biz.hk Nov 2012 by The American Chamber of Commerce in Hong Kong

va Gu nc ide ed Ed to uc a

tio

Journal of The American Chamber of Commerce in Hong Kong

www.amcham.org.hk

November 2012

THE ART OF LEADERSHIP: INSPIRING SOULS AND MINDS

CARRIE LAM CHIEF SECRETARY

COVER SPONSOR

“Did we miss anything?” The most important thing to me? Is to have a smooth and worry-free relocation “Crews at both ends were very professional, responsive and helpful. It’s been a great pleasure to work with Crown.” ~Hong Kong to Singapore

Crown service offerings include: s International & Domestic Shipment s Storage, Airfreight s Transit Insurance s Pet & Car Transfers s Immigration & Legalization s Settling-In

Tel: (852) 2636 8388 hongkong@crownrelo.com crownrelo.com/hongkong

Go knowing

November 2012

Contents

Vol 44 No 11 Richard R Vuylsteke

Editor-in-Chief Daniel Kwan

Managing Editor Kenny Lau

Publisher

WOMEN OF INFLUENCE

ENERGY

PHAMACEUTICAL

CHARITABLE FOUNDATION

Well known for her non-non-sense working style and commitment to Hong Kong, Chief Secretary for Administration Carrie Lam Cheng Yuet-Ngor at the annual WOI Conference talks about her vision and passion as a civil servant, policymaker as well as a mother and wife

ExxonMobil has expanded the scope of forecast in The Outlook for Energy to provide a much longer-term view of global energy trends of the next 28 years, a period during which worldwide population is expected to reach 9 billion

Pharmaceutical Committee holds a forum for a discussion on how to protect patient safety and maintain consumer confidence, in an effort to tackle the issue of counterfeit drugs and to build Hong Kong as a genuine medicine city

AmCham Charitable Foundation holds a charity dinner at Crown Wine Cellars, where Ira Dan Kaye Community Service Award recipient Liz Chamberlain (Co-Director of the Samaritans) talks about the work of suicidal prevention in Hong Kong

Advertising Sales Manager Regina Leung

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 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 Unit 1613 16/F, Workingbond Commercial Centre, 162 Prince Edward Road West, Kowloon ©The American Chamber of Commerce in Hong Kong, 2012 Library of Congress: LC 98-645652 For comments, please send to biz.hk@amcham.org.hk Single copy price HK$50 Annual subscription HK$600/US$90

AMCHAM NEWS AND VIEWS 04 Chairman’s Memo James Sun talks about issues that lie ahead in the bilateral relationship between the US and China and what AmCham is doing in its dialogue with the governments of Hong Kong, Mainland China and the US on behalf of the business community

06 New Business Contacts 34 executives joined AmCham’s business network last month

WINNERS OF WOI 2012 AWARDS 18 Technology Eases The Way Towards Flexible Approach Recipient of the Best Company Award PepsiCo Asia-Pacific has been initiating diversity in the workplace since the 1950s and is now using technology to provide more flexibility and a work-life balance for employees

19 South Africa Created Vision Keith Pogson, Managing Partner for Asia-Pacific Financial Services at Ernst & Young and President of the Hong Kong Institute of Certified Public Accountants, is named Champion for the Advancement of Women

44 Mark Your Calendar

WOMEN OF INFLUENCE

20 Keeping Hong Kong Safe and Sound

08 The Art of Leadership: Inspiring Souls and Minds Well known for her non-non-sense working style and commitment to Hong Kong, Chief Secretary Carrie Lam Cheng Yuet-Ngor talks about her vision and passion as a civil servant, policymaker as well as a mother and wife

11 Creating Your Own Success The success story of Dr Azita Owlia, Vice President (North Asia) of Connell Brothers, who has overcome a life full of surprises and struggles to achieve what might even question whether it is humanly possible

13 Technology, Leadership & Branding A summary of 2012 WOI Conference & Awards breakout sessions entitled Technology – The Future of Work; Authentic Leadership: Being True to Yourself; and Personal Branding: Developing Your Own Internal and External Brand

biz.hk 11 • 2012

Awarded Professional of the Year, Professor Sian Griffiths of the Chinese University of Hong Kong, was initially invited to Hong Kong to co-chair the inquiry into the 2003 SARS epidemic and is now here to develop programs and initiatives

21 Fight for Animal Rights Jill Robinson, CEO of Animal Asia and named Master in Charity, Arts or Culture, continues on campaigns and initiatives that include promoting dog and cat welfare and improving the enclosures, care and handling of captive animals

22 Completely Unexpected Co-founder and director of Mother’s Choice Phyllis Marwah receives the Entrepreneur of the Year award; her organization has provided counseling and shelter to more than 51,000 single girls facing crisis pregnancies

biz.hk 11 • 2012

ENERGY 24 The Energy Landscape: A View to 2040 ExxonMobil has expanded the scope of a forecast to provide a much longer-term view of global energy trends of the next 28 years

PHARMACEUTICAL 28 Building Hong Kong as a Genuine Medicine City AmCham’s Pharmaceutical Committee holds a forum with leading experts for a discussion on how to protect patient safety and maintain consumer confidence

HEALTHCARE & WELLNESS 32 Launch of Consultation on Code The Department of Health has launched a consultation on the draft Hong Kong Code of Marketing and Quality of Formula Milk and Related Products, and Food Products for Infants and Young Children

CHARITABLE FOUNDATION 36 A Night Out for a Worthy Cause AmCham Charitable Foundation holds a charity dinner at Crown Wine Cellars

ELECTION CENTRAL 42 2012 US Election Live in Central AmCham organizes an “Election Central” event to give its members and other in the Hong Kong community an opportunity to watch live coverage of the US presidential election on CNN

COVER SPONSOR

Chairman’s Memo Board of Governors Chairman James Sun Vice Chairman Richard Weisman Treasurer Peter Levesque Executive Committee Janet De Silva, Frank Lavin, Anita Leung Philip Leung, Belinda Lui, Alan Turley Governors Evan Auyang, Sara Yang Bosco, Brian Brenner, Tom Burns, Walter Dias, Rob Glucksman, Toby Marion, Thomas Nelson, Andrea Richey, Colin Tam, Elizabeth L Thomson, Frank Wong, Shengman Zhang Ex-Officio Governor President

Robert Chipman Richard R Vuylsteke

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

Rex Engelking Andre Leroy Donald Meyer Frank Wong Susan Reingold Robert Grieves

Energy Dominic Yin Entrepreneurs/SME Donald Austin Environment Bradley Punu Financial Services Catherine Simmons Brock Wilson Food & Beverage Hospitality & Tourism Human Capital Information & Communications Technology Insurance & Healthcare

Veronica Sze Damien Lee Janet De Silva Peter Liu

Rex Engelking Owen Belman Hanif Kanji Intellectual Property Gabriela Kennedy Amy Lee Law Clara Ingen-Housz Pharmaceutical Stephen Leung Real Estate Alan Seigrist Senior Financial Forum Alvin Miyasato Senior HR Forum Jacqueline Algar Sports & Entertainment Raymond Roessel Taxation Evan Blanco Trade & Investment Patrick Wu Transportation & Logistics Brian Miller Women of Influence Jennifer Van Dale Young Professionals Sherry Lin

Dear Fellow Members: The past few weeks are in some ways history in the making. Across the Pacific, leadership changes in both China and the United States had us all glued to our TV sets. Although the results were not surprising (maybe, to some, yes), we can generally agree that it was just the beginning. With the leadership issues basically settled, leaders in both countries now face daunting challenges ahead. How the US and China – the world’s first and second biggest economies – deal with these issues will inevitably affect us all. The “fiscal cliff’” is all real. Words from Washington tell us that we should expect a rough road ahead as the US Congress apparently has no appetite for an easy compromise. Let’s hope common sense will prevail and we will not see a repeat of the credit downgrading fiasco happened in the summer of 2011 again.

And there will be changes in the Obama administration’s line-up too. Among others, two key positions are of particular significance to Sino-US relations. Who will take over from Hillary Clinton and Tim Geithner is the question on many people’s mind. It is not clear at this stage who will be their successors but hope is high that the President will name someone with a solid background on Asia (and China) – if not for the secretary positions at least at a senior level. Equally challenging on China’s side is what the new leadership has set out to accomplish in the remainder of this decade – double average household incomes by 2020. Accomplishment of this task will hold the key of China’s desired transformation from an investment-driven economy to a consumption-oriented one (much like other developed economies). Such a goal is of course welcome for the Chinese population but also great news for western businesses. A vibrant and sustainable boom of the China market is certainly what western businesses want as Europe and the US continue to face serious headwinds in their uphill climb from economic slowdown. It is therefore heartening to see that President Barack Obama and Premier Wen Jiabao have taken time out to meet in Cambodia during the just concluded East Asia Summit in Cambodia. Let’s not forget, too much are at stakes for a constructive Sino-US relationship. Leadership changes or not, the two countries must see the other as friend instead of foe. And there is no greater desire for the business community than to see a stable and working relationship between our two countries. This brings me to our 2012 Beijing

biz.hk 11• 2012

Doorknock. Originally penciled in for March, we have postponed the visit to November, taking into account the political changes I’ve just mentioned and a few other logistical issues. I am glad to report that this year again we have formed a strong team for our Beijing trip and some solid meetings with senior Chinese officials have been confirmed. Over the past few months as we prepared for our Doorknock visit, we have been engaging with Hong Kong government officials and policymakers to better understand Hong Kong’s future roles under China’s 12th Five-Year Plan. We have also gathered opinions and views from our Washington Doorknock in June. For example, how can Hong Kong benefit – and contribute – in Chinese companies’ journey of going global? And from the internationalization of the Chinese currency? We will be raising these issues in our meetings in Beijing and we will report to you on our visit in the next issue. Before I close, I would like to extend a big thank you to all of you who have made our two major events in the past month big successes – the annual Women of Influence conference and awards, and our Election Central. Not only did we have fantastic turnouts, the enthusiastic response and feedback we received are truly encouraging. And for all the sponsors who have given us your tremendous support, we look forward to a great and beautiful relationship in the years to come. Thank you.

James Sun Chairman

biz.hk 11 • 2012

New

Business Contacts The following people are new AmCham members: AlixPartners Hong Kong Limited Erin Plante Vice President

Hong Kong University of Science & Technology Ruby Lam Assistant Director, MBA Career Services

Avature Julian Boylan Senior Vice President - Global Markets

Cathay Pacific Airways Ltd Steven Lawrence Training & Development Manager

Community Business Limited Fern Ngai CEO

Credit Suisse (Hong Kong) Ltd Brock Wilson Vice President, Credit Suisse AG Hong Kong Branch

Crown Worldwide (HK) Limited Magali Delafosse Regional HR Director

DLA Piper Hong Kong Jeannette Tam Associate

Emerson Electric Asia-Pacific

Hult International Business School Yoshiharu Mitsui Executive Director, Corporate Relations - Asia

ID&D Group Ltd Gilbert Lau Managing Partner Sisi Wu Project Consultant Eric Castles Managing Partner

Inchcape Hong Kong Johnny Ng Managing Director Inchcape Motors International

Jardine Matheson Ltd Kenneth Bell Chief Executive Officer, Tradeport Hong Kong Ltd

Kiabi International Supply Services Ltd

Jacob Fuller Planning & Development Analyst, Embedded Computing Bob Aylsworth VP/Chief Innovation Officer, Technology Business Leader

Noel Brown Regional Technical Director

Experian HK Ltd

KPMG

Kobre & Kim LLP Calvin Koo Associate

Jerry Ying Head of Operations, Experian Greater China

Jean-Francois Raymond Senior Manager

GCP Asia Ltd

Lewis Communications Limited

Matthew Flynn Partner Steve Hardacre Partner Gavin Wyborn Partner

Oracle Systems Hong Kong Limited Michael Julian Strategic Business Manager

MOL Liner Ltd James Galligan Director Sales and Customer Service Asia

PricewaterhouseCoopers Anthony Evangelista Partner

Skadden, Arps, Slate, Meagher & Flom James McCurley Associate

Standard Chartered Bank Jammy Chen General Manager, Hong Kong, SME Banking

Toppan Vite Limited Melissa Schatz SVP Marketing

WOMEN OF INFLUENCE CONFERENCE & AWARDS 2012

University of Hong Kong Mary Miller Program Director

PRESENTED BY

W L Gore & Associates (HK) Ltd Richard Sun Network Systems Engineer

Annie Ho Account Director Greg Kwan Senior Account Executive Emma Jenkins Associate Director

PLATINUM SPONSOR

GOLD SPONSORS

SILVER SPONSORS

View our other members at:

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

biz.hk 11 • 2012

BRONZE SPONSORS

WOMEN OF INFLUENCE

“A strong and effective leader is one who knows his/her business, approaches his/her work with passion, actively participates in all aspects of the organization’s work and is able to inspire and mobilize staff.”

