AustCham News December 2019 - Tech Ready or Not? by The Australian Chamber of Commerce in Hong Kong

香港澳洲商會

The Australian Chamber of Commerce Hong Kong

H O N G

K O N G

austcham news • Issue 212 | DEC 2019 Property Focus 14 Investors remain keen on HK 16 Is the market as bleak as it seems? 10 HK Government on Australia 19 Future Leaders 30 The Season for Giving

Tech Ready or Not? • The Future Workforce • The Rise of Virtual Banking

Where Business, People and Ideas Connect

www.austcham.com.hk

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Chairman's Column

his was a particularly unusual year for Hong Kong, calling for reflection as we move towards a new year. With Hong Kong’s first recession in a decade on the horizon, there has never been a more important time for the Chamber to stand ready to assist our members, and for the international business community to come together.

Hong Kong is going through a period of change. In order to adapt to the change, effort is required from all stakeholders including the Government, the business community, the Chamber, our peer chambers, and you, our members. At AustCham we stand committed to ensure we continue to provide a vital and influential voice in the international business community in Hong Kong. Looking back, we can all be proud of the activities and accomplishments the Chamber has achieved this year. See page 12 A Year in Review: Firsts and Triumphs to look at the milestones we marked in 2019, of which many of you were all part. AustCham remains fully committed to support our members and your businesses in this challenging time. In additional to the various SMEs relief measures launched by the Government recently, we are hoping to see greater financial allocation into sectors that had been severely impacted, particularly the tourism and hospitality industry. The Hong Kong Financial Secretary will be launching the Budget Consultation ahead of the 2020-21 Hong Kong Budget, we welcome your input and ideas to support your respective businesses on the ground and uphold Hong Kong as a global financial hub. The Greater Bay Area has been a key focus of the Chamber, remaining committed to capitalise opportunities of the initiative. We reiterate our support to members for the commercial opportunities arising from the GBA. With the Greater Bay Area committee hosting roundtables with senior executive leaders, we stimulate ongoing discussion and debate around how to best leverage Hong Kong’s strengths and continued role as the international gateway to China. As we prepare for 2020, the pace of the Chamber will not be slowing and we will continue to be the at the forefront and a voice for you, our members. On behalf of AustCham, I would like to extend my best wishes to all members and their families of a safe and happy festive season and look forward to seeing you in 2020.

austcham news issue 212 Tech Ready or Not? The Future Workforce

Virtual Banking: What it Takes to Survive

HK Government on Australia 10 2019 Chamber Highlights 12 Property Focus Commercial Investors remain keen on Hong Kong

Is the Residential Market as Bleak 16 as it Seems? Future Leaders Lessons in Global Leadership

Fostering Future APAC Leaders

Inside the Intern Program

Are you missing the Asia Link?

Finding Passion and Purpose

Important Changes to Travel Advice

Mind, Body, Business At the Heart of your Health: Essential Knowledge

Public Affairs: Growing Apetite for Hong Kong

Committees in Action

News & New Members

The Season for Giving Christmas Mix at Six

Yours sincerely,

Building Brighter Futures: From Drama to Coding

Andrew Macintosh chairman@austcham.com.hk

Mates Rates: Special Offers for Members

Member Profile

austcham news Online version

Please email story ideas, corporate news or thought leadership to the editor: isabella.chan@austcham.com.hk

ISSUE 212 • 3

Chamber Chatter

What’s Trending

he more than 120 members and new faces who joined us at our Christmas celebration (see page 30) summed up for us a central aspect of AustCham membership: that of community. With the challenges of the past few months, there has never been a more important time to come together as a community to celebrate that spirit, in hope and goodwill.

As we go to press, we are about to hear from our outgoing Australian Consul-General Michaela Browning as we invite her to share her reflections of an extraordinary time in Hong Kong. We are indebted to the ConsulGeneral and her team who have continued to provide support, have listened and have responded to the deep and abiding commercial and personal ties that exist between Hong Kong and Australia. We want to also acknowledge the partnership and friendship the Chamber has enjoyed with Deputy Consul-General Ken Gordon who also returns to Australia early in the new year. Ken played a critical role in negotiating the FTA which was signed earlier this year. We wish Michaela, Ken and their respective families the very best and take this opportunity to acknowledge their extraordinary legacy. We are continuing our work to support members navigate the current challenges, with a focus on our tourism, hospitality and retail sector. We are pleased to have enabled close engagement with the Hong Kong Tourism Board and its new Executive Director Dane Cheng. With tourism numbers down by more than 40%, we firmly believe that these challenging circumstances call for close collaboration between the private and public sector. We stand ready to continue acting as that bridge and to support wherever we can.

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: Isabella Chan Jacinta Reddan Advertising: Email: advertising@austcham.com.hk

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

And so, from all of us at AustCham may we extend our very best wishes to you for the holidays and may 2020 bring us peace - on our streets, in our businesses and in our daily lives. Jacinta Reddan, Chief Executive, AustCham

AUSTCHAM PLATINUM PATRONS

4 • December 2019

Printed on environmentally-friendly paper

Cover story - Tech Ready or Not?

Deciphering The Future Workforce

By Tracy Hansen

While emerging technologies promise increased efficiencies and higher productivity, how does robotics and AI technologies impact jobs, skills and the nature of work itself? In its eighth year, AustCham and Baker Tilly's year-end panel discussed the outlook on the future workforce.

e can no longer simply rely on our significant experience within the work force, our entrepreneurial spirit or even a solid career in technology and innovation to guide us in determining the future of work. Managers also need to consider the implications of Machine Learning , Big Dat a , Ar tificial Intelligence and what this means for the diversity gap across an increasingly multigenerational workforce. As Hong Kongers, we have also become increasingly aware how rapid political, economic and social changes contribute towards a VUCA workplace. First coined by US Army cadets during the Cold War, the concept of VUCA (volatile, uncertain, complex and ambiguous) is gaining new relevance in the business community, where unpredictable events taking place outside of the workplace - are constantly rechallenging the skills required to effectively manage our business environment and workforce. According to the Future of Jobs Report released by the World Economic Forum in 2018, it is estimated that by 2022 the workplace will consist of 58% humans and 32% machines. By 2025 this ratio is expected to be 52:48. As we hurtle towards the new norm, we can also expect an increasingly

Ryan Swann, Director, Baker Tilly; Virginia Morris, Managing Partner & Leadership Strategist, Bamboo Difference; Fyiona Yong, Director, Wholistic Coachsulting; Rajeev Chib, APAC Head of Client Facilitation and Business Management, CitiGroup.

diverse workforce, with much longer life expectancy, with many of us working well into our 80’s. The good news is that we can limit potential disruption from new technologies by having a clear vision and a well-planned strategy. Effective communications are key. By highlighting the cont P.6 ISSUE 212 • 5

Cover story - Tech Ready or Not? cont from P.5

advantages to both clients and colleagues, allowing time for testing and feedback, we can ensure that any technological transformation is embraced, supported and utilised to its full potential.

So, what does this all mean for the Future of Work?

At our AustCham annual year-end event (photos below), our exper t panel, moderated by Virginia Morris from Bamboo Difference, shared their experiences and advice on managing digital transformation in the workplace, particularly among a multigenerational workforce. Ryan Swann, Director at Baker Tilly, stressed the importance of being prepared and having a clear strategy, by asking such questions as: will the new technology help with revenue generation, cost saving, removing repetitive tasks, making data more accessible? Who will manage the data and how can we analyse it effectively? It is also important to ensure the benefits of any new digitisation process is clearly communicated to staff and that managers listen to, address and resolve any concerns to ensure the transformation is a success.

According to Rajeev Chib, APAC Head of Client Facilitation and Business Management - Investor Sales and Relationship Management APAC at Citigroup, the key is, â&#x20AC;&#x153;disrupt yourself before being disrupted. Start slowly, take just one or two problem statements, implement the new system, measure the impact and review it, again and again if necessaryâ&#x20AC;?. Ironing out any problems in advance should help minimise any potential disruption to staff and clients. cont P.7

Disrupt yourself before being disrupted - Rajeev Chib

The most successful mindset is a disruptive one - Virginia Morris In managing multigenerational teams towards successful digitisation, the panel suggests identifying a community of line managers who are genuinely interested in technology. The line managers can then help guide the transition process, assist in communicating the benefits to their colleagues and encourage an environment where people are free to make mistakes and learn. To ensure new technologies are embraced, it is also important that people empathise with each other throughout the digitisation process and that all staff are made to feel comfortable in communicating their experiences, discussing ideas and issues without fear of recrimination.

