Over a third (36%) of employers globally report having difficulty filling jobs. As the global talent shortage continues, the availability of the right talent trumps the cost of labour as a key consideration influencing business decisions.

Companies recognise that good business decisions are no longer about moving somewhere just for cost savings, but for the total opportunity, according to a new white paper called “The Next Big Thing in Southeast Asia” from recruitment firm ManpowerGroup.

Malaysia, Indonesia and the Philippines (the MIP countries), with their large populations have become an attractive destination for global businesses. In fact, in the next decade, the MIP countries are expected to experience a demographic dividend which will translate into a steady supply of younger workers.

China, on the other hand, which used to be the offshoring haven, will experience a demographic deficit as its population ages. As a consequence of these demographic trends, talent is expected to be more easily available in the MIP countries than in China.

Danny Yuan, Chief Operations Officer for ManpowerGroup Asia Pacific and Middle East, commented: “Companies that fully understand that their greatest asset is talent will be able to maximise the opportunities the MIP markets offer. In times of compressed margins and pervasive economic uncertainty, businesses cannot continue to operate as usual. To outpace their competitors, they must look for new possibilities. The sustainable demographic trends observed in Malaysia, Indonesia, and the Philippines will enable businesses investing in these markets to successfully grow their operations.”

Other factors impacting decisions to locate operations in the “relocation triad” are high workforce productivity and a growing middle-class. The favourable regulatory environment, relative political stability and other practical considerations, such as availability of natural resources, help minimise challenges posed by local skills mismatch, stiff competition for talent or high worker mobility. 

To download the full white paper from ManpowerGroup, click here.