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APAC Edition
18th June 2024
 
THE HOT STORY
A three-day in-office schedule performs ‘as well if not better than fully in-office work’
The largest study to date of hybrid work arrangements among knowledge professionals indicates that a three-day in-office schedule performs as well if not better than fully in-office work. The study, which was conducted by Stanford University work researcher Nicholas Bloom, alongside Chinese co-authors, covered workers at Trip.com’s Shanghai office. It found that resignations declined by as much as one-third, and employee performance and satisfaction were equal to or better than the traditional pre-Covid work schedule. “This study offers powerful evidence for why 80 percent of U.S. companies now offer some form of remote work and for why the remaining 20 percent of firms that don’t are likely paying a price,” Bloom said. “If managed right, letting employees work from home two or three days a week still gets you the level of mentoring, culture-building, and innovation that you want. From an economic policymaking standpoint, hybrid work is one of the few instances where there aren’t major trade-offs with clear winners and clear losers. There are almost only winners.”
WORKFORCE
South Korean government issues return-to-work order for striking doctors
The South Korean government has issued a return-to-work order for doctors as strike action over increasing medical school admissions continues. Around four per cent of private clinics have notified the government of their plans to close in support of the protest. Doctors who defy the order may face suspension of their licenses or other legal consequences. President Yoon Suk Yeol expressed disappointment over the strike and stated that the government has no choice but to deal with the illegal acts. A survey conducted last week revealed that nearly eight in 10 South Koreans oppose the strike. Some doctors and medical staff have criticized the collective action, arguing that increasing the number of doctors alone will not address the shortage of doctors in the country. The Korea Medical Association, a leading critic of the government's reforms, is expected to go on strike and stage a protest in Seoul.
Demand for remote work drives gig workforce growth in India
As the demand for remote work continues, the gig workforce in India is projected to reach 23.5 million by 2030, according to a Nasscom Aon report. This means gig workers will constitute 4.1% of the total workforce in India by the 2029-30 financial year. Gig workers in India can earn from $5 per hour for basic work to $400 per hour for senior AI engineers. Covid has transformed the talent landscape, enabling firms to tap into the gig talent pool and save on recruiting costs. IT-related gig work now makes up 30% of the job market, with software development, data analytics, and UI/UI design being the most sought-after skills. Meanwhile, non-tech companies are increasingly using gig workers to get tech work done efficiently.
Pakistan Steel Mills terminates 562 daily wage workers
Pakistan Steel Mills has terminated 562 daily wage workers due to the expiration of their contracts. The workers will not be rehired. The Finance Minister, Muhammad Aurangzeb, expressed doubt about the recovery of Pakistan Steel Mills, stating that there is a zero percent chance of its revival. He suggested that the only future for the entity is to be scrapped. The government had previously considered selling the mills for just PKR1. Aurangzeb criticized the inadequate policies regarding the supply of natural gas to the now-defunct mills.
STRATEGY
Citigroup strengthens business in Japan with new team in Tokyo
Citigroup is expanding its business in Japan by creating a new team in Tokyo to offer tailored products to medium-size companies. The team, under the brand of Citi Commercial Bank, will provide services ranging from global cash management to financing. Yutaka Naito will lead the group, targeting firms with cross-border business needs. Citigroup has been hiring hundreds of workers worldwide to boost its commercial brand, recognizing that mid-size firms require similar tools as large corporate clients. Japan has a significant number of mid-size companies, and the government is supporting their growth through subsidies and foreign expansion assistance. Gunjan Kalra, head of Japan for Citi Commercial Bank, stated that this move reaffirms their commitment to serving the Japanese market, which is home to many innovative companies with global linkages and cross-border business needs.
TECHNOLOGY
China's elder care industry turns to automation to address ageing population and workforce
China's elder care industry is turning to automation to address the challenges posed by an ageing population and a shrinking workforce. With China's population declining since 2022, the industry is exploring technological solutions to provide care for the elderly. At an industry fair in Shanghai, exhibitors showcased various high-tech products, including sleep monitors, robotic arms, and calorie-counting cafeteria plates. These innovations aim to improve the quality of care for older people and reduce the burden on healthcare systems. The use of smart technologies allows older individuals to maintain their independence and relieves the pressure on younger generations. The shift towards automation represents a departure from the traditional Chinese practice of ageing at home under the care of family members. The adoption of technology in elder care is seen as a necessary response to the changing demographics in China.
