AmChamHK Jul 2017 by The American Chamber of Commerce in Hong Kong

Magazine of The American Chamber of Commerce in Hong Kong

July 2017

Washington Doorknock 2017:

International Trade amid High Unpredictability PRD: A Bay Area of Economic Strength Financial Complexity under One Country, Two Systems

COVER SPONSOR

PUTTING YOUR CHILD 1

ACHIEVING MORE THAN THEY BELIEVE THEY CAN

CAMPUS OPENING SEPTEMBER 2017!

Individualized Learning Plans from Age 5

Secondary and readies them for their future careers as ƐĐŝĞŶƟƐƚƐ͕ ĞŶŐŝŶĞĞƌƐ ĂŶĚ ďƵƐŝŶĞƐƐ ůĞĂĚĞƌƐ͘

Stamford’s Outstanding Results Our students at our Singapore campus consistently ĂĐŚŝĞǀĞ ĂďŽǀĞ ƚŚĞ h͘^͘ ďĞŶĐŚŵĂƌŬ ŝŶ ƚŚĞŝƌ D WΠ assessments. In Elementary, our students’ scores in Reading ĂŶĚ DĂƚŚ ĂƌĞ ŐƌĞĂƚĞƌ ƚŚĂŶ ƚŚĞ ďĞŶĐŚŵĂƌŬ ďǇ ŽŶĞ ǇĞĂƌ on average. Progressing to Secondary, Stamford students ƉĞƌĨŽƌŵ ĂďŽǀĞ ƚŚĞ ďĞŶĐŚŵĂƌŬ ŝŶ DĂƚŚ ĂŶĚ ZĞĂĚŝŶŐ ďǇ ƚǁŽ or more years on average. In fact, the average Stamford 'ƌĂĚĞ ϲ ƐƚƵĚĞŶƚ ƉĞƌĨŽƌŵƐ ĂďŽǀĞ ƚŚĞ ďĞŶĐŚŵĂƌŬ ĨŽƌ 'ƌĂĚĞ Every student at Stamford undergoes standardized

10 students in Reading, four grade levels above the norm.

Measures of Academic Progress® (MAP®) assessments

These outstanding MAP® results combined with the

in Reading, Math and Science twice a year, allowing

/ŶƚĞƌŶĂƟŽŶĂů ĂĐĐĂůĂƵƌĞĂƚĞ ŝƉůŽŵĂ WƌŽŐƌĂŵ ŚĂǀĞ ůĞĚ

us to measure their academic growth throughout

90% of our graduates from Stamford’s Singapore campus to

the school year and from year to year. We deliver

acceptance to their 1st choice university.

individualized learning plans based on each student’s ŝŶƐƚƌƵĐƟŽŶĂů ůĞǀĞů͕ ĞŶƐƵƌŝŶŐ ĞǀĞƌǇ ĐŚŝůĚ ŝƐ ƐƚƌĞƚĐŚĞĚ ĂŶĚ challenged appropriately.

Preparing Students for the Future Stamford’s unique problem-based STEMinn (Science, dĞĐŚŶŽůŽŐǇ͕ ŶŐŝŶĞĞƌŝŶŐ͕ DĂƚŚ Θ /ŶŶŽǀĂƟŽŶͿ WƌŽŐƌĂŵ challenges students from age 5 in these disciplines ƚŚƌŽƵŐŚ ĐƌŝƟĐĂů ƚŚŝŶŬŝŶŐ ĂŶĚ ƌĞĂůͲǁŽƌůĚ ĂƉƉůŝĐĂƟŽŶ͘ >ĂǇŝŶŐ ƐƚƌŽŶŐ ĨŽƵŶĚĂƟŽŶƐ ŝŶ ƚŚĞƐĞ ĂƌĞĂƐ ƉƌĞƉĂƌĞƐ ŽƵƌ Elementary students for success in the highly challenging WŚǇƐŝĐƐ͕ ŝŽůŽŐǇ ĂŶĚ ŚĞŵŝƐƚƌǇ ĐŽƵƌƐĞƐ ŽīĞƌĞĚ ŝŶ

Discover more at

Open House

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Visit www.sais.edu.hk www.sais.edu.hk | +852 2500 8688 Ύ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ ^ĐŚŽŽů ,ŽŶŐ <ŽŶŐ ǁŝůů ĂƉƉůǇ ƚŽ ƚŚĞ /ŶƚĞƌŶĂƟŽŶĂů ĂĐĐĂůĂƵƌĞĂƚĞ ĨŽƌ ƉƌŽŐƌĂŵ ĐĂŶĚŝĚĂĐǇ ŝŶ ĞĐĞŵďĞƌ ϮϬϭϳ͘

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AmChamHK Publisher Tara Joseph Editor-in-Chief Kenny Lau

Managing Editor Jennifer Khoo Advertising Sales Manager Tom Chan

AmChamHK is a 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.

COVER STORY

AmCham travels to Washington, D.C. in an advocacy trip to meet with U.S. oﬃcials on Capitol Hill

Zhaoqing

Guangzhou

Huizhou Foshan Dongguan

Shenzhen Zhongshan Jiangmen

Zhuhai

Hong Kong Macau

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 ©The American Chamber of Commerce in Hong Kong, 2017 Library of Congress: LC 98-645652 Single copy price HK$50 Annual subscription HK$600/US$90

CHINA BUSINESS

How a cluster of eleven cities in southern China could become an economic powerhouse

INFRASTRUCTURE

Hong Kong needs closer integration with China and expedited development to secure future growth

INNOVATION & TECHNOLOGY

Can Hong Kong support the global development “ﬁntech” and become a leading hub? AmChamHK 7 • 2017

July 2017 Vol. 49 No. 7

AMCHAM NEWS AND VIEWS

04 President’s Memo 07 New Business Contacts

24 62

Member Spotlight

Mark Your Calendar

Chamber Networks

COVER STORY

INNOVATION & TECHNOLOGY

Trade 08 International amid High Unpredictability

34 From ATMs to

GOV’T RELATIONS & ADVOCACY

FINANCE & ECONOMICS

Tax Policy Undermines 18 U.S. Competitiveness

Disparity of 38 AFinancial Complexity

CHAMBER NEWS

ASEAN FOCUS

Minutes With…Michael Yu 22 Five AmCham’s China Aﬀairs explains his role in

Thinking 42 Reformed Deep structural changes have added gloss to the

AmCham travels to Washington, D.C. in an advocacy trip to meet with U.S. oﬃcials on Capitol Hill. Topics for discussion are anything but routine this year

U.S. corporate and income tax based on citizenship makes corporations and citizens overseas far less competitive than their counterparts

implementing the Chamber’s China agenda

CHINA BUSINESS Bay Area of Economic Strength 26 ARenowned China economist Ben Simpfendorfer

describes how a cluster of eleven cities in southern China could become an economic powerhouse

INFRASTRUCTURE & REAL ESTATE

30 Ahead of the Curve

Hong Kong must seek closer integration with the internationalization of China and expedite the development of infrastructure to secure future growth

AmChamHK 7 • 2017

Integrated Money Manager

Can Hong Kong become a leading “ﬁntech” hub? Henri Arslanian of PwC explains why the city is well positioned to support such development

China is one of the most complex accounting jurisdictions while Hong Kong remains one of the easiest, according to a new ﬁnancial index

performance of the Indonesian economy. Next on the agenda are job creation and easing inequality

CHARITABLE FOUNDATION Leaders of the Year 46 Young AmCham honors a group of local secondary

school and MBA students for their exceptional academic achievement, leadership and community service

Support of Local Charities 56 InAmCham provides ﬁve Hong Kong-based charities with special grants in support of philanthropic causes for the underprivileged and needy

BOARD OF GOVERNORS CHAIRMAN

Walter Dias

VICE CHAIRMAN

Jack Lange

TREASURER

Owen Belman

GOVERNORS

Donald Austin Evan Auyang Sanjeev Chatrath Elaine Cheung Sean Chiao Diana David Sean Ferguson Mark Green Robert Grieves Matthew Hosford Clara Ingen-Housz

Michael Klibaner Simon Ogus Seth Peterson Catherine Simmons Anna-Marie Slot Eric Szweda Rick Truscott Jennifer Van Dale Jenny Wong Patrick Wu Lennard Yong

EX-OFFICIO GOVERNOR

Peter Levesque

PRESIDENT

Tara Joseph

CHAMBER COMMITTEES Apparel & Footwear Ball China Business Communications & Marketing Corporate Social Responsibility Education Energy Entrepreneurs/SME Environment Financial Services Food & Beverage Hospitality & Tourism Human Resources Infrastructure & Construction Innovation & Technology Insurance & Healthcare Intellectual Property Law Pharmaceutical Real Estate SelectUSA Senior HR Forum Taxation Trade & Investment Transportation & Logistics Women of Inﬂuence Young Professionals

Gareth Brooks Sally Peng Elaine Cheung Rick Truscott Devin Ehrig Lili Zheng Oliver Rust Pat-Nie Woo Virginia Wilson Rick Truscott Cynthia Chow Jim Taylor Steven Chan Veronica Sze Mark Kemper Peter Liu Ian Chung Julie Brandt Leonie Valentine Rebecca Harrison Hanif Kanji Gabriela Kennedy Chiann Bao Jessica Bartlett Caroline Johnson Edward Farrelly Robert Johnston Terrance Philips Lili Zheng MaryAnn Vale Ivan Strunin Barrett Bingley Gavin Dow Jennifer Parks Anne O'Riordan David Boman Jamie Ford

PRESIDENT'S MEMO

Dear fellow members and friends, In our annual Washington “Doorknock” meetings this year, we spoke candidly about our view that the U.S. ought to remain actively engaged in Asia, especially as countries across the region fret over how the new administration plans to negotiate trade deals after axing the Trans-Pacific Partnership (TPP). We see healthy U.S. engagement as crucial to the health of both U.S. businesses and our Asian partners in the region, with the portion of global trade in this region being clearly on the upswing. New initiatives such as the soon-to-be signed trade deal between Hong Kong and ASEAN could lead to an even greater level of trade, and there are potential infrastructure projects forming with China’s “Belt and Road” initiative. But we also carried another message on our visit to Capitol Hill: The importance of Hong Kong as a strategic hub for U.S. companies in Asia, and an explanation of the reasons why companies thrive here. Even as companies ponder potential political risk twenty years into PRC rule, the unique International framework of “One Country, Two Systems” provides many advantages. Hong Kong operates under a well-established system of law; it has one of the highest levels of freedom of the press in Asia, and a developed financial architecture. Hong Kong is also a gateway in and out of China. Nearly half of all foreign direct investment (FDI) flowing into China passes through this city. Last but not least, Hong Kong has a track record of excellent cooperation with the United States and, despite its small population, is the ninth largest trading partner of the U.S. in terms of exports of American products. Our view is that we should grant Hong Kong SAR passport holders visa waiver status, the same as the U.S. does for Taiwan and South Korea. The Doorknock reminded me that in Washington, a city based around politics and security, the American Chamber of Commerce should serve as a constant voice of the business community in Asia. The American businesses in Asia create both wealth and opportunity which will lead to job growth in corporate headquarters back home. Just as important, many members of our Chamber have lived and worked in Asia for decades. We have both influence and perspective from working on the ground. Our frequent exchange of dialogue with officials and experts is especially crucial as new trade relationships and institutions develop among other countries with the U.S. opting out. These initiatives include the continued negotiation of TPP by 11 remaining countries and the growth of Asian Infrastructure Investment Bank (AIIB).

Regards, Tara Joseph AmCham President

AmChamHK 7 • 2017

CMY

Nominate a

Woman

of Influence CALL FOR ENTRIES: www.amcham.org.hk/woi DEADLINE: September 18, 2017 (September 4, 2017 for early submission assistance) The American Chamber of Commerce in Hong Kong is inviting nominations for the Women of Influence Awards. Now in the fourteenth year, the awards are an exciting and important recognition of outstanding women and their supporters in Hong Kong. The awards will be presented at the Women of Influence Conference and Awards 2017 on November 10, 2017 at the Four Seasons Hotel Hong Kong. This is your chance to nominate outstanding candidates for the following awards:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Professional of the Year Young Achiever of the Year Entrepreneur of the Year Non-profit Leader of the Year Master of The Arts Leading Woman on Boards Champion for the Advancement of Women Best Company for Women Lifetime Achievement Sponsorship: Ms Villy Leung | vleung@amcham.org.hk | (852) 2530 6922

TITLE SPONSOR

SILVER SPONSORS

GOLD SPONSORS

BRONZE SPONSORS

ORGANIZER

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 1,400 members from about 700 companies and organizations. ISBN 978-962-7422-68-6

LC 98-645651 NON-MEMBER PRICE Local Delivery HK$1500 Overseas Delivery 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

View our other members at: www.amcham.org.hk/memberlist

The following people are new AmCham members: AAC Technologies

PPG Coatings (Hong Kong) Co. Ltd. PricewaterhouseCoopers Ltd. SCAD Hong Kong Standard Motor Products Inc. Syracuse University Hong Kong The Capital Company Hong Kong Ltd. The Murray, Hong Kong, A Niccolo Hotel TransPerfect United Technologies Corporation

Kelvin Pan Jack Duan David Plekenpol Eneko Goya Chester Choy Allan Wilkin Tina Lee Stephanie Villemagne Karrie Dietz Ann Rutledge Jeffrey Crump Vincent Tang Jimmy Shum Geoffrey Siebengartner Patricia Openshaw Scott Jalowayski Jackson Huang Terk Ming Kwong John Bruce David Udell Carina Chorengel Thomas Smith Stephanie Hallford Winston Kiang Iris Sung Cliff Lam Jack Renner Gareth McAllister Jasmine Liu Ivan Liang Michael Brugger Raha Nasseri Jaime Tapias Hap Acee Aleksandra Thurman Jessica Papadopoulos Maxine Howe Leah Paclibar King-Tao Yiu

Vistra Westwood Carvery

Betul Baykal Shaik Gloria Chih

Advanced Genomic Solutions (AGS) Ltd. Artlink Design Associates Ltd. Buzzacott Expatriate Tax Services Ltd. Chinese University of Hong Kong, The Cognita Credit Spectrum Corp Cyber Security Training Company Ltd. EPICOR Software (North Asia) Ltd. EY FedEx Express Gibson, Dunn & Crutcher Goldman Sachs (Asia) LLC Hill & Associates Ltd. Hyatt International - Asia Paciﬁc Ltd.