A new role

The Art of Leadership: Inspiring Souls and Minds

Chief Secretary Carrie Lam Cheng Yuet-Ngor was the morning keynote speaker of the annual Women of Influence Conference. Well known for her no-non-sense working style and commitment to Hong Kong, Cheng talks about her vision and passion as a civil servant, policymaker as well as a mother and wife

By Kenny Lau

ince first joining the civil service in 1980, Carrie Lam Cheng Yuet-Ngor has dedicated her life to serving the people of Hong Kong in the public sector. It is a desire so strong that it was the only job she applied for upon graduating from the University of Hong Kong more than 30 years ago. “I had made up my mind as a teenage that I really want to serve the

public,” says Lam, who is the morning keynote speaker of the 2012 Women of Influence Conference. “A strong desire to serve is the driving force for me to continue to operate today; it was exactly the same sentiment, supported by my husband, that I had decided to stay [and assume the role of Chief Secretary for Administration].” Lam was the Secretary for Development in the previous administration.

“It is also this desire to provide a better Hong Kong and a better environment for the next generation that helps me to overcome some of the challenges and difficulties,” she adds. “Up to this point, I can confidently tell you that I have a lot of faith in the people of Hong Kong, who still put their faith and trust in the administration and would like us to enhance our community not only for them but for their next generation as well.”

biz.hk 11 • 2012

In the past few months since assuming the “number two” position in the administration, Lam has made tremendous efforts to making a difference on behalf of the people, getting in touch with stakeholders of the community of Hong Kong and paying close attention to an array of social issues. “People tell me that I seem to be everywhere, rushing from one topic to another,” she says. “Perhaps this is because of my habit of getting myself involved in every aspect of the organization’s work.” Unlike her previous positions in various departments, which were more of a specialized portfolio of affairs on their own, Lam as Chief Secretary now oversees a dozen policy bureaus ranging from social security to law and order, from education to environment protection, from transport and housing to infrastructure development. “I attempt to spend as much time as possible to understand and to help in every aspect of the government’s work,” Lam says. “But I am learning to be more detached so that I would not be rushing around or giving people an impression that I want to predominate

biz.hk 11 • 2012

this organization.” Despite being the only female principal officer among 15 in the current administration, Lam believes it is not an issue hindering her performance. “In our daily work of policy formulation, execution and balancing the various needs of bureaus and departments, gender never features,” she says. “It doesn’t make a difference at all. At least I do not feel that it is making any difference on the way we deliberate or even argue on issues.” In terms of recruitment or career advancement opportunities within the civil service, “I can assure you that it is absolutely operating on equal opportunities and meritocracy,” she points out. “If not enough women are seen in these senior positions, it has nothing to do with discrimination. In fact, we are now having more female than male in some of the very important grades within the HKSAR administration.”

Leadership In her role as a leader across different governmental departments, Lam takes it as a basic need to be able to inspire and mobilize staff. “It is because of my conviction that we should lead by example, not by authority,” she says. “Please don’t feel that I have a lot of power just because I am overseeing 160,000 civil servants. I’d rather be someone who is able to inspire and to demonstrate by setting an example of how we could do good as a team.” Leadership is an art of accomplishing more than the science of management, Lam tells the audience. “A strong and effective leader is one who knows his/her business, approaches his/her

work with passion, actively participates in all aspects of the organization’s work and is able to inspire and mobilize staff. “It takes vision and imagination, instead of only confining yourself to the hardcore theories of what management education would have told you.” Leadership is also about responsibility, Lam points out, noting strong values, hard work, discipline, exceptional standards and high integrity as core elements. “It is not a responsibility that you can simply delegate or outsource. “As leaders we have to be very open-minded and accommodating, encouraging our colleagues, particularly our subordinates, to express to us freely their ideas, comments and feedbacks in order to build a team of mutual trust, continue to generate innovative ideas, and bring an organization forward.” “The day soldiers stop bringing you their problems is the day you have stopped leading them,” she says quoting former US Secretary of State Colin Powell. Leaders are articulate and not afraid of upsetting people, Lam adds. “Trying to get everyone to like you is actually a sign of mediocrity,” she notes. “This may sound very arrogant, but in practice this is very true, particularly in a highly competitive environment where there is always a need to look for innovative ideas.” “Of course we need to realize it is not upsetting people for the purpose of upsetting people. It is about getting things done,” she stresses.

Poverty alleviation Over the years as a civil servant

delivering service to the community, Lam has come to rely on certain values in her approach to making a difference effectively, regardless of the nature of the task on hand. That is, leadership must be mission-driven, pragmatic, and people-oriented. Leadership has to be missiondriven in order to set a very clear direction, particularly in the public service sector, “because at the end of the day people are counting on us to make their lives better and more livable,” she says, explaining the principles behind her work. As Director of Social Welfare Department between 2000 and 2003, Lam set at a very early stage a missiondriven goal of building a more caring and just society, and introduced a number of reforms making the welfare sector more entrepreneurial, thus enhancing effectiveness. “I realized resources were limited, and the only way to ensure limited resources would benefit more directly those in need was to use these resources in an optimal way,” she recalls. In the five years as Secretary for Development, Lam focused not only on major infrastructure development but also on smaller city improvements. “I took it as my mission to transform Hong Kong into a higher quality, more progressive, balanced and diversified city,” she notes. “You would have seen me on issues like heritage conservation, preservation of the environment and protection of the harbor front, all to make our city greener and more enjoyable.” Now as Chief Secretary, instead of trying to tackle issues of so many areas, she has dedicated her job to alleviation of poverty. “Hong Kong is a very affluent city but there are some dire problems among those who are disadvantaged,” she says of her vision. “We are now working within our capacity on the issue, including setting a poverty line, to bring about change for the needy as the problem has yet to be resolved.” In order to deliver results, leaders also need to be pragmatic, with an ability to execute and carry out plans under difficult circumstances, Lam

notes. “There is no point just to be very romantic about the issues when you could not actually execute on a plan or strike a pragmatic balance between two opposing views,” a mentality particularly vital to a government poised to move people’s mandates forward in a more coherent and coordinated manner. Leadership has to be peopleoriented because the public is not confined to boundaries of an organization, Lam points out. “It has been the underlying theme of the my work in the past 30 years; it is not a slogan but an important proposition that has to be put into practice in policy formulation and the way we engage with the people. “Thus, we are spending more and more time on public engagement. Hopefully, we could achieve a broadbased consensus on which we could move forward.”

Heart-felt advice Passion, courage, and perseverance are also important keys, Lam says. “I always feel that we need not as leaders put on a very straight face and that we should allow ourselves to be compassionate, be emotional at times, and to be touched by the people and things that we see. Compassion and emotion are sometimes driving force pushing us towards better ways to solve some of our problems.” In other words, “never give up despite whatever difficulties you may encounter; stay calm and cool; and

prepare to make mistakes as nobody is perfect and well-judgment may sometimes fail us,” she says. Lastly, “never, although I have, become so consumed by your career that nothing is left for yourself and your family; have fun in command; strike for a balance and get things done; and more importantly, take leave when you have earned it, and encourage others to do the same.” A mother of two, Lam takes the balance between being a mother and her job as a discipline, especially when her boys were young, to spend as much time as possible with her family. “I remember my younger son was only six when I took the job at Social Welfare Department; and I refused to spend my nights out so that I could be home for dinner and cooking dinners as I’ve never had a domestic helper.” “They are now at university in the UK but we talk every night,” she says. “Although it has not been easy, I confess, not to have a shoulder to lie upon when life becomes a little tough, when my husband is also away. A very strong feeling of loneliness has been with me in the last four months. “But I now believe in quality time; since my husband and I have been married for almost 30 years, quality time is sometimes more important than seeing each other every night. So, I am very much looking forward to spending some quality time with my husband and sons comes this December, when I will take my well-earned leave.”

biz.hk 11 • 2012

Creating Your Own Success By Kenny Lau

r Azita Owlia has nothing short to write about on her resume: she is currently VP (North Asia) of Connell Brothers, a leader in specialty chemicals, personal care, pharmaceuticals and food ingredients distribution in the Pacific Rim, and former Senior VP (Asia Pacific) of Bayer Material Science leading a polyurethane and thermoplastic business with annual sales of more than US$1 billion. She is also a holder of a Bachelor’s, Master’s and Doctorate degrees in Chemistry, in addition to her MBA. She has certainly had a very distinguished career and a high degree of achievement, to an extent that some might even question whether it is humanly possible. The success story of Owlia suggests so. But, it hasn’t been an

biz.hk 11 • 2012

easy journey and life hasn’t been so kind to the last of seven children from a “loving and caring” Iranian family, as her life has been full of surprises. Starting at an early age, Owlia changed 11 schools in 12 years, all in Iran as her family moved around to accommodate her father’s changing job assignment. “I had to learn to meet, greet, make quick friends and say goodbye fast,” she describes. “I suppose in today’s lifestyle, I would have had more than 500 connections on LinkedIn or Facebook by the time I was 16.”

A new life Owlia was ambitious to become a physician. Then, a single event completely altered the course of her life. A few months before high school graduation, her mother died unexpectedly. It

was a devastating blow. “Her wishes and hopes, her wisdom, her scars, her care and love have been my guiding lights,” she says of her loving mother. For a change of atmosphere, with her father Owlia went to the US upon graduation. Shortly after, a revolution in Iran started and since then she has not gone back to her native country. “I was a somewhat sheltered 17-year-old girl in a foreign country with limited language skills and without a visa to stay,” she recalls. “It was the most challenging time of my life.” It was with determination that she started a new life by living on her own, managed to get a visa to stay, earned a Bachelor’s, Master’s and a PhD in Chemistry, met her husband somewhere along the way and married him a year before finishing school, and even landed her first professional job six

months before graduation. “With all the difficulties, I still found my experience exciting, enriching and fulfilling,” she strongly believes. “I had a chance to exercise my independence and autonomy to build my future in my own way.” Sadly, her husband died unexpectedly eight years ago, leaving her with their six-year-old son who is autistic. “The reality is that life is complex and at times difficult,” Owlia says. “The only constant in life is change itself; but change comes with opportunities.” “Being optimistic and having an open mind has helped me embrace change faster and be a better risk-taker,” she says. “As humans, we have an enormous coping mechanism, and we are all much stronger than what we give ourselves credit for. So, resilience is key and determination is priceless.”

