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APAC Edition
23rd May 2024
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THE HOT STORY
Nepalese farm worker sues former UK employer for unpaid wages and discrimination
A Nepalese farm worker is suing her former employer in the UK for unpaid wages and discrimination, marking the first case of its kind. Sapana Pangeni, who came to the UK on a seasonal visa, alleges that she was not provided with gloves and was forced to live in an unheated caravan. The UK relies on migrant workers to support its farms due to a shortage of local labourers. Pangeni's case highlights the difficulties faced by migrant workers in enforcing their rights. Major supermarkets and industry groups have taken notice of the issue, as some seasonal workers report unpaid wages and recruitment fees. Pangeni's case could set a precedent for other migrant workers to claim compensation. If successful, she could receive thousands of pounds. “There are many people who have suffered exploitation who cannot speak out about their situation.” Pangeni said. “I hope that my case will be a source of inspiration to them. I want other workers to know that they can challenge employers who underpay or mistreat them.”
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WORKFORCE
Record-breaking heatwave hits India
Temperatures in India reached 47.8 degrees Celsius (118 degrees Fahrenheit) on Sunday, one of the highest temperatures recorded this year. Reuters reports that the heatwave is affecting labourers like Banwari Singh, who have no choice but to work in extreme conditions. The northwest of India is experiencing an intense heatwave, with three times the usual number of heatwave days forecast for May. Delhi has already closed schools due to rising temperatures, and voters in the national election may face long queues in the sweltering heat. Workers are provided with water and sometimes lemonade to beat the heat, but some still fall sick. Despite the extreme conditions, Reuters reports on how labourers like Sumit Goswami continue to work to support their families.
China's youth unemployment rate sees slight fall in April
China's youth unemployment rate saw a slight fall in April, according to the National Bureau of Statistics (NBS). The surveyed unemployment rate for youths aged 16 to 24 was 14.7%, down 0.6 percentage points from the previous month. The unemployment rate for young people aged 25 to 29 remained around 7.1%, falling by 0.1 percentage point month-on-month. The NBS clarified that these calculations exclude students to provide a clearer result. The overall unemployment situation in urban areas also improved, with the surveyed unemployment rate staying around 5% in April, a decrease of 0.2 percentage points from the previous month. Migrant workers in urban areas experienced a 4.5% unemployment rate in April, a decrease of 0.5 percentage points from the previous month and 0.6 percentage points compared to the same period in 2023.
STRATEGY
Citigroup considers reducing office space in Singapore
Citigroup is considering reducing its office space in Singapore as remote working gains traction. The bank may give up one of the six floors it occupies at Asia Square Tower 1. Most of Citigroup's staff are on a hybrid-work model. Singapore recently announced that all employers must have a process for workers to request flexible work arrangements. Singapore's commercial real estate market remains strong, with office rents hitting a 15-year high. However, some sectors, including technology and banking, may see office consolidation amid layoffs. French bank BNP Paribas and Meta Platforms are also cutting prime office space in Singapore.
HIRING
London staff to double at Australian pension fund Aware Super
Australia's third-largest pension fund, Aware Super, is set to hire up to 15 more people in its London office as it expands its private markets investments. The firm plans to increase its current headcount of 15 to 25-30 by the end of the year, with the potential to reach 50 people over the next two years. Aware Super aims to leverage its strong general partner relationships globally from London. The pension fund is part of a trend among Australia's top three funds to invest more outside of the country. Aware Super is also looking to grow its unlisted asset allocation and increase its internal investment management.
TECHNOLOGY
Nations sign agreement on AI risk thresholds
Twenty-seven nations and the European Union have signed an agreement to create shared risk thresholds around the development of artificial intelligence (AI). The agreement aims to establish an internationally recognised threshold for AI model capabilities and when it poses a severe risk without appropriate mitigations. The risks include the potential for AI to help malicious actors acquire or use chemical and biological weapons, or evade human oversight through deception. The agreement, known as the Seoul Ministerial Statement, was signed at the conclusion of the AI Seoul Summit in South Korea. China, although involved in the summit talks, did not sign the statement.
