WFPMA

APFHRM UPDATE

Australia

Overview

According to the Australian Bureau of Statistics, there were 10.35 million Australians in employment as of February 2007, a rise of 2.9 percent at the seasonally adjusted rate on the January figure. At the same point in time, there were 502,000 Australians unemployed, a rise of 9.3 percent on the January figure. Australia’s labour participation rate in February was 64.9 percent, representing a 0.1 percent increase on January. The unemployment rate was 4.6 percent for the same period.

The annual Gross Domestic Product for the December 2006 quarter was $922, 637m, up 2.9 percent on the previous quarter. The All Groups Consumer Price Index rose 3.3 percent through the year to the 2006 December quarter.

Membership

As of February 2007 AHRI’s financial membership numbers were 10,588. That figure compares with 10,172 financial members at the same time in 2006 and amounts to a 4.1 percent increase over the year. That modest growth figure is a recruitment and retention challenge when it is likely that anywhere from 60-80 percent of HR practitioners and consultants in Australia are not members of the Institute. While AHRI will continue to offer only individual membership, the Institute is working on a corporate account model with a view to HR practitioners in those organisations taking up individual memberships under the account banner.

The AHRI Ltd National President Peter Wilson has also been interim CEO of AHRI Services Co Ltd (see previous WFPMA report) since September 2006 following the resignation of former CEO Jo Mithen. While continuing in the National President role, Peter Wilson stood down from the CEO role when Mr Serge Sardo took up the permanent CEO appointment on March 26.

Activities

AHRI has generated a number of professional development, research and corporate relations initiatives during the year so far, including:

• Four successful HR Practices Days in the capital cities of Sydney, Melbourne, Brisbane and Hobart were conducted during February. These events were addressed by a range of expert speakers beginning with a breakfast and followed by practice-based sessions all day. Delegates could choose one-off sessions of the full program. AHRI’s Queensland Regional Council has run Practice Days successfully for a number of years – it was a first for the other states.

• The 5th results of the longitudinal Human Resources Competency Study, conducted since 1998 by Professors Dave Ulrich and Wayne Brockbank of the Ross School of Business at the University of Michigan, are near completion. Dave Ulrich will attend the AHRI national convention in Sydney on June 4-5 to present the Australian findings to AHRI participants and others.

• With a major Australian law firm as partner, AHRI has commissioned Deakin University to conduct a two-year research study of Australia’s 2005 workplace relations legislation, Work Choices. AHRI will survey its database to discover the extent to which members’ organisations are taking up the provisions of the legislation, whether they believe it’s good for business and whether they think it’s achieving the government’s objectives. The first survey is due to take place in April and the first set of results are due for release in June. Workplace relations will be a significant federal election issue during 2007 and the AHRI results are expected to be of interest to government and media.

• AHRI’s 2006-07 Australian Remuneration and Benefits Survey Report was released in February. A total of 1,166 respondents contributed to the survey which contains information from public and private sector HR practitioners and consultants at a number of levels.

• AHRI’s corporate relations department has signed up a workplace health group, Australian Health Management, as its major 2007 convention sponsor.

• The Federal Government has again agreed to sponsor AHRI’s 2007 Innovation Award, this year focusing on “Phased Retirement Initiatives”, an idea the government wants employers to take up as part of their mindset during these times of labour and skill shortage. The individual AHRI HR Practitioner and HR Consultant Awards initiated in 2006 were well received and will be offered again in 2007.

• After five year as editor, Professor Robin Kramar has handed editorship of AHRI’s Asia Pacific Journal of Human Resources over to Co-Editors Professor Malcolm Rimmer and Dr Timothy Bartram from LaTrobe University. Their first issue of the refereed journal will come out in August 2007.

• AHRI is near completion of a major database and website redevelopment project that will result, when completed, in a number of value-adding improvements to the member offering, especially with respect to professional recognition, continuing professional development and the conduct of events. The website is due for launch in June 2007.

HONG KONG Report

PART I)

Brief General Economic Profile of the Country / Region (GNP, GDP, CPI, Unemployment Rate etc.) – abstracts from government statistics

CHINA

• China achieved real GDP growth in:

• Foreign direct investment (FDI) in China dropped slightly in the first five months of the yea2005r, but within a reasonable fluctuation. China attracted US$22.4 billion of FDI over the period, a 0.79 per cent% decrease from the previous year, according to statistics published by the Ministry of Commerce.

Unit: US$100 million

(Jun 20; China Daily)China's consumer inflation rate (CPI) eased to 1.8 percent in Apr 2005 for the lowest figure so far this year. The rate was down from a year-on-year rise of 2.7 percent in March.

CPI in China (Jan 2004 – Apr 2005)

.

 (A) GDP

In the fourth quarter of 2006, the Gross Domestic Product (GDP) increased by 7.0% in real terms over a year earlier, compared with the 6.7% increase in the third quarter. For 2006 as a whole, GDP recorded a growth of 6.8% in real terms over 2005.

Overall, the Hong Kong economy is expected to attain solid and broad-based growth of 4.5 – 5.5% in real terms in 2007.

(B) CPI

For 2006 as a whole, the Composite CPI was on average 2.0% higher than in the preceding 12 month period.  The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.7%, 2.1% and 2.2%.

Consumer price inflation has been creeping up over the past two years amidst the sustained brisk expansion of the economy. Looking ahead, the underlying cost pressures are likely to build up slightly further in 2007, as continued economic expansion at above-trend pace is bound to add more pressure on local costs, and as a weak US dollar and renminbi appreciation would give rise to higher imported inflation. Yet with wages still showing a modest increase and well matched by notable productivity improvement, and with the pressures from rental increase also receding lately, the risk of a significant pick-up in consumer price inflation does not seem that high in 2007. The substantial ease-back in oil prices and the introduction of natural gas in towngas production will also bring down energy-related prices. Coupled with the various one-off factors, including the Budget measures announced for 2007/08, the one-month public housing rental waiver in February, the cut in public housing rentals and the granting of government subsidy in pre-primary

education later this year, which would lower the Composite CPI level, for 2007 as a whole, the Composite CPI is forecast to increase by 1.5%.

.

The notable growth momentum of the HK economy continued into the first quarter of 2005, with GDP growing solidly further by 6.0% in real terms, following a strong 8.1% growth in 2004.  On a seasonally adjusted quarter-to-quarter comparison, GDP expanded for the seventh straight quarter, by 1.5% in real terms in the first quarter of 2005.

(C) Unemployment Rate

Unemployment trended downward during the course of 2006, both in absolute and relative terms. The numbers unemployed dropped to 153 700 in the fourth quarter, below the 155 000 mark for the first time since mid-2001, and the seasonally adjusted unemployment rate slipped to a near six-year low of 4.4%.

Analysed by educational attainment, workers with better educational qualifications were still the group benefiting more from the improved employment situation. In 2006, the unemployment rates for persons with tertiary and matriculation education were 2.9% and 3.6% respectively, markedly below those of 5.4% and 6.7% for workers with secondary education and with primary education or below.

The underemployment situation, whilst moving along a more erratic path, also improved for the year as a whole. The underemployment numbers and rate averaged 86 600 and 2.4% in 2006, below those of 96 300 and 2.7% in 2005. Conceivably, this was due to more part-time employees having been absorbed into full-time work. Yet comparing end-2006 with a year earlier, the underemployment rate stayed unchanged at 2.4%, whilst the numbers underemployed increased slightly to 87 600 from 86 800.

