Malaysia, Indonesia and the Philippines (the MIP countries), with their large populations have become an attractive destination for global businesses, according to the ManpowerGroup.
A new whitepaper released by the ManpowerGroup, forecasts that in the next decade, the MIP countries, dubbed as the "relocation triad" are expected to experience a demographic dividend which will translate into a steady supply of younger workers.
China, on the other hand, which used to be the offshoring haven, will experience a demographic deficit as its population ages. As a consequence of these demographic trends, talent will be more easily available in the MIP countries than in China.
Thirty-six percent of employers globally report having difficulty filling jobs. As the global talent shortage continues, the availability of the right talent trumps the cost of labor as a key consideration influencing business decisions.
Companies recognize that good business decisions are no longer about moving somewhere just for cost savings, but for the total opportunity.
"Companies that fully understand that their greatest asset is talent will be able to maximize the opportunities the MIP markets offer," said Danny Yuan, Chief Operating Officer, ManpowerGroup Asia Pacific and Middle East. "In times of compressed margins and pervasive economic uncertainty, businesses cannot continue to operate as usual."
Yuan notes that to outpace their competitors, companies must look for new possibilities.
"The sustainable demographic trends observed in Malaysia, Indonesia and the Philippines will enable businesses investing in these markets to successfully grow their operations," adds Yuan.
Other factors impacting decisions to locate operations in the "relocation triad" are high workforce productivity and a growing middle-class.
The favorable regulatory environment, relative political stability and other practical considerations, such as availability of natural resources, help minimize challenges posed by local skills mismatch, stiff competition for talent or high worker mobility.