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Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Saturday, December 5, 2020

'Don't know if I'll ever fly again': Pilots, aircrew in Malaysia turn entrepreneurs to tide over COVID-19 - CNA

KUALA LUMPUR: It has been months since Naeem Nassir was terminated from Oman Air in July, and the 30-year-old pilot still longs for the adrenaline rush and glamour of his previous work. 

His job of two years was quite different from the traditional deskbound nine-to-five. The senior first officer counted frequent international travel, an above average income and an office above the clouds as some of its perks.

For now, taking to the skies is out of reach for Naeem and hundreds of his pilot and flight attendant colleagues in Malaysia who have been grounded or sacked as COVID-19 pandemic has decimated the air travel industry.

The tail of a Malaysia Airlines aircraft is pictured at Kuala Lumpur International Airport
The tail of a Malaysia Airlines aircraft is pictured on the tarmac at Kuala Lumpur International Airport in Sepang on Sep 7, 2020. (Photo: AFP/Mohd Rasfan)

Over the last few months, two major airlines in Malaysia, Malindo Air and AirAsia, have confirmed that there have been layoffs while national carrier Malaysia Airlines has implemented cost-cutting measures such as unpaid leave and pay cuts.

Some of those impacted have turned to entrepreneurship to earn a living, kick-starting businesses in the hope that they yield returns. 

FORMER PILOT’S BURGER VENTURE WHICH HAS TAKEN OFF

Naeem, for instance, has swapped out his aviator hat and smart uniform for dirty aprons and grimy gloves at his new venture, Smashed Burger.

The outlet, located in Bukit Jelutong, Selangor, sells Australian beef patty burgers with toppings such as caramelised onions and beef bacon, for the relatively cheap price of around RM10 (US$2.46).

While flipping burgers may sound less complicated than flying a commercial aircraft, Naeem acknowledged that the transition has been “very drastic”.  

READ: Malaysia says aviation firms may need three years to recover from COVID-19

“I went from sitting down in an air-conditioned cockpit, managing switches and flying the plane, and being served food by cabin crew, to working this burger business.

“I found myself standing for hours beside a hot grill late into the night and engaging directly with customers with different expectations. It’s a drastic change,” he added.

Naeem opened Smashed Burger because he was inspired by the burgers he had tried when he flew to Muscat, Oman.

Smahsed Burger Selangor
A Smashed Burger contains smashed beef patty, special sauce, melted cheese, caramalised onions and lettuce. (Photo: Instagram/smashed.my) 

“There were two kinds of burgers in Oman which I crave for. The first is like those at Shake Shack, so I went to Google their recipes. The second type is 'burger bakar' or burger patties grilled on charcoal grill.”

Fortunately for him, Smashed Burger has been a huge hit among locals in Selangor. Ever since food blogs and local media have reported on the venture, Naeem’s burgers have been selling out almost daily this week, and he has been forced to apologise to his customers, urging them not to travel to his stall and end up disappointed.

“We are thankful… we never expected the business to go viral. The business was initially run just by me and my wife, but now my parents are helping out too,” he added.

FORMER PILOT OPENS HOME-BASED FOOD BUSINESS

Another pilot who has pivoted to a food business is Syed Meerah, a former Malindo Air employee who was sacked in October.

The 33-year-old captain said he was shocked at first, but after discussing with his partner, he decided to take the plunge into a home-based food business.

“After I was retrenched, my girlfriend suggested that I do something that I like – and I love to cook. So I decided to cook for my friends, ask them to review, and after I got good feedback, I decided to go all out,” said Syed.

Grounded chef
Syed Meerah runs Grounded Chef with his former colleague Hazrin Naemran. (Photo: Instagram/groundedchef) 

Syed runs a food delivery service – dubbed Grounded Chef – that serves up mamak-style dishes that have a Peranakan twist such as devil curry chicken and chicken perattal. He works alongside his former colleague from Malindo Air, a flight attendant, who helps him with the deliveries.

“My cooking style was initially just Indian Muslim, mamak cooking. Then after I introduced Nyonya style, which is more sour-based with asam and belacan, that became my signature,” said Syed.

grounded chef
Grounded Chef serves, among others, devil's chicken curry and house special teh tarik. (Photo: Instagram/groundedchef) 

“I used to travel to India a lot for work and over there I learnt about spices, local delicacies and style and I try to implement these in my cooking,” he added.

He cited how he learnt to make a special omelette by adding more milk to make it fluffier, a tip he picked up in Amritsar, a city in north India. 

FLIGHT ATTENDANT STARTS FISH BREEDING VENTURE

Besides food businesses, there are grounded Malaysians from the aviation industry who have opened other ventures. For instance, a flight attendant with AirAsia, who wanted to be known only as Don, told CNA that he has opened a business breeding fighting fish.

Don said that he is still employed by AirAsia, but as the number of flights have dried up, his opportunities for work have dwindled and so has his flight allowance. He flies once a month, if he is lucky.

Fighting fish farm Malaysia
Don is breeding fighting fish in his home. They take around five months to mature before they can be sold. (Photo courtesy of Don) 

“The last time I flew was around two months ago, and frankly, I don’t know if I’ll ever fly again,” said Don. 

He recalled how earlier this year, he and his AirAsia colleagues had heard rumours of upcoming retrenchment exercises.

“Typically we hear that it would most likely happen within 24 hours, and those nights, we all had trouble sleeping.” 

He then decided that he needed some financial security and invested his life savings of around RM17,000 to start a fish farm in his home to breed colourful betta fighting fish, which can be sold for up to RM1,000 each.

fighting fish malaysia
Don enjoys breeding fighting fish but he finds the work required to frequently clean their tanks cumbersome. (Photo courtesy of Don)

“I started out with just two fish, but now I’ve got thousands of them. I made mistakes, but learnt from watching YouTube videos and got suggestions from old-time breeders,” added Don.

To further supplement his income, Don also opened a roadside stall called Popiah World selling fried popiah. He said the stall’s unique selling point is the variety of fillings customers can choose to have in their popiah, including carbonara, spicy beef and chicken with special sauce. 

