Sweden's jobless rate advanced in August as a recovery inr the labour market lagged behind improvements in the rest of the largest Nordic economy.
The non-seasonally adjusted rate, as measured by the number of people claiming benefits, rose to 5.4 per cent from a revised 5.1 per cent in July, the Stockholm-based Public Employment Service said.
Exports account for half of the nation's gross domestic product and slumping global trade is forcing companies to eliminate jobs. Volvo, the world's second-biggest maker of heavy trucks, and Electrolux, the world's No 2 appliance maker, have scrapped jobs to stay competitive.
The economy will contract 5.2 per cent this year, the government estimates, rebounding to growth of 0.6 per cent in 2010 as output benefits from a resurgence of trade demand that should resuscitate export markets.
Unemployment should average 11.4 per cent next year and will rise to 11.6 per cent in 2011, the government estimates.
Sunday, September 13, 2009
Friday, September 11, 2009
CHINA CONDERMNS AMERICAN TARIFFS ON STEEL PIPES
China yesterday condemned a US decision to slap tariffs on steel pipes from the mainland, as US President Barack Obama mulled whether to also curb tyre imports from the Asian giant.
The disputes are a litmus test for Obama's trade policy with Beijing, and are coming to the frefront ahead of his highly anticipated first presidential visit to China set for November.
In July, Obama laid out his vision of "cooperation, not confrontation" between Washington and Beijing, saying the relationship would "shape the 21st century", but the thorny trade issues could throw a spanner in the works.
The US Commerce Department said on Wednesday it had made a preliminary decision to impose duties to as much as 31 per cent on Chinese carbon or alloy tubular steel products used in oil and gas wells, following claims they were backed by unfair subsidies.
That announcement drew a quick and angry response from Beijing.
"China is highly concerned over this matter. We strongly oppose such trade protectionist moves," a commerce ministry spokeswoman said.
The spokeswoman declined to comment on what action China would take, if any, in response to the US move, saying the ministry could make an additional statement later in the day.
From 2006 to 2008, US imports of such pipes, officially known as oil country tubular goods (OCTG), from China increased 203 per cent by volume, the statement said. They were valued at US$2.6 billion (Bt88.8 billion) last year.
The Commerce Department launched a probe into the case after complaints from various US industry groups and unions, including US Steel, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
"As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates," the department said in a statement.
It will issue a "final determination" on the issue in November, it said.
"This is the largest countervailing duty and dumping case filed against China, based on the value of trade," a lawyer representing a Chinese company involved in the case, said.
The decision came as Obama has pressure to slap punitive duties on Chinese tyre imports, and save jobs at home as the world's largest economy tries to recover from a recession.
Obama is required to make his decision by September 17, ahead of hosting Chinese President Hu Jintao at the G-20 summit in the US city of Pittsburgh on September 24-25.
The disputes are a litmus test for Obama's trade policy with Beijing, and are coming to the frefront ahead of his highly anticipated first presidential visit to China set for November.
In July, Obama laid out his vision of "cooperation, not confrontation" between Washington and Beijing, saying the relationship would "shape the 21st century", but the thorny trade issues could throw a spanner in the works.
The US Commerce Department said on Wednesday it had made a preliminary decision to impose duties to as much as 31 per cent on Chinese carbon or alloy tubular steel products used in oil and gas wells, following claims they were backed by unfair subsidies.
That announcement drew a quick and angry response from Beijing.
"China is highly concerned over this matter. We strongly oppose such trade protectionist moves," a commerce ministry spokeswoman said.
The spokeswoman declined to comment on what action China would take, if any, in response to the US move, saying the ministry could make an additional statement later in the day.
From 2006 to 2008, US imports of such pipes, officially known as oil country tubular goods (OCTG), from China increased 203 per cent by volume, the statement said. They were valued at US$2.6 billion (Bt88.8 billion) last year.
The Commerce Department launched a probe into the case after complaints from various US industry groups and unions, including US Steel, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
"As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates," the department said in a statement.
It will issue a "final determination" on the issue in November, it said.
"This is the largest countervailing duty and dumping case filed against China, based on the value of trade," a lawyer representing a Chinese company involved in the case, said.
