AustCham News Issue 203

香港澳洲商會

The Australian Chamber of Commerce Hong Kong

H O N G

K O N G

austcham news • Issue 203 | OCT 2018 9 CGT Bill Under Reconsideration 10 AustCham welcomes HK 2018 Policy Address 16 A new perspective on identifying developable land in Hong Kong

Cybersecurity: A real and present threat Where Business, People and Ideas Connect

www.austcham.com.hk

DO YOU KNOW WHERE TO TURN FOR 24/7 MEDICAL SUPPORT IN HONG KONG? ife in Hong Kong is always exciting! Unfortunately, things can go wrong, often when you least expect it, and sharing a city with over 7 million other residents can mean long queues to get help – even when help can't wait!

Fortunately, when you and your family need medical assistance, day or night, Gleneagles Hong Kong Hospital (GHK) is here to help!

Conveniently located at Wong Chuk Hang on Island South, GHK is the only multi-specialty private hospital on Hong Kong Island that offers 24-hour general practitioner and emergency medical support. Whenever necessary you need a doctor from the common cold or fever, or even critical or life-threatening emergencies occur, like allergic reactions, you can get immediate assistance at any hour of the day.

Accidents and illnesses don't only happen during office hours! That's why GHK also offers around-the-clock outpatient services for everything. This can be especially helpful on public holidays or at night, when clinics have long queues or even closed. If a condition requires inpatient admission or even surgery, GHK's trained and professional staff will be there onsite to help you right away. GHK strives to exceed the expectations and being as the pioneer to offer all-inclusive medical packages, offering transparent pricing system and fixed-price service packages can also help you better manage costs.

Best of all, GHK is just 10 minutes from Admiralty, making it easily accessible by car or public transport. Free shuttle bus service with 10 to 20-minute interval is also available between GHK and MTR Ocean Park Station.

You can't predict the unexpected, but you can prepare for it, and knowing where to go is the first important step!

Gleneagles Hong Kong Hospital 1 Nam Fung Path, Wong Chuk Hang, Hong Kong +852 3153 9000

GHK's team of multi-disciplinary specialists offer expertise in the following areas: • • • • • • • • • • • • • •

Cardiology Ear, Nose and Throat Endocrinology Gastroenterology General Surgery Neurology Neurosurgery Obstetrics & Gynaecology Oncology Ophthalmology Orthopaedic Paediatrics Respiratory Medicine Urology

E

arlier this month Hong Kong’s Chief Executive released her second Policy Address. The headline initiative was her long-term vision for development of Lantau Island and brownfield sites in the New Territories to meet existing and projected housing demand. These have already become controversial since the announcement.

Chairman's Column austcham news issue 203 Cover Story 6

Cybersecurity: A real and present threat Making an Impact

9

AustCham welcomes many of the initiatives announced as they address issues raised by our members which were reflected in the submission we made to the Chief Executive during her consultation period.

AustCham welcomes Policy Address 10

A few days before the Policy Address, the Hong Kong Government released a progress report on actions since the Policy Address last year. Its substance got lost in the reporting of this year’s address. However, the government should be applauded for producing such a report. It can be too easy for a government to announce a swathe of policy initiatives, and few in the community have the time or capacity to really keep track of them. It is a level of accountability and transparency which is expected of listed companies and boards to their shareholders, and it should also apply to elected officials and public servants when it comes to policy initiatives.

Policy Address Highlights

One of our recent guest speakers, political commentator Kerry-Anne Walsh touched on this during her lively discussion on the state of Australian politics.

This lack of accountability and transparency has led to disillusionment in the electorate towards politicians, and the reputation of democratic institutions in Australia have taken a battering. This has serious consequences in attracting talented and experienced people to enter politics. In fact, both major parties have recently lost good members.

All of this can impact on a government’s or company’s reputation. Even the reputation of a country.

To quote Warren Buffet “It takes 20 years to build a reputation and five minutes to ruin it”. In fact, these days it can now be just a matter of seconds. Our half-day Cybersecurity Forum highlighted the risks facing both business and government, and why boards must take a greater stewardship for cybersecurity, and not just leave it to the IT Department to sort out.

CGT Bill Under Reconsideration Hong Kong Focus

Australia Focus 14

Perhaps, Prime Minister Industry Insight 16

Identifying developable land Member Comment 18 Spotlight 19 2018 Victorian State Election AustCham UOW

Andrew Macintosh chairman@austcham.com.hk

20 21

Mentor Programme News 22 Committees in Action 23 Giving Back 27

Cover photo: Adrian Turner, CEO of Data 61 opens Cybersecurity Forum

With leadership comes responsibility, and those organisations with long-term vision will be better able to meet the expectations of their shareholders or voters.

QantasYours C sleep sincerely, banner ad 195x55mm hires.pdf 1 4/8/2017 15:10:04

12

austcham news Online version

3

Chamber Chatter

What’s Trending

A

ustCham’s campaign to urge the Federal Government to rethink planned legislative changes hitting family homes has been given a boost with the bill now being reconsidered.

The move follows months of campaigning led by AustCham Hong Kong aimed at raising awareness of the potential impact of changes the legislation, and harnessing support of the business community and politicians on both sides.

The amendments to the Housing Affordability Bill would ultimately penalise nonresident Australians by levying CGT against the sale of the family home from the date of purchase. It is the retrospective nature of this amendment that has drawn the ire of so many across the business community in Australia as well as concerns about essentially punishing Australians for being part of the international marketplace.

AustCham Hong Kong has led an international push, forming a loose coalition of interested parties aimed at lobbying for amendments. A key part of this has been a media relations campaign which gathered momentum with a front page article and several stories over consecutive days in the Australian Financial Review this month.

High-level meetings have taken place with senior Government and Opposition Shadow Ministers since May and we have also engaged with cross-benchers, some of whom have expressed sympathy for our position and have supported our campaign. Importantly, Shadow Treasurer Chris Bowen wrote to the former Treasurer Scott Morrison urging a rethink of the impact on Australian expatriates.

And although he has many priorities in his new role as Treasurer, Josh Frydenberg is also aware of concerns about the unintended consequences of this amendment.

The result? While it would be premature to say the battle has been won, the fact the Bill was withdrawn from the Senate pending further review is a major step in the right direction.

We will continue to urge politicians to consider introducing changes which would address some of the key concerns such as retrospectivity as well as a tight timeline for implementation, should it proceed.

We have certainly advanced our cause significantly since we started lobbying against this bill earlier this year and are delighted to have had the support of so many of you who wrote letters, supported the Chambers’ direct meetings in Canberra and Melbourne and have got behind this important initiative.

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 and liability for any loss however arising from or in reliance upon the whole or any part of this publication.

This is what the Chamber is all about: collaboration and community.

Jacinta Reddan, Chief Executive, AustCham

AustCham Platinum Patrons

Copyright © 2018 The Australian Chamber of Commerce in Hong Kong

Printed on environmentally-friendly paper

5

Cover Story

6

Cybersecurity: A real and present threat Companies and government organisations received a stark warning of the threats and challenges posed by current and emerging technologies and how to prepare to counter cybersecurity risks at a half-day forum organised by AustCham in partnership with the Australian Consulate-General, sponsored by Telstra

"T

his is an ar ms race," war ned Aust Cham ' s Cybersecurity Forum keynote speaker Adrian Turner, CEO of CSIRO's Data61, Australia’s largest data innovation network.

The half-day event organised by AustCham in partnership with the Australian Consulate-General and sponsored by Telstra explored the major risks to business that are keeping CEOs and directors awake at night, and featured panels sessions with industry-recognised policy makers and cybersecurity experts from across the region.

