News

HONG KONG : Citigroup Inc has confirmed plans to reduce its workforce by approximately 3,500 employees across its two China-based technology centres in Shanghai and Dalian. The move forms part of a broader global restructuring strategy aimed at streamlining technology operations and enhancing risk and data management. The reduction, primarily affecting full-time positions, is expected to be finalised by the beginning of the fourth quarter of 2025. While the bank has not disclosed how many roles will be relocated, it noted that some functions will transition to other Citi technology hubs globally. The decision follows an earlier reduction of around 200 information technology contractor roles in China, as first reported in May. In March, Citi internally announced a significant shift away from contractor reliance, revealing plans to onboard thousands of new full-time IT employees. This came in the wake of regulatory scrutiny and penalties relating to data governance and operational controls. Citi’s latest move reflects similar workforce adjustments across other markets, including the United States, Indonesia, the Philippines, and Poland, under its enterprise-wide transformation initiative. The technology and services division in China plays a critical role in delivering financial technology and operational support to Citi’s global businesses. Despite the planned headcount reduction, the bank reaffirmed its long-term commitment to the Chinese market. “Citi continues to pursue the establishment of a wholly owned securities and futures company in China,” said Marc Luet, Head of Banking for Japan, Asia North, and Australia. He further emphasised Citi’s dedication to serving both its corporate and institutional clients in China, supporting their cross-border requirements, and enabling international clients’ operations within the country. Following the reduction, Citi will maintain an approximate workforce of 2,000 in China, including several hundred within its technology unit, according to a source familiar with the matter. -Reuters

Grab’s newest venture into the taxi sector, GrabCab, is set to launch in Singapore this July with an initial fleet of 40 hybrid vehicles, marking the ride-hailing giant’s official entry into the traditional street-hail market. Rather than competing directly with existing taxi companies for drivers, GrabCab is targeting a largely untapped pool: new and inactive Taxi Driver’s Vocational Licence (TDVL) holders. The company, a subsidiary of Grab Rentals and sister to GrabCar, announced on Wednesday that driver recruitment efforts have already garnered interest from between 700 and 800 individuals. Of these, approximately 400 to 500 drivers are currently being shortlisted based on their possession of a valid TDVL. GrabCab is not pursuing drivers from rival firms, said Mr Victor Sim, Head of GrabCab and GrabRentals. “There’s a very big pool of drivers that we believe we want to reactivate, that we can reactivate with our benefits and offerings … that’s a big focus for us,” he stated. The company will begin appointment scheduling for pre-registered drivers from 5 June, with open registration commencing on 9 June. This move follows GrabCab’s approval as Singapore’s sixth licensed taxi operator, as announced by the Land Transport Authority (LTA) in April. The entrance of GrabCab—alongside established names such as CityCab, CDG, Prime, Strides, and Trans-cab—is expected to broaden options for both drivers and commuters, thereby bolstering the supply of taxis. At launch, GrabCab will operate a fully green fleet comprised exclusively of low- and zero-emission hybrid Toyota Prius cars in a distinctive dark green livery. In line with regulatory standards, each vehicle will be equipped with a Mobile Data Terminal (MDT), commonly known as a taxi meter, showing fares and driver details. The Grab app will integrate seamlessly with the MDT via a QR code scan at the start of each shift, syncing trip data across both systems and the taxi’s rooftop indicator. Drivers will have the flexibility to toggle between street-hail and ride-hail assignments through the Grab app. From the commuter’s perspective, fares will remain consistent with current market rates. The starting fare will be S$4.60 for standard 4-seaters, and S$4.80 for both 4-seater electric vehicles and 6-seater cars. Fare increments will follow a structure of S$0.26 every 400m up to 10km, and every 350m thereafter, along with 45-second waiting charges. Although GrabCab has been granted a three-year grace period to scale its operations to a minimum of 800 taxis, Mr Sim confirmed that the company does not intend to wait until the final year to reach that benchmark. “We want to scale up corresponding to driver demand … we will do it sustainably,” he said. Additional driver-oriented features include a relief matching system within the Grab app to ease the process of finding substitute drivers during shift changes. Among the range of benefits GrabCab drivers can expect is a safe driving bonus of S$1,000 awarded annually for those with no at-fault accidents. A performance-based “GrabStreak” incentive will reward drivers with an additional 1 per cent bonus on monthly fares for completing between 500 to 700 trips. Fuel discounts will also be available—up to 40 per cent at Caltex stations and up to 25 per cent at electric charging partners including SP, Charge+, Volt, and Shell. Medical leave entitlements include 14 days for the first 100 drivers and up to S$500 in medical credits, with extended medical and hospitalisation coverage also in place. Drivers will benefit from the ability to cash out fares instantly via the app. Rental fees for vehicles will start competitively at S$117 per day, aligning with rates across the sector. Furthermore, the first 100 drivers to commit will receive welcome bonuses of S$1,888 for a 12-month term or S$3,888 for a 36-month term. GrabCab is also covering up to S$400 in TDVL application costs, which includes training, application, and medical examination expenses. Responding to industry speculation that GrabCab could disrupt the existing operator ecosystem, Mr Sim reiterated that the company’s intent is not to poach drivers but to address a national supply shortage. “If the driver is already driving with another taxi company, and he comes to us … we are not going to turn him away,” he said. “But at the end of the day, it’s back to our acquisition plan—our focus is on new TDVL holders and TDVL holders that have gone dormant.” He added that ride-hailing demand is projected to grow significantly in the coming years, creating a need for more consistent and reliable transport options. “When you think about taxis, you think of a sunset industry … so it seems counterintuitive for Grab to launch a taxi business,” Mr Sim said. However, he emphasised that taxis remain relevant, particularly during high-demand periods like post-concert surges, where Grab’s current platform struggles to ensure consistent supply. New regulatory measures introduced earlier this year are also expected to level the competitive playing field between ride-hail and taxi operators. These include allowances for taxi companies to convert used vehicles into taxis, provided they are less than five years old. Importantly, GrabCab’s launch does not signal a shift in focus away from other taxi partnerships within the Grab ecosystem. Mr Sim confirmed that the platform will continue to support bookings with other taxi companies and has no intention of prioritising GrabCab rides over existing partners. “Our aim here is to grow the pie, not to split the pie, or take some away from (other operators),” he concluded. -CNA

