Archive for ‘priority’

18/04/2020

Class of 2020: a lost generation in the post-coronavirus economy?

  • Young people starting out in the jobs market face a hit to their prospects that could endure years after the Covid-19-induced downturn has run its course
  • A generation of angry youth raises the spectre of political instability

Freelance filmmaker Anita Reza Zein had grown used to jam-packed production schedules requiring her to put in long hours and run on little sleep. Until Covid-19 struck.

Today, the talented Indonesian is suddenly free. With five projects on hold and many more potentially cancelled, she now spends her time working on a personal project, doing research for her work and occasionally going for a ride on a bicycle.

“I feel calm and patient although I’m jobless. Maybe because it’s still the third week [of social distancing] and I still have enough savings from my previous work,” said the 26-year-old, who is from Yogyakarta. “But I imagine life will become tougher in the next few months if the situation gets worse.”

Like her, millions of youths are now part of a job market in Southeast Asia that has been ravaged by the coronavirus pandemic. They are the unlucky cohort of 2020 whose fortunes have changed so drastically, so quickly.

Freelance filmmaker Anita Reza Zein now spends most of her time at home as her projects have all been frozen due to the spread of Covid-19. Photo: Anita Reza Zein
Freelance filmmaker Anita Reza Zein now spends most of her time at home as her projects have all been frozen due to the spread of Covid-19. Photo: Anita Reza Zein
Just three months ago, many eager graduates were about to partake in a strong economy and possibly land decent pay cheques.
Today, job offers are being withdrawn and hiring halted, leading to a spike in regional youth unemployment in the short term. In the long term, the effects on the Covid-19 cohort could lead to wider social and political problems.
JOB MARKETS SHUT
The virus’ impact on economies and the job market in the region has been swift and devastating. Borders have been slammed shut, workers ordered to stay at home, and thousands of companies closed every week.

The biggest problem is the lack of certainty about how long this will last – the longer the governments keep their countries on lockdown, the worse the economic impact.

In Indonesia, for example, the virus has caused almost 2.8 million people to lose their jobs, according to the Manpower Ministry and the Workers Social Security Agency. Likewise, in Malaysia, an estimated 2.4 million people are expected to lose their jobs, going by data from the Malaysian Institute of Economic Research (MIER).
Thailand

is bracing itself for a 5.3 per cent contraction in GDP for the full year, the worst since the Asian financial crisis in 1997.

“We think about seven million jobs have been lost already, and the figure will hit 10 million if the outbreak drags on for two to three more months,” said Kalin Sarasin, council member and head of the Thai Chamber of Commerce.

Lockdown for 34 million people in capital Jakarta as Indonesia fights surge in coronavirus deaths
For young jobseekers, the outbreak of the Covid-19 pandemic could hurt even more, with companies unwilling to open up new jobs for them.

“My clients who were open to fresh graduates previously have realigned searches [for candidates] who have at least one year of experience, as it’s a lot faster for someone with experience to scale up quickly and contribute,” said Joanne Pek, a recruiter at Cornerstone Global Partners’ Singapore office.

For many small and medium-sized enterprises (SMEs) such as Singapore-based restaurant chain The Soup Spoon, saving jobs – rather than recruiting – is the priority.

“We don’t want to let anyone go during this period, so we’re focused on protecting jobs,” said co-founder and director Benedict Leow, who employs some 250 workers.

THE COVID-19 COHORT

The looming economic downturn could have distinct consequences for the Class of 2020 that will outlast the economic downturn itself.

For one thing, the paucity of jobs could result in the Covid-19 cohort becoming a “lost generation” of sorts, said Achim Schmillen, a senior economist at the World Bank Social Protection and Jobs Global Practice.

“Research from around the globe shows that graduating in a recession can have significant and long-lasting impacts that can affect the entire career. In particular, it can lead to large initial earnings losses which only slowly recede over time,” he said.

Coronavirus: why there’s no quick fix for a Covid-19 vaccine

12 Apr 2020

Economics professor Jeff Borland of the University of Melbourne said that international studies showed that what happened to people when they first entered the labour market would affect them for the rest of their working lives.