In her opening comments Consul-General Michaela Browning referred to the work between Australia and Hong Kong on e-trading rules, and the value of cross border collaboration.

“Cybersecurity and building capability and talent is a shared priority for both Australia and Hong Kong. Australia and Hong Kong both participate in global rule-making to shape and support an open digital global economy,” she said.

Australia has recently signed with Hong Kong the WTO joint statement on e-commerce. “It’s not unreasonable to expect that we’ll have an e-commerce chapter in the FTA we are currently negotiating with Hong Kong,” she said.

Cybersecurity is as intrinsically linked to innovation as it is to security at corporate, national, and international levels.

“We have a twin challenge which can often seem at cross purposes of both protecting information, and those enabling systems and networks that make daily life and business function whilst also providing that environment in which innovation can flourish, technology can develop and thrive and

Glenn Murray, CEO of Sapien and Consul-General Michaela Browning October 2018

cont P.7

Cover Story cont from P.6

He said statistics indicated that more than half of small business are out of business after a cyber breach.

The boards themselves need to get digitally literate and understand all the dimensions of this as well, alongside ongoing executive training. He said that Data 61 is working on projects for international harmonization across borders on compliance and standards.

we can openly collaborate and develop that share capability to foster resilience.

“The cyber landscape is complex and unpredictable.

Cybersecurity alongside data protection must now be at the top of agendas for company boards, government agencies and community agendas and I know it is for the Australian Chamber and many Australian businesses here.”

One industry sector that has been at the forefront of both attacks and innovation has been banking and financial services. Richard Lord, CIO - Asia Pacific for HSBC Commercial Bank said reputation and trust have an intangible value in the new economy.

“To come back to the notion of trust being a key currency in this new economy, if you don’t have trust then what have you got? It takes a lifetime to build a reputation and a couple of seconds to destroy it.” cont P.8

Forum Partner: In his keynote address, Mr Turner advised that boards need to be digitally literate and take the lead on a cybersecurity strategy and it is the role of the board to determine an appropriate level of risk, deal with academia and develop a pipeline of talent “It’s not a technology problem, fundamentally it’s a people problem. The primary threat factor into an organisation is email. Most successful attacks occur because we click on things we shouldn’t click on. There has to be a whole of organisation approach, it’s as a much about culture and people as it is about technology. It needs to be a board level decision and there needs to be a risk framework to understand the risk tolerance in certain situations.

“We also need to recognise there is a real and present threat.”

Sponsor:

Venue sponsor:

7

Cover Story cont from P.7

“What we take for granted the power for our lights, the water that we drink that’s all now starting to become vulnerable to attacks.”

Michael Gazeley, Managing Director of cybersecurity services provider Network Box, noted that one characteristic of the Hong Kong market was a tendency for companies to throw money at a third party to fix a problem without taking a more strategic engagement, then use them as a scapegoat if things go wrong.

8

Adrian Turner, CEO of Data 61

Catherine Simmons, Managing Director, Head, Asia Pacific Government Affairs Citi, said that historically financial institutions have been a focus for attacks and it was a matter of keeping up with technological challenges.

“Financial services have faced this threat for quite some time.

There used to be people on horses with guns trying to get into the bank with guards at the front, and we’ve moved along now but the threat is much greater, it could now be a single attacker.”

“About 18 years ago you needed to update [systems] about eight times a day to keep ahead of the bad guys if we are talking about the arms race, we are currently updating our clients every eight seconds. That is how ridiculous it has become. It’s a fight out there.”

Education and capability building both at an individual and corporate level can have a very big impact and Australia has a lot of capability in that regard we’d like to share, - Consul-General Michaela Browning

Glen Murray, CEO of Sapien, said companies' approach to cybersecurity practices will be similar to the adoption of occupational health and safety within organisations more than a decade ago. "Then it was why do I need to wear a hard hat, nothing will fall on me. The same is true now. Why do I need cybersecurity protection? We are seeing the change happen."

He expects to see more companies appoint a chief information security officer (CISO) to the C-suite.

Hong Kong's Assistant Government Chief Information Officer, Jason Pun, outlined the government's two-year Pilot Partnership Programme for Cybersecurity Information Sharing (www. cybersechub.hk). It now has 90 companies and organisations as members. It aims to promote cyber security information exchange among public organisations, the private sector and the community and enhance the city's overall defensive capability and resilience against cyber attacks.

He said that while many people still regard cybersecurity as relating to malware or viruses, operational technology (OT) threats now exist, that pose a risk with the increasing use of technology at public utilities or oil and gas plants.

"It’s just weird some of the stuff that’s getting connected,” said Matt Tett, Managing Director of Enex TestLab, in regards to the Internet of Things (IoT), noting that people may not even be aware that their TV set has the potential to listen in to their conversation, transfer it and within seconds you could receive ads through other devices related to what was said.

The Hong Kong police and SAR Government were praised by speakers for the leadership they have been taking in combating cybersecurity, and Australia could learn a lot from the practices in place here. Another recurring theme through the sessions was the lack of skills, the need to recruit talent, and to educate and build up the skill set of senior executives.

“Education and capability building both at an individual and corporate level can have a very big impact and Australia has a lot of capability in that regard we’d like to share,” said Ms Browning.

Matt Tett, MD of Enex TestLab, and fintech specialist Danielle Szetho October 2018

Making an Impact

CGTNeBill ws Under Reconsideration

Thursday 4 October 2018 www.afr.com The Australian Financial Review |

AFR

4

TMorrison forced to compromise on GST

he lobbying efforts of AustCham Hong Kong are proving which highlighted how the proposed changes to capital gains effective with the Federal Government removing the tax would seriously disadvantage Australians working overseas. contentious capital gains tax amendment bill from the We encourage all members and their family to keep up the Senate’s list of business, pending a review. We are grateful to pressure through letters to their local member of parliament did key Senate all members who have thrown their support behind the global and the Federal ion, he also amendment, as t the legislatJosh would suppor Treasurer Frydenberg. crossbenchers including the twoin ments 75¢ amend than less push s receive would it will point ed state Key no indicat ing member Centre Alliance and SA indecampaign, opposition the GST pool. and crossbench in the Senate to enshrine the ‘‘nothe dollar from Exclusive as well as government, Storer. ‘‘If it’s good If the changes are rejected, tee’’ the other states pendent Tim off guaran worseTo ensure no other state goes backtee, it is The following article appeared on page 4 of 4 October. get a guaran WA toAFR, for the enough an it make govern members of parliament whowards have listened to our concerns.

Labor could Phillip Coorey gains, the federal as WA were seeking. equitable that SA gets a a this legislation pass only fair and Political editor ‘‘We want to see ment will tip in an extra $1 billion election issue. It was later amended worse off as be not will it online to correctly identify the Australian that tee guaran and that will be reflected in my recomment could be year to the GST pool. governlike a result of the legislation,’’ he said.

Morrisonalso South AusWeThe would to acknowledge Australian Financial Treasurers agree to remove states and tion to the Labor caucus,’’ he said.

But the easternthe Alliance senator Stirling Chamber ofmenda Commerce Kong.

SA Centre tee forced to compromise on its new deal see the guaran ne to Hong are scenarios in hygie want e there also we femal argue on ‘‘But al tralia GST the after e ting GST revenu Griff concurred. He said his princip for distribu uate may be inadeq Review for its series of articles through October billionissue the $1the for the people of Tasmania and NSW which on 1. ry Senate key Janua and was to ensure the state from cts sibility Greens the produ Labor, heque territory that respon ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

crossbenchers indicated they would amend the legislation to support a guarantee that no state would be worse off.

