AmCham biz.hk June 2015 by The American Chamber of Commerce in Hong Kong

June 2015

FIGHTING TO BREATHE

CHRISTINE LOH UNDER SECRETARY FOR THE ENVIRONMENT

SPECIAL SUPPLEMENT: GUIDE TO HEALTHY LIVING

50 Years of welcoming you to our world Discover how we support your team and prepare your people for every assignment

Go knowing

www.crownrelo.com/hongkong

In fifty years weâ&#x20AC;&#x2122;ve learned a lot about what makes relocations more successful for everyone. CMY

With experienced and knowledgeable people on the ground in more than 60 countries we support your program and take good care of your people: s #OMPLETE SERVICE TO INTEGRATE WITH YOUR (2 STRATEGY s 2ELOCATION POLICY SUPPORT AND BENCHMARKING s !CTIVE RELOCATION MANAGEMENT s 0ERSONAL SUPPORT FOR ASSIGNEES THROUGHOUT THE PROCESS s ! PERSONAL SERVICE AT ORIGIN AND COMPLETE SUPPORT TO aid settling in at destination

Tel: +852 2636 8388 hongkong@crownrelo.com

June 2015

Contents

Vol 47 No 6

Publisher

Richard R Vuylsteke

Editor-in-Chief Blessing Waung

COVER STORY

While the Hong Kong government has made progress in tackling the pollution problem in the city, it just doesn’t seem to be going away. But all is not lost as Christine Loh, the Under Secretary for the Environment, sees hope in China’s efforts to clean up.

Managing Editor Leon Lee

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) 3753 1206 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 Tel: (852) 3596 8466 Email: ray.chau@overa.com.hk Website: www.overacreative.com

AMCHAM NEWS AND VIEWS 04 Editorial The growing number of trade agreements between Mainland China and Hong Kong such as July's new mutual fund recognition scheme are encouraging cross-border transactions. But to attract more investors, there's never been more of a need for clear transparency between the two sides on rules, reporting and operating procedures.

07 New Business Contacts 26 executives joined AmCham's business network last month

44 Mark Your Calendar

©The American Chamber of Commerce in Hong Kong, 2015 Library of Congress: LC 98-645652 For comments, please send to biz.hk@amcham.org.hk Single copy price HK$50 Annual subscription HK$600/US$90

biz.hk 6 • 2015

GOVERNMENT RELATIONS

TRADE & INVESTMENT

CHARITABLE FOUNDATION

The Legislative Council gets a bad break sometimes as filibustering and other dilatory tactics make it seem inefficient. However Dennis Kwok, a LegCo legislator and a founding member of Civic Party, refutes that as he explains at a recent AmCham event just how much work gets accomplish there.

HMV was on the verge of closing its stores in Hong Kong before they were rescued by Hong Kong private equity firm AID Partners Capital. With a new strategy focused on other things besides CDs and DVDs, the brand’s evolution will be on full display in its upcoming flagship store.

With charities focusing on helping children, migrant workers, the elderly and others, the AmCham Charitable Foundation and the American Women’s Association awarded nearly HK$290,000 this year to support and provide financial assistance to projects for a good cause.

COVER STORY 08 Fighting to Breathe While the Hong Kong government has made progress in tackling the pollution problem in the city, it just doesn’t seem to be going away. But all is not lost as Christine Loh, the Under Secretary for the Environment, sees hope in China’s efforts to clean up.

GOVERNMENT RELATIONS

14 The Inner Workings of LegCo

The Legislative Council gets a bad break sometimes as filibustering and other dilatory tactics make it seem inefficient and ineffective. However Dennis Kwok, a LegCo legislator and a founding member of Civic Party, refutes that as he explains at a recent AmCham event just how much work gets accomplish there.

TRADE & INVESTMENT 17 Hong Kong’s Role in a Changing Sears World Although the nearest Sears or Kmart retail store is thousands of miles away, its two facilities in Hong Kong play a pivotal part in the operations of one of US’s largest broadline retailers.

biz.hk 6 • 2015

20 Grooving to a New Beat HMV was on the verge of closing its stores in Hong Kong before they were rescued by Hong Kong private equity firm AID Partners Capital. With a new strategy focused on other things besides CDs and DVDs, the brand’s evolution will be on full display in its upcoming flagship store.

INFORMATION TECHNOLOGY 24 The Power of Data Hidden amongst the massive pile of data and information that companies collect could be solutions and strategies that can change a good business into a great one. Experts from Deloitte Consulting share some insights on how to find and implement them.

CHARITABLE FOUNDATION 28 A Celebration of Partnerships in Giving Back to the Community With charities focusing on helping children, migrant workers, the elderly and others, the AmCham Charitable Foundation and the American Women’s Association awarded nearly HK$290,000 this year to support and provide financial assistance to projects for a good cause.

Board of Governors Chairman

Peter Levesque

Vice Chairman

Walter Dias

Treasurer

Tom Burns

Executive Committee Evan Auyang, Sara Yang Bosco, Steve Lackey, Ryan Mai, Alan Turley, Richard Weisman Governors David Adelman, Donald Austin, Anne-Marie Balfe, Owen Belman, Diana David, Sean Ferguson, Robert Grieves, John (Jack) E Lange, Seth Peterson, Catherine Simmons, Eric Szweda, Colin Tam, Jennifer Van Dale, Frank Wong, Patrick Wu Ex-Officio Governor President

James Sun Richard R Vuylsteke

Chamber Committees AmCham Ball Apparel & Footwear China Business Communications & Marketing Education Energy Entrepreneurs/SME Environment Financial Services Food & Beverage Hospitality & Tourism Human Resources Information & Communications Technology Insurance & Healthcare

Ryan Mai Mark Green Michael Klibaner Lili Zheng Charlie Pownall Oliver Rust Virginia Wilson Rick Truscott Laurie Goldberg Jim Taylor Steven X Chan Veronica Sze Mark Kemper Shanthi Flynn Chris Meyrick Rex Engelking

Hanif Kanji Rebecca Harrison Intellectual Property Jenny Wong Gabriela Kennedy Law Clara Ingen-Housz Pharmaceutical Joyce Wong Real Estate Robert Johnston Edward Farrelly Senior Financial Forum Philip Cheng Senior HR Forum Bianca Wong Taxation Ivan Strunin Trade & Investment Barrett Bingley Transportation & Logistics Gavin Dow Women of Influence Anna-Marie C Slot Jennifer Parks Young Professionals Michael Harrington

biz.hk Editorial

he past year has been earmarked with landmark agreements between Mainland China and Hong Kong that have opened up previously unseen channels for cross-border trade and investment. In a highly touted agreement that commences July 1, a mutual fund recognition scheme will allow streamlined cross-border fund sales, with a massive 600 billion RMB quota, higher even than the Shanghai-Hong Kong Stock Connect which opened to great fanfare in late 2014. This will, for the first time, allow funds to be transacted between Mainland China and Hong Kong on equal terms. Initially, the first batch of funds that will be allowed for sale will be general equity, bond, mixed, unlisted index, and physical indextracking exchange traded funds. At a later date, Securities and Future deputy chief executive Alexa Lam Cheung Cheuk-wah has said that the second batch could extend the scheme to exchange-traded funds. This is a key area where Hong Kong and AmCham in particular can advocate and deliver thought leadership on international best practices in facilitating cross-border transactions, thus maintaining Hong Kong’s global role as a core financial center, boasting a deep knowledge base and global perspective. With the experiences garnered from the aforementioned connect that opened last year, there must be encouragement for clear and transparent rules regarding application procedures and eligibility requirements, as well as reporting standard operating procedures. Without such lucidity, the ability for Hong Kong-domiciled funds would be hampered by uncertain rules. Though Hong Kong’s stock market has seen a recent surge because of cross-border schemes,

biz.hk 6 • 2015

GUIDING A MUTUALLY BENEFICIAL RELATIONSHIP with the stock market performing at its highest in years, the energy must be watched carefully. For example, following the provisions set up by the China Securities Regulatory Commission, it will be obligatory for all eligible Hong Kong funds to sell via recognized fund distributors in the Mainland. There will be a need for experienced service providers based in Hong Kong to discern and evaluate all dealings pertaining to the scheme, in order to provide investors with the most comprehensive information available. Currently, mainland mutual fund market assets total nearly half a billion USD, and are expected to grow rapidly in the next decade. With the scheme’s arrival, many Chinese and global firms will likely expand in Hong Kong. There is great opportunity in this arena, and a chance for the city to leverage its experience and global reach. Hong Kong enjoyed the first qualified foreign institutional investor (QFII) quota back in December of 2011, which gave the city’s

biz.hk 6 • 2015

financial institutions the unprecedented opportunity to create offshore yuan funds investing in Mainland Chinese stocks and bonds. Since then, Beijing has also given RQFII quotas to the markets in Singapore, London, Luxembourg, and Paris. It is probable that, as China’s market continues to open itself to the rest of the world, the Central Government will extend a favorable status to other markets as well. With the scheme, it is crucial to have a successful start and clear communication between the markets in order to emphasize the importance of Hong Kong. If successful, the SFC and CRSC hope to expand the scheme further. Investors are still awaiting the announced cross-border scheme that will connect the Hong Kong and Shenzhen stock markets. Indeed, it’s an exhilarating time to participate in the market, and the opportunities to develop access between Hong Kong and China’s markets are seemingly endless.

www.amcham.org.hk

AMCHAM Means Business

Members Directory

Over 500 pages in three major sections, including a complete guide to chamber services, corporate sponsors and AmCham Charitable Foundation. This directory lists about 1,700 members from over 700 companies and organizations. ISBN 978-962-7422-31-0

LC 98-645651 NON-MEMBER PRICE HK$1500 US$195 Shipping costs: Local HK$45 (per copy) US/International US$50 (per copy)

MEMBER PRICE HK$800 US$104

AmCham Member Name: Title: Company: Address: Tel: Fax: Email: Website: copy(ies) of Members Directory Total: HK$/US$ (postage inclusive) payable to The American Chamber of Commerce in Hong Kong check# Bank: Charge to AMEX (US$) Diners (HK$) Visa (HK$) Master Card (HK$) Cardholder's Name: Card# Expiry Date: Issuing Bank: Signature: (Not valid unless signed) The American Chamber of Commerce in Hong Kong 1904 Bank of America Tower, 12 Harcourt Road, Hong Kong. Tel: (852) 2530 6900 Fax: (852) 3753 1208 Email: hchung@amcham.org.hk

New

Business Contacts The following people are new AmCham members: Cartus

MaryAnne Resnick Client Services Director General Manager, Hong Kong

CDP Group Ltd.

