Publications

Introduction

In spite of the Severe Acute Respiratory Syndrome (SARS) epidemic which affected many parts of Asia in early 2003, the region has largely bounced back from the epidemic. All of Asias countries have resumed business as usual. Asia is still the most promising region in the world for economic growth and is filled with opportunities for many foreign companies. Countries like China, India, South Korea, and Thailand are continuing their upward economic performance. It is forecasted that Chinas gross domestic product (GDP) will grow 7.2% in 2003 and that the country will maintain this rate of economic growth for the next several years. South Koreas GDP is expected to grow 5.9% in 2003. Japan, although still in the midst of a recession, offers great business potential and growth due to recent deregulation in a number of key industries as well as the lower yen rate. Foreign companies going to Japan can expect less regulatory red tape as well as less cost (deflation) compared to five years ago.

During the height of the SARS outbreak early in 2003, companies in or doing business with Asia revised their policies in order to prevent the spread of the disease. Many companies operating in Asia restricted travel to SARS afflicted areas, formulated evacuation strategies, and increased medical insurance and benefits to protect their employees. The crisis led to a temporary dip in the economic performance of several countries which have since recovered after the outbreak was brought under control. The speed with which human resource managers responded to the SARS situation is an indication of the advances in HR development in the region.

HR issues in Asia have become more sophisticated over the last few years. Many countries are revising their labor laws in order to protect employees and also to bring their regulations to international standards. For example, China recently passed a bill providing on-the-job injury insurance to workers. In the past, China did not have any laws governing worker health coverage in the event of an on-the-job injury. Authorities are also encouraging greater education and training of employees in order to develop more advanced human resources. In Thailand, the government is currently providing tax deductions for employee training and education costs; encouraging companies to invest in the intellectual and skills development of their employees.

This report will address in further detail some of the recent HR issues and events in Asia. It will also provide an overall picture of future HR trends in the region.

Economic Data

	% change on year earlier
	GDP	Quarter	CPI	Quarter
Australia	2.9	Q1 '03	3.4	Mar Qtr
Brazil	2	Q1 '03	17.2	May
China	9.9	Q1 '03	0.7	May
EU	1.0	Q1 '03	1.9	Apr
France	0.3	Q1 '03	1.8	May
Germany	1.6	Q1 '03	0.7	May
Hong Kong	4.5	Q1 '03	-1.8	Apr
India	6.3	Q3 '02/'03	5.1	Apr
Indonesia	3.43	Q1 '03	7.0	May
Japan	2.7	Q1 '03	-0.9	May
Malaysia	4.0	Q1 '03	1.0	Apr
New Zealand	4.4	Dec '02	2.5	Mar Qtr
Philippines	4.5	Q1 '03	2.7	May
Singapore	1.6	Q1 '03	0.9	Apr
South Korea	3.7	Q1 '03	3.0	June
Spain	2.1	Q1 '03	2.7	May
Taiwan	3.2	Q1 '03	0.3	May
Thailand	6.7	Q1 '03	1.9	May
U.K.	2.3	Q1 '03	1.2	May
U.S.	1.9	Q1 '03	2.2	Apr

Source: Government data, all months are in 2003 unless otherwise specified.

Japan

Although the Japans economic performance is not expected to reach heights previously achieved in the 1980s, Japan offers many opportunities for growth. The countrys current move toward deregulation has opened up the country to greater business opportunities. The low yen is also an enticing factor for businesses interested in expanding their operations in Japan. With assets costing less to purchase and Japanese companies more interested than ever in global partnerships and alliances, Japan is a prime candidate for investment.

Japanese Boomerangs

Despite the current economic malaise in Japan, many people, both Japanese and foreigners, are still eager to return for employment. This is especially true for people who have previously worked in Japan. These individuals, termed boomerangs by Dr. Robert Tobin of Keio University, are returning to Japan with high expectations and hopes of career advancement. Many believe that Japans technology sector holds great promise despite the underperformance of other industries. Hi-tech sectors such as mobile technology, broadband services, software design, and pharmaceutical development are still hot in Japan.

Besides the promise of career advancement and greater opportunities in the technological sector, many foreigners and Japanese are returning to Japan due to the recent small shifts in the countrys business mindset. In the 1980s and early 1990s, Japanese companies maintained rigid business structures and models with little room for innovation. Lifetime employment was also fervently defended. Upon returning the second time around, boomerangs are finding that Japanese business attitudes, in some cases (especially for big companies in Tokyo and Osaka), have changed. In some instances, there is a more entrepreneurial spirit and employment structures are beginning to be more flexible. The Japanese government has also begun to deregulate and streamline their laws, allowing greater room for innovation for many companies.