Part II)

Hong Kong's GNP increased by 5.2% in real terms in the first quarter of 2005 over a year earlier. This was lower than the corresponding increase of 6.0% recorded for GDP in the same quarter.

The labor market improved notably further along with the economic upturn, with total employment rising to an all-time high in the first quarter of 2005.  The seasonally adjusted unemployment rate fell to a 43-month low of 5.7% in the three months ending May 2005.

According to the Composite CPI, overall consumer prices rose by 0.5% in April 2005 from a year earlier, smaller than the 0.8% increase in March. The smaller year-on-year increase in the Composite CPI in April 2005 than in March 2005 was mainly attributable to moderated increases in the charges for package tours and in the prices of jewellery and basic foodstuffs.

Issue of "Diversity" in the country.  Is there a conscious effort to encourage diversity?  If so, why?   What is the level of diversity in the country?  What are the special issues in managing diversity in the country?Latest HR Trends in Hong Kong

Diversity doesis not appear to be a big issue to HK companies yetIt’s not a big issue in HK yet, but although some multi-national companies may have something put in place on the matterMNCs may have something in place.

HSBC, one of our last year’s Annual Conference speakers, said the bank believed that the world is a rich and diverse place in which respect and from which there is great deal to learn. e.g. They take a multi-jurisdictional viewpoint on legal aspect as there are significant variations between regions/countriesThe subject matter was first discussed at the HKIHRM Annual Conference last year by HSBC. following HQ’s policy – pls make reference to sharing of HSBC in 2004 AC on the subject Legislation in HKthat helps promote to drive a more diverse workplace: There are already some non-discriminatory related ordinances (Sex Discrimination Ordinance, Disability Discrimination Ordinance & Family Status Discrimination Ordinance) in HK.

The Government announced in June 2003 its decision to legislate against racial discrimination and to issue a consultation paper to seek public views.

The Government is proposing to enact a Racial Discrimination OrdinanceThe Institute has submitted the members’ views on the subject to the Home Affairs Bureau last Dec::

The HR community, as a profession, is committed to promote a non-discriminatory workplace by means providing the right policies, adopting best practices and educating managers, employees and the community in general.

While the profession supports the proposed legislation on racial discrimination, we are of the opinion that the law has to be specific rather than vague or open to misinterpretation, and to strike the right balance between facilitating successful business operations and protecting the rights of all parties. The profession is also concerned that an effective mechanism should be put in place to ensure proper enforcement of any proposed law.

(A) Manpower Trends – Employee Turnover Rate, Job Vacancy Rate

While the employee turnover rate remained high in Hong Kong, job vacancies also reached a record high during last year, according to the Fourth Quarter 2006 Survey of Manpower Statistics conducted by the Hong Kong Institute of Human Resource Management (HKIHRM).

Turnover Rates

The overall turnover rate for the fourth quarter of 2006 was 2.66%, 0.57 percentage points lower than in the previous quarter, but 0.33 percentage points higher than in the same period in 2005. For the year 2006, the overall turnover rate reached 11.94%. The retail industry recorded the highest yearly turnover rate (24.49%), followed by the business/professional service (21%) and wholesale, import/export and trading (20.76%) sectors.

Vacancy Rates

The overall average vacancy rate for the fourth quarter of 2006 was 2.71%. This figure was 0.38 percentage points lower than the figure recorded for the third quarter of 2006 but 0.2 percentage points higher than that recorded for the same period in 2005. For the year 2006, the overall average vacancy rate reached 2.86%, and was also the highest rate recorded over the last three years. The financial services/banking/insurance sector recorded the highest annual vacancy rate on average (5.07%), followed by the telecommunications (4.59%) and retail (4.26%) sectors.

Although a year-end slowdown in the recruitment rate was recorded as expected, the Institute anticipated that the employment market would continue to remain active in 2007. Riding on strong economic growth, companies were likely to seize further businesses-development opportunities, which will result in more job vacancies in the market. At the same time, they were also facing considerable challenges in retaining the required talents.

A Summary of Turnover Rates and Vacancy Rates (Year 2003 – 2006)

%

Turnover Rates and Vacancy Rates in 2006 (by Business Sector)

%

(B) Pay Trend

According to the 2006 Pay Trend Survey conducted by the Hong Kong Institute of Human Resource Management (HKIHRM), 98% of Hong Kong companies offered pay increases to their employees in 2006, while only 1.9% made an overall zero adjustment. No company opted for an overall pay reduction. In terms of number of employees, 77% of employees covered by the survey received a pay raise. Only 0.3% of employees suffered a pay reduction. As a whole, an overall upward pay adjustment averaging 2.4% was recorded last year. 

All business sectors offered positive pay adjustments this year. The highest adjustment was found in the Banking sector, at 4.4%. This was followed by the Shipping / Terminals and Oil / Chemical sectors, where adjustments of 3.2% and 3.1% respectively were recorded. No sector reported an overall pay freeze or pay reduction in 2006.

Companies in general also project a more optimistic outlook for pay adjustments in 2007.  93.5% of the surveyed companies forecasted an overall budgeted pay increase, with the most common increase projected at 3% or above. No company projected a pay reduction.

Base Pay Adjustment to All Employees (Year 1997 – 2006)

Comparison of Base Pay Adjustments – by Company (2001 to 2006)

(C) Training Needs

Training for Different Levels of Employees

According to the 2006 Training Needs Survey conducted by the Hong Kong Institute of Human Resource Management (HKIHRM), there are not any significant differences among the top five most important training topics for senior management in the recent four-year records, with ‘People Management / Leadership’ and ‘Change Management’ continue to enter the top five listing. However, for middle-management staff, ‘Resolving Conflict / Negotiation Skills’ for the first time in four years is now among the top five most important training topics, while ‘Communication Skills’ is again one of the most vital subjects on the training curriculum.

Meanwhile, ‘Priorities / Time Management’ continues to be one of the top five most important training topics for supervisors and officers. For frontline staff, in addition to language skills, ‘Emotional Intelligence / Stress Handling’ has become one of the top five training topics for frontline staff.

Investment in Training

80% of the surveyed indicated that they have a training budget in 2006, and that the average proportion of training budget to total annual base salary is 2.1%. The figure is 0.3 percentage point lower than that recorded in last year’s survey. The survey results also revealed a downward trend on the staff training budget since 2003 (from 3.4% in 2003 to 2.1% in 2006). Moreover, the average number of training days per employee per annum is 3.1 days in 2006. Some 54% indicated that their employees have less than three training days per annum on average, while 43% of companies provided their employees with three to ten days training per annum.

Expressing concerns about the training budget trends and survey findings on training days, the Institute believes that companies should dedicate more resources to provide training for employees in order to become more competitive.

