AustCham News August 2019 - Issue 210 by The Australian Chamber of Commerce in Hong Kong

香港澳洲商會

The Australian Chamber of Commerce Hong Kong

H O N G

K O N G

austcham news • Issue 210 | AUG 2019

8 China Toasts Aussie Brands in Latest Survey 11 Clearing the Air 14 Education Spotlight - Learning Curve 21 Start-ups Need More Support to Grow Up

AustCham Lights Up the Hill Our first delegation to Canberra Learning Curve How Australian universities are finding new opportunities in Hong Kong

www.austcham.com.hk

One of our Founding Fathers Recognised

Where Business, People and Ideas Connect

August 2019

Chairman's Column

sually the summer months are quiet in Hong Kong – not so this year. The Chamber has remained active both here and in Australia.

Last month, the Chamber had the pleasure of co-hosting a decarbonisation strategy event, in collaboration between the American, British, and Canadian Chambers of Commerce in Hong Kong. Guests were given the opportunity to hear of the Government’s long-term decarbonisation strategy for Hong Kong from our guest speaker Dr. Winnie Law from the University of Hong Kong. Dr Law introduced the public engagement exercise now underway about the impact of carbon emissions, and how the business community can leverage its expertise and insights on possible climate mitigation actions to reduce carbon emissions for Hong Kong to meet the Paris Agreement targets by 2020 and, long term, up to 2050. I would like to thank all of you who joined us at the event and to Mayer Brown for hosting us.

austcham news issue 210 Cover Story

Dialogue with Canberra

Bringing Australian C-Suite and Boardroom to China

Brand story China Toasts Aussie Brands in Latest Survey

Australia Focus Looks Like We Made It

The Chamber recently led its first delegation to Canberra. We welcomed the opportunity to meet with policymakers and influencers in Australia, which further strengthened the profile and ties between Australian businesses in Hong Kong and the Greater Bay Area. We also met with several parliamentarians including Assistant Minister for Superannuation, Financial Services and Financial Technology, Jane Hume. We pressed the need to ensure that any changes to Australian tax law take into account the impact on the one million-strong Australian diaspora. At a meeting with Simon Birmingham, Minister for Trade, Tourism and Investment, we reiterated the strong case for a double taxation agreement (DTA) between Australia and Hong Kong.

Towards a Sustainable Future Clearing the Air Education Spotlight Learning Curve

From November 2019 to February 2020, the Chamber will be running our 2019 AustCham Internship Program where we match young talented Australian students with our corporate members in Hong Kong. Students will also participate in a series of engaging and insightful workshops and cultural activities. The internship program provides an enriching experience for Australian students to acquire valuable Asia worklife experience as well as delivers real long-term value for Australia’s commitment to the region. We invite you to join us in this meaningful program to connect the future leaders from Australia with Hong Kong. At the time of writing, protests were continuing in Hong Kong. We urge all stakeholders to pursue constructive dialogue to maintain Hong Kong’s reputation as a safe place to live, visit, and to do business in.

Mentor Program Focus on Education

Hong Kong Focus Start-ups Need More Support to Grow Up

Yours sincerely,

Andrew Macintosh chairman@austcham.com.hk

10 11 14

19 20 21 22

Committees in Action 24 New Member

Mix at Six

Finally, I would like to wish everyone a safe and enjoyable summer holiday. Qantas C sleep banner ad 195x55mm hires.pdf 1 4/8/2017 15:10:04

Improving breast cancer detection 18 – in Australia and China AustCham Intern Program

Our delegation attended the Australia China Business Council’s annual Canberra Networking Day at Parliament House. We heard from a range of speakers who spoke in favour of strengthening Australia’s relationship with China and Hong Kong.

austcham news Online version

Chamber Chatter

What’s Trending

rom Canberra to Hong Kong, AustCham members have been in the thick of it. You can read more about our delegation to the nation’s capital on page 5. This was an extraordinarily productive and busy two days and was an important way to continue to build awareness of your Chamber and to be sure our voice informs the national dialogue on engagement with China.

Those of you building and developing Australian business into the region would be well-served to attend the Australia China Business Council’s Canberra Networking Day next year. The content was highly topical with case studies of businesses successfully navigating this complex region featured. We were pleased to see a number of winners of the recent AustCham Westpac Australia China Business Awards 2019 hosted by us in Hong Kong on stage during the program, including Melbourne Symphony Orchestra and Moelis as part of the ACBC event. Our views on what was occurring in Hong Kong on the ground were also widely sought after with the Australian audience having seen only images in the media of the city ground to a halt for the marches and images of violent clashes. While recent developments are of real concern to the business community and our members, we highlighted the importance of Hong Kong’s continuing role as an international commerce centre. And this is why developing a thoughtful contribution to the October policy address by Chief Executive Carrie Lam is critical. We encourage you, through your committee network, to provide high-level ideas of what you believe should be the focus of the Hong Kong Government for your businesses and your industry. What ideas do you believe Hong Kong should introduce which would build a sustainable future for Hong Kong and for your businesses? Please respond through your committee network to Emily Li, our head of public affairs. And finally, it’s never over until….and so we see that while the Capital Gains Tax amendment lapsed with the calling of the Federal election, the Government has not ditched the idea entirely. We will (and have continued to) lobby government and engaged with media and other stakeholders to highlight the inequity of this proposal if Australians are hit. You can find a copy of this article quoting the Chamber in the Australian Financial Review on page 6. Jacinta Reddan, Chief Executive, AustCham

AustCham Platinum Patrons

August 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.

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Cover Story

Dialogue with Canberra AustCham's first delegation to Canberra provided the opportunity to discuss key issues of our members with government and industry leaders while also explaining recent developments in Hong Kong

ong Kong was front page news when AustCham hosted our first delegation to Canberra recently.

Led by Chairman Andrew Macintosh, the delegation met with senior government ministers including the Minister for Trade, Tourism and Investment Simon Birmingham, and the Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume, as well as senior officials from the Department of Foreign Affairs and Trade, Austrade, and the Chief Minister of the ACT, Andrew Barr. The delegation also met with the head of Hong Kong Economic and Trade Office, Raymond Fan. Delegates attended the Australia China Business Council’s (ACBA) annual Canberra Networking Day on 26 June at Parliament House which began with an address by the Chinese Ambassador to Australia Cheng Jingye who spoke of the long-standing trade, investment, and people-to-people ties between Australia and China.

“Mutual political trust and mutually beneficial cooperation are just like two wheels that would smoothly drive our bilateral relationship forward. The relationship between China and Australia can only be steadily and increasingly improved when both wheels are spinning with the same speed and in the same direction, mutually reinforcing each other,” he said. “It requires us to respect each others’ development path, social systems and core interests. It also requires us to expand common grounds while properly handling differences.” About 150 delegates to the ACBC networking day heard from a number senior business leaders and entrepreneurs who spoke about the opportunities in China. Australia’s innovation and expertise in industries ranging from ageing technology through to culture and sport, and confidence in ‘Brand Australia’ as a trusted source of quality fresh food and produce by Chinese consumers continues to drive trade and investment opportunities. (see story page 8)

As China’s middle class grows, so Australia’s trading relationship with China will change. Resources and agriculture—‘rocks and crops’—will continue to play a very important role John Brumby cont P.6

Cover Story cont from P.5

6 Chinese Ambassador ro Australia Cheng Jingye

Opening the event, ACBC National President John Brumby AO said Australia’s economic relationship with China will continue to shape the economic prospects and quality of life of Australians for generations to come. “As China’s middle class grows, so Australia’s trading relationship with China will change. Resources and agriculture—‘rocks and crops’—will continue to play a very important role,” Mr Brumby said. “But there will be more and more opportunities to provide the goods and services that a newly-enriched middle class demands: high quality health and wellbeing products and services; boutique tourist destinations; quality education, aged care, medicine, financial services—and the list goes on.”

