In the past, for many businesses, being able to market their products and services in the American market was the dream. However, as the tides change directions, most organizations are heading on the other side of the Pacific to expand their enterprise.
The Asia Pacific (APAC) region is the new goldmine for businesses that foresee global operations. It has a very business-friendly environment for foreign investors. APAC boasts world-class innovation, infrastructure, and emerging markets. GDP growth in many APAC countries exceeds that of Western markets today.
The Asia Pacific region continues to regain its market momentum and open its doors to international companies to expand to their countries.
Akamai research has market projections for Southeast Asia’s potential internet economy from $53 billion in 2023 to $130 billion by 2025. Furthermore, internet traffic in Australia increased by 43% year over year from the first quarter of 2019 to the first quarter of 2020.
When it comes to economic growth, the International Monetary Fund accounted for 37% of the global GDP in the Asia Pacific. Overall gross domestic product (GDP) was $31 trillion in 2020. Further, the Asian Development Bank positively predicted that the region will generate 60% of the total world growth by 2030.
The increasing middle class predicted at 472 million in 2030 is one of the key drivers affecting Asia’s fastest digital economy. Given the advantages of having a large middle class, companies that are fast to implement a multi-market expansion strategy are in the best position to capitalize on APAC’s potential.
Economic factors like exports and worldwide expansion help the region recover from the pandemic’s scourge. Business leaders appear to have both the desire and the ability to uplift APAC’s growth narrative, economic proposition, and confidence.
Meanwhile, language difficulties, cultural variations, and currency exchange rates are just a few issues that might arise when a company expands into new territories like APAC.
The latest Gartner’s research saw that skill deficit is also a risk for multinational firms. Furthermore, HR firm Korn Ferry predicted that it might result in $8.5 trillion in lost revenues for international companies. The spread of the epidemic, worldwide expansion has become inconvenient for enterprises. New roadblocks in travel, visas, and other regulatory issues affect the international plans of many businesses. Working with local networks that are flexible enough to facilitate quick development at scale without hefty upfront investments can help.
In a diverse region like APAC, connections are essential and local expertise. It’s a matter of available resources and your plan to establish your business in the APAC region. You may opt to build a presence and start an office right away. However, it’s not as easy as it sounds. Foreign regulations vary across the APAC region. Furthermore, non-compliance might cost you more and may affect your bottom line.
Hence, many businesses hire Employer of Record (EOR) services to facilitate their international expansion. Employ is an EOR provider based in the Asia Pacific region that offers various benefits. We have the local expertise and the ideal partnerships to ensure total compliance for your business operations. Let us guide you as you scale your business in exploring the APAC region with ease. Contact us today.
Olivia Yu has decades of experience in the Human Resources industry. She’s the Regional Director for Asia Pacific of a famous international HR company. Olivia’s international experience inspires her to write articles about human resources and global staffing.