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APAC Edition
6th November 2024
 
THE HOT STORY
China needs more ‘skilled talent', Premier Li Qiang says
Premier Li Qiang has emphasised the necessity for improved vocational education and the cultivation of skilled talent in China, saying that “the demand for skilled talent is an increasingly pressing issue in today's economic and social development.” The call comes amid a backdrop of rising unemployment among Chinese youths, with approximately 16% of non-students aged 16-24 unemployed as of September. The government aims to develop around 62,000 “master artisans” by 2035, while also enhancing training in critical sectors such as healthcare and childcare. Li highlighted the importance of integrating educational institutions with enterprises to ensure a more effective talent pipeline, as China strives for “high-level scientific and technological self-reliance” in the face of global competition.
HIRING
Construction sites in Korea set to embrace skilled foreign workers
The Korean government plans to introduce the E-7-3 general skilled worker visa, allowing foreign nationals to work as formwork carpenters, rebar placers, and concreters in the construction sector starting next year. Currently, most foreign workers in Korea hold E-9 visas, which restrict them to non-professional tasks. The move comes in response to a declining number of young Korean workers, with the average age of skilled Korean construction workers now at 51.4 years. The Construction Association of Korea has raised concerns over the limitations on E-9 visa holders assisting skilled workers, which has led to delays in projects. The government is considering issuing around 200 E-7-3 visas next year, while construction sites are requesting approximately 300 skilled foreign workers.
CORPORATE GOVERNANCE
MinRes falls after boss forced out for poor conduct
Chris Ellison will resign as managing director of Australian mining business Mineral Resources after a review uncovered "profoundly disappointing" conduct involving the use of company resources for personal benefit. MinRes ordered an investigation into its founder over various allegations including Ellison’s decision not to disclose revenue generated by overseas entities to tax authorities before the company was listed. The mining and services company said it had also fined Ellison A$8.8m to reflect the “significance of corporate governance and reputational issues to the company.” The founding chief executive also faces a further A$9.6m in lost remuneration.
LEGAL
U.S. tech firms issue warning over Vietnam's planned data law
U.S. tech companies have expressed concerns to Vietnam's government regarding a draft law aimed at tightening data protection and restricting data transfers abroad. Jason Oxman, chair of the Information Technology Industry Council, said that the law "will make it challenging for tech companies, social media platforms and data centre operators to reach the customers that rely on them daily." The law, currently under discussion in parliament, seeks to enhance government access to data and may impact foreign investment in Vietnam's burgeoning data centre industry. Existing regulations already limit cross-border data transfers, but enforcement is rare. The draft law includes provisions for prior authorization for transferring "core data" and "important data," which are vaguely defined. Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, noted that the law "would cause significant compliance challenges for most private sector companies," and he urged a reconsideration of the legislative process.
RISK
Taiwanese SpaceX suppliers move manufacturing overseas, source says
A source at a Taiwanese firm that is a subcontractor which provides components for SpaceX's Starlink satellite internet products said Elon Musk's company asked manufacturers to produce outside of Taiwan because of geopolitical risks. Taiwan hosts a multi-billion-dollar satellite component industry. Reuters says SpaceX's reported requests place a renewed focus on the contentious relationship Musk has had with Taiwan. Last year, he said Taiwan is an "integral part" of China.
WORKFORCE
Esops gain traction despite lack of understanding
Employee stock option plans (Esops) are increasingly popular among start-ups, with 78% of 160 surveyed companies offering them in 2024, up from 59% in 2021. The 2024 study by Saison Capital, XA Network, and Carta revealed that one in three start-ups now provides Esops to all employees, compared to one in four in 2021. Looi Qin En, partner at Saison Capital, said: “At the end of the day, working in a start-up is often riskier and more intense. Thus, employees should be recognised, and Esops are one of the most effective mechanisms to align interests.” However, many founders lack a deep understanding of Esops, with only 30% grasping the details. Despite this, 72% of employees consider Esops a priority when job hunting, with 49% valuing them as much as cash bonuses. Looi emphasised the need for founders to understand Esops thoroughly to explain them effectively to employees.
TRAINING & DEVELOPMENT
Oppo invests in AI talent development
Chinese consumer electronics manufacturer Oppo has committed $4.2m over five years to enhance its collaboration with the Hong Kong Polytechnic University (PolyU) in artificial intelligence (AI) imaging technology. The partnership will establish a new joint innovation research centre, set to launch in January 2025, which aims to recruit around 25 doctoral researchers and several postdoctoral candidates. Zhang Lei, chair professor at PolyU, stated: “The research centre's primary goal is to nurture talent”. The initiative reflects a strategic move by Oppo to develop leading AI experts amid fierce competition between the US and China for AI dominance. The collaboration also highlights the potential for academia and industry to drive technological innovation and improve consumer experiences.
STRATEGY
Lattice Semiconductor will cut 14% of its jobs
Lattice Semiconductor has announced a 14% reduction in its global workforce, translating to approximately 160 job losses, as the company grapples with declining sales and profits. Lattice chief executive Ford Tamer said: “We do not expect any additional reductions will be needed,” despite ongoing industry challenges. The company's third-quarter sales plummeted to $127m, a 33% decrease from the previous year, while profits fell to $7.2m from $53.8m. Lattice, which employs around 1,156 workers globally, has seen a significant drop in demand for its programmable chips following a post-pandemic surge.
ECONOMY
Inflation falls, but young Australians still feel the squeeze on living costs
Despite new data from the Australian Bureau of Statistics showing inflation at 2.8%, its lowest since the pandemic, young Australians like 23-year-old Anastasia Scoggin and 26-year-old Hamish Howes aren’t feeling relief. With weekly grocery budgets tight, many are opting for cheaper alternatives like the Addi Road Food Pantry while avoiding supermarket chains due to high prices. Scoggin, who commutes for affordable groceries, and Howes, who passes on treats due to their cost, share scepticism despite inflation reports. Both say living expenses, particularly for food and rent, remain high, forcing many to make budget-conscious choices to manage essential costs.
INTERNATIONAL
New York Times tech workers strike ahead of Election Day
The Times Tech Guild, representing software developers and data analysts at The New York Times, initiated a strike on November 4, coinciding with the crucial Election Day news period. Negotiations had stalled over key issues, including a “just cause” provision for termination, pay increases, and return-to-office policies. Management proposed a 2.5% annual wage increase and a $1,000 ratification bonus, while maintaining a two-day in-office requirement. Kathy Zhang, the guild's unit chair, said: “They have left us no choice but to demonstrate the power of our labour on the picket line.” The guild, which has over 600 members, aims to secure a contract after being certified in March 2022. The strike is strategically timed to coincide with an expected surge in readership during the elections.
VW cost cutting necessary after 'decades of structural problems', CEO says
Volkswagen chief executive Oliver Blume has told newspaper Bild am Sonntag that the German carmaker's planned cost-cutting programme was unavoidable in order to remedy "decades of structural problems" at the business. "The weak market demand in Europe and significantly lower earnings from China reveal decades of structural problems at VW," Blume said, adding that the cost of operating in its home market was a major drag on competitiveness, and telling Bild am Sonntag that "our costs in Germany must be massively reduced."
 


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