Cost-Cutting Measures Taken By SIA To Alleviate The Effects of COVID-19

The tourism industry has taken a significant hit due to the global travel restrictions and economic impact of the COVID-19 pandemic. In fact, the Singapore government temporarily suspended the operations of Terminal 4 to adapt to the decline of flights.

The national carrier Singapore Airlines (SIA) was heavily affected by the pandemic too. It is currently operating at 7% of its scheduled capacity. The drastic drop of the travel demands led to a net loss of S$1.12 billion in SIA’s first quarter. This is why the SIA Group had to employ cost-cutting measures aimed at mitigating the harsh financial effects of the current circumstance.

The following are some of the SIA’s cost-cutting measures.

1. OFFERING NO-PAY LEAVE SINCE MARCH

Having leave without pay is something that is seen in different fields including the tourism industry. More than 6,000 SIA Group staff have taken up varying days of no-pay leave amidst the collapse in air travel. This number accounts for more than a fifth of the 27,000 staff under the SIA Group. You see, the SIA Group includes SilkAir and Scoot.

Pilots, cabin crew, and ground staff members have taken no-pay leaves with a minimum of seven days. These people who are on no-pay leave or are on furlough are allowed to look for other sources of income and employment outside of the company, provided that they are non-work pass holders.

2. WORKING WITH PARTNERS TO RESCHEDULE PAYMENTS AND REDUCE COSTS

SIA is on a mission to negotiate adjustments with aircraft manufacturers. They have been and will continue to negotiate on existing orders and payment schemes to reduce near-term cash outflows. This strategy is something that many businesses are adopting.

3. CUTTING SALARIES AND WAGES

To reduce the lay-offs and to help the SIA Group to survive during this time, all the staff have taken cuts from their salaries. Managers and people with higher ranks have taken cuts ranging between 12 to 35 percent (%), with its Chief Executive Officer taking the highest cut of 35%. While all the other staff have taken a cut of about 10% on their basic salary.

4. HAVING EARLY RETIREMENT AND RELEASE OPTIONS

In its continuous search to reduce its operational costs, SIA has offered its cabin crew early release or retirement options. Cabin crew members who successfully apply for the scheme will receive benefits and payouts. The trainee crew will not be eligible. Eligible applicants have until August 2020 to apply. Each application will be considered on its merits. The results of the application will be released by mid-September 2020.

Cabin crew members will reap different benefits based on their employment status. For instance, crew members who are still serving their bond as of August 1 will be granted a waiver of any outstanding bond repayment if they successfully apply to leave early. On the other hand, crew members in the last year of their contract as of August 1 who successfully apply to leave early, will reap a pro-rated gratuity without having to complete the current contract.

Image Credits: unsplash.com

Experts have said that these various measures will help the SIA Group, but not to the extent that it can avoid eventual job cuts. This is due to the decrease in travel demands and the increase in current manpower. Moreover, a quick recovery is nowhere in sight as the International Air Transport Association stated that it will be until 2024 before the travel demand returns to the last year’s level.

Sources: 1 & 2

 

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Stop observing the ETF market 24 hours a day

How to invest in STI ETF?

In recent times, there has been a trend to judge other investors based on their performance. In a simple context, novices begin to analyze others rather than themselves while trading in forex. As millions of people are becoming a part of this finance community, it is difficult to keep a tap on these clients but this habit is growing rapidly. Traders are looking for ingenious solutions like android application. People no longer want to spend days or even hours developing a strategy. They want to absorb knowledge and immediately start trading in the live market. Unfortunately, there is no such app that meets their dream requirements. As a result, it has been noticed that many emerging investors are observing the styles of others are trying to mimic their performance. The result is not always as expected and sometimes it led to complete misconception.

In this article, we are going to talk about this particular phenomenon and explore why this is a damage inflecting method. At a first glimpse, it may seem logical but as you begin to dig deeper, the truths gradually unearth.

It is good as I can observe styles and select the right one for me

No, this is completely a wrong concept. Don’t understand the market wrong. Currency trading has no universal formula, it depends on person to person. An investor may find solace in using short-term techniques such as scalping while others may deem it risky. Both are correct in their perspectives. When a person takes the role of spectator, two things occur simultaneously. Firstly, he slowly loses the ultimate essence of learning the basics. This is like observing a game without actually playing, in this case, capital is at stake.

