Across Southeast Asia, mental health has moved from the fringes of corporate dialogue to the centre of business conversations. However, while awareness is on the rise, most organisations have yet to convert good intentions into consistent, inclusive practice.

In markets like Singapore, cultural misconceptions, policy disconnects, and underutilised support structures still undermine progress. Overall, the region faces a decisive moment: shift from symbolic initiatives to embedded, strategic change – or risk long-term organisational and economic fallout.

Mental health in Southeast Asia

Mental health conditions affect roughly 13.2% of people in SEA, representing 1 in 7 individuals or around 260 million people. Alarmingly, burnout levels in Asia exceed global averages: 1 in 3 employees reports symptoms, compared to 1 in 4 globally. Women and frontline staff are particularly affected, citing higher incidences of anxiety, depression, and emotional fatigue.

In Singapore, mental health concerns are widespread. Around 17% of the population experiences poor mental health, and 1 in 7 has had a diagnosed mental disorder. Stress related to work tops the list of concerns, especially among those aged 35 to 49. Singapore and Vietnam report some of the highest levels of workplace pressure as a contributing factor to mental strain.

The COVID pandemic intensified these issues. Lockdowns, economic uncertainty, and social disconnection exacerbated mental health struggles across the board, laying bare the fragility of existing support systems and the stark need for better access and reporting mechanisms.

Policies vs practice: The implementation gap

According to the latest ASEAN Workplace Wellbeing Report, which draws insights from 585 HR professionals, 60% of companies have formal wellbeing policies and 65% provide mental health training. On the surface, the infrastructure appears to be in place. However, the delivery tells a different story.

In Singapore, 89% of organisations report having inclusive hiring policies, well above the regional average. Yet, nearly half (45%) admit they’re hesitant to hire candidates with mental health conditions. A further 26% say they’re unsure whether they do so at all. Despite strong policy language, meaningful action is often held back by underlying biases and rigid systems.

Employers are further constrained by Singapore’s Tripartite Guidelines on Fair Employment Practices, which limit mental health-related inquiries unless directly relevant to job duties. Consequently, 67% of employers cite a lack of disclosure as the primary barrier to inclusive hiring. Additional roadblocks include:

• Low awareness of mental health among hiring managers (24%)
• Negative peer attitudes (10%)
• Managerial resistance to flexible accommodations (5%)

Although resources exist, they’re seldom used. Only 15% of Singapore-based HR professionals report offering comprehensive mental health support. Even more concerning, just 5% of employees access available programmes compared with 47% regionally. Engagement in countries such as Vietnam (85%), Thailand (63%), and the Philippines (49%) far surpasses Singapore’s figures.

Mental health misconceptions are a silent barrier

Cultural stigma continues to stifle openness. Nearly 90% of Singaporean workers say they would avoid seeking mental health support at work for fear of being judged. Regionally, only 22% of employees feel comfortable approaching HR or their employer about such concerns, dropping to just 13% among younger professionals aged 25 to 34.

Hierarchical workplace cultures often discourage emotional vulnerability. This environment fosters silence over dialogue, diminishing the effectiveness of wellbeing resources and leaving issues unresolved.

The economic cost of inaction

The impact of poor mental health extends well beyond employee wellbeing – it’s a clear business risk. Reduced productivity, increased absenteeism, high turnover, and rising insurance claims are just the beginning.

In Malaysia, for instance, mental health-related issues cost the economy 14.46 billion ringgit in 2018 – equivalent to 1% of its GDP.

Globally, toxic workplace behaviour is now the most significant predictor of burnout and attrition, accounting for over 60% of variation in employee outcomes. Toxicity may manifest as exclusion, micromanagement, unethical conduct, or a lack of trust in leadership.

From perks to systemic change

There are encouraging signs. A growing number of organisations are moving beyond ad hoc wellness perks and investing in system-wide mental health strategies. Key areas of focus include:

• Training line managers in mental health literacy (56%)
• Incorporating neurodiversity into inclusion policies (56%)
• Enhancing frequency and depth of internal communication

The World Health Organization’s 2023–2030 mental health action plan urges governments and employers alike to foster decent working conditions, build out community-based support, and invest in intersectoral partnerships, particularly in times of economic stress.

Singapore’s tripartite advisory on workplace wellbeing and Indonesia’s 2018 labour regulation mandating stress management are steps in the right direction. Yet, implementation remains uneven, especially in Malaysia, where mental health responsibility under OSHA 1994 is vaguely defined. This leaves companies uncertain about their obligations.

3 strategic priorities for business and HR leaders

1) Address toxicity proactively

Tackle toxic behaviours through clearly defined conduct expectations, timely feedback, and disciplinary action when warranted. Cultivating psychological safety and inclusive leadership helps create environments where employees feel valued and protected.

2) Localise support with cultural intelligence

Mental health support should reflect local cultural norms and sensitivities. Customised solutions—like EAPs, digital tools, and helplines—must be confidential and relevant. Special focus should be given to cohorts with higher risk, including women, youth, and frontline staff.

3) Listen to understand, not just to respond

Pulse surveys, open forums, and data platforms like Glassdoor can offer valuable insight into employee sentiment. Empowering staff to co-create mental health solutions fosters engagement and resilience.

The HR function as a cultural change agent

HR leaders must go beyond enforcing policy; they must actively shape workplace culture. This includes initiating open conversations, supporting mental health campaigns, and modelling flexibility and empathy in management practices.

Programmes like Mental Health First Aid can equip leaders with the tools to recognise distress, initiate safe conversations, and direct individuals to appropriate support.

Two-way communication is key. When organisations actively listen and respond – not just broadcast messaging – programme uptake and employee trust improve significantly.

The WHO reports that for every $0.5 to $1 invested in mental health, businesses can expect a 10% productivity gain.

Thus, prioritising mental health becomes a lever of change. 

After all, in today’s post-pandemic workplace, embedding mental wellbeing into core business strategy supports talent retention, employee performance, and operational resilience.