Asia’s Brains Drain Home

Insight: Asian countries are moving rapidly to attract foreign students (and young professionals) that are leaving the US after the Trump administration’s attack on American elite universities and Harvard in particular. Hong Kong’s University of Science and Technology has offered unconditional admission to displaced Harvard students, and the University of Tokyo is considering doing the same, at least temporarily. In a related move, Vietnam is considering long-term visas, tax breaks and similar incentives to lure investors, scientists and other professionals with foreign passports. 

Impact: Since more than 70% of all foreign students enrolled in US universities in 2023-4 were from Asia (with almost 30% from India and 25% from China), it seems only logical that many will now head home. Particularly as local colleges are rapidly improving the quality of their teaching and expanding their postgrad positions and original research. Meanwhile, private industry in Asia is moving up the value chain, creating more highly skilled jobs, with China’s advances in AI just the latest example of this trend. All this suggests that smart young Asians that study at home will increasingly also work at home, start companies, grow wealthy and reinvest in education. A virtuous circle that can only benefit Asia and hurt the US.  

1.1 Billion SGD

Total losses incurred by Singaporeans from scams in 2024, a 70% increase compared to the previous year -- and it could be even greater, according to the Global Scam Alliance, as two thirds of Singaporean victims did not report their experiences to law enforcement.

Insight: China’s instant retail sector, where consumers can order a wide range of goods online and receive them within an hour, has become the new battleground for the country’s tech giants: Meituan, JD.com, and Alibaba. The service is an upgrade from the food delivery model, now covering a wider range of products, from clothes to daily essentials.  The companies are heavily subsidizing deliveries to keep the price low in the fight for market share. 

Impact: A step-up from the industry standard of “next day delivery,” instant retail service sends commodities to customers’ doorsteps within an hour. For consumers, the benefits are clear: greater convenience, wider product selection, and lower prices thanks to fierce subsidy wars. With the threat of US tariffs, it makes sense for Chinese tech giants to double down on domestic consumption. The race to the bottom on pricing, however, has caught the attention of government regulators, who are increasingly concerned about unfair market practices and the labor conditions for delivery workers. Instant retail signals a new era of Chinese commerce and could potentially set a new global benchmark.  

Insight: A viral prophecy by Japanese manga artist Ryo Tatsuki, who predicts a catastrophic earthquake and tsunami in Japan on July 5, 2025, is sending tremors through Japan’s summer tourism. Tatsuki’s 1999 graphic novel, ‘The Future I Saw’—republished in 2021 with additional content—has won her credibility after she foreshadowed a deadly earthquake in 2011. This is deterring travelers from booking summer trips to Japan. Specifically, airline bookings from Hong Kong to Japan have plummeted by 50% compared to a year ago. 

Impact: Despite the lack of scientific proof, the truth is that people are scared. Japanese government officials rightly say that earthquakes cannot be predicted with such precision, but the rumor is being amplified by influencers, including a prominent Hong Kong feng shui master, and spreading across Asian social media. The consequent sharp downturn in Japan’s inbound tourism from key Asian markets highlights the economic impact of viral misinformation in today’s hyper-connected digital age. How then can Japan’s travel and hospitality industry counteract the widespread public anxiety? Fact and science alone won’t suffice. Fear needs to be acknowledged and should then be complemented with proactive communications on robust disaster preparedness and evacuation plans to restore traveler confidence.

Whether fighting misinformation, reacting to geopolitical volatility or dealing with an actual natural disaster, companies and organizations of all stripes – In Asia, as elsewhere -- need to be able to cope with the unexpected. And dealing successfully with a crisis needs planning and preparation long before the event hits. For a succinct summary of how to do so, we are turning to the latest monthly newsletter from FGS Global’s own CEO, Alexander Geiser, which is well worth subscribing to: 

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