Re:locate Global, Asia Pacific Spring 2014

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Re:locate G L O B A L

FOR HR, GLOBAL MANAGERS & RELOCATION PROFESSIONALS

G L O B A L

MOBILITY RISING HIGH IN ASIA PACIFIC

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FOR HR, GLOBAL MANAGERS & RELOCATION PROFESSIONALS

Full Asia Pacific digital edition available June 2014For your copy, register at relocateglobal.com today!

2 | Re:locate Asia Pacific | Spring 2014

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We are committed to quality journalism, the exchange of ideas, tracking growth and enterprise, and the provision of data and market intelligence to support the management of global teams and promote the highest-quality relocation experience.

PRINT & DIGITALRe:locate is published quarterly and available in digital format via the website. Special industry focus and country supplements are being introduced in print and digital format. Re:locate GLOBAL regional editions will be available via the website, starting with Europe and Asia Pacific.

WEBINARSNew series for 2014, including women leaders, Millennials, talent and mobility, and country analysis.

E-NEWSLETTERSOur online newsletter, Re:locate Extra, keeps you in touch with top stories, news and events. New this year: subject-specific e-newsletters covering property, education, and regions.

AWARDSThe most prestigious awards in the sector.

WEBSITESOur new website for HR, global managers and relocation professionals, relocatemagazine.com, is visited by international decision-makers and professionals from across the spectrum of HR, global and domestic mobility, global management and relocation. Don’t miss our specialist jobs board for relocation professionals.

Introducing our exciting social media website, Connect & Grow.

To be launched later in 2014, our new global website for relocating employees and their families, Smart Move (smartmoverelocate.com), will offer reassurance and practical advice on topics from property and schools to lifestyle and partners’ career options.

APPSLook out for our new range of apps and mobile websites, launching in 2014.


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The TeamManaging Editor: Fiona [email protected]

Editor: Louise Whitson

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© 2014. Re:locate is published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein. ISSN 1743-9566.

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“ Sharing the best in global mobility thinking and practice

”

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Welcome to this preview edition of Re:locate Asia Pacific, in which we share with you the best in global mobilty thinking and practice, to help organisations of all sizes to manage and retain talent successfully in any location, and across every stage – from starting up in a new location, to planning and preparing for the relocation, to

managing the assignment.

In this issue, we explore the value of a partnering approach between global mobility and talent management. Other highlights include the latest on relocation-related technology tools and applications, the international schools’ picture, the region’s lively residential and commercial property scene and challenges facing employers and those managing assignments in Australia.

In February, we at Re:locate created our own burst of energy with a networking reception in London to launch our new social media website, Connect & Grow (candgglobal.com). Judging from the animated conversations and energy in the room, there will be plenty of benefits for our whole global community. Check out the videos on YouTube, and see page 20 for details of how you can help your organisation to connect and grow.

The full version of the new Re:locate Asia Pacific will be available in June. This digital magazine will included coverage of hot topics and trends from the WERC APAC Summit, examine how serviced apartments and schools are responding to growth in the region, and provide insights from around the region. Register today at relocatemagazine.com to receive your copy.

Our website will also keep you in touch with daily news and comment on the APAC region and from around the world. Let us know what industry sectors you would like us to cover, what challenges you face, and your burning issues.

Fiona Murchie

Managing Editor

[email protected]

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The survey, which was undertaken by relocation specialist ECA International, found that, despite rents for high-end property in the city falling for

the second consecutive year, the average unfurnished three-bedroomed apartment in a sought-after area of Hong Kong cost US$11,440 per month.

This figure is 1 per cent lower than 2013’s and 3.6 per cent less than 2012’s.

Hong Kong combines a high population density with a limited supply of property, so it’s no surprise that average rents there have long been significantly higher than those in other world cities.

A high-end three-bedroomed apartment in Hong Kong

costs almost US$2,200 more per month than an equivalent property in Moscow, the next-most-expensive city in the global rankings – despite rental prices in the Russian capital having risen by approximately 4 per cent between surveys.

Caracas, in Venezuela, is third in the ranking. In local currency, rental prices there have increased by a dramatic 50 per cent since last year, owing to the country’s rampant inflation and construction failing to keep pace with demand. However, the much-weakened bolivar means that the increase is considerably less significant when converted into US dollars.

The list of the five most-expensive locations in the world in which to rent a high-end three-bedroomed apartment is completed by New York and London.

According to recent research, Hong Kong remains the most expensive location in the world in which to rent a luxury three-bedroomed apartment, Asian investors are snapping up properties in London, and Hong Kong’s officescape looks set to see major changes.

FOCUSPROPERTYin

PROPERTY


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Globally, rents for a three-bedroomed high-end apartment average US$3,000 per month.

Lee Quane, regional director of ECA International, Asia, said, “Housing provision for expatriate staff is an expensive, important and often emotive element of the overall remuneration package.

“A fair and competitive, yet cost-effective, approach can best be achieved by being consistent across locations.

“This can be facilitated by establishing budget tables based on family size and, in some cases, seniority, all of which should be factored into a well-considered housing policy.

“Companies also need to manage the expectations of their global staff: someone from the United States, for example, may well be used to a more spacious property than they are likely to find if they are assigned to Hong Kong.”

Asian investors snap up London homes

Meanwhile, research frrom the British Property Federation has revealed that overseas buyers accounted for 15 per cent of purchases in London in 2013. In prime London, the figure was 80 per cent.

Many of the overseas investors come from Asia and Singapore. Iain Brand, joint managing director of Hong Kong-based Direct Property Group, commented, “There is undoubtedly an appetite for London’s property market from our investors across the world, but particularly in Asia.

“We’ve noted a surge in interest in the past few years, mainly down to beneficial exchange rates. Prime Central London’s real estate is also regarded as relatively safe and secure, which is attractive to our buyers – and 2012’s Olympics in London has obviously fuelled demand. Its education system, vibrant culture and an ethnically diverse population are cited time and time again as reasons for investing there.

“While factors in our home market continue to drive residents out – including property prices rising by 60 per cent since 2009 – overseas property investment is a valuable income for many in Asia. Buy-to-let allows some investors to take a yield, while others buy more for capital appreciation. And the spotlight is firmly on London at the moment: the strength of the Singaporean dollar in the last two years means London has looked significantly cheaper.”

Mr Brand concludes, “The volatility of markets over here is driving people to Europe and London, in particular. Hong Kong and Singapore’s housing markets saw prices plummet 56 per cent and 72 per cent respectively in one

year during the recession, compared to 11 per cent in prime central London.

Hong Kong officescape to take new shape

Significant new trends have been identified in the Hong Kong Office 2020 report released by professional services and real estate specialist Jones Lang LaSalle (JLL). The report anticipates how the market will be shaped over the next six years, identifying the major trends that will impact upon landlords and occupiers. They include:

• Rising demand for office space from Chinese corporates

• Evolution of new office hotspots, including Hong Kong East, Kowloon East, Wanchai/Causeway Bay and West Kowloon

• Completion of new public transport infrastructure, making relocation outside Central more attractive to tenants

• New technology and management theories that will influence office architecture and space

• Shifting attitudes in tenure, with owner-occupancy increasingly favoured

• Growing demand for sustainable buildings, and a shift towards landlords passing savings on to occupiers

The report predicts that Hong Kong will gradually become a multi-nodal office market as a result of government policies promoting land supply and the emergence of new transport infrastructure. The shift will be further encouraged by a surge in tenant demand, largely resulting from the growing presence of Chinese corporates.

