Big Cities High Rent Prices. First Ep.

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From this week we will be comparing life in 6 major cities around the world: Shanghai, Chengdu, Singapore, London, Tokyo, New York. This week we will look at rent prices.

Shanghai – real estate is one of the costly things. In recent two – three years people with middle income must contribute one third of their income to rent.Most international and big local companies are in the city centres or the financial centres of Shanghai, like Jingan Temple, Lujiazui. We will treat these criteria as our golden ratio. Since Shanghai is the most International city in China and attracts big multinational companies around the world, it is naturally one of the costliest city.The average wage would be around 10,000 to 15,000 CNY (depending on the position). The central area rent depending on factors like, transportation; location; the building (with or without lift); type of the apartment; which side windows’ face; and the compound itself also plays big role on how much you will be paying. Shanghai’s rent prices always increase after the new year, yearly increase of accommodation is very normal. This year a studio apartment 30㎡ in central Jingan will cost you around 7,000 CNY, it most likely is older residential area. But further from central Shanghai cheaper the cost of rent prices.

Chengdu – it is the capital city of Sichuan province also known as city of pandas. It is the new tier 1 city in China. Chengdu is considered a “Beta + (global second-tier)” city classification (together with Barcelona and Washington, D.C.) according to the Globalization and World Cities Research Network. In 2021, Chengdu ranked 35th in the Global Financial Centres Index. In Chengdu mid-high salary approx. 7,000 CNY to 7,500 CNY. The central area of Chengdu includes: Jinjiang district; Qing Yang district; Jin Niu district; Wuhou district. To rent around Jinjiang, 40㎡ studio apartment will be  2,500 CNY.

Singapore – it is without a doubt one of the main financially developed cities in Asia, which means it is also one of the cities that makes to the list of costliest cities in the world. Average salary in Singapore is between 3,500 SGD and 4,100 SGD. Above average salary is around 4,500 to 8,000 SGD.The city’s business centre is Marina Bay, Chinatown, Singapore River areas and city centres are Orchard Road, Tanjong, Holland Road, Tanglin. In Orchard, River Valley rent of decent 33㎡ studio apartment will cost you 3,000 SGD.

London – by the global metrics there are only 2 cities considered Alpha ++ which are London and New York, for these are “most integrated with global economy”. A lot of professionals do their best to be working in cities like London and New York. In London the average salary is around 40,000 GBP per year before tax, which will be 2,570 GBP per month after tax.  Residential central areas are Richmond, Noting hill, Kensington And Chelsea. Studio apartments around these areas will cost you from 950 to 1,500 GBP. Younger people do not rent studio apartments but will rent in the central area shared apartments which is 450 GBP up to 800 GBP.

Tokyo – another city that attracts a lot of people around the world with its culture, fast-growing technology and economy. This year the average monthly income in Tokyo is around 350,000 to 410,000 JPY depending on a lot of factors from the field of the company to its size etc. The central Tokyo: Ebisu, Shinjuku, Azabu are some of the central and more residential areas. And if we look for business centre in Tokyo, they are Nihonbashi, Roppongi, Shibuya etc., finding a studio apartment to rent in Tokyo is pretty easy. The studio apartment in Tokyo Shibuya Ku – Ebisu or Hiroo area, 35 or 40㎡ the cost is around 130,000 to 180,000 JPY depending on the building’s location and condition.

New York – to pursue any professional’s dreams, it has ultimate opportunities for everyone, and it is one the most diverse city in the world. The income in New York is from 5,300 to 6,500 USD, there isn’t an average we can point at, but if we generalise it is 5,500 USD. Upper West and Upper East side makes the New York’s central area, in Manhattan. City’s business centre also in Manhattan which is why that area is the busiest and the costliest. Living in a studio apartment in Manhattan River East for example is going to cost around 3,000 – 3,500 USD for 50㎡ in Wall Street.

Conclusion, In the end of the day if your income is in range of average it is not the perfect fit to be renting a studio apartment in big city center, as the ones mentioned above. Most young people will rent downtown rooms in a shared apartment or give up the benefits of living in the center for living comfortably alone without any conditions and terms.