Catfish, betta and flower horn: How COVID-19 spawned interest in fish keeping among Indonesians

However, he has learnt that running two businesses is “tiring”, especially the fish business, which has taken up a lot of his time and energy.

“Breeding fishes is not my specialty. I love animals, so I enjoy it but it’s exhausting to change the water in the containers every 3 days and I have no money to hire an assistant. It also takes five months to breed the fishes until they’re mature and ready to be sold. This requires patience before I would see any returns on my investment,” added Don.

“THE HIGHER YOU ARE, THE HARDER YOU FALL”

While Naeem, Syed and Don’s businesses have had varying degrees of success so far, all three are in agreement that the income they are grinding out pales in comparison with what they were earning while flying pre-COVID-19.

Naeem said that as a pilot with Oman Air, he was earning a “five-figure salary” and although his Smashed Burger venture has been popular, he still has been forced to tone down his lifestyle.

“I was blessed with a good salary. I bought a house. I now own two properties and my (loan) commitments are very, very high,” said Naeem. “It’s been a big change.”

Syed concurred, explaining how his spending power has diminished now that he is relying on his home-based business for income.

“As the saying goes – the higher you are, the harder you fall,” said Syed. “This whole episode has been a wake-up call for all of us,” he said. “At the moment, it’s about getting through the day.”

READ: Malaysia's budget for 2021 is its biggest ever. Will it cushion the impact of COVID-19?

He was grateful that the government has extended the bank loan moratorium for Malaysians who have been retrenched as a result of COVID-19.

“It helps a lot but when the moratorium ends, the problem arises again. These current businesses opened by pilots and flight attendants won’t be able to sustain unless the moratorium is extended further,” said Syed.

“We have car and house loans which need to be serviced as well and we would appreciate more help from the government. Other than the moratorium, there has been no other forms of financial aid,” he added.

Meanwhile for Don, he still draws a basic salary as he is still employed with AirAsia, but it is a fraction of what he was earning in 2019 when he was flying more often.

“My wife’s income has been reduced by 30 per cent. The banks have approved our moratorium request for our home loan, but not for my car and motorbike,” said Don.

“So there’s nothing else I can do but try my best to cover the costs,” he added.

WAITING TO FLY AGAIN

While their businesses have been a refreshing change, all three told CNA they are keen to return to work with their airlines. 

Syed said: “I’m waiting to get back in the air, that’s about it. This (business) is something to tide me over.” 

However, he acknowledged if he were to return to flying full time, he would miss his “fun cooking business” and the conversations he has with his customers. 

“The only (main difference) is the money, always the money,” said Syed. “I can’t earn whatever I earned flying from my business, and I have (financial) commitments.”

FILE PHOTO: AirAsia planes are seen parked at Kuala Lumpur International Airport 2, during the move
AirAsia planes are seen parked at Kuala Lumpur International Airport 2 in Sepang, Malaysia, Apr 14, 2020. (File photo: REUTERS/Lim Huey Teng)

Naeem said that it has always been his ambition to both be a pilot and also own a food and beverage business, and he is hopeful that he can follow both dreams once the flying industry has returned to normal. 

“Perhaps it has been a blessing in disguise that I got laid off, so that I can chase this dream,” said Naeem. 

“If I were to start flying again, I would love to continue this business because I believe in sharing good quality food for everyone to enjoy. Hopefully this business can grow further again,” he added. 

READ: 30% of Malaysians expected to be vaccinated against COVID-19 next year, says PM Muhyiddin

Don, the flight attendant, is hopeful that the air travel industry will soar again in the near future. He noted that there are plans to bring in the COVID-19 vaccine and he is optimistic it will inspire confidence in Malaysians to resume flying. 

“I hope AirAsia will recover and passengers will no longer be afraid to travel. If I’m working, at least I’m assured of a salary,” said Don. 

“I don’t mind flying even with the precautions in place. I wear the PPE (personal protective equipment) while flying and ensure I take a shower at the airport after every flight,” he added. 

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Ant, Grab's venture and Sea to usher in Singapore digital banking - AsiaOne

SINGAPORE - Southeast Asian ride-hailing firm Grab’s venture with Singtel and internet platform company Sea Ltd have each won licences to run Singapore’s first digital banks, in the city-state’s biggest banking shakeup in two decades.

Singapore’s move to herald newer players including Alibaba Group affiliate Ant Group and a consortium comprising China’s Greenland Financial Holding Group comes as Asian regulators tap tech firms to shake up their often staid markets.

Singapore’s criteria, which included local control and S$1.5 billion in paid-up capital for full digital banking, was stricter than its main financial rival Hong Kong, which has issued eight digital licences.

“Digital banks will need to contend with an uncertain economic environment, low interest rates and competitive responses from the incumbent banks and other financial services players,” said Wong Nai Seng, a partner at Deloitte, who worked at Singapore’s central bank for 17 years.

The Monetary Authority of Singapore (MAS) expects the digital banks to start operating from early 2022 after meeting the necessary pre-conditions of Singapore, one of the world’s top financial centres, and Southeast’s main hub.

 

“We expect them to thrive alongside the incumbent banks and raise the industry’s bar in delivering quality financial services, particularly for currently underserved businesses and individuals,” said Ravi Menon, managing director of the Monetary Authority of Singapore (MAS).

MAS, the central bank, had previously shortlisted 14 of 21 applications received by Dec. 31 last year.

Analysts say the development is unlikely to seriously impact incumbents DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank which have already invested heavily in technology.

The licensees could use the opportunity as a step towards expanding into larger Southeast Asian markets.

SOUTHEAST ASIAN TECH TITANS

Grab’s venture and Sea won digital full bank licences. This allows them to take deposits and offer services to both retail and corporate customers in a country where most of its 5.7 million population already have bank accounts.

Their operations will initially be restricted as they build up business models and processes before gradually becoming fully functional.

Grab, Southeast Asia’s most valued start-up at over $15 billion which is backed by Softbank Group Corp, will hold 60per cent in its venture with Singtel. Grab has evolved from a food delivery app operator into a one-stop shop for ride-hailing, food delivery, payments and insurance.

At a virtual media briefing on Friday, both firms said the consortium would add about 200 roles by end-2021.

