Tech layoffs are contributing to the crypto winter After the last few years of unprecedented growth, the global tech market has been fraught with layoffs. It started with the crypto crash in May last year and swiftly affected the rest of the tech industry. From big tech to startups, companies have been announcing layoffs since the second half of 2022. This has continued into 2023. The Asia region, being a major part of the tech ecosystem, has not escaped the layoffs. ​US-headquartered companies, such as Amazon, Meta, Google, Microsoft, Salesforce, Twilio and Zoom, are not the only ones laying off employees. Asian headquartered players such as GoTo Group, Carousell and Glints have also made layoffs. Flash Coffee and Sea Group have also reportedly reduced headcount.​Crypto.com, a cryptocurrency exchange company based in Singapore, revealed in January 2023 that it has “made the difficult decision to reduce its global workforce by approximately 20%”. These announcements have not come out of the blue though, especially when you consider the current “crypto winter” (used to describe the global crypto market cooling). The recent collapse of FTX and the tech-heavy Nasdaq’s disappointing end to the year (finishing with four consecutive negative quarters, which only happened back in 1983-84) has contributed to the downturn. ​With a global recession looming, constant talks of interest rate hikes, ongoing supply chain challenges and the Russia-Ukraine war, it is not surprising that many businesses are feeling jittery about what lies ahead.​The Asia region may avoid a recession, but if Europe and the US experience a downturn, demand will likely slow and this will undoubtedly have an impact on growth in APAC. Organisations in the tech industry (including startups) have spent the last few years on a massive hiring spree and many over-invested. The recent raft of layoffs is merely a way for those companies to rebalance from the last few hectic years. ​So, what is in store for the tech industry over the next few months? Read on to find out. ​Industry trends > Organisations in the tech sector are tightening their belts and have reduced spending.​> Hiring activity has fallen and many companies are not replacing employees that leave voluntarily.​> Following years of “growth at all costs”, tech companies have shifted their approach due to economic uncertainty and are now focusing on prudence, harmonisation, optimization and profitability.​> We expect M&A activity to rise over the coming months as organisations take a more strategic approach to growth. We have also seen a lot of non-tech companies treat the recent spate of layoffs in tech as an opportunity to acquire talent that has been impacted by restructuring.​> Another observation from the last few months is that some special projects and new product development initiatives have been put on hiatus as companies and investors from the VC and PE firms monitor the market and err on the side of caution.​What do tech candidates in APAC want?​More stability: Candidates want job stability, which isn’t surprising given the current economic climate. Besides a robust balance sheet, candidates want to work for companies with a long-term vision for growth and sustainability. ​A return to traditional industries and multinationals (MNCs): Increasingly, candidates across APAC are turning back to explore roles within more traditional industries, as part of risk mitigation. Candidates’ risk appetite is waning as they prepare for a possible economic recession.​Competitive remuneration packages: Regardless of the uncertain market climate, candidates still expect competitive remuneration package from employers. This especially holds true for candidates who are currently employed, with no strong push factors. ​In-demand tech skills ARTIFICIAL INTELLIGENCE (AI), MACHINE LEARNING (ML) AND WEB 3.0: Thanks to the recent chatter and excitement around ChatGPT, generative AI is the current buzz in the tech world and looks to be here for the long haul. Engineers skilled in AI, ML and data science are well positioned to ride this trend. IT OPERATIONS: From network infrastructure to applications and cloud hosting, candidates with IT operations expertise remain highly sought after. This skillset was in high demand during the pandemic, when virtual working became the norm because of pandemic-enforced lockdowns. And remote work is something a lot of candidates still want despite the pandemic-related restrictions coming to an end. Many companies have launched hybrid work programs as a result so that candidates get to split their time between the office and working remotely. In addition, as many companies plan to optimise their current systems and processes, IT operations roles will only grow in popularity this year. INFORMATION AND CYBERSECURITY: As a result of the shift to remote work during the pandemic, companies now have advanced, complex networks and store more data in the cloud than ever before. Keeping their networks and data safe is top priority for all companies, especially when you consider that organisations in APAC are attacked 51 times per week, on average, data from Check Point revealed. And organisations that are planning to optimise and consolidate their networks and tech platforms over the coming months will need candidates with cyber skills to ensure security is top of mind. DATA SCIENCE, ENGINEERING AND MANAGEMENT: Data professionals with experience in data collection, organisation and