Create my own space A few months into her first job at Bayer Material Science, Owlia realized her aspiration was not to be a chemist but to pursue a role of broader perspective and business-minded. “I decided that I needed to work on expanding my boundary and create my own space,” she says of her approach in career building. “I volunteered for extra projects and even created my own projects based on the needs of organization. It allowed me to get more exposure to a variety of disciplines and access to different people including senior management.” “I vividly remember how we were able to accomplish objectives of a five-year plan within a year,” Owlia recalls. Yet, she was denied time after time opportunities to take on a business role, even as she earned an MBA degree. “It was frustrating. I didn’t succeed because supposedly I didn’t have the experience.” “But I would not take ‘No’ for an answer,” she adds. “I kept trying until I landed a job as a technical marketing manager.” In two years, she was appointed global head of the business

Technology, Leadership and Branding:

“We often confuse success with what we achieve at work...I measure my success based on how well I can balance my personal, professional and social needs. In fact, we all have a bigger purpose in life than just selfmanagement or responsibility to a select few around us, and I know I stand here today because of the sacrifices others have made.” division, a US$20-million medium-sized unit; and it opened the door to subsequent roles of increased responsibility. Owlia was offered to relocate to Hong Kong as Senior VP five years ago. “It would have been a 30-second decision but took me a day to accept the job, only because I wanted to check with my son’s teacher for his special needs and to make sure that it was a good move for him,” she says. “I then sold my house and took care of all my belongings in a month and moved to Hong Kong, and it turned out to be my best decision ever as my son has flourished.” “My son is indeed my number one priority although I spend a significant portion of my life with work,” she adds. “When he is off from school, with the exception of full summer, I am off too, and together we get to do activities and sometimes travel to explore different cultures.” “We often confuse success with what we achieve at work,” Owlia says. “I measure my success based on how well I can balance my personal, professional and social needs. In fact, we all have a bigger purpose in life than just self-management or responsibility to a select few around us, and I know I stand here today because of the sacrifices others have made.”

Life a journey, not destination Owlia initiated a project a few years ago putting together a small team to develop solutions and business models focused on social transformation, linking corporations with NGOs and

Themes for Breakout Sessions By Nadine Bateman

his year's Women of Influence Conference and Awards included three fascinating breakout sessions entitled Technology – The Future of Work: Making Technology Work for You; Authentic Leadership: Being True to Yourself and Personal Branding: Developing Your Own Internal and External Brand. The speakers at the technology session were Jayne Leung, Director of North Asia Facebook and Dr Marissa Dean, Post-Doctoral Research Fellow, University of Hong Kong and the moderator was Hélène Liu, Director of The MasterMinds. Dr Dean began by impressing upon the audience how much technology is changing “everything we do and how we exist” and offered an insight into how to make sense of these changes by identifying three basic trends. The first was the decentralization of work and the boundaries that are separating work and non-work activities. She pointed out that the culture of a nine-to-five working day and the traditional cubicle office space are changing to a 24-hour “carry your office in your pocket” culture thanks to technology such as smart phones.

government for the purpose of creating sustainable societies. “It is about creating shared values, something that I have great passion for,” she says. About a year ago, Owlia declined an offer for a much more prominent role back in the US because “there is still a lot for [her and her] son to experience here,” and has since taken a new role at Connell Brothers, where she now enjoys a better balance of personal and professional life. “Don’t get me wrong, I still travel 80 percent of my time and have a demanding schedule, but somehow have a little more time to spend with my teenage son,” she says. “Creativity and imagination have allowed me throughout my career to imagine the differences that can be made, to have a sense of empathy, to put myself in others’ shoes, to gain an appreciation for different views, and to appreciate diversity,” Owlia says reflecting on her past years. “If I had to do things all over again, I would have put much more attention to relationship management, which can be as important as hard work.” “So my suggestion would be: Get to know yourself through reflection; know what you want and go after it; learn to embrace change and have an open mind; appreciate others’ perspectives; and work on relationship management through networking and not politicking,” Owlia recommends. “Most importantly, be yourself and be authentic, and remember life is short…it is a journey and not a destination. Enjoy your life.”

biz.hk 11 • 2012

New approach Dean said that more and more people are now connected through technology such as cloud computing, which was good news for women who can “extract and contribute to this”. She went on to say that the old adage that knowledge is power is “deluded”

biz.hk 11 • 2012

Dr Marissa Dean

because we now all have access to the same information. According to Dean, this means there is a need to establish new approaches among organizations which should make greater use of collective wisdom and promote a horizontal power structure as opposed the traditional linear one. She told how her research focuses on Generation Y [anyone who are in the 20s to 30s] a population demographic of 2.2 billion among which she has identified two factors that she says influence their world view: technology and anxiety. There was much laughter from the audience when Dean suggested that this generation doesn’t know “life BC [before connectivity]” and that they are used to communicating in network societies in a way that previous generations are not. Their anxiety, she said, is about global conflict and environmental issues. Dean said it's important to know this, especially if you are a manager who works with this generation. She also pointed out that, as people are working longer than ever before, there

could be up to four generations in the workplace which she believed presents a challenge and that “you need to be a diplomatic manager today”. The second trend Dean's research has identified is what she terms “mastering” also known as increased specialization in the workplace. She suggested that general knowledge doesn't have the same currency it once had and advised that [in order to succeed] “you need to be the expert in your company”. Said Dean: “People used to be 'jack of all trades' and were guaranteed a job for life. That’s no longer the case.” She predicted that Generation Y will have had as many as 12 jobs by the age of 38.

Developing your tool kit Drawing on history to illustrate some of her points, Dean cited the Industrial Revolution and made the claim that we are in the middle of one right now. She reminded the audience how master craftsmen existed before everything was mechanized and mass production was created and that today's technology is creating a new need for master craftsmen of a different kind. Said Dean: “The difference is, in the old days master craftsmen carved the wood [for example] and people would come from miles around to buy it, but now you need to be connected [in order to market your product or skill].” Moving on to the subject of gender and technology, Dean said that women comprised just seven to eight percent of the industry’s workforce but that there are women who are “developing the tool kit” to achieve technical literacy and that this is essential because, she cautioned “if you don't have this you're doomed”. Dean said there were three obstacles which prevented more women from having a greater presence in the technology industry: that they don't have the same skill set as their male co-workers; they have the same skill

colleges] and that technology is often perceived to be a dull and boring subject by girl students whose approach to learning it is not the same [as the male approach] yet it is men who tend to do the teaching. She concluded on an upbeat note by saying confidently: “I'm sure, in five to 10 years, the WOI awards will have very positive things to say about women in technology.”

Leadership

Jayne Leung(left) Helene Liu(right)

set but it's not recognized because of their gender; there is no flexibility in the traditional workplace. However, Dean had good news too, saying that “as technology increases, gender will move to the background and a lot of organizations will be contracting out specialty work, which is good news for women.” She concluded by saying that, as the ethos or “consciousness” of work is changing, we must go forward with confidence and “experience a rebirth”.

The authentic you Next to speak was Jayne Leung of Facebook, who joined the company two years ago when she realized that social technology was transforming the way we work and was “not just playing!” She quoted examples of how businesses have benefitted, such as Samsung which she said could attribute US$130million in sales to social technology. Leung offered some tips on how to leverage social media to facilitate work, such as using groups/forums on Facebook to help reduce the number of emails you send and receive. She also discussed the notion of building an authentic identity on social media and pointed out that new technology

means “we're so connected we can't hide [anywhere] in the world”. This meant that people such as prospective employers were likely to view our Facebook profile, and that – far from being something negative – that “offered a great opportunity to build an authentic identity.” Leung said her company was well aware of the privacy issues on Facebook and also the “different interpretations [of privacy] by different generations” and reminded us that it had added a number of enhancements that allowed users to customize their Facebook page for this purpose. Asked about the representation of women in the technology industry, Leung said that more women than men use Facebook adding that her company makes a conscious effort to promote diversity and that there is “a lot of talent in this part of the world where gender doesn't make a difference”. However, she conceded that “the engineering world has fewer female graduates” and says Facebook “addresses that issue with internal programs”. Dr Dean said that girls are using technology, just not creating it, and that the industry is 80 percent male dominated. She said the problem begins with education [in schools and

biz.hk 11 • 2012

Meanwhile, the session on Authentic Leadership was taking place in another room [and repeated after a mid-morning coffee break, for those who wanted to attend more than one breakout session]. It featured a panel of charismatic, inspirational women who shared their personal stories with the audience. Moderator, Stephen Golden, Head of Global Leadership & Diversity, Asia Pacific, Goldman Sachs, opened the session by saying that there was no single definition of a 21st Century leadership concept but that authentic leaders were individuals with high self-awareness who lead with their hearts as well as their minds. Gulnar Vaswani, Principal Consultant of Best Foot Forward International, told the audience about her early ambitions which began in Miami and were “a typical ladder: a linear model of growth” that she had thought through and meticulously planned. Yet, unexpectedly, her life had “moved in a more organic way”. She described authentic leadership as “a sense of being original” and quoted Michelangelo who, when praised for the creation of the David, said “I didn't do anything. I just took away the pieces and it was already there.” She went on to point out that there's a distinction between leadership and management: companies appoint managers but leaders are self-appointed.

Purpose and value The next inspirational woman to chart her life's journey was Diana

biz.hk 11 • 2012

Authentic leadership panel (from left): Gulnar Vaswani, Diana Tsui, Jean Sung, and Stephen Golden

Personal branding panel (from left): Liz Luya, Claire Fenner, John Eyres, and Karin Malmstrom

Tsui, Head of Corporate Social Responsibility & Diversity at KPMG. She described how she was born in Mainland China and moved to Hong Kong in the late 1970s at the age of 10. She recalled how the concept of authenticity and “who you are as an individual” didn't exist on the Mainland in those days of the Cultural Revolution. It was a subject that was never discussed by her parents, conse-

quently, she had no “no sense of self or any aspirations” but that living in Hong Kong and then receiving a liberal arts education in the US, helped her to “understand the individual” and “really opened my eyes to potential.” She went on to work for Nike where she was asked to invest in major social initiatives such as the issue of child labor in China, and that, she said, was

when she “found her sense of purpose” and saw what she could do to help to offer people in need while still working in the corporate world. Tsui then joined an international humanitarian organization but stresses it was not the soft option some people might imagine and that she was working long hours, spending half her time travelling and, therefore, not seeing her family enough – for half the salary she'd previously earned. She says what kept her motivated was that she had a great mentor: a man of 76 who still had a mortgage and had devoted his life to charity and who taught her that it's not the money that matters, but “your sense of purpose and value”.

Love what you do Jean Sung, Executive Director & Manager, Global Philanthropy, Asia Pacific, JP Morgan offered more pearls of wisdom. She said she believed that the definition of authentic leadership was to be true to yourself, know the right things to do and do them to the best of your ability. Sung advised “act out your passion every day and don't beat yourself up about mistakes.” She also declared that if you go for a job interview where you have to think about what you say then it's probably not the right job for you, concluding: “Love what you do and do it for the right reasons.” In a lively debate, the panel invited to attend the session on personal branding echoed similar sentiments. Moderator Karin Malmstrom, Director, China & Hong Kong, Cotton Council International, said: “Be comfortable in your own skin: people are struggling to be their real selves – there’s got to be a kernel of you in your work.” While John Eyres, Managing Director, Links Recruitment, said: “You're only as good as your team…find someone who helps you grow – who empowers you.”

