logo
Over 500 employees to be retrenched in Jetstar Asia's closure

Over 500 employees to be retrenched in Jetstar Asia's closure

Straits Times11-06-2025

Jetstar Asia said it will support the workers with retrenchment packages and employment support. ST PHOTO: STEPHANIE YEOW
Over 500 employees to be retrenched in Jetstar Asia's closure
SINGAPORE – Over 500 employees from Jetstar Asia will be retrenched following the closure of the Singapore-based low-cost airline on July 31.
In a statement on June 11, Jetstar Asia said it will support them with retrenchment packages, employment support, or provide them with other opportunities within the Qantas group or with other airlines and aviation companies in Singapore.
The airline's closure is part of a 'strategic restructure' by its parent company, Australian flag carrier Qantas.
In a separate statement, the Singapore Manual & Mercantile Workers' Union (SMMWU) said it has worked closely with management and negotiated with the company to ensure that affected members and workers receive fair compensation.
SMMWU is affiliated with the National Trades Union Congress (NTUC). Jetstar Asia has been unionised since 2009.
The company has committed to providing a comprehensive retrenchment package in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, SMMWU added.
SMMWU said it remains dedicated to supporting members and workers by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary.
It said: 'The union would leverage the Labour Movement network, including the NTUC Aviation and Aerospace (A&A) cluster of unions, to assist affected members and workers with job placement and career advisory services within the A&A industry.'
Affected Singaporeans and permanent residents can tap NTUC's Employment and Employability Institute for job matching services, career coaching and skills upgrading advisory, it added.
An inter-agency task force on retrenchment said in a separate statement that it is working closely with Jetstar and the SMMWU to support the affected workers.
Called the Taskforce for Responsible Retrenchment and Employment Facilitation, it comprises the Ministry of Manpower, Workforce Singapore, the NTUC and the NTUC's Employment and Employability Institute.
'Our priority is to help the affected employees with employment facilitation, said the taskforce in a statement.
Join ST's WhatsApp Channel and get the latest news and must-reads.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Central banks in Asia are becoming wary of currency intervention
Central banks in Asia are becoming wary of currency intervention

Business Times

time2 hours ago

  • Business Times

Central banks in Asia are becoming wary of currency intervention

Some of emerging Asia's biggest central banks look to be dialling back their interventions in the currency market. The central banks of India and Malaysia have reduced the size of some derivatives positions they use to weaken their currencies. Taiwan has allowed its currency to surge against the US dollar in recent weeks and dropped hints that it would be comfortable with more if the moves were 'orderly'. South Korea's giant national pension fund has ended its five-month support of the won. A major reason for these moves is a simple change in the market landscape: The US dollar has tumbled more than 7 per cent this year, easing pressure on emerging market currencies. But strategists and investors also point to the risk of a backlash from US President Donald Trump, amid rising speculation that currency policies will be on the table during a series of ongoing – and high stakes – trade negotiations. 'The threat of being labelled a currency manipulator by the US, especially during this period of tariff negotiations, will act as a deterrent to further heavy FX intervention in local markets,' said Rajeev De Mello, a Geneva-based portfolio manager at GAMA Asset Management. The shifting approach of Asia's central banks to defending their currencies underscores the sweeping changes in global markets since the election of Trump, whose on again-off again tariff threats have roiled asset prices and raised once unthinkable questions about the US dollar's place in the global trading system. South Korea confirmed last month that it had held currency talks with the US, sending the won higher amid talk that Trump wants a weaker US dollar. But White House chief economist Stephen Miran has denied the idea that Washington is working on secret deals to depreciate the greenback, saying the US continues to have a strong US dollar policy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The greenback has plummeted against major currencies this year, suffering drops of around 10 per cent against the euro and the Swiss franc. Traders are now trying to game out which currencies have the most to gain from a period of reduced intervention. The South Korean won and the Malaysian ringgit are two obvious candidates, since both countries have large trade surpluses, said Gautam Kalani, portfolio manager for BlueBay fixed income, emerging markets, at RBC Global Asset Management. Reduced intervention will speed up the appreciation of these currencies, he said. The Taiwan dollar is also being hotly tipped by strategists. Although Taiwan's central bank is still likely to use intervention to keep volatility in check, most market participants think it will allow the local currency to appreciate further even after hitting multi-year highs. That suggests room to build on what has already been a widespread rally against the US dollar: Taiwan's currency has surged 11 per cent against the greenback this year, making it the region's best performer. The South Korean won is up almost 8 per cent, while the Malaysian ringgit is around 5 per cent higher. The retreat from intervention isn't unanimous across Asia. Bank Indonesia pushed back against volatility on Thursday (Jun 19) as Middle East tensions hit emerging market currencies. The Philippines' central bank has sent mixed messages, calling intervention futile but also saying it might have to do so 'more seriously' if a current slide in the peso continues. The People's Bank of China continues to keep its currency under a tight leash. But for some of emerging Asia's most interventionist central banks, the calculus appears to have shifted in favour of a less hands-on approach. The US Treasury refrained from labelling any country a currency manipulator in its latest foreign-exchange report, released in June. However, it said China, Japan, South Korea, Taiwan, Singapore and Vietnam all met two out of three of its criteria. BLOOMBERG

