biz.hk Nov 2011 by The American Chamber of Commerce in Hong Kong

Journal of The American Chamber of Commerce in Hong Kong

www.amcham.org.hk

ion

November 2011

COVER SPONSOR

w w w. a m c h a m . o r g . h k

Over 500 pages in three major sections, including a complete guide to chamber services, corporate sponsors and AmCham Charitable Foundation. This directory lists nearly 1,900 members from over 700 companies and organizations. ISBN 978-962-7422-03-7

LC 98-645651

November 2011

Contents

Vol 43 No 11 Richard R Vuylsteke

Editor-in-Chief Daniel Kwan

Assistant Editor Kenny Lau

COVER STORY

TRADE & INVESTMENT

CHINA BUSINESS

WOMEN OF INFLUENCE

The Hong Kong Trade Development Council will host the 10th International Licensing Show in January. Is Hong Kong poised to become a strategic hub of intellectual property trading that will be an essential part of a transformation in which innovation & technology becomes one of six key sectors supporting Hong Kong’s knowledge-based economy?

US President Barack Obama announces a new law allowing US business travelers to access APEC economies more freely and quickly at the recent Asia-Pacific Economic Cooperation CEO Summit

Two authors, former AmCham chairman Paul Cheng and China correspondent for the Wall Street Journal Tom Orlik, discuss in their new books on a common but complex subject: understanding China

AmCham/SCMP WOI Conference & Awards continues to effect positive change in the community on the issue of gender diversity by honoring dedicated leaders for their professional achievement and social engagement

Publisher

Advertising Sales Manager Regina Leung

AMCHAM NEWS AND VIEWS

biz.hk is a monthly magazine of news and views for management executives and members of the American Chamber of Commerce in Hong Kong. Its contents are independent and do not necessarily reflect the views of officers, governors or members of the Chamber.

Advertising office 1904 Bank of America Tower, 12 Harcourt Rd, Central Hong Kong Tel: (852) 2530 6900 Fax: (852) 2537 1682 Email: amcham@amcham.org.hk Website: www.amcham.org.hk

06 New Business Contacts

Printed by Ease Max Ltd 2A Sum Lung Industrial Building, 11 Sun Yip St, Chai Wan, Hong Kong (Green Production Overseas Group) Designed by Overa Creative Co Rm A, 12/F, Sun Fai Comm Bldg, 576 Reclamation St, Mongkok ©The American Chamber of Commerce in Hong Kong, 2011 Library of Congress: LC 98-645652

12 Passing the Magic Wand

Chairman’s Memo Rob Chipman announces members of AmCham’s Board of Governors for 2012 and heartily thanks current governors whose terms expire at the end of 2011 for their dedication and tremendous contribution to the Chamber

Walt Disney Imagineering’s Joe Lanzisero talks about the opening of Toy Story Land in Hong Kong and the first design competition held outside of the US for local talent eager to become part of the Disney magic

TRADE & INVESTMENT

21 executives joined AmCham’s business network last month

16 Obama Signs APEC Business Travel Bill A newly passed law will allow US business travelers to access participating nations and territories in the Asia Pacific region more freely and quickly

37 Mark Your Calendar

CHINA BUSINESS

COVER STORY

07 Walk the Talk: Turning Hong Kong into an IP Trading Hub

18 On Equal Terms

How IP trading will be an essential part of a transformation in which innovation & technology becomes one of six key sectors supporting Hong Kong’s knowledge-based economy

Former AmCham chairman Paul Cheng in his new book discusses issues in China’s vast economy and tackles some of the widely held misconceptions about China’s relationship with America and the West

20 Understanding China’s Economic Indicators China correspondent for the Wall Street Journal Tom Orlik shares his expertise in analyzing China’s economic statistics and examines how investors can turn data into business opportunities

WOMEN OF INFLUENCE 26 AmCham/SCMP Present Awards at the 8th WOI Conference Inaugurated in 2003 as a platform to recognize dedicated leaders and to draw attention from the community on the issue of diversity, the annual conference continues to effect positive change in the role and representation of women

30 Winners of WOI 2011 Awards Profiles and personal stories of award recipients in five categories honoring their professional achievement, influence and social engagement in the field of gender diversity at the workplace

10 Step Up to the Plate – and Win Big James Malackowski, CEO of Chicago-based IP merchant bank Ocean Tomo, explains in a conversation his vision of turning intellectual property into a leading asset class as well as his business plans for Asia

For comments, please send to biz.hk@amcham.org.hk Single copy price HK$50 Annual subscription HK$600/US$90

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COVER SPONSOR

Board of Governors Chairman Robert Chipman Vice Chairman James Sun Treasurer John Sigalos Executive Committee Frank Lavin, Anita Leung Belinda Lui, Charles Wellins Governors Sara Yang Bosco, Brian Brenner, Tom Burns, Janet De Silva, Rob Glucksman, Peter Levesque, Charles Ma, Toby Marion, Ross Matthews, Andrea Richey, Catherine Scown, Leland Sun, Colin Tam, Elizabeth L Thomson, Richard Weisman, Frank Wong, Shengman Zhang Ex-Officio Governor President

David L Cunningham Jr Richard R Vuylsteke

Chamber Committees AmCham Ball Apparel & Footwear Business Briefing China Business Communications & Marketing Corporate Responsibility

Kay Kutt Andre Leroy Don Meyer Wendy De Cruz

Energy Entrepreneurs/SME Environment Financial Services

Sean Purdie Donald Austin Bradley Punu Kuresh Sarjan Catherine Simmons Peter Johnston Hanif Kanji Ross Matthews

Food & Beverage Health & Wellness Hospitality & Tourism Human Capital

Susan Reingold Ed Ahnert

Noble Coker Peter Liu

Information Technology & Telecom Rex Engelking Intellectual Property Gabriela Kennedy Amy Lee Law Eric Szweda Pharmaceutical Stephen Leung Real Estate Brian Brenner Senior Financial Forum Alvin Miyasato Senior HR Forum Brian Chitester Sports & Entertainment Ray Roessel Taxation Evan Blanco Trade & Investment Patrick Wu Transportation & Logistics Brian Miller Women of Influence Jennifer Van Dale Lee Georgs Young Professionals Roger Ngo

Rob Chipman Chairman

Dear Members,

Chairman’s Memo

As I take pen in hand to write to you again, it is nearing Thanksgiving. Christmas and New Year’s will be right around the corner. Where does the time go? AmCham’s Nomination Committee, headed by Professor Steven DeKrey of HKUST, presented its recommended slate of new board members and leadership earlier this month. I am pleased to report that the Committee’s recommendations were unanimously approved and I welcome and congratulate the following members whose terms will continue or begin in 2012: James Sun, Chairman Richard Weismann, Vice Chairman Peter Levesque, Treasurer Evan Auyang, Sara Yang Bosco, Nicholas de Boursac, Brian Brenner, Tom Burns, Janet De Silva, Walter Dias, Rob Glucksman, Frank Lavin, Anita Leung, Philip Leung, Belinda Lui, Toby Marion, Thomas Nelson, Andrea Richey, John Sigalos, Colin Tam, Elizabeth L. Thomson, Alan Turley, Frank Wong, and Shengman Zhang (Governors) I would also like to thank most sincerely Leland Sun, Ross Matthews and Catherine Scown whose terms as Governors expire at the end of 2011, and in accordance with AmCham rules, will now step down from our board. If I can make a quick detour to a personal note: After just starting my 26th year living in Hong Kong, I finally mustered up the courage to tackle the Oxfam Trailwalker. I started with three friends at 12:30 pm and – yes, amazing as it sounds – we finished 37 hours and 43 minutes later. It poured down rain as darkness fell and right as we reached stages 3 & 4, the hardest rated of the ten segments. In addition to rain, we had to contend with stifling humidity so what I expected to be difficult was downright diabolical. This is my best effort to excuse why it took so long, but finish we did and I’m happy I did it. Best of all, my team raised more than HK$56,000 for Oxfam and their fight against poverty in developing countries. This month’s biz.hk has several special features that I think you will find interesting including interviews with Peter Cheung, Raymond Yip and James Malackowski regarding the prospect of Intellectual Property trading in the region. Hong Kong is one of the cities in this part of the world that aspire to become a leading trading hub for intellectual property (patents, copyrights, and trademarks). If successful, it would be a major boost to our city’s plan to develop innovative and creative industries. That, in turn, helps assure our continued competitiveness in the future global economic arena. One of AmCham’s key events is our support and sponsorship for the Women of Influence (WOI) awards. Organized in conjunction with the South China Morning Post, WOI recognizes outstanding women in the local community and I would like to congratulate all the winners this year for their remarkable achievements and contribution to the society. I know you will find the articles interesting so I encourage you to have a look. AmCham has been a strong supporter of the continued evolution and development of Hong Kong as THE regional education hub. Professor DeKrey, our chairman in 2008, did much to

advance this cause, and this month we feature two topical articles: one dealing with why overseas business schools look to Hong Kong to set up in Asia, and the future plans of the GMAT exam. AmCham’s board is fortunate to have the knowledge and experience of Janet De Silva, Dean for Ivey Asia at Richard Ivey School of Business. Janet has led the AmCham efforts to bring attention to the acute shortage of international school spaces to the HK Government. These are just two examples of AmCham’s educational initiatives, and more are sure to come. You can read more on this in the special Business and Professional Education supplement in this month’s magazine. I’d like to thank Evan Blanco, chairman of our Tax Committee and Richard Weisman of our board on their continued efforts to keep us updated on the battle being waged in Washington DC regarding changes to the US tax code. There are both corporate as well as personal tax issues that are vital to our members, and between Evan and Richard, we have some of the best talent in the industry championing our cause, and keeping us informed. I will have the pleasure of writing to you one last time next month before I step down as your chairman, and make way for James Sun who I know will be an outstanding leader. In the meantime, on behalf of the governors and staff of the Chamber, let me wish you a wonderful holiday season. I hope to see you at an AmCham event in the near future.

