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APAC Edition
31st May 2024
 
THE HOT STORY
Indian engineering graduates struggle to find jobs
Thousands of Indian engineering graduates from the prestigious Indian Institutes of Technology (IITs) are struggling to find jobs, raising concerns about oversupply, inadequate skills, and high salary expectations, Bloomberg reports. Some observers say the job crunch is a short-term correction as tech companies seek to right-size after a pandemic-fuelled hiring frenzy. The 23 IITs produce about 25,000 engineers every year, or about 2% of India's national total of roughly 1.5m engineers. While the IIT job crisis is a cause for concern, experts believe that the long-term outlook for the software industry is positive, with opportunities in global capability centres and manufacturing.
TRAINING & DEVELOPMENT
Japan's technical intern trainee program fails to pass on skills, OECD says
The OECD has criticised Japan's technical intern trainee program, saying that it has been used to meet labour demand rather than impart skills to trainees. The organization has called on Japan to address the issue of trainees incurring debt by coordinating the responsibilities of brokers and supervising companies. Many trainees under the program accumulate significant debts to pay fees and deposits to organisations in their home countries, leading to cases of trainees disappearing or working illegally. However, the OECD commended Japan's efforts to allow foreign workers with specified skills to stay in the country indefinitely, as well as the high number of international students who choose to remain in Japan after completing their studies.
HIRING
JPMorgan chase to increase headcount in India
JPMorgan Chase plans to grow its headcount in India by 5% to 7% annually over the next few years. The New York-based bank already employs about 55,000 people in India. Deepak Mangla, CEO of JPMorgan's corporate centres in India and the Philippines, stated that there is healthy competition for senior levels and deep skills. JPMorgan plans to build two new offices in Bengaluru and Mumbai, as well as refurbish its offices in Noida and Pune.
DIVERSITY, EQUITY & INCLUSION
Eneos aims to improve diversity with more female directors
Japan's top oil refiner, Eneos, plans to improve company diversity in the wake of sexual harassment cases by adding more female directors and external board members. The company has nominated four women and seven outside directors to be elected by shareholders. “There will be no future for the company without diversity,” Eneos CEO Tomohide Miyata said in an interview. “It's incredibly worrying to have a monoculture structure.” Currently, Japan's largest companies have an average of 21% female representation in their boardrooms. The push for improved governance comes after the dismissal of three executives. Japan's government and stock exchange have urged local companies to diversify their boards, suggesting that at least one third should be external.
LEGAL
Former Nissan COO was paid $3.7m to leave amid misconduct allegations
Former Nissan Chief Operating Officer Ashwani Gupta was paid  ¥582m ($3.7m) to leave the company last year following allegations of misconduct, including sexual harassment. Gupta, who played a key role in steering Nissan back to profitability after the arrest of former Chairman Carlos Ghosn, left the company in June 2023. The compensation figure was disclosed in a notice of the annual shareholders' meeting. Gupta joined Nissan in 2019 and is currently the CEO of Adani Ports and Special Economic Zone Ltd.
Alleged cybercrime mastermind is arrested in Singapore
Alleged cybercrime mastermind Wang YunHe has been arrested in Singapore, where he enjoyed a lavish lifestyle while amassing riches through cybercriminal activities. Wang is accused of running a cybercrime network and setting up companies in Singapore with local citizens as directors. Singapore has become a premier wealth management centre but has also faced a string of scandals in recent years. Wang, who is also a citizen of St. Kitts and Nevis, faces charges of wire fraud and money laundering, with a maximum penalty of 65 years in prison. Wang operated under multiple aliases and held bank accounts in Singapore, Malaysia, Thailand, and the US.
WORKFORCE
PALM scheme minimum work hours change 'more workable' for growers
Farmers will no longer have to guarantee Pacific workers a minimum of 30 hours employment per week, after the federal government in Australia announced it would scrap the requirement. Instead, growers will be able to offer 120 hours of work averaged over 4 weeks to workers employed under the Pacific Australia Labour Mobility (PALM) scheme. The changes, which will come into effect on July 1, were welcomed by industry groups as they say they make the PALM scheme more workable for growers. Queensland Fruit and Vegetable Growers Association chief executive Rachel Chambers said: "Four weeks is better than one week."
