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24th May 2024
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THE HOT STORY
Japan passes law on flexible work for parents with young children
Japan’s parliament has passed a law that obliges employers to offer flexible working options to staff with young children to help them balance work with parenting. The revised laws, including to the child care and nursing care leave law, form part of official efforts to create a society in which workers' career development isn’t compromised because of gender or family reasons. They will be put into effect in stages starting in April next year. Employers will be required to allow workers with preschoolers aged three and older to choose from at least two working style options, such as remote work, shorter work hours or staggered work hours, and they will also have to make efforts to allow employees with children under the age of three to work from home. Staff are at the moment allowed to apply for exemption from overtime work until their children turn three. The revised laws will see the exemption be available until children start elementary school.
WORKFORCE
Indian government urged to support hiring of more salaried workers
The Indian Staffing Federation (ISF) has called on the government to take steps to support the hiring of more salaried workers. The ISF has criticised Prime Minister Narendra Modi for not addressing the issue, which has become a key topic in India's election campaign. "We pay 18% goods and services tax (GST), equivalent to flying in an airline or eating at a five-star hotel," said Lohit Bhatia, president of the ISF. "This discourages many employers from hiring contract workers through recruitment agencies as they see the steep tax as an additional burden." Last year, third-party recruitment agencies paid nearly 242 billion rupees ($2.9bn) in tax to the government. The ISF believes that lowering the GST tax rate on staffing services to 5% could lead to the formal hiring of millions of contract workers and generate higher tax receipts. The unemployment rate among young people in India's urban areas has increased, with the rate among young women reaching 22.7%. The ISF is a body of 125 recruitment agencies which provided 1.6 million outsourced workers to companies last year.
Philippines faces shortage of 190,000 healthcare workers
The Philippines is facing a shortage of 190,000 healthcare workers, according to Health Secretary Teodoro Herbosa. The country is the world's top supplier of nurses, but many leave annually for work abroad due to higher pay and better prospects. The government is considering offering benefits to retain healthcare workers, but does not plan to limit the number of workers going overseas. The current ratio of one physician for every 25,000 people is far from the ideal ratio of one for every 10,000. The government aims to produce more healthcare workers to address the gap. To help reduce the exodus, the government is allocating funds for health insurance, housing, and other benefits for healthcare workers. The government is also continuing a program that allows hospitals to hire nursing graduates who have not yet passed the board exam.
TECHNOLOGY
Workday to provide AI-powered HR solutions for Korean companies
Workday, the US-based human resources and finance management software maker, is set to provide AI-powered HR management solutions to help Korean companies streamline their operations. According to Joung Eung-sub, the country manager of Workday Korea, the company aims to lead the transformation of human resources and financial management through AI. Despite having a strong digital infrastructure, Korea still relies on traditional management methods and historical data, leading to workforce productivity issues. Workday's platform uses AI to simplify the user experience and increase employee engagement, driving improvements in productivity. Workday's customers in Korea include Korean Air, Viva Republica, Musinsa, Kolmar Holdings, and Dongwha Group.
REMUNERATION
Air India announces salary hikes and performance bonus for employees
Tata Group-owned Air India has announced annual salary hikes and introduced an annual performance bonus for pilots and employees. The salary increments will be effective from April 1, 2024, and the performance bonus payouts will be based on company and individual performance for FY 2023-24. This is the first appraisal process for Air India staff since the Tata Group took over the airline. The move is part of Air India's larger efforts to attract and retain talent and foster a performance-driven and meritocratic culture among its employees. The airline is currently undergoing a five-year transformation plan. 
LEGAL
Chinese businessman on trial for $1bn fraud scheme
A wealthy Chinese businessman who became an outspoken critic of China's Communist Party after leaving his homeland is on trial in New York for allegedly defrauding people worldwide of over $1bn. Guo Wengui, once believed to be among the richest people in China, pleaded not guilty to charges of operating four fraudulent investment schemes. The trial is expected to last seven weeks. Guo's chief of staff, Yvette Wang, has already pleaded guilty to conspiring with Guo in the fraud scheme. Prosecutors claim that hundreds of thousands of investors were convinced to invest over $1bn into entities controlled by Guo. The trial is ongoing in Manhattan federal court.
