austcham news Issue 172 by The Australian Chamber of Commerce in Hong Kong

TECHNOLOGY EDITION The Australian Chamber of Commerce Hong Kong and Macau 香港及澳門澳洲商會

ISSUE 172, 2015

Three’s A Crowd Is Your Cloud Primed for Success? Facilitates customer centric business models. Caters for a range of security requirements.

Improves speed to market.

Optimizes network resources to prioritise workloads and services.

Delivers scale in minutes by clicking a few buttons.

Reduces service deployment times.

Enables a phased approach into the Cloud.

P.8

Hong Kong Focus Hong Kong Bids to Nurture High-Tech Start-Ups and Boost Innovation

P. 10 Industry Insights – P.14 The Asian Century – Seizing the services opportunity

Special Feature: Rugby Sevens Lunch 2015 www.austcham.com.hk

Contents

austcham news issue 172 03 Chamber Chatter 05 Events Update 14 May - 2015 Federal Budget Briefing 28 May - Australia-China Business Awards Gala Dinner

06 Cover Stroy Three’s A Crowd - Is Your Cloud Primed for Success?

08 Hong Kong Focus Hong Kong Bids to Nurture High-tech Start-Ups and Boost Innovation

Published By: The Australian Chamber of Commerce in Hong Kong and Macau Room 301-302, 3/F, Lucky Building 39 Wellington Street, Central., Hong Kong Tel: +852 2522 5054 Email: austcham@austcham.com.hk Editorial Committee: Drew Waters Karen Wu Advertising: Karen Wu

10 Rugby Sevens Lunch 2015 John Eales

Email: karen.wu@austcham.com.hk

Hong Kong Rugby Football Union The Hub Hong Kong

13 Membership eCard Benefit

Facebook Twitter LinkedIn

14 Industry Insights The Asian Century - Seizing the services opportunity

16 Committees in Action How to drive innovation in Hong Kong 17 Committee Comment Workplace Flexibility - a case study 18 AustCham ANZ Mentor Program 20 Corporate News 21 Platinum Patrons Profile Macquarie Group

22 On The Scene

Online version: Electricity is closely linked to daily lives and economic development in Hong Kong. The Government is holding a public consultation on the Future Development of the Electricity Market. Full consultation document can be found at www.enb.gov.hk AustCham Sustainable Development Committee is now studying the consultation document and will engage in dialogue with different stakeholders. We welcome feedback from all AustCham members. Should AustCham members like to share your views, please contact caness.chan@austcham.com.hk

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CONNEC T • ENGAGE • REPRESENT The Australian Chamber of Commerce in Hong Kong and Macau has more than 1,500 members from some 500 companies doing business here. 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 Australian 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 and Macau, its members or officers. The Australian Chamber of Commerce in Hong Kong and Macau takes no responsibility for the contents of any article or advertisement, makes no representation as to its accuracy or completeness, and expressly disclaims and liability for any loss however arising from or in reliance upon the whole or any part of this publication. Copyright © 2015 The Australian Chamber of Commerce in Hong Kong and Macau

Chamber Chatter

Chairman's Column

echnology is the focus of this issue of AustCham News.

Hong Kong aspires to have a world-leading knowledge-innovation economy. For this to happen, Hong Kong needs the right policies, people, and an ecosystem that supports innovation and research and development (R&D). One recent positive step was the appointment of Nicholas Yang as the chief executive’s advisor on innovation and technology (and non-official member of Executive Council), but more is needed. More needs to be done to encourage collaboration among the various existing R&D centers in Hong Kong. Some of the projects presently being undertaken by different R&D centers are related, and a better mechanism to encourage collaboration could be put in place to facilitate increased collaboration and cooperation among the R&D centers. Hong Kong’s Innovation and Technology Commission (ITC) has taken some steps toward achieving this by organising regular meetings between the CEOs of the five R&D centers plus HKPC and Hong Kong Science Park to enable updates on the latest work that each center is doing with a view to encouraging better understanding and collaboration. Beyond this, board members and senior management of the various entities, as well as government, should look to the bigger picture for collaboration in Hong Kong, one that goes beyond the five R&D Centers to also take in HKPC, universities, and various industrial estates. And the collaboration between Hong Kong Science Park and Cyberport should be enhanced with Hong Kong Applied Science and Technology Research Institute (ASTRI) being a logical connector. Collaboration could also flow from having more effective R&D clusters in Hong Kong. This would make the sector more competitive in a global village wherein the speed of innovation is increasing and that the opportunity to leverage new ideas has been greatly expanded. For long-term sustainability, there also needs to be a realistic and realisable pathway to the commercialisation of R&D. Tangible value needs to be created and the process for achieving results has to be more systematic. Presently, the lack of a portfolio management mindset is a problem because projects tend to get managed without adequately considering other projects being undertaken; those other projects often having competing resource needs. In terms of improving industry contribution and collaboration the potential for intellectual property (IP) appropriation and the potential for misuse of IP in general is something that needs more attention. Commercial ring-fencing might be used as a defensive strategy to deal with IP issues. There also is merit in building strategic alliances with industry and with other R&D centers and universities to better support the incubation of new projects and new ideas. Forging closer ties with venture capitalists will be helpful and will enable better connections to industry with the aim of creating a greater awareness of what technologies are best suited to market and to advancing the overall development of Hong Kong. The ethos of ideation that is fostered in Silicon Valley attracts talent from all over the world. Silicon Valley has a spirit of inclusiveness in its culture. Similarly, Hong Kong should foster a culture of openness and inclusion in becoming a more advanced knowledge-innovation economy. Success will require that firms and individuals commit to creating a deep and wide innovation system in Hong Kong. More will need to be spent on R&D, and not just by government. There also needs to be a long-term integrated approach toward investments in knowledge infrastructure to keep Hong Kong competitive and to support innovation. A highly skilled workforce is an essential foundation for Hong Kong’s innovation system, being vital not only for the generation and application of new knowledge, but also to being able to adapt and use knowledge produced elsewhere. In short, where gaps in funding or talent or policies exist they must be closed. And greater collaboration is needed between government and business, between universities and business, and between public researchers and private industry. Greater international collaboration also is needed. There are positive signs that Hong Kong can become a leading knowledge-innovation economy, but more needs to be done and there are AustCham members who have the capabilities and the expertise to assist. I hope that you will connect with the Chamber this month in some way, and that you will continue to share your views on how best the Chamber can serve you. Richard Petty chairman@austcham.com.hk

