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Articles, Belt Road Initiative, Talent Acquisition

Chongqing Municipal Government’s Hongyan Talent Plan Benefits both Talents and Companies in Chongqing

The Chongqing Municipal government’s Hongyan Talent Plan, launched in year 2017, aims to attract talents from all over the world to the city.

Domestic and foreign talents can now apply to be part of the Hongyan Talent Reward Plan and enjoy the relevant policies and services according to their industry classifications.

Incentives*:
• Category A talents: Monetary incentives equivalent to twice the amount of annual income tax contributed or fixed quantum incentives not amounting to more than RMB 2 million.
• Category B talents: Monetary incentives equivalent to 1.5 times the amount of annual income tax contributed or fixed quantum incentives not amounting to more than RMB 1 million.
• Category C talents: Monetary incentives equivalent to 1.2 times the amount of annual income tax contributed or fixed quantum incentives not amounting to more than RMB 300K.
*Payout of the incentives will take place over a period of three years. 40% of the incentives will be paid out on the 1st year, 35% will be paid out on the second year and subsequently, 25% will be paid out on the third year.

One-stop Services:
• Entrepreneurship: Readily available services for investment, financing, applications for national and provincial level technological projects, etc.
• Resident Visa: Eligible to apply for 5 year residence permit and enjoy perks for permanent residence status.
• Settlement / Household registration: Eligible to apply as a registered household in Chongqing for the talent and family.
• Assistance on employment for spouse and children.
• Medical Service: Enjoy privileges of priority medical services via the “green channel” in hospitals, including priority for appointments, hospitalisation,
and surgical procedures.

INDUSTRY REWARD TIERS:
Applicable Industries: Water Conservation, Agricultural Leasing, Environmental & Public Amenities, Building, Mining, Wholesale and Retail, Manufacturing, Real Estate, Transportation, Warehousing, Cultural, Sports, Entertainment, Food & Beverage and Hospitality.
Category A: Professionals with an annual salary of RMB 1.2 million and above.
Category B: Professionals with an annual salary of RMB 600K to RMB 1.2 million.
Category C: Professionals with an annual salary of RMB 300K to RMB 600K.

Applicable Industries: Education, Public Administration, Social Organisations, Electricity, Heat, Gas, Water Works, Health & Social Works, Scientific Research, Technical Services and Information & Communications Technology.
Category A: Professionals with an annual salary of RMB 1.6 million and above.
Category B: Professionals with an annual salary of RMB 800K to RMB 1.6 million.
Category C: Professionals with an annual salary of RMB 400K to RMB 800K.

Applicable Industries: Financial Institutions, Private Equity and Venture Capitals. This also includes professionals who are involved in Offshore Finance, New Financial Products Research, Risk Management, Financial Leasing and CFA, CFP & Finance Professionals.
Category A: Professionals with an annual salary of RMB 2 million and above.
Category B: Professionals with an annual salary of RMB 1.2 million to RMB 2 million.
Category C: Professionals with an annual salary of RMB 600K to RMB 1.2 million.

WiseNet is accredited by the Chongqing Municipality with the following:

Chongqing Municipality Talent Attraction Work Station 重庆市引才工作站
Talent Acquisition Service Provider for Chongqing Municipality from 2018-2019 under the Hong Yan Talent Scheme 重庆鸿雁计划海外服务供应商

Learn more about Hong Yan Talent Plan, click here: Hongyan Talent Brochure_PRINT

Articles, Talent Acquisition

Essential Traits of A CEO to Battle the Recession and More Uncertainties Ahead

WiseNetAsia Knowledge Center
Copyright © 2018 WiseNet Asia Pte Ltd. All Rights Reserved

Different schools of thought abound on the causes and consequences of a financial crisis, often a precursor for a recession. With JPMorgan Chase speculating that the next recession will take place in 2020 – just two years from now – which may see stocks at a 20% decline and energy prices devalued by 35% according to analysts,[1] it would be prudent for companies today to assess how best they can weather this slump to make a quick turnaround.

The CEO has a pivotal role in steering a company through such turbulent times. Faced with the challenges of predicting which parts of the business will be affected and identifying actions to secure the company in the best position possible, this CEO requires several key traits to succeed.

Visionary ability

Leaders need to be in touch with their capability for accurate long-term visioning. With rapid industrialization and global market volatility where anything can happen, it’s not always easy to spot who your future competitors are. They can be in the form of a new technology or a new merger, which can pose a fresh and unexpected threat to your business.

The unpredictable nature of such obstacles and changes would mean that past data becomes unhelpful or irrelevant to gauge future trends and sustainability metrics. Although past data can facilitate in the making of ongoing operational decisions, it does not guarantee that the company will sail smoothly through the face of instability in years to come. Swift changes in market dynamics paired with customer needs and demands require businesses to be equally swift – if not one step ahead – in response.

Being able to envision the future with innovations that revolve around customer lifestyles can provide a competitive advantage to help sustain against disruptions in the future.

Authority to execute

Leaders take full ownership of their vision. They act with purpose to make their ownership visible to everyone.[2] They show confidence to drive and execute specific actions that target the business’ weak points. Doing so both benefits the company and creates inspiration for onlookers as the CEO’s every move is watched closely.

Undivided focus

A business leader will encounter many proposals and personal invitations for new ventures. Some of these may be tempting, enough to divert and shift major resources such as funds and key talents. It is an essential trait to stay focused and disciplined on the initial goal(s) where efforts have been made and value in, despite the attractive or lucrative deals that may be presented to you.

Genuine intention

Although it’s easy to get caught up in making profit a priority, a leader needs to counter this by doing things with heart. This means striking a balance by establishing responsible corporate practices without placing employee and societal interests at risk.

Leaders who care for the people are true leaders.

Flair for numbers

It may seem like a given but having a knack for numbers cannot be underestimated. This enables CEOs to make agile decisions, identify loopholes and make calculated risks. It also helps with assessing potential opportunities for the business.

Selecting the ideal CEO is no easy feat, as an individual’s strengths and weaknesses are not always readily visible. Having a checklist of essential traits will help companies make crucial decisions when hiring for this important role.

