The power of China’s middle class and their role in the global economy

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The global market has been long dominated by Western consumers, especially spenders from the United States. However, experts are seeing some major changes in the world’s global spending and recent forecasts are putting one of Asia’s population giants and a particular social group on top of the pedestal: China and the nation’s middle class.

China is currently transitioning from an investment-based economy to a consumption-led economy and in the process, a powerful middle class begins to emerge – but how powerful is the Chinese middle class, exactly?

Consider these numbers: China has an approximately 790 million of urban population (based on 2016 data). Considering the current population growth trend, analysts estimate that come 2030, the same population in the country’s urbanized community will hit a billion.  So why are these statistics significant?

According to a recent study conducted by McKinsey & Company, a consulting firm, China’s urban population will be composed of 76% of the country’s middle class by 2022 – and it’s a record-breaking number that could disrupt the global economy.

Several industries can benefit from China’s rising middle class. For instance, their changing buying patterns and consumer behavior have proven to benefit global e-commerce, thanks to the availability and access to the biggest online shopping platforms from around the world.

Chinese consumers have also disrupted other sectors with their active spending and consumption of both goods and services, domestic and international. The travel industry, particularly, is a direct beneficiary of China’s growing middle class. In 2016 alone, they have brought in over 3.9 billion Yuan in tourism revenues. Dubbed as the “new global travelers,” this social group is the major driver of the country’s outbound as well as inbound tourist market.

As they thrive and become more financially powerful, the Middle Kingdom’s middle class may also venture into overseas businesses. This can include an array of startups, as well as offshore investments in the likes of Bermuda, the Cayman Islands, or Bahamas.


Understanding market volatility and how it can make you a better investor

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Fluctuations in the market and the instability of the numbers related to major stocks basically describe stock market volatility. When the market goes up on a certain day and suddenly goes down the following week only to go up again the week after is a perfect definition of this financial phenomenon that has continued to challenge investors for many decades. One important question to ask when trying to understand volatility is, what fuels it? What are the factors that cause the market to drop, to recover and drop again just like that?

Short-term market drops, for example, Is one of the drivers of a high volatility. History teaches us some of the best examples of the causes and effects of market volatility. For instance, during the turn of the century when the tech bubble finally collapses, the event caused a dramatic burst of volatility. Another example of a major volatility-stimulating circumstance is after the 9/11 attacks when fear and uncertainty loomed in the U.S.

Fear can be one of the most effective drivers of volatility and its influence on market insecurities can be fully observed in every financial crisis that the global economy experiences. Usually, investors and financial analysts can see a rise in volatility coming, because of the existence of volatility-related notes and funds.

The VIX (Cboe Volatility Index) for instance, is a well-known volatility index. The product, attached to the S&P 500 options, is dubbed as the “fear gauge” that measures market risk. The gauge is a useful indicator that helps investors make the best decision especially given the state of today’s global economy.

REPOST: Singapore tops quality of living index for expatriates in Asia

A healthy and conducive working environment is key to a successful career in almost any field. Especially for expatriates, such criterion is a crucial element to thrive. In Singapore, foreign workers enjoy one of the world’s highest living standards. Channel NewsAsia has the report:

FILE PHOTO: A view of the skyline of Singapore March 26, 2017. REUTERS/Woo Yiming/File Photo

Singapore retained its top position as the city with the highest quality of living in Asia for expatriates according to an annual Mercer index that was released on Tuesday (Mar 20).

Globally, Singapore ranked 25th, after cities like Vienna – that topped the list for the ninth year running – and Amsterdam, which was ranked 12th in the Mercer Quality of Living survey.

The findings are based on individual reports from each city that were largely analysed between September and November last year. The index is normally used to enable multinational companies and other organisations to compensate employees fairly when placing them on international assignments.

“An increasingly diverse workforce is both more mobile and digital with highly diverging requirements and aspirations in terms of career, lifestyle and ultimately where and how they want to work.

“Companies need to consider these factors in their value proposition to both their local and their expatriate employees,” said senior partner and president of Mercer’s career business, Ilya Bonic.

Singapore’s quality of living and infrastructure have consistently outperformed the other cities in Asia, even though the index shows that other Asian cities have seen an “exponential increase in living standards” due to a “rapidly expanding middle class and more affluent populations”.

Other Asian cities like Tokyo and Kobe tied at the 50th spot, and Shanghai came in at the 103rd spot. Singapore ranked higher than Hong Kong (71st), Seoul (79th) and Taipei (84th).

Shanghai had the highest increase in quality of living and its standard grew by 15.7 per cent. New Delhi and Guangzhou also showed significant increases at 13.8 per cent and 11.4 per cent respectively.