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Chamber Chatter

A word from Wellington I have received so much positive feedback from those who were able to join us at the Grand Hyatt for our annual Rugby 7’s lunch in March. Thank you for your encouraging comments and praise, which have been duly forwarded to the whole AustCham team. Cloudia and Iris are at most of our events and, even though they tend to stay in the background, the result of their hard work is very evident. While on the 7’s function, I would also like to thank the following contributors; our long term sponsors Commonwealth Bank for their generous and prolonged support. They are a pleasure to work with, and I look forward to doing so again in ’16. Robert Walters for their Warm-Up Cocktails, Treasury Wine Estate and Brandwerk for the fine refreshments, Qantas for the travel, Grand Hyatt for the excellent venue, the Australian Rugby Union for making the 7’s team available, and especially our guest John Eales for his terrific contribution. Other great seminars over the last month include the first in our collaborative Innovation Series along with the American and British Chambers, featuring great speakers Richard Lancaster of CLP, Edge Zarrella from KPMG, Darrell Mann of Systematic Innovation and Charles Mok from the Legislative Council, ably moderated by Sarah Clarke.

The Technology and Infrastructure theme was repeated in a highly informative luncheon with Telstra board members including speakers Telstra Chair Catherine Livingston, and CEO David Thodey. Thanks to Platinum Patrons Telstra for making this possible. The AustCham ANZ Mentoring Programme kicks off for its third year this month, with a great deal of interest generated by the previous two successful cycles. I am very pleased to welcome ANZ, who have once again pledged their support for this signature programme. Please contact the AustCham office with your queries about participating. The centenary anniversary of ANZAC day has passed with a large gathering for Dawn Service at the Cenotaph in Statute Square, then at Cyberport for the live feed from Gallipoli on the big screen. Although it is always a solemn moment, we have much to celebrate as ANZACs following the dreadful events 100 years ago. We will remember. Drew Waters Chief Executive

4 out of 5 people who are blind don’t need to be

he Fred Hollows Foundation is a leading Australian NGO inspired by the work of the late Professor Fred Hollows (1929–1993). Fred was an eye doctor, renowned surgeon and social justice activist. Fred was committed to improving the health of Indigenous Australians and delivering sight-saving programs in developing countries to end avoidable blindness. Through their program work in 20 countries across Asia and Africa, The Fred Hollows Foundation has restored sight to over 1 million people. Simple interventions - for as little as HK$150 - can restore people’s sight, productivity and livelihoods, giving lasting benefits for individuals, their families and whole communities.

In 2015, they’re bringing Fred’s dream to Asia. Their new regional office in Hong Kong will lead their advocacy and fundraising efforts to support urgent program work in Greater China and the Asia region where 31% of the world’s blind live – 20% in China. As they build a community of local supporters and partner, they are calling on leading Australian, local and international companies to join them as a Founding Partner of The Fred Hollows Foundation Hong Kong and help keep Fred’s dream alive. To donate or find out more information, please visit www.hollows.org.hk or email Sally Hasler at shasler@hollows.org.

Community Corner AustCham is a non-profit organisation and provides this space free of charge to other, selected non-profits or charities.

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ergeant Christopher Ernest Uhlmann was killed in action in Belgium on 21 July 1917.

That day this “splendid stamp of a man” was wounded by a shell in the trenches near Zillebeke Lake in Belgium. The Brigade Doctor Captain Aspinall, Bomber Barrs and Private Salisbury went to his assistance, but another shell fell “almost in the same spot and killed the four”. He was just 26 and married to Florence May Uhlmann. This ANZAC Day, after attending the Dawn Service, the mass at St Christopher’s Cathedral and the National ANZAC Day Ceremony, my husband Chris and I will honour Chris’ namesake “Ernie” by placing a poppy against his name on panel 11 in the Australian War Memorial. And we will join with thousands of other Australians and Canberrans in paying tribute to the memories and legacy of lost loved ones. ANZAC Day is always significant in Australia, but as this year marks 100 years since the landing on Gallipoli in 1915, ANZAC Day 2015 will be nothing short of a momentous occasion.

