AustCham News October 2019 - Issue 211 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 211 | OCT 2019

Mind, Body, Business Series: 8 Optimum Performance 9 Importance of Gut Health 10 Building Asia Capability 14 Telstra on HK Digital Capability 28 HK Government Help for SMEs

Managing Mental Wellbeing with Zoe Fortune

Where Business, People and Ideas Connect

www.austcham.com.hk

Chairman's Column

t has been an unusual summer in Hong Kong as the city’s protests continue. There is a sense of surrealism extending from the city exhibiting extremes of normality during the week to the scenes of isolated outbreaks of violence in the weekend evenings. Like our peer chambers, we are also seeing many businesses, for example finance and professional services continuing relatively resiliently, but other sectors, most notably hospitality and food and beverage, are suffering as visitor numbers have dropped precipitously. The nature of these incidents call for greater awareness, particularly on weekends and we encourage you all to register with smartraveller.gov.au for the Australian government’s latest travel advice. The irony of October’s night time violence being borne from June’s (largely) peaceful protests in support of the right to peacefully protest, reflect a frustration with deeper elements than the now withdrawn extradition bill. We welcome the government’s forthcoming policy address (to be delivered just after we go to print), and support their ambitions to address the key issues of housing and economic and social mobility. We have been engaging very closely with government to help facilitate a deeper dialogue and enhanced communications between stakeholders across the city. The Chamber believes that meaningful communications between the government and the wider community can be conducted in a way that recognises and addresses the concerns of all parties, focuses on peaceful resolution, and respects Hong Kong’s unique position. I continue to attend meetings with the Government and stress the urgency to resolve and restore confidence in Hong Kong and progress the city out of the current impasse, while protecting the rule of law and one country, two systems. The Chamber continues to maintain “business as usual” focusing on our efforts on providing support to our members. The Chamber has been monitoring the current business sentiment here in light of recent events and to ensure that we continue to reflect the opinions of our members. While we have been engaging closely with members during committee meetings and events, you would have also noticed that we have conducted three member surveys anonymously in the past few months, to gauge members’ views on the business environment in Hong Kong. Hong Kong is my home – and has been since I first arrived here 21 years ago. The city is also home to many thousands of Australian expatriates (many of you members of AustCham) and we have all witnessed the city bounce back from many challenges such as SARS and the 1997 Asian Financial Crisis, stronger every time.

austcham news issue 211

Mind, Body, Business Series Managing Mental Wellbeing

Counting the Cost of Mental Health 7

Extending your Performance Window 8

Importance of Gut Health

Australia Focus Asia capability is corporate Australia's competitive edge

Growth roadmap for SMEs

Industry Insight

LEGO - the Original Block Chain 16 Member Comment

Focus on Education

AustCham Intern Program

Public Policy Updates

InterChamber Event

Committees in Action

New Member

Mentor Program

austcham news Online version

Member Business Sentiment Survey Thank you to our members who responded to the three business sentiment surveys sent out through email over the past few months. We were able to gauge the current business sentiment in Hong Kong in light of recent events, and to ensure that the chamber continues to reflect the opinions of our members. The surveys were anonymous, and findings will not be publicly released to preserve anonymity.

Yours sincerely, Andrew Macintosh chairman@austcham.com.hk Andrew Macintosh with Bernard Charnwut Chan, GBS, JP, Convenor of Executive Council of Hong Kong SAR

Chamber Chatter

What’s Trending

hat a difference a few months make.

At the time of our last issue, concerns over the introduction of the (since withdrawn) extradition bill saw peaceful marches drawing hundreds of thousands onto Hong Kong streets. None would have expected these protests to have continued for so many months.

As our Chairman Andrew MacIntosh writes in his column, the Chamber continues to engage with our stakeholders at a variety of levels. It is important that you, as members, know about those mechanisms. One of the most critical in terms of Hong Kong Government engagement is the International Business Committee (IBC). The IBC brings together all international business chambers and the Hong Kong General Chamber of Commerce. These meetings are an invaluable opportunity for the international business community to directly engage with the HK Government, to raise issues of concern, from policy through to those impacting business and livelihood. The IBC has convened twice recently to provide the opportunity for direct dialogue. Our engagement with government at these important meetings has included the feedback we received from members who responded to our member sentiment surveys, as well as the many discussions we have had via AustCham committees and events. We also work very closely with the Australian Consul-General Michaela Browning and her team, who continue to do an outstanding job. The Consulate-General also convenes the Support Australia Group, regularly bringing together many Australia-related organiaations, helping ensure that the Australian community is informed and connected. There has never been a more important time to belong to the Chamber, which not only provides a sense of community but a way for your views to be conveyed to critical stakeholders. Recently we invited the Trade and Industry Council to meet with SME members. The Council offered a very practical overview of government relief measures, highlighting more than 40 schemes and funds. We are also seeking a meeting with the Hong Kong Tourism Promotion Board to provide our tourism and hospitality members with an opportunity for collective dialogue, discussion and input into a longer-term strategic plan for Hong Kong’s tourism industry. Our “Mind, Body, Business” series (sponsored by King & Wood Mallesons and Gleneagles Hospital) also continues to provide a timely reminder of the importance of managing physical and mental wellbeing, and of managing and addressing anxiety (p. 5). All of us would like to see an end to the disruption of the past few months. The Chamber acts as both a tool to help your business, as well as an influential voice on your behalf, through these challenging times. . Jacinta Reddan, Chief Executive, AustCham

AustCham Platinum Patrons

October 2019

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

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Mind, Body, Business Series

Mental ill health is a com widespread issue among professional services em Managing Mental Wellbeing

ental ill health is prevalent across the globe with the World Health Organisation estimating that one in four of us will be affected by mental or neurological disorders at some point in our lives. Successful campaigns in several countries have brought more publicity and society’s attention to the issue of poor mental health in the corporate workplace, but in Hong Kong, many issues including stigma and cultural factors continue to discourage open discussion.

These were the findings of the Mental Health in the Workplace: survey of Hong Kong employees in professional services firms conducted by NGO City Mental Health Alliance Hong Kong (CMHA HK) and consultancy Oliver Wyman to assess the current status of mental health conditions in the corporate workplace, and to provide a benchmark for reference for Hong Kong employers. CMHA HK launched its inaugural mental health survey in 2017 with a follow up 2018 report released earlier this year. The CMHA was founded in the UK and CMHA HK launched in 2017.

This year on year pattern of results indicates that mental ill Stigma Prevalence of mental ill health health is a consistent and common feature in professional services companies in Hong Kong.indicate that The survey results in 2018 Moreover 37% of respondents have at any point in ill health i Stigma towardsexperienced mental ill health their lifetime a mental ill health 55% of res while in employment (comparing to 35% in experienc Stigma to of mental ill health isexperienced widespread in Hong of someon 2017),attached and 25% respondents Kong with health 55% ofproblems respondents indicating that mental while working forthey have condition. experienced stigma personally(comparing and/or know of who inhibitor t their current employer tosomeone 24% indue 2017). This year oncondition. year pattern results has to a mental health Stigmaofhas been shown mental ill mental ill health a consistent toindicates be a majorthat inhibitor to people talkingare openly about mental among em and common feature in professional services a study co ill health and can prevent discussion among employees within companies in Hong Kong. UK in 2011 the workplace. fear of sti their emp Key findings Experience of mental ill health amongst Hong Kong Experienceservices of mental ill health amongst Hong Kong professional employees professional services employees

In response you know e health cond

37%

of respondents experienced mental ill health while in employment

More than 400 employees working in the Legal, Financial Services and Consulting industries participated in the survey. Prevalence of mental ill health The survey results in 2018 indicate that 37% of respondents have at any point in their lifetime experienced mental ill health while in employment (compared to 35% in 2017), and 25% of respondents experienced mental health problems while working for their current employer (compared to 24% in 2017).