_______________

Contributor: Wesley Hui

Wesley Hui is the Executive Director of WiseNet Asia Pte Ltd. He is a HR industry veteran with over 20 years of experience specializing in executive search and human resources consulting. The clients he has worked with are primarily in the real estate and infrastructure sectors which include Keppel Land, Sime Darby, Sunway, Temasek, ARA, etc. Wesley also actively participates in speaking engagements on HR and leadership topics in Singapore and China.

Follow Wesley on LinkedIn: https://www.linkedin.com/in/wesleyhui/

Sources:

[1] Source: https://www.pymnts.com/economy/2018/jpmorgan-financial-crisis-recession-emerging-markets/

[2] Source: https://www.forbes.com/2008/05/09/strategy-executive-zeleny-lead-manage-cx_dz_0509tough.html#7d0a3a3037af

Articles, Business Matching

Revolutionizing Everyday Business: How Tencent and Wechat are Transforming a Nation

WiseNetAsia Knowledge Center
Copyright © 2018 WiseNet Asia Pte Ltd. All Rights Reserved

WeChat is part of daily lives

With a working population of approximately 774.51 million, China’s tremendous growth cannot be understated.[1] This is largely driven by the juggernaut of constantly evolving technology, in the form of trends and companies that play significant roles in shaping how people consume news and media, discover and make purchases, communicate with others, conduct financial transactions and more.

A typical day of an office worker in China might start off by waking up to scroll and check her phone for new messages and notifications. On the way to work, she might shop at her favourite brand and buy the dress she has been thinking about. With a busy day at work and no time to step out, she orders in some lunch and it’s delivered to the office as she sends moments to her family and pays some bills. That evening at dinner with friends, they all split the meal cost using the go-dutch feature. This is hassle-free and immediate. As she winds down before bed, watches a drama series while double screening – looking up new trends, playing games and chatting with friends at the same time. Every single item above can be done on WeChat.

WeChat’s user base almost touched 1 billion as of 2017, and the app has almost entirely replaced physical wallets for the Chinese.[2] WeChat forms the equivalent of WhatsApp, and also encompasses all the social media networks permitted in China, offers different channels for people to keep in touch with one another, facilitates banking transactions quickly and securely, and incorporates numerous lifestyle, retail, travel and restaurant options.

Picture above: Buying a bus ticket through WeChat

Tencent and its ambition for the world

Tencent, who’s behind WeChat ranks globally in the latest technologies spanning social, retail and finance, is a staple name in the daily lives of people in China.

WeChat permeates even the field of work, as it is the uniform platform for communication for most companies in China. It has comprehensive functions such as file sharing, group discussions and company updates via Moments. This makes it a direct competitor for Weibo, a wildly popular social media platform (an equivalent of Facebook, if you would) launched two years before WeChat.

WeChat Moments also provide opportunities for local advertising. Launched in November 2016, this allows brands to market and promote their activities – all within the app. This integration really changes the game for marketers as they reach a wide base of customers whose lives revolve around usage of the WeChat app.

From a global perspective, WeChat’s strategy in Europe interestingly does not target on acquiring new users. It looks at advocating WeChat’s financial transaction and marketing capabilities to enhance the connectivity and reach of various businesses to Chinese consumers. This comes as the WeChat wallet expands its options to incorporate ride hailing services, shopping and retail, books and movies and entertainment, travel and hotels, and more. It is also making use of artificial intelligence (AI) and exploring its potential with gaming as a start.

WeChat Pay revolutionizes the way payments are made. Being an e-wallet as part of such a comprehensive app that is central to everyday living, WeChat Pay presents rewarding wealth opportunities such as the provision of online loans and investments and financial management products.[3] For Tencent (and competitor Alipay in this regard), it has set its sights beyond China to bring this payment innovation worldwide. Businesses and merchants have welcomed this payment system, which makes sense with the sheer number of Chinese tourists everywhere, with their overseas tourism spending totalling a record $261 billion in 2016.[4]

Picture above: WeChat e-wallet

Sending each other ‘lucky money’ is another popular WeChat function, drawing on the tradition of exchanging red packets filled with cash during the Lunar New Year. Businesses can also use this as a promotional tool to offer customers various rewards when users shake their phones to reveal them.

Picture above: Lucky money sent with random amount

Impact on how we live, work and play

Having seamless comprehensive apps like WeChat means that people are reachable and contactable 24/7. This might further dilute the meaning of work-life balance and present a constant bombardment information, making people increasingly attached to their phones instead of paying attention to fellow friends and family in real time. It demonstrates how gadgets can ruin the appreciation of the basic things in life (such as having a good in-person conversation or watching the sun set) if a balance isn’t struck.

Our worldviews and prejudices are also very much shaped by the media we consume. Generation Z, in particular, almost entirely revolves around the digital world. A whopping 71% believe that what they do online will affect their future opportunities in career and life.[5] On the flipside, brands and companies are spending billions to build a strong and engaging presence on their socials to attract this vital crowd.

The ubiquity of the mobile phone means access to information for more people everywhere. The entry point is low: an internet search bar takes you places, and many physical locations are starting to use QR codes which can be scanned, leading users to a website. Companies are spending 75% of their digital allocation to mobile advertising, a testament to the sheer value of phone-wielding humans everywhere.[6]

Work processes are also dominated by mobile, specifically WeChat, in China. It provides collaborative working environments and convenient in-app communication channels. Employees can also follow their company’s official WeChat account for work updates. WeChat users in general can use WeChat’s wallet, play music and videos, and edit photos – do anything! – within the app.

However, there are also concerns around personal data and privacy. WeChat, for example, does not have end-to-end encryption and is monitored, as demonstrated by censored words during a period of criticism over Xi Jinping’s reign.[7]

The obsession with creating an online presence might also be unhealthy (think ‘Insta-perfect’ lives on Instagram), and there may be difficulty identifying people for who they are in real life based on their online profiles.

What this means for our future

This could mean less privacy, people being contactable all the time, being tracked through their location settings and online spending patterns. The extent of loss in individual privacy is more so in China where personal data protection act is not as strictly regulated as other regions. Anyone who is part of social media has the possibility of their digital footprint being exposed publicly, directly or indirectly. Digital footprint is built throughout the years whenever a photo is uploaded or when checking in somewhere for free wi-fi, or during data roaming.

In China and for Chinese overseas, WeChat is a system for living and working. It will continue to dominate as the platform that unifies individuals and companies. For businesses, it’s about how to navigate the WeChat dynamics and maximize its opportunities. This means being fast enough to tap on every new feature that is applicable, such as lucky money to encourage users’ loyalty and many more.

