By Fiona Lam

Singapore

BANKS are going further upstream ina bid to grow the local talent pipelineand develop homegrown financialleaders.

First-year university undergradu-ates, polytechnic graduates and evenstudents from the junior colleges andInstitute of Technical Education (ITE)are among the new targets of localand foreign lenders hungry for staffin Singapore.

Their efforts to proactively in-creasetheSingaporeanbasecomesaf-ter the Monetary Authority of Singa-pore (MAS) engaged the top leader-ship of key financial institutions onthe need to build a stronger localcore.

To do so, many lenders have wid-ened the net to polytechnic students.

MAS will extend a SkillsFuture pro-gramme aimed at helping polytech-nic graduates secure employment inthe financial sector, Tharman Shan-mugaratnam, Deputy Prime Ministerand Minister for Finance, said thismonth. He noted that major bankshere have committed to provide atleast 200 places for polytechnic grad-uates in the coming year through thisinitiative.

Local banks already havelong-standing tie-ups with polytech-

nics. OCBC takes in 450 polytechnicinterns each year and has a Polytech-nic Trainee Bank Officer Scheme. InJanuary, DBS also started its Serviceand Operations Executive Pro-gramme, a two-year scheme on con-sumer banking operations for poly-technic graduates.

Foreign banks are catching on tothe strategy, too.

Under Barclays’ new apprentice-ship scheme, young diploma holdersjoin teams as diverse as finance, hu-man resources and technology.

Most recently, JPMorgan launchedits one-year apprenticeship for poly-technic graduates, welcoming its firstintake of 14 in April. Apprentices willtake on full-time roles, particularly inoperations,andtechnologyandcyber-security, said Phillip de Josselin,JPMorgan’s chief administrative offi-cer for Asean.

Citibank has been offering intern-shipsforpolytechnicstudents,partic-ipating intheircareer fairs,andcoach-ingthemonresume writingand inter-view skills. Several other foreignbanks such as Standard Charteredareexploringsimilar initiativesunder theSkillsFuture drive.

At the same time, the Institute ofBanking and Finance (IBF) is develop-ing programmes with universitiesand polytechnics to equip studentswith job-ready skills.

One lender is also looking to ITEfor staff besides polytechnics. Lastyear, Maybank piloted its five-monthindustrial attachment programme forstudents in the NITEC Business Ser-vices stream to work as service am-bassadors at its branches.

While universities have long beenthe recruitment hunting ground,somelendershavedeepenedtheiren-gagement with them.

In2013,Citibankrolledout twoini-tiatives for undergraduates: the CitiMentorship Programme and the CitiBanking 101 Foundational Pro-gramme, benefiting close to 600 stu-dents.

Since 2012, Maybank has held theGO Ahead Challenge, its annual inter-national case competition for under-graduates and fresh graduates, toidentify and nurture young talent.

Banks are also turning to youngerstudents, apart from fresh graduatesand final-year undergraduates.

In June, UBS unveiled its Youth Fi-nanceAcademyto introducepre-terti-ary students to banking and finance,with an intake of 50 students from 18junior colleges and polytechnics. UBSalso launched a 12-month IndustrialPlacement Programme in 2014 for pe-nultimate-year undergraduates.

JPMorgan formed four dedicatedschool teams lastyear toorganiseout-

reach activities at Nanyang Techno-logicalUniversity (NTU),NationalUni-versity of Singapore (NUS), SingaporeManagement University (SMU), andtheSingaporeUniversity ofTechnolo-gy and Design (SUTD).

Through the teams, JPMorganreaches out to undergraduates at alllevels. “It’s building a relationshipwith not just the graduating studentsbut also the first and second-year stu-dents, to have them start getting toknow JPMorgan before they eventhink about looking for a job,” saidChew Ying Ying, JPMorgan’s head ofcampus recruitment for Asia.

Deutsche Bank also engagesfirst-year students with its DB Acade-my introductory programme startedin 2012.

Another move is wooing overseasSingaporeans back home.

Standard Chartered engages exter-nal recruitment partners to look outfor Singaporeans working abroad andseeking to come home. DeutscheBank also has a similar outreach pro-gramme.

