austcham news Issue 201 by The Australian Chamber of Commerce in Hong Kong

香港及澳門澳洲商會

The Australian Chamber of Commerce Hong Kong and Macau

Logotype : English - Cronos Chinese - Hei AustCham Red: 90M 100Y 25K (PMS 1805C) D Gary: 90K (PMS 432C) L Gary: 70K (PMS 430C)

austcham news • Issue 201 | AUG 2018 14 Getting the Message Across: Update on the CGT Campaign 16 The Rise of the Cyber Threat: Creating a Skilled Workforce 20 CEO Forum Series: Pursuing Diversity Through Adversity

Building the Workforce of the Future: Why Diversity Works Where Business, People and Ideas Connect

www.austcham.com.hk

AUSTRALIAN CHAMBER OF COMMERCE HONG KONG & MACAU Working with our members and partners for 30 years through advocacy, insight and engagement within the Hong Kong and Australian business community

TELL YOUR FRIENDS ABOUT THE BENEFITS OF MEMBERSHIP AND WIN A TRIP TO AUSTRALIA! Refer your friends to AustCham now for your chance to win two Qantas Return Premium Economy flights to Australia.

As well, the first 10 to refer a new Corporate Member will receive a $200 dining voucher from Dining Concepts. * Members will receive tickets to the lucky draw for each new joined referral.

Referee please contact: Angus Perry Business Development Manager T: +852 2115 2052 E: angus.perry@austcham.com.hk

Chairman's Column

elcome back to dynamic Hong Kong I hope everyone enjoyed the summer break and had the opportunity to spend time with their families. The chamber is ready to hit the ground running and you can see a number of events and new initiatives underway. I am pleased to announce that the AustCham 30th anniversary celebrations were concluded successfully in August. Looking back at the anniversary year, I was delighted to see the remarkable achievements the chamber has accomplished. You will recall Hong Kong Chief Executive Carrie Lam speaking at our anniversary cocktail event last June and Leader of the Opposition the Hon Bill Shorten and Carrie Lam addressing at our 30th Anniversary Gala Dinner in October. It reflects how the strength of Hong Kong and Australia’s bilateral relationship has flourished and continues to thrive. For three decades, the chamber has been here to connect you – our members – with various business opportunities, engage with your business and represent your interests. As we look ahead, the chamber will continue to play a key role in helping to shape engagement between Australia, China and Hong Kong. The chamber values and encourages any feedback that you have, to ensure that your membership with AustCham is valuable. You will see the AustCham Membership Survey emailed to you, which is your opportunity to shape how the Chamber can provide support and add greater value to your business. I encourage you to take part in the survey either on email, using the QR code below, or by visiting the chamber’s website: http://www.austcham.com.hk/ Ahead of Chief Executive Carrie Lam’s Policy Address this year, the chamber has put forward a submission to the Government presenting the views on your behalf that make Hong Kong a livable and attractive city to do business and live. Look out for our policy address submission to the HKSAR Government on our website.

austcham news issue 201

Cover Story 6 Building the Workforce of the Future: Why Diversity Works

Feature A Flexible Workplace: Threats and Opportunities

Co-working Pioneer Thrives as Sector Heats up

Greater Bay Area Focus China Visit Takes Relationship From Strength To Strength

Making an Impact Getting the Message Across: Update on the CGT Campaign

Andrew Macintosh chairman@austcham.com.hk

Membership Survey QR code:

CEO Forum Series: 20 Pursuing Diversity Through Adversity Community Engaged

Corporate News

Spotlight 26 Corporate Profile 27

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

Australia Focus 16 The Rise of the Cyber Threat: Creating a Skilled Workforce Feature Interview

austcham news Online version

Chamber Chatter

What’s Trending

ell, we’re back into the thick of it with sell-out events (our Women in Business Network Summer Drinks kindly hosted by Consul General Michaela Browning and featuring our Australian food supremos Shane Osborn and Michelle Garnaut, selling out in only four days – a record), an inspirational kick-off to our MGSM CEO Forum series featuring the irrepressible Dylan Alcott, our third Tech series about to kick off, and the launch of the highly sought-after Mentor Programme. What was that you said about a Summer holiday? Beyond our popular events, we have also been busy on a number of fronts which we hope will contribute to a lasting legacy for Hong Kong. We are part of a broader influential push by the business community to see that one of the territory’s greatest iconic assets – the spectacular Hong Kong harbour – is maximised for the benefit of all. Together with our Construction, Property and Infrastructure committee, we argue that Hong Kong should recognise the critical importance of the Central Harbourfront redevelopment and not adopt a “business as usual” approach in the current tender process and design brief. Standing with our friends at other international chambers, and Hong Kong business and professional groups, we argue that the Central Harbourfront is a jewel in the crown of Hong Kong: that the redevelopment of the vacant land from IFC down to the star ferry could be transformational. If an innovative approach were to be applied to this iconic parcel of land, it could be the catalyst to unlock the entire waterfront down to Sheung Wan, while at the same time, balancing the need for commercial and retail space. With a more mixed-use brief, there is possibility for community, recreational, and other potential uses. The Sydney Opera House and the stunning Sydney Harbour continue to be cited as an example of world’s best practice in terms of harbourside redevelopment. We argue that a similar enduring legacy, through the application of a design-led approach (which takes into account the need for mixed use) would reap far greater long-term benefits for Hong Kong than a “dollars per square foot” approach. You will hear more about this important campaign over coming months. I encourage you to please respond to our member survey which will go out next week. This is an important way for us to ensure that AustCham continues to evolve with you and with the environment in which we live and work. We look forward to your feedback. Jacinta Reddan, Chief Executive, AustCham

August 2018

EVENTS UPDATE AUGUST AT A GLANCE… Tue, 28 August, 6:00pm – 8:30pm AustCham Emerging Technology Program Session I: Emerging Technology 101 The Experience Centre, PwC 19/F, East Town Building, 41 Lockhart Road, Wanchai, Hong Kong Wed, 29 August, 6:30pm – 8:30pm AustCham Women in Business Network Summer Drinks Australian Residence, No. 39 Island Road, Deep Water Bay, Hong Kong

SEPTEMBER AT A GLANCE… Fri, 7 September, 12:30pm – 2:00pm Corporate Responsibility for Protecting Human Rights Townhall, Thomson Reuters, 18/F ICBC Tower, 3 Garden Road, Central, Hong Kong Tue, 18 September, 12:15pm – 2:00pm Purpose, Incorporated: Turning Cause into Your Competitive Advantage - in conversation with John Wood Harcourt Suite, 1/F, The Hong Kong Club, 1 Jackson Road, Central, Hong Kong Thu, 20 September, 6:00pm – 9:00pm Mix at Six Wagyu, G/F, Centrium Building, 60 Wyndham Street, Central, Hong Kong

OCTOBER AT A GLANCE… Fri, 5 October, 2:45pm – 6:15pm Visit to T-Park No. 25 Nim Wan Road, Tsang Tsui, Tuen Mun, New Territories

NOVEMBER AT A GLANCE… Tue, 13 November, 11:50am – 2:00pm 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

A Letter from Canberra

nyone who owns a small business knows the story. Twelve-plus hour days, often seven days a week to make your dream a reality.