Branding yourself Liz Luya, Founder & Director, Luya Associates, shared the story of a business woman she knew who didn't like self-promotion and who was afraid of being introduced at networking events in case she was asked awkward questions and made to look a fool in front of a lot of people. Luya offered advice about the position you choose at the table and said to sit close: “The closer the better [to the person/people you need to connect with]. That way you’re more likely to have a [proper] conversation and you don’t have to speak too loudly.” She also suggested always having done some basic research on two or three topical subjects and to ask questions. Eyres reiterated this advice, adding: “You're judged by the questions you ask, not the advice you give.” Claire Fenner, Co-Founder & Global CEO, Heels & Deals Ltd., said that authenticity in branding is crucial and that “you have to live your personal brand in order to have credibility”. She advised taking inspiration from successful role models and looking at helpful websites such as www.shebrand.com In summing up, John Eyres suggested the following four points: 1) Work with people who empower you (your team); 2) Remember that your personal brand is something that evolves; 3) Be authentic; 4) Listen to feedback from others.

AmCham President Richard Vuylsteke gives special recognition to Jennifer Van Dale, left, WOI Committee Co-chair, and Ingrun Alsleben, Chair of the WOI Judging Panel.

"The annual Women of Influence Conference and Awards is genuinely one of the highlights of the AmCham year," says Richard Vuylsteke, AmCham President. "Besides superb networking at the event, the intellectual stimulation is extraordinary - great keynote speakers as well as panel discussions that never seem to last long enough because there are so many insights. "Besides all that, I think people walk away inspired by the stories they hear, especially from the award winners." "Much of the success of the WOI conference over the past three years is a product of the exceptional leadership of Jennifer Van Dale, co-chair of WOI Committee, and Ingrun Alsleben, who has chaired the panel of judges for the WOI awards," Vuylsteke says. "Both of these volunteer leaders have of course devoted countless hours of their time to the conference, but most importantly they have brought great enthusiasm, creativity, and insight to the whole program. We sincerely thank them for their service."

biz.hk 11 • 2012

WINNERS OF THE WOI 2012 Awards

Umran Beba (Left) and Jennifer Van Dale

Technology Eases the Way towards

Flexible Approach By Tracey Furniss

epsiCo Asia-Pacific region is the recipient of the Best Company for Women award this year and, according to Umran Beba, president, Asia-Pacific region, PepsiCo, has been initiating diversity in the workplace since the 1950s, but more so in the past five to 10 years. “PepsiCo believes in flexibility and a work-life balance,” Beba says, pointing out that women often need this flexibility to fit in with family commitments. “Technology these days allows for this flexibility as working from home or any location is possible.” PepsiCo, which endorses the United Nations’ women’s empowerment principals, also allows for a compressed working week in the summer months, part-time work and birthdays off in lieu as part of its

work-life balance. “It's important to have management support for a flexible working arrangement,” says Beba, who explains that embedded in the mid-year review cycle is the question, “What is the one simple thing outside of formal policy, as your manager, that I can do for you to improve your work-life quality?” Simple things usually make the biggest impact. “Answers to the One Simple Thing initiative have included arranging business travel in the week not at weekends, leaving early to coach a child's sports team one day a week and no meetings before 9am or after 5pm.” One of PepsiCo’s leading initiatives for women is the PepsiCo’s Women’s Inspiration Network (PepsiCo WIN) which is an interactive online network offering global

women’s perspective and idea sharing from leaders, innovators and other women around the world. WIN supports balanced and healthier lives with a focus on supporting environmental sustainability. “Our many sponsors and partners share information and perspectives, companies share with other companies,” Beba says. “Role modeling is important as it increases [the idea of] ‘I can do it too’.” In Asia-Pacific, members of the executive committee mentor highperforming female associates. In Asia, Africa and the Middle East, the company celebrates International Woman’s Day. The Asia-Pacific region of PepsiCo covers 24 countries, with 5,700 employees of whom there are 21 nationalities and 37 per cent female executives. Globally, there are more than 30 percent senior female executives. Beba says women receive fair treatment at PepsiCo, with promotion linked to performance and targets achieved, merit increases and bonus. Training and development programs are part of the company’s strategy with inclusion training for all managers and leaders. “We also have a powerful woman program and diamond edge program designed to help female employees maximize their potential," Beba says. “Eight modules include work and personal development. Employees can work at their own pace as it is web-based coaching.” PepsiCo around the world has local touches to help with work-life-balance needs. “Our office in Pakistan, for instance, has a child care centre,” Beba says. “Men or women can bring in their children as we are concerned for family safety, whereas Australia does not have this facility, but we give women flexible maternity leave.” Future development for women in the company involves further refresher programs, generational and cultural inclusion training, tracking trends of women in management and executive positions, development in leadership for women, especially in emerging markets such as Vietnam and Pakistan.

biz.hk 11 • 2012

Keith Pogson

South Africa Created Vision Post-apartheid experience helped a women’s advocate to fight bias, writes Vicki Williams

eith Pogson recalls seeing an all-female construction crew on the mainland and thinking: “Why not? Seeing a different perspective did make me think about societal roles,” he says. Early in his highly successful career, he worked in post-apartheid South Africa, a time of recognizing differences. “The experience was very influential for me in regards to bias and difference and how to address it,” he says. The recipient of the Champion for the Advancement of Women award is managing partner for Asia-Pacific financial services at Ernst & Young and president of the Hong Kong Institute of Certified Public Accountants (HKICPA). “Of course, I am very flattered to have won the award, and a little surprised, as I never expected to win an award such as this. I just want to be a good contributor to society,” Pogson says.

biz.hk 11 • 2012

“I am also slightly saddened there are not more men out there advocating and championing the advancement of women. I was nominated by The Women's Foundation and am involved in supporting their activities. At meetings held by the group, I am usually only one of a handful of men there.” Pogson is also proactive, through both his place of work and other organizations, in mentoring women, training, getting other organizations on board via mentoring schemes, and promoting transparent opportunities based on merit. He is passionate about the subject and offers several statistics. “An interesting fact is that this year, the HKICPA, for the first time, has more female members than male. This is a trend that will continue with increasing numbers of women entering the field, and across all fields more women will be moving into management roles.” One of the problems, though, is that female managers are still in the

minority. This means there is a lack of female role models that up-andcoming female executives have to look up to, but, more importantly, a lack of female mentors as a result. Pogson helps identify, in Ernst & Young, and via his other connections, women who can become role models or mentors. He provides private mentorship to talented women with lots of leadership potential, with the formal aspect of the relationship lasting several years. At present, he is working with two women while providing advice to other organizations and finding suitable mentors. “One of the best ways to develop leadership and management skills is through role models and mentoring,” Pogson says. His goal is to create a cascading effect. Those that have been mentored will then go on to mentor others and eventually there will be enough female role models in the upper echelons of management for all the up-andcoming talented women wanting to be mentored. Women that Pogson has mentored now all have some form of management position. “Ideally, I have helped develop their outlook and their career path.” Another way in which he helps is by advocating diversity and inclusiveness. “It is about gender diversity and how to develop a person's full potential regardless of gender,” he says. Included in this approach is to identify any blocks that exist to a person achieving their potential and then taking the necessary steps towards removing them, such as ensuring that hiring and promotion practices are transparent. “This should be based on merit and the provision of equal opportunities.” He has been involved in this work at Ernst & Young for about five years and at The Women's Foundation for two years, but he has always been a firm believer in equal opportunities. Public speaking on diversity, inclusiveness and leadership is something Pogson does a lot, be it within Ernst & Young or externally.

On the management side, through his work within the HKICPA, he has seen the number of women on the board increase to 40 per cent. At Ernst & Young, its transparent and equal merit system means the number of female graduates being accepted is greater than men.

He admits that some older male executives in management positions still need a lot of convincing and are quite resistant to new ways of thinking and operating. “Many company boards in Hong Kong don’t have a single woman on them, so we have a lot more work to

Sian Griffiths

Keeping Hong Kong Safe and Sound

British academic ensures SARS recommendations are implemented

By John Cremer

ian Griffiths, the thenpresident of Britain’s Faculty of Public Health was initially invited to Hong Kong to co-chair the inquiry into the 2003 SARS epidemic but, as that neared completion, the next step became increasingly obvious. “Our report commended the response by the medical profession and health care workers, but also pointed out some gaps, including quite a few in public health capacity and

organization,” says Professor Griffiths, now director of the public health and primary care, faculty of medicine at Chinese University (CUHK). “Not long after, the university invited me to help fill those gaps, so since 2005 I have been working here to develop [programs and initiatives].” From her days studying at Cambridge, the broader aspects of public health have been an area of interest. That was enhanced by the chance to study social and political

do,” he says. He believes that resistance to this change is futile. “It is only a matter of time until the corporate arena, the world of work, is dominated by women,” he says. “It makes sense to take a proactive role by helping to develop these future leaders.”

sciences too, and made it easy to settle on a preferred career direction. Now, attention is focused on health policy development, locally and globally; establishing universal access to primary care; and promoting health equity. “My current role lets me share these interests with students and to advance initiatives which encourage them to visit rural China and other environments where people are less fortunate than themselves,” Griffiths says. “Also, there is a natural exchange of ideas on policy between Hong Kong and the mainland. Both systems are undergoing reform and can learn from each other.” The continuing challenge is to balance these academic and administrative duties with research, public service and family responsibilities. As the university’s senior adviser on international academic development, she travels extensively to strengthen ties with other institutions. And, as convener, she is guiding the Food and Health Bureau’s task force on conceptual models in primary care, advising on issues such as the control of non-communicable diseases and the safer drinking of alcohol. This role promotes the concept of the family doctor who can refer cases to specialists when necessary, a model shown to provide better continuous long-term care. “Hong Kong's biggest health challenge is caring for older people with non-communicable diseases, such as high blood pressure and diabetes,” Griffiths says. “We need to move to an efficient and effective system, which provides a link between Western medicine and traditional Chinese medicine.”

biz.hk 11 • 2012

Jill Robinson

Fighting for Animal Rights By John Cremer

ill Robinson never gives up without a fight, no matter the odds or the ingrained attitudes she faces. One key battle for the founder and CEO of Animals Asia is holding on to a bear sanctuary at Tam Dao National Park near Hanoi, following a notice to exit and relocate. It is a centre for spearheading the campaign to end bear bile farming and the cruelties it entails, and convincing Vietnam's prime minister is just one link in the chain. “The fight is full on as over 140 NGOs around the world and 11 foreign embassies in Vietnam – plus international celebrities – are joining the appeal,” Robinson says. “This all began after one man tried to seize the

biz.hk 11 • 2012

area where our sanctuary is for his personal gain – and we are not giving up. The farmers have had their day; it is time to give the bears theirs.” She has delivered that message, forcefully and articulately, ever since first visiting a bear farm in 1993. Besides highlighting the atrocious treatment of the animals, the case made to officialdom in China and Vietnam has focused on international regulations to protect endangered species, preventing illegal exports and pointing out that the fundamental principle of Chinese medicine is being in harmony with nature. “The practice is particularly shameful when one knows that herbs and synthetics are cheap and easy alternatives to replace bear bile. But the public, especially in China, are becoming much more aware of the issue and are rising up against bear farming like never before.” On moving to Hong Kong from Britain in 1985, she began working for the International Fund for Animal Welfare, documenting blatant cases of cruelty across Asia. What struck her was the lack of relevant laws; the widespread abuse of wild, domestic and endangered species; and the need to regard animals as sentient beings, rather than things simply there to benefit humankind. Those inspired the founding of Animals Asia in 1998 and underpin continuing campaigns and initiatives that include promoting dog and cat welfare through local groups in China, and collaborations to improve the enclosures, care and handling of captive animals in zoos and safari parks. “Patience was never my strong point,” Robinson says. “But animal welfare now has a serious voice in the region. People are recognizing that compassion towards animals can also steer people to show more compassion towards each other.”