Kelvin Zhang Regional Director, Asia Pacific

Chinese University of Hong Kong, The Jackie Militello Professor

Hong Kong University of Science & Technology Fernando Diaz Assistant Director (Strategic Initiatives), MBA Programs, School of Raymond Xiao Assistant Director, MBA/MSc Career & Professional Development

Rediscovered Limited

Nicole Chalwell Director, Business Development Joanna Keogh Director, Product Development Lelia Konyn Chief Commercial Officer, Chief Human Relations Officer

Rockwell Automation International Holdings LLC J.P. Morgan

Jason Camilleri Managing Director Warren Soo Corporate Sales Manager, Treasury Services

Avinash Kumar Director Human Resources, Asia Pacific

Smart Shirts Ltd

Lan Ye Senior Vice President

Citi

Tobey Hill Regional Tax Director

Jefferies Hong Kong Ltd

Ada Poon Senior Vice President - Equity Sales

Digital Realty

Omer Wilson Marketing Director, Asia Pacific

Societe Generale

Olivier Vercaemer Head of Financial Institutions Coverage, Asia Pacific

Strategic Decisions Group HK Ltd. Kiabi Group

Terry Broderick Regional Technical Director

Peter Hopper Managing Director Jugnu Sakuja Senior Engagement Manager

Four Seasons Hotel Hong Kong Irene Tan Director of Marketing

Hongkong and Shanghai Banking Corporation Ltd, The Charles Collins Division Head, Asia Business Team

Marubeni-Itochu Steel Hong Kong Limited Takayuki Kuboshima Managing Director Jason Lau Manager Louis Li Deputy General Manager

Thomson Reuters Hong Kong Ltd Adrian Riley Account Director

VF Asia Pacific Sourcing S. a r. l.

Alex Thomas Vice President, Supply Chain, Manufacturing Excellence and Technical

View our other members at:

http://www.amcham.org.hk/component/amcham_users/?view=memberlist

biz.hk 6 â&#x20AC;˘ 2015

COVER STORY

Christine Loh

Fighting To Breathe Pollution is not a new issue for Hong Kong, as the government has been trying to improve it for years. Little by little, things are starting to turn around, thanks to the efforts of Christine Loh, the Under Secretary for the Environment, as well as Chinaâ&#x20AC;&#x2122;s increasing focus on dealing with its own pollution concerns

By Leon Lee 8

biz.hk 6 â&#x20AC;˘ 2015

nybody living in Hong Kong knows that the city’s air has its good days and bad days. Good days bring cloudless blue skies and plentiful sunlight for days on out. But on the bad ones, one can barely see the other side across Victoria Harbour, let alone breathe. It’s days like those that can turn the beautiful city into quite an undesirable place to live, affecting not only residents but also visitors and Hong Kong’s image abroad as a top city to live and do business. “In today’s world, talent can go anywhere, which means Hong Kong talents can leave and other talents can choose not to come,” says Christine Loh, the Under Secretary for the Environment for the HKSAR government. “What are people looking for? What is the city like? What is it like to live here? Hong Kong has many advantages, but we also have a number of disadvantages,” Loh says. “Air quality is one of them. That’s why for us, air quality is so important.”

“Planet Earth is Screwed”

Photos: Paul Yeung

biz.hk 6 • 2015

Loh has long been known in Hong Kong as the authority on environmental issues and policies. For more than 20 years, she has been raising awareness and championing for change. Before she accepted her current position with the government in September 2012, she was the CEO and co-founder of the non-profit think tank Civic Exchange, which focuses on advancing civic education in the public on social, political, environmental and economic issues. Loh’s initial interest in the environment occurred in 1985. Back then, she was a commodities trader who travelled often. To pass the time on those long plane rides, she would read a lot of magazines. “There was a period of time around the mid-80s when there were many stories related to the environment. So there was ozone depletion, deforestation, and global warming,” she recalls.

“I remember they were major pieces. I was just reading them and it struck me that if only half of it was true, planet Earth is screwed. We’re dead.” Around that time, her friend Linda Siddall had just created the environmental organization Friends of the Earth in Hong Kong. When Loh expressed interest in her readings, Siddall encouraged her to join the group. Before she knew it, she became the chairman. Eventually she left her career in the private sector and went into politics, serving as a legislator in the Legislative Council for nine years. During that time, she continued her environmental crusade. In 1995, she co-founded the Society for Protection of the Harbour, which fought to limit land reclamation in Victoria Harbour. She has additionally acted as a senior policy adviser to C40, an international climate change network and in 2007, she was named by Time magazine as one of the “Heroes of the Environment”.

The Current State Over the last several years, marine and air pollution in Hong Kong have shown signs of improvement. Better treatment of sewage under the Harbour Area Treatment Scheme (HATS) from 2002 has prevented wastewater from polluting our waters and helped the marine water quality improve. In 2001, the overall compliance rate of water from Victoria Harbour with the government’s Water Quality Objectives (WQOs) was at only 50 percent. In 2014, that number had risen to 77 percent, consequently allowing events such as the Cross Harbour Race to return to the harbor. Loh believes the water will continue to improve after the full implementation of Stage 2A of HATS later in 2015. Last year, air quality in the city slightly improved as concentration of pollutants such as nitrogen dioxide and sulfur dioxide have decreased. This was attributed to initiatives that target cutting down roadside pollution such as phasing out 82,000 pre-Euro IV diesel commercial vehicles by 2019,

Annual Average Ozone Levels around Hong Kong Yuen Long 2010: 34 2014: 41

Tsuen Wan 2010: 30 2014: 39

Tai Po 2010: 38 2014: 52

Tap Mun 2010: 67 2014: 72

Sha Tin 2010: 45 2014: 51

Tung Chung 2010: 44 2014: 46

Kwun Tong 2010: 33 2014: 46

Kwai Chung 2010: 28 2014: 36

Eastern 2010: 42 2014: 43 Central/ Western 2010: 37 2014: 43

Shum Shui Po 2010: 28 2014: 35

All concentration units are in microgram per cubic metre.

subsidizing the replacement of catalytic converters on taxis and minibuses and retrofitting some 1,400 Euro II and III franchised buses with selective catalytic reduction devices by next year. Despite the decrease, pollutant levels were still more than double that of World Health Organization guidelines and Hong Kong’s Air Quality Objectives. In the first three months of this year, the Environmental Protection Department’s air quality monitoring stations have recorded 726 hours where the Air Quality Health Index was at a Level Eight “Very High” or above in the 11-tier system. Whenever the air quality falls in that range, EPD issues a warning to children, the elderly and people with heart or respiratory illnesses to limit outdoor activities.

The Real Enemy But while concentrations of nitrogen dioxide, sulfur dioxide and respir-

Source: EPD

able suspended particles have gone down in Hong Kong, the level of ozone has steadily increased which is causing concern. “It’s a very difficult issue because it’s a secondary pollution. If it’s a primary pollution, it means it is coming straight out of, let’s say, a power plant or the back end of a car. I can go and stop it. I can say it’s coming from this,” Loh explains. “But secondary pollution means that these pollutants are up there in the atmosphere with sunlight. They transform into something else. The transformed bit is much more difficult to deal with.” According to a recent study by the Hong Kong Polytechnic University, the local ozone production has actually been decreasing. However, that reduction was offset by the increase of regional pollution which resulted in an increase of 18 percent from 2010 to 2014. Hong Kong’s close proximity to the Pearl River Delta means we’re in a

high emissions regions as it’s one of the world’s major manufacturing and logistics centers. However, things could improve as over the years, China has recognized the severity of the issue and taken major steps to tackle it.

China’s Plan “I have been tracking China’s environmental efforts for many years. I think where they are today, they are more serious than they have ever been

biz.hk 6 • 2015

before. For them to really now not just talk, but to have all the tools in play to do it, this is the time,” Loh says. In their 10th and 11th Five-Year Plans, the Chinese government set national goals to reduce sulfur dioxide emissions by 10 percent. In the 12th one, it focused on reducing nitrogen oxides by 10 percent. Closer to home, both Hong Kong and Guangdong Province have announced their plans on improving air quality with Hong Kong’s “A Clean

biz.hk 6 • 2015

Air Plan For Hong Kong” in March 2013 and Guangdong’s “The Guangdong Air Pollution Control Plan (2014-2017)” in February 2014. Both regions have set up emission reduction targets to be achieved in 2015 and emission reduction ranges for 2020. Hong Kong is also collaborating with the Economic and Information Commission of Guangdong Province on the Cleaner Production Partnership Programme (CP3) which encourages and helps Hong Kong-

owned factories in the province to adopt cleaner production technologies and practices. Loh says that both Hong Kong and Guangdong’s effort to improve their air quality is at the forefront nationally. The rest of the country will follow, but it still remains to see how long it will take. “You can have these high sounding laws and policies, but you need to implement them on the ground. You need to do capacity building for your officials, and you need to get the

Hong Kong-Guangdong 2015 and 2020 emissions reduction targets/targeted ranges Pollutant

Area

Emission Reduction Targets/Ranges (as compared with 2010)

2015

2020

Hong Kong

25%

35-75%

(sulfur dioxides)

PRD Economic Zone

16%

20-35%

NOX

Hong Kong

10%

20-30%

(nitrogen oxides)

PRD Economic Zone

18%

20-40%

RSP

Hong Kong

10%

15-40%

(respirable suspended particles)

PRD Economic Zone

10%

15-25%

VOC

Hong Kong

15%

PRD Economic Zone

10%

15-25%

SO 2

(volatile organic compounds)

Source: Environment Bureau

policy’s priorities down to each province, each city, each county, each little township. That work in a country like China is really hard,” explains Loh. “But in China today, I think what I find encouraging is that you do have now a much more total view of the problem. And we now have a new generation of leaders. You are seeing at the senior level and also at the working level. I’m seeing many younger people joining everything from research to enforcement to being at the policy level. And to grow this group of officials and so on, you need assistance. You need a lot of people to do this. It is going to take years, but I see them moving ahead now in a much more determined fashion.” She cites Los Angeles as a reference. From the 1970s, it took about 20 years to clean the air quality in the region to what it is now. She hopes to see greater improvements in the mainland over the next 10 to 15 years, however also says the magnitude of our problem is very large.