Average income and prices for studio apartment

Income information by: Statista.com, 2020 report
Rent information by: China: Ziroom/ Singapore: propertyguru.com.sg/ London: rightmove.co.uk/ Tokyo: realestate.co.jp/ New York: apartmentlist.com

China and Southeast Asia: The World In Recession

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Let’s talk about economics, to be more precise about recession. There are so many debates between economists:  what causes, how to prevent or recover from recession, but everyone agrees on that it is a cycle of healthy reaction of economic growth.

Recession:  “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales”. It also has different informal “shapes” V U W L Swoosh, each to characterise recessions and their recoveries.

But what does recession mean to us, on our day-to-day life?

Well, economic recession from previous experiences we can say that it affects employment the most, and then things like spending habits, manufacturing, and sales. It is most likely that a lot of people will lose their jobs and for some time won’t be able to find a new position, that is the most devastating effect. But again, it all depends on what kind of recession it is. Since 1929 “The Great Depression” which started with recession, since then there were dozens of economic recessions. The one, we must mention is 2007 – 2009 “Great Recession”, many believe it was due US “Subprime mortgage crisis” in 2005 and many other factors. This economic downfall felt differently worldwide while in developed countries particularly in North America, South America, and Europe, fell into a severe, sustained recession, many more recently developed economies suffered far less impact, particularly China, India and Indonesia, whose economies grew substantially during this period. Similarly, Oceania suffered minimal impact, in part due to its proximity to Asian markets. After 2008s recession another point is worth mentioning is peak of global growth in 2017.

The most recent recession, which is the result of pandemic and lockdowns around the world, governments demanding on closing/work from home/study online, and travel restrictions. But there is another reason which started in 2019 with economic slowdown, it might be from tension around the globe, like oil issues between Russia and Saudi Arabia, China US trade war, and of course Brexit.

  Covid – 19 pandemic recession, the effects in China and rest of Asia?

First wave of recession was end of February, global stock market noticed the worst drop since 2008. In China particularly outbreaks lead to lockdowns of cities businesses etc. which can be seen in declines in consumption and supply chain disruptions. Since the outbreak, the average two-year growth rate of China’s GDP in 2020 and 2021 is 5.1%, and the two-year average growth rates in each quarter are 5.0%, 5.5%, 4.9% and 5.2% respectively. In general, in the past two years, China’s economic slowdown has been mainly dragged down by final consumption expenditures, while external demand has played a positive role. The second largest economy in the world was the first hit by the pandemic, and many predicted it will weaken the half century striking growth of Chinese economy. But predictions were wrong, in first quarter China did see some decline, but is picked up speed in the fourth quarter, with growth, beating expectations. It was V shaped recession which started in the beginning of 2020, V shaped meaning it suffered a sharp but brief period of economic decline with a clearly defined trough, followed by a strong recovery.

 How other parts of Asia had reacted to the Covid-19 recession, and its consequences? (Singapore, Malaysia, Philippines, Thailand, Hong Kong)

Singapore – struggled the worst recession since its independence（1965）. While the whole world had their own issues in 2020, Singapore had to deal with: high demand and supply shortages, travel restrictions and implementation of Circuit Breaker from April to June of 2020. By the end of the year some sectors of economy recovered to pre pandemic levels or came close, but areas like travel and air passengers were still significantly low compared to 2019. In 2021 Singapore’s overall GDP overpassed the full-year growth to 7.2 per cent, on the higher side of the official full-year growth forecast of “around 7 per cent”. Locals are still under some restrictions, for example, last year November Multi – Ministry Taskforce have announced that people can have a gathering of 5, previously 2.

Malaysia – due to economic restrictions and lower global demand, the pandemic wave late in 2020 helped drive the economy to its worst annual showing since the Asian financial crisis (1997). The last seen declined of Malaysia’s economic was in 2009 (-1.5%), and the economy downturn of 5.6 per cent (2020) was the lowest after 1998 (-7.4%).  2022 Bank Negara Malaysia (BNM) on Friday (Feb 4) reiterated that the Malaysian economy will expand between 5.5% and 6.5% this year, underpinned by continued expansion in global demand and higher private-sector expenditure, said governor Tan Sri Nor Shamsiah Mohd Yunus.