Stigma att

of respo with no exp

25%

of respondents experienced mental ill health while for their current employer

Figure 1 Source CMHA HK Survey (2018); sample size n = 405

cont P.6

Mind, Body, Business Series cont from P.5

CMHA HK Chief Executive Officer Dr Zoe Fortune said that awareness and understanding of mental health in Hong Kong is not as mature as in the UK or Australia. One of the key aims of the NGO is to get mental health recognised on the boardroom agenda.

“What we have been finding in Hong Kong is there isn’t that understanding about mental health or a basic level of awareness and even if that exists it’s not necessarily talked about and also there are cultural factors we need to consider here and be sensitive to,” she said. The focus has been on the financial and professional services sector given the stressful nature of the work with long hours. Other factors which may impact on mental health include Hong Kong being such a crowded and expensive city.

The only way we are going to get change is if it is driven from the top

Please mind the gaps Dr Fortune said that while large multi-national firms may have programs in place, it would be unfair to suggest local firms were not offering support. “It depends on the nature of the company and the culture within the organisation. I think there is growing awareness around the topic here in Hong Kong. The only way we are going to get change is if it is driven from the top. It’s very difficult to create culture change if you don’t have that senior level buy in and so when we are working with an organisation it’s really crucial you have that senior level buy in. “If you put this on the shoulders of HR it can be sometimes difficult to get traction because employees feel it’s another thing coming from HR. Instead it should be something that is driven at every level across an organisation. Staff need to believe senior management have invested in their wellbeing. Organisation needs to drive it from the top and that’s where there needs to be responsibility, it needs to be on the board agenda and there needs to be accountability as well.

“It’s not the line manager’s responsibility to be a counsellor “What we’ve found with our general training is about bringing for someone who is experiencing mental ill health but it is Survey have been used to highlight three health indicated that to they think their upresults that general baseline level of awareness around what are illthe line manager’s responsibility be aware, to get to know areas associated with employee experience of ill health firms have resources to support Survey results have been used to highlight that they thinkintheir we talking about with mental health and I think three a lot of people their indicated team, be sufficient aware of any changes behaviour, have a mental ill health – but can be easily addressed staff well-being. areas associated with employee experience of firms have sufficient resources to support immediately equate mental health to mental ill health but we conversation with them and direct that employee towards within professional services companies: mental ill need health – but can bemore easily addressed staff well-being. to be talking much around good mental health sources of help and support.” within professional services companies: and about health creation and about the workplace being Trust gap: Of those who have experienced She said that largerwho companies may have an employee Trustmental gap: Of those have experienced a supportive environment can help to keep someone Knowledge gap: 69% of that survey respondents ill health, only 36% reported assistance program (EAP) in place but is important that healthy and be a good placeeducation to be. Knowledge gap: 69% of any survey respondents mental ill health, only 36% reported have never received or revealing their experience toit someone in employers provide some avenue of support forinstaff. “For have never received any education or revealing their experience to someone information on mental ill health. the workplace. The fact that a large number “We are talking very basic levels of knowledge around what are smaller companies doesn’t have be annumber EAP, but there information on mental ill health. the workplace. The itfact a to large of people have alsothat experienced stigma in some of the symptoms you might notice in a workplace with needs to be some mechanism for staff to reach out.” of people have also experienced stigma Firm support gap: Only 8% of people some form may suggest that some in of this colleagues who might be experiencing anxiety or depression somecould form be may suggest that some of this Firm support gap: Only 8% of people mental that have previously experienced attributed to stigma. and stress.”

that have previously experienced mental

could be attributed to stigma.

Major gaps identified – knowledge, firm support and trust

Majors gaps identified – knowledge, firm support and trust Majors gaps identified – knowledge, firm support and trust Knowledge gap Knowledge gap

Firm support gap Firm support gap

Trust gap Trust gap

69% 69%

8%8%

36% 36%

Never received any Never received any health education on mental education on mental health

Think firms sufficiently Thinksupport firms sufficiently staff wellbeing support staff wellbeing

Told someone at work about Told someone work about theirat mental ill health their mental ill health

Figure 2 2 Source CMHA HK Survey (2018); sample size n = 427 (knowledge gap); n = 148 (firm support gap); Figure n = 99 (trust gap) Source CMHA HK Survey (2018); sample size n = 427 (knowledge gap); n = 148 (firm support gap); n = 99 (trust gap)

October 2019

Knowledge gap Knowledge gap

Mind, Body, Business Series

Counting the Cost of Mental Health

ental ill health within the professional services industry in Hong Kong is being recognised as an increasingly pertinent issue, and it is costing employers in the form of both direct (and known) costs as well as hidden costs. City Mental Health Alliance Hong Kong (CMHA HK) estimates the total costs associated with mental ill health for employers within the professional services industries ranges from HK$5.5 to $12.4 billion per year. To put the numbers in context, this is equivalent to HK$1 million per organisation on average, with a huge range

depending on the size of the professional firm involved. The total cost associated with mental ill health to employers is high, especially when this is compared to the amount employers spend on employee assistance programs (EAP). CMHA HK’s report estimates total overall EAP spend by professional services firms in Hong Kong amounts to around HK$130 million per year. This means the total cost to employers for costs associated with mental ill health is 40–90 times the amount spent on EAP.

Mental health – a priority for professional services employers in Hong Kong

Mental health – costing professional services HK$130 million per year Mental health – a priority for professional services employers in Hong Kong

The price of mental ill health to employers The price of mental ill health to employers $45–180 MN $45–180 absenteeism

$4.7–10.0 BN

$0.7–2.2 BN

Many $0.7–2.2 other costs

MN in presenteeism $4.7–10.0 BN in turnover absenteeism in presenteeism

4 days per year 64% of employees absent due go to work knowing to employees their productivity 4 days per yearwill be impacted 64% experiencing due mentalabsent ill health due to mental ill health go to

to employees experiencing mental ill health

6–9 months of an employee’s annual compensation of employees cost per turnover

work knowing their productivity will be impacted due to mental ill health

Series sponsors:

$130 MN

BNin EAP spending Many in turnover other costs

Total costs associated with mental ill health 6–9 months ofrepresent 40–90x 1. Team productivity of an employee’s EAP spending 2. Opportunity cost

1. Team productivity 2. Opportunity cost 3. Reputational cost

annual compensation cost per turnover

3. Reputational cost

Mental ill health costs employers

$130 MN in EAP spending Total costs associated with mental ill health represent 40–90x of EAP spending

The Cost of Mental Ill Health for Employers in Hong Kong Full report is available here

5.5–12.4 BN HKD per year Mental ill health costs employers

5.5–12.4 BN HKD per year

At AISHK, it’s all about balance.

