biz.hk Apr 2013 by The American Chamber of Commerce in Hong Kong

20 13

In ter G na ui tio de na to lS ch oo ls

Journal of The American Chamber of Commerce in Hong Kong

www.amcham.org.hk

CHANGES IN THE AIR

COVER SPONSOR

April 2013

ble a l i a v A h

Marc

2013

Your Best Guidebook for Settling in Hong Kong Living in Hong Kong is a compendium-style all-you-need-to-know guide for newcomers to

school, getting settled when arrived and enjoying life in Hong Kong. This consumeroriented book is designed as a sort of â&#x20AC;&#x153;hotlineâ&#x20AC;? with useful phone numbers and contacts to other sources of help. Living in Hong Kong bookshops in Hong Kong. AmCham members often buy the book for their relatives and Americans), the book is one of the best-selling publications for AmCham. Contact: AmCham Publication Department Advertising Manager: Regina Leung Direct Line: 2530 6942 Email: rleung@amcham.org.hk

April 2013 Vol 45 No 4

Contents

Richard R Vuylsteke

Editor-in-Chief Daniel Kwan

Managing Editor Kenny Lau

Publisher

COVER STORY

TRADE & INVESTMENT

ENTERPRENEURS/SME

ARTS & CULTURE

Undersecretary for the Environment Christine Loh Kung-wai outlines the key priorities and rationale in a newly published “Clean Air Plan for Hong Kong,” a roadmap to improving local air quality through tackling the sources of pollutants

AmCham Hong Kong continues to keep Hong Kong on the map through participation in two annual conferences focusing on business development in Asia Pacific

The controversy over the use of public space in the case of Oriental Restaurant and Bar in Sai Wan near Sai Kung

A look into Hong Kong’s growing culture and arts scene as more venues and exhibitions become available in a city traditionally unknown for a vibrant market

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, 2013 Library of Congress: LC 98-645652 For comments, please send to biz.hk@amcham.org.hk

AMCHAM NEWS AND VIEWS

ENERGY 16 Marching Towards a Sustainable Future

04 Editorial Oriental Restaurant and Bar in Sai Wan near Sai Kung is a case in point that Hong Kong’s outdoor public facilities and spaces are still being run in an old-fashion way and a case which questions how public interest should be defined

07 New Business Contacts 29 executives joined AmCham’s business network last month

CLP has successfully inaugurated the operation of Hong Kong’s first commercial scale standalone renewable energy system on Town Island

The Town Island project has turned out to be more than simply providing technology and hardware on an island only a few find familiar

TRADE & INVESTMENT 20 Keeping Hong Kong on the Map

08 Changes in the Air Undersecretary for the Environment Christine Loh Kung-wai outlines the key priorities and rationale in a newly published “Clean Air Plan for Hong Kong,” a roadmap to improving local air quality

12 And Ships Sail On…with Cleaner Fuel Shipping companies remain committed to an extended voluntary fuel-switch program and call upon the government for legislation to help improve local air quality

15 A Fine Example The ports of Long Beach and Los Angeles are now in the second phase of the San Pedro Bay Ports Clean Air Action Plan adopted in 2006 to further reduce port-related emissions

28 Against The Tide Privacy Commissioner Allan Chiang explains the need for a balance to be struck by the government between privacy protection and transparency

19 Beyond Power Generation

44 Mark Your Calendar

COVER STORY

LAW

AmCham HK continues to strengthen its links with sister chambers through participation in two annual conferences focusing on business development in Asia Pacific

INFORMATION & TECHNOLOGY

ENTREPRENEURS/SME 32 Serving Public Interest? The controversy over the use of public space in the case of Oriental Restaurant and Bar in Sai Wan near Sai Kung

ARTS & CULTURE 38 An Art Hub in the Making The culture and arts scene in Hong Kong is growing rapidly as more venues and exhibitions become available in a city traditionally unknown for a vibrant market

24 Cyberport: A Very Good Deal Indeed CEO of Cyberport Herman Lam describes the structure of Hong Kong’s ICT R&D and business center and how tech companies can benefit

26 Success Story: Aftership A case study of one of the local startups incubated at Cyberport

Single copy price HK$50 Annual subscription HK$600/US$90

biz.hk 4 • 2013

COVER SPONSOR

biz.hk Editorial

Board of Governors Chairman James Sun Vice Chairman Peter Levesque Treasurer Tom Burns Executive Committee Evan Auyang, Janet De Silva, Anita Leung Philip Leung , Belinda Lui, Alan Turley Richard Weisman Governors Sara Yang Bosco, Brian Brenner, Ewan Copeland Walter Dias, Rob Glucksman, Toby Marion Jim Muschalik, Thomas Nelson Catherine Simmons, Colin Tam Elizabeth L Thomson , Frank Wong, Eden Woon Ex-Officio Governor President

Robert Chipman Richard R Vuylsteke

Chamber Committees AmCham Ball Apparel & Footwear China Business Communications & Marketing

Rex Engelking Andre Leroy Seth Peterson Lili Zheng Roxana Daver

Corporate Social Responsibility

Robert Grieves

Energy Entrepreneurs/SME Environment

Rick Truscott Donald Austin Courtney Davies Corey Franklin Brock Wilson Veronica Sze Damien Lee Peter Liu

Financial Services Food & Beverage Hospitality & Tourism Human Capital Information & Communications Technology Insurance & Healthcare

Rex Engelking

Owen Belman Hanif Kanji Intellectual Property Gabriela Kennedy Amy Lee Law Clara Ingen-Housz Pharmaceutical Stephen Leung Real Estate Neil Anderson Alan Seigrist Senior Financial Forum Alvin Miyasato Senior HR Forum Jacqueline Algar Sports & Entertainment Ian Stirling Taxation Evan Blanco Trade & Investment Patrick Wu Transportation & Logistics Jared Zerbe Women of Influence Anne-Marie Balfe Anna-Marie C Slot Young Professionals Alison Carroll

DO THE RIGHT THING

ow many people know that three-quarters of Hong Kong is countryside? Yes, many parts of the city are a ‘concrete jungle,’ but there is indeed a great amount of green space. Every weekend, country parks and outlying islands are havens to those who want to stretch their legs, have some sun and fresh air, and relax to stay healthier. There is another – also very important – benefit. Although Hong Kong is a shopping paradise to tourists from around the world, the city has undersold its outdoor assets, such as beaches and hiking trails. When Hong Kong residents spend holidays overseas, they don’t limit themselves to shopping malls, brand outlets, and theme parks. They explore and venture out. Hong Kong travelers have great memories of visiting national parks in other parts of the world. Why should anyone expect tourists to Hong Kong to act differently? But there is a catch. Far too many of Hong Kong’s outdoor public facilities and spaces are still being run in an old-fashioned way. To enable tourists to fully enjoy Hong Kong’s beaches and country parks, these attractions

need to be easily accessible and userfriendly. There is no question that it is the government’s responsibilities to look after public properties and to make sure that they are maintained in a safe and tidy way. While civil servants deserve appreciation for a job well done, there is room for improvement. A case in point is the Oriental Restaurant and Bar in Sai Wan (see report on page 32). It is clear that it was entirely within the Lands Department’s legal power to fence off the open-air terrace. It is also absolutely legitimate for the department to kick out any occupiers of government land. But was it right to build a wire fence to restrict alfresco dining on the edge of a public beach, an action that will effectively force closing down a long-standing restaurant that served the public in a remote spot? The point is whether the wire fence really serves public interest and how to define public interest in this case. There are of course different angles to the issue, one of which must be the interest of the people who use the beach. In that analysis, the wire fence simply serves nobody’s interest. The restaurant’s plight also

biz.hk 4 • 2013

exposes another common difficulty faced by small businesses in Hong Kong. Now the wire fence has been erected, it would take months (hopefully, not years) of efforts to have it removed, if it happens at all. Approval from a plethora of government departments will be required – Food and Hygiene, Lands Department, Building Department, etc. While the departments are clearly just doing their job in making sure that their rules are being followed, it would be a nightmare for small businesses who have little time and money to navigate through a labyrinth of government bureaucracy and at the same time make a decent living. In fact, we increasingly hear complaints that getting things done in Hong Kong is becoming tedious and complicated. This is especially true when the matters at hand involve seeking “public consensus.” Efficiency used to be Hong Kong’s strong suit. Businesses now could use significantly more “facilitation” and “one-stop shop services” from the government – not more red tape. It’s time to reset some governmental mindsets. This will happen if people openly demand greater efficiency from government.

biz.hk 4 • 2013

New

Business Contacts

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

The following people are new AmCham members: Abbott Laboratories Limited

Feoso Oil Ltd

Step Max Limited

Johnny Song General Manager, Abbott Nutrition International

Thuan Tran Representative

Christine Brendle Director

Google Inc

Study Abroad Center

Susan Pointer Senior Director, Public Policy & Government Relations, Asia Pacific, Middle East, Africa and Russia

Yana Cornish Director of Study Aboard Program

Accenture Co Ltd Pravin Chandra Business Development Director

Adidas Sourcing Limited

Over 500 pages in three major sections, including a complete guide to chamber services, corporate sponsors and AmCham Charitable Foundation. This directory lists over 1,800 members from over 700 companies and organizations. ISBN 978-962-7422-18-1

LC 98-645651

Philip Courtenay Vice President, Sourcing Apparel

Health Care Advocator

AIMS International / HCP Executive Ltd

Jones Lang LaSalle

Ana Quintero Associate Consultant

Ben Dickinson Regional Director and Head of Markets Hong Kong Jo Soo Head of Marketing - Hong Kong and Macau Rob Acker Local Director Integrated Facilities Management, Hong Kong

AlixPartners Hong Kong Limited Stella Lee Director

Aon Hewitt Kelvin Lam Talent & Rewards Practice Leader

BlackRock Inc Mark McCombe Chairman, Asia Pacific Graham Turl General Counsel, Asia Pacific Michael Marquardt COO, Asia Pacific

City Super Group Thomas Woo President

CTC Asia (Hong Kong) Ltd Arnaud Dyduck Executive Director

Jackson Leung

Lululemon Rinkoo Ramchandani Director of Liaison Office

MetLife

SWIFT Jaime Lee Head of Events, Asia Pacific

Telstra International Group Jill Tan Head of Communications

Tractus Asia Limited Dennis Meseroll Executive Director

VF Asia Ltd Colin Browne Vice President, Asia Sourcing, Footwear

Yahoo! Hong Kong Limited Rico Chan Vice President and General Manager

Simon Smith Regional Head of Communication & Brand

Pacific Baby Limited Cameron Honarvar Director

Sennheiser Hong Kong Limited Marc Vincent President of Greater China, Sennheiser

Stejer, LLC Scott Robberson Owner

View our other members at:

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

biz.hk 4 â&#x20AC;˘ 2013

COVER STORY

or anyone who cares about air quality, Christine Loh Kung-wai is certainly no stranger. Formerly Chief Executive of Civic Exchange, a non-profit think tank she co-founded in 2000, Loh took a bold step last September. She resigned from numerous civic positions, including the Civic Exchange, and accepted an appointment to become the Undersecretary for the Environment. The Environment Bureau now has Loh, as well as Secretary Wong Kam-sing at its helm. Both are well-respected environmentalists, raising hopes that changes are finally in the air and the government is going to become more serious about solving pollution issues.