Intel Semiconductor (US) Limited

Kroll Associates (Asia) Ltd. Lord Asia International Limited Paypal Pte Ltd.

AmChamHK 7 • 2017

Vice President, Advanced Technology & IT Chief Operating Officer Chief Strategy Officer Business Development Director- APAC Managing Director Director Director, Career Management Center Associate Dean, Graduate Programs and Director, MBA Programs Head of School CEO Managing Director Regional Vice President, Asia Senior Manager, Wealth & Asset Management Vice President, International Affairs Partner Partner Executive Director Office of Government Affairs Managing Director Group President Senior VP, Brands & Marketing Senior Vice President- Operations Senior Director Group Counsel Managing Counsel Compliance GAR Associate Managing Director Senior Director President, APAC Compliance Director Director, Small and Medium Business, Hong Kong Chief Financial Officer, Asia Pacific Senior Manager- Advisory Director of Collaborative Learning Center Vice President / General Manager Asian Operations Director Founding Partner Director of Sales & Marketing Account Executive Executive General Manager, Fire Safety Division HK & Climate, Controls & Security (Macau) Business Development Manager Business Manager

COVER STORY

International Trade amid High Unpredictability A team of business executives and AmCham staﬀ travel to Washington, D.C. for the annual “Doorknock” advocacy trip to meet with U.S. oﬃcials on Capitol Hill. Despite years of engagement with policymakers, topics for discussion are anything but routine this year

By Tara Joseph

AmChamHK 7 • 2017

Photo: Thickstock

AmChamHK 7 â&#x20AC;¢ 2017

olicy advocates in Washington are feeling the impact of a new and unconventional administration. Our group of eight senior executives representing the key business sectors of finance, law, transport, logistics and apparel in Hong Kong was recently in the U.S. capital city for AmCham’s annual “Doorknock” advocacy trip. The mission was to gauge how policies toward Asia are shaping up, engage U.S. policymakers on behalf of AmCham members as well as the business community of Hong Kong, and voice our views for urgent engagement on trade policy in Asia after the demise of the Trans-Pacific Partnership (TPP), in more than 30 separate meetings within three days. The Doorknock also coincided with the lead-up to Hong Kong’s 20th anniversary as a Special Administrative Region of China. Delegates discussed Hong Kong’s vital strategic role as a commercial hub for U.S. businesses, emphasizing on the understanding of what doing business in Hong Kong under the “One Country, Two Systems” means for foreign commercial entities. Nearly 20 percent of all foreign companies with regional headquarters in Hong Kong are American, thanks to Hong Kong’s internationally respected judicial system and established financial market. In our meetings, many U.S. legislators and policy experts were keen to learn about the challenges facing Hong Kong in striving for democratic freedom, especially following a few high-profile recent events.

AmCham also held a symposium at the Center for Strategic and International Studies (CSIS) along with the Hong Kong Economic and Trade Oﬃce to raise awareness of where Hong Kong is headed and the challenges it may face. United States Consul General for Hong Kong and Macau Kurt Tong delivered a keynote speech in which he noted the risk of Hong Kong allowing itself to feel powerless. Hong Kong is the ninth largest trading partner of the United States in terms of total U.S. export value for goods. It is one of the few territories where the U.S. operates a signiﬁcant trade surplus, with imports of American products to Hong Kong, ranging from Nebraskan beef and Californian wines to products of advanced technology.

AmChamHK 7 • 2017

2017 Washington Doorknock delegates (from left): Walter Dias, Managing Director (Greater China & Korea) at United Airlines and AmCham Chairman; Mark Green, Executive Vice President (Global Supply Chain) at PVH and AmCham Governor; Steven Chan, Managing Director & Regional Head of Regulatory, Industry and Government Aﬀairs (Asia Paciﬁc) at State Street Bank & Trust Co and AmCham Financial Services Committee Chair; Tara Joseph, AmCham President; Jack Lange, Partner at Paul Weiss and AmCham Vice Chairman; Ivan Strunin, Managing Director (US Tax Services) at Deloitte Touche Tohmatsu and AmCham Taxation Committee Chair; Joseph McGowan, Senior Vice President (Global Supply Chain) at PVH; Peter Levesque, Group Managing Director & CEO at Modern Terminals and former AmCham Chairman (2014 & 2015)

The consensus in Washington that the Trump administration is geared towards bilateral trade negotiations rather than multilateral agreements is a major concern because of the uncertain timeframe such agreements would take to complete. If a vacuum, or partial vacuum is created, the U.S. could lose both market share and inﬂuence. Overall, our dialogue with U.S. senators, congressmen and experts on foreign aﬀairs has highlighted that the administration is attempting a shift in trade policies based on the promise of creating three million jobs in the domestic market and linking economic policy to issues of national security.

Importantly, our delegation delivered our advocacy message across Capitol Hill, asking Congress to support a visa waiver program for Hong Kong SAR passport holders visiting the United States. The measure could smooth the way for over 100,000 Hong Kong visitors a year, further increasing collaboration and exchange between the United States and Hong Kong on cultural and business ties. Engagement in Asia This year, our delegation to Washington had a particularly timely mission – it was to articulate the importance of U.S. engagement across Asia, particularly on international trade following the demise of TPP, a shifting U.S. policy which prioritizes domestic aﬀairs over global engagement, and budget cuts in the State Department in relation to this region.

AmChamHK 7 • 2017

AmCham supports a proactive response to new regional initiatives such as infrastructure development under China’s “Belt & Road” and the development of the Hong Kong-Guangdong-Macau Greater Bay Area. But it is equally important to maintain an active voice in supporting increased trade and investment, government engagement, and the export of U.S. commercial expertise and standards. When American companies are heavily engaged across the Asia Paciﬁc region which today accounts for 60 percent of the global economy, we simply can’t aﬀord to be complacent, especially at a time when unpredictability prevails. The good news is that there is a growing appreciation of the importance of Asia in global commerce, and our Chamber will play a critical role for the establishment of the highest standards in regional and global trade practices.

Washington Doorknock 2017

A highlight of meetings A summary of discussions with U.S. government oﬃcials, congressional leaders and think tanks on various issues including international trade and government policy on Asian economies

By Michelle Lam and Clara Ren

James Williams, second from left, Senior Advisor on Finance to Senator Orrin Hatch (R-UT)

Matthew Cenzer, second from right, Advisor on Foreign Policy to Senator Edward Markey (D-MA)

Senator Orrin Hatch (R-UT)

Senate Committee on Foreign Relations

Key personnel: James Williams, Senior Advisor Themes: U.S. taxation, “One Country, Two Systems” Emphasis: To increase U.S. competitiveness overseas through residency-based taxation

Key personnel: Matthew Cenzer, Advisor to Senator Edward Markey Themes: Global trade, U.S. withdrawal from TPP Emphasis: To formulate a plan to establish American economic leadership in Asia

AmChamHK 7 • 2017

Angela Ellard, far right, Ways and Means Chief Trade Counsel (Majority Staﬀ), U.S. House of Representatives

Rick Helfenbein, third from left, and Steve Lamar, second from right, of the American Apparel & Footwear Association

Matthew Goodman, left, Senior Advisor on Asian Economics at Center for Strategic and International Studies, and Kurt Tong, U.S. Consul General for Hong Kong and Macau

A panel discussion moderated by Scott Kennedy with AmCham Chairman Walter Dias, former USCG James Keith, HKETO Commissioner Clement Leung and Founding Principal of CreditSpectrum Corporation Ann Rutledge

Center for Strategic and International Studies

Key personnel: USCG Kurt Tong, CSIS Chair Matthew Goodman, HKETO Commissioner Clement Leung, former USCG James Keith, Ann Rutledge of CreditSpectrum Corporation Themes: Hong Kong’s core values, economic freedom and business opportunities Emphasis: To maintain Hong Kong’s strategic position as an international business hub

AmChamHK 7 • 2017

Elyse Anderson, far back, and Paul Protic, left, of the Congressional-Executive Commission on China (CECC)

Shane Warren, fourth from right, International Trade Counsel, U.S. Senate Committee on Finance

Senate Committee on Finance

Key personnel: Shane Warren, International Trade Counsel Themes: U.S. engagement with Asia, TPP Emphasis: To kickstart U.S. renegotiation on trade with Asian economies

AmChamHK 7 â&#x20AC;˘ 2017

Israel Hernandez, second from left, Deputy Chief of Staﬀ, International Trade Administration, U.S. Department of Commerce

International Trade Administration

Key personnel: Israel Hernandez, Deputy Chief of Staﬀ Themes: International trade, bilateral agreements Emphasis: To maintain U.S. engagement in trade negotiations despite withdrawal from TPP

Katherine Tai, second from left, Ways and Means Trade Counsel (Democratic Staﬀ), U.S. House of Representatives

Daniel Street, center, of the International Finance Corporation

Edward Alden, center, Senior Fellow on Economic Competitiveness, Council of Foreign Relations

Matt Matthews, second from right, APEC Ambassador

Council of Foreign Relations

Key personnel: APEC Ambassador Matt Matthews, Consular Aﬀairs Analyst Alan Smith Themes: Free trade, anti-dumping, tariﬀs Emphasis: To use a revised NAFTA as a template for renegotiation with TPP countries

Key personnel: Edward Alden, Senior Fellow on Economic Competitiveness Themes: Future of trade, U.S. Visa Waiver Program Emphasis: To move forward on U.S. trade with Asia without TPP

AmChamHK 7 • 2017

U.S. Department of State

Richard Bush, second from left, Senior Fellow, Brookings Institution

Brookings Institution

Key personnel: Richard Bush, Senior Fellow Themes: International trade agreements Emphasis: To negotiate a bilateral trade investment treaty with China

Rick Larsen (D-WA), third from left, U.S. House of Representatives

Barbara Weisel, second from right, Assistant U.S. Trade Representative

AmChamHK 7 â&#x20AC;˘ 2017

Other key meetings: U.S.-China Economic & Security Review Commission

Key personnel: Various commissioners Themes: U.S. businesses, American expats, double taxation Emphasis: To showcase Hong Kong’s unique “One Country, Two Systems”

U.S. Customs & Border Protection

Key personnel: U.S. CBP oﬃcials Themes: Global trade, U.S. domestic issues Emphasis: To include Hong Kong in the U.S. Visa Waiver Program

U.S. Chamber of Commerce

Key personnel: Senior Vice President for Asia Tami Overby Themes: NAFTA, TPP, China’s “One Belt One Road” initiative Emphasis: Japan to take the lead on TPP following US withdrawal

Yukon Huang, Senior Fellow (Asia Program), Carnegie Endowment

Terry McCartin, third from right, Acting Assistant U.S. Trade Representative, and Tseing Dhongthog, far left, Deputy Assistant U.S. Trade Representative (Hong Kong Portfolio)

U.S. Trade Representative

Key personnel: Assistant USTR Barbara Weisel, Acting Assistant USTR Terry McCartin, Deputy Assistant USTR Tseing Dhongthog Themes: U.S. strategic plan for Asia, bilateral trade agreements Emphasis: To begin negotiations on NAFTA despite a current focus on deregulation and tax reform

AmChamHK 7 • 2017

GOVERNMENT RELATIONS & ADVOCACY

U.S. Tax Policy

Undermines American Competitiveness The current structure of U.S. corporate and income tax based on citizenship makes corporations and citizens abroad far less competitive than their counterparts. Here are the reasons

By Kenny Lau

AmChamHK 7 â&#x20AC;˘ 2017

t has been well established in the global business community that both U.S. corporations and individuals are taxed on their worldwide income earned in foreign countries – unlike the residency-based system adopted by most advanced economies countries with which the U.S. competes. It has also been a tax policy making American companies and citizens abroad effectively less competitive than their non-U.S. counterparts around the world. While the U.K., Canada and Germany generally do not tax corporate revenue repatriated from offshore subsidiaries and certainly do not tax their citizens on foreign earned income, the U.S. is the one exception whereby U.S. corporations are subject not only to a 35-percent tax (one of the highest in the world), but also to taxation on their profits regardless of where such profits are made. Whenever repatriated income is subject to taxation, corporations are naturally inclined to let profits sit where they are earned or to move them elsewhere through transfer pricing, unless cash is needed to pay out dividends or to make investments in their home country. China, like the U.S., defers taxation until income is repatriated and then allows a tax credit for the underlying foreign tax up to the Chinese tax rate of 25 percent (or 15 percent for high-tech companies). Chinese companies, like U.S. companies, leave income offshore to avoid paying current income tax, hence a proliferation of intermediate holding companies between Chinese parent companies and their subsidiaries overseas in places such as Hong Kong, Cayman Islands and British Virgin Islands (BVI). Ultimately, taxation on corporate profits abroad discourages reinvestment in the home country, even in a country like China where the corporate tax rate is lower than that of the U.S.