“Many international studies have shown that trying to move into employment during a major economic downturn cuts the probability of employment and future earnings for a decade or more.

“Why this occurs is less well-established. Reasons suggested include being forced to take lower-quality jobs, losing skills and losing psychological well-being,” he said in a piece published on The Conversation website.

Malaysia sets up Covid-19 test zones in the capital to hunt for ‘hidden’ coronavirus cases

This could create “lasting scarring” on the graduates this year, said labour economist Walter Theseira.

“If their careers start badly, it would affect their earnings for a number of years because they would lack the same experience as peers who started in a more secure position,” the associate professor of economics at Singapore University of Social Sciences said.

Shrinking salaries and the downsizing of companies mean that graduates might have to seek out professions outside their areas of study to survive, said Grace Lee Hooi Yean, head of the Economics Department at Monash University, Malaysia.

She said youth unemployment in the country, which stands at 11.67 per cent, could rise sharply.

“This looming crisis could trap a generation of educated and capable youth in a limbo of unmet expectations and lasting vulnerability if the graduates are not ready to face reality and adapt to the new challenges,” she said.

How long will a coronavirus vaccine take? A Q&A with Jerome Kim

12 Apr 2020

This is fast becoming the reality for final-year medical student Rebecca K. Somasundaram, who has been left without a job due to the pandemic.

After being offered a residency programme at a top specialist hospital in Kuala Lumpur, she was notified a month ago that her placement had been made void until further notice. This has thrown the 24-year-old’s plans into disarray as she was hoping to enter the workforce soon to pay off her student debts. Her plans to get married next year have also been put on hold temporarily.

“I am in constant talks with the hospital to see if there is any way I can join them soon but seeing how things are unfolding so quickly, I am slowly losing hope,” she said.

Over in Indonesia, the pandemic will trigger job losses on a national scale. To combat this, the government would need to introduce strong fiscal measures and beef up its social protection policies, said the country’s former minister of finance Muhamad Chatib Basri.

Many people on lower incomes tend to work in the extraction industry, such as mining and palm oil, and these are the first industries hit due to the global slowdown.

“The rich will be able to brave the storm, but the poor have no means to do so,” he said.

Singapore migrant workers under quarantine as coronavirus hits dormitories
SPECTRE OF 1997
With partial lockdowns imposed in the capital of Jakarta, more needs to be done to ensure that vulnerable citizens have access to food and financial support.
Without government intervention, economic woes could soon translate into political instability, a scenario last seen in the Asian financial crisis.
In 1997, waves of discontent sparked racial riots in Indonesia that toppled the country’s long-time strongman Suharto, while in Thailand a political crisis created the conditions for populist leader Thaksin Shinawatra to rise.
Rising discontent could have serious implications at the ballot boxes, warned Basri, who said young voters were a key voting bloc for President Joko “Jokowi” Widodo.
Coronavirus: food security, Asia’s next battle in a post-Covid world
6 Apr 2020

In last year’s general elections, Jokowi proved a hit among the lower-educated youth who had benefited from the creation of largely unskilled jobs during his tenure.

“With more young people expected to become unemployed in the coming months, things will only get worse from here,” said Basri, who added that the country’s youth unemployment stood at almost 20 per cent in 2018.

Indonesia, which has 268 million people and is Southeast Asia’s largest economy, had 133 million workers as of last August, according to official data.

Close to 10 per cent or about 12.27 million are university graduates but among this group, about 5.67 per cent or some 730,000 were unemployed. This was higher than the country’s overall unemployment rate at that time, which was 5.28 per cent.

‘Ghosts’ deployed to scare Indonesians into staying home to slow spread of the coronavirus
GETTING IT RIGHT
Economists say, however, that all is not lost. Much will depend on policy and how governments focus on battling the virus on the public health and economic fronts. They point to Singapore, which has launched a robust response to the crisis.
On April 6, the Singapore government announced its third budget in two months to help companies and households tide over the crisis. In all, Singapore’s total stimulus package, which aims to save jobs and keep funds flowing to companies, will cost the government a massive S$59.9 billion (US$42 billion).
The Singapore government was also preparing for a labour market that would be reluctant to hire fresh graduates on a full-time basis, said Theseira.
“There are plans to implement large-scale subsidised traineeships, which may be more palatable to companies which are worried about taking on permanent headcount this year,” he noted. “As the economic situation improves, they can be converted to permanent positions.”
The next coronavirus: how a biotech boom is boosting Asian defences
4 Mar 2020

While jobs were being created for fresh graduates, many would still have to temper their expectations, such as taking jobs with lower starting pay, said DBS Bank economist Irvin Seah.