CHANGES IN THE AIR

High hopes

FOR HONG K ON

Demand for cleaner air has long been an AmCham priority. A healthy environment is essential for businesses and people who consider Hong Kong their home. In an interview with biz.hk, Undersecretary for the Environment Christine Loh Kung-wai outlines the key priorities and rationale of the newly published “A Clean Air Plan for Hong Kong”

Environment Burea Transport & Hous u in collaboration with ing Bureau Food & Health Bureau Development Bureau

March 2013

–I–

By Daniel Kwan

Christine Loh Kung-wai

Photo: Brain Production Ltd

biz.hk 4 • 2013

For years, Hong Kong has suffered from poor air quality. International business chambers, including AmCham, have for years demanded more aggressive measures and leadership from the government to address the issues. Hong Kong’s unhealthy air, the chambers warn, is undermining the city’s economic competitiveness and is driving some businesses away. Top executives and their families are voting with their feet, opting for other business destinations, oftentimes Singapore. More importantly – and frustratingly – was an apparent reluctance within the government to address air quality issues from a public health perspective. Environmentalists and health activists normally encountered a “silo mentality” among government departments on the air quality agenda. Over the years, the Environment Bureau has been a rather lone voice in the clean air campaign. Beyond insufficient cross-departmental coordination, the Environment Bureau also faced near hostility in the Legislative Council. Even a relatively toothless measure, such as legislation on idling engines, had to suffer a thousand cuts by legislators before it could be adopted. It is against this background that “A Clean Air Plan for Hong Kong,” unveiled by Loh and Wong – together with the heads of three other government

bureaus – is to be welcomed. Unveiled on March 28th, the blueprint contains a strong list of ideas and insights on how to clean up Hong Kong’s air (see box on page 10). One key reason to expect success is on the front cover of the plan: “A clean air plan … by the Environment Bureau, in collaboration with Transport and Housing Bureau, Food and Health Bureau, and Development Bureau.” The commitment across departments signals a breaking down of the silo mentality.

Hand in hand Speaking in an exclusive interview with biz.hk, Loh says that the Environment Bureau and the Environmental Protection Department have major roles to play in the clean air crusade, and the other departments are just as essential if the clean air battle is to be won. “Fighting air pollution requires a range of solutions sustained over time. The Environment Bureau and the Environmental Protection Department are essentially empowered to deal with polluting sources such as vehicles, ships, and power plants,” she says. “You may say we deal with emissions from the ‘tail-pipe’ – reducing tail-pipe pollution is a powerful and effective solution. This is why we have major programs for replacing diesel commercial vehicles (DCV), retrofitting franchised buses with selective catalytic reduction (SCR) devices, and replacing catalytic converters for LPG taxis and public light buses.” “Our colleagues in other parts of government have important tools that are also needed to reduce the impact (and therefore exposure) of vehicular emission on people. By working together we can improve the outcome,” she says. Loh emphasizes that success is only possible if the various departments adopt a “holistic approach” to attack the problems. “The Transport and Housing Bureau and the Transport Department (THB-TD) are responsible for transport planning, traffic management, vehicle inspection, and dealing with bus franchises; the Development Bureau

(DB) is responsible for town planning, and the Food & Health Bureau (FHB) has deep knowledge about public health issues,” she says. “By working together, we can take a more holistic look at air pollution. For example, FHB can advise us on air quality and health issues; DB can use town planning tools to help reduce ‘street canyons’ effects in new development areas; and we are working with THB-TD on their bus route rationalization plan, which can help to improve air

Loh says public health is clearly an important factor to consider in tackling the problems. That also explains why the new clean air plan emphasizes roadside air quality and shipping emissions. Both are major contributors to air pollutants. “By making a clear policy linkage between air pollution reduction and safeguarding public health, it requires us to work even harder than before in achieving results. We are now working with local scientists and our public health

to roadside and shipping emissions every day. It is therefore urgent to reduce those emissions. That’s why we are working on mandating ocean-going vessels to switch to a cleaner fuel while they are at berth in Hong Kong. This is the fastest way to reduce emissions by a substantial amount. That’s why the government has set aside HK$10 billion to support a replacement scheme for DCV,” she adds. (For more details about fuel switch at berth, see story on page 12)

Key Points of “A Clean Air Plan for Hong Kong” • Retrofit 1,400 franchised buses with selective catalytic reduction devices by 2016 to reduce harmful diesel-engine emissions • Mandatory fuel switch for ocean-going vessels at berth in Hong Kong • Discussions with ports in Pearl River Delta to adopt similar measures • Update Hong Kong’s Air Quality Objectives next year • Introduce a new health-based air pollution alert system • Stepped up transport management including low-emission zones for franchised buses

quality at roadside,” Loh says.

Public health Apart from closer collaboration among different government departments, Loh points out that another feature of the new air plan is linking air quality with public health. Previously, poor air quality was often portrayed as a necessary price to pay for economic development. Officials were unenthusiastic to see through the lens of public health in analyzing the air quality problems.

schools to do longer-term air quality and health studies so that we can continue to shape our policies and control measures to reduce our people’s exposure air pollution,” she says. “The reason we are targeting roadside air quality and shipping emissions is that these have major impacts on public health. We are also building a relationship with the World Health Organization so that we are aware of best practices while seeking to improve our air quality management system.” “Many of our residents are exposed

part of the Pearl River Delta region, which is one of the world’s major manufacturing zones. Thus, the overall ambient air pollution concentration of this region is relatively high,” she notes. “Our air quality is on par with Asian cities such as Taipei and Seoul. Singapore has better air quality, and Sydney is cleaner still. Our city morphology is also distinct – in the busiest urban areas, such as Causeway Bay and Mongkok, ‘street canyons’ trap vehicular pollution. In other words, we need to work doubly hard to clean up. We are committed to do that.” “We are also strengthening our collaboration with Guangdong Province to reduce regional emissions. We have already agreed on emissions reduction targets to achieve in 2015 and 2020, and

we regard our efforts as part of the national effort to reduce emissions. Fighting air pollution is now a major policy direction in China,” she says.

Roles of business Loh says that active discussions are underway to speed up the replacement of diesel commercial vehicles – a major source of pollutants at the roadside level – and expresses hope that the businesses can see the greater good for the community by adopting green measures in their daily practices. “We have had many meetings with different sectors of the affected vehicular trade. We hope to be able to finalize our discussions soon,” she says about ongoing negotiations with DCV owners.

“The replacement scheme has essentially two aspects – a subsidy for DCV owners to replace their vehicles by a certain time, and for the targeted DCV to be taken off the road by a certain date. We are dealing with 88,000 vehicles – in other words, a large number of vehicles – and we are looking at all of them being replaced in phases by 2019,” she says. But to get there – the new Clean Air Plan which projects much improved air quality by 2010 – businesses must do their share in order to make a difference. “We hope businesses support our overall plan. For those in the logistics sector, we hope they will consider using the cleanest possible vehicles and will maintain them well. All businesses, if they need to hire transport services, can consider giving priority or a better price to suppliers who use cleaner vehicles,” she says. “For those in the shipping sector, we hope they will join the voluntary Fair Winds Charter of the Hong Kong Liners Shipping Association and Hong Kong Shipowners Association, and switch fuel at berth even before legislation becomes effective.” “The government has a port dues reduction scheme to help cover some of the costs of the fuel switch. If you are in the port operation and construction sectors, you can look at how to reduce emissions from your various types of equipment. All in all, many businesses can help,” she says.

Mark your Calendar

Our neighbors When asked to rate Hong Kong’s current air quality comparing with other Asian cities, Loh says such benchmarking needs to be put in context. “In terms of a scale – it depends on how the scale is set,” she says. “We have to first consider Hong Kong’s particular circumstances – we live within an air-shed that has some 60 million people. While Hong Kong only has 7 million people, we are geographically a

biz.hk 4 • 2013

10 H K $

billion

Hong Kong government has set aside HK$10 billion to support a replacement scheme for DCV

biz.hk 4 • 2013

MAY

Activities : InterCham Luncheon; Roadside Air Pollution Panel Discussion with Christine Loh, Undersecretary for the Environment Time : 12-2 pm Venue : The Hong Kong Bankers Club, 43 43/F Gloucester Tower, The Landmark, Central

A container cargo ship sailing through the harbor near Cyberport where an adjacent island was barely visible on April 15 - one of the most polluted days of the year so far

AND SHIPS SAIL ON … WITH CLEANER FUEL The port of Hong Kong is one of the busiest in the world and is a key foundation upon which a thriving shipping industry has for decades served as an important pillar of the local economy. As a port, Hong Kong ranks among the top three in terms of total cargo throughput. In 2011, some 24.4 million TEUs (20-foot equivalent units) of containerized cargo were handled through the port of Hong Kong. But there is a price to pay, Kenny Lau reports

ong Kong’s achievement in facilitating international trade and commerce as an entrepot is unquestionable; however, it comes with a price in the form of significant environmental impact. The 2011 emission inventory compiled by Hong Kong’s Environmental Protection Department (HKEPD) shows that marine vessels have become the single

major emitter of sulfur dioxide (SO2), nitrogen oxide (NOx) and particulate matter, surpassing any other emission sources such as road transport and electricity generation.