How Musim Mas navigates palm oil's bad reputation
How Musim Mas navigates palm oil's bad reputation

Business Times

time6 hours ago

  • Business Times

How Musim Mas navigates palm oil's bad reputation

[SINGAPORE] Deforestation can drive wildlife to the brink of extinction, trigger transboundary haze from the fires set to clear the vegetation, and contribute to forced labour – and its association with palm oil accounts for the industry's bad reputation. The director of sustainable supply chain at palm oil conglomerate Musim Mas does not deny it. 'Unfortunately,... we are still at that stage of saying 'We are not as bad as people think',' said Olivier Tichit. 'But if you go and ask a palm oil farmer what he thinks about palm oil, a (different picture emerges). The farmer does not understand why palm oil is demonised, and the consumer might not understand why farmers or companies are still turning to palm oil. So I think we still lack that connection between palm oil farmers and the global markets.' Information gaps exist in other aspects of the sector too. In 2021, the Indonesian government reported that deforestation rates had fallen by three-quarters to their lowest levels since 1990, when tracking such data began. But two years later, French geospatial company The TreeMap found that deforestation caused by single-crop palm oil plantations was once more on the rise. To address such discrepancies, Musim Mas, one of the largest integrated palm oil players, was the first from Indonesia to join the Roundtable on Sustainable Palm Oil (RSPO), noted Tichit. Formed in 2004, the non-profit group facilitates the exchange of information on sustainability among stakeholders. It has more than 5,000 member organisations globally. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Tichit admitted, however, that 'while we have 98 per cent traceability to plantations, it is very hard to get to 100 per cent because of the dynamic nature of the supply chain'. Tichit says that since the suppliers are usually one or two steps removed from the company, they may not see the need to disclose certain information – or they may view the process of reporting their emissions as daunting. PHOTO: MUSIM MAS Musim Mas conducts its primary operations in Indonesia, working with third-party suppliers and has trained almost 47,000 smallholder farmers. This increases its exposure to Scope 3 emissions significantly, said Tichit, referring to indirect greenhouse gas (GHG) emissions that occur along a company's value chain. Given that 91 per cent of what the Singapore-headquartered company processes is from third parties, it is vital for it to monitor and control Scope 3 emissions in order to meet its 'net-zero by 2050' goal, he added. The main challenge to doing that comes from the lack of clarity on these emissions. Tichit said that since the suppliers are usually one or two steps removed from the company, they may not see the need to disclose certain information – or they may view the process of reporting their emissions as daunting. Getting a better view Musim Mas thus spends 'an inordinate amount of time' engaging with its suppliers, especially those who are not RSPO-certified, and explaining to them what deforestation and peat are. 'What we can do is to be clear about what compliance is, and how you address it when there is an issue,' he added. Tichit said that when the company needs information from its partner farms, it helps to frame the questions differently. 'For example, instead of asking them when their land use changed (and whether they have) high or low land use... often, what we need from them is just: 'Was there a crop before? When did you plant?'' Musim Mas also relies on satellite imagery to track the extent of deforestation caused by its partner farms. It also conducts risk assessments on its suppliers, based on what they disclose and the credibility of this information. The company then assigns its many suppliers 'risk levels', which indicate which of them are trustworthy, and whether their actual emissions can be monitored in real time. 'We are trying to be as conservative as we can, without making it impossible for us to buy from anybody,' noted Tichit. He added: 'We need to ensure that it is easy for the information to come to us, so we can translate it into what the actual emissions are, how we assess them, and when we need to intervene.' The company also utilises the PalmGHG Calculator, developed by RSPO to help palm oil producers estimate and monitor their GHG emissions. Musim Mas has ventured into impact investing as well, through its initiatives with the smallholder farmers who are integrated into its supply chain, said Tichit. These programmes include training the farmers on good agricultural practices. These investments are set to grow. 'We are looking beyond tomorrow – how do we keep the youth now on the farm? How do we make it so that they will have a good living income and be better equipped to be better farm managers? These are some of the programmes that Musim Mas has invested in to prepare itself and the industry for the future.'