Gavin Morgan, COO and head of leasing at JLL, said, “The real-estate market in Hong Kong is set to change dramatically as we approach 2020. It is important for landlords and occupiers to adjust their strategies in order to stay competitive and maximise their returns.”

For the full story, see relocatemagazine.com


EMPLOYMENT

Global recruitment company Hudson’s Salary & Employment Insights 2014 survey for Singapore reveals that four out of ten of those surveyed

have changed jobs in the last two years and 71.4 per cent are currently seeking a new position.

The findings, which are based on responses from 477 employers and 1,292 employees, suggest that the quality of employers’ leadership and management will play a fundamental role in successful hiring.

More than two-thirds (68.3 per cent) of respondents reported having left a job because of a poor manager. Furthermore, 63.3 per cent are considering leaving their jobs because of a poor manager, and 46 per cent of those who currently have a poor manager are actively looking for a new job because of it.

The report also indicates that employers are aware of leadership shortcomings; 36.7 per cent of respondents say they do not have the training they require to perform a leadership role successfully, and 32.5 per cent report not having a budget for professional development.

Interestingly, 60.4 per cent of managers also stated that they would prefer undergoing leadership training to taking a standard pay rise.

“There is a potentially significant issue regarding the need for more effective leadership within Singaporean organisations,” said Andrew Tomich, executive general manager of Hudson Singapore.

“It’s clear that strong leadership impacts engagement, driving productivity

and increased employee retention. This is something that should not be ignored, particularly in a climate where there is increasingly high potential for movement within the workforce.”

The survey also offered clear feedback regarding what employees view as the most important leadership qualities, with respondents citing:

• Treats staff fairly (67.2 per cent)

• Is supportive of staff (65.1 per cent)

• Provides clear and transparent communication (57.5 per cent)

• Has a clear vision of what to achieve (45.9 per cent)

“Our findings clearly demonstrate that the workforce is willing to move, and move quickly,” Mr Tomich added.

“The impact to the business and cost of replacing, training and upskilling new workers is likely to be much higher than retaining and developing staff that are already performing well, particularly when high-performing individuals leave the business.”

MANAGEMENT & LEADERSHIP DEFICIT

DRIVES JOB-HOPPING IN SINGAPORE New research has revealed

leadership shortcomings among Singapore’s employers which may have a significant impact on employee engagement, retention and productivity.

A strong foundation for growth coupled with robust capital inflows will enable India to outperform recent forecasts, according to the latest India Attractiveness Survey from multinational professional services firm EY.

SPOTLIGHT ON

country managing partner for India and chairman of the emerging markets committee, said, “For investments to materialise, the environment must be more enabling, and measures on other competitive issues, including currency stability and ease of doing business, must be implemented.”

The two suggest that this year’s elections will be decisive for new players as the election results come in and expectations are formed in terms of sustaining the pace of reform and deregulation.

As well as the business environment, investor perceptions around investment destinations may need to change. The EY panel believes that around half of FDI flows to Mumbai (51.2 per cent), followed by Bengaluru (37.8 per cent) and New Delhi (37.4 per cent).

However, FDI Intelligence data identifies a much more even spread of investment across these metropolitan cities: 14.8 per cent, 15 per cent and 16.1 per cent respectively. This, says the report, suggests a “significant awareness gap about Tier II and Tier III Indian cities, which also offer opportunities for investment.”

Montek Singh Ahluwalia, deputy chairperson of the Indian government’s planning commission, said, ”The longer-term perspective is, therefore, one in which the current slowdown will hopefully be overcome in the next two years, and India will be back to average annual growth of around 8 per cent.

“This growth should be inclusive, leading to a substantial reduction in poverty and the emergence of many more growth poles across the country.”

For its latest India Attractiveness Survey, global professional services firm EY sought the views of international and local leaders and opinion formers

to examine the perceptions and realities around foreign direct investment (FDI) flows.

The key conclusion of India – enabling the prospects is that, despite recent headwinds, India remains one of the world’s most attractive destinations for FDI, behind the US, China and the UK, thanks to its solid domestic market, educated workforce and competitive labour costs.

According to FDI Intelligence (a specialist division of The FT) data quoted in the report, India’s share of FDI is the fourth-largest globally in 2012. This values the country’s capital inflows at US$565 billion, creating 1.62 million jobs – or 9.4 per cent of jobs created globally through FDI.

India’s “strong basic fundamentals”, including a high savings rate, an increasingly skilled labour force and a dynamic private sector, will help to drive its growth in the next two years following the short-term slowdown, according to EY’s analysis.

The consumer products, industrials, technology, media and telecom (TMT) and life sciences sectors are identified as key to India’s growth in the short term.

The report also points to the risks investors face, including poor infrastructure and the need for further economic reforms – particularly for those considering India as a base for service and manufacturing supply chain operations.

Commenting in their foreword to the report, Jay Nibbe, chair of EY’s global accounts committee, and Rajiv Memani,


INDIA


incorporating both supply and distribution channels. As investment and growth rates continue to increase, multinational organisations are dispatching an ever-larger number of staff to emerging markets to manage investments and ensure efficient operation.

While the demand for human capital in emerging markets is expanding rapidly, companies are experiencing difficulties in enticing employees to move to various key emerging markets. Securing a stable supply of globally mobile skilled professionals has accordingly become a top priority for multinational companies competing in multiple jurisdictions.

Similarly, governments in emerging markets have a strong interest in ensuring that talented professionals across the globe are attracted to their jurisdictions, because those that do not will find it increasingly difficult to ensure they have access to the skills necessary to attract multinational companies that can improve their ingenuity, productivity and competitiveness.

According to the report, ‘Millennials’ have envisioned a specific career experience that, in addition to factors

The ability to facilitate an easy transition for foreign professionals into emerging markets is crucial if governments and multinational companies plan to secure skilled international workers, says Sharaf Sultan, an associate at law firm Heenan Blaikie, of employment law alliance lus Laboris.

Globalisation continues to drive the expansion of trade in goods and services between nations. At the same time, trade between so-called emerging

markets and mature-market nations represents an ever-increasing percentage of global trade.

Whilst, according to a report on global mobility by accounting and consulting firm PwC, more than two-thirds of recent global graduates desire overseas assignment, only a fifth would consider working in an emerging market.

National economies are also becoming increasingly interconnected and integrated with one another, as multinational organisations invest across jurisdictions,

Let’s get

MOBILITY MOVE >>Let’s get

GLOBAL MOBILITY


such as job satisfaction and skills development, places the opportunity for international mobility as a top priority. The report specifically notes that 71 per cent of recent graduates questioned worldwide expressed a desire to work abroad for at least a portion of their career.

Gravity shifting

Global immigration has traditionally been almost exclusively one-directional, with labour moving from emerging markets to developed countries such as the United Kingdom, France and the USA. The ‘export’ of labour from developing economies has consistently supported growth in developed countries for more than a century.

With the expansion of global trade, emerging markets are attracting an ever-increasing percentage of foreign direct investment. As multinational organisations grow their investments in emerging markets, they are increasingly moving skilled workers from their home markets. According to PwC, the greatest demand for key professionals can be found in China, India and Brazil.

