30/09/2025

BIZ & FINANCE TUESDAY | SEPT 30, 2025

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Malaysian Paper

/thesundaily /

China’s K visa beckons foreign tech talent

Singapore population hits record 6.11 million SINGAPORE: Singapore’s population grew 1.2% in June compared to a year ago, hitting a new high of 6.11 million, government statistics released yesterday showed. Singapore has experienced steady population growth since the end of the pandemic, during which strict restrictions kept foreigners away and led to rare instances of the Asian financial hub’s population shrinking. The latest population increase came mostly from the growth in the number of foreign workers, which reached 1.91 million as of June, 2.7% higher than a year earlier. The National Population and Talent Division said the increase came from workers in the construction, marine shipyard and processing sectors as well as domestic workers. The workers in the construction sector “support key infrastructure projects such as Changi Terminal 5 and the ramping up of housing supply”, it said. The statistics for June showed that the citizen population inched up 0.7% from a year earlier to 3.66 million, while the number of permanent residents remained at 0.54 million. Increases in the number of foreigners in land-scarce Singapore can be a bugbear for political leaders, especially when voters are insecure about jobs and the cost of living. In 2013, the orderly island nation saw protests against plans for a dramatic increase in immigration that would boost the population to 6.9 million by 2030. The population division said the pace of growth in foreign employment remained stable from June 2024 to June 2025. Unemployment rates in Singapore remained low at 2% in June despite a decrease in job vacancies as businesses worry about a slowing economy. Singapore’s economy grew slightly faster than initially estimated at 4.4% year-on-year in the April-June quarter, but authorities expect growth to slow in the second half of the year under the impact of US tariffs. – Reuters

opportunities for non-Chinese speakers. Political tensions between Delhi and Beijing could also become a factor that could limit the number of Indian K visa applicants China is willing to accept, experts said. “China will need to ensure Indian citizens feel welcome and can do meaningful work without Mandarin,” said Feller. China’s talent recruitment has traditionally focused on China-born scientists abroad and overseas Chinese. Recent efforts include home-purchase subsidies and signing bonuses of up to 5 million yuan (RM3 million). These have drawn back US-based Chinese STEM talent, especially amid Washington’s growing scrutiny on ties to China. “The recruitment effort targeting Indian tech talent in China is growing but remains moderate compared to the more intensive, well-established, and well-funded initiatives aimed at repatriating Chinese STEM talent,” said Sichuan University’s Das. A Chinese STEM graduate who recently got a job offer from a Silicon Valley-based tech firm was also sceptical about the K visa’s prospects. “Asian countries like China don’t rely on immigration and local Chinese governments have many ways to attract domestic talent,” he said, declining to be named for privacy reasons. The US has over 51 million immigrants – 15% of its population – compared to just 1 million foreigners in China, less than 1% of its population. While China is unlikely to significantly alter its immigration policy to allow in millions of foreign workers, analysts say the K visa could still boost Beijing’s fortunes in its geopolitical rivalry with Washington. “If China can attract even a sliver of global tech talent, it will be more competitive in cutting-edge technology,” Feller said. – Reuters chief strategist Shinsuke Kajita. “There’s a sense that the ultra-long-term zone is becoming easier to buy,” he added. Markets have priced in roughly a 50% chance that the BOJ will raise rates in October. Also in focus is a party election on Saturday that will determine Japan’s next prime minister following the resignation of fiscal hawk Shigeru Ishiba. The 20-year yield fell 2 bps to 2.605%, while the 30-year yield slid 2 bps to 3.145%. – Reuters

