By Arno Maierbrugger/Gulf-Times Correspondent/Bangkok
Investors who are interested to expand in Asia-Pacific can utilise a new study on skills competitiveness in their decision-making process. The 2014 edition of the annual Global Talent Competitiveness Index, released last week by international business school INSEAD, sheds a light on skills competitiveness globally, but also allows regional comparison of major countries in Asia Pacific.
The business school found that Singapore is the number one economy in the region when it comes to attract and retain talent, followed by Australia, New Zealand, Japan and South Korea.
The countries are ranked by a score which is based on 65 variables measuring the quality of talent a country can produce, attract and retain, and factors including economic openness, fiscal stability, talent growth, employability, modern education systems and technological parameters.
The top-scoring countries are, unsurprisingly, all high-income countries, since wealthier nations tend to have better universities and a greater ability to attract foreign talent through higher quality of life and remuneration, making them more competitive. Singapore took the lead in the Asia-Pacific talent ranking due to its world-class education system and ability to provide its students with “employable skills”. It was also cited in the study as being “exemplary” in its ability to enable and attract talent. Similar explanations were given for the leading ranks of Australia, New Zealand, Japan and South Korea.
“The study demonstrates that countries which rank higher are those that invest more in lifelong learning through valuable formal and vocational training programmes, offer higher flexibility and mobility within the labour market, and enjoy a recognised tradition of being open to immigration,” said Patrick De Maeseneire, chief executive officer of Switzerland-based Swiss multinational human resource consulting company Adecco Group, which co-produced the research paper.
Within Southeast Asia, Malaysia takes the lead in terms of talent competitiveness. The study says that the country has a “good balance” in attracting and retaining talent, a robust business landscape and lots of good schools and universities. However, there are weaknesses in vocational and tertiary enrolment, as well as in entrepreneurial activity, in addition to a growing brain drain phenomenon.
The Philippines is the big surprise in this ranking as the country scores second highest within the Southeast Asian region. The study lauds the Philippines for its excellent scores in “skills exports” and entrepreneurial activity, which is, however, somewhat offset by underwhelming scores on innovation output and the quality of scientific research institutions.
Thailand scores relatively well in labour market flexibility and ease of doing business and has a low brain drain, but is weak in the higher skills and competencies category, as well as in “access to growth opportunities”, quality of the educational system and labour productivity. These are issues Thailand shares with Vietnam, Cambodia and Indonesia, other Southeast Asian countries that made it on the list.
Although formal education throughout the region is progressing, fuelled by societal aspirations of the growing middle class, experts say there is more in talent development than just attending a good school or university.
“In certain Asian countries, there is a need to see value and worth in both professional and technical vocations,” says Kwan Chee Wei, CEO of Singapore-based Human Capital Leadership Institute, adding that “beyond this, traditional hierarchies and bureaucracy in many Asian corporates, often hold back openness, transparency and empowerment — important levers in accelerating talent growth.”
In comparison: The top three economies in the Middle East in terms of talent competitiveness are the UAE (global rank 22), Qatar (global rank 25) and Saudi Arabia (global rank 32).
