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APAC Edition
8th September 2025
 
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THE HOT STORY

Japan sets record minimum wage hike

Japan will raise its hourly minimum wage by 6.3% to ¥1,121 ($7.56), the largest increase since 1978, affecting about 3mworkers starting in October. This move strengthens the nation's wage-price cycle and supports potential rate hikes by the Bank of Japan. "The hike may prolong food-driven inflation," said Takuya Hoshino of Dai-ichi Life Research Institute. Prefectures like Tokushima, which led gains with a 9.4% rise last year, are seeing local economic benefits but small firms risk collapse under wage pressures. Prime Minister Ishiba is aiming for a ¥1,500 hourly wage, but global trade strains may slow progress. Meanwhile, Japan's nominal wages rose 4.1% in July, the fastest in seven months, with real wages up 0.5%—the first increase this year. Base pay also climbed, reflecting strong union-negotiated raises. The surge, aided by a 7.9% jump in summer bonuses, supports the case for a Bank of Japan rate hike, possibly in October.
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WORKFORCE

Korea investigates migrant worker wage issues

President Lee Jae Myung has initiated a fact-finding investigation into unfair treatment and wage delays affecting migrant workers in Korea. He emphasised the need for fair treatment, stating: "Given Korea's status as a cultural nation, foreigners residing here must not suffer unfair treatment." Lee urged the Justice Ministry to suspend deportations until workers receive their overdue wages. He highlighted the common issue of wage arrears, warning that deported workers may never collect owed wages. Support measures are to be prepared and submitted by officials.

South Korea's four-day workweek revolution

South Korea is trialling a four-day workweek to improve work-life balance. The initiative, introduced in 2023, allows some staff to take three days off weekly for a 10% salary reduction. The Korea Worker Institute-Union Center reported a drop in turnover rates among participating nurses from 19.5% to 7%. While some experts express concerns about productivity, many workers hope for broader adoption of this model.

Hong Kong's talent scheme faces scrutiny

Hong Kong's Top Talent Pass Scheme, launched in late 2022, has attracted nearly 140,000 applications, with about 110,000 approved. This has led to over 90,000 new arrivals, indicating the city's appeal. However, former chief executive Leung Chun-ying cautioned that the real challenge lies in the integration of these newcomers. As of July 31, 13,678 visas expired, with only 54% applying for renewal. Renewal rates vary significantly, with 77% for high earners and only 40% for recent graduates. Leung noted stagnant housing occupancy, raising concerns about long-term relocation intentions.

Oracle lays off thousands globally

Oracle has begun a new round of layoffs, affecting over 3,000 employees across the US, India, Philippines, Canada, and Europe. The cuts impact various divisions, including Oracle Health and corporate teams, as part of a restructuring effort following the Cerner acquisition. Reports indicate that entire teams in the Philippines were dismissed during "Business Update" meetings. In the US, roles in Care Delivery and Consulting were significantly affected. A filing confirmed 101 layoffs in Seattle, adding to previous job losses. The company has not issued an official statement regarding these layoffs.

Bamboo: A new hope for jobs

In July, a training program in Beijing highlighted bamboo's potential for job creation, especially for people with disabilities. Filipino architect Jed Michael de Guzman, who has 14 years of experience, attended the program to explore opportunities in the bamboo supply chain. He noted that bamboo weaving is accessible and labour-intensive, making it suitable for disabled individuals. The initiative, organised by the National Academy of Forestry and Grassland Administration, aimed to empower communities in Southeast Asia. De Guzman plans to introduce bamboo weaving in his local community after the training. "Bamboo weaving creates maximum value from minimal resources," he stated.
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HIRING

Korea's talent retention challenge revealed

Evgenii Smagin, an AI strategist at SK Telecom, highlighted challenges in retaining global talent in Korea during a roundtable at Seoul City Hall. He noted that while Korea offers a strong infrastructure, companies often lack clear goals for hiring foreign nationals. Fellow panelist Ferreira Fraga Luis Filipe pointed out societal inclusivity issues, making it difficult for foreigners to adapt. Other challenges include limited internship opportunities and strict visa processes. The panelists agreed that mutual efforts from locals and foreigners are essential for Korea to become a more attractive destination for international talent.