But the Centenary goes beyond the anniversary of the landing on Gallipoli. The Centenary provides us with an opportunity to reflect on how we have developed as a nation over the last hundred years. And it is a reminder that the qualities we identify with the ANZAC spirit courage, mateship and sacrifice – still have relevance to Australia’s identity today. Many of our political leaders will travel to Europe to commemorate ANZAC Day at Gallipoli, the Western Front, Villers-Bretonneaux, the Somme, Ypres and other battlefields of significance. Others, like me, will commemorate this day at home with their communities. There is hardly a town in Australia that doesn’t have a memorial that will be the focal point of a Centenary of ANZAC commemoration. Millions of Australians will spend ANZAC day reflecting on how an enormous tragedy helped define a young nation. Lest we forget. Gai Brodtmann MP, Federal Member for Canberra

The First World War helped define Australia as a people and as a nation. The ANZAC Centenary allows us to honour those who made the ultimate sacrifice, the broken hearted they left behind and those who returned physically and emotionally wounded.

EVENTS UPDATE APRIL AT A GLANCE Mon, 27 Apr, 7:45am – 9:00am Australian Reflection: The Hon Chris Bowen MP Boardroom 3-4, Mezzanine Floor, Renaissance Harbour View Hotel, 1 Harbour Road, Wanchai, Hong Kong Thu , 30 Apr, 8:00am – 9:30am How to Hire, Keep and Grow your SME Employees? Club Lusitano, 16 Icehouse Street, Central, Hong Kong

Thu, 14 May, 6:00pm – 7:30pm 2015 Federal Budget Briefing AustCham Business Centre, 3/F, Lucky Building, 39 Wellington Street, Central

Thu, 21 May, 6:00pm – 9:00pm Mix at Six DiVino Patio, Shop 11, 1/F, BRIM28 - Causeway Centre, No. 28 Harbour Road, Wanchai

MAY AT A GLANCE… Wed, 13 May – 6:00pm – 8:30pm Australian Property Market & Currency Update 27th Floor, Club Lusitano, 16 Icehouse Street, Central, Hong Kong

Thu, 28 May, 6:30pm – 10:30pm Australia-China Business Awards Gala Dinner Grand Ballroom, Grand Hyatt Hong Kong, 1 Harbour Road, Wanchai, Hong Kong issue 172 | austcham news

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Cover Story

Three’s A Crowd — Is Your Cloud Primed for It all starts with the customers – empowered by technology today’s customers have access to an abundance of information. They compare notes, share and evaluate experiences on their social networks. And they expect to engage with business when, where and how they want.

- By Martin Bishop, Head of Network Applications and Services (NAS), Telstra.

n an effort to capitalise on the benefits of cloud computing, early adopters turned to multiple cloud vendors to satisfy their various infrastructure needs. For instance, you may have been working with a customer relationship manager (CRM) specialist for hosting your customer insights, and a private cloud expert for financial data. This approach delivered initial gains as IT leaders found their way in the cloud, but it is not conducive to long-term success. Working with a variety of vendors can create complex environments that are hard to control, manage and integrate, while it can also lead to organisational silos, preventing collaboration and the easy transfer of data, limiting performance and the services delivered. Encouragingly, recent Telstra research, which surveyed 675 IT decision makers from across the globe around the cloud services being used by their organisation, suggests businesses are increasingly realising this, with three-quarters of global businesses wanting to procure services from a single provider, compared to using three concurrently. With cloud fast becoming a critical component of IT environments the world over, what steps can today’s businesses take to help ensure you build a platform that is designed for success today and in the years to come, without compromising on individual needs?

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Outsource Cloud Management The first step could be to adopt an infrastructure-as-a-service (IaaS) cloud model. By leaving your provider with the more routine tasks, such as hardware, data and server management, businesses can become empowered to focus on innovating and add value to the organisation. What’s more, the benefits of IaaS – including improved security and efficiency, reduced costs, and optimised insights – closely align with IT departments’ modern IT objectives. Although most businesses have a clear understanding of IaaS’ advantages, research* revealed that over half are yet to implement it due to concerns around relinquishing control of IT environments. As such, vendors in this space should work to alleviate and overcome such concerns across the business, while guiding you through any difficulties and reducing the impact of the initial implementation. Go Hybrid As the cloud market settles, cloud vendors increasingly look to offer a portfolio of hybrid-services covering most, if not all, businesses’ cloud requirements. Remove the complexities of dealing with multiple vendors by working with a single provider capable of combining internal and external IT infrastructures, across a combination of private and public clouds, to help support your business outcomes. This hybrid IT approach is one we expect to see gather momentum in the months and years ahead.

Working with a variety of vendors can create complex environments that are hard to control, manage and integrate, while it can also lead to organisational silos, preventing collaboration and the easy transfer of data, limiting performance and the services delivered.