Top 5 most important training topics to different levels of employees in Hong Kong in 2006

 Trend of Training Budget (Year 2003 - 2006)

Training budget as a % of total annual base salary
Average number of training days per annum per employee

(D) HR Challenges

Recruitment and Retention

As revealed by the Institute’s recent study 2006 HR Challenges in a Reviving Economy, increased employee turnover and increasing difficulty in staff retention are the current major HR challenges faced by companies. Over 65% of respondent companies from 14 business sectors experienced an increase in monthly turnover rate over the last 12 months (August 1, 2005 to July 31, 2006) compared with the year before. The top three job roles with highest turnover were “Accounting, banking and finance”, “Sales and marketing” and “HR and administration”. Common characteristics of the high turnover employees in these job roles are: aged 23 – 34, with one to less than three years’ length of service, and earning monthly pay of between HK$10,000 and HK$20,000.

The 2006 study mentioned above also showed that over 75% of respondent companies had taken action or had plans to address the dual challenges of staff retention and high turnover. Among these companies, 21.8% said they had taken pay- and bonus-related action. The most common pay- and bonus-related action was “providing special catch-up for selected staff”, “offering overall base pay adjustment” and “providing special one-off bonus to all / selected staff”.

Legislation on Minimum Wage

As to whether a statutory minimum wage and standard working hours should be introduced in Hong Kong, views within different sectors of the community remain diverse. In October’s Policy Address, Chief Executive announced that the Government considers that the pragmatic approach at this stage is to provide wage protection through non-legislative means. Together with the business community and the labour sector, the Government had launched a Wage Protection Movement for employees in the cleansing and guarding services sectors. The Government actively encourages corporations and contractors to join this Movement to ensure that employees in these two sectors will receive wages not lower than the average market rate. These employees will enjoy the same protection as their counterparts employed under Government outsourced service contracts. The government monitors the effectiveness of the Wage Protection Movement and conduct a comprehensive review two years after implementation. If the review finds that the Movement has failed to yield satisfactory results, it will set out to prepare for the introduction of legislation for a minimum wage in the cleansing and guarding services sectors.

However, unions keep voice concern over the effectiveness of the Movement, and in March 2007 a motion was passed by the Legislative Council’s manpower panel, urging the government to complete minimum-wage legislation by the end of the 2007-08 legislative session.

Racial Discrimination Legislation

Hong Kong's first attempt to outlaw racial discrimination ran into a storm of concern and criticism after the announcement on Dec 1, 2006. The Race Discrimination Bill makes discrimination, harassment and vilification on the grounds of race unlawful in six areas, including employment. It also includes a wide range of exemptions.

Exemptions to bill --

• Differential treatment is allowed for expatriate staff on the basis of skills, experience and competitiveness with overseas packages, but not race.
• Existing differential treatment on local and overseas terms of employment
• Three-year grace period for companies with no more than five employees
• Preference for a particular race when hiring domestic helpers
• Hiring for jobs where race is a necessary occupational qualification

Ongoing arguments will focus on how to strike the right balance between facilitating successful business operations and protecting the rights of all parties. 

Debate on the Draft Labor Contract Law in Mainland China

Mainland China's top legislature, the Standing Committee of the National People's Congress (NPC) released the first draft of the labor contract law to the public on March 21, 2006. The apparent aim of the proposed new PRC Labour Contract Law is to improve the rights of employees and the initiative seems to be driven, at least in part, by concerns for the protection of factory workers and migrant workers. However, many companies (both domestic and foreign-invested) are concerned that the proposed new law will be more restrictive on employers and increase employment costs in what some commentators have called a “return to the iron rice bowl”, with employees virtually guaranteed a job for life. The HKIHRM also received views from members with China responsibilities on the draft law. Major areas of concerns are: termination of employment contracts, probation arrangements, change of employment contract, performance management, influencing power of unions or labor representatives, restriction on changing of jobs amongst competitors, HR outsourcing, etc.

The comments generated in response to the first draft led to considerable internal discussion amongst PRC legislators. On December 24, 2006 the latest draft (“Second Draft”) was put before the Standing Committee of the National People’s Congress. It has not been made officially public, although copies have become available. The Second Draft is significantly different from the First Draft as a number of the apparently contentious provisions have been either removed or altered.

There will undoubtedly be further internal discussion and may yet be further changes. However, sources are suggesting that the new PRC Labour Contract Law is expected to be passed and become effective during the course of 2007.

PRC Individual Income Tax Self Reporting Requirements

The State Administration of Taxation (“SAT”) recently issued a provisional regulation to provide guidance for individuals to file their own annual income tax returns. According to the provisional regulation, an individual taxpayer must file an income tax return in the following circumstances:

• The individual’s annual income exceeds RMB120,000 (unless the individual is not a permanent resident in China and has resided in China for less than one tax year);
• The individual has two or more sources of employment income in China;
• The individual receives income from outside China (for those who is a permanent resident in China or those who is not a permanent resident in China but has resided in China for one year within a tax year);
• There is no withholding agent for income received by the individual; or
• In any other circumstances stipulated by the State Council.

Individuals who derive annual income of the above specified kinds should make annual IIT reporting no later than March 31 of the subsequent year. Since this requirement is effective
from January 1, 2006, the first IIT self reporting should be completed by March 31, 2007.

Frequent travelers to China appear to be caught by the regulation if they do not have any withholding agent in China to report their IIT. Other concerns include the uncertainty on whether expatriates staying in China for more than one full year but less than five full years are required to report non-employment income sourced from overseas such as personal investment incomes.

Part III)
Update on the HR Institute:

a. Membership
With 3.2% net growth and a 92.3% retention rate in membership achieved in the 2006/2007 membership year, the Institute now has over 4,100 members, including over 460 corporate members.

b. Relocation of HKIHRM Office
i. In May 2005, the Secretariat Office had relocated to 15/F., 68 Yee Wo Street, Causeway Bay, Hong Kong
c. New President of HKIHRM
i. Mr Lai Kam-tong, Group Human Resources Manager - Remuneration & Benefits of CLP Holdings Limited, has been elected President of the Hong Kong Institute of Human Resource Management (HKIHRM) for the coming year.
d. Accreditation:
i. The Institute’s Accreditation Initiative aims at setting standards for HR practitioners, and recognizing their professionalism.
ii. First stage of the initiative consists of 2 parts: training + assessment on Employment Law, and CPD scheme.
iii. Pilot run of the Employment Law training will be on August 2005, while the proper training + assessment and the CPD scheme will be staged on early 2006.
The Institute has established an HKIHRM Accreditation Roadmap in 2006, and has been making good progress in developing the training and assessment part of the system. A professional membership scheme is also expected to be rolled out by 2009/2010 which will assess professional members more rigorously prior to their admission. The Institute will keep communicating with our members re the latest progress.

e. Upcoming Events Relocation of HKIHRM Office
i. In May 2005, the Secretariat Office had relocated to 15/F., 68 Yee Wo Street, Causeway Bay, Hong Kong.
f. Conference
HKIHRM/SCMP People Management Awards 2007
Open for entry in April 2007
- HKIHRM 27th Annual Conference & Exhibition
November 28-29, 2007
Hong Kong Convention and Exhibition Centre
- HKIHRM 30th Anniversary
Celebrating events throughout the year

(Latest updates on the HKIHRM events please go to www.hkihrm.org

Celebrating events throughout the year

(Latest updates on the HKIHRM events please go to www.hkihrm.org

New Zealand Report

Membership

HRINZ currently has in approximately 3400 individual members (3100 at previous report). This has exceeded the Institute’s objectives. We now have a consistent net annual growth of about 15 per cent. Our membership density now represents approximately 45 per cent of the total potential pool of HR practitioners operating in New Zealand. HRINZ membership is based on individual subscription. The Institute dos not offer corporate or organisational membership.

