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APAC Edition
23rd August 2024
 
THE HOT STORY
New scheme boosts pay for platform workers in Singapore
The Platform Workers CPF Transition Scheme (PCTS) will enhance protections and support for platform workers in Singapore starting from January 1, 2025. The Ministry of Manpower (MOM) announced that younger platform workers, particularly those aged 30 and below, will have their Central Provident Fund (CPF) contributions fully covered in the first year. This is an increase from the previous 75% support. The scheme aims to alleviate concerns regarding take-home pay as contribution rates rise. The qualifying monthly income cap for the PCTS will also increase from $2,500 to $3,000, aligning with enhancements to the Workfare Income Supplement Scheme. MOM said: "the new, single start date for all the measures is more convenient and intuitive for both platform workers and operators." Additional requirements for platform operators to contribute to CPF and work injury compensation will also be implemented.
WORKFORCE
K-campus helps foreigners adapt to student life in Korea
The Korea JoongAng Daily will participate in the Korea Trade-Investment Promotion Agency's Global Talent Fair on August 27 and 28 at Coex, Seoul. The event aims to assist international students in adapting to life in Korea and finding job opportunities. K-campus will showcase its career services, including job listings tailored for foreign nationals and a talent pool for job notifications. Additionally, information about the upcoming d.camp internship will be shared, which will start in late September, offering internships at start-ups. A buddy walk program will also be available to guide new international students through the fair.
HEALTH & WELLBEING
Mental health crisis in Hong Kong, survey suggests
The AXA Study of Mind Health and Wellbeing 2024 reveals alarming statistics about mental health in Hong Kong's workforce, South China Morning Post reports. Nearly 82% of respondents say they have considered disengaging from work due to stress, with 49% reporting burnout last year, a significant rise from 22% the previous year. Emily Li, Chief Employee Benefits and Wellness Officer at AXA Hong Kong and Macau, said: “It is concerning to observe that almost every person in the workforce experiences some degree of mental health issues.” In response, AXA has developed a comprehensive mental health network, offering services such as counselling, seminars, and tailored plans for employees.
STRATEGY
GCCs shift focus to emerging cities in India
Indian Global Capability Centres (GCCs) are increasingly establishing themselves in emerging cities such as Ahmedabad, Pune, Vadodara, Mangaluru, Coimbatore, and Chandigarh. According to consultancy firm Zinnov, the talent pool in these areas has surged by 26% to 71,000 in 2023-24, up from 56,000 in 2020-21. Karthik Padmanabhan, managing partner at Zinnov, noted, “Historically, Bengaluru and NCR have been the dominant players in the GCC space. However, the focus is now shifting towards these emerging hubs.” Companies like Infosys, TCS, Wipro, Cognizant, and Accenture are enhancing local talent ecosystems, which in turn attracts more professionals. Pune and Coimbatore are leading this trend, with Coimbatore housing over 15,000 skilled individuals. Governments are incentivising this shift by offering tax breaks and subsidies, making these locations appealing due to lower operational costs and a stable talent pool.
HIRING
Hiring confidence grows in Singapore
According to the Singapore Business Federation's (SBF) annual manpower and wage survey, 40% of companies in Singapore plan to expand hiring in the next 12 months, a rise from 29% last year. SBF chief executive Kok Ping Soon said: “While there are signs of a more positive employment outlook . . . a sizeable proportion of businesses continue to be cautious about the future.” Approximately 48% of firms intend to maintain current staffing levels, reflecting ongoing caution. The survey, conducted from June 18 to July 16, 2024, involved 796 companies, predominantly small and medium-sized enterprises (SMEs). Rising manpower costs remain the top challenge for 75% of local businesses, while limited local talent is now a close second, cited by 61%. Despite hiring challenges, 71% of companies have not used government schemes to hire “near-fit employees.” Training and upskilling are priorities, with nearly 90% of businesses recognising the need to enhance skills to remain competitive.
TAX
More than a quarter of paid parental leave recipients in New Zealand get tax bill
Nearly 30% of individuals in New Zealand who took paid parental leave received unexpected tax bills, according to Inland Revenue data. In the 2024 tax year, 13,261 recipients, or 27%, owed taxes, a figure consistent with previous years. Deloitte tax partner Robyn Walker explained that fluctuations in income during parental leave can lead to tax discrepancies. “It all comes down to the facts of a particular time or a particular person,” she noted. The Inland Revenue stated that not all tax assessments are complete, as some individuals have extended filing deadlines. Common reasons for tax bills include incorrect tax codes and fluctuating incomes. Walker highlighted that some parents received holiday pay simultaneously with parental leave, complicating their tax situation. The agency aims to simplify tax assessments, with over 70% of individual customers receiving automatic end-of-year assessments.