Success? Make Your Cloud Customer Centric

Think Global

We are living in a buyers’ market – consumers expect to do what they want, when they want, how they want. And if this isn’t on offer, then they are likely to take their business elsewhere. IT is at the centre of this enablement, but with new services – from mobility through to social media – being created every year you need a cloud platform allowing you to quickly and easily take advantage of these innovations.

Across all industries, competition is fierce and increasingly not restricted by international waters. As businesses look to expand their offerings and grow international footprints, they should also accelerate innovation, provide the latest features and functions across geographical boundaries and time-zones, as well as host data offshore to support business growth.

Adopting an approach to help ensure you can rapidly launch the services and tools demanded by your customers and employees is critical to remaining competitive.

If this aligns with your future business plans, then there is much value to be had from working with a single global cloud provider that understands and is familiar with a number of markets. Working with vendors with either a global reach or a global strategy for addressing market demand helps to ensure you can deliver a consistent and compliant experience, regardless of how many markets you are serving.

eCommerce Enterprise Resource Planning

PRIVATE CLOUD HYBRID CLOUD

Collaboration Tools

Digital Media Solutions

CRM

Mobile Applications

Big Data Analytics

SEO

Marketing Automation

Social Media

PUBLIC CLOUD For more information on Telstra’s new research whitepaper, check http://connect.telstraglobal.com/hybrid-customer-clouds.html issue 172 | austcham news

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Hong Kong Focus

Hong Kong Bids to Nurture High-tech Start-Ups and Boost Innovation Although seen as playing catch-up with many of its neighbours, Hong Kong is now committed to incubating a variety of new high-tech businesses, allocating official funding, providing premises and targetting far more high-calibre graduates. - By Robert Clark, Special Correspondent, Hong Kong, HKTDC.

n a speech to the Asian Innovation Summit in December, HKSAR Chief Executive C.Y. Leung outlined his belief that the city could become a “super-connector” technology and innovation hub for the Asia-Pacific region. In line with this, the government is now working with the Hong Kong Science and Technology Park (HKSTP) to build technology clusters in several key sectors, notably biotech, IT, green technology and precision engineering. According to Leung, government research funding had more than doubled over the last decade and now stands at HK$1.9 billion. In his policy address in January, he announced plans for another HK$5 billion for the Innovation Technology Fund. The government is also offering as much some HK$10 million per project to encourage corporate R&D, as well as another HK$24 million to back university start-ups.

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The Hong Kong Science Park – initially funded by the government, but now run by an independent company – has an incubator that is currently home to 160 start-ups. Another 1,000 are employed in start-ups at the Innocentre incubation hub, which specialises in design. Another science park, TusPark, operated by Beijing’s Tsinghua University, opened in Kowloon Bay in January. There’s also been a boom in the growth of shared workspaces. According to Greg So, the Secretary for Commerce and Economic Development, there are now 35 such operation, up from just three in 2010. The latest set-up to adopt this approach is Swire Holdings’ Blueprint, a 20,000-squarefoot workspace in Quarry Bay where start-ups can tap into the expertise of Swire executives. Another major developer, Henderson Land, is supporting the Good Lab, a dedicated start-up space in Kowloon.

Then there’s the performance of the start-ups themselves. The Startbase.hk database lists more than 400 start-ups, and they are beginning to attract both cash and attention. In January alone, WeLab – the first peer-to-peer lending platform anywhere in China – received US$20 million in investor funding, while Lalamove, the company behind EasyVan transport company, collected US$10 million. In a related move, the mobile games company Animoca Brands completed a backdoor listing on the Australian Stock Exchange, with a market cap of approximately A$8.2 million. Last year Divide, a New York-Hong Kong mobile software company, won second round backing of US$12 million from several high-profile investors, including Google Ventures and Qualcomm. GoGoVan, another local transport firm, collected US$10 million from social network firm RenRen. Charles Mok, the entrepreneur who, 20 years ago, founded HKNet, one of the city’s first ISPs, says the proliferation of start-ups is far from surprising. He said: “It goes back to the core advantages that people usually talk about with regard to Hong Kong – an open society, local talent, and so on. While local IT managers might complain about the cost of staff, they’re still much cheaper than in the US.” He also sees the trends in Hong Kong as part of a wider global movement, citing the bustle of startup activity now underway around the world, as well as the international ecosystem that has emerged to support it. This has given start-ups the option of sourcing computing power and analytics from Amazon and selling their products through online platforms.

It goes back to the core advantages that people usually talk about with regard to Hong Kong – an open society, local talent, and so on. While local IT managers might complain about the cost of staff, they’re still much cheaper than in the US. Charles Mok

Contrasting this with his own formative experiences, Mok says: “Twenty years ago we paid HK$200,000 for servers and had to put ads in magazines and newspapers.” These days, though, he says the biggest problem he hears from early stage companies is the “lack of a VC or funding infrastructure.” Early-stage funding sources are slowly emerging, however. The Hong Kong Business Angel Network last year invested HK$105 million, while Nest, a local incubator, is investing in start-ups as well as nurturing them. In a move that made the front pages, Alibaba boss Jack Ma has also created a HK$1 billion fund to back young Hong Kong tech firms. The HKSTP is now said to be considering setting up a fund to bridge the gap between seed and first-round funding stages.