“Singapore is a gateway to Southeast Asia. Today’s winners will also look to seek upcoming digital bank licenses in Malaysia and Philippines to create regional powerhouses for bringing fintech and lifestyle together,” said Varun Mittal, head of emerging markets fintech business at consultancy EY.

Shares of U.S.-listed Sea, which is involved in e-commerce, online gaming and digital payments, rose 5.6per cent on Friday. Founded in 2009 by Chinese-born entrepreneur Forrest Li, who became a Singapore citizen, Sea boasts a market valuation of $90 billion.

Li, Sea’s chairman and group CEO said the licence gave the firm a chance to address the “underserved” financial needs of young consumers and small and medium businesses in Singapore.

Ant and the Greenland consortium, winners of digital wholesale banking licences, can tap small and medium-sized businesses. Alibaba’s shares edged up 0.6per cent.

MAS said since the two wholesale banks are introduced as a pilot, it could give more licences later. Previously, it had flagged offering up to three wholesale licences.

It said on Friday that it had taken into account the impact of the Covid-19 pandemic on the applicants’ business plans.

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SIA, other firms look to build on existing vaccine handling capabilities - The Straits Times

SINGAPORE - Singapore Airlines is taking steps to raise the limit of dry ice it can carry per flight, so it can transport any Covid-19 vaccine on a larger scale in future.

The national carrier on Saturday (Dec 5) said it is working with vaccine manufacturers and regulators to increase the amount of dry ice that can be carried safely on its planes from 3,500kg per cargo flight now.

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Friday, December 4, 2020

Probe under way after crowds gather outside Foot Locker at Orchard Gateway: STB - TODAYonline

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  1. Probe under way after crowds gather outside Foot Locker at Orchard Gateway: STB  TODAYonline
  2. Sneaker enthusiasts crowd Orchard Road shoe retailer in breach of Covid-19 rules  AsiaOne
  3. View Full coverage on Google News
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Cultured meat: No-kill products may be food for the future - The Straits Times

SINGAPORE - In a world first, Singapore on Wednesday (Dec 2) approved the sale of a cultured meat product here.

The chicken bites by Californian start-up Eat Just are made by culturing animal cells in bioreactors instead of rearing animals on farms, and are not yet available for sale and consumption anywhere else.

The Singapore Food Agency (SFA) said it was allowing the cultured chicken to be sold here after its evaluations determined it to be safe.

The company would not be drawn on a timeline on when the product will be available, but the firm's chief executive Josh Tetrick told The Straits Times on Thursday that it will be soon, and at a "higher-end" restaurant.

The aim is to make cultured meat cheaper than conventionally farmed meat, he added.

Why it matters

Alternative proteins, such as cultured meat, could pave the way for more sustainable food production and better food security.

While a report on land use by the UN's climate science body last year found that plant-based diets were still associated with a lower environmental impact compared with meat-based ones, it may not be feasible to get everyone to go vegetarian.

Culturing meat could be an alternative to rearing livestock, which according to the UN's Food and Agricultural Organisation make up 14.5 percent of emissions from human activity.

Culturing meat involves taking cells from an animal (often done in a harmless way, such as through a biopsy), and then growing the cells in a nutrient broth within a bioreactor.

This process has been associated with a number of environmental benefits.

One, it reduces emissions associated with rearing livestock.

There is less need to clear forests for farms or grow crops for animal feed, and reduces methane emissions from ruminants like cows, which releases a lot of methane during digestion of their food. Methane is considered a more potent greenhouse gas than carbon dioxide over shorter time spans.

Two, culturing meat can be done in a smaller land area compared with the livestock supply chain.

Three, it allows meat to be produced without slaughter. This avoids the need to confine livestock to small spaces, and reduces the chance of diseases spreading between humans and animals.

On the food security front, cultured meat could also boost the resilience of import-dependent nations like Singapore, which sources more than 90 per cent of its food from overseas.

Eat Just has said its cultured chicken bites will be manufactured in Singapore, and Mr Tetrick told ST on Thursday that the firm aims to produce enough not just for the domestic market, but for the rest of Asia as well.

What lies ahead

The need to feed a growing global population, which could reach almost 10 billion by mid-century, is straining food production systems.

And the impacts of climate change - whether changing rainfall patterns or more frequent extreme weather events - could put further stress on food security.

These trends highlight the need for new ways of producing food, with a smaller carbon footprint.

Critics have said the environmental impact of culturing meat - an energy-intensive process - is not definitively better than rearing animals the traditional way.

Context is important. In Singapore, for instance, most energy is generated by natural gas - a cleaner fossil fuel than coal or oil. Advancements made in renewable energy systems, and scaling up production of cultured meat, could boost efficiency and lower the carbon footprint of cultured meat.

As with many new innovations, more studies are needed to assess the different impacts of cultured meat products.

The SFA has done so on the food safety front. But even as research on environmental impact continues, another hurdle remains: Consumer receptivity to eating meat made a different way.

The impact of climate change can already be felt. Consumers can help, by keeping an open mind.

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Thursday, December 3, 2020

S'pore's new Covid-19 case in dorm detected in proactive surveillance; S'porean among 8 imported - The Straits Times

SINGAPORE - The lone locally transmitted coronavirus case reported on Thursday (Dec 3) was from a workers' dormitory, the Ministry of Health (MOH) said in a statement on Thursday night.

The man was asymptomatic and the infection was detected through proactive surveillance, said MOH. The Ministry added that his polymerase chain reaction test result indicated a low viral load, an indicator of the amount of virus in the body.

His close contacts at the dormitory and his workplace have been isolated and placed in quarantine.

There were nine cases in all confirmed on Thursday, bringing Singapore's total to 58,239.

The other eight cases were imported. They comprised one Singaporean, two permanent residents (PRs), two work pass holders, two short-term pass holders and a dependant's pass holder.

The Singaporean and both PRs had returned from the United States. Both work pass holders were from Nepal, while both short-term visit pass holders arrived from Indonesia. The dependant's pass holder was an 18-year-old woman coming from France.

All eight cases were asymptomatic when tested, and all were placed on stay-home-notices on arrival in Singapore and tested, said MOH.

MOH added that the number of new cases in the community has remained low, with a total of four new cases in the past week, all of which are unlinked.