pay US$100,000 per year for H-1B worker visas, widely used by tech companies to hire skilled foreign workers. “The US has definitely shot itself in the foot on H-1Bs, and the timing is exquisite for China’s K visa,” said Michael Feller, chief strategist at Geopolitical Strategy. Other countries including South Korea, Germany and New Zealand are also loosening visa rules to attract skilled migrants. Immigration experts say the main attraction of the K visa is no requirement of a sponsoring employer, which has been regarded as one of the biggest hurdles for those seeking H-1B visas. The H-1B visa requires employer sponsorship and is subject to a lottery system, with only 85,000 slots available annually. The new US$100,000 fee could further deter first-time applicants. “It’s an appealing alternative for Indian STEM professionals seeking flexible, streamlined visa options,” said Bikash Kali Das, an Indian student at Sichuan University. India was by far the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries. Despite its promise, the K visa faces hurdles. Chinese government guidelines mention vague “age, educational background and work experience” requirements. There are also no details on financial incentives, employment facilitation, permanent residency, or family sponsorship. Unlike the US, China does not offer citizenship to foreigners except in rare cases. China’s State Council did not respond to a request for comment asking for more details on the logistics and underlying strategy of the K visa. Language is another barrier: most Chinese tech firms operate in Mandarin, limiting

o New US$100,000 fee for US H-1B prompts search for alternatives

BEIJING: China’s new visa programme aimed at attracting foreign tech talent kicks off this week, a move seen boosting Beijing’s fortunes in its geopolitical rivalry with Washington as a new US visa policy prompts would-be applicants to scramble for alternatives. While China has no shortage of skilled local engineers, the programme is part of an effort by Beijing to portray itself as a country welcoming foreign investment and talent, as rising trade tensions due to US tariffs cloud the country’s economic outlook. China has taken a series of measures to boost foreign investment and travel, opening more sectors to overseas investors and offering visa waivers for citizens from most European countries, Japan and South Korea among others. “The symbolism is powerful: while the US raises barriers, China is lowering them,” said Iowa-based immigration attorney Matt Mauntel-Medici, referring to China’s new visa category, called the K visa, which launches tomorrow. The K visa, announced in August, targets young foreign science, technology, engineering and mathematics (STEM) graduates and promises to allow entry, residence and employment without a job offer, which could appeal to foreign workers looking for alternatives to US job opportunities. Earlier this month, Donald Trump’s administration said it would ask companies to

Japan govt bonds rally ahead of BOJ data, speeches TOKYO: Japanese government bonds (JGBs) rallied yesterday ahead of data and speeches from the central bank that may lend clues on the timing of its next interest rate hike. Super-long bonds have rallied of late as yields near record highs drew in buyers and concerns about political uncertainty and fiscal deficits eased.

The BOJ’s closely watched Tankan survey of corporate sentiment is due tomorrow, followed by speeches from Deputy Governor Shinichi Uchida and Governor Kazuo Ueda later in the week. The central bank may signal “changes in the nuance of its statements, leading to heightened caution in the market”, said Resona Holdings’

The benchmark 10-year JGB yield fell 1.5 basis point (bp) to 1.64%. The five-year yield edged 0.5 bp lower to 1.22%. Yields on short- and medium-term JGBs jumped to the highest since 2008 last week as speculation grew about a rate hike by the Bank of Japan as early as this month.

Sony Financial shares leap in Tokyo debut

TOKYO: Shares in Sony Financial rose on their first day of trading in Tokyo yesterday as the business is spun off from entertainment and technology conglomerate Sony. The shares rose as high as ¥210 in Tokyo before losing momentum over the course of the day to end at ¥173.80. The reference price was ¥150. The business has a market capitalisation of ¥1.24 trillion (RM35 billion). Sony is distributing shares in its finance arm, which includes banking and insurance, to shareholders through dividends in kind as it focuses on entertainment. Sony Financial has said it will buy back up to ¥100 billion of its shares.

It is the first partial spin-off in Japan taking advantage of a 2023 tax change and the first direct listing in more than two decades. In a direct listing, a company lists on the stock market without a traditional initial public offering (IPO). The spin-off separates the balance sheets of the financial and non-financial businesses, helping investors understand their aims, Sony has said. Compared with an IPO, the spin-off allows a large-scale separation in a relatively short time with low risk, according to the conglomerate. Sony aims to expand its presence in entertainment from games to movies and music, and maintain its position as the leading manufacturer of image sensors. – Reuters

Sony Financial Group president Toshihide Endo ringing the bell during the company’s listing ceremony on the Prime Market of the Tokyo Stock

Exchange yesterday. – AFPPIC