During a meeting of state and federal Treasurers on Wednesday, the govern ment rejected a demand by every state lia and territory except Western Austra that the legislation for the new deal off guarantee no state would be worse the under the new deal compared with a. formul ution distrib t curren The new deal was designed to placate a politically volatile WA by ensur-

Expats urge rethink of ‘draconian’ CGT plan ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Tom McIlroy and Michael Smith

and, instead, they want a blank-c guarantee to cover potential losses.

Finishing a three-day trip in WA, Mr d.

Morrison again rejected the deman He accused the states of ‘‘talking their the own book’’ and insisted that under offer, no state would be worse off. ‘‘Our government isn’t in the habit of writing blank cheques to anybody,’’ he said.

Treasurer Josh Frydenberg was similarly unmoved. ‘‘What the states want the is for us to run a parallel scheme – old system and the new system. And

of we don’t want to run a separate set books. We want to run a new system which will be bedded down in legislation, providing certainty to the states and territories which will leave them

all better off.’’

Federal Labor led the push to legising late the GST floor for WA. Follow the Treasurers’ meeting, shadow treasLabor urer Chris Bowen said while

and every other state and they won’t be worse off and of course ch that will also be reflected in the approa that I recommend to the Labor Party when it comes to this legislation.’’

Alternatively, if the government refuses to accept changes, Labor could an pass the bill and make the changes election issue. r A spokesman for Greens senato Peter Whish-Wilson said the party an would be inclined to support such

was not financially disadvantaged.

If the crossbenchers back Labor, the the government will have to amend legislation or reject the amendments and make it an election issue. y The Treasurers agreed unanimousl e to remove the GST on female hygien will which 1, y Januar products from cost about $30 million a year.

Opinion Miranda Stewart p51

From page 1 Union threat to Labor over trade deals Canada, Peru, Mexico, Brunei, Malayd sia and Vietnam, and which include ent an investor-state dispute settlem clauses (ISDS) clause for Canada. These allow foreigners to take legal action against Australia if their commercial interests are hurt by government policy

action.

To calm the caucus, leader Bill the Shorten, a ‘‘reluctant’’ supporter of TPP, and opposition trade spokesman Jason Clare said that, if elected, Labor would try to do side deals with the TPP ons. members to expunge these conditi on And Labor would oppose the inclusi of such provisions in all future trade

Federal government plans to slug tax expatriates millions in capital gains if they sell their homes while living g growin amid risk, at be could s oversea deals. concern from Labor and Senate a .

Caucus voted to ratify the TPP but crossbenchers week later, Left MPs led by Doug Some 100,000 Australians living and Caucus have capital to a again losing face tried s Cameron working oversea was resoppose the legislation. The push gains tax exemption on their main MICHAEL PERINI is under way against the move. PHOTO: defeated again, but someone the leaked idence if they sell the property while James Englebrecht and Jacinta Reddan in Hong Kong, where a campaign g s detailing the minute caucus the based overseas, as part of housin work35 years because they had been in September 11 debate. Many MPs argued affordability measures announced ing overseas. be wedged by parties such Soft target the 2017 budget. said he is worried Labor would recht Engleb Mr have as One Nation over foreign workers.

Expatriates in Hong Kong because he and his wife bought a twothe 2017 budget CGT charge works overHow to movement not letign union campa the global With a ed launch bedroom place in Sydney before movting up ahead of the resumption of Parturn the proposal, arguing it was pun2021 2019 ing to Hong Kong.

Rent while g 2016 r 15, multiple workin for Octobe dwelling on in ionals t Live profess liamen 1986 ishing foreign resident The couple, who have just had their Finas main residence of Value sources have told The Australian overseas, wiping out the life savings Value child, expect to return eventually first it little prospect $2.5m make was Value would there and s Review Sell before ordinary worker they ancial $2.2m means which family 0 larger a event $100,00 with CGT again, issue June 30 to harder for Australian firms to recruit buy of caucus revisiting the Become foreign resident Acquired property avoid the tax – sell property its would probably sell the property to – first rent property unless shadow cabinet changed as main residence staff to overseas offices. a bigger home. unlikely, given highly was That view.

Tax expert Robyn Jacobson said the be that option would er, Howev the in TPP retrothe the back in right those in the legislation could result Capital of restricted if they had to pay capital far belief it is a net positive in terms gain spective denial of the exemption as ic gains tax on any profits from the sale. the $2.4m* expanding trade and econom back as September 20, 1985 – when Comof er Chamb Kong SOURCE: AUSTCHAM The Hong Left, includthe enced. on comm some do as regime , tax growth gains capital global campaign a *Taxed at marginal rates leading is merce spokes for affairs The existing laws would apply g ing opposition foreign encouraging Australians workin woman Penny Wong. any property sold before June 30, 2019. , particularly changes. One of the uences we protest le conseq to s ded peop for e oversea uninten mor bracing drais The Nonetheless, the party ‘‘The proposed changes are liformer l the largest concentrations of Austra e for expats, and I wrote to the an explosion at its triennial nationa conian and retrospective becaus g can encourage ans working overseas is in Hong Kong. treasurer, now Prime Minister, pointin nce, which is scheduled for the confere while the bill is proposing the measwill said. rer Treasu Bowen er. bett the ‘‘We are hoping a new these design flaws,’’ Mr out ore, hapoffsh that as. events Christm CGT to before ures will apply too week look at this with fresh eyes. It’s not Independent Tim Storer and Centre Sue Kench, King & Wood Mallesons the The party’s Left faction is meeting in pen after May 9, 2017, it has and Rex global chief late,’’ chief executive Jacinta Reddan Sydney on Saturday to discuss policy res- Alliance senators Stirling Griff practical effect of denying the main look would they ed indicat have al said.

Patrick positions it will be taking to Nation idence exemption back to when people changes. ‘‘We are now calling on international said unfavourably at retrospective Conference and the TPP will feature originally bought the property,’’ Australians to write to the new treas- prominently.

Ms Jacobson called for changes to at a Ms Jacobson, a senior trainer be on. He is now in allow the cost base of the property to would not be urer and Scott Morris ‘‘The TPP is running very hot at the TaxBanter. ‘‘If the owner is a nontime the was under renovation, a broader view ...’’ of the reset to the market value at the before the changes position to take moment,’’ said one MP and member resident at the time they enter into ons global chief sident, or for able to find a buyer Malles non-re a e Wood & becam King owner she no the right who implemented. As a result sale contract, these measures have the the Left. A member of tions of the number of days the were executive Sue Kench described calcula conflag of a if nds hout that thousa throug said of TPP ds status the cy ts hundre residen be suppor would at regard for it fin- changes as shortsighted and ‘‘wrong ty property was a main residence. ration at conference was as bad as dollars out of pocket at a time when their ownership period of the proper every level’’.