For more information on this topic or others, please visit HKTDC Research at http://research.hktdc.com/

issue 172 | austcham news

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Rugby Sevens Lunch 2015 The day begins with a warm-up cocktail sponsored by

AustChamâ&#x20AC;&#x2122;s annual sold out Rugby Sevens Lunch was held at Grand Hyatt Hong Kong on 26 March. This year, John Eales, the most successful captain in Australian rugby history, joined us as guest speaker. Special thanks to Commonwealth Bank of Australia who have played sponsor fullback to the event for 17 years. 4

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

Mathew Davies and Edward Gumbley of Mann Made Hong Kong Ltd. Mark and Pauline Appleyard with Simon Roots. Peter Hildebrand of W Hong Kong, Nick Hellen of Executive Access Ltd and Dan Ternes. Ricky Fong, David Fraser and Matthew Brien of Flight Centre. Michael Bentley of Citylife Property Ltd and Richard Martin. Jose Reboredo, Hilly Dannaoul and Patrick Balfour. Katherine Forbes of Flight Centre (middle) with Brendan O’Kane and Mark Griffth of Cathay Pacific. 8. Yiming Wu Baosteel and Joan Xia of Commonwealth Bank. 9. Doris Yiu and Hattie Wang. 10. Bryan Carter and Uday Shah. 11 Hamish McLennan and AustCham Board Director Paul Scroggie. 12. Kate Forbes of Commonwealth Bank and Leonard Chuah of Aircastle. 13. Andrew Davis of Invest Hong Kong and Ken Deayton of Hong Kong Trust Company Ltd. 14. Neil Lithgow and Nick Saijrakh with Elizabeth Ellis of Minter Ellison. 15. Andy Randall with David Barry of HSBC. 16. Tom Passmore with Bernard Poon of CPA Australia and New Zealand Chamber of Commerce Chairman David Whitwam. 17. Troy Greig of FitzGerald Lawyers and Warwick Walsh. 18. John Darby of GFI Group and Karson Chu. 19. Kimberley Cole of Thomson Reuters and Maaike Steinebach of Commonwealth Bank. issue 172 | austcham news

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Rugby Sevens Lunch 2015

3 2

Big thanks to our supporting partners:

1. Thank you to our guest speaker, the most successful captain in the history of Australian rugby, John Eales AM. 2 & 3. John Eales presents the Menâ&#x20AC;&#x2122;s team with their jerseys ahead of the game. 4. AustCham Chief Executive Drew Waters welcomes all. 5. Proceeds from the live auction of tickets to the Rugby Sevens weekend will be donated to local charity The Hub Hong Kong. 6. Former ESPN Star Sports Rugby Commentator Justin Sampson leads a panel discussion with Coach Geraint John and guest speaker John Eales.

More coverage can be found on our online photo album: www.flickr.com/photos/austchamhongkong

12 â&#x20AC;˘ austcham news | issue 172

Guests att

ended the post lunch cocktail at Cham pagne Bar.

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issue 172 | austcham news

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Industry Insights

The services sector can help Australia seize the opportunity of Asian growth and solidify its place in the global economy. Mike Smith

14 â&#x20AC;˘ austcham news | issue 172

The Asian Century – Seizing the services opportunity As Australia picks up the pieces from the end of the mining boom, more of us than ever are focussed on the future of the economy. Many questions are being asked, like how can we diversify our economic base, how can we deliver more and higher-paid jobs and how can we pay for government services for an ageing population? - By Mike Smith, Chief Executive Officer, ANZ

hankfully, an answer to these challenges is already on our doorstep. Australia’s next great sector is on the rise. Asialink’s report Australia’s Job Future: The Rise of Asia and the Services Opportunity, has found the services industry will play an increasingly large role in Australia’s future prosperity. Indeed, the sector already does. Services drive most of Australia’s domestic growth, employing nine out of 10 people in the workforce while accounting for 75 per cent of GDP. Commodities like iron ore and wheat naturally come to mind when we think about major national exports. That services, as measured by ‘value-added’ export earnings, has overtaken natural resources as our biggest export earner is almost unknown. The services sector can help Australia seize the opportunity of Asian growth and solidify its place in the global economy, taking advantage of the trade liberalisation championed by the government through the South Korea, Japan and China free trade agreements. With the right focus and supportive policies, the report estimates a related employment in value-added services exports to Asia could almost double by 2030, supporting over one million Australian jobs.