Rob Chipman Chairman

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COVER STORY

New

Business Contacts

Walk the Talk–

The following people are new AmCham members: Accenture Co Ltd Russell Trotter Senior Manager

Citi Richard Straus Head, Family Office and Institutions

DHL ISC (Hong Kong) Ltd Garrick Pold Global Head, International Supply Chain

ESP International Jesse Sawyer Global Lab Manager Brien Whitford VP of Supply Chain & Global Operations

FunRaising Events (Asia) Ltd Natalia Sierant Head of Business Development Sabrina Behm Key Account Manager Olivia Lee Head of Operations

General Electric International, Inc

Korn/Ferry International Patricia Wong Principal

Leading Organisations International Co Ltd Mitya New Managing Director

Building Hong Kong into an IP Trading Hub

MRI Software, LLC Steve Tay Sales Director, Asia Dan Whitaker Managing Director, Asia

By Daniel Kwan

SAS Institute Ltd Alex Wong Managing Director

eter Cheung, head of Hong Kong’s Intellectual Property Department, has a vision. If his vision comes true, a lot of us could become richer, and perhaps, even more creative. His vision is that Hong Kong becomes the intellectual property trading hub for Asia. Sounds simple? Isn’t innovation & technology one of Hong Kong’s six new industries to build a knowledge-based economy? Shouldn’t IP trading be an essential part of that great transformation? Hong Kong is well-known for its protection of intellectual property. Over the years, Hong Kong’s Customs & Excise Department, Intellectual Property Department, and Trade and Industry Department have all been credited for a job well done in law enforcement and promoting the value of IP. In January next year, the Trade Development Council will host the 10th International Licensing Show, which is expected to draw hundreds of licensors, licensing agents, and brand owners from around the world to Hong Kong. So isn’t Hong Kong already a trading hub?

Sinogo Limited Tobi Doeringer Director

Tesla Motors HK Limited Kenneth Lui Sales Manager

Todd Davock Executive Director, GE Capital

German Swiss Int'l School Angela Hui Director of Development and Alumni Affairs

HKFWMA Gilbert Hung Chairman Billy Lee CEO

Hogan Lovells Gabriela Kennedy Partner

IPPF Independent Power Producers Forum

percent of their value components are in the intangibles – trade rights, patents, copyrights, designs and trademarks,” Cheung tells biz.hk in an interview. “This is good evidence that for successful economies it is very much based on the intangibles rather than the tangibles nowadays.” Although trading of IP has been practiced in Hong Kong for a long time, transactions are mostly private and almost exclusively one-to-one. The International Licensing Show and other trade fairs run by the HKTDC such as FILMART are perhaps the most open “platforms” for trading in Hong Kong. Despite calls from some industry practitioners, Hong Kong has yet to take any active steps to build an organized, structured and open trading platform. When the government launched a public consultation to review the patent system in October, IP trading is not included as an issue for discussion. “What the big enterprises are doing is that they are doing that privately and there has not been an open and transparent, free and non-discriminatory IP trading

Trading intangible

Bruce Yung Co-Chair, Renewable Energy Chapter

Yes and no. Hong Kong has been at the forefront of trading of IP – copyrights, patents, trademarks, designs – for many years. However, the marketplace has undergone remarkable and rapid changes. According to Cheung, as far as Hong Kong is concerned, the good old days of trading and commerce of tangibles is pretty much over. “If you look at the big enterprises in the world, 80

Peter Cheung

View our other members at:

http://www.amcham.org.hk/index.php/AmChamMembers.html

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platform,” the IP chief of the Hong Kong government says. “That’s why I think Hong Kong can play a role … We practice the rule-of-law, have a low tax system, don’t have foreign exchange control, and we are bilingual too.”

Building platform The HKTDC shares Cheung’s vision. Organized by the leading trade promoter and sponsored by Cheung’s department, the Business for IP (BIP) Asia Forum will be held at the Hong Kong Convention and Exhibition Centre on December 2, in an effort to nudge the industry to take the lead to develop IP trading. Raymond Yip, Assistant Executive Director of HKTDC, says that their vision is to foster a “many-tomany” trading platform in Hong Kong. “As a marketer, the HKTDC will play our part and we hope that, through the BIP conference, we can attract 400 to 500 audience from around the world.”

Raymond Yip

“We hope to raise people’s interest and put Hong Kong on the map of IP trading,” he adds. But Yip notes that while the HKTDC is eager to get into the act, it can’t be the director and actor at the same time. “HKTDC is a promoter and marketer but we are not the producer. So somehow someone has got to produce the products first and then we can market the products,” he says. “Who should be building the platform? I think it should be left to the industry to think about that,” he adds. “Obviously, it is not necessarily that the government should do it but someone – the industry – would have to come forward and build such a platform.” “Through the forum, we hope to inspire the industry so that they will get together and try to develop something on a commercial basis,” the HKTDC Assistant Executive Director says. “Initially there may be some calls for government’s facilitation and HKTDC will definitely be pleased to play our part of promotion. Once it (the platform) is up and running, we will be very pleased to promote it internationally. But we must have the product first.” The urgency to act is also highlighted by James Malackowski, CEO of Oceam Tomo, the world’s

leading IP merchant bank. According to him, there are plenty of competition out there who are prepared and ready to come and tap into Hong Kong’s market if the city doesn’t act quickly. Shanghai and Tianjin have both established their own IP exchanges and Shenzhen is already teaming up with Ocean Tomo (see sidebar). Singapore, which is often cited as Hong Kong’s closest rival, is actively courting IP investors and businesses. “There are several regions in China that are actively looking to develop IP marketplaces,” says Malackowski. “Shenzhen has some attractive characteristics to it such as the concentration of technology companies and they have what they would call a special zone for technology development which we think will help accelerate the growth of the IP market.”

China edge Cheung of Hong Kong’s IP Department recognizes the challenge too and he calls for support from the private sector to kick start the building process. “I am trying to develop this concept of IP trading but I need the help from the private sector,” Cheung says. “I can’t be a government broker and I need people – the professionals – to help.” In face of the competition from rivals such as Singapore, Cheung however contends that Hong Kong enjoys a unique advantage. “We are in advantageous position compared to Singapore because we are not just a gateway to China but we are a part of China,” he points out. In addition, with the concentration of Hong Kong manufacturers in the Pearl River Delta, a partnership between Hong Kong and Guangdong to jointly develop IP trading certainly makes a lot sense, according to the IP chief. What’s more important is Cheung’s “one-in-amillion” theory. He says the potential of IP market in China is enormous given the size of its population. Even if only “one-in-a-million” of its inventions were genuinely creative, it would mean huge business opportunities. The China card can play both ways too, Cheung believes. As far as IP is concerned, Hong Kong also leads the Mainland in areas such as law enforcement and protection. And Hong Kong is a leading international financial centre after all.

System works Benjamin Bai, head of Allen & Overy’s intellectual property practice in China, agrees that China has a perception problem as far as IP protection is concerned but also cautions western businesses that

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they would have much to lose if they failed to see through the stereotypes and misconceptions. The China-born and US-educated lawyer points out that despite all the negative publicity in the West, China does have a legal system and IP protection that work. “This is the question I ask a lot of times. But with 42,000 [IP] cases filed [in China] last year and 95 percent of them involved only Chinese parties, what does that tell you? It tells you that a lot of Chinese go to courts to fight about their IP issues. If they don’t believe the system works, why would they go to court?” Bai asks. “Ok, the cynical view is that they all bribe the judges – but that’s obviously not the case.” “And 60-90 percent of the time, the plaintiffs [of these cases] are winning and you can’t tell me this is not a system that works. It is already working and the question is how to take advantage of it. China has a legal system that works and that’s my opinion which is extremely few. A lot of people don’t share my view.” Bai further points out that the real picture of IP protection in China often got hijacked by the rampant counterfeiting problem that is happening in the entertaining and software fields. “There are some die-hard misconceptions that just won’t go away. People say that look at counterfeit DVDs and pirated software and it’s a lost battle – which I totally agree,” Bai adds. “When it comes to pirated software and DVDs, it’s a lost battle. But when you look at hardcore technology, there is a way to address infringement [in China] and I don’t believe it is a lost battle.”

Hong Kong strength David Buxbaum, a veteran lawyer with Anderson & Anderson LLP in Guangzhou, says China still needs to do a lot to improve its legal system in spite of significant progress made in the past three decades. “Respect for intellectual property in China 30 years ago was probably not nearly as strong as it is today because today you have many Chinese firms and corporations that are registering their trademarks, patents and their own designs,” says Buxbaum who is the first American lawyer invited to China to represent American business interests in 1972. “Secondly, there is a lot of education about the value of intellectual property. So obviously, there is now much higher awareness of the importance of intellectual property.” Nevertheless, Buxbaum says China still has a long way to go to build up a healthy IP culture and system. “There is no question that the Chinese government has spent a lot of efforts to enforce intellectual property laws but the fact of the matter is that piracy is still rampant,” says Buxbaum who is also Chairman of

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the Intellectual Property Committee of AmCham South China. “In some Chinese cities, there is absolutely no intellectual property enforcement at all and the matter of piracy in China is enormous and systemic.” Compared with the Mainland, Buxbaum says Hong Kong clearly leads in the area of rule-of-law and the high quality of its legal profession. “The judiciary in Hong Kong is way above that in China,” he says. “Secondly, in terms Benjamin Bai of the sophistication of its practitioners, I would say that there are many very good young lawyers in China but still in Hong Kong, you have counsels who have been around for a very long time and they are very sophisticated in their legal work.” Bai of Allen & Overy recognizes that Hong Kong does have an edge in developing IP trading – the city’s financial sector – but it is lagging behind the Mainland in terms of innovation and technology. “China is going to emerge as one of the strongest innovation countries in the next 10 years assuming there is no political problem or hard landing of the economy which I doubt will happen,” Bai believes. “Assuming that China will go down the path that it has gone down in the past 10 years and if you extrapolate that, then China is going to be an innovation country in 10 years.” “Hong Kong can still be a platform for IP trading because the financial system is very well developed and I think in terms of executing the logistics of trading, Hong Kong still has an edge over Mainland China,” he adds.

Sky the limit That will be excellent news for Cheung of the Hong Kong government. The IP chief in fact is wasting no time. In spring – and following the success of the December conference, he is hosting a joint symposium with the authorities in Guangdong in Foshan and the topic of discussions, guess what – IP trading. In the meantime, Cheung is keeping him and his colleagues busy as he works step-by-step to realize his vision. And he has a long wish list: a standard template for IP listing, a virtual trading platform, and perhaps a real “exchange” a few years down the road. But for now, Cheung has set his eyes on some tangible things first. “What we need are some quick success stories,” he says. “After that, perhaps the sky is the limit.”

