China may be drawing funds from regional markets now, but global liquidity flows to Asia could be the proverbial tide that lifts all boats
ONE news story that grabbed a lot of attention last week was a retrenchment exercise in Singapore by high-end consumer electronics maker Dyson, for which it had given only a day’s notice to the union. This was soon followed by a report that Samsung Electronics is also cutting jobs in Singapore as part of a plan to reduce its global headcount.
These stories naturally raised concerns about the rights of workers when companies decide to downsize. But they were also something of a wake-up call for investors who have been celebrating surging stock prices in Singapore and the region amid a global loosening of monetary policy.
Companies make adjustments to their staff strength for a wide variety of reasons, including to support changes in their long-term growth strategies. Yet, job cuts are often a means for companies to cope with deteriorating profitability in the face of softening demand.
