Key Trends in 

Executive Careers 2012

(Southeast Asia)

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1. Localization Continues
 
It took a decades but today most multinational organizations have come to the realization that Asians are suitable to lead other Asians. The majority of multinational organizations that have not already done so have plans to migrate senior management roles to Asian nationals in the not-too-distant future. 
 
There are 2 main reasons behind this trend. First, is the simple concern about cost. Base compensation levels for locals and expatriates have mainly converged in many industries, but expatriates have traditionally been provided with expensive benefits such as executive housing, international schooling for children, annual fly-backs and so on. These “expat packages” add tremendously to the overall cost for expatriate managers.
 
The second benefit Asian managers bring is local knowledge. Business in Asia is more relationship driven that in the west and it reasonable to say that someone who grew up in a local environment will be better off than someone who is new to the country. 
 
 
2. New Demand for Expatriates
 
The enormous depth and quality of Asian workforces and high-growth markets is inspiring global companies to open new operations and expand existing ones. Expatriates are required in many countries where adequate supplies of local managers have yet to be developed to meet high demand.
 
Across Southeast Asia, there are different needs depending on the country. In Singapore, expatriate managers are said to be required in creative industries like media and advertising. In Philippines, the booming phenomenon known as Business Process Outsourcing is responsible for large demand. In Indonesia, it’s infrastructure and mining and, in explosively growing Vietnam, expats are required in most sectors. 
 
 
3. The Vanishing Expat Package
 
In the good old days, it was standard for expatriates to be provided with luxurious benefits to keep them comfortable during “hardship postings” in Asia. These included executive housing (with servants), automobile & driver, expensive international schooling for children, annual fly-backs for the entire family, country club memberships and even a “hardship bonus” that alone added 10% - 30% to base compensation.
 
Except for a few hold-outs, the traditional “expat package” has steadily been eroded over the past decade. Far from being considered an expatriate’s right, today everything is negotiable. Companies often still provide financial support to their relocated managers but the amounts and types are gradually being reduced. 
 
 
4. Income Convergence
 
Most Asians still think expatriates earn more than they do but the fact is that most of these differences have already been minimized. In advanced commercial centers like Singapore and Hong Kong, equal-pay-for-equal-work has been a reality for some time. In emerging countries, the situation is still evolving but the trend is well advanced even there. 
 
Across Asia, local managers in growth sectors have seen relentless salary increases and many earn as much these days as any expatriate could ever hope for. 
 
 
5. Cross Postings Open to All
 
It used to be that overseas executive postings were top down in nature. Managers were sent from head-quarters to a far-flung country office to gain international experience. They would spend 3 or 4 years dictating company operating procedures to local staff whose performance was measured by how well they complied. There was little opportunity for “locals” to aspire to senior management within their own country let alone outside it. 
 
Today, Indians, Filipinos, Malaysians and Singaporeans all can be considered for the top jobs in their own countries and have the same cross posting opportunities in other countries as well.
 
 
6. Regional Integration
 
The entire GDP of Philippines or even Singapore is about one-third that of cities like Paris or Dallas-Fort Worth. Despite their fast economic growth, countries in Southeast Asia are still economically small and global managers often consider them as an economic group.  

  
Rather than employ Country Managers for single countries, more companies assign managers to handle multiple countries in a hands-on operating capacity. Dividing time among 2 or 4 countries gives an adequate return to the employer and a more significant opportunity to the manager. The only downside is extra wear-and-tear on managers due to increased travel requirements.
 
 
7. Head Office Relocation
 
Beginners to Asia have generally chosen to locate regional offices in the established commercial centers of Singapore or Hong Kong where work environments and lifestyles are similar to those of their home countries. As regional management team have become more experienced, they are becoming comfortable transferring themselves and their operations to cities like Kuala Lumpur, Bangkok and Manila. 
 
Cost savings is one important reason behind the move since a correctly executed relocation can easily save half the operating costs of running a regional head office. 
 
Another more strategic reason behind the trend has to do with economic growth. It is reasonable to say that the bulk of the opportunities in Asia are in countries where the bulk of the population lives. Relocating a head office puts senior staff in better touch with economic opportunities as they unfold. 
 
 
8. Asia Becoming Valued
 
For most multinational companies, Asia currently accounts for less than 15% of total revenues but a disproportionate share of its growth.
 