James Englebrecht, a Hong Kongtheir as le. d. ty bearab straine proper was the that already used gets, ances were or how they g Based in Hong Kong, Ms Kench said based partner at St James’s Place On Thursday last week at a meetin ‘‘It’s not necessarily people who are home. It is all based on residency status professionals considering a move over- of the Victorian ALP Administrative Wealth Management, provides advice high flyers. Just regular families trying when they sell it.’’ the he of said light and in lians twice Austra think of ds would seas to hundre Committee, the Industrial Left submit to get ahead.’’ In one hypothetical scenA spokeswoman for Treasurer Josh has had clients in tears because they ty financial hit. ted a resolution calling on federal ario, an Australian acquires a proper Frydenberg said debate on the legislathe to at impact world the the in about are we ned e ‘‘Wher as the were concer Labor to oppose ratifying the TPP. for $100,000 in 1986 and lives in it tion was expected to conclude in lians offtheir finances. when moment, we need Austra ‘‘Disappointingly, our TPP resolution Senate by December. Budget papers a their main residence until 2016 cing in the ‘‘She was in shock and there were to $2.2 shore. We need them influen million ed $581 increas has worth included on the agenda of the is value t plan the marke its show of a Sydney woman country, Australia Pty was not a as says he and tears,’’ region, few Administrative Committee, being over the forward estimates. p million.

Ltd, it’s never more important than voted down before it was even given going through a marriage break-u propAusthe The out told rents than Bowen Chris person The Labor’s who came to see him last month. ‘‘She By now. the time for consideration,’’ the faction erty and becomes a foreign resident. tralian Financial Review he hoped ‘‘The more people we can encourage was completely broken by the news.’’ ty is sold for ok. ‘‘This is just the design problems would be fixed. things don’t said of Facebo client had 2021, the same proper the These said better. recht the e, Engleb d.’’ offshor Mr to beginning. The TPP must be stoppe $2.5 million. The person would have ‘‘While Labor supports the policy that, they discourage,’’ she said. choice but to sell the family home do no entire ned the concer over are gains we the le, all intent in princip e it pay tax on becaus but divorce the of e becaus about what we regard as the most likely AFRGA1 A004

9

Hong Kong Focus

10

AustCham welcomes HK 2018 Policy Address The Australian Chamber of Commerce in Hong Kong welcomes the initiatives announced in the Chief Executive’s second Policy Address, with a focus on livelihood issues and a long-term development plan. We are pleased that many of the initiatives announced address issues raised in the Chamber’s submission to the Chief Executive as part of her consultation exercise.

T

he Chief Executive’s ambitious plans with land reclamation off Lantau Island and brownfield development in the New Territories would mean a generational change for Hong Kong, a city not afraid of an infrastructure challenge.

Alongside these major announcements are a raft of initiatives which will, if implemented, enhance Hong Kong’s international status as a free, open, and more liveable city operating under the principle of ‘one country, two systems’, as well as providing extra funding to nurture the city’s youth through education to greater levels of care for our ageing population.

Within the 250 policy initiatives in the Policy Address, many relate to issues of interest and concern to our members that were included in our submission to the Chief Executive.

We are pleased to see recognition of the creative industries with further support of the Hong Kong Design Centre and funding towards a new centre in Wan Chai to highlight design.

The Chamber has actively promoted innovation in the construction industry and we acknowledge the support the industry will receive from government in the pursuit of best practise through innovation, training, as well as putting in place measures to ensure greater transparency in the oversight of major projects.

We also welcome the support the government is proposing to put into boosting Hong Kong as a maritime hub through tax exemptions and vocational training. The Chamber also applauds the efforts announced to rejuvenate Hong Kong’s manufacturing base. cont P.11

October 2018

Hong Kong Focus cont from P.10

In our submission the Chamber highlighted the importance of quality of life by making Hong Kong a smarter and more liveable city. These factors can make the difference in a company’s decision where to be based and also in attracting staff. The government must pursue initiatives which make the city an attractive option in an increasingly competitive region.

We fully endorse measures announced such as extended maternity leave and child support as key in supporting women to participate in the workforce. We applaud Mrs Lam’s call for Hong Kong listed companies to appoint more women to boards. We know that greater diversity means better decisionmaking. Extra funding for ethnic minorities will also make Hong Kong a more inclusive society and ensure greater diversity.

Now the hard work now starts through a process of consultation and engagement by government, with business, with legislators, and, most importantly, with the community at large to explain these policy initiatives. AustCham looks forward to being a part of that dialogue.

11

For more highlights, please see here.

Year round Mates’ Rates: Member Benefit Program 2018 This year we launched the new year-round Member Benefit Program, helping you to get the most out of your membership.

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

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

A reminder of our AustCham policy submission here.

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

Marco Polo Hotels - Hong Kong: 15% off at Cucina, Cafe Marco, Three on Canton and add@Prince Island Shangri-La Hong Kong: 15% discount on regular-priced items Retail PAGODA: Use code “aussiepagodalife” to enjoy 20% off Travel Hey Travelista: Save up to 70% on your next luxury hotel/resort stay Qantas Airways: Extra 5 kgs baggage allowance from Hong Kong to Australia Hotels Grand Hyatt Hong Kong: Special offer on F&B and Plateau Spa

ard Membership eC

Hotel VIC: Enjoy 20% discount on F&B at Cruise, The Farmhouse and The Farmhouse Deli.

Ovolo Hotels: 20% off on the Best Available Rate

Hong Kong Focus

Policy Address 2018 Highlights

12

Land and Housing Housing Continue to implement the new initiatives in housing policy, including delinking the selling prices of subsidised sale flats from the market prices Increase the public-private housing ratio and allocate more land for public housing development Review the public-private housing ratio under the Long Term Housing Strategy The Hong Kong Housing Authority will consider allowing owners of its subsidised sale flats with premium unpaid to sublet their flats to families in need; introduce an initiative whereby under-occupied public rental housing households may enjoy rent exemption upon transfer Land Supply Develop land resources in a persistent manner and allocate 70% of housing units on newly developed land to public housing development Launch the “Lantau Tomorrow Vision”, commence a study on the reclamation for artificial islands to increase land supply in Hong Kong, drive economic development and improve people’s living quality Reactivate the revitalisation scheme for industrial buildings to provide incentives to owners to convert old industrial buildings, and allow the provision of transitional housing within revitalised industrial buildings Liveable City Transport Waive or pay for the tolls charged on franchised buses for using government or franchised tunnels/roads to ease fare increase pressure Rationalise the tolls payable by private cars, taxis and motorcycles for using the three harbour crossings/tunnels to re-distribute cross-harbour traffic Launch a consultation next year on specific proposals for the Electronic Road Pricing Pilot Scheme in Central and its adjacent areas Provide at least 1 500 public car parking spaces in government facilities and public open space projects over the next five years

October 2018

Revive the “Central-Hung Hom” ferry route; launch a pilot “water taxi” service plying between Kai Tak, Hung Hom, Tsim Sha Tsui East, West Kowloon and Central Environmental Protection Tighten the emission standards for newly registered motorcycles in 2020, phase out Euro IV diesel commercial vehicles by the end of 2023, conduct consultation on ceasing the first registration of diesel private cars Legislate for the implementation of municipal solid waste charging and provide additional resources for the implementation of waste reduction and recycling; take the lead to avoid using disposable plastic tableware and study the feasibility of regulatory control on the use of such tableware Develop renewable energy with the Government taking the lead and provide support to individuals and non-governmental organisations to install renewable energy installations Building Safety Launch a $2.5 billion Lift Modernisation Subsidy Scheme to subsidise the needy owners in modernising aged lifts Animal Welfare Amend the relevant legislation to protect animal welfare Implement the Animal Watchers Scheme by the Police Labour and Welfare Secure the passage of the enabling legislation to abolish the “offsetting” arrangement under the Mandatory Provident Fund Scheme within the current term of the Government, and implement the abolition two years after the legislative amendments. The Government will enhance the support for employers and assist the micro, small and medium-sized enterprises in making preparation for the change Extend the statutory maternity leave to 14 weeks, where the employers can apply for reimbursement of the additional expenditure on four weeks’ statutory maternity leave from the Government; and extend the maternity leave for all female employees of the Government to 14 weeks with immediate effect cont P.13