6 â&#x20AC;˘ December 2019

Source: Next Generation Study 2019 Wholistic Coachsulting and AIESEC Hong

Cover story - Tech Ready or Not? cont from P.6

Digital natives - reality or myth Intergenerational Leadership Coach, Fyiona Yong reminds us it is dangerous to assume that all young people are tech savvy and that all other employees are less so. “While Millennials may be more comfortable with technology, they still prefer personal coaching and on-the-job training to eLearning,” she says. “Millennials and the younger generation may be perceived as digital natives by the more mature generations however, ba sed on our N ex t G e ne r ation Stud y, Hong Kong’s Millennials and GenZ suggest they do not feel prepared when it comes to technological advancement. The younger generations however may be quicker to adapt to tech changes but to assume that they are tech savvy would be one of the myths that we debunked in this study.”

“There is a great oppor tunity for education and school curriculums to adapt to the rapidly changing environment, to not only focus on good grades but rather foster creative and social competencies that will still stay relevant when technolog y is taking over transactional and repetitive activities in the workplace.”

2020 and beyond As we head into 2020, we face continuing disruption and confusion with digital transformation, as well as social, economic and political unknowns leaving managers and staff unsure and often daunted. Armed with a clear vision and carefully planned strategy, underlined by an effective communications plan, digital transformation can be implemented to complement, not replace the human workforce. Rajeev Chib reminds us of the importance of nurturing “the human trust factor” and that cognitive abilities remain important and are key to a successful digital environment. “To minimize disruption, new technologies should never be hastily implemented without a detailed strategy that communicates the benefits to all stakeholders across the business,” he concludes. Thank you, also to our expert moderator, Virginia Morris, and panelists Ryan Swann, Fyiona Yong and Rajeev Chib. Event sponsor:

Kong, survey of 650 Millenials and GenZ working and living in Hong Kong.

ISSUE 212 • 7

Cover story - Tech Ready or Not?

Virtual Banking: What it Takes to Survive AustCham brought together a panel of experts from financial heavyweights, HSBC and Standard Chartered Bank, to start-up virtual banks WeLab and Volt Bank, to identify and discuss the challenges and opportunities digital banking brings to the financial service landscape.

n the past five years digital banks have rapidly emerged, powering the inevitable course towards the Smart Banking Era. Not only have these new banks ruffled the feathers of long-standing legacy banks, they have challenged the traditional ways of banking and redefined best practice. Often without a physical retail presence, being technically adept and customer centric, virtual banks are leaders in the online banking experience and offer customers an alternative way to conduct their banking activities. The entrance of virtual banking is also driving traditional banks to place more emphasis on customer experiences and more innovative solutions. Group Head of Strategy at WeLab, Jessica Lam, observes the change already happening in Hong Kong; “Shortly after the issuance of virtual banking licenses, some of the major incumbents (banks) were removing minimum balance fees and increasing digital transformation projects. Ultimately, customers will be presented with more options and better banking experiences when the industry is driven towards delivering a customer-centric approach and more tech-driven solutions,” she says.

disrupted, “Around six years ago, we saw fintechs around the world kicking at the heels of traditional financial service providers – fintechs typically specialise in one aspect of banking and deliver it extremely well, incorporating innovative technologies. In the West, we are seeing the likes of Robinhood and Acorns (or Raiz in Australia), specialising in easy-to-management investment solutions, and Kabbage and LendingClub who offer better access to credit. WeLab is a classic example in the East. WeLab has been offering fully digitised consumer financing solutions, servicing over 40 million users across Hong Kong, Mainland China, and Indonesia. Many of these users are first time borrowers, typically underserved by the traditional banking sector, as they do not possess the ‘standard’ credit history or information required. WeLab has been able to intelligently and efficiently grant credit to these users by developing a whole suite of proprietary risk management technology, and with advanced AI capabilities are able to venture into B2B financial services.” cont P.9

For the first time, the Hong Kong Monetary Authority has issued eight virtual banking licenses in the city we know as an international finance hub. Tony Ohlsson of Volt Bank spoke of the Australian experience of virtual banks, where Volt Bank has already attracted thousands of account holders. With lower employee numbers and minimal overhead expenses, operating costs are low for digital banks, allowing for a greater focus on the development and utility of technology, then leveraged for greater revenue generation. Jessica explains just how the financial services landscape is being 8 • December 2019

Moderator, Liam Gilligan (centre) and panellists, (from left) Tony Ohlsson, Jessica Lam, Lareina Wang and Edwin Hui.

Cover story - Tech Ready or Not? cont from P.8

Surviving the Smart Banking Era So how have virtual banks gone from start-ups to global banking challengers? Head of Corporate Affairs & Strategy at Virtual Bank Standard Chartered Bank, Edwin Hui identifies the start-up advantage stating, “Start-ups can be nimble. They have the ability to try new things with a smaller customer base.” Jessica adds that the right mindset is also a key driver to the success of virtual banks so far, and can also be prudent to digital transformation in big banks. “It’s about the mindset. Is the organisation ready for a digital change and ready to think outside the box? Is management ready? What positions are being made to process this change?” she poses. Panellists agreed that whether big or small, old or new, any bank attempting to digitalise must put in place organisational procedures and managerial support for employees that will to foster cultural change within an organisation, further driving the digital experience from end to end. This is an experience Lareina Wang went through in her time at HSBC London. “We were fortunate to have digitally minded executives at the same time we were part of the Financial Conduct Authority’s innovation sandbox (a regulatory sandbox allows businesses to test innovative propositions in the market, with real consumers). They were willing and proactive for digital change and due to this achievement we’ve seen that cause a ripple effect in Hong Kong today.”

CEO of Virtual Bank Standard Chartered, Deniz Güven, states the mission of his division, “at Virtual Bank Standard Chartered we want to help redefine the digital banking experience in Hong Kong. We’ve done this by setting up a strategic joint venture with multiple lifestyle providers in telecommunications, entertainment and travel.” Further, by encouraging risk taking within the company Liam Gilligan, Head of Standard Chartered Bank’s eXellerator Lab, Member of SC Ventures hopes to foster greater innovation that will power transformation and uplift the existing intuition to a level fit to challenge virtual banks. When asked about the stability of virtual banks, panellists agreed that the fall of a virtual bank would only be up to technical issues, or by being bought out. And having enough man-power to survive the digital change was not the right concern. Instead businesses should be concerned about having the right staff – those who have a versatile skill set, know about business operations and digital technology or build a team that has all bases covered. The wave of virtual banks has already settled upon the financial services industry, hurtling fintech debate and integration towards all institutions in the bid to stay relevant and to stay a challenger. Hosted by the AustCham Finance, Legal and Tax Committee, we thank our venue sponsor Standard Chartered Bank. Venue sponsor:

ISSUE 212 • 9

HK Government on Australia

Edward Yau with Senator Simon Birmingham, Minister for Trade, Tourism and Investment Australia

Trusting Mateship to Overcome Challenges By Edward Yau, Secretary for Commerce and Economic Development, HKSAR Government

It is often said that great mates stick together when the going gets tough. Australia and Hong Kong share this spirit of mateship, which has seen our cultural links and business relations deepen and mature over many years.

oday, Hong Kong is home to around 100,000 Australians – the largest Australian expatriate community in Asia – and the value of our bilateral merchandise trade in 2018 exceeded $54 billion (A$10 billion). Looking ahead, we anticipate significant challenges in the near term. For the first time in a decade, Hong Kong’s economy has slipped into recession, impacted by a softening global economy, the effects of the Sino-US trade dispute and months of social unrest. Hong Kong is a relatively wealthy city and we will make good use of our ample fiscal reserves to support businesses during this difficult period. Since August, we have rolled out more than $25 billion (A$4.7 billion) worth of relief measures, mostly to support SMEs. These include waiving Government fees and charges, introducing a 90% Guarantee Product of the SME Financing Guarantee Scheme to help ease cash flow pressure; expanding the scope of the SME Export Marketing Fund and injecting $1 billion (A$190 million) into the BUD Fund to promote branding and marketing activities. Other initiatives include rent reduction at various government business premises, tourism industry incentives and a fuel subsidy for commercial vehicles, etc. We can also take confidence from Hong Kong’s enduring institutional strengths. We are fully committed to “One Country, 10 • December 2019

Two Systems” and to preserving our competitive advantages as a free and open economy with a low and simple tax regime and world-class common law legal system.

ver 600 Australian companies operate in Hong Kong and, according to a recent InvestHK survey, Australia is the fifth-largest origin country for non-local start-ups in the city, accounting for 6.3 per cent of the total. I encourage Australian entrepreneurs to look beyond the current difficulties and remain focused on the huge opportunities for Australian business in Hong Kong. Helping to unlock these opportunities, Australia and Hong Kong signed a landmark Free Trade Agreement (FTA) and Investment Agreement (IA) in March this year. The FTA and IA will provide greater certainty for duty-free entry of Australian goods, more convenient business travel, and protection and preferential treatment for investors and investments of both places. Hong Kong and Australia are committed to providing market access and treatment to each other’s service suppliers that is no less favourable than that for local providers in a wide range of services. Taking professional services as an example, our commitments on architectural and engineering services are WTO-plus. And Hong Kong has made commitments on legal services such as guaranteeing cross-border access for provision of

HK Government on Australia Australian and international law on business and arbitration, which Hong Kong has never previously offered in its FTAs with other overseas partners. Discussions and co-operation on professional services will continue as part of the future work programme. To reap opportunities and meet challenges ahead, the FTA and IA feature dedicated and forward-looking disciplines in the specific realm of the next-generation economic growth points, e.g. on e-commerce and new financial services, including fintech.

