AFP

Inside the bowels of a Hong Kong industrial building, Eric Pun was among two dozen people crammed into a classroom learning to drill holes — acquiring a new set of skills before heading abroad.

Savvy businesses have started offering crash courses in subjects like home repair and hairdressing, capitalising on a wave of people departing Hong Kong as China cracks down on dissent and strict pandemic rules upend the economy.

For Pun, a 35-year-old nurse emigrating to Australia with his family, taking the home repair class was both a practical cost-saving measure and a way to prepare mentally for the unknown.

“In Hong Kong, if there is a problem you can go to the property management office or hire someone from the mall… but when my family lives in a house, I’ll have to rely on myself,” he told AFP.

Spending a day at Renobro, one of the handful of companies offering home-repair lessons, costs HK$1,980 ($250) and courses are fully booked weeks in advance, according to company co-founder and instructor Lau Chun-yu.

“More than a thousand people have participated in our course,” Lau said.

“When we first started, we didn’t expect so many people would be emigrating.” 

Lau said his students, who are mostly in their thirties and include doctors and teachers, race through a one-day syllabus of more than 40 skills, such as caulking, plastering and rewiring appliances.

“Most of them aren’t well-prepared, but… they hope to go over as soon as possible,” he said, citing fears that foreign countries may tighten immigration controls in the long run.

– Brain drain –

Hong Kong is currently experiencing an exodus of local and foreign talent.

Many residents have baulked at Beijing’s sweeping crackdown on dissent following huge and sometimes violent democracy protests three years ago.

Stringent zero-Covid rules also remain in place two and half years into the pandemic, restricting daily life and isolating the city internationally.

Latest census figures showed a record dip in Hong Kong’s population, which fell 1.6 percent to 7.29 million compared with a year earlier. The labour force has plunged to 3.75 million, the lowest in nearly a decade.

Many of those leaving are families with school-aged children. 

Official primary school figures released earlier this month showed there were 70 fewer classes across 60 schools this academic year. More than 4,000 teachers have left their jobs in the past school year.

The United Kingdom became one of the most popular destinations for Hong Kongers after it announced a visa scheme that provided a pathway to citizenship, arguing Beijing had abandoned its pre-handover promise to allow residents key freedoms and autonomy. 

So far more than 140,000 people have applied under the British scheme since it was launched in January 2021.

Other common choices for relocation include Canada, Australia and the United States, mirroring a similar wave of emigration that occurred ahead of Hong Kong’s 1997 handover from Britain.

– ‘I want to be equipped’ –

Despite their optimism for life overseas, many would-be emigrants told AFP they were worried about job prospects and wanted to learn more skills as insurance.

Fashion retailer Kimi Chau, 35, took a series of hairdressing classes in preparation for her move to Britain along with her husband and five-year-old.

“I want to be equipped for a job after I’ve arrived… If I could learn more skills before I leave, then if the opportunity came along for me to open up a business, I would be more confident,” she told AFP.

Chau said her concerns about Hong Kong’s education system amid a shifting political climate drove her to leave.

“Because I have a kid, the issue felt closer to home and I didn’t take a long time to decide.” 

On a sweltering August afternoon, Chau and other hairdressing students brought along friends and family members to the salon where they took their classes for an informal graduation ceremony and a bittersweet farewell.

Instructor Jason Yip said the hairdressing industry has a relatively low entry threshold and Hong Kongers can get a job quickly, adding that roughly one-third of his students plan to emigrate.

Yip added that many of his students appreciate the social dimension of hairdressing, as a way to stay close to family members and to connect with like-minded Hong Kongers.

“For them, (hairdressing) can become a kind of hobby, and they are quite happy to have it after arriving in a new place,” Yip said. 

“That kind of joy is shared and there is a sense of achievement.”

Sitting on the side of a Jakarta road anxiously waiting for his phone to ping, driver Muhammad Ridwan says it is now barely worth hurtling through thick smog every day to ferry passengers.

A 30 percent hike in fuel prices spurred hundreds of drivers of the most popular ride-hailing apps to hold protests across Indonesia as they struggle to make ends meet.

“I sometimes don’t eat a proper meal the whole day to allocate my cash for fuel. If I don’t have fuel, how can I work?,” asked Ridwan, a contractor for Gojek — which alongside Singapore’s Grab is among Asia’s most valuable start-ups.

The drivers operate in an unregulated market and critics say the firms exploit them as “partners” or contractors, taking large cuts of their daily income.

To cut Indonesia’s deficit during rising global inflation and soaring energy prices due to the war in Ukraine, President Joko Widodo slashed fuel subsidies.

It pushed the price of Petralite — Indonesia’s cheapest fuel choice — from about 7,650 rupiah (50 cents) to 10,000 (67 cents) per litre.

– ‘Cannot accept’ cost –

On-demand drivers say the two ride-hailing giants have only hiked fares slightly — to the tune of 800 rupiah (5 cents) per kilometre — to cover the additional costs.

Both Gojek and Grab told AFP they imposed a rate change in line with government regulation.

Gojek, which earlier this year merged with e-commerce platform Tokopedia in a multibillion-dollar deal, said the objective of the rate change was to “support driver partners”.

Grab said it was “designed to protect and maintain our driver-partners’ welfare”.