Hong Kong Focus cont from P.12

Increase the statutory paternity leave from three days to five days as early as possible Study new measures for protecting employees injured at work and occupational disease sufferers, including enhanced treatment and rehabilitation services, speeding up processing of work injury cases and stepping up investigation and prosecution efforts against non-compliance Strengthen the protection of the employment terms and conditions as well as the labour rights of non-skilled workers employed by government service contractors Allocate more than $500 million to strengthen support for ethnic minorities and promote inclusiveness Diversified Economy Enhance the status of Hong Kong as an international commerce and trading centre by signing more bilateral and multilateral agreements Fully participate in and contribute to the Belt and Road Initiative to generate new impetus for economic development Establish a Steering Committee for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area for the overall co-ordination of participation in the development of the Greater Bay Area and identify opportunities for Hong Kong Closely monitor the impacts of the trade friction between China and the United States on Hong Kong and introduce supportive initiatives for various sectors in a timely manner Innovation and Technology Inject $20 billion into the Research Endowment Fund of the Research Grants Council; launch a $3 billion Research Matching Grant Scheme; and introduce fellowship schemes for outstanding academics to strengthen the pool of talent in research and innovation and technology in Hong Kong Expedite re-industrialisation by establishing a $2 billion reindustrialisation funding scheme to subsidise manufacturers to set up smart production lines in Hong Kong and allocating $2 billion for building manufacturing facilities required by the advanced manufacturing sector in industrial estates Promote technology transfer by increasing the funding support to the Technology Transfer Offices of universities, the Technology Start-up Support Scheme for Universities, as well as the State Key Laboratories and Hong Kong branches of the Chinese National Engineering Research Centre Announce annual plans to open up data by government departments Launch pro-innovation government procurement policies Transportation Services and Logistics Formulate tax measures to foster ship leasing business; provide tax concessions for the marine insurance sector; support Hong Kong to provide dispute resolution services to the global maritime industry; and inject $200 million into the Maritime and Aviation Training Fund

Financial Services Issue the first batch of virtual banking licences by the end of 2018 or early 2019 Telecommunications Proactively open up appropriate government premises for the installation of 5G base stations by mobile service operators Creative Industry Inject $1 billion into the Film Development Fund to nurture talent, enhance local film production, expand markets and build up audiences Nurturing Talent Implement the all-graduate teaching force policy in public sector primary and secondary schools, involving an additional recurrent funding of about $1.5 billion per year Provide a Life-wide Learning Grant for public sector schools and schools under the Direct Subsidy Scheme through an annual provision of $900 million Provide public sector schools and schools under the Direct Subsidy Scheme with additional recurrent resources of $570 million to strengthen the administrative support for schools and their management committees Provide an additional provision of $800 million per year to strengthen support for students with special educational needs on various fronts, including enhancing the educational psychologist to school ratio and creating school-based speech therapist posts in public sector ordinary schools Offer 1 200 places a year through the Vocational Training Council to allow students to join industries requiring specialised skills under the “Earn & Learn” model Healthcare Strengthen primary healthcare services by setting up the first District Health Centre in Kwai Tsing, and extending this model to other districts Recognise the positioning of Chinese medicine services in the healthcare system in Hong Kong; provide subsidised in-patient and out-patient services through the Chinese medicine hospital under planning and the 18 Chinese Medicine Centres for Training and Research; and set up a $500 million dedicated fund to promote applied research and specialisation of Chinese medicine Continue to implement the first 10-year Hospital Development Plan and prepare for the second 10-year Hospital Development Plan with a view to providing more than 9 000 hospital beds in the future Propose to legislate for a ban on the import, manufacture, sale, distribution and advertisement of electronic cigarettes and other new smoking products Introduce free cervical cancer vaccination for school girls of specific age group

13

Australia Focus

14

Perhaps, Prime Minister

For more than 30 years Kerry-Anne Walsh has been involved in the pressure cooker of politics that is Canberra, as a journalist, advisor, author, and consultant. She was recently the guest speaker of a Women in Business Network lunch session to talk on Where is Australian Politics Heading?

“N

ot so long ago, one of the tests that a doctor would perform when testing for concussion is ‘can you tell us the name of the Australian Prime Minister’. And that question epitomised that we had such a stable democracy and parliament that no-one could forget the name of the PM.” …so began veteran journalist Kerry-Anne Walsh’ analysis of the state of Australian politics.

“Why we’ve had such a decade of turmoil and what these events mean for the future is the key to where our parliamentary democracy lies.”

Ms Walsh, who has followed many election cycles and has witnessed the rise of independents urged Australia’s leaders to understand what is driving voters away from major parties.

She highlighted the role of pockets of the media who were engaged in Federal politics rather than reporting as keen, independent observers. One of the solutions, according to Ms Walsh, was tackling the Canberra bubble and moving the press gallery out of Parliament House.

Ms Walsh said part of the blame also lay with an over-reliance on what she described as “toxic” opinion polls. “Polls deter

from creative and visionary leadership. And it’s an incredibly counter-intuitive cycle.

“What the community wants is stability, sound policy-making, politicians who listen, who lead and take courageous decisions in the best interests of the country after consultation with the community.

“If, in doing so they lead their side into defeat it means the votes have had their say on the policies and they want another way.

This is the way it’s always worked. It’s the way it’s supposed to work. cont P.15

October 2018

Australia Focus Women in Business Network Sponsors:

15 Venue Sponsor:

cont from P.14

“This instability has contributed to the rise again of One Nation, to the rise of minor or micro parties to the point where we now have an almost unworkable senate,” said Ms Walsh who has just published a book Hoodwinked: How Pauline Hanson fooled a Nation”. The book is a no holes barred uncompromising assessment of the motivations and rise of one of Australia most highprofile independents.

“The big winners over the last decade have been the independents,” she told the audience.

Ms Walsh also encouraged the audience to not despair but to remain engaged, to get involved in grass roots politics and to contribute to public debate. *To help shape your future and get involved, AustCham encourages you to write to the Federal Treasurer Josh Frydenberg regarding the crippling impact of the Government’s proposed amended to the Housing Affordability Act which would hit those of us living and working in Hong Kong hard by taxing our family home should we sell while overseas.

Industry Insight

16

A new perspective on identifying developable land in Hong Kong Research based on Colliers’ analytical framework gives a new perspective on identifying developable land and the housing shortage in the city

By Daniel Shih, Zac Tang, and Steven Mak of Colliers International Hong Kong

T

he chronic housing shortage has kept Hong Kong’s residential prices among the costliest in the world.

Previous government attempts to impose additional stamp duties have failed to stabilize the property market.

The government’s Task Force on Land Supply generated 18 options for public consideration. Based on Colliers’ analysis, we have identified the top five choices that should meet the minimum requirement of 1,200 hectares.

However, we do not see the ongoing land supply debate generating a quick fix to the problem as most of the identified land is not available for immediate development.

Instead, the Hong Kong government should add more temporary housing, an issue ignored by the current Task Force on Land Supply, in order to tame community anxiety about continuously rising rental costs and property prices.

Housing woes Established in September 2017, the Task Force on Land Supply appointed by the Chief Executive, has been given 18 months to achieve the broadest consensus and draw up a broad framework of recommendations on the overall land supply strategy and a prioritization of different land supply options October 2018

for submission to the Government, based on the opinions collected in the public engagement exercise.

