About 13 years ago, a United Kingdom-based home appliance manufacturer shifted part of its production to Malaysia, because of soaring labour cost. The move created 800 jobs in Malaysia at that time and brought a huge profit margin. Business is still soaring but Dyson is facing a shortageof engineers in the UK base where a vast amount of research and development is done. Britain is just not producing enough engineers and this is affecting productivity and businesses.
If you were to follow the business-goes-where-the-human-capital-is principle, it is likely that Britain and other countries in need of skilled workforce will be heading to a country or region that offers them this. Which could be the Asean Economic Community (AEC) if not for the fact that Southeast Asia is already grappling with an acute shortage of skilled workers.
AEC Needs More Skilled Workers