Sustainable investors hold their ground as energy, defence stocks surge
Sustainable investors hold their ground as energy, defence stocks surge

Business Times

time6 hours ago

  • Business Times

Sustainable investors hold their ground as energy, defence stocks surge

[SINGAPORE] Regional wars, tariff threats and the US' pro-fossil fuel policies have sent defence and energy stocks soaring in 2025, but not all is lost for investors committed to sustainable and responsible investing, experts told The Business Times. Markets were closed on Jun 22, when US President Donald Trump ordered an attack on Iranian nuclear sites, but investors are bracing for a further spike in oil prices and rush to safe havens. The S&P 500 Energy sector index had risen 8.56 per cent month on month as at Jun 20, compared with the S&P 500's 2.11 per cent month-on-month gain. In Asia, several energy stocks rose after Israel launched air strikes on Iran on Jun 13, sending Brent futures up by US$5 to US$74 per barrel. Singapore-listed energy players such as Rex International and RH PetroGas surged more than 6 per cent at market open on Jun 16 after the strikes. The MSCI World Aerospace and Defense Index had an even larger surge, and was up 33.45 per cent year-to-date as at May 31. Comparatively, the MSCI World Socially Responsible Investment (SRI) Index has underperformed, rising 3.26 per cent year-to-date as at May 30, 2025, compared with the MSCI World index's 5.18 per cent year-to-date increase. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up More than half (56 per cent) of global investors believe that Trump's pro-fossil fuels and anti-clean energy agenda will slow the net-zero transition, indicated asset management firm Robeco's fifth annual Global Climate Investing Survey 2025 released on Jun 3, 2025. 'Clearly, the world is currently facing a tremendous amount of uncertainty, which affects both companies and investors,' Jane Wadia, London-based head of sustainability for core products and clients at AXA Investment Managers (AXA IM), told BT. US tariffs will disrupt the global trade system, she said, 'which has implications for sustainability due to the strain on supply chains'. She added: 'As a result, it may become more challenging for businesses to source materials and finance long-term projects that contribute to their sustainability efforts.' Even so, sustainability investing experts like Wadia are not too worried about the underperformance of sustainable funds or environmental, social and governance (ESG)-integrated strategies in light of these geopolitical and policy-driven uncertainties. 'We continue to see significant progress in the transition to net zero. A recent report from the International Energy Agency suggests that more than one in four cars sold globally in 2025 will be electric,' she said. 'The cost of renewable energy is falling relative to oil and gas in the long term, while demand for electricity is rising, driven by the ongoing development in China and the growth of artificial intelligence and data centres.' Despite news headlines about the ESG backlash, the undercurrents of companies' continued commitment to the energy transition and emissions reduction are still 'quite positive', said Louise Dudley, Federated Hermes' portfolio manager for global equities, who also leads ESG and responsible investment research strategy. 'We are still continuing to see opportunities around the world.' Federated Hermes managed US$839.8 billion in assets as at Mar 31, 2025. The 'green-hushing' phenomenon – where companies are removing climate goals and Web pages from the public eye but are still committed to sustainable agendas – is still alive and well, she said in an interview with BT. In addition, some of the underperforming funds could have been those that 'went quite high-risk, quite concentrated', she said, adding: 'Those types of thematic funds will have periods of underperformance as well as periods of outperformance.' A fund that is less thematic and more diversified is likely to be more resilient in the long term, she added. 'Maybe you don't get the excitement of 'Oh, we're 6 per cent ahead', but when some of these thematic trends, such as inflation, interest rates and all those things (come into play), we'll be well positioned on that,' she noted. At the core of it, measuring ESG factors is a form of risk management, she added. 