Heading East

01 January 2000
Heading East

Malaysia, with the city state of Singapore at the tip of its peninsula, is one of the world's most dynamic development areas; its economic growth rate is the envy of the West. Singapore's skyscrapers climb to fantastic heights - one of the most recent being the spectacular Ritz Carlton Hotel. And in Malaysia's capital, Kuala Lumpur, the twin towers of the Petronas Building stand proudly among the world's tallest buildings.

The region has almost no unemployment, so the opportunities are there - but an increasingly well-qualified local work-force means any foreigner seeking a job will need special talents.

Employment permits are hard-won. In Singapore, for example, they must be arranged by the employing company and will only be given to a foreigner if the company can prove the individual is uniquely suited to the job. It is almost impossible for someone from another country to turn up in Singapore and find work - preference must always go to a Singaporean.

John O'Shea, vice-president, Shangri-La Hotels and Resorts

After 25 years with Inter-Continental - starting in 1964 as front office manager in Dublin and concluding as senior vice-president for North America - John O'Shea was persuaded to join the Shangri-La Group (headed by legendary Hong Kong entrepreneur Robert Kuok) in late 1991.

In 1994, O'Shea was appointed to his present position, with regional responsibility stretching from Singapore and Indonesia to Fiji in the South Pacific.

He points out that his career path would be difficult to copy. "The locals are now competent," he says. "An expatriate would need to bring special expertise. And the contract package would be less attractive and far more performance-related."

His salary and bonus give him about the same income as he would expect in the UK, but the benefits are better. His accommodation, outside the hotel, is free and he has a company car and three weeks' leave a year. The company also covers the cost of air fares to the UK and private medical insurance for himself and his family.

Britons who live and work abroad for more than three years can be classified as non-resident in the UK for tax purposes - so they pay no UK tax. Tax rates in Singapore and Malaysia are variable - between 15% and 45%. Middle management can expect to be taxed at about 25% - although many companies pay this as well.

Of Singapore, O'Shea says: "It is clean and safe and we have year-round sunshine, although it can rain on any day. It is highly efficient and not over-regulated." Sports facilities are comprehensive - although it may be necessary to join a club.

The main difference between his job and a similar UK position is the level of responsibility - "the dimensions of the job". O'Shea faces the challenge of a portfolio of units that generates US$350m a year. The Singapore Shangri-La hotel alone serves 3,000-4,000 food and beverage covers a day and more than 8,000 on New Year's Eve. The Jakarta, Indonesia, Shangri-La recently had a wedding booking with catering for 3,500 guests.

And plans for the future are impressive. The chain has 32 units and is aiming to make it 60 - possibly 80 - by the turn of the century. These will be a mixture of the group's Shangri-La five-star luxury hotels and the more economical Traders hotels and resorts.

All of this could be daunting to a man who will be 61 in 2000. But O'Shea wears his age comfortably. The Shangri-La group is also dominated by Chinese culture and the Chinese believe advancing age represents increasing wisdom.

Alex da Silva, until recently communications manager at Singapore Shangri-La Hotel

Da Silva returned to the UK a month ago to take the communications manager position at London's Grosvenor House hotel. Prior to this, she spent the past seven years working in Asia.

Her early career in the UK was in publishing, with Newsweek International and Time Warner. When she was 24 (in 1989) Time Warner offered her a marketing position in Hong Kong. Her only question was: "When does the flight leave?"

But in 1993, the icy touch of world recession forced the company into retrenchment, and da Silva lost her job. Marketing her talents to her former clients, which included the Shangri-La group, paid off. The group offered her the position of communications manager at its luxury hotel in Singapore, set in 15 acres of beautifully landscaped gardens.

Da Silva's employment package was a mixture of expatriate benefits and local terms. Her base salary was about 10% higher than that of an equivalent UK position and she received a standard annual bonus of one month's pay. This could be enhanced by performance bonuses which, typically for the industry, ran at about an extra two months' pay.

Cost of living

Holidays were short and sweet. She had two weeks' leave a year and usually returned to the UK at her own expense. And she had to pay for her own accommodation, which cost about the same as a flat in central London.

The cost of living was about the same as in the UK - lower if buying local foods, higher if buying expensive imported products. A private car was way beyond her means, but Singapore has a well-developed, efficient public transport system and taxis are cheaper than in the UK. Clothes are also less expensive.

Da Silva was the only Caucasian woman in a staff of more than 1,100. She worked six days a week from about 8am to 9pm. "I needed a good dose of strength to keep my eye on the ball - and the ability to juggle 500 batons at the same time," she says.

She clearly revelled in the mixed culture of Singapore and was well aware of the competition from a well educated and experienced local work-force. "Asia is increasingly for the Asians," she explains. "It would be a mistake for a Brit to try to put a toe in the water in Singapore. One needs to be committed in both mind and spirit and be prepared to contribute to the culture. Otherwise don't go."

George Baird, executive sous chef, Kuala Lumpur Shangri-La Hotel, Malaysia

In 1992, after stints as a chef de partie at London's Savoy Hotel and senior chef de partie at the Dorchester, George Baird was starting to feel restrained by the formalised systems of large UK units. He even feared he was becoming stale.

So he circulated his details to several international hotel chains and struck gold. He was offered and accepted a position as junior sous chef with the Shanghai Shangri-La Hotel in China.

The differences between sophisticated central London and the bedlam of backward but fast-developing Shanghai were immense but Baird enjoyed his first experience of working abroad - he even met his wife at the Shanghai Shangri-La (she was one of the hotel's Chinese staff).

In 1994, he was transferred to the Shangri-La, Kuala Lumpur, bringing his wife and nine-month-old daughter with him. His contract was for two years, renewable by either side annually. Without a contract Baird would not be allowed to continue living and working in Malaysia.

Baird says his salary is about 25% higher than for an equivalent position in the UK. He also receives, like da Silva, one month's fixed bonus and a performance-related award that is usually worth two to three months' salary. His three-bedroom apartment and utilities (except telephone) are also paid for by the company and he gets 21 days' leave a year, with flights provided back to the UK for his family and himself. In addition, the family is covered by the company's health and dental scheme and Baird's daughter will eventually qualify for company-paid education.

This means Baird can save - and while saving he still enjoys a standard of living far higher than would be possible in the UK. His locally made Proton car cost about the same as a Ford Fiesta in the UK. But road tax is only about £25 a year and comprehensive insurance just £10. Local food is cheap, clothes cost far less than in the UK and Baird considers Kuala Lumpur to be safe and secure, although most of his family's socialising is within the expatriate community.

Sports facilities are good - he is in the hotel's football team - and a swimming pool is included in the amenities of his apartment block. The only downside is that the fast-growing population is stretching the city to the limit. Traffic jams are horrendous and the drainage system stinks - literally. Baird also admits to missing UK winters.

Hours of work

In the UK, Baird worked a five-day week of nine hours a day. In Kuala Lumpur, he works six days a week, starting at about 7.30am and rarely leaving before 10.30pm. He does not go home during the afternoons as he must be available if needed and believes he has to set an example to his staff.

Food and beverage staff total 180, serving 12 outlets. Baird's responsibility has increased - he is now definitely a trainer and not a trainee - but he says he has a much freer hand, is allowed to be more creative and clearly relishes working with new ingredients and different cuisine.

Although da Silva has returned to the UK, Baird is happy to stay in Asia and wants to further his career within the Shangri-La chain. In many ways, he embodies the quality da Silva highlights as essential for a Briton living and working abroad - a readiness to accept and contribute to an alien culture.

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