Britain in Hong Kong Sept 2012 by The British Chamber of Commerce

Britain

IN HONG KONG September 2012

Vol 27

www.britcham.com

No 7

Brand Britain

Not For Sale

Balancing Tradition and Modernity

GREAT Campaign

The Hong Kong Cleanup

Contents GREAT Campaign

Brand Britain

The Hong Kong Cleanup

4 Chairman’s Message 5 Brand Britain 8 Secondment of Employees to Hong Kong

22 An Olympic-sized Opportunity for Hong Kong 24 The Hong Kong Cleanup 26 All-inclusive Elephant Adventure

10 Balancing Tradition and Modernity

30 Upcoming and Past Events

12 The Benefits of Internships

32 Member Discounts

14 Opinion: Five Reasons Why Hong Kong is an Ideal Data Centre Hub for Asia

34 Member Get Member 2012

16 Hong Kong as a Transportation Hub

38 New Members

18 GREAT Campaign

39 Shaken Not Stirred

36 News and New Appointments

20 Leaving Home

Britain in Hong Kong Editor Sam Powney Design Winnie Li Lilian Yu Steve Mok Ken Ng Advertising Contact Charles Zimmerman Project Management Vincent Foe

Jointly Published by Speedflex Medianet Ltd and The British Chamber of Commerce in Hong Kong 1/F, Hua Qin International Building 340 Queen’s Road Central, Hong Kong Tel: 2542 2780 Fax: 2542 3733 Email: info@speedflex.com.hk Editorial: sam.powney@speedflex.com.hk Advertising: charles@speedflex.com.hk

British Chamber of Commerce Secretariat Executive Director CJA Hammerbeck CB, CBE General Manager Cynthia Wang Marketing and Communications Manager Emily Ferrary Special Events Manager Becky Roberts Events Executive Mandy Cheng Business Development Manager Phillippa Cook

Membership Executive Lucy Jenkins Accountant Michelle Cheung Executive Assistant Jessie Yip Secretary Yammie Yuen Office Assistant Sam Chan

Room 1201, Emperor Group Centre, 288 Hennessy Road, Wanchai Tel: 2824 2211 Fax: 2824 1333 Website: www.britcham.com

© All published material is copyright protected. Permission in writing from the Publishers must be obtained for the reproduction of the contents, whole or in part. The opinions expressed in this publication are not necessarily the opinions of the Publishers. The Publishers assume no responsibility for investment or legal advice contained herein.

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12年9月18日下午5:23

Chairman’s

Message The completion of the Olympics was quickly followed with a “back to school” atmosphere in Hong Kong. Miles of column inches have been dedicated to assessments of the competition, and of the opening and closing ceremonies. One positive message to draw might be the virtues of diversity. The London ceremonies were so different from Beijing’s. Instead of this being a cause for comment, favourable or otherwise, perhaps we should be saying “thank goodness”, when so much diversity is being lost in the ﬂat world of global marketing.

The event was also a useful reminder of London and Hong Kong’s shared history and their parallel roles in business aggregation in Europe and Asia. Neither city can take this position for granted. Our unique histories led accidentally but serendipitously to being in the right place, at the right time and with the right people. This is a position rarely usurped by a competitor but can be easily lost by too casual an incumbent. As we go “back to school” with a new administration, a new Legislative Council, and new political dynamics, the Chamber has to move quickly to get a good grasp of those dynamics and to ensure that its membership’s views are heard on how to ensure business continues to thrive. Over the autumn we will ensure that we take every opportunity to do just this. The deferral of the first Policy Address of C Y Leung may be useful in allowing the administration time to reflect on the Chamber’s feedback rather than simply rolling out policies from its election manifesto without time to reflect. The Chamber has advocated on many occasions the need to consider the impact of new legislation/regulation before bills are rushed through the legislature. The Competition Bill, now the Competition Ordinance, has been a good example. We will need to monitor its impact when the Competition Commission is set up and the Ordinance operative, and give members the opportunity to feedback concerns on its implementation. Finally as we go to press, our Consul General Andrew Seaton is working through a no doubt exhausting schedule of farewells. While Andrew’s role in Hong Kong over more than one tour has been widely praised, it cannot be said too often that he has not only undertaken his diplomatic role with exemplary courtesy and effectiveness, he has attended far more of our events and meetings than his diary should have allowed. We thank him for that and wish him and his family all good fortune back in London. He will be fondly remembered here in Hong Kong.

