Indian bankers feel the heat

Indian professionals in Hong Kong’s banking sector are increasingly on edge, with the prospect of job losses mounting with each outbreak of grim economic news.

Even experienced bankers say they don’t feel particularly secure when the call for “heads to roll” goes out - and there’s been a fair bit of that in recent weeks.

On Monday, banking giant HSBC announced a second round of layoffs, dismissing 450 employees and warning portentously that “in this day and age, no guarantee of job security can be given”. Just last week, Singapore’s DBS Bank sacked 900 employees, principally in Hong Kong and Singapore.

Up next, another bruising round of layoffs from Citibank, Morgan Stanley and Goldman Sachs. “These past few weeks, bracing for bad news, has been nerve-wracking,” an Indian banker confided. “Frankly, even a dismissal today, bad as it will be, will relieve the stress because at the very least it will end the uncertainty.”

The only things certain in life may be death and taxes, but in Hong Kong, businesses and salaried professionals who are down and out because of the global economic meltdown are seeking a deferral on one of those certainties.

The number of those who have sought more time to pay their taxes for next year has gone up this year by nearly 75%. Tax payments are due in January 2009, and the projections are based on the previous year’s income. This year, the tax department has received an avalanche of requests for deferral, which is permitted under the law in certain circumstances.

Typically, businesses that shut down in a year can apply for a holdover of their tax dues; even if taxable income is expected to fall by more than 10% over the previous year, they can apply for deferral.

Similarly, professionals who have lost their jobs can apply for a deferment of tax. In recent weeks, Hong Kong has witnessed a rash of bankruptcies, closures of retail outlets and job losses, with many more likely to follow.

Some employers are finding inventive ways to avoid having to lay off staff, and employees, thanking for the chance to hold on to their jobs, are playing along. For instance, the casino and entertainment company Melco Crown Macau gave its 2,000 employees the option of either taking up to six months’ unpaid leave or taking an additional two days’ unpaid leave every month or having to work two days a week and attend an unpaid re-training programme for three days of the week.

A majority of the employees opted for the second option. As they say, sometimes the best career move you can make is to sit on your butt…