He also highlighted the expanded role of the National Foundation for Australia-China Relations, which will build on the Australia-China Council’s pioneering work over the past 40 years fostering connections in education, culture and the arts. This includes promoting Australian excellence in areas such as agriculture, infrastructure, health and ageing, the environment and energy. “The Foundation will harness the private sector, peak bodies, NGOs, cultural organisations, state and federal agencies and the Chinese-Australian community to promote greater understanding of China amongst Australians.” The goal of the Chamber’s two-day visit was to forge closer ties with key stakeholders on issues of critical importance to our members including the Double Taxation Agreement between Hong Kong and Australia, the need to raise Asia capability in corporate Australia, and to learn more about the new Morrison Government’s position on engagement with China (and Hong Kong). This was also an important opportunity for the Chamber to share observations of the recent marches and opposition to the extradition treaty from an on-the-ground perspective. Our thanks to Ovolo for their generous hospitality during the delegation’s stay at the Ovolo Nishi Canberra.

Senator Birmingham spoke of the importance of people-topeople ties among the younger generation. “In expenditure terms, China is the second most popular destination for Australians who choose to study abroad. It is also right up there as a favourite destination for New Colombo Plan students; young Australians who are investing some of the best years of their lives to get to know China better. This two-way exchange of our youngest and brightest can only bode well for the future ties and relations between our two countries.” Delegation meets with ACT Chief Minister Andrew Barr (centre); AFR reports the CGT battle may not be over

August 2019

Cover Story

Delegation with Dr Chuyang Liu, Deputy State Director (Victoria) & China Specialist at Austrade (above), and head of the HK ETO, Raymond Fan (below)

Bringing Australian C-Suite and Boardroom to China Pilot program to enhance understanding of Australian executives

CBC, Austrade and the Business Council of Australia announced an initiative to take the Australian C-suite and boardroom to China to learn first-hand about our largest trading partner on a China Study Tour for Australian directors. Initially, the China Study Tour will be run as a pilot program in March next year for 12 executives. Details include: • March 2020 – 5-day tour to Shanghai, Suzhou, Hangzhou, Shenzhen • Pre-departure briefing luncheon in Sydney/Melbourne with cultural, geopolitical & business update • Visits to Alibaba HQ, Tencent, BYD, Hema Fresh, NetEase Kaola, Huawei • Dinners with Australian and Chinese government and corporate leaders Last year Australia celebrated 45 years of diplomatic relations with China, bilateral trade topped A$183 billion, 1.4 million Chinese tourists visited Australia, 166,000 Chinese students enrolled in universities and more than one million people live in Australia of Chinese heritage. The Chairman, China Leadership Group for the Business Council of Australia Warwick Smith AO, said: “Our relationship with China remains crucial to our future economic prosperity,

and it is imperative that Australian executives and directors have current knowledge and experience in this everchanging dynamic market.” Tapping Austrade’s extensive network and deep experience in China, this brief tour will be designed to showcase cutting edge innovation and technology. Stephanie Fahey, CEO of Austrade said: “We want to equip our board directors and executives with a nuanced understanding of China, its systems, the dynamism of its market and the enormous potential that exists there for Australian business.” John Brumby National President ACBC said: “Since 1973 ACBC has worked with a clear mission to strengthen bilateral trade and investment and economic cooperation. China’s economic, technological and regulatory environment is changing rapidly, and this high-level study tour will ensure that the Australian C-suite and boardroom are well-placed to help Australia realise its full economic potential in this dynamic market.” The Pilot Program was officially announced at ACBC’s annual signature event Canberra Networking Day on 26 June in Parliament House. During the session, AustCham’s Chief Executive Jacinta Reddan commended the initiative and urged for Hong Kong to be included in the program.

Brand story

China Toasts Aussie Brands in Latest Survey Beer, wine, and spirits along with travel companies top the latest brand survey across eight industries and the following nine brand attributes: quality, convenience, innovativeness, professionalism, practicality, social responsibility, trustworthiness, and costeffectiveness. Key findings in 2019 • The overall top Australia and tourism brand is Adina Apartment Hotels. Chinese consumers favour this brand for their value for money and quality accommodation.

ACBC President John Brumby and Trade Minister Simon Birmingham at launch of brand survey

he fast growth of the Chinese economy and the rise of the middle class has made China a lucrative target for Australian brands, according to the Australian Brands in China (ABC) Index 2019. The ABC Index, produced by digital marketing firm Digital Crew and Monash Business School, seeks to bridge the gap between what Australian brands think they know about how Chinese consumers perceive their brand and what they are looking for when considering an Australian brand. The ABC Index expanded from 70 to 102 brands this year in recognition that Chinese consumers’ knowledge of brands from Australia are increasing. The report was released at the Australia China Business Council’s Canberra Networking Day. While there is consistency for several brands and industries between last year and 2019, there were some noticeable changes, signalling that Chinese consumers’ perceptions of Australian brands are still malleable and there is potential for new and emerging Australian brands to capture a share of the world’s largest market.

One thing is becoming clear; to be successful in China, Australian brands need a long-term strategy.

This year, banks were added as a new industry and tourism brands were split from destination brands. The Index surveyed 9,000 Chinese consumers’ perceptions of Australian brands August 2019

• Five tourism brands and five alcohol brands make the overall top 10 list, indicating Australia’s appeal overall is largely its tourism industry, with vineyards and distilleries an important component of the Australian experience. The Index shows that brands, even those outside of tourism and alcohol industries, that capture the culture and attributes of Australia are well-positioned to capture the wallets of Chinese consumers. • Tourism and wine brands also dominate the list for all demographic groups including gender, region, income, education and whether the person has visited Australia before, though there Are some interesting differences in gender preference. Beer, wine and spirit (BWS) brands dominate the top 10 list for men, while tourism brands dominated the top 10 list for women. Australia BWS brands should continue to capitalise on marketing to this segment of the market while tourism brands should target women. • Tier 1 cities where Chinese consumers are more affluent rank tourism and BWS brands in their top 10 list offering opportunities for luxury products and experiences. For Chinese consumers living in Tier 2 regions, banks and fast-moving consumer goods (FMCG) brands top the list. Chinese consumers in these cities spend and save wisely. The Index shows that Australian brands need to tailor their marketing to accommodate the wider geography and affluence of the Chinese market. • Cosmetic and FMCG brands dominated the index in 2018 but have fallen from favour this year, indicating just how dynamic the Chinese market is. • Chinese consumers are no longer valuing trendiness as a brand attribute in the FMGC industry. Instead, Chinese consumers are favouring quality and professionalism. Weet-Bix is no longer in the top 10 list for this industry. Sanitarium’s rebranding of the product from Weet-Bix to Nutri-Brex reduced the overall appeal of the product. • Caruso’s Natural Health ranked last in 2018 but jumps to #2 spot in the health industry this year. It has the highest rating for quality, value for money and practicality – all attributes cont P.9

The ABC Index 2019

Brand story

cont from P.8

the Chinese consumes consider when searching for an INDEX TOP 10 BRANDS ABCABC INDEX TOP 10 BRANDS Australian health brand. • Australian National University (ANU) and the University of Melbourne are the top-ranked Australian education brands among the Chinese who value quality and trust when searching for an Australian university. • Tasmania is the top tourism destination for Chinese consumers. Last year’s top-ranked destination, the Gold Coast, drops to #7. Chinese visitors are switching from beach destinations to more off-beat adventures, the kind that Tasmania offers. • ANZ is the top-ranked bank brand (#73), likely driven by its convenient locations in several major Chinese cities including Shanghai. With more Australian brands entering the market, it’s important for existing brands with a presence in China to maintain and defend their share of the market, while new brands must also be able to connect with potential consumers in the world’s most populous country. Digital media is certain to take on a greater role in developing customer-brand relationships. Many existing brands with a localised social media presence and innovative digital marketing rank highly on our Index. This suggests that brands can convey attributes that Chinese consumers care about within the digital sphere, helping Australian brands appeal directly to the digitally connect ed Chinese market. Significant changes between 2018 and 2019 Index There are notable changes between 2018’s and 2019’s rankings. There are no FMCG brands in the top 10 this year. Last year, the FMCG industry and the brands WeetBix, EMU, Coles and Chemist Warehouse dominated the overall top 10. Chinese consumers are no longer willing to pay AU$50 for a box of Weet-Bix, which they were in 2018 after the cereal rose to fame on a Chinese reality TV show. The report recommends that Australian brands need to establish their dominance and prevalence over other foreign brands in the world’s largest economy: “One thing is becoming clear; to be successful in China, Australian brands need a long-term strategy.”

