AustCham News April 2019 - Issue 208 by The Australian Chamber of Commerce in Hong Kong

香港澳洲商會

The Australian Chamber of Commerce Hong Kong

austcham news • Issue 208 | APRIL 2019 5 Australia – Hong Kong FTA Signed 14 The New York Times President & CEO in Conversation 24 Banking Royal Commission – What Now?

Simply the Best AustCham Commonwealth Bank Hong Kong Sevens Lunch Returns

Where Business, People and Ideas Connect

www.austcham.com.hk

ANNOUNCING KEYNOTE SPEAKER

THE HON. MRS CARRIE LAM CHENG YUET-NGOR GBM, GBS THE CHIEF EXECUTIVE OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION Q&A WITH

MS MAGGIE ZHOU

MANAGING DIRECTOR OF ALIBABA GROUP AUSTRALIA AND NEW ZEALAND Tuesday 28 May 2019 From 6:30pm Grand Hyatt Hong Kong AustCham Westpac Australia-China Business Awards title sponsor:

Award sponsors:

To view the 2019 ACBA Finalists please visit www.austcham-acba.com/2019-finalists

Chairman's Column I am pleased to announce that the 2019 Annual General Meeting (AGM) was held on 27 March. As I mentioned in my Chairman’s report, the Chamber continues to renew and remain relevant amidst a challenging environment in the year of 2018, with the appointment of a new Chief Executive, Jacinta Reddan. While events remain a core function, the new leadership has taken a strategic decision to raise awareness of the influence and powerful voice of the members of AustCham. I was delighted to formally welcome our three new Board of Directors and I would like to take this opportunity to introduce you to them. Wendy Tong Barnes, Chief Corporate Affairs Officer of CK Infrastructure Holdings Limited, is also the Chief Corporate Affairs Officer of CK Asset Holdings Limited and CK Life Sciences Int’l., (Holdings) Inc. and the Deputy Chief Executive Officer of Hui Xian Asset Management Limited. She has been actively engaged in the Chamber as a CK delegate for more than 20 years, participated in numbers of functions and promoted many of them by inviting business associates to events. Wendy is also a member of the membership committee of AustCham.

austcham news issue 208 Feature

These new board directors bring a wealth of diverse experience and insights across a variety of industries which I believe complement the strengths of our current Board and to the Chamber as a whole. I look forward to working with them in the coming year. Earlier this month we celebrated the Hong Kong Sevens weekend with the return of our highly-anticipated AustCham Rugby Sevens Lunch which was an enormous success. I would like to extend a big thank you to all of you who joined us at this very special lunch. We are very grateful to our title sponsor Commonwealth Bank of Australia for being the sponsor for 21 consecutive years, together with other supporting partners, sponsors, Platinum Patrons and members for their unfailing support of this event. Finally, it is with great pleasure that I invite you to the 2019 AustCham Westpac AustraliaChina Business Awards (ACBAs) Gala Dinner which will be held on 28 May at the Grand Hyatt Hong Kong. I am also pleased to announce that HKSAR Chief Executive Mrs Carrie Lam will be our keynote speaker. The gala dinner promises to be a fantastic celebration of the success of Australian, Hong Kong and Chinese businesses. I look forward to seeing you there. Qantas sleep banner ad 195x55mm hires.pdf 1 4/8/2017 15:10:04 YoursCsincerely,

Andrew Macintosh chairman@austcham.com.hk

AustCham Commonwealth Bank 10

Rugby Sevens Lunch AustCham MGSM CEO Forum

Series

“Read All About It” – The New York Times AustCham’s Annual General

Simone Wheeler, Global Head - Group Communications of CLSA Limited, is an experienced specialist in corporate affairs, reputation management, media and analyst relations. Simone is Chair of our Women in Business Network and has been heavily engaged in advancing women in business and driving gender diversity in the workplace. Ivy Au Yeung is Chief Executive Officer of ANZ Hong Kong. Ivy is an international banker with more than 30 years of experience with strong track record in relationship management, credit and product management across Asia Pacific. She has been working with the Chamber on a number of events, and her experience in ANZ and other government advisory roles will contribute to the Chamber. She is also a member of the innovation committee of AustCham.

Australia – Hong Kong FTA Signed

Meeting 2019 News 18 New Members 19 Australia Focus

How to Vote in the Australian Federal Election Hong Kong Focus

GBA: “Once in a Generation Opportunity” for Hong Kong Committees in Action 24

Corporate Profile

On the Scene

Mix at Six NZ Fundraiser

austcham news Online version

Chamber Chatter

What’s Trending

oo many years ago, I was lucky enough to enjoy a twoweek work experience stint at my local daily newspaper, The Warrnambool Standard, while a 15-year-old schoolgirl. This led to an almost three-year part-time job after school and on to an early career in journalism. The love of news media and an insatiable curiosity have stayed with me to this day.

So it was an extraordinary honour to be in conversation with the CEO of one of the world’s most venerable media institutions, The New York Times. With Australia now the NYT’s third largest market outside the US, it was fascinating to have the access to Mark Thompson’s insight and perspectives on everything from Donald Trump to Brexit, to the polarisation of political debate and the future of western democracy. It was also heartening to hear him speak of the need to invest in quality journalism as people who value it (and there are still many out there) will pay for it. As part of the Chamber’s MGSM sponsored CEO Series, this was an unparalleled opportunity for members to have access to a global influencer. And he couldn’t have been a nicer guy - as well as incredibly clever, of course. And so from the sublime to a Federal election campaign. The Wall Street Journal’s headline – “Australia to choose another PM – this time by election” sums up the mood with many of you simply wanting certainty and a clear way forward, particularly around a much-needed national energy policy. Look out for details of an AustCham election night get together on Saturday 18 May to watch the inimitable Antony Green take us through the election result as it unfolds. Details on how to vote can be found in this issue. With the campaign called, comes the end of the much feared proposed Capital Gains Tax against the family home. The bill, which was due to be passed back in May, stalled in the Senate after intense lobbying by many of you in an integrated advocacy, media and member engagement campaign. This has saved many of you hundreds of thousands of dollars but more importantly, it demonstrates the power of a unified voice and of the value of your AustCham membership. It means that Australians need no longer fear being penalised for working overseas and we were heartened by the support of Opposition Treasurer Chris Bowen who recognised the long-term impact of such a move. Just a few short weeks until the prestigious Westpac Austcham Australia China Business Awards 2019 and we have a stellar line-up of speakers. We are particularly honoured to have Hong Kong’s Chief Executive Carrie Lam agree to address the gala dinner when she will speak about the Greater Bay Area and innovation. This is sure to sell-out so book your corporate table now. Last but certainly not least, I would like to extend a very warm welcome to Asia Miles who have joined the AustCham family as our newest Platinum Patron. Our thanks to CEO Paul Smitton and his team for coming on board and their support of the Chamber and of our members. Jacinta Reddan, Chief Executive, AustCham

