I don't have any problem with "Asian". It means people originally from Asia, seems like a neutral, descriptive word. The problem with "oriental" is it means "people who live over in the direction of Mecca", which only makes sense if you think Europe is the center of the world.
The other half that says they "work like dogs" and that they are "slowly taking over" doesn't sound much better than "oriental".
Again, I am sure he didn't intend to be insulting, but it invokes a stereotype, and just does not come off well. Why is it that asian people are thought of as working "like dogs", as opposed to using their brains and working intelligently? And why are they "taking over" as opposed to just integrating into Canada and being Canadians like everybody else?
I think it's possible to take that too far, I don't think he meant to be racist at all -- but I certainly think he sounds ignorant.