(SINGAPORE) Thousands of job cuts in US and European banks - a fallout of the sub-prime mortgage crisis - are forcing bankers in those countries to seek jobs further afield. And they are showing interest in a region still relatively insulated from the crisis: Asia, particularly Singapore.
Headhunters say they have seen a significant increase in interest from bankers in the US wanting to work here. This is hardly surprising, given that 65,000 jobs have been cut by the world's biggest banks and securities firms over the past 10 months as mortgage losses and writedowns for financial institutions reached US$319 billion, Bloomberg data showed. And with consolidation and streamlining on the cards, more jobs are in danger.
'The number of candidates from the US looking to relocate to Asia has probably at least tripled or quadrupled compared to last year,' noted Fabrice Desmarescaux, head of financial services for Asia Pacific at headhunter Spencer Stuart. 'It used to be difficult to get any senior finance professional in the US interested in moving to Asia. Now we are getting way too much interest!' he exclaimed.
'It used to be difficult to get any senior finance professional in the US interested in moving to Asia. Now we are getting way too much interest!' - Fabrice Desmarescaux,
head of financial services for Asia Pacific at headhunter Spencer Stuart
David Jones, managing director of Asia Pacific at recruiter Robert Half, concurred, pointing out: 'We have seen an increase in the number of resumes of about 200 per cent from North American applicants seeking employment in Asia Pacific, with particular interest in Singapore.'
Added Pernille Storm, director of banking & finance at Hudson Global Resources: 'Last year, we saw hardly any interest from these markets (US and Europe), but towards the end of last year and up till now, there have been a few hundred inquiries.'
Over at Robert Walters, the number of inquiries from the US about Asia have jumped almost 100 per cent, said Gary Lai, manager of the firm's front office banking division here.
Singapore is seen as an attractive place which is continuing to grow, especially in private banking and back office operations. 'In years gone by, bankers would look only at London, New York or Tokyo. I believe that the growth in Singapore offers talented candidates a wide range of opportunities,' said Nick Hughes of Fox Partnership, which specialises in hires in wealth management.
The outlook in Asia is still good, and companies here are still hiring, Mr Jones from Robert Half pointed out. In addition, Singapore also offers good infrastructure and low income tax rates that Westerners find attractive, he added.
Mr Lai said mid-level to senior hires were drawn by the quality of life and schooling here. Meanwhile, junior bankers had started looking at Singapore because of its shopping options and the prospect of flying to neighbouring countries on budget airlines. These foreign bankers are mostly seeking positions in the front office, in investment banking and debt securitisation, while some are proprietary traders, said Hudson's Ms Storm. 'They tend to be mid to senior level - the more expensive people who have been laid off in the US and Europe,' she added.
But they cannot afford to be picky about the pay; most are asking for the same or similar jobs, but not necessarily the same pay. 'There is an awareness that it will not be a like-for-like compensation package as the cost of living and tax structure is different between the countries,' she said.
Mr Jones says this new breed of expats is different in that they are immediately available and ready to go. 'They are easier to hire, and can just up and leave.' He added that they come here on local, not expat, terms and are about 40 per cent less costly to hire than expatriates, since there is no need for allowances. Recruiters say expat packages are still offered typically to senior individuals or key hires, while lower-level staff get hired on local terms.
Still, it won't be easy for many of them to find jobs here as they lack Asian experience, some recruiters said.
'Our clients in Asia first and foremost want candidates who can operate in the local context,' explained Mr Desmarescaux. 'Many US bankers have never worked outside North America. So they are very unlikely to get much traction here unless they are truly bringing something distinctive to the table.'
Mr Lai estimated that the actual increase in the number of American bankers securing jobs here had been only 10-15 per cent. 'Banks based in Asia will consider employing returning Asians who are working in the US but would otherwise prefer to hire talents with relevant Asian working experience,' he said.
Added Mr Desmarescaux: 'The reality is that for many searches we find the right candidates right here in Asia without having to import someone who has never worked here.'
This article was first published in The Business Times on Jun 5, 2008