Other than roadside “You can tell by looking out the window that from time to time it is very smoggy,” says Simon Ng, Head of Transport and Sustainability

Research, Civic Exchange, a Hong Kong-based public policy think tank. “When we think about air pollution, we not only have to look at our roadside but also other sources of air pollutants. One of these sources comes from marine vessels running in our harbor and nearby ports in the Pearl River Delta.” The public became alarmingly aware of Hong Kong’s worsening air pollution one day in 1998 when street-

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level pollution index reading reached a dangerous level, thereby causing cancellation of outdoor physical education classes and some schools to close temporarily to avoid exposure to toxic air. A study with data from 2000 to 2002 estimated that “emissions from the container port” affected 3.8 million local residents and noted a correlation to “hospital admissions and deaths.” Each year some 23,000 container vessels and 13,000 other types of ocean going vessels (including oil tankers, cruise ships and bulk carriers) make calls at the port of Hong Kong. The risk to public health is particularly severe because of the proximity of navigation channels and port activities relative to the local population “as emissions do not disperse before they are breathed in.” “Given our population density, proximity to sea lanes and terminal facilities and a high volume of port calls here, it poses a great risk to the health of those living in Hong Kong,” Ng stresses. “We are also at greater risk because of a canyon effect in Hong Kong where pollutants are trapped when wind conditions are less than favorable.” In a recent research (commissioned by HKEPD and conducted by HKUST’s Institute for the Environment), researchers used an activitybased approach to create a comprehensive inventory of marine vessel emissions in Hong Kong waters by gathering data from a much wider set of variables including arriving vessels’ engine condition and various operational modes as well as climatic and geographic elements. Results showed that OGVs, particularly container cargo ships, were the largest air pollutant emitters by a wide margin. The same methodology was used to estimate OGV emissions in the PRD in a study led by Civic Exchange, and researchers were able to indicate the dispersion of pollutants by locating concentrations of key pollutants coming from OGVs across each prefecture in the PRD while a team of medical professionals at HKU’s School of Public Health made an

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SO2 Emission from Marine Sources 2011

Legend SO2 (tonne) 0.000 - 0.007 0.008 - 0.024 0.025 - 0.087 0.088 - 0.173 0.174 - 0.438 0.439 - 1.101 1.102 - 2.758 2.759 - 6.898 6.899 - 17.242 17.243 - 43.091 43.092 - 107.680 107.681 - 269.074

Source: Civic Exchange

assessment of OGV emissions on public health in each prefecture of the PRD, Hong Kong and Macau. According to the study, some 519 premature deaths per annum are directly attributable to SO2 emissions from OGVs in the PRD (385 avoidable deaths in Hong Kong, 93 in the coastal prefectures, and 42 in the prefectures further from the Pearl River Estuary. It is clear that “those living closest to the terminals, anchorages and fairways where the concentrations are highest suffer the brunt of health impacts.” “We now have a better scientific understanding about ship emissions and their impact on the health of our population,” Ng says of the findings. “It is good news in terms of emission control and management because we can now target the problem more precisely and make specific recommendation for improvement.”

Costs and benefits OGVs generate a substantial amount of pollution – even while at berth – as they burn bunker fuel with sulfur content ranging from 2.7 to 3.5 percent for their main and auxiliary engines. The International Maritime Organization (IMO) currently mandates a 3.5-percent cap on sulfur content and sets a limit on SO2 and

NOx emissions from ships per Annex VI to the International Convention for the Prevention of Pollution from Ships (MARPOL VI). However, a more stringent cap at 0.5 percent of sulfur content in bunker fuel will be introduced by 2020, and ships built in 2016 and beyond will be required an 80-percent reduction in NOx emission in special IMO emissions control areas (ECAs), notes a Civic Exchange report entitled Reducing Vessel Emissions: Science, Policy and Engagement in the Hong KongPearl River Delta Region. “The trend of greener shipping is already in North America and Europe, and it is coming to Asia,” Ng points out, noting in-effect ECAs in the Baltic Sea, North Sea and English Channel in Europe as well as the North American ECA, which covers 200 nautical miles from American and Canadian shores, where stringent emission standards are strictly enforced. While vessels sailing in ECAs are now required to use fuel with sulfur content not exceeding one percent, the limit will be further tightened to 0.1 percent by 2015. Some ports in Europe already mandate that ships either use 0.1-percent sulfur fuel or employ technology to achieve equivalent results. A number of US ports such as those in Long Beach and Los Angeles

Breakdown of SO2 emissions (%) from OGVs by vessel class

Container Vessel Cruise Liner Oil Tanker Dry Bulk Carrier Conven onal Cargo Vessel Others Source: Civic Exchange

also have similar emission control measures (see sidebar). “The annual environmental and public health cost savings from tighter regulation will be significant and will simply outweigh the additional cost from switching to cleaner fuel,” Ng says. In the North Sea-Baltic Sea-English Channel area, annual savings of €8-16 billion in 2015 and €10-23 billion in 2020 at a cost of €0.6-3.7 billion and €0.9-4.6 billion are expected. According to the US Environmental Protection Agency, the North American ECA will prevent an estimated 12,000 to 31,000 premature deaths and 1.4 million lost workdays, resulting in annual health benefits of US$110-270 billion in 2030, versus a total cost of US$ 3.1 billion for the additional measures.

What can be done In Hong Kong, shipping emissions can be mitigated through a number of simple but proven measures: switching to cleaner fuel before entering the port area and while at berth, reducing speed while approaching the port, and adding scrubbers on ship funnels to

reduce emissions, Ng points out. “So far, container lines are leading the way as some are already employing these measures voluntarily in Hong Kong waters.” Maersk Line in mid-2010 became a pioneer among its peers when it agreed to use cleaner fuel at berth in Hong Kong on a voluntary basis. Subsequently, 18 shipping companies (representing 80 percent of all OGV calls) signed up to the Fair Winds Charter, a two-year commitment to a voluntary switch to low sulfur fuel (0.5 percent in content) between 2011 and 2012. The program has reduced 890 tonnes of SO2 in 2011 alone and has since been extended to the end of 2013. The Charter also specifically asks for collaboration of local governments across the PRD to introduce uniform legislation requiring the use of low sulfur fuel among vessels operating in the region as many vessels also travel near or through Hong Kong to call at ports in southern China including Shenzhen’s twin ports of Shekou and Yantian. “The Fair Winds Charter indicates tremendous support from the shipping trade for a cleaner environment and

Simon Ng

more sustainable practices down the road,” Ng says. “The shipping industry is quite eager for the government to introduce a mandatory fuel switch so that air quality can be improved while a level playing field can be created within the trade.” “At-berth fuel switching is only the first step,” he adds. “It will be most beneficial to the region as a whole if Hong Kong in collaboration with Guangdong and port authorities in the PRD can come up with a regional ECA.” “The Hong Kong government has explicitly made air quality improvement a priority as mentioned in the latest Chief Executive’s policy address,” Ng further says, highlighting a three-year government incentive scheme, which will subsidize 50 percent of port facilities and light dues charged to ships calling at the port of Hong Kong, and a newly released “A Clean Air Plan” to address the issue of poor air quality within the city. “The newly released clean air plan, which also addresses marine emissions, is a statement of intent for action,” he adds. “And we’ll likely see a rollout of measures tackling the issue in the near future.”

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A FINE EXAMPLE

he ports of Long Beach and Los Angeles, adjacent to each other and together known as the San Pedro Bay Ports, are the world’s sixth busiest when combined, handling some 14 million TEUs a year. Likewise, container cargo vessels and port activities are major sources of air pollution, accounting for 12 percent of the region’s particulate matter (PM), nine percent of nitrogen oxides (NOx) and 45 percent of sulfur oxides (SOx). The San Pedro Bay Ports Clean Air Action Plan (CAAP), developed with the South Coast Air Quality Management District, California Air Resources Board (CARB) and US EPA, was adopted in 2006 as a comprehensive strategy to improve air quality in the area by tackling emission sources from portrelated ships, trains, trucks, terminal equipment and harbor craft. Under the plan, emissions of PM were to be reduced by 47 percent, NOx by 45 percent, and SOx by 52 percent at the San Pedro Bay Ports within five

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years. The reductions achieved by the end of 2011 far exceeded the original targets. The Port of Los Angeles reduced PM emissions by 71 percent, NOx by 51 percent, and SOx by 76 percent, while the Port of Long Beach also made similar reductions, PM by 75 percent, NOx by 50 percent, and SOx by 80 percent. The accomplishment in vastly improving air quality in the Los Angeles basin was a result of tremendous effort and investment made by the port authorities and private sector businesses. The CAAP expedited the introduction of many emission reduction measures prior to those mandated by federal or state requirements. A Low-Sulfur Vessel Main Engine Fuel Incentive Program, adopted by the ports for a full year between 2008 and 2009, alone reduced emissions of PM, NOx and SOx by hundreds of tons. In the program, participating shipping lines were reimbursed the cost difference between bunker fuel and the more expensive but much cleaner low-sulfur distillate fuel when used in their main

Photo courtesy of The Port of Los Angeles

engines while approaching the ports (ships were also required to reduce approaching speed to 12 knots and to use low-sulfur fuel while at berth in order to qualify for the program). The CAAP also outlined a number of stringent standards targeting port-related equipment at the ports of Los Angeles and Long Beach. All pre-1989 dieselpowered harbor trucks were banned in October 2008 under the Clean Trucks Program, which also progressively disallowed the use of trucks not meeting the 2007 emission standards. In the recently updated CAAP, both ports have proposed a set of long-term ambitious goals for further reduction of emissions known as the San Pedro Bay Standards. In a draft proposal, targets have been set to reduce port-related emissions (relative to the base year of 2005) by 59 percent for NOx, 92 percent for SOx and 77 percent for DPM by 2023, along with a “health-risk reduction standard” aiming to lower the risk of cancer from diesel particulate pollution by 85 percent in the area by 2020. Kenny Lau

ENERGY

Marching Towards a Sustainable Future

Tang-fai Chow

CLP, a power company supplying electricity to 5.7 million local residents, has recently completed the construction and successfully inaugurated the operation of Hong Kong’s first commercial-scale standalone renewable energy system on Town Island near Sai Kung whereby an annual reduction of about 70,000 kg of CO2 emissions is expected

By Kenny Lau

Photos courtesy of CLP

ong Kong’s first commercial scale standalone renewable energy (RE) generation and storage system is now up and running on Town Island near Sai Kung (where Operation DAWN Hong Kong has been operating a drug rehabilitation center since 1976), providing sufficient electricity to meet the daily energy needs of inhabitants on the remote island in a much more reliable and sustainable way.