Australian companies cannot afford to miss out on the great potential of the Greater Bay Area At the same time, Australian companies cannot afford to miss out on the great potential of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Hong Kong is a key and strategic enabler in the GBA, which covers a population of over 70 million people and has a combined GDP of about US$1.6 trillion – roughly the size of Australia’s. With a fast-growing GDP per capita already higher than the national average, the GBA represents a huge emerging market for highquality Australian produce, brands and professional services in finance, law, logistics, tourism and many other sectors.

Last month (Nov 6), the Central People’s Government introduced 16 measures to reinforce Hong Kong’s leading role in the GBA by facilitating Hong Kong residents to live, work, invest, study and travel in the GBA. Also last month (Nov 21), we signed an Amendment Agreement to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). The Amendment Agreement introduces a number of new liberalisation measures for cross-boundary trade in services covering sectors including financial, legal, construction and related engineering, testing and certification, television, motion pictures and tourism services. In fact, Australian investors can set up a company in Hong Kong, partner with, invest in or even acquire service suppliers in Hong Kong to take advantage of CEPA and tap in to the burgeoning Mainland opportunities. With robust institutional strengths, unique business advantages and many emerging opportunities within our grasp, I am confident that Hong Kong will bounce back from its current social and economic difficulties. I thank AustCham and its members for their support over the years and look forward to forging deeper and closer links with our Aussie mates.

At AISHK, it’s all about balance.

ISSUE 212 • 11

YOUR CHAMBER IN 2019

A Year in Review: Firsts and Triumphs

s the year draws to a close, we take the time to look back on the year that was.

This was a year that was memorable in more ways than one. But for AustCham Hong Kong, it was busier than ever with a number of firsts throughout the year aimed at helping members stay ahead. These firsts included our delegation to Canberra where we built on our growing focus on advocacy on your behalf; we launched our improved website and online members’ portal which streamlines and digitalises engagement with the Chamber; and we held our first event series focused on corporate wellness. We welcomed an astonishing 4400 people to our 120 events

across the year. And we hosted the 26th annual Australia China Business Awards (ACBA) in Hong Kong, which celebrated extraordinary stories of business success, perseverance and entrepreneurialism between China, particularly Hong Kong, and Australia. We also welcomed two new Platinum Patrons, Leighton Asia and Asia Miles, and we remain indebted to our Platinum supporters without whose commitment and support, we would simply not exist. But back to our firsts: Led by Chairman Andrew Macintosh the delegation to Canberra included Platinum Patrons Leighton Asia and KPMG, and was packed with meetings forging closer ties between key decision-makers in Australia and AustCham Hong Kong. Our delegates championed Hong Kong’s critical role in

MILES

1st JOINT DELEGATION TO CANBERRA 1st ONLINE MEMBER PORTAL

100+ Government Meetings & Roundtables

120 Events

12 • December 2019

4400 Events attendees

trade and investment with Australia including the Hong Kong Australia Double Taxation Agreement, building Asia capability in corporate Australia and the progress of the Australia-Hong Kong Free Trade Agreement,.

iscussions with Government officials were held with Acting Treasurer and Minister for Trade, Tourism and Investment Senator Simon Birmingham, Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume, Chief Minister of the Australian Capital Territory, Andrew Barr and Head of Hong Kong Economic and Trade Office in Australia and New Zealand, Raymond Fan, amongst other high level meetings. We enjoyed a rare visit to the Chinese Embassy which was addressed by His Excellency Cheng Jingye, Chinese Ambassador to Australia, and met senior DFAT officials before attending the Australia China Business Council’s annual networking day which was a who’s who of businesses engaging with China.

The ACBA Gala Dinner was our strongest awards night to date, with guest speakers Chief Executive Carrie Lam Cheng YuetNgor, Maggie Zhou of Alibaba Group and Jonathan Larsen of Ping An Group. With over 440 attendees, we celebrated nine award winners and showcased more than 190 nominations recognising exceptional businesses in the region. Many of our members enjoyed our first series dedicated to managing and maintaining health in the workplace and home. Our Mind, Body, Business series included experts on mental health and physical wellbeing, with our final instalment taking place early next year. Booking tickets for events is now made easy with our members’ portal where you, our members can take ownership of your engagement with AustCham through renewals, committee engagement, searching the AustCham Members Directory and more. The volume of activities and the level of engagement is down to you, our members. We look forward to your continuing involvement next year. Thank you.

TONES 2 NEW PLATIUNUM PATRONS 1st CORPORATE HEALTH SERIES

10 Submissions to Government

30+

Media Coverage

Mentor/Mentee Partnerships

38 Host Companies 42 Interns 45 Committee Meetings 31 Committee Events ISSUE 212 • 13

Property Focus

Commercial Investors remain keen on Hong Kong

ccording to Colliers Annual Investor Survey Report* released late November investment appetite in Hong Kong remains positive despite the challenges in the local market, including unresolved political unrest and the prolonged US-China trade war. Over the next 12 months, 71% and 89% of the investors surveyed (79 developers, REITS, private funds and family offices based in Hong Kong) indicated that they are looking to deploy capital within and outside of Hong Kong respectively. “On the back of the ongoing social unrest and global uncertainties, business sentiment has weakened and economic growth has slowed down. Whilst the property market enters a consolidation phase, we expect the next 12 months to be a buyers’ market in Hong Kong, with investors looking for assets with discounted prices, which will likely have longer negotiation periods. 38% of the Colliers’ respondents indicated that they are likely to be ‘net buyers’, compared to only 17% identifying themselves as ‘net sellers’, however, which also reflects that investors do not have the urgency to sell their assets,” said Rosanna Tang, Colliers Head of Research, Hong Kong and Southern China.

Political instability the most important factor to hurt market sentiment Colliers reported that two-thirds of survey respondents (68%) regard ‘political instability in Hong Kong’ as the most important factor impacting the local investment market in 2020. According to data from Real Capital Analytics, transactions for commercial assets above HKD100 million (USD12.8 million) fell by 69% from HKD47.2 billion (USD6.1 billion) in Q2 2019 to HK$14.9 billion (USD1.9 billion) in Q3 2019. The decline could be attributed to

By Tracy Hansen the widely weakened investment sentiment since the protests that began in June. We expect that investment transaction volumes in 2020 could still depend on whether the social unrest persists, and sellers will be more willing to negotiate on asking prices over the next 12 months.

Outbound investment interest remains strong Colliers reported that outbound investment intention among local investors remains strong, with 89% of respondents indicating that they will invest outside of Hong Kong in the next 12 months. Savills** has reported that Singapore is the top alternative destination for Hong Kong investors, with outbound commercial investment skyrocketing by 4,915% YoY to reach HK$10.3 billion in Q3/2019, a record high for any quarter over the past three years (the purchase of Duo Tower by Gaw Capital and Allianz from Temasek and Khazanah Nasional for HK$8.3 billion accounted for much of the volume). Singapore would serve as an alternative safe haven for investors looking to diversify their investment portfolios amid growing uncertainties in Hong Kong and the slowing economy in China. Despite the uncertainties brought about by Brexit, the Colliers’ survey findings show that London (40%) is the most attractive destination for outbound investment, and investors remain positive on the city’s long-term prospects. Colliers also reports that Singapore (37%) together with Shanghai (37%) remain the most favoured destinations within the region. cont P.15

* Colliers surveyed a pool of 79 developers, REITS, private funds and family offices based in Hong Kong. The survey was conducted during 15 October 2019 and 10 November 2019, capturing the investment market sentiment following Hong Kong demonstrations in June 2019. ** Savills Asia Pacific Q3 2019 Investment Quarterly Report

14 • December 2019

Property Focus cont from P.14

Savills reported that in Sydney, investment volumes leapt by 490% YoY to HK$3.8 billion. The city’s office market is appealing to investors due to its low vacancy rate of 3.2%, while there is increased uncertainty surrounding the retail sector, and a lack of suitable investment opportunities in the industrial market. According to Savills research team, the United States, New York and Los Angeles are the two hottest markets for Hong Kong investors, with investment volumes increasing from nothing in Q3/2018 to HK$3.0 billion and HK$2.5 billion in Q3/2019 respectively.