Mind, Body, Business Series

Extending your Performance Window

n stressful times, maintaining a healthy lifestyle can become a challenge. This was the focus of the second event in our Mind, Body, Business Series. Our guest speaker was leading expert, elite highperformance trainer and Director of Joint Dynamics, Andrew Cox. Guests learned from Andrew what a healthy sustainable lifestyle entails, and how to realise a work/life balance. He shed light on how to manage our energy and well-being for sustainable, high level performance both in and outside the workplace, taking in exercise, nutrition and recovery. He also provided some tips on breathing techniques and simple exercises which could also be performed, either in the office or at home. Special thanks to King & Wood Mallesons for hosting the event. Series sponsors:

ong Kong’s summer of protests has thrown up a number of challenges across our member companies regardless of industry sector or size – and that is managing people. Staff engagement has been impacted and many businesses have reported specific challenges in terms of managing crosscultural teams. Not only have the protests and transport disruptions impacted the ability of staff to attend work, but they have also resulted in workplace anxiety. As managers,

October 2019

concerns for our people’s safety remain top of mind. Mental health and wellness in the workplace is an ongoing focus of our Mind, Body, Business Series and we are grateful to King & Wood Mallesons and Gleneagles Hong Kong Hospital for making this important topic available to members. Our AustCham People Forum also recently held a practical session offering advice and sharing best practice for HR managers.

Mind, Body, Business Series

Importance of Gut Health

By Dr. Victoria Tan (left), Specialist in Gastroenterology & Hepatology at Gleneagles Hospital and Clinical Associate Professor at the University of Hong Kong

Dr. Tan breaks down the FODMAPs diet and explains just how it works and who it works for. In the Chamber’s Mind, Body and Business series event Food on the GUT Highway to the Brain!, attendees learnt about various diet implications and the importance of their gut health.

n a sea of diets, the wheat belly diet, gluten free diet, leaky gut diet, gut cleansing diet and SIBO gut diet to mention a few, what is fact and what is fiction?

Whilst few diets are based on the highest quality research there is a lot of information there on the internet, on apps and in print media based on “expert” opinion, which may be grounded in anedoctal information or sometimes based on quasi science. This leads to a confusing situation for patients who only start searching the internet when they develop some gastrointestinal symptoms. Patients need to sift through mounds of websites, apps and books making all sorts of claims to arrive at the right diet for their condition and hope that it won’t result in nutritional deficiencies causing long term problems like osteoporosis (macrobiotic diet) and kidney stones (low carbohydrate diet) to name a few. So what is the low FODMAP diet? Is this another fad with a memorable name or something more enduring? In fact FODMAPs stands for Fermentable Oligo, Di-, Monosaccharides And Polyols. FODMAPs are a group of carbohydrates that are found commonly in our everyday foods and cause minimal problems for the majority of us. Think of feeling a bit more flatulent than usual after a meal that incorporates beans (an Oligosaccharide – so the O in FODMAPs) as the main ingredient like red bean soup or baked beans. But in patients with Functional Dyspepsia and/or Irritable Bowel Syndrome ingesting even normal amounts of FODMAPs results in significant and bothersome bloating/fullness, belching, flatulence, stool disturbance and pain. The low FODMAP diet was developed by Monash University in Australia with the aim of empowering every patient with Irritable Bowel Syndrome to self-manage their symptoms through wise food choices whilst reducing their reliance on medications.

The low FODMAP diet has been subject to at least 15 high quality scientific studies, many of which are feeding studies, where patients have all their food and drink supplied to them by the research teams. Furthermore, the results of the low FODMAP diet have been replicated in Australia, the UK, Europe and the US, and are backed by research demonstrating a sound biological basis as to why this diet would work to reduce “gas type” symptoms of flatulence, bloating, distension, constipation/ diarrhoea and abdominal pain. Recently our team at the University of Hong Kong has completed a study demonstrating that the low FODMAP diet works in Hong Kong to reduce these symptoms as well, and this paper will soon be published in a peer reviewed journal. So where do you find FODMAPs. In fact, in many foods. Oligosaccharides are found in bread, pasta, onions, garlic and beans. Disaccharides in dairy products like milk, cheese and yoghurts. Monosaccharides are found in honey, apples, pears and wheat products. Finally Polyols are found in mushrooms and stone fruits like cherries, apricots and mangoes. The basic idea behind the low FODMAP diet is to replace high and moderate FODMAP foods with another that is low in FODMAPs whilst ensuring that the entire meal including the beverage doesn’t exceed a “tolerance” total FODMAP content which would trigger symptoms. The “tolerance” level for FODMAPs is very individualised and hence the need for dietician input to determine the appropriate level of FODMAPs for each person. A dietician can also ensure that you don’t end with nutritional inadequacies long term. The take home message is this diet is not for you if you don’t have either functional dyspepsia and/or irritable bowel syndrome. If you think you do get properly diagnosed by a physician first, thereafter consider dietary therapy for the management of your symptoms. Series sponsors:

Australia Focus

Asia capability is corporate Australia's competitive edge

ustralian expats returning home are an untapped talent pool for recruiters and businesses, a report by Indeed, the #1 job site in the world and Advance, the organisation that celebrates and connects members of Australia’s global diaspora, reveals.

And while almost a quarter (24%) of those surveyed were successful in landing interviews for various roles, they still reported missing out on job offers. According to the report it takes those returning home 2.1 months longer than the average job seeker to secure a job.

The report, ‘They Still Call Australia Home’ explores the attitudes of Australian business and recruitment decisionmakers towards Australians who have travelled and worked abroad. It also captures the job-seeking experiences of Australians who have worked, or are working, overseas and navigating their return to Australia. A key highlight from the report’s findings is the need for Australian businesses and recruiters to broaden their search to include expats returning home to Australia.

Paul D'Arcy, SVP Marketing at global job site Indeed, commented: “It’s clear Australia has pull-factors that attract its diaspora back to the country and, as the report identifies, these skilled workers present a significant opportunity for recruiters and businesses.

According to the findings, nearly three quarters of respondents (71%) reported a positive experience from hiring a returned expat while almost 3 in 5 (57%) of recruiters identified that recruiting returned Australians has a longer-term strategic benefit. While recruiters expressed concerns that expat candidates who recently returned home lacked strong Australian business networks, in fact nearly half (49%) of those returning from a stint overseas reported eventually finding employment through their own networks. This demonstrated that expats returning to Australia are indeed benefitting from maintaining strong connections back home. By overlooking Australian talent in global markets, employers are limiting their options. In fact, 65% of the survey respondents believe Australian businesses are creating an environment that discourages Australians working overseas from returning. When looking for work back home, a third (34%) of expats who recently returned home reported not being successful in landing an interview for a potential role where their skills precisely matched the job requirements. October 2019

“While most (83%) recruiters said they are cautious about recommending expats who recently returned home for Australian-based roles, we know diverse workforces are more successful than homogeneous ones, which is why employers and recruiters are missing out on an untapped pool of returning workers whose skills and experiences could positively impact their company. “In order to reap the rewards of expats returning home, employers and recruiters could embrace a change in mindset to one that looks beyond its own borders to one that prioritises ability and skill. Businesses would do well to abandon any preconceived ideas they have about what a candidate needs to handle a job and adopt policies that make the hiring process more objective. “This will mean that in the global battle for talent, Australia has the opportunity to secure the best and brightest talent in the market.” Yasmin Allen, Chairman of Advance believes that professional networks are critical to helping professionals coming home to reintegrate into Australia’s workforce and government policy is also key to supporting their return home to draw on their specialist knowledge and expertise. She comments: “As a country, we derive value and benefits from encouraging our expats to remain connected with cont P.11

Australia Focus cont from P.10

Australia and to come home to share their experience and bring their intellectual property with them. This in turn fuels innovation and benefits the entire nation economically. “Additionally, expats themselves need to be prepared and mindful that things may have changed in their home country during their absence. Events might have taken place that have shaped Australia that may have eluded them, and they may have achieved a level of seniority that does not exist here. “We know Australia can benefit overall from better connection with our diaspora and through Advance we help facilitate that, by celebrating and engaging our expats and encouraging them to remain connected, to each other and to Australia.”

