​Q1 - 2025 Market Update

Overall Summary

 

Since the Chinese New Year holiday fell relatively soon after the New Year (late January 2025) and was set against the backdrop of geopolitical tensions and economic uncertainties, the tech recruitment market remained sluggish throughout the first two months of Q1 2025, with permanent hiring struggling to gain momentum.

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• Economic uncertainties and cost-cutting measures continued to weigh on hiring decisions.

• Contracting saw an uptick as organisations sought flexible staffing solutions.

• Towards the end of March, hiring activity in Hong Kong began to pick up, offering some much-needed optimism for the months ahead.

 

Banking and Financial Services

 

The financial sector experienced another slow quarter, with banks continuing to hold back on large-scale hiring.
 

• Most banking hiring was confined to replacement roles rather than expansion.

• The buy side, including hedge funds and proprietary trading firms, showed slightly better activity.

• The cryptocurrency sector showed strong hiring demand, especially in Hong Kong, Singapore, and Dubai.

• Generative AI (e.g., ChatGPT integration) is expected to reshape customer-facing tech roles, streamlining customer service and enhancing digital banking experiences.

• We foresee increased hiring for compliance tech (e.g., AML, KYC) ahead of Hong Kong’s 2024 virtual asset licensing regime. The number of Virtual Asset Licenses in Hong Kong grew from 2 to 10 as of February 2025, driving demand for regulatory technology specialists.

• The adoption of AI/ML in trading continues to accelerate, driving hiring demand for specialised engineers. Python/C++ engineers with experience in machine learning frameworks like TensorFlow and PyTorch will be in demand.
   

Latest Technologies in Demand

• Web3 Developers

• Digital assets, decentralised finance (DeFi)

• Algorithmic trading platforms

• AI-driven risk management

• Low-latency trading infrastructure

• Compliance technology (AML/KYC solutions)

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Insurance & AI Expansion

 

The insurance industry remained active in hiring, particularly for roles focused on data analytics, automation, and AI-driven underwriting.

• Companies increasingly invest in AI capabilities to streamline claims processing and risk assessment.

• Salesforce announced plans to invest heavily in Singapore’s AI sector, reinforcing the city-state’s role as a regional AI hub.

• Generative AI (e.g., ChatGPT integration) will also impact insurance firms, transforming customer service and claims processing.

 

Latest Technologies in Demand

• AI-powered fraud detection

• Predictive analytics

• Automated underwriting platforms

• Natural language processing (NLP) for customer service

• Blockchain-based insurance contracts

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Notable Trends

 

• Cybersecurity & Regulatory Focus: Cybersecurity continues to be a key growth area in 2025, driven by regulatory scrutiny and evolving cyber threats.
   

  • Regulators, including HKMA, SFC, MPFA, and HKIA, are focusing on cybersecurity protection across the financial infrastructure.
     

  • Hong Kong recently passed a Cybersecurity Law to enhance protection for critical infrastructure, further increasing the demand for cybersecurity professionals.
     

• Contracting & Outsourcing Trends
   

  • Demand for contract professionals increased across various sectors due to permanent hiring pressures.
     

  • Outsourcing to low-cost locations such as Kuala Lumpur, Vietnam, and India remained a prevalent strategy.
     

  • Key technologies in these functions include Front End/Back End Developers (Java/Python), QA (automated/manual), BA/PMs
     

• Middle East Momentum
   

  • Dubai and Saudi Arabia continued to attract global talent with ongoing investments in technology, fintech, and digital transformation.
     

  • High-demand areas included AI, cybersecurity, and digital banking.

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Looking Ahead

 

While Q1 2025 continued the cautious hiring environment of late 2024, there are signs of recovery, especially in Hong Kong. 
 

• As economic conditions stabilise, permanent hiring is expected to gradually improve.

• Contracting and outsourcing will continue to be key strategies for companies navigating uncertainty while maintaining their technology capabilities.