They both declined to disclose the rate increase but union leaders said it fell short of drivers’ expectations.

“Drivers across Indonesia cannot accept the fare adjustment,” said Igun Wicaksono, who heads a union of more than 100,000 drivers.

On a good day, drivers can earn up to 150,000 rupiah ($10). But where a re-fuelling stop once cost 20,000 rupiah ($1.35), it can now cost up to 35,000 rupiah ($2.35).

Drivers sometimes have to refuel twice in a shift, leaving them with a threadbare profit.

– ‘Don’t just throw promises’ –

More competition from cheaper delivery apps is adding further pressure on Gojek and Grab drivers, leading to fears they won’t be able to provide for their families.

“It significantly burdens me whenever I buy fuel these days,” said 38-year-old Grab driver Iwan Nur Akbar, who had waited an hour for an order to ping on his phone.

“Thankfully I can still afford food for my family as we regularly get rice from government schemes,” he said.

The gig economy, with its complex rewards-based system, has been in the spotlight globally in recent years with workers in several countries holding protests against their tech employers. 

Anger was already bubbling in Indonesia before the fuel price hike with claims of unfair practices and poor working conditions.

In July, one driver sewed his lips shut to signal how drivers’ concerns on go unheard.

Gig drivers warn that the lack of action could result in mass protests across the country. So far, protests have been limited to a few hundred, and met with a huge deployment of around 8,000 police officers in Jakarta.

With Grab and Gojek accounting for more than four million drivers, that is a daunting prospect for the government.

“Don’t just throw promises,” said Gojek driver Saiful Ridwan, 38, referring to government assurances of help as he waited outside Jakarta’s Pasar Senen wholesale market.

“Don’t let poor people become poorer.”  

Asian markets dropped at the open on Friday, tracking Wall Street losses as investors continue to exhibit concern over persistently high global inflation and the likelihood of further interest rate hikes.

Major markets in Tokyo, Shanghai, Hong Kong and Sydney opened lower, in line with overall market sentiment ahead of a decision from the United States Federal Reserve next week.

Asian stocks look set to extend their weekly declines into a fifth straight week, following on from continuing weakness in US and European equities.

Wall Street’s three main indices rallied briefly on Thursday, but the gains fizzled, with traders taking little comfort from US President Joe Biden’s announcement of a tentative deal to avert a potentially damaging railroad strike.

The broad-based S&P 500 fell 1.1 percent Thursday and London rose less than a tenth of a percent, but both Frankfurt and Paris fell.

The Nasdaq was particularly weighed down by Adobe, which dropped a precipitous 16.9 percent after agreeing to acquire Figma, an Internet-based collaborative design platform, for $20 billion in cash and stock.

All eyes remain on the Fed, which has already instituted two consecutive 75-basis-point hikes and is widely expected to carry out a third. 

On Thursday, US retail sales data showed a surprising increase in August, but the report also downgraded sales in the month prior, tempering the good news.

Weekly US jobless claims retreated once again, and industrial production fell modestly in August.

The new data was not enough, however, to offset the widespread bearish sentiment following higher-than-expected US inflation data released earlier in the week, which showed yearly inflation slowing by less than forecast and monthly inflation rising.

– Fed expectations –

Analysts expect the Fed to continue raising interest rates, in a bid to cool an overheating economy and combat sky-high inflation, which remains near decades-highs in major economies.

“Because of the dramatic rise in Treasury yields, the Fed is going to have to keep raising rates beyond (next week),” said prominent investor Louis Navellier in his podcast on Thursday.

“I think they might now raise rates in November just before the (US) midterm elections and possibly December.”

Other commentators echoed that view, with OANDA’s senior market analyst Edward Moya addressing the concern that further hikes could send the world’s largest economy into a recession.

“The latest round of data suggest the Fed can stick to aggressive rate hikes as the labour market remains strong and as the economy slowly softens,” he said.

“The risks of the Fed sending the economy into a severe recession are growing but right now the data doesn’t support that argument.”

Now that the data is in, markets are fully focused on the Fed’s decision as their next potential pivot, said Fiona Cincotta, senior financial markets analyst at City Index.

“This is a market waiting for the next catalyst,” she told Bloomberg News. 

“What we saw in the selloff on Tuesday is the repricing of expectations of the Fed. Until we really hear from the Fed we are not going to get a very clear direction.”

– Key figures at around 0230 GMT –

Tokyo – Nikkei 225: DOWN 1.1 percent at 27,567.75 

Hong Kong – Hang Seng Index: DOWN 0.7 percent at 18,798.57

Shanghai – Composite: DOWN 0.9 percent at 3,169.73

New York – Dow: DOWN 0.6 percent to 30,961.82 points (close)

London – FTSE 100: DOWN less than 0.1 percent at 7,274.08 (close)

Euro/dollar: DOWN at $0.9995 from $0.9997 

Pound/dollar: DOWN $1.1461 at from $1.1472 

Euro/pound: UP 87.22 pence from 87.14 pence 

Dollar/yen: DOWN at 143.29 yen from 143.45 yen 

Brent North Sea crude: UP 0.3 percent at $91.13 per barrel

West Texas Intermediate: UP 0.3 percent to $85.33 per barrel