AustCham Platinum Patrons

April 2019

Published By: The Australian Chamber of Commerce in Hong Kong Room 301-302, 3/F, Lucky Building 39 Wellington Street, Central, Hong Kong Tel: +852 2522 5054 Email: austcham@austcham.com.hk Editorial Committee: James Kelly Jacinta Reddan Advertising: Email: advertising@austcham.com.hk

Where Business, People and Ideas Connect The Australian Chamber of Commerce in Hong Kong is Australia's largest international chamber with about 1,400 members representing about 500 Australian and Hong Kong based companies. It's the largest Australian business grouping outside the country and the second largest of 28 International Chambers of Commerce in Hong Kong. The AustCham mission is: To promote & represent business & values while enabling members to connect, engage & grow bilateral relationships. Disclaimer: The views expressed in this publication are not necessarily those of the Australian Chamber of Commerce in Hong Kong, its members or officers. The Australian Chamber of Commerce in Hong Kong takes no responsibility for the contents of any article or advertisement, makes no representation as to its accuracy or completeness, and expressly disclaims any liability for any loss however arising from or in reliance upon the whole or any part of this publication.

Printed on environmentally-friendly paper

Feature

The Secretary for Commerce and Economic Development for the HKSAR, Edward Yau, and Australian Minister for Trade, Tourism and Investment, Simon Birmingham, signed the FTA in Sydney on 26 March, in the presence of Australian Consul-General Michaela Browning.

Australia – Hong Kong FTA Signed The Australia - Hong Kong Free Trade Agreement (A-HKFTA) was formally signed in March, marking a significant milestone in our mutual trade and investment relationship reinforcing our long-standing cultural and business ties. Outcomes at a Glance The Australia-Hong Kong Free Trade Agreement and the Investment Agreement mark a milestone in Australia's substantial bilateral trade and investment relationship with Hong Kong. Together they represent an important and valuable addition to underpin the engagement with our 12th largest trading partner. Hong Kong is Australia's leading business base in Asia, reflecting the unique advantages of the 'One Country, Two Systems' framework with Hong Kong enjoying a high degree of autonomy. Hong Kong is a leading financial and business centre in the region, Australia's fifth largest source

of investment, and a platform market to showcase Australia's premium goods and services to Asia and the world. In 2017-18, Australia's total goods and services exports to Hong Kong were valued at AU$14.5 billion. Hong Kong was Australia's fifth largest source of inwards investment in 2017 ($116.6 billion). A-HKFTA, together with the Investment Agreement, is a statement from two committed APEC economies about the enduring value each accords the development and maintenance of contemporary trade rules. The Agreements lock in openness to each other's markets and leverages our deep historical links. The A-HKFTA complements the China-Australia FTA, and our other FTAs in Asia, including bilaterally with Japan and Korea, and regionally with ASEAN. Goods

Marking the occasion in Hong Kong with the Director-General of Trade and Industry Salina Yan are Australian Consul-General Michaela Browning, Deputy Consul-General Ken Gordon, and Assistant Director-General of Trade and Industry Owin Fung.

Hong Kong does not currently apply tariffs to goods imported from Australia, but until now has had the right to do so under the World Trade Organization (WTO) Agreement. A-HKFTA provides: • reciprocal elimination of import tariffs, giving certainty for Australian exporters that Hong Kong will continue to provide duty-free entry; • streamlined wine labelling requirements, with a commitment to improve transparency of regulations; and • a mechanism to enhance collaboration between regulators, and to facilitate speedy resolution should consignments of perishable goods be delayed at the border. cont P.6

Feature cont from P.5

Services

A-HKFTA secures guaranteed access across priority service sectors into Hong Kong's significant and growing international services market, and provides cutting-edge rules to address impediments to trade for Australian services suppliers operating in Hong Kong with a physical presence, or virtually. In a nutshell, A-HKFTA provides: • guaranteed access for Australian suppliers of financial, professional accounting, engineering and construction, education, transport and logistics services; • guaranteed access for Australian lawyers to provide legal advice on Australian and international law on a cross-border basis; • streamlined establishment requirements for Australian banks seeking to establish in Hong Kong as fully incorporated banks; • mechanisms to work towards mutual recognition of professional qualifications and registration; • enhanced cooperation between educational institutions and relevant government agencies in the areas of quality assurance, recognition of qualifications, online education, distance education and blended learning models; and, • guaranteed temporary entry to Hong Kong for Australian professionals including intra-corporate transferees (and their spouses and dependants), installers and servicers and business visitors. E-commerce • Delivering rules to ensure vibrant digital economic links between Australia and Hong Kong was a significant priority for this Agreement. For the first time with any trading partner, Hong Kong has committed to free crossborder data flows (without mandatory local data storage requirements). This outcome enhances Hong Kong's reputation as an e-commerce hub, and provides Australian business, including SMEs, with guaranteed competitive reach into the East Asian region.

discriminatory practices or expropriation. The Investment Agreement contains an Investor-State Dispute Settlement (ISDS) mechanism which reflects contemporary developments in investment policy. This includes: • safeguards to protect the government's ability to regulate to pursue national security and legitimate public policy objectives such as public health, the environment and safety; • procedural safeguards such as transparency requirements, expedited review of claims manifestly without legal merit, time limits on claims, and a Code of Conduct for arbitrators; • carve-out for tobacco control measures; and • carve-out for public health measures related to the Pharmaceutical Benefits Scheme, Medicare Benefits Scheme, Therapeutic Goods Administration and Office of the Gene Technology Regulator. Improving the business environment A-HKFTA and Investment Agreement will also support the competitiveness of Australian commercial interests by improving transparency and providing more certainty to doing business. Highlights include: • intellectual property rules building on the WTO Agreement on Trade-Related Aspects of Intellectual Property; • a commitment to maintain legal regimes that target anticompetitive business practices and enforce consumer protection in Australian and Hong Kong markets; and • rules ensuring advance publication and impartial administration of all laws, regulations and procedures related to commitments made under A-HKFTA. What happens now? Australia will follow the domestic treaty making processes to ratify the agreement. This will include tabling the text of the agreement in Parliament and an inquiry by the Joint Standing Committee on Treaties (JSCOT). This will happen in the second half of the year at the earliest following the Federal Election. Hong Kong will then ratify it.

