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APAC Edition
15th April 2024
 
THE HOT STORY
India emerges as global hiring hotspot
Wealth surge, China pivot, and a fear of missing out have made India a new global hiring hotspot. The employment market is booming, with stories of ghosted employers, million-dollar trading jobs, and private bankers demanding up to a 50% pay hike. Signs of expansion are everywhere, with international firms like Optiver and Citadel Securities opening offices in Mumbai and Gurugram. Local firms like ICICI Securities are also growing rapidly. India's economy is expanding at over 7% per annum, and the government is making it easier to do business. The market is especially hot in the wealth industry, with private bankers and wealth managers seeing significant pay increases. However, there are doubts about the sustainability of the boom and concerns about the rising pay scales. Despite this, India's moment as a global hiring hotspot seems to have arrived.
WORKFORCE
Record number of Japanese workers flock to Australia for higher pay
Some 14,398 Japanese workers were granted working holiday visas in Australia in fiscal 2022-23, the highest number in Australian government data going back to 2001. The lure of higher wages, made even more attractive by the weakening yen, has prompted many young Japanese to seek employment in Australia. The average annual wages in Japan are significantly lower than in Australia and the US. This outflow of talent is exacerbating Japan's labour shortage and reflects the scepticism of younger Japanese towards the nation's economic outlook.
TRAINING & DEVELOPMENT
Singapore to establish Maritime Energy Training Facility for cleaner fuels
Singapore will establish a Maritime Energy Training Facility (METF) to train international maritime personnel in the use of cleaner fuels such as methanol and ammonia. The facility is expected to prompt industry players to invest in related training facilities and solutions in Singapore. Seafarers and other maritime personnel can acquire the necessary skills for safe handling, bunkering, and incident management of alternative fuels and low- or zero-emission vessels. The METF, to be developed by 2026, will be a network of planned and existing training facilities. Ship owners and operators can save time and training costs by using these facilities. About 10,000 maritime personnel are expected to be trained through the 2030s. Singapore is the world's top port for bunkering and has been preparing for the adoption of lower-carbon fuels. The country recently conducted ammonia and methanol bunkering trials. Singapore Maritime Week, organised by the Maritime and Port Authority of Singapore, is taking place from April 15 to 19.
REMUNERATION
TCS to give 100% variable pay to junior employees
Tata Consultancy Services (TCS) has announced that junior employees with a minimum of four years of experience will receive a variable pay of 100%. The variable pay for employees above the C2 grade will be determined by the performance of their respective business units. TCS has consistently provided 100% variable pay to its junior employees and has also announced salary increments ranging from 4.5% to 7% for its employees, with top performers receiving double-digit raises. Milind Lakkad, Chief Human Resources Officer, emphasized the importance of creating a positive work environment where everyone can excel. TCS plans to hire 40,000 freshers and continues to focus on talent development initiatives. Year to date, TCS employees have completed 51 million learning hours and acquired 5 million competencies. The IT services' attrition rate for the last twelve months was 12.5%, within the company's comfort range of 11% to 13%.
STRATEGY
Volkswagen expands production and research facilities in China
Volkswagen will invest €2.5bn to expand its production and research facilities in Anhui province, China. The German automaker aims to regain its position as China's top-selling car brand and prevent a decline in sales. The investment will be used to expand Volkswagen's production and innovation hub in Hefei, Anhui. Ralf Brandstätter, Volkswagen's China chief, stated that the investment demonstrates the firm's ambition to enhance local innovative strength. China accounts for 69% of global electric car sales, and Volkswagen will also use the investment to establish factories for two new models in collaboration with Chinese EV manufacturer Xpeng. The first model, a mid-sized SUV, is set to be produced in 2026. The move comes as Volkswagen faces tough competition from local automakers and newcomers like Xiaomi. 
CORPORATE
Hindustan Unilever faces competition from niche brands
Hindustan Unilever, the largest consumer company in India, is facing competition from niche brands as the country's elite classes demand more from their personal-care products. The rise of organic brands and the entry of global names are forcing Hindustan Unilever to invest more in product development and advertising. The company's challenges mirror those of other consumer-goods giants as they struggle to acquire niche brands that are taking market share.
LEGAL
Property tycoon sentenced to death
Property tycoon Truong My Lan has been sentenced to death in Vietnam's biggest corruption case, with damages estimated at $27bn. Lan, the chair of major developer Van Thinh Phat, was found guilty of swindling cash from Saigon Commercial Bank over a decade. The verdict stated that her actions eroded people's trust in the Communist party and state. Lan denied the charges and blamed her subordinates. Lan embezzled $12.5bn, but prosecutors now estimate the total damages at $27bn, equivalent to 6% of the country's GDP in 2023. The scandal affected around 42,000 victims.
INTERNATIONAL
U.S. Embassy in Jerusalem issues shelter-in-place order for employees
The U.S. Embassy in Jerusalem has told all U.S. government employees to shelter in place until further notice, according to a security alert posted after Iran began launching drones and missiles at Israel. “In response to security incidents and without advance notice, the U.S. Embassy may further restrict or prohibit U.S. government employees and their family members from traveling to certain areas of Israel (including the Old City of Jerusalem) and the West Bank,” the statement said.
EEOC urges Workday to face class action lawsuit
The U.S. Equal Employment Opportunity Commission (EEOC) has filed an amicus brief urging Workday, the human resources software firm, to face a proposed class action lawsuit. The lawsuit alleges that Workday violated federal anti-bias laws by using AI-powered software to discriminate against job applicants for other employers. The EEOC argues that Workday qualifies as an "employment agency" under Title VII of the Civil Rights Act of 1964. The lawsuit was filed by Derek Mobley, who claims he was turned down for over 100 jobs due to his race, age, and mental health conditions. Workday denies any wrongdoing. The EEOC warns employers about the legal liability of discriminatory AI tools. The case is scheduled for a hearing on May 7.
UN Deputy Secretary-General: Make 2024 a 'turning point' for education
Speaking Thursday at an education panel convened by the European Union in Brussels, UN Deputy Secretary-General Amina Mohammed called on the world to "make 2024 a turning point for education." A series of meetings this year will build on the Transforming Education Summit convened by the UN in 2022 in response to the COVID-19 crisis, including the Summit of the Future in September. Ms. Mohammed called for two specific outcomes on education at the Summit.  “First, we need a clear recognition from world leaders of the urgent need to transform and invest in education as a global imperative,” she said. “Second, we need major breakthroughs on issues that are critical for education, including reform of the international financial architecture, strengthened digital cooperation and a new agenda for peace.” Without additional measures, an estimated 84 million children and young people will still be denied access to the classroom by 2030, and approximately 300 million students will lack the basic–and vital–numeracy and literacy skills.
Zimplats to cut headcount by 1% amid cost cuts
Zimbabwe's biggest platinum producer, Zimplats, plans to reduce its headcount by 1% as part of broad cost-cutting measures in response to the decline in platinum group metal (PGM) prices. The company aims to maintain its annual output and improve productivity to contain costs. Zimplats is curtailing spending on expansion projects and will focus on replacement capital expenditure. The CEO, Alex Mhembere, stated that job cuts are not the only solution to sustain the business. The move comes as PGM miners in Southern Africa, including Impala Platinum and Anglo American Platinum, have also been cutting costs and jobs due to weak auto production and concerns about a global economic slowdown. Zimplats does not anticipate any adverse impact from Zimbabwe's new gold-backed currency on its business.
 


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