Most global managers see slower growth ahead in so-called advanced economies. Countries in Asia were taught tough lessons about fiscal prudence during the Asian Crisis of the late 1990's and are now poised for strong sustainable growth in the coming years. This has not escaped the notice of multinational companies and Asia will be a focus for future investment.
 
 
9. Rise of Asian Multinationals
 
Companies in Asia are comparatively cash rich. As a result, they are in a better position to expand their operations as cautious multinationals are slow to move or pulling back.  . 
 
Wealthy Asian business owners who in the past may have invested their funds in real estate or financial investments in the west, today feel there are better opportunities closer to home. The result is that Asian companies are becoming realistic career opportunities for experienced international managers. 
 
 

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Executive Search &  Management Consulting:

Chalre Associates provides its Executive Search and Recruiting services throughout the emerging countries of the Asia Pacific region with specific focus on Philippines, Singapore, Malaysia, Indonesia, Vietnam, Cambodia, Laos.  We are proactive and well known in our sectors of focus.  Regional Managers use us to help bridge the gap between local environments and the world-class requirements of multinational corporations.   

 

C o n t a c t   U s

 

  +632 892 6703       +63 908 880 4178      leaders@chalre.com

 

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Asia CEO Forum

 

Asia CEO Forum presented by PLDT ALPHA Enterprise is the largest regular business event in Philippines and considered one of the most important in the Southeast Asia region. The forum serves as a hub for the spreading of ideas that help executive managers overseeing enterprises across the Asia Pacific region. 
  
Attendees are both expatriate and Asian management personnel overseeing multinational and regional organizations.  Held in Philippines, presenters are leaders in their industries and engaged in momentous pursuits of significance to the entire region.  

 

Asia CEO Forum is operated as a CSR (Corporate Social Responsibility) activity of Chalre Associates, one of Southeast Asia's most prominent senior management executive search firms, to promote Philippines as a premier business destination in the Asia region.  

 

Click Here to go to Asia CEO Forum now!

 

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Asia CEO Awards

 

Asia CEO Awards presented by American Express represents the grandest alliance of local and international business people ever created to promote Philippines on the world stage. As one of the largest events of its kind in the Asia Pacific region, it is considered a must-attend occasion for business leaders active in Southeast Asia. 

The star-studded Board of Judges of Asia CEO Awards give away 10 awards to many of the most accomplished leadership teams and individuals currently operating in Philippines and the region. The awards recognize extraordinary leaders who have demonstrated outstanding achievement for their organizations and contributions to others. 

As one of the fastest growing nations on the planet, the world's business leaders have their eyes on Philippines like never before. The annual gala was established as a natural outgrowth of Asia CEO Forum, the largest regular networking event for the business community in Philippines. 

 

Click Here to go to Asia CEO Awards now!

 

 

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SPECIAL DOWNLOADS:

 

Media organizations throughout the world call upon the Principals of Chalre Associates for thought leadership.  Below are some examples of published material written by our consultants or international journalists who refer to them.  For a complete list of published work, Click Here.  

 

 

Getting Ready For The Deluge: Outsourcing in Philippines

by Chalre Associates senior staff

 

Download [PDF file, 62KB]

 

The Economist Intelligence Unit of the Economist magazine asked Chalre Associates' Chairman, Richard Mills, to write a chapter about the Philippine outsourcing sector in its annual Business Guide Book.  The material provides a Executive Briefing on the progress and major issues facing this industry that is certainly one of most significant growth stories in the world.  more

 

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Asia Pacific Mining Conference 2007 - Report

by Chalre Associates senior staff

 

Download [PDF file, 28KB]

 

The 7th Asia Pacific Mining Conference put on by the Asean Federation of Mining Associations was perhaps the largest such event in the region.  Richard Mills, Chairman of Chalre Associates gave this report on what was said by the prominent mining people who presented. more

 

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The State of BPO in Philippines: Dan Reyes Speaks

by Chalre Associates senior staff

 

Download [PDF file, 31KB]
 

Richard Mills, Chairman of Chalre Associates, interviewed Dan Reyes of Sitel for ComputerWorld (US) recently to get his views on the state of the BPO industry in Philippines. Dan presented US readers with compelling information to support his view that Philippines is currently seen as the "Number 1" option by global companies sending BPO work to offshore destinations. 
 
Dan Reyes is easily one of most experienced Business Process Outsourcing (BPO) managers in the Asia Pacific region and the world. He is head of the extremely successful Philippine operations of Sitel, the world's largest call center organization. Among other things, he is a founder and former president of the Business Processing Association of the Philippines.    more