Brands

Industry

Adina Apartment Hotels

Tourism

Qantas Airways

Tourism

Mantra Hotels

Tourism

XXXX

Beer, wine and spirits

Virgin Australia Airlines

Tourism

Lindeman’s Wines

Beer, wine and spirits

Medina Hotels

Tourism

Bundaberg Rum

Beer, wine and spirits

Hardys Wines

Beer, wine and spirits

Burch Family Wines

Beer, wine and spirits

Rank2019

Brands that score highest in each industry sector share

Australian brand. Airline and hotel brands have

the attributes Chinese consumer favour when consid-

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ƺȸǣȇǕ ƫȸƏȇƳɀ ɯǣɎǝǣȇ ɎǝƏɎ ǣȇƳɖɀɎȸɵِ Áǝƺ XȇƳƺɴ ǝǣǕǝǼǣǕǝɎɀ

ɀȵȒɎɀِ

where Chinese consumers are connecting with a

Adina Apartment Hotels, XXXX, Medina Hotels, Bund-

brand’s messaging and where brands are failing to

aberg Rum, and Hardy’s Wines are new additions to the

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‫ ח׏׎א‬XȇƳƺɴ ƫɖɎ ǝƏɮƺ ȵƺȸǔȒȸȅƺƳ ɀɎȸȒȇǕǼɵ ɎȒ ƬƺȅƺȇɎ

Tourism and alcohol brands dominate 2019’s ABC Index of the overall top brands.

Ɏǝƺǣȸ ȵǼƏƬƺɀ ǣȇ Ɏǝƺ ɎȒȵ ‫ ׎׏‬ȒɮƺȸƏǼǼ ǼǣɀɎِ Australian wines were noticeably absent from last year’s

Only those industries that show Australia’s appeal as a

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tourist destination or Chinese consumers’ appreciation

Cosmetics, FMCG, and property brands dominated the list in 2018, proving that the market is malleable and can accommodate new brands. It also shows how quickly brand perception can change.

for Australian vineyards, breweries and distilleries are ȸƺȵȸƺɀƺȇɎƺƳ ǣȇ Ɏǝǣɀ ɵƺƏȸ‫ټ‬ɀ ȒɮƺȸƏǼǼ ɎȒȵ ‫ ׎׏‬ǼǣɀɎِ This year, Chinese consumers have ranked Adina Apartment Hotels as the overall #1

Australia Focus

Looks Like We Made It

he famous green-and-gold kangaroo Australian Made, Australian Grown (AMAG) logo is now a registered trademark in Hong Kong, the Australian Made Campaign has announced.

This means that for the first time Australian exporters have a registered symbol that can be used on Australian made or grown exports into Hong Kong, which both establishes products as genuinely Australian and is legally protected under Hong Kong law. According to Austrade, Australia exported A$11,391 million worth of merchandise to Hong Kong during the 2017-18 financial year, making it Australia's sixth most important destination for merchandise exports. “Almost half of all our licensees use the Australian Made logo on exported products. The formal registration of the logo in Hong Kong provides an essential legal framework which exporters can rely upon if the logo is copied or used without proper authority,” Australian Made Chief Executive Ben Lazzaro, said. “Hong Kong presents a huge opportunity for Aussie makers and growers, especially with the recently signed AustraliaHong Kong Free Trade Agreement, and we’re proud to help our nation’s exporters leverage this growing market.”

History of Australian Made The AMAG logo celebrated its 30th anniversary in 2016, but the origins of the campaign can be traced back over 100 years. 1930s - 1960s The merits of buying Australian made have been advocated in Federal Parliament since Federation, and chambers of manufactures have been championing the cause in publications and press advertisements since the 1930s. In 1961 a national campaign called Operation Boomerang was launched by the Associated Chambers of Manufactures of Australia to strengthen the profile of local manufacturing and encourage people to buy locally made goods. Its logo, a red boomerang on a blue background with the Southern Cross can still be seen today.

1980s - 1990s In 1986 the Australian Government commissioned the introduction of the Australian Made logo. It was designed by Melbourne graphic designer, Ken Cato, and officially launched by then Prime Minister, Bob Hawke. It was to be administered by the Advance Australia Foundation for the next 10 years. The logo reverted back to the Australian Government when the Foundation went into voluntary liquidation in 1996.

Austrade’s Hong Kong Senior Trade Commissioner, Sam Guthrie, said, “We are delighted to see the Australian Made logo recognised as a trademark in Hong Kong. This important mark provides consumers with the reassurance they are buying a product with the clean, green, quality characteristics that trusted Australian provenance guarantees.

In the late 1990s the Australian chamber of commerce network established the not-for-profit company Australian Made Campaign Limited (AMCL), along with a new code of practice for the logo, and in 1999 it was officially relaunched by then Prime Minister, John Howard.

The Australian Made logo is already being used on many products available at retail level in Hong Kong. Local consumers value Australia as a preferred country of origin for safe, green and clean products. Trade buyers are also approaching our Austrade team to look for products with recognisable logos of Australian authenticity. The logo effectively delivers Australia’s capabilities in premium products to consumers, which contributes to the sustainable development of Australian exports to this region.”

In 2002 ownership of the Australian Made logo was transferred to AMCL. A Deed of Assignment and Management Deed ensure the Government’s ongoing connection to the logo remains strong.

The logo registration covers 10 classes which include: cleaning products, soaps, toiletries, cosmetics; pharmaceuticals, veterinary pharmaceuticals, infant formula, baby products; furniture; clothing and footwear; food and beverages, including alcohol; and retail services

2010s & beyond

The formal registration of the AMAG logo in Hong Kong builds on its registration in other key export markets, including the USA, China, Singapore, Korea and India. To find out more about applying to use the AMAG logo visit: www.australianmade.com.au. August 2019

2000s

The logo was renamed the ‘Australian Made, Australian Grown’ logo in 2007 when the Federal Government decided to use it as the centrepiece of its new food labelling initiative, ‘Australian Grown’. Ken Cato was commissioned to give the logo a more contemporary look and feel and the rules governing the logo’s use were extended to include fresh and packaged produce.

In 2011, the Code of Practice was revised to allow use of the ‘Australian Seafood’ descriptor with the logo. In mid-2012, Roy Morgan Research found that almost all Australian consumers (98.8%) recognise the logo, and it is the logo which gives the vast majority (88.6%) of Australian consumers strong confidence that a product is Australian. The Australian Made campaign continues to grow in size and stature. The logo is now used by more than 2600 businesses on over 16,000 products sold in Australia and export markets around the world.

Towards a Sustainable Future

Clearing the Air The government has launched a public engagement exercise on its long-term decarbonisation strategy. A recent InterCham event introduced the issues for consideration - held during a week the city was sweltering under the hottest and haziest days of the year made the subject all the more relevant.

utting back on new t-shirts and swapping steak for potatoes are among possible solutions to achieving Hong Kong’s decarbonisation target. B ut is this realistic? The government’s public engagement exercise to frame its policy framework to 2050 was introduced at a recent InterCham breakfast by Dr Winnie Law, the Associate Director and Principal Lecturer of the Centre for Civil Society and Governance at the University of Hong Kong, who are leading the exercise for the Council for Sustainable Development (SDC). Decarbonisation Target In 2015, 196 signatories adopted the historic Paris Agreement. It is a multilateral treaty for combating c l i m ate c h a n g e w i t h a m b i t i o u s goals for building up a low-carbon, resilient and sustainable future. All signatories of the Agreement are committed to holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels. As the Paris Agreement applies to the Hong Kong Special Administrative Region, it is the government’s obligation to formulate the long-term decarbonisation strategy up to 2050 by 2020, and review climate change efforts every five years.

change. Just a few months back, we even experienced the warmest winter solstice since records began in 1884,” writes the Arthur Li, SDC Chairman in the public engagement discussion paper. The Hong Kong Government has invited the Council for Sustainable Development to launch a territorywide public engagement exercise to gauge the views of the public and different stakeholders in formulating an aspirational yet achievable longte r m d e c a r b o n i s a t i o n s t r a te g y,

char ting prac tical pathways, and mobilising stronger climate mitigation actions across different sectors of the society, thereby contributing to the global decarbonisation effort. The Council also released a Public Engagement Document to highlight three main topics for public discussion: Transition towards a low-carbon society According to 2019 data, we need more than four Earths if everyone in the world follows the lifestyle of Hong Kong people.