Investment A-HKFTA will promote two-way investment flows between Australia and Hong Kong, and help attract vital capital into new and existing industries in Australia. Consistent with the threshold provided to a number of Australia's FTA partners, the threshold at which private Hong Kong investments in non-sensitive sectors are reviewed by the Foreign Investment Review Board has been increased from $261 million to $1,134 million. Australia has reserved the right to maintain its existing review process, including the ability to screen investments in sensitive sectors and residential land. The 1993 Agreement between Australia and Hong Kong for the Promotion and Protection of Investments will terminate upon entry into force of the new Investment Agreement. The Investment Agreement contains rules to protect the substantial investments in each other's economies from April 2019

For full details of the A-HKFTA and Investment Agreement please refer to https://dfat.gov.au/trade/agreements/not-yet-in-force/ahkfta/Pages/default.aspx or the Hong Kong Department of Trade and Industry https://www.tid.gov.hk/english/ita/fta/hkaufta/index.htm

Feature

AustCham’s FTA Breakfast Briefing

ithin days of the Sydney signing ceremony, AustCham members received a breakfast briefing on what the FTA would mean for business with two of the key people involved with the negotiations, Australian Consul-General Michaela Browning and Hong Kong’s Director-General of Trade and Industry Salina Yan, as guest speakers. The session was moderated by former international trade negotiator Stephen Olson, from the event sponsor Hinrich Foundation. ANZ Hong Kong CEO Ivy Au Yeung also joined the discussion to provide a business perspective. “In the goods area, with zero tariffs and trade facilitation measures, we look forward to increased bilateral trade flow,” said Ms Yan. “Using 2017 figures, we estimate that some HK$16 million in tariff expenditure will be saved annually.”

Ms Browning said this FTA was strategically and commercially very significant, and signals the strong relationship between Australia and Hong Kong. Asked about the contentious issue of a double taxation agreement, Ms Browning said it is not usually included within a FTA. This is an issue AustCham has been campaigning on and will continue to do so. Ms Au Yeung said from a business perspective, the FTA provides certainty. Other positives from the agreement include the significant increase to the investment threshold and the arrangements relating to data storage which would cut business costs. Event sponsor

HONG KONG Connect and Excel

The Australia – Hong Kong Free Trade Agreement and Investment Agreement provide a solid foundation for even stronger bilateral ties. With sound fundamentals, a strategic location, advanced soft and hard infrastructure and world-class talent, Hong Kong is the best place in Asia for Australian businesses to connect and excel.

Asia’s No.1 and World No.8

for judicial independence (World Economic Forum: Global Competitiveness Report 2018)

Global outlook, global standards • Interwoven and complementary networks of highly knowledgeable and experienced people and businesses who deeply understand global markets and consistently deliver world-class services to international standards in law, finance, shipping, insurance and professional services • Tried and trusted legal, financial, investment and taxation systems provide a safe, secure and familiar business environment • Hong Kong follows the common law system. Eminent judges from other common law jurisdictions, including Australia, may sit as overseas non-permanent judges on Hong Kong’s highest court, the Court of Final Appeal

Global transport hub • Geographical heart of Asia with easy access to Asia, Middle East, Europe, North America

Guangzhou-Shenzhen-Hong Kong Express Rail Link

• Five-hour flight from half the world’s population

Reducing rail journey time to Mainland cities by more than half

• World’s busiest international air cargo hub • One of world’s busiest and most efficient container ports • New road and high-speed rail links significantly boost connectivity to adjoining Guangdong Province and rest of the country, creating new opportunities for goods and services

To Guangzhou in

48minutes

To Shanghai in

To Beijing in

8hours

9hours

Hong Kong-Zhuhai-Macao Bridge World’s longest bridge-tunnel sea crossing (55km) connects Hong Kong with Macao and Zhuhai in the western Pearl River Delta region

World No.1 international air cargo (5.1 million tonnes in 2018)

(Airports Council International)

World No.3 international air passengers (74.3 million passengers in 2018)

Global excellence

Global opportunities, local connections • Pre-eminent access point to explore and develop business links and markets with Mainland China, ASEAN and beyond • A melting pot of individuals, organisations and companies with the experience, insight and connections to help you connect and excel in your chosen field

Regional Headquarters

2,425

Regional Offices

8,754

Overseas and Mainland companies in HK

• Financial institutions, venture capitalists, chambers of commerce, professional bodies, Invest Hong Kong and Hong Kong Trade Development Council connect you to the people, networks and resources to pursue your business and professional goals

Globally competitive, great lifestyle • Super tax deductions up to 300% for research and development spending

Global rankings

• Vibrant arts, culture and sports scene

• World’s freest economy (Heritage Foundation)

• Trend-setting, modern and cosmopolitan city that is welcoming and hospitable

• World’s No.1 IPO fund-raising centre in 2018 (US$36.6 billion)

• Large tracts of green, open space, beautiful shorelines and urban parks provide plenty of leisure, recreation and relaxation options

• World’s No.2 competitive economy (International Institute for Management Development)

• One of the world’s safest large cities

profits ta

TAX

on fir 0 US$255,00 rofits ep of corporat

16.5p% rofits

standard tax rate

• Immigration schemes to attract and retain talent to inject new ideas, thinking and experience and enrich the workforce

