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Remote Work on the Rise in APAC Amid Talent Shortages, Tech Advancements

May 16, 2025
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In Asia-Pacific (APAC), companies are embracing remote and flexible work arrangements, eyeing cost efficiency opportunities, and access to broader talent pools.

According to a new study by the International Data Corporation (IDC), 68% of APAC companies currently employ more than 70% of full-time remote employees and around 30% remote contractors, underscoring the region’s ongoing shift toward remote work.

The IDC study, commissioned by Remote, a human resources (HR) platform specializing in remote employment, surveyed 600 companies with 100 to 2,000 employees across Australia, Hong Kong, India, Indonesia, Japan, Singapore, and South Korea. The findings show widespread remote work adoption in APAC, with growth expected to continue.

Among the companies surveyed, 78% expect to hire more than 60% of remote employees for full-time jobs in the next 12 to 18 months. Japan and Australia have the highest percentage of companies planning to hire remote full-time employees in the next 12 to 18 months, at 85% and 83%, respectively. South Korea and India follow at 79% each.

Additionally, APAC companies are planning to increase the number of full-time employees by at least 10% in the next 12 months, underscoring business growth and expansion. The number of APAC companies that will hire 90% or more full time employees and 10% or less contractors will at least double in the next 12 months.

Contractors are also a key talent pool, with 45% of surveyed companies in APAC planning to hire 20% to 39% of remote contractors. Again, Australia leads with the highest percentage of companies planning to hire 20-39% of their workforce as remote international contractors, at 55%. Following closely are South Korea and Indonesia, both at 47%, India at 45%, Singapore at 44%, and Hong Kong and Japan at 37% each.

Singapore leads in remote work environment

In APAC, the shift to remote work continues, fueled by a blend of digital transformation, cost-saving potential, and a desire to improve employee satisfaction and retention.

A separate 2024 study by EY revealed that enhanced flexibility in work location or remote work opportunities ranked as the second-most significant factor attracting Singapore employees to new careers, employers or jobs roles, cited by 40% of Singapore respondents (global 40%) as a major factor. It ranks just behind higher salary packages at 47% (global 39%).

Singapore also leads globally in remote work adoption. The People at Work 2025 global workforce study by ADP Research surveyed nearly 38,000 workers across 34 markets and found that Singapore had the highest percentage of remote workers at 23%.

Share of on-site, remote and hybrid workers by country, Source: People at Work 2025, ADP Research, Jan 2025
Share of on-site, remote and hybrid workers by country, Source: People at Work 2025, ADP Research, Jan 2025

The city-state also leads in flexible working practices, with almost 45% of professionals in Singapore spending four days a week or less in the office, and 32% adopting a three-day office work week, according to a 2024 survey by recruitment company Hays.

2024 work arrangement for working professionals in APAC on a day-to-day basis, Source: 2025 Hays Asia Salary Guide, Mar 2025
2024 work arrangement for working professionals in APAC on a day-to-day basis, Source: 2025 Hays Asia Salary Guide, Mar 2025

Easing pressure from the talent shortage

In Singapore, remote work is proving vital in helping Singaporean companies attract skilled professionals regardless of geographic constraints.

In 2025, Singapore remains one of the most talent-constrained markets globally. According to the latest ManpowerGroup Global Talent Shortage Survey, 83% of employers in Singapore reported difficulties finding the skilled talent they need, placing the country sixth worldwide, well above the global average of 74%.

Talent scarcity around the world 2025, Source: 2025 Singapore Talent Shortage Survey, Jan 2025
Talent scarcity around the world 2025, Source: 2025 Singapore Talent Shortage Survey, Jan 2025

This marks an increase of 4% from the 2024 survey (79%) and a doubling since 2019 (41%).

Singapore talent shortage over time, Source: 2025 Singapore Talent Shortage Survey, Jan 2025
Singapore talent shortage over time, Source: 2025 Singapore Talent Shortage Survey, Jan 2025

Employers in six of nine sectors reported experiencing more talent scarcity than a year ago. Those in the transport, logistics, and automotive sector reported the most difficulty finding skilled talent (91%), followed by communication services (90%), and information technology (88%).

The most in-demand skilled are IT and data (38%), engineering (28%), and operations and logistics (23%). Demand is also rising for sustainability and ESG (environmental, social and governance)-related expertise, which together account for 41% of reported skills shortages.

 

Featured image by suwant on Freepik



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Tags: AdvancementsAPACRemoteRiseShortagesTalentTechwork
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