The decision came as Obama has pressure to slap punitive duties on Chinese tyre imports, and save jobs at home as the world's largest economy tries to recover from a recession.
Obama is required to make his decision by September 17, ahead of hosting Chinese President Hu Jintao at the G-20 summit in the US city of Pittsburgh on September 24-25.
Wednesday, September 9, 2009
Thailand bids to lead world in outsourcing
Thailand has set an ambitious target to become one of the world's top three countries for outsourcing by 2013, building a 4-billion-baht industry and forming an outsourcing association.
The kingdom's potential to capture opportunities as an attractive international IT outsourcing destination has led the driving industries to form the Thai IT Outsourcing Association, or TITO, said association chairman Steven Kalayanamit. The association is comprised of 10 pioneering international outsourcing companies.
According to a recent study,"Global Services Location Index 2009" by AT Kearney, Thailand ranks number four worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support, following India, China and Malaysia, which have retained the top three spots since 2004. However, Steven believes that unifying IT outsourcing companies into "One Nation, One Com-pany" and offering unique, specialised skills will help Thailand surpass Malaysia at in number three by 2013.
Currently, there is no formal figure to show the scale of IT outsourcing in Thailand but rough estimates suggest a range of 800 million to 1.5 billon baht,with an average project value of 300 million baht. Within the next two years,the market should reach 4-5 billion baht.
"Thailand's attributes lie in its high talent level and good resources within a friendly business environment ,but there is still a need to boost confidence and awareness among the target market."
He added that "Within the next three months, the association will launch a web portal to facilitate searches and business matching by using short video clips to introduce each members including business matching."
There is a great demand for outsourcing in the world market, with the industry expected to be worth $1.4 trillion (47 trillion baht) by the end of this year.
Therefore there is no need to focus on generating new business, so the association is seeking to promote Thailand's capabilities and high valuefor-money to the existing market.
In the short term, Thailand can start with animation and digital content outsourcing, which fits in with Thailand's creativity profile, and others fields such as database management outsourcing services, accounting business process outsourcing and COBOL programming and development outsourcing.
In the long term, intelligent business outsourcing is an interesting area because there is a growing demand for customisation in this field, but it takes time to train new skill resources.
Hintendra Patil, Chief Operating Officer of Saraff Infotech, an accounting and taxing business outsourcing service located in Bangkok, said joining this association will help the company find more new customers and local subcontracting partners for its services to the US market.
"Thailand may not be the cheapest cost location but the accuracy and quality of services here help us to be competitive. However, high speed bandwidth and reasonable costs are important issues to address to strengthen Thailand's outsourcing capabilities because it is critical to the infrastructure of outsourcing services," he said.
Software Industry Promotion Agency (Sipa) director Rungreung Limshoopati-pha added that Thailand has flexibility and creativity as outstanding points in its outsourcing portfolio , along with the Government's policy to build a creative economy through its "Creative Thailand" strategy.
The government can play a role in facilitating business matching with international customers to increase confidence in outsourcing providers and setting standards or a methodology for outsourcing contracts.
This year has seen a lot of success for Thailand in the outsourcing field, with contracts ranging from accounting business processes,TV animation series and biometric-related services to medicalrelated services generating business worth more than 1 billion baht
An emerging service is COBOL programming outsourcing for the banking in Europe market, which, while still in need of maintenance, can boast a skills resource in Thailand of some 1,000 professionals.
"Over the next three to six months,Sipa will support the retraining of 200 COBOL developers.
"This should help to convince foreign investors to consider basing their outsourcing operations in Thailand," Rungreung concluded.
The kingdom's potential to capture opportunities as an attractive international IT outsourcing destination has led the driving industries to form the Thai IT Outsourcing Association, or TITO, said association chairman Steven Kalayanamit. The association is comprised of 10 pioneering international outsourcing companies.
According to a recent study,"Global Services Location Index 2009" by AT Kearney, Thailand ranks number four worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support, following India, China and Malaysia, which have retained the top three spots since 2004. However, Steven believes that unifying IT outsourcing companies into "One Nation, One Com-pany" and offering unique, specialised skills will help Thailand surpass Malaysia at in number three by 2013.