However, only 16 per cent of new graduates are willing to move to Brazil and 11 per cent to India, while only 2 per cent demonstrate any discernible interest in working in mainland China.

Seeking fortune abroad

Much of the developed world has, in recent years, experienced anaemic economic growth; simultaneously, many key emerging markets have continued to enjoy steady rates of growth. Unemployment in the United States and Western Europe has continued to rise, while rates of youth employment have dropped to record lows.

In such an atmosphere, one would assume that job opportunities in developing countries would be irresistible to recent graduates. From a purely economic perspective, it seems only logical that multinational companies should have no difficulty in attracting scores of talented workers to emerging countries. How does one, therefore, explain the PwC report’s finding of a lack of interest in emerging-market employment, particularly from new graduates, who

MOBILITY MOVE >>on the

GLOBAL MOBILITY


are tied to career development, and that the advantage of this experience is clearly articulated. This could include managerial programmes that ensure that employees are ‘management-ready’ for top positions following assignments abroad.

Reforming the rules

Put simply, governments in emerging markets would be wise to undertake legislative reforms in order to attract the best talent. Such measures would allow them to attract the assets most needed to compete at an equal level with the West. Developments in recent months indicate that governments are beginning to rise to the challenge.

Recently reports have indicated that China has decided to lift its stringent regulations on social media within the free-trade zone. Uncensored internet access will specifically now be available in a small area of Shanghai. According to the South China Morning Post, the idea is that “in order to welcome foreign companies to invest and to let foreigners live and work happily in the free trade zone, we must think about how we can make them feel at home”.

It appears that the Chinese government’s efforts may be paying off. Specifically, permanent resident visas were up more than 80 per cent from 2012. The majority of new visas are going to Chinese immigrants, or the children of Chinese immigrants, living in the US, Canada, Australia, Germany and Japan.

India has made similar strides, with the introduction of Overseas Citizen of India (OCI) cards. OCI card-holders retain their nationality, but are also issued a lifelong visa, allowing them to work and live in the country indefinitely. The programme is open to children and grandchildren of people born in India, and to former Indian nationals.

The ability to facilitate an easy transition for foreign professionals into emerging markets is crucial if governments and multinational companies plan to secure skilled international workers. Professionals in developed economies considering a move abroad have come to expect certain standards of freedom, security and upward mobility; with sharply increasing demand for foreign talent in emerging markets and a generation expecting international placements, the time has come for corporations and governments to act in unison to correct both the corporate deterrents and major socio-political barriers that obstruct increased global mobility.

are traditionally the most able and willing to relocate?

The answer appears to be that money alone is an insufficiently reliable tool to attract talent, at least for today’s generation of young workers. Rather, new graduates appear to base their geographical preference on a range of factors, including the long-term opportunity which a specific assignment presents, the ease of raising children, population diversity, the cosmopolitan quality of a location, the health of the environment, cultural assets, quality of available food, and the sophistication of infrastructure, both physical and digital.

Today’s generation of workers also appears to be highly sensitive to perceived political and personal freedoms. This is particularly the case in an increasingly interconnected world, where young workers, especially those from developed markets, expect to have uninhibited access to communication channels, whether on the internet or via other devices.

The demands of today’s generation of professionals pose a significant challenge to many emerging markets. The Chinese government, for instance, has in place a sophisticated system of internet censorship, including blocking of websites such as Twitter and Facebook. The country also has strict government oversight over facets of individuals’ lives in a manner which will be unfamiliar to Western citizens.

The insufficiency of monetary compensation in attracting global talent is made clearer when one reviews the lucrative compensation packages available in emerging markets. In fact, a 2013 study by the Dasein Executive Search firm found that CEOs in São Paulo today earn an average annual salary of $620,000 – more than their counterparts in New York ($574,00), London ($550,000) or Hong Kong ($242,000).

What does one take from this? Simply put, developed countries are handily outcompeting emerging markets for the best talent in the world.

Companies paying attention

According to the PwC report, the main priority for organisations now is to have the right talent in the right place for a specific duration of time. Short-term assignments, lasting a year or less, are becoming more prevalent. Such assignments are appealing to younger workers who want to expand their skills and education, and who do not have a family to relocate.

Companies would therefore be wise to develop relocation packages that appeal to today’s graduates. This includes healthcare and benefit provisions to ensure an excellent standard of healthcare, access to high-quality education for children, and housing in environmentally healthy communities with high standards of sanitation.

Companies should also ensure that global assignments

See the International Assignments section

of relocatemagazine.com for news and

practical advice, and join the discussions

at candgglobal.com

GLOBAL MOBILITY

11 | Re:locate | Spring 2014

TECHNOLOGY

TECHNOLOGY IN FOCUS

Compliance with regulations, from immigration to tax, is a key focus of today’s global mobility department. Duty of care is also taking centre stage, as the

results of a recent survey by international corporate travel services company Hogg Robinson show. Data security and managing travel risks and mobile data were among respondents’ top concerns.

Among the latest products for global mobility professionals is a new version of the Travel-LINK app from immigration specialist Pro-Link GLOBAL, which has been developed to address the challenge of managing business travellers. Explains Pro-Link’s Andrea Elliott, “Since international borders within the Schengen Area, for example, are more fluid than others, ‘stealth expats’ are on the rise, and compliance is a must for all multinationals.”

Using the app, mobility departments can confirm at the touch of a button whether a visa is needed in any of more than 140 countries, submit a request for a visa if necessary, and obtain a checklist of required documents. By tracking passport expiry dates, they can ensure that a passport has sufficient validity remaining, plan for passport renewals, and coordinate the application for a second passport.

Travel-LINK also allows HR to access reports on business travellers’ locations and movements by date and country.

Other technology supporting global mobility departments and employees on the move includes Assistance App, from global medical and travel security services group International SOS, which is designed to help travellers in a wide range of situations; they may, for example, need to speak to a doctor in case of illness or accident, or to a security professional when a threat is developing. The app also gives instant access to country guides and alerts. A new location check-in feature allows business travellers to share their location with their employer’s travel, medical and security support teams via International SOS’s TravelTracker platform.

The Summer 2014 issue of Re:locate magazine will include coverage of more technology that is making life easier for employers and their relocating assignees.

Latest developments

Organisations are continually facing change, which is often accelerated by growth into new countries and regions. Changes are also happening more rapidly. It is not surprising that companies look to technology for some of the solutions, particularly as increased productivity and process efficiency are also high on the agenda. There is also the drive to provide real-time access to data.

Mobility solutions have evolved over the years, and now employees, particularly the younger generations, expect their employers to have good technology and state-of-the-art systems with the information they need to make a move viable for them.

For some global organisations, a shared service solution which monitors all travel and international assignments to various countries is the answer. In the summer issue, we will explore advances in this direction, and the pros and cons.

There appears to be a shift in organisations towards making countries and regional projects more accountable for the decisions they make regarding both risk and cost. There is also the desire to understand the value of business need versus talent development moves by analysing the metrics.

Immigration and tax are just two areas that have a significant impact; health and security add another dimension. We will also try to explore how employees feel about being tracked and how they can be motivated to provide the information needed to stay compliant and keep safe.

In the age of cost control, it is vital for business to know the cost of new hires and international transfers, and for project managers to appreciate the costs involved. It often falls to HR global mobility managers to explain the necessity, but tools and systems are being developed that can calculate budgets and offer complete transparency. These may be the solution for organisations with big volumes of moves, but what is on offer for companies that relocate on a small scale?