TOKYO : Japan’s junior coalition partner, Komeito, is poised to unveil a proposal to reduce the consumption tax rate on food items from the current 8% to 5%, as part of its campaign platform for the upcoming upper house election in July, according to a report by the Yomiuri Shimbun. The full pledge is expected to be formally announced on Friday. The initiative aims to provide immediate relief to households grappling with rising living expenses, with the party also set to advocate for direct cash payments. A Komeito official, speaking on condition of anonymity, confirmed to Reuters that the proposed tax cut would feature prominently in the party’s policy platform. Unlike previous fiscal stimulus plans that relied heavily on debt issuance, Komeito intends to finance the proposed measures through anticipated gains in tax revenues. A draft of the campaign pledge, obtained by Yomiuri, suggests that the party is seeking to maintain fiscal discipline amid a challenging economic backdrop. Currently, Japan imposes a consumption tax of 8% on food and 10% on other goods and services. Revenues from the tax are primarily allocated to support the nation’s ballooning social welfare costs, exacerbated by a rapidly ageing population. Komeito’s proposal could increase pressure on Prime Minister Shigeru Ishiba and the ruling Liberal Democratic Party (LDP) to take additional fiscal action ahead of the election. While the LDP has so far resisted calls—particularly from opposition parties—to reduce the consumption tax, citing concerns over fiscal sustainability, the introduction of such a measure by a coalition partner may compel a policy reconsideration. Government finances remain a key concern, especially as the Bank of Japan signals a potential upward shift in interest rates. Rising yields on super-long-term government bonds last month reflect investor unease over Japan’s towering public debt burden and the increasing cost of servicing it. -Reuters

Senior business leaders and policy experts are calling for Thailand to accelerate the development of a robust innovation ecosystem capable of producing rapid, tangible results to revitalise economic growth.   Speaking at a recent Thailand Science Research and Innovation (TSRI) dinner talk under the theme “Igniting Thailand’s GDP through the STI Fund”, Kris Chantanotoke, Chairman of the TSRI Board and Chief Executive of Siam Commercial Bank, emphasised that innovation should not be reduced to mere technological advancement. Rather, it must be embedded within a cohesive innovation system underpinned by clear goals, strategic collaboration and economic relevance. “Innovation is not just about technology — it’s about creating an effective system that can drive economic transformation,” Mr Kris stated. He warned that Thailand’s economy remains vulnerable and is unlikely to achieve GDP growth beyond 2% annually in the foreseeable future. Strategic Reorientation Needed Mr Kris highlighted a critical misalignment in Thailand’s current research and development strategy, which focuses primarily on inputs such as publication volume and aims to raise R&D spending to 2% of GDP by 2027. In contrast, other nations like Canada are targeting economic impact directly, with plans to generate US$50 billion in value through leadership in artificial intelligence over a decade. “Research activity is booming like mushrooms, but the application of innovation to solve real-world problems remains limited,” he said. “We need to move from disbursing funds to designing systems that drive real economic results.” He advocated a sharper focus on high-potential sectors aligned with Thailand’s strengths in natural resources and skilled labour. These include medical tourism and wellness, automotive, electronics, and food and agriculture — each with its own value chain that can deliver measurable outcomes. Mr Kris also pointed to external headwinds, including trade tensions and falling tourism, which are undermining the country’s economic base. Thailand remains heavily reliant on exports to the United States, which account for 18% of total trade, while household debt levels remain elevated. In terms of innovation output, Mr Kris cited a stark contrast in patent activity: Thailand registered only 11 resident patent applications per million people in 2023, compared with 274 in Singapore, 1,079 in China, 1,839 in Japan and 3,696 in South Korea. Enhancing Investment and Talent Ecosystems Kobsak Pootrakool, Executive Vice-President of Bangkok Bank, echoed the call for structural reform, urging Thailand to leverage its geographical location, infrastructure, and integrated supply chains to attract greater investment flows into Southeast Asia. He called for the development of a new talent ecosystem geared towards emerging sectors, particularly semiconductors, while also attracting foreign experts. This should be accompanied by continued investment in physical and digital infrastructure, modernisation of supply chains, regulatory reform, and improved ease of doing business. Mr Kobsak also emphasised the importance of upgrading traditional sectors and creating new strategic industries, including fintech, agritech, and climate technology. Delivering Real-World Impact Somkiat Tangkitvanich, President of the Thailand Development Research Institute, cautioned that reliance on export-led growth is increasingly unsustainable amid global protectionism, citing shifts in U.S. trade policy. He stressed that innovation must now become the engine of economic opportunity. He urged researchers to pursue projects that are both economically and commercially viable, citing examples from Japanese universities that, while not globally top-ranked, produce impactful research such as genetic profiling for athletes, matcha green tea innovation, and marine biology breakthroughs. “To deliver impact, research must produce results in a timely manner,” Mr Somkiat said. He called for rigorous assessments of market potential, technological feasibility, and financial viability — including revenue and profitability forecasts. Sompong Klaiyananwasuang, Director of TSRI, reiterated the organisation’s commitment to serving as a national platform that bridges academic research with practical application, ensuring that innovation drives measurable, sustainable progress. -Bangkok Post