Step Up to the Plate –

And Win Big

ames Malackowski is no less than a visionary. The CEO of the Chicago-based IP merchant bank Ocean Tomo thinks big and aims high. According to him, the world intellectual property market is experiencing sea changes and whoever recognizes the potential of these changes – and stand up to face them – will win big. He talks to biz.hk about what he foresee will happen in the next five years and Ocean Tomo’s plan in China.

biz.hk: What is Ocean Tomo’s mission? Malackowski: Ocean Tomo was founded on a vision that intellectual property would become a leading asset class. When we started in 2003, we were probably too early and what we’ve seen over the last eight years, it is that the market has really come to us. We are now incredibly excited that we are at the tipping point of the market for intellectual property. We look to the next five years as a fundamental transformation of business perspective on intellectual property as an asset. biz.hk: Can you explain the tipping point part? Malackowski: If you go back 25 years, it was not even considered possible to value intellectual property. Ten years later that was common place. Five years after that, it was actually considered reasonable to sell your intellectual property in a private transaction. Three or four years after that, the auction market developed and was considered reasonable to sell your intellectual property in an open environment. Now we see the launch of traded intellectual property on an exchange platform. So the compression between each stage of development is getting shorter and shorter. Each stage of development is getting to have greater impact. So we see the launch of an exchange as that tipping point where intellectual property would now become efficient enough so that investors can invest and corporations can seek to maximize overall value. biz.hk: What drives you to do all this? Malackowski: That’s the entrepreneurial dilemma. You see the vast market opportunity and you see there’s an opportunity that’s not being served. You are driven to be first. That’s the impetus for Ocean Tomo. That’s an experience that I have several times in my career. I started my first business when I was 24 years old to appraise intellectual property when no one else would do so. So imagine a 24-year-old kid knocking on the door of the

blended index because our goal is to show the value of intellectual property globally. Once we have that index, there are the possibilities of developing new financial products.

largest companies saying ‘let me help you with your most valuable assets’. I don’t think what we did at Ocean Tomo is quite as bold as what we did in the 1980s. biz.hk: What will happen to this IP marketplace in the next five years? Malackowski: I can give you a few key points that I think are critical that will develop in the next five years. First, there will be recognized accounting standards for IP valuation globally. WIPO – World Intellectual Property Organization – and Licensing Executives Society are going to announce a basic prima on IP valuation in January at the LES Global Technology Impact Forum to be held in Geneva. We think that’s a critical first step. The second step is that markets will open in the US with relationship in Europe and Asia to initiate global trading platform in the next five years. The third is the objective quality standards that exist in the US today will be replicated in other parts of the world which will allow companies and investors to quickly compare portfolio quality. Those three steps – valuation standards, a globally connected trading platform, and quantitative objective ratings – are keys to market development. All three of those will happen in five years. biz.hk: What are Ocean Tomo’s plans in Asia and China in particular? Malackowski: We have been actively exploring an anchor partner in Asia for some time. Frankly, I believe that if that wasn’t for the economic downturn in 2008, we would have already had that. Part of my visit on this trip is to meet with representatives of Hong Kong Trade Development Council. Yesterday, I was meeting with Innovated Technology Property Exchange (ITPE) in Shenzhen which we already have a relationship. We look to the Chinese market and Hong Kong as a gateway to that market to be a significant opportunity.

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biz.hk: Can you tell us more about the partnership with ITPE? Malackowski: ITPE and Ocean Tomo signed a cooperation agreement in May and we are working towards market development activities around IP valuation standards and IP investment products. Here again, we hope to announce progress at the LES GTIF meeting in January. biz.hk: Why ITPE? Malackowski: There are several regions in China that are actively looking to develop IP marketplaces. Shenzhen has some attractive characteristics to it such as the concentration of technology companies. They have what they would call a special zone for technology development which we think will help accelerate the growth of the IP market. biz.hk: Is the cooperation with ITPE focused on valuation of IP? Malackowski: Currently it is focused on valuation services as well as trying to develop indexes of public company stocks that own high-value IPs to demonstrate the contribution of IP makes to business growth. biz.hk: Will it be something similar to an equity index? Malackowski: The example we used is the Ocean Tomo 300 which is an index listed on the New York Stock Exchange (OTPAT) which is a collection of 300 companies owning strong patent portfolios. biz.hk: Is the cooperation with Shenzhen about developing an index of only Chinese companies? Malackowski: Chinese and US companies – a

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biz.hk: What are the perquisites of developing IP trading? Malackowski: IPXI has spent a lot of time trying to understand the building blocks for IP trading. Clearly one building block is the standardization of contracts. So the Unit James Malackowski License Right contract (ULR) represents one such standard. Second is a transparent process so the rule book of IPXI encourages transparency. The third is industry buy-in and support. One of the most important announcements IPXI is anticipated to make are its founding partners in industry, universities, and research centre members who are embracing this platform. Once there is a critical mass, then it really would develop naturally. An announcement is expected to be made soon and I believe further announcement will be made in January. biz.hk: Is it necessary for Hong Kong to develop its own IT trading exchange? Malackowski: It’s certainly not necessary because if Hong Kong does not develop it, other countries will. I look at it more as an opportunity to capture another financial market in Hog Kong. That opportunity – in my opinion – will go to the country that moves first. One concern I have is that this is not a market that you can wait to see how it develop and then come in later because the early mover will establish the sector and then the critical mass will follow. biz.hk: What about Hong Kong’s competition with other cities? Malackowski: I think there are a number of unique advantages that Hong Kong has. One is the access to the Chinese market. Two is the rule-of-law and the comfort that companies feel globally of doing business in Hong Kong. Three is its developed financial system. But in the end, those are the building blocks of opportunities. What will ultimately make the greatest difference is action. [It] is actually declaring a market and partnering globally and moving forward.

With the opening of Toy Story Land at Hong Kong Disneyland this month, Disney’s creative guru Joe Lanzisero talks to Helen Luk about the brand-new attraction and grooming local design talent.

ver dreamed of becoming part of the design team that builds the Magic Kingdom? For budding designers, here’s your chance: Disney is holding its first design competition in Hong Kong, the first time that the contest is being held outside of the United States. The company has more than 1,500 “imagineers” who design and build Disney theme parks attractions, resorts, cruise ships and other entertainment venues around the world. They include writers, sculptors, colorists, engineers, architects and graphic designers. Joe Lanzisero, creative senior vice president of Walt Disney Imagineering (WDI), is clearly thrilled about recruiting Hong Kong design talent who may one day work on his team. “We are very excited and committed to Asia. It’s a big, growing market for us. It is really important to have a deeper understanding of the market, and the best way to do that is by having people from that market be part of your team, especially on the creative side,” says Lanzisero, who was one of the first judges of the Disney ImagiNations design competition back when it was first introduced in 1992.

is the most beautiful setting of all the Disney parks.” To immerse visitors in the world of Woody and Buzz Lightyear, Lanzisero’s team decided to create gigantic props that give visitors the illusion that they have been reduced to the size of toys. “In movies, that were all basically the point of view of the camera – when the adult came into the frame, you usually just saw their feet… We wanted to figure out a way to communicate that: ‘Oh my goodness, I am the size of a toy, that’s why everything is so large,’” he explains.

Toy Story Land

Once upon a time

The creative head, who has overseen the concept design of many attractions from Tokyo to Florida, is in town to help open Toy Story Land, the new centerpiece attraction at Hong Kong Disneyland, on November 18. Although there is already a Toy Story Land in Paris, Lanzisero says the one in Hong Kong will be bigger and offers more elements, such as food and a greater variety of merchandise. What truly sets it apart though, he says, is the setting on Lantau Island. “When you walk through Toy Story Land, it’s great. We planted bamboo to represent grass – to help sell the idea that you have shrunken down to the size of a kid. Beyond that, we have that beautiful vista of the mountains that we don’t get in any other park,” he says. “This

Lanzisero grew up in Burbank, California, not far from the WDI headquarters in Glendale. “From as far back as I could remember; I have always liked to draw and paint. Disney as a creative company has just captured my imagination,” he says. He was among the first graduates of the character animation program at California Institute of the Arts, which was founded by Walt Disney for students to study visual and performing arts. His classmates included acclaimed Hollywood director Tim Burton (of Edward Scissorhands and The Nightmare before Christmas fame) and John Lasseter, creative head of Pixar and director of Toy Story. Lanzisero began his career with Disney in 1979 in feature animation and later became a concept

Joe Lanzisero

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designer of WDI. “It was an amazing creative time there. It was also the time when the studios understood that a lot of the older artists were getting older and they needed to replenish the creative pipeline,” he says. Similarly, that’s why Disney decided to bring the ImagiNations design competition to Hong Kong this year. “We are going to be here a long time, so thinking about bringing in new talent is important,” he says. “There is really no school where you can go and learn about how to become an imagineer.” So far, the company has received about 70 entries from students in Hong Kong, who were invited to create new concepts for an attraction, a resort, a restaurant or an entertainment experience for Hong Kong Disneyland. The winners, to be announced in December, will get a six-week work experience at the Hong Kong theme park and a free trip to the WDI headquarters where they can meet veteran imagineers and past winners of the competition.

“Don’t let the delivery technique become bigger than the idea. What we are looking for is a strong core idea and the way to present it hopefully complements the idea that doesn’t overshadow it,” he says. Lanzisero says he is looking forward to see the work of the Hong Kong contestants who understand the culture, the city and the dynamics of Asia –“bringing that diversity of thinking that you wouldn’t normally get from me, a California guy in Glendale.” “We need to challenge ourselves more and more when we think about the future and where we are going to go with the resort, not just bringing ideas and previous theme attractions from elsewhere in the world, but starting to think about what are those things that are really going to resonate with the local guests,” he says.

Story is key Lanzisero says the competition gives contestants the opportunity to create their own ideas and better understand what it takes to build a Disney theme park. “In the process of exploring, they start to understand, ‘Wow, this is more than just coming up with a ride or a restaurant.’ It’s to understand what is the DNA that makes a Disney experience so different? And that’s one word: story.” “Story is always at the heart of everything we do. For these contestants, that story understanding is fundamental to their success. That’s a big part of what we are looking for,” he says. In the past, Lanzisero says contestants made short films and models in presenting their projects. Some even created a set, dressed up as the characters and gave a life stage performance. But he warns that it is important not to let form get over substance.