International group move

In the summer issue, we will focus on some of the complexities surrounding an international group move. This follows on from a lively session at the WERC EMEA conference in London in which Guido Regazzoni, global mobility manager of Thomson Reuters, described how his organisation was moving a small group of intellectual property specialists from their native Russia to a new IP and science hub in Barcelona, Spain.

We will look at what role technology can play, particularly in supporting an international group move.

If you would like to share a case study or help shape the technology of the future, then join in the technology conversation on our new social media website, candgglobal.com, or email [email protected]

Since technology now permeates every aspect of our daily lives, it’s no surprise that it is rapidly changing the way in which global mobility departments do business and support their relocating employees, business travellers and international assignees. Fiona Murchie reports.



What are the most common but unexpected problems employers may face?

In Beijing and Shanghai, marriage and birth certificates need to be translated into Chinese if in a foreign language other than English.

De facto relationships are only accepted in some cities in China. They are not accepted in Shanghai.

In Beijing, before submitting a Dependant’s Residence Permit application, a foreigner must obtain a letter from a government authority in his/her country which states that the couple are in a husband and wife relationship, and then have the letter legalised at the Chinese Embassy in his/her country. Children older than 18 are not eligible for a Dependant’s RP application.

A non-criminal record issued by the Ministry of Justice in the assignee’s home country is needed for Beijing, but not for Shanghai.

Malaysia

Working visa categories

For a 3-month marketing trip, a 1-week business conference, a 2-week visit to an offshore office or a 6-month advisory trip, a Professional Visit Pass would be required as it covers all short term assignments. For a long-term employment period of 1 to 3 years, an assignee would require an Employment Pass. A levy would be imposed for an application for a period of less than a year.

Does the type of business affect the type of visa?

No, but the type/nature of business will determine which category the company falls under, and this has a bearing on the location of where the application must

China


For marketing a product, attending a business conference, advising on technical issues, and/or trade activities, a 6-month Business visa (M or F Visa) is sufficient. For long-term employment (i.e. over 6 months), a Work Permit (WP) and a Residence Permit (RP) (Long term Z Visa) are both required.


The specific type of business does not normally affect the type of visa, as the processes for WPs and RPs and those for WOFEs and Representative. Offices are different.

For Business visas, the duration depends heavily on the Chinese entity (the type of entity, the registered capital listed on the company business license etc.), but the biggest factor in determining the type of visa is the applicant’s purpose in China.

Approval timeframe (once documents lodged)

For WP and RP applications, 7 to 9 weeks are necessary to complete the whole process.

Eligibility Criteria

To apply for a WP and RP to work in Beijing or Shanghai, the assignee would have to conform to the minimum requirements, which are: a university degree, and more than two years full-time working experience after graduation.

In Shanghai the employee must be less than 60 years old if male and 55 years old if female. In Beijing, the employee must be less than 65 years old for either male or female.

VISA & WORK PE RMITS IN ASIA PACIFIC Immigration is a burning issue for any organisation moving employees and their families to a new region. Reloc8 have been established in the region for many years providing destination services for relocating employees and their families. They are well-placed to share some key pointers around visas and work permits.

Handy

Tips!


IMMIGRATION

VISA & WORK PE RMITS IN ASIA PACIFIC be submitted. The requirements/checklist/duration of the visa may vary.


Approximately 7 to 8 weeks, although if certain approvals are required (such as MIDA) then another 1 to 2 weeks would need to be added.


The local sponsoring company must have a minimum paid up capital which should be approximately:

a) 100% locally owned company –MYR250K (USD76,380);

b) 50% joint venture-MYR350K (USD106,930);

c) 100% foreign owned-MYR500K (USD152, 760).

(forex-rate 1MYR= USD0.3055)

The assignee must be contracted to a minimum salary of MYR 5,000/- per month, must hold a university degree, and his/her job title should be of some speciality which cannot be sourced locally.


Non-married couples in a relationship, or “common law wives”, will face challenges, as will citizens of developing countries such as China, India, Pakistan and the Philippines. In comparison, citizens from Commonwealth & European countries will find their application process much easier.

Singapore


If just attending a meeting or a conference, there is no need to apply for an Employment Pass. Most people would enter on a Social Visit Pass as there is no Business Pass in Singapore. For long-term employment of 1 to 3 years, one of the myriad Employment Passes would be required.


As there is no Business Visa in Singapore, applicants engaging in any form of work must apply for an Employment Pass.


Online submission would take less than 7 days, whilst manual submission would take between 4 to 6 weeks.


Tertiary education from a recognised university, the approved minimum salary (see below), relevant experience and no criminal record.

Starting August 2014, firms with more than 25 employees must advertise a vacancy for professional or managerial jobs paying less than S$12,000 (USD 9,448) a month on a new jobs bank administered by the Singapore Workforce Development Agency for at least 14 days. Only after that period can the company apply for an Employment Pass to bring in a foreign national.

The minimum salaries for employment pass holders have been increased to at least S$3,300 (USD 2,598) a month, up from the current S$3,000 (USD 2,362), starting in January 2014

(X-rate: SGD1=USD0.78732)


De facto status is only recognised if a couple is able to prove a long-term relationship, whilst unmarried and legally adopted children under 21 are eligible for a Dependant Pass. Some universities are not recognised by Singapore immigration authorities, and certain nationalities are scrutinised more carefully.

This information was provided by Reloc8 Asia Pacific Group from their 2014 Regional Update

14 | Re:locate Asia Pacific | Spring 201414 | Re:locate | Spring 2014

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AUSTRALIA SPOTLIGHTWhile much of the world has floundered, Australia has proved fairly resistant to the global economic crisis. With slowed growth over the last year, thanks in part to the softening mining sector and a somewhat uncertain political climate, however, the country is looking towards new opportunities for prosperity. Mark E Johnson reports.

Australian government has a federal structure, with power divided between central government and the individual states. Characterised by this

federalism and a separation of powers, the government is made up of an elected Parliament, comprising the House of Representatives (the lower house) and the Senate (the upper house), as well as the Executive responsible for enacting legislation and an independent judiciary.

Because Australia uses a proportional representation system, it’s not uncommon to see a coalition in power. Tony Abbott, leader of the centre-right Liberal Party, formed a government following the 2013 elections, in partnership with the National Party of Australia, ousting the incumbent centre-left Labor Party government.

As is the case in the House of Representatives, neither major party holds a majority in the Senate, leaving the Greens and independent crossbench senators holding significant power. The Economic and Political Overview 2014 report from the Committee for Economic Development of Australia (CEDA) quotes coalition adviser and lobbyist

AUSTRALIA


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Grahame Morris as saying that the current numbers present a Senate favourable to the coalition, but one that will nonetheless require significant amounts of diplomacy to manage.

The Liberal Party’s lack of a majority may create challenges for the government over its term as it seeks to reduce government and build an Australia better equipped to live within its means. The country’s Disability Insurance Scheme, new school funding scheme and spiralling healthcare costs (the result, in part, of an ageing population) are all putting pressure on Australia’s ability to balance the books. The government may be forced to raise taxes if the schemes are going to continue in their current form.

