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DEMAND FOR talented engineers has outstripped supply in southern China. Companies are having a hard time recruiting, and holding on to staff has also become difficult.

This demand covers all engineering disciplines as growth across southern Asia drives rapid development. Engineers are needed for a huge range of projects, from major construction works in Macau and southern China to smaller engineering projects unrelated to construction.

'Even organisations such as the investment banks will look to hire people from an engineering background to manage their facilities and help them to find extra office space,' said Anthony Thompson, managing director Hong Kong and southern China at head-hunting company Michael Page International.

Demand for engineers has pushed up salaries in the sector. 'Most [engineers] who are making a move at the moment are looking for at least a 10 to 15 per cent increase, and in nearly every case they are getting it. In some cases it is significantly more,' Mr Thompson said.

A recent survey conducted by Michael Page International found that salary increases across the region had averaged 2 per cent to 5 per cent in the past year, with experienced engineers in managerial positions now expecting an annual salary of between HK$750,000 and HK$950,000.

The same survey, which was sent to more than 14,000 employees in Hong Kong and 20,000 employers in Hong Kong, Singapore and Japan (to gain a regional viewpoint), found that business expansion and additional projects had led 58 per cent of employers to expect a staff increase next year.

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