18 January 2024

< Market Overview in Singapore >

Singapore's economy continued to slow in Q4 2023, with year-over-year GDP growth at 2.1%, and the full-year 2023 forecast down to 1.2%. This slowdown stems from sluggish global demand for semiconductors, impacting the precision instruments and machinery industries. Despite this, the Consumer Price Index (CPI) fell below 4% for the first time in two years, reaching 3.6% year-over-year. This decline was partially attributed to a surge in international travel spending and a slowdown in domestic consumption.

< Local Hiring Trends among Companies in Singapore >

The introduction of COMPASS in September 2023 has led many companies to adopt a wait-and-see approach, causing a downward trend in new hires amidst an uncertain economic climate. Hiring needs are primarily focused on replacing retiring staff rather than expansion. Companies heavily reliant on PMETs (Professionals, Managers, Executives, and Technicians) with salaries over S$3,000 are particularly impacted by COMPASS, facing challenges in replacing expatriates and recruiting skilled workers. This has spurred a rise in consultations on HR strategy and employment issues. Some firms are prioritizing Singaporeans and permanent residents, while those with close to 24 PMETs explore ways to manage headcount, including using temporary staffing services. These shifts demonstrate the significant impact of the new work visa system on company employment strategies.

< Job-Seeker Trends in SIngapore >

Job seeker registration trended downwards in October-December, consistent with previous years as individuals often await year-end bonuses and raises. Beyond this seasonal factor, industry mobility remains low, creating a seller's market where companies seek talent, but find few candidates matching their specific needs. The introduction of COMPASS in September 2023 has further intensified the preference for job seekers who do not require visas, such as Singaporeans and permanent residents.

< Market Overview in Malaysia >

Malaysia's economy demonstrated positive growth throughout 2023, with momentum continuing in the October-December period. While manufacturing sales saw a slight dip (-1.4%) due to declines in specific subsectors, Statistics Malaysia projects sustained growth for the latter half of 2023, contributing to a 3.9% overall increase. The outlook remains optimistic, with GDP growth forecast at 4.5-5% for 2024 (up from an estimated 4% in 2023) driven by a surge in external demand.

< Local Hiring Trends among Companies in Malaysia >

Malaysia's hiring landscape is undergoing a digital shift. Online job advertisements have surged across various fields, particularly in information technology, healthcare, engineering, finance, and e-commerce, sectors with consistent demand for skilled professionals. Emerging sectors like renewable energy, digital marketing, and data analytics are gaining traction, further fueling employment growth.

However, a skills gap persists, especially in digital technologies. Companies face challenges finding candidates with the necessary expertise, despite ongoing government efforts to bridge this gap.

Despite this challenge, the overall Malaysian labor market is on a strong recovery path. Projections indicate a return to pre-pandemic levels by 2024, a trend fueled by foreign direct investment, political stability, and a favorable economic climate.

< Job -Seeker Trends in Malaysia >

Malaysia's recruitment landscape has become a candidate-driven market, with companies offering competitive salaries to attract skilled professionals. Job seekers need to adopt a proactive approach to stand out. This includes highlighting their expertise on resumes and interviews, effectively showcasing their value proposition. A strategic and well-prepared job search will significantly increase your chances of securing a top position.

< Market Overview in Thailand >

The National Electric Vehicle Policy Committee, chaired by the Prime Minister of Thailand, has launched the EV3.5 program to boost domestic EV production and investment. This includes subsidies and reduced import tariffs.

While Chinese automakers continue to expand their market share (currently holding the fourth-largest share of battery-powered passenger car registrations in 2023), Japanese automakers are also stepping up their presence. Four key players have pledged an investment of approximately 615 billion yen over the next five years for local EV production.

< Local Hiring Trends among Companies in Thailand >

Many Japanese-affiliated companies have slowed their hiring around the new year, but plan to ramp up in the coming months. While demand for Chinese speakers is rising due to the expansion of Chinese companies, the limited pool of candidates presents a recruitment challenge.
 
Across Southeast Asia, Vietnam is attracting increasing attention, while Thailand remains a target for expansion. The need for local staff in newly established companies is strong, particularly for managerial, administrative, and specialized roles like accounting and IT. However, a widespread shortage of qualified candidates is lengthening the hiring process.

< Job-Seeker Trends in Thailand >

The current economic climate, with a weak yen, is driving more Japanese job seekers to consider overseas opportunities to support their children's education. However, few are exclusively focused on Thailand; it's generally one option among several. To remain competitive in attracting these candidates, companies must make their offers as attractive as possible.

< Market Overview in Indonesia >

On November 21st, Indonesia announced its provincial and city minimum wages for 2024, with November 30th revealing figures for individual prefectures and cities.

Notably, the Jakarta Special Region saw a 3.38% increase (to 5,067,318 Indonesian Rupiah), while Bekasi City and Karawang Province (key manufacturing hubs for Japanese companies) experienced increases of 3.59% (5,343,430 Indonesian Rupiah) and 1.58% (5,257,834 Indonesian Rupiah) respectively. 
 
These increases are smaller than last year's high 7% growth. However, a decade-long comparison reveals a significant cost burden for Japanese manufacturers: minimum wages have more than doubled in Jakarta (2.07x), Bekasi (2.19x), and Karawang (2.15x).

< Local Hiring Trends among Companies in Indonesia >

Many long-established Japanese manufacturers in Indonesia now face a wave of upcoming retirements among employees hired during their initial expansion in the 2010s. This has spurred active recruitment to fill these gaps, particularly seeking experienced candidates in their late 30s and 40s to replace departing senior staff.