The executive of HRINZ has recently changed. The new office holders are:

• National President:                        Mr William (Bill) Shields – AFHRINZ (March 2009)

• National Vice President:              Ms Kristin Cooper - AFHRINZ

• National Vice President:              Mr Jim Pope - FHRINZ

• Immediate Past President:          Mr Geoff Summers - FHRINZ

Activities

HRINZ is experiencing another busy year, with steady membership growth and Professional Development Programmes being delivered in both the North and South Islands. Key programmes offered by HRINZ in the first half of 2007 include:

• Due to the increase in membership, a new branch has now been created in Nelson and plans are well advanced for a stand-alone branch in South Auckland. New groups are also meeting in provincial areas (Invercargill and Hawke’s Bay).

• The 2006 HRINZ HR Awards (presented in February 2007) included the inaugural presentation of a new award – Young HR Practitioner of the Year (won by Ms Connie Nicholson of Christchurch) as well as the established categories of HR Initiative and HR Person of the Year (winners Toll NZ and Mr Teva Loos). More categories to recognise HR excellence in New Zealand are also planned for the 2007 awards.

• The 2007 HRINZ National Conference takes place in Wellington from 5 to 7 September. The theme of this year’s conference is: innovation@work. HRINZ has identified three areas of interest which are part of innovation – creativity, diversity and productivity – and we will be looking in depth at each of these topics. This conference will provide an overview of innovation and the role and importance it plays in taking organisations from mediocre, to good, to great. From talent attraction and retention through to market share and stakeholder returns, innovation is a key ingredient in our future.

   

• Professional (Accredited) Membership is steadily increasing as a result of the streamlined online application process. The Institute now has around 300 Accredited Members. This represents about  per cent of total HRINZ membership.

• The Institute is increasing awareness of Specialist Professional Membership. Members can now apply for this grade of membership with specialisations in Employment Relations, Recruitment, Health & Safety and Learning & Development.

• The Institute has a Strategic & Annual Business Planning Process and has a number of sub-committees working on projects. The Career Development Project [CDT] team is working on enhancing the membership benefits.

• The CDT has initiated a broker arrangement with coaches all around New Zealand who will provide coaching services to our Members for a discount.
• The CDT is also working on a Log Book for members to maintain, for the purposes of their career development, applying for Professional Membership and to present to prospective employers.
• The Competency Review Group is examining the HRINZ Professional Framework with a view to possibly expanding competencies.

• The Gradings Panel will shortly announce the appointment of a new convenor and is making inroads to increase professional membership within the Institute.

• The results of the Institute’s 2006 HR Remuneration Survey Project were made available to Members.

• HRINZ is leading the development of an Asia Pacific Federation of HR Management website with support from AHRI, to facilitate regional collaboration and networks. There have been a delay in progress while the restructuring of AHRI  is settled and progress should resume shortly

• HRINZ has also invested heavily in its infrastructure and recently confirmed the purchase of a permanent home for its National Office in Wellington. HRINZ has purchased the first floor of a soon-to-be constructed office/accommodation building on Willis Street, not far from its current leased offices. The Institute continues to be recognised as one of the most progressive, professional and desirable organisations of its type in New Zealand.

Household Labour Force Survey: December 2006 quarter:

Highlights

• Seasonally adjusted employment decreased (by 2,000) to 2,115,000.
• The seasonally adjusted unemployment rate decreased to 3.7 percent.
• The seasonally adjusted labour force participation rate decreased to 67.9 percent.
• Seasonally adjusted total actual hours worked per week increased 0.5 percent.

Source: Statistics New Zealand

Philippine Report

2007 Philippine Economic Forecast

Exports growth for January 2007 soared to 27.3 percent to US$4.167 billion compared to year-ago levels, according to a preliminary report released by the National Statistics Office (NSO) – which is by far the best performance in seven years.

This is the highest single-month increase since September 1999, coming from a decline the previous month.  According to the NSO, despite the contraction in the shipment of major commodity groups like agro-based (-18.0%) and petroleum products (-21.6%), total exports grew as forest (231.4%) and mineral products (125.2%), as well as manufactures (17.4%) posted hefty gains. The rebound in electronics also lifted manufactured products and mineral products surged due to copper metals.

The NSO also reported that electronic products rebounded and grew by 14.5 percent to US$2.4 billion from a slump the previous month. Semiconductors alone increased by 20.0 percent, reflecting the region-wide upsurge in electronics exports.

Meanwhile, mineral product exports grew by 125.2 percent, largely due to the rapid increase in copper metal (223.3%) and concentrate (139.1%) shipments, as copper prices in the world market rose by 19.76 percent higher year-on-year. Other mineral products such as gold (71.9%), iron agglomerates (28.7%), and chromium ore (131.7%), also contributed significantly to the expansion.

The United States continues to be the country’s top export destination with a 16.8-percent share followed by Japan with 14.6 percent. China, Hong Kong and Taiwan, meanwhile posted the largest increases in January with growths rates of 89.0 percent, 113.2 percent, and 170.3 percent, respectively, pushing them to the top five.

In another note, more foreign investors are now choosing the Philippines as an investment area noting that net foreign investments increased almost five-fold from 2003-2006.

Bangko Sentral ng Pilipinas (BSP) have shown that from a total of US$491.0 million in 2003, net foreign direct investments (FDI) posted a hefty US$2.345 billion in 2006.

The government is optimistic that the signing of the Japan-Philippine Economic Partnership Agreement (JPEPA) will facilitate more investment flows from Japan to the Philippines.  Unlike other free trade agreements, the JPEPA goes beyond market access which includes provisions to improve economic facilitation measures which cut across areas such as government regulations and controls, business efficiency, transportation, ICT and the financial sector. These involve simplification and harmonization of customs procedures, the use of ICT, and paperless trading, along with measures to improve the business environment and competition policies.

Despite political conflict which hounded the current administration since 2001 did not undermine macroeconomic and social stability.

People Management Association of the Philippines (PMAP) Updates

• PMAP’s newly-elected President is Mark Go of Cypress Manufacturing Limited.  The 2007 Officers and Directors of the institute were inducted last January 2007 during the institute’s general membership meeting.  This year’s theme is “Exploring Beyond,  Delivering Results.”

• The association’s change of name to “People Management Association of the Philippines” (from Personnel Management Association of the Philippines) was announced during the January 2007 general membership meeting.  The change in name was brought about by the had its soft announcement during the January General Membership Meeting and Induction of 2007 Officers and Members.

• Last January, PMAP released a position paper regarding the Senate Bill on the Wage Increase and was published in two leading broadsheets in the country.

Here, an excerpt from the position paper:  “Instead of imposing an across the board wage increase, PMAP strongly recommends that the State focus on developing an environment that is conducive to business and economic growth. While a legislated wage increase will accomplish only short-term goals, a healthier and more productive business environment provides the material for lasting employee benefits.”

• The 1st IiP Facilitators Workshop was held last 21-22 February attended by 13 participants (private institutions in the Philippines: Convergys, Moog Controls Corp., Littlefuse Phils., TUV SUD Phils., TNT Express, Inc., Manila Memorial Park among others).  One of the reputable hospitals in the country, The Manila Doctors Hospital has finally inked its commitment to achieve IiP recognition. Their IiP journey started with the diagnostics on 26 February. Manila Doctors targets to be the 1st recognized Investor in People in the health sector, when they achieve the recognition in September.