“The community of U.S. expatriates employed in non-US jurisdictions helps ensure American-made goods and services have commercial viability in the markets across different continents... it plays an instrumental role in U.S. market penetration and influence overseas.” The efficiency of a jurisdiction’s tax system can have a significant influence on the cost structure of companies and dictate the movement of corporate cashflow. It provides a competitive advantage to companies doing business in countries where their ability to utilize cash is not limited by considerations of tax friction. Companies are also much more likely to repatriate and reinvest their capital when foreign earned income is subject to little or no taxation. In times of much talk in Washington about a potential U.S. tax reform, one shall not underestimate the benefits of a territorial tax system if one of the objectives is to increase the overall U.S. economic competitiveness by expanding the physical presence of U.S. companies in both mature and growing markets around the globe. This is in the best interests of U.S. businesses and, more importantly, of the entire U.S. economy. The U.S. economy, of course, is far more complex than a tax system; whether one approach over another to taxation (residency-based vs. citizenship-based) is good economic policy is debatable. But there is no

AmChamHK 7 • 2017

Americans overseas, however, are at a distinct disadvantage because they are subject to U.S. taxation on their income as well as taxation of the country in which they live and work, despite an “inclusion” (tax break) for the ﬁrst US$101,000 of income under Section 911 of the U.S. tax code. All other advanced countries tax their citizens at eﬀective rates greater than or equal to that of the U.S., but they do not tax their citizens on income earned outside of their home country.

“One shall not underestimate the beneﬁts of a territorial tax system if the objective is to increase U.S. economic competitiveness by expanding the presence of U.S.

While Section 911 offers a housing allowance exclusion, it is generally insufficient to prevent housing benefits from being included in the tax base of U.S. expats. Given the high cost of living in the Asia Pacific region, Americans living and working abroad have had to endure tax liability and compete with their counterparts from the U.K., Germany, Canada and Australia on a playing field far from being level.

question that a territorial (residency-based) tax system allows U.S. businesses to further increase their global market share, expand international sales and drive U.S. exports on the spot in foreign countries.

It is more costly when U.S. multinational corporations send their senior executives of U.S. origin than those of other nationality on foreign assignments. Because exclusions under Section 911 are insufficient to offset the additional tax liability of individual employees incurred from citizenship-based taxation, employers find it necessary to equalize by bearing the extra tax costs of overseas assignment.

On an individual basis, Americans overseas play a critical role as unofficial ambassadors of the U.S. representing free trade and private entrepreneurship on a massive scale in a globalized world. The community of U.S. expatriates employed in non-US jurisdictions helps ensure U.S.-made goods and services have commercial viability in the markets across different continents. It plays an instrumental role in U.S. market penetration and influence overseas.

The current structure of U.S. corporate and income tax based on citizenship is an indisputable cycle undermining the global competitiveness of U.S. companies and expatriates. It is particularly pertinent to Hong Kong where U.S. businesses are regionally headquartered to open markets in Greater China and across Asia Paciﬁc. The possibility of a U.S. system of territorial taxation may be far-fetched; but it could start by increasing substantially the amount of inclusion under Section 911.

companies around the globe.”

They not only help export their home country’s values, goods and services but also serve the needs of the U.S. economy by participating in government-sponsored programs such as SelectUSA and encouraging foreign direct investment (FDI) into the U.S. This has resulted in large ﬂows of investment from Asia into the U.S. economy, revitalizing depressed areas of the country at a time of budget constraints.

AmChamHK 7 • 2017

CMY

CHINA CONFERENCE China’s Globalization Leap

September 8, 2017

#AmChamHKChinaCon

At the start of the year in Davos 2017, President Xi Jinping showed his intention to position China as a global leader. That push continues through to China’s trade pacts, its Belt and Road initiative, outbound investments and even climate change. Beijing is clearly on a quest to promote Chinese influence globally. What are the prospects of a globalized China? How should business leaders engage the dramatically evolving China and U.S. relationship? How will developments affect Hong Kong? AmCham HK will host its annual China Conference on Friday, September 8, 2017 at the Four Seasons Hotel Hong Kong. The conference is one of our signature events, where China experts, regional and international business leaders discuss the outlook for China and its associated challenges and opportunities.

DETAILS Date: Time: Venue:

Friday, September 8, 2017 8:00am – 3:00pm Four Seasons Hotel Hong Kong, Grand Ballroom, 2/F, 8 Finance Street, Central

CONFIRMED SPEAKERS Dr. David M. Lampton

Dr. Joachim von Amsberg Mr. David Frey Dr. Edward Tse Prof. Tony Chan Mr. Richard Lancaster

Chairman of The Asia Foundation; Hyman Professor and Director of SAIS-China and China Studies at the John Hopkins, School of Advanced International Studies Vice President, Policy & Strategy, Asian Infrastructure Investment Bank (AIIB) Partner, Markets Strategy, National Head of U.S.-China Strategic Corridor, KPMG Founder and CEO, Gao Feng Advisory Company President, Hong Kong University of Science and Technology ...Stay tuned! More to be announced CEO, CLP Group

TOPICS • U.S. – China Relations in the Trump-Xi Era • The Global Push of the China Brand • The Big Bay Area and Hong Kong Opportunities • AIIB’s role and insight from Beijing upon Hong Kong’s joining

Platinum Sponsors

Gold Sponsors

Sponsorship

Program

Ms. Villy Leung vleung@amcham.org.hk (852) 2530-6922

Mr. Michael Yu myu@amcham.org.hk (852) 2530-6915

Silver Sponsors

Bronze Sponsors

Organizer

CHAMBER NEWS

Michael Yu This month we get to know AmCham’s new Director of China Aﬀairs, Michael Yu, who explains his department’s role in implementing the Chamber’s China agenda

By Jennifer Khoo What you were doing before you joined the Chamber? Initially, I studied and trained to be an orthoptist, gaining full qualification to practice as a stateregistered orthoptist from the University of Liverpool in the U.K. But moving back to Hong Kong afterwards led me onto a completely different path. I took my first job in the media, advertising and marketing industry, gaining invaluable experiences working for the HKSAR government, as well as in international and regional media companies. During this period, I went on to further complete a part-time bachelor’s degree in Business Administration from Coventry University in the U.K. One thing I have learned from my experiences is that with change, you learn something new. I have enjoyed all the challenges and changes that have come my way. Before joining AmCham, I was working for a privatelyfunded, China-based Nordic-Chinese platform for the promotion of business cooperation between the Nordic countries (Denmark, Finland, Iceland, Norway & Sweden) and China.

There, I was responsible for the development of cooperation agreements between stakeholders and the Nordic-Chinese platform; supporting marketing and promotion activities for partners; and engaging Nordic businesses as working partners for long-term development in China. Describe a typical day for you at AmCham. I usually start my day with a cup of coffee as soon as I arrive at the office, before proceeding to deal with any urgent correspondence that needs my immediate attention. Organization is key to what we do here, and I always plan my day by scribbling down tasks on a piece of paper and drawing all over it. It may not look very neat but is surprisingly effective in helping me to prioritize and decide my goals for the day. The China Affairs Department is tasked with the formulation and implementation of AmCham’s overall China Agenda. Our primary duty is to inform and update members about the latest business development and opportunities in Mainland China; this means we are always in communication with key stakeholders from

AmChamHK 7 • 2017

China, HK and other regions to establish and maintain our Chinese business connections. The Chamber hosts more than 30 meetings a year with Chinese government oﬃcials and business representatives from all over China. You will see me either busy organizing or hosting these events. What are some highlights and challenges of your role so far? Everyone's eye is on China these days, and the nation has really stepped up as a global leader and defender of free trade. The OBOR initiative; the Big Bay Area development plan; and the role of Hong Kong as a “super-connector” are all hot topics on everyone’s mind. It is certainly challenging to stay on top of the latest developments under the ever-changing global Michael Yu, Director of China Aﬀairs business landscape, and yet, extremely rewarding when we can utilize these opportunities to open doors for our member companies to succeed. to China, Hong Kong and/or the U.S. What are some key issues to be addressed at this year’s China Conference and why should people attend? At this year’s China Conference, we will examine the prospects of a globalized China and its ever-evolving relationship with the U.S. Key issues to be addressed include: What China’s “going global” strategy means for international businesses, and the future role of Hong Kong within the Guangdong-Hong Kong-Macau Big Bay Area development. So far, our impressive speaker line-up includes: Professor David M Lampton (SAIS), Dr. Joachim von Amsberg (AIIB), Dr. Edward Tse (GaoFeng Advisory), Professor Tony F Chan (HKUST) and Mr. Richard Kendall Lancaster (CLP), with many more to be announced in the upcoming weeks. This is a not-to-be-missed-event for anyone with ties

AmChamHK 7 • 2017

Could you share about any other projects the China Affairs team is currently working on? The Beijing Doorknock, another one of AmCham’s signature events, will take place around October or November this year. Each year, the trip involves an exciting visit to Beijing to “knock on the doors” of various ministries, think tanks and other official organizations to discuss the outcome of the 19th National Congress of the Communist Party of China. We are also planning several delegation visits to China in the second half of this year. Fujian, Jiangxi and the Guangdong-Hong Kong-Macau Big Bay Area are touted as possible destinations. Out of the office, what can we find you doing? I make an effort to exercise every day. It’s a great way to instantly boost your happiness and reduce stress. Swimming is my favorite exercise and I feel at peace in the water.

If you aren’t from Hong Kong originally, where is home? How long have you been living/working here? Hong Kong is my home; 22 years now! I'm originally from the U.K. and came to HK via the U.S. intending to continue onto Australia. Here I still am (happily). What do you like most about life in Hong Kong? It's always open; it's always alive! I love the fast pace of life. I've not run a business elsewhere, but Hong Kong must be one of the easiest places in the world to do so. Describe yourself using three words. Work in progress. Name: Ruth Benny Job title: Head Girl and Founder Company: Top Schools Industry: Education Management AmCham member since: 2016

If I wasn’t a business leader, I would be… Working with children in some capacity; probably as a teacher. What was your first ever job? Apart from working in my dad's barber shop and delivering newspapers, I actually dropped out of school to work for Virgin Records in A&R (Artists and Repertoire). I mostly remember buying and delivering guitar strings to the studio and, of course, the epic annual parties at Richard Branson's house. He had a policy that he would hear any member of staff deliver a 15-minute pitch for a business idea. I remember wishing I could come up with an idea, but I never did. Favourite piece of advice (work-related or otherwise)? If you don't ask, you don't get (mother, circa 1975). Outside the office, where can we find you / what can we find you doing? Unfortunately, the office travels with me. Other than work, I'm a soccer/rugby/netball mum. When I can squeeze in an hour here and there, I like to watch drama shows. Currently watching 'The Replacement' on BBC - gripping stuff! Name something on your bucket list. Big Africa trip. Spent a few weeks in South Africa, but I have a need to explore more of the continent. Can't explain it; something primal. My exploration would be less Bear Grylls and more “Out of Africa.” What attracted you to AmCham? I'd been to several events and met some interesting people who assured me I could join even as a Brit. I see AmCham doing some great work and running interesting events. Through our partnership with Stamford American School, I was convinced to bite the bullet. Which AmCham event are we likely to find you at next? Something education related, I guess.

AmChamHK 7 • 2017

Connecting to Belt and Road Opportunities

CHINA BUSINESS

A Bay Area of

Economic Strength Zhaoqing

Founder & Managing Director of Silk Road Associates and renowned China economist Ben Simpfendorfer describes how a cluster of eleven cities in southern China could become an economic powerhouse with a combined GDP comparable to that of Australia or Korea

By Kenny Lau

Zhaoqing Area: 15,006 sq. km GDP: USD 30.2 billion Population: 4.06 M

What is the Guangdong-Hong Kong-Macau Greater Bay Area? The Greater Bay Area initiative recognizes that commercial opportunities for Hong Kong, Shenzhen, Guangzhou and other major cities of the Pearl River Delta have changed fundamentally. The rise of technology giants such as Huawei and Tencent is a nice illustration of the change. But opportunities are emerging across a range of sectors – from advanced manufacturing to logistics to leisure. The initiative seeks to nurture these changes. Its inclusion in China’s 13th Five-Year Plan (2016-2020) provides critical central government support. It also gives Hong Kong a bigger role supporting Mainland Chinese companies across the border and helping them internationalize. In short, it lays out a roadmap for a more integrated, internationalized and value-added Pearl River Delta.