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Rollercoaster and haunted mansion

That desire to boost guest experience has resulted in the design of two other new attractions for Hong Kong Disneyland to complement Toy Story Land. The first one, Grizzly Gulch, is based on a “gold rush” story of the American frontier and will feature a high-speed rollercoaster, while Mystic Point will showcase the mysterious manor of an eccentric adventurer and his collection of exotic artifacts. They are slated to open over the next two years. “One of the things we heard is that we need things that are unique to Hong Kong… and we took that to heart. The two other theme lands are going to be totally unique and have never been done anywhere else in the world. They are going to be first-time stories that will be told here and only here,” Lanzisero says. “After the three new lands open, I think you are going to have one of the best parks in the world.” Lanzisero is especially thrilled about Mystic Point, which he describes as “a new kind of ride through a haunted mansion” using the latest computer- generated techniques that combine videos, 3-D and animatronics. He says Hollywood composer Danny Elfman, a regular collaborator of Tim Burton, will work on the music and adopt a theatrical approach to enrich the experience of the ride. “We’ve taken our coaster and pulled it apart and made it part of the fabric of the land. You will be able to walk over or under the coaster – it completely takes over the land in ways that we have never done before,” he says.

core of what makes your product great and that’s the story and the emotional connection that people have to the story.” “And then the one foot into the future – Walt was always thinking about what’s the next great technology that he can use to tell his stories. The fundamentals of what we do… remain the same. We just have new, cool technologies that we are using to tell the stories.” Lanzisero says he finds it rewarding to work out each project’s set of challenges and how to overcome them with the right design. “It’s fun to do the impossible,” he says. And how does he deal with conflicts between the creative and commercial sides of the business? “A certain amount of conflict is healthy because people usually come at things with their own passions and their own beliefs and you’ve got to respect that. I want passionate partners with a strong point of view that come in and are going to argue with me.” “If you are open-minded and professional, you’ll listen to each other and then the end result is a fantastic product,” he says.

One foot in the past, one foot in the future So has theme park design changed much in the three decades that Lanzisero has been doing it? He cites his former boss and veteran imagineer, Marty Sklar, as saying that no matter how advanced the technologies are, a strong story is what makes the ride. “Marty always talked about how Walt had one foot in the past and one foot in the future. What that (the one foot in the past) means is to understand what is at the

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TRADE & INVESTMENT

APCAC lobbying

Obama Signs

APEC Business Travel Bill By Daniel Kwan

new law signed by US President Barack Obama at the just concluded Asia-Pacific Economic Cooperation (APEC) CEO Summit will allow US business travelers to access Asia-Pacific nations more freely and quickly. The Asia-Pacific Economic Cooperation Business Travel Cards (ABTC) Act of 2011 was signed by President Obama just before he took the stage to address business leaders in Honolulu of Hawaii. The summit meeting was hailed by observers as a clear signal by the US President to show the US’s commitment to deepen engagement with the Asia Pacific region. “I just signed a piece of legislation that was voted on unanimously out of Congress that essentially sets up an APEC business gold card,” President Obama told the summit. “Everybody here appreciates it because they’re not going to have to wait in line as long at the airport,” the president was quoted saying in a press release issued by the APEC Secretariat. In a press conference at APEC, President Obama also underscored the importance of the presence of American businesses in the region to double US exports in five years and create jobs in the US.

Photo: Getty Images

Increase mobility Under the new law, US business travelers can apply for the ABTC which will increase their mobility by expediting scheduling of visa interviews and fast-tracking processing at immigration checkpoints in APEC economies throughout the region. According to APEC information, ABTC was originally trialed in 1997 with three APEC members (Australia, Korea, and the Philippines) and was expanded a year later to include Chile and Hong Kong. “After a successful evaluation, the scheme commenced permanent operations from 1 March 1999, when New Zealand and Malaysia announced their participation,” says Business Mobility Group on its website (see table below). BMG is one of the sub-fora working groups of the APEC Committee on Trade and Investment (CTI). “Brunei Darussalam, Peru and Thailand joined the scheme in February 2001, China in February 2002, and Indonesia in August 2002. Since then, Chinese Taipei, Japan, Singapore, PNG, Vietnam and most recently Mexico have signed on to the Scheme,” it says.

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The US already provided convenience to ABTC cardholders before the passage of the law. This means that business people of 18 APEC economies – including Mainland China and Hong Kong – can use the ABTC to enter the US via special immigration lanes. The new legislation now enables US business travelers to enjoy reciprocal benefits. Since ABTC has first launched, the Asia-Pacific Council of American Chambers of Commerce (APCAC) which represents 27 AmChams in 21 economies has spent years to lobby the US government to take advantage of ABTC to facilitate business travel by American businessmen in the region. “Passage of this legislation sends a clear message that the United States is committed to bolstering its commercial presence in Asia. Access to business travel cards will significantly enhance business travel, investment, and trade opportunities for US citizens in the rapidly growing economies in the APEC region,” APCAC Chair Steven R Okun comments on the new law. APCAC stepped up its lobbying efforts this summer to urge the US Congress to pass the new legislation in time for President Obama to sign it before the APEC meeting in Honolulu. In September, APCAC sent letters urging action to the Congressional Homeland Security Committee that they had to endorse the legislation before the full House and Senate could vote on the measures. It later followed up with letters of support from the US Chamber of Commerce and AmChams from around the region. “After years of stressing the importance of the APEC card to American business travelers in our AmCham briefings and during our Washington Doorknock trips, we can finally report victory," says Richard Vuylsteke, President of AmCham Hong Kong. “This will really help mitigate some genuine travel headaches for all of us.”

Tom Clark, vice president for government affairs and policy for GE Capital Asia-Pacific, and APCAC’s vice chairman for Washington Relations, witnessed the signing of the bill by President Obama in Hawaii.

Time and money benefits Deb Henretta, P&G Group President, Asia, welcomes the new initiative. “Access to the APEC Business Travel Card will save US business people valuable time and money as they travel throughout the area,” she was quoted saying in the APEC Secretariat’s press release. ABTC cuts through the red tape of business travel, but cardholders will still need a valid passport and visa to travel since the ABTC is not meant to replace the passport as an official travel document. It however gives frequent business travelers pre-cleared entry to participating APEC economies. Key benefits are: • Fast-track entry and exit through special APEC lanes at major airports, and multiple short term entry to these economies for a minimum of 59 days stay each visit. • No need to individually apply for visas or entry permits each time for travel to any of the participating APEC economies as the card is your visa. • Cards are valid for three years from first issue. At present, Canada and Russia are “transitional members” of the scheme. However, according to Canada Border Services Agency, ABTC cardholders can still enjoy fast-track services at Canada’s eight major international airports in the following cities: Vancouver, Edmonton, Calgary, Winnipeg, Toronto, Ottawa, Montréal and Halifax. A survey by Policy Support Unit – an independent research unit at APEC – shows there were 88,421 ABTC cardholders at the end of 2010, up 11.4 percent from 2009, and up 430 percent from 2006. Another benefit of ABTC is that it helps cut transaction costs for cardholders. The survey indicates transaction costs for card holders were reduced by 38 percent from March-July 2011 over the previous 12 months, which translates to total savings of US$ 3.7 million. The survey was conducted between March and July this year and asked about their travel patterns over the last 12 months.

Full participating economies (as of October 2011) Australia People's Republic of China Japan Mexico Peru Chinese Taipei

Brunei Darussalam Hong Kong (China) Republic of Korea New Zealand The Philippines Thailand

Chile Indonesia Malaysia Papua New Guinea Singapore Vietnam

Source: Business Mobility Group, APEC

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CHINA BUSINESS

UNDERSTANDING Editor’s note: biz.hk recently interviewed two authors – Paul Cheng and Tom Orlik – on a common but complex subject: understanding China. Cheng, a former AmCham Chairman and at the age of 75, is going strong. Using his pinyin name in Putonghua, Zheng Mingxun, Cheng tackles some of the widely-held misconceptions about China in the West in his new book. Orlik, China correspondent for the Wall Street Journal, shares his expertise in analyzing China’s economic statistics and examines in detail how investors can interpret key data and turn them into business opportunities.

Zheng Mingxun (Paul Cheng) On Equal Terms: Redefining China’s Relationship with America and the West and trust. Of course, each country has its own national interests and these interests will always be there, especially in trade. For the sake of a long-term productive relationship, China and the US should lift themselves up to another level and jointly work together on issues like climate change, terrorism, and poverty, by cutting across their national interests.

Paul Cheng

biz.hk: Every country in the world acts upon its own national interests. Can countries treat each other on equal terms? Cheng: In most cases, the answer is no. What I am trying to address here is the current Sino-US relations. The US has been very dominant on the global stage for many decades as a world leader, almost in a fashion of telling everybody what to do and assuming that its own system of democratic governance is the best system for everybody. But we have to understand that the world has changed. What I am saying is that the US needs to accept the fact that they will have to work with China on equal terms. It is about working together with mutual respect

biz.hk: Why is this important? Cheng: Right now the world is interconnected because of globalization. So we need to realize that whatever one country does has some impact on the other countries. For example, we all realize the importance of job creation in any economy. But you cannot just tell others to, say, re-value their currency as a way to create jobs. We have to understand that China also needs to protect jobs for a huge population. And if they re-value the Renminbi too quickly, it will impact their exports and jobs. Both sides need to understand this and not just say hey you must do this or you must do that, without regard to the other person’s position. On a broader scale, we are really talking about rebalancing the global economy, or how we get some of the three trillion dollar reserve from China back to the West. We know both sides need to create more jobs. One suggestion I have is for America to define

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more clearly their policies in welcoming Chinese companies to invest in the US. China on the other hand needs to have a level playing field for US companies to operate in China. So both sides need to do something. “Equal terms” is, again, more about mutual trust and respect. It isn’t necessarily about being on the same level. In the case with the US and China, the US is way ahead on military and soft powers, where China has a long way to go in catching up. But, very often, you hear the US complaining about China’s spending on defense, which is only a fraction of that of the US. There is no comparison. Yet, the US always questions about China’s intention. Historically, China never invaded anyone, although some will say China has had border disputes or military conflicts with countries like India or Vietnam. The Chinese interest has always been in defense and not so much in offense. That’s why you see things like the Great Wall, to prevent others from coming in. biz.hk: How is China becoming the banker of the world as you say in one of the chapters of your book? Cheng: Everyone knows what is happening right now in Europe. Ultimately they still have to come to China and say ‘Can you help?’ It is because China has built up such a big reserve. While a lot of people say China needs to be a responsible global player, China needs to be very careful in terms of how they go about helping to rebalance the situation. China might want to help partly because of their exports, which is key to their economic growth. They certainly don’t want Europe or America to go into deep recessions because that will have a significant impact on their exports and, ultimately, jobs for Chinese workers. The problem, on the other hand, is that whatever amount of money they are going to ship over to Europe is really a donation, because you are not going to see it back. So they have to be careful with the extent they can help as they have their own problems to worry about. biz.hk: What needs to happen for China to push for a level playing field for foreign and domestic companies? Cheng: Most countries enact some kind of protectionist measures. While their policies say they are open, they can block things administratively. In life or business, there is actually no such thing as a completely level playing field. If you want to come to China to enjoy the huge market, you will be asked to set up your R&D center and share technologies through joint ventures. These hurdles are where China can perhaps do more.

