Print

Mail

wiki links

Business Quick Take

■ FINANCIAL

Temasek to cut salaries

Singapore’s Temasek Holdings, one of the world’s largest sovereign wealth funds, says it will cut staff salaries in the face of a global economic slowdown. “We anticipate a global recession in 2009 and possibly beyond. Therefore, Temasek will institute a firm-wide wage cut, led by senior management who volunteered 15 to 25 percent,” the firm’s managing director of human resources, Robert Chong, said in a statement issued late on Friday. “In total, nearly 90 percent of the wage saving will be borne by our key managers.” While announcing the pay cut, Temasek also plans to increase staffing by about 15 percent over the next two years. The company employs 350 people, its Web site said.



■ HONG KONG

Businesses pessimistic

Half of Hong Kong businesses expect the city’s recession to drag on for at least two years, a survey said yesterday. Ninety percent of businessmen and businesswomen said they believed the recession would last through next year while half said they expected it to continue through 2010 and beyond. Hong Kong General Chamber of Commerce conducted the survey among its members. Hong Kong officially went into recession this month as its economy recorded a second consecutive quarter of GDP contraction, the city’s first recession since the SARS crisis of 2003.



■ BANKING

US shuts down two banks

US regulators have shut down two banks based in Southern California, saying they fell victim to the acute distress in the housing market in that state. The failures of Downey Savings and Loan Association, based in Newport Beach, and PFF Bank & Trust of Pomona brought the number of US bank failures this year to 22. The Federal Deposit Insurance Corp, the US agency that insures bank deposits, was appointed receiver of the two thrifts. US Bank, based in Minneapolis, acquired all the deposits of both. The 213 branches of the two will reopen as branches of US Bank under their normal business hours.



■ THAILAND

Nikon lays off 1,500 workers

Japanese camera-maker Nikon has laid off 1,500 sub-contractors in Thailand, a government official confirmed yesterday, after a fall in demand put down to the global financial crisis. Amporn Nitisiri, director general of the labor ministry’s protection and welfare department, said most of those losing jobs at Nikon had worked at its manufacturing plant for less than a year. “It’s increasingly drastic this year as there are now 348 companies who have laid off a total of 28,600 workers and we also think it is likely that a further 123 companies may lay off an estimated 56,000 workers,” she told Thai television.



■ BANKING

Zalm to head Dutch banks

The Dutch government named former finance minister Gerrit Zalm chief executive of the recently nationalized ABN Amro and Fortis banks on Friday, and said the combination will not be privatized before 2011. Finance Minister Wouter Bos announced the appointment at a press conference on Friday. He called Zalm an “influential leader who has affinity with the banking and political worlds.” Zalm, Bos’ predecessor, was the country’s longest-serving finance minister, leading the country through a 12-year economic boom and overseeing the introduction of the euro. The Netherlands bought the Dutch operations of Fortis NV for 16.8 billion euros (US$21.17 billion) on Oct. 3 as the Belgian-led organization faced a run from deposit holders.


This story has been viewed 750 times.