Moving Ahead Loh has been in office for almost three years now but believes there’s still a lot more work to do. However, with a definite amount of people and resources, she has accepted there’s only so much that can be done in a five-year period, the length of the term of the office. Therefore it’s important for her to work on the best and most appropriate priorities. Working in the government, she’s learned that things happen slowly. “The difference between being in government and being outside is here when we say we want to do something, we actually have to implement it,” Loh says. “Now as a think tank, if you don’t have to implement, you can talk about what you should do and why it’s important and so on. But you don’t really have to focus on implementation. And the implementation is that vital step, whether you can do it or not.” “It’s very easy to say this is what I

want to do and this is how you do it. But to actually get it done, to pass laws, to make sure you have trials, and to make sure this new system works, to enforce the law, to police the law, it’s actually tremendous amount of work.” “You have to be able to deliver and ultimately, people are only going to remember those things that you delivered.” As for her own future, Loh intends to retire after her term ends to spend more time with her family. But before then, she will keep fighting the good fight. “It’s obvious, we need to do it. I have the opportunity to do it and I have the interest and the knowledge to keep going forward. I think it’s what I like to do and keep doing until I retire,” Loh says. “I never get tired on the issues I care about.” And she always keeps in mind whom she’s fighting for. “The most important thing, from the day to day basis, is we owe it to the people who are here to clean up.”

biz.hk 6 • 2015

GOVERNMENT RELATIONS

The Inner Workings of LegCo Does the frequent filibustering and other political dramas at the Legislative Council indicate an underperforming government that does not work overall? Civic Party legislator Dennis Kwok addresses these concerns whilst detailing insights to paint a more accurate political reality in these chambers, and shares his views on the future of democracy in Hong Kong

By Nan-Hie In

he rise of filibustering and other dilatory tactics at the Legislative Council (LegCo) in recent years highlight much dysfunction in Hong Kong politics. As a result, many members of the public and industry observers alike have criticized the less productive lawmaking body for stymieing the progress of the city.

However, LegCo legislator Dennis Kwok argues that such criticism is unfair. While he acknowledges that the obstruction maneuvers by radical lawmakers must be addressed, it’s only a small part of the bigger picture and shouldn’t be used to show that the system doesn’t work. In reality, many bills get passed. “The media doesn't always report on more mundane matters in what I

call the real work that LegCo does on a daily basis because they are not sexy topics,” says Kwok, who was elected three years ago as one of the youngest lawmakers then. During his tenure as a representative for the legal sector of the functional constituency, more than 90 legislations and subsidiary legislations have been passed or around 30 laws per year. Those include air pollution reform measures including the Air Quality Amendment bill, plus a HK$700 million injected into special education needs for mentally and physically handicapped children. Additionally, numerous complex infrastructure projects have secured approval.

biz.hk 6 • 2015

“Over the past three years, over 90 infrastructure items have been passed in the finance committee involving more than HK$42 billion worth of infrastructure projects, including the controversial incinerator [in Shek Kwu Chau], the landfill extension, and a host of other basic infrastructure projects such as the building of roads, schools and hospitals.” At a recent AmCham event, the lawmaker shared a more comprehensive view of the inner workings of the city's legislature to show a fuller view of current political reality. The legislative councilor also addressed various political concerns, including the much talked about electoral reform plan.

biz.hk 6 • 2015

Slow but Necessary A dominating view by the executive branch of the legislature is that LegCo could be more productive in green lighting measures. But there is a good reason behind the slow progress. “We could be more efficient in some respect but on some issues [that are being tabled], we have to ask questions before we vote yes,” Kwok says, adding that this is the duty of effective legislators. That includes addressing concerns over mega-infrastructure works that have been marred by delays and astronomical cost over-runs, an increasingly frequent pattern seen at LegCo. The high-speed rail link for the West

Kowloon project, for example, which was originally budgeted for HK$25 billion for the whole project in 2009, is now exceeding the original budget by a whopping HK$90 billion. Likewise, more financing for the Hong Kong-Zhuhai-Macau bridge is being tabled now. LegCo originally approved HK$30 billion for the project, but this year the government made a bid to the legislature for further funding for its completion - to the tune of HK$5.4 billion. “Questions will be asked on what happened. I know construction costs are rising but you cannot keep having over-budgets for infrastructure projects,” he says. “We are not saying no to economic development. All we

Dennis Kwok

the filibustering dealt by the president, unlike in most parliaments and congress around the world with closure motion procedures, whereby two thirds of [legislative] members agree to closure then they close,” explains the legislative councilor. Currently, LegCo’s president Jasper Tsang has the power to end filibustering as he sees fit. However, Kwok, who is also a founding member of the Civic Party, says the public can shape this predicament through the upcoming general election in 2016 when voters decide who gets elected into the legislature. “You can vote for a radical if you feel so angry about the government, or vote for a moderate who will ask sensible questions, does their job properly and does not resort to filibustering tactics all the time,” he says.

Political Reform in Hong Kong are asking is: why there is so much extra public expenditure that has to be spent?”

Dealing with Stall Tactics The frequent filibustering at the legislature has often erupted at the finance committee during sessions about infrastructure projects. He joins a chorus of criticism on the obstruction tactics by opposition lawmakers, which have contributed to project delays and increased construction costs as a result. “It is bad politics and ineffective in terms of trying to do what you want to do, but the radicals don't realize that and they are still filibustering,” he says. The legislator says the situation is not improving as the legislature has grown accustomed to this behavior. Previously, Kwok proposed closure motion procedures to be adopted at LegCo, but the idea failed to generate enough support. “The pro-establishment lawmakers would not have it because they like the present arrangement with

Dominating media headlines and many conversations amongst Hong Kong people lately is the June 17th vote in LegCo on the method of electing the Chief Executive in 2017. The electoral package proposed by the government drew much controversy for its pre-screening processes. That includes how candidates vying for the top job must get enough votes by a Beijing loyalists-filled nomination committee. Many activists and pro-democracy lawmakers derided this framework, which they believe does not offer genuine universal suffrage. Kwok says the proposal will likely be rejected once it reaches the legislature. All 27 pan-democrats have publically stated their refusal to endorse the package, which needs a two-thirds majority from the 70-member legislative council in order to take effect, as detailed by the city's constitution. Kwok cites recent public polls by the Chinese University of Hong Kong that show an even split on this issue. If the proposal does get passed somehow, Kwok expects unrest from the community. “You will see a second wave of the Occupy Central movement

that will probably be more fierce than the one you saw last year,” he says. The lawmaker cautions against this move. “A lot of people would feel cheated, that somehow the democrats or the government have passed this proposal despite a clear voice out in the community that they do not want this package passed.” Kwok believes a better way of resolving the impasse is to let the Hong Kong people decide the city's democratic future through the next legislative election in 2016. Voters can decide through the ballot boxes on which way they want to go, as this theme will be the signature political issue on the candidates’ campaign to get elected. “Every politician would have to go out there and explain his stance to the Hong Kong people on why he or she voted yes or no [to the electoral proposal], and the Hong Kong people will have to decide if they agree with the democrats [or not.]” He adds that the results of this election will say to Beijing and the local government what the public wants. The lawmaker considers the general election of 2016 as the most important election since the handover, so he encourages permanent residents to register to vote. But what if a large number of democrats do get elected to the legislature in 2016 and Beijing still refuses to back down from its edict in August 31, 2015, which ruled out open elections by 2017 with the restrictive framework? “Never say never in politics,” says Kwok. “Under Article 45 of the Basic Law, they still have the constitutional duty to bring a constitutional package acceptable to the Hong Kong people.” The lawyer is optimistic that things will change. Universal suffrage is the biggest problem in the city, so the candidates running for Hong Kong's highest post will have to address the issue. “I don't buy any of the talk that if you vote this package down that no chief executive will ever re-open this process. It is politically impossible.”

biz.hk 6 • 2015

TRADE & INVESTMENT

Hong Kong’s Role in a Changing Sears World Sears Holdings, one of the US’s largest broadline retailers, sees Hong Kong as a strategic center in Asia as it moves from brick-andmortar sales to increasingly embrace technology and B2C. It’s the sort of example tellingly illustrated at Hong Kong’s “Think Asia, Think Hong Kong” promotional campaigns in Chicago and Toronto in June

By Martin Evan-Jones

biz.hk 6 • 2015

ijay Talwar is in an engaged, playful mood as he passes business cards – even stopping to play football and throw a frisbee or two – while he evaluates booths at the Hong Kong Gifts & Premium Fair in May. But Sears Holdings’ President for Gifts and Special Occasions is in full corporate mode when he speaks of the Illinoisbased company’s view of Hong Kong’s strategic role. “Ultimately what this is about is sourcing high quality products on time, at the lowest possible cost, and Hong Kong plays a very big role in the relationship we have with manufacturers and sellers across Asia,” comments Talwar. This is becoming even more significant as the firm heads towards a digital future. Sears’ relationship with Hong Kong dates back to 1959 when it first established its offices in the territory. The city has progressively become the company’s prime sourcing and testing platform for Asia, particularly since the formation of Sears Holdings after the takeover of Sears, Roebuck & Company by US discount chain Kmart in 2005.

Done in Hong Kong With some 500 staff, Sears’ two Hong Kong facilities comprise some of the world’s largest in-house sourcing and testing units for a multinational cooperation. It serves the group’s extensive collection of brands under both the Sears and Kmart operations. The fourth largest broadline retailer in the United States, with some US$50 billion in annual revenues this year and about 3,800 full line and specialty stores in the US and Canada, uses Hong Kong as a central operation to source and test products aimed at feeding brands such as Jaclyn Smith, Joe Boxer, Craftsman, Diehard and the Shop Your Way social media online platform. The Sears Holdings Global Sourcing facility in Mong Kok has some 30 technicians and backup staff, all locally

hired, to inspect and test fiber and clothing constituents. Testing equipment include machines that evaluate the strength of clothing and stitching and whether buttons are sewn on to garments securely enough. The laboratory operates on a 24-hour basis, testing some 100 products every day. Its sister station handles the hard goods side. The Sears sourcing office is a buying operation and exporter for items that include garments, household products, footwear, kitchen utensils, electrical home appliances and toys and games sourced across the Asian region, including India and Bangladesh. “As products are manufactured on the Chinese mainland, in Hong Kong or in the rest of Asia we deal directly with our Hong Kong offices to source those products, but have to make sure these are tested before entering the US,” says Talwar.

speed of delivery and tighter inventory management in the company’s global supply chains. These are some of the key “deliverables” under the group’s transformation program, aimed at rationalizing operations and reducing the losses registered over the past decade. Sears is making progress in its approach. According to the unaudited first quarter 2015 results released on June 8, domestic adjusted net income with interest, taxes, depreciation and amortization added back (EBITDA) improved compared to the same period last year, while sales declines slowed due to more efficient and targeted promotional spending and focus on category sizes. As a result, net losses declined to US$303 million in the first quarter of 2015 compared to US$442 million the previous year.