An unprecedented system

Comprised of 672 solar panels, two wind turbines and 576 batteries for a generating capacity up to 200kW (enough to power 2001-hp air-conditioners), CLP’s “zero emission” system can reduce an estimated 70,000 kg of carbon dioxide (CO2) emissions per year, an amount which would otherwise take 3,500 trees to be ecologically absorbed in the same period.

As of March 2013, it has generated more than 66,000 kWh of electricity, equivalent to the monthly consumption of 150 four-person households and a reduction of more than 25,000kg of CO2 emissions. Residents on the island can now do away with three dilapidated diesel-powered generators and enjoy a 24-hour uninterrupted electricity supply in a noise- and air pollution-free environment. “The Town Island RE project was engineered to optimize the use of solar,

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wind and land resources to meet the basic energy needs of the inhabitants of the island,” says Tang-fai Chow, CLP Power Director – Power Systems. “On a belief that ‘renewal’ is vital to sustainability, CLP sees its roles beyond supplying cleaner electricity, but also in making life better and preserving the environment for society from one generation to the next.” “The project also provides an excellent example to the community showcasing how the concept of sustain-

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ability can be realized in engineering projects and how renewable energy can be applied in Hong Kong with economic and environmental justifications,” he adds, noting a dedicated project Website in promoting renewable energy in Hong Kong by sharing knowledge and information on the project with the general public.

The art of engineering The idea of a RE system on Town

Island was conceived four years ago, and a number of geographical, environmental and economic factors were considered before construction was determined feasible. “Town Island is appropriate for RE development because it has ample open area to accommodate solar panels and there are no high-rise buildings hindering the absorption of sunlight,” Chow notes. “The location is at the eastern part of Hong Kong, which means wind resources are rich. “The option of supplying electricity

quite different from that in the city and unpredictable, Chow also notes. It varies greatly depending on the seasons: sometimes cold, sometimes hot, very foggy at times and even sudden bursts of rain. The island’s eastside faces an open sea and is often subjected to very strong easterly winds during winter when waves off the island can be as high as 2-3 meters; it is also battered by typhoons in the summer months. “Because of the drastic changes in weather conditions, we had to take into account the fact that the design and choice of materials for the facility must be able to withstand a harsher climate than in urban areas,” he says. “We also designed the system be equipped with batteries capable of storing over 1,000 kWh of electricity, which can supply power for around 30 hours, and with two wind turbines providing additional electric power for days of patchy sunlight.”

Electrical and Mechanical Services Department in 2002 on the potential application of renewable energy, RE-based sources can only meet 2 – 3 percent of Hong Kong’s total demand for electricity; even when wind turbines were planted across the entire Kowloon peninsula, they would only generate enough power to meet four percent of the city’s overall demand. “However, as demonstrated in the Town Island project, renewable energy can be used for generating power in some exceptional cases, where favorable factors like ample open space, maturity of RE technologies and wholehearted support from stakeholders are in place,” Chow says. “To foster the application of renewable in Hong Kong, we started providing technical and commercial assessment services to customers facilitating the connection of small-scale RE facilities to our grid since 2003,” he

adds. “We also provide free assessment services to schools and non-profit organizations.” More than 120 such facilities are currently connected to CLP’s grid, providing a capacity of 3.6 MW in electricity, equivalent to 1 percent of CLP’s generating capacity in Hong Kong. These small-scale RE systems have generated 7,000,000kWh of electricity in 2012, meeting about 0.02 percent of local demand.

Wind farm In addition to working with University of Hong Kong and Hong Kong Polytechnic University for an analysis of operational data gathered from the RE system on Town Island, CLP is also exploring the possibility of developing a large-scale offshore wind farm in the southeast waters of Hong Kong, for which a data mast was installed in the site

Future of RE

through a submarine cable or overhead line was also considered but would have been less optimal because of the potential impact on marine ecology.” With no relevant data or previous experience available for reference, CLP’s engineering team had to overcome various challenges throughout the project, Chow points out. “Firstly, it is a standalone system with no grid connection to the overall power grid; and there needs to be very

high precision in the optimization of electricity generation and storage capacity relative to the energy demand of the island in order to ensure an uninterrupted supply of electricity,” he says. “The lack of a suitable pier on the remote island also made transport of supplies and construction very challenging as supplies and materials could only be brought to the island during high tide.” The weather on Town Island can be

The applicability of renewable energy in power generation on a large commercial scale depends greatly on various factors including availability of RE resources, geographic locations, climate conditions and feasibility of aligning supply to demand. However, renewable energy by nature is very intermittent and generally cannot be used as a reliable base-load generation of electricity. “Renewable energy as a source for electricity is unpredictable from an operational standpoint; in most cases, conventional power plants are required as a backup,” Chow points out. “With the current technology, RE also costs comparatively more than conventional types of power generation, although the cost of RE will likely come down as the technology and overall efficiency of solar panel and wind turbines are further enhanced.” Hong Kong is also limited on the development of renewable energy because land resources are scarce and renewable sources are relatively poor. According to a study by Hong Kong’s

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Beyond Power Generation

he mission of CLP’s renewable energy project on Town Island was merely to supply uninterrupted electricity; yet, it has turned out to be more than simply providing technology and hardware on an island only a few find familiar. It entails a corporate initiative which has

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“empowered” not only those whose lives are made easier with a more reliable and cleaner supply of energy but also those who volunteer to make a difference in society. Town Island is home to a drug rehabilitation center supported by Operation DAWN, for which CLP volunteers now regularly conduct maintenance

location last year to collect environmental and climatic data in a feasibility study. “Upon completion of the feasibility study, we will further discuss with the government and seek comments from the public and other stakeholders on the project’s way forward,” Chow says. “In the meantime, our project on Town Island will provide the industry as well as academia with critical data and field experience of utilizing renewable energy in Hong Kong and will support further research into the potentials of wider applications of this form of alternative energy in the market.” CLP’s Town Island Project has recently been named a winner – and as the only one in the renewable energy category – in “The Hong Kong People Engineering Wonders in the 21st Century” by the Hong Kong Institution of Engineers (HKIE), an accolade indicative of CLP’s commitment to engineering and energy sustainability.

check for electrical installations on the island and provide customized electrical training to rehabilitants who are taught to operate the RE system installed on the island as well as other fundamental skills in maintenance of electric appliances. The “CLP-Operation Dawn Electrical Studies Incentive Programme” equips rehabilitants with a basic understanding of electronics to pursue further study in electrical engineering or a career as an electrical technician when they rejoin the community after rehabilitation. Since 2010, more than 70 CLP volunteers have spent over 500 hours on electrician classes for more than 70 occupants in the rehabilitation center on the island. The Program will also provide allowance to their admission to government-approved electrical courses such as those by Employees Retraining Board. In 2011, CLP also sponsored an orienteering game on the island and raised more than HK$300,000 for Operation DAWN’s redevelopment plan. – Kenny Lau

TRADE & INVESTMENT

Photos courtesy of APCAC Taipei 2013

Keeping Hong Kong on the Map AmCham HK continued to “sell Hong Kong” and strengthen its links with sister chambers through participation in two annual conferences focused on business development in Asia Pacific. President Richard Vuylsteke represented the chamber at APCAC in Taipei and APBO in Los Angeles. Daniel Kwan reports on the meetings

“H

ong Kong rightly calls itself Asia’s World City, and AmCham HK’s membership reflects that,” says Richard Vuylsteke, AmCham’s president since 2008. “A large portion of our members have positions that are regional or global, and AmCham’s events, delegation trips, and participation in regional meetings are in line with Hong Kong-based business development around the world.” On 8-9 April, Vuylsteke accompanied Scott Shaw, Chief Commercial

Officer at the US Consulate in Hong Kong, to Los Angeles for the annual Asia/Pacific Business Outlook (APBO) conference, a decades-old event held each year at the Marshall School of Business at the University of Southern California.

APBO in Los Angeles This year’s event brought together nearly 400 business leaders, entrepreneurs, and others seeking information about business development in Asia. AmCham leaders from most of the

chambers in the region coordinated with their Foreign Commercial Service colleagues to explain the state of play in their economies and the opportunities for investment. Participants heard from five keynote speakers and could select from 60 panel presentations (usually five panels ran concurrently during each time slot). Hong Kong was especially well represented. Ronnie Chan, Chairman of Hung Lung Properties (HK), was the opening keynote speaker. “Ronnie gave a quick, informative, and humor-laden speech to kick off the conference,”

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Vuylsteke says. “And he really wowed the participants with his comments during the Q&A. The conference maintained the same enthusiastic tone throughout. It was a constructively hectic time.” “Scott and I carried the message of Hong Kong’s vibrant economy at two panels focused on Hong Kong.” Vuylsteke says. “Scott also had a large number of one-on-one meetings with prospective investors, while I participated in discussions at other workshops on China, Thailand & Vietnam, Malaysia & Singapore, and Myanmar.” “I had substantive conversations with over a dozen US firms interested in Hong Kong’s role as a gateway to China and how they could use the Hong Kong platform to enter the China market,” Shaw says. “I was also pleased to see that APBO included sessions on the growing importance of outbound Chinese investment to the US economy.” The conference also featured a popular, regularly returning guest speaker, who spoke at two panels on China topics: Sidney Rittenberg, President, Rittenberg & Associates. “I’ve had the pleasure of seeing Sidney in action a number of times and having personal conversations with him; he’s always a font of extraordinary insight and common sense,” Vuylsteke says. “He gave an informative, nuanced view of China’s new leadership and their focus on economic – not political – reform. Despite his age, he has not slid into anecdotage; he’s still a keen analyst.” Rittenberg, who is 91, is American journalist, scholar, and Chinese linguist who lived in China from 1944 to 1979. He worked closely with Mao Zedong, Zhou Enlai, and other senior leaders of the Chinese Communist Party during the war. Later, he was imprisoned twice for a total of 16 years, some of the time in solitary confinement. He and his Chinese wife run a successful consulting business from their base in Washington State. “Rittenberg obviously brings a depth of experience to China discussions that is truly unique,” Vuylsteke