The continuous burden of your financial future resting in the hands of the strength of your great idea. Mortgaging your house to give it your all. Re-mortgaging it when it doesn’t go to plan. Welcome to the world of starting and running a small business. Small businesses - those that employ less than 20 people - make up 97 percent of all Australian businesses and account for 35 percent of all value generated in Australia. But when we talk about small businesses and start-ups in Australia, we tend to focus only on the success stories. Not the highs and the lows. Not the wins and the losses. Not the struggle to reach that success. And for so many it is a significant struggle. In 2017, just over 50 percent of small businesses or start-ups reported a positive cash flow. More than 60 percent ceased operating within the first three years. Before entering politics, I ran my own micro business. I know the freedoms, opportunities and benefits of being your own boss. And I know the stress, strain, fear and loneliness. So I’m glad the mental health and wellbeing of small business is finally getting some attention. Last year, the Council of Small Business Australia and the Hunter Institute of Mental Health launched a survey exploring the wellbeing challenges faced by small business owners. The icare Foundation also released a study that found that people working in small businesses may be more likely to be affected by poor mental health than the general population, due to: • A blurring of boundaries between home and work • Financial stress from unpredictable income • Risk of business failure, and • Working in isolation. And a few years ago, as co-chair of the Parliamentary Friends of Small Business, I convened a forum of mental health experts to discuss the pressures experienced by small business owners with my colleagues.

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

Where Business, People and Ideas Connect The Australian Chamber of commerce in Hong Kong and Macau 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 and Macau, its members or officers. The Australian Chamber of Commerce in Hong Kong and Macau takes no responsibility for the contents of any article or advertisement, makes no representation as to its accuracy or completeness, and expressly disclaims and liability for any loss however arising from or in reliance upon the whole or any part of this publication.

Small businesses are the engine room of the Australian economy. Their wellbeing is vital to our national prosperity. Gai Brodtmann MP, Federal Member for Canberra and Shadow Assistant Minister for Cyber Security and Defence

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Cover Story

Three time Paralympic gold medallist and five time Wheelchair Tennis Grand Slam champion, Dylan Alcott OAM was born with a tumour wrapped around his spine that left him to be a paraplegic as an infant. Wanting to shatter society’s misconceptions about people with a disability, Dylan founded Get Skilled Access in 2017. Dylan and his team drive generational social change to show that people with a disability can be positive contributing members of society, if not better than their able-bodied counterparts.

Building the Workforce of the Future: Why Diversity Works - Dylan Alcott OAM, Co-Founder of Get Skilled Access

wenty per cent of the world’s population lives with a physical or non-physical disability. Often because of the barriers and limitations that society places on what people with a disability are able to do, they can feel marginalised. Having a disability is a natural, normal part of society and it can happen to anyone, at any stage, even to you reading this. Disability does not discriminate. I founded Get Skilled Access because I was tired of ablebodied people telling me and people with disability how they should live, work and shop. If you are going to talk about disability at the table, you need to have someone with disability with a seat at that table. The Get Skilled Access mantra is, “real life disability experience delivered by real-life people with disability”. We are the

intersection between business and people with disability. Working with corporates, governments and schools across Australia and the world, we are decoding the myths about disability to provide tangible and emotional experiences to drive inclusion, productivity, and profitability. There are two reasons why organisations should care about disability. Firstly it’s the right thing to do; the positive social change needs to happen now. Secondly and more importantly, it’s great for business. If products are made more accessible, people with disabilities are going to buy them. People with disability are going to get out there and spend their money. As a whole society, it’s a significant investment to cater for people with disabilities because 20% of the population have a disability and want to work, and want to be contributing members of society. cont P.7

August 2018

Cover Story We see a tangible change from the top down. Disability is now a priority for organisationsâ&#x20AC;&#x2122; diversity and inclusion, but we have a long way to go. â&#x20AC;&#x201C; Dylan Alcott OAM cont from P.6

Of the people of working age in Hong Kong with disability, less than 40% are working and are economically active. Organisations should be encouraged to employ people with disability, with studies have showing that these employees are 90% more likely to be equal or more productive than people who are able-bodied in the workplace. In addition are the retention rate of these employees shows that 30% more likely to stay than an able-bodied employees. When given a chance, people with disability perform. We as employers need to provide people with disability an opportunity. There is an appetite for corporate and government investment in disability and the unique approach of Get Skilled Access identifies inclusion gaps through culture reviews, working closely with organisations to deliver a tailored package of objectives and deliverables. We see a tangible change from the top down. Disability is now a priority for organisationsâ&#x20AC;&#x2122; diversity and inclusion, but we have a long way to go.

Reference: - h t t p s : / / w w w . s c m p . c o m / c o m m e n t / i n s i g h t - o p i n i o n / article/2069073/closed-minds-biggest-barrier-peopledisabilities-hong-kong - The business case for diversity, Deloitte and Australian Human Rights Commission, February 2017- Australian Bureau of Statistics, 2015 Interested in learning how your company can do more? Contact info@getskilledaccess.com.au

See coverage from Dylan's presentation at our CEO Forum event P.20

Photo credit: The University of Melbourne

Feature

A Flexible Workplace: Threats and Opportunities - Jonathan Wright, Director – Flexible Workplace Services, Asia at Colliers International

he two largest threats to flexible workspace operators are also the two greatest opportunities. Landlords developing their own concepts and how corporate occupiers use space in the sector carry, in equal measure, positives and negatives that, if harnessed, could create seismic growth.

Landlords Landlords are increasingly looking at how to leverage the benefits of including flexible workspace within their portfolio. Some landlords already host their own concepts, such as blueprint by Swire Properties in Hong Kong. This is only the tip of the iceberg, with many more studying the sector closely. Landlords need to have a clear vision of what they want to achieve by delivering their own concepts, as there is a distinct difference between offering an amenity to a building or portfolio, and a commercial flexible workspace operation. Swire Properties, for example, primarily uses its blueprint concept as an amenity for its occupiers in the wider Taikoo Place portfolio, rather than a standalone flexible workspace operation. “Providing space wasn’t our primary goal,” notes Henry Bott, co-founder of blueprint. “It’s really an amenity to our Taikoo Place community, providing our occupiers with access to best-in-class event space, training rooms, an auditorium and collaborative workspace. Of course it includes an element of coworking and we have a diverse blend of end-users – from multinational corporations seeking flexible solutions to entrepreneurs and start-ups looking to access August 2018

the Taikoo Place business community. blueprint has been an excellent value-add that elevates our portfolio.” The flexible workspace model is simple: an operator leases large chunks of office space, breaks that up into private offices and communal workspaces, blends in good design and community features, and then subleases it to end-users at a mark-up. In theory landlords could make more money if they directly leased small units to occupiers, but running a space is enormously labour intensive and landlords typically lack the economies of scale to make an operation work effectively. Additionally a landlord’s real estate is fixed and inflexible; landlords own buildings and operators lease space – this means that flexible workspace operators can usually offer a wider geographical spread and also means they can scale more quickly due to not being restricted by what they own. This gives rise to a number of benefits – economies of scale for resourcing the operation, a wider community, and the ability for end-users to access multiple sites and have consistency across a portfolio. “By investing heavily in technology, we apply data to add a deeper understanding of the intersections of people, cont P.9