China's top internet regulator launches language model based on Xi Jinping's thought
China's top internet regulator has introduced a large language model (LLM) based on Chinese President Xi Jinping's political philosophy. The model, developed by the China Cyberspace Research Institute, is a closed AI system that promises to be "secure and reliable." It is built on a select knowledge base with locally generated data and is not open-sourced. The LLM can answer questions, summarise information, and translate between Chinese and English. It is still undergoing internal testing and is not yet available for public use. The launch of the model aligns with Beijing's efforts to use AI for economic growth while maintaining strict regulatory control over cybersecurity. Chinese firms have been developing their own versions of AI models like ChatGPT, but they must adhere to government regulations and ensure their narratives align with Beijing's agenda. The language model is based on Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, which was enshrined in China's constitution in 2018.
Michael Schumacher's family win compensation for AI 'interview'
Michael Schumacher's family has received €200,000 ($220,000) in compensation from the publishers of a German magazine which had printed an AI-generated 'interview' with the Formula One champion. The settlement was confirmed by a Munich Labour Court judgement and the Funke media group, publishers of the magazine Die Aktuelle. The magazine's editor was fired last year and Funke apologised to Schumacher's family. Schumacher, who suffered a serious brain injury in a skiing accident in 2013, has not been seen in public since. The family maintains strict privacy about his condition. The magazine had published the 'interview' in April 2023, but it was later revealed that the quotes were generated by artificial intelligence.
Robot helps check safety of high-speed train carriages in China
With the help of a lightweight six-legged robot, Liu Tianyu and his team at CRRC Changchun Railway Vehicles Co have improved the process of testing high-speed train carriages. The robot collects internal temperature data and checks the safety status of the carriages as they come off the production line. The robot's spider-like appearance allows it to move flexibly in narrow areas, and its lightweight design makes it easy to manoeuvre. The robot, made using 3D printing technology and PLA plastic, weighs less than 2 kilograms and is capable of remote control and real-time video transmission. Liu plans to continue improving the robot for future versions. "The robot is only the first version, and there is still a lot of space for improvement," he said.
ECONOMY
Japan's factory activity expands for first time in a year
Japan's factory activity expanded for the first time in a year in May, according to a business survey. The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) climbed to 50.5 in May, breaching the 50.0 threshold separating growth from contraction. Both output and new orders contracted at a slower pace, while stocks of purchases rose at the fastest pace in 10 months. However, manufacturers' optimism dipped and inflationary pressures pushed up input costs and output prices. The service sector also expanded, but at a slower pace. The au Jibun Bank flash services PMI dropped to 53.6 in May. Despite this, strong business confidence led to increased employment levels. The au Jibun Bank flash Japan composite PMI, which combines both manufacturing and service sector activity, slightly increased to 52.4 in May.
CYBERSECURITY
Optus faces legal action over cyber-attack
Australia's media regulator is taking legal action against Optus over a cyber-attack that hit the telecom carrier in September 2022. The attack exposed customers' personal information, including home addresses, passport and phone numbers. The Australian Communications and Media Authority is alleging that Optus Mobile failed to protect the confidentiality of personally identifiable information.
INTERNATIONAL
UK election winner faces stagnant economy and high debt
The winner of Britain's election on July 4 will have to tackle an economy that looks stuck in a rut of slow growth with high levels of debt limiting the incoming administration's ability to spark a significant recovery, Reuters reports.  Britain's economic performance since the pandemic has been the weakest among the Group of Seven economies with the exception of Germany. Middle-income workers in Britain are 20% poorer than their peers in Germany and 9% poorer than those in France, and the UK's next government will have to find a way to tackle deep problems in its labour market. "The most sure-fire way of boosting UK productivity and potential growth would be a major improvement in the UK-EU trading relationship," says Rob Wood, chief UK economist at consultancy Pantheon Macroeconomics.
South Africa introduces nomad visa for remote workers
South Africa's Department of Home Affairs has introduced changes to its work-permit regime, allowing for the creation of a nomad visa for remote workers. The changes, which were previously withdrawn, have now become law. The new visa will enable people employed by companies outside of South Africa to live in the country as long as they earn at least 1 million rand annually. The move comes in response to criticism from foreign-owned employers who have struggled to bring technicians and executives into the country due to the lengthy work permit application process. 
OTHER
Consumer confidence in South Korea drops as interest rates stay elevated
South Korea's consumers have turned pessimistic for the first time this year, with the Composite Consumer Sentiment Index falling below the threshold of 100, according to the Bank of Korea. The drop in consumer confidence comes as interest rates stay elevated, posing a challenge to the central bank. The outlook for rates has risen, indicating that more people believe borrowing costs are likely to rise than fall. Additionally, a gauge showing expected inflation over the next year has also increased.
 


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