Regarding Japanese national hires, companies are finding it increasingly difficult to secure replacements via expatriation from Japan. This has led to a growing trend of recruiting locally for high-level positions, including managers and presidents of local subsidiaries.

< Job-Seeker Trends in Indonesia >

Job seeker registration figures in Indonesia remain stable compared to the previous year. However, relaxed visa regulations within ASEAN are prompting job seekers from neighboring countries to expand their search to Indonesia. Additionally, the post-pandemic environment has seen an increase in Japanese residents seeking overseas job opportunities, either for the first time or returning to the ASEAN region.

< Market Overview in Vietnam >

JETRO's survey reveals declining profitability expectations among Japanese companies globally for 2023. This trend is particularly acute in Vietnam, with sectors like transportation/warehousing, electronics, and trading companies experiencing worsening business conditions. Declining demand (both local and export-oriented) and rising labor costs are cited as key factors. Despite this, around 60% of companies anticipate increased sales within Vietnam as a portion of their overall revenue in the future, suggesting the market's potential remains recognized.

Additionally, Vietnam's GDP growth is being driven by a rebound in tourism, fueling strong growth in the service industry, arts, entertainment, and hospitality sectors.

< Local Hiring Trends among Companies in Vietnam >

The October-December period is usually a time when the mobility of local human resources declines, and a similar trend can be seen this year as well. In 2024, the semiconductor industry, in which the U.S. is considering multi-billion-dollar investments, is expected to be one of the key factors. In 2024, the semiconductor industry, in which the U.S. is considering multi-billion dollar investments, will be one of the key factors.

In the Japanese recruitment market, we are seeing an increase in consultation from companies seeking to localize the operations of their local branches, and we expect to see an increase in the need to switch from expatriate to locally hired staff. However, the process for obtaining work permits continues to be unclear, and future trends must be monitored closely.

< Job-Seeker Trends in Vietnam >

The October-December period consistently sees a slowdown in local workforce mobility within the US, and a similar trend is expected for 2023. This is partly influenced by the semiconductor industry, where the US is considering significant investments.

The Japanese recruitment market is seeing increased demand for localization services, suggesting companies seek to transition from expatriate to locally hired staff. However, the work permit process remains complex and requires close observation.

< Market Overview in Korea >

Analysts project a stronger economy for Korea in FY2024 compared to the current year. While the semiconductor industry remains a concern, exports saw growth in the October-December period and are expected to continue rising.

Hyundai Motor Company's increasing popularity domestically and internationally, alongside news of expansion and record-breaking promotions, adds to the positive outlook for the nation.

< Local Hiring Trends among Companies in Korea >

Job openings decreased in the October-December period compared to the previous quarter. While niche fields sought new graduates and potential candidates from July-September, a shift occurred towards seeking experienced professionals (aged 30-35) in the last quarter. 

The demand for English speakers among Japanese companies has steadily increased, reflecting Korean companies' expansion into neighboring and European markets. Though the semiconductor and rechargeable battery industries faced challenges in 2023, the outlook for the coming year is positive, driving continued demand for sales professionals.

< Job-Seeker Trends in Korea >

Job seeker activity naturally slows down in Korea between December and the Chinese New Year in February, particularly among employed candidates who wait for bonus assessments before considering new opportunities. These candidates are likely to stay with their current employer unless offered a significantly attractive package (salary, benefits, job description, and position).

To understand Korean job seeker preferences, we conducted a survey of 100 Japanese-speaking candidates. While many expressed satisfaction with working for Japanese companies, recurring concerns emerged:

- Limited Career Advancement: Many felt career progression was hindered by Japanese expatriates holding top positions.
- Conservative Culture: Some viewed the work environment as lacking flexibility or dynamism.

These findings suggest that Japanese companies in Korea need to adapt their recruitment strategies to address these concerns. Offering clear career paths and promoting a more progressive work culture could significantly improve their attractiveness to qualified Korean candidates.

< Market Overview in India >

India's economy is expected to maintain strong growth, fueled by robust domestic consumption and significant government investment. The government is particularly focused on developing advanced industries such as semiconductors, electric vehicles, and renewable energy, with new policies supporting these sectors. Furthermore, Maruti Suzuki, dominating nearly 50% of the four-wheeled vehicle market, plans continued large-scale investments, including the construction of a new plant capable of producing 1 million units annually.

< Local Hiring Trends among Companies in India >

The anticipated growth of the four-wheeled vehicle sector is boosting recruitment activity across manufacturing, trading, and related industries. While hiring naturally slows towards the end of the year, it's expected to rebound from January onwards.

Given the high expectations for India's continued economic expansion, companies are actively hiring sales personnel for both local expansion and to capture market share from competitors. This has led to increased demand for Japanese nationals and Indian Japanese speakers. Additionally, to reduce labor costs, many companies with large expatriate workforces are shifting towards local hiring, further stimulating the recruitment market.

< Job-Seeker Trends in India >

Interest in overseas employment remains high among Indian job seekers. However, the number of candidates seeking these opportunities slowed down towards the end of the year, a trend consistent with previous years. We anticipate a rebound in job seeker activity from January onwards, mirroring the expected increase in company hiring.

Many candidates interested in India are simultaneously considering other overseas opportunities. Experienced professionals target India-specific roles based on their prior expertise, while younger candidates cast a wider net, prioritizing the overall experience they can gain. Due to this demand, we expect the job market to remain competitive, with top candidates likely receiving multiple offers.