Nick Sallnow-Smith

Chairs of Specialist Committees Business Angel Programme Neil Orvay Asia Spa & Wellness Limited

Environment Committee Anne Kerr Mott MacDonald Hong Kong Limited

Logistics Committee Mark Millar M Power Associates

Small & Medium Enterprises Committee Kate Kelly K2PR

Business Policy Unit Tim Peirson-Smith Executive Counsel

Financial Services Interest Group Richard Winter Quam Limited

Marketing & Communications Committee Adam O’Conor Ogilvy & Mather Group

Strategic Supply Chain Forum Dominic Jephcott Vendigital Limited

China Committee David Watt DTZ

HR Advisory Group Brian Renwick Boyden Search Global Executive

Real Estate Committee Jeremy Sheldon Jones Lang LaSalle

Women in Business Committee Sheila Dickinson The Fry Group

Construction Industry Group Derek Smyth Gammon Construction

ICT IT Committee Craig Armstrong Standard Chartered

Scottish Business Group John Bruce Hill & Associates

YNetwork Committee Alison Asome

Education Committee Stephen Eno Baker & McKenzie

Britain in Hong Kong

C ove r S t o r y

Brand Britain

2012 was bound to be a notable year in terms of the profile of British business in Hong Kong. Notably, the 15th anniversary of the city’s handover fell in the short space between the Queen’s Diamond Jubilee and the London Summer Olympic Games. There was a curious moment during the Olympics, when Britain, China and Hong Kong each won a medal in the women’s keirin cycling race. Many commentators remarked that the ﬂaghoisting podium moment was strongly reminiscent of the handover ceremony. Perhaps underlying this was a vague sense that besides the major events and anniversaries, the public reaction towards Britain, not just in Hong Kong but in China too, has undergone a radical transformation.

from what everyone else is buying. They might be more interested in the underlying quality and less about the logo for example. This is what I call the ‘discernment curve’. That has really played to the benefit of a lot of British luxury fashion brands, many of which have been small, dedicated operations for over a hundred years. Having said that, some of our most successful brands, Jimmy Choo, Bill Amberg, etc. are actually very new. But as a whole, the British brands tend to be more interesting, more niche, and have a more quirky feel. I often say to people that within the UK we’re the best kept secret growth story that the UK has. British luxury is seeing a strong and sustained, year-on-year growth.’

At the same time that Hong Kong’s media focus has centred on issues surrounding the city’s Chinese identity, things British have never been so popular here. From designer clothes, to beers and spirits, to education and entertainment – British products are selling like hot cakes. ‘Brand Britain’, as it has recently come to be known, is a phenomenon whose reach extends far beyond Hong Kong. In mainland China and throughout the developing world, British luxury brands are doing a roaring trade.

So much for the luxury market. But Brand Britain seems to go further than simply the famous names or even products made in Britain. In every crowded market in developing cities around the world, one can see young people wearing Union Jack-emblazoned jeans and t-shirts, often etched in garish pinks or ‘accentuated’ with sparkles. It is at moments like these when one might be forgiven for thinking that Brand Britain has got a little out of control. Yet this development of the national symbol is not entirely an accidental one.

Arguably, no-one understands this demand better than the Walpole Group, which represents more than a hundred British companies including many of the most iconic British brands. Guy Salter, Deputy Chairman of Walpole, distils the recent success of the British luxury industry, ‘Probably about 15 years ago, the British brands began to gain a larger proﬁle. Part of the reason for this is the evolution and sophistication of the luxury market as a whole. As consumers get rapidly more sophisticated, a significant section of them want something different

As the name would suggest, Brand Britain has a national as well as a commercial intention behind it. The term found currency in the lead-up to the Olympics, as politicians and government advisers sought to harness together every ounce of Britain’s world renown in order to make a successful event. It would not be misleading to see Danny Boyle’s opening ceremony in that light. Including the Queen and James Bond in a helicopter stunt was slick as well as amusing.

C ove r S t o r y

Events in Hong Kong are following a similar pattern. November looks set to see a huge UKTI trade delegation visit Hong Kong as part of the GREAT campaign. The focus of the week of events, exhibitions and seminars will be creativity, especially looking at fashion, luxury, design and craftsmanship. Times Square has hosted a major UK festival, sporting a London double-decker bus, a traditional-looking English cottage and a red post box. Offering information on the Olympics and other UK events (as well as Irish Guard teddy bears), the venue was a roaring success, visited by countless thousands of people. Meanwhile, in the Shun Tak Centre - site of the Macau Ferry, a small London Fair was installed, which had enlisted the help of Madam Tussaud’s to display a life-size waxwork of the Queen, in addition to a larger-thanlife Irish Guard teddy bear and models of Big Ben and Tower Bridge. Most interesting in terms of the Brand Britain concept were the essentialised symbols of Britain prominently displayed on pillars and glass walls. These included an I♥UK symbol, a teapot, a bowler hat, a pound sign and more Irish Guards. Taken together, these events demonstrate a tremendously broad and successful British marketing campaign. Though by no means the first person to recognise the power of culture in international relations, it was Joseph Nye, American political scientist and Harvard University professor, who coined the phrase ‘soft power’ and greatly emphasised its importance as a component of modern diplomacy. Alongside the ‘hard power’ of military and economic strong-arming, he claimed, lay an equally, if not more fruitful world of cultural diffusion ‘soft power’. Rather as Ancient Greece, Rome or imperial China commanded respect and economic power as much through their culture as through their military conquest, so America, argues Nye, won great dividends