Currently, there is no formal figure to show the scale of IT outsourcing in Thailand but rough estimates suggest a range of 800 million to 1.5 billon baht,with an average project value of 300 million baht. Within the next two years,the market should reach 4-5 billion baht.
"Thailand's attributes lie in its high talent level and good resources within a friendly business environment ,but there is still a need to boost confidence and awareness among the target market."
He added that "Within the next three months, the association will launch a web portal to facilitate searches and business matching by using short video clips to introduce each members including business matching."
There is a great demand for outsourcing in the world market, with the industry expected to be worth $1.4 trillion (47 trillion baht) by the end of this year.
Therefore there is no need to focus on generating new business, so the association is seeking to promote Thailand's capabilities and high valuefor-money to the existing market.
In the short term, Thailand can start with animation and digital content outsourcing, which fits in with Thailand's creativity profile, and others fields such as database management outsourcing services, accounting business process outsourcing and COBOL programming and development outsourcing.
In the long term, intelligent business outsourcing is an interesting area because there is a growing demand for customisation in this field, but it takes time to train new skill resources.
Hintendra Patil, Chief Operating Officer of Saraff Infotech, an accounting and taxing business outsourcing service located in Bangkok, said joining this association will help the company find more new customers and local subcontracting partners for its services to the US market.
"Thailand may not be the cheapest cost location but the accuracy and quality of services here help us to be competitive. However, high speed bandwidth and reasonable costs are important issues to address to strengthen Thailand's outsourcing capabilities because it is critical to the infrastructure of outsourcing services," he said.
Software Industry Promotion Agency (Sipa) director Rungreung Limshoopati-pha added that Thailand has flexibility and creativity as outstanding points in its outsourcing portfolio , along with the Government's policy to build a creative economy through its "Creative Thailand" strategy.
The government can play a role in facilitating business matching with international customers to increase confidence in outsourcing providers and setting standards or a methodology for outsourcing contracts.
This year has seen a lot of success for Thailand in the outsourcing field, with contracts ranging from accounting business processes,TV animation series and biometric-related services to medicalrelated services generating business worth more than 1 billion baht
An emerging service is COBOL programming outsourcing for the banking in Europe market, which, while still in need of maintenance, can boast a skills resource in Thailand of some 1,000 professionals.
"Over the next three to six months,Sipa will support the retraining of 200 COBOL developers.
"This should help to convince foreign investors to consider basing their outsourcing operations in Thailand," Rungreung concluded.
Sunday, September 6, 2009
MALAYSIA'S LABOUR SHORTAGE
It is lunchtime at the Wangsa Ukay restaurant in suburban Kuala Lumpur,and regulars are coming in for local favourites like roti canai , chicken curry and teh tarik , the sweet, milky drink that is ubiquitous across Malaysia.The owner, Muneandy Nalepan, has time to stop and talk for now, but when peak times hit at weekends, he and his wife must pitch in to help clear tables.
He used to have a staff of 120- almost all foreigners - working in his five restaurants across the city. But after the government made it more difficult for businesses to hire workers from abroad, he is down to 80 because he has been unable to replace the 40 employees who had to return home after the maximum work period of five years.
Unable to find Malaysians willing to work as cooks, waiters or dishwashers, he is awaiting approval to employ more foreigners.
But if he cannot get more workers soon,he says, he might have to close one of his restaurants. Mr Muneandy, an 18-year veteran of the industry, is even considering other business ventures.
"To run a restaurant, it's becoming impossible," he said.
It is not just restaurant owners who are complaining. Many business owners, like furniture-makers and rubber glove manufacturers, say a labour shortage is harming productivity.
In January, Malaysia sharply curtailed the hiring of new foreign workers in the manufacturing and service sectors after a government report predicted that 45,000 people could be laid-off during the Lunar New Year at the end of that month,The New Straits Times reported."There is no valid reason to bring in foreign workers at this time," Syed Hamid Albar, the home minister, told the paper. The action was backed by labour groups. The Malaysian Trade Union Congress proposed a freeze on the recruitment of foreign workers last October.
"Because of the global economic downturn,we were worried about the impact on jobs for Malaysians as well as foreigners," said Rajasekaran Govindasamy, the group's secretary-general."We don't want workers to be brought in and abandoned, because that then causes hardship."