However, those interested in returning to Japan must realize that not everything is rosy. The most successful boomerangs are those who have the language and cultural skills to maneuver through the Japanese business environment. They must also realize that work hours in Japan are significantly longer than in the U.S. Evening obligations and extended work hours occur on a more frequent basis. Regardless of these considerations, many still choose to return to the Land of the Rising Sun simply due to their love of Japanese culture and the relatively high quality of life in Japan.

End of Seniority-Based Pay?

Some companies in Japan are beginning to move towards more pay-for-performance systems. Historically, Japanese companies have paid older employees more money by virtue of their seniority and not due to their talent or contribution. However today, while pay-for-age is still the guiding principle, some of Japans largest companies are utilizing pay-for-performance and are abandoning pay-for-age.

For example, during this years shunto, or spring labor offensive, held in March 2003, Japans major electronics manufacturers announced that this would most likely be the last year that the companies would agree to the labor unions demands for increased pay based on seniority. Although most unions in Japan are enterprise-based and consist of employees from a single company, every spring, a number of unions band together in order to demand improved working conditions through centralized bargaining with management. This annual labor negotiation event, which began in 1956, is called shunto. This synchronized effort of confronting management is aimed at giving unions greater bargaining power when demanding higher wages and other labor related issues.

Japans electronic giants are planning to scrap the seniority-based pay tradition of Japan, Inc. and replace it with more merit-based pay systems. Even though management had considered revising these automatic pay increases prior to the start of the negotiations, the companies decided not to pursue the change in 2003 so as to avoid explosive confrontation.

Nevertheless, in 2004, the electronics companies are set to revise the seniority-based pay system. The revision would probably lead to pay cuts for certain employees. However, management in the electronics companies including Hitachi Ltd., NEC Corp., and Fujitsu Ltd., stated that the seniority-based pay system is no longer a viable pay system due to the continuous poor economy and deflation Japan is experiencing. Management has also argued that even union members, especially younger ones, are supportive of merit-based pay.

Note: Exchange Rate as of July 2003: US$1 = 117 Japanese Yen

Revision of Japans Public Pension System

The Japanese public pension system draws funds from a pool of premium payments made by active workers and their employers. With Japans population expected to peak by 2006 and decline over subsequent years, the burden of pensions is rapidly shifting towards the younger generation. As Japans population continues to age, younger workers, whose numbers are continually decreasing, are shouldering the burden of paying higher premiums to support a growing retired population. In December 2002, the Japanese Ministry of Health, Labor and Welfare (MHLW) released a draft proposal to revise the countrys public pension system in the hopes of alleviating the burden on the youth.

The draft proposal by the MHLW is due to take effect by 2004. The proposal includes setting a ceiling on pension premiums while at the same time limiting benefits. The MHLW proposes to raise the premium rate for the employee pension program annually until it reaches a ceiling of 20% of annual salary. The current premium rate for pension payments in Japan stands at 13.58%. Premium payments are equally shared between employees and employers (both local and foreign companies). The amount of benefits paid to retirees will be determined by the rate of contributions of active workers. The Ministry hopes that by placing a ceiling on the premium rate, workers will not be as anxious about pension premiums rising to unreasonable levels. However, workers must also face the fact that when it comes time for their own retirement, pension payouts will be significantly lower than they are today.

Under the current pension system, it is estimated that a married couple with one non-working spouse will receive yearly pension payments of approximately 59% of the average annual salary of the working spouse. With the new system, the annual pension payments will fall to 52%. These calculations assume that the countrys fertility rate will match the governments forecast of 1.39 children per woman. The fertility rate in 2001 was reported as 1.33 children per woman.

Inefficient Use of Labor

One of the serious ailments currently plaguing Japans economy is its inefficient use of labor. Due to the Japanese societys fear of unemployment, jobs that do not create value or productivity are often kept in order to minimize the number of people out of work. For example, employees are often retained by employers and paid salaries even though they are not given any work to do while they are at the office. Employees are also hired to perform a multitude of unnecessary tasks such as handing out tickets produced by self-service machines at parking garages.