internationally through Hollywood, Disney and Coca-cola. This is nothing new, but the question remains as to how, and perhaps whether at all, governments can harness or direct that power for the sake of national interest. For all America’s success though, Britain has by no means been left out in the world of cultural diplomacy. The British Council, founded in 1934, is the second oldest institution of its kind in the world (in those days ‘cultural propaganda’ was an acceptable term), though the Alliance française predates it by over ﬁfty years. The British Council has fostered literature, art and film for many years, its ongoing work in the subcontinent, for instance, helping to continue the strong relationship between Indian writers and British publishing ﬁrms to this day.

I n re c e n t y e a r s h o w e v e r, i t i s B r i t i s h f i l m a n d entertainment which have found greater global appeal. Where before there was only James Bond, now there is also Harry Potter and a host of TV dramas, comedies, talent shows, cooking programmes, and a certain series about cars. 2012 may have been the year of the Olympics, but it was also the year of Downton Abbey. Purely from an investment point of view, picking one over the other would be an easy choice; but perhaps the key point increasingly being emphasised is that the one helps the other. The Olympics raised Britain’s profile, and Downton Abbey spurred people from around the world to visit the UK, many of them during the Olympic festival itself. Even those pink spangled Union Jack jeans might help to attract new waves of Manchester United fans, more viewers of the next James Bond film (coming out in November, in case you were unaware), and more business for British companies of all shapes and sizes. In short, there was method to Danny Boyle’s madness. Throwing Monty Python, Big Ben and the NHS into the same mix does, in fact, help to boost Britain’s economy. For that moment at least, even the England footballers played as...part of the team.

Business

– DOES HONG

Catherine Leung

Employers often place their employees on secondment to another country for a period of time. If an employee was seconded to Hong Kong and the employment contract incorporates a foreign governing law clause, does the Employment Ordinance (“EO”) apply?

This issue was considered in the case of HSBC Bank PLC v Steven Andrew Wallace [2008] 1 HKLRD 613 (“HSBC v Wallace”) and has been re-visited in the recent February 2012 case of Cantor Fitzgerald v Jason Jon Boyer & Ors [2012] HKCU 478 (“Cantor Fitzgerald Case”).

HSBC v Wallace Mr. Wallace was an employee who was offered employment by HSBC Bank Plc. (“HSBC”), a company incorporated in England upon the understanding that he was to be immediately placed on secondment to Hong Kong. His employment contract provided that he may terminate his employment by giving 6 months’ written notice. Mr. Wallace later resigned and accepted a position at another bank. HSBC confirmed his last date of employment to be 6 months after his resignation date. Mr. Wallace decided to shorten his notice by making a

payment in lieu of notice equivalent to his wages for the remaining balance of the notice period by relying upon EO s.7 to bring forward his termination date. EO s.7 provides that either party to an employment may “at any time” terminate the contract without notice by agreeing to pay the other party a payment in lieu. HSBC argued that the EO had no application as the employment contract was governed by English law. There was no equivalent statutory right to buy out one’s notice under English law under the circumstances. Mr. Wallace argued that the EO applied, given the terms of EO s.4, and that he was employed to work in Hong Kong, and thus had its closest and most real connection with Hong Kong. EO s.4(1) provides that the EO applies to every employee engaged under a contract of employment, to an employer of such employee and to a contract of employment between such employer and employee. Mr. Wallace further argued that an express choice of law other than that of Hong Kong cannot be used to exclude an employee’s right to invoke EO s.7, by virtue of EO s.70 which provides that any term of a contract of employment which purports to extinguish or reduce any right, beneﬁt or protection conferred upon employees by the EO shall be void. The Court held that parties to employment contracts are entitled to choose the governing law, thus there was a presumption that English and not Hong Kong law applied. However, the Court also stated that the presumption may

Britain in Hong Kong

conferred upon an employee by the EO. In light of EO s.70, D1 argued that EO ss.6 and 7 must be regarded as mandatory laws of Hong Kong.