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Morris Chang

“Although Southeast Asia countries even collectively don’t offer the amount of business one can find in China, there is clearly a growing interest in targeting those nations to diversify and take advantage of growing middle classes elsewhere in the region.” says. “What never ceases to amaze me is his even-handed assessment, especially given what he has gone through. His bottom line is to promote successful US-China relations – and he’s not Pollyanna in his views. He recognizes that both sides will always have misperceptions and differing expectations of each other and that informed people on both sides need to work to minimize negative fallout from that.” What was the view of Hong Kong among the APBO participants? “Hong Kong’s reputation for being a super-

busy place to work is wellestablished,” Vuylsteke says. “It’s a treat to talk to audiences about the city because most people have positive views of Hong Kong as a plumb destination. They know about the rule of law, free flow of information, and international atmosphere, but the Q&A also made it clear that rising costs in Hong Kong – and even shortage of school spaces for expat kids – is on their radar as well.” Anything stand out as being new this year? “One obvious change is that China business development no longer dominates these meetings,” Vuylsteke says. “Although Southeast Asia countries even collectively don’t offer the amount of business one can find in China, there is clearly a growing interest in targeting those nations to diversify and take advantage of growing middle classes elsewhere in the region.” “There is frustration that ASEAN hasn’t been able to integrate more quickly, but I think people do see more opportunities in the region for investment compared to a few years ago,” he says. “And, like other conferences this year, Myanmar discussions attracted a lot of attention as many people are eager to learn about the country after its many years of

Richard R Vuylsteke

self-imposed isolation.” Shaw and Vuylsteke both see a role for Hong Kong in supporting investors looking at Southeast Asia. “Hong Kong expertise isn’t limited to China – this place has a long history of connections with SEA nations and we need to continue capitalizing on that experience,” Vuylsteke says. “It’s why we are called a world city.”

APCAC in Taipei There are now 28 AmChams operating in the Asia Pacific region grouped together in an organization called the Asia-Pacific Council of American Chambers (APCAC). Formed in 1968, APCAC represents the interests of an estimated 50,000 business executives and over 10,000 business entities through three annual events – a business and policy conference hosted by a member chamber in the spring, a Doorknock advocacy trip to Washington DC in June, and a meeting of chamber presidents that focuses on sharing operational best practices in the fall. The organization’s mission is to improve the competitiveness of US business in the region. APCAC members combine their resources and knowledge to develop a common

understanding of regional issues, problems and concerns facing the American business community in Asia-Pacific. Member chambers communicate on an ongoing basis and it is common for various chamber leaders to meet periodically throughout the year on advocacy and operational issues. APCAC focuses on issues including free trade agreements, taxation of US citizens working abroad (Section 911 tax exclusion), market access, transparency, regulatory coherence, and removal of restrictions on crossborder flows of data, capital, and talent. This year’s spring meeting entitled “A 2020 Vision for US-Asia Partnership” was hosted by AmCham Taipei on 21-22 March. The event featured an array of panels and keynote speakers, including Taiwan President Ma Ying-jeou and famed high-tech business leader Morris Chang, founding Chairman and CEO of Taiwan Semiconductor Manufacturing Company (TSMC). The panels addressed topics that are hot issues throughout the region: Greening of energy, industry, and buildings; how FTAs (Free Trade Agreements) and RTAs (Regional Trade Agreements) are changing the economic landscape; the impact of

aging societies and rapid changes of medical technologies; realigning Asia’s supply chains; protection of innovation and creativity. “AmCham Taipei did a first-rate job of organizing the event,” Vuylsteke says. “Perhaps the highlight of the two days was a 500-person business dinner where President Ma Ying-jeou gave the keynote speech. It was good to hear about the latest goals of his government, but I think people will most remember that he took time to go to every table in the ballroom to toast and chat briefly with the participants. He sure knows how to work a crowd!” It is typical for APCAC meetings to be attended by a number of US Commercial Service officers from the region. This year the senior officers from Taiwan, Singapore, Guangzhou, and Japan were highlighted in a panel discussion lead by Daniel Harris, the Regional Director for East Asia and the Pacific. “The emphasis was on storytelling – giving solid examples of how to be successful in overseas markets,” Vuylsteke says. “I’ve been interacting with Commercial Service officers for years, and I’m always impressed with the range of their expertise. They are invaluable resources for US businesses in the region, which is one reason AmCham HK each year lobbies in Washington for more funding for the Commercial Service. They are a resource that should be expanded.” Next year’s spring APCAC conference will move to another city (Manila is bidding for the honor). “I have hopes that we’ll be able to have a larger Hong Kong contingent at this meeting,” Vuylsteke says. “Our members are real players in the region, and they will benefit from the great spectrum of businesses and countries represented at these meetings. It’s great for networking, but even better at stimulating the mind through substantive conversations. Besides, we have a lot experience to offer our business colleagues in the region. We need to share knowledge to keep US business strong in Asia.”

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INFORMATION & TECHNOLOGY

biz.hk: Can you first briefly introduce Cyberport? Lam: Cyberport is a company with one shareholder only, which is the Hong Kong government. Because of this unique nature, although we are a company, our mission is to build Cyberport as one of the ICT hubs in the region. We have three key focuses. One is to nurture entrepreneurs, to build a good ecosystem for technology startups to come to Hong Kong. Second is collaboration. Because Cyberport by itself is limited and Hong Kong is only a city, we want to drive collaboration with other parts of China and the global market. In that regard, the Hong Kong Trade Development Council is a great partner with Cyberport. The third one is to drive ICT adoption. We want to bring the latest and greatest technology to Hong Kong. We do a lot of training and competitions to drive ICT adoption – not only among the professionals but also for the general public including students. We have about 120 tenants at Cyberport here now. About 50 to 60 percent are small companies and the rest are big companies like Microsoft, IBM, SAP, and Cisco. Some of them are here for their research and development; others are for business in general.

Cyberport:

A Very Good Deal Indeed

The Hong Kong Trade Development Council is organizing two large-scale symposiums in New York and Los Angeles in June under the banner of “Think Asia, Think Hong Kong” to promote Hong Kong to US companies interested in tapping into the Asia and China markets. One of the focused areas is technology businesses. For American ICT companies who are new to Hong Kong, Cyberport should be a natural choice. Daniel Kwan talks to Herman Lam, Chief Executive Officer of Cyberport, and Andrew Chan of one of the local startups, to find out what the Pok Fu Lam-based technology hub has to offer

Photo courtesy of Cyberport

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biz.hk: Does Cyberport offer financial support to startups? Lam: We run two flagship programs. One is our incubation program. When companies get admitted to the program, they’ll get free rents and some subsidies to help start their business. We give each company HK$330,000. This is a two-year program. Because it’s part of the Cyberport’s mission, we don’t take equity [from companies] and we don’t require them to pay us back. The second program is the Cyberport Creative Micro Fund (CCMF). This is a program under which the winning teams will get HK$100,000 to turn their idea into a prototype. At any point in time, we have 60 to 70 companies under this program. About 30 of them would be on-site [at Cyberport] and the rest off-site. We have over 180 companies that have gone through the program and the results have been very encouraging.

Herman Lam

Many of them have been successful in obtaining angel funding, won awards and IPs [registered]. Of those that have graduated, about 60-70 percent are still in operation. So overall, these are all very encouraging numbers. These programs are expected to continue to grow, and we will incubate more companies. Both programs are very flexible but they are only for startups. Since we are in the creative industry, we don’t want to put too much restriction. You would have to have your companies registered in Hong Kong. But that’s about the only restriction we have. The owners of the companies don’t have to be Hong Kong residents. biz.hk: Does Cyberport play the role of middleman in finding financing for companies? Lam: It depends. For big companies such as Microsoft, they don’t need much of middleman. All they need is a good community. For them, being a part of Cyberport, we offer them fantastic Grade-A office and facilities – our bandwidth connection and all that are really second to none. We also have a very good community with over 5,000 knowledge professionals working here at Cyberport. Because of our nature, we only rent space to IT companies or IT branches of companies. We see ourselves more like a platform. For tech startups, they will find it very useful to leverage on our programs. If they are western companies looking to explore the greater China market but don’t have the necessary

resources, Hong Kong would be a fantastic choice. And Cyberport can be a good starting point. First of all, we have a community here and they will get to know all the like-minded people and industry players. They can also leverage on our programs to launch into other markets together with the help of agencies such as the HKTDC. We have representative offices in Shanghai and Guangzhou. We organize events in Shanghai, Guangzhou and Beijing regularly. So by tapping into the Cyberport’s platform, they would be able to launch into other markets. If you are a Mainland company and are interested in expanding into the global market, you can join the Cyberport, our community and make use of our platform. You can join our delegations and exhibitions abroad. biz.hk: Can a mid-sized US manufacturer benefit from operating at Cyberport?

