HRDs face tough new foreign recruitment laws

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Singapore firms will come up against stricter laws for foreign employee recruitment from 1 October 2015 according to the immigration attorneys at Berry Appleman & Leiden (BAL).

Ministry of Manpower (MOM) changes to the Fair Consideration Framework (FCF) will affect the FCF’s advertising requirements with firms expected to “publish the salary range of the job vacancy in the Jobs Bank”. Failure to comply will result in the employment pass application being rejected. This is expected to “make the job terms clearer to Singaporean job seekers and improve labour market transparency” according to a recent MOM press release.

There is also the possibility of further scrutiny of local firms by MOM especially with regards to hiring professionals, managers and executives (PMEs). Those with a “weaker Singaporean core of PMEs” may find themselves having to submit more information during recruitment. BAL reports that this “may increase processing times” and create more challenges for firms looking for foreign PMEs to fill positions already affected by the country’s talent shortages. These additional requirements may include providing details of:

  • The number of Singaporean applications received
  • Proof that these local PMEs were interviewed
  • The company’s present employee statistics

This move is in line with current trends for foreign workers announced on 14 July by the Minister of Manpower. With growth rates slowing from 19% to 3% year-on-year from 2007–14, the need to focus back on the local workforce is something the ministry takes seriously. “Employers and Singaporean PMEs have important roles to play. Employers should support the development of Singaporean PMEs and consider them fairly for career opportunities,” MOM stated. “The ministry is actively encouraging employers to transfer expertise from foreign workers to Singaporeans,” BAL adds.

China Oil Giants Seek to Join Spree of Global Energy Deals

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(Bloomberg) — PetroChina Co., the country’s biggest oil and gas producer, signaled it’s looking to join a wave of global energy deals as crude’s collapse makes it the right time to buy and sell assets.

“Low crude prices are a good opportunity for acquisitions,” Wang Dongjin, the company’s president, said at a briefing on Thursday after it reported a 63 percent slump in profits during the first half of the year. “Timing is really important now. We have been tracking some assets for a while and are waiting for the time to come.”

Oil’s collapse to a six-year low has prompted a wave of acquisitions across the energy industry. Three of the last five quarters have exceeded $160 billion in deal volume, surpassing even the late 1990s, a period when many of the world’s largest energy corporations were formed, according to data compiled by Bloomberg. While China’s big three oil companies have sat out this latest round, China Petroleum & Chemical Corp. also said Thursday it’s seeking overseas assets, signaling that at least two of them are now ready to join the spree.

PetroChina is in talks with some international oil companies to swap assets, especially in North America, Wang said, without elaborating. The act would save transaction fees and allow the explorers to achieve better economies of scales in a low crude price environment.

“Hopefully we will have something big to announce soon,” Wang said.

Global Oversupply

While the fall in prices is presenting an opportunity for deals, it’s been a drag on profits as the company depends on exploration and production for most of its revenue. Crude has tumbled as producers sustain output to protect market share, worsening global oversupply amid concern that demand growth from China is stalling. Brent, the benchmark for about half the world’s crude, averaged about $59 a barrel in the first half of the year, down 45 percent from the same period in 2014.

PetroChina plans to produce more than 120 billion cubic meters of natural gas from conventional and unconventional sources annually in China by 2020, Wang said at the briefing. Conventional gas output in 2020 will reach as much as 90 billion cubic meters, while shale output from Sichuan will reach 10 billion cubic meters, Wang said. Tight gas output, also considered an unconventional resource, will stabilize at 30 billion cubic meters a year by 2020.

Natural gas will be a major profit contributor for PetroChina in the five years to 2020 as crude languishes, Wang said.

Pipeline Spinoff

Spinning off pipeline assets from state-owned energy companies is the right direction, he said.

Petrochina’s state-owned peer China Petroleum & Chemical Corp. has received a draft of the spin off plan from the country’s economic planner, Chairman Wang Yupu said in a separate briefing Thursday, without giving details.

PetroChina’s pipeline assets could be worth as much as $300 billion, according to an estimate by Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein. Bloomberg first reported the spin off plan in May.