For individuals, perhaps the future isn’t so much about achieving work-life balance, especially in highly competitive China cities. It is about self-discipline to regularly unplug to avoid the negative impacts from too much social media consumption.

Sources:
[1] Source: https://www.statista.com/topics/1317/employment-in-china/
[2] Source: https://www.statista.com/statistics/255778/number-of-active-wechat-messenger-accounts/
[3]Source: https://www.forbes.com/sites/ywang/2017/12/06/how-chinas-tech-giants-alibaba-and-tencent-want-to-shape-how-the-world-pays/#69b9b098e6d0
[4]Source: https://www.forbes.com/sites/ywang/2017/12/06/how-chinas-tech-giants-alibaba-and-tencent-want-to-shape-how-the-world-pays/#69b9b098e6d0
[5]Source: https://www.techradar.com/news/is-your-website-ready-for-generation-z
[6]Source: https://www.forbes.com/sites/johnkoetsier/2018/02/23/mobile-advertising-will-drive-75-of-all-digital-ad-spend-in-2018-heres-whats-changing/#fe331b8758be
[7]Source: https://www.businessinsider.my/censored-words-in-china-xi-jinping-term-limits-2018-2/?r=US&IR=T; https://www.techinasia.com/outside-china-wechat-is-a-fish-out-of-water

Articles

The Ultimate Guide To Building A Network You Can Leverage On

WiseNetAsia Knowledge Center
Copyright © 2018 WiseNet Asia Pte Ltd. All Rights Reserved

There are hundreds of articles and pieces of advice out there on effective networking and relationship building, but not many tell you how to leverage your network to maximize your opportunities and be poised for success. To leverage your network means being able to mobilize support, resources and information to your advantage when you need them.

You don’t have to be an extrovert or talkative, and nobody is naturally talented at this. Building a network is something that happens over time. You might even come to enjoy it after some practice, while reaping the rewards for your effort in your career. Besides doing prior research on the people you’ll be meeting to better understand what they do, it is equally important to keep in mind several principles that will boost opportunities to leverage your network.

Here are ten key pointers to keep in mind:

Don’t expect anything in return^{^[1]}

Setting out with good intentions is more likely to bring rewards. While it is important to plan ahead and have an approximate notion of what you would like to achieve while networking, try to avoid going in with the expectation that whoever you meet today must give you something. Nobody owes you anything. Make a good impression and sow the seeds to build a lasting connection – that’s a crucial first step for you to take.

Ask what you can do for others^{^[2]}

Just as you are looking to gain something while networking, so do the people you’re networking with. There’s no better way than offering your help by asking what you can do for them, because this forms the foundation for a strong relationship by showing them that you are genuine and not just seeking self-gain. By building this personal connection, you are placed in a better light and it will be easier to reach out to them in the future should you need a favor.

Think long term^{^[3]}

As a leader in your company or industry, assess your future goals. Connections you make today can influence and impact your work in the long run. Look externally and network across different disciplines to better understand the environment you work in and fill the gaps with information on skills and sectors you don’t have. Besides improving yourself as an individual, this could potentially bring new business opportunities or complement your work in the future.

Listen and be respectful

“Challenge yourself to truly connect with the person who took time out of their busy schedule to talk to you”, explains Laura Lee, director of content partnerships for Google and YouTube, “and always say thank you.^{^[4]} Pay attention. This lets you notice points that people have mentioned that you may pull into conversation later on, demonstrating that by freeing your mind to listen, you value them and their time.

Make them feel important^{^[5]}

Asking someone straight up for a favor or funding might seem overly direct. Soften your approach and instead ask for advice from the person you’re speaking to. This lets them know that you find their knowledge valuable and allows them to draw on their experience, which is a great starting point as opposed to being pushy and overly aggressive from the start.

Remember to follow up

When was the last time you were expecting a reply from someone, waited for ages, and never heard from them again? That sucks. Maybe the person you met at that networking event isn’t anxiously waiting for a message from you, but it’s always good practice to follow up. If you have mentioned in conversation that you will reach out to the person, then do it. If they gave you a useful piece of advice, send a thank you note. Doing this shows your commitment to this new association and makes any future communication more natural.

Be consistent

Keep your network alive by making regular interactions with your newfound connections. This can be by giving some help or sending your congratulations on their achievements. The point is to make consistent enough contact so that it wouldn’t be awkward to reach them when you need to.

Find common ground

There may be times where it seems that you have no reason or excuse to approach someone because you have nothing in common. Look beyond work and identify areas where you might share interests. They are real people, after all, with various hobbies and passions. For example, if you both care about the environment, discussing ways you might improve the situation is a good entry point.

Make it a lifestyle

You don’t have to wait for someone to organize a networking event to be able to network. Do this on the daily: gather information from informal conversations, pick up personality quirks by paying attention and talk to people at all levels of the hierarchy.

As Richard Branson, founder of Virgin Group, shares: “Business is all about personal contact. If you discuss a work matter with an employee or a potential client over coffee rather than simply sending over an email, you’re more likely to build rapport, which will be useful if you ever need to tackle any problems together.”^{^[6]} The more regularly you network, the more natural and efficient you become at it.

Keep at it

This is an effort that’s constantly in progress. By attending that conference, comparing feedback with your peers and always being in the know by stepping out of your comfort zone to speak to others, you strengthen your will to make and maintain effective connections. You might not see quick wins overnight, but you’ll be glad you started.

Practice, learn something new wherever you can, always smile and initiate the conversation. By keeping things personal and professional at the same time, you can show that you’re genuine and stand a better chance at leveraging your networks in the future when you need them.