Success Story: Aftership Andrew Chan, 28, is one of the founders of Aftership – a local startup incubated at the Cyberport. He shares his journey of entrepreneurship with biz.hk: biz.hk: Tell us about Aftership. Chan: We started in November 2011. We first won the Startup Weekend competition in Hong Kong and then the global one. After that, we have launched new products. At present, we are about breaking even. We are planning to launch some new features in the coming few months. What Aftership does is it helps online stores to auto-track packages in one place from dispatch until delivery and notify customers with updates through emails, messages and social media. We target

Lam: I think so. We have companies which have come to Cyberport and they join our delegations and exhibitions we organized locally and in markets such as Mainland China. Through such activities they can market their products and services. It can be pretty scary to a mid-sized company from, say Dallas, to try to break into the Mainland China market if it does not have much experience of operating in Asia. If they land here in Cyberport, we will have a full-year plan [of activities] in China and they can pick and choose. We also have our local networks too. I’ve just received about a dozen executives from Washington DC and they are from well-established companies. So we organized an event and invited many of the local mobile applications developers to meet with them. It was successful and I can see the excitement in them. They found it very useful in helping them find potential partners here. business-2-business customers. If the online store uses Aftership services, the customers will receive the notification (emails, SMS etc) from the online store and they will not know about Aftership. We are a web-enable service. If the online store uses only one carrier for delivery, they may not need Aftership. But if the online store uses multiple carriers, then they don’t have an easy way to integrate with different carriers. Through Aftership, we enable the tracking function to go back to the online stores. We now support 70-something carriers and we plan to expand to cover all carriers. biz.hk: Why did Aftership choose Cyberport to start its business? Chan: It can be difficult to meet technology developers in Hong Kong. I am a business person and it’s hard to know those techie guys. So I went to these startup weekends and after that I’ve got introduced to Cyberport. One of the reasons we chose Cyberport is that they offer financial support through the CCMF program. It helped when we first got started. In addition, Cyberport also offers good support. For example, there will be a trip

biz.hk: What can Cyberport offer to companies and entrepreneurs who are still at the exploring stage? Lam: We have this offer called ‘Smart-Space @ Cyberport’ to make it easier for those who don’t want to commit too much and join our incubation programs but do want to quickly explore the Asian market or what they can do in Hong Kong. That’s actually similar to the incubation programs. The difference is that this offer is not free. But only for a few thousands Hong Kong dollars per month, they can enjoy ready-built office units with two-to-five desks each. This doesn’t require long-term commitment. For example, they can come here for one month but still enjoy the benefits of being a member of the Cyberport community. This offer is surprisingly well-received. We are in the process of expanding into the second phase of the program.

Andrew Chan

organized by Cyberport in June to San Francisco and we probably will join the trip. Hopefully we may be able to meet up with some investors. For us, we are very independent [from Cyberport] but it offers us the connections – connection with the media, business opportunities, and we can test the market through them. biz.hk: What’s next? Chan: In a few months, we hope to become a data company. You never know when the online stores may ask, ‘which carrier is more reliable?’ Hopefully, Aftership will become an independent third-party capable to provide such data.

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LAW

one to 10 with 10 being achieving excellence in data protection. “Our law covers every sector … and everyone – whether you are a company director, or just the average man on the street; you’re covered [by the law] from day one. So we have more experience.”

AGAINST

Privacy right is not absolute

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Allan Chiang, Privacy Commissioner for Personal Data, has been in the hot seat lately. He was ridiculed for supporting the government over the proposed amendments to the Companies Ordinance to restrict public access to personal information of company directors. Undeterred by the criticism, he argued that a balance needs to be struck by the government between privacy protection and transparency. He talks to Daniel Kwan about the latest furor and other privacy issues

rivacy Commissioner Allan Chiang has been very busy recently. In the past few months, he was the lone wolf to defend the proposed amendments to the Companies Ordinance by the government that would limit public access to personal information such as full ID card numbers and residential addresses of company directors. Second, certain amendments of the Personal Data (Privacy) Ordinance (PDPO) came into effect this month imposing new restrictions on the use of personal data for direct marketing purposes. Consequently, Chiang has been in great demand to explain the changes to relevant parties. Third, an investigation into the misuse of personal data by a medical service centre and an insurance

brokerearly this month again put him under the media’s spotlight. For Chiang, that’s all very well. As he told biz.hk in an interview in March, he is a law enforcer and it is his duty to safeguard the privacy of Hong Kong people. However, few people recognize the challenges the Commissioner faces. First of all, his small office is relatively young (it was only established in 1996 – one year after the Personal Data (Privacy) Ordinance was adopted in Hong Kong). The passage of the Ordinance also made Hong Kong the first jurisdiction in Asia to have enacted legislations to protect personal data. Now, nine other Asian jurisdictions have similar legislations. Compared with legislations in other jurisdictions especially EU countries such as France and Germany, the Hong Kong law is more “a work in progress”.

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But measured against other Asian jurisdictions, Hong Kong is a leader in the field because it has accumulated substantial experience in the protection of personal data privacy. The Octopus card incident (in which the smartcard payment company sold personal data of some 2 million registered individuals to third parties for HK$58 million) in 2010 was a serious jolt to Hong Kong public who began to wake up to the importance of safeguarding their personal data. Chiang who was named Privacy Commissioner in August 2010 said in the interview that although the protection of personal data was relatively new to Hong Kong, the city has made much headway in the past decade. When asked to grade Hong Kong in terms of its privacy protection agenda, the Commissioner says he would rate Hong Kong seven on a scale of

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Despite criticism of his stance over the Companies Ordinance (see box), Chiang stresses that it is his job to defend personal data privacy and privacy is a basic human right for everyone – regardless of the social status of the individuals.In fact, it would be wrong for anybody to expect him – as the Privacy Commissioner – to say anything differently. “We are a statutory organization, and we are the one and only regulator in this area. We receive enquiries and complaints on a daily basis. We know better than anyone else how privacy is being intruded and how people suffer as a result … Based on such experience, we need to voice out our concern.” Nevertheless, the Commissioner readily admits that the right to privacy is not absolute and it must be balanced against other rights and interests. “Privacy right is definitely important. But at the end of the day, it’s not the overriding right. We have to take into account other rights and interests. And there needs to be a balance in order that the wider public interest is served,” he says. It is wrong for people to draw an equal sign between his office and the government. As an independent public watchdog, his office is one of the key stakeholders involved in the debate about the protection of personal data. It is the responsibility of the government to strike the right balance after weighing over the interests of different parties. “At the end of the day, the government has to assume the role of balancing various interests. We have to let them know what are at stake,” Chiang explains. One such advice was the government could have done a better job in consulting various stakeholders over the amendments of the Companies Ordinance. “Looking at the public consultations and

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Allan Chiang

An expected U-turn It is not surprising that the Privacy Commissioner has occasionally expressed “disappointment” over decisions and steps taken by the government and its affiliated bodies. The latest twist-and-turn over the amendments of the Companies Ordinance was a perfect example. Just two months before the due date for tabling at Legislative Council the necessary subsidiary legislation to implement the arrangement to specify the persons entitled to access company directors’ full identification numbers and residential addresses, the Financial Services and the Treasury Bureau announced it has decided to shelve the proposals. On April 2, the Commissioner issued a statement pointing out it would be a setback in the protection of privacy. “This is a retrograde step in enhancing the protection of personal data in Hong Kong as it in effect postpones indefinitely the implementation of the relevant provisions of the new Companies Ordinance enacted on 10 August 2012. In other words, the existing unsatisfactory system of unfettered public access to company directors’ residential address and full identification number will continue for an indefinite period of time,” the statement said. “Maintaining the status quo is not an option. I trust the Administration will not abdicate its leadership responsibility in taking forward these data protection initiatives despite their controversial nature,” Chiang’s statement further remarked. reading from the consultation report, I would suggest – with the benefit of the hindsight – that perhaps we should look at things at greater depth,” Chiang says. “For example, the Government should gather more facts and figures to ensure that requests to access company

directors’ full (instead of partial) identification numbers and residential addresses are based on legitimate justifications rather than bare assertions. The present system whereby everyone (including people with ill intentions) can access such sensitive personal data is

unacceptably privacy-intrusive,” he adds.

Direct marketing Apart from the controversy over the Companies Ordinance, Chiang was also in the centre of attention over the use of personal data for direct marketing purposes recently. As a result of amendments of the PDPO adopted last year, any use of personal data for direct marketing purposes without the data subject’s consent becomes an offence beginning this month. Furthermore, more stringent requirements are now in place over how businesses can solicit the data subject’s consent. Just about a week after the amendments came into effect, a medical service centre was found to have breached the data protection principles by Chiang’s office for collecting personal data from more than 360,000 people in a misleading and arguably deceitful way, and selling it to an insurance broker for direct marketing without securing prior

FAQs

There are hundreds of scenarios of how personal data can be collected and used for direct marketing and other commercial purposes. We asked the Commissioner of the following cases: Q: Why access to personal data such as ID numbers that are currently readily available in public registries be restricted? A: There is a misconception that once the data is disclosed on the public registers, then there’s no point in protecting it. Data protection is not about keeping data confidential – lock it up, don’t use it. Each public register has its own purpose of collecting and using personal data, as defined in the legislation on which the establishment of the register is based. Nobody should use the data for any other unrelated use.

consent from the affected people. The case just highlighted how widespread was the problem of misuse of personal data in Hong Kong. The required changes were published last year when the amendments were passed by the Legislative Council. The latest fiery came only because businesses rushed to beat the April 1st deadline of implementation in order to “grandfather” the data they had collected and used. Moreover, the changes actually closely follow the data protection principles enshrined in the Personal Data (Privacy) Ordinance, for example, data must be used for the purpose it is collected. They do, however, represent greater respect for individuals’ self-determination over the use of their data as a non-response to a request for direct marketing use cannot be construed as consent. In the interview, Chiang says he recognizes that the new measures could add extra compliance costs, but it could

also benefit businesses including those involved in direct marketing in the long run too. “Privacy and data protection is not just a matter of legal compliance. I hope that people in the business sector will regard this as part of their corporate responsibility. If it is done properly, actually it will instill greater consumers’ confidence in the company. Of course, it would mean that they will have to handle things more carefully,” Chiang explains. “At the end of the day, the direct marketing industry will benefit from the enhanced reputation for data protection. Currently, they may not be very welcomed and we – the Commission – have got phone calls [of complaints] everyday. If done properly and [the marketing] is more targeted, the cost effectiveness of direct marketing will also be enhanced. It could be a win-win outcome for everyone if you look at this positively and in longer term.”