Although Japans unemployment rate is officially reported as approximately 5%, this can be misleading when taking the countrys labor productivity into account. A report by the Japan Productivity Center for Socio-Economic Development, a government affiliated research institution, states that Japanese workers are 40% less efficient than Americans. This fear of unemployment and the existence of unproductive laborers place a huge strain on Japans already ailing economy.

Women in the Labor Force

Besides the issue of unproductive labor, Japan is also underutilizing a valuable resource, female labor. In the vast majority of Japanese companies, females are still discriminated against and are often prevented from entering higher positions. Women who are in the workforce are often relegated to assistant positions or the mommy track where responsibilities mostly include assisting their male counterparts or carrying out menial tasks such as serving tea. In some cases, the companies encourage their male employees to marry women employees at the same company.

Due to their treatment in Japanese companies, many female workers are opting to work for foreign companies that do not discriminate (or at least discriminate less) against their female employees. In these foreign companies, Japanese women workers are more able to utilize their knowledge and skills. They also face less competition in foreign companies against Japanese male workers since many Japanese men prefer to work for local Japanese companies where they are able to receive more perks due to their gender. In Japanese companies, the university you graduated from will continue to be of relevance throughout your professional career. For example, male graduates from Todai ( Tokyo University) are often immediately regarded as capable employees in local Japanese companies while in foreign companies they would more likely be judged on their performance. Other universities that are considered the best in Japan include: Osaka University, Keio University, Kyoto University, and Waseda University.

Foreign companies can benefit greatly from employing female workers in Japan. Many of these women are highly educated and willing to join foreign firms in order to advance their careers. The total number of employed workers in Japan is about 65 million. 41% of these workers are female. Also, only 3.5% of the Japanese executive/managerial workforce is female while in the US this figure is 47.1%. This underutilization of female workers in Japan provides foreign companies with a vast pool of talent for employment.

Although childcare facilities are mostly government subsidized, there is a lack of childcare centers in Japan. Most nurseries have long waiting lists and new mothers are often unable to register their children for day care. Some childcare centers are so booked up that expectant mothers must sign up for childcare services months in advance before the baby is born. Thus, many female employees are forced to quit their jobs in order to become stay-at-home mothers after childbirth.

More recently, Japanese companies have been implementing measures to retain and encourage greater female labor participation. For example, big corporations in Japan are beginning to see the benefits of setting up childcare facilities on company grounds. In order to maintain a more diversified workforce as well as to prevent the loss of women employees due to childbirth, several companies in Japan are opening up childcare centers to encourage female workers to continue working after having a baby. While this may not be big news in the US, in Japan, the lack of child care facilities have caused Japanese women to discontinue their careers after childbirth, preventing them from ever developing a professional career.

For example, Nippon Yusen K.K, a major Japanese shipping company, established a childcare center at its headquarters. As a result of a group effort by the women employees of the company, the childcare center opened its doors in April 2002.

Toyota Motor Corporation has also opened a childcare facility in their head office. The childcare center at Toyotas office in Aichi Prefecture opened in March 2003 and can accommodate up to 25 children. Already, the demand for childcare at the facility has exceeded its capacity and Toyota plans to open another room for the childcare center that will be able to accommodate 40 more children.

Although a larger number of Japanese corporations are setting up childcare facilities at their offices, many corporations are not keen on making childcare a responsibility of employers. Instead, many companies believe that the government should provide better childcare services and subsidies in order to afford women workers better opportunities for career advancement. An official from Toyota commented, We will make efforts. But, providing childcare should basically be done by the government.

Depression in the Workplace

Due to Japans stagnant economy, changes in the HR system, and lowered pay, especially at small to medium sized companies, depression has become rampant in the workplace. On October 4, 2002, the Japanese Ministry of Health, Labor and Welfare released the results of their survey on depression. The survey was conducted at small and medium-sized Japanese companies and among 11,976 employees from December 2001 to January 2002. According to the survey, 43.9% of female workers and 38.7% of male workers said they suffered from slight depression. 16.2% of females and 11.0% of males said that they are experiencing moderate to severe depression while 12.0% of females and 9.5% of males said that they have felt like dying recently.

The main factors that the survey respondents say contribute to their depression include workplace stress, family and relationship problems, and financial difficulties similar to other workforces around the world. Japan has a population less then half of the U.S., yet the number of suicides in Japan exceeds that of the U.S. Approximately 31,000 people die each year in Japan as a result of suicide. Diagnoses and treatment of depression in Japan falls far short of other developed nations. There is still a significant stigma associated with mental illness in the country. People suffering from depression choose not to seek help in order to avoid guilt and shame. Instead, many Japanese assume a cultural impulse known as gaman, or the will to endure.

