Taiwan is becoming a very wealthy society, but not everyone is willing to follow the rules along the road to financial success. One disturbing shortcut to big money is strong-arm crime, and like any other modernizing society, Taiwan is getting its share.
Businessmen and their families have become the targets of widespread extortion, kidnapping, blackmail, and even murder. According to the National Police Administration, two-thirds of Taiwan's biggest entrepreneurs have received extortion threats. Personal danger is so imminent that many businessmen and investors who have made a killing on the stock market are worried about getting killed themselves. As a result, they have taken the security of their lives and companies into their own hands, collecting bulletproof vests, surveillance and alarm systems, and bodyguards. And they have stopped riding in their Mercedes Benz limos.
A popular TV sitcom does a nightly spoof on an industrialist watching out for his life. He makes plans to acquire a submachine gun and trades in his BMW for a beat-up taxi so that he can be low-profile. While some people may find humor in the situation, few would disagree that social order in Taiwan is fast deteriorating and that the rising crime rate is frightening. As daily news reports clearly indicate, one does not have to be an industrialist to get robbed, kidnapped, or killed.
The statistics are staggering, especially since they are so much worse than a decade ago. In 1989, burglaries and kidnappings rose by 39 and 59 percent respectively from 1988. Taipei, the island's largest metropolitan area, has been hit especially hard. The execution of sixty-eight criminals last year has not seemed to stem the growth of violent crime. But the government has made restoring law and order a top priority. When President Lee Teng-hui picked former general Hau Pei-tsun to be premier, it caused many people to hope that his military experience might be employed to cow the gangsters and ensure citizen safety. True to expectations, since he assumed office, Hau has started to crack down on gangs, reduce the smuggling of weapons and other contraband from mainland China, and close down underground business operations.
In the meantime, companies and individuals are turning to security firms to ensure their safety. There were twenty-four security firms in Taipei alone as of June 1990, up from five in 1984. Security firms provide patrol guard and escort services, surveillance systems, car alarms, burglary and smoke alarm systems, and some peace of mind.
Chen Cheng—the company's directors saw that "the problem of social order would be an inescapable issue because of Taiwan's rapid economic development."
Taiwan SECOM Co., Ltd., established in 1978, is one of the oldest security firms in operation. It is also the largest. The firm is equipped with the most sophisticated security technology, thanks to a technical cooperation agreement with Japan SECOM, the number-one security firm worldwide. "During their visit to Tokyo twelve years ago," says Chen Cheng, Taiwan SECOM president, "the director and vice director of our board were impressed by how security firms were nourishing in Japan. They were inspired to set up one in Taiwan. They foresaw that the problem of social order would be an inescapable issue because of Taiwan's rapid economic development."
Their instincts proved correct. Taiwan SECOM had over two thousand clients in 1984, ten thousand in 1988, and in 1990 they had contracted twenty thousand more. The clients include corporations, government institutions, and families. The firm has forty branches islandwide, a capital of US$127 million, and twelve hundred employees, half of whom are security guards under the age of thirty. Yet twelve years ago, when SECOM was founded, many people had no clue what security firms were all about. Some considered it a revival of an old profession in China-paopiao, the kung fu masters who guarded property and persons. Others thought they were movie-style bodyguards. Even the police authorities were alarmed. "The image was that of an underground police force or a private army," Chen says.
Security firms offer two basic services: the protection of property and of individuals. But, in fact, local security firms can only offer electronic warning and the comforts provided by someone's physical presence. Unlike their counterparts in the U.S. and Japan, security guards in Taiwan are unarmed, do not carry handcuffs, and cannot apprehend and hold suspected criminals. What they can do is to stay alert, make sure the client is safe, catch the criminal in the act, and then call the police.
A TV ad for SECOM succinctly explains the function of security firms. Deep in the night, a sensor detects movement. The infrared light shines on the culprit—a cat—and in a flash a security guard arrives on the scene. In truth, SECOM has bagged more than cats. The fast footwork of the firm's guards has led to the arrest of over nine hundred burglars.
Wang Chih-ping, vice manager of SECOM's public relations department admits that during the 1989 elections: many candidates sought the firm's services after two candidates were shot and others were threatened with death if they continued to campaign. SECOM had no choice bur to reject them. As Wang explains it, "First of all, we can't install a sensor in a person so that we can be sure of his condition every minute. Bodyguards aren't much protection because they cannot carry guns or knives. Fists can't fight bullets."
But people might still find assurance in that SECOM requires its security guards to have fulfilled military police or marine corps service. They earn an average monthly salary of US$1,100 and are awarded many benefits. According to Wang, "SECOM takes good care of them. You could say that except for their underwear, we provide them with everything." He adds that the resignation rate is very low and that when a guard does resign, it is because he cannot adapt to the schedule.