PetroChina’s net income dropped to 25.4 billion yuan ($4 billion) in the six months ended June 30 from 68.1 billion yuan a year earlier, the Beijing-based company said Thursday in a statement to the Hong Kong stock exchange. The average of three analysts estimates compiled by Bloomberg was a profit of 30.3 billion yuan.

‘Tougher Competition’

“The global oil price is likely to keep fluctuating at a low level,” the company said in its earnings release. “The growth of domestic demand for oil and gas will slow down and the market competition will get tougher.”

The Bloomberg Commodity Index of 22 raw materials fell to a 16-year low this month and is down 17 percent this year as a glut of raw materials from oil to iron ore meet cooling demand from China, the world’s biggest consumer of energy, metals and grains.

PetroChina’s domestic rivals were also struck by oil’s fall. Cnooc Ltd.’s first-half income dropped 56 percent, while the decline at China Petroleum, Asia’s biggest refiner known as Sinopec, was softened to 22 percent because of better fuel- making margins over the period.

–With assistance from Sarah Chen in Beijing.

Vietnam based Masan Group appoints new CFO

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Masan Group, one of Vietnam’s largest private companies, has appointed Michael Hung Nguyen as chief financial officer, in addition to his role as deputy CEO and head of business development.

Nguyen has been with Masan for nearly seven years, overseeing the group’s merger and acquisition deals and capital raising transactions, as well as supporting Masan Group’s overall strategy.

Having graduated from Harvard University, he worked for JP Morgan in New York and Vietnam, where he used to provide structured solutions to multinational clients, before he joined Masan Group.

At Masan Group, he assisted the CEO in executing the transformation of the company from a food firm into a leading private sector group. Nguyen has contributed substantially to the build out of the transaction and business execution platform by helping to raise over $1.5 billion in capital for the company, Masan Group said.

The company, under the direct supervision of Nguyen, has seen the acquisition of controlling stakes in Vietnam French Cattle Feed JSC and Agro Nutrition Company – to help form Vietnam’s second largest animal feed platform.

In addition, its subsidiary Masan Resources will list shares on the Hanoi Stock Exchange and aim to become one of the largest listed stocks on the bourse.

The establishment of the animal feed unit has helped Masan Group’s sales in the first quarter. They have increased by 52 per cent year-on-year to VND10.4 trillion ($479.26 million). Its profit after tax reached VND673 billion, while in the same period of 2014, it reported a loss of VND44 billion.

Mitsubishi to Buy 20% of SG commodity firm Olam for $1.09b

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Singapore headquartered commodity trader Olam International Ltd, majority owned by state fund fund Temasek Holdings, said it has reached a deal to sell 20% stake to Japan’s Mitsubishi Corp for S$1.53 billion ($1.09 billion).

The transaction will involve two separate deals.

Olam will issue 332.73 million new shares to Mitsubishi Corporation (MC) at S$2.75 per share, representing about 12.0% of the enlarged issued and paid-up share capital (excluding treasury shares) for S$915.0 million.MC will also buy 222 million secondary shares from the Kewalram Chanrai Group, representing 8.0% of the enlarged issued and paid-up share capital.

On completion of both these transactions, MC will become Olam’s second largest shareholder with a 20.0% shareholding in it.

The Kewalram Chanrai Group had founded Olam in Nigeria in 1989.

Post the deal, Temasek Holdings will remain Olam’s majority shareholder with a 51.4% holdings in it.

The deal price of S$2.75 per share represents a 29.3% premium over the weighted average share price for the 12 months and also exceeds the highest closing price during this period. Olam said the price was determined through a competitive bidding process, but did not reveal the names of the other bidders.

The Singapore based commodities trader said the deal sets a strong platform for a long term strategic partnership between both companies several mutually beneficial potential collaboration opportunities, including the setting up of a proposed joint venture in Japan to market specific products of Olam that can leverage MC’s strong distribution and retail presence.