The report argues services exports could be worth $163 billion annually – a 135 per cent increase from 2013 – and sales by Australian foreign affiliates in Asia could grow from $14 billion to as much as $78 billion over the same period. The services sector could become Australia’s numberone exporter to Asia, supporting more jobs than all other exports combined. Australian services contribute to national income growth through direct exports such as education and tourism, as well as embodied exports like engineering services, needed to export natural resources and offshore investment by Australian companies. Australia’s trade secret is that its biggest export is services. Services account for 41 per cent of Australia’s exports earnings when measured in terms of total valueadded, compared with 37 per cent for mining and 23 per cent collectively for agriculture and manufacturing.

and universities expand their presence abroad, the revenues and benefits they bring back to Australia - including more jobs and greater productivity - are tipped to continue rising. Even these measures do not consider the revenue earnt by investments in foreign affiliates of Australian companies. These are estimated to have generated revenues of $138 billion in 2013 – more than double the value of Australia’s direct services exports. Offshore investments by Australian companies are critically important. If we want to participate in the global economy, we have to be where the customers are – offering services in China, India and Southeast Asia. We need Australianheadquartered companies present in the markets of their customers.

Export statistics today are based on direct exports, which only tell part of the story. The important contributions of embodied services and offshore investment are missing. In 2013, the value of direct services exports was $55 billion.

Australian services to Asia are relatively low compared with traditional trading partners like Europe and North America. This is changing as Asian nations develop into services-intensive markets. The region’s middle class is expected to grow from around 500 million today to 3.2 billion in 2030. It is a huge opportunity for the services sector.

When we consider the services embodied in exports, services contribute $112 billion in value-added export earnings. As Australia’s banks, construction companies

This is not just a story involving large companies. Many sectors and sizes of businesses will be at the forefront of Australia’s services trade with Asia.

BlueNotes is ANZ’s corporate newsroom, featuring insights, opinion, research and news about the economy business and finance. Visit www.bluenotes.anz.com for more information or to subscribe.

issue 172 | austcham news

• 15

Committees in Action

How to drive innovation in Hong Kong AustCham, together with the American and British Chambers, hosted a breakfast panel session on “How to drive innovation in Hong Kong”.

anellists incuded CLP's Chief Executive Richard Lancaster, KPMG Clients and Innovation Partner Egidio Zarrella, Systematic Innovation’s CEO and Technical Director Darrell Mann, and Legislative Councillor (IT) Charles Mok.

The discussion was moderated by ABC News’ Sarah Clarke, and started with two dialogues: “Where should HK focus its innovation efforts to deliver the greatest return?", and “How to encourage HK businesses to adopt innovation within the enterprise?". Special thanks to: CLP Holdings Limited.

1. Richard Lancaster raised the idea that innovation in the energy industry has moved to the consumption side of the business with service innovations, such as smart metering. 2. Charles Mok believes that best innovators take the maximum out of the minimum. 3. Darrell Mann ranks Hong Kong at second on a scale of five in terms of Innovation Nation capability. 4. Edge Zarrella emphasises that competitive spirit drives innovation. 5. AustCham Business Technology Committee Chair Peter Smith thanks all.

Engaging panel discussion on what steps Hong Kong should take in order to step up its efforts to drive local innovation.

16 • austcham news | issue 172

Committee Comment

Workplace Flexibility - a case study - By AustCham People Forum member Rebecca Lucas. Rebecca is also the General Manager, HR MA&I, Telstra. Telstra takes charge of workplace flexibility

Turning intent into action

When Telstra’s CEO, David Thodey, announced in March 2014 the introduction of All Roles Flex, a new initiative where all jobs throughout the company could be done flexibly, he talked about creating a more inclusive culture and enabling people to better balance work and personal commitments.

If you’re considering introducing a flexible working initiative, awareness of the policy is key in driving uptake and it must be your absolute starting point.

While we already had policies such as flexi-time and home working in place, All Roles Flex was a significant step forward and reflected the belief that flexible work should assist the individual and the business, and the more we embrace this as an organisation, the greater the benefits. So what makes our All Roles Flex policy unique? We believe that the approach of other companies to flexibility starts from the full time model and asks for what reason would flexibility be allowed. At Telstra, we work from the premise that all roles can be flexible, and the question for a manager is why a role could not be done flexibly, rather than why is should be an option. Empowering your workforce through technology

To turn intention into action, we ran a series of roadshows with our people managers and senior leaders to help them understand the personal and business benefits of the program, and empower their people with the technology and mindset to practice it in their work lives. When it came to technology, we needed to ensure that the right technologies were available to support our people and enable them to work flexibly. To do this, we’ve started rolling out our “Future Ways of Working” program, which aims to make Telstra a leader in personal productivity, innovation and collaboration by providing the tools and environment in which our employees flourish. This means we’re providing more access to mobile technologies (such as mobile devices and wireless connectivity), and allowing our people to change the physical environments where they work to suit their needs.

We’re a technology company that helps people to connect no matter where they are or what they are doing. We help other organisations introduce technology to enable their employees to work more flexibly and we would be remiss if we didn’t grab that opportunity ourselves.

Cementing flexibility in your company’s DNA

At Telstra, two of our core values are “show you care” and “trust each other to deliver”. We truly want our employees to have enriching careers and have time for the things and people that are important to them outside of work. While we implicitly trust them to get the job done, we also trust them to know what is right for their unique needs – whether that’s strong structural boundaries between their work and home lives, or perhaps more fluidity.

