Markets for Corporate Training in ASEAN

Janice Aw

Team Leader / Senior Business Development ManagerServices & Consumer TeamAUSTRADE Singapore

Agenda

• Snapshots of Potential Markets in ASEAN

• India • Malaysia• Thailand• Vietnam• Singapore (and Singapore HR Congress 2008)

• How attractive is the market?

• What are the challenges?

• Who to contact in Austrade?

INDIA - How attractive is the market ?

• India is 4th largest (in PPP terms) and second fastest growing economy (9.0%) in the world

• India's growing employment market presents an opportunity for the budding training industry in the country

• Exponential growth in few sectors leading to huge skill shortage (e.g 10 million jobs in IT services sector by 2009)

• Improving corporate balance sheets and strengthening Rupee makes the market attractive

• Increased spending by both Indian Govt & private sector in training & consultancy sectors

INDIA - Corporate Training Market

• Training industry size is estimated at AUD 1.7 billion

• Estimated healthy spending by Indian companies on training – ranging from 0.5% - 5%

• Your prime targets are MNCs, Large Indian Corporate, IT & ITES

CoYs, Public Sector Units & Government are prime targets

• Existing key players are NIS Sparta, D&B, IIMs, NIIT, Aptech,

Educomp, Dale Carnegie, etc

INDIA - Opportunities for Australia

• Behavioural & soft skills across sectors • IT & ITES • Retail • Automobile• Sales & Service • Banking & Financial services• Telecom• Manufacturing• Hospitality• Healthcare

MALAYSIA - How attractive is the market ?

• Services currently comprise 50% of economy – Government vision to achieve ‘developed nation’ status by 2020; massive growth in services sector required

• A market of extremes – well-educated but with many tertiary educated unemployed because they lack practical skills

• Seeks to be a centre for overseas investment/regional head offices

• Government increased allocation to HRD fund in 2006 - 9th Malaysia Plan

Key opportunities:

Entrepreneurial skills Coaching Advanced/executive leadership Public policy (particularly the measurement of past programs)

THAILAND - How attractive is the market?

• 2nd largest economy in ASEAN – strong consistent growth

• USD700 million sector

• Opportunities in training and consultancy in human resources, tourism, healthcare, management training and consultancy

• Govt Policies incentives for training

• Increasing numbers of MNCs and Thai MNCs

THAILAND - Forthcoming event

• Austrade Pavilion at Personnel Management Association of

Thailand (PMAT) HR Forum, June 26 – 27, 2008 – details are yet to be finalised

• For HR related corporate trainers and consultants to raise awareness in Thai market in presence of over 400 HR persons

• For more information & queries, please contact: Navin Pawa Business Development Manager, Services, Austrade Thailand Email: navin@austrade.gov.au

VIETNAM - How attractive is the market ?

• Strongly growing market with large shortages of experienced managers and professional

• Urgent need in middle and high-level managers [10 000 by 2010]

• 40 % corporate training imported from foreign providers

• 35% country workforce need vocational training – est 40m people

• Australia enjoys good reputation as a strong training provider and has achieved success through firms such as RMIT, GHD and EIC Growth

VIETNAM - How attractive is the market ?

• Training opportunities on both industry and functionality level

• Regulatory drive: VN govt has mandated corporations to allocate USD 500 in training funds for each mid-level employee per year

• Hot industries: Financial services; Engineering; Govt; IT; Oil & Gas

• Hot topics: Customer Service; Management skills; PR & Media Skills; OH&S and IT training

SINGAPORE - How attractive is the market ?

• Singapore’s economy grew 7.7% in 2007 with lowest unemployment rate at average 2.1% in 2007 • Singapore Government continues to inculcate lifelong learning for employability as people is Singapore’s KEY asset

• Corporate training sector is part of new “Global Schoolhouse” target 100,000 overseas executive trainees over 10 yrs

• Base to 7,000 multinationals, 50% with regional HR responsibilities

• Human capital development becomes competitive differentiator talent recruitment, management and retention are key challenges

SINGAPORE - How attractive is the market ?