“The partnership is based on a common view held by Olam and MC about the long term attractiveness of the food & agriculture sector. Both Olam and MC have a strategy of selectively integrating across the value chain in order to generate attractive returns and build long-term intrinsic value. To this end, MC and Olam will also explore potential strategic collaboration opportunities that could cover several of Olam’s key platforms including for example, Grains, Edible Nuts, Cocoa, Coffee, Packaged Foods and Rice,” the company added in a statement.

Last year, Singapore state fund Temasek had offered to take over Olam in a deal that valued the agri-business operating firm at at S$5.3 billion ($4.2 billion).

Olam’s Co-founder, Group Managing Director and CEO, Sunny Verghese said: “I am pleased to welcome Mitsubishi Corporation as a long-term strategic shareholder in Olam. We have been business partners for many years and share a lot of the same goals and beliefs about the future of our sector and the attractive long term prospects that it offers. I am confident that this partnership with Mitsubishi will provide several sources of synergy which will help accelerate Olam’s growth and harness its full potential.”

The Group CEO of MC’s Living Essentials Group, Takehiko Kakiuchi said: “Today is a memorable day for the partnership between Olam and Mitsubishi. In addition to raw materials procurement and product manufacturing in the Japanese market, Mitsubishi has been developing a vertically integrated model in distribution and retail. Combining our processing, manufacturing and downstream business experience with Olam’s extensive sustainable raw material supply platforms, we will transform the business into a globally sustainable model, both in qualitative and quantitative terms, while we build a value chain that is closely connected to the needs of customers.”

Olam’s Executive Director of Finance and Business Development, A. Shekhar, said: “This transaction is consistent with the objectives of the successful voluntary general offer that was concluded in May 2014 where we sought to change our shareholder profile and attract more long-term shareholders to our register.

“We see Mitsubishi as a strategic investor who is well aligned to our long-term growth strategy. This transaction will allow us to pursue selective value accretive investment opportunities that are presented by the current macro-economic uncertainty and depressed commodity market conditions.”

– See more at: http://olamgroup.com/news/olam-announces-strategic-partnership-mitsubishi-corporation/#sthash.PB7laqYE.dpuf

The deal price of S$2.75 per share represents a 29.3% premium over the weighted average share price for the 12 months and also exceeds the highest closing price during this period. Olam said the price was determined through a competitive bidding process, but did not reveal the names of the other bidders.

Ông Bùi Sỹ Lợi: ‘Lương tối thiểu tăng 10% là thích hợp’

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Từng đề xuất mức tăng tối thiểu 12%, song căn cứ theo tình hình thực tế, Phó chủ nhiệm Ủy ban Các vấn đề xã hội – Bùi Sỹ Lợi cho rằng lương tối thiểu vùng 2016 tăng khoảng 10% là phù hợp.

Quan điểm về mức tăng lương tối thiểu được Phó chủ nhiệm Ủy ban Các vấn đề xã hội của Quốc hội – Bùi Sỹ Lợi đưa ra khi tham dự Diễn đàn Kinh tế Mùa thu, diễn ra ngày 27/8 tại Thanh Hóa.

– Hội đồng Tiền lương quốc gia đã họp hai lần về tăng lương tối thiểu vùng nhưng chưa thể thống nhất do các bên bất đồng quan điểm. Xin ông cho biết ý kiến của mình về vấn đề này?

– Phòng Thương mại và công nghiệp Việt Nam (VCCI) muốn tăng lương dưới 10%, trong khi Tổng Liên đoàn lao động thì muốn hơn 16%. Hai bên đều có lý cả. Mức tăng hơn 16% là để đẩy nhanh tiến độ đảm bảo tiền lương tối thiểu bằng với mức sống tối thiểu của người lao động, theo Bộ luật Lao động. Trong khi mức dưới 10% là để đảm bảo giá thành hàng hoá sản phẩm phù hợp, doanh nghiệp tồn tại và phát triển.