For instance, it could mean a change in start and finish time, working in other locations, reducing hours or enabling employees to enter, exit and re-enter the workforce, or to increase or decrease their workload or career pace at different life stages.

Personally, I love the flexibility of working in different office locations while combine with holidays or family trips to Australia, London, Singapore, Tokyo or at a cafe in Bondi. Ultimately, the work gets done and my needs are met too.

Understanding what flexibility means to each person has impacted the success of the program and it’s important to remember it will be different for everyone.

The feedback we’ve received from staff on the initiative has generally been incredibly positive and our people are really taking the time to think about how they can incorporate the principles of flexible working to have both a rewarding career and the time for the things that are important to them outside work. It’s an exciting time and we encourage others to consider how to adopt new and disruptive positions around mainstreaming flexibility, which in turn can help amplify productivity benefits, lift engagement and also enable a new way of working, with technology linked very strongly to this.

issue 172 | austcham news

• 17

AustCham ANZ Mentor Program

End of the Year Insights With the second cycle season of the AustCham Mentor Program coming to a close, we asked mentors and protégés to share their thoughts about the program and the impact it made in their lives. More than fifty people participated in 2014; their backgrounds included finance, law, entrepreneurial endeavours, non-profit, education, engineering, accounting, and professional development services. From the initial Speed-Match event to the panel discussion on whether or not to pursue an MBA, the Mentor program team structured the year around lectures, workshops, morning coffees and evening socials; these elements were foundational for the work done by the mentors and protégés.

Insist on getting goals and action plan written down at the beginning of the program. With this program, it was 90% self-initiated and driven by the protégé, for those who did not initiate, they miss out on the entire programme. If I knew a year ago that my passion played primarily in a specific field of interest, I would have done a better job choosing to work with a mentor with a background in that industry, and focus on building the necessary tools for that particular area.

18 • austcham news | issue 172

Before each of these meetings we set a topic for discussion that we wanted to cover to give us some structure.

What would you recommend for the mentors and protégés of 2015?

Program sponsor:

Thank you to everyone that made the 2014 Mentor program possible, including our sponsor, ANZ, and the support from the AYE Committee.

I wanted help adjusting to Hong Kong's commercial environment. My protégé needed support on her career change; she eventually submitted her resignation in order to move into a position that reflected her passion.

I set a series of life goals which were aimed at thinking more critically about my actions and responses. I entered the program in need of raising my maturity level and thought process towards professional actions. We set out to focus on having me listen more, engaging others better and building my self-confidence.

To learn from my mentor’s experience, jumping from the corporate world to entrepreneurship. His opinions helped considerably in making decisions in work and meeting people.

What goals did your team achieve?

My goals were to establish a network at AustCham and to practice my mentoring/coaching skills. I wanted to help build a culture of mentoring and teamwork at my job. Over the past year I have initiated a pilot program within my firm for training of junior lawyers. Being able to discuss this program with my mentor, and set goals and action points in relation to it has been very beneficial in getting it off the ground. I wanted to feel that I had established myself in Hong Kong; I now feel settled at work and home. I have developed and continue to build various personal and professional networks. The mentoring relationship has helped me to become much more selfreflective about how I am feeling and choices I have made.

The 2015 AustCham ANZ Mentor Program is now open for mentors and protégées. Contact the Program Manager at mentor@austcham.com.hk for more information. issue 172 | austcham news

• 19

Corporate News

A March to Chongqing

n late March, Corporate Patron Member Goodman Group, the global integrated property group which owns, develops and manages industrial space, held an official ceremony for the opening of Goodman Chongqing Airport Logistics Park in Western China. The development was formally declared opened by His Excellency General the Honourable Sir Peter Cosgrove Governor-General of the Commonwealth of Australia. Goodman Chongqing Airport Logistics Park, which provides a total area of 190,000 sqm of prime logistics space, will have an estimated end value of US$130 million. Philip Pearce, Goodman’s Managing Director Greater China, said, “We are honoured to have His Excellency General the Honourable Sir Peter Cosgrove Governor-General of the Commonwealth of Australia, Her Excellency Lady Cosgrove and other distinguished guests present to mark this significant milestone in the development of our business in China. Goodman Chongqing Airport Logistics Park is our flagship development in Western China, an area of growth for us and where we see growing demand for prime logistics space.” His Excellency General the Honourable Sir Peter Cosgrove, Governor-General of the Commonwealth of Australia, said, “I’m delighted to be here today to open the Goodman Airport Logistics Park in Chongqing. This logistics park is a landmark Australian investment and a tangible example of Australia’s strong presence here in Western China. The story of Goodman in China is an Australian success story.” Goodman plans to invest US$400 million in Western China in the coming two to three years.

AustCham Platinum Patrons

20 • austcham news | issue 172

Platinum Patrons Profile

Macquarie Group Macquarie Group is a global financial services provider. It has established leading market positions as a global specialist in a wide range of sectors, including resources, agriculture and commodities, energy and infrastructure, with a deep knowledge of Asia-Pacific financial markets. At 30 September 2014, Macquarie had assets under management of $A425 billion.