Philippines – in 2021 struggled its fifth consecutive quarter, The latest GDP statistics for the first quarter of 2021 showed that the Philippines economy contracted by 4.2% year-on-year, the fifth consecutive quarter of recession. This follows a severe contraction in GDP in the 2020 calendar year, with the Philippines economy having contracted by 9.6% year-on-year. In 2021 Philippines expecting GDP growth to be in range of 5% to 6%, the full year growth settled at 5.6. This year the official forecast for 2022 GDP was pegged at 7-9% with growth expected to get a boost from national elections scheduled in May.

Thailand – Covid was especially tough on Thailand. Thailand’s GDP fell by 6.1 percent in 2020, the largest contraction since the Asian financial crisis. The tourism sector, which accounts for about a fifth of GDP and 20 percent of employment, has been especially affected by the cessation of tourist travel. It hit different on each socio-economic group.  In January this year, Thailand introduced new regulations affecting tourists and enterprises in the country: “including 26 provinces with “blue zone” pilot tourism destinations. And other areas, such as “orange area”, etc.”

Hong Kong – the recession started around 2019, Hong Kong’s Gross Domestic Product in 2019 contracted by 1.2% on-year, the first annual decline since 2009. In 2020 as in other countries around the world local businesses struggled the most from the new restrictions, and fear of the pandemic. But for the first half of 2021, economy grew by 7.8% over a year earlier. By the end of 2021 the economic growth was 6.4% which ended the recession. In 2022 Hong Kong expecting full recovery and growth of exported goods and local consumption level, trade reliant fields will also see benefits from China’s fast recovery from pandemic crisis.  Some of the fields still will have struggles, like international travel (restrictions will continue to weigh on tourism) and related retail and services sectors.

Why China’s Chinese New Year Holiday May Not Actually Be 7 Days

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This year’s Chinese New Year/Lunar New Year will be coming early, with Chinese New Year Eve falling on the 31st. It is a time for reunion, for festivities and joy as people welcome spring, which is why it is also known as the Spring Festival. The Spring Festival technically lasts for 15 days, but for many people, it simply isn’t realistic to take this many days off. For some countries like Singapore, the Chinese New Year holiday lasts for two days, covering only the first and second day. For China, where most people celebrate Chinese New Year and where Chinese New Year is regarded as one of the most major holidays for the whole country, they may take up to 7 days off… or do they? 

Officially, Chinese New Year holidays are 3 days in China, covering the day before, and the first, and the second day. However, arrangements for people to enjoy 7 consecutive days are made via the shifting of work days instead. For instance, as this year’s Chinese New Year holiday falls from 31st January to 2nd February, Monday to Wednesday. Employees will have to work on 29th and 30th January to make up for the days taken up by the 7 days, meaning that they will be working for that weekend. In addition, leaves are also added from Wednesday to Friday, thus allowing them to enjoy the Chinese New Year holiday for 7 days straight (the weekend should be a rest day by default). In other words, part of the 7 days holiday is actually taken from working extra days prior or after, depending on the holiday. 


The same goes for other long holidays in China too, such as Labour Day and National Day Golden Week, where additional work days are added before or after the holidays in order to allow a week of consecutive holidays. The Labour Day holidays will be taking place from April 30th (Saturday) to May 4th (Wednesday), with additional work days added to April 24th (Sunday) and May 7th (Saturday). For National Day Golden Week, it lasts from October 1st (Saturday) to October 7th (Friday). Subsequently, October 8th and 9th (Saturday and Sunday) will become working days instead. 

 
What does this mean for the Chinese people? For some, it means strategically taking leaves in order to maximise the length of the break. The phenomenon of “Chunyun”, or “the Spring Festival Travel Rush” marks the travel of millions and millions of people across China, as workers working in faraway cities and students studying outside of their hometown all flock home in order to make it in time for reunion dinner. The Chinese transportation system faces the greatest stress test during these times. However, this means that their holidays would be further taken up by time taken on the road. Hence, some advice that one should also spend their leaves on the 29th and 30th of January, so as to get a head start for those travelling home, or at least, so they would be able to make it in time for the reunion dinner taking place on the 31st, aka Chinese New Year Eve. Alternatively, one could also apply for leave for the 7th of February, thus allowing one to enjoy 8 days of break and the chance to avoid the post-Chinese New Year travelling crowd. 