• Sophisticated and competitive market but on-going demand from private

multinational companies, local MNCs and Govt

• Ongoing demand for both leading edge management / soft skills and industry

focused training – eg retail, healthcare, PE, hospitality & tourism

• The Continuing Education & Training Masterplan recently announced

To provide high quality training to all employees for next 10 years –

skilled and professionals Increasing training places from 20,000 to 80,000 catered to adult workers Govt’s at least SGP200 million spend on this sector Plans to work with both national and private education providers

CORPORATE TRAINING EXPORT - What are the key challenges?

• Culture and Language

• Know your competition - GLOBAL – US / UK and local

• PITFALL - you think you are the BEST

• Unique point of differentiation – eg innovative delivery mode; leading edge content; impressive

& professional promotional collaterals and website

• Majority of markets are price sensitive

• Finding the key decision maker - Rapport & relationship building are IMPORTANT

• Maintaining your pipeline of potential customers for the next job

• Strong track records and testimonials help

• On-going stay-in-touch and Follow up, follow up, follow up – must be prepared for the long haul – time, time and financial resources

• Protect your intellectual property as appropriate

• Government linked projects can be risky – long lead time / cancelled with little warning / adhere to local

requirements

• Stay focused & strategic in export development – 1 OR 2 markets at a time

BUT THEY ARE NOT INSURMOUNTABLE

AUSTRADE CONTACTS IN ASEAN

INDIA Vijay SubramanianBusiness Development ManagerAustrade, Chennai, IndiaT: +91 99400 97181vijay.subramanian@austrade.gov.au

MALAYSIAJuliana Badli (Julie)Business Development ManagerAustrade Kuala LumpurT: +60 3 2146 5669juliana.badli@austrade.gov.au

SINGAPOREJanice AwSenior Bus Development ManagerAustrade SingaporeT: +65 6418 8448janice.aw@austrade.gov.au

THAILAND Navin PawaBusiness Development Manager, ServicesAustrade BangkokT: +66 2 344 6322navin.pawa@austrade.gov.au

VIETNAMHuy Pham (Mr) Business Development ManagerAustrade No Chi Minh CityT:+ 84 8 8299387 huy.pham@austrade.gov.au

SINGAPORE HR CONGRESS 20085-6 May (www.shri.org.sg/hrcongress)

• One of 2 key HR events in Singapore (the other is HR Summit)

• Organised annually by the Singapore Human Resources Institute

• Conference-cum-display concept in hotel setting

• Congress 2007 attracted about 1000 attendees

• Austrade collaborates to profile Australian participants at HR Australia Showcase with dual exposure:

- Exhibition with display table – individual or shared option

- Seminar presentation opportunity – HR Australia Seminar – first come first served

• Joint marketing efforts – Austrade’s HR database (approx 500) PLUS

SHRI’s database of approx 2000 members and general public

SINGAPORE HR CONGRESS 20085-6 May (www.shri.org.sg/hrcongress)

• 24 Exhibitors to date (majority are sponsors) -Cartus -Mercer Human Resources Consulting-Sirva Relocation-John Wiley -UCARA

• Delegates from local and surrounding countries across various industries

• Marketing via EDM to SHRI database, ads in HC mag & sponsors to

market to their database

• Should consider if you are:

-HR consultants

-Professional executive development

-HR related products & services – eg profiling tools

Singapore HR Congress 2008 – Floor PlanCopthorne Waterfront Hotel

SINGAPORE HR CONGRESS 20085-6 May (www.shri.org.sg/hrcongress)

Participation Options:

To apply on www.austrade.gov.au/HRCongress08

SINGAPORE HR CONGRESS 20085-6 May (www.shri.org.sg/hrcongress)

Who to contact:

Sydney SingaporePeter Mackey Janice AwSenior Export Advisor, Education & Training Senior Business Development

ManagerT: +02 9390 2926 Austrade Singaporepeter.mackay@austrade.gov.au T: +65 9177 7032

janice.aw@austrade.gov.auAnna LinExport Advisor, Education & TrainingT: 02 9390 2913Anna.lin@austrade.gov.au