Food Waste Disposal (in gram per person per day in Hong Kong)

Your Every Step Counts

“Hong Kong, a coastal city with a subtropical climate, is especially vulnerable to risks related to climate change. For instance, Super Typhoons Hato and Mangkhut battered the city in 2017 and 2018 respectively. These are some of the latest grim evidence of the growing threats posed by climate cont P.12

Towards a Sustainable Future cont from P.11

We can explore room for improvement and can do better in reducing our carbon footprint in order to combat climate change. A less wasteful and energy saving lifestyle is a “must” way to begin with.

Everything we need in daily life has a carbon footprint and food is no exception. Food’s carbon footprint is the greenhouse gas emissions produced by growing, rearing, farming, processing, transporting, storing, cooking and disposing of the food we eat. Changing our dietary patterns (e.g. more vegetables, less meat), choosing locally grown produce, and minimising our food waste can have a big impact on our carbon footprint.

electricity consumption accounted 2019. The Public Engagement Document for another 2% of the overall carbon can be downloaded from the Council's emissions which are covered in the dedicated website. electricity generation sector). The public interaction phase of the public engagement will run until 20 September 10 Energy Saving Tips For Home

Reducing energy use and further decarbonising electricity generation Energy is an essential part of daily life and is also important for our economic activities. To embark on our low-carbon transition journey, it is important to know how energy is used by households, industrial and commercial organisations and the transportation sector. In Hong Kong, over 50% of the total annual energy use is in the form of electricity consumption. Buildings accounted for about 90% of the city’s electricity use and some 60% of total GHG emissions.

10 Energy Saving Tips For Office

Currently, about 67% of Hong Kong’s carbon emissions comes from electricity generation. Therefore, decarbonising the electricity generating sector plays a key role in the decarbonisation strategy. Low-carbon transport in a smart city Tr a n s p o r t at i o n i s a n i m p o r t a nt component of Hong Kong’s economy, which accounted for around 31% of total energy end-use in 2016. Although Hong Kong has a welldeveloped public transport system with railway as its backbone, the transport sector as a whole produced 18% of the total carbon emissions locally (railway August 2019

A follow up InterCham event ‘Decarbonising Hong Kong in the Areas of Energy, Transport and Consumption’ will be hosted by the Hong Kong General Chamber of Commerce on Monday 26 August.

Venue sponsor:

Towards a Sustainable Future

Education Spotlight

Learning Curve Australian universities are developing new and innovative relationships with universities and educational institutions in Hong Kong.

Photo credit: University of Sydney and University of Hong Kong

alking through the maze-like campus of City University in leafy Kowloon Tong are desks to sign up for various societies and interviews for eager students ahead of the new curriculum year. A common scene across Hong Kong campuses through the summer, but this time there was something different on offer. An Australian university, the University of Wollongong, which has taken an innovative approach with its engagement in Hong Kong, is for the first time offering locally accredited degrees to its potential Hong Kong intake. This is a subtle but significant development reflecting how Australian universities are developing their relationships with universities, educational institutions, and directly with business in Hong Kong. Most Australian universities now produce strategic plans and, in almost all, goals for greater global engagement are included. Traditionally this has meant course offerings, students exchange programs and research collaboration. Now Australian universities are expanding a web of strategic ties with universities across the world and Hong Kong, given its consistent high ranking for the quality of its universities, has been a focus for this engagement. Australian universities have for decades been popular with Hong Kong students, given the proximity, prestige, and, compared with counterparts in the US and UK, affordability (see page 17). Universities are now moving beyond simply luring international students to find how they can market their expertise internationally. Many are engaging with AustCham in Hong Kong for its Intern Program (see page 19). Australia’s peak university body Universities Australia (UA) which August 2019

represents 39 universities views international engagement as key to Australia’s world-class higher education sector. “Australian universities don’t just welcome students from all around the globe; we also collaborate with academics and university educators from almost ever y countr y worldwide to drive new discoveries, knowledge and innovation,” UA Chief Executive, Catriona Jackson told AustCham News. “Engagement in our region - including the increasing number of collaborations and Catriona Jackson links between universities in Australia and Hong Kong - means working with the best and brightest in our part of the world. We value these important connections with our neighbours – and we all benefit from those ties. Bricks and mortarboards The University of Wollongong, which partners with AustCham in sponsoring our Mentor Program (see page 20), has perhaps made the largest foot print in the city. This year it will be offering locally accredited degrees – a first for an Australian university. UOW College Hong Kong (UOWCHK) evolved from the Community College of City University (CCCU), which came under the stewardship of the University of Wollongong (UOW), in July 2015 in a strategic alliance with the City University of Hong Kong. It offers a range of programs from foundation to degree level studies. The undergraduate degrees offered by UOWCHK have been accredited by the Hong Kong Council for Accreditation of Academic and Vocational Qualifications. The curricula have been designed specifically for Hong Kong, capitalising on the College’s strong links with industries and with employability cont P.15

Education Spotlight cont from P.14

Competitive climate

and international mobility of graduates in mind, according to UOWCHK’s Chief of Staff, Vanessa Bourne. She said there was some challenge in the approach UOW took, but it is paying off. “There is a high level of risk and it is hard to unravel but this model works well for us. We know how to maintain high standards,” Ms Bourne said. “Australian degrees are well regarded; what’s tough about Hong Kong is that the public universities here are highly regarded.”

Richard North

Australia’s oldest university, the University of Sydney (UoS), has had a long-term relationship with the University of Hong Kong. It also has a partnership with the Chinese University of Hong Kong. It offers courses but there is also a focus on research. It ranks highly for sports related subjects such as pyshio, medicine, and law

Total enrolment in 2018 was approximately 6,000 students and the campus has 220 staff.

“In September 2016 we signed the first of our new strategic partnerships with the University of Hong Kong, agreeing to support greater collaboration in research, teaching and learning, and knowledge exchange through a joint Global Strategic Partnership Fund,” said Richard North, Manager, Global Strategy and Reporting, Office of Global Engagement.

“This year we will be offering locally accredited degrees in Hong Kong. We have tailored to Hong Kong market skills in consultation with industry partners and local consultation with business on work force demands.

“We have been an active partner with the university for many years. More than 350 joint research papers have been published in the last decade across key areas that include electrical engineering, pharmacy, sustainability, and urban planning.”

Study areas are accounting, languages and communication, aviation, business administration, and social sciences.

Both partners each inject A$180,000. A more recent agreement was signed with the Chinese University of Hong Kong, both universities commit A$50,000 per year for three years to collaborative projects, including joint research and staff/student mobility.

We want our niche to be this global footprint The Hong Kong campus will move to Tai Wai in 2023 and plans to operate as a fully-fledged university within 10 years. “UOW plans to concentrate on its research specialisations which may fit with Hong Kong’s development such as smart building material, rolling stock/mass transport; nano tech, and social work. “We want our niche to be this global footprint,” said Ms Bourne. UOW Global Enterprises, a subsidiary group of the university, which owns and operates the Hong Kong campus was recognised in this year’s AustCham Westpac Australia-China Business Awards winning the Business Excellence Award for Consumer Services.