Tony Abbott used his keynote speech at the World Economic Forum in Davos to call for freer trade and less local protectionism, echoing his claim on election night that Australia was once again ‘open for business’. The corporate world was recently surprised, however, when a foreign investment bid for agribusiness firm GrainCorp was rejected.

On the other side of the equation, the government has signalled that it isn’t interested in providing so-called corporate welfare. It recently said it would not give $25 million in support for food processor SPC Ardoma. Justifying the decision to ABC’s (the Australian Broadcasting Corporation) current affairs programme 7.30, Mr Abbott said, “We are moving from the age of unsustainable entitlement to the era of sensible responsibility.”

Major airline Qantas has also asked for government help recently, seeking either changes to the Qantas Sales Act that caps foreign ownership of the company or a guarantee of its debt. Both cases will be regarded by the business community as a test case for government attitudes towards corporate support.

The financials

Speaking to Re:locate about long-term trends for Australia as a destination for business, Scott Strain, director of trade for UK Trade & Investment, Australia and New Zealand, was upbeat, saying, “Australia hasn’t suffered a recession for 23

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years, and consistent economic growth has made it wealthy and more confident of its place in the world. Australia’s proximity to much of Asia and its strong people-to-people and trade links can make it a good base for Asian expansion.”

Still, financial growth in Australia was lacklustre throughout 2013, though analysts are predicting a gentle uptick during 2014 and above-trend gains again in 2015. The Reserve Bank of Australia says it expects the economy to grow this year thanks to stronger activity in the retail and housing sectors alongside a lower exchange rate. The organisation said in February that it expected growth of 2.25 per cent to 3.25 per cent, up from the 2 or 3 per cent it predicted in its October report, with inflation predicted to peak at around 3 per cent in June. The low Australian dollar is expected to boost export and restrain imports.

A substantial drop in mining investment and fiscal restraint will, however, keep growth subdued for the year ahead.

Key sectors

Australia is highly dependent on the Asian economy. In particular, much of the capacity in place around the key mining and energy sectors exists to provide for a growing Asian economy and, with Chinese growth slowing down and supply from projects established when prices were higher coming online, Australian commodities are expected to see a similar contraction in growth.

Mining and commodities have long been drivers for growth in Australia, but, as they slow, other sectors are expected to move into prime positions.

CEDA concluded in its forecast that the housing sector offered the best hope for a smooth transition to growth resting on other sectors. Commenting to Re:locate on the strong housing and retail sectors, however, Jane McNeill, regional director of recruitment firm Hays in Australia, said, “Job creation in both housing and retail is expected, but this has not been enough to stop the unemployment rate from rising to 6 per cent over the past year.”

Highlighting sectors that have a strong British presence, Scott Strain pointed to mining and oil and gas, infrastructure and construction, financial services, defence, business and professional services, biotechnology and health sciences, and ICT. He added, “We have indicated to British companies that there are particularly significant opportunities right now in the building of Australia’s roads infrastructure.”

Jane McNeill named some of the sectors highlighted by Mr Strain as key to Australia’s future. “As our economy transitions from mining-led to a system of micro-economies, five ‘super industries’ will fuel huge jobs opportunities in the years ahead, according to Deloitte. These ‘super-growth’ industry sectors – agribusiness, gas, tourism, international education and wealth management – are worth an extra $250 billion to the national economy over the next 20 years.”

The Deloitte report cited by Ms McNeill, Positioning for Prosperity? Catching the next wave, points to five factors acting

AUSTRALIA


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in Australia’s favour when it comes to taking advantage of growth areas: world-class resources, proximity to growth markets in Asia, use of English, a temperate climate, and well-understood tax and regulatory regimes.

Scott Strain echoed some of the points made in the Deloitte report when discussing Australia as a destination for UK firms. “British companies feel particularly at home here, as the business culture and regulations are often very similar to the UK’s and there are more British people in Australia (1.1 million) than in any other foreign country. There are over 1,000 British businesses already operating here, and the UK is the second-largest foreign direct investor in Australia, so Australians are familiar with

British businesses operating here and receptive to doing business with them.”

Employment

Jane McNeill noted that the country’s recent slower economic growth had impacted employment. As of January, unemployment was 6 per cent, a level not seen since 2003. But there were reasons for optimism, she added. “Although the number of full-time roles has not returned to its peak, there has been an increase in the part-time space; we are still seeing employers hire part-time staff or contractors to manage their workloads while they wait to see if they need to make a permanent hire.”

Ms McNeill said that the anticipated slight upward turn in economic performance should have an effect. “The latest National Australia Bank Monthly Business Survey shows that business conditions maintained last month’s momentum and are approaching three-year highs, while confidence was up for the first time in four months. This should ultimately feed through into the labour market; employers need

The complexities of moves into and out of Australasia are increasingly challenging to manage. Here, members of the Victoria-based Employee Mobility Institute take a look at some of the changes mobility professionals face, and explain how the right approaches can result in a positive outlook.

For many of today’s top professionals, a career in Australasia is high on the list of goals. Global careers are the buzzword for university graduates, who are drawn to the seemingly easy lifestyle Australia and New Zealand offer. However, this perception can have a detrimental impact on new arrivals, who may underestimate the challenges they face. Companies, too, often take a relaxed approach to the needs of their new employees, who not only have to deal with the job at hand but may also have to support the emotional and functional needs of their family.

Company decision-makers need to be convinced by HR that a holistic approach to the entire family is the key and that cross-cultural training is vital. Without the tools to communicate and integrate effectively, there is a strong possibility that the relocation will fail. Companies must understand these cultural differences and be prepared to embrace them in order to ensure the ‘longevity’ of their global workforce.

Australasian companies have been hit with a barrage of legislative changes over the last 12 months, including new immigration policies and amendments to tax legislation. This year, Australia’s privacy policies are being overhauled, which will control the flow of international personal information and require companies to comply further with the protection of personal information.

There are outbound issues as well, with overseas assignments still attractive to highly motivated, educated and upwardly mobile Australian and New Zealand professionals. Combined with the challenges of the Australasian employment landscape and the draw from growth economies like Asia, Australasian companies continue to be faced with increasing challenges around talent retention. Historically, only a few Australasian companies have fully-developed and well-thought-out international relocation policies that support expatriate success and retention.

It is not uncommon to find Australasian organisations seeking to capitalise on Asian growth opportunities by launching their employees into new countries with the previously successful (and Australasian) practical approach of “just need to get my gear from here to there and she’ll be right”. With the increasing

Australasia: the mobility scene


IF GOES AHEAD, WANT TO BE IN AUSTRALIA

complexity of immigration laws, tax, company governance issues, security

concerns and cultural gaps, this approach is very dangerous. Not only is there a risk of

business ventures failing, but there are also high risks of employees being put in difficult and

risky situations.

The company will be considered liable for non-compliance in immigration and for employee’s behaviour in foreign countries. Companies therefore need to make careful plans to ensure the success of their commercial ventures. Mobility professionals must protect these outbound employees with international relocation policies and procedures that address these concerns.

One of the interesting anecdotal trends that seem to be appearing is that a number of Australasians are flocking to opportunities in Asia, either with their employer’s support or on their own. They then find it difficult to return to Australia or New Zealand. Having been highly successful in the large Asian markets in well-paid jobs, they are faced, on returning, with a smaller market and a smaller number of high-flying opportunities.