Macquarie Group Ltd 18/F, One International Finance Centre 1 Harbour View Street, Central, Hong Kong www.macquarie.com Why did you choose to join AustCham as a Platinum Patron? Macquarie, as a leading Australia-headquartered financial services provider, became a Platinum Patron with the aim of further strengthening our relationships with the Australian and Hong Kong business communities. It is also a valuable way for Macquarie to raise awareness of our activities across the broader AustCham network, which includes more than 1,500 corporate members and many prominent local companies. Which committee/s are you interested in joining? I am a member of the Finance, Legal and Tax Committee, which discusses relevant finance, legal and taxation issues that will impact Australian companies doing business in Hong Kong. What does your company do really well? This year marks the 20th anniversary of Macquarie’s presence in Asia, which commenced with the establishment of our Hong Kong office in 1995.

Rob Quinlivan Chief Financial Officer Asia

first bank and was also responsible for introducing Australia's first coinage, the 'Holey Dollar'. In 1813 Governor Macquarie overcame an acute currency shortage by purchasing Spanish silver dollars (then worth five shillings), punching out the centres and creating two new coins - the 'Holey Dollar' and the 'Dump'. This single move not only doubled the number of coins in circulation but increased their total worth by 25 per cent and prevented the coins from leaving the colony. Governor Macquarie's creation of the Holey Dollar was an inspired solution to a difficult problem and for this reason it was chosen as the symbol of the Macquarie Group. What’s your company’s connection to Australia? Macquarie’s global headquarters is located in Sydney, Australia and it is listed on the Australian Securities Exchange (ASX). Macquarie commenced operations in 1969 with a staff of three executives and now employs more than 14,000 people in 28 countries globally. How would you describe your workplace and colleagues? Our workplace is diverse like our staff – from hectic, noisy trading floors to quieter zones where staff have time and space to contemplate. The diversity of our people is fundamental to Macquarie’s success. The broad range of experiences, skills and views of our people are key strengths and critical to the wide range of services we deliver to clients and understanding the communities in which we operate.

Over the past two decades, Macquarie has built a powerful Asian franchise of more than 3,000 people in 14 offices across 11 markets in the region. We are now Asia’s leading warrants issuer by coverage, we run 40 infrastructure businesses in five Asian markets, and our research team covers more than 1,000 stocks in the region. What’s something most people don’t know about your company? When choosing its name and logo, Macquarie looked to Australia's most successful early governor, Governor Lachlan Macquarie, for inspiration. Lachlan Macquarie The Holey Dollar – the inspiration was instrumental in the establishment of Australia's for Macquarie Group’s logo

What do you do in your spare time? Outside of work, with four children and their activities, there isn’t much “spare time” but I enjoy firing up the BBQ at home and spending time with friends. Also, I’ve just signed up to learn how to sail so we’ll see how that goes!

issue 172 | austcham news

• 21

On The Scene

Our

company provides, audit and taxation services. Additionally, our affiliated company provides accounting and company secretary services for Hong Kong companies. W www.kkchoco.com.hk T (852) 3996 7398 E kkcho@kkchoco.com.hk

David Boehm of The Hub Hong Kong and AP Singh.

Andrew Burgin and Kevin Oâ&#x20AC;&#x2122;Shaughnessy of The Hub Hong Kong.

Jessie Zhou of Mandarin Teacher HK and Robert Leung of Apsiz Services Ltd.

AustCham March Mix at Six was held at the Secret Garden on the terrace of Mira Moon Hotel. A big thank you to event sponsor Singapore Airlines.

Charlie Li of Western Austrade with Wendy Lu and Vincent Choi of Spencer Ogden Trading.

Michael Usher of Vialux (Macau) Ltd and Nick Hopton of EIRE Systems Ltd.

Noelle Walker of elle Marketing Communications, Katie Simpson and Aaron Lim of Flight Centre with Madeleine Tewes of Apsiz Services Ltd.

Chris Penny of National Australia Bank and Ian Thomson.

Scott Smith of aurecon, Michael Madigan and AustCham Chief Executive Drew Waters.

Glen Elsworth of Pure Projects, Alexander Maguigad of Asia Plantation Capital with Benjamin Chan of event sponsor Singapore Airlines.

Chris McMillan of The Three Marketeers and Nathan Backhouse of Western Austrade.

Congrats to the lucky draw winners on the night!

More coverage can be found on our online photo album: www.flickr.com/photos/austchamhongkong

22 â&#x20AC;˘ austcham news | issue 172

On The Scene Breakfast session with South Australia Premier The Hon Jay Weatherill MP at Grand Hyatt Hong Kong. More than 60 guests attended the session on the day.

The Premier shared his new broad vision for the state’s transformation as well as the latest developments and business opportunities in South Australia.

The briefing was followed by active Q&A session.

Australia’s Minister for Trade and Investment, The Hon Andrew Robb AO MP briefed the Australian business community during his visit to Hong Kong.

The Minister addressed AustCham members on the Australian Government’s strategies to promote the Free Trade Agreement in Australia.

The Minister also discussed with members on how to promote Australian business in Hong Kong and southern China.

issue 172 | austcham news

• 23

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