UOWGE'S Cath McCollim, MD & Group CEO Marisa Mastroianni, and Vanessa Bourne

“We have signed an agreement to set up a joint big data lab for integrative medicine and have created a short-term faculty exchange program that will provide mobility funding for up to four Sydney academics working with partners at the Chinese University of Hong Kong.” “The research areas are across the board but a lot in the past have been with HKU in pharmacy. One research project with HKU looked improving detection rates in Asian women for breast cancer. This has gone from research to application.” (see side story page 18) “We don’t rule out more partners in Hong Kong but we are more focused on nurturing the existing ones We are very keen to work with business and industry.” “There is so much competition for visibility now. International research is much higher rated if there is international collaboration and it gets more notice.” The University of South Australia (UniSA) has a long history of offshore teaching with partners in Hong Kong: a 25-year partnership with the School of Continuing Education at the Hong Kong Baptist University which offers five full-time undergraduate top-up degrees in market - Bachelor of Aviation (Management), Bachelor of Business (Management), Bachelor of Business (Sport and Recreation Management) (first intake September 2019), Bachelor of Business (Tourism and Event Management) and Bachelor of Nutrition and Food Sciences (Food Sciences). Meanwhile, the Hong Kong Management Association (HKMA) runs the UniSA Business School MBA programs with specialisations in marketing, HR and finance. cont P.16

Education Spotlight cont from P.15

“We also have strong student exchange relationships with CityU and Chinese University of Hong Kong and ongoing research collaborations between researchers at UniSA and researchers at Hong Kong Polytechnic University, University of Hong Kong, City University of Hong Kong, Hong Kong University of Science and Technology, Chinese University of Hong Kong,” said Pro Vice Chancellor International, Gabrielle Rolan. Regional engagement

“UniSA is committed to genuine global engagement particularly in our own region - the Asia Pacific. Education and research are the best vehicles for connecting across cultures at a deeper level. The value derived from our education and research partnerships in Hong Kong continues to be significant.” • Support for emerging industries by providing relevant education – UniSA’s activities in aviation education have included the running of a 2-week aviation camp for a cohort of students studying an Associate Degree in Piloting at a partner institution in Hong Kong. The study tour was held in Adelaide and included 5 hours of flight time per student. • Research relationships supporting global innovation in engineering, IT and telecommunications. UniSA will continue to build on its major transnational/ offshore program relationship with Hong Kong Baptist University (HKBU) and will not seek other transnational/ offshore program relationships other than maintaining the current relationship with HKMA.

areas of ICT, engineering, physical, chemical and biological sciences, education, media communication, visual art, business and economics. “There is a rich history of collaboration between RMIT and Hong Kong academics that has resulted in more than 300 research publications, and we’ll continue to proudly build on those global research opportunities,” said a RMIT spokesperson. New South Wales’ Charles Sturt University (CSU) has had a long-term relationship with the Hong Kong University School of Professional and Continuing Education (HKU SPACE) and the Ming Hua Anglican Theological College.

“In fact, we’ll be celebrating our 30-year anniversary of our information studies (libraries) partnership with HKU SPACE this year. In addition to our education delivery partnerships, we’re also forging short-term education and capacitybuilding partnerships with a number of organisations,” At their heart, universities are about said Tom Burton, Acting Pro Vice-Chancellor (Community discovering and sharing new knowledge and Global Engagement) at – and that’s something that delivers Charles Sturt’s Office of Global great benefits for both Hong Kong and Engagement & Partnerships. Australia

R M I T U n i v e r s i t y, b a s e d in Melbourne, has had a presence in Hong Kong since 1998, and has worked with three partners in both academia an d in d u s t r y. Programs have included fine art, engineering, construction management and an Executive MBA. These relationships have included: • Hong Kong Arts Centre: The partnership celebrated 20 years in 2018 and has helped transform the Hong Kong arts landscape and continues to offer opportunities for emerging artists. In that time, more than 850 graduates who have gone on to become some of Hong Kong’s most well-known fine artists. • VTC School of Higher and Professional Education (SHAPE). This partnership has shown strong growth since its inception in 2003, with all programs securing regulatory body and professional accreditations both in Hong Kong and Australia. • Mandarin Oriental Hotel Group from 2003 – 2016, a longstanding example of a successful, bespoke, industry collaboration • There were 303 collaborative research publications between RMIT and Hong Kong academics between 2013 and 2018. These publications are predominantly in the August 2019

“ We learned from the beginning for our long-term engagement in Hong Kong that true value is created by a commitment from both organisations. If this isn’t present in the relationship, challenges inevitably arise. Once trust and commitment exist, there are many amazing outcomes. For example, we’ve educated most of the librarians in Hong Kong. CSU believes there are further opportunities for more partnerships with Hong Kong education providers and professional bodies, who are seeking different types of qualifications and education. “This isn’t necessarily about award-based education, but instead about capacity building and professional development. That’s a trend we’re seeing in a number of markets,” Mr Burton said. “So of course we’re looking to find like-minded organisations in Hong Kong who might be interested in partnerships under a range of models. This ranges from things like social work and theology, through to policing studies.” cont P.17

Education Spotlight cont from P.16

Last year, the Hong Kong Police College renewed a fiveyear Memorandum of Understanding (MoU) on academic co-operation with CSU. These programs cover anti-money laundering and counter terrorist financing; intelligence analysis; emergency management; fraud and financial crime; investigations; and terrorism and security studies. “At their heart, universities are about discovering and sharing new knowledge – and that’s something that delivers great benefits for both Hong Kong and Australia.” The University of Queensland (UQ) also has significant student and alumni links with Hong Kong, and engagement is increasing across teaching, learning and research. Research project collaborations, co-publications, and people-to-people links with Hong Kong institutions have ramped up in recent years, particularly in areas relating to business and economics, information technology, and public health. “The University of Queensland’s vision is to provide knowledge leadership for a better world. As part of achieving this vision, we aim to be Australia’s most globally connected university and achieve a lasting influence on the communities with which we engage through the creation, preservation, transfer and application Irini Cavalliotis of knowledge,” Irini Cavalliotis, Manager, Intelligence and Engagement at the University of Queensland.

2018

UQ has formal agreements with four Hong Kong institutions, INTERNATIONAL facilitating student exchange andSTUDENT research collaboration: SURVEY Chinese University of Hong Kong; City University of Hong RESULTS Kong; Hong Kong Polytechnic University; and University of Hong Kong. EDUCATION HIGHER HIGHER EDUCATION STUDENT EXPERIENCE IN AUSTRALIA