Direct Dealings

Capitalizing on Hong Kong’s Advantages

Protecting the integrity of its brands is of the highest priority to Sears, particularly as it looks towards transforming into more of a retail model rather than asset model. That also means refining its buyer-driven commodity chain in which it took a pivotal role in the 1990s when decentralizing production networks to exporting countries, mainly in China and Southeast Asia. Sears has been among retailers at the forefront of the so-called “manufacturers without factories” approach in the US, concentrating on high value research, design, sales and marketing, and acting as a strategic broker developing evolving product niches. Hence, when meeting suppliers and manufacturers, particularly smalland medium-sized ones, at the Gifts & Premium Fair, Sears can buy direct through its Hong Kong offices without needing to make a multitude of deals on behalf of different Sears units, explains Talwar. That’s particularly significant given the requirement for increasing

As with many multinational retailers, Sears has continued to grapple with the uncertainty of demand in its prime markets, uneven consumer and commercial credit and the impact of rising fuel prices. With issues like those impacting the supply chain, its operation in Hong Kong becomes ever more crucial, say professional observers. The Hong Kong SAR’s corporate advantages are well-documented, including its simple, single-tier tax system as well as high-level legal and accounting standards. Corporate tax stands at 16.5 percent and profits generated outside the SAR are not subject to tax, VAT or holding taxes, meaning minimal exposure to double tax liability. Added to these is Hong Kong’s interface with Mainland China, particularly in the adjoining Pearl River Delta, for sourcing through networks of experienced suppliers. The SAR is also the most mature international offshore center for payments and other arrangements in renminbi. However, as the Chinese market has opened up, it has become a more

biz.hk 6 • 2015

expensive sourcing platform. But due to Hong Kong’s geographical location, it’s also close to progressively attractive, convenient and connected sourcing centers in Southeast Asia, including Indonesia and Myanmar, and further afield in India and Bangladesh, particularly for clothing, textiles, jewelry and consumer electronics. Perhaps less appreciated is the growing “hub” effect of a number of major players in the sourcing and services businesses in Hong Kong, creating more efficient logistics, increasing improvisational and creative supply chain operations.

Embracing Technology In 2011, General Electric, the US infrastructure and technology giant, established its global operations office in Hong Kong. The confidence in Hong Kong’s technology capacity generated by such a move has proved effective in attracting firms such as Bindo. The New York-based company set up its regional headquarters in Hong Kong in 2013 to accelerate its cloud-based iPad point-of-sale system development to accommodate its online marketplace. For Sears, the future is determined by a more extensive reliance on computer systems under its transformation plan, with Hong Kong again playing a key role. Talwar, who previously worked for online jewelry retailer Blue Nile, speaks of how Hong Kong was the central platform for development and testing into the Chinese mainland market before rolling out e-tail offerings. He says that to Sears, Hong Kong is a leading technology-savvy base where the company can test the speed of its websites and apps before introducing online retail in other Asian centers. That fits with Sears’ determination to deliver connected digital and physical shopping experiences on a global basis. Sears is developing its Shop Your Way social media shopping platform to offer members rewards for shopping online while offering full-line and

biz.hk 6 • 2015

specialty stores in the US through its seekingalpha.com virtual stores. Additionally, the spun-off Sears Canada cemented a deal this year with Liz Lange to sell its maternity chic clothing collection in stores and online, while Sears units Hometown and Outlet stores in the US partnered with innovative sourcing website Quirky to create headphone design. The Hong Kong operation will be largely responsible for delivering on-time and compliant products for these new projects. Sears’ fast track approach to its online offerings comes on time as it adapts to the changing business technology climate where US giants such as Wal-Mart and Amazon have increasingly set the pace. The online B2C market is indeed the one where established retailers are set to engage in more fierce competition

and aggressive marketing. Last April, technology researcher Forrester calculated that US online sales would rise to US$334 billion by the end of 2015 and grow to US$480 billion in 2019 with clothing, consumer electronics and even furniture being major sectors. It is the sort of environment where Hong Kong’s sourcing and testing capabilities will be put further to the challenge.

TRADE & INVESTMENT

Several years ago, the end seemed near for one of Hong Kong’s biggest international music and movie retailers. But a last minute purchase by Hong Kong’s AID Partners Capital gave the struggling brand new life. Now, not only is HMV relevant again, but they’re looking to expand with a new flagship store in bustling Causeway Bay

By Leon Lee

biz.hk 6 • 2015

wo short years ago, things were not looking good for HMV, the eminent 92-year-old British music and DVD retailer. The company entered administration and were on the verge of bankruptcy in January of 2013, prompting many to worry about what would become of the six stores in Hong Kong. The situation took a turn for the better when Chicago financial house, Hilco Global, agreed to take up the debt of the company. In March of that year, Hong Kong private equity firm AID Partners Capital acquired HMV’s existing businesses in Hong Kong and Singapore along with the operating licenses for China, thus securing ownership of one of the city’s most popular music and movie stores.

A New Beginning

HMVideal

biz.hk 6 • 2015

After the acquisition, new owner and principal partner at AID, Kelvin Wu, told the South China Morning Post that he believed HMV can evolve beyond a music store and envision the company to provide customers with more than just CDs and DVDs. Fast forward to September 2014, when the brand revealed their first concept store HMVideal in Central. The 12,500 square foot store spreads over two floors in the Entertainment Building on Queen’s Road Central. Just as Wu mentioned, besides CDs and DVDs, the new store offers a much more comprehensive collection of books, magazines and vinyl records, as well as headphones and other entertainment-related products. It also features a café, radio DJ booth, and performance area for live shows. It was quite a change for the traditional retail store that most people have known them for. “The basic belief is that what HMV represents is a leisure opportunity for busy urban people,” says Robert Esser, CEO of HMV in Asia. “This is relatively accessible, easy leisure. It’s music, movies, and other entertainment. It’s things that you can take in small bites on your own time.

It’s also something that you can continuously enjoy. HMV also represents its brand DNA as a whole concept of entertainment.” “I wouldn’t say it is much of a rebranding, but the evolution of it. It’s going to focus around lifestyle products and other related products that are relevant to the brand. We are doing a bit more with it and we are moving it forward, changing the core a bit. How we are going to represent that within next six, 12 or 18 months is sort of an evolving process.”

The Next Step The HMVideal concept store has received positive response from the public so far, and the company is seeing many repeat customers. With that success, the company is building a massive, new flagship store that will continue its new vision. “Our big project now is the 14,000 square foot flagship that we are opening in Causeway Bay in September. That’s four floors,” Esser explains. “Each floor has a different theme, but we will have entertainment and all of our core products, books, magazines, movies, DVDs, CDs and tons of vinyl, on the first floor. The second floor will be lifestyle products. The top floor will be 11,000 square feet of food and beverage, with live music, café, bar, and restaurants which will be opened all day from breakfast to midnight.” They want the store to offer more than just a place to shop. They envision it to be a place for people to come and spend the day while listening to the catalog of music the company has access to. “It’s really unique because where else can you go where you have a beer and someone else has a coffee? You can’t go to Starbucks because they don’t serve beer. Bars have coffee but you can’t really meet there at 11 o’clock in the morning,” Esser says. Like HMVideal, they’ll be holding live music shows in the flagship store in a much bigger space of over 3,000

HMV Flagship Concept

feet, as well as the broadcasting their own radio programs from the DJ booth inside the store. While the feedback for the concept store has been positive, there have been some issues, particularly in regards to marketing. “I think the hurdle for this particular store that we’ve had since its launch is: number one, people don’t really understand what HMVideal is. And number two, they haven’t really publicized specifically what it means or what’s in here,” Esser says. “I bet you can ask 10 or 15 people on the street what’s inside the store and how many are going to tell you that they have a bar where you can get beer at, very few. This is the issue.” The CEO, who began his current role earlier this year, felt the past marketing efforts were done too

creatively just for the sake of being creative. This time around, they plan to keep it simple and direct.

Battling the Digital Push

Esser describes his background as a “practical entrepreneur retailer.” So for him, the more space there is in the store, the more products can be put there to sell. However, this is a real problem facing the current music and movie retail industry — the shifting demand from physical products to digital ones. According to the International Federation of the Phonographic Industry (IFPI), 46 percent of the music industry’s revenues in 2014 came from physical format sales, down from 60 percent in 2011. In fact, last year was the first year that revenue

biz.hk 6 • 2015

Robert Esser

consisted of the same proportion from digital channels and physical format sales at 46 percent, with digital growing 6.9 percent from 2013. But there is a small bright spot. Although it only accounts to around two percent of the overall industry revenue, vinyl record sales steadily increased 54 percent last year. This growing trend is not lost on Esser and HMV. “We are making a big commitment on vinyl. Right now we’ve got about a thousand new titles of vinyl [at HMVideal]. We are bringing another five and half thousand titles. So after the renovation of the vinyl room is done, there will be close to 6,000 titles of vinyl, both new and used. You will be able to buy, sell and trade.” The Causeway Bay store will hold even more, ranging from 12,000 to 15,000 titles.

biz.hk 6 • 2015

What the Future Holds Esser says that giant flagship stores are a big part of the brand’s plans for the future. Seeing a decline of retail real estate throughout Asia, he believes this is the way for them to expand to other parts of Asia. “This is going to be our pilot. I have really no doubt that it’s going to do well but it’s a question of how well and what specifically within it is going to do well. Because if you’ve got to fill out 15,000 square feet of lifestyle retail, what are you going to put in there? Some [ideas] would work and others won’t. After six months, we will have a good idea of what we are going to roll into it, or what we don’t.” Besides keeping one of the largest international music and movie retailers in the city, the success of HMV might

also encourage more private equity buyouts from Hong Kong and Asia. “Actually you can say that Kelvin [Wu] and AID might be the first in Hong Kong to do something like this because previously, private equity-types of things like this in Hong Kong have either been sort of growth capital investment or pre-IPO investment,” Esser explains. “But Kelvin came forward and did something fairly courageous. He bought this thing completely with the notion that organically, he was going to come in, fix it, sort it out and do something else completely with it. “Is it going to be the trend? I don’t know. I certainly know Kelvin wants to do more of it. Whether or not other people do it I think, may to some extent, depend on the success of what we did with HMV. We invest in ourselves and we’re hoping to develop HMV into something really great.”

INFORMATION TECHNOLOGY

The Power of Data Companies routinely amass much raw organizational data; amid this information abyss are solutions that could solve the firm's problems. Data experts from Deloitte explain how businesses can unlock insights from such data that could spark changes in the company for the better

By Nan-Hie In

nformation is power. Harness it to solve business problems and such revelations can transform a company. The potential benefits vary, such as improved efficiency that translates to millions in cost savings. Robert Rady-Pentek, an associate director at Deloitte Consulting, recalls a success story of one of his former clients, a gas canisters company in the US, which achieved those outcomes exactly courtesy of data analytics. Along with Jez Heath, a partner at Deloitte Consulting, the two veteran data experts gave a talk at AmCham on how solutions can be extracted from

company data to address business dilemmas that would prompt changes in the organization.