In many Asian countries, it is also not practical, sometimes not safe, or just too difficult to bring up a family, or for the spouse

to work. These two issues are reportedly splitting up the family unit, to the point where the employed spouse stays in Asia and commutes periodically back to the Australasian-based family.

To manage these issues, the role of the mobility professional in Australasia needs to change and will continue to change rapidly as corporations focus on expansion strategies into new markets. As the economic environment continues to be uncertain, leaders are beginning to grasp the importance of global mobility in driving growth initiatives. Across industry sectors, there is a perceptible change in the status of the mobility function, and this presents a great opportunity for mobility professionals. Expect to see astute companies moving mobility closer to the business as a support function.

The war for talent in Australasia is a reality, yet historically the mobility and talent functions have often been managed in silos, with little cooperation. This will change as resourceful mobility professionals look to align assignment strategy with the broader talent agenda.

Article written by Industry Steering Committee Members of the Employee Mobility Institute: Jon Johnson (Deloitte Australia), Wendy Jenkins (Moving2plan), Sue Latina-Cohen (Toll Transitions) and Robyn Vogels (Personnel Relocations).

to be more definitive in their decision-making, rather than hedging their bets with part-time or temp hires. ‘High-skills’ remain very much in demand.”

Looking at employment shifts across the country, Jane McNeill said, “In New South Wales, the largest state economy, the economy is growing again and jobs are responding. Meanwhile, the stellar jobs growth rates experienced in Western Australia during the mining boom are slowing to more moderate rates of growth. Mining continues to deliver jobs and economic benefits, just at a declining rate from that seen at the height of its boom. Those people who are coming out of the mining sector are fitting into the infrastructure sector to maintain their employment.

“After six years of growth slowing in South Australia, there are signs of a turnaround. We are also seeing

new signs to indicate that the market is picking up in Queensland.”

Despite Australia’s current levels of unemployment, Ms McNeill said

that hires were still being brought in from abroad to address skills shortages. “There continues to be

demand for skilled workers across a broad range of sectors, from engineering to healthcare. As long as that demand exists, employers will be willing to sponsor candidates from overseas.”

Australia is noted for its ageing population, but Ms McNeill pointed out that the Australian Bureau of Statistics now says that one in four people aged between 65 and 69 are now employed, usually in full-time work. “Since the global financial crisis, older workers have absorbed half of Australia’s net growth in jobs. Australia has more workers aged over 55 than under 25. Furthermore, the country now has more than a million workers aged 60 and over – almost 300,000, or 40 per cent more than five years ago.”

Australia is entering a period of transition, but looks relatively robust for the time being, with fair promise of a bright future.

Australasia: the mobility scene

Join the Asia Pacific and Australia

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website, candgglobal.com, and

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Connect & Grow is Re:locate’s ambitious new social media initiative, designed to bring together the global mobility community around the world.

Re:locate’s mission is to help solve the people management issues that are at the top of business agendas globally, to inform, support, and help mobility professionals across HR and global management to make connections and grow.

That’s why, during 2014 and beyond, we will be generating online dialogues and events for our audience. These will be supported by webinars and articles across our media, including Re:locate magazine, the Re:locate website, and our digital Europe and Asia Pacific magazines and e-newsletters.

Our aim is to leverage collective intelligence on global mobility and relocation, widen the profession, and reach out to colleagues around the world. It’s all about creating more value, innovation, creativity and enterprise. We will be generating some real energy and momentum, facilitating debate, helping you to have effective conversations, and working together to solve some of the challenges of fast-paced global growth.

With recovery taking hold across the world, the good news is that there is more mobility and we are all working in a growth environment. The challenge is how to work together to achieve that growth by working in a more joined-

up way, developing talent (including women leaders and Millennials) and delivering the right support to relocating employees and their families. We believe that Connect & Grow (candgglobal.com) can help the global mobility community to meet that challenge.

To support global growth, we need to understand where people have knowledge gaps, what their challenges are, and what they would find most useful. We can do this by engaging, working together, sharing knowledge and creating solutions. Re:locate will then report on that and feed it back into the chain, so we are helping to map out what global growth is all about from the mobility perspective in 2014, and how it has impacted the different regions in which it is happening.

It’s all about enterprise, engagement, entrepreneurial spirit, and the magic that happens when people pull together to break new ground, solve problems, and evolve practical solutions.

Feeding in the stories to support the debate

Over the past year, Re:locate has reinforced its editorial team with new correspondents, who have added a fresh dimension to our coverage in print and online, with more global insights and an economic and political perspective.

Ray Furlong spent 16 years at the BBC covering a range

With its worldwide audience of HR, global managers, relocation professionals and experts from across the service sectors, Re:locate is uniquely placed to bring together all sides of the relocation equation. Managing editor Fiona Murchie explains why.Join the

conversation

CONNECT & GROW

candgglobal.com

of UK and international stories, presents The Newsroom on the BBC World Service, and reports extensively on Eastern Europe and Russia. David Sapsted, former chief reporter for The Times and news editor and New York correspondent of The Daily Telegraph, contributes daily to our website and to our digital and print magazines.

We will be injecting background articles, commenting, and raising questions across a wealth of topics, countries and management issues that may impact on the mobility of employees and their families. Who is going where and why, and what they need to support them to do more, better, sustainable business is largely up to you!

With Connect & Grow, we have the beginnings of a virtual global mobility hub. I invite you to run with it, have the conversations, and explore and develop the most promising ideas.

Keep checking the Re:locate website for articles that will add to the debate.

Having the conversations

HR global mobility

Increasingly today, when controlling relocation and assignment costs is top of the agenda, HR mobility professionals need to communicate the value of the mobility services they provide. They must be able to demonstrate that they understand both the needs of the business and the global markets and cultures in which they operate.

Using the latest management thinking, and innovating, will equip them to help their businesses make strategic decisions about deploying their people to the right place at the right time and sustaining global growth in an ethical, compliant and profitable manner. This will lead to their being more effective and strategic, and so taking a seat at the decision-making table.

Surveys show that relocation policy is mostly used to meet specific business objectives or goals, recruit new talent, and retain talent through career-developing relocations and assignments. It is therefore important that the close relationship with talent management is also explored, as we have been doing in the pages of Re:locate magazine over recent months.

In addition, research such as the Cartus 2013 year-end survey reveals that, by a significant margin, employees say that partner and family support is the key to a successful job transfer.

Put into the mix housing, complying with laws and regulations (including visas and immigration), safety and security, and payroll and currency issues, and you will understand the reasoning behind some of the discussion groups we have set up in Connect & Grow.

Whether you are an HR professional, a global manager or an industry expert, there are groups for you to engage with, both in open discussions and in private areas. We are also inviting membership organisations across the sector to join in the conversations with their own groups.

Education & schooling

Our education editor, Rebecca Marriage, examines emerging trends in the international education sector and gathers views from some of the world’s most high-profile international schools, as well as providing practical resources for global mobility professionals.

Understanding education systems and schooling options is not only important for HR and relocation professionals advising and supporting employees going on international assignments, to ensure retention – it is also vital for recruiting and growing international talent for the future.

Global mobility professionals are asked to help families to make crucial education decisions in the fast-growing international schools marketplace. And, with today’s school-leavers navigating international higher education and job opportunities, families themselves face the challenge of choosing the right path for their children to enable them to prepare for the global opportunities that lie ahead.