Unfortunately, security guards themselves have threatened the reputation of security firms. They are familiar with security systems, and since clients give the firms the keys to their homes and offices for more effective surveillance follow-up, it is easy for guards to gain access. "Our fingers are not equal in length," argues Chen. "And neither are the personalities of our guards. There is a possibility that a security guard can be tempted after he has seen a client's place, so we look for honesty in our applicants. "
SECOM officials admit that there have been occasional cases when their guards turned into burglars, but assert that they have adopted measures to prevent this. First, the firm asks local police to check the background and record of every potential employee. If the check shows no irregularities, the applicant is accepted.
After recruitment, the guards are given regular training in martial arts and psychology. Whether married or unmarried all the security guards are required to live in the company dormitory. Supervisors watch their daily behavior and observe them on duty. One wrongdoing leads to dismissal, and the guard's records will be turned over to the local police station.
Chen notes that SECOM differs from other security firms in that the cards the guards use to deactivate alarm systems are different from the cards used by their clients. The computer at the control center registers the card number, and a signal indicates if the security guard is the intruder. "This deters the guards from even thinking about burglary," he says.
The formation of a union for security firms in June 1990 has also helped. Because of union regulations, guards realize that they will forfeit their future in the security field if they commit a crime. All of Taipei's twenty-four security firms belong to the union, and close contacts are rigidly maintained. The records of the security guards are available to any member, and a guard, once discharged, has therefore eliminated his chances of finding a position in another security firm.
Security firms also protect their interests through careful contractual agreements. If a crime occurs, and the security firm fails to protect the safety of the client's property because of equipment failure or through negligence, SECOM compensates the client. A contract between the client and SECOM determines the amount of the compensation, and SECOM stipulates in the contract that compensation cannot go above US$147,000. If disputes arise, and despite negotiations the compensation demanded by the client is still deemed too high by the firm, the case is turned over to the courts.
SECOM insures itself against these losses. "We use a portion of the service fee to insure the client's property," says Wang Chih-ping. Compensation is paid to the client by the insurance company itself because, as Wang says, "it is illegal for security firms to deal with insurance affairs."
Yet many security firms have expanded into the territory of insurance companies in order to attract more clients. This has prompted insurance companies to lodge complaints against security firms with the Ministry of Economic Affairs (MOEA). Clients insure their property directly with the security firm, and in case of loss or damage the compensation process could also be handled by the security firm. This has led to a lot of confusion, with people mistaking security firms for insurance companies and vice versa. But Chen of SECOM argues that the two are very different. "Insurance companies provide passive service, and security firms offer protection, and then compensation if there is a loss," he says.
The high rate of burglaries has led to an expansion of the security firms' clientele to include family residences. "Families need our service, especially today when both husband and wife hold jobs," says Chen. Thirty percent of SECOM's clients are families who want their homes protected. The rest are companies and government institutions. "The majority is still companies," Chen says, "But we are looking to develop in the direction of protecting family homes and properties. We want that market. It's got potential."
Affordable service fees have led to the prevalence of home security systems installed by and linked to the security firms' network. Service fees are based on the type of alarm system used, which might include infrared detectors and sensors. It costs the firm an average of US$5,500 to install a security system. The client is charged a monthly service fee of US$92. It will take SECOM five years to recover the installation cost from service fees, but the fast growth in the number of private homes requiring security systems makes the promise of profit worth the wait.
"The major reason our clients come to us is to protect themselves and their property," Wang says. He adds that the firm will soon be offering other services to safeguard the safety and well-being of its clients. SECOM already installs smoke alarm systems, and now is looking into warning systems to detect gas leaks and nuclear radiation.
The rapid growth of security firms and the expansion of their services have led the firms, including SECOM, to seek government regulation. Although they must register with the MOEA, security firms do not fall under any legislation and, according to Chen, this hinders the development of security firms and prevents them from performing their civic duties. "Our security guards have no special rights; they don't have adequate power to give our clients proper protection," he says.
The draft of regulations concerning the operations of security firms recently passed first reading at the Legislative Yuan. Many security officials are hoping that regulation will squeeze out unqualified and unprofessional security firms, as well as the companies that are too small to provide adequate services to their clients. In fact, such firms have already grown in number to meet increased public demand for protection. Some companies which call themselves security firms only sell fire-fighting equipment or burglar alarms. Even electricians and plumbers have set up their own companies to install security systems, while some enterprising people have set up security firms in their apartments and farm out the installation of alarm systems to these same electricians and plumbers.
The police, in the meantime, are promoting the organization of civic forces to fight crime and are spreading the word about neighborhood watches. A ranking police officer was quoted in one of the major dailies as saying that the modern concept of social order involves "mutual protection among all citizens." Although the police have stepped up surveillance, setting up checkpoints and running patrols to check residence cards in the crime-ridden areas of Taiwan's big cities, they have not been able to keep up with the steep climb in crime.
The police recognize that security firms aid in maintaining social order, and this has led to cooperation in apprehending many burglars. The respect the security firms have gained from both the police and their clients, as well as public recognition that they are vital to public safety and personal protection, should ensure an increasingly important place for security firms in Taiwan society.