Too Early, Too Late The gas canister distributor had a supply chain problem. To purchase gas tanks - used to fuel barbeque grills customers had to visit a store or gas station where the products were stocked in metal cages. “The client had [tens of thousands of] locations across the US for these cages and from a distribution perspective, it was a challenge to deliver

the product to these locations all the time,” says Rady-Pentek. If the delivery truck arrived too early, as evidenced by the lack of gas canister sales, it was a futile trip as the cage did not need product replacements. If the delivery truck arrived too late, the cages were out of stock which posed risks, such as making it difficult to assess whether the stockout occurred the night before or weeks prior. “The problem was that sales of gas tanks in these cages are highly volatile, driven by factors such as weather, holidays, the type of store that housed these cages, and more,” he says.

biz.hk 6 • 2015

Robert Rady-Pentek

Jez Heath

The company needed a better way to forecast sales to deliver gas canisters to these locations at the right time. Enter a team of data specialists. Their initial task was to grasp key drivers behind product sales in various locations. They dug up internal and external data (including weather forecasts) and qualitative and quantitative information. Many revelations arose – for instance, holidays were a key driver to gas tank sales. Essentially a forecasting equation was calculated based on the data. “When this equation was put in their system, it improved their forecasting

biz.hk 6 • 2015

accuracy by about four percent, which significantly reduced stockouts and early deliveries; the company saved several million dollars a year in delivery cost,” explains Rady-Pentek. Both Rady-Pentek and Heath recounted various case studies that illustrate the successful implementation of solutions generated from data. But this approach cannot fix every company quandary. Besides forecasting, there are other ways to use and apply data analytics to achieve success in one’s organization. The duo outlined some guidelines to help companies get started in this process.

Analytics Defined There are many definitions under the umbrella term of ‘analytics.’ Descriptive analytics is gathering a myriad of information that has already occurred, such as recent sales transactions to generate reports. Descriptive analytics reveal a snapshot of the company but it has limited forecasting ability as it is difficult to make informed decisions about the company’s future based on what just happened, says Heath. Diagnostic analytics use information to extrapolate trends or other

insights to better understand the data. It explains why the results have occurred. “It's bringing more meaning to the numbers that you have captured and presented,” explains Heath. Predictive analytics on the other hand, is the key technique in generating insights that could potentially transform a company. Heath defines it as using predictive and prescriptive statistical-type modeling that takes historical data based on a key set of conditions that have happened before, to determine a defined event that is going to happen in future. “This is the essence of analytics: to take action to address a situation thanks to insight generated from data analytics,” he says. The gas canister distributor's journey is a case in point.

The Fundamental Steps According to Heath, many companies harbor much unprocessed data. However, hiring data scientists to scour through the data to uncover insights for the company to take action is a mistaken approach, he says. “The whole point of doing all this is to solve your business issues. Ask yourself: what is preventing you from achieving your business strategy? Start from [the business issue] then work backwards,” advises Heath. Once the most glaring business issue has been identified, investigate what actions and pieces of information

are needed to address the problem. Then gather and analyze the data, the most time-consuming aspect of the entire process, according to RadyPentek. One reason many companies do not embark on this process is the misconception that their data quality is not good enough for analysis. However, Rady-Pentek says the data does not have to be 100 percent in quality to apply analysis. “Every company has an enormous amount of data. If you're waiting for the time for all your data to be cleaned, you will never get there.” He recommends starting on a small-scale analytics project to begin to have clarity around which data needs to be cleaned. He suggests embarking on a “proof of concept” process, which is conducting a scaled-down version of a full-scale analytics work. For example, instead of performing a data analysis proficiently throughout the company across its outposts worldwide, focus on one department in one city. “If it works, this proof of concept suddenly shows that the data is important and you know what kind of data needs to be cleaned and what type of tools are needed.” The data expert says once the company stakeholders learn the value of the data, it can be institutionalized across the company.

Interpreting the Data In the process, the company will be confronted with an avalanche of data, which can be overwhelming. How can key insights be sifted through the wealth of information and be presented in an understandable way? Rady-Pentek recommends visualization tools to extract pertinent insights from the data to help business users make decisions. That includes geospatial analysis tools, software that lets one process and visualize data in the format of maps. Patterns can be revealed through this tool as data is sorted by location and its relationship with your chosen parameters.

For instance, if a retailer needs information to decide where to place its new store, this tool can help. The geospatial data is showcased in a map with all the company’s stores plus indicators presented in various colors or styles that reflect the data sorted through your chosen parameter, such as sales transactions. This tool can help viewers visually see patterns such as areas where stores generate most customer traffic or sales, information that is useful for retail executives to decide where to place its next store.

Organizational Considerations

Finally, integrate the solution into business practice. Rady-Pentek says all the key players in the process - from the data specialists team to the company stakeholders - need to work in collaboration to enact these insights into daily business operations. From the data analytics perspective, the teams need to understand the process of how analytics works for it to be done successfully. A range of specialized skills are required including various specialists with technology, statistics, data science and testing skills. Additionally, the business people need to be on board too. “You cannot get anything out of these insights unless you can bring it back to the business; [the process starts with] the business and understanding the business problem,” he says. Various stakeholders, including the groups that help communicate to others the insights culled from the data, all play an essential role in the overall scheme of things. Most of all, one must stand firm behind the revelations generated from the data. “The whole notion of analytics is to bring insight to the business and sometimes it might counter existing thought,” Rady-Pentek elaborates. “If you believe in your data and analytics, then stand firm. This is why your company is doing analytics, to bring new ways of thinking to the company.”

biz.hk 6 • 2015

Invest USA Directory 2015

Listing Opportunities Available Now! The 2015 Investment Guide to USA and Service Providers Directory provides up-to-date information about investment in the United States and about professional service providers for Mainland Chinese companies to â&#x20AC;&#x153;Go Global,â&#x20AC;? particularly to the USA. By listing and advertising in the Directory, companies communicate directly to potential clients and build stronger brand awareness. AmCham will distribute the Directory to Mainland companies in Hong Kong and Mainland China, the China Council for Promotion of International Trade (CCPIT) headquarters and branches, Ministry of the US Commercial Service, within the AmCham Hong Kong network and in major local bookstores in Hong Kong.

Enquiries: AmCham Publications Department Regina Leung, Advertising Manager (852) 2530 6942 / rleung@amcham.org.hk

Published by

CHARITABLE FOUNDATION

A Celebration of Partnerships in Giving Back to the Community With causes ranging from hearing aids for hearing impaired children to therapy dogs and dental care for the elderly, the AmCham Charitable Foundation and the American Women’s Association awarded nearly HK$290,000 to nine deserving charities this year

By Queenie Tsui

(From left) James E. Thompson, AmCham Charitable Foundation Trustee and Chairman of Crown Worldwide Group, Deborah Yu Cooney, Honorary AWA President and Tom Cooney, US Deputy Consul General

nce again in 2015, the AmCham Charitable Foundation has partnered with the American Women’s Association (AWA) in their annual program to support smaller and lesser known charities and provide financial assistance for projects helping children, elderly and disadvantaged people with health and special needs. In his opening remarks given at the Awards Tea on June 5, 2015, US Deputy Consul General Tom Cooney emphasized the importance of the event.

“You really feel the event is a celebration of partnerships – partnerships between several of the organizations, which are the pillars of Hong Kong,” Cooney said. For almost a decade, this partnership has become a tradition of the three American bodies in Hong Kong to support organizations that provide important services in our community. Each year, AWA accepts grant proposals and undergoes a review process to identify suitable and credible charities.

“We realized that there were so many charities in Hong Kong that the AWA is able to find and vet much better than what the Chamber can do by itself. Then we get a list of potential recipients of the money and we scrutinize it very carefully to determine where the money can best be used,” said James E. Thompson, AmCham Charitable Foundation Trustee and Chairman of the Crown Worldwide Group.

Celebrating the Spirit With more than 90 passionate members of the community gathered at what was consensually considered as their favorite event of the year, the philanthropic spirit was flourishing at the residence of the US Consul General Clifford Hart. “[Helping others] is really a fulfilling thing… For the people in this room and many others who have been lucky in their lives with lots of good things, we realized that many people out there are less fortunate, circumstances have not been good for them and we can help them,” Thompson said. Many of the award recipients were appreciative of the help. “We need your genuine heart, tender love, powerful strength and unselfish intentions to help us serve the poorest, the sick, the abandoned, the homeless, the unloved, the wounded, the hungry and the thirsty,” said Sunny Mak, founder of Sunshine Action.

Bringing Positive Impact “Ms. Lee moved to Hong Kong from mainland China four years ago. With a husband who was always occupied at work, she took up the childcare responsibility for their two daughters. It was reported that Ms. Lee spanked and pinched her elder daughter’s face because she didn’t follow Ms. Lee’s instructions. She scolded her daughter for being stupid, but felt sorry and unhappy afterwards.” This is a true story shared by Dr. Jessica Ho, Director of Against Child Abuse (ACA), at a press conference. The

biz.hk 6 • 2015

organization subsequently provided sessions of counseling and support to Ms. Lee on positive parenting methodologies. The mother came to a realization that corporal punishment would have a negative impact on the parent-child relationship, thus putting an end to her abusive parenting style. “The most touching moment in our work is to see positive change in children and families we work with. Ms. Lee is very grateful for all the support from ACA and she appeals to parents who are in a similar situation to seek help,” Dr. Ho added. Against Child Abuse is one of several NGOs awarded at the event that place much emphasis on children, migrant women and the elderly. With a mission to change the lives of hearing impaired children with early education and training, Suen Mei Speech and Learning Center believes that the language potential of these children can be developed through the use of their residual hearing. “For some students with bilateral profound hearing impairment, even the most powerful hearing aids are of very little or no benefit to them,” said Director Bessie Pang. “They need a cochlear implant, but batteries are very expensive for families with great financial difficulties. We are very grateful for the AWA funds in supporting our battery project.” Parents and volunteers from The Children’s Institute (TCI) values individual differences with great tenacity

biz.hk 6 • 2015

to serve each and every student with special education needs. “All students have strengths and weaknesses. The teachers find them for each student, hold on, and never let go,” said Dr. Jeremy Greenberg, Director of TCI. Project Concern Hong Kong provides free dental care services to elderly people living in residential care homes in Sham Shui Po and Tung Chung. Babe Chan, the organization’s Executive Director, shared an experience that speaks of the need for the constant care for the elderly. “During a visit to a residential care home, we found a set of denture that was removed from the resident’s mouth which was abnormally black. The resident had not cleaned his teeth for a couple of years,” said Chan. “Older people receiving residential care services are fragile and incapable of taking care of themselves, including their oral health. Professional oral health care for the elder and training to caregivers are very important for the elderly.” Besides medical professionals, animals can help people in need as well. Animals Asia takes great delight in seeing patients respond positively to the unconditional love and affection they receive from their therapy dogs. Jill Robinson MBE found the animal-assisted therapeutic organization in Asia when she and her golden retriever Max visited a paraplegic boy in Hong Kong in 1991. “I don’t think that any of the staff were prepared for the children’s

reactions. It was amazing. Max succeeded where other attempts had failed in bringing out reclusive patients,” said Robinson. Scientific research has shown that therapy dogs provide friendship, entertainment, affection and sensory stimulation, offering a unique type of therapy. They are a major source of support to people with depression, autism, dementia and those facing chronic or terminal illnesses. Apart from its canine therapy, Animals Asia is active in advocating animal rights such as ending bear bile farming, cats and dogs welfare as well as captive animal welfare. “We hope that through our continued public education and campaigning, individuals can be given the knowledge and tools to make appropriate and conscious choices in regards to animals and their welfare,” Karina O’Carroll, Animal Welfare Education Manager, said. Founded in 1985, the AmCham Charitable Foundation is governed by the Board of Trustees composed of AmCham Past Chairmen residing in Hong Kong with a mission to contribute to educational, training and other charitable projects in Hong Kong. This is made possible through donations from AmCham members at various fundraising events such as the AmCham Ball and the Charitable Foundation Dinner. The Board of Trustees met in May this year to review the list of charities and approved a donation of close to HK$290,000 to support nine charities.