Feature cont from P.8

space, and technology to our already innovative approach to product, design, delivery, and operations,” notes Christian Lee, Asia managing director of WeWork. “We believe that people’s relationship to each other and physical space is at the centre of the WeWork experience. By integrating such technology, this allows us to optimise efficiencies while ensuring our members have the best workplace to empower their business. Through data driven-decision making we are able to run our business efficiently and reduce the labour intensiveness of our operations.” We expect to see landlords and flexible workspace operators enter into deeper partnerships, and the lines between what an operator offers and what a landlord will deliver as part of the building or portfolio amenities blur. Landlords will be driven by occupier demand for more flexibility, together with holistic offerings; under a conventional lease, an operator cannot always offer wellness facilities, food and beverage, and event spaces, but it also makes little sense for the operator to provide flexible workspace in silos. Through better integration and deeper relationships we will hopefully see the current disconnect between landlords and flexible workspace operators overcome.

Corporate Real Estate Some multinational corporations can push against the values coworking originally set out to foster, taking flexibility of term while setting aside things like community, the foundation on which the sector was built. However, the large scale take-up, longer-term deals and strength of covenant that in turn delivers sustainability and a healthy cash flow mean that operators will change their models to accommodate this. In addition, an operator underpinned by a multinational corporation as end-user is a sounder proposition for a landlord than an operator geared around the start-up community. Coworking purists may balk at the corporate takeover of space once reserved for creative industries. However, it would be useful to consider what coworking actually is – the label has become almost obsolete as it is increasingly used for any space being leased out, and has been diluted to such an extent that it could be argued that it no longer exists. Multinational corporations that are turning to flexible workspace are typically looking for a sanitized incarnation, with WeWork and IWG the main beneficiaries of this demand. However, smaller local operators are also benefitting and traditional operators; Servcorp and The Executive Centre are

What makes space special is the people. This is why we value and prioritise community-building more than anything else... Elaine Tsung, CEO of Garage Society Don Taylor, Director, Office at Swire Properties, agrees: “Landlords will certainly begin to increase the level of facilities and amenities in their buildings to react to demand and this will inevitably be lifestyle driven with an emphasis on wellness. Gym operators will expand their offerings, food and beverage will be more health focused, and landlords will incorporate common areas and lounges, together with event spaces and some flexible workspace. What will be interesting is how the relationship evolves between operators and landlords to ensure these amenities and facilities do not exist in silos, but become part of a holistic offering that a landlord can asset manage efficiently to curate the user experience.” Flexible workspace operators should embrace the interest in the sector from major landlords. This may mean the models that have been pioneered over the last few years need to be rewired and evolve. Operators should see this as an opportunity to form exciting partnerships with landlords and developers. Those ready and willing to seize this opportunity, help shape it and evolve the levels of complexity in deal structures to deliver real value will find receptive landlords across most major markets that will enable them to tap in to significant growth.

changing their models to cater for larger scale take-up than their traditional end-user base, which historically has been private offices of sub 10 pax. cont P.10

Feature cont from P.9

The success of operators that are accommodating multinational corporations will depend on how operators educate these end-users. In our survey of Asia’s top 200 occupiers, 44% choose flexible workspace to benefit from flexibility of lease term, followed by 20% looking to reduce capex. Only 16% are looking for a creative environment and a mere 7% to access the innovation of the start-up community within their chosen operator’s space. This demonstrates that multinational corporations have little interest in collaboration. This, coupled with security and privacy being in their top three concerns, ensures that multinational corporations, as end-users, keep themselves in private offices – effectively ensuring that collaboration is a one way street and the other end users within the community do not get much back. While accessing the start-up community ranks as a low priority for multinational corporations considering the use of flexible workspace, it factors higher when they are actually using the space. However, there are a finite number of start-ups, and given the breakneck speed of expansion in the sector the concentration of creativity and innovation is being diluted, meaning that one of the attractions of flexible workspace is diminishing. The threat is that flexible workspace locations become repackaged office buildings with end-users existing in isolation, reducing their appeal and also alienating the start-ups that create the elusive buzz of a community and bring much-needed innovation.

community is the critical element to a successful flexible workspace business and tries to ensure multinational corporations using her space add value in this respect. “What makes space special is the people. This is why we value and prioritise community-building more than anything else. Aside from helping to create stickiness, the networking and collaboration that happen in our community are what facilitates innovation. We have corporate members, who often join as a way to tap into the forward-looking environment. Of course, we want them to make the most out of their experience, so we actively encourage these corporate members to engage with the start-ups and freelancers and play a part in the innovation process, which may spark new ideas for their business as well as the start-up. Inclusion is what it’s all about.” As demand from multinational corporations increases operators must also evolve their physical product, operators often speak of inspiring spaces, but often this only extends to the community floor and the space where private offices are located lacks inspiration completely. In addition, often spaces are filled with cheap non-ergonomic furniture which is of a lower standard to what a corporate can self-deliver. To capture this corporate demand operators must deliver a high standard of product rather than continue to deliver a product more suited to the start-up community.

The key for operators is to carefully integrate a mix into their communities. Elaine Tsung, CEO of Garage Society, feels

Source: ‘The Flexible Workplace Outlook Report 2018’. For full report and more information about the topic, please visit http://flexiblespace. colliers.com/

Year round Mates’ Rates: Member Benefit Program 2018

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

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.

Marco Polo Hotels - Hong Kong: 15% off at Cucina, Cafe Marco, Three on Canton and add@Prince

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

ard Membership eC August 2018

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 Ovolo Hotels: 20% off on the Best Available Rate

Feature

Co-working Thrives as Sector Heats up

n 1994, years before co-working spaces became a trend, The Executive Centre opened in Hong Kong and today is the third-largest serviced-office business in Asia. Opening their newest location in Central, Hong Kong, in July, CEO Paul Salnikow explained the emergence of co-working spaces. Paul Salnikow, CEO of The Executive Centre

Where you ahead of the curve, all those years ago? Definitely â&#x20AC;&#x201C; though demand in the market was very different back then. I first had the idea for the concept after seeking short-term office space in London. As the world economy really began to globalise and companies needed offices around the world, I founded The Executive Centre as a flexible option for companies as they came to new, unfamiliar markets. Thanks to technology, urbanisation and shifts in corporate culture, what quality and service means in detail, has changed since 1994. Surely there was nothing like the competition that is out there now? The market has seen tremendous growth and change in recent years, especially in Asia. Much like the hotel industry, flexible workspace has always been a mix of providers of different sizes, design styles and target markets. The emergence of co-working really energised the industry; this means more choice for the consumer, demanding more focus from the operator to define themselves against competitors. At the same time, competition breeds excellence. With global corporates needing flexible solutions and developers seeking aligned providers for their buildings, we are growing stronger than ever.