89%

93% ARRIVAL

90%

88% LEARNING

LIVING SATISFACTION

SATISFACTION

92%

OVERALL SATISFACTION

91% SUPPORT

SATISFACTION

STUDENT SATISFACTION

88%

EXPERTISE OF LECTURERS AND ACADEMIC STAFF

VIRTUAL LEARNING

FORMAL WELCOME AND INSTITUTION ORIENTATION

ACCOMODATION QUALITY AND SAFETY IN AUSTRALIA

DISABILITY SUPPORT

83% EMPLOYABILITY

92%

93% 90%

95%

94% 2018

90%

OVERALL SATISFACTION OF INTERNATIONAL HIGHER EDUCATION STUDENTS IN AUSTRALIA AND GLOBALLY Overall

62,284 HIGHER EDUCATION STUDENTS RESPONDED IN 2018

Support

Australia ISB

Learning Global ISB

Living

ED19-0047

* 24% response rate

90% FELT HAPPY WITH THEIR EDUCATION PROVIDER

Since 2014, UQ has collaborated with seven Hong Kong institutions on nine research projects; four of these projects are collaborations with the Chinese University of Hong Kong. The majority of this funding is for one active project – the ARC Centre of Excellence for the Dynamics of Language. UQ has collaborated with Hong Kong institutions on 457 copublications (articles and reviews) in the period 2014-2019 (March), largely in the areas of public, environmental and occupational health; civil engineering; and psychiatry. World class Building on the focus areas outlined in the UQ Strategic Plan (2018 and beyond), the UQ Global Strategy is underpinned by five key objectives that will require a whole-of-institution approach to partnerships with Hong Kong – and globally, more broadly – and a commitment to delivering global outcomes. Last year, Macquarie University formed a combined business unit that integrated its faculty of business and economics, Macquarie Graduate School of Management (MGSM) and Macquarie Applied Finance Centre into a single, clear structure – the Macquarie Business School – to encompass all business and management research and education at the university and create a strong leader in business, management and economics research and education. Macquarie is ranked among the top 1% of universities worldwide. MGSM has been offering postgraduate management programs with The Hong Kong Management Association (HKMA) since 1994. Macquarie Business School also actively invites partnerships with industry players, businesses and professionals in Hong Kong to offer its tailor-made, industry-specific electives through live case methods and works with the AustCham through the AustCham Macquarie Business School CEO Forum to strengthen networking opportunities for graduates and alumni. In October last year HKU SPACE and Edith Cowan University (ECU) from Western Australia signed a memorandum of understanding (MoU) to establish strategic partnerships and further develop the program collaboration between the two institutions. The programs include cyber-security and social science. Established in 1991, ECU has eight schools collectively deliver more than 250 diverse courses across medical and health sciences, engineering, education, arts and humanities, business and law, nursing and midwifery, science and the Western Australian Academy of Performing Arts. It has grown rapidly into a quality university with internationally recognised research. It also has an exchange program with the Hong Kong Academy for Performing Arts.

Arrival 85

Per cent (%)

Global International Student Barometer (ISB) incorporates responses from International Students across 17 countries including USA, Canada, UK and New Zealand.

Source: Australian Government Dept of Education & Training

“At their heart, universities are about discovering and sharing new knowledge – and that’s something that delivers great benefits for both Hong Kong and Australia,” said UA’s Catriona Jackson.

Education Spotlight

Improving breast cancer detection – in Australia and China “The detection rate for breast cancers in Asian women is unacceptably low, and Chinese women die at three times the rate of Australian women from breast cancer,” she said.

For me, the magic of research partnerships lies in a shared goal of translation.

Fewer than 65% of women survive a breast cancer diagnosis in China, whereas the five-year survival rate in Australia is about 92%.

rapid increase in the number of breast cancer cases in China led researchers in Sydney and Hong Kong to look for ways to improve the screening process for Asian women. University of Sydney Associate Professor Sarah Lewis (above), a radiology researcher in the Faculty of Health Sciences, worked with staff at the University of Hong Kong on a jointlyfunded project to improve breast cancer detection for both Chinese and Australian women.

The biggest challenge facing radiologists is that Chinese women typically have a high proportion of fibro-glandular tissue in their breast, which makes screening mammograms difficult to read. The research project looked at a number of different ways of tackling the problem, including development of a webbased education tool for radiologists, to assist with breast cancer detection in high-density cases. Source: University of Sydney

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

August 2019

ard

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

Intern Program

AustCham Intern Program

ustCham’s intern program offers Au s t r alia n s t u d ent s wo r k-p la ce experience in one of Asia’s most dynamic cities to complement their studies, further their horizons, and add to the unique relationship between Australia and Hong Kong. We invite you to become par t of this comprehensive program which will connect talented young Australian under-graduates with Hong Kong-based companies across various industry sectors. AustCham provides a 360° internship service from screening top students, visa applications, accommodation, orientation program, events, targeted placement and fulltime in country support. Our team ensures a high value, enriching, seamless and stress-free program for universities, students and host companies alike. Host Companies Please join our portfolio of host companies to offer placements to undergraduate and graduate students from a selection of nationwide Australian Universities and Institutions to help enrich their learning and inject young talent into your organisation. If you are interested in participating in this year's exciting program, please email the application form to intern@ austcham.com.hk and AustCham will help find the ideal candidate. Universities and Students Are you an Australian university looking for a stronger engagement with Asia? Or a student interested in seeking valuable Asian experience? AustCham’s 1,400 members provide the perfect network with access to all industry sectors. The AustCham Intern Program will allow students to acquire real working experience in an entirely new and diverse culture. In addition to an intern placement, we offer a full end-to-end service, including the visa application process, source affordable accommodation, orientation pack and facilitate an orientation program (for group bookings) and invite you to our AustCham networking calendar events. The program will offer many exciting opportunities for both universities and students to c rea te p eople -to -p eople co n n e c t i o n s t h r o u g h o u t Hong Kong for a sustained engagement with Asia. More info: Ready to apply? Send an email to intern@austcham.com.hk and we can start the application process.

Mentor Program

Apply Now for 2019 Program

ong Kong’s leading mentor program, the AustCham UOW Mentor Program, is now open. This highly soughtafter program reached capacity quickly last year so we encourage you to register now.

We are accepting applications from both senior executives and aspiring mentees. This eight-month program (September 2019 - May 2020) matches mentors and mentees; a valuable relationship where both can learn from the other. It also offers unparalleled learning and sharing opportunities providing access to senior executives and thought leaders through monthly workshops/sessions. We run a combination of professional development, executive sharing, panel sessions, workshops and social events.

About the Program: The Australian Chamber of Commerce Hong Kong UOW Mentor Program is the first of its kind among Hong Kong’s business organisations. Ambitious young executives and entrepreneurs are matched with today’s leaders across various sectors including financial, legal, construction, public sector and education.

Mentees: • We seek individuals who are working in Hong Kong, have clear goals and an insatiable desire to learn. This requires a commitment to regular monthly meetings (dates to be confirmed) and engagement with your mentor.

Mentors: • We welcome your generosity in sharing your experience, wisdom and knowledge, with a commitment to attend eight core events.

Regarded as a flagship program of AustCham, more than 250 mentees and mentors have participated since 2013. Now in its eighth year, the program is proudly sponsored by the University of Wollongong. Program Objectives: • Access to some of Hong Kong’s leading executives and thought leaders • Strengthen leadership skills • Unrivalled opportunity to access latest business insights and trends • Extraordinary learning and development opportunity, including reverse mentoring • Valuable network of mentees and mentors • A chance for senior executives to contribute to the development of tomorrow’s leaders August 2019

Title sponsor:

Act Now: Register by 30 August *Any questions, please contact mentor@austcham.com.hk or +852 2115 3038.

Focus on Education

Advertorial

AISHK Offers Pathway to Bright Future In 1995, Australian International School Hong Kong (AISHK) was founded to provide Australian and internationally mobile families with the opportunity to attend an Australian school. Schooling at AISHK meant that their children could transition in and out of Hong Kong without compromising their primary or secondary education.

This mission is still as relevant today as it was in 1995. However, many families from around the globe today also choose to send their children to AISHK as they feel it is the best learning environment and cultural community in Hong Kong to prepare their children for attending an Australian university. Australian universities are some of the very best in the world and are highly regarded by Hong Kong families. Many Hong Kong people have attended Australian universities themselves and aspire for their children to follow in their footsteps. AISHK provides students and their families with the perfect opportunity to achieve this dream. In line with providing an Australian and international education in Hong Kong, A ISH K of fers sen ior Secondar y students the option to graduate with either the NSW Higher School Certificate (NSW HSC) or the International

August 2019

Baccalaureate Diploma (IBDP). In doing so, AISHK provides continuity and choice; continuity for those who are seeking an Australian education outside the country and choice for those who would like options for secondary examinations and the opportunity to apply to universities globally. By allowing this flexibility, our students achieve outstanding academic results in both programs and receive offers to Australiaâ&#x20AC;&#x2122;s most prestigious universities into their most highly soughtafter courses. At AISHK we have committed staff including the dedicated Career Education team who are very familiar with Australian universities and their entrance procedures. Our students are given the best advice and guidance when making their decisions and applications, with many Australian universities visiting our school each year, providing advice and a chance to meet with their staff - right here on our doorstep. Of our graduating class of 2018, 62% of students accepted offers at Australian universities across the country. With such large numbers of AISHK alumni at many Australian universities, AISHK students are ensured of starting university with a support network of people they know. Mark Hemphill | Head of School

At AISHK, itâ&#x20AC;&#x2122;s all about balance.