storage (in a way that is efficient and secure) continue to be in demand. Many companies are looking for tech professionals with data analysis and information security experience as well as roles like data architects and data engineers..TRANSFORMATION AND COMMERCIAL (DIRECT REVENUE-GENERATING) ROLES: Tech candidates with expertise in transformation and commercial roles are highly sought after. A lot of companies undergo transformation during periods of uncertainty to generate efficiencies and we have already seen a rise in demand for candidates with these skillsets. We expect demand to soar further in the coming months. ​Recent PlacementsUS based Global Commodity CompanyRegional Technology Risk & Security Manager, APACGlobal Education GroupRegional IT Director, APACUS based Medical Device CompanyHead of IT, APACGeospatial Analytics CompanySoftware Engineering Director​European Shipping and Logistics companyRegional IT Security Manager, APAC​Global Optoelectronics Manufacturing CompanyIT Director, Asia​Global Renewable Energy Manufacturing CompanySenior Director, Infrastructure and Cloud ServicesAirlines & AviationSenior IT Security Manager​Portfolio Investment GroupAssociate Director, Cybersecurity Solution ArchitectLuxury Retail CompanySenior IT Manager, AsiaGlobal Provider of Technology Services, Products and SolutionsGlobal IT Director, ApplicationsStartup TeleHealth CompanyChief Product Officer​2023 will be the year of correction 2023 will be the year of correction and realignment. Many companies will embark on change, transformation initiatives and reorganisation programs in response to the evolving market conditions. Despite predictions that APAC will escape a recession this year, a downturn in Europe and the US is likely, which will inevitably impact growth in the region. So, it comes as no surprise to learn that organisations will be focusing on boosting performance, innovation and, ultimately, the bottom line as they navigate a possible global recession. ​One thing that is abundantly clear is that the Great Resignation and “quiet quitting” phenomena that we have seen over the past year may become less relevant corporate themes in 2023. The pendulum has swung (even if just a little) from a candidate market to an employer market. Although the latter half of 2022 was reminiscent of the dot-com crash seen in the early 2000s, it is not all doom and gloom. There are still pockets of tech hiring across various industries. Despite the macroeconomic headwinds, for companies to thrive, seeking top talent continues to be an infinite game. ​About the author​Karen Yap | Directorkyap@profileasia.com​+65 6513 2542​With more than 16 years of executive search experience, she focuses on hiring for mid to senior level mandates within the APAC region, covering the following specialist functions:- Digital & Technology- Commercial: S&M- Strategy & General Management​She works with global multinationals, locally based conglomerates and Startups, with clients coming from consumer lifestyle, technology and professional services sector.​If you wish to discuss any of the observations in this report, please don’t hesitate to reach out to Karen.Key contactsAcross our five regional offices, we provide access to a longstanding network throughout Asia. Speak with our experienced consultants today to learn more.​SINGAPORE​Karen YapDirectorkyap@profileasia.com​HONG KONGPaul SheltonDirectorpshelton@profileasia.com​SHANGHAI / BEIJINGNicole LiAssociate Directornicole.li@profileasia.com​TOKYOJonathan NaylorAssociate Directorjonathan.naylor@wilsonhcg.com​​Download the full report here.

Introduction and overviewAs many companies and economies emerged from the challenges and restrictions of the COVID-19 pandemic, 2022 saw significant activity within risk management functions. In light of this, Profile surveyed a range of risk professionals across the Asia Pacific region to better understand the current trends and opinions on a multitude of topics including hiring, market concerns and diversity progress.​​​​24% of respondents consider themselves to belong to a diverse or underrepresented groupSentimentOverall, sentiment within the risk function improved in 2022. Almost half (48%) of respondents said they feel the function is more valued than it was 12 months ago compared with 17% who feel the function is now less valued. Similarly, nearly 45% feel the risk culture across all three lines of defence has improved versus 12% who feel it has deteriorated. With several headwinds expected in 2023, risk functions will increasingly be called upon to manage new and challenging situations. Therefore, the perception of, and value placed upon, risk management will only continue to grow in importance. As one respondent noted, “in light of the current situation, people are more aware of the contribution from their risk colleagues”. Exactly how these challenges materialise and evolve remains to be seen, however, confidence among the risk management community continues to be relatively high, with 58% of respondents either somewhat confident, or very confident, in the function’s ability to weather the challenges of the coming 12 months.