We appreciate that the Task Force has a limited mandate to focus on land supply only. However, we believe Hong Kong needs to take a holistic approach to review our current and future development vision in order to formulate a long-term land supply strategy, specifically: Priority should be given to any new development areas if they match Hong Kong’s long-term development framework, especially future integration within the Greater Bay Area; and Streamline the extremely slow implementation process within the existing regulation framework to expedite future land supply We do not believe the current approach relying on individual preferences without providing an objective analytical framework will generate the community consensus required to move the land supply issue forward.

New thinking required The Task Force has altogether identified 18 different sources of potential land supply after examining previous government planning studies, policy initiatives and proposals cont P.17

ong’s he vious mpose ave erty

upply public olliers’ ntified hould ement

KEY ISSUES

SUPPLY OPTIONS

he te he

able nt.

more ue sk rder ty rental

•

•

A total of 18 options were proposed based on prior government studies

•

Recommendation to be based on public opinion No selection criteria laid out for the public

• •

A lack of framework for discussion

•

Use an analytical framework to evaluate options

•

Two critical criteria – facilitate overall development & implementation feasibility Top five options provide over 1,200 hectares of developable land

COLLIERS SUGGESTIONS •

cont from P.16

generate community consensus Limited scope and a lack of holistic approach integrating land use with Hong Kong’s long term development vision

19 Years Income to buy a flat

(10 years)

Short-medium term options

-492ha Land deficit through 2026

(10~30 years)

Long term options

+ Additional demand

Industry Insight

(no timeline)

Conceptual options

1,217 ha 2-D analytical framework

12 matrix boxes

Top 5 options

Housing Authority, applicants for published rental housing • Most land supply options only GOV YEARS recommended by different within community.5.3have to wait on average 5.3 years before they can be admitted. availablegroups in a 10-30 yearthe timeframe 14 site of These options are• then further divided into three categories 210k Pressure to address the long sq ft based on the perceived timing forpublic implementation: shortMoreover, there are 210,000 people living540K in sub-divided flats waiting list for rental housing and growing subdivided flats TEMPORARY medium term (within 10 years), medium-long term (10-30 with a median floor area of 107 sq feet (10 sq metres) and a Waiting for No. of people in Short-term HOUSING years) and Conceptual options (no timeline).

• Temporary land supply key to tame floor area sq feet tenders (5.3 sq metres), publicmedian housingper capita subdivided flatsof 57 tenancy the runaway property market according to 2016 Population By-census Thematic Report The public is invited to review these options and pick the published in January 2018. The report also showed that there Source: Task Force on Land Supply, Housing Authority, Census and Statistics Department, Colliers Research one they prefer as part of the public engagement exercise. are 93,000 units of subdivided flats in Hong Kong.

Using this framework, it is very difficult for the general public to make any informed decision on a sophisticated issue like The statistics show that the current housing shortage problem land supply, especially when the Task Force could not provide requires immediate remedies to improve the living conditions a more comprehensive feasibility analysis for each option. of many low-income households. We believe the housing problem could be partly relieved if the government can provide After further review of these options, we have found that enough temporary housing units for people on the public many of them share similar characteristics. For example, housing waiting list and living in subdivided units. “developing the River Trade Terminal site” and “developing River Trade Terminal and surrounding areas” share a lot of According to the Lands Department, there are more than similarity and are more efficiently considered as one package, 860 vacant sites, including schools, available for community, but were put under two different development timeframes. institutional, or non-profit uses. In addition, for the rest of We believe there are merits to further consolidating similar 2018, there are a total of 14 land parcels with a total area of options in order to reduce the number of repetitive choices, 510,000 sq feet (47,000 sq metres) to be tendered out for thereby simplifying the task. short term tenancy arrangement by the Lands Department.

The majority of these site are to be used for car parking. We The Task Force, under their mandate, repackaged different expect a certain percentage of these sites to be suitable for proposals undertaken by various government departments. conversion to temporary housing.

The public engagement exercise will likely be more fruitful if the community can openly discuss why these old proposals In addition, many Asian cities, especially in Japan, use space have not been implemented and be given the freedom to underneath urban rail tracks and flyovers for commercial, suggest new options. cultural, and recreational uses. With similar spaces in Hong Kong, the government can further explore opportunities Temporary solution for converting the space beneath fly-overs in Hong Kong to Following Colliers’ proposed analytical framework, Hong Kong temporary housing uses. has enough options to reach the 1,200 hectares new land Source: supply target. However, securing the new land supply will The full report is available. at http://www.colliersresidential.hk/ not resolve the more acute problem of immediate housing filestore/Colliers_HK_Land_Supply__Radar_Final.pdf shortage. According to the latest information released by

17

Member Comment

Hong Kong Cracks Down on Money Laundering What are the implications of the city’s recent changes to laws to counter money laundering and the financing of terrorism, and what will companies have to do to comply?

- Teresa Tam, Business Development Director, Primasia Corporate Services

18

ong Kong is well-known for its low taxes and efficient company-formation procedures. However, the same ease of set-up can attract bad players as well as genuine businesses.

H

In 2015, 16% of AML cases leading to convictions in Hong Kong involved the use of TCSPs. Giving TCSPs responsibility for AML and CTF checking therefore creates a “zone defence”, taking the fight against criminal activity to the front line.

At the same time, international standards on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CTF) have been tightened under the Financial Action Task Force (FATF), an intergovernmental body established in 1989, of which Hong Kong is a member. The FATF assessed the AML/ CTF standards in Hong Kong in 2008 and 2012, and determined that Hong Kong had only limited AML/CTF requirements for Designated Non-Financial Businesses or Professions (DNFBPs).

The SCR is intended to counter money laundering and terrorist financing threats, by looking through nominee and trust arrangements, as well as complex ownership structures, in order to identify beneficial ownership and control. Law enforcement authorities are thereby enabled to be informed, in an easily accessible manner, of beneficial ownership information. This measure also enables compliance with FATF recommendations.

Hong Kong has therefore introduced new AML and CTF legislation, effective 1 March of this year for DNFBPs, including Trust or Company Services Providers (TCSPs – most of whom are company secretarial firms), accounting professionals, estate agents and lawyers. This has been done in order to be ready for the next FATF peer review in2018/19.

Risk-based approach Also effective 1 March 2018, amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance align designated non-financial institutions, including TCSPs, with financial institutions, for which rules have been in place since 2012.

Changes with respect to TCSPs include a licensing regime under the Companies Registry, and expanded customer due diligence and record keeping requirements. This affects primarily Hong Kong companies and their company secretaries but also other DNFBPs.

Significant controllers Under the amended Companies Ordinance, all non-listed Hong Kong companies are required to create and maintain a Significant Controllers Register (SCR). The SCR is not public but must be available for inspection by law enforcement officers at the company’s registered office.

Put very simply, a Significant Controller (SC) is anyone who, directly or indirectly, controls more than 25% of the shares or voting rights of a company, or who otherwise exercises significant control over the company. Identifying the SC requires knowing full details of ownership and control throughout a company’s structure, up to the ultimate owners. The duty of ascertaining and recoding this in the SCR falls on both the company itself and on its company secretary (which is a TCSP).

A company, and its secretary, therefore needs to take reasonable steps to identify the company’s SCs, including reviewing the company’s register of members, and organisation chart. This may involve giving formal notice to any person who is believed to be an SC or to any person who is believed to know the identity of any SC, and obtaining the required particulars and entering them in the SCR. A Designated Representative (DR) must also be appointed by each company to assist law enforcement officers with enquiries. A DR must be a member, director or an employee of the company who is a natural person living in Hong Kong, or an accounting professional, a legal professional or a TCSP licensee.