Q: Can opt-out be conditional? A: Opt-out is a right of the individual at all times irrespective of his previous consent or non-response. But opt-out can have consequences. For example, the marketers may specify that by opting out of all direct marketing offers, the data subjects will no longer receive discounts or other promotional benefits. I won’t regard this as a condition for the opt-out. It’s a consequence of the opt-out of all direct marketing offers. However, the consumer may selectively consent to the use of his personal data by restricting the kinds of data for such use and the classes of products/services to be marketed to him.

that they want to use the individuals’ personal data for direct marketing of their products and services. Second, they must obtain the individuals’ consent before they market those products and services. The direct marketers need to contact the data subjects but they are not required by law to reveal the source of the data.

Q: Can direct marketers continue to use business directories and yellow pages for direct marketing? A: If anyone who wish to use information about individuals from business directories or yellow pages for B2C direct marketing purposes, he or she will have to undertake two steps. First, the direct marketers must notify the individuals

Q: Can the Commission help vet the Personal Information Collection Statement (PICS) by businesses to make sure that they are easily comprehensible and in line with the requirements of the Ordinance? A: There’s a limit of what we can do for individual companies. We won’t say whether a particular PICS is acceptable or not unless a complaint case arises and we need to make a determination under the law. Otherwise, we will be taking the place of legal advisers for individual companies. We can provide general advice. In a way, we hope our guidance note and online resources are doing the job. It’s self-explanatory.

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THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG FAST FACTS Community AmCham celebrates over 40 years of promoting business and fostering greater trade ties and community service in Hong Kong. Activities Members can access roughly 400 programs, seminars, and conferences each year featuring top business and government leaders, industry experts and professional facilitators who address timely and relevant business issues. Members Over 1,800 members (40 different nationalities) from over 800 organizations, including multinational firms, small and medium enterprises, entrepreneurs, and non-profit organizations. Committees Our members can join and access up to 28 different committees covering industry sectors, professional service sectors, and special segments of the membership.

BENEFITS Business Networking Visiblity and Corporate Exposure Information Advocacy WHY JOIN AMCHAM? "As a non-American, I have joined the AmCham in every country I have been posted because it is consistently the biggest and most active Chamber of Commerce and the strongest, best organized lobbying force in most countries, therefore able to attract a large number of members of very diverse horizons and able to organize a wide variety of events, attracting very often high profile speakers and therefore large attendance." Eric Maurin, Head of Commercial Banking, Asia, Credit Agricole CIB REQUEST MORE INFORMATION Membership Department: membership@amcham.org.hk / 2530 6900 www.amcham.org.hk

ENTREPRENEURS/SME

SERVING PUBLIC INTEREST? For years, the Oriental Restaurant and Bar in Sai Wan of Sai Kung has been an ideal stopover for hikers and campers. Not anymore. Shirley Lau finds out what’s happened to the open-air diner and issues behind the use of public space in Hong Kong

et on the edge of the white-sand Sai Wan beach on Hong Kong’s most pristine stretch of coastline, Oriental Restaurant and Bar used to enjoy a panoramic sea view that had lured many a hiker, surfer and camper to its beachfront seating area for the past 15 years. But since February, the small and remote establishment in Sai Kung has been turned into a bit of an eyesore, thanks to a wire fence erected by the government to partition the restaurant from the beach on grounds that government land has been trespassed. “You used to be able to chill out here while watching the sea. But now the view is blocked. Many of our regular customers were shocked when they came and saw the fence, which they say is ugly. New visitors to the area simply walk away when they see the fence,” says Oriental owner Lai Kwan.

The nightmare Lai’s nightmare began in January when the Lands Department ordered him to remove some illegal structures at the restaurant, which is inaccessible by road traffic and can only be reached by boat or a 45-minute hike downhill. The illegal structures included a makeshift toilet, a small room for storing inventories and a concrete platform. Lai said he got rid of the toilet and the small room but not the platform. Then in mid-February, dozens of government workers arrived with a pile of wire fencing and used it to fence off about 80 per cent of the sitting-out area of the restaurant, which falls within the Sai Kung East Country Park and is therefore government land. “The government said they had received some public complaints about the illegal structures.That was fair enough. We were cooperative and

Lai Kwan

removed them. But I think fencing off the place is over the top. People come here to look at the sea and have a good time. The fence serves no one,” says Lai. Surfer Robert Pitt, a regular of the restaurant, concurs. “I think the fence is really ugly and what the government has done is terrible. I understand it’s government land, but by fencing it off, you basically don’t allow anyone to use it and you destroy the place,” says Pitt, who helps run a surfing school in Sai Wan Village, where Oriental is located. “The sitting-out area was very nice and anyone could come and sit there. That’s what people want to do. When you’re out hiking, you want to stop at somewhere nice, put your feet up and get a nice view of the beach.” According to the Lands Department, it fenced off the site to prevent illegal occupation of it after the Geotechnical Engineering Office advised it that the unau-

thorized platform would pose danger to the public. “Given the frequent complaints received, the impracticality of conducting frequent patrols in this place, which is remote, and the concern for public safety, we believe the action of fencing off the platform, coupled with the erection of a notice board has struck the right balance," a department spokesperson says.

Vibrant use of public space The incident is the latest in a string of controversies over the use of public space with regard to public interest in recent years. Sometimes the subject of criticism is the government; at other times it is the private sector. But the

Before

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the fen

slow in adopting new thinking … The problem is there is no clear authority of the issue of how to use public space for commercial purposes. If you want to have outdoor seating, the licensing authority, that is, the food and health department are pretty much concerned with things like whether you serve cooked food, the distance between you and kitchen, and what obstacles are in between,” says Zimmerman. “The Buildings Department or Lands Department deals with structures or the occupation of land. But again they’re not looking at the vibrant use of streets. And we have a very outdated policy under the Food and

Robert Pitt

Sai Wan Beach

debates are invariably anchored on whether the treatment of public space is in line with what the general public wants. In 2008, the operator of Times Square in Causeway Bay came under public fire for hijacking its outdoor piazza by way of getting its “overzealous” security guards to stop people lingering in the open space, and also making the site available to other companies for commercial activities. The controversy became somewhat of a starting point for the Hong Kong public to engage in discussions on the use of public space.

A year later, another public outcry erupted when Gaia Ristorante, a popular European-style alfresco dining restaurant at Sheung Wan’s Grand Millennium Plaza, was ordered by the local district council to remove its outdoor dining tables, as part of the council’s decision to ban restaurants from operating in public open space. Amid public and media pressure, the district council eventually changed its mind, and Gaia is now able to continue leasing the surrounding plaza from the government for outdoor or alfresco dining. In the case of Oriental, it is currently unclear whether the restaurant stands any chance of resuming its

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operation in the public outdoor space. The Lands Department says that the onus is on the restaurant owner to apply with relevant government departments for necessary approvals. It also says that the department may approve or reject the waiver application on a case-by-case basis, taking into account factors such as “whether the commercial use will give rise to blockage of major access points, entrances and walkways". Nonetheless, as pointed out by Paul Zimmerman, District Councilor representing Pok Fu Lam and a public space activist, the government is short of a solid policy on the “vibrant use of public space”. “The government has been very

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Paul Zimmerman

Hygiene Department called ‘Clean Hong Kong’. It’s a 1970s campaign that’s still running. It’s all about getting streets cleaned and getting the mobile hawkers off the streets. But there is still no policy for vibrant streets, which should have come from Tourism Commission, the Home Affairs Bureau or the Economic Service Bureau. They really lack a unified approach.”

Flexibility Dr Joanna Lee Wai-ying, lecturer of the Department of Geography and Resource Management at the Chinese University of Hong Kong, says the Sai Wan restaurant case is a typical example of the government’s rigid way of managing public space, sometimes without taking into account actual public needs. “From the government’s point of view, managing a public space to make it neat and clean is the only thing that matters. It looks at the use of land rights purely from the management point of view. Many of its rules are

rigid. When a public space is designated as a road, it cannot be put to use in other ways. I understand the government has to follow the rules, but under certain conditions, things can be a little more flexible,” says Dr Lee, who visits Oriental with her students every year as part of a study tour to Sai Wan Village. In the case of the Sai Wan restaurant, Dr Lee believes the government should weigh any potential harm of the

illegal structures against the local experience of visitors to the restaurant, who are the main users of the public space in question. “The restaurant has been operating for years and there’s been no big problem. For visitors, any kind of facility that can help them enjoy the village would be valuable. So apart from land rights management, the government should consider other factors in order to optimize public

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interest,” she says. “But of course, there’s also the question of how to define public interest. Some hikers who don’t go to the Sai Wan restaurant may think nothing of the fence. The local residents care because they are stakeholders. But regardless, for officials to decide what to do, the key is flexibility.” Another key, according to Zimmerman, is more time for the government to adapt to people’s change of attitude

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toward the use of public space. “You obviously have got to realize that it’s all fairly new in Hong Kong. In the 1980s, people were leaving Hong Kong in droves to get foreign passports and make money to live overseas in order to get as far away from China as possible. Before 1997, nobody focused on making happy streets,” he explains. “Then in 2006, people from government departments stopped working on Saturdays. For the first

time, people had two holidays at the weekend instead of one and they started to have more leisure time. There is this whole new mood and new values that are coming through now of how to make a great city. It’s all fairly new.” Dr Lee echoes Zimmerman’s view, saying the government should consider reviewing its land use policy and allowing mixed use of land under specific circumstances. “After all, public space is a very important element to a city,” she says. “It creates a cohesive force within a local community, and it provides breathing space for people to relax and enjoy their leisure time.”

ARTS & CULTURE

An inArtthe Making Hub May is a busy month for art lovers in Hong Kong. Art Basel will be in full swing at the Hong Kong Convention and Exhibition Centre. Also running at the same time will be the Asia Contemporary Art Show. So collectors will have plenty to choose from. Nadine Batman studies how the market has evolved in recent years and files this report

ong Kong may be well known as a global financial hub and famously dubbed ‘Asia’s World City’, yet it has traditionally not had a strong culture and arts scene. For example, until relatively recently, exhibition spaces and art galleries were few and far between. That’s gradually changing with such ventures as the West Kowloon Cultural District, the transformation of the old Central police station into a contemporary art space, and a ‘scene’ that’s evolving like never before, ignited by a growing band of passionate art appreciators. Within the last five years, the worldfamous auction houses - Christie’s and Sotheby’s - have arrived to do business here and the much celebrated Art Basel show is now an annual fixture. A recent addition has been the Asia Contemporary Art Show, which stages its second event in May, following the success of its inaugural show last December.

