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APAC Edition
30th April 2024
 
THE HOT STORY
Indonesia considers dual citizenship to attract skilled workers
Indonesia is considering offering dual citizenship to people of Indonesian descent in order to attract more skilled workers to the country. Currently, Indonesia does not recognize dual citizenship for adults, but the government plans to grant dual citizenship to former Indonesian citizens living overseas. The move aims to bring skilled Indonesians back to the country. The issue of dual citizenship has caused controversy in the past, with President Joko Widodo removing a minister from his position due to him holding both US and Indonesian passports.
STRATEGY
KFC Malaysia temporarily closes outlets
KFC Malaysia has temporarily shut local outlets, citing challenging economic conditions. The move came following media reports that the closures were due to boycotts over the fast food chain's perceived links to Israel. Some Western fast-food brands in Malaysia, a majority-Muslim country, as in some other Muslim nations, have been targeted over Israel's military offensive in Gaza. "QSR Brands and KFC Malaysia has taken proactive measures to temporarily close outlets as means to manage increasing business costs and focus on high engagement trade zones," QSR Brands (M) Holdings Bhd, which operates KFC and Pizza Hut franchises in Malaysia, said in a statement, which did not address the media reports and did not specify how many stores were affected. Local media has reported that more than 100 stores were temporarily closed. Staff from the affected outlets were offered the opportunity to relocate to areas with higher customer engagement, QSR Brands said.
HIRING
New visa policies aim to boost Beijing and Shanghai as science and tech hubs
New visa policies announced by the National Immigration Administration aim to boost cross-border collaboration and turn Beijing, Shanghai, and the Greater Bay Area into influential science and technology hubs. Outstanding researchers in science, technology, innovation, and education in Beijing and Shanghai will benefit from the policies, which allow them to apply for multi-entry visas ranging from one to five years for stays in Hong Kong and Macau. The policy change simplifies the process and encourages leading mainland scholars to visit Hong Kong more often, enhancing interconnectivity among China's major innovation clusters. The measures also include an extension of the length of stay for mainland business visa holders in Hong Kong and Macau, doubling the maximum period to 14 days.
HEALTH & WELLBEING
Hong Kong to launch updated heat stress warning system and guidelines
The Labour Department in Hong Kong is set to launch an updated heat stress warning system and revised guidelines to prevent heatstroke at work. The department will also roll out an updated code of practice for working in confined spaces earlier than scheduled, following a fatal accident. The heat stress warning system, which was introduced last year, will be adjusted to observe weather changes over a longer period to prevent confusion among employees. The revised code of practice for working in confined spaces will require video recordings to be taken to monitor workers' compliance with safety precautions. The department hopes to speed up the launch of the revised guidelines after the recent accident. Additionally, a pilot programme on rehabilitation for injured workers will be expanded to cover workers from the catering and hotel, as well as transport and logistics industries.
Two deaths in India's Kerala state due to suspected heat stroke
At least two people have died in India's southern state of Kerala due to suspected heat stroke. A 90-year-old woman and a 53-year-old man died as temperatures soared to 41.9 degrees Celsius, nearly 5.5 degrees Celsius above normal. The deaths are yet to be confirmed as heatwave-related. Climate change is believed to be contributing to more frequent and severe heatwaves. Authorities have issued warnings and advised people to take precautions against the heat. India's weather department has predicted more heatwave days than usual between April and June. In the neighbouring state of Odisha, two people have died this summer of sunstroke. Bangladesh has also been affected by the heatwave. Outdoor workers, like rickshaw drivers, are facing difficulties due to the extreme heat.
WORKFORCE
Pacific Island countries take action to control labour drains
Pacific Island countries are taking steps to gain more control over labour drains caused by the increase in outbound seasonal worker numbers since COVID. Vanuatu has trialled a new visa to bring in more workers from overseas, but the early results have been disappointing for businesses. It is still uncertain whether Samoa and Tonga will succeed in their plans to better control workers joining labour mobility schemes.
LEGAL
Chinese family offices in Singapore hit by money laundering scandal
The growth of Chinese family offices in Singapore is slowing due to the aftermath of a multibillion-dollar money laundering scandal and tighter checks on new applicants. The city-state has seized over S$3bn in assets related to the case, which involved 10 China-born suspects. The number of family offices in Singapore is around 1,400, with approximately 10% handling money of Chinese origin. The rate of growth has decelerated due to increased requirements on assets under management. However, Singapore's government is extending tax incentives for family offices until 2029 to attract and support fund management activity and private wealth management. The slowdown in Chinese family offices is also attributed to elevated property prices and higher stamp duty for foreign buyers. Changes to tax incentives for family offices are expected to be announced in the third quarter of this year. The government is encouraging more philanthropy and sustainable investments in the private wealth-management landscape.