Ant Group invests record $2.9bn in technology research
Ant Group says it invested a record high of 21.19bn yuan ($2.92bn) in technology research and development in 2023, with a focus on artificial intelligence (AI) technology. The company's 2023 sustainability report revealed that it received Chinese government approval to release products powered by its "Bailing" AI large language model. Ant Group's Alipay platform has been using the model to power various AI assistants, including a "smart healthcare manager" and "smart financial manager". This significant investment highlights Ant Group's commitment to advancing AI technology and its potential applications in the financial and healthcare sectors.
CORPORATE GOVERNANCE
Toyota chairman reappointed amid questions over strategy
Toyota Motor's chairman, Akio Toyoda, has been reappointed at the company's annual meeting. However, shareholders have raised concerns about the automaker's governance and ongoing vehicle safety certification probe. The vote count will be disclosed on Wednesday, which will indicate the level of support for Toyoda. The reprimand of two of Toyota's affiliates earlier this year for similar certification issues has overshadowed the annual meeting. Institutional Shareholder Services and Glass Lewis have advised against Toyoda's reappointment due to the certification problems and lack of board independence. The California Public Employees' Retirement System and California State Teachers' Retirement System have also voted against Toyoda's reappointment, along with Chief Executive Officer Koji Sato.
RISK
Investment banks struggle with WhatsApp compliance
Investment banks are increasingly struggling to get workers to comply with bans on using WhatsApp for business communication, according to a survey by tech firm Global Relay. The survey found that 65.2% of compliance professionals found "getting staff to comply" was their biggest challenge with communication channels. Regulators in the UK and US have been cracking down on off-channel communications, resulting in heavy regulatory penalties. Companies have responded by banning WhatsApp, but the proportion of firms doing so has decreased from 59% in 2023 to 43.5% in 2024. Instead, more firms are now using communication surveillance technology to monitor bad behaviour.
INTERNATIONAL
Saudi Arabia looks to lure British lawyers with perks
Saudi Arabia's Crown Prince Mohammed bin Salman is enticing British lawyers to work on the country's megaprojects with lavish perks, including free land and payment of their children's private school fees. State-owned companies like Saudi Aramco and Neom are offering benefits such as free accommodation, relocation allowances, and free MBA courses. These incentives, along with tax-free six-figure salaries and large bonuses, are attracting ambitious lawyers who see Saudi Arabia as a more promising market than Dubai. The hiring spree by Saudi companies has caused some UK law firms to struggle with recruitment, and the perks offered by Saudi companies pose a threat to firms, even though in-house lawyers are typically paid less than those in private practice. The recruitment drive is part of Crown Prince bin Salman's plan to diversify Saudi's economy through infrastructure and energy projects. Reforms in Saudi's legal standing designed to encourage deal-making have attracted Magic Circle law firms including Clifford Chance, Linklaters, and A&O Shearman.
Apple faces potential class action lawsuit over gender pay gap
Apple faces a potential class action lawsuit from two employees who allege that the company systematically underpaid women compared to their male counterparts. The lawsuit, filed in San Francisco state court, claims that Apple's hiring practices and performance-review system contribute to the gender pay gap. The action could include more than 12,000 current and former Apple employees. One of the plaintiffs, Justina Jong, was motivated to join the suit after discovering that a male co-worker was being paid almost $10,000 more for similar work. The lawsuit argues that the discrepancies begin in the hiring process, with Apple previously asking about previous salaries and later asking for salary expectations. Apple denies the allegations and maintains that it has achieved pay equity since 2017.
Over half of European workers prefer on-the-job training to university degrees, study says
A study commissioned by Amazon suggests that over half of European workers believe that on-the-job skills training or apprenticeships are more valuable than traditional university degrees. The study also highlights the need for a wider range of apprenticeship and internship opportunities for young people. The research, conducted by Ipsos, shows that 89% of European employees consider it important to learn new skills to improve or change their career path. Training and career development programs offered by potential employers are deemed more important than company culture. Amazon, which has invested over €100m in training programs in Europe since 2014, plans to invest an additional €40m in 2024 and add more than 25 new programs across five countries.
OTHER
Study says men really do eat more meat than women
A study published in Nature Scientific Reports suggests that gender and meat-eating preferences are linked across cultures. The study, which surveyed over 28,000 people in 23 countries, found that men tend to eat more meat than women, especially in countries with higher development and gender equality scores. The researchers believe that these findings could help in efforts to reduce meat consumption amid concern about its impact on the environment. "Anything that one could do to reduce meat consumption in men would have a greater impact, on average, than among women," said Christopher Hopwood, a professor of psychology at the University of Zurich. The study did not provide a definitive answer as to why men eat more meat, but theories suggest that evolutionary factors and societal norms play a role.
 


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