According to Neil Clark, directoroffinancejobsiteeFinancialCareers,hir-ingmanagershereareshowingapref-erencefor localmanpower. “This isbe-cause localcandidateshaveasolidun-derstanding of the operating environ-ment and business culture, and are

lower-risk hires in the long term,” MrClark said.

In particular, JPMorgan ChaseBank is targeting toadd 600moreem-ployees to its current 3,000 in Singa-pore in the next 12-18 months, andwherever possible, it prefers to hireSingaporecitizensandpermanentres-idents (PRs), said Mr de Josselin.

Theresa Phua, Singapore head ofhuman resources at DBS, said home-grownstaff alsohaveawidernetworkand connect better with local clients.DBS has been recently focusing on lo-cal manpower, and rolled out threetalent development programmes twoyearsago. HeadcountatDBShasrisenmore than 10 per cent since 2013.

At Credit Suisse, the proportion ofSingaporean staff has grown steadilyover thepast threeyears, said LitoCa-macho, the bank’s vice-chairman forAsia Pacific. More than 70 per cent ofits employees here are Singaporeansand PRs.

ANZ Singapore introduced in 2013an internship programme in partner-ship with local universities and a tal-ent development programme with astrong focus on Singaporeans.

Despite the greater focus on localmanpower, however, job fit and rele-vant experience remain a priority;banks still turn to overseas hireswhen a specialised skill cannot besourced locally.

To help Singaporeans develop inspecialist tracks such as quantitativefinance, risk management, and finan-cial technology, MAS has set asidemore scholarships under the expand-ed Financial Scholarship Programme.

Banks are also amping up effortsto upgrade employees’ skills andgroom Singaporeans for leadershiproles.

In June, UOB launched theindustry’s first tertiary educationpro-gramme for small business bankers,in partnership with SMU. Last year,Credit Suisse opened its wealth insti-tute in Singapore to boost the localpool of wealth management profes-sionals and financial services leaders,while OCBC’s Smart Asia Programmewas introduced for senior leaders tohone their agility in managing Asianmarkets’ complexities.

Under SkillsFuture, MAS is work-ing with the Institute of Banking & Fi-nance (IBF), the industry, institutes ofhigher learning and training provid-ers to build a strong Singaporean tal-ent pipeline for the sector and comeup with learning options for existingprofessionals.

The Association of Banks in Singa-pore isalsocollaboratingwiththereg-ulator to identify gaps in the types ofskill sets required, so as to comple-ment existing training programmes.

By Jacquelyn Cheok

jaccheok@sph.com.sg@JacCheokBT

Singapore

WHILE Facebook or LinkedIn may

now be the go-to platform to chroni-

cle all of our favourite personal sto-

ries – an engagement, the birth of a

child, the memory of a grandparent,

or the celebration of a business

achievement – The Guild of Storytell-

ers (GoS), a local startup, wants to

buck this social media trend.

Founded last December by Singa-

porean Jason Ho, GoS wants to cast

these memories in stone – literally. It

designs and makes bespoke jewellery

– from rings and pendants to sceptres

and even crowns – to tell a story.

“Memories are precious, and I

wouldlike tousesomethingmore tan-

gible to remember our stories,” the

34-year-old founder told The Business

Times.

“Think of it as a modern heirloom

made of the world’s most precious

stone and metal – diamond and gold –

that will retain our most precious and

timeless memories, and which is also

inflation proof,” said Mr Ho.

Thebusinessconsultant turnedac-

credited, professional jeweller had

conceptualised GoS while studying

for a Postgraduate Diploma in Entre-

preneurship at the University of Cam-

bridge Judge Business School in

2014.

Today, GoS collaborates with 15

jewellery designers – each with a dis-

tinct style and cultural background –

from Europe and the US, as well as

three veteran craftsmen and several

diamond cutting plants in Gujarat, In-

dia. This, while it hosts customers

from a penthouse-level showroom at

Suntec City, Singapore.

Thefinalmasterpiece, thecustomi-

sation of which will take some 12

weeks, will be collected on board one

of the startup's threeprivate yachtsat

Sentosa Cove on which customers

can spend half a day thereafter.

Notably, customers must have

been referred to GoS and have a per-

sonal story to share.

SaidMrHo: “Theyshouldnotcome

tous to justbuytop-quality jewellery.