About the survey The research was commissioned by Indeed and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 440 Australian returned or returning expats and 331 recruitment decision-makers aged 18+. Surveys were distributed throughout Australia and to Australians abroad. The survey was conducted online amongst members of a permission-based panel and Advance’s internal database, between 29 April and 30 May 2019. Read the full report here: au.indeed. com/hire/returning-expats-report/ Reproduced courtesy of Advance.org

Key Findings 1. Businesses and recruitment decisionmakers’ unintentional disregard is effectively locking expats out of returning to the Australian jobs market. In fact, 65% of all respondents believe that Australian businesses are creating an environment that discourages Australians working overseas from returning. 2. A third (34%) of returned or returning expats aren’t even landing an interview for a potential role where their skills precisely match the job requirements. A quarter (24%) are landing multiple interviews for various roles, and yet miss out on being offered the job. 3. While nine in 10 (89%) of recruitment d e c i s i o n - m a ke r s co n s i d e r t h a t managing projects across multiple countries is a positive experience on a job application, a third (32%) of them are reluctant or cautious to hire a returned expat for an Australianbased role on the basis of perceived cultural difficulties, most commonly the potential delay in ‘settling in’ to a role. 4. A third of recruiters (33%) think that returned expats misjudge their earning power in Australia and the perception that they have a self-inflated sense of skills and experience is the most commonly held belief among half (45%) of recruiters, who think returned expats expect a higher salary. 5. The situation for some is so challenging, that some returned expats are packing their bags and returning overseas because their international experience is not valued (67%), or because there are fewer suitable roles in Australia (65%). Two-thirds (67%) of returned expat Australians have considered packing up their bags and leaving Australia again to get the right role.

Australia Focus

Growth roadmap for SMEs By Drew Waters, Director of Strategic Partnerships, Asialink Business

or decades now, the story of Asia’s remarkable growth has been on the horizon for Australian and other international businesses.

New research by Asialink Business sponsored by AustCham platinum patron, the Commonwealth Bank (CBA), found that while Australian businesses are more aware than ever of the growth opportunities offered by markets in Asia, most are struggling to convert this into financial outcomes. The research studied the Asia strategies of 94 companies across five critical segments of the services economy that hold significant future potential for engagement with Asian markets. The Asialink Business CBA survey and Activating Asia report revealed that 80% of surveyed Australian businesses have Asia on their radar. But more than half of these businesses (55%) generate less than 5% of their annual revenue from Asian markets. In particular, Australian small and medium businesses (SMEs) are holding back. Although SMEs now account for over 99 percent of all Australian businesses by employee size (that is, businesses with under 199 employees), only 7% of Australian SMEs are engaging in international trade as exporters.

Strategies for success So, what’s needed to bridge these gaps and translate awareness of the opportunities in Asia into meaningful business outcomes for SMEs? At a practical level, it’s valuable to look at the numerous stand-out businesses that have achieved success in Hong Kong or other Asian markets, and draw-out the valuable lessons they offer other SMEs looking to activate their Asian growth strategies. Early this year, Asialink Business was very proud to sponsor the SME category of the AustCham Australia-China Business Awards, held in Hong Kong in May. The category winner, Sterline Racing, is a niche SME that designs and installs premium racetrack equipment. They have a great story to tell about the importance of understanding and adapting to the needs of their customers, which include the Hong Kong Jockey Club. “It’s about understanding the customer, understanding your industry, and offering your customers what they need, not what they want,” says Sterline’s Managing Director, John Fargher.

cont P.13 October 2019

Australia Focus It’s about understanding the customer, understanding your industry and offering your customers what they need, not what they want

cont from P.12

In fact, understanding the needs of your local customers, and customising your products and services to evolving consumer tastes, was one of the top three common traits of businesses that have expanded successfully into Asia, according to the recent Asialink Business CBA survey. The results of the survey (and a stocktake of the common characteristics of high achievers) found that you can’t win over Asian customers unless you understand and continually customise for their fast-changing tastes: Businesses that tailor their product and marketing earn 63% more on average than those that sell the same offering using the same product offering and marketing. Likewise, the research found that for SMEs looking to crack Asian markets, it’s essential to spend time on the ground. 33 per cent of Australian businesses that earn more than 5 per cent of their revenues from Asia undertook in-country visits at least once a month. The third ‘success factor’ was the need to embed skills for success. Businesses that invested in building, retaining and developing Asia capable teams are significantly more likely to achieve financial results. For example, organisations that included Asian language capabilities or experience in Asia as a job prerequisite earn 64% more revenue from Asian markets than those organisations that don’t mention these skills. Roadmap for growth Despite the current ripples in the global economy, the Asialink Business CBA survey also revealed that overall business sentiment towards Asia remains positive. The Greater China market continued to be the most attractive destination for participants.

These opportunities will be well known to established Australian and international businesses in Hong Kong and Greater China, even in spite of the ongoing demonstrations in Hong Kong this year. Take the Greater Bay Area (GBA) initiative as an example, where the opportunities for Australian SMEs and other businesses are broadening. Encompassing 71 million people, with a combined GDP of $US1.6 trillion, the GBA is rapidly becoming one of the most open and economically vibrant regions within Greater China. The scale and pace of the transformation underway in the GBA makes understanding the initiative essential for any Australian business seeking to navigate Greater China’s contemporary economic landscape. Fortunately, there are now more tools and resources than before that can help SMEs to build and expand their roadmap to Hong Kong, Greater China, and beyond. These range from the recent suite of new free trade agreements, to assistance offered by AustCham and government organisations like Austrade. Asialink Business, for example, offers complementary business guides, Country Starter Packs, to support SMEs and others to grow in these markets, along with capability building and strategic advisory services. Armed with these collective resources, tools and insights, SMEs can now be better prepared to navigate their way in new Asian markets and activate their growth strategies. And the course should be particularly clear for those prepared to invest in building an Asia capable team, spending time ‘on the ground’ and understanding how to tailor products and services to the rapidly evolving tastes of Greater China’s savvy consumers. See page 28 for Hong Kong Government SME grants event.

Industry Insight

What it takes to bridge the digital transformation gap in Hong Kong By Matt Lough, Global Head of OTT, Telstra

n Australia and Hong Kong alike, many of the best ideas have been hatched in coffee shops.

That’s especially true when it comes to tech innovation. For example, Hong Kong’s latest unicorn, real-time payments platform Airwallex, was created when its founders began struggling with cross-border purchases of coffee cups and labels for their Melbourne café. Their fintech start-up, which moved from Australia to Hong Kong in 2018, set out to solve those problems with technology. The success of their API-based solution is represented in the over US$204 million capital raised to date. And it’s not just our shared love for coffee that is prompting change. Businesses of all sizes are disrupting markets and industries with new models, products and services – or they are being disrupted themselves. IDC estimates the economic value of digital transformation to be worth US$19 trillion, or more than 20% of global GDP. Transformation on APAC’s agenda The Asia Pacific region is at the centre of these changes. According to IDC, 40 per cent of organisations in Asia Pacific are making the strategic, organisational, technology, and financial decisions to digitally transform in the next few years. That’s why the question is no longer about whether your organisation is digitally transforming. The question is how is your organisation digitally transforming. Here in Hong Kong, there is no simple answer to that question. According to Forrester, the majority of local businesses remain

at the early stages of their digital transformation journeys. While two-thirds of Asia Pacific decision-makers report that their firms are undergoing a digital transformation, the level of digital maturity varies considerably. A deeper understanding of Hong Kong’s digital priorities That’s why we wanted to better understand how business leaders in Hong Kong and the rest of the world are making digital transformation decisions. Telstra’s Disruptive Decision-Making report found that businesses in Hong Kong are aware there is more to do to see success in their digital transformation journeys. Hong Kong lags the global average when it comes to digital maturity – just 14 per cent said they were well established on their digital transformation journey, compared with 21 per cent globally. A reason for this may be because local organisations are relying too heavily on technology alone in their digital transformation implementations. We asked organisations around the world about their ability to deliver digital transformation through their technology understanding, people, processes and partnerships. What we found was that companies in Hong Kong are focused on delivering the “digital” side of digital transformation – respondents said their abilities relating to “technology understanding” was almost twice as strong as the other three areas. This reliance on technology alone is having real impacts on the success of digital transformation in Hong Kong. cont P.15

