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New data from WTW shows employers across Asia Pacific are rethinking benefits strategies to balance rising costs with the need to attract and retain talent.
As organisations across Asia Pacific (APAC) grapple with economic uncertainty, rising healthcare costs, and persistent talent shortages, many are taking a hard look at their employee benefits strategies. According to WTW’s 2025 Benefits Trends Survey, companies are focusing less on expanding benefits and more on spending smarter to meet evolving employee needs.
The survey, which gathered insights from nearly 2,000 employers in 20 APAC markets, reveals that cost concerns have now overtaken all other issues when it comes to shaping benefit strategies. Medical inflation in the region is expected to hit 12.3% this year, the highest globally.
“With rising budgetary pressures and employee benefit costs, particularly around healthcare, costs issues have intensified, impacting employers’ ability to enhance and deliver on their employee benefits,” said Royston Tan, Head of Health & Benefits, Asia Pacific, at WTW.
Employers in Singapore cited rising benefit costs, competition for talent, and the need to improve employee experience as key concerns. In Hong Kong, the focus is on vendor value, while Taiwan and Japan are prioritising ESG-linked benefits and family support respectively. The Philippines, facing affordability challenges, is turning its attention to retirement and long-term savings.
Across the region, 61% of employers plan to rebalance their benefits spend over the next three years. Over half of employers (51%) are aiming to extract more value from their healthcare vendors.
Meanwhile, 38% are planning to introduce targeted programmes to better manage high-cost conditions. Among these, over 80% will focus on areas such as mental health, women’s health, cardiovascular disease and cancer over the next three years.
Personalisation is also gaining traction. Around 70% of organisations plan to expand benefit choices and introduce digital tools and decision support to help employees make informed selections.
Instead of doing more with more, APAC employers are choosing to do more with the same. By sharpening their focus on value, experience and relevance, the aim, it was affirmed, is to transform benefits into a strategic tool that supports both business goals and employee wellbeing.
Lead image / WTW 2025 Benefit Trends Survey
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