 
For many, the travelling time is a large part of the reason why the suggestion of extending the full break to 10 days has been repeatedly brought up in government over and over again. Some would also like more time to spend with their family in general, and 10 days would allow them to truly soak up each other’s company before heading back to work/school. Still, there seems to be no sign of the break being extended any time soon. 

Overall, there is no such thing as a free lunch. Long breaks are the results of additional working days strategically placed on the weekends. However, with some maneuvering, it is still possible to maximise the break, and take a much-needed rest. 

References: 

https://baijiahao.baidu.com/s?id=1710584766106120344

https://jingyan.baidu.com/article/08b6a591aaa79655a909226b.html

Employers: Approaching Hybrid Work in the New Year

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It’s the beginning of a new year, and this calls for new changes in Singapore’s employment scene. Particularly, the new year calls for a new way of work, as work from home in Singapore is no longer the default from 1 Jan 2022. Singaporeans, that means to say that it’s time to pack our bags and squeeze with the morning commute once more.  

As workers are shuffling back to offices and getting used to a forgotten routine, symptoms of burnout and exhaustion may surface. This is because the introduction of remote work has benefitted many in terms of higher flexibility and autonomy. Forcing a sudden change back to the pre-pandemic office life may require some time for readjustment. Thus, it remains imperative that employers tackle these challenges addressing employees’ mental wellbeing and take measures to create a supportive work environment for their employees.  

While most of us can agree that working in offices can ensure a certain level of productivity, employers should also understand that not all employees are ready and excited to be back in offices. Not just adding on to commute hours, meeting colleagues in person and navigating social anxiety could be a challenge for some. After all, there exist numerous personal struggles that every individual will face, and it is without a doubt that neglecting mental well-being is detrimental to productivity. 

Keeping an open channel and being equipped in holding the right conversations 

Hence, on the topic of keeping a supportive work environment for employees, one way that employers can approach hybrid work in the new year is to keep an open channel of communication. Ideally, employers should spend time to check in on employees and meet each employee where they are. However, a more macro level initiative could be investing in mental wellness initiatives to highlight the importance during these uncertain times. 

In Singapore, Senior Minister of State for Health – Janil Puthucheary – mentioned that the Health Promotion Board (HPB) has seen a rising demand for training programmes that surround the topic of equipping employers and human resource managers with skills and knowledge on how to identify symptoms of common mental health conditions among their work peers and employees. This can be a good place to begin, as navigating through mental health conversations can be tricky. With more than 7 out of 10 Singaporeans indicating that they are facing more struggles with their mental health in 2021 compared to the start of the pandemic, it is high time that employers be equipped with the necessary skills to hold the right conversations with struggling employees.  

Providing online resources 

Often, struggling individuals do not always find comfort in reaching out and speaking out about their private issues. Therefore, employers should also consider providing online resources where employees can tap on to get appropriate help. Some popular options adopted by Singaporean companies today are wellness webinars, paid counselling sessions with partner mental health organizations, chatbots, and even virtual meditation sessions that help employees relax. Such dedicated platforms can signify to employees that their mental well-being is being cared for, which is important in their transition back to the office.   

Structured team events 

The lack of face-to-face interaction coupled with Zoom fatigue can cause a bumpy return to pre-pandemic office life. Employers are also encouraged to facilitate this by holding structured activities that focus on letting employees catch up over a non-work-related activity. This can be as simple as a mandatory team lunch, or even just a meeting that let employees interact with one another to ease back into socializing beyond the screens. After all, reinforcing friendship as the working culture is proven by research to create higher engagement that will result in better work productivity.  

The bottom line is that creating a workplace culture of acceptance, respect and empathy is extremely crucial. Mental wellness has never been more relevant today, and progress in recognizing the importance of workplace well-being must be made. Employers hold great responsibility in nurturing the relationships with and amongst their employees, and such investments will definitely help organizations come out of this pandemic as a stronger employer brand and a loyal talent base. 