Phyllis Marwah

Completely Unexpected

Honor takes co-founder of Mother’s Choice by surprise, writes Tracey Furniss

o-founder and director of Mother’s Choice, Phyllis Marwah was surprised to learn she was this year’s recipient of the Women of Influence Entrepreneur of the Year award. “It was completely unexpected,” says Marwah, who has been at the heart of the NGO since it opened 25 years ago. “I was the first volunteer at Mother’s Choice,” Marwah says. “I cleaned floors, changed diapers – all my resources have gone into this over the years.” There are now more than 350 volunteers and paid staff. “We started with one site, Montgomery Park, thanks to Sir David Ford,” Marwah says. “Now we have three sites in Hong Kong, as well as centers in the

mainland, India and Cambodia.” Mother’s Choice was founded in 1987 by Helen and Gary Stephens, Phyllis and her ex-husband businessman Ranjan Marwah, all of whom were concerned about the number of young girls travelling to the mainland for sometimes dangerous abortions. Mother’s Choice was established to help these teenagers in crisis. At that time, single pregnant teenage girls were often stigmatized by family and society. “Attitudes towards single women giving birth have changed [for the better] over the past 25 years,” says Marwah, who is a mother of seven children, the oldest is 34-year-old Alia Eyres, the CEO of Mother's Choice. “My mother spearheaded advertising and publicity campaigns to change

community attitudes towards young girls facing crisis pregnancies,” Eyres says, “including acknowledging the responsibility of boys and presenting pregnancy as not only a girl’s problem. “She introduced sex education in local schools and developed the first bilingual sex education website in Hong Kong. She also changed attitudes towards adoption and bringing children out of institutions and into families.” Other changes that Marwah has worked towards have been the acceptance of adoption of children with special needs and promotion of early intervention for these children, and supporting the first foster care program in Hong Kong with training and help for the families. Marwah is the only co-founder still involved in the day-to-day activities at Mother’s Choice, although all co-founders remain supportive, with Gary Stephens still a member of the board of directors. “My mother sees a need and does something about it,” Eyres says. “She gives a voice to the voiceless.” Mother’s Choice has provided counseling and shelter to more than 51,000 single girls facing crisis pregnancies and has cared for more than 3,600 babies in the Child Care Home and Foster Care program. It is a leader in early intervention for special needs children providing therapy and love to babies and children with more than 200 adopted around the world. It has provided more than half a million children and parents with sex education and training in local schools and has inspired, trained and supported sister organizations in the mainland, India and Cambodia. “My mom prefers to work behind the scenes and rarely receives credit for the work she has done,” Eyres says. “She did all of these things, while raising seven children and teaching us that kindness is the most important character trait. I am so grateful for her.”

The winners’ profiles were published in the South China Morning Post on November 5. They are reprinted here with permission of SCMP. - Editor’s note

biz.hk 11 • 2012

ENERGY

Global outlook

The Energy Landscape: A View to 2040 By Kenny Lau

Photos courtesy of ExxonMobil

or the first time, ExxonMobil has expanded the scope of forecast in The Outlook for Energy report to provide a much longerterm view of global energy trends of the next 28 years, a period during which worldwide population is expected to reach 9 billion from 7 billion of today while demand for energy will be driven to an unprecedented level by 2040. “It is certainly a time of change, and some of us may have some level of uncertainty about what all these changes mean,” says James Muschalik, Chairman of ExxonMobil Energy Ltd, at a recent AmCham luncheon. “As more people work towards prosperity, the challenge for us is how to continue the supply of modern energy that enables social and

economic development and do so safely, reliably and affordably.” “The key to meeting future energy challenges is for government, business and community to work together,” stresses Muschalik, who is also Chairman of Castle Peak Power Co Ltd, a joint venture with CLP Power HK Ltd, which provides electricity to the majority of Hong Kong’s 7 million residents through a network of power plants locally and beyond borders. The International Energy Agency estimates an investment of US$1.2 trillion every year in energy infrastructure investment in order to meet the world’s rising demand for energy. It is the equivalent of about US$200 for every single person on the planet, Muschalik points out, indicating ExxonMobil alone expects to invest about US$175 billion over the next five

years to bring energy to the world. “In the future, it will take all forms of energy to meet the world’s growing demand,” he says.

James Muschalik

biz.hk 11 • 2012

Over the next 30 years, global energy demand will increase at an annual rate of about 1 percent, or roughly 30 percent higher of what it is today by 2040, according to estimates by ExxonMobil. It is a result of changing demographics and economic expansion worldwide. Population growth will be most significant in non-OECD (Organisation for Economic Co-operation and Development) countries, where economies are less developed than their OECD counterparts. Places like India and countries in Africa are perceived to be regions where steep growth in population is most likely. OECD countries, on the other hand, will have little change by 2040, while China’s population will peak by 2030. In terms of economic growth, ExxonMobil in the report projects OECD countries expanding by an average of 2 percent through 2040, although demand for energy in these well-developed economies “will remain essentially flat” because of advancing technology and efficiency gains. Growing at a much faster rate of 4.5 percent a year, demand for energy among non-OECD countries will rise by nearly 60 percent, despite “ongoing improvements in technologies and energy management practices.” By 2040, non-OECD energy demand is projected to be two times that of OECD. “Efficiency gains will also apply in the non-OECD sector, but the sheer magnitude of the growth will offset those gains to a degree,” Muschalik notes. “The challenge to meeting the energy demand of the world is already huge; without efficiency gains, it would become even more daunting as energy demand would be 70 percent higher.” Gains in energy efficiency are results of technology, government regulations or market practices, he explains. “Using energy more efficiently is itself a great source of energy because it reduces consumption and has the added benefit of curbing emissions.”

biz.hk 11 • 2012

Global energy demand by fuel type Quadrillion BTUs 250

2040

200

From its peak in 2025, coal will decline by more than 10 percent by 2040.

2010

150

Latin America and China are the biggest users of hydro power, which makes up over 80 percent of total Hydro/Geo supplies.

100

Oil

Gas

Coal

Source: ExxonMobil

“Improved efficiency and a shift towards less carbon-intensive fuels will be the two biggest factors behind the anticipated plateau of global energy-related CO2 emissions by 2030,” he adds. “China’s emission levels will also begin to decline by 2025 as it moves away from coal to other fuels. “However, the decline in emissions in OECD and China will be offset by continued growth and use of coal in the non-OECD regions.”

Growth drivers By 2030, the world will use more fuel for trucks and other heavy-duty vehicles than for all personal vehicles combined, ExxonMobil’s report suggests. Commercial transportation, including all modes on the road, in the sea and air, are expected to require 70 percent more energy by 2040 as economic activities continue to surge around the globe. According to the report, diesel will continue to be a major fuel type, growing by 85 percent in the next three decades. The demand for gasoline, on the other hand, will decrease by about 10 percent, largely because of “a huge drive in efficiency moving towards the types of vehicles that we use,” Muscha-

Nuclear

Biomass/Other

Wind/Solar/ Biofuels

Hydro/Geo

Energy Outlook: 2012-2040 • Global energy demand increases by 30 percent • Electricity accounts for 40 percent of energy consumption • Natural gas overtakes coal as second global fuel gains in energy • Higher efficiency • CO2 emissions grows slowly and peaks around 2030 lik says. “That includes hybrid vehicles, electric cars, and new technologies that allow us to get more mileage for the same amount of fuel.” “We see that personal vehicles will become far more fuel-efficient by 2040,” he adds, noting that hybrid and other advanced vehicles will make up about 50 percent of the global personal vehicle fleet, a substantial jump from today’s 1 percent. The fastest, largest-growing sector of global energy demand, though, will come from electricity consumption. Overall, demand for electricity will be 80 percent higher in 2040 than it is today. It is the equivalent of adding four major regions of electricity consumption the size of the US between now

and 2040, Muschalik notes. Interestingly, total fuel used to generate electricity will only rise by about 45 percent, all because of more efficient power-generation technology and management. Electricity can come from all sorts of fuel; however, “the mix of fuels used to generate electricity will continue to shift to lower-carbon sources such as natural gas, nuclear and other renewables,” Muschalik says, noting a decline in the use of coal in the coming decades. Europe currently uses nuclear and renewable fuels to meet half of its electricity needs; and the number will be nearly 65 percent by 2040, a time when wind power is expected to provide 20 percent of electrical power for the continent, according to ExxonMobil’s figures. Power plants in the United States during the same period will also move rapidly towards less carbon-intensive sources of fuel, particularly the use of natural gas of unconventional (harder to extract) types. Unconventional natural gas is now a “new source” of cleaner fuel that developments in infrastructure as well as technology in recent years have enabled energy companies to “unlock.” Natural gas is up to 60 percent cleaner than coal in terms of CO2 emission. In China, coal will still be a major fuel for electricity generation in the coming decades, while natural gas will be around 10 percent. China’s heavy reliance on coal will start to mitigate around the 2025-2030 timeframe because of concerns about the

environment. By 2040, the combination of fuels for the country’s electricity sector will mirror that of the US in the 1990s, Muschalik says quoting projections.

Energy source The single largest factor shaping the global landscape of energy supply and demand over the next 30 years is the advancement in technology. It not only shapes consumer demand but also creates an environment in which the use of energy becomes more diverse, efficient, economical and less carbon-intensive. Renewable and nuclear are two growth sectors becoming significant means of energy sources, Muschalik notes. Wind, solar and other forms of bio-fuels by 2040 will make up four percent of global energy demand; renewable sources will be more than 15 percent in the electricity generation fuel mix. “We see tremendous growth within the renewable arena going forward, especially in wind power, which will grow about eight percent a year,” he says. “There will also be substantial growth in the nuclear sector, at about 2.2 percent a year.” Fossil fuels (oil, natural gas and coal) will remain a prominent part of the global energy make-up, accounting for about 80 percent of all fuel demand (of which 60 percent come from oil and gas) through 2040. Demand for coal globally will peak around 2025, falling from 40-45 percent of the mix down to 20 percent in a gradual decline, while natural gas

will rise from 18-20 percent to some where between 30 and 40 percent of the mix, Muschalik projects. “Natural gas is abundant, efficient and clean,” he says, noting a dramatic shift in the last decade towards unconventional gas for electricity generation in the US. “Gas will grow by 60 percent and overtake coal to become the second most popular fuel going forward; at today’s demand levels, we have 250 years worth of supply.” Unconventional natural gas, found in shale and other rock formations, was once considered uneconomical to produce. It is only in recent years that unconventional natural gas can be accessed economically through a combination of horizontal drilling and hydraulic fracturing. From a resource standpoint, it is in virtually every part of the world, with significant sources in Latin America and Asia Pacific, Muschalik says. It is estimated that shale gas resource in China is larger than that of the US and that demand for gas in Asia Pacific over the next 30 years will triple; half of the demand will come from China. In the next 30 years, oil demand will grow about 28 percent (mostly for transportation sector) while less than half of world’s oil will have been produced. More than 95 percent of the crude oil produced today was in fact discovered before 2000; about 75 percent was discovered before 1980. “By 2040, the world will continue to hold significant oil resources, because advancing technology has enabled us to unlock more resources in more challenging environments,” Muschalik says. “Unconventional methods can also be applied to oil production…it is a significant story that is sometimes overlooked.” Growth in unconventional oil will fill the gap created by a slight decline in conventional oil over the period, he adds. Deepwater production will nearly double. Overall, unconventional oil will be about 40 percent of the mix. Over the next 30 years, advances in technology, government policies and public preferences will continue to shape the world’s energy portfolio, Muschalik believes.

biz.hk 11 • 2012

PHARMACEUTICAL

Speakers at AmCham pharmaceutical forum (from left): Roee Shahar, Chris Costigan, Samuel Hui, Sian Ng, Connie Lau, Andrew Ki, Alex Lam, Anita Leung and Stephen Leung

Building Hong Kong as a Genuine Medicine City At a recent forum organized by AmCham’s Pharmaceutical Committee, participants discussed the issue of counterfeit drugs in Hong Kong and made a number of recommendations on how to tackle the problem

By Kenny Lau

n an effort to bring together various stakeholders on the issue of counterfeit drugs in Hong Kong, AmCham’s Pharmaceutical Committee earlier held a forum with leading experts for a discussion on how to protect patient safety, maintain consumer confidence, and build Hong Kong as a city of genuine medicine. “Health is wealth. A healthy state can also contribute to a good reputation. First and foremost, I would like to thank Customs and Excise, Department of Health and the Consumer Council for their relentless efforts in combating counterfeit drugs. They have made

significant in-roads in this fight,” says Stephen Leung, Chair of AmCham’s Pharmaceutical Committee. “Counterfeit drugs are dangerous by nature. They are neither produced under safe manufacturing condition nor inspected by regulatory authorities,” Leung says. “It is no longer only a trademark issue but a grave public health concern.” “Hence, drug counterfeiting itself deserves much higher penalty than trademark infringement of lifestyle commodities, since it is not only detrimental to the overall good reputation of Hong Kong as a city of genuine goods in the eyes of tourists, particularly

Mainlanders, but is actually devastating to the patients’ health,” he adds.