community spaces for collaborative working was one of the biggest changes in commercial real estate in the past five years. We certainly are currently in a boom cycle for offices, especially in Asia, but the industry evolutions are here to stay. The secret is out to the worldâ&#x20AC;&#x2122;s largest corporates, which now include flexible workspaces in their global property portfolio toolkit. The risk for new companies currently making headlines as they compete to lease larger and larger spaces is that demand for their space is speculative, especially as they enter new markets. The amount of space being taken is a great boost for the profile of the industry, but is a risk for these companies if they cannot fill their spaces with revenue-making members. As a result, I do expect the market will consolidate moderately in the next 12 to 18 months. Having been through multiple cycles since 1994, including the dotcom bubble and global financial crisis, we have refined our discipline and model to perform even in the event of a downturn. Source: Hong Kong Means Business, The Hong Kong Trade Development Council

The core of this industry is flexibility, which really comes down to physical spaces and contract terms. Flexible physical spaces provide multiple different uses from private to shared and individual to community focused. Flexible contract terms allow members to structure the lease length, size of space and investment costs in the way that best suits them. Is there room for everybody long-term? Co-working as a workplace style is here to stay. Increased focus on creating comfortable, functional and productive cont P.12

Feature Hotspots: Some Flexible Workplaces in HK ATLASPACE The Gateway, Harbour City, Tsim Sha Tsui E: Info@atlasworkplace.com W: www.atlasworkplace.com/index_ en.html 12

blueprint Taikoo Place, Quarry Bay E: blueprint@swireproperties.com W: http://blueprint.swireproperties.com Garage Society Central, Sheung Wan, Sai Ying Pun and Wanchai T: +852 3952 7200 W: www.thegaragesociety.com/ Metta HK California Tower, Central W: www.metta.co/#home Naked Hub Sheung Wan, Sai Ying Pun T: +852 3890 2628 W: www.nakedhub.com/en/ SERVCORP Central T: +852 2251 1688 W: www.servcorp.com.hk/en/virtual offices/prices-locations/hong-kong/ two-ifc/ The Hub WanChai E: info@thehub.com.hk T: 852 2153 8888 W: www.thehub.com.hk/ WeWork Causeway Bay E: tower535@wework.com Wanchai E: wanchai@wework.com Cityplaza Three (Tai Koo) E: cityplazathree@wework.com W: www.wework.com/

August 2018

AustCham Member Survey 2018

he AustCham Membership Survey for 2018 is now open and we eagerly await your contribution by Monday September 3.

We value your opinions and want to ensure that AustCham continues to evolve with you and your changing business environment. Please take 10 minutes to complete this survey which will provide us with valuable information on what you would like to see the Chamber provide for members. Each response will go into a lucky draw to win a bottle of Tim Adams Shiraz 2014 from the Clare Valley. This is your chamber. Please make your opinion count. The survey closes on Monday September 3 and can be accessed here: https://www.surveymonkey.com/r/AustChamMemberSurvey18

Greater Bay Area Focus

China Visit Takes Relationship From Strength To Strength Premier Daniel Andrews and the delegation met with C Y Leung to exchange views and discussion on Greater Bay Area’s development.

obs and trade are on the agenda as Victoria Premier Daniel Andrews travels to Hong Kong earlier in May, part of the Andrews Labor Government’s work to take Victoria’s relationship with China from strength to strength. The three day visit to China is the Premier’s fourth visit in four years, delivering on his promise to visit China ever year as Premier, and to strengthen Victoria’s relationship with China, increase trade and create jobs. In 2016 the Labor Government set ambitious targets for trade, education, and cultural relations with China, through the Partnerships for Prosperity, Victoria’s new China Strategy. This visit builds on these goals, with new deals to further increase trade exports and create local jobs, and cultural partnerships to further deepen our ties between Victoria and China.

The delegates in front of a tunnel boring machine in Nansha, Guangzhou.

The Premier saw first-hand the progress being made on Victoria’s Metro Tunnel and West Gate Tunnel Boring Machines being built in Nansha, and tour the world leading Mass Transit Railway (MTR) Corporation operations control centre in Hong Kong. He also met with key government officials and Chinese business leaders to discuss Victoria’s massive infrastructure program and potential opportunities for investment. A key focus of the visit was on leaders involved in the development of a regional economic powerhouse in Hong Kong’s Greater Bay Area, to exchange learnings and capitalise on opportunities for future trade and exchange deals.

Making an Impact

Chris Bowen Shadow Treasurer Federal Member for McMahon

Getting the Message Across: Update on the CGT Campaign

ustralian Shadow Treasurer Chris Bowen has taken up our cause regarding the proposed Capital Gains Tax on the sale of the family home by non-resident Australians following a recent meeting with AustCham CEO Jacinta Reddan and Deputy Chair Darren Bowdern at Parliament House in Canberra.

In a letter to Treasurer Scott Morrison, Shadow Treasurer Chris Bowen raised his concerns about the unintended consequences that the measure would have on non-resident Australians. In his letter, Bowen states, “We need to be encouraging stronger people-to-people links in our region,” and he is worried that the proposed measure “punishes some people who are not the intended target of the policy.”

I reiterate Federal Labor's support for the measure in-principle, but would urge you to consider the impact on the expatriate community and determine whether the measure can be sensibly amended take account of these circumstances. - Chris Bowen Trent Zimmerman MP, Federal Member of North Sydney, and Co-convenor Parliamentary Friends of Hong Kong also made personal representations to his Federal parliamentary ministerial colleagues following the chamber’s letter. August 2018

During a recent visit to Hong Kong as part of a Federal Parliamentary delegation on infrastructure (see p.15), members of AustCham’s Construction, Property and Infrastructure Committee (CPI) including Vice-Chair Paul Scroggie and Scott Smith, discussed the significant impact of the proposed CGT with Mr Zimmerman and his parliamentary colleagues. The delegation included representatives of both sides of politics who heard concerns from CPI members about the disincentive this proposed change would create for Australians who want to gain valuable global experience. The change would mean that non-resident Australians who are forced to sell their family home while offshore would be faced with a CGT bill from the date of purchase. The proposed changes (the bill is yet to be gazetted) would come into effect on July 1, 2019. AustCham will continue to engage with key stakeholders to raise awareness of the impact of this bill – which is aimed at addressing housing affordability – on non-resident Australians who would be severely impacted. It’s never too late to be heard so we urge you to write to your local member to ensure he or she understands the detrimental impact of this bill.

Making an Impact

eputy Prime Minister Michael McCormack spoke with the Australian diaspora at a gathering held at the Consul-General’s Residence in July. He commended those of us representing Australia internationally while also providing his support on the work that Australians are undertaking around the world and particularly Hong Kong.

he Federal Parliamentary House Standing Committee on Infrastructure, Transport and Cities met members of AustCham’s Construction, Property and Infrastructure Committee in July. They discussed the need to develop preparing Australia’s infrastructure for future generations including smart cities, potential opportunities within the Greater Bay Area, regulatory process improvements and methods to enhance productivity relating to Hong Kong’s ageing workforce.

