Human Resource Environment

 
The economic potential of a country is determined largely by the quality of its labour force and the availability of people with the right mix of skills to work in high growth industries. Companies looking at overseas investment opportunities are increasingly drawn to locations offering a ready supply of well educated, versatile people who can contribute strongly to the bottom line.

Australia's labour force offers one of the highest skill levels in the Asia Pacific, competitive salaries and better availability than many other countries in the region. A 2004 survey of expatriate business people working in Asia rated the overall skill level of Australia’s labour force as one of the highest in the Asia Pacific.

The survey, conducted by the Hong Kong based Political and Economic Risk Consultancy, also found that Australia’s high-tech proficiency, productivity and industrial relations environment are rated among the best in the region.


Human Resource Environment, 2004 (1)

Country Quality of the local education system Overall skill level of the labour force Overall productivity of the labour force Cost of management staff Availability of high quality management staff Hi-tech proficiency Threat of labour unrest Average (2)
Australia 2.50 2.63 2.75 5.75 4.00 1.50 1.88 3.00
India 3.70 3.00 4.00 1.00 1.00 1.30 7.00 3.00
Singapore 2.50 2.63 2.75 5.75 4.00 1.50 1.88 3.00
United States 2.36 3.27 2.82 6.64 3.09 1.27 3.82 3.32
Taiwan 3.67 4.00 3.80 5.00 4.00 1.80 3.00 3.61
Japan 4.88 2.25 2.75 6.25 5.00 3.00 3.25 3.91
Hong Kong SAR 4.90 4.60 3.40 5.60 5.00 4.50 1.20 4.17
Malaysia 5.44 5.67 6.67 3.11 6.22 5.78 2.89 5.11
Philippines 7.13 4.47 6.87 3.13 4.07 4.93 5.60 5.17
Korea 6.67 3.33 4.83 4.53 6.00 2.33 9.00 5.24
China 5.17 6.00 6.00 4.33 7.00 6.00 4.00 5.50
Thailand 7.00 6.20 6.80 4.20 7.40 5.60 4.00 5.89
Vietnam 7.71 5.29 5.14 5.14 6.86 6.29 4.86 5.90
Indonesia 6.75 7.50 6.50 2.75 8.00 7.75 7.50 6.68


Footnotes:

Grades are on a 0 to 10 scale, with 0 representing the best grade possible and 10 the worst
1: Grades are based on the survey responses of expatriates living in each country, except for Australia and the United States, where grades are based on the surveys of nationals of each country living in Asia
2: Simple average of the seven selected categories. Seven categories, from a total of 18 assessed in the survey, are presented in the table - the average is only based on the seven categories selected for this table. Survey grades should not be taken too literally for cross-country comparative purposes. Respondents in one country, for example, China, were assessing the situation there for a particular category, whereas respondents in Malaysia were focusing only on Malaysia. There is no reason to expect respondents to have given a grade while keeping other countries in mind.

Source: Political and Economic Risk Consultancy Ltd., www.asiarisk.com, August 2004