Greater Bay Area Since the Central Government announced the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in February 2019, investment interest in the GBA has been increasing. According to Colliers, close to half of the survey respondents (49%) expressed their desire to increase their investment in the GBA. Among cities in the GBA area, Shenzhen captured the most investment interest (57%), given the Central Government revealed its plan to make it a “model city” designed to offer outstanding competitiveness, highquality growth and transformation to a world-influencing hub of innovation, entrepreneurship and creativity by 2035.

prices should rebound quickly once the market picks up again,” said Antonio Wu, deputy managing director, Capital Markets. With so many variables the market is very difficult to call, however recent research by Colliers’ and Savills both indicate that investors are looking to diversify their portfolios amid growing uncertainties in Hong Kong and the slowing economy in China. Sydney’s office market is appealing to investors due to its low vacancy rate of 3.2%. If global and local economic conditions continue to worsen, we are likely to see more price adjustment over the next few months, and possibly a heavier fall in the commercial sector. For more insights on Hong Kong investors mindset entering 2020 visit the Colliers International website or download the full report.

Read the Savills Q3 2019 Asia Pacific Research report here:

Investment strategy in 2020 Although investment appetite remains positive, the Colliers survey results show that investors in general tend to be more cautious, with 73% of them indicating they are ‘unlikely/not at all likely’ to take on more risks. Yet over half of the survey respondents (57%) are still seeking opportunities with higher returns through a “value-add” investment strategy while yields remain low across different sectors in Hong Kong. Colliers recommend that industrial properties are suitable for adopting a “value-add” investment strategy. Investors should leverage on the new measures on industrial buildings laid out in the Industrial Revitalisation Scheme 2.0, and look out for asset enhancement, refurbishment or redevelopment perspectives. In terms of attractive investment assets in the next 12 months, Colliers recommend strata-title offices in the CBD. “We forecast that office prices and rents to decline within the CBD area in 2020. This should provide a window of opportunity for investors to gain exposures in the strata-title office space with discounted prices compare to previous years. While supply will be limited in core locations, CBD office ISSUE 212 • 15

Property Focus

Is the Residential Market as Bleak as it Seems? By Paul Hart, Executive Director and Head of Commercial, Knight Frank Greater China

Global uncertainties led by the US-China trade war coupled with social unrest has created a perfect storm for Hong Kong’s economy. Economic performance and confidence are down. Retail sales have plummeted by 24.3% YoY with retail rents in high street locations having dropped 15% and closure of shops and restaurants on a scale not even seen during SARS. Office tenants are looking to drive down costs and landlords are becoming more responsive resulting in a 10% drop of prime Central rents this year.

hen we look at residential sector, Government statistics show prices peaked in May and dropped 8% since then ending the year flat albeit with a downward outlook for 2020. In the midst of this economic downturn, it is hard to find any positive news. Nonetheless, is the residential market as bleak as it seems, particularly when compared with the retail and office sectors? Hong Kong’s residential market has witnessed a cool-down since the social unrest erupted in June, with purchasing demand recording a sharp decline. According to the Land Registry, the total number of transactions plunged 29% MoM to 4,774 units in June. In October, home prices fell for a fifth consecutive month, with average price falling 1.3%. Despite weakening market sentiment, which has dampened recent sales volume, prices have not declined as much as expected. Why is this so and what is different to the 1997 downturn that followed the Asian Financial Crisis? There are several factors at play. Knight Frank’s research tells us that the biggest driver of Hong Kong’s mass residential prices is the economy which is reflected in the Hang Seng Index (HSI). With a robust 86% correlation prices usually trail the index by 3-6 months. In the second half of this year the HSI has only had around 10% correction. So if the HSI holds its value, the outlook for residential prices may not be as bleak as it seems going into 2020. This could explain why residential is faring a little better than other market segments. But what if the HSI does drop? Our view is that prices will then be under pressure, but there are some fundamental differences between now and 1997. Comparing the Hong Kong residential landscape at the peak of 2019 with that at the top of the peak in 1997 we can see striking differences. Low cost of funds, low indebtedness and enhanced mortgage affordability surprisingly make today’s Hong Kong residential property holding costs more affordable then in 1997.

Key Indicator

1997

2019

Mortgage Rates

2.5%

Loan to Value Ratios

60%

18%

Affordability Index

86.6%

55.7%

Source: Knight Frank Greater China

One big difference between this downturn and 1997 is that the Government had attempted to slow the market by putting in place a range of cooling measures including Additional Stamp 16 • December 2019

Duty, Double Stamp Duty, Buyer Stamp Duty and enhanced mortgage financing caps.

here is little doubt that the administration welcomes a downward adjustment in the residential market at the time. But in the event that pricing does deteriorate dramatically, the Government could start to unwind these cooling measures. A good example is the announcement by the Government on the relaxation of mortgage cap for first time buyers. This has helped restore some purchasing power, especially in the mid-range secondary sales segment. Purchasers are now able to borrow up to 90% of a property’s value to a maximum of HK$8 million up from HK$4 million previously. It is too early to tell statistically the impact of relaxing the mortgage cap but our agents indicated an increase in enquiries. It is not in anyone’s interest to have a collapse in the residential market. The memory of 10 years of negative equity resulting from the Asian Financial Crisis followed by SARS still resonates. Rightly or wrongly the Government also relies heavily upon land sales revenues. So, unless Hong Kong’s tax base is addressed, the Government will not want to see, or can’t afford, a collapse of the housing market. In terms of supporting the residential market, the Government can continue to relax mortgage caps and allow a mechanism for existing owners to upgrade. Punitive stamp duty can be adjusted, as can restrictions on multiple and foreign ownership. Unlike 1997, the Government has a number of options to deploy to help mitigate the downside. Returning to whether the residential market is as impacted as the retail and office sectors I have to say that today, it appears surprisingly resilient. Ultimately, it is the economy that will have the final say. As Hong Kong slipped into a technical recession in the third quarter, the impact of weaker economic activity is being felt across the city. On top of that, with the Government forecasting a budget deficit this year, we believe that the current weak momentum in Hong Kong’s property sector will linger through 2020 and possibly beyond. Much depends on how the HSI responds. This impact is difficult to assess but any downward movement will put pressure on the residential sector. I remain an optimist and hope that over time new policies, including enhanced government spending, could assist a gradual recovery of economy which will ultimately help the property sector. My personal view is that residential prices in 2020 will not collapse but will drop by around 10%. A relaxation of cooling measures remains an important weapon in the Government’s arsenal. I expect more adjustments of these measures to follow and these could help soften the downside on the residential market.

A N E W C H A P T E R B EG I N S I N S Y D N E Y

SYDNEY 悉尼富麗敦酒店 THE FULLERTON HOTEL SINGAP ORE T H E F U L L E R T O N B AY H O T E L S I N G A P O R E T H E F U L L ERTO N O C E A N PA R K H O T EL H O N G KO N G

(2 02 1 AU T U M N)

F U L L E RISSUE TONHO T E L• S17 .COM 212

Future Leaders

From Clinton to Mandela – Lessons in Global Leadership By Nancy Hernreich Bowen, Senior Advisor, Teneo Asia From left, Lauren Chung, Senior Managing Director, Teneo Asia, Nadine Lecocq, Head of Business Development, PwC, Nancy Hernreich Bowen, Senior Advisor, Teneo Asia, Simone Wheeler, Board Member AustCham HK and Jacinta Reddan, Cheif Executive, AustCham HK

have had the opportunity in my life to observe true leadership in action. I spent 25 years in government and politics in the US, including 8 years in the White House as the Assistant to the President and Director of Oval Office operations. In that role, I managed the President’s office, controlled access to him and helped him achieve his priorities every day. It was during this time that I learned about true leadership. Following the White House in 2001, I moved to Asia and for the last 18 years have been able to observe Asian businesses, government and civil society leaders. I was the Managing Director of the Clinton Global initiative Asia in 2008 as well as the Managing Director of Teneo Strategy Asia for 5 years. Because of these and other opportunities, I have been able to observe Asian leadership at its best.