October 2019

Industry Insight cont from P.14

While 81 per cent of organisations in Hong Kong are increasing IT spending in the next year, they are not seeing an associated improvement in performance across their top digital priorities. The top five digital transformation priorities in Hong Kong indicate a strong focus on security and optimising existing technology. Yet, our research showed Hong Kong organisations see a significant gap between their top digital transformation priorities and their performance in the same areas. How Australian businesses in Hong Kong can succeed in digital transformation With Gartner predicting IT spending in Hong Kong to reach HK$147.98bn in 2019, digital transformation looks set to remain a top priority. So, how can Australian organisations set themselves up for success in Hong Kong?

Our Disruptive Decision-Making study shows that the digital transformation gap can be bridged by: • Empowering people through skills and talent; • Building effective partnerships where collaboration and sharing best practice provide new impetus and expertise that can’t be found elsewhere; • And, strengthening business processes with access to relevant data to support good decision-making for better outcomes. These best practices are associated with organisations that have successfully transformed themselves digitally, and which rate themselves highly in terms of digital maturity. Why not grab a cuppa and have a think about where you can strengthen your digital transformation journey?

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LEGO - the Original Block Chain You’ve cursed them when you’ve stepped on them, but the ubiquitous brick has been a source of creativity for generations of children… and adults.

ho is the largest tyre manufacturer in the world? LEGO (4.1 billion a year). The world’s largest population group? LEGO’s mini figures (4.7 billion). And with six LEGO bricks there are 915 million possible combinations.

In an interactive presentation - guests had 45 seconds to build a duck with six bricks – LEGO’s General Manager for Hong Kong, Macau, and Taiwan, Troy Taylor, shared the 86-year old company’s story, its success and the challenges facing the brand. At the heart of the business are children. Troy estimates LEGO now reaches 100 million youngsters and aims to increase that to 300 million by 2032, the company’s 100th anniversary. “We have a saying, children are our role models. We get lots of letters from them giving us ideas for products. You will be the most creative in your life between three and eight years old, that’s why we get children to help us design our products, because during that period you haven’t been institutionalised with education, you don’t really have any barriers,” he said. “The toy industry is one of the toughest around because children don’t have loyalty to brands. If we can catch them between the ages of three to eight which is their most creative time they will usually stay with us to become adult fans of LEGO.” And adult fans of LEGO (or AFOL) are big business. Hong Kong has the largest number of AFOL in the world with 110,000 registered who on average spend US$3,500 a year on products. No surprise then that some of the best performing stores are also here with three out of the five certified stores in the city the highest revenue earners in the world.

The toy industry is one of the toughest around because children don’t have loyalty to brands

“There are a lot of skills that are used when you are building with LEGO. The fact is about 65% of children today will end up in jobs that have not been created. And through LEGO you can see some of the skills, cognitive, social, physical, creative, and when it comes to Asia some of the social skills are very important because children are really forced to study and have less time to play. However, when you build with LEGO it’s quite a social thing, learning to communicate, learning to problem solve so that’s why we think our brand can be quite big in Asia and something parents will find valuable for their children.” While traditionally perceived as a boy’s toy, the company is developing products targeting girls. “There’s definitely a huge demand out there for it and a huge opportunity for us. The challenge in Asia is less than 10% of toys sales are for girls. In Australia it’s 60/40 – 60% for boys. In Hong Kong it’s only 7% [for girls].” Innovation is key to keeping the brand relevant and it has been introducing augmented reality, robotics and coding to products. They are also looking to innovate the material the toys are made from. “The biggest challenge for LEGO is that our brand is made out of plastic. We are currently working on sustainable materials to

LEGO is now the number one toy company in the world as far as revenue is concerned, earning US$5.6 billion last year. It also ranked number two, behind Rolex, on the 2019 Reputation Institute RepTrak®100 survey. The company donates 25% of profits each year to children’s charities, hospitals, and underprivileged families. In Hong Kong LEGO supports Save the Children. It has also been championing digital child safety by creating an app, LEGO Life, to allow for a safe environment for children to share their creations and receive positive feedback. cont P.17 October 2019

cont from P.16

make the brick out of. By 2030 all LEGO products will be made out of sustainable materials. This is one of the biggest threats to our brand moving forward as there is a real movement out there now.” Through investment in renewable the company has been able to offset all the energy consumed in its factories, stores, and offices. This year it launched a range of products out of a plant-based plastic sourced from sugar cane. ‘ The LEGO Pla y E x perience: Child r en’s imagination feeds our innovation’ was part of the AustCham Macquarie Business School CEO MACQUARIE Forum Series, hosted by the AustCham Young BUSINESS SCHOOL Executive Committee.

MACQUARIE BUSINESS SCHOOL

25 years delivering MBA excellence

he Macquarie Business School, Macquarie University has been a longstanding MBA provider in Hong Kong with this year marking its 25th Anniversary in the territory. With faculty teachers shared between Hong Kong and Australia, the flexible and accessible degree ranks as the top one MBA in Australia for career progress (The Financial Times Global MBA rankings 2019) and sees thousands of students gain excellence in management education in Hong Kong.

To commemorate the 25th Anniversary of the delivery of the program in Hong Kong, through a partnership with The Hong Kong Management Association, Macquarie University is offering an Academic Grant of 25% tuition fee reduction to students who commence the MBA program. Not only is this available to all successful applicants admitted to the program, in addition an Early Bird Offer of HK$2,000 is available for applications submitted by November 22, and a further HK$250 application fee waiver to attendees of the Information Night on November 5. For more information visit www.hkma.org.hk/mgsm

Member Comment

‘Angry’ Australian Technology Tackling Plastic Waste AustCham member and Managing Director at Design for Manufacture, Philip Sanchez, outlines a technology developed in Australia that is changing how the world can recycle plastic and help developing countries

Visit to Sydney pilot plant with Timor Leste in May 2019 (Philip front row, second from left)

he rise in global awareness about the issue of plastic waste is nothing short of astonishing. The problem itself has been evident for a long time, but the spark happened only recently and suddenly everyone is talking about it. This might seem to be a good thing, but moving forwards sensibly requires careful consideration. Ironically, efforts to replace plastic with alternative materials often make the problem of how to deal with waste worse and not better. This is because these different materials then have to be separated from the other materials in a recycling process, otherwise the new material can become a contaminant that makes the recycling process more difficult. Meanwhile, calls for ‘Zero Plastic’ become more strident, even though our global economy has had plastic integrated within it for decades and unwinding all that is almost impossible. Moreover, perhaps it’s not desirable1. Plastic is often very much the right choice in terms of climate impact, and alternatives are much more costly, which would then disadvantage those with less disposable income. There are technologies that have been around for a while that can convert certain types of plastic into fuel. In general, these use fire – high temperatures, to break down the long plastic molecules into shorter ones. Efforts to do this around the world are now widely reported and often claimed as hope for the future, but unfortunately the process is very restrictive on the plastics that are fed to it. So polyethylene (PE) and polypropylene (PP) are ideal, and some polystyrene (PS) can be tolerated, but the plastic that makes water bottles (PET) is a big no-no. If PET gets into the system it gums up the works. At the end of the day, the restrictions on types of feedstock seriously limit what can practically be recycled.