OpenAI to launch AI jobs platform

OpenAI plans to launch its AI-driven Jobs Platform by mid-2026, aiming to transform hiring by connecting employers with AI-skilled talent. The platform will utilise AI matching to identify suitable candidates and will integrate with OpenAI Certifications to verify AI fluency. Fidji Simo, OpenAI's CEO of Applications, stated: "The OpenAI Jobs Platform will have knowledgeable, experienced candidates at every level." The initiative will also support small businesses and local governments, with a pilot rollout expected before the full launch. OpenAI aims to certify 10m Americans by 2030.
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TRAINING & DEVELOPMENT

Singapore's aerospace industry expands: Upskilling needed

The aerospace industry in Singapore is rapidly expanding, creating nearly 3,000 jobs from 2021 to 2023, with an additional 2,500 expected in the next few years. Experts at a recent roundtable highlighted the importance of upskilling workers to meet the demands of new technologies, such as 3D printing and AI-driven maintenance. Zheng Jingxin from the Economic Development Board stated: "Workers must be prepared for such jobs." Companies like GE Aerospace and ST Engineering are collaborating with educational institutions to ensure graduates are equipped for future roles in the sector.
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REMUNERATION

Qantas cuts executive bonuses after cyber hack

Qantas Airways has reduced short-term bonuses for its top executives and chief executive by 15% for fiscal 2025 following a cyber hack that compromised 6m customer records. The company stated that the bonus cut reflects shared accountability among executives. CEO Vanessa Hudson's bonus was reduced by A$250,000, although her total earnings rose to A$6.3m. The airline's profit increased nearly 16% due to a post-pandemic recovery in domestic travel. Qantas said: "It is important for both our executives and shareholders that the remuneration consequences of this incident be dealt with this year."

Samsung union demands profit-based bonuses

The National Samsung Electronics Union (NSEU) has requested a new bonus system linked to operating profit, following a recent agreement at SK hynix. The NSEU, representing over 27,700 employees, criticises the current Economic Value Added (EVA) system as “non-transparent and unreasonable.” In a letter to Samsung executives, the union proposed a fixed share of operating profit for bonuses. The SK hynix deal, which allocates 10% of operating profit to bonuses, is seen as a potential model for Samsung. An industry official noted concerns about fluctuating payouts during economic downturns.
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LEGAL

Coles and Woolworths face underpayment scandal

Coles and Woolworths are embroiled in an ongoing underpayment dispute affecting nearly 30,000 employees. The Australian Federal Court recently ruled on four cases, revealing both companies failed to maintain accurate employment records. Woolworths has repaid A$330m, while Coles has returned A$7m to affected managers. Justice Nye Perram noted the complexity of the case and the need for clearer guidelines. He stated: "This should not be done again." A case management hearing is set for October to discuss compensation for the impacted staff.
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PRODUCTIVITY

AI's rapid rise: Companies cash in

Google Cloud's 2025 ROI of AI report reveals that 74% of companies using AI are seeing returns on investment. The study surveyed 3,466 senior leaders and found that 53% attribute revenue gains of 6% to 10% to AI. Oliver Parker, vice president at Google Cloud, noted that AI is becoming integral to business processes. Companies are increasingly adopting AI agents, with 52% using them for various tasks. Parker stated: "This technology is starting to separate those that have adopted it... from those that have not."

AI adoption slashes costs in Asia

Morningstar analysts predict that the rapid adoption of artificial intelligence (AI) will significantly reduce long-term operating costs across various sectors in Asia. Kathy Chan and Kai Wang highlighted that companies like Trip.com have improved margins through AI-driven marketing efficiency. However, they noted potential job security concerns for employees, as AI may lead to fewer workers needed. Chan stated: "GenAI is analysing demand data and suggesting how best to spend company marketing budgets." The report identifies five sectors likely to benefit from AI, including consumer, technology, and healthcare.
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TECHNOLOGY

ByteDance shifts chip design staff to Singapore

ByteDance has moved its chip design staff, primarily based in Beijing and Shanghai, to a Singapore unit. This shift may help the company navigate US-China tensions while seeking advanced semiconductor technology. Employees discovered the change through the company's internal messaging platform. US regulations have restricted mainland Chinese firms from using Taiwan's TSMC for advanced AI chip production. ByteDance is developing proprietary chips, known as application-specific integrated circuits (ASICs), to reduce reliance on suppliers like Nvidia. A source noted: "ByteDance has launched fewer chips than rivals."
 
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