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Of course, you have the issue of state-owned vs. private sector within the domestic market. That will always be the case. China is run like a corporation. The nine people at the top (Communist Party Politburo Standing Committee) are like a board of directors; the president is like a chairman; and the premier is like a CEO. They can decide and be very quick in addressing problems or promoting growth. In other systems, politics can slow down a lot of things. I am not saying which system is better. But the Chinese system seems to be working for China right now, while the other systems seem to be having some problems. To be fair, you cannot look at the other side through your own lens, or through your own value systems or standards, because we have different cultures and different ways of doing things. biz.hk: You have many years of experience of doing business in China. In your view, how can China tackle the problem of corruption? Cheng: The leadership in Beijing is very keen on addressing the corruption problem. But we first need to define the word corruption. In the US, because of stringent policies, everything seems to be corruption. On the other hand, there are institutionalized approaches to doing business. Whether you want to call that corruption, I don’t know. The word is being used too loosely. The way I define corruption is if you have to pay something under the table to get something done. That is corruption. But if someone helps you close a business deal, paying him is like paying a consultancy fee or a commission. The law in the US is a lot tougher on that than those in China. There is a difference in culture on how you look at corruption. When you talk about the rule of law in China, there is a judicial system and there are rules and regulation. These could be tougher in certain areas than the West and less so in other areas. You have to look at the fact that China is a very complex society where people speak different dialects and come from different backgrounds. The Chinese government understands the need to manage the situation, because if they don’t there could be chaos. biz.hk: What is your view on free market economy and democracy? Cheng: Some people view free market and democracy as something interlinked. In China, the two things are not necessarily so closely linked because most Chinese people are more pragmatic and because the concept of freedom is not as strong amongst the population. We are talking about two different stages of development and two different mindsets in two different countries.

biz.hk: What should be the focus and strategy of those doing business in China? Cheng: It is hard to generalize because it all depends on the type of business. One sector may be very different from another sector. For consumer products, China is obviously a market of huge potential, but the US and European markets are still very important. High potential markets including China will help companies maintain the growth they need. To do that, companies need to look at the Chinese market as a whole different market with a separate plan, instead of merely applying the same approach used for other markets. For US companies, you almost need to have a team for America and another for China, a team which should be given more autonomy. Those companies need to look at how to create global companies that tap into both Chinese and US capabilities. But you need to be neutral. You may have your headquarters in America, but your strategy should be global, not just a national company looking only into domestic growth. While there are regulatory constraints, China will gradually open up its markets. Shanghai, for example, will eventually open up for listings of international companies.

biz.hk: How do you see Hong Kong where we are? Cheng: Hong Kong has a few very big companies that went to China or Europe for business acquisition. These companies have begun to go into a broader and more balanced development. However, Hong Kong doesn’t have that many of these big companies. In most cases, we are mostly merchants or entrepreneurs who may have factories in China or other countries in Southeast Asia. Hong Kong doesn’t yet have big international companies or brands of its own. Hong Kong’s future lies on being part of the Pearl River Delta. That’s why I always maintain that Hong Kong should not be too political as a city. The ‘one country, two systems’ is good for the transition. We are indeed very lucky to have a successful parent, as other cities would love to be in our position. We should be embracing our country and work together. It will be a tremendous loss if we don’t become part of the Pearl River Delta, because China doesn’t really need us. If you look at the map, we are only one dot on it. So far, Beijing has been very good in following the ‘one country, two systems’ principles. They are loosely governing this place. We should be happy to work with Guangdong Province and Macau in developing this hub. Then, we can create jobs for our people.

Tom Orlik Understanding China’s Economic Indicators Translating the Data into Investment Opportunities

Tom Orlik

biz.hk: What are the implications of China’s imperfect data system of economic statistics for businesses? Orlik: The important thing is to be a smart consumer of Chinese economic data. Don’t take everything or all of the official data at face value. Understand where it is coming from and how it is calculated. Then, you can have a better sense of what it means. The thing to note about China’s statistical system is that it is still work in

progress. Economic data measures something that is happening in everyday life. The consumer price index measures the changes in the price of food; the house price index measures the changes in the price of houses; and the industrial value added index measures how much businesses are producing. So, if you are doing business in Shanghai or Guangdong, you get to have a pretty good idea of all of these things yourself. You know how much wages are rising for people in your company or how much prices for input are going up. biz.hk: How do you determine the reliability of data of various sorts – especially those by local governments? Orlik: Once you get down to a local level, the reliability of the data becomes much weaker. For example, local GDP data is widely exaggerated. GDP data on a per-capita basis is also very difficult to use at the city level. It is very important to do your own investigation

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so that you can sort of cross check against the official data, especially at the local level. biz.hk: What should investors do in order to get a better understanding, instead of relying solely on official data? Are there professional services providers doing these checks for businesses? Orlik: While it can be pretty challenging, the thing for an investor to do is to do some common sense check. If I am investing in a city, I definitely want to be visiting the city first. I want to be speaking to other business owners to understand about the labor markets and wages. And if I want to do retail in a city, I want to see how much people are spending. Also, there are all kinds of companies that do investment advising for businesses entering into the China market. biz.hk: Is it true that some people have earlier access to the economic data? Orlik: In theory, everyone should see the data at the same time. In practice, some people get to see the data first. Data leaks are much more common in China than in other countries. Even when there is no data leak, somehow the official Chinese media often seem to have access to data early and they will run stories as rumors. In some extremes cases, they will even just publish the numbers before the Chinese National Bureau of Statistics publishes these numbers. biz.hk: Is the government tackling the problem? Orlik: Recently the National Bureau of Statistics has done various things to try to stop this from happening, and there has been some quite harsh punishment for people who are found to be leaking the data. They have also reduced the period of time between calculating the data and publishing the data while reducing also the number of people with access to the data before it is published. All of these things are attempts by the government to solve the problem. biz.hk: Investors obviously don’t want second- or third-hand information. Is there certain risk when investing in China? Orlik: That’s definitely true, especially for foreign investors who may not be able to read news in the Chinese language, or they don’t have good network to get good information. That’s definitely a disadvantage of being in the China market as a foreign investor. biz.hk: Investors have complained about the problem of “cooking the books” in China. How serious is the problem? Orlik: The first thing I would say is that people in

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China are not more dishonest than anybody else. All you need to look at are all of the frauds that have been exposed in the US. So, I don’t think it is a problem with Chinese people not having integrity. What people investing in China should do is to be careful by doing some due diligence work. That is partly about cross checking the numbers to make sure that they make sense and are consistent. For investors at the company level, that means doing even more due diligence and finding out all things related. biz.hk: How should we interpret official Chinese GDP figures? Orlik: The difficulty for the Chinese government in measuring GDP is that the economy is changing very fast. There are new sectors that are emerging and are contributing to the economy but are not yet counted. And it would take a while for the statistical system to pick up on that. The classic example of this is the services sector. The government was a bit slow to recognize that the services sector was big and contributing to the national GDP. What that meant was that the GDP numbers were way too low at the beginning of the century. The statisticians weren’t changing to account for the services sector and their calculation for the GDP was too low. The Chinese economy is still growing pretty quickly. So the challenge for the statisticians is keeping track of all these new sectors that are emerging and are contributing to the economy. biz.hk: Should we not take the official Chinese GDP figures at face value then? Orlik: Lots of people think that China is lying about its GDP or that China’s GDP is lower than what the government says is. It is likely that it is just very difficult to measure China’s economy. China’s GDP might actually be higher than what is published. For investors and businesses to make the data more useful, it is important to recognize first the difference between year-on-year data and quarteron-quarter data. In the past, the Chinese government published only year-on-year data. What this does is that it presents a smoother pattern of growth, where it never goes up or down that much. biz.hk: What differentiates these two types of data? Orlik: The quarter-on-quarter figures are the more useful data series. The quarter-on-quarter figures that the government started to publish from the beginning of 2011 tell you much more about the current momentum of the economy. These figures tend to be move more sharply up and sharply down. A lot of people think the economy is going to

have a tough time in the final days of 2011 and the first half of 2012. So, you can expect the quarter-onquarter GDP data to show a sharp slowdown in growth. biz.hk: What about inflation figures? Orlik: Inflation is one of those areas where there is massive debate on whether the government is cooking the books. There is a saying in China about statisticians not buying their own groceries. That is because if they bought their own groceries, then they’d understand that inflation is actually much higher than what the official figures suggest. biz.hk: Why might not the official statistics on inflation reflect real inflation? Orlik: The issue with the inflation data in China is that lots of the things that are in the Consumer Price Index basket actually have prices that are controlled by the government. Prices of transport, medical care and utilities, all of which are big part of the CPI basket, are somewhat controlled by the government. In other words, lots of what’s in the CPI basket reflect controlled prices. The second problem is that one of the main areas where there is real inflation is housing prices. The CPI does not include prices of house. If you are a Chinese person living in Shanghai and you are worried about inflation, what you really worry about are housing prices. That is the main concern for a lot of people. Because the CPI doesn’t include housing prices, there is a mismatch between what the official inflation data is showing and how people are feeling about inflation in their daily lives. biz.hk: What is the implication for those looking at the CPI? Orlik: The thing to do is to pay attention to the CPI because it is the best overall measure of inflation. It is also the measure that the government uses to judge whether they should raise interest rates or adjust the reserve requirement ratio. While it is important to pay attention to the CPI, you also need to keep in mind that it also doesn’t tell the entire story. So, we also need to keep an eye on other data like those on housing prices. biz.hk: How accurate are China’s data on unemployment? Orlik: There are lots of areas where the government has made big steps to make the data better. But unemployment is not one of them. The official Chinese unemployment rate has stayed around 4 percent in the last decade and it doesn’t make much sense, as we’ve had so many changes in the Chinese economy in the last decade such as closure of some

state-owned enterprises, and China’s entry into the World Trade Organization. All of these things had a big impact on the Chinese economy, labor market and unemployment rate. They are not at all reflected in the official unemployment rate. Another problem is that the unemployment rate doesn’t include migrant workers. There are some 200 million plus migrant workers. They are the people who suffer the most from fluctuation in the economy. During the financial crisis, it was the migrant workers who all lost their jobs, and they are not included in the unemployment data. That means the data is not really reliable. biz.hk: How can we get more precise employment data? Orlik: The best alternative is data published by the Ministry of Human Resources and Social Security. It is called the Labor Market Supply and Demand Balance. And that is the best indicator in China of the labor market. It gives you a reading on how many people are looking for jobs and how many jobs are available. And it breaks it down by region so you can look at the east coast, Pearl River or Yangtze River region, or the western region. You can also look at the breakdown by age or education level. It is not perfect or completely comprehensive but that is the best measure there is of development in China’s labor market. biz.hk: What can you tell us about China’s statistics on trade? Orlik: Trade data is probably one of the best series in the Chinese economy. It comes out monthly. It is very detailed and accurate. There aren’t big issues with political manipulation. The trade data is really one of the better areas for Chinese economic data. It is also pretty revealing. For example, China imports raw material like crude oil and iron ore. If you keep an eye on those imports, you can really get a good sense of how strong China’s industrial sector is. They also import parts, which they then put together and re-export them. If you look at the data series, you can have a pretty good idea of what the outlooks for exports are. biz.hk: How can we use the data for business planning? Orlik: They often look two to three months into the future. If they think orders are going to be strong, you are going to see a lot of those parts being imported and exports are going to be strong in two or three months’ time. If they think the future is looking pretty risky, they will stop importing those parts. If you see imports of those parts falling down, you can bet things are going to be pretty tough down the line.