Against Child Abuse Limited Against Child Abuse provides remedial and preventive protection programs to tens of thousands of children, youths and families with a mission to remove all forms of child abuse and neglect in Hong Kong. The charity will be funded to organize talks, workshops and camps for low-income families or working parents in the New Territories to learn about positive child management.

Animals Asia Animals Asia is devoted to animal rights and promoting ending the practice of bear bile farming, and is the only organization with a bear sanctuary in China as a part of ongoing bear-rescuing mission. The grant will provide for the delivery of animal-assisted therapy program ‘Dr. Dog’ to individuals in senior homes, hospitals and children with disabilities.

The Child Development Centre CDC was found in 1976 to provide early intervention program for children with special educational needs (SEN) and act as a resource center for the community. The grant will be spent on the purchase of testing materials that accommodate 200-250 children. The tests are critical in identifying learning issues.

Project Concern Hong Kong Project Concern runs dental clinics and mobile dental buses with registered dentists to provide curative, preventive and restorative dental treatments to the public. The grant will directly benefit closer to 45,000 patients (2,000 per year) by financing the purchase of 2 dental mixing machines and its accessories for prosthetic treatment at one of its dental clinic.

Enrich Enrich is a training organization which provides training programs in financial literacy, entrepreneurship and communications for migrant women in Hong Kong. The grant will support the establishment of their ‘Financial Crisis Counselling Service’ and provide financial counselling services to migrant workers as well as their family members across Asia.

The Children’s Institute of Hong Kong TCI was founded in 2003 by the parents of two children with special education needs. Through its individualized instructions and partnership with parents and families, the Institute aims to maximize children’s potential during their education process, offering every child an opportunity to enjoy an independent life as a functioning member of society. The grant is for the purchase of durable and child-friendly chairs and desks for a safe learning environment.

The Springboard Project For over two decades, the Springboard Project has supported children and young people with mild to moderate learning difficulties in programs that will enable them to learn and refine social skills, practice life skills outside schools and receive other therapeutic interventions. The fund will enable the organization to purchase iPads, essential for personalized learning for children.

Suen Mei Speech and Hearing Centre Suen Mei is devoted to developing the language potential of hearing impaired children through the provision of immediate hearing tests and intensive language programs from an early age. With an emphasis on early education and amplification, the organization also offers programs in language acquisition, cognitive development, parent guidance, and ultimately a systematic integration into ordinary schools. The grant will finance the purchase of Cochlear implant batteries for teenagers from unprivileged families.

Sunshine Action

Founded in 2008, Sunshine Action aims to provide food and medicines to needy families in the poorest areas in Hong Kong, China and Southeast Asia. By providing rice, packed food, stationeries, medicines, daily products and toiletries, it has helped 98,313 low-income families (approximately 169,724 individuals) directly. Its medical service has reached out to thousands of patients and successfully completed operations for 33 patients with congenital heart disease. The grant will help finance the purchase of food to be distributed to street sleepers in Sham Shui Po.

biz.hk 6 • 2015

zŽƵƌ ƐƵƉƉŽƌƚ ŝƐ ŽƵƌ ƐƵĐĐĞƐƐ͊

The American Chamber of Commerce Charitable Foundation is the philanthropic arm of AmCham Hong Kong to contribute to the community leveraging from its influence within the international business community in Hong Kong.

'ŝǀŝŶŐ ďĂĐŬ ƚŽ ƚŚĞ ĐŽŵŵƵŶŝƚǇ is a vital value of AmCham. This is made possible through donations from AmCham members and non-members, and two annual fundraising events – AmCham Ball and the Charitable Foundation Dinner. Our Aim:

Our Annual Program: x Lyn Edinger U.S. Scholarships – For secondary school graduates in Hong Kong to pursue studies at a U.S. university x Scholar Awards ʹ For MBA students enrolled in Hong Kong universities acknowledging their academic achievements and leadership and community services x Prize Book Awards – For secondary school students recognizing their academic and extracurricular achievements x Ira Dan Kaye Community Service Award – For committed volunteers honoring their generous community service and giving a donation to the charity of the person’s choice x AWA Awards – A partnership with the American Women’s Association (AWA) to provide financial assistance to smaller and lesser known charities in Hong Kong

To raise funds for educational, training and other charitable projects which have a long-reaching and beneficial effect on the recipients.

“By recognizing the important work done with our students and families, the Ira Dan Kaye Community Service Award has brought the issue of special education needs (SEN) for our community into the spotlight and public conscience. The receipt of this award has fueled our passion to serve students and others with SEN.” Dr. Jeremy Greenberg, Director of The Children’s Institute, Recipient of the 2013 Ira Dan Kaye Community Service Award

dŚĂŶŬ ǇŽƵ͊ tĞ ĚŽ ŝƚ ǁŝƚŚ ƚŚĞ ŚĞůƉ ŽĨ ĨƌŝĞŶĚƐ ůŝŬĞ ǇŽƵ͊

Pledge Card ƶ HK$1,000

ƶ HK$2,000

YOUR DETAILS Name: __________________________________________________ Title: __________________________________________________ E-mail: __________________________________________________

ƶ HK$5,000

ƶ Other amount: HK$ ___________

Contact no.: _______________________________________________ Company: _______________________________________________

PAYMENT METHOD By crossed check payable to "The American Chamber of Commerce Charitable Foundation", or ƶ By credit card (Please choose appropriate) ƶ ƶ Master Card ƶ VISA ƶ American Express Credit card number: _____________________________________ Expiry date (mm/yy): ___________________________________ Cardholder’s name (in full): ______________________________________________________________________________________ Signature: ____________________________________________________________________________________________________ Please send a receipt to the following email / postal address*: ƶ ______________________________________________________________________________________________________________ Please return the completed card to: Ms. Ming-Lai Cheung, Charitable Foundation Secretariat, The American Chamber of Commerce in Hong Kong, 1904 Bank of America Tower, 12 Harcourt Road, Hong Kong (E-mail: mcheung@amcham.org.hk/ Tel: +852 2530 6927) *The American Chamber of Commerce Charitable Foundation is an approved charity and tax exemptions for donations may be made under section 88 of the Hong Kong Inland Revenue Ordinance.

GUIDE TO

HEALTHY LIVING 2015

Osteoporosis: the Silent Disease Most people don’t know they have the condition until it’s too late and suffer a fracture. While genetics play a role, Danica Yau, Medical Affairs Specialist at Wyeth Nutrition Hong Kong, tells us there are things we can do to prevent the painful outcome and how important it is to keep our bones healthy and strong - no matter how old we are

By Christina Choi

Photo: Thinkstock

biz.hk: How big of a problem is bone health, particularly in the Asian population? Yau: Asia will have 57 percent of the world’s population over 65 years old by 2025. With the expected population ageing also comes the concern of osteoporosis, a chronic disease that is often associated with the elderly. As defined by the World Health Organization (WHO), osteoporosis is a systemic skeletal disease characterized by low bone mineral density and an increased risk of bone fracture. Over the past 30 years, there has been a two- to threefold increase in hip fractures across many Asian countries.

In Hong Kong, bone health has actually improved during the last decade, with an increase in bone mineral density and decrease in age-adjusted fractures. However, the risk of osteoporosis is still highly prevalent. A recent study found Hong Kong women had a higher overall prevalence of osteoporosis (24.9 percent) than that in Beijing women (20.3 percent), according to the National Institutes of Health. biz.hk: Why is bone health important? Yau: Optimal bone health is important in reducing the risk of osteoporosis and any associated bone fractures. The

most common fractures are those of the spine, hip and wrist. Apart from pain, fractures may also be associated with increased risk of deformity, reduced independence, further fractures and increased mortality, where a five-week hospital stay is needed on average. biz.hk: What are the major risk factors for bone health? Yau: Osteoporosis can affect many people of both genders and all ethnicities, and its prevalence will increase with age. However, some risk factors for reduced bone health include: • Over 50 years old • Postmenopausal women

biz.hk 6 • 2015

• Family history of osteoporosis • History of broken bones or loss in height • Low in body weight • Insufficient intake of calcium and vitamin D • Inadequate amount of fruits and vegetables in daily diet • Excessive consumption of protein, sodium, caffeine and alcohol • Inactive lifestyle • Smoking biz.hk: When should people start paying more attention to bone health? Yau: Bone health is important throughout different life stages.

biz.hk 6 • 2015

During childhood and adolescence, bone mass increases as the skeleton grows in both size and density. About 90 percent of peak bone mass is acquired by the age of 18 in girls and 20 in boys. It’s suggested that the higher the peak bone mass accumulated at a young age, the more an individual can afford to lose later in life without getting a fracture. Peak bone mass in adults is normally reached at around the age of 30, and although bone mass cannot be increased after, it is still important to slow the rate of bone loss and prevent osteoporosis by maintaining positive lifestyle habits.

biz.hk: What are some tips on dietary and lifestyle habits for optimal bone health? Yau: Although up to 80 percent of bone mineral density would be genetically determined, several lifestyle factors such as avoiding smoking, limiting drinking of alcohol and caffeine, taking calcium-supplemented drinks if needed, regular physical activity and exposure to sunlight as well as consuming a healthy balanced diet can help to improve bone health. Calcium and vitamin D are the two essential nutrients well-known for their positive effects on bone health.