References: 

https://www.straitstimes.com/singapore/health/trust-is-key-to-getting-employees-to-talk-about-mental-health-concerns

https://www.straitstimes.com/singapore/health/singapore-companies-opening-up-to-giving-staff-more-mental-well-being-support

https://www.straitstimes.com/singapore/health/growing-focus-on-mental-health-at-workplace-as-covid-19-pandemic-takes-toll

https://www.forbes.com/sites/forbeshumanresourcescouncil/2021/06/29/five-ways-to-help-employees-manage-return-to-office-anxiety/?sh=7be96ce17c4e

Work and Digital Privacy

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The digital revolution is also known as the fourth industrial revolution, placing its impact on society on the same level as the industrial revolutions that precede it. For all the talk about technology and how it’s revolutionising the way we are living, the changes also come down to people too — “our sense of privacy, our notions of ownership, our consumption patterns, the time we devote to work and leisure, and how we develop our careers, cultivate our skills, meet people, and nurture relationships”, according to Klaus Schwab, the chairman of the World Economic Forum. Yet, in the context of work and technology and the on-going pandemic, data security at work remains an under-discussed topic, especially now that a lot of us are still working remotely. 

When it comes to caring for the employee and the company, data security should not be neglected, and is in fact a part of the employee. Opening a phishing email may result in vulnerabilities in the company’s network, depending on the work the employee is doing. With a good portion of work being moved online, attacks on cloud services that facilitate such online work present a very real threat towards the company’s business.  

Hence, within each company, there is a need to keep employees educated on the importance of data security, even more so if the company is a business that also handles confidential data from clients. Phishing emails can be sent out by the IT department as an exercise to test the alertness of the employee, and only with a successful reporting of the phishing email will the employee then pass the test. Communication should also be kept on secure, encrypted platforms, and confidential information like passwords and usernames should not be displayed in the public eye, like post-its stuck onto the screen monitor. One should also be careful about plugging thumbdrives/USB drives of unknown origins into the computer device, for it is possible for an attacker to launch their attack through such a method. Update firewalls and anti-virus programs as needed. 

The employee is also entitled to their privacy. In countries like Singapore, sensitive, personal information such as identification numbers are not allowed to be kept or passed around publicly even within the business context, and an employee is entitled to know what would be done with the information collected and where it would be headed to. 

Overall, with these technological changes happening to society, there is a need to acknowledge the importance of data security and how we treat both our personal and business information as well. This article is also written with the help from Anastasia Tohmé and Martin Worner’s book, Work Remotely, and is a must-read especially in the age of remote working. 

Remote Working & Tools

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The year draws to a close again; at this point, we have come so far in this pandemic, with various rules and regulations put in place and then subsequently lifted. More importantly, the way we work has been revolutionised, with drastic changes made to past ways of working. As offices shift back and forth between hybrid-working and work from home, the importance of the tools we use are incredibly understated, which is precisely what we are going to discuss in this article today. 

Fast Internet 

Everyone hates it when their YouTube video takes a little too long to buffer. Imagine how much worse it would be when a video call constantly gets interrupted, with the screen freezing or the voice breaking up, lagging in a way reminiscent of the dreadful moans of the damned. Or, to be the poor speaker rambling on for 5 minutes straight only to realise that nobody has caught what you just said because only parts of your speech made it through. Slow internet is frustrating for everyone in the call, and only serves to reduce work productivity.  

There are various solutions for ensuring fast internet, such as finding a decent spot in the house with good access to the router, or looking into wifi extenders (if you live in a relatively big house). It might even be time to think wired, by utilising LAN cables or a desktop computer with a wired connection instead of challenging fate with fluctuating strengths of wifi signals. 

Quality Set-up

We are talking about a decent camera, microphone and headphones. Perhaps even a laptop stand for those of us still working on our laptop, elevating the screen to face level such that we can have better posture. All these would serve to improve QOL in terms of “workspace”, adding an even more “legit” feel to whatever we are doing at work. 

Video-calling Subscriptions 

If for some reason your team is still working via “free” video-call services, then this article is a sign for you to quit cheaping out, and just buy that subscription already. Services like Skype, Hangouts and Zoom, while technically “free”, add several restrictions to the type of meetings that can be held. It is false economy to use these services; reducing costs should not come at the expense of severely limiting work efficiency and reducing the quality of calls needed for work to function. The paid version of the services is paid for a good reason, as they have the quality needed for business calls and are a prerequisite for connecting remote teams. 

Messaging Apps 

It is essential for asynchronous communication. It is also all too easy for groups on messaging apps to go out of hand, or have many disorganised channels of communication. Having someone specifically in charge of managing and updating the groups would smoothen communications out much better. Differences in communication styles also means that it is important to establish clear boundaries and guidelines in online workplace conversations. Ultimately, this is still a professional space, and having some form of moderation will prove to be beneficial for everyone. 