Foshan Area: 3,875 sq. km GDP: USD 125.3 billion Population: 7.50 M

Jiangmen

Jiangmen Area: 9,554 sq. km GDP: USD 34.8 billion Population: 4.54 M

AmChamHK 7 • 2017

Cities in the Guangdong-Hong Kong-Macau (GDHKMC) Bay Area

Guangzhou Area: 7,436 sq. km GDP: USD 284.6 billion Population: 14.04 M

Dongguan Area: 2,512 sq. km GDP: USD 99.1 billion Population: 8.25 M

Huizhou

Guangzhou

Area: 11,159 sq. km GDP: USD 49.5 billion Population: 4.78 M

Huizhou Dongguan

Foshan

Shenzhen

Zhongshan

Area: 2,007 sq. km GDP: USD 283.0 billion Population: 11.90 M

Zhuhai

Hong Kong

Area: 1,104 sq. km GDP: USD 319.3 billion Population: 7.37 M

Macau

Zhongshan Zhuhai Area: 1,696 sq. km GDP: USD 32.3 billion Population: 1.68 M

AmChamHK 7 â&#x20AC;¢ 2017

Area: 29.2 sq. km GDP: USD 44.7 billion Population: 0.64 M

Area: 1,770 sq. km GDP: USD 46.4 billion Population: 3.23 M Source: Fung Business Intelligence

What is the Chinese government’s vision for the “Greater Bay Area?” The Chinese government has plans to deepen Hong Kong’s economic and ﬁnancial integration with Guangdong. For instance, you hear oﬃcials stressing the need for “two-way opening up.” That implies Hong Kong will remain a gateway to China, but also increasingly act as a springboard for Chinese companies to the world. It’s good news for Hong Kong.

home to a number of emerging Chinese multinationals, such as Midea; Jiangmen and Zhongshan, by contrast, are struggling to escape the declining need of low-cost manufacturing; Guangzhou meanwhile beneﬁts from its role as the region’s capital as well as improved rail and road links.

The Greater Bay Area’s geographic concentration is also unique in China. There is no other region in China where you find 11 major cities, including Hong Kong, It’s also a change that supports the central government’s Shenzhen, and Guangzhou, all within 100 kilometers of new priorities – from the internationalization of the each other. It means some of the area’s smaller cities Renminbi, to the country’s Belt and may emerge as dormitory cities, Road initiative, to supporting the especially for those working in The Bay Area vs. global expansion of heavy-weight Shenzhen or Guangzhou and faced players such as Huawei, Midea, or major metropolitans with rising home prices. Tencent. So, it’s likely to remain a in the world long-term driver of Hong Kong’s own What industry sector will it commercial opportunities. emphasize? GDHKMC Bay Area I would expect a focus on advanced How would each of these cities manufacturing, digital and Area: 56,000 sq. km complement one another? technology, logistics and GDP: 1.3 trillion USD Population: 66.72 million The Greater Bay Area’s nine major trade-related services, and leisure & Administrative units included: cities were in fierce competition entertainment. These are natural fits 9 cities+2 SARs* with each other during the 2000s, for Shenzhen, Hong Kong, and to a and that wasn’t always healthy. It lesser extent Guangzhou and Greater Tokyo Area meant a great deal of duplication. Foshan. The leisure & entertainment But there are growing signs that industry is also key to encouraging Area: 36,800 sq. km GDP: 1.8 trillion USD each of the region’s cities are consumer spending. Population: 43.84 million starting to specialize either as a Administrative units included: result of the challenges in low-cost There are also market dynamics in 1 capital + 7 counties export manufacturing or the play. Just take a look at the growing emergence of the digital and number of resort-style hotels San Francisco Bay Area technology sectors. catering to middle-class families looking to escape the bigger cities Area: 17,900 sq. km GDP: 0.8 trillion USD Today, Shenzhen has booming over the weekend. This is a natural Population: 7.6 million advanced manufacturing and outcome of the region’s growing Administrative units included: technology sectors; Foshan is spending power and changing 9 counties lifestyle preferences. It’s a timely reminder that market forces can be New York City as important as policy initiatives. Area: 783.84 sq. km GDP: 1.7 trillion USD Population: 8.6 million Administrative units included: 5 counties * Special Administrative Regions Source: Fung Business Intelligence

What will it take to develop the Greater Bay Area as envisioned? It’s easy to be impressed by the Greater Bay Area’s existing infrastructure. But there’s more to come. Most impactful, at least for Hong Kong, is the Express Rail Link

AmChamHK 7 • 2017

between Hong Kong, Shenzhen, and Guangzhou. But equally important are a series of Intercity Rail Links under construction and the bridge and tunnel connecting Zhongshan to Shenzhen. I’m more ambivalent about the Hong Kong-Macau-Zhuhai bridge as a short-term opportunity, especially given prospects for Jiangmen and Zhongshan. That said, it does shorten travel time from 90 to 30 minutes and may prove to be a signiﬁcant long-term opportunity, especially if the western regions emerge as a logistics, business outsourcing (BPO) or leisure-related opportunity.

Ranking 1

Billion

GDP (2015)

USD

United States

18,037

China

Japan

4,382

Germany

3,365

11,226

United Kingdom

2,863

France

2,420

India

2,088

Italy

1,826

Brazil

1,801

Canada

1,553

Korea

1,383

Russia

1,366

GDHKMC Bay Area

1,300

Australia

1,230

Spain

1,194

Mexico

1,151 Source: Fung Business Intelligence

The challenge of attracting the right talent is always an issue. But greater integration will help multinationals to better leverage their Hong Kong-based talent for opportunities across the border. While it’s more common for executives to ﬂy to Beijing or Shanghai rather than Shenzhen, that’s likely to change in the near future. We also shouldn’t forget about Hong Kong’s existing business and family links to southern China. Not only is Hong Kong a major investor in factories across the border, but many in Hong Kong have strong family ties in southern China, and Cantonese is widely spoken in most Greater Bay Area cities. What role should Hong Kong play as part of the Greater Bay Area? In my view, Hong Kong should be playing a greater role as southern China’s regional headquarters. There are still signiﬁcant regulatory and tax obstacles between Hong Kong and Mainland China. But the creation of free trade zones such as Qianhai or Hengqin is a step in the right direction. Improved infrastructure will also reduce the time it takes for a relationship manager or senior executive to travel between Hong Kong, Shenzhen, and Guangzhou. Many are already considering how Hong

AmChamHK 7 • 2017

Kong-based business development teams or senior managers can drive their southern China opportunities, or whether their Hong Kong oﬃce, rather than the oﬃce in Beijing or Shanghai, should have responsibility for leading the overall business strategy in southern China. How is it also tied to the Belt and Road initiative? The Greater Bay Area will play a key role in China’s engagement with the Belt and Road economies. But it will focus on private companies instead of large state-owned enterprises. For instance, Chinese investors from the Greater Bay Area are already investing in Vietnamese garment factories and industrial parks; Chinese brands, such as Huawei and Oppo, are already capturing market share in Bangladesh. Sure, these aren’t the large infrastructure or energy projects that many of us typically associate with the Belt and Road initiative. But they are equally important and will result in ongoing international opportunities for the Greater Bay Area. The fact many of these companies have access to international professional services in Hong Kong will already make it much easier to succeed when going global.

INFRASTRUCTURE & REAL ESTATE

Ahead of the Curve Despite a free economy, a sophisticated ﬁnancial sector, a sound legal framework and an eﬃcient tax system, Hong Kong must seek closer integration with China and expedite the development of infrastructure and technology to secure future economic growth, according to a new Colliers report

By Daniel Shih and Zac Tang

AmChamHK 7 • 2017

riding itself as Asia’s World City, Hong Kong’s economic competitiveness – primarily in ﬁnancial services, trade and logistics, professional services and tourism – has enabled the city to earn the status as the world’s freest economy for the 23rd consecutive year and an accolade for being the most competitive economy. The economic growth rate of Hong Kong, however, has been slower than those of neighbouring cities, and it is particularly falling behind in the areas of technology, innovation and infrastructure development. While the city remains very free and quite competitive, it has been losing ground to other Asian cities in the prospect of further growth.

Hong Kong Top Ten IPO Advisers 1997 1 2 3 4 5 6 7 8 9 10

Morgan Stanley HSBC Merrill Lynch Barclays Peregrine Barings JP Morgan Jardine Fleming Credit Suisse Somerley

2017 China Construction Bank Haitong Securities Agricultural Bank of China China Merchants Securities China International Capital Group Everbright Securities Bank of America Merrill Lynch Bank of China Guotai Junan Securities China Merchants Bank

Note: Figures for 1997 reflect annual total priced deals, while figures for 2017 reflect prices deals till June 1 Source: Bloomberg, Colliers

Over the past 20 years, Hong Kong’s economic structure has not changed much given that the four major pillars remain dominant and constitute nearly 60 percent of total GDP (2015). Although ﬁnancial services grew from 10.6 percent to 17.6 percent, trade and logistics has come under pressure amid a shift of Chinese manufacturing away from Guangdong province and improved infrastructure and operation eﬃciency at local ports.

Coupled with the challenge of land scarcity and an aging population, Hong Kong needs to leverage China’s growing economy to secure future economic growth. For the next 20 years, Hong Kong’s international experience and cultural diversity will be key assets, and China’s emergence as a global leader will provide Hong Kong with an opportunity to rise as a global city.

Photo: Thickstock

AmChamHK 7 • 2017

Growth of GDP Per Capita 900

830.6

800 700 583.8

600 500 400 300

178.8

200 100

165.2

Hong Kong

Singapore

Shanghai

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

0 1995

Growing ties with Mainland Like other mature economies, Hong Kong faces similar constraints on future growth. The government has been working with China in promoting Hong Kong’s competitive advantage as an international market that is nonetheless part of China. This status means that Hong Kong is a key gateway city for national policies and RMB internationalization.

Shenzhen

Source: government data, Colliers

China’s economic influence has been on the rise in Hong Kong. Chinese enterprises now account for over 60 percent of the value of the Hong Kong stock market, while Hong Kong looks set to become the top destination for Chinese overseas property investment. Chinese capital has also driven up demand for local commercial and residential properties. China’s growing economic prowess presents ample opportunities for Hong Kong to expand its realm of influence. The Belt and Road initiative (OBOR) and the plan to develop a Guangdong-Macau-Hong Kong Greater Bay Area will provide a visionary blueprint for Hong Kong’s economic development and determine Hong Kong’s role on both the international and domestic fronts in the coming decades. On a global scale, Hong Kong can be a “super-connecter” between China and the Belt and Road countries in a new geo-political structure led by China. The finance and professional services sector will have plenty of room to grow as Hong Kong becomes

the new financial center for the region covered in OBOR, which comprises 65 percent of the world’s population and one-third of global GDP. At a regional level, further integration with nearby cities in the Pearl River Delta under the Greater Bay Area plan will further expand Hong Kong’s economic hinterland with increased cross-border flows of people, capital and business as Mainland Chinese residents and companies continue to diversify their portfolios and expand globally. The Greater Bay Area is poised to become one of the most dynamic economic regions in the world. The Lok Ma Chau Loop, for instance, is proposed to be developed into a future high-tech hub for Hong Kong and Shenzhen, leveraging Hong Kong’s strength in soft skills and Shenzhen’s experience in high-tech hardware. It is a good illustration of how integration can benefit the territory and provide a potential solution to the entrenched problem of land shortage.

AmChamHK 7 • 2017

Belt and Road Initiative

Source: HKSAR government, Colliers

Closing the innovation gap Hong Kong has a critical role to play in China’s Belt and Road initiative and development of the Greater Bay Area in South China, but it must first strengthen its infrastructure, business districts and high-tech parks, facilitate the venture of start-ups, and integrate more closely with the economy of Shenzhen as well as the rest of the Greater Bay Area. Despite a well-developed and highly sophisticated financial sector, Hong Kong is facing a new challenge: how to incorporate new technology and innovation into its economy to retain its global status in the future. Hong Kong has only started to see more investment in fintech in 2016, and is a few years behind other global financial centers such as New York, London and Singapore. Besides, Hong Kong has lagged in R&D investment, spending 0.8 percent of domestic GDP in 2015, well below the levels of 2.4 percent in Singapore and 4.2

AmChamHK 7 • 2017

percent in Shenzhen. Singapore, in particular, has repositioned itself as a high-tech hub and successfully outpaced Hong Kong in terms of real GDP per capita, from US$7,110 in 1995 to US$15,700 in 2015. Shenzhen and Shanghai are two of China’s top tier-one cities having grown much faster than Hong Kong in the last 20 years: Shanghai as China’s top ﬁnancial center outgrew Hong Kong by 3.5 times while Shenzhen as China’s Silicon Valley did so by ﬁve times. If Hong Kong is to remain economically competitive, it will need to adopt an approach geared for the technology-based “New Economy.” Daniel Shih and Zac Tang are Director of Research and Senior Research Analyst, respectively, at Colliers International. They produce thought-leadership content on demographic, economic and political movements that give rise to the latest developments in commercial, industrial, residential and retail property markets.