Secondly, he gets the wrong ideas about trading principles. Human minds are developed uniquely and traders are the same. He gets the vibe that scalping is immensely profitable not knowing this is the most lethal strategy known in this sector. Perceptions are altered and false information is conveyed through channels. Simply doing this make one an incompetent trader who stands no chance against the others. Learn through mistakes and rectify the errors. Do what millions of people are doing, learning, and practicing in a demo account to prepare for live performance.

Underestimates real performers

A critical aspect of this habit is people often misinterpret successful traders. For example, an expert might be labeled as insane if they observe without developing basics. Elementary knowledge helps to distinguish the dangers from certain probabilities of profit. Trading mostly depends on opportunities that you will gradually understand as the career proceeds. If you start judging someone simply they have left their positions open for weeks yet no visible profit is accumulated in the account, the career will not go far.

The real performance focus on market dynamics for a certain time in the day. If ask them which asset you should buy, they will just have a look at the CFD trading platforms online and give you an answer. Many Singaporean traders have developed this skills since they know the proper way to manage the risk factors. They have worked hard in the early stage and only for this reason they can make consistent profit without having any faults. Change your perception on ETF business and try to focus on quality.

Learn elementary concepts

It is hard to change an inherent human nature, therefore we will focus on lessons that will reduce this problem. If this issue persists, read a resource daily and improve the basics. Participate in forex quizzes as they help to check whether the learned lessons have been set in mind. It is not uncommon to discover at a certain stage that investors they viewed as magnificent were using the worst strategies possible and novices in their eyes were the best consistent performers.

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Living Life in Your 30s – 7 Money Moves to Earn and Save

Your 30s can be some of the best moments in your life. Whether you’re pursuing your career, starting a family, or enjoy your surroundings, your 30s are a time of pure potential.

However, your 30s are also a time where your finances either control you or you control them.

Don’t let money control your life. With smart money moves to earn and save, you’ll be able to enjoy your 30s and help set you up for life down the road.

Set and Follow a Budget

Budgeting is one of the best money management tips out there. That’s because a budget shows you how much you earn and where your money goes. It allows you to save and pay off debt while still living life. Get that budget going right away if you haven’t yet.

Set Yourself Financial Goals

Goals are an excellent way to keep you focused and motivated on your financial journey. Set yourself small, attainable goals that you know you can achieve. They can be anything from paying off a credit card, student loans, earning a certain amount in a year, or saving for a family vacation.

Bring in Side Incomes

Whether you have everything paid off or not, having a side income is always beneficial. You can use the extra cash to pay loans or as your spending money. Luckily in today’s world, there are so many ways you can earn a few bucks on the side.

Learn to Invest

Investing is an easy way to grow your finances without doing too much. By going with the right broker, you can put money into an investment and let it grow each month. Just make sure to check it from time to time.

Other investments can include things like making trades. If you’re new and not sure where to start, look into FP Markets that connect the trader to the market.

Pay Off Credit Cards

Did you rack up credit card debt in your 20s? You’re not alone. In 2017, those in their early 20s had around $22,000 in credit card debt, and those in their late 20s had about $42,000. That’s a lot of money potentially holding you back.

Work towards paying off credit card debt in your 30s. The longer you take, the more you actually pay in interest fees. So, budget for one card at a time until it’s all paid off.

Build an Emergency Fund

In your 20s, building an emergency fund maybe wasn’t high on your priority list, or even thought about at all. However, as you enter your 30s, setting aside money for an emergency fund can come in handy later in life. Even if it’s a few dollars from your paycheque, every bit counts.

Be Practical

You’ve likely matured in your 30s compared to earlier in life. Your priorities are likely different and more in line with family, work and stability. Make sure your financial moves reflect that as well.

Be practical with what you purchase, how you save and what for. Ditch the status attitude that you need to buy expensive things to show off.

 

Enjoy your 30s as you take control of your finances. You’ll be thankful you did later in life.

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A Helpful Guide To Business Recovery

The coronavirus pandemic has taken a significant toll on many businesses and individuals all over the world. It is as if we are living an alternate universe where our global economy gradually collapses and we are left to make sacrifices in order to survive. The pandemic has negatively affected many lives and has caused business closures from different industries. These are the hard realities that we face now.

As time goes by, we see glimpses of hope at the end of the dark tunnel. Singapore’s Phase 2 has made steady progress towards reopening the country to more business activities such as nail salons, bookstores, fitness studios, tuition centers, and more. We moved into the next stage while successfully keeping the community transmissions low.