“There are still some jobs to go around. There are still some companies that may need workers. But they will need to be realistic,” he said.

For instance, despite the downturn, Singapore telco Singtel expects to recruit over 300 fresh graduates for various permanent positions this year, according to Aileen Tan, the company’s Group Chief Human Resources Officer. Many of the new hires will be in new growth areas such as the Internet of Things, analytics and cloud.

The Singtel Comcentre building in Singapore. Photo: Roy Issa
The Singtel Comcentre building in Singapore. Photo: Roy Issa
Other companies that continue to hire include those in tech across the region, including e-commerce giant Shopee, food-delivery service Foodpanda and Amazon.
In Australia, Borland suggested helping young people to remain plugged into the labour market through government-funded paid internships, or even offering them loans to go for further studies and prevent a spell of unemployment.
For now, while some young jobseekers are taking a wait-and-see approach, the reality is hitting hard for others.
Final-year National University of Singapore student H.P. Tan had all but secured a job at a public relations firm last month, after three rounds of interviews.
The Faculty of Arts and Social Sciences undergraduate was rejected via an email from the agency, which said that they could no longer hire after Covid-19 started to drastically cut business.
“When I got that rejection, it was a turning point. I didn’t think I would be directly impacted,” said the 23-year-old.
“I also applied to a few other agencies but the response has been slow, so I am now freaking out at the possibility of not being able to find a job after graduation.”
Source: SCMP
16/03/2020

In Indian capital, riots deepen a Hindu-Muslim divide

NEW DELHI (Reuters) – For years, Hindus and Muslims lived and worked peacefully together in Yamuna Vihar, a densely populated Delhi district.

But the riots that raged through the district last month appear to have cleaved lasting divisions in the community, reflecting a nationwide trend as tensions over the Hindu nationalist agenda of Prime Minister Narendra Modi boil over.

Many Hindus in Yamuna Vihar, a sprawl of residential blocks and shops dotted with mosques and Hindu temples, and in other riot-hit districts of northeast Delhi, say they are boycotting merchants and refusing to hire workers from the Muslim community. Muslims say they are scrambling to find jobs at a time when the coronavirus pandemic has heightened pressure on India’s economy.

“I have decided to never work with Muslims,” said Yash Dhingra, who has a shop selling paint and bathroom fittings in Yamuna Vihar. “I have identified new workers, they are Hindus,” he said, standing in a narrow lane that was the scene of violent clashes in the riots that erupted on Feb. 23.

The trigger for the riots, the worst sectarian violence in the Indian capital in decades, was a citizenship law introduced last year that critics say marginalises India’s Muslim minority. Police records show at least 53 people, mostly Muslims, were killed and more than 200 were injured.

Dhingra said the unrest had forever changed Yamuna Vihar. Gutted homes with broken doors can be seen across the neighbourhood; electricity cables melted in the fires dangle dangerously above alleys strewn with stones and bricks used as makeshift weapons in the riots.

Most Hindu residents in the district are now boycotting Muslim workers, affecting everyone from cooks and cleaners to mechanics and fruit sellers, he said.

“We have proof to show that Muslims started the violence, and now they are blaming it on us,” Dhingra said. “This is their pattern as they are criminal-minded people.”

Those views were widely echoed in interviews with 25 Hindus in eight localities in northeast Delhi, many of whom suffered large-scale financial damages or were injured in the riots. Reuters also spoke with about 30 Muslims, most of whom said that Hindus had decided to stop working with them.

Suman Goel, a 45-year-old housewife who has lived among Muslim neighbours for 23 years, said the violence had left her in a state of shock.

“It’s strange to lose a sense of belonging, to step out of your home and avoid smiling at Muslim women,” she said. “They must be feeling the same too but it’s best to maintain a distance.”