INNOVATION & TECHNOLOGY

FinTech:

From ATMs to Integrated Money Managers The application of technology in ﬁnancial services has risen dramatically in a matter of a few years. Can Hong Kong become a leading “ﬁntech” hub? Henri Arslanian of PwC explains why the city is well positioned to support such development

By Kate Whitehead

intech is generating a lot of excitement and for good reasons – not only is it the sexiest thing in finance, but Asia is where it’s really taking off and Hong Kong is increasingly becoming a key player. Despite all the hype and excitement, it’s important to keep in mind that much falls under the umbrella “fintech.” It’s a broad term referring to newly emerging digital technologies – including artificial intelligence, blockchain, big data, crowding funding, digital payments, and robo advisory – that make financial services more efficient.

The roots of fintech When fintech first began is a contentious question. Some say it started in the 1960s with the first ATM, others date it from the 1980s when Bloomberg came out with the first terminal or even in the 1990s with the first online stock brokerage websites. But most insist it became prominent after the global financial crisis in 2008. “During the financial crisis, banks were busy dealing with the new fines, new regulations, and they were worried about survival. At the same time, some of the biggest game-changing technology and innovation that have transformed the way we live today came about,” says Henri Arslanian, PwC FinTech & RegTech Lead for China and Hong Kong. These include Airbnb, Uber, and Whatsapp in 2010 and WeChat in 2011, he points out. As the gap between what banks could offer and what customers came to expect increased, tech start-ups flourished, he

AmChamHK 7 • 2017

adds, calling it a rapidly developing story in which large technology firms have become the real game changers in the broader fintech world. Optimistic about Hong Kong’s future in the fintech sphere, Arslanian says one of its core advantages is that the city is a global financial center. More than 70 of the world’s top 100 banks are in Hong Kong, making it ideal for a business-to-business (B2B) environment where many banks and financial institutions are clients for fintech products and services.

Henri Arslanian, far left, PwC FinTech & RegTech Lead for China and Hong Kong, speaking at the AmCham Fintech Forum in late 2016

“It’s very difficult to build a fintech center if you don’t have a financial services ecosystem,” says Arslanian, who is also a TEDx speaker and an adjunct professor at the University of Hong Kong. The regional ecosystem Hong Kong’s fintech community is young. In 2014, Arslanian began organizing fintech dinners – informal

Financial institutions in Hong Kong have not embraced “disruption” to the same extent as other markets: 70 60

59%

62%

58%

56%

55%

Percentage

51%

gatherings to discuss developments – and it was a challenge to find just a few people to fill a table. The landscape, however, has changed dramatically, especially with the participation of the government as investors moved in. With an increasing number of tech start-ups in Hong Kong, InvestHK took on a full-time staffer last year, while both the Hong Kong Monetary Authority and the Securities and Futures Commission have already dedicated desks to the task. All the banks have staff specializing in fintech for which investment funds are growing. The Fintech Association of Hong Kong has also been launched recently. “The goals are to advocate any issues regarding fintech, bring together the various parts of the ecosystem, and educate the next generation of talent to make them aware of the development in fintech,” says Arslanian, a board member.

30 20 10 0

China

Singapore

U.K.

Global

U.S.

Hong Kong

Source: PwC Hong Kong Fintech Survey 2017

AmChamHK 7 • 2017

China is streets ahead of the rest of the world in ﬁntech development, particularly when it comes to the business-to-consumer (B2C) front where Tencent – which has more than 900 million monthly active users on its social media app WeChat – is a phenomenally successful mainland ﬁrm.

Financial institutions in Hong Kong are not investing in FinTech as much as their Chinese counterparts: What percentage of your annual turnover do you allocate to FinTech matters (investments into FinTech, IT projects, dedicated resources)? 35

32%

institutions across Asia,” says Arslanian. “Hong Kong is really [a market] by the community, for the community.”

Percentage

30 25 20 15

13%

15.4%

15%

14%

Global

U.S.

Hong Kong

5 0

China

Singapore

U.K.

The prospect of Hong Kong Hong Kong is certainly strong on the “fin” aspect of “fintech,” but it’s weak on the “tech” side. The shortage of tech talent is one of the biggest hurdles to the industry. While efforts are being made to produce some strong talent, it is no less important to create the right mindset, Arslanian believes.

Source: PwC Hong Kong Fintech Survey 2017

In addition to making a doctor’s appointment, booking a taxi, finding a date, managing money and buying insurance, “you can literally get many of your financial services needs met directly off the Tencent platform right now,” says Arslanian. “It really changes the dynamic of financial services.” Chinese fintech firms, he points out, tend to stay in the mainland market largely because it’s easier to capture a significant share of the Chinese market than to try and venture outside. But for those Chinese firms looking to operate beyond the mainland, Hong Kong is sitting pretty and could serve as a stepping stone. Likewise, Hong Kong is well positioned to support fintech firms from the West, and these are start-ups that may be mature but are hampered in their home market by large banks reluctant to move quickly with the new technology. Another key factor driving fintech in Hong Kong is the fact that much of the growth is being led from the ground up. “This creates a great arbitrage opportunity for start-ups based in Europe or the U.S. to come to Hong Kong and use that as a stepping stone to service financial

“The day it will change is when we look not to the real estate tycoons but to tech entrepreneurs as role models,” he says. “When we begin to value successful start-ups, then people’s mindset will change. And you need people to be comfortable with failures [throughout the journey].” Silicon Valley, he stresses, has embraced the notion of “successfully failing,” and it’s only a matter of time – when Hong Kong has its own successful cases of entrepreneurs like Jack Ma and Pony Ma – that people here will also embrace the philosophy and become more adventurous in the tech sphere. With a population of just eight million, Hong Kong will never flourish as a B2C market like China, but it has found its niche by focusing on B2B fintech. Singapore is after a similar market share, but the Lion City – which has been investing heavily in technology – is more of a complementary rather than a competing partner of Hong Kong, Arslanian notes. “The camaraderie that exists in the fintech community is phenomenal,” he says. “I often tell people that I’ve never seen an industry where people are so open to sharing, are humble, and are energized as the fintech community.”

AmChamHK 7 • 2017

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

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FINANCE & ECONOMICS

One Country, Two Systems:

A Disparity of Financial Complexity

China is found to be one of the most complex jurisdictions in the world of accounting and tax compliance while Hong Kong remains one of the easiest places in which to stay compliant with rules and regulations, according to a new ﬁnancial index

By Kenny Lau

hina is among the most complex countries in Asia Pacific for accounting and tax compliance, ranking 7th globally, and is only slightly less than Vietnam, according to TMF Group’s inaugural Financial Complexity Index 2017. By contrast, Hong Kong is one of the least complex and easiest place for compliance, ranking 91 out of 94 jurisdictions; only the Cayman Islands, BVI and UAE were considered less complex for business across the world. The Financial Complexity Index was pulled together to help people understand some of the differences to consider when they look to operate internationally. “For example, if people haven’t had the experience of running a finance department in China, it can seem daunting,” says Henry Reynolds, Group Relationship Manager (Strategic Alliances) at TMF, a provider of global business and compliance services. “There is huge variation between jurisdictions from

what systems you have to use, how and where to store data, and how to comply with different tax treatments pertaining to the different way countries administer their tax regimes, he explains. “We used a set of weighted complexity parameters in considering the rules and regulations as well as risks associated with non-compliance in different jurisdictions.” Most jurisdictions do not consciously decide on their complexity and few want to be complex for the sake of it, Reynolds points out. Rather, it is a balance between control, transparency and the economic backdrop of the country, and how it has evolved to where it is today. How a country has shaped its current landscape is usually driven by a host of factors such as economic, political, technological etc.

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Summary of key ﬁndings: • Among the top 10 jurisdictions in Asia Paciﬁc: Vietnam (5), China (7), and India (10) • China’s complexity due to requirements of reporting in Chinese language and currency • Stringent regulation in Hong Kong despite being one of the least complex • Ongoing automation and digitization of accounting processes and reporting

A Conversation with Experts • Judy Chu, TMF Hong Kong Head of Accounting and Tax • Wandy Chan, TMF Group Head of East China • Henry Reynolds, TMF Group Relationship Manager, Strategic Alliances How is a jurisdiction judged to be complex in accounting and tax compliance? Reynolds: We pulled together a list of 70 detailed questions under four broad themes to give structure to the survey and reflect the key areas we have found important to clients. These were Bookkeeping, Accounting, Tax and Compliance. Each section reflects the different roles within a finance department: bookkeeping addresses the maintenance of the books; accounting looks at the differences in GAAP and various reporting requirements, tax looks at how to report; and compliance looks at legal structures, roles and responsibilities of directors in both civil and common law jurisdictions. We then asked our local experts in more than 80 countries to respond to the survey and collected their responses for comparison. The criteria are a culmination of all the questions across all the sub-sections. Most complex would imply less

flexibility, more rules and regulation in a stricter environment when complying with the requirements for maintaining, filing and reporting on an entity. How do we differentiate non-complexity from non-regulation? Reynolds: Complexity covers a multitude of issues that span the practical steps of being locally compliant. Regulation includes the oversight bodies which vary in how they choose to set the conditions in which the underlying activity takes place as well as the subsequent follow-up to check adherence to the guidelines. The Financial Complexity Index does not go into the regulatory bodies and how they achieve oversight, but merely how easy it is to comply. It is true that regulation can add to the burden of compliance through additional reports and filings, but it is not necessarily a direct relationship as some regulation requirements are easy to comply with. The relationship between regulation and complexity (for the purposes of our study) is complex in itself. Both are a blend of the underlying sophistication and size of the economy, cultural stance towards companies, technology available and the amount of control a government wants. Photos: Thickstock

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For the purposes of a global survey we have not included the additional industry-specific regulation such as mining, pharmaceutical and banking licenses etc. The BVI has a low complexity score as a result of the limited number of taxes. This doesn’t mean it is not regulated; indeed, they would say they are well regulated, just that there are limited issues to make the process of compliance complex. Inherently they are a low and effective tax jurisdiction which serves a purpose for international investment such as US pension funds. What is the correlation between complexity and competitiveness? Chu: The key driver to competitiveness is not primarily the complexity of the jurisdiction but is driven by commercially strategic issues. Risk plays a large part in terms of economic, political and a host of other risks that international companies face. The drivers for international expansion at an operational level will be to do with their addressable markets and corporate strategy, with administrative burden being more tactical and viewed as a “hygiene factor.” Hong Kong has many highly compelling attributes that would outweigh an increase in complexity, provided that the changes to the complexity drivers did not impinge on these commercial drivers. For example, Hong Kong only imposes three direct taxes: profits tax, salary tax and property tax. There is no sales tax/VAT, capital gains tax or withholding tax on dividends and interest. This simple tax system is one of the big attractions of Hong Kong’s business environment for foreign investors. What makes China’s system so complex? Chan: China is relatively complex for a host of reasons including: accounting on a cash basis, language, licenced software requirements, and operating licences needed to establish trade as an international company, just to name a few. And compared to Hong Kong, China has a much more complex tax system, as there is tax imposed on transactions (VAT, consumption tax and business tax), tax on specific objectives (land appreciation tax), as well as tax on resources and property. China has its own standards which may be difficult for foreign investors to understand. Accrual basis accounting is adapted under the PRCGAAP; however most Chinese

accountants apply cash basis due to the VAT system. The administrative approach in China differs among cities, and this often confuses companies with operations in multiple locations. Due to China’s licensed software requirements, additional investment needs to be factored in for accounting software customization. How difficult is it to do cross-border businesses between China and Hong Kong, given very different compliance systems? Chu: Between China and Hong Kong, it is not hard to do cross-border business. China has one of the highest GDP growth rates in Asia-Pacific, supported by fast rises in industrial output, retail sales, fixed assets and property investments. Hong Kong benefits from its proximity to China, especially from the developing Hong Kong-Zhuhai-Macao Bridge, which provides links between Hong Kong, Zhuhai City and Macao. The double tax treaty between China and Hong Kong also enhances cross-border transactions by providing preferential tax rates on certain types of income. Are we seeing a global trend of convergence in accounting and tax compliance? Reynolds: We have seen the desire for convergence in accounting and tax for a number of years with IFRS and with the OCED BEPS program. Certainly, corporate tax transparency is a key agenda item; however, changes take a long time to enact and require the domestic political will to enforce the recommendations.

FINANCIAL COMPLEXITY INDEX 2017 GLOBAL RANKINGS RANKING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 . . . 70 . . . 76 . 78 . . . 90 91 92 93 94

JURISDICTION Turkey Brazil Italy Greece Vietnam Colombia China Belgium Argentina India France Bolivia Albania Kazakhstan Mexico . . . USA. . . . Japan . UK . . . Jersey Hong Kong UAE BVI Cayman Islands Source: TMF Group

Despite a global framework, it is still left to individual jurisdictions and countries to decide how to comply – which leaves room for diﬀerences in interpretation and methodology of compliance. It is a balance between change and disruption to the current practice against the need for governmental revenue collection and the long-term beneﬁts.