Australia-Hong Kong Free Trade Agreement: an Overview of the Sixth Round Negotiation - Ken Gordon, Deputy Consul-General, Australian Consulate-General, Hong Kong

he sixth round of negotiations on the Australia-Hong Kong Free Trade Agreement was held in Sydney from 1719 July. The Australian delegation was led by the Department of Foreign Affairs and Trade and included representatives from the Department of Home Affairs, Attorney-General’s Department, and Treasury. The Hong Kong delegation was led by the Hong Kong Trade and Industry Department and included representatives from the Hong Kong Department of Justice. During this round, negotiators were able to substantially finalise the chapters of cross-border trade in services, and dispute settlement. Good progress was also made on the investment agreement. Aside from a small number of issues, discussions on chapter text are now substantially finalised. Negotiators also engaged in productive discussions on market access, based on revised offers sent by both sides prior to the round. Australian and Hong Kong officials will continue to work closely together to resolve outstanding issues in the agreement.

Hong Kong has "Great Stake" in Chengdu Many thanks to Hong Kong Consul-General, Michaela Browning, for bringing together Chengdu Consul-General, Christopher Lim, and Austrade Trade Commissioner, Tim White, for their fascinating insight earlier this month at a briefing on Chengdu with AustCham members. Chengdu is one of the fastest growing provinces in China, with a significant amount of outbound investment coming through Hong Kong. Also highlighted were the emerging opportunities for Australia in bio-tech, agri-tech and food produce.

Australia Focus

The Rise of the Cyber Threat: Creating a Skilled Workforce - Professor Andrew Woodward, Executive Dean of School of Science of Edith Cowan University (ECU) and ECU Security Research Institute member

he term cybersecurity, unheard of 10 years ago, is now a common term used daily in news bulletins and the like. It is certainly at the forefront of the minds of those in the C-suite and boardroom. The reality is that we live our lives and conduct most of our business using digital channels. While this increase has had a mostly positive impact on our lives and commerce, there is also the dark side that has become part of daily conversation. From cybercrime, to nation state spying and political interference in elections, the use of the internet for malicious purposes is also a significant and increasing problem. You only need to look at the impact of the WannaCry ransomware attack. The worldwide cryptoworm targeted computers running Microsoft Windows. Shipping company FedEx put a cost of $US 300 million as a result of its impact on its TNT Express subsidiary. The internet has given criminals an unprecedented ability to steal money from any and every business which conducts online transactions, which is effectively every single one. Letâ&#x20AC;&#x2122;s look at some sobering statistics. Cybercrime damage is predicted to hit $6 trillion annually by the year 2021, and cybersecurity spending to exceed $1 trillion over the period

from 2017-2021. Lastly, and most significantly, the number of vacancies for cybersecurity roles is expected to hit 3.5 million by 2021. At the same time, the law is catching up, and privacy in particular is driving the introduction of new legislation to protect our online information. As a result, small business through to multinational corporations must pay attention to cybersecurity, as failing to do so could destroy their business, or at the least their reputation. Regardless of whether a company has the resources to run their own cybersecurity team in-house, or whether they rely on a third party provider to look after their data, there is a requirement for a skilled cybersecurity workforce. This has created massive demand for those with cybersecurity skills to assist in securing the computers and networks of these companies. The problem? There simply arenâ&#x20AC;&#x2122;t enough people to go around, and those with the skills can name their price, and are frequently poached by those who are able to offer more. So, what is being done about this? There is a rush by governments to create frameworks to promote cybersecurity cont P.17

August 2018

Australia Focus cont from P.16

education and training to try to increase the skilled workforce, but those trying to offer courses face the same challenges – where do they get the staff with the knowledge and experience to deliver this training? Edith Cowan University is and has been addressing this challenge through its offering of comprehensive cybersecurity programs at undergraduate and postgraduate level for nearly 15 years. It is a long pipeline, and the output currently isn’t anywhere close to what it needs to be. Government, industry and the education sector need to work very closely together on every stage to address the increasing cybersecurity skills shortage. If we fail, we could well be headed for the digital equivalent of the Black Plague. However, with increasing attention and resources for training and education, this can be averted. Coming Up: Look out for a joint AustCham, Australian Consulate Forum on cybersecurity in October sponsored by Telstra. To preregister for this event, email: jessie.ho@austcham.com.hk

About the author: Professor Andrew Woodward is the Executive Dean of School of Science and ECU Security Research Institute member at Edith Cowan University. Andrew’s research has been focused on cybersecurity for over a decade, focusing initially on wireless network security, expanding to digital forensics and then to cybersecurity policy and risk management. Andrew has consulted to industry and government on a range of cybersecurity related projects.

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25/9/2017 11:41 AM

Feature Interview

A Conversation with Alex Oxford – welcoming a new AustCham Board Director we have back in Australia, such as continuing to play football through the Hong Kong Dragons AFL club. What do you think makes a good board member? A good board member differs depending on what board they sit on, but some characteristics remain constant. For example, a board member’s skill set, experience and professional qualifications for a non-profit may differ greatly from that of a Fortune 500, but the core personality or character traits remain similar.

The need to be passionate, in particular for non-profits, a desire for transparency and accountability, good communication skills, to be collaborative, have a high EQ and have the courage to make hard decisions are all constants, with a good board member also bringing to the table relevant experience or ‘context’; a specific skill set whether it be legal, accounting, communications, business development, human resources, cybersecurity, digital or various others.

he chambers’ youngest Board Director, Alex Oxford has been closely involved since he joined as a Young Executive member back in 2012. Now chair of AustCham’s Young Executive for almost 6 years, Alex has successfully built momentum for the committee, initiating the largest Chamberled Mentor Programme in Hong Kong. And now, he is bringing a fresh perspective to the AustCham board. What brought you to Hong Kong and what keeps you here? Particularly as a young Australian from country Victoria. In 2012, I was working in Melbourne for a foreign tax recovery firm and was lucky enough to be given the opportunity to move to Asia to look after business development for our team in Hong Kong… I then went to Google and found where and what Hong Kong was! Since landing, a day before a Category 10 typhoon nonetheless, I have been drawn into what Hong Kong offers as an international business hub; the opportunities it brings being at the forefront of global economic growth in the ‘Asian Century’ and the ability to travel Asia from a central point. I am also lucky enough that in my time since moving to Hong Kong, I now have a family here, and I ‘m also able to enjoy similar experiences which

‘Good’ board members in my view are punctual, diligent, prepared and have a good grasp of their responsibilities as a director which translates into working cohesively with other board directors under the guise of the chair. What would you say to people who say you are too inexperienced to add value to a board at this early stage of your career? I believe perspective is the answer. Due to an increasingly complex and volatile business environment, rapid change and friction being brought by technology and geopolitical tensions, the need for diverse boards continues to increase. Diversity is a word often associated with gender, however, whilst I’m not discounting gender diversity at all, quite the opposite, the need for diversity across all factors such as competencies, philosophies, skills, professional qualifications, and personalities is paramount. The term ‘cognitive diversity’ is fast becoming in vogue across boardrooms as studies suggest something we all assumed, boards with greater diversity of talent perform better. In this case, ‘different’ is better. In Hong Kong we also see an average age of board members cont P.19