• Sophisticated ICT infrastructure, including 11 submarine cable systems and 11 satellites for external communications. New high-capacity submarine cable systems connecting Hong Kong, the US and beyond are underway, boosting Hong Kong’s connectivity, data capacity and competitive edge

• “Nationality neutral” policy means all businesses compete on an equal footing in a fair and open system

2-tiexresydstem

• World-class universities, professional bodies and international schools, including the Australian International School, provide a wide range of educational and training opportunities meeting global standards of excellence

• Huge investments in innovation and technology to spur economic development

• International financial, fund-raising, fund management and insurance centre

8.25% st

EMBA programme (FT EMBA Ranking 2018: Kellogg-HKUST EMBA programme No.1 for third consecutive year, and ninth time overall)

1,530

2018 InvestHK Report

World No.1

15%d standar salaries tax rate

World’s most business-friendly tax system (PricewaterhouseCoopers LLP and the World Bank Group: Paying Taxes 2019)

• World’s No.4 for Ease of Doing Business (World Bank) • World’s largest offshore RMB hub • Asia’s fund management hub • Asia’s insurance hub

AustCham Commonwealth Bank Rugby Sevens Lunch

he AustCham Commonwealth Bank Hong Kong Sevens Lunch was back and bigger than ever this year with special guest Rugby Australia’s Chief Executive Raelene Castle making her debut appearance for the Hong Kong Sevens. She was joined at the lunch by the photogenic Australian men’s team.

In conversation with our guest MC, Australian Rugby Union star and former Wallaby player, Drew Mitchell, Raelene spoke of the challenges she has faced as a woman and a New Zealander as head of Australian rugby. “Social media can be brutal. So, I’ve four or five trusted advisors.” She also highlighted the opportunities for growth in the game, for women’s rugby and student funding. A live auction for two tickets to the Rugby World Cup 2019 in Japan was held to raise money for the Australian Rugby Foundation which was represented by its Executive Director Peter Murphy. The Australian Rugby Foundation is Rugby Australia's national fundraising body that supports high performance, player welfare, community rugby, women’s rugby and indigenous rugby. Our thanks to the Commonwealth B a n k o f A u s t r a l i a fo r t h e i r tremendous support of the event for the past 21 years.

AustCham Commonwealth Bank Rugby Sevens Lunch

Thank you to our sponsor:

Supporting Partners:

Corporate Supporters:

6 JG 6 JG

6 JG

AustCham MGSM CEO Forum Series

The New York Times President & CEO in Conversation Australia is now The New York Times’ third largest market outside the US. Its President and CEO Mark Thompson explained the strategy behind the growth and renewal of one of the world’s most respected media brands at a MGSM CEO Forum Series China Club lunch in conversation with AustCham’s Jacinta Reddan.

E 14

Mark Thompson President & CEO, The New York Times Company

yebrows were raised when the former BBC Director General Mark Thompson crossed the Atlantic in 2012 to become head of The New York Times. At that time traditional print titles were struggling with the transition to digital as well as subscriber pay models. Was content still king? The veteran journalist has made sure it is.

Since then Mark has overseen subscriber numbers rise from 1.8 million of which 660,000 were digital only subscribers, to now 4.3 million subscribers of which 3.4 million are digital subscribers. The stock price has risen from US$8 to now around $33 a share. It regularly reaches 10 million users in the Asia Pacific region. The global edition, formerly known as the International Herald Tribune, is “curated” in Hong Kong with a staff of 80, which is a crucial news hub for the organization in the now insatiable 24-hour news cycle as a bridge between North America, UK and Europe newsrooms.

coverage. We deliver over a hundred copies to the White House every day and one thing I can definitely say is the President is a regular reader of The Times and I suspect he’s read it every day of his adult life. I don’t think he’s got the same conception of journalism as we do. “We’re there to report on what’s happening, not to get drawn into the debate and it’s our duty to remain as calm and dispassionate as we can. We may have in Donald Trump a political leader who wants to have a boxing match with us but our role is not to be in the ring, we shouldn’t be provoked into getting angry.” Mark said the paper’s opinion pages have tried to get more conservative voices to broaden the conversation. “We are seeing things we’ve never seen before happening in many western countries which tells us about the scale of the political disruption we are facing. I have to say if you’re a news organisation… what a rich topic to cover at this moment in history when so much is changing, and particularly for The Times because its stock in trade is to trying make sense of complex, difficult stories.”

“It’s always a sad time when a loyal reader is unhappy with your coverage” – Mark Thompson on relationship with Donald Trump

On Australia Mark said it is a not a great surprise that after Canada and the UK that Australia is The New York Times’ largest market outside the US. He described it as a feisty, vibrant local media scene. “Australia is an interesting story at the moment. It’s very much a country that has thought of itself in the western tradition but it faces and sits in the middle of a region that is rapidly being transformed by development, above all by the growing geo-economic strength of China. The need for Australians to have the tools to make up their own mind about what is going on and understand what it means, that’s the stuff The Times is great at. “It’s a great place to look at the world for the rest of the world. Australia is a very good vantage point.” He says making sense out of the “stresses and strains in democratic western societies” plays to The Times’ strengths. On social media “It accelerates. It’s like everyone’s thinking time gets completely compressed and in news in particular we are reacting to news and the narrative of what the story means is being called incredibly quickly in seconds or minutes. One of the things about The New York Times is we are prepared not to be necessarily the first. We try to come up with some interim conclusion we hope is on the basis of careful thought.” He says Facebook or Google feeds put news through the ‘Magimix. “It jumbles the way we look at the world which is very dangerous.” On Donald Trump “It’s always a sad time when a loyal reader is unhappy with your April 2019

On China He sees the story of China is not just one of growth but of a restoration of its central historical place in the “human story”. “Right now, I think we’re seeing some comfortable western assumptions being proven incorrect.” “I think the extent to which China will start to be the leader of technology and machine learning and in particular artificial intelligence is a game changer for business, technology and probably geo-political defence. The biggest thing for us is to cover it as well as we can recognising we have a fairly significant practical issue which is the Chinese government isn’t necessarily in love with the kind of journalism we do. “The main thing we want to try to do in relation to covering China is to cover it accurately and fairly, and crucially not just to cover issues of freedom of speech and human rights but the tech revolution, the culture of China, how life is evolving. You’ll see many positive stories about China, we sometimes have difficulty in persuading our friends and colleagues in that country that this is the case.” Stephen Dunbar-Johnson President, International, The New York Times Company highlighted Mark's achievements