What characteristics make a great leader? When I first met Bill Clinton I knew he would be President of the United States one day. Everyone who met him early in his life says exactly the same thing. He was intelligent, he cared about the people, had ideas for solving problems in the country and had the charisma to draw people to him. Over time, I could see that he had empathy, was non-judgmental, was without ego, was very loyal and grateful, had integrity and was willing to put himself on the line to accomplish goals for the people. He was a wonderful communicator, both verbally and in writing. I saw many of those same characteristics in other government leaders I have met, including Nelson Mandela, Tony Blair and the Middle East leaders involved in the peace process in the 90’s. Additionally, I observed leadership in action on both sides as the US and China tried to develop a better relationship. Nelson Mandela is the single most compelling leader I have every met. One knew one was in the presence of someone great with him. He is a person of immense integrity, inner strength, charisma and foresight. He was kind, empathic and could forge consensus with his opponents. The Middle East leaders all took great risks to try to bring about peace in the region. They all had charisma and had vision. They showed great leadership as much progress was made in the 90s.

leadership in all who were involved in forging Irish peace. All involved in the process were charismatic, were risk takers and were visionaries. Bill Clinton worked hard with them to move this forward and took even great personal risks to do so. They all understood the importance of what they were doing, were great leaders and moved this forward. Clinton and Jiang Zemin had an excellent relationship. One of the characteristics, I observed in the development of the relationship of the two countries was the importance of understanding the other person’s point of view and challenges. I learned a lot from President Clinton about leadership during this time. I have had the opportunity to meet business leaders and the best of them are humble, grateful, charismatic, visionary people of integrity. I have been incredibly lucky in my life to have been able to meet and learn from so many amazing leaders. The AustCham Women in Business Network (WIBN) was honoured to host a private breakfast with Nancy Hernreich Bowen, where she shared anecdotes from her tremendous journey and observations on leadership from a career working alongside global leaders. We thank Nancy sincerely for her candour and insights, and our WIBN committee sponsor:

Blair and Clinton had a special relationship and among other things they worked on the Irish peace process. I observed remarkable ISSUE 212 • 19

Future Leaders

Fostering Future APAC Leaders By Dr Andrea Haefner, Lecturer, Griffith Asia Institute

ogether with economic and political ties, people to people linkages are an integral way to raise awareness and understanding of different cultures and traditions in Australia’s neighbourhood. A key priority for Griffith Asia Institute (GAI) is to help shape the next generation of Asia-Pacific leaders, driving their mission to cultivate the knowledge, capabilities and connections that will inform and enrich Australia’s Asia-Pacific future. GAI is proud of its Global Mobility Business Internship Program that for the first time in 2019 includes over 50 Griffith students completing an unpaid 6-week internship in five Asian destinations, including Hong Kong, Jakarta, Seoul, Shanghai and Tokyo. This year, Hong Kong is the number one destination, with over 45% of the student cohort undertaking their work placement in the city. Due to an increase in bilateral trade over recent years, and consequently strengthened networks and relations, Hong Kong has become of particular interest to Australia. Currently, Hong Kong houses one of the largest Australian communi ties abroad w i th around 100,000 Australians living in the Special Administrative Region and some 600 Australian businesses having a presence in

the city. People to people links between Australia and Hong Kong are strong, spanning tourism, sport, education and cultural exchange. Following the UK, Australia is the second most popular English-speaking study destination for Hong Kong students. Approximately 4,200 Hong Kong citizens have graduated from Griffith University and today Hong Kong is home to more than 2,500 Griffith Alumni.

lobal internships effectively e xpand pe ople to pe ople relations and add value for both the student and host organisation. Focusing on personal and professional development, high-achieving students nearing completion of their degree, have the opportunity to increase employability by gaining skills and exposure to a p r o fe s s i o n a l e nv i r o n m e n t , w h i l e immersing themselves into a different culture, language and lifestyle. Host organisations can fill gaps in personnel and projects, while harnessing fresh ideas and new perspectives, and stay in touch with current trends, methods and approaches. Host organisations also get a head start in identifying and securing enthusiastic students for employment in graduate or other positions.

AustCham Interns at the Australian Consulate-General Hong Kong

AustCham Interns enjoying Hong Kong sights

Griffith Interns participate in the 'Asia Ready Intern Program’ delivered by GAI on campus before arriving in Hong Kong and are capable of assisting with projects and tasks across various business disciplines. These include accounting, finance and economics, employment relations and human resources, government and international relations, international business, marketing, tourism, sport and hotel management. Overall, the opportunity to intern overseas affords students practical industry experience while building cultural awareness and understanding. It also fosters friendships and networks that will last a lifetime.

his is the second year that the Grif fith Global Mobilit y Business Internship Program has partnered with the Australian Chamber of Commerce in Hong Kong, successfully supporting 24 talented students in 2019. Griffith’s value of equity is evident in the broad range of interns, which includes domestic, international, undergraduate and postgraduate students, aged from 19 to 54 years, and whom undertake study across a variety of business disciplines. 80% of Griffith Interns in Hong Kong are recipients of New Colombo Plan mobility funding, a signature initiative by the Australian Government aimed to enhance knowledge of the Indo-Pacific by supporting Australian undergraduates to study or complete internships in the region. Hong Kong is a popular destination for Australian students participating in the New Colombo Plan.

Future Leaders

Inside the Intern Program: Perfect Pairs Kick starting their international careers, our student interns have been powering through their placements since landing in Hong Kong early November.

laced in host organisations across industries spanning finance, legal, tech, hospitality and NGOs, the 26 students undertaking university study in Australia work diligently on weekdays and adventure throughout Hong Kong on their weekends. Interns have had the unique opportunity to hear from government and industry leaders on Australia’s growing relationship with Hong Kong, with a focus on trade, investment and cultural trends. This includes visits to the Australian Consulate-General Hong Kong, local Australian businesses such as Little Creatures, the Design Form Festival and the HKTDC Logistics Conference. Domestic student Nicole Xie and Norwegian student Jane Ethel, both from Griffith University are currently being hosted by AustCham members, Nixplay. Managing Director of Nixplay, David Fergusson, states, “It’s important for every business to give back and make some contribution to training people for the future of the workforce. I expect that by doing that, we will experience a full cycle. By partaking in the Intern Program, we will get the benefit of seeing bright professionals come through universities that have something meaningful to contribute.” AustCham asked Nicole, Jane and their supervisors to share their experience so far in the Intern Program: Finnie Banks, Head of Human Resource and Administration The intern program is fantastic. This is our first time participating in AustCham’s program and we are already making plans for the next intake. AustCham made the process so simple - we didn’t have to worry about visas, flights or accommodation and they connected us with students that shared the right targets and talents that we require at our business. Both the interns that were brought on board this year have very great work ethic and attitudes and are willing to learn, and we are willing to give.

From left, Nicole Xie, Lingy Chan, Finne Banks and Jane Bautista

Jane Bautista, Master of Business (Human Resources) What I enjoy most about my host company is the environment – Since the office is open plan, it’s been easy to approach other staff to collaborate and ask questions. It also means I’m able to be involved in a wider range of business operations and get more opportunities to learn. My projects have involved a lot of backend data work within the human resource systems, which has helped me to see and understand the theory and ideas I’ve learnt in my university courses. Lingy Chan, Graphic Design Manager This is the first time Nixplay has had interns in the company. It has been a really great experience, as we’ve been well supported and we feel informed every step of the way. Our interns are completely capable to take on the tasks we give them and are making a great contribution to our company. Nicole works closely with me on marketing and graphic design. We have tried to ensure that throughout her six weeks with us, she has a wide coverage of topics: from understanding the market, target audience and some of the customer profiles for developing products, right through to hands on graphic design and digital artwork. Nicole Xie, Bachelor of Business and Design (Marketing and Graphic Design) AustCham’s active communication has really supported our experience in Hong Kong. They made it easy by assisting us with visas, arranging accommodation and assisting in placement with the right organisation. I’ve been really grateful that I’m able to do hands on graphic and digital design work, as well as learning about the strategy that goes behind it. The 2020 AustCham Intern Program Summer intake is now calling for host organisation applications. If you think that your company can also benefit from the intern experience, visit our website for more information or contact julian.finlayson@austcham.com.hk David Fergusson with interns Nicole and Jane

ISSUE 212 • 21

Future Leaders

Are you missing the Asia Link? A landmark Asialink Business Commonwealth Bank of Australia Asia Capability survey reveals that although Asia is on the radar for most Australian businesses, they still struggle to convert Asia opportunities into financial outcomes.

