There’s no doubt that Southeast Asia is a priority growth region for many global businesses. It’s dynamic, diverse, and full of opportunity—particularly in sectors like manufacturing, supply chain, and logistics, where growth, investment, and transformation are happening at pace.
But with all that potential comes complexity.
Expanding into Southeast Asia isn’t as simple as choosing a city, posting a job, and hiring a few regional leads. Each country operates differently—economically, culturally, and legislatively. That impacts how companies build teams, hire leaders, and retain talent on the ground.
Having recruited across the region for years—mainly in supply chain and industrial functions—I’ve seen the nuances play out again and again. Here’s my take on what businesses need to consider when entering or scaling in Southeast Asia.
1. Southeast Asia Isn’t One Market—It’s Ten
You can’t build a successful hiring strategy here by thinking in regional generalities.
Each country in Southeast Asia has its own challenges and expectations. Let’s take a few common examples:
- Singapore: Talent is sophisticated and globally mobile. It’s often the regional HQ, which means roles here need to operate across borders. Candidates expect clarity, progression, and strong employer branding. Compensation expectations are high—not just in salary, but also in flexibility, exposure, and personal growth.
- Thailand: Here, leadership style and cultural fit are critical. Hierarchies are respected, and soft skills can be just as important as technical capability. I’ve seen technically excellent candidates rejected because they lacked the relational skills or presence needed to lead local teams effectively.
- Vietnam: One of the fastest-growing economies in the region with a young, ambitious talent pool. There’s a real hunger to learn and progress. But with that comes a challenge—retention. Candidates are increasingly mobile, and without a clear growth plan, companies struggle to hold on to high performers.
- Indonesia: A complex and decentralised market. Labour laws differ by region, and there’s a strong emphasis on local language and cultural understanding. I’ve seen companies misfire by trying to operate with regional-only talent. You need local leadership to navigate the market successfully.
- Malaysia: Often overlooked, but highly strategic. It’s home to a strong pool of mid-to-senior level professionals, especially in engineering, manufacturing, and supply chain. But competition is heating up. Regional roles based in KL are on the rise, which is driving up salary expectations quickly.
You can’t apply a one-size-fits-all model. Every market needs its own tailored approach—whether you’re hiring one person or building a full team.
2. Labour Laws Can Be a Minefield
Employment legislation varies dramatically across Southeast Asia, and getting it wrong can be costly—not just financially, but reputationally.
- In Thailand, termination can be complicated, especially with long-serving employees. Severance packages are structured by law and increase with tenure.
- In Vietnam, fixed-term contracts have legal limitations. Renew them too many times and the employee becomes permanent by default—something that catches companies off guard.
- Even in Singapore, with its business-friendly image, there are restrictions around foreign employment quotas and passes depending on industry.
Before you even post a job, you need to know the legal framework you’re operating within. Local legal advice and in-market HR knowledge aren’t optional—they’re essential.
3. Compensation and Benefits: Local Benchmarks Matter
Salaries vary widely across Southeast Asia—not just in amount, but in structure.
In some markets, like Malaysia and Thailand, bonuses and allowances are expected and often form a significant portion of total compensation. In others, like Vietnam, candidates may place more value on training, career path, or exposure to international projects.
Job titles also carry weight. A “Manager” in one market may be expected to lead a team and report into the board, while in another, it might be more hands-on and operational. Without aligning your internal structures to local norms, you risk confusion—or worse, losing top talent to competitors who speak the local language better (literally and figuratively).
I’ve worked with companies who offered a very attractive salary, but missed the mark on other details—like fuel allowances in Indonesia or housing support in Vietnam. Those things matter. Candidates compare offers holistically.
4. The Best Talent Knows Their Value
Across the region, particularly in supply chain and operations, there’s a premium on senior professionals who can lead cross-functional teams, drive transformation, and manage in-market complexity.
Hiring a Head of Supply Chain in Malaysia or Thailand is no longer the “budget” option compared to Singapore. The talent pool is experienced, mobile, and in demand. You need to be competitive—not just on compensation, but also in offering clarity, growth, and purpose.
In some cases, businesses have had to recalibrate expectations—either by adjusting salary bands or revisiting role scope. What was once considered a $100K USD role is now attracting $130K+ for the right profile, especially if it spans multiple countries.
5. Speed and Clarity Win
This may seem obvious, but it’s where many companies still fall short.
The top candidates don’t wait around. If your hiring process drags, if your offer lacks clarity, or if your EVP doesn’t resonate, they’ll move on. Fast.
The companies that succeed in this market are the ones that move decisively. They communicate openly, make hiring decisions quickly, and show respect for the candidate’s time and interest. That makes a big difference—especially in cultures where personal relationships and trust matter.
Final Thoughts
Southeast Asia offers incredible opportunity—but it’s not a plug-and-play region. The diversity that makes it exciting is the same diversity that requires careful navigation. Labour laws, cultural norms, salary structures, and expectations differ market to market.
Get it right, and you’ll tap into some of the most dynamic and driven talent pools anywhere in the world. Get it wrong, and you’ll burn time, money, and goodwill.
If you’re expanding in the region or looking to build high-impact teams in supply chain, logistics, or industrial leadership, I’m always happy to share what I’m seeing across the markets. Let’s connect.
About Connexus Global, we’re excited to continue supporting organizations in navigating this evolving landscape and identifying the leaders who will define the future of sustainable business in Asia Pacific and beyond.