Today, Japanese corporations are realizing the costs of depression in the work place. As productivity falls development and innovation stagnate. Thus, a number of large corporations are beginning to address these mental health issues by providing their employees greater access to medical assistance. For example, three years ago, Sony Corporation began a preventive medical health care program for 18,000 employees by offering confidential off-site consultations. High incidences of suicide rates and depression in the company had begun to disrupt operations and increase costs. Therefore, the program was implemented to provide employees an outlet to manage their depression. Satoshi Ishiguro, Sonys Wellness Center general manager was quoted as saying Its not that the number of serious cases of illness is increasing, it is that we are trying to lower the barriers to care.

Karoshi, Death from Overwork

In addition to depression in the workplace, Japanese employees are also facing a more fatal risk. Japanese employees are well known for their fierce loyalty to their companies. However, in recent years, this once honorable trait has contributed to increasing deaths among Japanese workers. The incidence of karoshi or death from overwork is growing dramatically in Japan. This is particularly true of male white collar workers in the country. Deaths often occur in the form of strokes, brain aneurysms, and heart attacks. According to Japans Ministry of Health, Labor and Welfare (MHLW), in 2002, the numbers of deaths attributed to long office work hours was reported to be 317. This is up from 143 in 2001. However, experts believe that the reported number of deaths due to overwork is far lower than in reality. Experts estimate that approximately one million workers in Japan are putting their lives at risk from overwork.

Japans ongoing economic recession, greater competition from foreign economies, and a lack of protective measures for Japanese workers have also added to the growing cases of karoshi. A recent survey conducted by the Japanese Trade Union Confederation found that 30 male workers in their early 30s worked over 3,000 hours in a year. This comes out to over 58 hours a week, which is considered by the government as a level that threatens health. Ari Sugano from Japan Union, a website helping Japanese workers get off the corporate route commented, These days, companies are finding all kinds of clever ways to squeeze more time out of workers. They might declare a no overtime month, but the no overtime refers to no overtime pay. I often hear about other companies that say they are adopting a system of discretionary work hours, and use this to coerce employees into working longer hours.

The MHLW is currently promoting a new plan to help prevent karoshi in the workplace. The plan includes free health check ups for workers showing the four warning signs that place individuals at greater risk of death from overwork. The four signs include: 1) obesity, 2) high blood pressure, 3) high blood sugar levels, and 4) high blood lipid fat levels. According to officials from the MHLW, individuals who exhibit all four warning signs are 35 times more likely to suffer fatal illnesses than their healthy counterparts.

On a more positive note, the highly stressful environments of many Japanese companies have encouraged more Japanese workers to take note of foreign companies. Foreign companies, particularly western companies in Japan are known for having more relaxed work environments and great employee benefits. In the past, many Japanese would not have considered working for a foreign company for fear of the lack of stability compared to Japan, Inc.s lifetime employment systems. However, today, many are venturing out of traditional jobs for opportunities with foreign companies.

Freeters, Part-time Workers

The willingness of more Japanese people to venture out of traditional work and the desire for employers to minimize long-term costs has also contributed to the increase in the number of part-time workers in Japan. This phenomenon has become of increasing concern to the Japanese government. In May 2003, the Japanese government published their annual national life report entitled Deflation and Daily Life Young Freeters at Present. Freeter is a slang term representing young part-time workers between the ages of 15 to 34 or unemployed persons with the will to work under the same age category. The term is derived from a German and English combination free-arbeiter. (Arbeit is the German word for work.)

In the report, the Japanese government emphasizes its increasing concerns about the growing number of freeters in Japan. Due to the tight job market and the contraction of available work, many companies in Japan are choosing to hire part-time workers instead of fulltime employees in order to cut human resource costs. However, the government believes that the utilization of freeters will lower the ability of young workers to learn skills and develop long-term career goals. Due to the temporary nature of their work, freeters will not be able to perfect a particular work skill or build on their professional traits.

Another major concern of the government is the likelihood that the growing number of freeters in Japan will lead to an acceleration of Japans declining birthrate. With more young people in Japan not able to obtain stable, fulltime jobs, many will delay marriage and starting families. More than 85% of part-time workers in Japan earn less than 2 million yen (US$16,833) a year and many will hit a salary ceiling by the time they are in their early 20s. With Japans dependency ratio continuing to decrease, working individuals will be shouldered with greater burdens to support the elderly and retired population.

