AsiaUSA Business Global Markets Doing Business in Asia: Doubledigit Growth for Asia

Sunday, April 8, 2012

Doubledigit Growth for Asia

Published: 2012/04/05

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TOKYO: British recruitment firm Hays plc expects strong double-digit growth in its Asia business this year on strength in the resources and information technology sectors, and is more optimistic about the global outlook, its top executive said.

Chief executive officer Alistair Cox said in an interview yesterday that while consumers, companies and employees seemed paralysed last year by uncertainty over the world economy, they had since begun to adapt to tougher conditions and started hiring and changing jobs.

"I'm much more optimistic about the world in general than I was maybe four months ago," Cox said at the company's Tokyo offices.

"I certainly don't think the world's problems have been fixed, but I do think in many areas people are just learning to deal with how the world is right now and how to go on with their lives."

Cox said that while economic growth and new jobs were a boon for recruiters, what was essential was the confidence among companies and job candidates to consider moving jobs or replacing those who leave.

In that sense, whereas job creation lagged business confidence and investment, the recruitment business could serve as a leading indicator alongside consumer confidence, he said.

Hays, which specialises in placing workers in accountancy, IT and engineering jobs, was particularly encouraged by a strong start to 2012 for Asia-Pacific, where two of its top five markets are located.

"I would expect very strong double-digit growth across our Asia business in this calendar year because all the fundamentals are there," Cox said.

With the exception of financial services, which within a year has gone through a full boom-bust cycle and remained depressed in most markets, Hays expected broad growth across main markets and sectors.

Cox said IT specialists and engineers with expertise in resources, energy and infrastructure were in particularly high in demand.

"We are in a part of the world that has huge infrastructure demands and some huge skills shortages as a result of that."

Australia, Hays' second biggest market after Britain, was set to do very well, thanks to its mining and resources boom, while Japan, the group's No.5 market, was also poised for solid growth, despite the economy's sluggish perfor-mance.

Christine Wright, who heads Hays' Japanese business said growth was driven largely by increasing demand for bi-lingual workers and more career mobility, with a gradual shift away from lifetime employment.

The company, whose financial year ends in June, posted a 24 per cent rise in pretax profit for the six months ended December of STG60.3 million (RM286.1 million), underpinned by overseas operations accounting for almost 70 per cent of group fees. Reuters