August 2018

Feature Interview cont from P.18

to standing at around 60 years, I’m not being ageist, but the growing need to bring on younger directors whom have digital, or cyber experience continues to grow, due to these sectors only coming to the forefront over the last decade. The need for different skill sets, and perspectives to address these issues and drive better conversations, asking better questions and helping make better decisions are more important than ever before. Why is it that in busy Hong Kong, you have found the time to be active in AustCham? “Decisions are made by those who show up”, is a statement that always stuck with me since my early years in sales management in Australia. The Australian Chamber of Commerce is the premier Australia – Hong Kong – China business body that advocates on behalf of Australian’s in Hong Kong and further across the region, which I think matters. It’s easy to find time for something you are passionate about. As Australia, it seems, has become more insular; if you read any media reports coming out from the motherland, the Australia – China relationship has grown to be of far greater importance than ever before. In a recent PwC study “Match Fit: Shaping Asia capable leaders”, it stated that 90% of ASX 200 companies are not Asia ready, when assessed against 6 key Asia capabilities, and 82% of the top 30 private companies are not adequately equipped to do business in Asia. These statistics highlight the opportunity for young executives to drive change, be at the forefront of the next wave of economic growth for Australia and capitalise on our ability to move at a fast pace toward new technologies, ideas and connections – AustCham provides these opportunities for young executives and I am passionate about helping create such opportunities for other young executives in which the AYE Committee and Chamber look to achieve. What do you hope to contribute as board director? We believe this has been quite a busy year for you. 2018 has thus far been rather busy – my new role as Head of Sales, Asia at encompass corporation, an Australian regulatory technology leader, has been extremely busy as we grow our market base across the region with particular focus on Hong Kong and partnerships, along with completing my thesis on the impact of technology on sales methodology and getting married has certainly taken up a large part of the year. As a board director, I hope to contribute as any other board director would… to help drive the Chamber to remain a market leader in Hong Kong and across all Australian Chambers globally.

From a personal perspective, I hope to contribute my experience in business development to help drive membership growth, continue to be one of the voices at the board table advocating for young executives in Hong Kong and provide a new set of ideas and perspective to the Chamber’s Board. I am also lucky enough to be surrounded by a very strong group of great minds in fellow Board Directors in which I am excited to learn off over the coming years in my tenure on the Board. We know you are also passionate about voluntary work. What inspires you through your CSR work? I believe corporate social responsibility should be renamed to purely “social responsibility” – in the business world we tend to over complicate and like to rename to create catch phrases that will look trendy on LinkedIn or to investors. Most young executives, or dare I say ‘millennials’, are noted to want to contribute back to society, have a social conscience, and for the right reasons, to contribute to their communities. I’m no different and through the Chamber have been given the opportunity to work closely with The Hub amongst numerous other Charities and NGO’s. Like the examples of boards who have greater diversity, they also enjoy greater returns. Businesses whom employ CSR strategies and practice good governance also perform better than those who don’t. Due to a large number of Chamber members being SME’s whom at times find it hard to develop a CSR strategy on top of day-to-day operations, the AYE Committee and the wider Chamber provide the opportunity for such businesses to be able to contribute without a large time commitment-a part of what I hope to drive further into 2019.

CEO Forum Series: Pursuing Diversity Through Adversity

CEO Forum Sponsor:

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ustralian gold medallist Dylan Alcott OAM decoded the myths about employing people with disability at our first Macquarie Graduate School of Management CEO Forum Series event this year “Pursuing Diversity through Adversity”. Through Dylan’s refreshing candour and humour, the retelling of his triumphs and challenges highlighted the misguided stigmas surrounding people with disability. Attending Chamber members learnt how these misconceptions can not only inhibit someone’s career journey and ambitions, but also inhibit a business’s growth which can be impacted by diversity. Dylan reminded businesses not to forget people with disabilities as a potentially lucrative target market. With discussion around the need for more action and dialogue in Hong Kong and Australia, we are privileged to kick-start the conversation around changing the face of disability at a C-suite level here.

As one of Australia’s most successful athletes (who also happens to be in a wheelchair), Dylan and his team at Get Skilled Access are working to drive generational social change and improve accessibility purposefully and profitably. Encouraging corporations to “get ahead of the curve”, Dylan believes that the first corporations who engage and incorporate inclusivity in their business will achieve a competitive advantage. We thank James Carlile, AustCham Young Executive Committee member and founder of Wine Brothers for moderating the event, and the ongoing support of Professor Philomena Leung and the Macquarie Graduate School of Management (MGSM). Congratulations to Ivy Lui for winning the lucky draw prize made possible by MGSM, and our event partner Herbert Smith Freehills. This event was part of AustCham’s Young Executive CEO Forum Series.

Community Engaged

Putting the S back into ESG - Kimberley Cole, Head of Solution Sales, Asia of Thomson Reuters Financial & Risk Kimberley is the Co-Chair of AustCham Sustainability Committee Photo credit: Reuters

ocially conscious investors are more concerned than ever before that their money is being put into companies that have a positive impact on the world around them. They’re looking beyond returns as a benchmark for performance and want to see that companies are run fairly and ethically.

The result is that environmental, social and governance (ESG) criteria are fast becoming a part of mainstream investing. But are we focusing too much on the environmental and governance aspects of the companies we invest in to the detriment of their wider social impact? Could a renewed focus on the social responsibilities of a company bring about a step-change in their efforts to tackle financial crime and modern slavery? In short, is it time to put the ‘S’ back into ESG? In his latest annual letter, BlackRock CEO1, Larry Fink, publicly urged companies to serve a social purpose. He called for a new model of shareholder engagement that looks at the societal impact of a business. And he’s not alone. The movement towards socially responsible investing is growing, particularly amongst millennials, and as that generation advances in the workforce and comes to control more wealth, their influence will also grow. While all this is positive news and should be celebrated, there’s much more we all can and should be doing. In particular, the environmental and governance aspects of ESG are well understood and integrated into many companies’ philosophies. Carbon emissions and boardroom diversity are frequently discussed and make regular headlines. However, in all this activity the social aspect of ESG very often gets left behind. And yet without sufficient attention being paid to it we risk undermining the entire principle. Part of the problem lies in definitions. It’s much easier to talk about a firm’s environmental or governance standards – its August 2018

track record on combatting pollution or plans to close the gender pay gap, for example. But it’s much harder to define its social impact, particularly as that may be buried far down in the supply chain. A recent Thomson Reuters2 report1 on global financial crime found that nine percent of the organisations polled had dealt with over 10,000 third party vendors, suppliers or partners in the last twelve months, and 41 percent of respondents have failed to screen any of them. Hidden deep within this network of suppliers can lurk groups who are engaged in money laundering, drug trafficking and – perhaps most pernicious of all – modern slavery. Six out of ten report respondents said they operate formal training for bribery and corruption, money laundering, fraud, theft and cybercrime, but less than half operate this training for slave labour and human trafficking. It’s a serious issue. Today, there are 40.3 million people in some form of modern slavery – sex slavery, forced or bonded labour. That’s the combined population of New York, London and Bangkok. cont P.23

Community Engaged cont from P.22

This number includes people working unpaid in appalling conditions in brick kilns, mills and factories. It includes children dying in dilapidated mines before they reach adulthood. Modern slavery is a lucrative, 150 billion dollar industry. And it’s hidden in plain sight.

the formation of a public-private coalition to fight financial crime and modern slavery. Since then, more organisations have joined, including Rani’s Voice13, a global social enterprise focused on human trafficking prevention.

