US, China closer to trade deal despite harsh rhetoric

The US and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal despite tensions over Hong Kong and Xinjiang, people familiar with the talks said.

The people, who asked not to be identified, said that US President Donald Trump’s comments on Dec 3 downplaying the urgency of a deal should not be understood to mean the talks were stalling, as he was speaking off the cuff. Recent US legislation seeking to sanction Chinese officials over human rights issues in Hong Kong and Xinjiang are unlikely to impact the talks, one person familiar with Beijing’s thinking said.

US negotiators expect a phase one deal with China to be completed before US tariffs are set to rise on Dec 15, the people said. Outstanding issues in the talks include how to guarantee China’s purchases of US agricultural goods and exactly which duties to roll back, they added.

Trump, speaking on Dec 4 at a meeting in London with German Chancellor Angela Merkel, said the discussions with China are going very well. “We will make a lot of progress,” he said.

When asked in Seoul about whether the trade talks can be finished this year, China’s Foreign Minister Wang Yi said, “It depends. China’s stance is very clear. There is hope, as long as it is based on mutual respect and equal consultations,” according to Phoenix TV. — Bloomberg LP

Huawei sues FCC in fight for greater US market access

Huawei Technologies Co has sued the US Federal Communications Commission, seeking to overturn a regulatory decision that will hurt the Chinese corporation’s business with its last major US clients.

China’s largest technology company by sales said it has filed a lawsuit with the Fifth Circuit Court of Appeals, challenging the US agency’s decision to bar the use of federal subsidies by rural carriers purchasing its equipment. Huawei complained it was not accorded due process and was unfairly labelled a national security threat.

The lawsuit is the latest attempt by Huawei to fight US sanctions and curbs that threaten the world’s largest networking business. Huawei, which the White House accuses of aiding Beijing in espionage, is stepping up a worldwide legal and publicity campaign to protest what it deems unfair treatment by the US and its allies. It has turned increasingly to courts to fight a plethora of issues from alleged defamation to US network restrictions.

“The US is great because it embraces openness, inclusiveness and the rule of law,” chief legal officer Song Liuping told reporters at a briefing in Shenzhen on Dec 5. “If it abuses its power, the ultimate loser may be itself.” — Bloomberg LP

‘Room for improvement’ in overall sustainability reporting

Sustainability reporting, while made mandatory for Singapore-listed companies since 2017, “definitely” has “some room for improvement”.

This is according to a joint review released on Dec 4 by the Singapore Exchange Regulation (SGX RegCo) and the Centre for Governance, Institutions and Organisations (CGIO) at the National University of Singapore Business School.

“A well-structured sustainability report usually contains a leadership statement, materiality assessment, stakeholder engagement, performance and targets,” SGX RegCo and CGIO note in the report.

Singapore-listed companies have garnered an overall average sustainability reporting score of 60.6 out of 100 points.

On a positive note, the joint review shows that almost all listed companies have produced their sustainability reports on a timely basis following the mandating of the requirement.

About 80% of companies reported for the first time, and the number of reporting companies was five times that of a year earlier, SGX RegCo and CGIO say.

The review covered some 495 SGX-listed issuers that had released their sustainability reports on SGXNet as at end-December 2018.

“Global demand for responsible investing is growing and more corporates are responding to this development by integrating sustainability considerations with business strategy,” says Tan Boon Gin, CEO of SGX RegCo.

“What we have seen over the past couple of years is an astronomical rise in the level of interest in sustainability.” — By Uma Devi

Six in 10 Singaporeans not prepared for comfortable retirement

With many Singaporeans juggling a myriad of concerns such as home mortgages, expensive childcare and mounting healthcare costs for aged parents, saving for retirement may seem like a secondary priority.

But alarmingly, some 60% of Singaporeans are not adequately prepared for retirement, according to the Syfe Retirement Readiness Index (SRRI).

The index calculates the individual preparedness of 1,000 working adults aged 25 to 60, based on expectations around their retirement lifestyle and needs, current income, accumulated savings, saving rates and investments, as well as other factors such as home ownership.

Each individual was then given a score, essentially eliminating a “standard benchmark” of retirement that not everyone may consider relevant for their own needs.

The SRRI scored individuals across levels of retirement readiness, ranging from high (scores over 130), adequate (between 100 and 130), low (70 to 99) and very low (below 70).

The median SRRI score in Singapore is 82, with some 60% of respondents scoring below the baseline score of 100 that denotes an adequate level of retirement readiness.

Dhruv Arora, founder and CEO of Syfe, says the SRRI is a “wake-up call” for everyone to start taking their retirement plans seriously.

“Unfortunately, misconceptions about expectations in retirement and a lack of real financial literacy has left many in a difficult position where they may not be able to reach their own goals — often without them even knowing,” Arora adds. — By Uma Devi

Singapore salaries to rise in 2020 amid ‘shrinking’ talent pool

Singapore’s economy may be facing headwinds and inflation’s muted, but companies here are set to step up salary increases next year in a bid to retain staff, according to a survey.

The overall increase projected for 2020 is 3.7%, up from a 3.6% rise this year, according to Mercer, which conducted the survey across industries from banking and finance to real estate. One in three companies now pays retention bonuses, up from one in four in 2017, it says.

“Talent pools are shrinking,” according to Mercer, which says that companies may struggle to keep workers even after offering more compensation.

There needs to be a shift towards “more holistic talent strategies that acknowledge pay as only one means of differentiation and motivation”, Kulapalee Tobing, Mercer’s career products leader in Singapore, says in a statement.

Income growth in Singapore has slowed this year as the labour market softened, according to preliminary data last week. The real median income of full-time employed residents weakened to 2.2% in June from 4.4% in the same period last year, the Ministry of Manpower says. — Bloomberg LP

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