The View | Asia’s ‘thriving tiger’ economies have a chance to be trailblazers in a world disrupted by geopolitics and tech
- Hong Kong, Singapore, South Korea and Taiwan have managed to hold their own against developed economies in other regions for decades
- However, amid geopolitical fragmentation, game-changing technological advancements and social divisions, they need to adapt quickly
Only a handful of economies in the world are both rich and have continued to grow, and about half of them are located in Asia. But despite their success, these economies now face significant challenges to further growth and need to find a new path forward.
The four tiger economies of Hong Kong, Singapore, South Korea and Taiwan boast gross domestic product per capita, at purchasing power parity, of above US$50,000. They have also been able to consistently deliver growth rates of almost 3 per cent after they got rich. These thriving tigers have on average maintained high productivity and competitiveness, and relatively low youth unemployment, compared to many developed economies in other regions. Common factors for their success include continued pro-growth policies, flexible labour markets, and upgrading of infrastructure.
Governments of the thriving tiger economies have largely been proactive in addressing the skill mismatch between education and work, promoting work-based learning and providing financial incentives to encourage employers to offer apprenticeships and internships. They now need to help skilled workers build lifelong competencies to meet the changing demands of a digital economy.
Singapore’s SkillsFuture and South Korea’s Digital New Deal are examples of coordinated efforts to align talent with the digital economy. Yet the focus on technical competencies is insufficient.