​Diversity, equity, inclusion and belonging (DEIB)Diversity, equity, inclusion and belonging is still a major consideration for risk management leaders (as well as wider business leaders) and the conversation in Asia continues to evolve beyond gender and into other areas including disability, ethnicity and sexual orientation. For many hiring managers, improved diversity of the risk function is no longer just a desired outcome but a must-have with concerted efforts during the hiring process focused on ensuring a diverse shortlist of candidates are presented and interviewed. That is not to say that there haven’t been challenges in maintaining the positive momentum seen in this space, with COVID-19 and associated external pressures impacting the ability to improve diversity initiatives as much as desired. In fact, 24% of respondents felt that in light of the external challenges the organisation and risk function have faced, they have not been able to dedicate as much resource to their diversity initiatives.​​Location strategyThere were plenty of headlines – and even more behind the scenes conversations – throughout 2022 as to the evolving location strategy of businesses across APAC. As a result, we have seen a shift in favour of Singapore versus Hong Kong both in terms of strategic importance and hiring activity, as can be seen later in the report.​However, with an evolving COVID-19 strategy and the associated reopening of Hong Kong, it will be interesting to see if the city will be able to attract new and returning talent and recoup some of the skills it lost during 2022. Equally, with the cost of living increasing significantly in Singapore, inward migration may dwindle during 2023 as the economic benefits of working in the city state become less evident.​Elsewhere, Mainland China ranks as the third most strategically important location for respondents followed by Australia & New Zealand and India a more distant fourth and fifth respectively. Japan continues to operate as something of a satellite location, with Asia ex-Japan operating models observed in many organisations.​Around 9,400 permanent roles were expected to have been created in Singapore in 2022, according to a report by PERSOLKELLY and government agency, SkillsFuture Singapore.​​Operating structureThe operating model of risk functions and their relationship with compliance continue to evolve in many organisations, albeit not at the same pace as we have seen historically. Nearly half (43%) of the respondents noted that risk and compliance now operate as either a fully, or partly combined function.​​​Trends and challengesWith myriad external developments and challenges increasing the pressure on risk management functions, it is no surprise that we have seen an increase in focus upon a range of new and emerging risk types. For example, climate risk has now gained a foothold in regional functions. Some 62% of respondents said their organisation now has a dedicated ESG/climate risk lead versus 14% who expect one to be appointed next year and 24% who don’t believe their organisation plans to appoint one in the coming 12 months. Other risks cannot be overlooked and the expected economic headwinds for the year ahead mean risk types such as credit risk, technology risk and political risk remain significant areas of potential concern.​​​​The aforementioned challenges that risk management functions are likely to face over the coming 12 months are broad and will evolve throughout 2023, however, the top five challenges include:​1. Economic pressures2. Geopolitical developments3. Talent shortages 4. Cost pressures5. Increased market/price volatility​Talent and hiring trends2022 saw significant hiring activity across the APAC risk management market with many firms and functions capitalising on reduced COVID-19 restrictions and subsequent improved market conditions in most locations. A detailed review of the people moves made throughout 2022 can be found on page seven. The picture for 2023 looks mixed, however, with just over a third of respondents indicating that they expect headcount in their risk functions to increase over the next 12 months.​Hiring in 2023 is expected to remain focused on emerging risk types with climate risk and technology risk roles the most likely to increase. Conversely, enterprise risk was the most expected to witness a reduction in headcount.​Beyond the range of geopolitical and fiscal pressures that risk functions will face during 2023, one of the biggest challenges to their growth and success is finding the right talent. 83% of respondents feel at least somewhat concerned about the current shortage of talent in the region while 37% expect they will have to adjust their talent attraction and hiring practices as a result.​Identifying talent with skillsets that go beyond the requisite technical knowledge is of course not a new practice, but we are continuing to see increasing emphasis put on behavioural and cultural fit during the interview process.​​TOP 5 GROWTH RISKS1. Climate risk2. Technology risk3. Operational risk4. Investment/portfolio risk5. Market risk​TOP 5 CONCERNS FOR HIRING MANAGERS1. Fundamental skills shortages2. Budget constraints3. Competing job offers4. Interpersonal/soft skills5. Speed of hiring processesTOP 3 ATTRIBUTES HIRING MANAGERS LOOK FOR1. Stakeholder management2. Ability to influence3. Willingness to embrace change​People moves analysisOverall, 2022 saw an increased level of activity, especially in the first half of the year as firms battled to add headcount and improve skillsets in certain areas following two years of muted activity during the COVID-19 pandemic.​Activity was seen to be higher in Singapore in both buy-side and sell-side institutions as the city state capitalised on greater restrictions and uncertainty in Hong Kong to attract overseas talent.