Across Asia‑Pacific, companies are thriving thanks to a growing digital economy, but a severe shortage of critical skills threatens to slow momentum. A ManpowerGroup survey cited by InCorp Global reports that 77 % of APAC employers are struggling to fill roles, up from 45 % a decade ago. India feels the pinch acutely, with 80 % of employers unable to find the skills they need.
Cybersecurity roles in Southeast Asia saw headcount increase by an astonishing 160 % year‑on‑year. Other high‑demand areas include AI and machine learning, cloud computing, renewable‑energy engineering, sustainability management and human‑centric capabilities like analytical thinking and emotional intelligence. If left unaddressed, these gaps will impede innovation and growth for scale‑ups.
Why the skills gap persists
Three structural forces underpin the shortage. First, digital‑transformation initiatives outpace the ability of education systems to produce job‑ready graduates. In cloud, cybersecurity and AI, the demand for experienced practitioners far exceeds supply. Second, demographic trends create regional imbalances: while countries like Vietnam and the Philippines have youthful populations, Japan and South Korea face ageing workforces. Finally, the pace of technological change means that skills acquired today may become obsolete within five years, putting pressure on employers and employees to continuously upskill.
In Singapore, for instance, IT and data roles account for 38 % of skills shortages, followed by engineering (28 %) and operations/logistics (23 %) (ifcreview.com). This reflects the city‑state’s ambition to position itself as a high‑tech hub. India’s shortage is exacerbated by the rapid expansion of its tech start‑up ecosystem and the race to build digital public goods. Even China and Japan, despite large populations, struggle to find specialised tech talent due to internal competition and language barriers.
Reskilling as a strategic investment
Companies cannot simply wait for the education system to catch up; they must actively invest in reskilling and upskilling. Progressive organisations are adopting “skills‑based hiring” models, focusing on competencies rather than credentials. Borderless AI’s mid‑2025 analysis notes that workers with high‑demand skills in AI, machine learning, cloud computing and data analytics command salary premiums of 20–30 % (hireborderless.com). By reskilling existing employees, companies can close gaps while retaining institutional knowledge.
Scale‑ups should develop continuous learning cultures. This includes funding online courses, encouraging participation in hackathons, and rotating employees through different projects. Partnerships with universities and technical institutes can create pipelines of apprentices who learn on the job. Singapore’s government‑backed SkillsFuture initiative offers subsidies for individuals to attend accredited courses in areas like cybersecurity and data science; employers can co‑fund these programmes to accelerate workforce development. India’s National Skill Development Corporation (NSDC) is another example, providing training across sectors, though the scale required remains enormous.
Leveraging borderless talent
Even with reskilling, there will be times when local supply cannot meet demand. Borderless hiring allows companies to tap into specialised talent worldwide. For example, a fintech start‑up in Singapore might hire a machine‑learning engineer based in Vietnam through an employer‑of‑record platform, enabling quick onboarding without establishing a Vietnamese subsidiary. This approach is particularly useful for roles requiring niche expertise, such as blockchain development or sustainability reporting.
Employers should adopt a flexible mix of full‑time remote employees and contractors. As discussed in Blog 1, nearly 70 % of companies employ workforces composed of more than 70 % full‑time remote employees (assets.ctfassets.net). For one‑off projects or exploratory initiatives, hiring contractors through freelancing platforms can provide rapid access to skills. However, clear scope definitions and robust intellectual‑property agreements are essential to protect sensitive data.
Building inclusive skill ecosystems
Closing the skills gap is not solely the responsibility of employers. Governments and educational institutions must align curricula with industry needs. The majority of APAC universities still emphasise traditional engineering over emerging digital skills. Private‑sector organisations can co‑create programmes that embed work‑integrated learning. For example, Australia’s Digital Apprentice Programme pairs final‑year students with tech start‑ups, ensuring graduates have practical experience upon entry.
Diversity and inclusion should also be central. Women remain under‑represented in STEM fields across the region. Encouraging gender parity in technology roles expands the talent pool and fosters innovative thinking. Partnerships with non‑profit organisations that train women or under‑served populations in coding and data analysis can yield both social and business benefits.
A collective challenge
APAC’s skills shortage is a complex, multi‑faceted problem, but it is not insurmountable. Employers must combine reskilling programmes with borderless hiring strategies to stay competitive. Governments must modernise education systems and provide incentives for upskilling. Individuals must commit to lifelong learning. As you consider your company’s growth strategy, ask yourself: Are we investing enough in developing our people and leveraging global talent to close the skills gaps that threaten our future?