I will then conclude with some thoughts on the implications these developments on talent development and management, in particular, for the financial sector. The challenge for recruiting and retaining the right talent has also become increasingly more acute, particularly for the financial sector. Therein lies the urgency for the greater focus of attention on these issues and the need to accord greater priority for this important agenda. The transformation of the economic and financial landscape The economic, financial and business landscape is rapidly being transformed and is continuously evolving. Globalisation and internationalisation, accelerated by liberalisation and the rapid advancement in technology are increasing connectivity between economies and between financial markets across borders. This is resulting in greater international economic and financial integration and interdependence. Regional integration in Asia has for example created immense opportunities for economies of scale while paving the way for new and larger markets. A significant global shift in this environment is also the growing importance of emerging economies. As a result, many of these economies are becoming huge consumer markets. In Asia, this is resulting in greater regional trade and cross border investment activity. A further fundamental change is the shift towards greater market orientation as markets are deregulated and liberalised. In addition, the more discerning consumers have heightened further competition resulting in a more competitive environment. The operating environment for businesses have therefore become more complicated with increased uncertainties in the economy and the financial markets.
In light of the more challenging environment going forward, generating the supply pipe line for talent and addressing the short supply of critical talent with new skills need to be given urgent priority. What are these skills? There has been considerable attention to the shortage of new and higher technical competencies – including in the area of risk assessment and management – required by financial institutions in the new operating environment. The growth in Islamic finance has also added important new dimensions to the talent requirements. Beyond these clear gaps however, the promotion of more sustainable business models in finance will require additional new skills which have not traditionally been areas of focus in financial institutions. This includes skills in change and crisis management, business recovery planning, the ability to develop and sustain long-term customer relationships, and skills to direct and manage operations in international and cross-cultural contexts. Also particularly important will be the ability to build, motivate and lead strong teams under significantly more challenging conditions in which institutions may be more constrained by regulation in their ability to recruit and retain talent simply by paying more. Perhaps more than in any other sector, the response to the challenges facing the financial industry in managing talent needs to be much broader, forward looking and more strategic given its central role within the economy.