Southeast Asia has proved itself as a major player in the global economy in the 21st century. The ten countries that makeup the region boast one of the largest workforces in the world. From Singapore’s bustling industry to Thailand’s abundance of natural resources, the region’s labor force is diverse and expansive, standing ready to meet the needs of new investment.
Upward trends in human capital project even further growth in the region, specifically in the demographics of the youth and female workforce. And, new technology entering the region can be leveled to propel Southeast Asia to the forefront of new ventures going forward.
Urban Growth
The United Nations projected that across the region, the urban population will grow from 49% of the current total population to roughly 56% by 2030. That means another 80 million workers with a chance to earn higher wages and be more productive in a dynamic urban setting. “These workers will make up a lucrative market for companies selling a wide variety of goods and services,” said the International Monetary Fund (IMF).
New Technology
Social, Mobile, Analytics Cloud: SMAC technologies have been changing the face of business for years now and the Southeast Asia region is no different. Expanded use of SMAC tech will give businesses more routes to reach consumers and increase profits.
Renewable energy is reaching its tipping point: transitioning to early adoption to mainstream usage. In Southeast Asia, the widespread implementation of solar and wind power will solidify energy security and help curb the region’s dependence on fossil fuels
Biomedical therapies are also becoming more established in the region. These new advances are projected to not only raise life expectancy, but also enhance quality of life as well.
Female Labor Force
Research published by Siti Amalia and Rizky Yuddaruddin from Mulawarman University in Indonesia, entitled, “Female Labor Force Participation and Economic Development in Southeast Asia,” suggests that on average women spend about 2 ½ hours more than men on unpaid work (including nursing jobs) every day, regardless of the employment status of their husbands. It is imperative to the health and wellness of the region and all who inhabit it that women are empowered through well-paying jobs in order to participate in the economy and aren’t susceptible to exploitation, labor or otherwise.
Aging Trends
Southeast Asia is in the midst of a major demographic transition. According to the IMF, population growth is expected to slow in the coming years. “While Singapore and Thailand will age faster, even countries with relatively young populations, such as Malaysia and the Philippines, will experience slower growth in their populations and labor forces.” This means that the region is primed for a new approach which prioritizes workers’ rights, including fair wages and safer workplaces. This shift would create less turnover for new businesses while empowering workers (specifically women) in the region.