HEALTH & WELLBEING
Effective vaccines will be key to protecting against bird flu, study finds
Humanity's best protection against bird flu will be the development of effective vaccines, according to a new study. The H5N1 avian flu has been spreading through cattle and poultry in the United States, raising concerns about a potential pandemic. Different vaccine types, including inactivated vaccines, live attenuated flu vaccines, and mRNA vaccines, all show promise in protecting animals and humans from avian flu. "Exploring and employing a diverse range of vaccine platforms" will be crucial for enhancing pandemic preparedness and mitigating the threat of avian influenza viruses, according to the researchers, who published their findings   in the journal Human Vaccines & Immunotherapeutics. An experimental mRNA vaccine against H5N1 avian flu has shown effectiveness in preventing serious illness and death in lab animals. The vaccine produced high levels of antibodies and cleared the virus quicker in vaccinated animals.
TAX
Wealthy Koreans flee their country as taxes rise
A growing number of wealthy Koreans are expected to permanently leave the country due to the heavy tax burden on their wealth, caused by rising asset prices and an aging population. According to a study by the Hana Institute of Finance, Korea ranks seventh in the world for the emigration of wealthy individuals. In 2023, 800 high-net-worth Koreans with assets valued at $1m or more moved abroad, double the number of the previous year. China had the highest number of millionaire emigrants, but Korea ranked second when considering the rate in proportion to the total population. Experts predict that more rich Koreans will leave as their assets increase in value and they face heavier taxation. Punitive taxes, such as the comprehensive real estate holding tax, are imposed on homeowners with properties valued over $878,900. The burden of inheritance tax, which is 50% in Korea compared to Japan's 55% and the OECD average of 25%, is also driving wealthy Koreans to seek countries with lower taxes on inherited wealth.
INTERNATIONAL
Global unemployment rate expected to fall to 4.9% in 2024, ILO says
The International Labour Organization (ILO) predicts that the global unemployment rate will decrease slightly to 4.9% in 2024, down from 5.0% in 2023. The ILO attributes the revision to lower-than-expected unemployment rates in China, India, and high-income countries. The report also highlights that global economic growth has been stronger than anticipated, particularly in the United States. However, the ILO cautions that the medium-term outlook remains uncertain due to expected monetary and fiscal policy adjustments. The ILO's forecast aligns with the International Monetary Fund's revised global growth forecast of 3.2% for 2024. The stabilisation of the macroeconomic environment is expected to contribute to a relatively stable labour market outlook. The ILO's findings provide hope for job seekers worldwide, as the global unemployment rate is projected to continue declining in the coming years.
Starbucks baristas complain of understaffing and longer wait times
Starbucks baristas say branches are understaffed, resulting in longer wait times, unfinished orders, and lost sales. The company's algorithm for allocating store labour is being blamed for not adequately accounting for special customer requests and corporate promotions. As a result, workers are struggling to handle multiple types of orders, leading to increased wait times. Starbucks disputes claims of understaffing but acknowledges the impact of longer wait times on sales. The company has made efforts to address the issue, including upgrading its labour algorithm and implementing new measures to reduce wait times. However, concerns remain as the chain's focus on speed clashes with customer service. Starbucks' CEO, Laxman Narasimhan, has emphasized efficiency while asking baristas to engage with customers, creating competing demands. The company is now experimenting with new staffing positions and changes in drink assembly to alleviate issues.
Russia proposes tax rate increase for high earners as war costs mount
Russia's Finance Ministry is proposing an increase in tax rates for individuals earning more than 2.4 million roubles ($27,100) annually as the country's invasion of Ukraine puts pressure on government finances. The proposed tax system alterations include a 15% tax rate for incomes ranging from 2.4 million to 5 million roubles, 18% for income between 5 and 20 million roubles, 20% for income between 20 and 50 million roubles, and 22% for income exceeding 50 million roubles. Finance Minister Anton Siluanov stated that the tax changes will affect only 3.2% of the workforce, or 2 million people, with annual income exceeding 2.4 million roubles. The increase will apply only to the portion of income exceeding 2.4 million roubles, while the rate below that sum will remain at 13%. Siluanov also mentioned that about half of families with two or more children will benefit from a rebate. The proposed tax rate increase aligns with President Vladimir Putin's call to increase tax rates for higher incomes and provide rebates to certain families and business people investing in business development.
U.K. llaw firm warns partners of negative performance reviews for not being in the office
Partners at U.K. law firm Addleshaw Goddard have been warned that not spending at least three days a week in the office may result in negative performance reviews. The firm is the first in the City of London to implement such a policy. Andrew Johnston, the firm's managing partner, stated that partnership performance reviews were being linked to office attendance because "nothing can replace the benefits to client service and firm culture that come from being physically present together." Johnston said that there were "benefits from having some flexibility in our working week" and that "hybrid working patterns are undoubtedly evolving." However, he stated that "spending time together can give us a real competitive advantage."
 


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