Written by Regina William
GEORGE TOWN: Dell Malaysia is offering a voluntary separation scheme (VSS) across the board to all 5,000-odd employees in Malaysia in line with efforts to reduce its global workforce by 10% or 8,800 jobs.
Late last month, Dell Inc announced a 48% decline in net income to US$351 million (RM1.3 billion) for the fourth quarter of its financial year 2009 (4QFY09) from US$679 million a year earlier.
Sources told The Edge Financial Daily that employees had been informed of the decision and had until the end of the month to make their decisions on whether to take up the offer.
When contacted, Dell Malaysia confirmed that under the Malaysian initiative, the VSS had been offered to all the 5,000 Malaysian staff on Penang island, Bukit Tengah in the mainland and Cyberjaya. However, the actual number of staff that Dell Malaysia targeted to let go is not known.
The Penang Manpower Department also confirmed that it had been informed by Dell of the VSS.
A Dell Malaysia spokesperson said the move was part of its efforts to reduce its global workforce. “This is part of Dell’s ongoing initiative to remain competitive by enhancing our efficiency and underlying cost structure. This action is a prudent and deliberate part of Dell’s ongoing focus on competitiveness.
“We recognise the impact that this action will have on employees, and are working to minimise consequences. Affected employees will be offered competitive severance packages, including career counselling and outplacement services. All actions will be consistent with applicable local laws and practices.”
Dell will, however, continue to hire people with specifically required skills and invest in areas that provide value to customers and enhance its capabilities, the spokesperson said.
“We are continuously reviewing our business model and taking actions that enhance our efficiency and underlying cost structure. We will adjust accordingly and prudently to remain competitive during and after the current challenging economic environment,” the spokesperson added.
During a conference call with Asia- Pacific journalists at the end of last month, Steve Felice, president of Dell’s small and medium business, said that the job cuts in Asia would be “minor” in the overall scheme of Dell’s global operations.
With a 16% decline in revenue for its fourth quarter ended Jan 30, rumours had been rife that Dell would close its facility in Penang or sell its operations to contract manufacturers. Dell is also said to have outsourced 70% to 80% of its operations in Penang.
Felice had said then that there would be no plant closures besides the two which were being closed in Ireland, shedding 1,900 jobs from April and another 800 to 900 jobs in Austin in the US.
However, on March 11, it was reported that an assembly plant in North Carolina would be next on Dell’s cost cutting moves resulting in more layoffs.
Meanwhile, apart from the planned layoffs, it’s business as usual for Dell.
In a statement yesterday, Dell introduced the new Adamo (derived from the Latin word meaning to fall in love) brand, with the launch of the world’s thinnest laptop, priced from RM7,399. It is available for pre-order at www.adamobydell.com with shipping to start March 26.
Thursday, March 19, 2009
Monday, March 16, 2009
Creditworthiness may be linked to looks: study
By Rebekah Kebede
NEW YORK (Reuters) - A credit score can tell a lender a lot about a prospective borrower, but so can the borrower's looks, a new study says.
People who are perceived to be trustworthy are more likely to have a higher credit score and pay lower interest rates on loans, and are less likely to default, according to the study by Rice University in Houston, Texas.
Even when hard facts such as credit scores are available, people rely on an assessment of trustworthiness to decide whether to make a loan.
"It turns out that if you look trustworthy, you're more likely to get a loan," said Jefferson Duarte, a professor of real estate finance at Rice University, one of the study's authors.
Duarte and co-authors Stephan Siegel and Lance Young, of the University of Washington in Seattle, studied members of Prosper.com, an online lending site where people looking for loans are matched up with individual lenders.
Each Prosper.com loan applicant submitted a profile which included credit and work history, education level, income and an optional photograph of themselves for lender review.
More than 6,800 loan applications, 2,579 loans and 12,200 photographs from Prosper.com were used in the study.
Duarte hired a team of 25 people to rate the applicants' trustworthiness on a scale of one to five using only the photographs of the borrowers. The team also judged the probability that the borrowers would repay a $100 loan.
Those judged to be trustworthy by the team were more likely to get a loan from Prosper.com lenders and tended to have a credit score about 20 points higher than those determined to be untrustworthy, the researchers found.
"Untrustworthy" borrowers were seven percent more likely to default on their loan than a perceived trustworthy borrower with the same credit score.
"There is an array of information that you can get out of the pictures," Duarte said, adding that Prosper.com borrowers use photographs ranging from family portraits to snapshots of their pets.
"The pictures are revealing something about the behavior of these people that is not taken into account in the credit score model," Duarte said.
To make sure that the evaluators' prejudices did not skew the results, the researchers controlled for race, age, gender, obesity, attractiveness and education, as well as financial factors like employment status, income and homeownership.
Understanding what determines trustworthiness may be relevant to the current economic crisis and be the key in restoring trust in the markets, Duarte said.