With one more patient discharged on Thursday, 58,130 have recovered from the disease.

There are 26 patients still in hospital, with none in intensive care, and 39 are recuperating in community facilities.

Singapore has had 29 deaths from Covid-19 complications, while 15 who tested positive have died of other causes.

Related Stories: 

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South Korea reaches deal to buy AstraZeneca's Covid-19 vaccine candidate - The Straits Times

SEOUL (REUTERS) - South Korea has reached a deal with AstraZeneca to purchase its coronavirus vaccine candidate as it seeks to secure supplies amid a resurgence of outbreaks, local media reported on Thursday (Dec 3).

The government has said it was in final talks with global drug-makers including AstraZeneca, Pfizer Inc and Johnson & Johnson over their experimental vaccines, and launched a preliminary review of AstraZeneca's product in October for potential fast-track approval.

The JoongAng Ilbo newspaper said health authorities signed a contract with the Britain-based company on Nov 27, and were nearing agreements with Pfizer and Johnson & Johnson, citing an unidentified government official.

"The AstraZeneca deal has been done, and a memorandum of understanding was reached with both Pfizer and Johnson & Johnson. But further negotiations are needed to finalise the amount of supplies and the timing of shipment," the official was quoted as saying.

The Yonhap news agency also reported, citing an unnamed health official, that an agreement with AstraZeneca was inked recently and the government would make an announcement as early as next week after completing negotiations with other firms.

The Korea Disease Control and Prevention Agency (KDCA) said that the JoongAng report was not the government's official position, but that it would finalise talks and unveil comprehensive results shortly.

The KDCA has said 172 billion won (S$210 million) was set aside to buy an initial 60 million doses this year, enough to vaccinate about 60 per cent of the country's population of 52 million, around the second quarter of 2021.

It has secured 20 million doses via the Covax facility, an international Covid-19 vaccine allocation platform co-led by the WHO.

Related Stories: 

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Signalling fault grounds Thomson-East Coast Line train services on Friday morning - The Straits Times

SINGAPORE -Train services on the Thomson-East Coast Line (TEL) have resumed after a five-hour long disruption on Friday morning (Dec 4).

Rail operator SMRT said on its Twitter page at 10.56am that train services between Woodlands North and Woodlands South station have commenced, and that "free regular bus and bridging bus services are still available".

Earlier at 5.43am, SMRT tweeted that no services were available on the line due to a signalling fault.

Services at the three stations on the line typically begin from about 5.40am every morning.

In an update at 7.23am, SMRT said train services between Woodlands North and Woodlands South stations remained down, and that the bus bridging services remained available.

"We apologise for the delay to your journey," SMRT added.

Together with Woodlands station, the three stations fall under stage one of the TEL, which have been open since Jan 31.

In a Facebook post on Friday morning, SMRT said its engineers are working to rectify the fault, and added that in-train and station announcements were made to inform commuters of the disruption.

Friday morning's breakdown is the second to happen this year on a new MRT line.

In October, a damaged power cable between Tuas Link and Tuas West Road stations on the East-West Line (EWL) led to a series of events that caused a major MRT disruption affecting three train lines - the EWL, North-South and Circle lines.

The two stations are part of a four-station extension to the EWL that opened in June 2017.

In September, Transport Minister Ong Ye Kung said the completion of the six stations in the second stage of the TEL will be delayed by three months to the first quarter of 2021 due to the impact of Covid-19.

They were initially scheduled to open in late 2020.

Since July 30, services between Woodlands North and Woodlands South stations have had early closures at 9pm daily and late openings at 6.30am on Saturdays and Sundays, for SMRT to "continue testing of the integrated systems and trains in preparation for the opening of stage two" of the line.

The early closures and late openings were slated to end on Aug 30, but have since been extended to Dec 31.

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Japan may ban sale of new petrol-powered vehicles in mid-2030s - CNA

TOKYO: Japan's government is considering abolishing sales of new petrol-engine cars by the mid-2030s in favour of hybrid or electric vehicles in line with a global shift from traditionally powered cars, public broadcaster NHK reported on Thursday (Dec 3).

The move would follow Prime Minister Yoshihide Suga's pledge in October for Japan to slash carbon emissions to zero on a net basis by 2050 and make the country the second G7 nation to set a deadline for phasing out petrol vehicles in a little over two weeks.

Japan's industry ministry will map out a plan by the year-end, chief government spokesman Katsunobu Kato told a news conference on Thursday.

The ministry is considering requiring all new vehicles to be electric cars including hybrid vehicles, NHK reported earlier, adding the ministry would finalise a formal target following expert-panel debates as early as the year-end.

READ: Hot in the city: Rising night temperatures a potentially major health issue in Asian metropolises​​​​​​​

In Japan, the share of electric vehicles is expected to increase to 55 per cent in 2030, Boston Consulting Group said in a report on prospects for battery-powered cars.

Globally, "the speed of expansion of the share of electric vehicles will accelerate due to the fact that battery prices are falling more rapidly than previously expected", Boston Consulting said in the report.

The United Kingdom will ban sales of new petrol and diesel-powered cars and vans from 2030, bringing forward the phase-out date by five years in what Prime Minister Boris Johnson called a "green revolution".

READ: Electric buses to serve Singapore commuters from 2020

Commentary: Singapore could be a model for cooler cities in a world heating up

Japan, China and South Korea recently announced firm targets to end net emissions of carbon, which has given momentum for companies and banks to push for cutbacks to keep global warming in check.

Policies and investments in the next few years will be crucial to setting the pathways to carbon neutrality, climate activists and energy transition strategists all agree. 

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Cold Storage recalls 'Meadows' bottled water after bacteria commonly found in faeces, soil detected - TODAYonline

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  1. Cold Storage recalls 'Meadows' bottled water after bacteria commonly found in faeces, soil detected  TODAYonline
  2. Bottled water imported by Cold Storage recalled after bacteria found in product  CNA
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Wednesday, December 2, 2020

Non-PMETs hit harder by unemployment than PMETs during COVID-19 pandemic: Manpower Ministry - CNA

SINGAPORE: Non-professionals, managers, executives and technicians (PMETs) experienced a higher jobless rate compared to PMETs, as industries more affected by COVID-19 had a greater concentration of non-PMETs, latest data from the Ministry of Manpower (MOM) showed. 