to the survey, businesses that included Asian markets into their strategic planning generated 25% more revenue than those that did not plan at all. There is substantially more revenue to be made when businesses consider Asia in their strategic planning. In fact, those with even just a minor focus on Asia can expect to be 44% more successful. The time is now for Australian businesses to enter the market.

he Activating Asia report identifies three lessons for implementation and successful return for businesses heading into Asia: 1. Asia capable staff are critical 2. Keep well-informed of customers’ fast changing preferences 3. Technology is a complement, not a substitute, for being on the ground

Activating Asia Converting opportunities to outcomes with Asia

in their hiring processes generating 64% more revenue. Besides language proficiencies, businesses need to consider cultural sensibility specifically within hiring process both in Australia and within Asia. Employers must be open to letting go of bias and recruiting employees who are Asia capable while in Australia, but also allowing for experts of the language and culture to assist when in on-the-ground in Asia. The problem with implementation has not been in reaching Asian markets but rather missed opportunities to benefit from these markets. The key to successful business implementation in Asia has been the adaptation of products to fit consumers preferences. In order to do so, frameworks must be put in place to ensure the business continues to be up to date with changing demands. According to the survey, businesses that tailor their

THREE LESSONS FROM AUSTRALIAN BUSINESSES THAT ARE CONVERTING OPPORTUNITIES TO OUTCOMES WITH ASIA The Asialink Business Commonwealth Bank of Australia Asia Capability survey data and interviews with business leaders revealed three key lessons from Australian businesses that are successful in Asia.13 These lessons are:

More than half (55%) of businesses surveyed generate less than 5% of their annual revenue from Asia, calling for alarm as over 80% of Australian businesses have Asia on their radar. This clearly shows that most businesses are failing to implement strategies to generate significant revenue from Asian markets. “The ‘top performers’ (of Australian business in Asia) all share common strengths, including employing a highly Asia capable team, customising products to keep-up with changing local tastes, and investing in an on-the-ground presence in Asia,” Asialink Business CEO, Mukund Narayanamurti, says. The underlying secret is within strategic planning for Asian markets. According 22 • December 2019

Asia capable staff are critical.

You have to keep up with customers’ fast changing preferences.

Asia’s emerging middle class continue to Technology is a complement, not a substitute, for offer beinghuge on thegrowth ground. potential for Australian businesses of all sizes. By 2030, emerging Asian economies will have middleclass markets that are more than AUD$20 trillion bigger than they are today - yet for Australian businesses, while Asia is now firmly on their radar, many are not activating these opportunities, especially small and medium enterprises.

In the previous edition of AustCham News we featured a sur vey from Advance revealing that Asia capable staff are integral to business success. The Activating Asia survey confirms this statement and extends that cultural understanding is critical. Success rates were significantly higher when businesses Mumbai, India required Asian language capabilities

cont P.23

CHARACTERISTICS OF SURVEYED AUSTRALIAN BUSINESSES THAT EARN 50 PER CENT OR MORE OF THEIR REVENUE FROM ASIA

46%

21%

46 per cent have their largest Asian presence in China, 21 per cent in Singapore, 13 per cent in Indonesia

25%

26%

25 per cent are in the education and training (private) sector, 26 per cent are in professional, scientific and technical or ‘other’ services

Future Leaders

Finding Passion and Purpose Through Food Catherine Murphy from the Class of 2016, Australian International School Hong Kong, is now studying Human Nutrition in Australia. She shares her experiences so far and plans for the future. and nutrients, it is love and passion, happiness and grief, and it brings people together like nothing else does. Despite how challenging my courses are I also love learning the science behind the food through anatomy and organic chemistry units. I believe that it is important to understand this, as we consume food every single day, yet so many people are unaware of how it all works inside. 3. What were the main factors in deciding to study Nutrition? I wasn’t content with what I was studying at the beginning of my degree, and I hadn’t yet found anything which I was passionate about. Then I started work at a fitness studio and fell in love with the industry. I loved the idea of being able to help people become the best versions of themselves at the gym, but I wanted to go further and help people with the arguably more difficult aspect of changing a lifestyle, which is diet.

1. Tell us a bit about your University course and what you are currently learning about. I’m currently studying a Bachelor of Human Nutrition at the University of Canberra. As well as chemistry and food science, my course also looks at culture and societal reasonings behind food. This unit is the most interesting to me as we study the factors which influence people’s food choices, which go far beyond what is perceived as healthy. 2. What do you enjoy most about studying Nutrition and why do you think it is important? I love learning about food and the role that food plays in culture. I believe that people’s habits and relationship with food is very interesting yet enigmatic. Food is a lot more than just calories

4. What career path do you hope to take following your studies (type of job, preferred location?) I will graduate as a nutritionist and be able to give broad advice about health and diet. I want to help vulnerable people in society through food and diet, and in particular young teenagers and women who are suffering from eating disorders. I aim to help them begin to enjoy food and the role it plays in society. Later on I hope to complete a Master’s degree to become a dietitian, and work with people who want to build a healthy relationship with food. 5. Are there aspects of Nutrition studies which you are able to implement into your own life? Absolutely! As I am learning more about food, I am able to be more mindful of what I am eating, why I am eating it and what is actually happening to my body when I do eat. I also love being able to challenge people’s ideas on food. I love being able to back up my opinions with the science I’m learning.

cont from P.22

product or service earned 7.8 times more than those that didn’t, even small adjustments render results. These changes can only be effective when companies establish their presence on ground. Maintaining presence through online communication and sub-regular visits are not substitutes for an in-country presence. Building a team and business

support network in country will assist in developing key relationships and local knowledge to assist successful business operations in Asia. Australian businesses hold the unique opportunity to create strong economic relationships with Asia and generate revenue through Asia focused planning and by implementing local frameworks.

By including Asia into their strategic planning, businesses can firmly establish themselves and readily compete in both Asian and international markets. Read the full report here:

ISSUE 212 • 23

Important Changes to Travel Advice Important Message from the Australian Consulate-General Hong Kong: Please re-subscribe to receive travel advice updates. • We won’t be able to transition you to the new service. We know it’s a hassle but to continue to get travel advice updates you’ll need to subscribe using our new service. • You’ll now only need an email address to receive the latest trave advice updates. • Subscribe to get an email with a link to the latest travel advice whenever it’s updated. • You can choose to subscribe to one or more destinations and receive updates as they happen or through one email at the end of the day. • Preferences can be changed at any time. • You’ll be able to opt in to receive SMS ‘critical alerts’ for crises overseas

he Department of Foreign Affairs and Trade is committed to helping Australians in difficulty overseas, including those impacted by a crisis. The new Smartraveller website, launched in November, will include a better system for getting travel advice updates and a new approach to registration. If you have previously subscribed to Smartraveller updates about Hong Kong, or any other location, this will not carry over. You will have already received email advice about these changes. If you have not previously subscribed, you may consider doing so in order to receive updates about the Smartraveller advice for Hong Kong as they happen. What you need to do: To subscribe or to re-subscribe, go to Smartraveller.gov.au and find the destinations you wish to subscribe to. You can easily manage your preferences, choosing to receive updates as they are published or by daily email. You can also choose to receive critical updates by SMS. Good news is, you’ll now only need to provide your name and email address (and, if you choose, mobile number) to subscribe. What you need to know: Subscribing for updates Subscribing gives you updated travel advice straight to your inbox. We strongly encourage you to subscribe so that you’re well-informed for your trip or overseas stay. • We have enhanced our subscription service. 24 • December 2019

• This service complements the standard travel advice updates sent via email • it’s a better channel for urgent information. Registration in a crisis We no longer ask you to register your overseas travel with us before you go ‘just in case’ something happens. Instead, we will activate a crisis page if there is a situation overseas that could affect Australians. At that point in time, if you're affected and need our help you can contact us. • Smartraveller’s crisis registration system will change from November 2019. • Our level of service overseas is not changing. You will still be able to register, if you or someone you know is affected by a crisis overseas and needs help. You can register using a simple online form or +61 2 6261 3305 (from overseas), 1300 555 135 (within Australia), or +61 421 269 080 for SMS.