In 2008, there were an estimated 2.2 million foreigners -mostly from Indonesia,Bangladesh, Nepal, India, Burma and Vietnam - working legally in Malaysia, a nation of 28 million. Some reports suggested the country was home to another one million illegal workers. By March this year, the number of foreigners with work permits had fallen to 1.9 million, according to Shamsuddin Bardan,executive director of the Malaysian Federation of Employers.
"About 300,000 permits were not renewed,and people were sent back," he said.
Malaysia recorded 31,392 lay-offs between January and July, and the country's unemployment rate rose to 4% in the first quarter of this year, the latest period for which figures are available. That was up from 3.1% in the fourth quarter of last year.
The average monthly wage in the manu-facturing industry has risen to 650 to 700 ringgit (6,270 to 6,760 baht) in the last three months, up from 450 ringgit, the national news agency Bernama reported in August.
Mr Rajasekaran said foreign workers often accepted lower wages than Malaysians. The country has no minimum wage. Typically,foreigners are brought in by a business offering a job, he said, or by an outsourcing company that promises them work.
Mr Shamsuddin said that companies could still apply to recruit foreigners but that the process had become more difficult. For example, he said that since April 1, employers have had to advertise vacancies locally for two months, up from one month, before they could apply to recruit foreigners. And employers must now pay an annual levy as much as 1,800 ringgit - for any new foreigners they employ, he said. The fee used to be paid by workers. Mr Shamsuddin said the government abandoned plans to double the levy after the federation complained.
Dominant Semiconductor, a light bulb manufacturer with factories in Malaysia and China, is struggling to fill about 1,000 vacancies. Its chairman, Goh Nan Kioh, said the company was allowed to employ one foreigner for every local worker, but could not find enough Malaysians to help increase its total work force. If the labour shortage continued, he said, the company might consider moving more of its labour-intensive operations to China.
Mohamed Ariff, executive director of the Malaysian Institute of Economic Research,said the country's dependence on foreign labor was a result of a decision to "open the floodgates" to migrant workers in the late 1980s, first in the plantation sector, then in manufacturing. Mr Mohamed said that in the early 1990s, when wages in the manufacturing sector were rising, factories had considered introducing labour-saving technology but that many had shelved those plans when the government let them employ more foreign workers.
"The technology transfer suffered enormously," he said."Malaysia was trapped in an unskilled, labour-intensive economy."
Figures released by the government last week showed that the economy had emerged from recession in the second quarter. Mr Raja, the labour leader, said that although job losses were easing, the unions thought the freeze on foreign workers should continue.If there is a need for more workers in the coming months, he said, companies should be able to extend the visas of foreign workers already in the country.
He used to have a staff of 120- almost all foreigners - working in his five restaurants across the city. But after the government made it more difficult for businesses to hire workers from abroad, he is down to 80 because he has been unable to replace the 40 employees who had to return home after the maximum work period of five years.
Unable to find Malaysians willing to work as cooks, waiters or dishwashers, he is awaiting approval to employ more foreigners.
But if he cannot get more workers soon,he says, he might have to close one of his restaurants. Mr Muneandy, an 18-year veteran of the industry, is even considering other business ventures.
"To run a restaurant, it's becoming impossible," he said.
It is not just restaurant owners who are complaining. Many business owners, like furniture-makers and rubber glove manufacturers, say a labour shortage is harming productivity.
In January, Malaysia sharply curtailed the hiring of new foreign workers in the manufacturing and service sectors after a government report predicted that 45,000 people could be laid-off during the Lunar New Year at the end of that month,The New Straits Times reported."There is no valid reason to bring in foreign workers at this time," Syed Hamid Albar, the home minister, told the paper. The action was backed by labour groups. The Malaysian Trade Union Congress proposed a freeze on the recruitment of foreign workers last October.
"Because of the global economic downturn,we were worried about the impact on jobs for Malaysians as well as foreigners," said Rajasekaran Govindasamy, the group's secretary-general."We don't want workers to be brought in and abandoned, because that then causes hardship."