On the future Mark says the focus for The New York Times will be to build on its business and cont P.15

AustCham MGSM CEO Forum Series cont from P.14 technology coverage as well as investigative journalism. “We think we’ve got a thesis for high quality journalism for thoughtful people around the world which we can run as a growing, increasingly independent digital enterprise.” “My basic view is if you make something which is worth paying for and you market it intelligently, people will pay for it. And if people say you can’t do that because there’s so much free news available on the internet, my answer is then you’ve got to make your news good enough and distinctive enough and special enough that people will feel as if they are missing out if they’re not subscribing.” He said The New York Times is continuing to expand its newsrooms and expects the number of journalists to rise from 1,500 to 1,600 by the end of the year. “Our theory is do better journalism, get better at presenting it as digital products and marketing it, and then people will value and

pay you money. Your revenue will increase and you can spend more money on journalism. “You’ve got to invest in great content if you want to make people pay.”

This event was hosted by AustCham’s Marketing & Media Network and Young Executives Marketing & Media Network sponsors:

15 Young Executives CEO Forum Series sponsor:

Annual General Meeting

AustCham’s Annual General Meeting 2019

T 16

he 2019 Annual General Meeting of the Australian Chamber of Commerce in Hong Kong (AustCham) was held on 27 March, 2019.

Clement Chan and Maaike Steinebach retired from the board during the year and acting Chair Darren paid tribute to Martin Darveniza who died during the year.

The meeting was chaired by acting Chair Darren Bowdern who delivered the Chairman’s report highlighting the Chamber's achievements in advocacy, event management, and in other areas.

We would like to thank CPA Australia for making their office available to hold the AGM.

We are pleased to notify those members unable to attend the AGM that all eight board directors were appointed as well as proposed resolutions were passed. Those board directors presently serving the Chamber eligible for election were re-elected. Andrew Macintosh – The March Fund, Deborah Leung - CPA Australia, Robert Quinlivan - Sun Hung Kai & Co., Gautam Dev – Concentra, Ciqang Lu - National Australia Bank. We would like to welcome Wendy Tong Barnes - CK Infrastructure Holdings Limited, Ivy Au Yeung - ANZ Hong Kong and Simone Wheeler – CLSA, who were newly elected to the board.

The Board of Directors now comprises: Andrew Macintosh

The March Fund

Darren Bowdern

KPMG

Fiona Nott

The Women Foundation

Robert Quinlivan

Sun Hung Kai & Co

Gautam Dev

Concentra

Bina Gupta

BG Business Communications Ltd.

Sam Guthrie

Australian Trade and Investment Commission (Austrade) HK and Macau

George Lam

Macquarie Infrastructure and Real Assets Asia

Deborah Leung

CPA Australia

CQ Lu

National Australia Bank

Paul Scroggie

MERX Project Management

Alex Oxford

Encompass Corporation

Wendy Tong Barnes CK infrastructure Holdings Limited Ivy Au Yeung, ANZ Hong Kong

April 2019

Wendy Tong Barnes, CK Infrastructure Holdings Limited

Simone Wheeler, CLSA

Ivy Au Yeung

ANZ Hong Kong

Simone Wheeler

CLSA

Annual General Meeting

EVENTS UPDATE APRIL AT A GLANCE… Friday, 26 April, 12pm – 2:00pm AustCham MGSM CEO Forum Series presents: Glenn Cooper AM, Chairman of Coopers Brewery Abbey Room; Frites Central; The Wellington, 1/F, No. 198 Wellington Street, Central, Hong Kong Tuesday, 30 April, 6:00pm – 8:00pm Politics and Business: Using skills from political campaigns in business Abbey Room; Frites Central; The Wellington, 1/F, No. 198 Wellington Street, Central, Hong Kong

MAY AT A GLANCE… Tuesday, 7 May, 6:15pm – 8:30pm Mentor Program: Graduation Ceremony KPMG, Room 2217, 8/F Prince’s Building, Central Corporate Wellness Series Watch this space! Monday, 27 May, Day trip Delegation to Shenzhen Itinerary released soon. Tuesday, 28 May, 6:30pm till late 2019 AustCham Westpac Business Awards Gala Dinner Grand Ballroom, Grand Hyatt Hotel Hong Kong, Wanchai, Hong Kong

News

Roundtable on Modern Slavery

ustice Centre Hong Kong in partnership with the Macquarie Foundation and with the support of the Australian Chamber of Commerce held a roundtable discussion last month focusing on the role of the diplomatic community in the fight to eliminate forced labour, modern slavery and human trafficking in Hong Kong.

Discussions included promoting the incorporation of human rights practices into the operations of Hong Kong businesses; how the private sector can undertake effective policy and advocacy; and private sector engagement possibilities with civil society and government.

Diplomatic Appointments

r Graham Fletcher has been appointed as Australia’s next Ambassador to China. Mr Fletcher is a senior career officer with the Department of Foreign Affairs and Trade, and was most recently First Assistant Secretary, North Asia Division. He has previously served overseas as Deputy Head of Mission, Australian Embassy, Washington; Deputy Head of Mission, Australian Embassy, Beijing; and Counsellor, Australian Embassy, Beijing. Mr Fletcher holds a Bachelor of Arts (Honours) from the University of Sydney. He replaces outgoing Ambassador Jan Adams AO PSM. Mr Dominic Trindade has been appointed as Australia’s next Consul-General in Shanghai. Mr Trindade is a senior career officer with the Department of Foreign Affairs and Trade and was most recently Assistant Secretary, Services Investment and Intellectual Property Branch. He has previously served overseas as ConsulGeneral, Australian Consulate-General, Guangzhou; Deputy Permanent Representative, World Trade Organization, Geneva; and Deputy Head of Mission, Australian High Commission, Singapore. In Canberra Mr Trindade has held a number of senior roles in legal and trade policy and negotiations. Mr Trindade holds a Bachelor of Laws from Melbourne University; and a Graduate Diploma in Foreign Affairs and Trade from Australian National University. He replaces outgoing Consul-General Graeme Meehan. April 2019