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WOMEN OF INFLUENCE

YOUR DONATIONS ARE WELCOMED!

CONFERENCE & AWARDS 2011

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WOMEN OF INFLUENCE

Awards 2011

AmCham / SCMP

WOI Awards

Inaugurated in 2003, the Women of Influence Conference & Awards continues to effect positive change in the role and representation of women as well as gender diversity at the workplace.

By Kenny Lau

New categories and theme

our individuals and one company have been recognized for their achievements in promoting gender diversity in the workplace at the Women of Influence Conference & Awards (WOI) 2011. An annual event organized by AmCham and the South China Morning Post, WOI Conference & Awards recognizes outstanding professionals who have effected positive change in gender diversity in the community. The annual event is a platform to honor dedicated leaders for their professional achievements and their efforts in promoting policies that make it possible for women to realize their potential. Through the awards, AmCham’s WOI Committee aims to draw attention from the community on the issue of diversity and the need for continued support and advocacy. “When I first attended this event three years ago, I was humbled and inspired by the keynote speakers, panelists and award recipients that I heard from,” Lee Georgs, AmCham WOI Committee Co-chair, says in her opening remarks at this year’s conference. “I have always drawn upon the shared experiences of others to keep me going. The WOI conference has played a very large role for me here in Asia.” In addition to the presentation of awards in various categories, the half-day conference also facilitates an exchange of ideas through discussions among participants on topics such as best practices in retaining and promoting women in the workforce. Each year hundreds of people attend the event to network, engage in dialogues and learn from the experience of other working professionals. “The stories of our winners, speakers, and panelists every year are so inspirational, and you can take so much from it,” says Jennifer Van Dale, who is also co-chair of AmCham’s WOI Committee Co-chair.

WOI Award winners: (from left) Agnes Tiwari, Randy Lai, Salina Yu, Stephen Golden and Shalini Mahtani

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In 2011, there are two new award categories, namely Master in Charity, Arts or Culture and Champion for the Advancement of Women. “As a committee [organizing this event], we try to be as inclusive as possible,” Georgs points out. “With the help of leaders of other women’s interest groups and recognition events, we’ve identified that leading women in the field of charity, arts or culture were not being given the same opportunities for recognition than their for-profit colleagues were. For this reason, we chose to add a new category in 2011.” “And, after the success of last year’s all-male panel Men’s Changing Roles, we felt it was important to identify and create an award category for the men who help to make the path to success for women more navigable,” she adds. “Hence, the award category for Champion for the Advancement of Women was born.” This year’s theme is “Connecting, Collaborating and Inspiring,” and it captures three key components essential in helping women succeed in the workforce today, Georgs notes. “Whether you are at

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the beginning of your career, in the middle stage where you may be balancing work and family, or at the top of your career serving on a board, these themes are relevant to all of us.”

Speakers and panelists Speaking for the opening keynote address, Saori Dubourg, President for Asia Pacific, BASF, points out that it is critical to think and act beyond today and to invest in the next generation. She believes, through mentoring and promoting both female as well as male leaders, human capability can be significantly enlarged to tackle problems that are becoming increasingly complex. Following the opening address, participants attended three concurrent breakout sessions (sessions were repeated twice to allow for more choices), each featuring three panelists who shared their personal stories and experiences on topics including career development and work-life balance.

Kay McArdle, Agnes Tiwari, Melissa Mowbrayd'Arbela and Karen Koh

WOI Committee co-chairs Lee Georgs and Jennifer Van Dale

Umran Beba

Lizette Smook, Christine Sim, Pooja Grover and Shanthi Flynn

Saori Dubourg

In Personal Stories: Becoming the Architect of Your Career, Karen Koh, Founder & Principal of Intermedia and former anchor for Asia Business News (ABN) and CNBC Asia, says that when we become more passionate and follow our hearts, we will often come to an experience of something different and an exposure to alternative ideas. And do not be afraid of what life may bring because there is always a new world waiting for us, suggests Professor Agnes Tiwari, Head of School of Nursing, Li Ka Shing Faculty of Medicine, HKU. More importantly, we need to believe in and be confident in our values, adds Melissa Mowbray-d’Arbela, CEO of Filligent, a Hong Kong-based biotech company. In Strategies for Success: Making Connections with Mentors, Sponsors and

Susan Reingold, Clare Allum, Caroline Wong and Shalini Mahtani

Networks, Pooja Grover, Managing Director, Investment Banking Division of Goldman Sachs Asia LLC, points out that networks can help establish strong bonds. The key is to let sponsors have a better understanding as to why they should invest in us as an individual. It is often about building credibility and a personal brand, says Lizette Smook, Founder and CEO of Innovasians Ltd, who has 35 years of experience in global retail and manufacturing. In order to do that, we need to “talk the walk as well as walk the walk,” adds Christine Sim, General Manager of Links Recruitment Singapore. In Pursuing Your Passions: Getting the Most out of Life, panelists including Clare Allum, Asia-Pacific Learning and Development Leader at Ernst & Young, Susan Reingold, SVP at Grey Group, and Caroline Wong, Executive Director of Corporate

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Communications at Morgan Stanley, tell of their interests and how passion can drive us towards our goals. In the luncheon keynote address, Umran Beba, President, Asia Pacific, PepsiCo Inc, focuses on authentic leadership and being inclusive at the workplace. “It is important to reflect on your own values and understand what you are bringing to the workplace by listening, understanding and having empathy for the issues or challenges of the people in the organization,” she says. Openness, respect and trust are keys to building relationships and creating success, Beba further notes. “Ask for support when necessary. It can be a valuable asset because you then truly become a team…and go out of your comfort zone to learn to become more resilient.”

After thought “Having listening to what the speakers and award recipients had to say, you realize that there is no one path to success or one particular recipe,” Georgs believes. “Looking at the stories and what people talked about during the keynote addresses and breakout sessions, there are few points that seem to be repeated over and over. That includes things like passion, value, listening more to others and having empathy,” Van Dale says. “One of the things we should think more about is how we need to believe in ourselves and to be the change that we want to effect. I certainly hope we all walk away feeling inspired,” she adds.

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Winners of the

WOI 2011 Awards

Ingrun Alsleben, chair of the WOI Judging Panel

ndividual winners of the AmCham/SCMP Women of Influence Awards are selected based on their professional achievement, influence, and social engagement, while the criteria of Best Company for Women include female representation in senior management of the company and innovative programs for the advancement of women in the workforce. The judging process is never an easy task because all of the nominees have a very high degree of accomplishments in their professional career and strong social engagement in gender diversity, Ingrun Alsleben, Chair of the WOI Judging Panel, notes. “It is not only a pleasure and honor to give away these awards, but it is also something truly inspirational because you have the chance to read through the stories and exceptional achievement of these extraordinary women,” she says. “It makes you feel humbled and it also makes you want to do more.”

Entrepreneur of the Year Salina Yu Lai Si, CEO & Executive Director, Water Oasis Group Ltd (Presenter: Professor Leonard Cheng, Dean HKUST Business School)

By John Cremer

(Reprinted with permission from the South China Morning Post)

alina Yu Lai-si might not use textbook methods for building a business, but there can be no doubt she has found an approach that brings results. "I don't think too much and I don't really plan ahead," says the CEO and executive director of the Water Oasis Group, a skincare and beauty services specialist, which Yu has taken from a speculative start-up to a listing in Hong Kong, and is now a fast-expanding regional presence. "I just grab opportunities and focus on the work. Then, if the response and results are good, I work harder." Yu's view is that too much planning becomes a hindrance. In the corporate world, she feels, it blunts creativity, slows decision making, and imposes limits that don't need to exist. Instead, what she practices, and preaches, is to have a "formula" and not some standard business model. It must take due account of the basics of running an enterprise-capital, manpower, market research, and process - but also allows the flexibility for non-linear thinking and genuine flair. "You should work things out as you move forward and keep adapting as the company expands," Yu says. "By taking that path, you can react to new opportunities and things will grow more creatively." There is evidence of that in the company's strategic switch. Originally a distributor for United States-supplied water-based cosmetic products, it evolved in a few years to become a groundbreaking retail chain with its own brands and outlets. The company has more than 1,600 staff and over 350 stores in Hong Kong, Macau, the mainland, Taiwan and Singapore. It all started, Yu recalls, with an informal chat in early 1998. A friend of hers, impressed by the quality of ~H2O+ skincare products bought during a trip to New York, wondered why these items weren't available locally. Thoughts turned to action. "I started to work on a proposal to get the distributorship and bring the brand to Hong Kong," says Yu, who was running a fashion boutique at the time. "There was a great response to a two-month trial, so I flew to [the brand's head

office in] Chicago, had discussions with the people there, and finalized a deal within two days." There were no big sales targets or financial goals. The business concept was simplicity itself: explore market potential and see where things led. For a while, Yu kept her "day job" until Salina Yu things started to take-off. The initial breakthrough came when City'super agreed to stock products. Word of mouth then took over. Looking beyond the conventional tactic of selling cosmetics at in-house counters in department stores, Yu decided instead to open independent shops, a concept which caught on. "When running a business, one half of your mind has to be open to new ideas, questioning everything, and not just listening to what is going on in your industry," Yu says. "That helps you see fresh perspectives and remain creative." The other half, she concedes, must be constantly focused on day-to-day happenings and key performance indicators. Since a public listing in 2002 and with the aggressive addition of outlets on the mainland, Yu has become expert in interpreting all manner of sales figures and computer printouts. "Understanding the data is very important for any entrepreneur," she says. "It shows how your business breaks down into small pieces and what is really going on." The working routine, five days a week, begins with a close analysis of "everything" - best-selling products per store, sell through rates, number of customers, dollars per transaction, and even the job value per hour for individual beauticians. To keep in touch with employees, Yu puts special emphasis on effective communication. Aware that key messages can get lost within a growing organization,