—End—

^{^[1]} Source: https://medium.com/the-mission/the-ultimate-guide-to-building-your-network-without-being-sleazy-57302fc19797

^{^[2]} Source: https://www.entrepreneur.com/article/246102

^{^[3]} Source: https://hbr.org/2007/01/how-leaders-create-and-use-networks

^{^[4]} Source: https://www.fastcompany.com/3038750/the-secrets-to-successful-networking-from-the-most-connected-women

^{^[5]} Source: https://www.fastcompany.com/665897/practical-networking-tips

^{^[6]} Source: https://www.virgin.com/entrepreneur/richard-branson-why-you-should-network

Articles, Belt Road Initiative

China Insight: Bridging the gaps between China and Foreign Investments in Belt & Road Initiative (BRI)

Written by TY Chin | Updated Feb 28, 2018

Belt and Road Initiative, setting South East Asia region as central Global Value Chain of the future

In 2016, China companies invested US$14.53 billion in countries along the “Belt and Road”; where the contract value for projects along the routes amounted to US$126.03 billion, with a turnover of US$75.97 billion (Source: Ministry of Commerce, China). A large part of the investment is in South East Asia countries that includes Singapore, Indonesia, Thailand and Malaysia. From 2013 to 2016, the Belt and Road Initiative has created more than 180,000 local jobs, and paid $1.1 billion in tax to local governments.

The Belt and Road Initiative (BRI) is China’s globalization project introduced by President Xi in 2013. It encompasses more than 60 countries, 4.4 billion people and up to 40% of the global GDP. The routes consist of the “21st Century Maritime Silk Road” and the “Silk Road Economic Belt”. The Belt is a land route from China’s western region through Central Asia, extending up to North of Europe. The Road consists of shipping lanes from Western Asia, through South East Asia, Africa and Europe.

The plan opens up new market opportunities for companies along the routes, but also comes with complicated risks and challenges.

(Image Source: Maps of world 2017)

Belt and Road benefits China and the countries along the route through shared economic growth. According to the Asian Development Bank, Asia needs to invest $26 trillion by 2030 to maintain its growth momentum. Aside from Singapore, most of South East Asia countries are hampered by infrastructure deficits. China’s investments in infrastructure connectivity will fill in the gaps in economic expectations, and also the possibility of developing the South East Asia region into the centre of a future global value chain.

(Image Source：Asian Development Bank)

Chongqing, the Place for the Belt & Road Project

Chongqing is a key location in the Belt and Road Initiative, where much of the Belt and Road actions are happening through its land, air, water transportation hubs, logistics city and free trade zone. Chongqing is situated on the upper reaches of the Yangtze River in western China, linking China to Europe through a network of roads and rails across Central Asia. It is also connected to Southeast Asia through a highway that connects to the port city of Qinzhou in southern Guangxi. The Chongqing-Xinjiang-Europe (Yuxinou International Railway) is a 10,000-km-plus rail route stretching from Chongqing to Duisburg, Germany. As at end of 2015, the railway has handled over US $10 billion worth of freight both ways.

Map of Trans-Eurasia Railroad & Schengen Area

(Image Source: USA China Daily)

The Chongqing free trade zone connects the new Silk Road to the Yangtze River. Approved in April 2017, it aims to accelerate development in the western region and also to promote Belt and Road activities.

Chongqing is also the base of China-Singapore (Chongqing) Demonstration Initiatives on Strategic Connectivity, in short, Chongqing Connectivity Initiative (CCI). Launched in 2015, this is the third government-to-government project between Singapore and China, and a linchpin of the Belt and Road Initiative. Four areas of collaboration between the two countries are financial services, aviation, transport & logistics, and information & communications technology.

Under the CCI initiative, a total of US$3.22 billion financing deals have been signed as at the end of 2016, leading to savings of RMB 152 million for Chongqing businesses. Through Chongqing, Southeast Asian companies can expand into Western China; likewise through Singapore, Chinese companies can venture into ASEAN (Source: Ministry of National Development, Singapore)

Chongqing is positioned to be a major port for inland logistics that connect to international routes. Under the CCI Transport and Logistics Master plan, the Chongqing Logistics Development Platform (CLDP) and the Multimodal Distribution and Connectivity Centre (DC) are rolled out in Feb 2017. The CLDP is set up to do logistics planning and develop standards for the transport and logistics industry. The DC is a logistics hub that caters to different transport modes, such as river, rail, air and road.

The Challenges

Alongside the encouraging developments thus far, there are also gaps to market entry and business growth in the form of various risks and challenges. The gaps must be addressed as failure will have a multiplying effect on the business entities and the bank that financed the project.

Economic and Political Risks
Countries along the Belt and Road are vastly diverse with various ethnics, cultures and languages. Many countries have their own risk profile. On the macroeconomic level, political controversies in some South East Asia countries have undermined investors’ confidence, prompting prolonged exchange-rate volatility. Other risk factors include volatile energy prices, natural catastrophes with flood and drought, and security with the threat of terrorism and violent demonstrations.

In foreign trade, China has implemented capital control measures earlier in 2017; however, the control is not applicable for China companies participating in the Belt and Road initiative. The projects in Belt and Road are approved by various government agencies and state enterprises. Hence, within the government offices, there should be people who are experienced with due diligence and risk assessments in international projects. The implementation of control measures starts from top down. Approval of the wrong projects could cause taxpayers money for the mistakes.

Singapore, being a global trade and financial centre, is the most stable in the region, yet it faces the problem of low birth rate whereby fertility ranks last among 224 nations in a study by the U.S. Central Intelligence Agency. This poses the risks of impending economic growth and tax revenues.

Labour Risks
Malaysia economy’s manpower needs over the past decade has been largely supported by foreign labour taking up jobs that the locals will not do. Foreign labours are consistently at a shortage. However, the government has implemented measures to reduce reliance on them, resulting in higher operational costs for companies who have to import skilled labours.

Risks face by China companies investing abroad
More than $250 billion in China’s overseas investments failed between 2005 and 2015, according to the China Global Investment Tracker.

A research report by the Centre for China and Globalization points out that for China companies expanding in the belt and road routes, their main concern is political risk whereby two thirds of the sixty over countries have debts burden classifying them below investment grades.

Other challenges encountered by Chinese enterprises investing overseas include low participation in existing international standard establishments, lack of professional managers with international experiences, miscommunication between Chinese enterprises and international Non-governmental organizations, misunderstanding of foreign trade unions, difficulties in promoting Chinese brands internationally, and low ability in facing legal and political risks.

Detrimental effects of poor investments
Poor infrastructure investments that end up as white elephant or abandoned projects cost more over the long term, incurring interest payment and underutilization cost. The risks commonly associated with megaprojects are overrun in timeline and budget. Bent Flyvbjerg, the most cited scholar in the world in megaproject management at Oxford’s business school, estimated that nine out of ten megaprojects go over budget. The cost overruns anything between 50% and 1900%. One example of failed megaproject is the 2004 Olympic Games in Athens, which became a contributing factor to Greece debt default in 2011. In such instances, governments with tax payers’ money will have to pay for the failed projects.

