Growing skills shortages in Asia mean multinational companies operating in the region may, within five years, be forced to pay western-level wages to skilled scientists, IT specialists and engineers, according to the head of one of the world's largest recruiting companies.

A shift to higher value-added manufacturing in Asia is contributing to skills shortages and resulting in "a massive productivity hit'' for many companies investing in the region, Jeff Joerres, chief executive of Manpower, the US staffing company, told the Financial Times.