October 2018

The additional requirements include (1) identifying the customer and verifying their identity; (2) identifying and taking reasonable measures to verify the beneficial owner’s identity; and (3) obtaining information on the purpose and intended nature of the business relationship. Using a risk-based approach, TCSPs must conduct different levels of customer due diligence and ongoing monitoring of clients.

The new AMLO has, however, relaxed the threshold of defining beneficial ownership of a corporation to “more than 25%” of the issued shares, having regard to the prevailing FATF standard and international practice. This at least offsets some of the administrative compliance burden (and cost) which the new rules have created.

But it’s a good thing Hong Kong’s regulations are now up to date with international standards, which is beneficial to Hong Kong’s reputation as a financially safe and clean city for doing business, and therefore good for any companies doing or commencing business here.

Although more information needs to be provided, and costs will be higher, the information is something which genuine businesses should have, or should want to have, readily available, and should be willing to provide. Providing the information should be regarded as a hurdle rather than as an obstacle to doing business in a well-regulated jurisdiction.

Spotlight

19

Australia's First Piano on Show in Hong Kong

O

ne of the world’s most significant collection of 18th and 19th century pianos, including Australia’s first piano, will arrive in Hong Kong in November for a number of events to celebrate the collection – titled ‘Founding Pianos’.

The collection offers a wide selection of exceptionally rare and, in some instances, unique stringed keyboard instruments dating from 1736-1874. The collection includes fortepianos; spinets and breathtaking examples of square, grand and cabinet pianos of immense cultural value.

The Founding Pianos collection includes the historic First Fleet piano, the first instrument to arrive in Australia 1788; a piano owned by the flute player in composer Joseph Haydn’s orchestra; and several of the last surviving pianos made by Europe’s greatest master makers.

Sydney collector Stewart Symonds donated the 140 pianos to Perth’s Edith Cowan University (ECU). The collection has recently been enhanced with pianos from the modern era, donated by another collector, David Forward.

ECU Professor and world renowned fortepianist Geoffrey Lancaster AM said: “Our hope is that Edith Cowan University’s instruments, spanning two centuries of keyboard art and design, will be protected and restored - so that students and audiences from across the world may experience the wonder of the piano and be inspired by the stories and sounds of this unique Australian resource.”

The acquisition of this remarkable collection forms an important part of the university’s greater music strategy and marks the commencement of a multi-million-dollar fundraising program – to restore, conserve and launch a range of scholarship programs – underpinning the most significant historical keyboard instrument research project undertaken in Australia.

The project will culminate in the construction of a $90 million world-class keyboard and music performance facility that is expected to provide benefits not only for Australia but also its neighbours in the Asian corridor.

“ECU’s vision to build a centre for keyboard excellence to house this very important collection will attract worldwide attention to our city as a place where education, creativity, innovation, history and culture are respected and valued,” said Professor Lancaster.

A selection of instruments from the Founding Pianos collection will tour Hong Kong from 8 to 13 November.

Professor Geoffrey Lancaster will perform recital and masterclasses reflecting ECU’s commitment to the performing arts in Hong Kong. ECU invites the people of Hong Kong to view the collection and learn more about these exceptionally rare and precious instruments.

Event Details Founding Pianos in Hong Kong Monday 12 November: Hong Kong Academy of Performing Arts Master Class Tuesday 13 November: Tai Kwun recital, “All About Mozart” by Professor Geoffrey Lancaster For more information please visit: foundingpianos.com.au AustCham and ECU is pleased to offer 10 x double passes to this special evening at Tai Kwun.

Please email firstpianos@austcham.com.hk

2018 Victorian State Election

2018 Victorian State Election The Victorian State Election will take place on Saturday 24 November 2018. All eligible Victorians on the electoral roll are required to vote.

The Australian Consulate-General in Hong Kong will be running an early voting centre between 12 and 23 November for the upcoming Victorian State Election on 24 November. We will be open Monday to Friday, 9am to 5pm (most days) during the early voting period. Please note we will not be open on 24 November 2018.

20

Please check your enrolment status before attempting to attend the consulate to vote.

Visit www.vec.vic.gov.au to check your enrolment.

The Australian Consulate-General is not in a position to confirm your eligibility.

Postal vote: Voters in Hong Kong will also be able to apply to have a postal vote sent to you. You can apply online for a postal vote from Wednesday 31 October which will be emailed to you. Visit www.vec.vic.gov.au for more information.

1. Apply for a ballot paper to be emailed to you 2. Print and complete the ballot paper 3. Post the ballot paper to the Australia using the envelope provided

EVENTS UPDATE NOVEMBER AT A GLANCE… Thu, 1 November, 12:30pm – 2:00pm Melbourne or Perth? - plus an Australian property market overview for Australian expats Boardroom, KPMG, 8/F Prince Building, 10 Chater Road, Central, HK *Independent Event Delivered Through AustCham's Event Management Service

Fri, 2 November, 8:00am – 9:30am 20th CEO Forum with Sandeep Sekhri, CEO of Dining Concepts Ltd The Hong Kong Management Association, Room 1, 14/F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Tue, 6 November, 6:15pm – 8:30pm AustCham UOW Mentor Programme Session 4: Panel Discussion – Future Proofing Your Career CPA Australia, 20/F Tai Yau Building, 181 Johnston Road, Wanchai, HK Wed, 7 November, 12:30pm – 2:00pm Protect Your Business from Cybercrime Boardroom, Commonwealth Bank of Australia, 13/F, One Exchange Square, 8 Connaught Place, Central, HK Thu, 8 November, 6:30pm – 8:30pm Australian Property Expat Update: Independent Research on all Key Australian Capital City and Region Level 19, Two Chinachem Central, 26 Des Voeux Road Central, Central, Hong Kong *Independent Event Delivered Through AustCham's Event Management Service

Fri, 9 November, 12:30pm – 2:00pm Return to Oz: Crucial investment tax planning for wealthy Australians who will one day return home 14/F Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong *Independent October 2018 Event Delivered Through AustCham's Event Management Service

Returned votes must be sent back to Australia postmarked on or before 6.00 pm on Saturday 24 November and received no later than 6.00 pm (Victorian time) on Friday 30 November in Australia.

In person: We strongly recommend those who wish to vote in person visit the Consulate from Wednesday 14 November. We expect VEC ballot papers will have arrived by this date.

Australian Consulate-General Hong Kong Polling Centre: 24/F, Harbour Centre, 25 Habour Road, Wanchai.