The governments report states that the number of freeters in Japan totaled 4.17 million in 2001. This is significantly higher than the 1.83 million figure reported in 1990. Approximately 21.2% of the population aged 15 to 34, not including housewives and students, were considered freeters in 2001. This is greater than the 10.1% in 1990.

The Japanese government is planning to implement steps to create more jobs in Japan. The report also mentions the governments plan to revise the education system at high schools and universities and to create better job-training programs in order to meet the high knowledge needs of companies. Besides these reforms, the government also plans to narrow the wage gap between fulltime and part-time workers to encourage company hiring of fulltime workers.

China

China is the worlds fastest growing economy. Over the last ten years the countrys growth rate has exceeded 7.5% each year. New construction figures are astronomical with over one million construction workers and 20,000 construction projects alone in Shanghai today. Per capita incomes in the major cities are about $4,000, up from $1,500 five years ago. Chinas GDP is expected to grow steadily at 8% per year for the next few years. Chinas entry into the World Trade Organization (WTO) in 2001 has also boosted the countrys economic restructuring. It is predicted that Chinas GDP will quadruple from 2000 to 2020.

China was one of the countries in Asia that was severely struck by SARS. The SARS outbreak is believed to have begun in the southern region of China. However, the epidemic has been largely suppressed, and the government is on watch for any reemergence of the illness. Foreign companies in China have also revised their HR policies in response to the outbreak and to prevent future occurrences of the infectious disease.

For example, Bayer ( China) Ltd. formulated extensive travel guidelines and office evacuation procedures in response to the SARS situation. Bayer also created a Bayer SARS Team. The team is responsible for being on constant alert for the disease and making appropriate changes to the companys policy against SARS as needed.

During the early months of the scare, Kohler, a German manufacturer of home fittings, took steps to protect and inform their employees in Shanghai. At the time, Shinny Wu, spokeswoman for Kohler in Shanghai commented, Our company is regularly being disinfected. We have given our staff medicine and protective face masks. We have also passed around notices to remind the staff how to prevent the disease.

Other companies have changed the ways they interview potential candidates in China as a result of the SARS scare. Among the methods currently being utilized is videoconferencing. Although convenient and safe for all parties involved in the interview process, videoconferencing still poses limitations since employees and employers still do not feel they have truly met until they are physically face-to-face. However, given the situation in early to mid 2003, videoconferencing has proven to be a good alternative.

During the height of the SARS crisis, the epidemic affected the ability of recent graduates in China to job-hunt. In Shanghai, for example, the Shanghai Personnel Bureau cancelled all local job fairs scheduled for late April to mid May 2003 to prevent the possible spread of SARS. This is often the most critical period for new graduates to obtain employment.

In order to assist these new job seekers, Chinas Ministry of Education (MOE) called on the local governments and universities to offer comprehensive job-hunting services to graduates. The government urged local administrations to make full use of the internet and other media sources in order to inform job seekers of job vacancies and to utilize online recruiting.

The Shanghai Labor and Social Security Bureau also launched a website (www.83666.gov.cn) to inform students of the latest developments in the job market. Students can also access www.firstjob.com.cn, set up by the Shanghai Graduates Career Guidance Center to find jobs. According to recent statistics, China will have a total of 2.12 million university graduates in 2003. This figure represents 670,000 more graduating students than in 2002.

Protecting Workers with On-The-Job Insurance

Chinas State Council Premier, Wen Jiabao, signed a decree promulgating the Regulations Governing On-the Job Injury Insurance in early May 2003. The new regulations will cover medical costs for workers in China who have sustained on-the-job injuries or contracted occupational illnesses. The new insurance regulations are scheduled to take affect on January 1, 2004.

The regulations will apply to all enterprises in China, both industrial and commercial, which employ individuals in the Peoples Republic of China (PRC). All enterprises will be required to obtain on-the-job injury insurance coverage as specified in the new regulations and must pay insurance fees for their employees. Employees are then eligible to claim medical coverage for on-the-job injuries according to the regulations. The local governments in each province, autonomous region, and municipality will determine specific procedures and measures for implementing the new rules.

The new regulations also mention that prior to the implementation of the local procedures and rules, local government administrators will have an opportunity to consult with labor unions and representatives from local enterprises to draft up policies and standards for on-the-job injury insurance.

Although the regulations will not be implemented until January 1, 2004, workers who have suffered on-the-job injuries prior to the implementation of the regulation will still be eligible to apply for on-the-job injury insurance benefits.