Angry water Enter a new technology, one that is far less sensitive to the various types of plastic and all the possible mixtures in modern-day packaging. The new technology spun out of the University of Sydney and developed by Sydney-based Licella uses water to break up the plastic molecules. It’s not just ordinary tap water however, this is supercritical water, water in such a state that the molecules are so angry that they tear apart the plastic molecules. How do you make water molecules angry? It turns out you can do this by heating them up to 500 C and pressurizing them to 200 atmospheres (perhaps it’s not surprising they get angry really, wouldn’t you if someone tried to do it to you?). The technology is called Catalytic HydroThermal Reactor, or Cat-HTR for short2. In 2016, London-based Armstrong Capital invested in the technology to develop a commercial plant design and went into a joint venture with Licella to create Mura Technology. The ability of Cat-HTR to process a very wide range of plastic types and tolerate contaminants such as cardboard, aluminium, or smears of food. The Cat-HTR technology picked up an award in New York recently3. Moreover Cat-HTR provides a clever solution to waste in developing countries where tolerance to feedstock type and quality is much more important. A project is now underway in Timor-Leste (formerly known as East Timor) to build a Cat-HTR there. The process is so efficient that revenues (from sales of oil) from the operation are sufficient to put a reasonable price on plastic waste. Once plastic has a price on its head (so to speak) then people will get to work finding it, cleaning up the environment in Timor in the process – we estimate we can create much better livelihoods for thousands of people. This project is called RESPECT and is entirely a not-forprofit endeavour. The MOU was signed between Mura and the Government of Timor-Leste at the University of Sydney in May 20194. Now comes the hard work of planning, engineering, raising funds and everything else we need to ensure the success of the project. Licella pilot plant in Australia

https://www.economist.com/international/2018/03/03/the-known-unknowns-of-plastic-pollution https://renewelp.co.uk/news/professor-maschmeyer-explains-the-circular-economy-potential-of-cat-htr/ https://sustainablepackaging.org/flexpack-recovery-challenge-winner/ 4 https://sydney.edu.au/news-opinion/news/2019/05/17/timor-leste-aims-to-become-world-s-first-plastics-neutral-countr.html 1

Member Comment

Hong Kong’s Compliance Reform – One Year On What has been the impact of new compliance regulations on Hong Kong’s attraction as a jurisdiction? Primasia Corporate Services’ Business Development Director Teresa Tam (left) provides this review.

n 1 March, 2018, an enhanced compliance regime came into effect for Hong Kong companies to counter money laundering and the financing of terrorism. A summary of these changes was included in our article in AustCham News (Issue #203) one year ago. What has been the impact of this stronger regulatory environment on Hong Kong’s attraction as a jurisdiction? Firstly, the number of new Hong Kong incorporations in 2018 (of which only 10 months was post-reforms) fell by 5% versus 2017 (to 152,000). Bare figures give only part of a story, but the drop-off in new incorporations would seem to be attributable – at least partly - to the tighter compliance requirements. Next, the first quarter of 2019 showed a continuation of this trend with new incorporations tracking 15% lower than in 2018, at only 130,000 new companies (annualised). The number of companies remaining on the Register of Companies fell by nearly 1% each month in this period. However, in the second quarter – and even against the escalating trade war and increasingly adverse international business sentiment – activity revived to track back at the rate of 150,000 new companies per year, and around half the

number of companies “lost” in the first quarter were recovered. This seems to represent a strong recovery by Hong Kong as a jurisdiction. More recently, the Financial Action Task Force (FATF) has published its Mutual Evaluation Report of Hong Kong, commending Hong Kong’s efforts in combating money laundering and terrorist financing. Hong Kong’s AML/CTF regime has been assessed to be compliant and effective overall, making it the first jurisdiction in the Asia-Pacific region to have achieved an overall compliant result in the current round of FATF evaluation. In short, Hong Kong has worked through an upgrading of its regulatory environment and passed international peer review, even against soft international business sentiment, with little effect on its appeal as a jurisdiction. Have recent months’ social disruption affected incorporation activity? In short, not yet, but perhaps it’s too early to tell. However, incorporations in July held up at 12,000 new Hong Kong companies (higher than June) and, with the rebates, subsidies and lower fees offered recently to SMEs by HSBC, and with the government’s HK$19 billion stimulus package announced in August, any adverse impact will be softened.

Year round Mates’ Rates: Member Benefit Program 2019

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

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

Island Shangri-La Hong Kong: 15% discount on regular-priced items

This provides exclusive marketing opportunities for members to promote their company’s products and services, replacing the month-by-month offer which was limited to only one company’s benefit or discount. More details on our website. Terms and conditions apply. www.austcham.com.hk/membership/ membershipecardandspecialoffer

Membership eC October 2019

ard

Marco Polo Hotels - Hong Kong: 15% off at Cucina, Cafe Marco, Three on Canton and add@Prince Lifestyle Expat Living Free one year subscription Travel Virgin Australia: 15% off selected business and economy class fares Hotels Hotel VIC: Enjoy 20% discount on Food & Beverage at Hotel VIC on the Harbour Ovolo Hotels: 20% off on the Best Available Rate

Focus on Education

A Pathway from Kowloon Tong to Montreux Annie Marr from the Class of 2018, Australian International School Hong Kong, is now studying hospitality in Switzerland. She shares her experiences so far and plans for the future 1. Tell us a bit about your University/School, your course and what you are currently studying. I am currently studying for my Bachelor of Arts in International Hospitality and Events Management at the Swiss Hotel Management School. It is one of the universities from the Swiss Education Group. The Swiss way of teaching hospitality focuses on both practical and theoretical studies. Students are also required to attend mandatory internships before graduating the course. The campus is a former traditional luxury Swiss Palace located in a small village named Caux just above Montreux. To live and study in an environment that offers all the facilities for hands-on experience is the best way to prepare for the future. 2. What were the main factors in deciding to study in the hospitality field A key factor for me to decide studying in the hospitality field is the fact that it is one of the fastest-growing industries and also one of the most employable sectors. Another factor would be the ability to work in a multicultural environment and the ease of mobility to work in a different country. 3. What do you enjoy most about studying in this field and why do you think it is important? I enjoyed participating in group projects such as starting a restaurant concept from scratch. Being able to work well in a team and respect others is a crucial aspect that many employers are looking for. Although I found the practical part

of the studies challenging, (working as a waitress in the French fine dining restaurant on campus) it was all worth it in the end when you receive a “Thank you” and a smile from your guests. That is why I chose this people-oriented industry. 4. What career path do you hope to take following your studies? I hope to become an event manager in developing and organising festivals, weddings or conventions preferably in Asia or Australia. The hospitality industry offers endless career path opportunities, becoming a restaurant manager for the food and beverage sector is also one of my options. I would like to mention the fact that a lot of people might have the idea/stereotype that it is glorious to work in a 5-star hotel, but it is not easy. You have to start from the bottom and work your way up, it all comes down to experience. People who work in this industry will also often have to give up their holidays and work while others are celebrating.