Worse type of fraud According to the WHO definition, drugs that are deliberately and fraudulently mislabeled with respect to its source and/or identity are considered as counterfeits, notes Sian Ng, President of Hong Kong Association of the Pharmaceutical Industry (HKAPI). Counterfeits may also include products with wrong ingredients or components, without active ingredients, with incorrect amounts of active ingredients, or with fake packaging.

biz.hk 11 • 2012

However, substandard batches such as those of quality defects or non-compliance with GMP or GDP (Good Manufacturing Practices and Good Distribution Practices) in legitimate medical products must not be confused with counterfeiting, Ng cautions. According to HKAPI’s statistics, there were 260 raids of counterfeit drugs with over 840,000 tablets seized in total between October 2004 and August 2012; types of counterfeit drugs varied from “Treatment drugs (some are life-critical)” to “ Lifestyle drugs,” including Viagra, Cialis, Panadol, Lipitor, Plavix, Cytotex, Tamiflu, Cellcept; and penalty among convicted cases ranged from a fine of HK$4,000 to HK$100,000 and imprisonment of 1 to 20 months. “The number of counterfeit drugs seizure shows that it is an on-going issue,” says Ng. “We believe the current penalty does not reflect the serious nature of the offence and the grave (sometimes hidden) impact of counterfeit drugs on public’s health.” From a patient’s perspective, counterfeit drugs are the worst type of fraud, notes Alex Lam, Vice Chairman (External Affairs) of Alliance for Patients’ Mutual Help Organizations (APMHO), who is also a practicing solicitor in Hong Kong and a member of the Hospital Authority’s Public Complaints Committee. “Patients expect drugs to help them recover or prolong their lives but counterfeit drugs do otherwise, and counterfeiters simply do not care,” he says. “In most of the cases involving counterfeit drugs, patients are not even aware of the fact that the drugs they have consumed are fake; when their health condition deteriorates, it becomes very difficult to trace what went wrong, potentially causing death.” “If counterfeit drugs were somehow employed in combating a highly contagious disease such as bird flu, we would very likely see a significant outbreak and its outcome would be disastrous,” Lam warns.

Protecting consumers Despite being the freest economy of

biz.hk 11 • 2012

the world, “Hong Kong does have some regulations to protect consumers,” says Connie Lau, Chief Executive of Hong Kong Consumer Council. “However, there continue to be problems, and many ignore the law, viewing the threat of prosecution as a bearable cost and not a deterrent.” “It is also in the nature of governments to be cautious in bringing forward legislation,” she adds. “This in turn causes problems with having to play ‘regulatory catch up’ to fix loopholes that have been exploited by the unscrupulous counterfeiters.” Hong Kong’s high standing comes down to good governance, Lau stresses. “I am regularly told that consumers must compromise on not having very strong laws as a price to pay for having a vibrant, competitive economy. However, when consumer health is concerned, I would say consumers would not accept any compromise. “In fact, direct government involvement and guidance have provided the solid foundation upon which businesses have been able to grow and flourish in Hong Kong,” says Lau, who retired in early November after spending 38 years on the front line of consumer protection. The Consumer Council has in recent years placed a greater emphasis on disseminating information as a means informing consumers, and of enhancing the regulatory efforts of government. “We maintain a network of consumer advice centers around Hong Kong, available for local residents and tourists,” Lau says, highlighting a close collaboration with Hong Kong’s Customs and Excise Department to publish the names of shops that are found to have been involved in selling counterfeit drugs. As of September 2012, Hong Kong Consumer Council has published 12 reports of shops convicted for selling counterfeit drugs in a “name-andshame” scheme. A total of 47 different shops were blacklisted; and among them, three had been named twice. The cases in the scheme involved over 30 different drugs, while main offences included applying forged trademarks on drugs sold as genuine items and supplying

drugs with false trade descriptions, of which the actual ingredients were inconsistent with the labeling. “The naming mechanism aims to alert consumers of unscrupulous traders and the drugs involved,” says Lau. “This initiative also serves as a reminder to other drug stores that the reputation of their business name is at stake if they sell fake drugs.”

Mainland tourists From 2009 up to July this year, Hong Kong Consumer Council received a total of 83 complaints regarding suspected counterfeit drugs. Of these, 69 were related to Chinese patented medicines while 14 were related to other medicines. Of those 83 complaints, 53 were made by tourists, and of those tourists, only one was not from Mainland China. Tens of millions of tourists from Mainland China come to Hong Kong each year and purchase products from local dispensaries. It is even more challenging for tourists to distinguish genuine goods from counterfeit ones when purchasing medicine in a local community pharmacy, says Samuel Hui, Vice Chairman of Hong Kong General Chamber of Pharmacy Ltd (HKGCPL), an organization advocating quality assurance to tourists. “It is vital that tourists feel confident to make purchases from pharmacies in Hong Kong,” he says, adding that a “Quality Assurance Scheme” recently launched has gradually drawn the attention of not only local residents but also tourists as a useful guide to shopping

Counterfeit drugs seized by Customs

“Although the maximum penalty is a fine of HK$500,000 and five years’ imprisonment, sentences imposed on convictions are usually on the lower end of the scale and many counterfeiters only receive community service orders,” she says.

The recommendations

Sian Ng and Samuel Hui

within the city for genuine medicine. Nevertheless, counterfeit drugs are “deliberately” designed to deceive consumers. The challenge from a consumer perspective is that, unlike buying other counterfeit goods such as DVDs or apparels, counterfeit drugs are often very difficult to differentiate from genuine ones, “given the lengths that counterfeiters go in making their products look so much like the genuine medicine they are forging.” At best, they may contain no active ingredients; at worst, they may be harmful or even fatal.

Multi-faceted issue “It is a multi-faceted issue ranging from insufficient consumer awareness to ineffective legal deterrents,” says Anita Leung, Partner at international law firm Jones Day and a legal expert on intellectual property law. “The biggest challenge perhaps is the fact that counterfeiters see the trade as a comparatively ‘low risk, high return’ enterprise.” “It is both a global and a local problem, which is exacerbated by the prevalence of online pharmacies,” she adds. “Hong Kong itself is also a shipment port used by counterfeiters to export their counterfeit drugs.” According to EU and US customs, Hong Kong is one of the largest ports for re-exporting counterfeit medicine, second only to China. The Hong Kong government has nevertheless made significant progress in the fight against counterfeit drugs in recent years.

In 2011, Customs brought action against counterfeit drugs in 647 cases locally under the Trade Descriptions Ordinance, Andrew Ki, Head of IP Investigation Bureau of Hong Kong Customs & Excise Department, points out. Among them, 19 cases, valued at HK$4.2 million, were related to Western-type medicines. For these 19 cases, nine of which (with seizure value of HK$0.19 million) were effected at local dispensaries/retail shops while the remaining 10 (with seizure value of HK$4 million) were intercepted at border points. Counterfeit drugs are not merely a public health issue but also an intellectual property issue, Ms Leung of Jones Day further points out. “Counterfeit drugs raise serious public health concerns because they often come from unreliable sources, are often incorrectly formulated, of substandard quality, and may cause allergic reactions or other adverse effects.” “At the same time, counterfeit drugs also use the logos and brand names of legitimate products to deceive the public,” she says, noting the use of a registered trademark of a pharmaceutical product on a counterfeit is an intellectual property right infringement under the laws of Hong Kong and is subject to both civil and criminal liabilities. Currently, many of the counterfeit drug cases brought before the court are prosecuted under the Trade Description Ordinance for selling or supplying drugs bearing forged trade marks or false trade descriptions, Ms Leung points out.

The industry consensually believes a zero-tolerance policy from stricter law enforcement and much heavier penalties for those convicted of manufacturing or selling counterfeit medicines is of paramount importance, given the harmful effects of counterfeit drugs and their impact on patient safety. “Promulgating a separate drug law will certainly help,” says Ms Leung (of law firm Jones Day). “Having a legislation that is dedicated to deal with the sale of counterfeit drugs, mislabeled drugs or drugs with non-conforming ingredients can help judges focus on the evil of allowing such products to be sold in the healthcare system.” Specifically, it is recommended that “minimum” penalties be set for cases of counterfeit drugs involving death or health impact, organized large-scale sale and distribution of counterfeit drugs, abuse of public confidence by medical professionals as well as repeat offenders. To further safeguard the safety of patients, license of pharmacies or dispensaries that have been repeatedly convicted of selling counterfeit drugs should be repealed under a more rigorous system. “We need to continue on our effort in raising awareness in our court system on the extent of harm to which counterfeit drugs can do,” Ms Leung believes. “A delay in medical treatment, especially for chronic illnesses, can be as bad as taking a poisonous pill.” Amid joint efforts from various government departments as well as industry trade groups, cases involving counterfeit drugs in Hong Kong are now in a declining trend, Ng of HKAPI notes. “The industry will continue to work with different parties in order to uphold the reputation for Hong Kong as a ‘No Fake’ city, as one case is already too many.”

