In 2019, a Singaporean tech startup, Grab, faced a troubling crisis. After expanding its operations across South Asia, Grab had a significant shortage of talented individuals. With its business expanding in regions like Indonesia, Vietnam, and Thailand, Grab needed people who were technologically literate and understood the local markets. To tackle this, Grab collaborated with the Singaporean government’s “Global Innovation Alliance” and launched a talent exchange program, allowing employees to work across borders. This initiative met Grab’s staffing needs and allowed employees to gain international exposure, paving the way for a regional talent pool across Asia.
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The Need for Skill-Based Talent Mobility in Asia
As Asia emerges as a global economic powerhouse, it faces unique challenges, such as being unable to match the demand for skills in particular job roles. According to Future Of Jobs, a report by the World Economic Forum, 50% of companies in Asia in 2023 reported a significant talent shortage. The companies mentioned that they are having difficulty filling high-skill roles due to sub-par skills. The rapid growth in STEM, manufacturing, and finance sectors means that the supply of skilled workers has taken a hit. This is evident in a study conducted by the Asian Development Bank or ADB, which stated that by 2030, Asia will need 300 million highly skilled professionals in fields like AI, data science, and healthcare.
To address this gap, Asian countries increasingly turn to skill-based talent mobility, enabling professionals to move between countries based on their expertise. This system promotes the seamless flow of talent, ensuring that businesses can access the skills they need and that employees can pursue diverse career opportunities across borders.
Benefits of Regional Talent Mobility
Career development and skill enhancement are among the major benefits of regional talent mobility. Employees benefit from exposure to new markets, industries, and cultures, allowing them to sharpen their skills and increase their employability. According to a survey by LinkedIn’s Asia Talent Mobility Report 2022, 63% of professionals in Asia who participated in cross-border projects reported faster career progression and skill acquisition. Countries like Singapore and Japan, which have implemented robust skill mobility programs, saw a 20% increase in skilled talent retention between 2018 and 2022.
Additionally, regional talent mobility boosts economic growth by ensuring that businesses across Asia can access the talent they need. A McKinsey report 2021 stated that if ASEAN (Association of Southeast Asian Nations) fully integrates talent mobility across its member countries, it could boost the region’s GDP by 9% by 2030, adding approximately $1.3 trillion to the economy. Moving employees across borders also helps foster cross-cultural understanding, which is vital in today’s globalised world. In a study by Deloitte, 72% of companies in Asia that adopted skill-based mobility reported an increase in innovation and teamwork due to enhanced cultural empathy among employees.
Key Drivers and Enablers of Talent Mobility
As mentioned above, several factors are driving the adoption of skill-based talent mobility in Asia. Governments of Asian nations play a key role in promoting talent mobility and providing reassurance and commitment to the cause. Singapore’s Global Innovation Alliance has facilitated talent exchanges with countries like China and Vietnam. At the same time, Japan’s Technical Intern Training Program has enabled thousands of workers from Southeast Asia to gain skills in advanced industries. Regional trade agreements like the Regional Comprehensive Economic Partnership (RCEP), which includes 15 Asian nations, promote easier movement of skilled labour.
A report by the International Labour Organization (ILO) noted that labour mobility provisions in these agreements are expected to boost intra-Asian talent movement by 7% annually. Another key enabler is Corporate partnerships. Leading Asian corporations are increasingly adopting skill-based mobility programs. Samsung, for example, has established its Global Mobility Program, enabling employees from South Korea, China, and India to work in different countries across Asia. A 2023 internal report by Samsung revealed that 85% of participants in the program reported improved job satisfaction and skill development.
Challenges in Implementing Skill-Based Talent Mobility
Creating a regional talent pool across Asia comes with challenges despite its many benefits. Visa and regulatory barriers remain significant obstacles. According to the Asia Pacific Economic Cooperation (APEC) Secretariat, cumbersome visa processes and inconsistent labour laws across Asia hinder talent mobility. The introduction of a regional talent visa could help mitigate this issue. Cultural and language differences also present challenges. While cross-cultural understanding is a benefit, employees moving to new countries may face difficulties adapting to local customs and languages.
A PwC report noted that 40% of employees in mobility programs across Asia reported difficulties adjusting to new work environments due to cultural differences. Furthermore, while talent mobility addresses skill shortages, it does not solve the issue of skill mismatch. A 2023 report by the OECD highlighted that 35% of employees in mobility programs were not fully utilising their skills in new roles, suggesting the need for better alignment between skills and job requirements.