Vấn đề ở đây là nếu chúng ta nâng lương quá cao lên thì lợi bất cập hại. Người lao động được cải thiện mức sống tốt hơn nhưng doanh nghiệp sẽ rất khó khăn vì giá thành sản phẩm đội lên. Trước đây, quan điểm của tôi là tăng khoảng 12%, nhưng trong bối cảnh này, tôi cho rằng điều chỉnh ở mức 10% là thích hợp.

daibieuLoi1-6945-1414021739-8781-1440668

Đại biểu Bùi Sỹ Lợi cho rằng Việt Nam đang đi nhanh so với các nước về tính toán nhu cầu của người lao động. Ảnh: Thanh Thanh

– Lý do vì sao ông lại thay đổi ý kiến như vậy?

– Qua phân tích các chỉ số nửa đầu năm nay, như chỉ số giá tiêu dùng CPI không quá 2%, chúng tôi thấy rằng nếu nâng mức tăng lương tối thiểu của 2016 là 10% thì có thể đảm bảo cho các doanh nghiệp tồn tại, giữ được việc làm cho người lao động, đảm bảo phát triển ổn định.

Người lao động có thể thiệt một chút nhưng ở mức 10% cũng đã đảm bảo phần nào nhu cầu và lộ trình là đến năm 2018, lương tối thiểu mới đảm bảo nhu cầu sống tối thiểu. Mức này theo tôi sẽ đảm bảo được sự hài hoà lợi ích của 3 chủ thể: người lao động, chủ sử dụng và Nhà nước.

– Ông có thể nói rõ hơn cơ sở cho con số 10%?

– Phân tích kỹ ta thấy 8 tháng đầu năm, lạm phát là 2%, nhưng phải dự phòng chỉ số này cuối năm tăng, có thể khoảng 4%. Trong khi mức tăng năng suất lao động khoảng 3,7-4% , và tôi cho rằng phải thêm 2% để khuyến khích tăng năng suất lao động, để khẳng định tiền lương là đòn bẩy tăng năng suất. Như vậy, 10% là hợp lý. Người lao động và giới chủ phải chia sẻ để cùng phát triển.

– Một điều dư luận quan tâm là các nghiên cứu, tính toán về tiền lương chưa được công khai kịp thời, ông nói gì về điều này?

– Tôi cho rằng nên mở rộng thành phần tham gia trong Hội đồng tiền lương quốc gia. Có những chuyên gia, các nhà kinh tế hiểu biết về tiền lương. Cũng nên có đại diện một số doanh nghiệp, người lao động. Như vậy, trong hội đồng sẽ tăng thêm tiếng nói, tăng phản biện, tác động lẫn nhau để có thể quyết định một mức lương mà xã hội chấp nhận được.

Ngoài ra, trong các đề xuất dự thảo về tăng tiền lương, tôi cho rằng, nếu lấy được nhiều ý kiến sẽ rất tốt để tham khảo. Nếu tôi là Hội đồng tiền lương, tôi sẽ lấy ý kiến của tất cả những người có liên quan, kể cả cơ quan truyền thông. Còn việc tiếp thu, phân tích sẽ do Hội đồng quyết định.

– Đang có ý kiến cho rằng cách tính nhu cầu sống tối thiểu chưa chính xác, dẫn tới những đề xuất mức tăng tiền lương luôn chênh nhau lớn. Quan điểm của ông ra sao?

– Nhu cầu sống tối thiểu của các quốc gia hoàn toàn khác nhau. Một số nước trên thế giới xác định, tiền lương tối thiểu là đáp ứng nhu cầu sống tối thiểu của người lao động và 50% nhu cầu khẩu ăn theo. Nhưng Việt Nam đang tính là nhu cầu sống tối thiểu của người lao động và 70% nhu cầu của người ăn theo, tức là ta tính toán cao hơn các nước trong khu vực. Như vậy là Việt Nam đi nhanh hơn.

Một đất nước năng suất lao động đang thấp, tiền lương đang thấp mà an sinh xã hội đi trước một bước thì chắc chắn sẽ có tác động. Chúng ta phải lưu ý điều này.

Tôi cũng cho rằng, cần phải tính lại. Hiện nay, người lao động Việt Nam cần gánh thêm khẩu ăn theo bao nhiêu là đủ? Nếu gánh cao quá trong khi năng suất lao động thấp thì sẽ có điểm nghẽn trong phát triển kinh tế, làm tăng trưởng chậm lại.