Competition between Asian locations to attract and retain talent, especially researchers and engineers, remains strong. Traditional Asian sectors and established multinationals are losing talent to ‘new age’ companies, including disruptive start-ups and those working in areas like cryptocurrencies and electric vehicles.

The Conference Board, a think tank, reports that talent shortages are most acutely felt in critical areas such as tech, cybersecurity, analytics and e-commerce. A 2022 survey by PwC also found that just 57% of employees in Asia-Pacific were satisfied with their job. Amid these dynamics, non-financial rewards such as flexibility, focus on wellbeing and inclusive work cultures matter even more to retain employees and attract new potential hires. 

Border restrictions and political instability in some key markets are also aggravating talent shortages in Asia. Hong Kong is one example of a location seeking to engage in high-stakes talent competition. At the end of 2022, it lowered property taxes and relaxed visa requirements for non-permanent residents to draw in international talent. 

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Singapore is also offering a new five-year visa programme targeting elite talent. Called the Overseas Networks & Expertise Pass (ONE Pass), it targets highly skilled individuals earning at least $22,300 per month in various fields. Visa-holders are allowed to work for multiple employers, offering more flexibility than other employment passes tied to a specific job. Meanwhile, Thailand last September unveiled a 10-year long-term resident visa for skilled professionals and remote workers. 

All of these efforts underline the importance locations and companies place on attracting, and retaining, the right talent, which is critical to innovation, research and development (R&D). The right workforce enhances companies’ ability to develop cutting edge product solutions, utilise new technologies and to assimilate new technical and business concepts. 

R&D talent also helps to develop innovation ecosystems. These ecosystems transfer technologies and in turn attract other top talent and higher value-added investments. R&D talent can often also start new companies creating new jobs in locations. This helps local economies grow and acts as an additional draw to other talent from abroad.

There are some new approaches to workforce development and retention including tapping into non-conventional sources like retirees, alumni and candidates without college degrees. Companies and locations alike would do well to redefine their pitch to the world’s top talent. Without a compelling sell to candidates they are likely to be left behind in Asia’s war for talent.

Lawrence Yeo is CEO of AsiaBIZ Strategy, a Singapore-based consultancy that provides Asian market research and investment/trade promotion services. E-mail: lawrence@asiabizstrategy.com

This article first appeared in the June/July 2023 print edition of fDi Intelligence