biz.hk 11 • 2012

HEALTHCARE & WELLNESS

Launch of Consultation on Hong Kong Code of Marketing and Quality of Formula Milk and Related Products

n late October, the Department of Health (DH) launched a two-month consultation exercise on the draft Hong Kong Code of Marketing and Quality of Formula Milk and Related Products, and Food Products for Infants and Young Children (Hong Kong Code). In announcing the consultation exercise, a DH spokesman was quoted saying: “The Hong Kong Code aims to contribute to the protection of breastfeeding and provision of safe and adequate nutrition for infants and young children.” What is the Hong Kong Code about? In a paper presented at the Legislative Council in April, the DH explained to legislators that while the percentage of newborn babies in Hong Kong who had been ever-breastfed increased from 55 percent in 2000 to close to 80 percent in 2010, the rate of exclusive breastfeeding remains relatively low. A survey conducted in Maternal and Child Health Centers in 2010 showed that the exclusive breastfeeding rate for four-to-six months was 14.8 percent. The paper attributed the low percentage to a variety of reasons, among which was the promotion of breastmilk substitutes by manufacturers and distributors. It expressed concern that many mothers have opted for formula milk without fully understanding the benefits of breastmilk for babies and they were not fully

informed over issues such as obesity and the importance of fostering healthy dietary habits early in life. The concern in fact was raised a few years ago. In 2010, a steering committee proposed – among other suggestions – to look into the possibility of introducing a marketing code of breastmilk substitutes, conducting a survey to understand the diet and nutrient intake of young children and feeding practices of their parents, as well as the production of parent education materials on feeding infants and young children. As a result, the Taskforce on the Hong Kong Code of Marketing of Breastmilk Substitutes was set up under DH in June that year to develop a code following the relevant guidelines promulgated by the World Health Organization. The current consultation was hence part of that process. According to the DH spokesman, the consultation will end in December. “We welcome views from the public and stakeholders during the consultation period. The Government will carefully analyze and consider the views and comments received before finalizing the Hong Kong code,” the spokesman said. To facilitate the discussions and encourage feedbacks on the Code, biz.hk invites the Department of Health and the Centre for Food Safety for an interview to answer some of the questions about the Code from the trade:

biz.hk: What products are covered by the Code? DH: The Code covers infant formula, follow-up formula for infants and young children (up to 36 months), food products for infants and young children (up to 36 months), feeding bottles, teats and pacifiers. biz.hk: WHO recommends breastfeeding for up to six months. Why does the Hong Kong Code cover formula milk up to 36 months? DH: The aim of the Hong Kong Code is to contribute to the safe and adequate nutrition of infants and young children (from birth to 36 months) by protecting breastfeeding and ensuring the proper use of formula milk and other foods for infants and young children. Although the promotion of infant formula (0 to 6 months) in Hong Kong is not obvious, promotion of follow-up formula (6 months or above) which bears similar names / logos and packaged to look like infant formula are marketed aggressively. It is difficult for consumers to distinguish between the two. Promotion of formula milk up to 36 months should be restricted because it not only interferes with parents’ informed decisions on breastfeeding but also feeding of older infants and young children. There is local research evidence showing young children are eating an unbalanced diet with over-dependence on formula milk and parents have misconceptions about the nutritional values of formula milk. biz.hk: Under the Hong Kong Code, the industry will not be allowed to provide – in any ways including advertisements – information related to breastfeeding and formula milk feeding and nutrition to parents. Will this limit mothers’ right to information? DH: To provide the public with the correct information on these matters, DH has prepared a whole range of materials for parents, e.g. booklet on breastfeeding, fact sheets on formula milk including how to choose, prepare and feed infants with formula milk, booklets and CDs on transitional feeding (six – 24 months). Besides, heath professionals and professional bodies may also

biz.hk 11 • 2012

provide information related to these matters to mothers. biz.hk: After the Code comes into effect, where can the public obtain product information? DH: Product information may be downloaded from websites of manufacturers and distributors. Hard copies of the product information may be distributed by health professionals and retailers. However, product information should not be used as a tool for promotion, e.g. appearance on TV advertisements, bill boards. Product information should be provided only upon request. biz.hk: Upon the request of mothers, can manufacturers and distributors of infant formula provide informational and educational materials on breastfeeding and formula milk feeding? DH: Under the Code, manufacturers and distributors should under no circumstances produce and distribute informational or educational materials on breastfeeding and formula milk feeding, or sponsor such production and distribution. biz.hk: Nowadays, consumers can easily access information through the Internet. What will the DH do regarding information disseminated on the Internet? Will manufacturers and distributors in Hong Kong be held responsible for information published on the web by their parent companies abroad? DH: Manufactures and distributors in Hong Kong usually maintain local websites targeting local consumers. The Hong Kong Code provides guidelines for manufactures and distributors on the marketing of designated products in Hong Kong. The parent companies should be aware of the Hong Kong Code and encourage local representatives to follow.

law, nutrition claims on sodium/salt, sugars, vitamins and minerals which meet the following conditions may be allowed: (1) the claims are permitted by a recognized international/ national authority, (2) the relevant claim condition(s) set by the concerned recognized international/ national authority is complied with, and (3) the absolute amount of the nutrient claimed either on the labels or in the advertisement of the designated product must be declared on the container or label. biz.hk: The Code is meant to prevent parents from being fed with misleading information which is not backed by science and facts. If a certain formula milk product can support its nutrition or health claims with science and facts, why is the sharing of such information not allowed under the Code? CFS: When deciding whether nutrition or health claim is allowed in formula milk products, factors such as characteristics of target users of the products, relevant international guidelines and practices, local nutrition and health policy, and the consumers' needs for proper information are considered. The World Health Assembly, in its 2010 resolution, has urged Member States to ensure that nutrition and health claims shall not be permitted for foods

14.8 percent

for infants and young children except where specifically provided for in relevant Codex Alimentarius (Codex) standards or national legislation. For formula milk products (including infant formulae and follow-up formulae), Codex standards have already listed out the detailed requirements on nutritional composition by setting the minimum and maximum levels (or guidance upper levels) of the nutrient content. Nutrition claims, which highlight the level of content of certain nutrients, will be unnecessary and may be misleading to consumers. For infants, breast milk or infant formula (for those who are not breastfed) is the only nutrition source during their first months of life. Health claims on infant formulae may give an impression that the formula milk products are superior to breast milk. Allowing such claims on infant formulae may run counter to the prevailing policy of the Government, and the principle of the WHO’s International Code of Marketing of Breast-milk Substitute and that of the Hong Kong Code. biz.hk: If the accuracy of information used by the industry is so important, why does the DH choose not to set up a vetting mechanism to protect the consumers? DH: Under the draft Hong Kong Code,

A survey conducted in Maternal and Child Health Centers in 2010 showed that the exclusive breastfeeding rate for four-to-six months was 14.8 percent.

biz.hk: What kind of nutrition claims are permitted under the Hong Kong Code? DH: Under the Code, formula milk (infant formula and follow-up formula) should not contain any nutrition claim. For food products for infants and young children, unless prohibited by existing

biz.hk 11 • 2012

the industry should not produce, distribute or sponsor such production or distribution of informational and educational materials. The DH, Hospital Authority, associations of health professionals, academia and relevant non-governmental organizations can be providers of accurate informational and educational materials to consumers. The DH has no plan to set up a vetting mechanism. biz.hk: Why does the Code cover labeling as well? DH: Drafting of the Code is based on the WHO Code which also covers labeling. The labels of formula milk products currently serve two broad functions: (1) stating factual information about the product (e.g. ingredients, composition) and instructions for safe use and storage; and (2) placing trademarks, nutrient / health claims and photos to glorify formula feeding. The Hong Kong Code promulgates the former and restricts the latter. biz.hk: Can associations of industry conduct seminars and forums to discuss issues such as nutritional and health values of formula milk? DH: Associations of industry can conduct seminars and forums to discuss issues such as nutritional and health values of formula milk. However, these should not target pregnant women and mothers of children aged 0-36 months. biz.hk: How will the implementation of the Code be monitored? DH: The implementation of the Hong Kong Code will be monitored through a dual surveillance / survey and complaint system by the DH working closely with the Centre for Food Safety (CFS). The DH will monitor the promotional activities of manufacturers and distributors while the CFS will monitor the trade’s compliance with the requirements of nutrition labeling, nutritional composition and claims of products. An Advisory Panel will be set up to oversee the monitoring system and be responsible for considering surveillance/survey reports and complaints from the public. The Government will also urge the trade to comply and monitor its own marketing

practices according to the principles and aim of the Code. biz.hk: Under the current provisions, DH will not publish the names of manufacturers and distributors who do not comply with the Code. Instead, it will only publish reports on the number of advisory letters issued and the number of manufacturers and distributors being complained about. Is such “limited exposure” sufficient to inform the public about the non-compliance and influence the manufacturers and distributors into being compliant? DH: The DH will explore the possibility to collaborate with consumer organizations and academic institutions to conduct marketing research. The possibility of disclosing the information to members of the public would not be excluded if the results are not satisfactory. biz.hk: Legislation would allow a fair competitive environment for all formula milk companies. Why the government does not consider legislation? DH: Implementation of the voluntary Code serves as a first step to educate and arouse public interest and discussion on the need for the government to protect breastfeeding and infant-and-youngchild feeding from commercial influences, because of its potential impact not only on the current health of children but also health of the future adults. The government will have to first assess the effectiveness of the voluntary code before considering further steps to strengthen the regulation. biz.hk: There are other reasons behind Hong Kong’s low exclusive breastfeeding rate apart from the marketing of breastmilk substitute. These reasons include Hong Kong’s relatively short maternity leave, lack of support in workplace and inadequate breastfeeding facilities available in public venues. What else will the DH do to promote breastfeeding? Will an extension of maternity leave from the current 10 weeks to, for example, three or four months, be considered? DH: The DH considers the following factors (and their interactions) important

in contributing to the current unsatisfactory breastfeeding rates: (1) lack of support given to breastfeeding mothers during the perinatal and postnatal periods by healthcare facilities and health workers; (2) lack of support in the community, including family support, maternity leave, lactation breaks/ facilities in the workplace; breastfeeding rooms in public venues, etc; and (3) aggressive marketing of formula milk. The DH, in collaboration with relevant government departments, statutory bodies and non-governmental organizations, is working on different fronts. The Hong Kong Code forms part of a comprehensive strategy to protect, promote and support breastfeeding. Other areas of ongoing work include, among others, education and training of health workers; encouraging and supporting healthcare facilities to move towards mother-and-baby-friendliness; production of educational resources on breastfeeding for health workers and parents; providing input into the training of “pei yue” personnel or postpartum doulas; and publicity and general public education. To encourage the provision of more babycare facilities in public and private venues, the Advisory Guidelines on Babycare Facilities was issued by the Food and Health Bureau in August 2008 and the Practice Note on the Provision of Babycare Rooms in Commercial Buildings was issued by the Buildings Department in February 2009. An extension of the maternity leave is an important issue that needs to be deliberated by the Government and the society at large. The public consultation will end on December 31, 2012. The draft Code is available on the website of the Family Health Service of the DH at www.fhs.gov.hk. Written views and comments should be sent by post to the Secretariat Office (Room 1308, 13/F, Guardian House, 32 Oi Kwan Road, Wan Chai), or by email to hkcode@dh.gov.hk. – Editor’s note

biz.hk 11 • 2012

CHARITABLE FOUNDATION

A Night Out for a Worthy Cause By Cheung Ming-lai

Photos: Create Images

“W

hat’s your number, Liz?” A question asked many times by a merry and cherry crowd at the American Chamber of Commerce Charitable Foundation Dinner held at the Crown Wine Cellars on October 19, 2012. Liz Chamberlain, Co-Director of the Samaritans spelled out the suicidal prevention number to the distinguished audience – of course not for its usual intended purpose. She thanked the Foundation for the Ira Dan Kaye Community Service Award which reinforces the meaningful 24-hour multilingual hotline service offering confidential

biz.hk 11 • 2012

emotional support to those who are suicidal or in distress. In his opening remarks, Rob Chipman, Chairman of the AmCham Charitable Foundation thanked the 30 guests for their participation and contributions to the Foundation. On behalf of the Board of Trustees, composed of the Past Chairmen of the Chamber resident in Hong Kong, he expressed gratitude and emphasized that the donations of members and non-members have enabled the Foundation to give scholarships as well as to support smaller and lesser known charitable institutions, making a positive impact upon the Hong Kong community. The spectacular venue, fine wine

and gourmet food were generously provided by James Thompson, Foundation Trustee and Chairman of Crown Worldwide Group. In fact, the fundraising dinner concept was Mr Thompson’s idea. From his extensive experience in hosting numerous charitable activities, he said that the “fun” aspect of the dinner makes it effective – people get to enjoy a great evening with good friends, live music, good food and wine, and contribute to good causes at the same time. He stated, “It was a particularly pleasure for me to host the evening and see the participants really enjoy themselves while taking pleasure in making their donations to the Foundation.”