In 2008, there were an estimated 2.2 million foreigners -mostly from Indonesia,Bangladesh, Nepal, India, Burma and Vietnam - working legally in Malaysia, a nation of 28 million. Some reports suggested the country was home to another one million illegal workers. By March this year, the number of foreigners with work permits had fallen to 1.9 million, according to Shamsuddin Bardan,executive director of the Malaysian Federation of Employers.
"About 300,000 permits were not renewed,and people were sent back," he said.
Malaysia recorded 31,392 lay-offs between January and July, and the country's unemployment rate rose to 4% in the first quarter of this year, the latest period for which figures are available. That was up from 3.1% in the fourth quarter of last year.
The average monthly wage in the manu-facturing industry has risen to 650 to 700 ringgit (6,270 to 6,760 baht) in the last three months, up from 450 ringgit, the national news agency Bernama reported in August.
Mr Rajasekaran said foreign workers often accepted lower wages than Malaysians. The country has no minimum wage. Typically,foreigners are brought in by a business offering a job, he said, or by an outsourcing company that promises them work.
Mr Shamsuddin said that companies could still apply to recruit foreigners but that the process had become more difficult. For example, he said that since April 1, employers have had to advertise vacancies locally for two months, up from one month, before they could apply to recruit foreigners. And employers must now pay an annual levy as much as 1,800 ringgit - for any new foreigners they employ, he said. The fee used to be paid by workers. Mr Shamsuddin said the government abandoned plans to double the levy after the federation complained.
Dominant Semiconductor, a light bulb manufacturer with factories in Malaysia and China, is struggling to fill about 1,000 vacancies. Its chairman, Goh Nan Kioh, said the company was allowed to employ one foreigner for every local worker, but could not find enough Malaysians to help increase its total work force. If the labour shortage continued, he said, the company might consider moving more of its labour-intensive operations to China.
Mohamed Ariff, executive director of the Malaysian Institute of Economic Research,said the country's dependence on foreign labor was a result of a decision to "open the floodgates" to migrant workers in the late 1980s, first in the plantation sector, then in manufacturing. Mr Mohamed said that in the early 1990s, when wages in the manufacturing sector were rising, factories had considered introducing labour-saving technology but that many had shelved those plans when the government let them employ more foreign workers.
"The technology transfer suffered enormously," he said."Malaysia was trapped in an unskilled, labour-intensive economy."
Figures released by the government last week showed that the economy had emerged from recession in the second quarter. Mr Raja, the labour leader, said that although job losses were easing, the unions thought the freeze on foreign workers should continue.If there is a need for more workers in the coming months, he said, companies should be able to extend the visas of foreign workers already in the country.
Friday, September 4, 2009
Tamil ex-child soldiers get jobs in Malaysia
A group of former child soldiers from Sri Lanka's Tamil Tiger rebels have won jobs on construction sites in Malaysia after undergoing retraining, the government said yesterday.
The seven men were among hundreds of former child soldiers who surrendered in the months before government troops finally defeated the Tigers in May at the end of decades of ethnic warfare. Now aged between 19 and 21, the seven joined the Tigers' ranks as children and fought with the rebels in their unsuccessful and bloody campaign for an independent Tamil state. Some former fighters are not charged over their involvement with the rebels and instead undergo oneyear vocational training in plumbing,masonry, carpentry and electrical work at state-run welfare centres.
The government says it helps the child soldiers secure jobs overseas or return to their villages in the north and east of the island.
The seven men were among hundreds of former child soldiers who surrendered in the months before government troops finally defeated the Tigers in May at the end of decades of ethnic warfare. Now aged between 19 and 21, the seven joined the Tigers' ranks as children and fought with the rebels in their unsuccessful and bloody campaign for an independent Tamil state. Some former fighters are not charged over their involvement with the rebels and instead undergo oneyear vocational training in plumbing,masonry, carpentry and electrical work at state-run welfare centres.
The government says it helps the child soldiers secure jobs overseas or return to their villages in the north and east of the island.
Agencies told to cut costs of health-care programmes
Prime Minister Abhisit Vejjajiva yesterday summoned government agencies responsible for the central health programmes to find ways to make the programmes more efficient to rein in the government's health-related costs.