ECONOMY
Australian consumer confidence dips as inflation concerns rise
Australia's consumer confidence dipped in May as households expressed concern about persistent inflation potentially prompting the Reserve Bank to raise interest rates again. Sentiment fell 0.3% to 82.2 points, with 100 being the dividing line between pessimists and optimists, a Westpac Banking Corp. survey showed. “Renewed cost-of-living pressures and inflation concerns have more than offset what looks to have been a relatively well-received Federal Budget", said Matthew Hassan, a senior economist at Westpac. Australians have faced an income squeeze from persistently high inflation and elevated borrowing costs. As well as budget spending measures including energy rebates, households will benefit from tax cuts that are due to come into effect on July 1st.
TAX
Billionaire families worried about taxes, says new report
Billionaire families in the US and Southeast Asia are most concerned about higher taxes as the biggest risk over the next five years, according to a report by UBS Group. The survey of family offices, which manage the lives and wealth of the world's richest families, found that 73% of US and 59% of Southeast Asian respondents cited higher taxes as the top five-year risk. This concern outweighed worries about major conflicts and climate change. Despite ongoing wars in Ukraine and Gaza, only 55% of US and 52% of Southeast Asian family offices respectively expressed concern about these conflicts. The report underscores the growing apprehension among billionaire families regarding the impact of higher taxes on their wealth and financial stability.
INTERNATIONAL
Pornography and gaming blamed for surge in jobless young British men
UK Work and Pensions Secretary Mel Stride has blamed pornography and video games for a surge in worklessness among young men in Britain. The government minister said that easy access to online pornography and video games were causing a mental health crisis among young men, which was prompting many to drop out of the workforce. According to official figures from the Office for National Statistics (ONS), there were 900,000 young people aged between 16 and 24 who were not in education, employment or training (Neet) in January to March 2024. The ONS figures also revealed that young men were behind the continued rise in worklessness. Britain is facing a significant sickness crisis, with over 2.8m people of working age not in the workforce due to ill health, including mental health conditions.
Qatar woos Chinese companies as an investment gateway to Middle East and Africa
Qatar is positioning itself as an attractive investment destination and gateway to the Middle East and Africa for Chinese companies. With Western markets growing more sceptical of Chinese business presence, Qatar is said to offer an appealing alternative. The head of the Qatar Science and Technology Park predicts that Doha will be the first stop for many Chinese firms seeking to tap into these regions. Since taking over as president of the park, Jack Lau says he has seen more than 20 Chinese companies express interest in joining. Electric vehicle producer Davinci Motor, for example, has already signed a letter of intent to set up a research and development centre at the park. 
Rule changes are designed to give firms more flexibility, US regulator says
As Wall Street bosses warn employees about regulatory changes precipitating the end of remote work, the US Financial Industry Regulatory Authority (Finra) has moved to clarify the matter. “There is no rule requiring registered persons to work from an office five days a week,” said Kayte Toczylowski, head of member relations and education at Finra. Rule changes due to take effect in the coming weeks are meant to preserve workplace flexibility, Toczylowski said in response to reports that more employers are weighing full-time office mandates, with some bosses referencing Finra in conversations with staff.  “The Finra rules are actually intended to give firms more flexibility, not less, and to allow registered folks to work from their homes,” Toczylowski said in an interview on Wednesday.
OTHER
LVMH deepens partnership with Alibaba to boost presence in China
LVMH is strengthening its partnership with Alibaba to leverage the firm's cloud and artificial intelligence capabilities in order to boost its presence in China. LVMH group managing director Stephane Bianchi stated that the reinforced partnership will help accelerate its omni-channel business growth. The collaboration between LVMH, the world's largest luxury group, and the Chinese e-commerce giant began in 2019. The move comes as luxury companies aim to cater to Chinese shoppers amidst a property crisis and high youth unemployment. The partnership signifies LVMH's commitment to tap into China's luxury market and expand its reach through various shopping avenues.
 


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