Mind, Body, Business

At the Heart of your Health: Essential Knowledge By Dr Michael Chan (Pak Hei), Specialist in Cardiology at Gleneagles Hospital

ardiovascular disease (CAD) is one of the top three causes of morbidity and mortality in developed countries but can be mitigated through primary and secondary prevention. We all know that our heart is the most vital organ to keep us going, but we may not all know how we need to keep it pumping. Before we begin, here is how cardiovascular disease is represented by type:

Coronary Artery Disease: The narrowing or blockage of arteries due to build-up of cholesterol and fatty deposits (called plaques) on the inner walls of the arteries. The most common among different heart diseases. Cerebrovascular Accidents: Such as stokes, when the blood flow and oxygen to the brain is impaired or blocked. Peripheral Artery Diseases: The narrowing of the peripheral arteries (those arteries away from the heart) serving the legs, stomach, intestine and arms. Heart Failure: When the heart cannot pump enough blood to meet the body's needs. Treatment of CAD firstly includes the identification and modification of risk factors. Universally, habits like cigarette smoking, sedentary lifestyle, lack of exercise and unmanaged stress can contribute to the occurrence of CAD. These habits are embedded in people’s day-to-day lives and their damaging effects are not often realised. Very often heart problems present in people already suffering conditions such as high blood pressure (hypertension), high lipid levels and diabetes however, when detected and managed properly the likelihood of suffering heart issues can be prevented. Undoubtedly ageing is one of the most crucial risk factors for CAD. However, changing lifestyles and dietary patterns can all contribute to the premature occurrence of CAD. In recent years, this has become more apparent in younger populations, experiencing CAD in their 40s. Regardless of existing conditions and risk levels, healthy changes and habits are vital to managing

CAD and prevention from it. Even people who are deemed healthy should ensure the following lifestyles choices are implemented: 1. Regular exercise, such as jogging, cycling and swimming, of moderate intensity - usually aimed at heart rate of 70% of maximum heart rate [(220 minus age) x 70%] helps to lower the blood pressure and blood cholesterol levels. 2. This is also achievable by reducing the amount of saturated fat and trans-fat consumption in diets. 3. Instead consumption of soluble fibres such as oatmeal and granola helps to reduce bad cholesterol. Fortunately medicine has now advanced to target and mitigate problem areas in blood flow more accurately. More specifically for those with high blood pressure and other CADs, a low salt diet and regular aerobic exercises are recommended and most effective. However, medication is often prescribed for these patients in order to help them maintain a blood pressure level of less than 130/80 mmHg. The use of anti-platelet (such as antiblood clotting medication) helps to lower the future risk of heart attacks by around 30%. Aspirin is the most commonly prescribed medication, particularly to those suffering from stroke. It’s important to note that for those with severe blockage of coronary arteries, medications cannot tackle the problem alone. Very often for patients with narrowing arteries, surgical intervention is usually required to further improve blood flow in the coronary arteries and to relieve chest pain and discomfort. Unfortunately, as a cardiologist most patients referred to me already suffer from CAD and require angioplasties (surgery to restore blood flow in the artery). I still wish to see them healthy and to stay clear from this potentially lethal condition. Therefore, prevention rather than treatment of CAD should be emphasised. I implore you all to exercise and eat healthy! Series sponsors:

We’ve learned about Gut Health and the impact of digestion on our brain health. We’ve learned about the importance of movement and a holistic approach to health and exercise. We learned some very important strategies for addressing mental illness in the workplace and we jumped off (literally) with tips from a champion elite athlete on how to set – and meet – goals and, critically, the importance of scheduling downtime. We have had a very strong response to our “Mind, Body, Business” series sponsored by King & Wood Malleson and Gleneagles Private Hospital. The series concludes with a final session in the new year on heart health by Dr Chan (postponed from November) so do look out for this last event in this popular series. ISSUE 212 • 25

Public Affairs: Growing Apetite for Hong Kong

Meeting with Head of HKETO

enior executive members, Platinum Patrons and Board Directors had a valuable opportunity to have a constructive conversation with Head of Hong Kong Economic & Trade Office (HKETO) in Australia and New Zealand, Raymond Fan, on the current Australian business appetite for engagement with Hong Kong.

Support for Tourism and Hospitality

ustCham recognises the challenges our tourism and hospitality members are facing due to the recent economic and social unrest. To support our members and their businesses, we called a meeting with industry members and Executive Director of the Hong Kong Tourism Board (HKTB), Dane Cheng and Deputy Executive Director, Becky Ip. The opportunity to voice challenges and collaborate ideas for resolution led to the initiation of an additional meeting with HKTB, extending to all international chambers of commerce in Hong Kong. Responding to the calls and questions from the international business community, the Hong Kong Tourism Board is rolling out a citywide campaign to encourage spending and to entice visitors to Hong Kong. The campaign will provide a single common platform for airlines, hotels, attractions, shops, restaurants, transport and tour operators, and other businesses to promote offers to a worldwide audience. The offers will

First meeting with HKTB and AustCham tourism and hospitality members 26 â&#x20AC;˘ December 2019

be advertised extensively through an array of digital channels, including a dedicated campaign website, key search engines, and leading digital consumer portals in Hong Kong and target markets overseas. AustCham members are invited to participate in this campaign by providing compelling offers for both visitors and Hong Kong residents. For more information to promote your products or special offers please contact the HKTB, Tony So at qts.offers@dt-asia.com. We extend our thanks to Ovolo Hotels for supporting this initiative.

Second meeting with HKTB and international chambers of commerce in Hong Kong

Committees in Action

Greater Bay Area Committee

he GBA committee hosted a roundtable session with Rosanna Tang, Colliers International Head of Research, Hong Kong and Southern China. Rosanna shared key findings on the recent Collier’s report, Greater Bay Area: A 2030 Outlook, highlighting opportunities in the GBA from a real estate supply and demand perspective. Further discussions were made around how international operational standards will be adopted throughout the growing workforce and other related developments over the next decade.

Construction, Property and Infrastructure Committee

rincipal Government Engineer (Special Projects) at the HKSAR Government Development Bureau, John Kwong, met with the CPI committee to inform and discuss the Government’s ongoing initiatives under Construction 2.0, the recent establishment of the Project Strategy & Governance Office

(PSGO) and mechanisms on how the business community can support the Development Bureau and PSGO’s agenda. Key issues currently concerning the sector were also brought to surface: the ageing workforce in construction, safety and productivity and attracting younger talent to the industry.

ISSUE 212 • 27

News

New Look for AustCham Business Centre

e have a new look at the AustCham Business Centre. In the heart of Central the Business Centre is regularly hired for events, meetings, seminars and training sessions, at daily or hourly rates (with exclusive discounts for members). Housing up to 15 seats in boardroom style or 20 seats in theatre style, the room can be hired short-term or long-term at all-inclusive rates.

To book your next meeting, scan here:

New Members Hong Kong Law Consultants James Parker

EVENTS UPDATE

Juliana Lim

SPOT Children’s Therapy Centre Breanna Crockett

DECEMBER AT A GLANCE…

CK Infrastructure Jessie Li

WIT APAC Consulting Ltd Heather Li

7:45am – 9:30am

Platinum Patron ANZ

CLP Derek Parkin Telstra Fiona Suen Melanie Egan Corporate Patron Austrade Gareth Simpson Gleneagles Kenneth Tsang St James’s Place Emily Chung

Corporate Member Primasia Teresa Tam Teneo Lauren Chung Individual Member Deloitte Laura Blainey

Young Executive Baker McKenzie Lydia Turman Carbon Kelly Chin

Wednesday, 11 December Reflections from Michaela Browning, Australian Consul-General to Hong Kong & Macau The China Club, The Old Bank of China Building Bank Street, Central, Hong Kong

JANUARY 2020 AT A GLANCE…

Golden Label Printing Company Maggie Lee

Monday, 13 January

Macquarie Group Kerrie Durham

Launch of the ‘Towards a Sustainable

Marriott International Veronica Nguyen PIE Strategy Mariah Stewart

12:00pm-2:00pm Future’ Series Energy: Utility of the Future. (Title TBC) The Hong Kong Club, 1 Jackson Road, Central, Hong Kong

FEBRUARY 2020 AT A GLANCE…

Simmons & Simmons Michelle Ta

Friday, 7 February

South China Morning Post Crystal Kwan

AustCham Australia Day Lunch 2020

WNDR. Recruitment Yan Lee

Central, Hong Kong

Jerry Duong

12:00pm – 2:30pm Island Shangri-la, Supreme Ct Road,

Scan here to secure your ticket:

ISSUE 212 • 29

The Season for Giving

Christmas Mix at Six

nder the iconic wooden ceiling fans and towering stone archways of the Murray Hotel, we came together with members and guests for a spectacular night, celebrating the camaraderie of the AustCham community throughout the challenging year that was. In true festive spirit, members and guests of our annual Christmas Mix gave cash donations and gifts for the children at The Hub Hong Kong, one of AustCham Hong Kongâ&#x20AC;&#x2122;s longstanding CSR partners. Living in Sham Shui Po and surrounding areas, most of these children come from families living below the poverty line - the majority of whom have never received a Christmas present. In its sixth year, gifts placed beneath the Giving Tree will brighten the lives of the hundreds of disadvantaged children supported at The Hub. Cash donations to support victims of the ongoing Australian bushfires were also collected and will go to the Australian Red Cross. Since August this year the catastrophic bushfires have hit hard on rural and remote communities, including a single day where 118 fires occured. We thank our event sponsors, Deakin University, and lucky draw prize sponsors Qantas, Ovolo Hotels, The Murray, Ocean Park and the Hong Kong Golf and Tennis Academy. Event sponsor:

