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Businesses say Hong Kong quarantine threatens financial hub status

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European business leaders have warned that Hong Kong’s stringent quarantine measures have left its residents “indefinitely trapped” in the city, threatening its status as an international business centre.

In a rare open letter to chief executive Carrie Lam on Thursday, the European Chamber of Commerce in Hong Kong said the city’s most recent hardening of measures for inbound travellers were “out of proportion” and a “significant setback”.

The Chinese financial hub maintains some of the strictest quarantine rules in the world, an approach that has kept virus cases low but left most residents cut off from the rest of the world for the past 18 months.

Arrivals from high-risk countries have to stay in hotel quarantine for 21 days, while for lower-risk countries that drops to seven days followed by another seven days of self-monitoring.

Last week, the authorities announced that a brief flirtation with relaxing some of these rules had to be scrapped.

The decision threw travel plans of many into disarray towards the end of the summer holidays, sparked a shortage of hotel rooms and caused growing frustration within the business community.

“We are of the view that Hong Kong must open itself sooner rather than later or this new quarantine regime could lead many in the international community to question if they want to remain indefinitely trapped in Hong Kong when the rest of the world is moving on,” Frederik Gollob, chairman of the chamber’s board of directors wrote in the letter.

“This concern amongst the international business community could pose, undoubtedly, a growing threat to Hong Kong’s status as an international business centre.”

He added that while new virus variants were coming in, vaccination had helped lower the risk of extreme cases and many countries had made plans to treat the crisis as endemic.

He urged the government to understand the “new normal” and come up with a “clear exit strategy” so as to provide a basis to restore confidence and enable businesses to plan ahead.

Leaders have been pursuing a “zero infection” strategy in hope of stamping out the disease in the city but its ability to open up has been hampered by a poor vaccination drive.

With only 45 percent of the population fully inoculated, the city has one of the lowest take-up rates in the developed world, despite securing more than enough jabs for the whole population.

On Thursday, Hong Kong and Singapore announced that a previously postponed plan to create a travel bubble between the two cities had been permanently scrapped.

The government said the plan was shelved because Singapore, which has a much higher vaccine take-up, was now moving towards living with the coronavirus.

— AFP

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Up to 200 athletes tested for doping so far at Asian Games

Between 150 and 200 Asian Games athletes tested for doping, yielding no positive results. Anti-doping efforts emphasized for a clean event, focusing on record-breakers.

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HANGZHOU, CHINA — Between 150 and 200 Asian Games athletes have already been tested for doping, the Olympic Council of Asia said on Monday, with no positive results so far.

Speaking at an anti-doping press conference on the second full day of the Games in the Chinese city of Hangzhou, the OCA said dope-testing was “gaining momentum” at the event.

Mani Jegathesan, an adviser to the OCA anti-doping committee, warned that drug cheats would be rooted out.

Up to 200 athletes have been tested so far, he said, but any positive results will take several days to come through.

“Every athlete participating in these Games must understand that they could be picked at any time,” Jegathesan warned.

“That is the best step to ensuring we have a clean event.”

There are about 12,000 athletes at the 19th Asian Games, more competitors than the Olympics, and Jegathesan admitted it would be impossible to test them all.

Instead, they will prioritise, including picking out those who break world or Asian records.

— AFP

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Foodpanda’s restructuring amid sale speculations

Food delivery giant Foodpanda, a subsidiary of Delivery Hero, announces staff layoffs in the Asia-Pacific region, aiming for increased efficiency. This move coincides with ongoing talks about potentially selling parts of its 11-year-old business.

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Foodpanda, a subsidiary of Delivery Hero, is initiating undisclosed staff reductions in the Asia-Pacific region, as discussions continue regarding the potential sale of a portion of its 11-year-old food delivery business.

In a memorandum circulated to employees on 21 September, Foodpanda CEO Jakob Angele conveyed the company’s intent to become more streamlined, efficient, and agile.

Although the exact number of affected employees was not disclosed, the emphasis was on enhancing operational efficiency for the future.

No mention was made in the memo regarding the reports of Foodpanda’s potential sale in Singapore and six other Southeast Asian markets, possibly to Grab or other interested buyers.

Foodpanda had previously conducted staff layoffs in February and September 2022. These actions come as the company faces mounting pressure to achieve profitability, particularly in challenging economic conditions.

The regulatory filings of Foodpanda’s Singapore entity for the fiscal year 2022, ending on 31 Dec, indicated a loss of S$42.7 million despite generating revenue of S$256.7 million.

Angele further explained that Foodpanda intends to review its organizational structure, including both regional and country teams, with some reporting lines being reassigned to different leaders. Additionally, certain functions will be consolidated into regional teams.

Expressing regret over the challenging decisions, Angele assured affected employees of a severance package, paid gardening leave, and extended medical insurance coverage where feasible.

Foodpanda will also forego the usual waiting period for long-term incentive plan grants, and vesting will continue until the last employment date. Employees will retain all vested shares as of their last day of employment.

Foodpanda, established in 2012 and headquartered in Singapore, became a part of Delivery Hero in 2016. The company operates in 11 markets across the Asia-Pacific region, excluding its exit from the Japanese market last year.

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