Mohammed Taslim, a Muslim who operated a business selling shoes from a shop owned by a Hindu in Bhajanpura, one of the neighbourhoods affected by the riots, said his inventory was destroyed by a Hindu mob.

He was then evicted and his space was leased out to a Hindu businessman, he said.

“This is being done just because I am a Muslim,” said Taslim.

Many Muslims said the attack had been instigated by hardline Hindus to counter protests involving tens of thousands of people across India against the new citizenship law.

“This is the new normal for us,” said Adil, a Muslim research assistant with an economic think tank in central Delhi. “Careers, jobs and business are no more a priority for us. Our priority now is to be safe and to protect our lives.”

He declined to disclose his full name for fear of reprisals.

Emboldened by Modi’s landslide electoral victory in 2014, hardline groups began pursuing a Hindu-first agenda that has come at the expense of the country’s Muslim minority.

Vigilantes have attacked and killed a number of Muslims involved in transporting cows, which are seen as holy animals by Hindus, to slaughterhouses in recent years. The government has also adopted a tough stance with regard to Pakistan, and in August withdrew semi-autonomous privileges for Jammu and Kashmir, India’s only Muslim-majority state.

In November, the Supreme Court ruled that a Hindu temple could be built at Ayodhya, where a right-wing mob tore down a 16th-century mosque in 1992, a decision that was welcomed by the Modi government.

The citizenship law, which eases the path for non-Muslims from neighbouring Muslim-majority nations to gain citizenship in India, was the final straw for many Muslims, as well as secular Indians, sparking nationwide protests.

Modi’s office did not respond to questions from Reuters about the latest violence.

NIGHT VIGILANTES

During the day, Hindus and Muslims shun each other in the alleys of the Delhi districts that were hardest hit by the unrest in February. At night, when the threat of violence is greater, they are physically divided by barricades that are removed in the morning.

And in some areas, permanent barriers are being erected.

On a recent evening, Tarannum Sheikh, a schoolteacher, sat watching two welders install a high gate at the entrance of a narrow lane to the Muslim enclave of Khajuri Khas, where she lives. The aim was to keep Hindus out, she said.

“We keep wooden batons with us to protect the entrance as at any time, someone can enter this alley to create trouble,” she said. “We do not trust the police anymore.”

In the adjacent Hindu neighbourhood of Bhajanpura, residents expressed a similar mistrust and sense of insecurity.

“In a way these riots were needed to unite Hindus, we did not realise that we were surrounded by such evil minds for decades,” said Santosh Rani, a 52-year-old grandmother.

She said she had been forced to lower her two grandchildren from the first floor of her house to the street below after the building was torched in the violence, allegedly by a Muslim.

“This time the Muslims have tested our patience and now we will never give them jobs,” said Rani who owns several factories and retail shops. “I will never forgive them.”

Hasan Sheikh, a tailor who has stitched clothing for Hindu and Muslim women for over 40 years, said Hindu customers came to collect their unstitched clothes after the riots.

“It was strange to see how our relationship ended,” said Sheikh, who is Muslim. “I was not at fault, nor were my women clients, but the social climate of this area is very tense. Hatred on both sides is justified.”

Source: Reuters

04/03/2020

Sanitisers get priority over South Korea’s soju drink in virus crisis

SEOUL (Reuters) – Makers of soju, South Korea’s national drink and one of the world’s best selling spirits, are jumping into the fight on the largest outbreak of coronavirus outside China by sharing their stockpiles of alcohol with makers of sanitisers.

Disinfectants, such as hand sanitisers, are flying off the shelves, along with medical-grade masks, as infections in South Korea have surged past 5,000 in just over a month since its first patient was diagnosed.

South Korean soju makers have responded to soaring ethanol demand for sanitisers by donating the alcohol that goes into the drink, a distilled spirit with 17% to 20% alcohol by volume traditionally based on rice, but now often wheat or potatoes.

“Ethanol demand for disinfection has grown while supply is limited…we have decided to provide it,” an official of Daesun Distilling, based in the southeastern city of Busan, told Reuters.