New Home for Australia China Business in Shanghai

ustCham Shanghai has announced, in partnership with ANKEN Group, the opening of Australia House as a dedicated home for Australia-China business in Shanghai. Australia House is a stand-alone sevenstorey building in downtown Shanghai that provides physical offices, co-working spaces, food and beverage outlets, retailers, event space and advertising, showcasing oppor tunities for the Australia-China business community. Australia House will harness Shanghai’s position (as both China’s commercial capital and Australia’s number one investment destination in China) to act

as an entry and collaboration point for Australian and international businesses in Greater China. Address: 80 Pingwu Road, ChangNing District, Shanghai. Transport: Close Metro access and bus access (metro lines 11, 10 and 2 and buses 76, 48, 113, 138, 328, 923, 71, 44, 57). Green-Building: The building has been awarded a Silver Medal by Shanghai’s Green Building Bureau for its sustainable and health-conscious design. Opening Date: Late 2019 (tenants may begin their fit-outs from September 2019 onwards).

Provided by the HKTDC

12 Hong Kong International Wine & Spirits Fair returns in 2019

his year’s event hosts more than 1,000 leading wine and spirit exhibitors from over 30 countries and regions. Representing vibrant wine cultures from around the world, participating international group pavilions and trade organisations include Sichuan province of China, the returning and expanded Czech Republic pavilion, and the popular France pavilion that includes Business France, Bettane+Desseauve and Syndicat Général des Vignerons de la Champagne. Pavilions from Germany, Japan and Spain are joined by Veronafiere and the Italian Trade Commission, Confederação dos Agricultores de Portugal, the Southern United States Trade Association, and many others. After an exciting debut last year, The World of Olive Oil zone is back by popular demand as one of the primary attractions at the Vinitaly pavilion. Celebrating some of the finest olive oil varieties anywhere in the world, this exhibit joins a spectacular line-up of some 70 events that visitors can experience including grand tastings, masterclasses, industry seminars, demonstrations and more. Public Day The fair will be opened to the general public by ticket admission on the last day, providing exhibitors and trade buyers an ideal platform to gauge consumer tastes and preferences during an action-packed day of tastings, master classes and seminars. Highlighted events Asia Wine Academy Theme: Looking into Variations of Cabernet Lecturers: Jeannie Cho Lee MW and Lu Yang MS Wine Industry Conference Theme: Millennial Market Programme Advisor and Moderator: Debra Meiburg MW Fair details https://event.hktdc.com/fair/hkwinefair-en/HKTDC-HongKong-International-Wine-and-Spirits-Fair/

October 2019

Intern Program

Win Win – AustCham Intern Program AustCham’s Intern Program is a great opportunity for host companies and interns. Oreana Financial Services, one of our member host companies, and intern Rue Shetty share their recent experience together. Isaac Poole, Chief Investment Officer “Having Rue on board meant that we could push forward on some critical projects within the business. Rue managed one key project herself, delivering in line with what I would expect from a first or second year graduate. “Everyone at Oreana loved having Rue’s fresh perspective around the office, and some of her suggestions are still being rolled out in the investment team. Importantly, Rue contributed beyond the technical aspects of work. She joined us in our social events and seminars and everyone at Oreana was sad to see her leave.”

Rue centre and Isaac right

The AustCham Hong Internship program was a pivotal and unforgettable experience Rue Shetty, Intern “The AustCham Hong Kong Intern Program was a pivotal and unforgettable experience. I undertook the program as an undergraduate economics and finance student, with little professional background in either industry, and no experience working overseas. “From the outset, the AustCham team were swift to place me in a private wealth firm, which strongly aligned with my interests. The firm itself provided me with a unique opportunity to develop my own work, for which I received

ongoing support and mentorship. In addition, through working with the investment team, I gained a wealth of global industry knowledge. “Along with the firm’s guidance, AustCham provided us with ongoing support. We were encouraged to connect with other interns and professionals, attend various events throughout the placement and immerse ourselves in the Hong Kong culture. This experience has allowed me to develop both professionally and personally, as well as provide a platform to embark on a global career in finance.”

Public Policy Updates Hong Kong 2019 – 20 Policy Address The Australian Chamber of Commerce in Hong Kong has submitted its recommendations and comments on your behalf for the Hong Kong Chief Executive’s upcoming 201920 Policy Address. The following topics were highlighted:

• Transforming Hong Kong’s construction sector through innovation and digitisation; attracting young talent and enhancing international collaboration and • Board Representation and Gender Pay Parity • Ageing Population and Eldercare Burden

• Uphold Hong Kong’s unique position and international reputation • Retain Hong Kong’s status as leading financial services centre • Greater Bay Area opportunity • Critical support for SMEs • Improving the economy by improving housing affordability • Reimagining the Hong Kong Harbour for all of Hong Kong – a potential unifying symbol for the city • Moving Hong Kong towards a sustainable future • Accelerating innovation and digitisation

Hong Kong-Australia FTA status Since the submission, Consul General Michaela Browning returned to Australia to appear before the Parliamentary Joint Sub Committee on Treaties (JSCOT) to argue in favour of the Free Trade Agreement (FTA) and Investment Agreement, as it is in Australia's interest to reinforce the unique freedoms and values that Hong Kong offers Australia and Australian business. Further, JSCOT has concluded that the FTA is in Australia's national interest on this basis. Read full media release here:

InterChamber Event

Decarbonising Hong Kong – Energy, Transport and Consumption

ong Kong should increase its supply of zero-carbon energy, cut down on car trips and reduce meat consumption. These are some of the suggestions floated by experts on how to decarbonise the city at a seminar as Hong Kong policymakers embark on the process of formulating a long-term decarbonisation strategy up to 2050. Joseph Law, CLP Power’s Senior Director of Planning and Development, and Simon Ng, Business Environment Council’s Director of Policy and Research, discussed the strategies that the power and transport sector could adopt to reduce emissions. Meanwhile, Edwin Lau, The Green Earth’s Founder and Executive Director, shared his insights on ways people can modify their habits to help reduce Hong Kong’s carbon footprint. The Council for Sustainable Development is undertaking a public engagement exercise to help draw up a longterm decarbonisation strategy for Hong Kong. AustCham submitted its response to the council, contributing towards Hong Kong’s progression for a greener city. Our thanks to co-hosts the American, Canadian and British Chambers of Commerce and the Hong Kong General Chamber of Commerce.

October 2019

Committees in Action - Construction, Property and Infrastructure

Briefing on Victoria’s multi-billion dollar projects

ustCham’s Construction, Property and Infrastructure Committee was delighted to host a roundtable meeting with Dr. Kevin Doherty, CEO of Office of Projects of Victoria. Kevin took committee members through the large-scale infrastructure projects underway in Victoria, ranging from a large level crossing upgrade program to major investment in the substantial upgrade of Melbourne’s underground rail network. He also shared his views on how project monitoring and planning play key role in delivering major projects and improving project outcomes. Thank you to Michael Camerlengo, Partner, Infrastructure & Real Estate at KPMG for making this happens and to KPMG China for hosting the meeting.

World-class cultural hub for our city

e heard from Duncan Pescod, CEO of the West Kowloon Cultural District Authority, on the planning and progress of one of the world’s largest cultural quarters. From culture, to arts, to design, Duncan shared his vision for West Kowloon as a thriving creative hub and highlighted that the cultural and creative industries are the sectors to invest in for the future. The District aims to blend art, education and public space to showcase Chinese heritage, along with contemporary art and performance. With five major projects (see page 26 for more on M+) underway, these developments include the Hong Kong Palace Museum, M+ museum, two pavilions and a theatre. Venue sponsor:

Committees in Action - Women in Business Network

Summer Drinks: the 'Spirit House' of M+ The rain held off for this year’s summer drinks at the residence of the Australian Consul-General to Hong Kong & Macau with guest speaker Museum Director of M+ Suhanya Raffel. Suhanya shared her path to M+, the importance of preserving art, and her work for the collection of M+, which is due to open late 2020.