In Southeast Asia, Kuala Lumpur was ranked 85th, Bangkok was in the 132nd spot and Jakarta ranked 142nd.

Dubai ranked the highest for quality of living across the Middle East and Africa, while Vancouver took the top spot among the Americas.

The top five cities on Mercer’s index are Vienna, Zurich, Auckland, Munich and Vancouver.

In a separate index by Mercer, cities’ sanitation was also analysed as they are deemed to be “important aspects of a city’s attractiveness for both talent and businesses”, according to Mercer.

Honolulu topped the sanitation index globally and Singapore ranked 57th. Regionally in Asia, Singapore came in fourth place for sanitation after Japanese cities Kobe, Yokohama, Nagoya, Osaka and Tokyo.

Global Industries with the largest employment

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There are different companies emerging every day, contributing to an already dynamic international market and serving billions of customers around the globe. These activities do not only contribute their home country’s growing economy, but they also create more jobs and employment opportunities for people worldwide.

Here are the biggest international industries that boost the largest employment.

Sales and Retail Industry

The retail industry offers a huge range of employment from business posts, administration staff, finance and I.T. support, to sales and customer service. Every country has their own retail giants but other American companies like Walmart have surpassed the best and the brightest when it comes to retail chains. In the U.S. alone, it has over 2 million employees, and plus hundreds of thousands in their other locations in selected countries.

Fast Food Industry

According to a recent research, the value of the global fast food market could grow to up to $645 billion by 2020. McDonald’s, an international fast food chain, for instance, has 1.5 million employees from over 100 countries. In fact, it’s the second largest employer not just in the U.S. where it was founded but around the world.

Healthcare Industry

The healthcare industry is the largest employer globally. According to the World Health Organization (WHO), there are approximately 9.2 million doctors, 19.4 million registered nurse and midwives, over 1.9 million dentists and staff, and almost 2.6 million pharmacists in the world. In addition, there are over 1.3 health workers across the globe. These staggering numbers of employees in the industry could grow in the near future as the baby boomers reach their golden years and enter retirement.


REPOST: Saudi Arabia bans expatriates from 12 job types

KSA’s unemployment rate surpassed 12 percent last year. In an attempt to grant locals more job opportunities in the private sector, the Saudi labour minister has banned expatriates from working in 12 key sectors, including sales. Read more on Al Jazeera:

The moves comes amid nationwide changes to revamp the economy by Crown Prince Mohammed bin Salman [File: Amr Nabil/AP]

Saudi Arabia has banned the kingdom’s expatriates from working in 12 occupational domains, making them available to Saudi nationals only.

The decision by Minister of Labour Ali bin Nasser al-Ghafis will take effect starting September 2018, SPA news agency reported on Sunday.


The ministerial decree’s objective is to grant Saudi men and women more job opportunities in the private sector, SPA said.


Labour ministry spokesman Khalid Abalkhail, said the jobs were mostly in sales: sales in watches, eyewear, medical equipment and devices, electrical and electronic appliances, auto parts, building materials, automobiles, furniture stores, and more.


He also noted that a committee would be formed to facilitate the project.


The unemployment rate in Saudi Arabia surpassed 12 percent last year as the economy grappled with the fallout from low oil prices.


The move comes amid nationwide changes to revamp the economy by Crown Prince Mohammed bin Salman.


On Tuesday, a high-profile “anti-corruption purge” appeared to be winding down as Saudi authorities released all remaining detainees from the Ritz-Carlton hotel, after more than two months of detention on allegations of corruption.


Dozens of royal family members, ministers, and top businessmen were arrested in early November during an “anti-corruption crackdown” launched by Bin Salman. Allegations against those detained included money laundering, bribery and extorting officials.


Saudi Arabia’s Attorney General Sheikh Saud al-Mojeb said that the kingdom had seized more than $100bn in anti-corruption settlements.


The amount – 400bn Saudi riyals ($106.7bn) – represented various types of assets, including real estate, commercial entities, cash and more.


The government’s Vision 2030 plan to revitalise and diversify Saudi Arabia’s oil-dependent economy has seen the kingdom introduce a value-added tax (VAT), which applies to a wide range of commodities, including food, clothes, entertainment, electronics, and utility bills.


Saudi Arabia also halted state payments of water and electricity bills for royal family members.

What first-time investors should know about Stock Market Indices

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Needless to say, learning the basics when it comes to investing in the stock market can make a huge difference, especially if your goal is to go big and all out in this financial venture. One of the things that new investors should pay attention to first is in understanding the definition of the stock market index and how knowing your way around it can help you make the most strategic investment decisions.

