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APAC Edition
22nd August 2024
 
THE HOT STORY
Binance hires 1,000 as compliance spend tops $200m
Binance is set to expand its compliance workforce to 700 by the end of 2024, up from 500 currently, as part of a broader strategy to meet increasing regulatory demands. Chief Executive Officer Richard Teng said: "Government agencies are important," highlighting the company's commitment to compliance amid ongoing scrutiny. The firm plans to hire 1,000 new employees this year, with a significant number allocated to compliance roles, as the company's annual spending on regulatory requirements surpasses $200m. Teng noted that requests from law enforcement agencies have surged, reaching 63,000 this year. The company is also under the watch of monitors appointed by US agencies, who are assessing its financial practices. Despite these challenges, Teng affirmed that Binance remains profitable and is exploring potential locations for a global headquarters.
HEALTH & SAFETY
India's top court creates task force on workplace safety for healthcare staff
Following the rape and murder of a trainee doctor in Kolkata, India's Supreme Court has established a task force of medical professionals to develop safety guidelines for healthcare workers. Chief Justice Dhananjaya Yeshwant Chandrachud said: “Protecting safety of doctors and women doctors is a matter of national interest and principle of equality.” The formation of the panel comes amid widespread protests from doctors across the country, who have temporarily halted non-emergency services to demand stricter laws against violence towards medical staff. The court has also instructed the federal agency investigating the case to provide a report on its progress. Despite existing laws, sexual violence against women remains a significant issue in India, with a reported 31,516 cases of rape in 2022, marking a 20% increase from the previous year.
WORKFORCE
Byju's faces turmoil as employees protest
Bangalore, India-headquartered Byju's, which became popular by offering online training courses during the COVID-19 pandemic and was once valued at $22bn, is facing a significant crisis as it battles a dispute with U.S. lenders over $1bn in unpaid dues. Employees, many of whom have not been paid for three months, are contemplating protests and legal action. Sukirti Mishra, a former mathematics teacher, expressed the frustration of many, stating, "A lot of people, including myself, have stopped taking classes because there's no point doing charity for the company anymore." The company is currently in insolvency proceedings, with its future uncertain, and employees are worried about recovering their dues. Byju Raveendran, the founder, has assured staff that salaries will be paid once control is regained, but the path ahead nevertheless remains unclear.
STRATEGY
Sephora China cuts hundreds of jobs
Bloomberg reports that Sephora is cutting hundreds of staff in China, as part of the LVMH-owned brand's efforts to turn around a loss-making operation in the country. The shakeup comes after Sephora appointed former Nike Asia e-commerce chief Ding Xia as its new Greater China head in a bid to revive its fortunes in the mainland. “In response to the challenging market environment and to ensure our future growth in China, Sephora China is currently streamlining our organisational structure in our head office to ensure we have the right capabilities for long-term sustainable growth,” a company spokesperson said. Severance packages, compensation and career support services are being extended to those impacted.
Decathlon to invest $111m in India expansion plan
French sporting goods retailer Decathlon plans to invest €100m in India over the next five years to expand its store count and manufacturing in what is one of its key markets. The company intends to add 80 stores to the 110 it already has in the country, where its sales in the year to March 2023 rose 37% to 39.55bn rupees ($471m).
HIRING
Hiring slowdown hits vulnerable groups in Australia
Experts predict a hiring slowdown that will disproportionately affect young people, older workers, and women, as the Australian job market shows signs of weakness. David Rumbens from Deloitte Access Economics noted that the jobless rate has increased to 4.1%, with expectations of it rising to 4.5% this financial year, adding 101,500 individuals to unemployment queues. Jason Tian from Swinburne University highlighted that "women, who are disproportionately represented in part-time and casual work, are particularly vulnerable during economic downturns." While sectors like construction may see growth due to infrastructure projects, white-collar jobs are expected to decline by 0.4%. The overall labour market may lag behind economic recovery, with Rumbens stating, "the labour market may continue to get worse with unemployment rising at the same time economic green shoots are appearing elsewhere."
