Amidst ongoing economic uncertainty and significant shifts in the global workforce, 2025 is shaping up to be a defining year for business leaders.
Unemployment has risen across the Asia region, with Hong Kong reaching a two-year high of 3.4% in April and Singapore recording 3.1% in March. Layoffs continue to impact various industries, from Zalora’s decision to cut 100 jobs across SEA, to Indonesia’s manufacturing sector seeing over 12,000 job losses due to factory closures at Yamaha Music, Sanken and PT Sritex, and most recently, Hang Seng Bank’s restructuring in Hong Kong to make way for AI-driven roles.
With rising cost pressures, organisational restructuring, and evolving employee expectations, business leaders can no longer rely on business-as-usual approach. Strategic change is not optional – it’s essential.
We speak with Keith Wong, our Regional Director for Greater China and Southeast Asia, as he shares his perspective on how HR leaders are navigating these disruptions and preparing for the challenges ahead in 2025.
1. Building a Workforce for the Future
Keith shares, “Building a workforce for the future means making tough but necessary choices. Sometimes that includes restructuring and aligning resources with the right talent.”
Businesses are focusing on:
- Assess AI-readiness across your workforce by identifying employees who are skilled or adaptable in leveraging AI technologies to drive productivity and innovation.
- Prioritise and protect critical roles in departments that provide irreplaceable value – ensuring your organisation is future-ready and focused on long-term client and business impact.
2. Supporting Workforce Transitions with Agility
Whether due to digital transformation or business model shifts, Keith shares that transitions are inevitable. He shares the top 3 things teams are doing:
- Upskilling and reskilling: Investing in L&D programmes to shift (and train) employees into skillsets that benefit both employer and employee.
- Talent redeployment: Mapping internal talent to new opportunities before considering external hires.
- Flexible employment models: Embracing contingent workforces, EOR models and hybrid roles – to quickly scale and redeploy if needed.
3. Recession-Proofing Through Strategic Workforce Planning
With economic uncertainty looming in several regions, he shares that decision-makers are playing a central role in helping organisations stay agile and lean:
- Scenario planning: Instead of limiting the talent search locally, many companies are expanding their view across the region – and Malaysia continues to stand out as a cost-efficient hub for APAC mid-to back-office operations, thanks to its strong language capabilities and skilled local talent.
- Total rewards optimisation: Rethinking compensation beyond salary, focusing on benefits that matter most to employees (e.g. health, flexibility, career development).
To effectively implement these strategies across borders, employers must first understand the regulatory landscapes they’re operating in. Labour Law frameworks differ significantly differ markets, for example:
- Hong Kong is generally considered employer-friendly, with relatively flexible termination rules.
- Mainland China, on the other hand, has a more employee-protective legal system, requiring strong documentation for terminations, strict severance rules, and social insurance contributions that vary by city.
- Singapore also offers an employer-supportive environment, with clear legislation under the Employment Act.
- Malaysia offers a balanced legal environment, though it leans slightly towards employee protection. Termination requires proper justification and compliance with the Employment Act 1955.
- Japan has high job security for employees, and terminating staff can be legally and culturally challenging. Employers must demonstrate just cause and often resort to voluntary resignation agreements with significant severance packages.
These differences directly impact how employers approach hiring, restructuring and workforce transitions. Our 2025 Labour Law Comparison Chart becomes an essential tool – providing a clear, side-by-side comparison of employment regulations in 17 key markets.
Get your copy of the 2025 Labour Law Comparison Chart NOW!
Whether you’re evaluating the feasibility of restructuring, exploring new employment models like EOR, or navigating statutory entitlements across borders, the chart helps you make informed decisions aligned with compliance and future-readiness.
At Links International, our team of 2,300+ dedicated professionals are here to help you navigate through the future of work. Our services range from payroll outsourcing, EOR, outplacement, visa applications to recruitment and corporate services. Get in touch with us today!