We're providing a once-in-a-lifetime,

three-month experience to co-design

and produce your bespoke jewellery

from scratch. We accept requests for

a wide range of challenging jewellery

designs as long as they tell every de-

tail of a story.”

Globally, the bespoke jewellery

market, while not new, is largely frag-

mented, noted Mr Ho. “In Europe, a

jewellery designer can design but

lacks experience in crafting. In Asia, agoldsmith or craftsman can craft, butlacksthe creativityneededfordesign.Globally, there is a lack of reliablechannels to source the bestdiamondsand gemstones.”

He said: “Everything in one houseisour answer to the currentgap in theindustry.”

The startup, which Mr Ho himselffunded, is now in the midst of speak-ing with prospective customers fromthe region. Prices begin at S$40,000for a one-carat piece.

Last December, GoS was featuredinCambridge's 10th anniversary cele-bration of its Center of Entrepreneuri-al Learning, and is believed to be theonly Singaporean and Chinese nameamong 18 enterprises.

Other bespoke jewellers in Singa-pore include Facets Singapore,Joanne L. and The Jewel Box, which,like GoS, were conceived to servicewhat they say is an increasingly dis-cerning and sophisticated clientele.

By Rob Curranbtworld@sph.com.sg

IT FEELS like the week Lehman Broth-ers died. This time, it’s Greece whosefinancial fate hangs in the balance inweekend talks, and a similar panicthreatens to wash through markets ifthe nation crashes out of the euro-zone.

Markets awoke last week to a clari-on “oxy” (“no”) from the Greek elector-ate, a message that one strategist saidwas akin to giving “the finger” to theeurozone.

Then there was the massive gov-ernment intervention in the Chinesestock market – halting thousands ofstocks and establishing stock-buyingsovereign funds to pump up the mar-ket. If Beijing’s sledgehammer ap-proach was intended to inspire confi-dence, it initially did the exact oppo-site. Analysts said the movessmacked of desperation and evokedthe last time a government leapt tothe defence of a stock market inflatedon borrowed money – the Wall Streetcrash of 1929.

After wavering on Monday andTuesday, the Shanghai Compositesuccumbed,withanother 5.9per centretreat on Wednesday.

In the US, there was a rapid succes-sion of eerie technological failuresthat seemed much more than coinci-dence. First, United Airlines ground-ed itsentireUS fleetbecauseofacom-puter glitch. Shortly thereafter, theWall Street Journal’s website wentdown. And then, the real harbinger ofdoom struck, as trading was haltedon the New York Stock Exchange(NYSE) and its electronic affiliate forfour hours.

A couple of decades ago, the NYSEwas the US stock market and most in-vestors still think of the institution asatempleofcapitalism. Intheelectron-

ic stock-trading age, however, stocksthat are technically listed on the NYSEalso trade on the Nasdaq and on doz-ens of other electronic exchanges andanonymous “dark pools”.

“We can still trade these electroni-cally,” said Joe Kinahan, chief deriva-tives strategist at TD Ameritrade, anda veteran of several market shocks inthe Chicago options-trading pit. Thisone, he said, was a breeze.

Still, the Chinese selloff spilledovertotheUSstockmarket.Beforeop-timism about a Greek deal welled upon Thursday, the Dow Jones Industri-al Average was closer to its 2015 lowthan it was to the May peak.

Eric Marshall, portfolio managerfor mutual-fund firm Hodges Capitalin Dallas, said the US stock marketwas overdue for a break. It’s beenmore than two years since the last 10per cent correction, he noted, some-thingwhich suggests that complacen-cy and stock values are out of kilterwith earnings prospects.

Unrealistic valuations are at theheart of China’s stock crisis. Even af-ter last week’s shakeout, many of thesmallerChinesestocksareworthhun-dreds of times their per-share earn-ings. The prices of such stocks – andAmerican counterparts in speculativeniches such as biotechnology – willhave to come down further at somestage.Asever inthestockmarket, tim-ing is the major unknown.

Intheeurozone,complacency isal-so a danger. Markets rose late lastweek because Greek Prime MinisterAlexis Tsipras appeared to havepulled off a curious gambit. After sav-ing face at home by thumbing hisnose at German Chancellor AngelaMerkel andthe restofEuropewith thesurprise referendum, he produced aproposal almost identical to that thecreditors had offered all along.