30 â&#x20AC;˘ December 2019

The Season for Giving

Immediate past AustCham board chairman Professor Richard Petty(Left) receives his Honorary Life Membership from board director Bina Gupta. Richard served as chair from 2013-2017 and oversaw the introduction of new articles of association amongst other significant achievements. Congratulations! ISSUE 212 â&#x20AC;˘ 31

The Season for Giving

32 â&#x20AC;˘ December 2019

Building Brighter Futures: From Drama to Coding By Josephine Leung, Executive Director of The Hub Hong Kong

019 has been a challenging year and as we approach the year end, we are pleased to reflect on our achievements for 2019. The highlights include:

• To-date we have over 1,000 active members registered this year, who carried out over 400 activities to underprivileged children and their families. • We raised over HK$3 million at The Hub Annual Charity Gala held on 18 October at the Grand Hyatt Hotel thanks to the generosity of our guests and donors. All net proceeds will go to fund the operations of The Hub Children and Youth Centre. • We started a series of STEM programs spanning a range of tools, from Lego, coding scratch, microbit to sphero - with the aim to encourage creative young minds. • The first Hub Charity Concert, Heartstrings for Kids, was held in June in collaboration with the SAR Philharmonic Orchestra at Hong Kong City Hall. The concert provided a unique opportunity for both our young music ambassadors as well as our Hub kids to showcase their musical talents. • Over 3,000 portions of fresh fruits have been distributed free to encourage healthy eating amongst kids. A free health check was also conducted for their families. • New sports programs like rope-skipping, badminton and floor curling have been introduced and well-received.

• A new English Drama program has started in collaboration with KGV International School. Classes take place at KGV's drama studio and supported by their teachers, and students participating as mentors to the Hub kids. • An art competition was held in the summer together with Rotary Club of Kowloon North, with the Rotary theme "Connect the World". The winning drawings are being exhibited in the Centre as well as used to create the first Hub desktop calendar.

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Mates Rates: Special Offers for Members AustCham Members enjoy year-round benefits from our member companies. This is an excellent opportunity to showcase your company's products & services. By presenting our membership e-card or quoting your member ID at the time of booking, AustCham members can enjoy offers on dining, travel, retail and more. Access your E-card by logging into the Member Portal, download the e-card and save it on your phone.

Card

Membership e

Latest Mates Rates

Separate terms & conditions apply to each offer and are determined by offering party.

15% off on all a la carte dining

20% discount on Food & Beverage at Hyatt Centric Hong Kong

15% discount at Island Shangri-La,Hong Kong

15% off at Cucina, Cafe Marco, Three on Canton and add@Prince

FREE One-year Subscription to Expat Living magazine!* (usual price $288)

Preferential Exchange Rates Enjoy $0* OFX fees on ALL transfers

20% discount on Ovolo's best available rates! HONG KONG Mojo Nomad Central Mojo Nomad Aberdeen Harbour Ovolo Central Ovolo Southside

34 â&#x20AC;˘ December 2019

AUSTRALIA Ovolo 1888 Darling Harbour Ovolo Wolloomooloo Ovolo Laneways Ovolo The Valley Ovolo Inchcolm

Enjoy 15% off Economy Gateway Fares for flights between Hong Kong and Sydney, Melbourne or Brisbane.

Member Profile

ackson Meyer is the Group CEO and Director of the new age freight forwarding company, Verus Global, and was recently crowned 2019 Australian Young Entrepreneur of the Year: Startup, 2019 Melbourne Young Entrepreneur of the Year: Professional Services and the 2019 Australian Shipping and Maritime Awards: Young Achievement Award.

As a young entrepreneur, what drives you? At the age of 15 I began my love of logistics at my parents local Melbourne freight company unpacking containers that arrived from China. Learning from the ground up has been a solid foundation as I’ve navigated my way around many of the divisions of international logistics. From operations to warehousing to business development, I’ve been passionate in all sectors as many are interwoven. Moving up to the C-suite was a natural progression when I identified a gap in the market. When the founding partners of my parents’ company sold and exited the business, the incoming international leadership had a strong change of strategic direction. I quickly identified a gap in the Australian logistics space, where my ideal shipping model would allow for streamline shipping with minimal touchpoints – this would mean the customers’ experience is always as easy as it is successful. My passion comes from my Board and my team. We are continually pushing one another to deliver an authentic experience for our clients. Authenticity is important to us, that’s why we named our business Verus (derived from the meaning ‘true’ in Latin). The Verus family offer transparency throughout each part of our customers’ journey and strive to build honest and open connections with our clients. From only four offices at the beginning of 2019 to now 15 globally, how has Verus Global expanded so fast? Strategically I identified a strong management team that could offer a point of strength in individual portfolios. I have a serial entrepreneur (Dr Andrew Walker), 20 year China based entrepreneur veteran (Bob Boyce), one of Australia and China’s most respected trade lane experts (Jasmine Wang) and highly respected logistics master based in Shanghai (Shaw Xu). As a management team we agreed that differentially was the key to our customers seeing Verus as a solid performer in the logistics market. So, with this support the pace and scale may seem rapid however the most important focus for us has always been our client offering.

Jackson Meyer, Verus Global Now a regular 23-year-old might only just be easing into the corporate lifestyle, has it been too much too soon for you? Let me tell you, being surrounded by entrepreneurs is contagious! To me working for my clients is energy boosting. I understood from early in my career that I needed to build the trusted relationships with clients, carriers and my Verus family alike. It’s important that I invest a great deal of time and passion travelling to my international sites to ensure the Verus culture is alive and prosperous across the group. Whilst the travel and stress can take its toll, I am focused that my health and longevity is key. I am 23 and it’s important to me to live the best life I can which includes time out with my friends and family. Balance is the answer. Flash forward five years, what’s ahead for Verus Global? We see our business being a service provider and employer of choice that is deploying market leading IT for transparency and true visibility of clients’ transactions. Bringing greater efficiencies to the market is important to us and our vision to be an industry innovator. This in conjunction with our own cargo handling facilities will bring us to our target of A$150m in five years. And what’s next for you? Establishing Verus Global was certainly number one on my bucket list but this is an ongoing investment of my time and passion. I’ve had no time to even contemplate other ventures or even adventures.

Expansion of the business to the UK was a crucial link in the network we could offer our customers. With offices now in London, Leeds, Manchester and Glasgow we have a strong point of difference in the Australia/China market.

What I’m loving about this journey to date has been the support and pleasant surprises from so many along the way. It’s been incredibly rewarding to see the support of strangers supporting a young team in growing their dream.

We plan to be a global business that has more stations opening in 2020 and beyond.

So, what’s next for me? Anything is possible but I can tell you, there will be many more Hong Kong visits. ISSUE 212 • 35

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 (AIEF) was established in 2008 in response to community demand from Indigenous families who choose to enrol their children in boarding schools. Bringing together the government and private sector, AIEF provides scholarship funding for Indigenous students to complete Year 12 or tertiary studies, with career support to help them make a successful transition to their chosen fields. Backed by some of Australia’s most influential business and community leaders, AIEF has grown from one scholarship student in 2008 to now having around 450 students on scholarships annually, with a network of over 600 alumni and growing by over 70 graduates each year, from over 400 communities in every state and territory of Australia.

www.aief.com.au

The Fred Hollows Foundation is a leading Australian charity inspired by the work of the late Professor Fred Hollows. Fred was an eye doctor, renowned surgeon and highly respected Australian dedicated to ending avoidable blindness in developing countries. Our vision is a world in which no one is needlessly bling. 4 out of 5 people that are blind don’t need to be. We work in 25 countries, and have restored sight to more than 2.5 million people. The Foundation’s Hong Kong office aims to reach the increasing number of needlessly blind in the Asia region, especially in mainland China, where 20% of the world’s blind live.

www.hollows.org/hk/home

The Hub is a children's support centre which provides educational support, extracurricular classes, family counselling, social health and wellbeing services to those who need it most without discrimination. 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 in the territory. They believe that youths are the key for Hong Kong to continue to be a leading, growing community, but saw that not all children had the same opportunity. The Hub was founded as a commitment to help children in disadvantaged circumstances and to give the opportunity to find a better environment to develop into contributing members of the community.