Resident unemployment rate among non-PMETs increased by 1.7 percentage points from 4.7 per cent in June 2019 to 6.4 per cent in June 2020. 

Among their professional counterparts, that rate increased by only 0.6 percentage points from 2.9 per cent to 3.5 per cent in the same period, according to MOM’s 2020 Labour Force in Singapore Advance Release report published on Thursday (Dec 3). 

However, MOM said those figures were still below what was seen during the SARS outbreak and global financial crisis. In 2004, unemployment was at 6.7 per cent and 4.1 per cent for non-PMETs and PMETs respectively, and 6.9 per cent and 3.9 per cent in 2009. 

Industries more badly impacted by COVID-19 faced more job cutbacks. In front-facing sectors like accommodation, retail trade, and food & beverages services, the unemployment rate rose by 5 percentage points, 2.2 percentage points, and 1.8 percentage points respectively. 

Among non-PMETs, unemployment rates rose steeply across all age groups. 

And while the increase in the unemployment rate among PMETs was relatively narrower, older executives aged 50 and above saw a spike in unemployment - from 3.2 per cent in June last year to 4.3 per cent in June this year. 

The report said that unemployment among both groups were largely due to short-term joblessness, as long-term unemployment (25 weeks or more) grew at a smaller rate. 

The share of PMETs in the resident workforce continued to increase, from 58.4 per cent in 2019 to 59.9 per cent this year, as sectors with more PMETs faced fewer COVID-19 headwinds. 

Non-PMET employment also fell, from 41.6 per cent to 40.2 per cent year-on-year, as it was pulled down by sectors more severely impacted by COVID-19 that tend to hire more non-PMETs. 

This year, more of them were also in casual or on-call employment terms instead of permanent and fixed contract terms, owing to greater demand for delivery, e-commerce and security services, the report said. 

SMALLER PAYCHECKS 

Real median income growth among full-time employed residents contracted by 0.3 per cent, after growing by 2.2 per cent in 2019. 

The nominal median income - unadjusted for inflation - of full-time employed residents dipped from S$4,563 in 2019 to S$4,534 in 2020. 

Income at the 20th percentile suffered greater losses, as real income growth contracted by 4.5 per cent. The nominal income slid from S$2,457 to S$2,340. 

MOM said industries that were more severely impacted by COVID-19 have a high concentration of lower-income earners. 

Incomes of lower-income self-employed workers such as taxi and private-hire car drivers, and hawkers were also hurt by the plunge in tourist arrivals, work-from-home arrangements, and hiatus in dine-in services during the 'circuit breaker'. 

However, MOM said that after including Workfare payouts - income supplements for low-wage workers - the 20th percentile income level in 2020, at S$2,449, is similar to 2019’s level of S$2,457. 

Real income growth at the median and 20th percentile went up by 2.7 per cent and 2.9 per cent respectively. 

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Govt raises modestly supply of land for private homes; one-north, Lentor Central among new sites - The Straits Times

SINGAPORE - The supply of private residential housing from confirmed sites under the government land sales (GLS) programme for the first half of next year has been modestly increased after being sharply reduced in the second half of this year due to the impact of the Covid-19 pandemic.

The private home supply of 1,605 units from four confirmed list sites is 235 units or about 17 per cent more than the 1,370 units from such sites under the second half of the 2020 GLS programme, according to the figures released by the Ministry of National Development (MND) on Thursday (Dec 3).

It is still below the 1,775 units from such sites under the first half of the 2020 GLS programme.

The confirmed list includes one executive condominium (EC) site which can yield about 590 units. The other three sites also offer up 9,200 sq m gross floor area (GFA) of commercial space.

On the reserve list are five private residential sites (including one EC site), three white sites and one hotel site. These sites can yield about 5,440 private residential units (including 700 EC units), 92,000 sq m GFA of commercial space and 1,070 hotel rooms.

A total number of 7,045 private homes can thus be potentially developed on the confirmed and reserve list sites. This is 5.6 per cent more than the 6,670 units under the GLS programme for the second half of this year.

The land supply was "carefully calibrated to take into account the Covid-19 and macroeconomic situation", said the MND.

"Given the continued uncertainties in economic and labour market conditions, the Government has decided to maintain a moderate supply of private residential units on the confirmed list.

Mr Ong Teck Hui, senior director of research & consultancy at JLL noted that the sites on the confirmed list are expected to yield 1,015 private homes excluding ECs. That’s about 34 per cent more than the 755 units released for the second half of  this year and the first increase in private home supply after five straight cuts in previous GLS confirmed lists. 

“In absolute terms, the increase in supply is not significant as the government is still concerned about uncertainties in economic and labour market conditions,” he said.

Despite the calibrated supply, there are still choice sites on offer in both the confirmed and reserve lists to prevent the market from overheating, Mr Desmond Sim, head of research, Southeast Asia, CBRE, noted.

The confirmed list for the first half of 2021 comprises three private residential sites at Lentor Central and Slim Barracks Rise as well as one EC site at Tampines Street 62.

“The increase in residential units introduced will help to provide a much-needed boost for developers to shore up their land inventory, given that supply from previous GLS sites has been relatively limited. 

“With healthy demand from new and resale markets, coupled with the declining unsold stock, these sites are likely to attract healthy bidding activity, as evidenced by the tenders of the previous two GLS sites (Tanah Merah Kechil Link and Yishun Ave 9),” Mr Sim noted.

“Of the four sites, three have commercial components, which could boost vibrancy in the new estates. The Slim Barracks Rise sites could be especially appealing to developers, as they are situated near a transport node, surrounded by the one-north biomedical hub,” he said. 

The two Slim Barracks Rise sites are located in the one-north technology enclave, within walking distance of Buona Vista and one-north stations. The sites aim to inject more residential spaces in one-north estate, with parcel A generating 265 units and parcel B, 140 units. Both sites are small and could attract many bidders due to their lower total development costs, Mr Ong said.