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she encourages a culture where information is freely passed on and ideas are welcomed. "I want everyone in the group to enjoy their job and feel happy in what they do," she says. Looking back to her own childhood in Hong Kong, university years in Hawaii, and early jobs in the hotel “Salina is an entrepreneur, a person who embraces new ideas and new challenges. She is a visionary leader who understands the daily necessities of modern women. She founded her company in 1998, which was listed on the Hong Kong Stock Exchange within four years and registered annual revenue of close to HK$1 billion. With 95 percent of the company employees being women, she truly understands the needs of her staff and employs

sector, Yu suggests that three factors have helped most in building a successful business: diverse experience, determination, and the courage to grab opportunities. "You should cherish every single experience in your life and realize it is up to you to make things come true," she says. "Don't be afraid of setbacks or downturns." supportive policies that are family-oriented. She is being recognized for her dedication in providing nurturing environments for new talented women by setting up a beauty school and education fund.” – Leonard Cheng

Professional of the Year Professor Agnes Tiwari, Head, School of Nursing, The University of Hong Kong (Presenter: Mike Davies, MD and Head of Asia HR, Morgan Stanley)

By Liana Cafolla

(Reprinted with permission from the South China Morning Post)

rofessor Agnes Tiwari enjoys nursing as much now as she did when she started her career 41 years ago. "All these years on, nursing to me is just as exciting as it was before. Never a dull day, but very tiring days, yes. Challenging days, yes, but never dull," says Tiwari, who became head of nursing at the University of Hong Kong in July. Tiwari says her role is strategic and operational. Changes in nursing training mean she is closely involved with program reform and preparation for a doubled group, while overseeing research. She heads a team of about 100 academic, administrative and research staff and a student body of 1,100. Teaching nursing stretches beyond the walls of the university, says Tiwari, known for her research into the prevention of violence, especially as it affects women and children. "We don't just teach for the sake of teaching or research for the sake of research. It's about how it may affect the community. We must be close enough to the people we serve. That is changing entirely the way we teach [the public] - it's not teaching any more, it's enabling." Tiwari's research focuses on psychological violence. While physical violence is typically classified by quantity - if someone hits you twice or more, it's counted as abuse - the yardstick for psychological violence is not easily quantifiable. Controlling behavior can take many forms, including economic control, emotional threats, an excessive level of monitoring or stalking, intimidation or threats to pets, for example.

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After suffering for many years, women may respond by withdrawing into themselves, limiting their activities and curtailing responses or actions that they feel might encourage a violent response. Men may also be victims. Tiwari's work involves research and intervention. Women may be referred, often from hospitals, but she also goes looking for Agnes Tiwari them. She spends half a day a week at a shelter for battered women. There she finds women suffering from symptoms such as sleeplessness, forgetfulness, nightmares and desperation. She explains that these symptoms are normal and are the body's way of defending itself against further attacks. "It's one woman helping another woman, and I think that makes the difference," she says. These personal experiences become part of her research. "The challenge is, if something is so ordinary, people don't recognize it as professional knowledge. I've got to write this up in a scientific way and publish it in academic journals, so that the scientific value of such ordinary knowledge will be

recognized." It is part of a bigger issue that may affect other women. A propensity for being oriented towards people and details sometimes leads to a perception that women don't see the big picture. Believing that true power comes from within has helped Tiwari counter such perceptions. “Agnes is not only a highly respected scholar in the field of education and health services but also a pioneer in research. Lives of women around the world have changed because of her passion, devotion and commitment to her profession. Her research and publication have brought international attention to the problem of violence against women. She is a member of the World Health Organization, a health advisor for various Hong

Women who despair of being taken seriously should believe in themselves and push themselves out of their comfort zones, she says. "Know yourself - who you are, your strengths and weaknesses, and what you believe in. It gives you belief in yourself."

Kong government committees, a pioneer for the first nurse-led clinic for abused women, a representative for Hong Kong in various global conferences and a professor to nearly 1,400 student nurses in 48 hospitals.” – Mike Davies

Master in Charity, Arts or Culture Shalini Mahtani, Founder & Advisor to the Board, Community Business

philanthropist – loved and lived life – instilled in me a responsibility to help those who are suffering. With his inspiration and my need to do something I actually liked – I left the private sector, got married to my long term boyfriend and partner for life Ravi and set up Community Business (CB). Leaving the private sector, I understood that my strengths were not social work or teaching – but a deep knowledge of business AND my desire to help people. CB is a not-for-profit organization that marries this knowledge of business with the passion to help people. We work with leading companies around the region on Corporate Social Responsibility, diversity and inclusion, community investment and work-life issues. I have loved creating Community Business and challenging businesses in Asia to think differently. Starting any organization is all consuming. I was lucky to have a mentor and two founding board directors who supported way in any way they could. In 2006, I became a mother to my son Zubin and can honestly say that I have never taken any role more seriously than motherhood. Everything else for me came second to Zubin. I had my daughter, Anya, shortly after.

I am an extremely involved mother. I plan all my kids meals, arranged play dates, went to all school activities and doctor visits, and grew a business – all be it a not for profit. In early 2009, I really felt that things were becoming a little easier. My children were three and one respectively. And CB was thriving – there were nine full time paid staff and lots of great and interesting work. For the first time in a very long time, I felt truly content. And dare I say it, happy. But that all changed, in one instant. On 31 May 2009, my son Zubin died. He was not sick – he did not have any condition. He just died. He died from pneumococcal meningitis – he must have picked up the bacteria from another child; and for Zubin, it caused him his life. Losing my Zubin has shattered me. His death proves to me that actually we have no control over the most important thing in life – life itself. I always thought that I had my priorities right but apparently not – for some reason, this is my journey. I find it hard to see the future – but my hope is one day if and when I am stronger, perhaps inspired by this award, I will set up the Zubin Foundation – to honor my son, to honor life and to help all those who suffer.

(Presenter: Jon Reade, Director, Art Futures Group)

hank you very much to AmCham Women of Influence Judging Committee for selecting me for this year’s Master of Charity Award. It is a great honor to be recognized for my work. Thank you to Fern Ngai and Robin Bishop for nominating me. When Ingrun Alsleben (AmCham WOI Committee Judging Chair) called me to tell me that I had been selected she mentioned to me that I had five minutes to speak. I was to speak about my life and also what this award means to me. As I do this, I have chosen to reflect back on life, and share with you events and incidences that have defined me. I give you my disclaimer at the onset – my life has been difficult and my story is not for the weak hearted. So here goes….. I am from Hong Kong. My family has been here for four generations and I see myself as a Hong Kong person. My struggles started young. At a young age I was taught that there are differences between girls and boys. Above all, as a girl I was to listen and be obedient, marry and marry young and be a source of pride. I was also supposed to take great care in my grooming and my physical outlook. For those of you who know me well – you will know that I failed in all of the above. At the age of 13, I went from being a meek, scared insignificant member of my class- to a fairly self confident young woman. Two things happened to change me. One, I was inspired by a teacher from South Africa. She talked about the subjects of gender and race discrimination and taught me to dialogue and debate. This woman opened my eyes and my mind and gave me words for what I saw around me.

Later that year, I also want to India for the first time. The contrast between me in a chauffeur driven car and the severed children begging for money was too great to ignore. This visit opened my eyes to social injustice. Changed by these experiences, I was determined to do something with my life. And I knew this at 13. University was to be my way to independence Shalini Mahtani and my escape from marriage. The only problem was that my parents were adamantly opposed to me going to university. They were concerned that I would become even more outspoken and less suitable for marriage. I cried and begged from 13 to 18 – and studied all the time, while my friends have a much more balanced life. I did eventually go to university – and loved it. It further opened my eyes. My careers in the private sector were disappointing at best – as an accountant and a banker. Yes, the money was good and the skills I acquired were useful but I found that they created a false sense of self-worth – I was contributing nothing to society and people around me, were self obsessed. My role model, my grandfather. Wise, self-made, a

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“Shalini is an inspirational leader, a socially responsible citizen, and a courageous mother who has dedicated her life to serving the community in the area of social injustice and equal opportunity. She is the founder of a NGO dedicated to CSR, from a home-based operation with no external funding in 2003 to a new organization that works with over 100 companies across Asia on a budget of over HK$6.5 million today. She has also

contributed to the community in numerous ways by volunteering, building schools and providing financial advise to the victims of domestic violence. Her perseverance is admirable.” – Jon Reade

Champion for the Advancement of Women Stephen Golden, Head of Global Leadership & Diversity, Asia Pacific, Goldman Sachs (Presenter: Anne Wong, Director of Marketing, SCMP Publishers Ltd)

By Liana Cafolla

(Reprinted with permission from the South China Morning Post)

merican investment banking firm Goldman Sachs has a reputation for innovative thinking. It is not surprising, then, to find that when it comes to diversity and inclusion, the firm operates hundreds of programs to encourage the inclusion of its 34,000 or so employees around the globe. In Asia-Pacific, the program is led by Stephen Golden, head of global leadership and diversity in the region. Golden's career in the field of diversity and inclusion started almost by accident. When he was at school, he worked part-time in fast-food restaurant McDonald's, where he was