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ASEAN FOCUS

Reformed Thinking Deep structural changes with a purpose have added gloss to the performance of the Indonesian economy. Next on the agenda are job creation and easing inequality

By Jennifer Khoo

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“A

sia’s next giant,” “emerging market standout” and “unlikely star”; the platitudes showered on the Indonesian economy by the business media are glowing. The analysis typically revolves around Indonesia being the biggest economy in Southeast Asia or its youthful – and growing – demographic pyramid of 263 million people. You might also read about tech-smart, social media-minded consumers, thirsting for a better life. It can be superficial stuff but the descriptions are often apt. Indonesian gross domestic product has ballooned over the past several years. Growth rates overtook the pace of expansion in Malaysia and Thailand midway through last year, topping out at just over 5 percent. It’s the type of performance that places Indonesia among the fastest-growing emerging-market economies, alongside mainland China and India. Reform in stages The government has played its part in driving growth by making reforms and introducing policies intended specifically to help economic and social development across the country. The changes are manifestations of RPJMN 2005-2025, a long-term development plan outlining Indonesia’s ambition to become an advanced, self-reliant economic and diplomatic power of global importance, while ensuring social justice. The plan will be rolled out across the 20-year period in 5-year segments, each with a different focus area. The current 5-year RPJMN, from 2015 to 2019, has prioritized investment into Indonesia’s green economy. It outlines specified targets that include: the reduction of greenhouse gas emissions in five priority sectors, namely, forestry and peatlands, agriculture, energy and transportation and industrial and waste; and increasing community resilience to the impacts of climate change in 15 vulnerable areas of the country.

Photo: Thinkstock

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The preceding phase, from 2010 to 2014, concentrated on improving tax policy and making government spending more effective. Measures were taken to improve administration of the budget and disbursement of funds, to make these processes swifter and the officials that undertake them more accountable. Measures were also taken to improve the transparency of tax revenue calculation and determination. Private consumption has been another key driver of economic growth in Indonesia. The IMF reports that private consumption has grown because consumer purchasing power has increased as inflation weakens and the rupiah strengthens. Youth’s curse Greater private consumption may imply greater general prosperity and expansion of the middle class. But prosperity and upward social mobility have eluded the millions of Indonesians that live below the poverty line or only just above it. World Bank statistics indicate that one-quarter of the population are in this category. Moreover, the gap between the haves and have-nots has widened, not least because young Indonesians are joining the labor force at an estimated rate of 1.7 million a year – faster than jobs are being created for them.

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An economist at the Institute for Development of Economics and Finance, Dzulﬁan Syafrian, told Indonesian news media in May that the youthful Indonesian labor force had the potential to become the nation’s greatest economic resource – if it was managed well. But Syafrian also said too few jobs could turn this resource into a burden, leading to more crime and radicalism, and so harming society. He described the situation as a “double-edged sword.” Awkward timing The IMF says the near-term outlook is favorable for the Indonesian economy but staying on track means persisting with reforms and policies intended to ease

the diﬃculties while facilitating growth. The fund calls for investment in public infrastructure to be boosted, for red tape to be slashed and for more areas of the economy to be opened up to private investment. The main thrust of new reforms should be matching the skills workers can supply with the skills that employers demand, the IMF says – for example, by oﬀering more vocational training and apprenticeships. The Indonesian government faces challenges, but it appears to have a winning formula and a concise roadmap to achieve its ambitions. Now is the time for more far-sighted reform and not quitting while it is ahead.

Photos: Pixabay

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CHARITABLE FOUNDATION

Foundation trustees (front row, from left) Rob Chipman, Jon Zinke, Jim Thompson, Peter Levesque, Gage McAfee, Tom Gorman and Mark Michelson; (back row, from left) Institute of International Education (IIE) Regional Director Paul Turner, Kristen Lam, Kieran Fung, Yashvardhan Badoloi, AmCham President Tara Joseph, Anderson Chan, Jenny Ng, Michael Au and IIE Program Manager Wallace Ng

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AmCham Honors

Young Leaders of the Year

The AmCham Charitable Foundation is privileged to recognize four U.S. college-bound Hong Kong students, three full-time MBA candidates from HKU, CUHK and HKUST, and 20 local secondary school students in 2017 for their exceptional academic achievement, leadership and community service with annual scholarship awards. Here are their inspiring stories

By Kenny Lau

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Lyn Edinger U.S. Studies Scholarships Yashvardhan Badoloi, Hong Kong International School

ashvardhan Badoloi is “highly organized, incredibly efficient, and committed to service.” His zest, motivation, intellectual curiosity, leadership and diligence are simply “unrivaled.” He will be attending Harvard University in the coming fall semester. “Yash is always growing, learning and returning for more. This is just one way he reflects humility with his brilliance, always genuinely certain that there is more to learn,” according to his counselor. “His passion for learning is palpable, and his mind races with questions about the world – be it at a molecular, social, global, or universal level.” With an interest in behavioral economics and a fixation on data, Yash has done independent research on economics and human irrationality by extending his learning far beyond any high school courses. His work as a paid intern at Chinese University of Hong Kong is a confirmation of “his high-level ability to explore advanced economic theory…beyond what he has been taught.”

based on various economic theories of Milton Friedman, Friedrich Hayek and others. He runs a blog (Bardonomics) to record his thoughts and writes frequently for South China Morning Post. “How poverty can be tackled in a cost effective and efficient manner without breeding dependency and creating negative externalities like the degradation of the environment and strengthening of oppressive and wasteful governments” is a question he strives to answer. “I firmly believe that if we are to overcome the potent threats of inequality, hyper-consumeristic culture and limited freedom, it is necessary to adopt the kind of innovative, nuanced and balanced economic policy as Alvin Roth points out in his book, Who Gets What – and Why?” Yash is more than just his academic achievements. He has participated in a long list of extra-curricular activities as a student body senator for academics, chief editor of the school newspaper, leader of HKIS’s Math & Science Center, and founder of VolunteerConnect, a platform which through data analysis allows people to create and connect for community initiatives. Yash has been described as “a gift to humanity” – a commendation of his many humanitarian efforts which include serving as an unsolicited pro-bono independent college advisor during a school trip to the Philippines by implementing lessons on the theme of empowerment, working on construction projects and searching for alternatives on behalf of local students robbed of learning opportunities. Yash plans to attain a doctorate, perhaps concentrating in a field like macroeconomics, behavioral economics or development economics. In the future, he hopes to apply his economic thinking to problems of policy and development and to help formulate measures to solve key issues at an institution such as the World Bank or IMF.

Yashvardham Bardoloi, with his mother Deepti

In the aftermath of the financial crisis, he explored extensively the efficient market hypothesis, behavioral economics and bubble formation in financial markets

“I feel strongly that a key challenge facing governments and corporations today is how best to balance the eﬃciency of market forces and the compulsion to generate proﬁts with social equity and civic values,” he says.

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Jenny Ng, Diocesan Girls’ School

enny Ng is an “exceptional young scholar with natural curiosity and exemplary conduct.” She is friendly and polite, and always walks around with a smile. Her accomplishments, excellent interpersonal skills and strong desire to make a social impact reveal a passion to examine important global issues and to play a key role in addressing them.

Having written an erudite and eloquent essay on LGBT rights, Jenny has been incredibly brave to publish her views given the conservative nature of society and education towards LGBT rights in Hong Kong where “vocalized support is rare…and advancement in equal rights has been painfully slow.”

A soon-to-be freshman at Cornell University, Jenny has a special ability to integrate knowledge from socio-political, scientific and historical disciplines into coherent pieces and presentations, and her work is presented with “great flair and wit.” All her teachers agree that Jenny is a “remarkable student…with impressive analytical and numerical skills, and an ability to break down problems and to pose new ideas.” The notion that “there is a neurochemistry principle behind every human behavior” sparked her interest in understanding the human neural circuit and advancing cures for mental illnesses such as eating disorders and depression. “The potency of the brain never ceases to amaze me, and it affirms my desire to pursue a neuroscience concentration at university.” “The brain is not just a brain – the interaction of neuron activity and our environment does not only impact us, but it also has great scientific and social implications,” she adds. A top student early on, Jenny was awarded Subject Prizes in Chemistry, English Language and Chinese Language – a feat described as “exceptionally rare.” More recently, she was named a recipient of the Grose Literature Prize (English Literature), a Harvard Book Prize and the HarvEst Youth Leadership Award, and subsequently a delegate of the Global Citizens Youth Summit at the Harvard Faculty Club in Cambridge, Massachusetts. More than academic engagement, she is a strong advocate for equality, particularly in the LGBT community, and women empowerment. She has witnessed how homophobia penetrates Hong Kong adolescents’ daily experience – students using “gay” as an insult, teachers’ condemnation of LGBT communities in school and the fetishization of gay men on primetime TV.

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Jenny Ng, with her father Derek

“Though Hong Kong has a relatively low rate of physical assault cases against members of the LGBT community, apathy is equally detrimental to the development of equality,” she says. “The collective unwillingness of society to call out the ever-existing homophobia and across generations perpetuates the unhealthy stereotype that ‘gay is abnormal.’” The lack of sex education in the local educational curriculum is one contributing factor as sex remains a taboo topic, she believes. Yet, sexual empowerment is critical to the healthy development of individuals, especially among teenagers. “The infrequency of hate crimes does not equate progressiveness,” she stresses. “By adopting a passive attitude, we are accommodating intolerance. So, I along with a few of my friends decided to set up an LGBT support website to initiate a dialogue as one way to truly embrace the idea of equality enshrined in the Hong Kong Basic Law.”

Lyn Edinger U.S. Studies Scholarships Anderson Chan, Diocesan Boys’ School

egarded as a “studious and serious learner” by the teaching faculty, Anderson Chan has thrived as a student of the International Baccalaureate (IB) Diploma Program, possessing “an inquiring mind, international mindedness and critical thinking skills.” His areas of academic interest lie in both Sciences and Humanities, and he will have “no limit to his growth and achievements” as an incoming freshman at Columbia University. “I plan to major in economics and philosophy as I believe these principles oﬀer two lenses through which we interpret human desires and understand the world. I am particularly drawn to the study of the rational assumption and ethical justiﬁcations for economic systems, and I question whether idealized models based on the rational assumption can bring new insights into and predict real world phenomena.”

debate competitions but has also taken on the challenge of leading his teams. He never ceases to advance his knowledge outside of school, participating in summer programs at Oxford and Cambridge in the U.K. and the Chinese University of Hong Kong locally. His dedication to community service, motivated by a strong sense of social justice and humanity, is reflected in his role as a volunteer tutor at the Chicken Soup Foundation for underprivileged children in Tuen Mun, as a scout and volunteer to provide first aid at various community events, and as a mentor at the Learner’s Fraternity Club in school to provide his younger schoolmates with academic tutorial support. Growing up in Hong Kong, Anderson has come to appreciate the complexity of the increasingly globalized economy. “Globalization became my primary area of interest and led me to explore the conflict between the interests of states and the world economy. I reflected on how international institutions, without the check of democracy and acquiring greater influence under neoliberalism, may lead to greater instability and inequality.” The challenge facing Hong Kong, he believes, is that social disparities have more complex causes and do not necessarily point to a straight-forward solution. He is particularly concerned about the lack of social mobility within the teenage population – one of the root causes behind disparities. “Soaring housing prices and stagnant wages have limited teenagers’ capability of self-actualization, and they are often confined in sub-divided flats,” he says. “Many are discouraged by the competitive education system and suffer from extreme stress under the high-stake examination system that will possibly determine their future livelihood.”

Anderson Chan, with his father Raymond

Anderson is known to be “a natural-born orator, a conﬁdent and eloquent public speaker,” bearing a strong passion for debate and making speeches in both Chinese and English. Not only has he won awards in

With plans to attend graduate school and to specialize in economics, Anderson hopes to join the government and become a policymaker in the capacity of an economic institution to serve the larger community. “I hope to devise policies that alleviate the negative eﬀects brought by the globalized economy and build a more egalitarian society. We need to do more to tackle inequality.”

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Kristen Lam, German Swiss International School

utstanding, intellectually superior, super-friendly and nice, but also humble and kind, Kristen Lam is an over-achiever who “will go far in life.” She is curious about the world, constantly learning and participating in opportunities. She is “always positive and puts in her best eﬀort, and is a role model and mentor to other students.” She will be attending the University of Chicago.

“The award not only provided me with the funding to launch our start-up, but more importantly it sparked my entrepreneurial ambitions and taught me the importance of persistence and critical thinking in times of unexpected setbacks. I was very excited to learn that 97 percent of the platform’s participants were accepted to at least one of their top three university choices.”

Kristen is immersed in many extra-curricular activities as a leader, a volunteer, a musician, a sportsman and a young entrepreneur. Most notable is her involvement in supporting children development, tutoring ethnic minority students, providing peer support and co-founding Viewfinder, an online platform designed to guide high school students through their transition to college. “Growing up, I was always interested in examining how society shapes a person, and I am passionate about preserving our natural environment. It is my desire to be an entrepreneur with a start-up focused on children development and sustainability education… and to transform learning through innovation and technology.” “Education is an important part of environmental sustainability,” she believes. “To inspire even broader changes, there must first be social change. Sociology, therefore, is my core academic interest.” Her interest in sustainability began when she met an environmental entrepreneur. Through an internship, she witnessed how technology can enhance living and sustainability and was inspired to help raise environmental awareness among children by developing a game app. The launch of Viewfinder, an online peer-to-peer counseling and mentoring platform that pairs university students with high school students navigating through the college application process, was the result of winning Credit Suisse’s Young Entrepreneurship Award. During a Bloomberg TV interview, Kristen and her team shared their experiences of starting up a venture outside of school and becoming young entrepreneurs.