Hong Kong Focus

Start-ups Need More Support to Grow Up A new report highlights the development of the entrepreneur ecosystem in Hong Kong and what more needs to be done to nurture it

H 22

ong Kong entrepreneurs are optimistic about the future growth prospects of their companies. However, growth may be constrained if support is not better targeted to the needs of start-ups as they grow and scale, according to the latest Transforming Hong Kong through Entrepreneurship study jointly launched by KPMG China and the Alibaba Hong Kong Entrepreneurs Fund. This is the second year of the joint study, which examines the vibrancy of Hong Kong’s start-up ecosystem, identifies gaps that need addressing to help drive further progress, and provides recommendations to further enhance the Hong Kong's start-up landscape. The study is based on surveys of 393 Hong Kong-based entrepreneurs and students, interviews with key opinion leaders and an analysis of venture capital funding directed at Hong Kong start-ups. “Through this study, we aim to encourage stakeholders in the public and private sectors to jointly address the current gaps that pose challenges to the development of the entrepreneurial ecosystem. Only through working together to focus on Hong Kong’s long-term development can we make a lasting impact on the economy and society at large,” writes Irene Chu, Partner, Head of New Economy and Life Sciences, Hong Kong KPMG China KPMG. This year’s study features the inaugural Hong Kong Entrepreneurship Development Index, which tracks entrepreneurs’ and students’ current perceptions and future Vibrancy of Hong Kong's start-up ecosystem

Source: KPMG survey analysis

August 2019

outlook for 10 factors related to purpose and capabilities measured in the survey. The survey reveals that fintech ranks as Hong Kong’s strongest innovation sector, with 67% of entrepreneurs and 61% of students agreeing Hong Kong is well-positioned as a fintech innovation hub. For other sectors, however, opinion was more divided. Some 48% of entrepreneurs polled agreed Hong Kong is well-positioned for smart city innovation, 45% say the city is an innovation hub for artificial Intelligence and 36% say the same for biotechnology.

Only through working together to focus on Hong Kong’s long-term development can we make a lasting impact on the economy and society at large KPMG analysis of venture capital (VC) investment over the past six years conducted for the study shows a more than 20-fold increase in capital directed at Hong Kong-based start-ups. Meanwhile, average deal size for private VC investments has risen more than 35-fold within the same period. Despite the increase in capital invested, the survey suggests gaps in access to formal sources of funding, such as venture capital, private equity, crowd funding, government funding and bank loans. For example, 20% of entrepreneurs polled say they currently use VC funding, compared to 80% who expect to be using it in three years’ time. Comparatively, 70% say they currently use their own savings. cont P.23

Hong Kong Focus Hong Kong's positioning as an innovation hub

Source: KPMG survey analysis * Fintech category includes blockchain, regtech and insurtech

cont from P.22

Key findings The study finds that Hong Kong entrepreneurs are ambitious about the long-term growth prospects of their companies, are increasingly looking to expand their businesses outside of Hong Kong, and are making better use of available support services. However, growth may be constrained if support is not better targeted to the needs of start-ups as they progress from early to growth stage. In addition, more needs to be done to ensure that founders and those interested in working for start-ups receive sufficient support from family, friends and the general community. • More entrepreneurs surveyed agree Hong Kong is a dynamic and vibrant start-up location compared with last year, but additional targeted support for growth stage ventures and emerging sectors is needed • Students rank Hong Kong as their most preferred place to start a business, but this may shift by 2025 as mainland China’s tech hubs continue to develop • Entrepreneurs are ambitious about long-term sales growth and target markets, but results point to a gap in community support • Hong Kong’s competitive advantages are shifting, while cost of doing business remains a key challenge • Start-ups expect to increase their use of formal funding sources, but more education is still needed to improve access to funding • Use of support services is increasing, but gaps in effectiveness pose a risk to future vibrancy as start-ups move from early stage to growth stage

• The talent picture is improving for Hong Kong start-ups, but more should be done to cultivate local talent and develop an entrepreneurial mindset Next steps To enable Hong Kong to continue to improve its entrepreneurial ecosystem, the report’s recommendations include: • Both government and the business community should expand offerings to better support growth stage and mature stage start-ups • Founders should prioritise sourcing formal funding by elevating their financial ambition, accelerating global market entry and engaging mentors throughout the lifecycle • International private equity and venture capital firms should utilise changes to profit tax exemptions announced for Hong Kong, and the government should continue to promote these exemptions as well as the other benefits Hong Kong offers as a regional fund management centre • All stakeholders should further focus on enabling open data, technology transfer and commercialisation of research in the priority sectors to support Hong Kong’s digital transformation • Hong Kong should better leverage the Greater Bay Area as a logical and accessible talent pool • As founders build technology start-ups, they should ensure they are also building a people business that enables growth • Government agencies, corporates and other industry players should better educate the wider community on the irreplaceable value of start-ups The full report is available here

Committees in Action - WIBN

How Diverse is Hong Kong’s Financial Services Sector? Myths Exposed While there is ever more focus on the importance of gender diversity in the workplace, there is still much that needs to be done. The findings of a report looking into the financial services sector in Hong Kong were discussed at a recent panel session organised by AustCham’s Women in Business Network.

A 24

recent report by PwC and The Women’s Foundation (TWF) details the state of gender diversity in the financial services sector in Hong Kong, addressing many of the common misconceptions about women working in the industry. In partnership with an informal group of women chief executives from the sector in Hong Kong, PwC, with the support of TWF, conducted a survey to gain an initial insight of the state of women’s advancement within a group of 15 firms in Hong Kong. The survey, including a series of interviews with the participating organisations, looked at the views from both an organisational standpoint and from the perspective of their employees. The report’s data shows that, especially in the context of Hong Kong, the position of women is lagging behind other developed markets. While women comprise 52% of entry level positions, the proportion falls to approximately 33% at the senior management level and declines further to 21% at board level. Targeting this pipeline issue, the report explores some of the common misconceptions around barriers to women’s advancement. Highlights • Lack of career progression plays a significant role in women’s decisions to leave a company: 73% of the surveyed organisations said “lack of career progression” and other career opportunities are the top reasons why women leave their organisations; only 21% of organisations listed “lack of childcare caregiver options” or “cultural pressure to stay at home” among the top reasons why women leave their organisation. • Senior women perceive a pay gap disparity: Despite corporate views of pay equality, 73% of senior female employees felt that senior women do not earn as much as senior men whereas only 23% of senior men agreed with that statement. • Leadership buy-in drives greater impact for gender parity: While diversity recruitment measures are necessary to increase female representation in senior positions, greater impact can be achieved through top-down cultural changes.

• Flexible working policies will help balance the gender gap: Policies around gender-neutral flexible working arrangements should be prioritised to ensure that working arrangements can enable and attract a broader workforce to stay within the organisation. • Policy is the enabler; culture and tone from leadership is the driver: Leading by example, especially from senior leadership, is the most effective way to normalise a culture of inclusion and empowerment. This drives the positive behavioural changes necessary for committed action and results.Financial Services Consulting Leader, PwC Hong Kong, Harjeet Baura, said that gender equality and inclusion in the workplace requires organisations to not only set the tone from the top, but also engage their line managers and middle-management.

What becomes clear is that collective action is needed to bring about change

Key takeaways • Formal sponsorship programs are critical for women's career advancement: In addition to clearly defined career paths, sponsorship programs for women are necessary to increase their representation at senior levels. August 2019

cont P.25

Committees in Action - WIBN cont from P.24

Financial Services Consulting Leader, PwC Hong Kong, Harjeet Baura, said that gender equality and inclusion in the workplace requires organisations to not only set the tone from the top, but also engage their line managers and middle-management. “This will create a sustainable shift in the cultural mindset that runs through the organisation. To drive this organisational change and move from conversation to action, leaders need to actively listen and acknowledge the obstacles women face around career advancement. Only then can organisations put in place effective measures to prevent losing their female talent. These measures might include prioritising flexible working policies, providing sponsorship opportunities for female talent and addressing any perceptions relating to unequal pay for women.” According to Fiona Nott, CEO of The Women's Foundation and Deputy-Chair of AustCham’s Board of Directors, the survey, while only a snapshot of perspectives in the financial services industry, shines a light on the status of workplace gender equality in Hong Kong as a whole. “What becomes clear is that collective action is needed to bring about change. We hope this survey serves as a starting point for comprehensive, Hong Kong-specific research on challenges to achieving gender parity across industries, and that it strengthens cross-sector collaborations to find innovative solutions to close these gaps."

