World-famous for their excellent quality of life, high living standards and attractive salaries, Singapore and Hong Kong are no longer top expat destinations. Singapore recently announced that the hiring of locals would be prioritised from now on, which means that there are fewer chances for expats who are looking to boost their career in Asia. However, there are other countries you might consider for a post-COVID-19 move to Asia.
Why Singapore and Hong Kong are no longer attractive
To discourage local companies from recruiting foreign professionals, the Singaporean government recently announced the increase of the minimum wage for the Employment Pass requirement. Employers now have to pay SG $ 4,500 per employee, compared to SG $ 3,900 previously. In some sectors, such as finance, the fees have increased to SG $ 5,000. This measure clearly aims at reducing the foreign workforce, which is almost omnipresent in Singapore but also at prioritising the employment of locals who are currently paying the price of the COVID-19 crisis. In fact, the unemployment rate rose to 3.4% in August 2020, which is higher than that recorded in September 2009 during the global financial crisis. Also, the unemployment rate for Singaporeans reached 4.6% in August, while that of foreign residents rose to 4.5%.
With socio-political turmoil for more than a year, followed by the COVID-19 crisis, Hong Kong is also losing its appeal in the eyes of expats. Since 2019, the upsurge in violence and the frequent closure of schools has compelled many expats to leave the country. Relocation companies thus recorded a nearly 40% rise of repatriation requests, despite the wage increase in the same year. According to the MyExpatriate Market Pay survey by ECA International, Hong Kong-based companies now have to spend US$ 284,466 on average to hire a foreign professional. This amount includes the average salary of US$ 88,126 but excludes benefits such as accommodation, school fees and transportation. Still, this rise remains lower compared to previous years, taking into account the economic situation, since 2019.
Where there is hope for foreign professionals
According to experts, the situation in Asia is not likely to improve anytime soon, taking into account the rising unemployment rate throughout the region. Still, countries like Japan are working hard towards recovery. The Japanese labour market is currently going through one of it's worst moments in history with a 3% unemployment rate, which means some 2.06 million unemployed in August 2020. However, according to a recent study by the Japanese government, the COVID-19 crisis has only resulted in 63,000 job losses, compared to other Asian powerhouses.
It's worth noting that despite the crisis, the recruitment trend looks stable, as evidenced by the numerous online career fairs in the past few months. From job applications to the selection process and job interviews, everything is being done online. This means that there are career prospects in Japan, especially since the country has lifted its border restrictions for foreign nationals. Besides, according to a study by Mynavi firm, many international students in Japan have received employment guarantees from potential employers since the end of May 2020. While the number remains low compared to Japanese students, it seems that several sectors are gradually reopening. So if you're looking to boost your career in Asia after the crisis, you might want to consider Japan. Moreover, many large Japanese companies have decided to extend their recruitment period this year.
Asia is a large manufacturing hub with players like China, Thailand, Malaysia and Vietnam. However, with massive job losses and the decline in manufacturing activities in China, many companies are now turning to Southeast Asia. Thailand, for example, is looking to become the world's largest electric vehicles manufacturer over the next five years. On the other hand, large firms like Google and LG have chosen to relocate to Vietnam, which is today one of the world's largest electronics manufacturing hubs.
Meanwhile, Indonesia has just received massive investment from South Korea, which means that thousands of jobs are going to be created in the coming months. Many South Korean companies have also chosen to relocate to Indonesia after closing their business in China. Indonesia is, therefore, coming up with a new bill that aims at attracting more foreign companies in order to boost its economy and the labour market. And as the country is gradually lifting its border restrictions, many positions should soon be available in the tourism and hospitality sectors.
In Thailand, despite the high unemployment rate, there is a shortage of skills in several sectors such as information and communication technology, public relations and marketing, sales, customer service, business development, as well as food and hospitality over the coming months, according to major job boards. In a survey by JobsDB, for example, 33% of the companies are looking to hire employees that have been affected by the COVID-19 crisis. Moreover, more than half of the positions available will be open to fresh graduates. So if you're currently a third-year student in Thailand, you might try your luck.
What about South Asia?
Sri Lanka and the Maldives are two countries that you probably haven't considered yet. Located in South Asia, these two countries have recently benefited from investments from the International Finance Corporation for the development of hotel infrastructures. With significant emphasis on tourism and hospitality, these countries have great career potential. With zero COVID-19-related deaths, Bhutan is also looking to boost its tourism sector by developing new products and services. The country is aiming at creating many sustainable positions in the coming months.