All of us in the business community share a responsibility to take a stand and tackle this issue. Modern slavery needs to be a focus for firms, especially those with complex supply chains in high-risk industries. Gold, bricks, cotton, sugarcane, coffee and tobacco all have a high instance of child labour associated with them. Even the most innovative technologies are at risk. Cobalt is a key component of modern batteries from everything from the latest smartphone to electric cars. And yet cobalt mining is notorious for employing child labour. It’s clear, therefore, that the environmental benefits of buying an electric car or investing in a company that manufactures them are completely undone if deep down in the firm’s supply chain modern slavery is flourishing. Without action to identify and root this out, no firm can be said to achieve its ESG goals. As investors get more and more sophisticated about ESG, they will shun firms that do not recognise their responsibilities. The financial impact on firms is becoming clearer, quite apart from the moral imperative. The good news is that the tide is beginning to turn. Despite their opaqueness, complex networks of supply chains can be navigated. The keys to this are data and analytics. Better data and smarter analytics are making it easier to form a complete picture of risk across global supply chains, and machine learning and artificial intelligence tools are helping compliance teams manage the overwhelming task they’re faced with. Perhaps more important than individual company efforts in combating modern slavery, though, is the power of collaboration. In January this year Thomson Reuters together with Europol and the World Economic Forum announced

Photo credit: Reuters

Its leader, Rani Hong, was stolen at the age of seven from her family and sold into slavery. As a survivor of child slavery, Rani has dedicated her life to speaking for those without a voice, becoming one of the foremost advocates for combating the crime of human trafficking. By working together with partners like Rani’s Voice, we can raise global awareness of this issue. We can share the critical data that identify where it lies. And we can finally make steps to eradicate it from our supply chains and our society. Today we’re at something of a turning point in the fight against modern slavery. Investors are expecting more from their portfolio companies than simply financial returns, and technology is making it easier to identify supply chain risk. At the same time, there is a growing willingness to work together towards a common goal. For all these reasons and more, it’s time to put the S back into ESG.

n August 28, Thomson Reuters is hosting the Stop Slavery Summit in Hong Kong. The summit aims to further increase business perspective and focus, partnering with corporations, governments and NGOs, sharing best practices on the role investors, business leaders and board directors play in breaking the chain of slavery operating in our supply chains or unknowingly supported and financed by activities hidden in our businesses. It will also showcase how technology, along with data solutions and enhanced risk procedures and regulation can tackle slavery. There will be live tweeting from the Summit via @RiskManagement using #StopModernSlavery. Follow the conversation and share your thoughts on how we can tackle modern day slavery.

Photo credit: Reuters 1

For details, visit: http://financial-risk-solutions.thomsonreuters. info/LP=6710

https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter

https://www.thomsonreuters.com/en/press-releases/2018/may/almost-50-percent-of-companies-have-been-victims-of-financial-crime-accordingto-new-thomson-reuters-report.html

https://www.thomsonreuters.com/en/press-releases/2018/july/ranis-voice-joins-thomson-reuters-in-the-fight-against-financial-crime-and-modernslavery.html

Corporate News New Technology-Enabled Corporate Registry Service in Hong Kong

ustCham corporate member, Link Group, a leading global provider of technology enabled solutions for companies, large asset owners and trustees, recently launched Hong Kong’s first ‘one-stop-shop’ corporate registry service. The Australian headquartered group, already active in Hong Kong for 10 years, announced its global share registry services, complementing its global investor relations, equity and bond services in Hong Kong to serve local corporates and those in Mainland China.

John McMurtrie, Executive Director and Managing Director of Link Group said, “Hong Kong is a very important market for us, and the timing is appropriate, given the levels of activity in the Hong Kong stock market. The team on the ground’s focus is to bring innovative solutions to the corporate registry market, by bringing our global, multi-jurisdictional and technology-driven services to the region.”

With over 300 active clients in the region, Link Group is represented by Link Market Services, the share registry firm, Orient Capital, the investor relations specialists and DF King, the equity and debt stakeholder engagement company, offering a unique combination of all three services to investors and companies alike. Link Group also launched a localised investor app, part of the “miraqle“, technology platform which connects Orient Capital and D. F. King services to offer access to investor information and roadshow itineraries. As improvements in corporate governance continue Hong Kong, this app immediately provides companies with an enhanced capability to communicate directly with their shareholders and for shareholders to ensure access to information and their voting rights in a timely manner.

New Qantas Links with Hong Kong

antas has announced that Hong Kong will be the next destination for their Boeing 787-9 Dreamliner.

From December, passengers travelling on selected flights from Hong Kong will experience the Dreamliner’s next generation Economy, Premium Economy and Business class cabins: • Hong Kong to Brisbane from 18 December • Hong Kong to Melbourne between 13 December 2018 until 28 March 2019 • Hong Kong to Sydney from 29 March 2019. The changes coincide with the arrival of Qantas’ eighth Dreamliner which joins the fleet of Airbus 330 and Airbus 380-800 aircraft serving the Hong Kong market. Qantas has also announced the reintroduction of first-class from Hong Kong to Sydney on-board the Airbus 380-800 during the coming Winter holiday period (from 01 December 2018 to 28 March 2019). Qantas Freight has also launched a new direct seasonal freight service from Darwin to Hong Kong, supporting producers in Northern Australian to respond to growing demand from Asia. August 2018

Corporate News RISE Brings Together World-leading Entrepreneurs and Investors

ow in its fifth year, RISE is one of Asia’s most influential technology conferences. RISE 2018 was held from July 10–12 in the Hong Kong Exhibition and Convention Centre. Over 15,000 people from 102 countries attended. They included 500+ investors, 750+ media, 750 startups, and 316 speakers from the world’s biggest companies. It is produced by the team behind Web Summit, the international technology conference annually held in Lisbon each November. Attendees gathered to hear from the world-class speakers on the 12 stages at the event, including Microsoft president Brad Smith, Didi Chuxing co-founder Bob Zhang, Grab co-founder Tan Hooi Ling, Amazon CTO Werner Vogels and Recode executive editor Kara Swisher. Leaders from the world’s most important technology companies recognise that RISE gives them a platform into the Asian market and an opportunity to meet with decision makers. And companies choose RISE to make significant announcements: • Grab held a press conference and announced details of a new “super-app” at the event. • WeChat Pay announced details on international business expansion.