Justice Centre presented its Corporate Change Maker Guidelines to the attendees who included representatives from the Australian Consulate-General, the US Consulate-General, Swedish Chamber of Commerce, Flanders Investment and Trade, and AMFORI. It was agreed that given the role of corporates in Hong Kong, they should be encouraged to influence policy change and the business culture in combatting forms of modern slavery. Details of the Guidelines

Festival of Australia

Festival of Australia, coordinated by Austrade, is to be held in 10 Chinese cities between May and June. The 2019 AustCham Westpac Australia-China Business Awards Gala Dinner to be held in Hong Kong on 28 May is part of the itinerary. The festival, which runs between May 20 and June 2, will showcase Australia’s food, wine, aged care, innovation, education, investment, culture, tourism and sport, Simon Birmingham, Minister for Trade, Tourism and Investment, announced. It spans 10 cities from Tianjin to Shenzhen with the last leg in Shanghai where Port Adelaide will play St Kilda at the premiership match at the Jiangwan Stadium. Other highlights include Wine Australia masterclasses, a Tmall Global online promotion, consumer and alumni competitions, business delegations promoting sports technology, asset management and aged care, and Australian photography exhibitions, Indigenous music performances and film screenings. “China and Australia have deep commercial and cultural ties, built over many years, but there is a significant opportunity to grow exports of quality Australian products and services to the world’s biggest consumer market,” said Senator Birmingham.

Chamber Signs EOC Charter

ustCham Hong Kong recently signed up to the Equal Opportunities’ commission charter on Racial Diversity and Inclusion Charter for Employers. Chief Executive Jacinta Reddan represented the Chamber at the signing ceremony. The event included a panel discussion ‘Racially Diverse Talent: A Business Advantage? Jacinta is pictured with EOC board member Henry Shie (left) and Oska Li, EOC’s head of Corporate planning and services.

New Members Platinum Patron

MTR Gillian Meller

Individual Member Genevieve James Bruce Stinson Andy Chong Wey Yang

Asia Miles Paul Smitton

QBE Insurance Harshit Anand

Chow Tai Fook Enterprises Patrick Tsang

Swisse Wellness (H&H) Emily Dunn Justin Howden Malko Schraner Vivien Wang Ben Wu

Commonwealth Bank of Australia Piny Ly Timothy Oldham National Australia Bank Jacob Tarlinton

Corporate Patron Ashurst Patrick Phua

Ferguson Partners Patrick Balfour Hong Kong -Australia Business Association Ltd Lucinda Chan Liberty Commodities Mickey Mehta

Corporate Member Chartered Accountants Samuel Cheng

Sage Management Consulting Miranda Sin

Chubb Insurance Hong Kong Ltd Stanley Wong

Bright Foods Asia Peter Gunning Bryan Cave Leighton Paisner LLP Jackson Chow Gallery Group Kym Barclay Michael Burstin Mark Dimou

Tallant Anthony Bowers

HAYS Katie Gan Timothy Smith

The Wise Guru Andrew Unterweger

Joint Dynamics David Jacquier

Young Executive

Pyrmont Wealth Management Ltd Simon Parfitt Sapien Cyber Rochelle Fleming

King & Wood Malleson Sue Kench Cindy Shek

Sun Hung Kai & Co. Ltd Seng Huang Lee

Accurate IT Darren Brackenridge Leightons Contractor (Asia) Ltd Halford Lam PwC Thomas Crasti

Year round Mates’ Rates: Member Benefit Program 2019

Food & Beverage Dining Concepts: Enjoy 15% off on all a la carte dining.

These exclusive member benefits and discounts listed are available only to AustCham Hong Kong members, accessible by downloading a Membership eCard.

Island Shangri-La Hong Kong: 15% discount on regular-priced items

This provides exclusive marketing opportunities for members to promote their company’s products and services, replacing the month-by-month offer which was limited to only one company’s benefit or discount. More details on our website. Terms and conditions apply. www.austcham.com.hk/membership/ membershipecardandspecialoffer

Marco Polo Hotels - Hong Kong: 15% off at Cucina, Cafe Marco, Three on Canton and add@Prince Lifestyle Expat Living Free one year subscription Travel Virgin Australia: 15% off selected business and economy class fares Hotels Grand Hyatt Hong Kong: Offer Coming Soon

Membership eC

ard

Hotel VIC: Enjoy 20% discount on Food & Beverage at Hotel VIC on the Harbour Ovolo Hotels: 20% off on the Best Available Rate

Australia Focus

How to Vote in the Australian Federal Election

he Australian Federal Election will be held on Saturday, 18 May 2019. If you are an eligible Australian citizen in Hong Kong or Macau you can still vote. During the election period, you can vote in person at the Australian ConsulateGeneral in Hong Kong or you can apply to vote by postal vote. See below for more details. The electoral roll is now closed for the 2019 Federal Election. The best electoral roll in history A record 16,424,248 Australians are enrolled to vote in the 2019 Federal Election. This follows almost 100,000 additions to the roll in the week preceding the close of rolls, which has pushed the national enrolment rate to an extraordinary 96.8%. Electoral Commissioner, Tom Rogers said this represented by far the most complete electoral roll in Australian history and a phenomenally high base to election participation unlikely to be matched anywhere in the world. “A national enrolment rate of 96.8% was for a long time thought to be unattainable,” Mr Rogers said. “Such a complete roll is a credit to Australian citizens and to the hard work and careful processes put in place by AEC staff.” Youth signed up for first millennial election The youth enrolment rate is also at the highest level ever with an estimated 88.8% of eligible 18-24 year olds enrolled to vote. “There were around 70,000 18-24 year-olds among the additions to the roll during the close of rolls week,” Mr Rogers said. “Enrolment for this youth cohort at 88.8% is now even higher than it was for the marriage postal survey when it was 88.6%.” April 2019