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Kristen Lam, with her father Edward

Personally, Kristen is grateful for having grown up in a family that values free play and exploration. “Throughout my childhood, there were no restrictions on creativity, whether it was building my dream house with Play-Doh or playing hide-and-seek with friends. My childhood playtime helped me discover my interests.” “Nowadays, play – which matters as much to the intellectual development of every child as it did for me – is given low priority,” she adds. “As a volunteer, I help kids to learn through play, and nothing is more enjoyable than seeing youngsters laugh and learn while using their imaginations to make capes out of tarpaulins and bamboo sticks.” “The human ability not just to develop solutions to the world’s problems, but also to redeﬁne the problems themselves, requires the genuine, boundless imaginative powers that free play can instill.”

Scholar Awards Kieran Fung, Hong Kong University of Science & Technology

ieran Fung spent his early years in Asia, mostly in Hong Kong, studying at an all-boys school before moving to Los Angeles for high school and San Diego for university. At the University of California - San Diego, he studied computer science, specializing in artiﬁcial intelligence and machine learning. He is currently an MBA student at HKUST. “I am fascinated with diﬀerent technology advancements and singularity theory, which is a school of thought about the potential outlook of future with the rapid development of science and technology,” he says. “I am very lucky and grateful to have friends from the start-up and technology communities in the U.S. and Asia as they can fuel my curiosity.” From an early age, Kieran was involved in various leadership roles: he served as a school prefect in primary and secondary school, led the Hong Kong Student Union at UC-San Diego, and started an entrepreneur club with the support of his fellow classmates at HKUST. He also spared time to volunteer in Hong Kong, mostly with the Lions Club, organizing multiple events and participating in the annual visit to rural China.

“Most importantly, through an MBA, I can interact with experts and business executives and pick their brains on many topics, and I can learn about the business landscape as well as tips and tricks in dealing with many diﬀerent business situations. I decided to do it in Hong Kong because of the focus on Asia, the mix of Western and Eastern cultures and knowledge, and the great vibe and variety of good food here.”

Kieran Fung

After graduating from university, Kieran founded his ﬁrst business venture in Los Angeles, an online career platform matching fresh graduates with companies and job opportunities based on the proﬁles and skillsets of candidates. About a year later, he returned to Hong Kong to join his family business in manufacturing and trading. There, he started to learn the traditional way of business, from supply chain management to sales and marketing.

“Although I have some experience from my start-up and family business, what I can learn in an MBA program will enhance my knowledge which can be applied in the future,” he explains. “With my undergraduate degree in computer science, I want to learn more about economics and other business-related skills, including soft-skills like presentations, negotiations and leadership development.”

In recent months, Kieran established his second business venture – a journey he believes will be quite different from his first endeavor because of the different ecosystem in Hong Kong and Asia. “I hope I can grow and scale my second start-up within three years. I also want to support anyone looking to start their own businesses, and I think I am heading in the right direction with what I’m doing in the entrepreneur club and design thinking club at HKUST.” Kieran is keen to give back to the community and is currently an intern at SOW Asia, an incubator and accelerator for social enterprises. “I want to be part of the driving force in social enterprise to have a larger impact for the good of community.”

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Shailendra Pamnani, University of Hong Kong

native of New York, Shailendra Pamnani achieved an exemplary academic record and other accomplishments in community service as an undergraduate student at Rutgers University (New Brunswick, New Jersey) where he was a member of the marching band’s drumline and practiced 10 hours a week to entertain some 50,000 fans during each NCAA football game. In his four years of undergraduate study for a major in Finance and Supply Chain Management, Shailendra completed two summer internships. He ﬁrst covered business operations at National Retail Transportation, Inc. where he pinpointed geographic hotspots by cargo volume and customized presentations for potential clients. In his second internship, he worked in enterprise operations and technology at Citigroup where he designed a PowerPoint presentation on the topic of resource strategy. On top of his academic achievements, Shailendra kept himself busy with community service. In college, he was Vice President of the Rutgers Association of Marketing and Strategy and a Residence Hall Association representative in charge of organizing social events for the community of residents. Later, despite his hectic work schedule, he volunteered to organize a career day for the visually impaired, and provided coaching and assistance in writing resumes.

Shailendra Pamnani

Shailendra is currently pursuing an MBA degree at the University of Hong Kong (HKU), after spending four years working for Moody’s Investors Service in New York. As an associate analyst, he was involved in the credit rating process for about 30 capital goods/manufacturing companies: building ﬁnancial

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models, analyzing financial statements, assessing liability structures and preparing rating recommendation memos. “After my undergraduate degree in Finance and Supply Chain Management, I decided to focus on finance and chose to work at Moody’s in New York. I worked in the Corporate Finance Group covering credit ratings of many U.S.-based manufacturing companies. In my spare time, like everybody else, I would do some traveling and reading, watch movies and play tennis and basketball.” Shailendra remains ambitious in advancing his learning. “As I continue to develop my career, I want to get a more holistic viewpoint of the global business environment through MBA courses, guest lectures and business visits,” he explains. “I decided to study at HKU because of its prestigious reputation and rankings, as well as its program length of just one year.” “The program also exposes me to different cultures and people of different professional backgrounds and helps in the development of my leadership and teamwork skills. During this period, I have studied not only in Hong Kong but also in Beijing and London, further expanding my academic and cultural learnings. My MBA degree in Asia will help as I believe future business growth will come from this region.” “And, of course, Hong Kong is a major financial center and strategically important to the Asian markets. Many of the global banks have a large presence in Hong Kong,” he adds. “I believe that as Asian countries continue to grow economically, Hong Kong will compete with Shanghai and Singapore to meet the financial needs of consumers and businesses.”

Scholar Awards Michael Au, Chinese University of Hong Kong

ichael Au is a seasoned salesforce manager with extensive experience in the luxury sector across Asia. He is a specialist in relationship management and the implementation of client-focused business development plans. He expects to complete his MBA degree this year with a concentration on entrepreneurship from the Chinese University of Hong Kong (CUHK). Outside of work, he serves on the board of directors of the Hong Kong International School Alumni Association. He is an avid cycling enthusiast and has completed a 1,000-km tour around the perimeter of the Taiwanese peninsula in 2016. With a passion for cycling, he volunteers as a bicycle mechanic for the Crossroads Foundation, where he repairs old bicycles before they are sent to third-world countries. He is also a new father to his 7-month-old daughter. Professionally, he is co-founder and chief consultant of a wine and rare spirits trading company, oﬀering bespoke services in collectible wine procurement. Prior to that, he held several positions in sales and marketing, leading teams to achieve proﬁtable results for various well-known luxury brands, most notably in the trading market of high-end wine.

“Recognizing and capitalizing on a business opportunity at the time, I pivoted my career from art to wine and I became the founding specialist for the auction house’s fine wine department in Asia,” he recalls. “It was an exciting challenge to be at the helm of a business unit in a thriving market. It certainly allowed me to acquire the necessary skills in relationship management and consultative selling as well as deal negotiations with international stakeholders.” Seeking to expand his business skills, Michael went on to devise retail and operational strategies for a local firm, before joining a historic British wine merchant where he mentored a team of sales associates and helped them to develop relationship management skills. He eventually started his own business to seize a growing opportunity in the spirits market, and is leveraging his flexible schedule to pursue an MBA degree.

Michael Au

A graduate with a degree in Fine Arts at the Parsons School of Design in New York, Michael returned to Hong Kong for an opportunity to join the contemporary arts department of a major international auction house. His career in the wine & spirits industry started around the time the Hong Kong government decided to abolish the

city’s wine tax in 2008.

“Hong Kong is a dynamic city and is very friendly to the world of commerce, besides having some trouble opening a bank account in the beginning,” he says. “Overall, Hong Kong has a great ecosystem for entrepreneurs.” “Because I have been looking for a way to add to my management toolkit in a structured manner as well as a business education to complement my degree in ﬁne arts, an MBA was a clear choice. As I envision my future career to remain in Asia, CUHK, with a focus on entrepreneurship and leadership skills, was also a clear choice.”

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Prize Book Awards

Charitable Foundation trustees (from left) Gage McAfee, Mark Michelson, Jon Zinke and Tom Gorman present local high school students with the annual Prize Book Awards.

The Prize Book Awards are part of an annual educational incentive scheme to recognize secondary students, with an objective of contributing to the education system of Hong Kong. For more than 30 years, AmCham’s Charitable Foundation has worked closely with local and international schools across the city in honoring students who are poised to become community leaders of tomorrow. This year, a total of 20 students – who have demonstrated a combination of academic excellence, achievement in community service and leadership in a variety of projects both inside and outside of the classroom – are recognized in an award ceremony. Each student is presented with a HK$1,000 book coupon, a certiﬁcate of achievement and a set of The Americans, a trilogy by Daniel Boorstin.

AmChamHK 7 • 2017

2017 Recipients of AmCham’s Prize Book Awards Ronny HU Wing SO Ian CHU Ryan MAK Charlie YEP Choi-Wa FONG Rupert HITSCH Chi Yan LAM Subhadra NUNEZ Maxwell SHEREMETA Alexander MAK Dharesha JHAVERI Yuti KHARE Tiﬀany CHAN Andrian CHAN Moet NAKAYAMA Man-Siu PUN Shiney CHONG Nadia CHENG Sin-Sum CHOI

American International School Carmel Divine Grace Foundation Secondary School Chinese International School Diocesan Boys' School Diocesan Girls' School DMHC Siu Ming Catholic Secondary School German Swiss International School Heep Yunn School Hong Kong Academy Hong Kong International School International Christian School Island School King George V School Munsang College Sha Tin College South Island School St. Paul's Co-Educational College TIACC Woo Hon Fai Secondary School West Island School Yuen Long Merchants Association Secondary School

In Support of

Local Charities The AmCham Charitable Foundation, in partnership with the American Women’s Association (AWA), provides ﬁve Hong Kong-based charities with charitable grants in support of philanthropic causes dedicated to the underprivileged and needy as a way of giving back to the community

By Kenny Lau

LoveXpress Foundation Limited

ovexpress Foundation Ltd is a non-proﬁt charitable organization founded in 2013 and registered as charity in 2015. It aims to promote social harmony and inclusion among other social enterprises, welfare initiates and commercial sectors in Hong Kong and to support the needy by encouraging synergy among small- and medium-sized non-proﬁt organizations.

In other words, it is a mutual supporting platform helping to promote charity marketing by connecting people and organizations and by “nurturing love and social integration in the community of Hong Kong through a collaborative platform with partners from the welfare and commercial sectors,” says Noel Lam, Vice Chairman of Lovexpress Foundation. “Currently most welfare or charity services are operating in pillars or are largely focusing on the needs of individuals, but support for their family, their network or the utilization of social resources might be insufficient,” Lam explains. “Without a holistic approach, it often leads to a disintegration of resources and crippled services.” “The idea is to help smaller non-profit institutions promote their work and integrate their resources, thereby creating increased synergy and maximizing the services provided to the beneficiaries.” In recent years, LoveXpress has been focusing on serving the autistic community through promoting

AmCham Charitable Foundation Chairman Peter Levesque (far left), AmCham President Tara Joseph (second from right) and Beth Hall of AWA (far right) present an award to LoveXpress Foundation.

social awareness, building families supportive network and launching career development programs. “To do that, we’ve engaged various stakeholders, namely parents of the beneﬁciary, professional services providers, academia, commercial sectors and volunteers,” Lam points out. “Our emphasis on an integrated approach in services delivery has had good results, and we have had self-generated initiatives from parents to explore and appreciate the uniqueness of their autistic children,” she says. “Throughout the process, we’ve seen hope sparkle among these families, with a higher level of conﬁdence and a willingness to venture into an unfamiliar area, as a result of growing awareness, acknowledgement and empowerment.”

AmChamHK 7 • 2017

Justice Centre Hong Kong

nitially established in 2007 and re-launched in 2014, Justice Centre Hong Kong is a domestic NGO working to protect the rights of refugees, survivors of torture, human traﬃcking and forced labor, running on a shoestring budget of just HK$4.5 million to assist over 650 people seeking protection in Hong Kong each year. “Refugees we assist come from countries such as Yemen, Central African Republic, Eritrea, Egypt and Pakistan,” says Melanie McLaren, Head of Fundraising and Development at Justice Centre Hong Kong. “All refugees are screened to identify their immediate needs and the merits of their protection claim, to ensure we prioritize our limited resources to assist the most vulnerable.”

Refugees in Hong Kong only have access to emergency medical care, and can find themselves homeless and without food when their request for government welfare assistance is still in process after filing their protection claim. And they have no right to work even if their protection claims are accepted, and must survive on food coupons worth HK$40 per day and HK$1,500 monthly rental allowance. This rarely permits refugees to live in suitable accommodation; rather, they are pushed to the fringes of the city and live in poverty. “It means refugees in Hong Kong face serious challenges recounting the traumatic events which they have experienced, in a linear and legally coherent manner. This can have a hugely negative and irrevocable impact on the outcome of their protection claim.” Refugees in Hong Kong have fled persecution, sexual and gender-based violence, rape and torture. They may suffer from Post-Traumatic Stress Disorder (PTSD), Major Depressive Disorder (MDD), chronic anxiety or suicidal thoughts, McLaren points out.