Suhanya has more than 30 years of experience as a museum curator and leader, including time as the Deputy Director of the Art Gallery of NSW. Over canapés and cocktails, she shared her views on the role of the arts in shaping Hong Kong’s identity, how cultures bridge global divides and her personal journey in the arts from Sri Lanka to Australia and now Hong Kong. A special thanks to the WIBN sponsor Ambition and to the Australian Consul-General to Hong Kong & Macau Michaela Browning for generously hosting the event at the residence Women in Business Network sponsor:

October 2019

Committees in Action - Small Business Network

Closing the Deal

ips for closing that all important deal were shared by an industry expert, Sandy Russell, Vice President, Sales & Marketing at Wharf Hotels at our sold-out network event. An international hotelier, Sandy shared her top tips on how to close a deal, the importance of keeping connections, different approaches to Asia and western markets, and even when to walk away from a deal based on her two-decades of experience. The event was presented by our AustCham Small Business Network. A special thanks to network sponsors Bank of China Hong Kong and Primasia Corporate Services Limited (PCS), and to our venue sponsor Leighton Asia for their support. Network sponsors:

Venue sponsor:

Committees in Action - Small Business Network

Hong Kong Government funding for SMEs

mall and medium-sized enterprises (SMEs) are the backbone of Hong Kongâ&#x20AC;&#x2122;s economy. The Government has all along been providing different types of support to SMEs through various Government departments and quasiGovernment bodies. To counter the challenging economic environment, the Government recently announced a package of measures to support enterprises, especially SMEs. We heard from Mr Kaho Ng, Principal Trade Officer of Trade and Industry Department, at the EMR Capital office, on the funding schemes and discussed accessibility of the support services.

For more information see www.sme.hktdc.com

Network sponsors:

Geopolitics for a brighter economic outlook

hief Economist and Managing Director of Economics from the Commonwealth Bank of Australia, Michael Blythe, recently shared his outlook on economic growth for 2020. Despite elevated concern surrounding a global recession, Michael highlighted that the most persistent worry and greatest risk to the economic outlook is the US-China trade war. Unfortunately, we have already seen a negative impact on business and consumer confidence, however Michael explained that the geographical advantage Australia holds, has the potential to support long term economic growth. Some factors attributing to this include resource exports, infrastructure spending and rising Asian incomes. Thank you to the Commonwealth Bank of Australia for sponsoring the event

October 2019

New Members Changes to the Board AustCham Hong Kong is pleased to announce the appointment of Andrew Whitford to the Board of Directors. A n d y i s M anagin g Director - East Asia for global advisory and campaign firm C|T Group. He has over 30 years’ experience working in financial and professional services firms in London, Australia, mainland China and Hong Kong. Previously Andy was the Chief Executive of the Hong Kong branch and Regional Head for Greater China for Westpac Banking Corporation. The Chamber would like to extend its gratitude to the three recent departing Board Directors - Sam Guthrie, Deborah Leung and Gautam Dev - for their service and support and we wish them well in their future endeavours.

Platinum Patron CBA Alicia Hui KPMG Serene Seah-tan Telstra Carl Fernando Helen Ng Matt Lough Peter Woo Reagan Barry Corporate Patron PwC Peter Po-Ting Li Corporate Member 7Cento HK Enrico Dellú Griffith University Andrea Haefner

Kwong Tai Hong Sealand Products Co. Ltd Rainbow Lui The Oval Partnership Lawrence Chan Phillip Young Trade & Investment Queensland Julia Herries Individual Member Shane Read Bloomberg LP Alisha Fernando REA Hong Kong Management Kenneth Kent Young Executive Verus Global Ltd Jackson Meyer Wilkinson Murray (HK) Limited Daniele Albanese

Corporate Profile Aussie Meat

www.aussiemeat.hk Owned and operated by Australians, Aussie Meat strives to deliver high restaurant quality, grass-fed, o r g a n i c q u a l i t y, naturally farmed, Courtney Price, free-range, hormone, Director and antibiotic premium fresh meat and ocean-catch seafood from Australian and New Zealand farmers, jet fresh to your home or office. How long have you been in Hong Kong? I have been a resident in Hong Kong 11 years, however for the first 5 years Hong Kong was more of a base as I travelled a great deal with my husband during that time. When did you start up Aussie Meat? I started Aussie Meat in 2018 as an

eCommerce business focusing on providing fresh Australian and New Zealand produce in Hong Kong, I decided to do this after I read an article which stated that less than 5% of fresh meat produce consumed in Hong Kong came from Australia. How large is your business? One full-time employee and t wo part-time employees as I partner with companies to do my SEO (Search Engine Optimisation) and cold chain logistics. This allows me to scale the business very quickly with most of the processes automated behind the website. What do you find is the most popular product your HK customers order? Mixed BBQ packs, Bulk buys and Flash Sales are the most popular as they offer a great selection of meat and seafood at a discounted price.

EVENTS UPDATE OCTOBER AT A GLANCE… Thursday, 17 October, 12:00pm – 2:00pm Mind, Body, Business Series: Mental health in the workplace KPMG, 8/F, Princes’ Building, 10 Chater Road, Central Friday, 25 October, 12:15pm – 2:00pm Digital challenger and virtual banks: A game changer, or more of the same? 30/F, Standard Chartered Bank Building, 4-4A Des Voeux Road Central Thursday, 31 October, 12:00pm – 1:30pm InterChamber Event: Joint Business Community Luncheon with Chief Executive of HKSAR Hong Kong Convention and Exhibition Centre, 1 Expo Drive, Wan Chai

NOVEMBER AT A GLANCE… Thursday, 28 November, 12:00pm – 2:00pm The Year Ahead: 2020 Sponsored by Baker Tilly The Hong Kong Club, 1 Jackson Road, Central

DECEMBER AT A GLANCE… Tuesday, 3 December, 6:00pm – 9:00pm Christmas Mix at Six The Murray Hotel, 22 Cotton Tree Drive, Central

Mentor Program

Speed Matching Event

ur 2019-20 AustCham UOW Mentor Program kicked off with a ‘speed matching’ event. Mentors and aspiring mentees joined us at WeWork in Sheung Wan for an intensive speed matching session. Mentees spent just two minutes with each mentor to see who they would like to be paired with. It was a great way to network and get to know a high calibre of young professionals and senior executives from both Hong Kong and Australia. Thank you to the University of Wollongong, our program sponsor for their continued support. This event was also kindly supported by Wine Brothers Hong Kong, who are providing CAPI drinks for each event. CAPI is a premium brand of sparkling soft drinks, juices and mineral water from Australia.

October 2019

AustCham UOW Mentor Program 2019-20 Tuesday, 12 November

Purpose, values and motivations

Tuesday, 26 November

How to have difficult conversations

Tuesday, 21 January

Leadership

Tuesday, 18 February

Workforce of the future

Tuesday, 10 March

Online branding

Thursday, 9 April

The benefits of giving back

Tuesday, 5 May

Graduation

Program sponsor:

Supported:

Mentor Program

uest speaker and past mentor Sally Dellow, Director of Dramatic Difference launched the 2019-20 Mentor Program with an interactive session highlighting the nuances of mentor-mentee relationships. Discussions flowed between groups around purpose and drive, whilst mentor-mentee pairs were also formally announced on the night. Thank you to Vanessa Bourne, Chief of Staff at UOW College Hong Kong for the continued support.

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

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

The Fred Hollows Foundation

The Hub

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

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

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

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