Through Connect & Grow, HR and relocation professionals supporting families can engage with the wider global mobility community, including the international education sector, and together tackle the emerging issues that the rapidly expanding international schools sector is experiencing.


Join our new virtual global mobility hub, candgglobal.com, and watch your organisation connect and grow.

CONNECT & GROW


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In the Winter 2013/14 issue of Re:locate magazine, we considered whether a partnership between talent and mobility was the solution for companies seeking global growth. David Schofield continues the discussion.

THE POWER OF

GLOBAL MOBILITY

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Those of us working in the global mobility field are in a privileged position – because global mobility truly has the power to contribute both to the business

success of the organisation and to the career and personal development desires of the people in the organisation.

As someone who has worked in global mobility around the world for many years, I believe the key to unlocking this power lies in a close partnership between global mobility (GM) and talent management (TM). Organisations which make this partnership work can give themselves clear market advantage, and will be better able to attract the brightest and best people.

Of course, we need to be clear from the outset what is meant by ‘talent management’. John Hopkins University’s Office of Talent Management and Organisation Development defines TM as “a set of integrated organisational HR processes designed to attract, develop, motivate and retain productive, engaged employees”, the goal of which is “to create a high-performance, sustainable organisation that meets its strategic and operational goals and objectives”. This definition shows that TM is targeted not just at a few high-flyers, but at the wider workforce.

It also firmly connects talent management to the achievement of the organisation’s strategic business objectives and to what the employees want.

The true value of the GM/TM partnership was on display at a number of the sessions at the October

2013 Worldwide ERC Global Workforce Symposium in Dallas. The Winter 2013/14 issue of Re:locate magazine highlighted an excellent, lively session in which Angela Lane, vice president of talent management for pharmaceutical research and development company AbbVie, positioned global mobility as a “vital lever within a fully fledged talent strategy”. And WERC has responded to the increasing awareness that mobility needs to be a critical strategic component of a well-managed talent programme by introducing a new Strategic Talent Mobility module to its Global Mobility Specialist training programme.

Planning for success

Against this background of growing interest in the issue, I would now like to move forward the discussion, not only by sharing some insights into how to have a fruitful relationship between global mobility and talent management, but also by outlining some of the other enabling factors behind a powerful and successful global mobility programme.

Unfortunately, many organisations do not at present seem to recognise the need for their GM and TM functions to cooperate closely. A recent Ernst & Young (EY) survey, Global Mobility Effectiveness: Your Talent in Motion, found that more than half of mobility executives working in multinational companies played no role in talent management and wider business objectives.

EY’s global director of human capital, Dina Pyron, said, “Mobility professionals can play a more effective role in strategic business planning, rather than focusing on immediate needs, to drive competitive advantage for their organisation. Mobility needs to be seen as a tool to enhance the talent pool, not simply an easy way to fill a vacancy without strategic insight. The function must be connected or integrated with the talent management team.”

However, some organisations are taking a more proactive approach. I had the pleasure of moderating a session at the WERC Dallas symposium where the global mobility and talent management partnership came vividly to life. The speakers were Coeni van Beek, PwC’s global managing

director for key talent, and Gary Baker, its global managing director for global mobility.

While professional services firm PwC is, of course, a very big organisation – with some 192,000 people in 159 countries – their insights should be applicable across a wide range of businesses. Coeni van Beek and Gary Baker identified a number of factors which support the integration of talent management and global mobility, including:

• Both the global mobility strategy and the talent management strategy must be driven by the organisation’s strategy and business objectives

in partnership with talent management

GLOBAL MOBILITY

TALENT


TALENT

• As well as reacting to the business drivers behind global mobility, you need to respond to what is motivating individuals – developing their careers will be important, but so will be factors such as work-life balance and a partner’s career

• Global mobility and talent management leaders should meet regularly, by phone or virtually if not in person, to share current priorities and issues

• The full range of global mobility options should be used – not just ‘traditional’ people-to-job secondments, but also moving jobs to people, short-term assignments and virtual mobility

• Mobility should be positioned as one of a suite of ways of developing your talent

• Metrics must be established and monitored, to measure the success of your talent management and global mobility programmes

GM programmes: the top ten components

So, diverse organisations like AbbVie and PwC clearly feel that the integration of global mobility and talent management is adding value. Indeed, I would place GM/TM integration at the top of my list of ten essential features which a global mobility programme must have if it is to be successful.

You can test your own organisation’s global mobility programme on whether you feel it has these features.

1 Connect the global mobility and talent management programmes. As a GM leader or manager, you could make this connection in simple ways, such as arranging meetings with your opposite numbers in TM. Ideally, the two function leaders should report to the same boss. At a more advanced level, bear in mind the above definition of talent management, which said that the function was designed to “attract, develop, motivate and retain productive,

engaged employees”.

Global mobility can contribute to each of these activities; for example, an active mobility programme can be very attractive to potential recruits; international experience is recognised as one of the best ways to develop future leaders; the right kind of mobility opportunity can motivate someone who is not fulfilling their potential in their current post; and organisations around the world which do not offer their staff the chance of mobility will struggle to retain them.

As a leading French newspaper, Ouest France, said last year, “The new generation is more and more international and ‘hypermobile’.” If you can demonstrate to your talent management colleagues that you can help them to achieve all their key objectives, then you should be very popular!

2 Address what really matters to the business. What keeps CEOs and board members awake at night is worrying about how strategic objectives can be achieved and how business risks can be managed. A risk which regularly features in the lists of top risks for international businesses is failure to attract and retain top talent – this was number five in the 2013 Global Risk Management Survey compiled by Aon, the UK’s largest insurance broker. Flexible GM programmes can make a contribution to reducing this risk, by helping to attract and retain top people.

3 Give employees what they are looking for. Increasingly, what people want to see is the chance for many to acquire international experience in a variety of ways, and to develop careers while maintaining a work/life balance, rather than the old model of a small number of assignments for an elite few.

4 Demonstrate the return on investment (ROI). The need to look on global mobility not as a cost but as an investment, and to be able to measure the return on this investment, has been set out in a recent book by Yvonne

McNulty and Kerr Inkson, Managing Expatriates: a Return on Investment Approach. Their insight is to define expatriate ROI in terms of both the corporate return and the costs and benefits that accrue to the individual expatriate.

Your finance director will be well used to justifying business decisions according to ROI – so ‘speaking the same language’ as him or her will help you to justify expenditure on mobility.

5 Provide the full range of global mobility options. While there is definitely still a place for traditional assignments, where someone is sent from headquarters to establish or develop an overseas operation, GM programmes now must be flexible and offer the full range of options, including moving jobs to where the skills are, enabling people, via technology, to work virtually across borders, short secondments, business trips and project work.

6 Comply with legal and regulatory requirements. Non-compliance is a top business risk (at number two in the Aon survey). Your GM programme must not add to this risk, for example, by sending people on assignments without the proper visas, or by failing to meet tax obligations. In fact, GM can help to mitigate wider compliance risks, by spreading around the world the knowledge and culture needed to ensure high ethical standards in all locations.

7 Engage responsive, flexible and sustainable suppliers. Even the largest companies need their global mobility programmes to be supported by specialists in the fields of relocation, accommodation, tax and legal services, spousal support, cultural awareness training, and so on. It is well worth building good, long-term relationships with the right providers.