To banish the virus, the company has pledged to donate 32 tonnes of ethanol for use in disinfecting buildings and public places in Busan and southeastern Daegu, the city at the centre of South Korea’s outbreak.

“We plan to keep donating until the coronavirus outbreak is stabilised and to donate 50 tonnes more,” added the official, who sought anonymity as he was not authorised to speak to media.

South Koreans drink an average of about 12 shots of soju each week, media say, citing industry figures. Ethanol for alcoholic drinks can be produced by fermentation or distillation, typically from grains and plants.

The chemical can also be made from petrochemical feedstock.

Whether used for liquor or disinfection, both have the same chemical structure and can break apart the virus particle, said Lee Duckhwan, a chemistry professor at Sogang University in Seoul, the capital.

“If there’s any difference, that is the liquor tax imposed on ethanol produced by liquor makers,” Lee said.

The virus fears boosted February sales of soaps and hand sanitisers, including those with an alcohol base, to four times the level a year ago, data from a major retailer Lotte Mart shows. Shares of ethanol producers also jumped.

Following Daesun Distilling, Hallasan Soju, based on the resort island of Jeju, also provided 5 tonnes of ethanol to authorities on Tuesday, a company official said.

Source: Reuters

17/06/2019

China rolls out rules to guide development of SpaceX-style commercial rocket research in the country

  • Chinese President Xi Jinping has made becoming a “space flight superpower” a priority for his government
Chinese space authorities prepare to launch a rocket from a commercial cargo ship at sea. Photo: Handout
Chinese space authorities prepare to launch a rocket from a commercial cargo ship at sea. Photo: Handout
China has rolled out its first rules to regulate the manufacture of commercial space rockets and test flights in a move to guide healthy development of the commercial space sector, mirroring similar moves by the US in recent years.
As a rising number of start-ups set out to be China’s version of Elon Musk’s SpaceX, the guidelines are the first since China’s space industry was opened to the private sector in 2014. They require companies to obtain official permission before carrying out rocket research and development as well as production, according to a notice published on the web site of the State Administration of Science, Technology and Industry for National Defense on Monday.
The new rules also require a confidentiality system to be established among commercial rocket companies and asks them to follow state export control regulations when in doubt about whether they can provide overseas services and products.
The detailed regulations come as the number of private companies engaged in the commercialisation of China’s space industry increased to almost 100 in 2018 from 30 a year earlier, and as Beijing puts more emphasis on private sector involvement to boost its space ambitions.
China rockets to forefront of global space race with sea launch success

“The specifics give clear direction for China’s commercial space industry, clarifying the qualifications, operational boundaries and national guarantees, which will be conducive to the sector’s healthy and orderly development,” Shu Chang, CEO of Beijing-based commercial rocket pioneer OneSpace Technology, was quoted as saying to state media Global Times on Tuesday

Since coming to power in 2012, Chinese President Xi Jinping has made becoming a “space flight superpower” a priority for his government. Since 2014, Beijing has encouraged more private investors to participate in its space push to bolster commercial space technology development, including policies directed at investment and providing land for launches.

The guidelines issued on Monday said commercial rocket development had the potential to lower the cost of space sector development, improving China’s space power and competitiveness globally. It also encourages private companies to partner with state-backed organisations to take full advantage of the latter’s resources in research development, production and launch facilities.

Trump criticises Nasa moon mission after previously promoting it
The move by China mirrors similar efforts by the US in recent years to shift the burden of space exploration and technology development away from the state and into the private sector, leading to space rocket development by the likes of Elon Musk, Jeff Bezos and Richard Branson.

Military interests still weigh though. President Donald Trump has championed a return to the moon, calling for a lunar gateway that would allow a continuous stream of spacecraft and people to visit the moon, and serve as a leaping off point for Mars. Trump has also called for the creation of a “Space Force”, a sixth branch of the military that would be focused on defending US interests.

China accounts for roughly 3 per cent of the US$16.1 billion invested in private space companies and partnerships since 2009 in the world. But investments have increased rapidly since 2016, and the country led the world in the third quarter of 2018, according to Space Angels, a US investment firm that specialises in private space ventures.

Source: SCMP

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