Recruiters are doubling their efforts to recruit foreign talent for the financial sector in Singapore and Hong Kong.

"Banks are expanding in areas of their business such as Basel II, operational risk, compliance and regulatory reporting, and the local labour pool is just not enough to fill the jobs," says a banker, who adds that while layoffs are inevitable due to the sub-prime mess, the fast-growing Asia Pacific region will continue to hire.

One example is Barclays' capital markets division, which hired 19 experienced research people from the Philippines last year and relocated them all to Singapore, says Richard Mills, chairman of Chalré Associates, a search firm operating in the Philippines, Thailand and Indonesia.

Mills says companies who tap into talent pools overseas might do so in order to trim costs, but their principal motivation is that they can’t find enough suitable staff locally and want to expand their supply of experienced people.

Robert Half Singapore's managing director, Tim Hird, says by hiring foreign talent, whether from emerging countries or elsewhere in the world, a firm benefits from a diverse workforce with a broad mix of skill sets, viewpoints and experiences.

"Nevertheless, they must be mindful of cultural sensitivities when hiring foreign talent, and ensuring their adaptability and commitment to the country and company should be a priority in the hiring process," he points out.