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assigned, along with all the other male employees, to work on the grill. The cash desk, he was told, was "a woman's job". "I was very frustrated by that," recalls Golden, who later succeeded in persuading the management to allow men to man the cash desks and women to flip the burgers. It was a good start to a career where personal conviction, perseverance and dedication to instilling change from the top down would be invaluable. These days, Golden's tussles are fought in Goldman Sachs' Hong Kong offices, but his enthusiasm about the subject is as apparent as in his McDonald's days. Golden says he is driven by a desire to effect change. "I'm

just passionate, as opposed to an expert, but what I soon discovered is that expertise can be learned, and passion is probably one of the most important parts and that's often innate." He says one way to promote women in the workplace is through the firm's inclusion and diversity programs, such as the Women's Network, an opportunity for women to gain the advantages from networking that men often find easily on the golf course or in the bar. The network holds regular meetings and events throughout the year. At Goldman Sachs, the network differs by allowing and encouraging the participation of men. It took some of the women by surprise, Golden says, but feedback is now largely positive. "A group can't necessarily just take care of itself. The majority needs to help the minorities in order to help them succeed, so it's very important for us that men be part of the women's network," he says. "[There's] a lot of men who can learn from women in the women's network as well." Goldman Sachs also runs a paid internship program called the Returnship program. The idea resulted from the recognition that a valuable pool of talent lay in the shadows of the banking world peopled by those who had left their jobs, perhaps to further their education or bring up a family. They might welcome a return to the fold, but often that was not easy to achieve, Golden says. He adds: "It allows them to come back into a real job for 10 weeks. We give them training to help build their skills, to rebuild their confidence, to build their network within the company ... but also, at the same time, they're doing on-the-job work, so they're seeing what it [is] really like to be back." Working women with families have particular challenges when it comes to integrating their work and home lives. When mid-level career women start to have children, integrating domestic responsibilities with a demanding job can often lead to a crisis. "Many of these women think they don't have options, and if they can't do both, they'll have to quit their job because they cannot quit their family responsibilities," Golden says. "We have a program for female associates - WCSI, or Women's Career Strategies Initiative, which helps women understand they do have choices and they do have role models they can learn from ... Mostly it's about exposing them to other women “Stephen has not only developed and launched diversity initiatives and programs that are unique but has also shared his thoughts and concepts freely in numerous conferences. He has actively concluded alliances with various organizations having a focus on equality. His involvement has thus given inspiration to many others to move ahead with the diversity programs in their companies. Gender diversity among senior execu-

who have been in that same situation." Another initiative is the sponsor program, which assigns two sponsors, either male or female, to high-performing women. The sponsors' role is get to know the women and recommend them when appropriate opportunities arise, and help the women identify any weaknesses and push them to work on improvStephen Golden ing those areas, Golden says. As with all the best diversity and inclusion programs, Golden's work is backed up by his firm at the highest level. "Diversity is at the very core of our ability to serve our clients well and to maximize return for our shareholders," says Lloyd Blankfein, the bank's chairman and CEO, on the firm's website. "Diversity supports and strengthens the firm's culture, and it reinforces our reputation as the employer of choice in our industry and beyond." Golden says diversity is important for the firm, its employees and its clients. "We honestly believe that if we're going to be the best company, and we're going to provide the best solutions for our clients, we need a diverse group of people who are focusing on coming up with those solutions," he says, adding that the more diverse your own story, the better the odds that you will come up with more creative and innovative solutions. His advice to companies seeking to build a diversity and inclusion program is to make it a business priority. One way to do that is by making a senior person within the organization the diversity champion. "If the message doesn't come from senior leadership, if it doesn't come from the top, then people don't take it as seriously," Golden says. "Don't say this is a women's issue and delegate it to women to solve - both men and women need to be engaged in the discussions of how to solve the diversity challenges that we have." tive levels is gaining wider acceptance. Under his leadership, the company now has the highest percentage of women at the VP and MD levels than it has ever had.” – Anne Wong

Best Company for Women McDonald’'s Restaurants (HK) Ltd (Presenter: Diana Hui, MD, Tiffany & Co)

By John Cremer

(Reprinted with permission from the South China Morning Post)

andy Lai Wai-sze's position as managing director of McDonald's Restaurants (Hong Kong) involves the supervision of more than 15,000 staff in over 220 restaurants, but it also proves a point. Her rise through the ranks ably demonstrates she is part of an organization where talent and training count. And the key principles that guide her management team - inclusion, diversity and creating opportunities - show it is possible to run a successful business that genuinely listens to employees and responds to their needs. "From the boardroom to the crew room, we are working every day to achieve these goals," Lai says. "It is important to create an environment where everyone can contribute their best. In that context, gender diversity has been identified as a top priority and one of the company's core global values." She is quick to emphasize, though, that this is nothing new. Since opening in Hong Kong in the mid-1970s, McDonald's has made a point of nurturing women leaders and providing them with training and development opportunities to attain senior executive roles. Similar attention has been given to promoting workplace equality, for ethical and practical reasons. "We have seen that having a diverse workplace plays a crucial role in business success," Lai says. "If you take Hong Kong as an example, more than 60 percent of our customers are female, so we also need a diverse team - from frontline to management - to enhance business performance and maximize profits." At present, about 62 percent of McDonald's employees in Hong Kong are women. Within the corporate hierarchy, they now hold roughly 50 percent of managerial positions and more than 60 percent of the senior executive roles. Several initiatives are in place to ensure future women leaders continue to come through the system. These include regular exchanges with markets, such as South Korea, to discuss best practices and new considerations. There is also “It is a role model company that keeps its promise in providing a harmonious and motivating work environment for women. Their commitment to creating a diverse workforce and gender diversity is proven by the high percentage of women holding management and executive positions. Initiatives and programs include setting up women community networks, creating mentor-

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an in-house women's leadership network at global, regional and local levels, which monitors progress and instigates change. And issues such as communication, education and advocacy are always on the agenda. "Every year, we conduct a survey to gather employee feedback; we review percentages and consider where in the company it may be necesRandy Lai sary to increase women's representation," Lai says. "I should make it clear, though, that, to us, all employees are valuable assets, so our mission is to strike the right balance and make sure everyone is treated fairly." To spread the message and avoid misinterpretation, the company has a structured communications strategy. This ensures employees and external stakeholders are well informed about changes or areas of policy that concern them. In part, the purpose is simply to let people know what is going on and why. Besides that, though, there is also a broader educational element. The objective is to explain the merits of having women in leadership roles and show how that has made McDonald's a better place to work and a more profitable organization. Looking ahead, Lai believes it is important to focus more on three specific aspects: networking, work-life balance, and fast-track training. There is, she notes, still much to learn from building stronger links within the international women's community and sharing relevant experience. It also makes sense to do more for working mothers, tailoring hours and benefits to their individual needs. "We already have a dedicated mentor program for female store managers in order to nurture more women leaders," Lai says. "This is specially designed for real high-flyers at the frontline. They will move up as operations consultants managing seven to eight restaurants." ing programs for women in managerial positions, providing flexible work hours, and supporting female employees to achieve work-life balance.” – Diana Hui

Dec China Amidst Softening Global Growth

Jing Ulrich Managing Director and Chairman of Global Markets, China J.P. Morgan Ms Ulrich will discuss the following timely topics: To avert a double-dip recession, developing countries need to stimulate domestic demand, while developed nations need to boost investment. What role will China play in the recovery and long-term global growth? Measures to combat property speculation have impacted sales volumes and prices, putting some developers at risk. With housing accounting for a large share of FAI, will China's low cost housing program offset the slowdown? While China's tightening program has helped rein in liquidity, some SMEs have struggled to obtain credit. Is shadow banking a systemic risk and is recent support for private enterprise a step toward broader policy easing? Jing Ulrich is J.P. Morgan's Managing Director and Chairman of Global Markets, China. She is responsible for covering the firm’s most senior global clients across all asset classes, and for maintaining relationships with executives at the helm of China’s leading enterprises and government entities.

Dec

Celebrating the 20th AmCham Human Capital Conference -

ASIA POWERING THE FUTURE OF THE GLOBAL ECONOMY: Preparing for the business and people management challenges ahead

Even in times of economic uncertainty, it is clear that organizations are turning to Asia to be the primary growth driver of their balance sheets.In this context, Asia management teams are faced with delivering significant growth in the coming three to five years. This brings major challenges in sourcing qualified staff, equipping the workforce and ensuring that senior leaders have the bandwidth and resilience to deliver on aggressive goals.

Dec Ties that Bind:

Economic and Trade Issues Lead American Interests in Asia

Ambassador James Keith Senior Director, McLarty Associates and Former US Consul General, Hong Kong Join us for this breakfast event as Mr James Keith outlines corporate responsibility in both the public and private sectors to sustain and nurture these economic relationships, which, will continue to lead the United States and Asian economies toward greater interdependence and will therefore demand more and more cooperation and collaboration. Ambassador James Keith, Senior Director, leads McLarty Associates’ China practice. During his 31-year career in the foreign service he became one of the US government’s top experts on China, serving as Deputy Assistant Secretary of State for China, NSC Director for China, Consul General in Hong Kong, and time in the US Embassy Beijing. He also has broad experience in Asia outside China. From 2007 to 2010, he was the US Ambassador to Malaysia, and was previously posted in Seoul and Jakarta, as well as serving as NSC Director for Southeast Asia.

For information, see website: www.amcham.org.hk Tel: (852) 2530 6900

Fax: (852) 2810 1289

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MEDIA WELCOME

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MEDIA WELCOME

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Venue: Renaissance Harbour View Hotel Oasis Room (8/F) 1 Harbour Road, Wanchai, Hong Kong Time: 12:00 - 2:00pm (Lunch included)

Venue: Renaissance Harbour View Hotel Concord Rooms, 8/F 1 Harbour Road, Wanchai, Hong Kong Time: 8:30am Registration/Coffee/ Sponsors' Exhibitions 9:00am – 4:00pm Conference (lunch included)

Venue: The American Club 49/F Floors 48-49, Exchange Square Two Central, Hong Kong Time: 8:00 - 9:30am (Continental breakfast ) Fee(s): Member Fee: HK$250 Non Member Fee: HK$350 Corporate Table Fee (10-12pax): HK$3,500 MEDIA WELCOME

Email: kalau@amcham.org.hk

2011 December

CONFIRMED SPEAKERS * Nick Avery, Head of Talent & Resourcing, Asia Pacific, HSBC * Sara Yang Bosco, President, Emerson Electric Asia-Pacific * Alan Darr, Director of Corporate HR Services, Shangri-La Hotels & Resorts * John Fleming, Principal and Chief Scientist, Customer Engagement & HumanSigma, Gallup * Brian Hults, VP, Global Organization & People Development, Newell Rubbermaid * Kyle Lundby, Director Asia Pacific, Valtera Corporation * Robin Moriarty, Managing Director HK-International, Kimberly-Clark North Asia * Mitya New, Managing Director, Leading Organisations * Emma Reynolds, Founder & CEO, E3 Reloaded * Murray Sargant, Vice President, Asia Pacific & Japan, SuccessFactors * Kin Chong U, Career Development Director, KPMG China * Andrew Warneck, Managing Principal, Leadership & Talent Consulting, Korn/Ferry International