Through consulting with the financial services companies, the report also released a collection of best practices and key recommendations to be implemented within organisations to strengthen the representation of women in senior leadership positions in Hong Kong in the areas of policy and culture, recruitment, retention and promotion, flexible work arrangements, and reporting and accountability. A member of the informal group, ANZ Hong Kong CEO and AustCham Board Director, Ivy Au Yeung, said that the group aims to increase female participation at all levels in financial services through awareness, education and enablement. “The survey findings provide us with a comprehensive picture of gender diversity in the community. It enables us to understand how we can fulfill our aspiration by improving female access to financial education and providing them with a well-supported environment for career development in the financial industry. We look forward to supporting more initiatives to engage and inspire the current and next generations of future women leaders.” The full report is available here Women in Business Network sponsor:

New Members Ord Minnett Chris Moore

EVENTS UPDATE

ANZ Charlotte Chen

Origin X Capital Sandra Wu

AUGUST AT A GLANCE…

CK Infrastructure Holdings Ltd Chloe Hui Susana Chan

ORIX Financial Services Hong Kong Ltd Satofumi Suzuki

Thursday, 22 Aug, 12:00 – 2:00pm Mind, Body Business Series: Extending your Performance Window King & Wood Mallesons, 13/F Gloucester Tower, The Landmark, 15 Queen's Road Central, HK

Platinum Patron

CLP Holdings Ltd Edward Chan Lawrence Kerr

CPA Australia Alice Zhang KPMG Winnie Elbl Christian Leung Leighton Asia Andy Ho Yvonne Lo Sun Wai Mak Chris Telford Joean Wong National Australia Bank Audrey Yeung Westpac Bryan Kwai Ben Law Raymond Lo Li Ting Ng

Corporate Patron

7Cento HK Ltd Alessandra Lombardi

Corporate Member Additional ASG Group Jessica Chong

*Independent Event Delivered Through AustCham’s Event Management Service

The Financial Times (HK) Ltd James Lees

AustCham Business Centre, Room 301-2 3/F Lucky Building, 39 Wellington Street, Central, Hong Kong

Law in Order (Hong Kong) Ltd Sarah Bell

Individual Member Detmold Group Vivian Worden KCW and Associates Kara Cheung HGC Global Communications Alec Woon HSBC Luke Shepherd Jack Morton Worldwide Siobhan Rees

St. James Wealth Management Wei Roberts

Just Invest Australia Pty Ltd Jia (Vivienne) Li

Swisse Wellness (H&H Group) Kate Reid

NISI (HK) Ltd Michael Horman

Corporate Member Absolute Immigration Belinda Man Jamie Lingham Arcadis Lowan Chu Catalyst Alex Harrison Cordis Hotels Hong Kong Win Tsang Crown Worldwide Group Luis Contreras CT Group Andrew Whitford Elliott Advisors (HK) Ltd Nicholas Maran OFX Eloise Chu Felice Tobin August 2019

Tuesday, 27 Aug, 12:15 – 2:00pm LifePlan – How much is enough?

Reach Education Peter Kenny Refinitiv Susana Yeong University of Hong Kong Vivian Lin VCM HK Simon Clowes Venture HK Andrew Govan Wilkhahn Phil Ma

Young Executive Jonathan Keyes Aurex Group Ben Watt PwC Michael Venosta

Thursday, 29 Aug, 6:30 – 9:00pm Summer Drinks Residence of Australia's Consul General to HK and Macau, 39 Island Road, Deep Water Bay

SEPTEMBER AT A GLANCE… Thursday, 5 Sept, 8:15 – 9:30am The LEGO Play Experience: Children's imagination feeds our innovation KPMG, 8/F, Princes’ Building, 10 Chater Road, Central, Hong Kong Wednesday, 11 Sept, 12:00 – 2:00pm Free Flow of Information and Personal Data Protection Regime - Privacy Commissioner ANZ Office, Level 22, Three Exchange Square, 8 Connaught Place, Central, Hong Kong Thursday, 12 Sept, 12:00 – 2:00pm Mind Body Business Series: Food on the GUT Highway to the Brain! KPMG, 8/F, Princes’ Building, 10 Chater Road, Central, Hong Kong Tuesday, 17 Sept, 8:00 – 9:30am West Kowloon Cultural District - Where we are now and where we are going Herbert Smith Freehills, 23/F Gloucester Tower, 15 Queen's Road Central, Hong Kong Wednesday, 18 Sept, 12:00 – 2:00pm Virtual Banking TBC Thursday, 19 Sept, 6:00 – 9:00pm Mix at Six Mr. Wolf, 5/F Crawford House, 70 Queen's Road, Central, Hong Kong Tuesday, 23 Sept, 12:00 - 2:30pm 2019 Economic Briefing China Club, The Old Bank of China Building, Central, Hong Kong Thursday, 26 Sept, 6:30 – 8:30pm Mentor Speed Matching TBC

A Night of Tributes

he most recent Mix at Six paid tribute to two men who have been keen supporters and great friends of AustCham Hong Kong in their own ways for many years. It was fitting that the event was held at Mr Wolf; its owner Australian restauranteur Wayne Parfitt had recently passed away after a battle with cancer. Wayne had been a generous host with his venues for years. His very Aussie humour and hospitality will be hard to replace. AustCham Chairman Andrew Macintosh proposed a toast to celebrate the life of Wayne. Vale Wayne Parfitt. It was also an opportunity to celebrate Ian Robinson (right) one of our founding members with life honorary membership, bestowed on him by Andrew. Ian recounted how, about 32 years ago, the genesis of the Chamber grew out of a regular luncheon of like-minded Australians. After a recent injury, Ian was back in fine form with walking stick in one hand and a glass of red in the other.

Thank you to Mix at Six sponsor

Thank you to our venue partner

27 In memoriam: Wayne Parfitt, centre, a great mate of AustCham

AustCham CSR Partners AustCham is committed to giving back to the communities in which we operate – and, importantly, in which our members operate. Not only is this good for business, it is the right thing to do. We are pleased to support our three CSR partners.

The Australian Indigenous Education Foundation The Australian Indigenous Education Foundation (AIEF) is a private sector-led, nonprofit organisation focused on empowering young Indigenous people in financial need to build a brighter future for themselves and for the nation. AIEF provides scholarships that enable Indigenous students to attend leading Australian schools and universities, as well as mentoring and career support to ensure students make a successful transition from school to further studies or employment, productive careers and fulfilling lives. www.aief.com.au

The Fred Hollows Foundation

The Hub

The Fred Hollows Foundation is a leading Australian charity inspired by the work of the late Professor Fred Hollows. Fred was an eye doctor, renowned surgeon and highlyrespected Australian dedicated to ending avoidable blindness in developing countries.

The HUB is a children's support centre which provides educational support, extra-curricular classes, family counselling, social health and wellbeing services to those who need it most without discrimination.

Our vision is a world in which no one is needlessly blind. 4 out of 5 people that are blind don’t need to be. We work in 25 countries, and have restored sight to more than 2.5 million people. The Foundation’s Hong Kong office aims to reach the increasing number of needlessly blind in the Asia region, especially in mainland China, where 20% of the world’s blind live. www.hollows.org/hk/home

Hong Kong based Australians David Boehm and Bruce Stinson decided they wanted to give something back to Hong Kong after 30+ years of working and living here and the outcome was a commitment to help the children in disadvantaged circumstances. Their belief that children are the future and key for Hong Kong to continue to be a prosperous community spurred them to form a charity to give underprivileged children the opportunity to find a better environment to develop into contributing members of the community. www.thehubhk.org