Basically, a stock market index is a statistical measure of performance for specific stock portfolios, representing a portion of the actual, overall market. Here are the things that you should know about today’s stock market indices.

  1. An index serves as a market performance tracker.

A stock market index provides investors and market participants with important and updated information about the performance of the entire stock market. For instance, a change in the price of a specific index reflects a corresponding change in the stocks belonging to the index.

  1. Stock indices can be constructed through different methods.

Global indices often use market capitalization weighted (also known market cap) method. Basically, this construction uses a company’s market cap to determine how much of the index it will cover. In other words, big companies mean larger weighting in the index. Another less popular but highly effective way to build a market index is the equal-weighted method. Here, market caps don’t matter, creating equal weighting for both large and small companies.

  1. Anyone can create a stock market index.

Since a stock market index is simply a list of stocks, anyone who has the right knowledge and expertise can create an index. The difficult part is, building the index’s reputation and competing among well-down indices such as the S&P 500 and the Dow.

For more about stock indices or stock investing in general (including offshore investing), consult with an expert at LOM Financial. Click HERE to know more.

European Countries with the highest-paying jobs for expatriates

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Expatriation is an economic phenomenon that has taken the world by storm in the last couple of decades. A healthy community and environment, financial security, high standard of living, and endless opportunities—these are mainly the reasons why many people choose to explore and simultaneously work outside of their home country.

Furthermore, some of the highly industrialized nations can be found in Europe. In fact, it is the world’s second smallest continent yet considered as one of the wealthiest regions on Earth. In 2012, Europe had about 33 million expats, with Germany alone having recorded more than 7 million foreign population.

For career-driven expatriates who are looking for a greater opportunity, these European countries can be your next exciting career destinations:


  1. United Kingdom

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In terms of career opportunities for expats, the U.K. has endless options to offer. London, the country’s capital and a melting pot of many cultures and international businesses, has long established itself as a global center for finance, tourism, and even the arts. Equally important cities are Manchester, Birmingham, Leeds, and Glasgow. While moving to this country can be a bit complex and daunting, the United Kingdom is home to one of the largest business centers in the world, and is therefore a conducive environment for career-driven individuals—especially in financial sectors. According to UK Business Insider, white-collar expatriates can get paid an average annual income of $170,000 in technology and telecom, $215,000 in insurance services, and as high as £400,000 in financial services.


  1. Switzerland

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Switzerland is politically and economically stable. Its efficient tax system, high average income, and robust economy are some of the many reasons why many expatriates are compelled to move to this country. The cost of living in Switzerland is relatively high, but it is still an attractive destination to many international workers. As of 2017, the number of foreign residents in the country has reached over 2.1 million.  The hope of global brands such as Nestlé, Glencore International, Credit Suisse, and Novartis, Switzerland contribute heavily to the European economy. Their best-paid professions for expats are in the business and investments field, where workers can get an average salary of around $180,000.


  1. Germany

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Among Western European countries, Germany has a relatively lower cost of living, which makes it an ideal work destination for many expats. However, that does not mean that the quality of life is also lower. In fact, the country scores very highly on the Human Development Index (HDI). The country has the best recycling system, high quality public transport services, superb locally developed technologies, and a vibrant social environment. One of the lowest unemployment rates in Europe also belongs to Germany. On March 2017, it recorded an all-time low of 5.8 percent.


  1. Netherlands

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Achieving work-life balance seems easier in Netherlands compared to its neighboring nations. The Dutch standard of living is quite expensive particularly in Amsterdam, the capital city of Netherlands. However, working in the Dutch business world, the level of salaries are highly competitive. In addition, companies provide an average of 30 days paid time off. Factoring in national holidays, workers may enjoy over a month of paid vacation time. The median gross expat salary in Amsterdam, as of 2017 and based on PayScale Inc.’s report, is around $68,000 for IT project managers, $62,000 for business development manager, and $55,000 for research scientists.

High-paying industries with the most expatriate workers

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Living and working abroad in an expatriate status can be extremely demanding but equally fulfilling. If you’re planning to make the same decision of moving to another country and taking on the challenge of pursuing globally competitive career opportunities, it’s highly important that you know where to start.

To help you out, here’s a list of the highest-paying industries that are popular among expats around the world.

  1. Finance Industry

The finance industry is a haven for those who have already established their careers in their home countries. Your work experience and the years you’ve accomplished can help you find high-paying positions abroad, especially if you have a business or commerce degree or have experience dealing with offshore investments. Approximately, professional careers in the finance industry (analysts, managers, directors) can range from $50,000 to $200,000 every year.