"People don't trust the markets right now. The people don't trust the banks, the banks don't trust themselves ... trustworthiness seems to be really important in every single transaction and we need to pay attention to this concept," he said.
NEW YORK (Reuters) - A credit score can tell a lender a lot about a prospective borrower, but so can the borrower's looks, a new study says.
People who are perceived to be trustworthy are more likely to have a higher credit score and pay lower interest rates on loans, and are less likely to default, according to the study by Rice University in Houston, Texas.
Even when hard facts such as credit scores are available, people rely on an assessment of trustworthiness to decide whether to make a loan.
"It turns out that if you look trustworthy, you're more likely to get a loan," said Jefferson Duarte, a professor of real estate finance at Rice University, one of the study's authors.
Duarte and co-authors Stephan Siegel and Lance Young, of the University of Washington in Seattle, studied members of Prosper.com, an online lending site where people looking for loans are matched up with individual lenders.
Each Prosper.com loan applicant submitted a profile which included credit and work history, education level, income and an optional photograph of themselves for lender review.
More than 6,800 loan applications, 2,579 loans and 12,200 photographs from Prosper.com were used in the study.
Duarte hired a team of 25 people to rate the applicants' trustworthiness on a scale of one to five using only the photographs of the borrowers. The team also judged the probability that the borrowers would repay a $100 loan.
Those judged to be trustworthy by the team were more likely to get a loan from Prosper.com lenders and tended to have a credit score about 20 points higher than those determined to be untrustworthy, the researchers found.
"Untrustworthy" borrowers were seven percent more likely to default on their loan than a perceived trustworthy borrower with the same credit score.
"There is an array of information that you can get out of the pictures," Duarte said, adding that Prosper.com borrowers use photographs ranging from family portraits to snapshots of their pets.
"The pictures are revealing something about the behavior of these people that is not taken into account in the credit score model," Duarte said.
To make sure that the evaluators' prejudices did not skew the results, the researchers controlled for race, age, gender, obesity, attractiveness and education, as well as financial factors like employment status, income and homeownership.
Understanding what determines trustworthiness may be relevant to the current economic crisis and be the key in restoring trust in the markets, Duarte said.
"People don't trust the markets right now. The people don't trust the banks, the banks don't trust themselves ... trustworthiness seems to be really important in every single transaction and we need to pay attention to this concept," he said.
The IKEA Sale is back
Written by Wong King Wai
PETALING JAYA: Did you know that a poll taken by IKEA found that 33% of home owners in Malaysia have not bought any furniture or home accessory for over 12 months? If you’re one of those who fall into that category, you may be glad to know that the very popular IKEA Sale is now on. From Feb 26 to March 22, loads of items are marked down to make way for new arrivals.
To help maximise your shopping time, shopping hours have been extended with the doors open from 9.30am to 10.00pm from Mondays to Thursdays and from 9.30am to 11.00pm from Fridays through Sundays.
For large ticket items which can’t fit into you car, they can be sent to your home for only RM50 per trip within the Klang Valley via IKEA’s Express Home Delivery Service. The normal price is RM65! Be sure to make the payment before 3pm at the Home Delivery Counter.
Furthermore, save 10% off IKEA’s sewing services when you purchase their fabrics. Found beyond the exit hall, the centre’s seamstresses will take your requests and before long, you’ll return home with curtains, blinds, sofa and cushion covers, and upholstery. They do alterations as well.
Lastly, IKEA Friends credit cardmembers enjoy a 0% installment payment plan for purchases as low as RM500 over six months. For purchases over RM1,000 you have the option to spread out the repayments across 6, 9, 12 or 24 months.
PETALING JAYA: Did you know that a poll taken by IKEA found that 33% of home owners in Malaysia have not bought any furniture or home accessory for over 12 months? If you’re one of those who fall into that category, you may be glad to know that the very popular IKEA Sale is now on. From Feb 26 to March 22, loads of items are marked down to make way for new arrivals.
To help maximise your shopping time, shopping hours have been extended with the doors open from 9.30am to 10.00pm from Mondays to Thursdays and from 9.30am to 11.00pm from Fridays through Sundays.
For large ticket items which can’t fit into you car, they can be sent to your home for only RM50 per trip within the Klang Valley via IKEA’s Express Home Delivery Service. The normal price is RM65! Be sure to make the payment before 3pm at the Home Delivery Counter.
Furthermore, save 10% off IKEA’s sewing services when you purchase their fabrics. Found beyond the exit hall, the centre’s seamstresses will take your requests and before long, you’ll return home with curtains, blinds, sofa and cushion covers, and upholstery. They do alterations as well.
Lastly, IKEA Friends credit cardmembers enjoy a 0% installment payment plan for purchases as low as RM500 over six months. For purchases over RM1,000 you have the option to spread out the repayments across 6, 9, 12 or 24 months.
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