The Pulse: VMA GROUP’s New Research Study Focusing on Asia
The Pulse, a new study by VMA GROUP Asia, offers a comprehensive view of the corporate communications market in Asia. It explores market trends, predictions, and provides recommendations for hiring managers and candidates. This study reveals insights into the evolving disciplines, leadership relationships, sought-after skills, and upcoming changes in the industry. Here, we summarize key trends and developments that will influence Corporate Communications in Asia in the coming years.
Shifting Power Base in Asia
A McKinsey report predicts that by 2025, nearly 230 Fortune Global 500 companies will be based in emerging world cities, up from 24 in 2000. This shift is already evident, with 24% of The Pulse respondents predicting team expansion in Indonesia, 21% in Malaysia, and 19% in Thailand. In response, VMA Direct was launched to focus on South East Asia, excluding Singapore, which is covered by our Singapore office. Despite this, Hong Kong and Singapore remain challenging markets for finding experienced communications professionals, with even greater pressure in emerging markets like Indonesia due to a smaller talent pool.
Singapore vs. Hong Kong: Competing Hubs
Hong Kong has long been the hub for global financial institutions in Asia. However, Singapore is becoming the preferred location for Western multinationals setting up operations in Asia’s emerging economies, thanks to effective efforts by the Singapore economic board. This shift is evident with more senior appointments moving from Hong Kong to Singapore. Currently, the FMCG and Technology industries dominate in Singapore, while Hong Kong retains the largest share of financial organizations. The talent shortage in Singapore has driven salaries to levels comparable to Hong Kong.
Centralized Hubs: Hong Kong or Singapore?
Despite Singapore’s growth, 47% of The Pulse respondents still report Hong Kong as the central hub for their communication activities, compared to 24% for Singapore. Hong Kong remains the typical location for regional headquarters. A minority, 18%, report a decentralized communications model, while 12% have a regional HQ outside Hong Kong or Singapore, in locations like Shanghai, Japan, Thailand, or Taiwan, indicating a shift in regional dominance.
Professional Development and Industry Maturity
Salary alone does not drive engagement and retention. When asked why they left previous roles, 60% of respondents cited better career development and new challenges, or a lack of training. Communications professionals seek employers who invest in career advancement and professional development. Without clear career paths, talent often moves to other industries with better-defined trajectories.
Media Relations: The Mature Function
Media Relations is considered a mature function in Asia, valued at the board level. This is reflected in reporting lines, with 25% of respondents reporting directly to the CEO or MD, compared to only 6% in Internal Communications. Media Relations is viewed as a key advocate by senior leadership, with 68% describing them as such.
Digital Communications: The Emerging Leader
While Media Relations is mature, Digital Communications is gaining prominence. In 2012, Internal Communications saw growth in recruitment and resource investment. However, 2013 is set to be the year of Digital Communications. Although a standalone Digital Communications function is novel in Asia, 67% of digital respondents predict social media will become the main platform for customer and stakeholder communication. Experience in this area is increasingly sought after, with recruitment and training expected to grow to meet demand.
For more information about The Pulse or other research reports, please contact us at marketing@vmagroup.com. Alternatively, visit our LinkedIn Insights pages.
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