The Lentor Central parcel is located next to the upcoming Lentor MRT and can yield 610 private homes and 8,000 sqm of commercial space. The Tampines EC site can yield about 590 EC units and could be in fair demand due to moderate supply of new EC projects in the pipeline, he added. 

“As many developers will likely be unsuccessful in bidding for the limited number of GLS sites, more are expected to consider sites offered under collective sales as the healthy momentum in private home sales grows,” Mr Ong said.

Mr Ong cited the enbloc sale of the Haig Road properties for $32.8 million for redevelopment and those of adjoining projects Fairhaven and Sophia Ville for $62 million. 

“The conservative residential supply under the GLS is likely to revive interest in the collective sales market, but not to the extent of the fervour seen in 2017 and 2018,” he noted.

MND said that there is a good selection of sites with additional supply in the Reserve List that developers can initiate for development if they assess that there is demand.”

As with the second half of this year, no new sites for predominantly commercial or hotel use will be launched for sale in the first half of 2021.

A total of five residential sites, three white sites and one hotel site was carried over to the first half of next year.

The GLS private housing supply from confirmed list sites in the second half of this year was cut by 23 per cent to the lowest since the second half of 2009, during the global financial crisis when no confirmed list sites were released.

But the Singapore private housing market has remained resilient despite the economic downturn. Private home prices edged up 0.1 per cent in the first nine months this year compared with 2.1 per cent growth last year, and minus 5.2 per cent during the global financial crisis. New home sales from project launches were up for five straight months this year, while developers have been actively, if cautiously, bidding for GLS sites.

"The increase in supply is a response to healthy demand in the market," said Mr Lee Sze Teck, research director at property agency Huttons Asia.

"Perhaps, cognisant that the effects of the pandemic may continued to be felt in the next few quarters, the land supply has not been bumped up more," he added.

He also noted signs of more activity in the property market: The number of uncompleted unsold units has declined since the first quarter of 2019 to 26,483 units, the recent GLS tender  saw a large number of bidders and the en-bloc market witnessed two collective sales in the span of two weeks.

MND on Thursday said the Government will continue to monitor economic and property market conditions closely and "adjust the supply of future GLS programmes, as necessary".

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DBS, StanChart to further cut rates on savings accounts - The Straits Times

DBS Bank and Standard Chartered will further cut already-low interest rates on their savings accounts from next year.

Singapore's largest lender DBS will cut rates on its flagship deposit account DBS Multiplier, which offers customers tiered interest rates on account balances. Interest rates are higher if customers transact in larger amounts with DBS, or if they spend in eligible categories such as credit card spending and investments.

From Jan 1, rates will be slashed by up to 0.7 percentage point when customers credit an income stream - defined as salary, dividends, or both - to their Multiplier account and transact in one eligible category.

For example, if a customer credits an income stream and transacts in one category with a total value of at least $30,000, the interest earned on the first $25,000 in the account will be 0.6 per cent per annum, down from the current 1.3 per cent.

Rates will be cut by up to 1 percentage point for spending in two categories, and up to 0.8 percentage point for spending in three or more categories.

Customers can go to https://bit.ly/3fXCKiN for details.

This will be the third cut to the bank's Multiplier interest rates since May, as interest rates tumbled globally.

Likewise, StanChart will cut its interest rate for JumpStart - a savings account for young people between 18 and 26.

From Jan 1, the interest rate on the first $20,000 will be 0.4 per cent per annum, down from 1 per cent. The rate on balances above $20,000 is still 0.1 per cent.

The bank halved rates in July.

Other banks have also cut their rates in recent months.

OCBC Bank made changes to the interest rates on its 360 savings account in October, in its third cut since May. The Straits Times understands the bank does not currently plan to further cut these rates.

United Overseas Bank cut interest rates on the UOB One account last month. Ms Jacquelyn Tan, head of group personal financial services at UOB, said the bank regularly reviews interest rates to ensure they remain competitive and to reflect market conditions.

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Government maintains 'moderate supply' of land for private housing; new sites at one-north, Tampines Street 62 - CNA

SINGAPORE: The Government released on Thursday (Dec 3) the Government Land Sales (GLS) programme for the first half of 2021, with sites capable of yielding about 7,045 private residential units, 101,200 sq m of gross floor area of commercial space and 1,070 hotel rooms available.

Four sites in this GLS programme are new: Two parcels at Slim Barracks Rise in one-north are on the Confirmed List, while one at Jalan Tembusu, off Mountbatten Road, and another at Tampines Street 62 are on the Reserve List.

The other nine sites - made up of five residential sites, three mixed-use White sites and one hotel site - have been carried over from the Reserve List in the second half of this year.

Planned and announced every six months, GLS programmes release state land for private development. 

This GLS programme comprises a total of 13 sites, of which four are on the Confirmed List and nine are on the Reserve List.

Land on the Confirmed List is launched for sale at pre-determined dates, with most land parcels sold through tenders.

Land on the Reserve List, meanwhile, is not released for tender immediately, but is made available for application. A Reserve List site is put up for tender when a developer indicates a minimum price which is accepted by the government.

READ: Singapore’s property market is drawing expats from Hong Kong

READ: Commentary: Concerned about what fall in private home sales mean? Market fundamentals paint a different story

"MODERATE SUPPLY"

In a media release, the Ministry of National Development (MND), highlighted the impact of the COVID-19 pandemic on this GLS programme.

"The land supply from the 1H2021 GLS Programme has been carefully calibrated to take into account the COVID-19 and macroeconomic situation," the ministry said.

"Given the continued uncertainties in economic and labour market conditions, the Government has decided to maintain a moderate supply of private residential units on the Confirmed List and will not introduce any new sites for predominantly commercial or hotel use in the 1H2021 GLS Programme.

"Nonetheless, there is a good selection of sites with additional supply in the Reserve List that developers can initiate for development if they assess that there is demand."

Government Land Sales (GLS) 1H2021
(Table: Ministry of National Development)

The Slim Barracks Rise sites will be launched for tender in June while the other two sites on the Confirmed List - an additional parcel on Tampines Street 62 and land on Lentor Central - will be launched in April.

The two sites at Slim Barracks Rise, in the one-north area, caught the attention of one analyst.

