Working in the tech industry for a salary has been quite a rollercoaster ride in the APAC region in recent years.
Initially, there was a period of growth leading up to 2022, where the increased focus on digital transformation initiatives after the peak of the global pandemic, combined with a shortage of tech talent, resulted in tech professionals having the upper hand. Salaries saw significant increases during this time.
However, the global tech market faced economic challenges, leading to a shift in fortunes in the APAC region. The year 2022 and 2023 saw hiring freezes and layoffs, resulting in a decline in job opportunities and salary figures as the demand for tech roles decreased.
Fortunately, 2024 is bringing more stable salary growth for tech workers. According to recruiter Robert Half, there is an overall salary growth of 3-5% for tech workers. High-demand segments like artificial intelligence are experiencing even larger salary increases.
Digital transformation drove APAC tech salaries before 2022
Melissa Lau, Director at Robert Half in Hong Kong, witnessed the significant salary increases in the tech industry before 2022. Companies in the region were aggressively hiring tech talent to drive digital transformation across various sectors. Hong Kong, in particular, was a hub for crypto companies.
“At that time, the supply of skilled individuals in the field was insufficient to meet the demand, leading to a talent shortage,” Lau told TechRepublic. “As a result, salaries saw a sharp increase as companies competed for the limited pool of highly skilled tech workers.”
APAC 2022 and 2023 tech salary crunch followed global tech sector woes
From 2022 onwards, the tech market in APAC faced challenges. The global tech market experienced a period of “high inflation and elevated interest rates,” as summarized by Deloitte, and macroeconomic uncertainty led to “softening consumer spending, lower product demand, falling market capitalisations, and workforce reductions in 2022.”
This trend continued into 2023. “Several companies implemented layoffs that impacted a significant number of individuals in the tech industry,” Lau explained. The crypto crash of 2022, which saw a drastic decrease in the value of cryptocurrency Bitcoin, also marked the end of the booming period for tech professionals in the crypto industry in Hong Kong, she noted.
FREE DOWNLOAD: TechRepublic’s top tech job predictions for 2024
Decline in software engineering salaries in 2023
The Asia Tech Salary Report from NodeFlair highlighted the challenges faced by the industry, including layoffs and hiring freezes, in Asia during 2023. Based on data from six countries in APAC, software engineer salaries decreased by an average of 0.99% in 2023, compared to a 7.61% increase in 2022.
Some software engineering specializations experienced larger declines. For example, salaries for game engineers dropped by 6.66%, solutions engineers by 5.7%, blockchain engineers by 5.4%, and DevOps professionals by 2%.
However, there was a bright spot as data science roles saw a growth of 11.3% in salaries during the same period.
2024 is looking better for tech salaries across APAC
In 2024, tech sector salaries seem to have stabilized. Robert Half has observed a return to more consistent growth in the Hong Kong tech market. “The technology industry is gradually recovering after a decrease in demand in 2023 due to overhiring,” Lau stated.
Therefore, tech workers can anticipate salary increases of 3-5% if they stay at their current company without a promotion. For those who receive promotions, salary increases range from 5% to 10%, according to Lau.
SEE: Tech Worker Salary Growth in Australia Has Normalised
Individuals who seek new job opportunities can also benefit from higher salary increases, albeit lower than before the salary crunch. Lau mentioned that job changers could expect salary increases ranging from 5-15%.
NodeFlair also predicts a salary recovery. “Salaries for tech employees, in general, are expected to rebound in 2024 as the economy improves. The growth rate may vary across different roles, with a particular focus on the rising demand for AI and data science professionals.”
Location-dependent tech worker salaries in APAC in 2024
NodeFlair’s report highlighted the variation in salaries across different markets in APAC. For example, the median monthly base salary for a lead software engineer in Singapore is US $6,688, compared to US $1,937 in Vietnam.
The tech roles with the best potential for salary increases in 2024
There are specific roles expected to see significant salary growth in 2024, with AI and data science leading the way. NodeFlair predicts that the surge in demand for these specialized skills will result in competitive salary offers to attract and retain top talent in these fields.
AI and data science
The increasing importance of AI globally is driving hiring in Asian markets. NodeFlair’s report indicated that salaries for data scientists at all levels increased by 11.3% year-on-year in the Singapore market in 2023, despite the overall decrease in demand for tech roles. For example, the salary for a middle percentile lead data scientist in Singapore rose from S$12,500 per month (US$9,234) in 2022 to S$14,187 per month (US$10,480) in 2023, a 14% increase.
NodeFlair highlighted the importance of skills in areas like machine learning, natural language processing, and data analysis as businesses recognize the transformative potential of AI.
Lau noted that this trend is reflected in the increasing tech salaries in Hong Kong. “This is due to the industry’s focus on hiring AI professionals,” she explained. “As AI continues to advance and impact various sectors, companies are actively seeking skilled AI specialists, leading to a growing demand and subsequent increase in salaries.”
Cybersecurity
The growing complexity of cyber threats is driving a high demand for cybersecurity professionals in Hong Kong and the region, according to Lau.
“Companies in various industries are investing heavily in safeguarding their digital assets and customer data, resulting in higher salaries for cybersecurity specialists.”
NodeFlair reported an 8.24% year-on-year growth in salaries for cybersecurity engineering roles in the Singapore market between 2022 and 2023.
SEE: AI deepfakes rising as a risk for APAC organisations
Project management
IT project management is also proving to be a lucrative skill. Lau mentioned that large corporations, such as insurers or conglomerates, are offering competitive salaries for project management roles.
“These companies often require skilled professionals to oversee and lead large-scale projects like system enhancements, upgrades, and business process reengineering, which contributes to competitive salaries due to their specialized expertise in managing these complex projects,” she added.