• The Philippine Council of Deans and Educators in Business (PCDEB), Commission on Higher Education (CHED), and Working Industry Group: People Management Association of the Phils. (PMAP), Philippine Stock Exchange (PSE), Productions/Operations Management Association of the Phil. (PROMAP), Council of Economics Educators (CECON), Philippine Deposit Insurance Corp (PDIC), Philippine Marketing Association (PMA), League of Corporate Foundation (LCF), Financial Executives Institute of the Philippines (FINEX) had its first meeting last January at the PMAP Center.  This collaborative way aims to bridge the gap between the industry and academe to address mismatch in the industry.  One of the initiatives is to suggest topics for the syllabi so that the schools/universities will give greater emphasis on skills/info which the students can fully utilize upon entry into the corporate environment.  A Business-Education Summit is temporarily slated in October to be participated by various association, administrators and teachers.

• The Annual Conference will be held on 26-28 September in Cebu City.  This year’s theme is:  “People Deliver! Linking People and Results”.

• The “Employer of the Year”, “Personnel Manager of the Year” and the “Personnel Program of the Year” awards will be launched this March during the General Membership Meeting.

Singapore Report

INTRODUCTION

This report aims to provide useful information on Singapore's Economic and Employment climate as well as insights on the challenges and issues the HR Profession is facing in Singapore. The report also contains information on the Singapore Human Resources Institute membership statues and its activities.

I             ECONOMIC PERFORMANCE

(Source: Ministry of Trade and Industry, Performance of the Singapore Economy in 2006)

The Singapore economy grew by 7.9% in 2006, up from 6.6% in 2005. The strong economy generated record employment gains which led to an improvement in the unemployment rate to an eight-year low in 2006.  Growth was led by the financial services and manufacturing sectors.

The manufacturing sector grew 11.5% in 2006, higher than the 9.5% gain in the 2005. This was supported by stronger performances in the transport engineering, biomedical manufacturing and precision engineering clusters.

The construction sector continued to recover, growing strongly by 2.7% in 2006, up from 0.7% in 2005.

The services producing industries expanded by 7% in 2006 up from 6.4% in 2005.

Table 1: Sectoral Performance

(Percentage change over corresponding period of previous year)

II            LABOUR MARKET REPORT

(Source: Singapore Ministry of Manpower, Labour Market Report 2006)

Employment 

Total employment for the whole of 2006 rose to an all-time high of 176,000, surpassing the previous year’s gains of 113,300. This brought the total number employed to 2.49 million as at December 2006.

All major sectors registered employment growth in 2006. The bulk of the gains continued to come from the services (112.700), with manufacturing also posting increases (41,600). Following the recovery in building activities, the construction sector expanded its workforce for the second consecutive year, with an addition of 20,500 workers, compared with 8,700 in 2005.

Unemployment

The seasonally adjusted overall unemployment rate was 2.6% in December 06, a slight decline from 2.7% in September 06. Despite the recent increase in resident labour supply, the resident unemployment rate held steady at 3.6% (seasonally adjusted) since June 06, but is slightly higher than 3.4% in December 05. An estimated 69,600 residents were unemployed in December 06. The seasonally adjusted figure was 68,600.

For the whole year of 2006, unemployment averaged 2.7% (overall) and 3.6% (resident). This is a significant improvement from 3.1% (overall) and 4.1% (resident) in 2005 and the high of 4.0% (overall) and 5.2% (resident) experienced during the economic slowdown in 2003. The last time that unemployment was lower was in 1998. On average, 67,500 residents were unemployed in 2006, down from 74,900 in 2005 and the high of 91,200 in 2003.

Slightly over one fifth (22% or 15,100) of unemployed residents had been looking for work for at least 25 weeks, resulting in a long-term unemployment rate of 0.8% in December 06. While this is slightly higher than 0.7% in December 05, the long-term unemployment rate is significantly lower than the 1.2 to 1.5% recorded in 2001 to 2004 for December periods.

Retrenchment

Private sector establishments, each with at least 25 employees, laid-off 12,359 workers in 2006. While this exceeded the 10,294 laid-off in 2005, it is only about half the number retrenched in 2001 (25,838).  Among retrenched residents, an average of 66% secured re-employment within 6 months after retrenchment in 2006. This is the highest registered in the post-Asian crisis period and significantly above the 61% in 2005.

Job Vacancies

Buoyed by sustained economic growth, the private sector registered 28,400 job openings in December 06, a considerable jump of 43% from a year ago (19,800)2. This also marked an increase of 10% over the quarter (25,700), contrary to the usual seasonal decline in vacancies expected at the end of the year. 

PMETs continued to account for the largest share in openings (11,600 or 41%), followed by production & transport operators, cleaners & labourers (9,000 or 32%) and clerical, sales & service workers (7,800 or 27%).

Labour Turnover

Labour turnover increased from a year ago. The average monthly recruitment rate rose from 2.7% in 2005 to 3% in 2006. The average monthly resignation rate was unchanged at 2.1% in 2005 and 2006.  All three main occupational groupings saw higher recruitment rate. They are the Professional, Managers, Executives & Technicians (PMET), Clerical, Sales & Service, and Production Operators, Cleaners & Labourers.

Earnings & Productivity

Labour productivity rose by 1.2% in 2006, down from 2.1% in 2005. The moderation was due to stronger employment creation compared to the previous year, as employers expanded their headcount to cope with current and anticipated increase in output.  Following the moderation in productivity gains, the overall unit labour cost (ULC) fell by a smaller 0.5% in 2006 than the 1.4% drop a year ago.

Employment Outlook for 2007

In anticipation of new production lines later in the year, pharmaceuticals were the most upbeat about hiring in Q1 07, with a net balance of 81% of firms expecting to increase employment. All manufacturing industries forecasted an increase in employment in Q1 07, except petroleum and medical technology industries which expected employment to be unchanged.  Among the service industries, a net weighted balance of 18% of service establishments are expecting to raise employment in Q1 07.

III           SINGAPORE BUDGET 2007 INITIATIVES

Budget 2007 revealed various measures to make Singapore the best location for businesses to start, grow and globalise.  Supplementing these measures are assistance schemes to help businesses cope with rising business costs. The two main schemes are the Central Provident Fund (CPF) adjustments and the Goods & Services Tax offset package.

Changes in Central Provident Fund (CPF) and Workfare Income Supplement Scheme (WIS)

To help the majority of Singaporeans save more for their future needs, the Government will raise the employer component of CPF contribution rates by 1.5%, to 14.5% from 1 July 2007. 

This CPF increase will not apply for older low wage workers who are above 35 years old and earning a monthly wage of S$1,500 or less.  For this group, the Government will instead reduce their CPF contributions.  A reduction in employer CPF contributions will help to improve their employability and a reduction in employee CPF contributions will increase their take-home pay. To complement these CPF changes, the Government will implement a new Workfare Income Supplement Scheme (WIS) which will make up for the reductions in their CPF contributions.  The WIS and the CPF changes will provide more incentives for older low wage workers to work and, for employers to hire them.