International Arbitration in ASEAN
With the risks associated with going global, disputes between business partners are also inevitable. Arbitration is one way to resolve high value cross border disputes. The Hong Kong International Arbitration Centre (HKIAC) and the Singapore International Arbitration Centre (SIAC) are the two most popular jurisdictions by numbers of cases handled. Other centres include The China International and Economic Trade Arbitration Commission and The Kuala Lumpur Regional Centre for Arbitration (KLRCA).

According to the International Chamber of Commerce (ICC) 2015 Report, Singapore has been the number one seat of ICC arbitration in Asia for five years running, as well as being the fourth most preferred seat globally. The other two dispute resolution institutions in Singapore are the Singapore International Mediation Centre (SIMC) and the Singapore International Commercial Court (SICC).

In Jan 2018, China announced the formation of three arbitration courts dedicated to settling Belt and Road disputes. The headquarter is located in Beijing, the court in Xian would settle commercial disputes in the land routes (Belt), and the court in Shenzhen would focus on disputes in the sea routes (Road). According to Xinhua News, the new institutions will be based on Beijing’s existing judiciary, arbitration and mediation agencies.

Despite the growing popularity, arbitration has its challenges and disadvantages. According to Matthew Gearing of Allen & Over:
– there is a propensity for court intervention in certain Asian jurisdictions;
– courts in certain jurisdictions have refused to enforce arbitral awards on grounds which go beyond the terms of the New York Convention; and
– the pool of suitably experienced arbitrators based in the region is comparatively small compared to Europe.

Navigating through the gaps of doing business in Belt and Road

The challenges are real, so are the vast market opportunities. Even though it is impossible to completely work out all the major risks with their subsets of secondary risks, it is still viable to navigate through the right framework and strategy in both government and private sectors, driven by one common agenda.

People
As a safety measure, a third party business and HR advisory with links in China and trading countries helps to shorten the learning curve. They can assemble a team together, cut through the noise on cultural gaps and cushion on tensions when it arises. An advisory body works out the teething problems in the starting phase and is part of the implementation team. Aside from facilitating cross border collaboration, their role is to minimize costs from mistakes.

Once the link is established, there needs to be human capital that can deliver long term business objectives and also contribute to social and economic growth of the area. Mega projects could take up to 10, 20 or even 30 years to build; therefore there needs to be a committed team with long term vision. Also, the steering team needs to work hand in hand with local authorities to drive social benefits for the area. This includes control of air pollution and waste management.

Best Practices
On the state level, state administrative bodies need to establish one set of common quality standards and best practices in each sector of cooperation, and monitored by a joint management body. An example of this is the Chongqing Logistics Development Platform set up to develop standards and best practices for the transport and logistics industry.

Collaborative risk management between government and private enterprises; rather than a one sided approach is more efficient as each side has their own authority and expertise that can be utilized when faced with different type of challenges.

Final Thoughts

The Belt and Road projects may mean different things to different companies; but undoubtedly, it is an economic growth engine that will develop emerging markets in Asia as centre of global value chain in the near future. As companies’ growth hit a bottleneck; there are always opportunities outside their existing market. Navigating the gaps of growth might seem challenging, but when done with the right timing, speed, agility and high standards, the rewards are priceless.

Sources:
Ministry Of Commerce,PRC. (2017). MOFCOM Department Official of Outward Investment and Economic Cooperation Comments on China’s Outward Investment and Cooperation in 2016 -.

James Griffiths, C. (2017). Just what is this One Belt, One Road thing anyway?. [online] CNN. Available at: http://edition.cnn.com/2017/05/11/asia/china-one-belt-one-road-explainer/index.html

App.mnd.gov.sg. (2017). Minister Lawrence Wong’s Interview with Xinhuanet Prior to Attending Belt and Road Forum for International Cooperation on 13 May 2017.

Burgess, M. and Foley, M. (2017). Belt and Road Investors See Opportunity in China Capital Limits. [online] Bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2017-07-03/belt-and-road-investors-see-opportunity-in-china-capital-limits

O’Callaghan, J. (2017). Tiny Singapore risks economic gloom without big baby boom. [online] Reuters. Available at: http://www.reuters.com/article/uk-singapore-babies-idUSLNE87U00H20120831

Lynn, J. and Marcelo, C. (2017). IBA – Borderless Asia: international arbitration and its role in ASEAN integration – Asia Pacific Regional Forum, December 2015. [online] Ibanet.org. Available at: https://www.ibanet.org/Article/Detail.aspx?ArticleUid=f6ea87dd-b39d-4021-9cb6-e1abdeca3e17

The Economist Intelligence Unit. (2017). Prospects and challenges on China’s ‘one belt, one road’: a risk assessment report

Shi, T. (2017). Chinese Firms Wary of Political Risks on Xi’s Belt and Road. [online] Bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2017-05-22/chinese-companies-wary-of-political-risks-on-xi-s-belt-and-road

Blue Book of Chinese Enterprise Globalization. (2017). Beijing: Center for China and Globalization, pp.3-6.

Flyvbjerg, Bent, What You Should Know About Megaprojects and Why: An Overview (April 7, 2014). Project Management Journal, April/May 2014.

ICC – International Chamber of Commerce. (2018). ICC report confirms Singapore as a leading Asia arbitration hub – ICC – International Chamber of Commerce. [online] Available at: https://iccwbo.org/media-wall/news-speeches/icc-report-confirms-singapore-as-a-leading-asia-arbitration-hub/

Chandran, N. (2018). China plans to create new international courts, and that has a lot of people worried. [online] CNBC. Available at: https://www.cnbc.com/2018/02/01/china-to-create-international-courts-for-belt-and-road-disputes.html

Nortonrosefulbright.com. (2018). Launch of the Singapore International Commercial Court. [online] Available at: http://www.nortonrosefulbright.com/knowledge/publications/127746/launch-of-the-singapore-international-commercial-court

Disclaimer: The opinions in this article are those of the authors and do not represent Wisenet Asia Pte Ltd.

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Articles, Talent Acquisition

Can Recruitment Apps Replace Professional Recruiters/Headhunters?