8 Team with other functions. By this, I mean more than the talent management and HR functions. In my experience, the solution to business problems normally involves a number of functions – and you need to team with colleagues in operations, finance, marketing, IT and so on if you are to be able to offer holistic solutions to top management.

9 Identify and address the barriers to mobility in your organisation. These will vary from organisation to organisation. For example, there could be parochialism in an international company, where you will need to convince a powerful local leader of the benefits which mobility can bring; or there could be financial problems, when you might need to use the ROI approach to convince a hostile finance director of the business case behind a proposed move.

10 Take responsibility for the full assignee lifecycle. The role of global mobility is not just to arrange moves, but to be part of the selection decision (again, teaming with talent management), to ensure contact is maintained with the assignee, to facilitate their return (or a new move) at the end of the assignment, and (as mentioned above) to be able to demonstrate the return on the investment.

Tracking assignees is part of this role: with volatile political situations around the world, you need to know where your people are, and how they can be assisted or relocated if trouble does arise.

This list of ten essential features of a successful global mobility programme takes me back to my starting point. A GM programme which meets all these criteria – and, in particular, is well connected with talent management – will be recognised as powerful and valuable by everyone in the organisation: CEO, board members and workforce.

David Schofield is a director of Murray Court Consulting and former global mobility director of PwC.

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TALENT

China is one of the top five countries leading a boom in the growth of the international schools sector, with more than 200 such schools, according to figures from

the International School Consultancy (ISC) Research Group.

However, while the growth of international-school provision shows no signs of slowing, admission to such schools in Hong Kong and China remains fiercely competitive. In fact, an Education Minister for Hong Kong recently admitted that the region was expected to face an acute shortage of international primary-school places by 2016.

Most international schools in Hong Kong and China use an English-based curriculum and tend to be separated into the British, American, Canadian and International Baccalaureate (IB) programmes. These curriculum choices are popular not only with UK and American expats, but also with the local families who see this as a route to better opportunities for their children in the world’s most respected universities.

“Demand continues to come from the expanding expatriate market, and, more significantly, the increasing number of wealthy local families who are recognising the benefits of an English-medium education for their children,” says Nicholas

Brummitt, managing director of ISC Research. “Almost two-thirds of the growth in the current market is as a result of this increase in demand from local nationals, and this looks set to continue and expand.”

China

A recent report from KPMG, Education in China, supports this view. The report finds that, other than children of foreign nationals, the wealthy local population represents the largest and the most rapidly expanding group. In China, an estimated 800,000 people have assets exceeding $1 million, and this group is growing at an annual rate of 20 to 30 per cent.

Relocating families are facing a real struggle when it comes to finding places at good international schools in China. In a recent Global Mobility Effectiveness Survey, Ernst & Young found that schooling was seen as a particular issue in the region, where it was the main challenge for 6 per cent of respondents. “With China likely to remain a focus for a long time to come,” says the report, “this ... is likely to cause real problems in settling long-term assignees and their families.”

Hong Kong

The current situation for families seeking a place at an international school in Hong Kong appears to mirror that in China. While KPMG describes private international schools as forming an “important part of Hong Kong’s status as an international business centre and a vibrant cosmopolitan city”, Hong Kong’s offering of around 34,600 school places is not proving to be sufficient to meet demand. In fact, Secretary

Relocating families seeking international-school places in China and Hong Kong face a shortage

of places, and hot competition. Rebecca Marriage discovers how provision is being

improved, and how parents can maximise their child’s chances of a place.

EDUCATIONAlcanta International College



for Education Eddie Ng Hak-kim has said that Hong Kong is expected to face an acute shortage of 4,200 international-primary school places by 2016.

Since 2010, there has been a surge in numbers of British and American expats to Hong Kong, fuelled by job opportunities in the banking sector. There are now over 15,000 British and almost 30,000 American expats living in Hong Kong.

Figures from ISC Research reveal that, in 2000, there were 70 schools in Hong Kong, teaching 37,800 students. Today, that number has increased to around 164 international schools, teaching approximately 64,300 students. There are 74 schools on Hong Kong Island alone, another 37 in Kowloon, and 45 in the New Territories. Twenty-one of them, including Island School and the Chinese International School, both on Hong Kong Island, have an intake of well over 1,000 students.

The American Chamber of Commerce in Hong Kong has expressed concern that the shortage of international-school places has reached “crisis point”. It has also urged the Hong Kong government to set up a committee to ensure that

places at primary international schools by 2016. “Next year, we target to have 1,000 more places. We hope to do it year by year,” he said.

Expanding school groups

However, there is light at the end of the tunnel. The Hong Kong government has said there will be an increase of 5,000 international-school places in the coming years by implementing such measures as allocating vacant school premises and greenfield sites for development, as well as facilitating expansion of existing international schools.

International school groups are expanding their networks to provide new schools in regions that are under extreme pressure. They include Nord Anglia, which has schools in Beijing and Shanghai.

“In recent years, we have significantly expanded our family of schools across Asia to meet the demand for premium education from both expatriate and local parents in these regions,” says Janine Green, group communications manager

at Nord Anglia. “Since 2008, our pupil numbers have more than doubled. We have expanded capacity in all our existing schools, most recently our secondary campus at the British International School Shanghai Puxi, which has increased capacity from 1,000 to 2,000 places.”

A word of advice

Until the supply meets the demand for places, parents are advised to do their research, to look at as many schools as possible, and to be prepared with all the relevant paperwork and teacher recommendations from previous schools.

In September, global relocation services company Cartus held a roundtable event for its clients in Hong Kong, including education considerations for relocating families. Parents should remember one thing above all, explains Cartus, and that is to remain flexible. “Importantly, families relocating with school-age children should be flexible with school choices, and should consider schooling options before housing location.”

While the growth of the international-school market shows encouraging signs of alleviating the pressure on school places, it is clear that, in the current climate, relocating parents need to keep an open mind and look for creative solutions in order to find a good school for their child.

“Key central locations like Hong Kong Island have less availability of school places than the New Territories, for example,” says Cartus. “Flexibility on living location and geography in relation to the daily commute can pay dividends.”

EDUCATION

Malaysia: regional education hubWith the opening of two big-brand British private schools, an increasing number of international schools, and projects designed to attract new higher-education institutions, Malaysia looks set to position itself as a centre for international schooling in South East Asia. International schools have been increasing at a rate of more than 14 per cent over the past five years, with growth driven by demand in the expatriate community and the removal of the 40 per cent quota on Malaysian student enrolment in international schools.

Marlborough College and Epsom College, two British independent schools, have established sister schools in Malaysia. Marlborough College opened to students in September 2012 on the 350-acre EduCity site near the city of Johor Bahru, and Epsom College opened in September 2013 as part of Kuala Lumpur Education City, a project aiming to attract higher-education institutions to Malaysia.

Triona Chelliah, general manager of Pathfinder Relocation Services, has noted that the popularity of a British-style education is on the rise. However, competition for places remains high. Ms Chelliah says that most expats centre around Kuala Lumpur, and that the two American schools there, the International School of Kuala Lumpur and Mont Kiara International School, are very popular, and classes fill up fast.

E X P A N S I O Nschooling will be available for children of foreign investors and professionals.

Eddie Ng Hak-kim told the Legislative Council of Hong Kong (LegCo) that the city would need at least 4,200 more

28 | Re:locate Asia Pacific | Spring 201428 | Re:locate | Spring 2014

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