Figure 1: Employee CPF Contribution Reduced

Figure 2: Employer CPF Contribution Restructured

GST Offset Package

The Government has been announced that from 1 July 2007, the Goods and Services Tax (GST) rate will be increased to 7% from the current 5%. Globalisation has created many opportunities but also poses new challenges for Singapore. In particular, income gaps are widening and Singaporeans in the lower tranche of the income group are finding it more difficult to cope. Raising the GST will generate extra resources to help the lower income, the elderly as well as invest in the future and create more opportunities for all Singaporeans to do well and prosper.

The Government has put in place a GST Offset Package to help Singaporeans with the increase in GST. The Offset Package will cost the government S$4 billion over five years and include schemes such as GST credits, senior citizens’ bonus, top-ups to Post-Secondary education accounts, utilities and rental rebates, property tax rebates, assistance for low-income families with children, assistance for pensioners, public transport fund and additional subsidies for healthcare, education and service and conservancy charges. Most of the schemes will benefit the low-income Singaporeans.

IV NEW GOVERNMENT INITIATIVES IMPACTING EMPLOYERS AND HR

Fair Employment Practices

To support the adoption of fair employment practices, Singapore Press Holdings (SPH) will be implementing the revised Tripartite Guidelines on Non-Discriminatory Job Advertisements released by the Tripartite Alliance for Fair Employment Practices (TAFEP) in January 2007.

According to the Tripartite Guidelines on Non-Discriminatory Job Advertisements, employers should state selection criteria that are relevant to the job, such as qualifications, skills, knowledge and experience clearly in job advertisements. Employers are encouraged to implement the tripartite guidelines to select the best candidate for the job based on the job requirements. Employers should provide equal opportunity in the selection of candidates regardless of age, race, gender, religion, marital status, criminal record and disability.  In the case of female candidate who is in family way, employees should also extend the same opportunity to the candidate and consider her job suitability. To enforce the rule, SPH would screen advertisements, give advice and help to re-word them if necessary.  By doing so, TAFEP and SPH aim to minimise instances of job advertisements that are deemed to be discriminatory.

The guidelines are an extension of similar measures in 1999.  Then, the guidelines stated that the advertisements could not specify criteria such as age and race.  Some employers then got around by advertising for “young” rather than “below-40” workers. The new guidelines have been refined further so that the advertiser cannot infer the age through an alternative description such as “young”.

The Tripartite Fair Employment Guidelines will be released at the Singapore HR Congress 2007 – 3 May.

Programmes to Promote Employment of Persons with Disabilities

The Ministry of Community Development, Youth and Sports (MCYS) has announced new programmes and enhancements aimed at promoting the employment of persons with disabilities (PWDs). These programmes and enhancements follow the recommendations of the Enabling Masterplan Committee report released in February 2007.  The changes are:

• The Open Door Fund

The ENABLE Fund, launched in July 2006, has been revised to allow more employees to tap the fund to employ PWDs. With the revisions, the ENABLE Fund has been renamed The Open Door Fund.  This Fund provides financial subsidies of up to S$100,000 per project for companies that redesign their jobs or make workplace modifications to cater to the needs of PWDs. With the change, companies can qualify for the Fund as long as they meet the minimum number of four new PWDs.  Companies that outsource jobs can also tap on the Fund.

• Employers Network

To address employers’ concerns about PWDs’ capabilities and productivity at work, an alliance of employers who have employees who are PWDs or employers who are supportive of employment of PWDs will form a network in May 2007 to champion the employment of PWDS. 

Strategies to meet the challenges of an Ageing Workforce

With falling birth rates and rising life expectancy, Singapore’s population and workforce will grow older. This will impact the labour market as the proportion of older workers aged 50 and above in the labour force will increase from 22% in 2004 to 29% in 2015.  The increase in the number of workers joining the local workforce will also slow down from about 44,000 today to 24,000 between 2010 and 2015.  To sustain economic growth and to meet the consequential demand for workers, the Government set up a Tripartite Committee on Employability of Older Workers in 2005 to implement various programmes to improve the employability of older workers.  The key initiatives are:

• Advantage Scheme - Incentives for employers to hire older workers 

The Advantage Scheme, launched early this year, is an incentive scheme for employers to hire older workers above age 40 and to re-employ them beyond age 62. A $30,000 incentive package will be given to participating companies for job redesigning, training and retention incentive. The Manpower Ministry (MOM), Singapore Workforce Development Agency (WDA), Singapore National Employers Federation (SNEF) and National Trades Union Congress (NTUC) are jointly promoting the scheme and bringing about tangible changes at the workplace and improvements in human resource practices.  WDA will assist the individual companies with job placement services. To date, 145 companies had signed up the Advantage Scheme. In total, these firms have agreed to hire about 2,300 mature workers and re-hire 1,300 beyond the retirement age. 

• Expand job opportunities for older workers.  WDA and NTUC will expand the existing Job Re-creation Programme (JRP) to identify jobs which can be re-designed to suit older workers.   The JRP is jointly launched by the NTUC, WDA and SNEF in Jan 05 to provide meaningful careers for older workers.  Under the programme, jobs will be re-created to enhance job worth. These include improving working conditions, better job prospects and better image of the jobs.  The JRP has successfully identified and re-created more than 7,200 vacancies in 13 sectors covering childcare, healthcare, cleaning and conservancy, education, retail, marine, landscaping, hospitality, public transport and security.  Over 4,600 job seekers were placed in jobs that included Teacher-Assistants, Healthcare Attendants, Property Officers, Landscaping Technicians, Marine Supervisors and Security Officers.  The JRP committee target to re-create 10,000 jobs each year. 

• Shape public perceptions about older workers. The Tripartite Committee on Employability of Older Workers has arranged outreach programmes to employers, workers and the general public to address misperceptions of older workers abilities, encourage older workers to stay employed longer and promote enlightened HR practices amongst employersThe Committee has also set up eight sectoral workgroups to engage the industry on the older workers' employability.  The workgroups have been tasked to identify best employment practices, expand job opportunities for older workers and pilot sector specific changes.  The eight workgroups come from the public sector, banking, insurance, healthcare, hotels, transport and logistics, food industry and manufacturing sectors.

• Enhance skills of older workers

To raise the skills and value of older workers, WDA will be working with employers and unions to upgrade the skills of older workers and keep their skills relevant to industries' needs.  WDA is also providing training opportunities for unemployed older workers to enable them to take up new jobs through the Place and Train Programmes and the Strategic Manpower Conversion Programmes.  Preferential training subsidies will be given to employers to encourage them to send their older and less-skilled workers for training.  From January to September 2005, around 38% or 113,000 of the training places supported by the Skills Development Fund were taken up by workers aged 40 and above.

• Age-Friendly Fair Employment Practices.  In January 2006, the Tripartite Committee on Employability of Older Workers introduced an Age-Friendly Employment Practices Guide to help employers maximise the potential of an ageing workforce. It is designed to assist business owners, CEOs, managers and human resource practitioners engage this significant and vital segment of the workforce. The guide outlines the practical measures for employers to consider, and documents some of the best practices that companies have implemented in attracting and retaining older workers through good human resource practices in the following six areas: recruitment, remuneration and benefits, job redesign and automation, new work arrangements, re-employment policy and managing career transitions.