"Housing demand for the sites might be generated by the growing working population in the vicinity. Parcel A can generate an estimated 265 units and Parcel B can yield some 140 units," said Mr Ong Teck Hui, senior director of research & consultancy at JLL.

"Both sites are relatively small and could attract many bidders due to their lower total development costs which reduce risk."

The Reserve List sites at Jalan Tembusu and Tampines Street 62 will be available from May while the other sites on the list - including a White site on Marina View and a hotel site on River Valley Road - are currently available.

All three sites on the Confirmed List from the GLS programme for the second half of 2020 have been launched for tender. Tenders for the sites - on Ang Mo Kio Avenue 1, Northumberland Road and Tengah Garden Walk - will close in April and May next year.

The Tampines Street 62 parcel on the Confirmed List for this GLS programme was previously on the Reserve List. Both Tampines parcels are earmarked for executive condominiums.

"The Government will continue to monitor economic and property market conditions closely and adjust the supply of future GLS Programmes, as necessary," MND said.

"The private housing supply in the 1H2021 GLS Programme, together with the supply of units already in the pipeline, will sufficiently cater to the housing needs of the population when completed in about four to five years’ time."

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From record sales to government probe, 2020 an eventful year for Malaysia's Top Glove - CNA

KUALA LUMPUR: It has been an eventful year for Top Glove Corporation Bhd, which has gone from making record profits, brought about by the demands of the pandemic, to being the biggest contributor of COVID-19 cases in Malaysia. 

And to make matters worse, the Malaysian government announced on Tuesday (Dec 1) that it had opened 19 investigation papers into six subsidiaries of the company over offences involving workers' dormitories. 

This marks what could be regarded as a dip in the fortunes of the world's largest surgical glove maker, now also a manufacturer of the essential face mask. 

Top Glove was established by Dr Lim Wee Chai and his wife Tong Siew Bee in 1991 with one factory and one glove production line. The company was listed on Bursa Malaysia in 2001 and later obtained dual listing on SGX in 2016. 

Today, it has manufacturing operations in Malaysia, Thailand, Vietnam and China, exporting to 195 countries. It has around 21,000 employees, operates 750 production lines worldwide and holds 26 per cent of global market share for rubber gloves.

Prime Minister Muhyiddin Yassin, when speaking on Apr 25 on the economic impact caused by the enforcement of the Movement Control Order (MCO), said the country lost RM2.4 billion (US$550 million) in economic revenue every single day the MCO was enforced.

READ:Malaysia's Top Glove quarterly profit soars on virus-driven demand

"UNPARALLELED GROWTH IN SALES VOLUME"

However, for Top Glove, being the leading manufacturer of an essential product used by frontliners meant there was a sudden spike in demand.

Dr Lim told CNA in February that some Top Glove factories were having worker shortage issues, especially in the packing section. The temporary solution was to outsource the packing process to meet the demand, he said at that time.

READ: Malaysia's hand sanitiser, rubber glove manufacturers in overdrive as demand spikes over COVID-19 fears

In early June, Dr Lim was quoted as saying by the Edge that the company's production utilisation had increased from 85 per cent to nearly 100 per cent in order to meet the soaring demand. 

FILE PHOTO: A worker inspects gloves at a Top Glove factory outside Kuala Lumpur
FILE PHOTO: A worker inspects gloves at a Top Glove factory in Klang outside Kuala Lumpur January 11, 2010. REUTERS/Bazuki Muhammad/File Photo

The company also said in a statement then that its share price at the Malaysian stock exchange surged by more than 255 per cent this year alone.

On Jun 11, the company in its financial report indicated that there was 366 per cent year-over-year jump in net profit to RM347.9 million (US$85.31million) in the quarter which ended in May.

This leap was almost equivalent to the full-year income of the company the year before (RM367.5 million).

Top Glove said that the immense growth in revenue was to be attributed to the “unparalleled growth in sales volume” which the glove maker shared had increased by about 180 per cent monthly.

On the same day, executive director Lim Cheong Guan reportedly said that there was a surge in demand for gloves “from virtually every country in the world” as a result of the coronavirus pandemic, pushing Top Glove’s quarterly earnings to a record high.

He said “the best is yet to come” and explained that many customers had made advance orders as early as a year ahead for fear of missing out.

Virus Outbreak Malaysia Top Glove
Workers walk out from a Top Glove factory in Shah Alam, Malaysia, Wednesday, Malaysia on Nov 25, 2020. (Photo: AP/Vincent Thian)

When interviewed by CNA in July, Dr Lim said all Top Glove factories were running at almost full capacity. He also said that he wanted to add up to 10 more factories over the next two years. 

This was a higher target than the usual one or two factories a year, he said. 

The company's production capacity at the time was 75 billion pieces of gloves a year and by 2021, this would be increased to close to 100 billion, said Dr Lim.

In September, the glove maker posted its highest ever net profit of RM1.29 billion for the quarter ended Aug 31. Revenue jumped by 116 per cent year-on-year to RM3.11 billion.

Following the tabling of the 2021 Budget on Nov 6, Top Glove confirmed that it would be giving RM185 million to the government as a contribution to help the country battle the pandemic.

Top Glove products are pictured on display at its headquarters in Shah Alam
Top Glove products are pictured on display at its headquarters in Shah Alam, Malaysia August 11, 2020. REUTERS/Lim Huey Teng

US BARS TOP GLOVE IMPORTS

Top Glove was thrust into the spotlight internationally on Jul 15 when the US Customs and Border Protection (CBP) slapped a ban on imports from two of its subsidiaries over forced labour concerns. 

The North American market accounts for about 27 per cent of Top Glove’s total exports last year.

The company reportedly submitted a petition to the CBP to prove that it did not use forced labour, but the CBP responded by identifying additional information needs.

Top Glove’s initial timeline was to resolve the issue by end-August. However, the ban imposed by the CBP has yet to be lifted. 

Lim Wee Chai glove Malaysia
Malaysian firm Top Glove founder Lim Wee Chai tells CNA that 2020 is going to be a record year for the company.

Speaking to reporters in Parliament on Aug 5, Dr Lim said Top Glove was trying to find a solution to the forced labour allegations and had to explain the matter to CBP. 