Cloud Storage 

Having documents stored in a central online space, accessible to everyone, is much more efficient than constantly emailing each other with file attachments, especially when multiple parties need to access the same files. Programs like Sharepoint, Google Drive and many others are essential for remote workers. 

Remote Whiteboards 

Cloud-based whiteboards can cater to the needs of remote teams or enterprise teams working across several locations and time zones, allowing collaborations across space and time via digital tools.  

Expenses Management System 

There needs to be a centralised and automated place to process invoices, and also approve and manage spending of remote teams.  
 

Overall, it is important to consider the tools we are using for remote working, that is certain. I would also like to attribute parts of the article to Anastasia Tohmé and Martin Worner, for without their book Work Remotely, this article could not have been written. Beyond the points brought up here, Work Remotely provided insights into what is needed for making the most out of working remotely, including advice such as managing communication and more. This is a must-read, especially during this precarious period. 

Why global businesses should be expanding into the UK

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A thriving tech sector, growing economy, and talented workforce are just a few of the reasons why the UK is a lucrative place to do business. The UK’s 2018/19 tax year saw 672, 890 startups founded in the UK, and with the nation’s ongoing growth, it really is no surprise.  

London, the UK’s diverse capital city, houses some of the world’s most significant financial establishments, and is often considered the financial hub of the world. Alongside this, the UK is the birthplace of the English language, the second most widely spoken language globally, generally considered as the primary ‘world language’ and used by businesses and nations all across the globe. 

In this article, we’re going to look at some of the key reasons why growing global businesses are continuing to look at the UK as one of their destinations of choice for global expansion, and why you should too. 

Access a large, educated talent pool 

For a small island, the UK has an astounding population of over 66 million people. With individuals spread across Engand and the devolved states of Wales, Scotland and Northern Ireland, the UK’s population is diverse and unique, and every city in the country offers something different. 

The UK is home to some of the world’s best universities including Oxford and Cambridge. As a result of this, it draws talented and educated individuals from all across the world, with these individuals ultimately becoming a part of the nation’s educated workforce. 

Ranked 5th in the world for access to growth opportunities, employers in the UK can be sure to attract the best applicants when building their teams. Global businesses expanding into the UK gain the opportunity to recruit some of the best professionals available, accelerating their business forward in the process. 

Ease of doing business 

The UK places eighth in the World Bank’s ‘Ease of Doing Business’ rankings, and with some of the lowest corporation tax rates in the G7 and plenty of government support for innovation, it’s no wonder. Entrepreneurs in the UK can often find the venture capital funding that they need when starting a company or opening an office in the UK, and the nation regularly achieves record levels of venture capital funding each year. 

To date, the United Kingdom has created 72 unicorn startups, making up around 34% of the total in Europe and Israel. 

The UK and its Government are highly tech-focused, and continuously introducing initiatives to support the tech sector’s growth. Some of the UK’s initiatives include fast-track visas to address skills gaps, and a £375m fund to invest into fast-growing UK tech start-ups. 

Flexible labour laws and trade 

The UK’s overall labour cost is lower than other similar European economies such as France, Ireland and Germany. Following Brexit, the UK’s referendum to depart from the European Union in 2016, the UK is able to move away from European standards, and implement its own more flexible labour laws to the benefit of UK-based businesses. 

Although facing some turbulence in its early implementation, the outcome of Brexit will also introduce a range of new trade agreements and opportunities for UK-based businesses. One such example is CANZUK, an ongoing trade deal between the Commonwealth nations of the UK, New Zealand, Canada, and Australia, set to introduce a wealth of new opportunities for all four nations.

Expanding into the UK 

Our UK partners, Procorre Global, are on hand to assist foreign businesses from every corner of the world to expand into the United Kingdom. Procorre Global supports businesses in every stage of their global expansion journey and ensures full support throughout. 

Reach out today to learn more. 

Changes to Singapore’s Employment Laws in Summary: 2021

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It’s that time of the year again, a time for celebration and joy. Even for those non-religious, the wave of cheers with Christmas and the upcoming New Years is perhaps one of the bright spots in this on-going pandemic. And at the end of 2021, it is also important to note the general changes to employment that have occurred throughout 2021, so that we enter the next year well-prepared. 