Despite this, businesses must reopen with caution. It is crucial to prepare for gradual business recovery with adequate planning. Here are some things that you may consider as you open your doors to others.

OPEN WITH MINIMUM OPERATIONAL CAPACITY

One of the biggest mistakes that you may make is to eagerly start full on day one. This can incur unnecessary costs (i.e., includes wages and utility expenses) and can increase the risks of closure. View the situation with realistic lenses. Many consumers are slimming down their budgets in order to make ends meet. If the demand is low, you must adjust to the situation by operating your business with minimum capacity.

What is the bare setup you need to complete your monthly business cycles? Stick to that. This bare setup includes your essential staff, minimum inventory, and main products or services. As you reawaken your ecosystem, it will gradually grow in time. Your only goal on day one is to restart.

MAKE PERSONALIZED CALLS TO CLIENTS AND STAKEHOLDERS

Everyone will expect a different level of business productivity during the recovery period. It is unreasonable for others to require you the same amount of outcome as you achieved a year before. This leeway is not excuse for you to lose your communication channels with your loyal clients and stakeholders. Assure them that you are taking active steps into restarting the business.

Make personalized calls to these important people. Be honest and genuine as you hear out their concerns and grievances. Prepare for the personalized calls by having a list of possible questions and by offering practical solutions to their possible concerns. You can regularly update them as soon as you are able to address certain challenges on your way to business recovery.

CALCULATE THE TOTAL BUSINESS IMPACT

From the beginning of the Circuit Breaker period down to the present, you must calculate the profits and losses that your business incurred. Doing so, you will be able to have a numeric goal for your business to achieve in time.

Several business continuity models suggest that you must calculate the business recovery costs, audit the liquid assets and know the projected sales to paint the picture of a realistic business recovery timeline. Business recovery costs are liability that you will slowly pay off with liquid assets, then with projected sales. Going through this process will give you an idea of how long you should plan for business recovery.

CREATE A BUSINESS RECOVERY PLAN

Much like one’s journey to starting a family, business recovery cannot be rushed. You must plan for it with a sense of control. Use your realistic timeline to bring your business back to its healthy shape. During this recovery period, you must operate at a minimum capacity and explore other sources of income. For instance, a construction company may look into offering demolition or dismantling services.

Image Credits: unsplash.com

It is important to be aware of the relevant national rules that govern your industry. The changes in the demand for your products and services must be taken into account too. Activate the non-essential parts of your operations as your business increases its sales. Take things slow!

Sources: 1 & 2

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How the World of Online Conveyancing is Changing?

There was once a time when the world of conveyancing was a long and challenging endeavour, but the introduction of online conveyancing has made the process easier. Online conveyancing is nothing new, but there may be some worried about the prospect of becoming a victim of fraud online. So, on this article, we look at how caring out your house conveyancing online can be done safely.

Those that used the Internet in the mid-90s to the mid-noughties will know how primitive it was. Fortunately, the online world has evolved tremendously, but this does not mean that some are not cautious when it comes to carrying out transactions online

Many people have read the horror stories of people losing money online, but the truth is that those using the Internet in the right way have little to worry about concerning online conveyancing.

How User Details Are Safeguarded Online

One of the reasons the Internet was open to fraudsters in the early days was because of the lack of knowledge about online security. Nowadays, it is impossible to find a business that deals with sensitive information that does not use encrypted software.

What this means in layman’s terms is that only permitted parties have access to the information, and those trying to view the data from the outside will not obtain any personal information.

Of course, other measures need to be employed when reassuring customers that their online details are kept safe.

The way that customer information is retained has changed, and any company collecting data must ensure that it is used in the right way. Fortunately, the requirement to keep the details of clients safe has meant that every effort needs to be made by the business to achieve this.

The Convenience of the Online World

Despite some of the concerns people have when it comes to online security, there have been a lot of improvements made, and the fact that data must be safeguarded by law ensures that those looking to take advantages of services like online conveyancing can do without concern.

Of course, it is still essential to ensure that research is carried out when looking for online conveyancing. Although a conveyancing company has a legal responsibility to handle your data in the right way, other factors need to be considered.

For example, communication is a large part of a successful conveyancing case, and even online options will have a series of choices available to ensure that you are receiving a response promptly. As such, if you are considering a conveyancing company but finding yourself waiting days for a reply, then it may be worthwhile looking elsewhere.

Fortunately, many providers online are reputable and reliable; you merely need to choose a company that most fits your requirements.

 

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