This is the first federal election at which Australians born in the year 2000 are able to vote. Over 400,000 18-19 year olds are enrolled to vote for the 2019 Federal Election. There are around 750,000 more people enrolled for the 2019 Federal Election than were on the roll for the 2016 Federal Election. How to vote Once you have confirmed your enrolment, you will be able to vote in one of the following ways: • by attending an Australian diplomatic mission overseas to cast an early vote. The Australian Consulate-General in Hong Kong will have pre-poll voting available from Monday 6 May. You should consider visiting us before election day to avoid long queues; or • by voting in person on election day; or • by applying online for a postal vote. Lodging a postal vote does not require you to attend an Australian diplomatic mission overseas. This means you can avoid any queues and delays that may result from the strict security arrangements that are in place at most Australian missions. Online applications for a postal vote are available on the Australian Electoral Commission website at www.aec.gov. au. Apply now so there is enough time for your ballot papers to be sent to you. Your application for a postal vote must be received by the AEC by Wednesday 15 May. For details on pre-poll voting in Hong Kong, please visit the Australian Consulate-General webpage. For more information on the Federal Election, www.aec.gov.au. Further information is available at https://smartraveller.gov.au/ guide/all-travellers/Pages/voting-overseas.aspx.

Hong Kong Focus

GBA: “Once in a Generation Opportunity” for Hong Kong Independent study by international economists identifies ways to obtain GBA benefits, reflecting many of the views presented in last year’s position paper prepared by AustCham’s Greater Bay Area Committee and KPMG • Increasing flows of goods and related services between the GBA’s three World Trade Organization members (China, Hong Kong and Macao) by applying to its fullest extent the WTO’s Trade Facilitation Agreement and by using digital technology to reduce business costs • Developing “Internationalization Incubators” in Hong Kong for GBA companies across the boundary that have little experience of international markets and operations • Exploring whether Hong Kong can become a data hub for the GBA Dr. Victor K. Fung delivered the opening keynote at the business forum

he development of the Greater Bay Area (GBA) is a “once in a generation” opportunity and a reason for Hong Kong to “reinvent itself yet again”, according to business leader Dr. Victor K. Fung, in presenting the findings of a study released by the 2022 Foundation think tank at a recent forum. The study, entitled “Creating the Greater Bay Area of the Future – Opportunities for Hong Kong”, was conducted by a team of international economists led by Professor Michael Enright, a world expert on the competitiveness of Hong Kong and of the Pearl River Delta.

• Creating “Hong Kong-style” developments on the PRD side of the GBA at a lower cost to attract professionals • Establishing dedicated apprenticeship programs designed around the GBA’s workforce needs where young people in Hong Kong who do not go to university can develop “jobready” skills • Creating a multi-language GBA portal accessible to residents in all 11 GBA cities with information on public services, business and job opportunities, plus regional information such as real time updates on, traffic, weather, and waiting times at boundary crossings.

The GBA Initiative literally opens new horizons for many Hong Kong people.

Dr. Fung, chairman of the Foundation and of the project’s steering committee, said Hong Kong’s next iteration would be more nuanced than when the city “morphed” from export manufacturing to international services with the Pearl River Delta’s opening 40 years ago. “That being said, this newest iteration is set to be every bit as transformative as the previous one, and just as significant globally.” New roles “It is also about Hong Kong developing new roles,” Dr. Fung said, referring to industrial frontiers such as digital supply chains, the Internet of Things, artificial intelligence and big data analysis. “Increased flows between GBA cities in the years ahead will lead to more jobs, more opportunities, upward mobility and greater prosperity.” The private sector study was commissioned in May last year by a number of large firms in Hong Kong that are keen to understand the GBA’s expanding scope for their own businesses. The study’s Main Report identifies “enormous” opportunities arising from the economic size and growth of the region; greater connectivity in the GBA; further economic opening to Hong Kong companies; people-centric policies and developments in the GBA, and from Hong Kong’s distinctive position through “One Country-Two Systems.” The study also makes dozens of proposals and suggestions, such as:

Professor Michael Enright presented the study’s analysis and key findings

The study takes account of The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, released recently by the Central Government. “For the first time it provides a realistic possibility of Hong Kong and Hong Kong people having a real ‘domestic market’ and ‘hinterland’ behind them and not being as limited by space constraints, congestion, high costs, and the business and employment opportunities of a small and specialized economy. The GBA Initiative literally opens new horizons for many Hong Kong people,” said Professor Enright. The full report and related documents are available on the 2022 Foundation website.

Committees in Action

Financial, Legal & Tax Committee: The Royal Commission – What Happened and What Now? Matt Egerton-Warburton, Special Counsel, King & Wood Mallesons (Sydney), was a recent guest speaker on the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services this week. He provides this overview of some key themes from the talk and a review of the post-Royal Commission world. management were responsible. The Commissioner drew clear links between remuneration, culture and governance and saw remuneration as the key to manage and improve the systemic misconduct within the financial services industry.

Guest speakers Matt Egerton-Warburton, left, and Paul McSheaffrey with AustCham CE, Jacinta Reddan

nder intense political pressure, the Australian government established a Royal Commission in late 2017 after a series of banking and financial scandals that had seen Australian banks pay more than A$1 billion in fines and remediation since the financial crisis. The Commission convened throughout 2018 and it was a watershed moment for the Australian finance sector. Careers were made and broken and the reputations of some of Australia’s oldest and most respected financial institutions were significantly tarnished. The Commissioner Justice Hayne focussed on financial services provided to consumers and small and medium enterprises (excluding investment and corporate banking). He reviewed a wide range of activities including fees for no service, incentives not aligned with customer interests, trailing commissions, junk insurance products, conflicts of interest (especially for trustees of for-profit superannuation funds), failure of compliance systems and tardiness of breach reporting and remediation.

The biggest challenge… will be to review, understand and reform the deeply entrenched profit and sales culture within Australia’s financial services sector.