Green Cards for Foreign Employees

By the end of 2003, Chinas Entry and Exit Administration of the Ministry of Public Security expects the full implementation of the new Green Card (permanent residence permit) system. The Green Card system will allow foreigners holding senior positions to apply for residency permits. Special preference will be given to foreigners with higher education and technological expertise. Once the new system is fully implemented, foreigners fulfilling the government-determined requirements and who have already resided in China for at least 6 months would be eligible to apply for a Green Card.

The permanent residency permits will allow foreigners to receive the same treatment as Chinese citizens or what is called Chinese national treatment. Foreigners will be allowed to enter and exit the country without the need for a travel visa. Of particular importance to many foreigners currently residing in China are the significant tax breaks and other allowances given to permanent residents compared to foreigners. For example, persons holding green cards will be charged local rates for their childrens education instead of the higher foreign rates. However, these lowered rates will only apply for public school tuition and not for private schools.

The Green Card system is mainly aimed at attracting overseas Chinese back to China. Since Chinas early reforms in 1978, approximately 300,000 people have left China for education overseas. Only about one-third of these people have returned to China since then. However, in the past several years, China has experienced a surge in returning Chinese. The Green Card system will facilitate the return of these overseas Chinese and allow them to retain citizenship or permanent residency status elsewhere while living and working permanently in China. The Green Card system will also encourage Chinese from Taiwan, Hong Kong and Macao to relocate to China.

The new system, once fully implemented, will significantly alter the current hukou system, which has governed peoples residency rights in China since the countrys founding in 1949. The hukou system is Chinas archaic house registration system which establishes a person as an urban or rural resident. People are allocated social benefits based on their hukou status. This system made it very difficult for people from rural ares to move into urban centers. With people no longer dependent upon the hukou system for housing, healthcare, and education, labor mobility in China has and will continue to increase considerably in the coming years.

China Still Slow in Adopting eHR

Some companies in China have been slow to develop their human resource foundation and utilize technologies related to improving HR functions. Unlike the US or other more developed countries of the world, Chinese companies continue to rely on internal human resource capabilities rather than outsourcing their HR needs. Functions such as payroll are still handled internally rather than being outsourced to an outside company specializing in payroll activities. Therefore, companies in China tend to have more human resources staff per employee. The ratio for Mainland China was recently reported as 82 employees to one HR staff. Outside the greater China area (which includes Mainland China, Hong Kong, and Taiwan), this ratio is 177:1.

Electronic human resources, or eHR, is fast becoming a major factor in the development of businesses worldwide. eHR, is the utilization of technology that enables employees to have direct access to human resources. Examples of eHR include: Web-based office applications, interactive voice response (IVR), or employee portals. By utilizing eHR, companies are able to maximize their human resource potential without having to add to their employee base. Companies in China have yet to utilize eHR extensively in dealing with their human resource requirements. According to a report by Watson Wyatt, 57% of Chinese companies surveyed say that they are not planning budgets for eHR investments.

This lag in human resource development will continue to weigh down on Chinas economic performance if not properly addressed in the near future.

Introduction of Cambridge Universitys GCE Program in China

With China currently a member of the World Trade Organization (WTO) and the Beijing 2008 Olympics just around the corner, people in China are intent on learning English. Considered the lingua franca of global business, many in China believe that English is the key to future success. Thus, greater numbers of English language training and education programs are currently emerging in the worlds most populous nation.

Recently, Englands University of Cambridge Local Examinations Syndicate (UCLES) introduced their General Certificate of Education (GCE) examination to China. The GCE program is offered to students looking for an alternative route in their pursuit of higher education. The two-year program will be conducted entirely in English and is designed for students at the end of their compulsory schooling who are approximately 16 years of age.

In May 2003, the TMC Educational Group, a Singaporean company, was appointed by UCLES to be the first training provider in China for the GCE Ordinary-level program. Classes for the GCE program are taught through schools and teaching facilities specifically selected by TMC based upon their experience and professionalism. Students who have weak English abilities prior to beginning regular studies with the program will undergo six months of supportive linguistic courses in order to bring them up to speed.

Li Deli, Director of TMC in Beijing emphasized that the programs success in China would be dependent upon several issues including the programs curriculum. The program should be able to facilitate further education for students both in China and abroad. He added, On the one hand, we have to consider the requirements of the Chinese education system. On the other, we should take into consideration the Western system of education.

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