Trillions could be raised with a 'featherlight' tax on the super-rich
The Tax Justice Network says governments around the world could raise trillions of dollars by implementing a "featherlight" wealth tax on the top 0.5% of richest households. The proposal is based on evidence from Spain's temporary wealth tax, which applies to individuals with a net wealth exceeding €3m. The Tax Justice Network estimates that a similar tax worldwide, at a rate of 1.7% to 3.5%, could raise about $2.1tn annually. The study excluded certain exemptions, such as shares in listed companies and high-value assets. The UK alone could raise $31bn per year through this tax. The G20 is also exploring plans for a global minimum tax on billionaires. However, reaching an agreement on these proposals may take years. Alison Schultz, a research fellow at the Tax Justice Network, urged rich countries to support a robust framework convention on tax to address urgent climate financing needs. Despite concerns about the ultra-wealthy relocating, previous wealth tax reforms in Norway, Sweden, and Denmark have not resulted in significant migration.
INTERNATIONAL
Complaint is filed against EU Parliament over data breach affecting employee privacy
Austrian advocacy group NOYB has lodged two complaints with the EU privacy watchdog against the European Parliament, alleging insufficient protection of employees' data. Led by privacy activist Max Schrems, the complaints were filed on behalf of four employees following a data breach in the parliament's recruiting platform, which compromised sensitive information, including passports and criminal records, as well as over 8,000 marriage certificates. NOYB expressed concern that the parliament, which informed staff of the breach in May, discovered it months later and remains unaware of its cause. Lorea Mendiguren, a data protection lawyer at NOYB, said: "This breach comes after repeated cybersecurity incidents in EU institutions over the past year," emphasising the need for the Parliament to implement robust security measures to protect its employees from potential threats.
Many forced to quit Venezuela's PDVSA over their political views, workers say
Following the disputed election on July 28, over a hundred employees at Venezuela's state oil company PDVSA have been forced to resign due to their political views. Workers and unions report that those who did not support President Nicolas Maduro are being pushed out. "They call you to human resources, sit you down, and give you a resignation letter you must sign," said a source familiar with the situation. The political purge has exacerbated staffing issues in a company already struggling with a lack of qualified workers. Other public sector entities are also affected. Union leader Jose Bodas said: "This is political retaliation against numerous workers who in the most recent electoral process have shown themselves against Maduro."
Stellantis CEO visits U.S. to address lagging profit in North America
Carlos Tavares, the chief executive of French-Italian carmaker Stellantis, is visiting Detroit this week in a bid to develop a strategy to fix its beleaguered North American operations and reassure employees and investors, according to a person with knowledge of the plans. North America is the group's profit powerhouse. The source said Tavares' visit during his summer break was meant to send a clear signal. "He wanted to make clear he was handling it personally," the source said. "North American operations are basically funding the rest of the group." Tavares typically visits the North American operations every four to six weeks. Massimo Baggiani, founder at Niche Asset Management in London, said Tavares remains "the best executive in the industry," adding "It's key now for him to keep financial discipline. He needs to show that he can increase car sales without compressing margins, losing money and burning cash."
Canada to pause approval of temporary foreign workers for low-wage jobs in Montreal
Starting September 3, Canada will suspend the approval of new temporary foreign workers in low-wage jobs in the Montreal area. The freeze will affect Labour Market Impact Assessment (LMIA) applications for positions offering wages below $27.47 per hour, which is Quebec's median hourly wage. This decision aims to "ensure the integrity of the temporary foreign worker (TFW) program," designed to address vacancies when local workers are unavailable. Quebec Premier François Legault has been advocating for restrictions on temporary immigration for several months.
OTHER
Nintendo to open museum in Kyoto in October
Nintendo will open its first museum on October 2, in a renovated factory in Uji, Kyoto Prefecture, where it began life making Western-style and Japanese playing cards and later repaired consoles. The company first announced plans for the museum in 2021 as part of efforts to widen its revenue stream. It was initially set to open earlier this year. Super Nintendo World, the company's first theme park, opened in March 2021 after months of pandemic delays. Tickets for the museum for October and November are now on sale, costing ¥3,300 ($22.60) for adults and less for children.
 


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