Taxes 

The Singapore government had announced a series of extensions for various tax schemes in Singapore, in lieu of the on-going pandemic and to provide better support for businesses. Schemes such as the option to accelerate the write-off of the cost of acquiring plant and machinery (“P&M”), the carry-back relief scheme (with 2021 included in the year of assessment too), the Not-for-Profit Organisation (“NPO”) tax incentive (extended until December 2027) have all been extended, with many other changes too. Businesses should visit the IRAS website to find out more. 

Retrenchment Policies 

Coming into effect November 2021 onwards, employers in firms with more than 10 employees are required to notify the Ministry of Manpower (MoM) if any employee is retrenched. Previously, employers were only required to do so if five or more employees are entrenched within a six-month period (a retrenchment exercise). 

The employer would be given five days to notify MoM via an online platform from the day in which the notice for retrenchment is given to the employee. Employers are to pay all salaries, including unused annual leave, notice pay, etc., to their employees on their last day of work.  

This is part of COVID-19 support measures pushed out by the government, such that the government and relevant offices would be able to step in to assist the affected employee to provide employment and job search support.  

Retirement & Re-employment Age Adjustments  

The retirement and re-employment age for Singapore workers will be progressively raised to 65 and 70 respectively, up from 62 and 67 currently. This process will start from 1st July 2022, with the retirement age being raised to 63 and the re-employment age to 68. In accordance, CPF contribution rate for senior workers aged above 55 to 70 years old will also be increased by 2% starting from 1st January 2022. 

Work Permit Renewal Limits for Foreign Worker & Rebates 

For those working in the construction, marine shipyard and process (CMP) sectors will have limits placed on the renewal of their permits temporarily lifted in order to ease the labour crunch this sector is currently going through. CMP workers whose work permits expire between July and December 2021 can renew their permits for up to two years, even if they do not meet the renewal criteria such as the caps on employment period or employment age. 

Levy rebates on foreign workers (250 SGD per worker) have also been extended until March in order to help labour-intensive companies, especially those of the above sector. 

Fair Employment Guidelines to be Formally Legislated 

 Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) is a three-way partnership between the Singapore government, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation to provide fair employment guidelines. Although Singapore-based companies are already required to follow Tafep guidelines, enshrining it into law would give even more protection for the workers and allow the authorities more room to intervene. 

Overall, this has been a series of changes that signals Singapore to be moving towards a more progressive direction, with greater protection and coverage for workers. However, the on-going pandemic still introduces complications such as the limit of number of people in office as well as vaccination statuses affecting employment, as these conditions constantly fluctuate in such volatile times. 

References: 

https://www.businesstimes.com.sg/government-economy/singapore-to-temporarily-relax-foreign-worker-hiring-rules-mom

https://www.mom.gov.sg/employment-practices/retrenchment/responsible-retrenchment

https://www.straitstimes.com/singapore/politics/retirement-and-re-employment-ages-will-be-raised-to-65-and-70

https://www.straitstimes.com/politics/national-day-rally-2019-retirement-age-to-go-up-to-65-older-workers-cpf-rates-to-be-raised

https://economictimes.indiatimes.com/nri/work/singapore-extends-levy-rebate-on-foreign-workers-till-march-to-help-15000-labour-intensive-companies/articleshow/88409252.cms

https://www.straitstimes.com/singapore/politics/ndr-2021-fair-employment-guidelines-to-become-law-new-tribunal-to-deal-with

Singapore: Bursting the hybrid working bubble?

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While we are getting comfortable settling into the routines of working from home, there is now news that work from home will no longer be the default from 1 Jan 2022 onwards. On December 14, The Ministry of Health made an announcement that 50% of the employees who can work from home will be allowed to return to the office from the start of January. Of course, these measures only apply to employees who are fully vaccinated or have recovered from Covid-19 recently. 

Whether this piece of news is worth to be celebrated over, it remains unclear. There are sentiments surrounding both sides of the coin; some employees are lamenting over it since work from home has granted them with great advantages, while some employers are cautiously happy about returning to that form of normality.  

After all, there are many existing limits to the whole work from home set up. Some of the struggles of navigating remote working can be very subjective as well, such as not having a conducive enough environment at home for work. Especially when meetings and discussion of confidential information surface, remote working does provide an added challenge for employees who face space constraints problems. 