The recommended daily calcium intake by the Chinese Nutrition Society: Age group

Recommended nutrient intake (microgram/day)

18-49 years old

800

≥ > 50 years old

≥ 1,000

Pregnant women (pregnancy≥> four months)

≥ 1,000

Lactating women

≥ 1,000

Current evidence suggests a balanced diet should be emphasized instead of individual nutrients in the prevention of osteoporosis. In addition to foods that provide calcium and vitamin D, generally a diet rich in fish oil, fruit, vegetable and herbs will contribute to optimal bone health. biz.hk: Let’s talk about some common myths surrounding bone health. Is bone broth a good source of calcium? Yau: This is false. Calcium in pork and fish bones can’t dissolve in water, so the calcium content in bone broth is low. biz.hk: The more calcium I consume means I will have more health benefits? Yau: This is not necessarily true. There are no additional benefits to taking more calcium than your body needs. In fact, it may impose certain adverse effects such as constipation, kidney stones and interference of iron absorption. Calcium supplement pills should only be considered when you’re

not able to obtain adequate calcium through your daily diet. biz.hk: Is joint pain a sign of osteoporosis? Yau: This is also false. Osteoporosis is a silent disease in most people which is often not realized until a bone fracture occurs. However, one visible sign may be the gradual formation of a hunchback due to deformity in the spine resulting from reduced bone mineral density. biz.hk: Do you have any suggestions to workers who spend most of their time in the office sitting? Yau: Small changes to your routine will help to optimize bone health. Choosing reduced fat milk, fortified soy milk with less sugar, or a calciumsupplemented drink instead of coffee; walking outside to get lunch and some sunlight instead of ordering delivery; adding a portion of vegetables to your lunch; taking the stairs and walking that extra distance – all these things will make a difference.

Danica Yau, Medical Affairs Specialist

Danica Yau graduated from the University of Sydney with a Bachelor of Science (Honors) in Nutrition. She is an Accredited Practicing Dietitian and Nutritionist (Dietitians Association of Australia) and Accredited Dietitian (Hong Kong Dietitians Association) with interest in pediatric nutrition, obesity, diabetes and bone health.

biz.hk 6 • 2015

Time For a Checkup With high-powered jobs and chaotic lifestyles, Hong Kong workers are overly stressed and often unhealthy. In July, Matilda International Hospital will open its doors for a newly renovated health assessment center in the hopes of helping them change their routines

By Blessing Waung

t’s no great secret that Hong Kong is a high-stress environment in which to live. Whether at work or at play, many Hong Konge residents submit themselves to long hours, late nights, and generally unsustainable lifestyles. In an interview with Matilda International Hospital’s Dr. Hans Schrader, executive medical director for the hospital and a key advocate for health assessments, he said that the hospital is working with companies and individuals alike to ensure better lifestyle choices, including corrective measures affecting a large chunk of the patients they see. “In Hong Kong, you walk from your bed to your office almost,” Dr. Schrader says. Unlike in the US, Schrader postulates, where companies close for business earlier in most cities, Hong Kong is a high-stress, non-stop work and play environment. Therefore, for

patients who come to Matilda, the staff seeks to do a thorough check on not only their physical well-being, but also their emotional and mental wellbeing. “We ask them: how much stress do you have, and questions about coping,” Dr. Schrader says. “We see a lot of high achievers, so high stress comes along with the job.” According to the hospital’s research, globally and in Hong Kong, those attuned to their own health needs are willing to pay a premium for comprehensive health assessments. In July, Matilda will open its doors to a brand-new health assessment department to complement the facilities already open in the medical centers located in Central and Tsim Sha Tsui. However, there are many who ignore their body’s needs, and need key drivers in order to be compelled to visit and get a full checkup. “There are a few big drivers:

spouse, colleagues, or disasters,” Dr. Schrader says. “If the CEO of a company has a [medical] problem such as cancer, suddenly everybody comes.” Though it’s rare for health assessments to result in discovering cancer or other urgent matters, about a tenth of the clients assessed have had abnormally high cholesterol, with 22 percent still on the borderline. There are also clients at risk for hypertension, so the health assessments help minimize risk before any problems arise. “Men need hard evidence that something is wrong,” Dr. Schrader says. “You can tell women to change their lifestyle and they will probably do so. But men need something tangible. They need to see their cholesterol compared to a list [of their peers] or somebody they know.” For corporations that approach the hospital, the staff prepares overall reports summarizing the results of all

biz.hk 6 • 2015

their employees, giving tailored feedback to how the company can work to improve any negative health trends. “I think Hong Kong has a binge problem,” Dr. Schrader says. “But we don’t screen for that. Alcohol and drug use in Hong Kong is actually binging [behavior]. People are out on the weekends, they load themselves up, have a bad day and the next day they are fine.” Corporations that find major trends can make sweeping changes through their HR departments to ensure that employees are more conditioned to take care of their health, by encouraging them with measures to quit smoking, eat more healthily, and importantly, exercise regularly. “Of the 5,000 medicals we’ve done … about two out of three of our clients don’t do much about exercise,” Dr. Schrader says. “So it’s no wonder Hong Kong makes exercise prescriptions.”

biz.hk 6 • 2015

The advent of wearable technology has helped, Dr. Schrader believes, with some companies signing their employees up for global competitions involving the devices. Again, this trend plays into the competitive aspect of Hong Kong’s workforce, but he has seen patients whose weight and cholesterol levels fall after signing up for such competitions. Though the fast-paced standard of living in Hong Kong is unavoidable, Dr. Schrader believes that many medical problems are, if patients are willing to make the trip to the doctor for a scrupulous evaluation.

“We are getting better at narrowing this gap [between the average and healthy habits],” Dr. Schrader says. “But it requires a lot of data and analysis. It requires a lot of emphasis and for the doctors to all give the same message.”

THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG

FAST FACTS COMMUNITY AmCham celebrates over 45 years of promoting business and fostering greater trade ties and community service in Hong Kong

ACTIVITIES Members can access more than 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 1,700 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.

The American Chamber of Commerce in Hong Kong 1904 Bank of America Tower 12 Harcourt Road, Central, Hong Kong T: (852) 2530 6900 E: amcham@amcham.org.hk www.amcham.org.hk

BUSINESS NETWORKING

INFORMATION

VISIBILITY AND CORPORATE EXPOSURE

ADVOCACY

ACCESS

Guide to

Healthy Living 2015 Matilda International Hospital 41 Mount Kellett Road, The Peak, Hong Kong

Maternity Care and Womenâ&#x20AC;&#x2122;s Health

Each year the hospital delivers around 1,000 babies, and provides attentive care to both mother and child, as well as advice to help new parents embark on a new stage in life.

Treatment for Musculoskeletal Problems

Back pain and neck pain are commonly seen in office workers. Our employee wellness programmes can incorporate assessment to help detect musculoskeletal problems early as well as provide relief and solutions for existing conditions.

Company Activities/History

Matilda International Hospital (MIH) has been providing compassionate health care since 1907. MIH also operates the Matilda Medical Centre (MMC) at two locations - Central and Tsim Sha Tsui.

Centres of Excellence

MIH and MMC provide integrated outpatient and inpatient services and wellness programmes, while the hospital offers further obstetrics and gynaecology care, and advanced surgical treatments, particularly orthopaedics, spinal care, ear nose and throat, and general surgery.

Tailor Made Corporate Wellness Plans Corporate wellness is a key service. A dedicated Corporate Development team works closely with many international companies to tailor make employee wellness programmes, and through these, help companies reap rewards in the form of lower health care costs, improved productivity and staff retention.

Service / Product:

Healthcare and hospital services for corporate and individual clients provided by Matilda International Hospital and its Matilda Medical Centres

Tel:

(852) 2849 0111 (general enquiry) (852) 2849 0389 (corporate enquiry)

www.matilda.org 40

biz.hk 6 â&#x20AC;˘ 2015

Mead Johnson Nutrition (Hong Kong) Limited Rm 03-08, 30/F, ACE Tower, Windsor House, 311 Gloucester Road, Causeway Bay, HK

Nourish Children for the Best Start in Life Mead Johnson Nutrition was one of the first companies in the United States to focus scientific research on nutrition for infants and children. For more than a century, it has led the way in developing safe, high-quality and innovative nutrition products, guided by our mission to nourish the world’s children for the best start in life. Mead Johnson Nutrition was built on a foundation of science-based nutrition. We continuously push the boundaries of nutritional knowledge with consistent, strong investments in scientific exploration. Globally, we operate four Mead Johnson Pediatric Nutrition Institutes in the United States, Singapore, China and Mexico. These centers connect Mead Johnson’s researchers to scientists and healthcare professionals around the world, putting us at the forefront of pediatric nutrition science. Mead Johnson was listed on the New York Stock Exchange in 2009 and is part of the Standard & Poor’s 500 Index. “We understand the significance of trust placed in us by parents, and we offer them ongoing reassurance about the uncompromising quality standards to which we hold for each and every product. We are very honored that our products have been the best-selling infant formula brand in Hong Kong for the past 13 years*.” – Ms. Ruthia Wong, Vice President and General Manager of Hong Kong

Fast facts about Mead Johnson

• Founded in 1905 by Edward Mead Johnson • Employs approximately 8,000 employees globally • Sells more than 70 products in over 50 markets • Operates 4 Mead Johnson Pediatric Nutrition Institutes worldwide

“Feeding Hope” in Hong Kong Mead Johnson Nutrition (Hong Kong) Limited has been supporting local families for more than 40 years. In addition to providing high-quality pediatric nutrition products, we offer regular parenting advice and healthcare information to consumers through a wide variety of channels, including the Mead Johnson Mothers’ Club, service hotline, as well as social media platforms such as Facebook and WeChat. To serve the local community, Mead Johnson has been supporting the “Feeding Hope” program initiated by The Boys' and Girls' Clubs Association of Hong Kong with the support of Partnership Fund of the Disadvantaged since 2009 to improve health and nutrition for children in low-income families . With family-centric educational and recreational activities in schools and in local districts, the program recorded a total attendance of nearly 80,000 to date. * Nielsen Infant Milk Formula Market Track Service data shows that Mead Johnson ranked first in Sales Volume and Sales Value within the Infant Milk Formula market from May 2002 to April 2015 in total Hong Kong supermarkets and drug stores. (Copyright© 2015, The Nielsen Company).