Written by TY Chin
Copyright © 2017 WiseNet Asia Pte Ltd. All Rights Reserved

Recruitment apps are able to filter resumes and hire people but they could never replace the complex human intricacies involved in recruitment that only human themselves could work out. Technology will help with routine tasks within preset parameters, but beyond that are more complex issues such as managing employer and job candidates’ expectations, selling the company and brand to high potential candidates, analyzing an individual beyond their projected outlooks, and so on. It’s a people business that requires complex human handling.

The ability to see beyond a projected image

An app might be able to analyse one’s facial expression during interviews. However, people are trained to project a certain outlook and speak certain ways to sell themselves. A trained recruiter with an eye for detail will be able to see beyond the packaged image, tell if the real personality is a good fit for the company’s culture, whether the candidate will be able to get along well with existing team members, and if they will be happy in the company environment.

Employee and employer’s personalities match/mismatch determines how they interact with each other and perform at work. Ultimately, mismatches affect bottom line company performance.

Recruiters have deeper insights through their networks

Candidate’s self-perception and how peers see them might be different. One’s self-perception determines how they present and write about themselves. Headhunters or professional recruiters who spent their career knowing both candidates and clients will be able to discover the other aspects that the candidates might not even know about themselves.

People who worked on the same team in the same company at the same time might not be equal performers; though their resumes will imply so. A professional recruiter who follows the candidates throughout their career will be able to discover the differences through their sources.

Professional recruiters have their own system of candidates’ management, which help them to keep track and communicate with countless candidates that they have encountered. The system also enables them to keep in touch with high quality candidates. Being in the know means a professional headhunter is more likely to know if someone with good resume in linked-in is ready to switch or not. Thus, they don’t spam potential candidates with unsolicited job notice, hence maintaining a positive relationship.

“Selling” a job to quality candidate

A job advertisement will attract existing job seekers. However, for senior post with more stringent requirements, there might be better candidates who are not looking for a job but are more qualified. Headhunters, who network in their job, will be able to pick up more qualified candidates from their contacts list and then soft sell the new job. A professional headhunting recruiter is also able to manage the process of closing employer/candidate expectations, and provide counselling to candidates through a seamless job switch.

Globally, what do HR veterans think about technology versus human recruitment?

“If you think about the smartest, most switched-on person you’ve ever worked with, and then think about the biggest slacker and do-nothing person you’ve ever worked alongside, the contrast between those two people is obvious. Yet no ATS in the world could distinguish between them, as long as the two people worked at the same job in the same company at the same time.” Liz Ryan, Forbes (source)

“Some of this “data” is not machine readable: for example, how a candidate presents themselves, how they answer questions, and the attitude and intelligence they display.” Andy Campbell, Personnel Today (source)

“While a candidate may have the perfect experience and skills for a particular job, he or she may turn down an interview request simply because they don’t want to work in that industry. Whereas a headhunter would have known this and not approached a candidate with the opportunity, corporate recruiters looking for talent on LinkedIn simply lack this insight….What’s missing from recruitment in the age of LinkedIn is the personal connection. It was the deep understanding of candidates that made headhunters so successful.” Maury Hanigan, Entrepreneur (source)

In conclusion, talents are bottom line pre-requisite for every company, and recruitment is the intricate function that puts talents at the right place at the right time. Recruitment is about knowing the good people, maintaining the relationships and encouraging productivity. There is still an extent where the computer algorithms can handle and manage complex human behaviours. Ultimately, it’s still the human touch that makes the difference.

Articles, Belt Road Initiative

Promising boom in Aviation Industry of Western China

Written by TY Chin Copyright © 2017 WiseNet Asia Pte Ltd. All Rights Reserved In the next three years, the Chongqing aviation industry will see massive growth through the development of an Aviation Economic Demonstration Zone. The zone will house an aviation economic ecosystem that consists of aircraft manufacturing, aircraft supporting industries, logistics and various intelligent manufacturing […]

Articles, Belt Road Initiative

10 Key Facts about the 1 trillion Belt and Road Initiative

Updated 7 Oct 2018

Written by TY Chin
Copyright © 2017 WiseNet Asia Pte Ltd. All Rights Reserved

1. Objectives

For Belt and Road Initiative (BRI) or One Belt One Road (OBOR) Countries: China led shared economic growth through joint infrastructure developments and trade connectivity.

For China: New markets for China products; exporting of China’s engineering and technology expertise, drive growth in the hinterlands.

2. Coordinating Government Agency

National Development and Reform Commission (NDRC), China’s premier economic planning agency.

3. The Routes

Silk Road Economic Belt consist of three land routes from China’s western region through Central Asia, extending up to North of Europe.

21st Century Maritime Silk Road consists of two shipping routes from Western Asia, through South East Asia, Africa and Europe.

4. Coverage

3 continents – Asia, Europe and Africa, 68 countries, 1/3 of the world’s GDP and 62% of the global population.

5. Common Traits of Belt and Road Countries

Belt and Road countries in Asia are mostly emerging economies with infrastructure deficits, except Singapore.
Suppliers of natural resources.

6. Major Beneficiaries

Banks in ASEAN, large scale infrastructure and townships developers, construction companies, construction engineering machineries, building materials, marine projects, water and power installations.

7. Financiers

China Policy banks: China Development Bank (CDB) and the Export-Import Bank of China (EXIM). Both have extended $200 billion loans in Belt and Road projects as at 2017.
Multilateral development banks: Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), New Development Bank (NDB). AIIB was set up specifically for funding infrastructure projects, it has a registered capital of $100 billion with 56 members countries. ADB’s key mission is to eliminate poverty. Southeast Asia and South Asia are major destinations for ADB’s lending.
Funds: Silk Road Fund. Renminbi Overseas Funds and China-Russia Development Fund. The Silk Road Fund was launched in 2015 with $40 billion of initial capital.

8. Flagship project

The China-Pakistan Economic Corridor (CPEC) is a massive infrastructure development program in Pakistan. Started in 2013, the CPEC is budgeted to cost USD62 billion. The project is estimated to create 2.3 million jobs between 2015–2030, and add 2 to 2.5 percentage points to the country’s annual economic growth.