Date & Time: 12 to 21 November 2018: 9:00am to 5:00pm (Closed Saturday 17 November and Sunday 18 November) 22 November 2018: 9:00 am to 1:00pm 23 November 2018: 9:00am to 3:00pm * POLLING WILL NOT BE AVAILABLE ON ELECTION DAY 24 NOVEMBER. Contact Victorian Electoral Commission, please click https://www.vec.vic.gov.au/

Wed, 14 November, 11:30am – 1:15pm Joint Business Community Luncheon with Chief Executive of the HKSAR, The Hon. Mrs Carrie Lam Cheng Yuet-ngor Grand Hall, Hong Kong Convention and Exhibition Centre, 1 Expo Dr, Wan Chai, Hong Kong Fri, 16 November, 2:15pm – 5:30pm AustCham Emerging Technologies Series: Tour to Cyberport Hong Kong Cyberport Tue, 20 November, 12:30pm – 2:00pm Mastering the Elevator Pitch The Executive Centre, Level 19, Two Chinachem Central, 26 Des Voeux Road Central, Hong Kong Tue, 20 November, 6:30pm – 8:30pm The Australian National University Alumni Cocktails Oasis Room, Renaissance Harbour View Hotel Hong Kong, 1 Harbour Road, Wanchai, Hong Kong Wed, 21 November, 12:30pm – 2:00pm Social Media – LinkedIn Seminar To be confirmed Tue, 27 November, 6:00pm – 8:00pm AustCham Emerging Technologies Series: Artificial Intelligence Google, 25/F, Tower 2, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong Fri, 30 November, 1:15pm – 5:00pm Eco Field Trip – Renewable Energy Visit to Siu Ho Wan Solar Farm Siu Ho Wan DSD Solar Farm, Lantau Island, Hong Kong

DECEMBER AT A GLANCE… Wed, 5 December, 6:30pm – 9:00pm Christmas Mix The Arches, Level 1, The Murray, 22 Cotton Tree Drive, Central, Hong Kong

AustCham UOW Mentor Programme

T

he AustCham UOW Mentor Programme held a kick-off workshop with a fun and engaging evening to explore the values, motivations and goals of the group.

The workshop was run by facilitator Sally Dellow of Dramatic Difference and the guest speaker was Professor Pascal Perez, Director of the SMART Infrastructure Facility at the University of Wollongong.

Venue sponsor:

21

News

Taste of Tasmania in Hong Kong

P

remium Tasmanian produce will be showcased at an independent store-within-a store at the new ParknShop supermarket, food le parc at the Cheung Kong Centre, Queens Road Central from 2 to 29 November.

22

Houston Farms salads, Woodbridge Smoked Ocean Trout, Huon smoked salmon, Juicy Isle Organic Juices, Tasmanian scallops, Wellington Apiary Honey, Tasman sea salt will be available for tasting and sale.

Tasmanian Minister for Primary Industries and Water, Sarah Courtney, was in Hong Kong recently and met with Dominic Wong CEO, and Norman Yum, General Manager of ParknShop, together with representatives from AustCham, Austrade and the CEOs of the brands participating, to discuss the promotion.

It is hoped that six further promotions will be planned in 2019 including one for Tasmanian cherries in January, to help grow knowledge about interest in regional Australian produce and to link the understanding of fine food and the people who grow it and their passion, with the desire to travel to the source to experience and learn more about the areas.

The promotions are being arranged by Tas’Mania Limited, David Meredith and Calvin Yuen.

Dialogue with Women CEOs and Mentorship Programme Launched

T

he Chinese University of Hong Kong (CUHK) Business School has announced the launch of Dialogue with Women CEOs and Mentorship Programme 2018-19. The initiative was introduced in partnership with a group of women chief executives from the financial services industry in Hong Kong.

The Dialogue with Women CEOs series, consisting of five dialogue events, aims to empower the next generation through exchange of views on business and social issues. It will be hosted between September 2018 and May 2019, featuring each time a panel of female CEOs who will speak about a variety of topics focusing on diversity and inclusion.

Ivy Au Yeung, New AustCham board director, CEO Hong Kong, ANZ and the convener of the group of female business leaders said, “The group of female business leaders is committed to paving the way for the next generation of women leaders.

Through the Dialogue with Women CEOs and Mentorship Programme, we can start engaging young people and improving their access to financial education, providing them with a well-supported environment for future career growth in the financial industry.”

October 2018

The Mentorship Programme pairs executives from participating firms with secondary school students in groups of four to six with CUHK Business School students acting as coordinators.

The programme targets to serve as many as 500 students from the invited schools. More than 80 mentor volunteers of participating firms will leverage the programme.

The group is supported by a range of leading local and international financial services institutions: ANZ, Asia Insurance, Bank of China, Bank of Montreal, BNP Paribas, BNY Mellon, Commonwealth Bank of Australia, Citi, Credit Suisse, Goldman Sachs, Hang Seng Bank, HSBC, J.P. Morgan, Mastercard, Morgan Stanley, Rabobank, Standard Chartered, UBS, UOB, and Visa.

Committees in Action

Sustainability Committee: Turning Waste to Energy AustCham field trip to T • PARK

A

ustCham’s Sustainability Committee hosted an inspiring Eco Field Trip to T • PARK, the first self-sustained sludge treatment facility in Hong Kong, to learn about its ‘waste-to-energy’ approach.

For many years the city has been facing a waste challenge as landfill is not a sustainable waste management solution. T • PARK’s advanced incineration system can reduce the volume of sludge by up to 90% and eventually lighten the load to the landfills. The heat produced during the incineration process can be recovered to generate electricity for on-site operational needs while surplus electricity generated can be exported to support up to 4,000 households.

AustCham is going to organise another sustainability field trip, to Siu Ho Wan DSD Solar Plant, which is the Hong Kong’s largest solar farm to support the adoption of renewable energy technology, on 30 November.

23

Committees in Action Women in Business Network sponsors:

Session 1

24

Venue sponsors:

WIBN: Emerging Technology Programme The third series of our highly sought-after Emerging Technology Programme organised by Women in Business Network, aiming to increase knowledge of our members on the threats and opportunities posed by disruptive technologies, to upskill in particular technologies, and to help close the gender technology gap and empower everyone to deliver innovative solutions has kicked off with the first two sessions.

The introductory session focused on some of the basics of Emerging Technology and how the world is being disrupted today, to help participants think differently and understand how technologies are enabling such rapid change in the world we are living in.

This interactive workshop was led by the PwC Global Emerging Technologies Leader, Scott Likens, and Jen Flowers, the PwC Design Thinking Leader.

The second session explored how Blockchain and Distributed Ledger Technologies are transforming financial services, trade finance, supply chains, clearing and settlement.

Guest speaker Danielle Szetho, inaugural CEO of FinTech Australia, covered topics including tokenisation, various digital assets, and emerging regulatory trends.

The third session will be held 30 October, looking at virtual and augmented reality with speaker Devin Ehrig of Shadow Factory.

October 2018

Committees in Action

25

Session 2

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 sectorled, non-profit 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

Fred Hollows

The Hub

The Fred Hollows Foundation has a very clear goal: putting an end to avoidable blindness. When this day comes, people in developing countries will get the same quality eye care the rest of the world takes for granted – and they won’t stop until this is done.

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.

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 under-privileged children the opportunity to find a better environment to develop into contributing members of the community. www.thehubhk.org

Giving Back

Crazy Rich Asians Party

M

ore than 400 guests lived up to the theme of this year’s The Hub charity gala ball, Crazy Rich Asians. From the gold leaf garnishing on every dish to the presence of VIP guest Henry Golding the star of the movie the theme took its name, it was a night of bling, and fling on the dancefloor. One guest bid $250,000 to appear in Henry’s next film. Hundreds of thousands of dollars were raised for the charity to continue to provide its valuable support for children in the city. The Hub is one of AustCham’s CSR partners.

27

Are you steering your organisation through unprecedented change and complexity?

The International Company Directors Course is designed for directors, aspiring directors and senior executives operating across jurisdictions.

Over five days, the course covers director duties, the international legal environment, risk and strategy, financial performance and board effectiveness. It is based on global best practice using case studies from around the world.

Upcoming date: 4 to 8 March 2019 W Hong Kong, 1 Austin Road West, Kowloon Station, Kowloon

Enrol today at companydirectors.com.au/icdc

06458-25_18

Contact us t: +61 2 8248 6600 e: international@aicd.com.au