Briefs

Malaysian Prime Minister Dr Mahathir Mohamad is hopeful of reaching an out-ofcourt settlement with Goldman Sachs over the 1Malaysia Development Bhd scandal soon, but says compensation of “one point something billion” dollars offered by the bank was too small. The Southeast Asian nation has charged Goldman and 17 current and former directors of its units for allegedly misleading investors over bond sales totalling US$6.5 billion ($8.8 billion) that the US bank helped raise for the sovereign wealth fund. Mahathir says the nation has demanded US$7.5 billion from Goldman and negotiations are ongoing. “We would like to avoid having to go to the courts, but if they come up with a reasonable sum, I think we will agree,” Mahathir, 94, said in an interview with Reuters on Sept 10.

“But, at the moment, their offer is too small. We’re continuing to talk with them to explain why they should pay what we demand. Of course it’s not the full amount that they may be able to bring down, but we think that we can reach some agreement at a later stage.”

A spokesman for Goldman declined comment. Goldman said in October that it was in discussions with authorities on a possible resolution of investigations relating to 1MDB. The bank could separately end up paying less than US$2 billion to US authorities to resolve criminal and regulatory probes connected to the scandal, Bloomberg reported last week.

US authorities say about US$4.5 billion was siphoned from 1MDB, founded in 2009 by then-Malaysian prime minister Najib Razak. The scandal helped Mahathir unexpectedly defeat Najib in a general election last year.

Mahathir says Malaysia would not agree to a settlement with fugitive financier Low Taek Jho, accused of playing a central role in the scam. Low has consistently denied wrongdoing and says he does not expect a fair trial in Malaysia as long as Mahathir is in power. “We think he is very guilty. We have proof of that,” Mahathir says of Low. “We want to settle it according to the law.” Mahathir says Malaysian authorities have no contact with Low or his representatives and do not know where he is. The US Justice Department said last month it struck a deal to recover US$1 billion in funds allegedly looted from 1MDB from Low. — Reuters

Brighter hiring period in 1Q2020: ManpowerGroup survey

Jobseekers have cause for celebration, as the hiring pace in Singapore is expected to pick up in the first three months of 2020. This was reflected in the results of the Employment Outlook Survey released on Sept 10 by ManpowerGroup, a global recruitment firm.

Of the 630 employers surveyed, 13% are looking at higher payrolls next year. Five per cent forecast a decrease while 79% expect things to remain unchanged. This translates into a net employment outlook of +9% for 1Q2020 — five percentage points more than that for the current quarter ending December 2019.

On a sectoral basis, the public administration and education sector is most optimistic, with a net employment outlook of +22%. The finance, insurance and real estate sector followed suit with its projected outlook of +15%, while the mining and construction sector anticipates an outlook of +12%.

Meanwhile, modest hiring activity is expected in the manufacturing (+3%), services (+8%) and wholesale and retail trade (+6%) sectors because they have been hit by lower activity on the back of the US-China trade war that has caused a global slowdown.

Year on year, there has been an improvement in Singapore’s job market outlook as employers in five of the seven sectors indicate plans to rev up hiring in the coming months. The only two sectors that recorded slower employment are the manufacturing and services sectors — both of which have been logging negative growth this year.

Large businesses with more than 250 employees are also most optimistic, forecasting a +26% in their hiring outlook. Small and medium-sized employers are looking at an employment outlook of +18% and +11% respectively, while micro employers with fewer than 10 employees expect a modest +2% in their hiring outlook.

“While employers are cautiously optimistic in their hiring plans for the upcoming quarter, they will adjust their hiring plans in reaction to changing market conditions,” notes Linda Teo, Singapore country manager at ManpowerGroup. She adds that the labour market is highly volatile, as employers’ hiring decisions are dependent on prevailing market conditions.

Even so, Teo observes that “more companies are investing in employee training to plug the skills gap in their [industries]”. Such behaviour arises from a need to ensure there is sufficient manpower to meet expected increases in demand, she points out. — By Amala Balakrishner

Suu Kyi rejects genocide charges

Myanmar’s de facto leader and Nobel laureate Aung San Suu Kyi addressed the International Court of Justice on Sept 11 to deny allegations that the military had committed genocide against minority Rohing ya Muslims. The small Muslim-majority nation of Gambia that brought the case against Myanmar had laid out a detailed and graphic case a day earlier, saying thousands of Rohingya Muslims were systematically raped and murdered at the hands of Myanmar’s military. It is calling for temporary measures to protect the Rohingya community.

But Suu Kyi dismissed Gambia’s case as a half-truth, saying “the situation in Rakhine state is complicated and not easily fathomed”. She attributed the exodus of more than 740,000 civilians to neighbouring Bangladesh to an ongoing internal armed conflict with insurgents. “Gambia has placed an incomplete and misleading picture of the factual situation in Rakhine state in Myanmar,” she told the court. Still, she said the use of disproportionate force by members of the defence services “cannot be ruled out”. — Bloomberg LP

Petronas-backed VC fund raises US$250 mil

A new venture-capital firm backed by Malaysian oil giant Petroliam Nasional plans to invest US$250 million in emerging technologies for energy, industry, materials and mobility. San Francisco-based Piva expects to back 15 to 20 start-ups through its inaugural fund, according to a statement on Dec 11. Ricardo Angel, a veteran of General Electric Co’s venture capital arm, will lead the firm. Petronas is Piva’s only limited partner, but the venture firm says it will operate independently. It plans to invest in such technologies as artificial intelligence, robotics, autonomous driving and electrified mobility. — Bloomberg LP