9. China Outward Direct Investment in ASEAN

(in million US$)

Year\Country	Thailand	Malaysia	Singapore	Indonesia
2016	1071.91	1407.77	6037.70	354.77
2017	255.15	1600.46	4483.80	1840.82

10. Future of Trade in ASEAN

Internationalisation of RMB as OBOR countries increasingly used RMB for transactions.
Reduce trade barriers.
Shifting the global economic centre of gravity.

Disclaimer: The opinions in this article are those of the authors and do not represent Wisenet Asia Pte Ltd.

Sources:

WiseNet Asia. (2017). China Insight: Bridging the gaps between China and Foreign Investments in Belt & Road Initiative (BRI) – WiseNet Asia. [online] Available at: http://wisenetasia.com/china-insight-bridgingbri/China-trade-research.hktdc.com. (2017).

The Belt and Road Initiative | HKTDC. [online] Available at: http://china-trade-research.hktdc.com/business-news/article/The-Belt-and-Road-Initiative/The-Belt-and-Road-Initiative/obor/en/1/1X000000/1X0A36B7.htmCia.gov. (2017).

The World Factbook — Central Intelligence Agency. [online] Available at: https://www.cia.gov/library/publications/the-world-factbook/fields/2111.html

Navigating Asia Pacific, China’s One Belt & One Road Initiative. (2017). 1st ed. CIMB, p.58.

En.wikipedia.org. (2017). China–Pakistan Economic Corridor. [online] Available at: https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor

Ft.com. (2017). China encircles the world with One Belt, One Road strategy. [online] Available at: https://www.ft.com/content/0714074a-0334-11e7-aa5b-6bb07f5c8e12

(“ASEANstats Official Web Portal”, 2018)

Articles, Belt Road Initiative

Chongqing, the Investment Hot Spot in Asia

Written by TY Chin
Copyright © 2017 WiseNet Asia Pte Ltd. All Rights Reserved

Chongqing, the Investment Hot Spot in China

(Image Source: China Tour Map)

For companies that are looking to increase market size in the same region without high investment costs, Chongqing is gaining popularity with its large market size, gateway positioning, local government incentives, bilateral trade deals and strong local infrastructure development.

Chongqing is around 4 hours of flight from major South East Asia cities. It is a municipality under the direct control of the central government. The other three municipalities are Beijing, Shanghai and Tianjin. In terms of market size, Chongqing is the most populous municipality with over 30 million people. Its gross domestic product is 11% year-on-year, the highest among Chinese cities, provinces and municipalities. In the last few years, it has developed into a high growth engine for the western region inland market.

(Image Source: China Internet Watch)

The 13th Five-Year Plan

The Chengdu-Chongqing region is one of the city clusters identified under China’s 13th Five-Year Plan (2016 – 2020) for economic and social development. Chengdu and Chongqing are the two largest business cities in Southwest China. This city cluster consists of 11 cities and over 40 million residents. The five year plan also includes the mandate to accelerate the development of the Wuhan and Chongqing shipping centers in the middle and upper reaches of the Yangtze.

City cluster is an urbanization growth strategy. It is a clustered geospatial layout driven by principal cities, and supported by small and medium cities linked by commuting corridors. By leveraging on the advantages of a combined cluster, economies of scale are created together with job opportunities. For ease of doing business, operating from city clusters enable companies to serve a larger market from a smaller location with lower operational cost.

Belt and Road Initiative (BRI)

Chongqing is a key inland transportation hub for the Belt and Road Initiative. The Belt and Road Initiative is China’s globalization project introduced by President Xi in 2013. It encompasses more than 60 countries, 4.4 billion people and up to 40% of the global GDP. The routes consist of the “21st Century Maritime Silk Road” and the “Silk Road Economic Belt”. The Belt is a land route from China’s western region through Central Asia, extending up to North of Europe. The Road consists of shipping lanes from Western Asia, through South East Asia, Africa and Europe.

(Image Source: 恩典在线； Translated by WiseNet Asia)

Geographical Advantages

Chongqing is situated on the upper reaches of the Yangtze River, the longest river in Asia. Its location in the Yangtze River economic belt is intersectional with the transcontinental sea and land routes of the Belt and Road Initiative. This geographical advantage has made Chongqing a major hub in Eurasian logistics and connectivity, where much of the Belt and Road actions are happening.

The China-Singapore (Chongqing) Demonstration Initiatives on Strategic Connectivity (CCI), the third government-to-government project between Singapore and China, is a major South East Asia trade deal and part of the bigger Belt and Road Initiative. From its inception in Nov 2015 until end of 2016, a total of US$3.22 billion financing deals have been signed. The major areas of collaboration are financial services, aviation, transport & logistics, and information & communications technology.

Chongqing is an air gateway to the world with the seventh largest airport of China. For local transportation, the road and rail networks enable travelling time of 4 hours to the counties belonging to Chongqing, and 8 hours to the cities around Chongqing. Chongqing is connected to Southeast Asia through a highway that connects to the port city of Qinzhou in southern Guangxi.

Chongqing Logistics City (Chongqing Western Logistics Park) aims to connect Chonqing to Asia Pacific and Europe. It is a RMB 111.7 billion investment with 4 international routes and 5 domestic routes. From it’s rail terminal, the Chongqing-Xinjiang-Europe (Yuxinou International Railway) is a 11,179 km rail route stretching from Chongqing to Duisburg, Germany. It takes an average of 14 days to reach Duisburg from Chongqing, compared to the 36-day container sea transport time. On May 2017, an extension to the Chongqing-Xinjiang-Europe route, the Chongqing-Guangxi-Singapore express was launched. The Chongqing-Guangxi-Singapore connects inland China with coastal areas in Guangdong and Guangxi, and Southeast Asia, Australia, New Zealand, Middle East and Africa by means of combined railway and sea transport. In the same year, a free trade zone has commenced operations in the Logistics City. With its favourable business policies and free trade status, the free trade zone aims to be a main hub of Belt and Road activities.

Chongqing Industry Park of Human Resources Services

Chongqing Industrial Park of Human Resources

Reception Area (Image Source: 重庆晨报）

Aerial View (Image Source: 重庆晨报)

Recognizing talents as a key driver to growth, the Chongqing’s Industry Park of Human Resources Services is a RMB 20 billion, 158 acres industrial park that aims to be the centre of human resources solution for the western region. The industry park will be the base of human resources companies that provide talent recruitment, learning and development, expatriates work permit services and other HR services. The park’s operating model is an internet platform that provides for various talents solutions in Chongqing. The City Council is also in the same location, providing the public services of overseeing workers’ social security, facilitating employment and entrepreneurship, providing vocational training and so on. Being in close proximity enables closer working ties between the State authority and private HR companies.

