IIp4-7_news.qxd 19/1/09 09:50 Page 7
News
05
India and China are Expats in Spain facing
leaders in offshore
hard times
services
Expat Brits could soon find them- burdens placed on services by
selves under attack in Spain as the some expats.
global credit crunch leaves locals Afterwards he told the Press
out of work, a Labour MP has Association: “Spain has been
IT research firm Gartner says current economic crisis,” contin-
warned. probably the most welcoming
that India and China continued ued Marriott.
Denis Macshane, a former country to foreigners in the whole
to remain undisputed leaders for During the last 12 months,
Minister for Europe, warned them of the EU, including 800,000 Brits.
offshore services in 2008. The there has been significant activity
to brace themselves for the sort of “But as Spanish unemployment
dynamic nature of the market, in many countries to grow their
attention given to Polish workers is rising faster than anywhere else
however, has seen countries such positions as leading locations for
in the UK. in Europe you will see the gradual
as Egypt, Morocco, Panama and offshore services. “As a result of
Mr Macshane told the Royal arrival of anti-foreigner feeling -
Thailand emerge as credible this, four countries have dropped
United Services Institute (Rusi) much as there has been anti-for-
alternatives. out of the ‘Top 30’ and have been
that he had not yet seen any evi- eigner feeling generated in Britain
Gartner assessed the suitability replaced by four that were just
dence of hostility but warned by the tabloids against the Poles
of 72 countries as offshore loca- outside the ‘Top 30’ 12 months
some were questioning the and Eastern Europeans.”
tions and has announced its ‘Top ago.”
30’ countries for 2008. The four countries leaving the
“Countries such as Mexico, ‘Top 30’ this year were Northern
Poland and Vietnam have contin- Ireland, Sri Lanka, Turkey and
ued to strengthen their position Uruguay.
Expat pensioners in Sri
against leading alternatives, while The new entrants into the 30
others have forced their way into leading countries for offshore
the ‘Top 30’,” said Ian Marriott, services were Egypt, Morocco,
Lanka to be registered
research vice president at Panama and Thailand.
Gartner. Gartner concluded that
“These countries will be seek- language skills, cultural
Steps are being taken to register poses a major issue since the
ing to take advantage of the compatibility, time zone and
all Sri Lankan pensioners who live Department of Pensions now send
opportunity created by the travel time were important
abroad by the country’s the pensions to their accounts
increased focus that many organ- considerations in determining
Department of Pensions. The directly, especially in the USA.
isations now have on cost opti- a country’s position in the
pensions of individuals who do In order to fill this loophole the
misation, as a result of the rankings.
not respond to the Department’s Department of Pensions is trying
queries will be temporarily sus- to distribute pensions through Sri
pended from January 2009. Lankan missions abroad, so that
Director General of Pensions K.A. there are minimal chances of
Thilakaratne said that there are cheating. Currently there are three
over 25,000 pensioners living ways that the pensioners can get
abroad. their salaries abroad: “One is
“Pensioners mainly live in five through the crowned agent who
countries; Australia, India, the charged us £5.50 for each pension
United Kingdom, the United he handled. We stopped that sys-
States and Canada. In these coun- tem from this year. The other
tries there are over 18,000,” he method was the pension
said. “Out of the 25,000 almost allowance paid to approximately
20,000 take their pensions via a 500 people in Karnataka, Kerala
commercial bank, and most of and Tamil Nadu. And the other
these accounts are joint accounts. method is through commercial
In recent times we have discov- banks,” said Thilakaratne.
ered that there is a lot of cheating “The problem is that we have
going on. not done a proper assessment of
“So this step was taken to stem the pensioners who reside abroad.
such activities,” he added. We don’t even have the addresses
Although the pensioners are of over 80% and even the address-
required to send these banks a life es we have are quite outdated,” he
certificate certified by a lawyer or said. “So we have decided to hold
the Sri Lankan mission in the a census on all pensioners who
respective countries, many banks live abroad. I have already sent
do not strictly adhere to this prac- 500 data entry forms but only 77
© Ratluk
tice, continued Thilakaratne. This have been returned,” he added.
www.investmentinternational.com January 2009 Investment International
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