals. Taiwan's Council of Labour Affairs said the hiring freeze included a refusal to approve applications by Filipino workers seeking employment in Taiwan and a ban on Filipinos who had already obtained employment letters and working permits from entering Taiwan.
"This, in effect, would bar some 35,000 Filipino workers from working in Taiwan a year," said Lin San-kui, director of the Bureau of Employment and Vocational Training.
Council officials estimated that the hiring freeze would cost the Philippines about NT$4.8 billion a year. Currently, 87,000 Filipinos work in Taiwan.