Service / Product:

Nutrition Product About the service / Mead Johnson’s portfolio of brands specialized pediatric represents Product: nutrition products parents have trusted for more than a century to encourage healthy growth, support brain development and address common feeding issues. Our products include milk formula for routine feeding, to those for rare metabolic disorders that require specialized treatment. Ms. Ruthia Wong, Vice President and Key Personnel: General Manager of Hong Kong (852) 2510 6321 Tel: Fax: Contact Us:

(852) 2969 5528 www.meadjohnson.com.hk/contact-us

www.meadjohnson.com.hk biz.hk 6 • 2015

Guide to

Healthy Living 2015 Wyeth Nutrition Hong Kong 12/F Lincoln House, Taikoo Place, 979 King’s Road, Island East, Hong Kong

Wyeth Nutrition is part of Nestle S.A. We develop premium-quality nutritional products scientifically-designed to meet the needs of people in different life stages. As pioneers in infant nutritional science, our mission is to provide the best nutritional support for future healthy outcomes. In the past century, Wyeth Nutrition has leveraged clinical rigor, scientific research, world class manufacturing and product safety standards to drive scientifically-sound solutions that offer parents confidence, help nourish children and support their healthy futures.

Professionalism as Principle At Wyeth Nutrition, quality and professional integrity are our highest priorities. Our commitment to quality and integrity has always extended beyond formulation to manufacturing. Milk formulas are among the most stringently regulated consumer products in the world. We manufacture our products with reference to food quality and safety standards set by the Codex Alimentarius Commission, a body run jointly by the United Nation's Food and Agriculture Organization and World Health Organization, and we comply with all regulations in the countries where we operate. We bring to the manufacture of nutrition products the same diligence and attention to detail used in pharmaceutical production, striving for total consumer confidence in our products. With our persistence of state-of-the-art facilities and the strictest standards of quality and safety, all formula products of Wyeth Nutrition Hong Kong are manufactured by its plants that achieve ISO and HACCP certifications in recognition of their manufacturing excellence. Service / Product:

Nutrition Product

About the service /

Wyeth Nutrition Hong Kong offers a full line of safe, quality and scientifically-designed nutrition products, including infant formula, follow-on formula, growing-up formula, prenatal and lactating supplements, and adult supplement.

Product:

Key Personnel:

Mr Clarence Chung, General Manager

Tel:

(852) 2599 8888

Fax:

(852) 2599 8999

Email:

enquiryhk@wyethnutrition.com

www.wyethnutrition.com.hk 42

Nourishing Pioneers – For 100 Years and Beyond Starting with the first infant formula brand, Wyeth Nutrition has created many firsts that have advanced the science of children’s nutrition, such as the first formula to carry an expiration date to ensure freshness, the first infant formula enriched with alpha-lactalbumin, a high-quality whey protein, etc. We share your vision of success and will continue to develop the most innovative nutritional products of today and tomorrow. In addition to maintaining our leadership, we are also committed to create shared value for our society by driving and supporting various corporate social responsibility programs with our different stakeholders.

* IMPORTANT NOTICE: The World Health Organization recommends exclusive breastfeeding during the first 6 months of life and continued breastfeeding for as long as possible. Products shown are formula milk for young children aged 1 to 3 and above, or nutritional supplement for women who are planning to become pregnant, who are pregnant, or who are breastfeeding, and are not breast milk substitutes. Before taking any maternal supplement, please consult your healthcare professional to determine which product is appropriate for you. For picky eating children, should provide them with normal diet and continue to correct their picky eating behavior. If there is any question, please consult doctors or dietitians for details.

WYE-PM-113-MAY-15

Science as Foundation

biz.hk 6 • 2015

Hong Kong Adventist Hospital 40 Stubbs Road, Hong Kong SAR China

Company Activities/History Hong Kong Adventist Hospital (HKAH) offers a comprehensive range of services in a safe and comfortable environment. The Hospital operates first-class equipment and state-of-the-art facilities. Our team of highly skilled medical professionals is committed to ensuring optimal treatment, promoting healthy lifestyles, and restoring patients back to health in body, mind and spirit. The Hospital has accreditations from international associations including: • Australian Council on Health Care Standards (ACHS) • Health Promoting Hospital (HPH), the global network initiated by the World Health Organization • Hong Kong Laboratory Accreditation Scheme (HOKLAS) • ISO 22000 Certification for Food Safety Management Systems Highlights of Our Services • 24-hour urgent care services and Out-patient clinic • The Heart Center, Cardiac Catheterization & Interventional Center, and Arrhythmia Center / Electrophysiology Laboratory provide world class cardiology services • Oncology Center is the only facility in Hong Kong equipped with CyberKnife G4 and TomoTherapy • Operating Rooms, Robotic and MIS Center is equipped with the da Vinci robotic surgical system • Minimally Invasive Spine Surgery Center (MISS) offers a full range of spine care, including invasive and non-invasive treatments • Adventist Medical Center at Causeway Bay offers one-stop medical services in general medicine and specialist areas to extend our community reach

biz.hk 6 • 2015

Hong Kong Adventist Hospital 40 Stubbs Road, Hong Kong, SAR China Tel :(852) 3651 8888 Fax :(852) 3651 8800 Email :hkahinfo@hkah.org.hk

www.hkah.org.hk

Adventist Medical Center Unit 1606-10, 16/F., Hang Lung Centre, 2-20 Paterson Street, Causeway Bay, Hong Kong Tel :(852) 2782 2202 Fax :(852) 2782 3022

www.adventistmedical.hk

MARK YOUR CALENDAR Jul Update on the Mutual Recognition of Funds between

the Mainland and Hong Kong

Christina Choi, Senior Director, Investment Products, Securities and Futures Commission The Mutual Recognition of Funds initiative is a major breakthrough in the opening up of the Mainland’s funds market to offshore funds. It will also open up a new frontier for the Mainland and Hong Kong asset management industries, and make available a wider selection of fund products to investors in both markets. Ms Christina Choi will explain and share her views on the impact of the initiative on the financial industry in Hong Kong, the Mainland and the rest of Asia. Christina Choi is the Senior Director of Investment Products Division of the Securities and Futures Commission of Hong Kong. Her role is to lead the Investment Products Team within the division having responsibility for supervising the authorisation and supervision of collective investment schemes and all other investment products (including unit trusts, mutual funds, ETFs, REITs, QFII and RQFII funds etc) authorised by the Commission under section 104 of the Securities and Futures Ordinance.

Jul China’s One Belt One Road Initiative and

its Evolving Growth Strategy

Dr. Geng XIAO, Senior Fellow and Vice President for China, Fung Global Institute Director of IFF Institute, International Finance Forum Professor of Practice in Finance and Public Policy, The University of Hong Kong At this year’s Boao Forum for Asia, President Xi Jinping articulated China’s One Belt One Road (OROB) initiative. The dramatic policy shifts happened when the China’s growth has slowed down significantly, its domestic reforms has entered the deep-water territories, and its efforts in playing a larger role at the international stage have intensified. China and the Chinese economy seems at a cross road with ever increasing volatility and uncertainty. In this talk, Professor XIAO Geng will help us to put these complex economic and policy dynamics in the context of China’s evolving growth strategy and explain and debate on the prospects of China’s sustainable growth and its implications for regional and global peace and prosperity. Xiao Geng has done extensive empirical and policy research on the Chinese economy, especially in the areas of macroeconomics, exchange rate, finance, SOE reforms, productivity, urbanization, US-China relations, and institutional economics.

Jul The Future of Work

Matthew Smith, Global Head of Market Development – Internet of Things, Cisco Jonathan Lo, Director and Regional Practice Leader - HR Service Delivery, Towers Watson Matthew Smith and Jonathan Lo will share with you insights on: • Digitization of business • Risks to business failure by missing the digitization transition • How to reorganize for speed • Rethinking future of work - get ready for what’s next… • Future essential skills required to compete? • New perspective: the future of HR • Dynamic and Evolving “Agile HR” • What does HR need to get right? • Key attributes emerging in the latest HR operating models Matthew Smith leads a global team, driving the creation of disruptive market opportunities to develop the global market for Internet of Things. Matthew’s charter is to work with large Multi-National and Government customers to develop robust large scale opportunities that enable digitised business outcomes and positive investment returns for all parties. Jonathan Lo leads the HR Service Delivery Practice in Asia Pacific. He has over 12 years of APAC Management Consulting experience, along with 5 additional years of HR business partner experience in Financial Services, and has worked extensively in Hong Kong, China, Japan, SEA and Australia.

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

Tel: (852) 2530 6900

Fax: (852) 2810 1289

Venue: Grand Hyatt Hong Kong Pool House, 11/F 1 Harbour Road, Wan Chai, Hong Kong Time: 12:00 – 02:00pm (Lunch included) Fee(s): Member: HK$630 Non-member: HK$750 Corporate table: HK$8,300

Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 12:00 – 01:45am (Sandwiches and beverages included) Fee(s): Member: HK$380 Non-member: HK$450

Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 08:00 – 09:30am (Light breakfast included) Fee(s): Member: HK$180 Non-member: HK$300

Email: byau@amcham.org.hk

2015 Jul 01

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

CMY

Opening Keynote Christopher Johnson

Senior Adviser and Freeman Chair in China Studies The Center for Strategic and International Studies (CSIS)

Luncheon Keynote To be announced soon

Panel I (Plenary): New Strategies for the New Normal Victor Fung John Rice Honson To Tara Joseph (Moderator)

Honorary Chairman, Li & Fung Group Vice Chairman, General Electric Chairman, KPMG China Chief Correspondent, Reuters TV, Asia

Panel II (Concurrent): Expanding Roles for Foreign Service Industries in China Karen Reddington

President of Asia Pacific, FedEx

Panel III (Concurrent): Business Strategies for the “One Belt, One Road” Initiative

President of Asia Pacific, AECOM President of Asia Pacific, Rockwell Automation

Sean Chiao Tom O’Reilly

Panel IV (Concurrent): Innovative Business Models in the Fast-changing Chinese Markets KK Chua Tom Doctoroff Steve Monaghan

Sponsors:

President of Asia Pacific, Mary Kay Asia Service Ltd CEO of Asia Pacific, JWT Regional Director, Head of Edge (Group Innovation), AIA

Sept 1, 2015 8:00 am - 2:30 pm Four Seasons Hotel Hong Kong, Grand Ballroom

http://www.amcham.org.hk/China-Conference

Connect ¿ Collaborate ¿ Catalyse

APAC Innovation Summit 2015 Series

24-25 June 2015

Grand Hall, Science Park www.apacinnosummit.net

FEATURED SPEAKERS

Gordon Cheng

Dario Floreano

David Hanson

Homayoon Kazerooni

Technische Universität München

École Polytechnique Fédérale de Lausanne

Hanson Robotics

University of California, Berkeley

Kay Matzner

Marc Papageorge

Robert Riener

Norman Tien

Fraunhofer Gesellschaft (IFF)

Spec Sensors

Eidgenössische Technische Hochschule Zürich

The University of Hong Kong

A perfect platform for you to be inspired and to network with industry partners for collaboration opportunities!

Members of The American Chamber of Commerce in Hong Kong are entitled to a

50% discount. Note: Information is subject to change without prior notice.