In May 2006, a Tripartite Alliance for Fair Employment Practices (TAFEP) was formed to promote employment practices that are fair and equitable to all workers. To date, 173 companies have pledged their commitment to fulfill the practices which include merit-based recruitment regardless of age, race, gender or religion; treating employees fairly and giving them equal opportunities for training and development; to follow labour laws; and adopt tripartite guidelines promoting fair employment practices.  Among TAFEP’s planned initiatives is a revised Code of Responsible Practices, focus group discussions and workshops to raise awareness of fair employment practices, and training programmes for human resource personnel.

Workplace Safety and Health Act

The Workplace Safety and Health Act (WSHA), passed in Parliament in Jan 2006, came into effect on 1 March 2006. This Act replaces the Factories Act. The WSHA aims to reduce risks at source by making stakeholders accountable for managing the risks they create and taking reasonably practicable steps to ensure the safety and health of workers.  It forms part of the Occupational Safety and Health (OSH) framework and covers general factories, construction sites and shipyards. Under the WSHA are seven subsidiary legislations. These are the Workplace Safety and Health (WSH) General Provisions Regulations, WSH Registration of Factories Regulations, WSH First Aid Regulations, WSH Exemption Order, WSH Composition of Offences Regulations, WSH Incident Reporting Regulations and WSH Risk Management Regulations.

Work Skills Qualifications

On the back of improved economic conditions, training participant among the local workforce rose from 25% in 2004 to 27% in 2005. However, the training intensity has declined from 4.4 days per adult in 2004 to 4.2 days per adult in 2005.  The older and less educated continued to lag behind those younger and higher educated in both training participation and intensity. In view of this, the Singapore Workforce Development Agency (WDA) launched the Singapore Workforce Skills Qualifications (WSQ) in Oct 2005 an integrated continuing education and training system for adult workers to skill up to remain employable and competitive.  The WSQ is founded on best international practices and validated by industries and employers. It offers employers and workers quality assurance in training and demonstrates how training can be translated into better jobs and career progression.  WDA monitors the quality of training providers to ensure that they impart the right skills and knowledge to meet learning needs.

III           NEW SHRI INITIATIVES

HR Accreditation

SHRI launched the Singapore HR Accreditation Framework in 2006.  The objectives of HR Accreditation are:

• To promote the use of the accreditation standard amongst organisations as being vital for their business success,
• To establish a national HR accreditation for organisations,
• To help build an HR brand for Singapore,
• To enhance the standing of the HR Profession,
• To establish a clear roadmap for competency and knowledge acquisition,
• To raise the standards of HR.

The HR Accreditation aims to serve the Singapore Human Capital Industry, Businesses, Employers, Training Providers and HR Professionals. The HR Accreditation is divided into two categories, the Generalist status and the Specialist status.  The Generalist status is awarded to HR professionals who are accredited at a broad level. They will be given the status of HR Associate, HR Professional or Senior HR Professional.  The Specialist status is awarded to HR professionals who are accredited on specific functional areas such as employee relations, compensation & benefits, training & development.

An Accreditation will be awarded to applicants based on their professional portfolio, professional development and academic qualification / examination set by the HR Accreditation assessment panel.  Successful applicants will be accredited by the HR Accreditation Board.  Representatives from the SHRI Council, Ministries/Statutory Boards, Business and HR Communities made up the HR Accreditation Board and Assessment Panel.    Since its launch, 35 HR practitioners have been accredited with Generalist status.  The Specialist status would be provided for at the end of 2007.

Communities of Practice, Priority Conversations and Singapore HR Community Portal

In March 2006, WDA invited SHRI to be its strategic partner to operate the Human Capital Communities of Practice (CoP), Priority Conversations and the Singapore Human Resource Community (HRSINCOM) Portal. SHRI took over the three operations from WDA in June 2006.  The progress of the operations is as follows:

• Communities of Practice (CoPs)

CoP is a platform for HR professionals across all industries to engage and learn from each other good human capital practices. It consists of a network of consultants, academia and HR professionals. Each CoP focuses on a particular topic in the HR and Business areas. For a start, SHRI would be forming 20 CoPs over a three-year period between September 2006 and January 2009.  Each CoP will sit for six months. The 20 topic areas are Employee Engagement, Service Leadership, Leadership Development, Ageing Workforce Management, Quality Work Life, E-HR, Workplace Safety & Health, Strategic HR and Alignment, Learning & Human Capital Mgt, Talent Management and Retention, Employee Relations, Health & Employee Wellness, HR Ethics, Corporate Governance, Compensation & Benefits, Talent Sourcing, Internationalisation and Globalisation, Corporate Social Responsibilities, Succession Planning and Performance Management.

• Priority Conversations

These are seminar / Roundtable sessions where information and best practices sharing are conducted with the HR Community and Business Leaders. Each session has three key elements: a thought leadership component, a facilitated dialogue segment and a time for talent networking.  The objectives of the Priority Conversations are to engage all CoP participants and HR practitioners through sharing and discussion of current HR practices, issues and trends. The first Priority Conversation will be conduced in September 2006, to coincide with the first CoP session.  SHRI plans to roll out 10 Priority Conversations between September 2006 and August 2009.  The topics for discussion include Employee Engagement, HR Competencies and Standards, Ageing Workforce, Quality Worklife, Compensation & Benefits, Talent Management, Corporate Governance & HR Ethics and Employee Relations & Health and Wellness.

• HR Singapore Community Portal (HRSINCOM)

The HRSINCOM portal is an online HR Community portal that allows individuals to share, publish and network with one another. The HRSINCOM portal currently more than 1000 registered individuals. The portal seeks to facilitate:

• Discourse about Great Workplace, the visualization of such workplaces in Singapore, and communicate / promote the intrinsic value of the workforce development interventions and other related initiatives by WDA
• Workforce development by linking HR Practitioners with the full suite of WDA services, such as employment facilitation, the National CET Framework, Labour Market Information, and to avenues for government grants

IV Workplace Diversity in Singapore

Singapore is one of the most competitive and vibrant economies in the world.  Strategically located as the gateway to Asia Pacific, Singapore reaches a market place of 2.8 billion people within a seven-hour radius.  Over the last four decades, it has transformed into a leading international center for business and investment and more recently, a thriving cosmopolis for arts and innovation.  The key element of success for Singapore is diversity – in talent, ideas and enterprise. So promotion of diversity is now official government policy. To show that it means business, the government has not merely exhorted people to embrace the change in direction but put in place explicit measures to incentivise schools along that direction.

Today, Singapore is a reputable financial center, a key international trading center, the world’s busiest port, a rising biomedical hotbed and Asia’s most wired city.  Singapore is a melting pot of cultures and technical know-how.  It brings together a diverse group of companies from all over the world. More than 7,000 international companies complement the base of Singapore local companies, undertaking activities from management to manufacturing and R&D.  The companies are able to bring in foreign managerial skills while retaining useful local practices. 

The high concentration of enterprises on a small island like Singapore offers opportunities for interaction, transactions and collaborations. Singapore’s central location in Asia makes it ideal for companies to study and access the region. The cultures and ethnicities in Singapore are representative of the diverse Asian market with a population exceeding 2.5 billion.  Hence, it is important for local managers to undergo cultural-based Human Resource management training to further their abilities to motivate a group of professionals that are highly qualified but culturally diverse.  Furthermore, the HR managers must assure the local professionals that these foreign talents are not a threat to their career advancement.  Therefore, the effectiveness of workplace diversity management is dependent on the skilful balancing act of the HR manager. Thus, a Human Resource professional needs to be mindful and may need to employ a “Think Global, Act Local” approach in most circumstances. 

