FIRST EV SALES TO SURGE IN 2020: ANALYST
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he demand for electric vehicles (EVs) in Hong Kong is slated to remain elevated in 2020 despite constraints in spending, according to a Fitch Solutions report. Higher incomes relative to the Asian region will drive demand for EVs as the affordability constraints seen in many other markets are reduced. EV sales may expand by 34.5% in 2020 to reach 3,315 units, on the back of a strong performance in Q1 when sales skyrocketed 408% YoY. The report also noted that this figure in EV sales growth will significantly outperform the total vehicle sales in the SAR. “We currently forecast total vehicle sales to contract by 17.4% in 2020 to reach 41,433 units, as growing political risks combined with an expected economic contraction in 2020 leads to sales contracting further,” Fitch Solutions said. In addition, another main driver will be the concessions on first registration taxes (FRT) of up to $97,500 on the value of newly registered passenger EVs, which was introduced on 1 April 2018. The scheme also allows for higher FRT concessions of up to $250,000 on the value of newly registered passenger EVs for owners who de-register their internal combustion engine (ICE) vehicle or old passenger EV with the intention of replacing it with a new vehicle. This has led to EVs being competitively priced relative to their ICE counterparts, which combined with higher incomes in Hong Kong will result in the EV market proving resilient in 2020. Incentives also include commercial vehicles and motorcycles in the FRT concession scheme, which may bode well for the general adoption of EVs in Hong Kong as it opens up opportunities for a broader adoption of EVs by consumers and businesses. 8
HONG KONG BUSINESS | Q3 2020
Average salary increment stood at 1.3% in Q1
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verall salary adjustment is 1.3% in Q1, which is significantly lower than last year’s 5.1%, according to the JobsDB salary survey report. In addition, only 50% of 4,000 employees surveyed have received a raise in salary this year, a 20% drop when compared to last year. Moreover, 40% of respondents reported a salary freeze, whilst 75% of respondents have negative views on the employment outlook and are actively seeking alternative options. The retail and tourism sectors have faced a challenging time with a pay drop of 8.9% and 8.1%, respectively. Over 30% of respondents across both industries also indicated that their salary has been cut. Meanwhile, 76% of job seekers are open to switching job functions, especially employees in the hospitality and tourism (26%), customer service (20%), and general management (20%) sectors. On the other hand, employees in information technology (IT) and analytics have recorded the highest salary increment, at 6.1% and 5.8%, respectively. In addition, the survey found that 27% of job seekers confirmed they are looking for positions in different sectors, with nearly 20% saying they wanted to change job functions as prospects in their current industry are getting worse. The survey also noted that 75% of
Source: JobsDB
The softening of the job market has led to 64% of employees revealing that they took less than 2 months in making the decision to change job.
respondents hold a negative view on the employment outlook in Hong Kong due to possibilities of local recession due to socio-economic situations (78%), uncertainties around the external environment (67%), and foreseeable closedown of local companies (61%). Because of these, 30% of job seekers and employees are willing to switch to a company with better job security, whilst 19% of employees and 32% of job seekers wish to switch to another job function or occupation with better job security or greater demand in the market. The softening of the job market has led to 64% of employees revealing that they took less than 2 months in making the decision to change job function, whilst 35% took at least 3 months for consideration. Over 7 in 10 or 73% of respondents with work experience between 3 to 5 years had a higher incidence of salary increase when switching careers, followed by those with 6 to 10 years of experience (62%). Considering the cautious economic outlook, 46% of job seekers expect their job hunt will take 3 to 6 months.
37% of employees consider starting their own business One in three, or 37%, of employees stated that they want to leave their current jobs in order to start their own business, according to Randstad Hong Kong’s Workmonitor survey. This sentiment is highest amongst workers aged 18 to 24, with close to one in two workers considering this path. “Red tapes, long-drawn approval processes and inaccessibility to digital solutions can limit an employee’s growth potential. Add these reasons to unmet salary expectations and inadequate learning opportunities in a traditional corporate structure, and employees might just want to take matters into their own hands,” said Natellie Sun, managing director in search and selection for Greater China at Randstad. Even though 75% of respondents feel valued and appreciated in their jobs, 39% feel they are not being paid enough as compared to similar jobs in other companies. More than two in five younger workers (42%) felt that
Source: Randstad
they are not paid competitively in their roles. “To ensure sustainable employability in a rapidly evolving and uncertain climate, candidates need to be more marketable by equipping themselves with relevant technical and soft skills to stand out in the crowd. Slash careers can also help enhance employability as it demonstrates the candidate’s ability to manage time and grow business.” Most companies tend to hire younger talent for their digital capabilities and tech-savviness to drive innovation and fill the gaps that the existing workforce is unable to keep up with.