  1. Medical Industry

Medical professionals enjoy one of the highest demands in the expat career opportunities. Highly skilled physicians and nurses can easily find work abroad and even win opportunities for further studies while pursuing higher career positions. In Europe, for instance, medical aid, doctors, and nurses benefit from a generous salary ranging from $70,000 to $290,000 every year.

  1. BPO Industry

The Business Process Outsourcing (BPO) industry has been around for many years and its success has helped many expats live the best personal and professional life abroad. Salary ranges from $40,000 – $250,000 annually. Most BPO executives are expats who are sent abroad as consultants and experts in many countries especially in Asia. However, other destinations like Serbia, Canada, and Belarus have also recently been favored as BPO centers where foreign experts are highly in-demand.

Along with generous employment packages, most companies offer transportation, accommodation and meal allowances.

REPOST: New savings plan for UAE expatriates proposed

Expatriates in Dubai are open to the idea of a savings investment fund that may eventually replace gratuity. This new scheme, taking into consideration many factors, may provide foreign workers a reliable post-retirement source of income. More about this story on Gulf News:


The new study suggests that a monthly amount of the expatriate employee’s salary be deducted and deposited by employers in the proposed fund, and then be paid as a lump sum to employees at the end of service or retirement, along with the expected return on their investment in the fund.


Dubai: A new study has recommended the establishment of a savings investment fund, which would replace the traditional end-of-service gratuity, for expatriate workers who work in both the private and public sectors.


“The scheme would be a major strategic step and a new experiment of its type in the region,” said the study, which was presented to the government recently. A copy of the study was obtained by Gulf News. If implemented, the scheme, which includes non-Emirati employees in the government, semi government institutions and the private sector, “will have a positive impact socially and economically on all parties of the production cycle and stimulate the national economy,” the study noted.


The new study suggests that a monthly amount of the expatriate employee’s salary be deducted and deposited by employers in the proposed fund, and then be paid as a lump sum to employees at the end of service or retirement, along with the expected return on their investment in the fund. “The proposed fund will serve as a new model for expatriate employees’ participation in the investment decision,” it said.


The study suggests specialized fund managing institutions would run the proposed fund, which will employees’ monthly deductions and the additional voluntary contributions, “to invest it in an optimal way that ensures good financial returns for the employees.”


The study underlines the importance of “this vital and strategic project, which is based on the best global practices in the field.” The new scheme will help increase employee dues and reduce the expenses of employers, whether government or private bodies, thus stimulating the national economy, it explained.


It also recommended that employers’ participation in the fund should be voluntary; whether the employer is a private or public sector. The company will have the choice either to participate in the fund or choose the regular end of service system. It also suggest that employees will also have the option of an additional monthly contribution in the scheme if their employer takes part in the scheme. The employers can also offer the plan to certain segments of their staff depending on their employment levels.


Employees who are recruited after the implementation of the new saving scheme will participate in the system as they join. As for the current employees , meanwhile, the study suggests that their end of service gratuity will be calculated until the date of implementing the new scheme and be paid to current employees when they quit their job in addition to the return of investment from the date their employers joined the fund.

Why the Caribbean attracts countless offshore mutual fund investors

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When it comes to expanding one’s portfolio, many have found investing in offshore mutual funds to be an attractive option because aside from providing economies of scale, this investment opportunity offers liquidity and security – while enjoying a low-tax advantage, especially for investors from high-tax countries like the U.S. and other European nations.

Most of these popular offshore centers are located in the Caribbean. However, the level of regulations may differ depending on the guidelines and tax policies set for each jurisdiction. These destinations top the list of the most alluring Caribbean island-nations to invest in offshore mutual funds.


  1. Bermuda

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While technically not in the Caribbean waters, Bermuda is geographically close to the region and benefits from the wealth of its nearby island-nations by equally attracting millions of investors to its Atlantic shores. Aside from being a reliable offshore center for both offshore mutual funds and securities, it’s the home to one of the biggest reinsurance headquarters in the world. LOM Financial, a multi-awarded offshore financial services company, is headquartered in this British Overseas Territory.


  1. Cayman Islands

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The Cayman Islands have been known to the industry as one of the oldest and most established offshore jurisdictions among other Caribbean island-nations. The islands offer the most diversified options especially for investing in offshore mutual funds and other international stocks.

As a major player in offshore investing, it’s an investing sanctuary for over 200 banks, most are branches from the biggest international banks around the world. The availability of these financial institutions in the island have provided different private as well as investment banking options.


  1. The Bahamas

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The Bahamas is considered as one of the most financially progressive countries in the Caribbean. The credit perhaps should go to its government and how it focused on attracting businesses and investors to the country by strategically laying out attractive tax laws and policies designed to cater to wealthy and super wealthy foreign investors. Banking and international financial services account for some 15% of the country’s GDP.