Labour Minister Phaitoon Kaeothong said Abhisit was concerned with the increasing social expenses, which could reduce the government's investment capability. The ministries of Public Health and Labour as well as other agencies were instructed to draw up measures to cut or maintain health expenses, without jeopardising the quality of the service.
Finance Ministry permanent secretary Sathit Limpongpan said that within a month, a study to restructure the overlapping three health and welfare systems, the Social Security Fund, the system for civil servants and the universal health programme, for higher efficiency will be completed. Civil servants' health costs have risen from Bt30 billion ten years ago to nearly Bt80 billion, he said.
Phaitoon said foreign workers in Thailand may be required to buy health and life insurance policies. The compulsory policy should cost no more than Bt500 per year, and this will entitle the workers out-of-office sickness, disability and loss of life.
Labour Minister Phaitoon Kaeothong said Abhisit was concerned with the increasing social expenses, which could reduce the government's investment capability. The ministries of Public Health and Labour as well as other agencies were instructed to draw up measures to cut or maintain health expenses, without jeopardising the quality of the service.
Finance Ministry permanent secretary Sathit Limpongpan said that within a month, a study to restructure the overlapping three health and welfare systems, the Social Security Fund, the system for civil servants and the universal health programme, for higher efficiency will be completed. Civil servants' health costs have risen from Bt30 billion ten years ago to nearly Bt80 billion, he said.
Phaitoon said foreign workers in Thailand may be required to buy health and life insurance policies. The compulsory policy should cost no more than Bt500 per year, and this will entitle the workers out-of-office sickness, disability and loss of life.
Tuesday, September 1, 2009
WORKERS OF 7 STATE ENTERPRISES TO GET BT2,000 ALLOWANCE FOR 6 MONTHS
The State-Enterprise Relations Committee yesterday agreed to provide a monthly allowance of Bt2,000 for six months to workers of seven state enterprises who earned less than Bt15,000 a month, and also made way for the remaining 57 state enterprises to request for such allowances.
After a committee meeting yesterday, Labour Minister Phaithoon Kaeothong said those working at the Government Housing Bank, Expressway and Rapid Transit Authority of Thailand, Tourism Authority of Thailand, Government Pharmaceutical Organisation, Provincial Electricity Authority, Electricity Generating Authority of Thailand (Egat) and Port Authority of Thailand would be eligible for the allowance.
The allowance, which would cost Bt782 million in total and be taken from the enterprises' own budget, was approved by the Cabinet on August 25. Egat is said to have the highest number of recipients.
Though the committee had initially agreed to pay out Bt2,000, the Cabinet's Secretariat would have a final say on what the payment formula should be Bt15,000 plus Bt500 as per the Cabinet resolution or Bt15,000 plus Bt2,000, Phaithoon said.
The committee also agreed that the remaining 57 state enterprises, covered nearly 60,000 workers and therefore needed a total of Bt13-billion, should consider requesting for such an allowance, and once the board of their enterprise approves their proposal, the committee would consider it, he added.
Workers at the Metropolitan Electricity Authority and Metropolitan Waterworks Authority have already been granted such allowances.
After a committee meeting yesterday, Labour Minister Phaithoon Kaeothong said those working at the Government Housing Bank, Expressway and Rapid Transit Authority of Thailand, Tourism Authority of Thailand, Government Pharmaceutical Organisation, Provincial Electricity Authority, Electricity Generating Authority of Thailand (Egat) and Port Authority of Thailand would be eligible for the allowance.
The allowance, which would cost Bt782 million in total and be taken from the enterprises' own budget, was approved by the Cabinet on August 25. Egat is said to have the highest number of recipients.
Though the committee had initially agreed to pay out Bt2,000, the Cabinet's Secretariat would have a final say on what the payment formula should be Bt15,000 plus Bt500 as per the Cabinet resolution or Bt15,000 plus Bt2,000, Phaithoon said.
The committee also agreed that the remaining 57 state enterprises, covered nearly 60,000 workers and therefore needed a total of Bt13-billion, should consider requesting for such an allowance, and once the board of their enterprise approves their proposal, the committee would consider it, he added.
Workers at the Metropolitan Electricity Authority and Metropolitan Waterworks Authority have already been granted such allowances.
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