In addition, more than 500 investors attended RISE including ZhenFund CEO Anna Fang, GGV Capital’s Hans Tung and Tencent’s Dan Brody. In a poll conducted at Venture, two thirds of global investors said China showed more growth potential than the US and would be the dominant tech power within five years. Venture is the leading gathering of tech investors in Asia. Key poll results: • 67% said China will become the world power in tech within five years. • 62% of investors say there is more growth potential in Chinese tech than in the US. • 51% said the US will come off economically worse than China in the two countries’ trade war. • 52% of investors said President Trump was not saving the US economy. RISE 2019 will take place in Hong Kong on July 8–11, for details please visit: https://riseconf.com

The South China Morning Post launched the 2018 China Internet Report - the report included key information about China’s internet landscape, including lists of Chinese unicorns, the country’s top internet companies and most active investors, and a side by side comparison of the internet population in China and the US.

BlackRock’s Pru Bennett named 2018 Asia Industry Leadership Honoree

00 Women in Finance (‘100WF’) announced Ms. Pru Bennett, Head of Investment Stewardship for Asia Pacific at BlackRock, the 2018 Asia Industry Leadership Award Honoree. Based in Hong Kong, and a champion of inclusion and diversity, Ms. Bennett is member of steering groups for the Ms. Pru Bennett Australian and Hong Kong chapters of the 30% Club, a market initiative to increase the number of women on boards and in senior management, as well as the more recent investors’ initiative on corporate board diversity among Hong Kong-listed companies. Ms. Bennett is an active participant in the public debate on corporate

governance, stewardship and responsible investment, and an authority on the importance of these issues for company performance and investment decisions. In 2013, she was named as one of Australia’s top 10 Women of Influence in Corporate Governance. Last year, she was appointed by the Government of Hong Kong to the Advisory Board to the Securities and Futures Commission. Ms. Katarina Royds, Investor Relations at BFAM Partners (Hong Kong) Limited and Gala co-chair, stated, “Pru is a champion of diversity and inclusion of all kinds, but especially within the governance structures of our industry’s own institutions and the companies in which we invest. 100WF is delighted to honor someone with her track record of advocacy and achievement with our Asia Industry Leadership Award.” Ms. Bennett will receive the award at the 6th Annual 100WF Hong Kong Gala on November 8, 2018.

Spotlight

Hong Kong Hosts Brisbane Lord Mayor and Business Delegation

risbane Lord Mayor Graham Quirk, joined by a delegation of businesses from Australia’s third-largest city across a range of industries, visited Hong Kong to showcase the opportunity for business relationships and investment between Brisbane and Hong Kong.

Cr Quirk’s visit to Hong Kong marked the first visit from the Lord Mayor since 2013, with a view to strengthen ties between the two cities and boost the opportunity for economic development and investment in key industries. “Brisbane is a great place to live, work, and relax – it’s a safe, vibrant, green and prosperous city, valued for its friendly and optimistic character, and we want the people of Hong Kong to experience that for themselves,” he said. “As Australia’s New World City, Brisbane is spreading our message to the Asia Pacific region that we are ready, willing, and able to do business by embracing international trade, investment, and collaborative opportunities. “Brisbane aspires to be a place that supports industries that trade globally, are driven by hightech innovation and research, and deliver the products and services that the world needs. “There exists endless opportunities in Brisbane for Hong Kong investors, with $7 billion worth of transformative projects currently under construction to boost the city’s tourism, retail, lifestyle and residential offerings by 2022.” Cr Quirk said the delegation of businesses on the trade mission included key industries looking to strengthen ties with Hong Kong, including education, property, corporate services and digital and technology industries.

Brisbane – Hong Kong Business and Investment Forum at Renaissance Hong Kong Harbour View Hotel August 2018

Lord Mayor Graham Quirk with Julie-Anne Nichols, Commissioner, Hong Kong and Macao Queensland Government, Trade & Investment Queensland and her team, and the International Relations and Multicultural Affairs team, Lord Mayor’s Administration Office, Brisbane City Council

Brisbane Lord Mayor Graham Quirk and Mr David Chung, the Under S ecretar y for Innovation and Technology Bureau, HKSAR Government.

Corporate Profile

Philip Morris Asia Limited 27

www.pmi.com Philip Morris Asia Limited (PMAL) is a subsidiary of Philip Morris International (PMI) which manufactures and sells six out of the top 15 leading international cigarette brands, among them Marlboro, one of the best-known and iconic brands. We have made the decision to build our future without cigarettes as we believe that smokers who choose to continue to smoke can switch to alternatives that are likely to be less harmful. So far, five million adult smokers around the world have switched from cigarettes to our smoke-free products.

Brett Cooper General Manager, Hong Kong & Macau

What are the main skills of your job? It is essential to think holistically and communicate well with both internal and external stakeholders in order to lead a full-scale effort to create a smoke-free future.

What’s something most people don’t know about your company? We take great care about our employees’ wellbeing and we mean it. For example, for our new and soonto-be parents we have a mother’s room in our Hong Kong offices. Since April 2018, we have also extended maternity leave from 10 weeks to 18 weeks and paternity leave from 3 days to 10 days.

What’s the most unusual thing you have had to do as part of your job? We are committed to help the Hong Kong government achieve its public health objectives by reducing the harm caused by combustible smoking. Hence, one of the most important things I need to do is to eventually stop selling cigarettes. It does seem unusual when you think about it, but our ultimate goal is to one day replace all cigarettes with our smoke-free products.

What’s your company’s connection to Australia? Our Australian arm, Philip Morris Australia Limited (PML) is an important member of our region which reports into PMAL, our regional office based in Hong Kong. In recent times, PML has been awarded the Australian Government Workplace Gender Equality Agency’s Employer of Choice for Gender Equality citation for the third consecutive year since 2015.

What does your company do really well? We are focusing on the transformation of our organisation and are making every effort to ensure that our employees are offered the benefits, opportunities and platforms to collaborate, develop different capabilities and skills and ultimately create a better life for them and their families.

How would you describe your workplace and colleagues? We have and will continue to build on our inclusive, innovative and employee-centric working environment with a resilient and agile team. We also take pride in our flexible staff benefit program, which includes 4.5-day work week, flexi-hours and remote working on Fridays.

What is the vision of your company in the future? A: We’re building our future on smoke-free products that are a much better choice than smoking cigarettes for adult smokers who choose to continue to smoke. Indeed, our vision – for all of us at PMI – is that these products will one day replace cigarettes.

What’s your favourite place to go on the weekend? Anywhere with my family, colleagues and friends! I love spending time with my family and seeing Hong Kong. My kids are really loving it in Hong Kong so the week ends seem to go by so quickly.

AustCham CSR Partners AustCham is committed to giving back to the communities in which we operate â&#x20AC;&#x201C; 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 â&#x20AC;&#x201C; and they wonâ&#x20AC;&#x2122;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