In 2013, the city has a total of 265 human resources service agencies, employing 8819 people, with a turnover of RMB 10.4 billion. In a short period of 3 years, as of the end of 2016, the number of human resources agencies has grown to 1042 in total, employing 20373 people, with turnover of RMB 22.54 billion. The strong growth in the HR industry reflects economic growth that is set to continue with ongoing push factors.

Final Thoughts

For the year 2016, China’s GDP grew 6.7%, the slowest in 26 years. On the contrary, Chongqing continue to be the fastest growing major city with year on year growth of more than 10%.

Chongqing’s economic growth engine is running strong, propelled by government policies, bilateral trade deals and geographical advantages. In particular, it’s bilateral trade deals have given favourable trade position for companies in South East Asia.

This article was last edited on 22nd August 2017.

Sources:

The 13th five-year plan for economic and social development of the People’s Republic of China.
En.wikipedia.org. (2017). Chongqing.
En.wmlip.com. (2017). Welcome to Chongqing Western Logistics Park.
Cq.xinhuanet.com. (2017). 西部第一家!重庆有个辐射全国的”人才聚宝盆”.

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Articles, Talent Acquisition

Hire more effectively! 6 Simple Recruiting Tips to Know

Written by TY Chin.
Copyright © 2017 Wisenet Asia Pte Ltd. All Rights Reserved

Recruitment is an ongoing HR agenda as top talents are always in demand to drive bottom line profits. If done wrongly, recruitment could cause the company to lose money. The function of hiring is becoming more sophisticated with continuous refinement and technology enablement. There are fast rules for getting the best value such as buying top position advertisement space, featured advertising, choosing certain times and days of the week, etc. However, while there are standard measures to improve the recruitment function, there are also the core fundamentals that will ensure better returns over the long run. Here are 6 tips for employers to consider as part of their hiring best practice:

Employer branding

Candidates choose ‘The Brand’ when all things are equal. Just like when a consumer has doubt in choosing a product, they will choose the brand they have heard of and know what the brand represents. This is known as a safe choice. “Employer branding” refers to how companies position themselves as a positive brand to work with. It starts from within with a system of welfare encompassing individual growth opportunities, clear value path and on the job benefits. Building good employee reputation starts from inside out.

Many companies have made a lot of effort in refining employment benefits to keep good employees and attract talents; these efforts should be made known to candidates. Especially for Small Medium Enterprises (SMEs) who often find it hard to attract talents compared to multinationals, candidates do not know who they are and what they represent. There are pros and cons working for SMEs and multinationals, SMEs should communicate their employer brand story more in various touch points such as Facebook, Instagram, a little goes a long way. Eventually, when they do hire, at least candidates can see a historical pattern of priority on employee well-being.

Simple and Specific Job Advertisements

Job advertisements should be straight to the point, simple and very specific. Even though there are circumstances where the requirements need to be very detailed going up to ten pages, despite the high level of detail, good candidates are likely to be put off.

A job advertisement with a just few lines about the job and basic requirements will make it easier for candidates to find the job they desired. If in doubt, always check out the professional head hunters’ recruitment advertisements, they are always specific with only the key elements.

The Right Character

Skills can be trained, but it is hard to change an individual’s personality and character. An individual’s character can largely dictate the extent of their contribution in a team environment, affecting productivity. Character, not academic results, should be evaluated thoroughly when choosing candidates to hire, if the work experiences are almost similar.

Some companies have realised this and placed character traits as part of their job requirements. To ensure that people with the right character traits are hired, recruiters can run personality test during interviews, screen the candidates’ social media profiles and also ask for referrals.

Engage Professional Recruiters for Senior-Level, Complex Jobs

Senior-level and complex job roles require thorough and structural process management from short listing to on-boarding. Professional recruiters have a methodical way of hiring and are unbiased as the objective party between organisations and candidates. They are able to line up qualified and the right fit of candidates through their reputation and database of contacts.

Once the candidate is on the job, the external recruiter can still act as a mediator should differences arise between employer and the candidate. Sourcing out C-level roles may require a high level of confidentiality, which can be easily managed by a third party professional recruiter through non-disclosure and confidentiality agreements.

Social Media Recruitment

Social media is a free platform for companies to reach out to a wider pool of candidates. The available social recruitment tools include Facebook, Instagram, Twitter, LinkedIn, Wechat and Weibo. Live streaming in Facebook, Periscope and some live video apps enable candidates to see what it’s like working in the company, so that they can better decide whether the workplace is right for them. A live Q&A session answers candidates’ queries on the spot about the job. Anyone can post questions on the employer’s Facebook or LinkedIn pages and get answers available to be seen by the public.

The best approach for recruitment advertising is a combination of traditional media, professional job portals and social media because active job seekers often look into the main job seeking mediums before searching anywhere else. Passive job seekers respond more to social media and may cost the same or more to recruit compared to active job seekers because they are not motivated job changers. Nevertheless, social media still has the best advantage in speed of communication.

Versatile Staff with Diverse Perspectives

The last tip is also the one which we concluded bring in the most value to any company: Someone versatile with diverse perspectives and skill sets bring new ideas to the company. Being versatile, they are able to multi-task and strive to deliver what is needed for other tasks. They could make up for whatever is lacking in the team by becoming an all rounder.

Fast measures in recruitment such as top spot job advertisements and technology enablement help but adoption of the hiring fundamentals guarantees safe returns on investments.

Articles

Did you know? The 15FQ+™ Test

One of the well-known psychometric tools WiseNet Asia uses is the 15FQ+™, also known as Fifteen Factor Questionnaire Plus.

15FQ+™ is an advanced and comprehensive personality test which analyses the potential capabilities of an individual according to personality traits he/she possess.

Using established, quality psychometric tools has helped us in finding the right candidates for our valued clients. They are an asset to us in making strategic and highy effective recommendations of our candidates – based on their personality/motivation, together with the working culture in the hiring company.

WiseNet Asia strives to deliver quality search and value added services to our clients in many ways to achieve high success.