The challenges and problems faced from workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize and manage this diverse body of talent.  Managing diversity emphasizes managerial skills and policies needed to optimize every employee's contribution to the organizational goals. Initiatives are taken not because of legal mandates or moral and ethical imperatives but instead to enhance organization morale, productivity and benefits. After underrepresented people are hired and employee consciousness had been raised, appropriate policies, procedures, and managerial interventions are needed to operationalize a culturally diverse workplace.

The Ministry of Manpower (MOM) has laid down several policy guidelines to ensure that employers do not practice employment discrimination.  Recruitment and selection practices should be based on fair and objective criteria such as qualification, experience, skills and attributes which are relevant to the job requirement.  In line with this, employers are encouraged to adhere to the Tripartite Guidelines on Non Discriminatory Job Advertisements, issued jointly by the Ministry of Manpower, the Singapore National Employers Federation (SNEF) and the National Trades Union Congress (NTUC), when putting up job advertisements.   Fair and objective criteria rather than factors such as age, race, gender, marital status and religion should be included in the job advertisements.  The Tripartite Guidelines laid down the following rulings:

• Employers should not use language requirement as a way to discriminate candidates.  However, it would not be unreasonable for the employer to select a candidate who has the specific attributes in order to be able to perform the duties of the job. 

• The try will investigate and take appropriate action against any employer where it is established that he has resorted to hiring workers based on discriminatory requirements. 

VI           Update on Singapore Human Resources Institute

Founded On:     24 Nov 1965

President:          Mdm Ho Geok Choo

Membership

Corporate Friends:                       150

Individual Members:                     2800

Total:                                         2900

Major Activities/Programs

SHRI will be organizing the Singapore HR Congress 2007 on 2 to 4 May and also the Singapore HR Awards 2007 on 13 June 2007.

For more information on SHRI, please visit www.shri.org.sg

Taiwan Major accomplishments in 2006:

• CHRMA won the awards – the National HRD InnoPrize, which was granted by the Council of Labor Affairs, Executive Yuan, due to CHRMA was the pioneer to establish:
  • “HRM Administrator Certification System”
  • “Assessment center of Banking & Finance Management Competence”
  • “HR E-learning College” and obtain the top prize from government

• There were more than 3,000 people participated the HRM Administration Certification System course, and were certified as HR professionals.

2007 Outlook:

A 2-day HR seminar – Strategies & Tactics of Human Capital Development for Both Sides of Strait to be held at Grand Hotel on April 13 & 14, 2007, which is sponsored by CHRMA & China Times.

A 2-day global HR seminar:  Making A Difference & Creating Competitiveness to be held at Sheraton Taipei on September 14 & 15, 2007.  Keynote speakers are:  Mr. Steven M. R. Covey, Mr. John Sullivan etc.

APFHRM 2007 first meeting will be held in Taipei, which may scheduled at the end of may, details are not finalized yet.

CHRMA passed Total Training Quality System assessment, which was assessed by the Bureau of Employment & Vocational Training, the Council of Labor.  Thus CHRMA is qualified to participate the government subsidize program, that is government subsidize 80% of training fee, and labor pays 20% of training fee for certain training program to help labor to increase professional competencies.

2007 Economics Situation:

2007 GDP Growth Rate Forecast:  4.3%

2007 February Employment Rate:  3.78%

2007 February Labor Force Participation Rate:  58.14%

2007 February Average Working Hours:  188 hrs/employee

2007 February Average Earning (Industry & Service Employee):  NT$49,461

Thailand Report 

Economic Performance in Q4 and the year 2006

Economic Performance in Q4 and Outlook for 2007

• The Thai economy grew by 4.2 percent in Q4/2006, softened further from 6.1, 5.0 and 4.7 percent growth in the previous respective quarters. Overall, 2006 registered 5.0 percent growth, higher than 4.5 percent in 2005. The better performance of the economy in 2006 was driven primarily by net export of goods and services which outperformed that in 2005, and thus weathered the domestic demand-led slowdown. The quarterly growth path confirmed this slowing trend.
• The 2007 economy is forecast to grow 4.0-5.0 percent The economic constraints in 2007 will be primarily the limited potential for export growth while the recovery of investment will not be full-fledged. Supportive factors for growth in 2007 include declining interest rates, lower oil prices and inflation which shall stimulate private consumption and investment. In addition, a larger planned government budget and SOEs’ investment plan than in 2006 is expected to provide cushion for the economy should the targeted disbursement be materialized. However, exports and tourism are likely to expand at a slower pace than in 2006.
• Economic stability in 2007 will remain strong. Inflation rate of 2.5-3.0 percent, a surplus current account of approximately 1.0-1.5 percent of GDP, and low unemployment rate of 1.5-2.0 percent, are expected.

Economic Projection for 2007

The Thai economy of 2006 showed favorable growth with stability. Concurrently, the fundamental of the economy was sound and stable as observed in several key economic indicators such as low unemployment rate, declining public debt to GDP and lessened inflationary pressure as a result of (1) upward interest rate adjustment in the earlier period which softened credit expansion and (2) falling oil price since August. Moreover, the interest rate remained stable since the middle of 2006 before policy rate cuts twice at the beginning of 2007 and some financial institutions started to lower their lending rates thereafter. Consumer confidence has also improved since September and business sentiment has started to pickup. All of these positive factors will continue to support the economic growth in 2007.Nevertheless, there are still some downside risks associated with the economic outlook in 2007, both external and internal factors. External factors include a global slowdown led by a slowdown in the US economy. A cooling down of US real estate sector could be severe which could put depreciation pressures on the US dollar, while the US twin deficits problem still persists. Moreover, it is likely that crude oil price will be higher than in the first two months of 2007 and still volatile due to the production constraints of petroleum industry. Meanwhile, the US-Iran disputes over Iran’s nuclear program have not yet eased. On internal fronts, attention should be on continuing slowdowns of domestic consumption and investment. It is important to create understanding and restore confidence from people, both domestic and foreign by such measures as making pubic relations based on precise facts and enhancing opportunities for trade and investment.

Employment rose and unemployment rate

In the fourth quarter of 2006, the numbers of employees were 36.24 million people, increasing by 0.67 percent from 36 million people in the fourth quarter of 2006.The numbers of employees in agricultural sector dropped by 1.9 percent in the fourth quarter of 2006. Meanwhile the numbers of employees in non-agricultural sector increased by 2.5 percent. Employment in trade and banking sectors increased by 8.2 percent, whereas employment in construction and manufacturing sectors rose by 1.4 percent and 3.6 percent respectively. In 2006, average unemployment rate was 1.51 percent, lower than 1.9 percent in 2005.

PMAT – Update and Major Events

* PMAT’s Annual Meeting on 28 March 2007 and will held seminar on the topic of

   “Building Culture for  Innovation Organization”

* Thailand HR Forum on July on  topic of  “HR Value Proposition”

* HR  Day and Exposition  on  November in topic of “ HR Scorecard”

* HR Northeast Forum  on  August in the topic of “Reshaping HR for the Future”

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