"We should be able to solve the issue within this month," he was quoted as saying by the Edge. 

Dr Lim claimed that old issues surrounding the allegations arose lately due to the work of an activist known as Andy Hall, who intended to "sabotage" the group.  

"He (Hall) said bad things about the company and the industry," he said. 

Dr Lim said Top Glove had in the past permitted its workers to work overtime because they wanted to work longer hours. 

He also claimed that the foreign workers' passports were retained for "safekeeping" and that the company had already returned the documents to them more than a year ago.

In early October, Top Glove said it had raised remediation payments to migrant workers for recruitment fees to RM136 million.

The Malaysian Human Resources Ministry said it had met with the Malaysian Rubber Glove Manufacturers Association and other rubber manufacturing companies to discuss the US ban, and set up a task force to ensure policy compliance, including when hiring foreign workers.

"(The ministry) does not condone and tolerate any act of forced labour as well as compromise towards non-compliance of any practice amounting to forced labour," it said.

READ: Malaysia's Top Glove says COVID-19 outbreak may push prices up after shutting factories

VICTIM OF THE PANDEMIC

From initially benefitting from the surge in demand for medical supplies, Top Glove has now become a victim of the pandemic like many other companies, with its dormitories identified as an epicentre of infections.

A third wave of infections has hit the country, with some states and districts returning to a conditional MCO. There are now more than 68,000 cases nationwide.

As of Dec 2, the Teratai cluster has a total 5,083 cases. It has been found that the majority of those affected by the cluster were foreign workers working for Top Glove.

Considering the situation, the government on Nov 17 imposed two weeks of enhanced MCO (EMCO) at Top Glove worker dormitories in Meru, Klang.

Top Glove Klang dormitories
A hardware shop near Top Glove dormitories in Klang has put up notices barring anyone from entering the premises. (Photo: Vincent Tan) 

READ: Businesses and residents near Top Glove dormitories on edge, as COVID-19 cases spike among workers

Following the detection of the cluster, the government said on Nov 23 that 28 of Top Glove's factories in Klang would be closed in stages to facilitate COVID-19 screening. 

On the back of the news, Top Glove's shares fell as much as 7.48 per cent the next morning.

On Nov 30, Senior Minister Ismail Sabri Yaakob announced that the EMCO would have to be extended for a further 14 days until Dec 14.

In a press conference, Mr Ismail Sabri said the decision to extend the EMCO was made due to the persistently high rate of positive COVID-19 cases among the workers there.

"The risk assessment by the Ministry of Health found that the positive rate in this area is still high where there are still new positive cases detected among employees through the second screening tests.

"Besides that, the ministry found that the negative cases in this cluster are still at risk and a second screening test is underway," he said.

Mr Ismail Sabri said all Top Glove workers involved in the cluster will be issued Home Surveillance Order (HSO) for 14 days. Workers will also wear wristbands for surveillance, have daily health checks and undergo a repeat COVID-19 test on the 13th day of their HSO.

He added that those required to be under quarantine will not be allowed to work until their screening test results come out negative and the HSO release given.

All costs for the workers' COVID-19 screening, quarantine facilities and related food, transport and accommodation will be borne by Top Glove.

Top Glove workers wait in line to be tested for the coronavirus disease (COVID-19) outside a hostel
Top Glove workers wait in line to be tested for the coronavirus disease (COVID-19) outside a hostel under enhanced lockdown in Klang, Malaysia November 18, 2020. Picture taken November 18, 2020. REUTERS/Lim Huey Teng

INVESTIGATION PAPERS OPENED OVER WORKERS' HOUSING

The government had initially defended Top Glove's track record.

Following the CBP ban, Human Resource Minister M Saravanan reportedly said on Jul 21 that much of the reported information was “exaggerated”. 

“I instructed the Labour Department to investigate and it was found most of the accusations are baseless. There are some shortcomings which can be resolved, such as accommodation, but it’s not as bad as they say," he said.

However, The Star later quoted Mr Saravanan as saying on Nov 25 that checks on the Top Glove factories in Klang revealed “deplorable” conditions at the workers’ housing.

“I have visited the hostels and the conditions are terrible. My officers were ordered to go in full force as this is a big, vulnerable migrant workers colony. If we don’t act, this cluster might get out of control.

“The Labour Department will ensure the employers are held responsible for worker conditions and dire action will be taken according to the law,” the minister said.

READ: COVID-19 - Malaysian government opens investigations into Top Glove over workers' housing

FILE PHOTO: Top Glove workers wait for food distribution outside a hostel under enhanced lockdown i
FILE PHOTO: Top Glove workers wait for food distribution outside a hostel under enhanced lockdown in Klang, Malaysia on Nov 17, 2020. (Photo: Reuters/Lim Huey Teng)

On Tuesday, the Malaysian government said it had opened 19 investigation papers into six subsidiaries of Top Glove over offences involving workers’ dormitories. 

This followed simultaneous enforcement operations carried out by the Peninsular Malaysia Labour Department (JTKSM), an agency under the Human Resources Ministry last Thursday. 

“The main offence was that the employers failed to apply for accommodation certification from the Labour Department under Section 24D of the Workers’ Minimum Standards of Housing and Amenities Act 1990,” JTKSM director-general Asri Ab Rahman said on Tuesday.

This had led to other offences including congested accommodations and dormitories, which were uncomfortable and poorly ventilated, he added. 

In addition, the buildings used to accommodate the workers did not comply with local authorities’ by-laws. 

“JTKSM will take the next step to refer the investigation papers already opened, to the Deputy Public Prosecutor so that all these offences can be investigated under the Act,” Mr Asri said.

Each violation under the Act carries an RM50,000 fine as well as potential jail time.

In a statement on Tuesday, Top Glove noted the government had said earlier that errant employers would not be fined under amendments to the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446), as the enforcement of the act was still in its early stages.

“Top Glove wishes to clarify that efforts to source for more accommodation and to improve existing worker accommodations are ongoing in view of the large number of workers we employ,” it said.

“We expect to complete the exercise of improving workers’ accommodation around Dec 31, 2020. This is in line with the government’s educational approach on employers in various sectors until the end of this year, so that they can comply with Act 446.”

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