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APAC Edition
4th July 2024
 
THE HOT STORY
Indian officials visit Foxconn iPhone plant
Indian labour officials have visited a Foxconn factory in Tamil Nadu, India, to investigate the company's hiring practices. The visit comes after a Reuters investigation revealed that Foxconn has been rejecting married women from iPhone assembly jobs. The officials spoke to company directors and human resources officials during their visit. The Indian government has asked for detailed reports on the matter. Foxconn reportedly employs 41,281 people at the factory, including 33,360 women. The company claims that it is not discriminating against married women. Apple and Foxconn have acknowledged previous lapses in hiring practices but did not address the instances documented by Reuters. Indian law does not prohibit discrimination in hiring based on marital status, although Apple and Foxconn have policies against such practices in their supply chains.
HIRING
Japan faces shortage of foreign workers by 2040
Japan is projected to face a shortage of almost one million foreign workers by 2040, according to a state-backed think tank. The Japan International Cooperation Agency's research unit estimates that the country will have 5.91 million foreign workers in 2040, falling short of the workforce needed to sustain targeted average annual growth rate of 1.24%. The demand-supply gap in foreign labour has more than doubled since the previous estimate in 2022, due to slower economic growth in emigrating countries. Foreign workers are crucial to Japan's economy as they help fill a severe labour shortage caused by an aging population and declining birthrate. The government has expanded work visa permits, but Japan still faces challenges such as low wages and human rights issues.
Korea aims to double skilled foreign workers by 2025
Korea aims to attract 150,000 professional workers from overseas by 2025, more than doubling the number from 72,000 in 2023. This is part of the co-called "Dynamic Korea Roadmap" to address Korea's weakening growth momentum. The government also aims to establish the world's most extensive network of free trade agreements (FTAs) by 2027. Korea's annual GDP growth rate is anticipated to decline, but the finance ministry has revised up this year's growth outlook to 2.6%. First Vice Finance Minister Kim Byoung-hwan emphasized the need for comprehensive structural reform to establish long-term economic sustainability. The government says it recognizes the importance of attracting skilled foreign workers and plans to enhance labour productivity. 
TRAINING & DEVELOPMENT
Top China food firm under fire over military training for new employees
Jinmailang, one of China's largest food and drink companies, is facing criticism for making new members of staff undergo military-style training at an army base. The company put 76 newly recruited management trainees through a tough seven-day training regime, including deep squats, push-ups - and asking strangers for money. Participants were also required to do weight trekking and climb mountains without supplies. The company said the training was intended to foster "team working spirit" and prepare the recruits to be future leaders. However, critics on social media described it as "obedience training."
LEGAL
Law firm launches anonymous hotline
Multinational law firm Hogan Lovells has launched a "microaggressions" hotline for anonymous staff reports of "interactional bias." The hotline allows staff to report incidents related to gender, race, sexual orientation, and disability. The firm has partnered with InChorus, a technology platform that enables reporting of bullying, harassment, and non-inclusive behaviours. Critics have accused the firm of "woke tokenism" and suggested that the hotline is a way to cover the firm's liability, while the anonymity of the process has raised concerns about potential misuse. However, Hogan Lovells has defended the hotline as a means to address subtle and unintentional behaviours that convey negative assumptions about a person's identity or background. 
LEADERSHIP
PwC names new China head
PricewaterhouseCoopers (PwC) has appointed Daniel Li as its new China head, amidst ongoing regulatory investigations in mainland China and Hong Kong. Li, who has been with PwC for over 30 years, takes over from Raymund Chao and becomes the first executive from mainland China to lead one of the Big Four accounting firms in China. PwC has been under scrutiny for its role as the auditor of troubled property company China Evergrande Group. Investigations have revealed overstatement of revenue by Evergrande. PwC is facing a record fine and potential halt to operations in mainland China. Li's appointment comes as PwC has been losing clients in the Chinese mainland.
EMPLOYEE ENGAGEMENT
The employees promoting their company on social media
Workers are increasingly willing to post online on their employer’s behalf, the FT reports. So-called “employee advocacy programmes” see staff being encouraged by their employers to share positive news about the company.
REMUNERATION
Small World money transfer service collapses
Thousands of people in developing countries have been left waiting for vital payments after the Small World money transfer service collapsed. Small World, part of LCC Trans-Sending, allowed users to send cash for pickup collection in over 170 countries. The company ceased trading on 10 June, leaving customers who paid money into the company's account without receiving their expected payments. Small World was popular in west Africa and the Philippines, and was often used by workers to send money back to families or for charitable payments. The UK's Financial Conduct Authority (FCA) announced that Small World's parent firm, LCC Trans-Sending, had entered special administration. Accountants at Grant Thornton are now reviewing the books to determine the amount owed to customers. Customers who made payments after the administrators were appointed are likely to receive their full amount back.
India, four SE Asia countries plan instant retail cross-border payments
The central banks of India, Malaysia, Thailand, Singapore and the Philippines are working together to start an instant cross-border retail payments platform by 2026. The Bank of International Settlements (BIS) says it is aiming to link each country's instant digital payment system - like India's United Payment Interface (UPI) and Singapore's PayNow - as part of Project Nexus, its initiative to enhance cross-border payments. "Even with just the first wave of connected countries, Nexus has the potential to connect a market of 1.7bn people globally, allowing them to make instant payments to each other easily and cheaply", said Agustín Carstens, general manager of the BIS.
INTERNATIONAL
US workers seek summer escape with reduced schedules
With summer in full swing, workers across the US are looking for ways to escape the heat and enjoy some time off. Offering summer hours has become a popular way for businesses to boost employee morale and attract top talent. By reducing schedules on Fridays, employers are able to help workers deal with childcare gaps and give them a chance to recharge. Smaller businesses, in particular, can use summer hours as a competitive advantage in the talent marketplace. However, not all industries can implement special summer schedules, and it may take some trial and error to find the best option for each company. Overall, summer hours have proven to be a valuable perk for both employers and employees, helping to retain staff and create a positive work environment. As one business owner notes: "It's just such an important benefit and competitive advantage."
Milan sees interest from UK private equity execs seeking tax relief
The Italian city of Milan is gaining interest from the UK's wealthy private equity fund managers, who are looking to escape potential UK tax hikes on their carried interest. The Labour Party in the UK has pledged to treat carried interest as income, potentially subjecting it to a tax rate of as high as 45%. This has prompted many private equity managers to explore alternatives, with Milan being a top choice. Milan's expat-friendly tax breaks and stable government make it an attractive destination for the wealthy, and the city has already attracted several investment firms. Milan's image has been further enhanced through urban revitalisation projects, and Italy's relative political stability and the uncertainties in other European finance hubs like Paris and Frankfurt have further boosted the city's appeal.
OTHER
WHO releases first-ever guideline to help adults quit tobacco
With an aim to help more than 750 million tobacco users worldwide quit tobacco usage, the World Health Organisation (WHO) has released its first-ever clinical treatment guidelines. "Over 60% of the world's 1.25 billion tobacco users – more than 750 million people – wish to quit, yet 70% lack access to effective cessation services," the WHO says. Dr Tedros Adhanom Ghebreyesus, WHO Director-General, stated that the guidelines mark a crucial milestone in the global battle against tobacco products. The guidelines recommend varenicline, Nicotine Replacement Therapy (NRT), bupropion, and cytisine as effective treatments for those who wish to quit tobacco. The WHO also recommends interventions including counselling and digital interventions.
 


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