AmCham Charitable Foundation Chairman Peter Levesque (far left), AmCham President Tara Joseph (second from right) and Beth Hall of AWA (far right) present an award to Justice Centre Hong Kong.

“The long-term impact of our services is that the needs of refugees and their families are met holistically, and they have a signiﬁcantly better chance of their protection claims being accepted, enabling refugee families to start a new life in a third country. Without support, they risk having their protection claims dismissed and they face forcible repatriation to face torture, persecution or even death in their countries of origin.”

“At times, refugee women go without medical care for issues such as reproductive health, and they often live with debilitating mental health problems. Without families or community support, refugee women can be extremely isolated and have great diﬃculty having even their most basic needs met, resulting in feelings of extreme helplessness and disempowerment.” In 2016, Justice Centre has assisted more than 650 refugee men, women and children; over 120 torture survivors received intensive legal and psychosocial support in 2016; and 14 of the 33 successful cases of protection claims in Hong Kong were assisted by Justice Centre. Chances of refugees’ protection claims being accepted are nearly 50 times higher if they receive intensive legal and psychosocial support from Justice Centre where over 500 volunteer caseworkers and interpreters have received training since 2007.

AmChamHK 7 • 2017

Integrated Brilliant Education Trust

he Integrated Brilliant Education Trust (IBET) was founded in 2014 as a registered charity to provide educational support to Hong Kong’s underprivileged and marginalized ethnic minority students. The goal is to empower these children with the requisite educational life-skills needed to blossom and integrate into Hong Kong’s mainstream society.

AmCham Charitable Foundation Chairman Peter Levesque (right) and AmCham President Tara Joseph (center) present an award to the Integrated Brilliant Education Trust.

“The underprivileged ethnic minority children have somehow fallen through the gaps for no fault of their own,” says CEO & Co-founder of IBET Manoj Dhar. “Having been born and grown up in Hong Kong, this is home for them. However, due to the language barrier, they are neither able to fit in here nor are they able to fully immerse themselves in their respective native countries.” “They need support to fully integrate in the mainstream society and become an asset to Hong Kong. By providing high educational support in the Chinese language to assist students in their ongoing education, it helps with their progress of learning in school and their seamless integration into the local workforce.” “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime,” Dhar explains. “Equipping the children who are the future of tomorrow with language skills and a good foundation in all subjects will empower them for life. Our vision is to have an inclusive society where everyone, irrespective of their nationality, gets a chance to build a bright future.” IBET aims to equip and encourage them to pursue and complete studies in local schools and tertiary institutions in Hong Kong. Since becoming operational in June 2015, it has provided tutorial support to well over 300 underprivileged ethnic minority students of various age levels – from kindergarten to secondary school – in classes six days a week.

Students have benefitted immensely from educational trips to the Hong Kong Science Museum, Kadoorie Farms and Botanical Gardens, Hong Kong Wetland Park, and Chinese New Year Fair at Victoria Park. As participants in the Social Integration Program, children are prepared well in advance to communicate in Cantonese during these trips and avail of the rare opportunities to practice their Chinese language skills in a public environment. “Such out-of-classroom experiences ensure language and cultural immersion and their integration into Hong Kong’s social fabric,” Dhar believes. “In just about 2.5 years, we have witnessed students winning trophies for academic excellence, going from a lower to an upper band school based on their grades or even being able to get passing marks in Chinese which was previously impossible.” “The joy, the boost in confidence and the glimmer of hope in their eyes and a resolve to have a better future is what IBET is achieving,” he adds. “I am sure that with the right skills, they will be finally able to break out of the cycle of poverty they have been stuck in for generations.”

AmChamHK 7 • 2017

Project Concern Hong Kong

roject Concern Hong Kong was set up by Dr. James Turpin in 1961 to provide medical service on a floating clinic to those people living in boats and other charitable service to the sick and poor. The first medical clinic began operation in the Walled City of Kowloon in the late 1960s while the first dental clinic was set up in Sau Mau Ping in 1973 to serve the low-income community. The mobile dental service was launched in 1979, and the current fleet of vehicles are of the fourth generation. In 1985, Project Concern was locally incorporated and registered as a non-profit organization; today it continues with seven estate dental clinics, three mobile dental vehicles and one outreach dental team, filling a service gap in the community for more than 45,000 patients each year whom include the elderly, low-income individuals, ethnic minority, and the mentally challenged.

AmCham Charitable Foundation Chairman Peter Levesque (right) and AmCham President Tara Joseph (center) present an award to Project Concern Hong Kong.

“Those with low incomes are simply much less able to aﬀord private dental service,” says Babe Chan, Executive Director of Project Concern. “The government provides dental service to civil servants, their dependants and civil servant pensioners, but

AmChamHK 7 • 2017

services are limited to the public at designated clinics for pain relief and extraction only. Furthermore, only primary school children can beneﬁt from basic and preventive dental care provided by the government in a scheme which excludes kindergarten and secondary school students, Chan notes. The Healthcare Voucher Scheme and the Community Care Fund Elderly Dental Assistance Programme only subsidize eligible low-income elders for dental treatment. The average number of teeth among the elderly in Hong Kong was 17 in 2001, and it went up to 19.3 in 2011. About 6 percent of the elders is “edentulous” (no teeth) – far below the WHO concept “80/20,” or keeping 20 or more teeth by the age of 80, Chan points out. “We hope our service would also raise the level of self-awareness about oral hygiene in the community.” As such, Project Concern partnered with the University of Hong Kong’s Faculty of Dentistry to organize a series of “Love Teeth Days” across various districts of Hong Kong, namely Tung Chung, Shatin, Tsz Wan Shan and Tin Shui Wai. HKU professors, dentists and dental students were onsite to provide oral health screening and immediate treatment such as simple extraction and pain relief. In 2015, more than 500 people participated in games, Q&A counters and education booths of each “Love Teeth Day,” and roughly 100 adults and 100 children received free oral health screening, dental treatment and ﬂuoride treatment. In 2016, it continued with the Jockey Club Smiley Action Programme funded by the Hong Kong Jockey Club Charities Trust. The program not only included free oral health screening and on-site treatment but also dental sponsorship for the disadvantaged, a “Smiley Action” ambassador scheme and a poster design competition – all to promote oral hygiene to the public.

SAHK

n the early 1960s, there was an increasing number of cerebrally damaged infants surviving to childhood in Hong Kong, but there was also a lack of facilities in the community caring for these children. In 1963, Dr. Elaine Field, a professor in Paediatrics at the University of Hong Kong, initiated to form a committee with the mission of providing spastic children with special education and care.

AmCham Charitable Foundation Chairman Peter Levesque (far left), AmCham President Tara Joseph (second from right) and Lisa Levesque of AWA (far right) present an award to SAHK.

The Hong Kong Association for the Spastic Children, with a seed grant of GBP1,500 from the Spastics Society of England, was subsequently formed, starting a specialized service with limited resources. “We set up the first teaching class for nine cerebral palsied children by borrowing a room in the headquarters of The Boys’ and Girls’ Clubs Association of Hong Kong,” notes Lo Siu Fai, Manager of SAHK (current name of the association). Later in 1967, it expanded to include services for adults and was renamed “The Spastics Association of Hong Kong,” and in 1976 it was incorporated as a limited company. In 2008, it officially became SAHK, signifying a determination to “Succeed and Advance.” Today, SAHK is a dedicated provider of a wide range of rehabilitation services for persons with disabilities so that they could realize their full potential, enhance their independency and integrate into the society, Lo points out. “We provide four core services, and they are dedicated to supporting children and family, special education, adults and the community.” “Children and Family Support Service” provides educational and therapeutic service to children with special needs, such as Autism Spectrum Disorders (ASD), learning difficulties, developmental delays and physical disabilities. It aims to induce and develop children’s potentials in various aspects while providing support to their families or caretakers.

“Special Education Service” consists of three special schools providing primary to secondary mainstream and adapted curricula for some 350 children with physical or other disabilities as a nurturing ground for their “moral, intellectual, physical, social and aesthetic development.” “Adult Service” provides 1,800 places for persons with disabilities at the age of 15 or above in hostel care, rehabilitation training and vocational rehabilitation services. It focuses on enhancing their self-care ability and community integration through training of living and social skills, interest nurturing, and development of vocational skills. “Community Support Service” is a source of rehabilitation and support services for persons with diﬀerent disabilities in the community. They include home-based rehabilitation, day care and training, transitional residential care, rehabilitation seating design and manufacture as well as wheelchair repair. “With the needs of those it serves at heart since 1963, we’ve been successful in developing services that are diverse and comprehensive,” Lo says. “We believe that persons with disabilities are able to realize their full potential, maximize their independence and self-reliance, and become participating members of society.”

AmChamHK 7 • 2017

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CHAMBER NETWORKS

Conversations with an AmCham Leader...

Genevieve Hilton, Head of External Communications, BASF

Caroline Johnson, General Manager, HK & Philippines, AbbVie

Simon Ogus, CEO, DSG Asia

China Affairs... Fujian Province Delegation

Jiangxi Province Delegation

Shenzhen Healthcare Tour Representatives of Xiamen FTZ

AmChamHK 7 â&#x20AC;¢ 2017

Luncheons & Events... Yumiko Ono (WSJ) and Kristie Lu Stout (CNN) on “fake news”

Geoﬀrey Parish (U.S. Consulate General) on InvestUSA

John Timpany (KPMG) on aircraft leasing

AmCham Media Cocktail

Expert panelists on healthcare transparency in Hong Kong

InterCham Cocktail

AmChamHK 7 • 2017

MARK YOUR CALENDAR

The Latest Development Sep 06 and Policies at Qianhai The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone officially became part of China’s “Twelfth Five-Year Plan” six years ago. It has two goals: one is to develop the cooperation between Shenzhen and Hong Kong in all areas of modern services, and the other is to be a testing ground for opening China’s financial system. This event will cover: • The latest developments in Qianhai, particularly relating to facilitating Hong Kong businesses operating in Qianhai • How Qianhai is positioned relative to other parts of China, and whether is it a good platform/channel for trade • The developments in cross-border e-commerce and modern logistics Dr. Witman Hung, JP is currently the Principal Liaison Officer for Hong Kong, Shenzhen Qianhai Authority. A seasoned ICT professional and angel investor, Witman has worked in the industry for almost 30 years. He is currently President of the Internet Professional Association, Executive Chairman of Chinese Big Data Society and Vice Chairman of the Monte Jade Science and Technology Association of HK. Witman is a Chartered Information Technology Professional and a fellow of the British Computer Society, the Chartered Management Institute, U.K., the Hong Kong Institute of Directors, the Hong Kong Computer Society and the Internet Professional Association. Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road, Central, HK

Time: 12:00pm - 01:45pm

Fees: Member: HK$290 Non-member: HK$410

2017 China Conference: Sep 08 China’s Globalization Leap At the start of the year in Davos 2017, President Xi Jinping showed his intention to position China as a global leader. That push continues through to China’s trade pacts, its Belt and Road initiative, outbound investments and even climate change. Beijing is clearly on a quest to promote Chinese inﬂuence globally.

For information, see website: www.amcham.org.hk Tel: (852) 2530 6926 Fax: (852) 2810 1289 Email: cchan@amcham.org.hk

What are the prospects of a globalized China? How should business leaders engage the dramatically evolving China and US relationship? How will developments aﬀect Hong Kong? AmCham HK will host its annual China Conference on Friday, September 8, 2017 at the Four Seasons Hotel Hong Kong. The conference is one of our signature events, where China experts, regional and international business leaders discuss the outlook for China and its associated challenges and opportunities. Venue: Four Seasons Hotel Hong Kong Grand Ballroom, Level 2 8 Finance Street, Central, HK

Time: 8:00am - 3:00pm

Fees: Member: HK$1,980 Non-member: HK$2,280 Corporate table (10 pax): HK$24,000

Real Estate Focus: Sep 14 Asia's Growing Tech Hubs The technology sector has upgraded its image with first-rate office space in prime office locations. “Silicon Valley”- like pockets have popped up across Asia in cities such as Shenzhen and Bengaluru. Similar to financial services companies clustering near stock exchanges, tech companies are building hubs in Asia to aid their business growth, with prime office locations providing better access to talent pools. Evidence indicates that tech firms, including the major hardware designers, internet and e-commerce players, are no longer relegated to less expensive, lower quality buildings. Focus areas to be included: • Tech firms are some of the most active occupiers in key Asia Pacific markets, having leased 1 in 6 sqm over a one-year period • We will explore market comparative advantages and how various tech occupier segments prioritize these • Agglomeration economies, and specifically availability of talent, are key drivers of location choice within markets As part of the JLL Asia Pacific Research team, Christopher Clausen works with analysts located in tier one Asia Pacific markets to track and report on commercial real estate sectors. One of his key initiatives is to review and refine local market research methodologies to continue improving the quality, accuracy and comparability of data across market. Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road, Central, HK

Time: 8:00am – 9:30am

Fees: Member: HK$180 Non-member: HK$300

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