'Governance, we always feel, is the backbone (of a firm), where, if a company is doing well from a governance perspective, it's going to do well… because it's going to be thinking about the right kind of risk; and it has the right people in place to manage whatever environment they go into,' she said. Responsible energy and defence investments The rise in energy and defence stocks is not necessarily incompatible with sustainable investing either, said Lucian Peppelenbos, climate and biodiversity strategist at Robeco, which had US$222 billion in assets under management and advice, of which US$216 billion is managed in ESG-integrated assets, as at December 2024. 'Within energy stocks, there are companies seriously transitioning; and also in many cases, for example, where gas replaces coal, we can see it as a sustainable transition investment,' said Peppelenbos, who is based in Amsterdam, said in an interview with BT. For instance, Norwegian oil and gas company Aker BP, which is listed on the Oslo Stock Exchange with a market capitalisation of 176.59 billion kroner (S$22.49 billion) has been viewed as an energy business with strong transition commitments, a relatively clean eco-footprint and strong fundamentals. Several other, more well-known global names such as Exxon Mobil and Royal Dutch Shell have diversified into alternative energy sources to varying degrees, although some – such as British Petroleum (BP) – have rolled back their commitments to transition away from fossil fuels. When it comes to defence stocks, Robeco makes sure there is no exposure to controversial weapons – which is against the law, as Peppelenbos reminded – and the firm calls defence investments 'responsible investing' over 'sustainable investing'. Robeco considers controversial weapons to include cluster munitions, anti-personnel mines, white phosphorus and depleted uranium ammunition, along with chemical, biological and nuclear weapons. Most of these are banned under international treaties. '(Within) exposure to defence stocks more generally, for example, there are more cybersecurity-related defence stocks that are very well compatible within ESG-integrated strategies,' he said. For instance, a high-profile incident last year where Northern Korean hackers were accused of allegedly stealing over US$1 billion worth of cryptocurrency highlights how modern warfare has evolved beyond conventional wars to cyberwars. Peppelenbos also believes that ESG is a performance driver; and because sustainability risks 'can be and often are financially material', integrating those risks makes for better informed investment decisions to help risk-adjusted returns, he said. 'Our research shows, for example, that among companies across high emission sectors and low emission sectors, companies that have good transition plans in terms of climate change – meaning targets that are in line with how their sector should decarbonise over time and are reflected in a credible transition plan – those companies are outperforming the climate laggers in their sector. So that's clearly a piece of evidence where sustainability and performance can actually go hand in hand,' he added. One underappreciated aspect of clean energy is that it plays a crucial role in future geopolitical stability as conflicts historically often arise over food, resources and energy, Ulrik Fugmann, co-head of environmental strategies group at the BNP Paribas Asset Management, told BT. Clean energy solutions and environment infrastructure is growing across Asia, Europe and the US at unprecedented speed and scale, he said. This is because of its cost-competitiveness and ability to readily tackle an urgent need to address global power deficits that are accelerated by the progress in artificial intelligence and data centres, said Fugmann, who is based in London. The asset manager has 602 billion euros (S$892.9 billion) in assets under management, of which 418 billion euros is in ESG assets. 'Given recent years' rise in inflation, interest rates and uncertain policy environment that is now getting re-enforced in the US and Europe, the clean energy sector today trades at valuation levels not seen since the great financial crisis in 2008 and depths of the Covid-19 crisis – in sharp contrast to global markets and elevated valuations in the technology sector trading at all-time highs,' he said. 'The case for sustainable solutions in clean energy has rarely been this attractive – both from a top-down macro-economic perspective and bottom-up valuation point of view,' he added.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store