Prime Minister Narendra Modi’s prominent presence at the International Air Transport Association (IATA) annual meeting this week highlights the central role aviation is expected to play in India’s broader development strategy. Yet, as India positions itself for global prominence in air travel, the sector faces mounting operational and regulatory headwinds. Despite ongoing global volatility in the aviation sector—fueled by trade uncertainties and weakened consumer sentiment—India’s major carriers remain bullish. Airlines continue to invest aggressively in fleet expansion, building on historic aircraft orders placed over the past two years. However, industry leaders caution that India’s impressive growth trajectory could stall without critical reforms and infrastructure upgrades. Participants at the IATA gathering in Delhi raised concerns about persistent issues, including aircraft shortages, underdeveloped maintenance capabilities, and high operating costs driven by fuel taxes and airspace restrictions. Hostilities with neighbouring Pakistan have forced Indian airlines into costly detours, increasing fuel consumption and adding to passenger management burdens. Airline executives are lobbying for policy relief, seeking tax exemptions and fee waivers, though the government’s willingness to intervene remains unclear. This comes in contrast to New Delhi’s stated ambition of transforming India into a job-generating global aviation hub, akin to Dubai, which currently channels a significant portion of India’s international traffic. “In the coming years, the aviation sector is expected to be at the centre of massive transformation and innovation, and India is ready to embrace these possibilities,” Prime Minister Modi told industry leaders on Monday. Realising this vision will require extensive capital investment—potentially running into billions of dollars—to modernise airport infrastructure and streamline regulatory frameworks. India Aims High, but Performance Lags India, already the world’s third-largest aviation market by seat capacity after the United States and China, is poised for exponential growth. According to IATA, passenger traffic in India is projected to triple over the next two decades. The government has set an ambitious target to increase the number of operational airports from 157 in 2024 to 400 by 2047. “We are fast emerging as a strategic connector country … India is a natural connector of the skies and aviation as well,” said Civil Aviation Minister Ram Mohan Naidu, addressing global airline executives in New Delhi. Yet, there remains a notable gap between potential and performance. India, the world’s most populous nation with 17.8% of the global population, accounts for just 4.2% of air passengers. In 2024, India registered a record 174 million domestic and international travellers—well behind China’s 730 million. “The outlook is potentially very positive for both the Indian economy and air transport industry. However, such outcomes are not guaranteed,” IATA noted in a recent assessment. Structural limitations continue to weigh down progress. Industry stakeholders argue that existing regulations require modernisation to support sustainable growth. “Even the regulators will agree that they need to update their regulation, because there is a reason why India is not punching above its weight. In fact, it is punching very much below its weight,” said Subhas Menon, Director General of the Association of Asia Pacific Airlines. Global competitors are also calling for India to liberalise its market. Emirates President Tim Clark pointed to demand outstripping available capacity, stating, “For every seat we offer, particularly in the peaks, we’ve got three to ten people trying to get it.” Maintenance capacity is another bottleneck. India lacks sufficient domestic maintenance, repair, and overhaul (MRO) infrastructure, leaving its fleet heavily reliant on overseas facilities amid global shortages. “Airframe maintenance is a huge opportunity for India because you require labour and skills—and that’s something India is investing in,” said IATA Director General Willie Walsh. Compounding these challenges are delays in the delivery of next-generation, fuel-efficient aircraft due to global supply chain disruptions. IndiGo, India’s largest airline, has turned to aircraft leasing to support its international expansion. It has also signed strategic partnerships with Air France-KLM, Virgin Atlantic and Delta to extend its global reach through shared networks. As India accelerates its push to become a global aviation powerhouse, the path forward will demand pragmatic policy reform, infrastructure enhancement, and a regulatory ecosystem conducive to international competitiveness. -Reuters