Mrs Merkel was not amused; over

theweekend,GermanandFinnishdel-egations to Europe said Greece couldnot be trusted. “Grexit” is still a possi-bility as Germany has a decisive votein the European agencies that mustapprove the Greek proposal. One bro-kerage warned that the market hasconsistently underestimated the dan-gers of a Greek exit and of the possi-ble contagion in markets.

Another money manager said hewouldn’t let Greece affect his invest-ment decisions one way or the other.“There are very few US stocks I wouldbuy or sell today based on what is go-ing on in Greece,” said Mr Marshall ofHodges Capital. “If you had told me:‘This is what’s going to happen overthe next six weeks in Greece’, I don’tknow that would change my outlooka whole lot.”

Such was the distress over China,Greece and the NYSE’s glitch that in-vestorsallbut forgotaboutAlcoa’s rel-atively optimistic opening to earn-ings season. Oil futures had their big-gestdrop in months, partly because itlooked as if a deal might be struck be-tween Iran and the West in Vienna –but nobody noticed that either.

This Tuesday’s retail sales reportand earnings from major banks couldreceive more attention this week.Traders will continue to watch inter-national crises but they will do sothrough the prism of the US centralbank. The big question now is whe-ther the Federal Reserve considersthe chaos in Asia and Europe cause topostpone rate hikes to 2016. Fedchair Janet Yellen may hint at the an-swer midweek.

“If we have Chinese markets calmand Greece is calm in essence youhave a purer view of the US, in termsof data in terms of earning, and mostimportant Janet Yellen’s testimony inCongress,” said Quincy Krosby, mar-ket strategist at Prudential Financial.

☛ Continued from Page 1

Theremaining45percentstake iscol-

lectively owned by Houston-based

Arovin (10.5 per cent), Swiss trader

Glencore, Indonesia’s Sridjaja

family’s Shefford Investments (9.5

per cent), Singapore’s Economic De-

velopmentBoard (5per cent), Thai KK

Industry Co, and India’s Essar Group.

Oil major BP is the provider of

JAC’s subordinated debt facility, as

well as its supplier and offtaker. In

April 2011, 10 banks also took part in

aUS$1.56billion debt financingpack-

age launched by the company.

Not all of JAC’s investors are con-

vinced of the proposal’s viability.

Some partners may be facing financ-

ing issues and are reluctant to take

part in the business risks of running

JAC, said IHS’s Mr Pujari.

SK Group has another jointly

owned paraxylene unit in South Ko-

rea to consider in its decision to re-

start JAC. BT also understands that

the whereabouts of Jiangsu Sanfangx-

iang Group’s CEO are unknown after

ananti-corruptionclampdown,which

adds further uncertainty to the deci-

sion-making process. But financial in-

vestors may have no option but to try

and run the asset. Said Mr Pujari: “The

onlyother option is to sell off their in-

vestment, but there would not be any

taker for it as long as JAC is shut.”

“Ithasbeenalmostayearsinceclo-

sure. If shareholders are stuck in lim-bo, itwillbe thedebtors thatwillget itrunning,” said Wood Mackenzie’s MrXu.

With skin in the game, JEI’s objec-tive is simply to get JAC’s plant run-ning again, Mr Palsson said. It is alsoin Singapore’s best interest to restarta major industrial plant which hiresaround 350-400 employees, he said.

SKILLSFUTURE

Banks in Singapore act to deepen local talent pool

Personalstories canlive forever -in adiamond

WALL STREET INSIGHT

Focus is on Fed’s next moveamid Europe, Asia crises

Rescue package tabled for petrochem plant

“Memoriesare precious,and I wouldlike to usesomethingmore tangibleto rememberour stories,”says Jason Hoof Guild ofStorytellers

Lenders roll out programmes to initiate ever younger local students into the world of finance – university undergrads, poly graduates, and even junior college and ITE students

450

400

350

300

250

200

150

100

50

0

Tough playNaphtha-Paraxylene spreads

Jan Feb Mar Apr May Jun July 10

Source: ICIS

SPREAD (US$ PER TONNE)

US$378.00(US$-7.00)

July 10

US$350.00 per tonne

Naptha-PX Breakeven

2 | TOP STORIESThe Business Times | Monday, July 13, 2015 ●