​We saw a greater level of activity for gender diverse candidates, with this accounting for 36% of people moves in 2022 versus 24% in 2021. There was very little difference observed in the diversity of people that moved across Hong Kong and Singapore.​Non-financial risk and some emerging risks continue to see the greatest mobility of gender diverse talent while risk types such as credit, market and technology continue to see male talent making up well over 50% of the observed moves.​Credit risk notably stood out as the most active risk type for hires and internal moves. Credit risk has previously been one of the more stable risk types in this regard, however, significant uncertainty in areas such as China real estate has forced banks to increase (or upgrade) their headcount and capabilities.2022 also saw a notable increase in the number of external moves as candidates’ appetite to move to another firm increased with the improved market conditions and hiring managers subsequently capitalised on the greater levels of strong talent in the market. Overall, 65% of the observed people moves across buy and sell-side were external.​In the buy-side, we saw a significant focus on hiring investment and portfolio risk professionals, both into existing teams and newly created functions.*This analysis applies to observed people moves within the second line of defence at major financial institutions across Hong Kong and Singapore, at the VP (Vice President) level (or equivalent) and above.​​Looking aheadIt is reasonable to expect that 2023 will look noticeably different to 2022 as wider market sentiment weighs down on risk functions across the region. While there remains cautious optimism for many risk professionals for an improvement in economic conditions, many firms and risk functions are bracing themselves for a turbulent 12 months ahead. This will mean not only difficult day-to-day management of risk, but also challenges within the hiring market. We expect total hiring levels across the region to be reduced compared with 2022 and for candidates to remain active in their searches, but to become increasingly selective in the opportunities they pursue – as was the case in 2020 and 2021. As such, hiring managers will need to ensure their talent attraction strategies and recruitment processes are optimised so that they can capitalise on the best talent.​Beyond the challenges, there are also several opportunities for the risk function to develop and operate more effectively, and those that adapt best will be best placed to manage the coming 12 months:1. Improved synergies across risk and other functional areas2. Greater collaboration across all three lines of defence3. New and emerging technologies​About the authorJonny Warner brings a decade of executive search experience to the team executing mandates in London and across Asia. He is a specialist within infrastructure/corporate functions with a particular focus on risk management, finance, operations and technology.​Prior to Profile, Jonny worked at a leading search firm in its Hong Kong and London offices delivering senior level mandates across the region. Outside of work, Jonny’s passion to reduce ocean plastics led him to establish Deep Blue Straws as part of his mission to replace plastic straws with environmentally friendly alternatives.​​If you wish to discuss any of the observations in this report, please don’t hesitate to reach out to Jonny.​Key contactsAcross our five regional offices, we provide access to a longstanding network throughout Asia. Speak with our experienced consultants today to learn more. ​HONG KONGJonny WarnerAssociate Director+852 3589 6820jonny.warner@profileasia.com​SINGAPORE​Stanley TeoManaging Director+65 6513 2575steo@profileasia.comSHANGHAI​ / BEIJINGAndy ZhiDirector+86 21 6080 0608azhi@profileasia.com​TOKYONicolas RumebeDirector+81 90 3814 1932nicolas.rumebe@wilsonhcg.com​​Download the full report here.

2023 APAC legal and compliance market updateAPAC has experienced a buoyant, candidate-led market across legal and compliance. Despite the global pandemic, we have seen generous salary increases and sign-on bonuses to support this. Many companies now have hybrid working policies and this has become a retention tool (especially for millennial and Gen Z candidates). We have seen firms that do not offer flexible hybrid policies struggle to attract candidates.​We foresee continued hiring growth in legal and compliance across APAC in 2023, though the incoming economic uncertainty raises doubts for more senior-level candidates to make moves. China’s new data privacy laws have driven high demand for onshore compliance/data privacy counsels in the region who are able to support the Chinese market.​Six hiring trends across APAC#1. INCREASED DEMAND FOR DATA PRIVACY ROLESGlobal regulators, led by the EU, have largely shaped the data privacy framework since the inception of the general data protection regulation (GDPR) in 2018.​Additionally, rapid technological advancements and hybrid working policies across APAC have added to the increased demand for data privacy roles. Evolving to become all-encompassing in skillset, from policy, advisory and implementation support for new regulations, finding qualified candidates with the necessary skillsets within the industry continues to prove challenging.​We expect demand to grow in the coming months as businesses continue to transform working practices and evolve digital skills.