Interestingly the Commissioner thought current legislation was sufficient – it was just not being enforced; “The law already requires entities to ‘do all things necessary to ensure’ that the services they are licensed to provide are provided ‘efficiently, honestly and fairly’. Much more often than not, the conduct now condemned was contrary to law. Passing some new law to say, again, ‘Do not do that’, would add an extra layer of legal complexity to an already complex regulatory regime.” The Commissioner outlined 6 key principles (which seem selfevident but he obviously thought needed restating). Providers of financial services should: • obey the law; • not mislead or deceive; • act fairly; • provide services that are fit for purpose; • deliver services with reasonable care and skill; and, • when acting for another, act in the best interests of that other. What now? The report contained 76 wide ranging recommendations including: • A ban on “hawking” financial products to retail clients – no cold calling or unsolicited meetings; • Boards must set and assess firm culture and governance and APRA (the Australian banking regulator) must assess the culture of regulated entities; • ASIC should initiate a “why not litigate” culture and rely less on enforceable undertakings and other “soft” penalties; • The BEAR regime (in which individuals are accountable in an organisation for each division and product line) should be extended from banks to all APRA regulated financial

Greed is not good The final report was released on 4 February 2019. The Commissioner provided two key reason for the misconduct – greed and misconduct not being sufficiently punished. He lamented “the pursuit of short term profit at the expense of basic standards of honesty..... from the executive suite to the front line, staff were measured and rewarded by reference to profit and sales...”. Misconduct was the result of cultural deficiencies, not just a few bag eggs, and boards and senior April 2019

cont P.25

Committees in Action cont from P.24

institutions (including insurance and super); • A ban on trailing commission for mortgage brokers – brokers should act in the best interests of consumers and only accept fees from consumers; and • Industry codes of conducts to be enforceable. The report was viewed as generally sombre, reasonable and conservative. It did not recommend radical change or the breakup of current business models (apart from the mortgage broking model). The Boards of financial services companies, APRA, ASIC and the government have committed to implementing these recommendations. The government has and will introduce new legislation, APRA and ASIC are drafting new regulations and boards are wrestling with changes to their corporate governance and remuneration policies. The new “why not litigate” culture of ASIC and APRA is ruffling feathers and the traditionally consultative relationship between regulators and the financial

sector has been disturbed. We are yet to hit a new equilibrium. The Commission made recommendations for prosecution and the Commonwealth DPP has been provided with extra resources to pursue criminal misconduct by banks and other financial institutions. More careers and reputations will be affected. The biggest challenge for government, regulators and boards will be to review, understand and reform the deeply entrenched profit and sales culture within Australia’s financial services sector. This report marks the beginning of this process. Our thanks to the session’s co-speaker, Paul McSheaffrey Partner, Head of Banking & Capital Markets, KPMG Hong Kong, who shared his observations on what if any impact the findings would have on the Hong Kong banking regime and across other Asian markets

Corporate Profile

Mosaic Property Group www.mosaicproperty.com.au

Established in 2004, Mosaic Property Group is regarded as one of Queensland’s most awarded and respected residential property developers. With a growing footprint of award-winning projects in South East Queensland, Mosaic is committed to creating sustainable urban solutions that inspire the local and surrounding communities and deliver outstanding economic and lifestyle benefits to our customers and stakeholders. A unique, integrated approach to managing every aspect of the development process, from research, site acquisition, design, marketing and sales, to construction, settlement and property management, ensures they consistently deliver on their promise of enduring value to investors and owner-occupiers. What are the main skills of your job? Building strong business and customer relations is central to my role, which effectively requires the ability to communicate the value of Mosaic’s offering and key points of difference in a way that resonates. What does your company do particularly well? Mosaic is diligent in its approach to delivering thoroughly researched, architecturally captivating and impeccably finished boutique properties. We design with the owner-occupier in mind, so our floor plans are generally larger and quality of finishes superior to most comparable residential developments, in locations that deliver exceptional lifestyle benefits. This has led to all our developments selling out prior to construction completion, fast rental take-up, and achieving above average rents for our investors. What’s something most people wouldn’t know about your company? Mosaic is unique from other developers in that we have complete control over the quality of what we deliver by executing every stage of the project ourselves, from research and acquisition, marketing and sales, and construction. We also maintain the property for a minimum of 25 years post completion to ensure the asset value, for us and our investors, is protected and appreciates. How would you describe your workplace and colleagues? Dynamic – fast paced, sometimes challenging but extremely rewarding. Mosaic team members are passionate about what they do and about our core philosophies. What’s the most unusual thing you have had to do as part of your job? By nature, I will do whatever it takes in support of the business strategy, however, as a traditional steak and red wine man if I had to choose one thing it would probably be exposure to some of the more traditional delicacies of Chinese cuisine. April 2019

Anthony Hancock Director - Sales & Client Relationships What is the vision of your firm in 10 years? The next 10 years will see Mosaic continue its pursuit of excellence and attention to design, delivery and execution of award-winning boutique developments throughout South East Queensland that elevate the standard of residential living while realising the highest possible growth and return on investment. What’s your firm’s connection with Australia? Mosaic has a growing footprint of over 40 design and lifestyle led residential developments, mainly apartments, in premium locations in South East Queensland, particularly Brisbane, Sunshine Coast and Gold Coast. Why did you join AustCham, and what do you hope to get from your membership? AustCham provides Mosaic a valuable opportunity to connect with the Australian expat community, build mutually beneficial relationships, and showcase our incredible product. If you were not in your current job what would be your dream job? Having worked with both founding Directors for over 13 years in a front row seat I have participated in the business growing into one of the most awarded developers in South East Queensland, with over 100+ staff. I consider myself extremely fortunate to have a role which combines my passion for both property and sales. I am constantly kept busy, challenged and feel very fortunate to work with a talented and outstanding group of individuals, some of which I have the pleasure of calling my best friends. I do believe I have my dream job AND that dream job both supports and enables two of my other habits being travel and fine wine. What’s your favourite place to go (or to eat) in Hong Kong in your spare time? My dining exposure in Hong Kong has been a little limited, however the Buenos Aires Polo Club in Central Hong Kong has so far been a favourite.

On the Scene

Mix at Six NZ Fundraiser

t was a more sombre mood at our recent Mix at Six in the aftermath of the Christchurch tragedy. The Chamber community showed its support for our New Zealand friends with a fundraiser to support those affected. Dr Merrin Pearse, Secretary of the New Zealand Chamber of Commerce, led a momentâ&#x20AC;&#x2122;s silence of remembrance. A few days earlier, AustCham Chief Executive Jacinta Reddan represented members at an interfaith prayer gathering at the Jamia Mosque led by Mufti Muhammad Arshad, the Chief Imam of Hong Kong.

Thank you to our venue partner

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