TECHNOLOGY
Ant Group announces AI investment plans
Ant Group is set to significantly increase its investments in artificial intelligence (AI) and data technologies over the next decade, focusing on areas such as distributed databases, blockchain, and green computing. Chief technology officer He Zhengyu emphasised the company's commitment to technological innovation, stating, "We will . . . invest heavily in AI technology." The recent establishment of the T-Space innovation headquarters in Beijing marked a pivotal step in Ant's expansion into high-tech sectors. The new subsidiary aims to enhance enterprise management efficiency through AI-powered services. China's AI spending is projected to reach $38bn by 2027, accounting for 9% of the global market.
DIVERSITY, EQUITY & INCLUSION
Harley-Davidson ditches diversity goals
Harley-Davidson has announced a significant shift in its approach to diversity and inclusion, stating it will no longer pursue supplier diversity goals or participate in corporate evaluations related to diversity. The company emphasised its commitment to having a workforce that reflects its customer base but admitted: “We do not have hiring quotas and we no longer have supplier diversity spend goals.” The decision follows a boycott campaign led by conservative activist Robby Starbuck, who accused the brand of being “totally woke.”
REGULATION
PwC braced for 6-month ban in China over Evergrande audit
PwC China expects to be hit with a six-month ban on doing business in the country, as part of punishment over its audit of collapsed property developer Evergrande. The ban would prevent it from signing off on financial results and initial public offerings and from conducting other regulated activities.
INTERNATIONAL
Mexico could boost its GDP by $391bn if most women worked, report says
According to a report by the Milken Institute, Mexico could increase its annual economic activity by over 25%, or $390.5bn, if women participated in the labour force at the same rate as men. Currently, only 45.6% of working-age women in Mexico are employed, compared to 77.5% of men. Maggie Switek, who led the research, said: "The number one thing that keeps women out of the workforce is infant care and childcare." The report emphasizes the need for improved access to high-quality, low-cost childcare to enhance female employment. Nearly 65% of Mexican women express a desire to work, and 78% of men support this. With President-elect Claudia Sheinbaum promising to reinstate government-run early education centers, there is hope for progress in this area.
Judge blocks Biden administration ban on worker noncompete agreements
A federal judge in Texas has blocked a Federal Trade Commission (FTC) rule aimed at banning noncompete agreements which prevent workers from joining rival companies. U.S. District Judge Ada Brown stated that the FTC lacks the authority to impose such a broad prohibition, labelling the rule as "arbitrary and capricious." The FTC, which approved the ban in a 3-2 vote, argues that these agreements restrict competition and suppress workers' wages. Approximately 30m US workers are affected by noncompete clauses. FTC spokesperson Victoria Graham expressed disappointment with the ruling and said that the agency is considering an appeal, stating, "Today's decision does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions." The ruling follows a similar decision in Florida, while a judge in Philadelphia upheld the FTC's stance on noncompetes.
HR forum in Oman discusses psychological safety and mental health
A two-day forum on psychological safety and mental health in the workplace is taking place in Salalah, Oman, organised by Oman's Ministry of Labour in collaboration with the Omani Society for Human Resources Management (OSHRM). Under the patronage of HH Sayyid Marwan Turki al Said, Governor of Dhofar, the event aims to enhance awareness of psychological safety and mental health at work. It provides a platform for sharing knowledge on supporting workers facing psychological challenges. The forum will cover topics such as managing employee performance, the impact of online work on well-being, and the role of leadership in fostering a healthy work environment.
OTHER
Meituan launches 30-minute delivery services for home appliances
Chinese food delivery group Meituan has partnered with Midea, one of the world’s largest home appliances makers, to enable app users to order products ranging from refrigerators to dishwashers and receive them in as little as 30 minutes. Users of Meituan’s apps, including the crowdsourced review platform Dianping, can browse product listings in nearby Midea shops and have purchases delivered to their doorstep. Meituan has formed similar partnerships with international and domestic brands, such as Lego, authorised Apple resellers, Mars, Decathlon and Suning, to bring those brands onto Meituan platforms.
 


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