​China also recently updated its data privacy laws in 2021, which impacts all organisations with a presence in China.​#2. GROWING ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONCERNSWe’re seeing an uptick in roles focused exclusively on ESG legal and compliance and this can largely be attributed to the twofold increase in the number of ESG policies in the region over the past five years, according to the Goldman Sachs 2022 report. More policy means increased visibility into corporate disclosure and around climate reporting, carbon pricing and fund requirements. This has led to more dedicated resources for ESG reporting.​We’ve seen more roles where ESG-oriented tasks in the legal and compliance space require up to 50% of the candidates’ work scope to include these disclosures and research.​#3. RISING ASSET AND WEALTH MANAGEMENT ROLES IN SINGAPORE PLUS SUSTAINABLE INVESTMENTSBudding investments in Singapore around family offices and asset and wealth management have driven demand for legal and compliance professionals in this space. Since legal counsel became strategic advisors during the COVID-19 pandemic, their roles have been elevated to encompass new policies and establish new procedures in line with changing financial priorities and requirements. This includes prioritising and managing portfolios that are environmentally and socially conscious. ​Check out our 2022 Singapore Family Office Market Report.#4. TIGHT LABOUR MARKETS IN HONG KONGIn fund management and legal and compliance, hiring talent into Hong Kong has proven challenging for multiple reasons. Between expatriates choosing to leave Hong Kong to struggles around relocating candidates from abroad, labour markets are incredibly tight. This has led to Hong Kong candidates receiving higher salary increases when moving jobs compared to previous years.​Flexibility and hybrid working models have been helping to attract talent in the region.#5. CHINALegal and compliance hires are in demand since asset managers are diversifying their portfolios to expand their WFOE mutual fund, joint venture wealth management or applying for a renminbi (RMB) license. There is huge demand for bilingual data privacy lawyers who can interpret Chinese data privacy regulations as well as effectively manage both the Chinese regulators as well as international stakeholders.​Having data privacy counsel has become essential in China with the Personal Information Protection Law and Data Security Law that both came into effect in late 2021.#6. MAINTAINING HEADCOUNT IN JAPANJapan’s recent reopening in October of 2022 has caused a bigger delay in bouncing back from the COVID-19 pandemic than other APAC countries. These closures meant the hybrid working model has been a top concern, with hiring managers finding difficulty gaining legal and compliance workers from the middle of the year onwards. For global firms, the talent pool for bilingual candidates has been an ongoing challenge. Hiring managers are feeling the pressure and fear of losing headcount going into 2023, which would inevitably impact business’ bottom lines.​Recent PlacementsHONG KONGEuropean Asset ManagersAPAC Head of LegalHead of Compliance, Hong KongRegional Legal Counsel​Asian Hedge FundsGeneral CounselHead of Compliance​US PE FundRegional Regulatory Compliance​US Alternative Asset ManagerRegulatory Compliance​US Asset ManagersRegional Head of ComplianceGreater China Regulatory Compliance​Global Asset ManagerAPAC Counsel​Global BanksVP, Equities ComplianceVP, Corporate Banking Compliance​Global PE FundGreater China Regulatory Compliance​Boutique Asian Fund ManagerRegulatory and Investment ComplianceSINGAPOREGlobal Investment BanksMD, APAC Chief Compliance OfficerMD, APAC Head of Wealth Management Legal & Compliance​Global Real Estate Investment ManagerChief Compliance Officer​US BankLegal Counsel, Data Privacy​Global Asset ManagersHead of Compliance, SingaporeAssociate Director, Legal​US listed Fintech FirmAPAC Head of Compliance​Asian Securities FirmHead of Compliance​Family OfficeDirector, Compliance​Global Private BankVP, Private Banking Compliance​European Asset ManagersSenior Compliance ManagerLegal Counsel, Wealth TechnologyESG Compliance​TelecommunicationsSenior Legal Counsel​US Investment BankCompliance ManagerCHINAGlobal Asset ManagersChief Compliance Officer, Mutual FundChief Compliance OfficerSenior Legal ManagerSenior Legal ManagerVP, AMLSenior Manager, Anti- Bribery & Corruption​Global Investment BanksChief Compliance OfficerVP, Compliance​Asian Asset ManagersHead of Compliance​European Asset ManagerSenior Compliance Manager​Global PE FundVP, Corporate Legal​US BankVP, Compliance​HospitalityLegal & Risk Director​Luxury GoodsLegal Counsel​Key contactsThe demand for legal and compliance talent will continue to grow both for the foreseeable future – and beyond. Speak with our experienced consultants today to learn more. ​SINGAPORE​Yeo Suan WeiDirector, Legal & Compliance+65 6513 2573syeo@profileasia.com​SHANGHAI​Andy ZhiDirector, Financial Services Practice+86 21 6080 0608azhi@profileasia.com​Sophia SunDirector, Legal / Finance Practice+86 21 6080 0624ssun@profileasia.com​​TOKYONicolas RumebeDirector, Head of Financial Services+81 90 3814 1932nicolas.rumebe@wilsonhcg.com​Kayo HayashiAssociate Director, Legal & Compliance+81 90 3475 9788kayo.hayashi@wilsonhcg.com​​HONG KONGSonny WongAssociate Director, Legal & Compliance+852 3589 6804swong@profileasia.com​​Download the full PDF version here.​