With these employees, there are some consensuses around that moving back to the office can be better in terms of reduced ambiguities with in-person meetings and the authentic social interaction with colleagues as well.  

However, Singaporeans may not be entirely ready to give up the added advantages of working from home. Some of the cited advantages are lesser time wasted during commute, extra sleep, higher flexibility, and the list goes on. Especially for employees who have children at home, this remote working arrangement has seen to be more productive for some. 

An Organizational behavior expert – Associate Professor Trevor Yu – commented that it remains vital that employers and employees work out a set of flexible work arrangements that is satisfactory for all key stakeholders.  

Amongst the factors of consideration, it is necessary to understand the best conditions the employees work under. Adapting back into the “normal” routine of going back to offices can be a sudden change for many, and while the benefits of returning back are recognized, employees’ safety and headspace should take precedence. After all, going back to offices does not mean returning to pre-Covid arrangements; mandatory mask-wearing policies, regular temperature logging and safe distancing measures will still be in place. All these are added factors that can be uncomfortable for employees, which may impact productivity in the end. 

Ultimately, as Singapore progresses towards recovery, Singaporeans should still prepare to ease back into returning to offices. Employers, however, can better facilitate this shift and adaptation by gathering employees’ sentiments and understanding any legitimate concerns that some employees may have and actively provide a solution to help those employees transition back to normality. 

References: 

https://www.channelnewsasia.com/singapore/wfh-return-office-default-working-home-companies-2383286

https://www.channelnewsasia.com/singapore/singapore-working-from-home-office-covid-19-604441

https://www.channelnewsasia.com/singapore/work-home-return-office-1-jan-vds-2378516

Singapore: The Labour Market in 3Q 2021

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The good news is that there seems to be an improvement in the overall labour market in 3Q 2021 as compared to the previous quarter. However, the less positive news is that recovery remains uneven across sectors. Despite some upticks in resident employment, the total employment continues to decline. The rate of decline is nothing out of the ordinary given the ongoing border restrictions. These are insights captured from the Labour Market Report released by Singapore’s Ministry of Manpower on 15 December 2021. 

  1. Smaller declines in Total Employment 

Compared to 2Q 2021, Resident Employment increased strongly by 19,100 while Non-Resident Employment declined by 21,500. Thus, despite the overall decline in total employment, it is worth noting that this downswing is significantly smaller than the previous quarter.  

Zooming into Resident Employment, its strong growth is observed to be led by outward-oriented sectors such as: Information & Communications, Professional Services and Financial Services, as well as domestically oriented sectors of Administrative & Support Services and Health & Social Services. Once again, the uneven growth across sectors remains prevalent. Sectors like Food & Beverage Services, or tourism related sectors have not caught up yet. 

With Singapore easing back into the transition of travelling, these gradual relaxation of travel and dining restrictions will play a vital role in the improvement of employment statistics in the lagging sectors. 

  1. Unemployment rates are improving; slowly but surely 

The latest data in October 2021 shows improvements in unemployment rates generally. From August to September 2021, both Resident and Citizen unemployment rate saw a slight improvement by 0.1% point, leaving Resident and Citizen unemployment rate to be 3.5% and 3.7% respectively.   

  1. Decline in Retrenchments and rising of Job Vacancies 

According to the Labour Market Report for Q3 2021, the incidence of retrenchments also fell; from 1.3 retrenchments every 1000 employees to 1.1. Furthermore, the six month re-entry rate among retrenched residents have bounced back to the rate seen in 1Q 2021, from 64% to 66%.  

While retrenchments rate decline, the ratio of job vacancies to unemployed persons are on the rise. Up from 163 job vacancies per 100 employees in June 2021, this rate has climbed to 209 job vacancies per 100 employees. 

These are the main findings from the Labour Market Report for 3Q 2021. Singapore’s labour market is generally observed to move forward along this road of recovery as we transition into 2022. However, this uneven recovery across sectors will still be in the picture. Despite the easing of dining and travel restrictions, the economic climate remains highly uncertain especially with the Omicron variant around.  

References: 

https://www.mom.gov.sg/newsroom/press-releases/2021/1215-labour-market-report-third-quarter-2021