Liz Chamberlain Yves Therien, GM-Sales & Marketing, Santa Fe Relocation Services, and Janet De Silva, Dean, Ivey Asia, Richard Ivey School of Business (Asia)

James Thompson, Chairman, Crown Worldwide Holding Ltd Bonny Landers, CEO, Sterling Enterprises Ltd

Manting Chan

The rich history of the venue adds to the overall experience. The Crown Wine Cellars are housed in World War II bunkers built by the British military in 1938. Built to last, they have survived for nearly 75 years. The iconic historical location and structure from re-development won its Asia-Pacific UNESCO heritage award in 2007, one of the few certified in Hong Kong. When the guests arrived, they walked into the elegant ambiance of the sparkling candle-lit glasshouse. With their glasses of crisp champagne, couples and friends mingled a little, and admired the cellars’ grand stone mosaic backdrop. Following the soft sound of music coming from within the bunker, they walked along the narrow tunnel to the main dining room. Jerry Sun was playing the grand piano, and singing with Manting Chan. This talented duo

has impressive musical records and regularly performs both in Hong Kong and overseas. The guests were certainly enjoying it all especially the superbly great company of friends. The event featured an auction of exclusive wines, conducted by wine expert, Greg De’eb, General Manager of Crown Wine Cellars, and which was met with hearty enthusiasm. Mr De’eb had “the over-riding impression of wonderful generosity and excellent fun, and there was almost as much laughter as there was bidding.” Mr Chipman reckoned the same, “Auctions always combine fun, with some suspense, the possibility of adding wonderful wines to your wine cellar – with all the proceeds going to worthy causes.” In the mist of the informal and overrun program (as time was not really kept and the amount of laughter was

Jim Fagan, President, Managed Service, Pacnet

biz.hk 11 • 2012

overflowing), the Ira Dan Kaye Award recipient for 2012 was announced. We asked, Mitya New, Partner of Leading Organisations, one of the attendees, his thoughts on the Foundation’s initiatives. He said, “It is important to have philanthropic activities at AmCham because we need to show that as an organization we are thinking about how we can give back to the community.” Alan Seigrist, Chief Financial Officer of the Executive Centre, along the same line noted, “Success isn’t just defined by how much money you make, it is also defined by how you apply that success …It is only natural that AmCham should be doing its best to reflect the very best charitable traditions of American business.” Indeed, our distinguished guests had made a difference and together they raised HK$138,000. Official presentation of the Ira Dan Kaye Community Service Award is on November 22 at the Chamber’s annual Thanksgiving Luncheon. If you would like to make a donation to the Foundation, you are welcome to fill in the form below and send it to the Chamber’s office. And if you would like to support the Samaritans, you may make a deposit at HSBC (A/C: 404-228553-001). Special Acknowledgments: Gage McAfee, Foundation Trustee and Managing Director of Asia Pacific Captial, and Steve Marcopoto, Foundation Trustee and President, Asia Pacific of Turner Broadcasting for their generous donations to the event even though they were unable to attend in person.

Peter Levesque, James Thompson and Lisa Levesque

Bonny Landers and David O’Rear, Chief Economist, Hong Kong General Chamber of Commerce

Ellen Fagan and Jim Fagan

The American Chamber of Commerce

Charitable Foundation

I would like to donate: HK$ Name: Title:

Carol Wang, Vice President - Operations, Li & Fung Ltd, and Marc Compagnon, President, Li & Fung (Trading) Ltd

Company:

Barbora Seigrist and Alan Seigrist, CFO, The Executive Centre

James Sun

biz.hk 11 • 2012

AmCham Charitable Foundation is the philanthropic division of AmCham which contributes to the community leveraging from its influence within the international business community in Hong Kong. Founded in 1985, the Foundation is governed by a Board of Trustees composed of Past Chairmen of AmCham resident in Hong Kong. The Foundation emphasizes the importance of education, and presents scholarships to outstanding university and secondary students every year. The Foundation partners with the American Women’s Association (AWA), and provides financial assistance to smaller and lesser known charities helping children, elderly, and disadvantaged people with health and special needs. The Foundation also presents the Ira Dan Kaye Community Service Award recognizing committed volunteers who have served the community generously and giving a donation to the charity of the person’s choice. Giving back to the community is a vital value of AmCham and it is made possible through donations from members & non-members, and fundraising events such as the AmCham Ball, and the Charitable Foundation Dinner. Get involved! Donate now

Tel: E-mail: Donations can be made by crossed check payable to "The American Chamber of Commerce Charitable Foundation" OR

By credit card (Please choose the appropriate credit card type below.) AMERICAN EXPRESS

MASTERCARD

VISA

Credit Card Number: Expiry Date:

Amount: HK$

Cardholder's Name (in full): Please send a receipt to email / address:

*The American Chamber of Commerce Charitable Foundation is an approved charity and tax exemptions for donations may be made under section 88 of the Hong Kong Inland Revenue Ordinance.

ELECTION CENTRAL

2012 US Election Live in Central By Kenny Lau

very four years AmCham organizes an “Election Central” event to give its members and others in the Hong Kong community an opportunity to watch live coverage of the us presidential election on CNN. “Election Central is in some ways feels like a mini political convention,” says Richard Vuylsteke, AmCham president. “We have a big and boisterous crowd of people in a room full of balloons, bunting, and other election-time trappings routing for their candidates. As the results start coming in, the atmosphere really gets supercharged – because our crowds include voters from both parties.” “Again this year, we had a large assortment of TV, radio, and print media reporters at the Jones Lang LaSalle venue interviewing party spokespersons and others,” Vuylsteke says. “It’s a definitely a renao time – a ‘hot and noisy’ event that’s both fun and historic.” Americans outside the US vote in elections through absentee ballots. “It’s incredibly important that Americans abroad take the opportunity to vote,” says Alex Montgomery, chair of Democrats

Abroad Hong Kong, noting about 6 million Americans currently live abroad, a population of voters roughly the size of the US state of Wisconsin. “Right now Americans abroad only vote in the low single digits,” he says. “If we could get a higher percentage of voters out, we would see a huge influence from Americans living abroad.” Unlike the general elections in 2010 and 2008, which resulted in major shift of political power, in 2012 the “balance of power” between major political parties remained more or less the same with President Barack Obama re-elected, Democrats holding a majority of the Senate, and Republicans retaining control of the House of Representatives. “Over the last four years, we’ve put in place the needed structure to make sure that we can continue to grow,” says Montgomery. “In the next four years, we will likely see a continuation of efforts to keep building on the economy and working for the middle class and to make sure people have opportunities no matter where they come from in life.” “I think we will see significant growth considering the hole that we had to dig

ourselves out of,” he adds. However, a sluggish economy continues to create doubts among many Americans on the question of a full economic recovery. “Right now, the US is not in a very stable fiscal position, and it worries a lot of people,” says Christopher Exline, chair of Republicans Abroad Hong Kong. “You have a lot of US-based companies that are curtailing expansion because they don’t know what their tax situations or healthcare costs are going to be.” “There is so much uncertainty that American businesses can’t expand overseas to the degree they want,” he says. “My hope was that a Republican administration would inject a level of calmness and certainty, which all business leaders need. “The result of this election means a lot because it has to do with taxation,” Exline says, noting the possibility of a gridlock nation that falls further behind. “What you have now is a lot of Americans surrendering their sovereignty to a government that should be taking care of them, whereas what built America was the inspiration of a dream of being able to pursue a course of your own choosing.”

biz.hk 11 • 2012

Venue Sponsor

In-Kind Sponsors

biz.hk 11 • 2012

Media Partners

Lucky Draw Sponsors

Supporting Organizations

2012 Dec

Mark Your Calendar Dec

One Country, Two Systems – 15 Years Later The Honorable Bernard Charnwut Chan, Deputy, National People's Congress, China The Honorable Bernard Charnwut Chan in his presentation will ask the hard questions on whether Hong Kong’s pre-1997 fears and skepticism were justified, which parts of the arrangement have been successful in the years since the handover, and what problems have emerged. He will also look to the future and present on the unfolding and developing relationship between Hong Kong and the mainland. The Honorable Bernard Charnwut Chan is a deputy to the National People’s Congress of China and a non-official member of Hong Kong’s Executive Council. He is also a former member of Hong Kong’s Legislative Council. A graduate of Pomona College in California, he is the president of Asia Financial Group and Asia Insurance. He is also chairman of the Hong Kong - Thailand Business Council and an advisor to Bangkok Bank, Hong Kong Branch. Among his community activities, he is Chairman of the Antiquities Advisory Board, Chairman of the Advisory Committee on Revitalization of Historic Buildings, Chairman of the Council for Sustainable Development, Chairman of Lingnan University Council, Vice Chairperson of The Hong Kong Council of Social Service, and Deputy Chairman of Oxfam Hong Kong.

Changing Customer Demand: Making of an

Dec innovative interactive customer experience

Scarlette Leung, Director of Corporate Business Planning and Programme Management, Hong Kong Jockey Club Consumer behavior is changing and the question now is, how can we leverage this to retain customers and achieve business success? Here we share how to adjust existing business models to address a customer lifestyle where multi-touch technology is the norm in a journey from strategy to launch of an innovation. Scarlette Leung is responsible for developing corporate and business strategies, enhancing business planning processes and managing new development programs. Before joining the Club, Scarlette was a Regional Director in the consumer product industry working both in US and Asia, covering responsibility for Asia regional strategy, business acquisitions, joint ventures, integrations, restructures and Finance. Leung received her honor degree in Business from the University of California, Berkeley, and an Executive MBA degree from Kellogg HKUST program.

Dec

Global Trends Shaping the Business Agenda for 2013 Michael Andrew, Chairman, KPMG International Join us for this informative luncheon as Michael Andrew, Chairman of KPMG International, discusses the key global trends impacting the global economy and business. Topics include: • The shifting global economy; • World trade and the impact of changing trade patterns; • Global competition for liquidity; • Growth versus austerity debate – who is right; • Addressing the Eurozone crisis; and • Outlook for the U.S. economy post-elections. Michael Andrew was elected Chairman, KPMG International in 2011. On his election he chose to base KPMG’s office of the Global Chairman in Hong Kong, becoming the first Chairman of one of the “big four” accounting firms to be based in the Asia-Pacific region. A partner in KPMG since 1988, Andrew has been actively engaged in shaping the direction of KPMG’s member firm network, which employs 145,000 professionals in 152 countries. He has been a member of KPMG's Global Board and Council since 2007, and prior to becoming Global Chairman, was Chairman of KPMG Asia-Pacific and Chairman of KPMG Australia in 2006-2011. Andrew has spoken around the globe on key issues with respect to the global economy, economic growth, business development and corporate governance. He participated in the annual Boao Forum and World Economic Forum's Davos meeting, as well as recent business and economic development conferences in Russia, Asia, the Middle East and Africa. He is a frequent commentator on economic and business issues in international media and other forums.

For information, see website: www.amcham.org.hk

Tel: (852) 2530 6900

Fax: (852) 2810 1289

Venue: Venue: Conrad Hong Kong Hennessy Room (7/F) Pacific Place 88 Queensway, HK

Sat

Sun

Mon

Time: 12:00 - 2:00pm

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Venue: The Hong Kong Bankers Club Dragon Room 5 43/F Gloucester Tower The Landmark, Central

Tue

Wed

Thu

Time: 12:00 - 2:00pm

Fri

Fee(s): Member Fee: HK$250 Non Member Fee: HK$350

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Fee(s): Member Fee: HK$520 Non Member Fee: HK$620 Corporate Table Fee (10-12pax): HK$6,300

Venue: JW Marriott Ballroom (L3) Pacific Place 88 Queensway, HK Time: 12:00 - 2:00pm Fee(s): Member Fee: HK$520 Non Member Fee: HK$620 Corporate Table Fee (10-12pax): HK$6,300

Email: kalau@amcham.org.hk