WORKPLACE
Beer giant brews a culture of employee togetherness
Asia Pacific Breweries Singapore (Heineken Asia Pacific), or APBS, has been recognized as one of the top employers in Singapore. The company offers a comfortable and nurturing working environment for its employees, providing amenities such as an in-house bar with free beers, a full-fledged gym with a yoga studio, and a steam room. APBS also arranges for point-to-point company transport for employees, ensuring a hassle-free commute.
TECHNOLOGY
Microsoft to invest $1.7bn in cloud and AI infrastructure in Indonesia
Microsoft will invest $1.7bn in new cloud and artificial intelligence infrastructure in Indonesia, marking its largest investment in the country. The move aims to position Microsoft as a leader in applying AI technology to enhance productivity. Microsoft CEO Satya Nadella stated that the investment will support digital infrastructure, skilling, and developer support, contributing to Indonesia's growth in the AI sector. The investment will also include AI training for 840,000 individuals and support for the country's tech developer community. Indonesia, with its growing digital and information sectors, is projected to capture $366bn of the estimated $1 trillion AI contribution to Southeast Asia's GDP by 2030. The investment aligns with Indonesia's vision to become one of the world's top five economies by 2045.
INTERNATIONAL
UK regulator quizzes Big Four on AI exam cheating
The UK's Financial Reporting Council (FRC) has asked the Big Four audit firms to explain the measures they are taking to prevent professionals from using AI tools to cheat on exams. The watchdog said it continues to “work closely” with the leading auditing firms and professional accountancy bodies to ensure robust systems are in place to detect, monitor and combat activity which could undermine the quality of audits. A spokesman for the Institute of Chartered Accountants in England and Wales said it proactively works with regulators to monitor potential exam malpractice, adding that it is “constantly monitoring the use of AI and the risk that it poses.” While KPMG reportedly tells employees that cheating using AI could see them lose their jobs, Deloitte tells staff that using AI tools during exams will be considered gross misconduct. In 2022, the FRC ordered audit firms to crack down on cheating after discovering that a number of employees shared answers via email or messaging platforms such as WhatsApp when completing online tests introduced during the pandemic.
Immigrant workers in the US play a vital role in meeting workforce needs, report says
A study from the Migration Policy Institute (MPI), a non-partisan think tank based in Washington D.C., suggests that immigrant-origin workers in the US, including the U.S.-born children of immigrants, play a crucial role in meeting the country's workforce needs. Immigrant-origin workers accounted for 29% of the overall US workforce in 2023, up from 19% in 2000, the report said. It also highlighted the need for upskilling and retraining to meet the demands of the future US job market. "In an economy marked by growth and skill mismatches, policymakers need to ensure that workers across different groups are equipped for the increasingly demanding jobs of the future," said MPI analysts.
KLM employees allowed to wear sneakers at work
KLM employees will soon be allowed to wear sneakers at work. The airline is responding to the demand for more comfortable work shoes, as wearing sneakers under a uniform becomes increasingly common in the industry. Stewardesses already have a choice about the height of their heels, but now they will also have the option to wear sporting shoes. However, employees are only permitted to wear sneakers with trousers, and the colour of the uniform determines which colour sneakers they can wear. The sneakers must be made from smooth (artificial) leather and have a white sole. KLM collaborated with the Dutch clothing brand Filling Pieces to develop its own shoe. This change will take effect from May 6. "Wearing sneakers under a uniform is becoming increasingly common at airlines and suits the current times," said a spokesperson for KLM.
OTHER
Confusion over plastic ban at 7-Eleven snack bars
Customers at 7-Eleven snack bars in Hong Kong are still facing confusion over whether they can eat their food inside the stores due to the new ban on plastics. The ban, which prohibits the use of plastic containers or lids for dine-in dishes, has led to conflicting answers from staff at different branches. Some staff admit they are not aware of the enforcement rules contained in the new regulations. The inconsistent application of the ban has caused complications, following confusion last week over whether supermarkets were allowed to use plastic containers for pre-packaged sushi products. The Environmental Protection Department has attempted to clear up the confusion, stating that made-to-order food eaten in a dining area is considered dine-in and plastic tableware and packaging is prohibited. However, pre-packaged food placed on shelves is considered takeaway and plastic packaging is allowed. Lawmaker Doreen Kong Yuk-foon has criticised the lack of clarity over the new rules and stated that the food served at 7-Eleven snack bars is not covered by exemptions for pre-packaged products. Offenders of the plastic ban face fines and penalties after the six-month grace period expires.
 


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