Good old days “Around 20 years ago there were just a handful of galleries, today there are around 95. It’s been a particularly interesting time for art here over the last five years: as well as the West Kowloon Cultural District and the Central Police Station renovation, there are art shows and auctions,” says Mark Saunderson, founder and director of the Asia Contemporary Art Show. “All of a sudden there’s a greater awareness about art in Hong Kong, a place traditionally known for its commerce,” he adds. Saunderson also serves as treasurer for the Hong Kong Art Gallery Association. Saunderson is a Brit who has lived in Hong Kong for 30 years, working in the media until he “quit the rat race” to indulge his passion for collecting art and then became a gallery owner seven years ago. Consequently, he has witnessed a number of changes in the industry: “If you wind the clock back to 25-30 years

ago, that’s when a handful of galleries in Hong Kong took the initiative to bring Chinese contemporary art to the rest of the world. That ilk of artist at the time probably [sold their work for] US$1,000-2,000.” “Since then they have achieved celebrity status and their work is worth millions of dollars and that has meant Chinese contemporary art becomes something that everybody knows and talks about now. The bedrock of Hong Kong’s value in terms of galleries has been to open this art to the rest of the world.” Saunderson says Hong Kong being a free port and with no sales tax is obviously a big attraction to art buyers, particularly those interested in Chinese art. “It’s a winner in that respect as there are some fairly rigid taxes for import and export of art out of China.” Of the 95 or so galleries here, there are still “probably about 75-80 percent that focus their attention on Chinese works,” he says, and asks where that leaves Hong Kong-based buyers seeking

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Asia Contemporary Art Show 2012

art from countries such as Vietnam, India, Indonesia, the Philippines and Japan. “The reality is, for example, if you’re interested in Japanese art, there are probably three or four galleries in Hong Kong you can go to. The supply is quite limited.”

Anything can happen Another art lover who spotted a gap in the market is Mandy d’Abo, owner of the Cat Street Gallery in Hollywood Road, which she opened in 2006, specifically to promote Australian art, but also featuring work from many other countries. D’Abo says she saw huge potential in the Hong Kong art scene, so she created the opportunity to champion emerging artists from all over the world but especially Australia. When she opened the Cat Street Gallery at the Sheung Wan end of Hollywood Road back then, she says it was “full of coffin shops,” but says since then the neighbourhood has changed

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Halley Cheng

dramatically. “The area has transformed itself into a must-see for anyone visiting Hong Kong who is at all interested in art and design.” Such was the gallery’s success, that in 2010, d’Abo opened another gallery called The Space, at a former meat-packing factory also in Sheung Wan which is the largest art venue in the area. Director of the Cat Street Gallery, Zelie Walker, who previously worked for

Photos courtesy of Asia Contemporary Art Show

Christie’s, describes Hong Kong’s art scene as: “Growing and changing in nature as it becomes more international and there is greater choice across the ranges, countries and prices. Variety is the spice of life on the Hong Kong art scene now. It feels like anything could happen.” She says that events such as the recent Art Walk and the Affordable Art Fair are “really fantastic” and offer people who are interested in art the

Mark Saunderson

opportunity to experience international art in an accessible way.

The shows Mark Saunderson is equally enthusiastic about bringing art to the masses: through his Fabrik Gallery, sitting on the board of the newly formed Hong Kong Art Galleries Association whose mission, he says, is to reach out and engage people, and as a director of the Asia Contemporary Art Show. Says Saunderson: “Really the show was conceived around the challenges and the opportunities for both the seller and buyer of art. The show facilitates that in a way that’s different to a show at, say, the Hong Kong Convention and Exhibition Centre.” He points out that the staging an art fair in a hotel is not a new idea and that similar events are well established in Miami, for example. “It’s really to address the needs of two primary stakeholders: The gallery owner who is interested in promoting young, emerging and mid-career artists, which, given the cost of rents in Hong Kong – which are very high – is sometimes prohibitive. [Yet] it’s hard to present art without a space – you physically need to show the work. If somebody said they had HK$30,000 to spend and asked me where they could go in Hong Kong to buy art, there are probably as few as 10-15 galleries that could satisfy that interest,” says Saunderson. He says staging an art fair in a hotel also makes it an economical prospect for the galleries coming from other countries. “There will be artwork from

75 galleries from 17 countries with over 300 artists represented at the show: there is some real diversity. We’ve encouraged galleries to bring a range of art at different prices. This is so, not only established collectors, but also first-time buyers, get the opportunity to buy something.” On at the same time as the Asia Contemporary Art Show, but taking place at the Hong Kong Convention and Exhibition Centre is the very different Art Basel, formerly Art HK, Hong Kong’s biggest art show that, this year, has been taken over by the giant Swiss brand, joining the ranks of Art Basel events in Switzerland and Miami Beach. Says Saunderson: “Art Basel is a fantastic experience, a very refined, sophisticated show ... The spirit of Asia Contemporany Art Show is to be more inclusive, engaging and fun – almost a party atmosphere – and families are really welcome. It’s a very different experience to Art Basel but very complementary.”

Promoting the young Helping to promote Hong Kong artists is part of the ACAS’s raison d’être, that is why it runs sponsored competitions to recognize and reward home-grown talent. The winner of the show’s first Young Artist Award category was Halley Cheng who graduated from the Chinese University of Hong Kong in 2008, and is one of the youngest and most actively involved members of Hong Kong’s art community. He says one of the biggest changes to the Hong Kong art scene in his generation has been that galleries now go to art schools actively seeking talent, approaching students and putting on group shows for new graduates. “This is very risky for galleries to do, but the rewards can be great,” says Cheng. When it comes to nurturing young artists in Hong Kong, Cheng believes it should start in school, about which he is critical. “The curriculum is very structured and students are indoctrinated rather than encouraged to explore their own ideas,” he says.

Mark Your Calendar Hong Kong Patent Law Reform:

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May Are the courts up to the challenge?

Red Bible Hour by Ling Jian, Oil & acrylic on canvas, Tanya Baxter Tanya Baxter Contemporary, one of the participants at ACAS

He encourages young artists to enter as many competitions as they can. “You have to enter to be in with a chance of winning. Not enough young Hong Kong artists enter competitions. I don’t know why, maybe they are shy. But you have to be ambitious and productive to succeed.” Cheng says after winning the ACAS award, he gained good exposure in the media and he was approached by Art Basel to be included in the show this year. Comments Mark Saunderson: “For a Hong Kong artist to get into Art Basel is a significant achievement. Whether or not that had anything to do with him winning the prize we can only speculate but the point is, with all these efforts, the artist is looking to build a biography and all prizes, etc contribute to his resume.” “I believe that, like everything in life, if people are presented with an opportunity, they’ll try it and enjoy it,” he adds. • The Asia Contemporary Art Show will be held at the JW Marriott Hotel Hong Kong from May 23 to 26. Complimentary tickets are available. Interested AmCham HK members can visit us on facebook and winners of a contest will receive the tickets on a first-come-firstserve basis. – Editor’s note

Douglas Clark, Barrister, Gilt Chambers

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Laura McHale, Head of Internal Communications, Asia Pacific, Deutsche Bank AG In this session, Laura McHale will discuss: •How to support managers to become more effective communicators and engage their employees •Best practices on how and when to communicate •How to prevent manager strengths from becoming communication weaknesses •How to tailor content to maximize local relevance Laura McHale is Head of Internal Communications for Deutsche Bank in Asia Pacific. She has over 15 years of experience across the financial services and technology industries (10 years as a senior communications practitioner creating and implementing communication strategies for global organizations). McHale is an award-winning writer and an accomplished presenter on internal communications at international conferences. Laura holds a Bachelor of Arts degree in Communication from the University of California-San Diego, and a Master of International Affairs from Columbia University in New York. She earned her accreditation in business communications (ABC) from the International Association of Business Communicators in 2011.

From Large-Scale Financial Cybercrime to Who Are Today's Cyber Criminals and What Do They Want From You?

J Andrew Valentine, Senior Consultant, Investigative Response, Verizon Entreprise Solutions One of the authors of Verizon’s 2013 Data Breach Investigation Report, Andrew Valentine will share his insights, real examples and findings about threats to cyber security. J Andrew Valentine is currently a principal and team lead for the Forensics and Investigative Response Team within Verizon Enterprise Solutions. He has led a number of high profile investigations involving network breach and data compromise within the United States as well as internationally – many of which have led to successful indictment and prosecution. His work is highly regarded by many United States government agencies, such as the FBI, Secret Service, and the Department of Homeland Security. Valentine is a specialized security professional trained in computer forensics, evidentiary procedures, investigative techniques, and expert witness testimony. He is well-versed in both criminal and civil investigative requirements and regularly interacts with government and state/provincial law enforcement agencies worldwide to transition case evidence and set the stage for prosecution.

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May Complex Organizations

The Hong Kong government has a goal to develop Hong Kong into a regional innovation and technology hub, for which a report of an advisory committee on Hong Kong patent system has been published. Doug Clark will lead an interactive discussion of what changes could be made to the system of handling IP cases in Hong Kong to meet the challenge of a new patent system. Douglas Clark is a Hong Kong-based practicing barrister, specializing in intellectual property matters. Prior to becoming a barrister in 2011 he was a partner in the IP group of Hogan Lovells and co-head of the firm's worldwide patents group. He practiced as a solicitor in Hong Kong from 1993 to 2000 before moving to Shanghai where he was managing partner of Hogan Lovells' Shanghai office and head of its Mainland China IP Practice. He is the author of Patent Litigation in China (OUP) and co-author of Civil Litigation in Hong Kong (Sweet & Maxwell). Euromoney and Intellectual Asset Management magazines have named him one of the world's leading patent practitioners in 2013.

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

2013 May

Fax: (852) 2810 1289

Time: 8:00 - 9:30am (Light breakfast included) Fee(s): Member Fee: HK$150 Non Member Fee: HK$280 MEDIA WELCOME

Email: kalau@amcham.org.hk