Secondment of Employees to Hong Kong

G KONG LAW APPLY ? Catherine Leung Senior Associate, Howse Williams Bowers

Relying upon HSBC v Wallace, Cantor argued that D1’s employment was subject to English law and that there was no reason to apply Hong Kong law which overrode the express terms relating to the termination of D1’s employment. The Court did not agree with the reasoning set out in HSBC v Wallace and explained the difference in approach was due to the fact that the Judge in HSBC v Wallace did not have the benefit of hearing the full argument on the question as the Judge was only drawing a preliminary conclusion in an application of an interlocutory injunction (until the Cantor Fitzgerald case which was a full hearing). The Court held that EO ss.6 and 7 must apply as part of the “mandatory employment laws of Hong Kong”, and that one cannot choose a foreign law to get around the protection afforded by the EO to employees working in Hong Kong (as such an attempt would be struck down by EO s.70). The Court held that EO ss.6 and 7 must apply as part of the “mandatory employment laws of Hong Kong”, and that one cannot choose a foreign law to get around the protection afforded by the EO to employees working in Hong Kong (as such an attempt would be struck down by EO s.70). The Court held that D1 should be allowed to rely upon EO ss.6 and 7 to make a payment in lieu of notice for the agreed period in the employment contract.

be rebutted if Mr. Wallace could establish that the parties had no connection with England and that the invoking of English law was a device artiﬁcially introduced to exclude EO protection. It was held that the presumption that English law applied was not rebutted.

The two cases may be distinguished upon the basis that in the Cantor Fitzgerald case, there was a secondment letter which expressly varied the UK governing law clause to allow “any mandatory laws of Hong Kong to apply”, whereas no similar provision was included in the secondment letter in HSBC v Wallace.

Cantor Fitzgerald Case

Practical Implications

In this case, the Court held that notwithstanding the fact that an employment contract incorporated a foreign governing law clause, Hong Kong law may nonetheless apply.

Employers should be aware that notwithstanding the fact that an employment contract expressly incorporates a foreign jurisdiction and governing law clause, Hong Kong law may nonetheless apply to secondees working in Hong Kong. Employers may not be able to by-pass the EO by choosing a foreign law as the governing law of the employment contract, as to do so may be considered as contracting out of the EO, which is not allowed.

Four former employees of Cantor Hong Kong and Cantor Fitzgerald Europe (“CFE”), a capital markets investment bank (collectively, “Cantor”), resigned and joined a startup brokerage house in Hong Kong. D1 was seconded from CFE to Cantor Hong Kong. His employment contract with CFE was subject to English law. Under D1’s employment contract, he was entitled to terminate his employment by providing 4 months’ notice. His employment contract was varied by a letter of secondment which provided that his employment was governed by English law “…save for any mandatory employment laws of Hong Kong”. D1 sought to terminate the employment pursuant to EO ss.6 and allowing him to terminate the employment by providing notice and to make a payment in lieu of notice to CFE at anytime. D1 argued that EO s.70 nullified any term of a contract of employment which purported to extinguish or reduce any right, benefit or protection

“Howse Williams Bowers is a new, independent Hong Kong law firm. Our key practice areas are commercial and maritime dispute resolution, clinical negligence and healthcare, insurance and professional indemnity insurance, corporate commercial and corporate finance, employment, matrimonial and intellectual property. The HWB partners and their teams have an excellent reputation for delivering high quality advice with a practical and commercial approach to solving legal issues in line with clients’ commercial objectives.” Disclaimer: The information contained in this article is intended to be a general guide only and is not intended to provide legal advice. Please contact catherine.leung@hwbhk.com if you have any questions about the article.

Business

Balancing Tradition and Modernity:

The Future of Retirement in East Asia Contributed by Prudential Corporation Asia

As the world’s societies age, governments and businesses are trying to look ahead and anticipate the needs of tomorrow’s growing elderly populations. Nowhere is this more difﬁcult to do than in emerging East Asia. It is not just that the region is due to age so dramatically, but also that the rapid pace of development is transforming retirement attitudes and behaviour. Prudential has been helping individuals and families in Asia plan for their future and protect their longterm ﬁnancial well-being for over 88 years. In order to better understand the new challenges facing the region, Prudential plc partnered with the US-based Center for Strategic and International Studies (CSIS) in 2010 to work on a multi-year Global Ageing Preparedness Project. The latest study under this project was released in July 2012 entitled “Balancing Tradition and Modernity: The Future of Retirement in East Asia”. The report examined retirement expectations and behaviours in six of East Asia’s emerging markets, surveying a wide cross-section of workers and retirees. The report provides powerful insights that are not only useful to policymakers concerned about how best to prepare society for the aging challenge, but also

Dr Richard Jackson, Director and Senior Fellow of the Washington-based CSIS, presented the findings of his report at a luncheon co-organised by the British Chamber of Commerce and Prudential Corporation Asia in July 2012. Several Chamber members were in attendance.

to businesses looking to design retirement products for varying age groups in different countries.

A summary of the report’s key ﬁndings are outlined below Key ﬁndings:

The countries covered by the CSIS study were China, Hong Kong, Malaysia, South Korea, Taiwan, and Singapore. The picture that emerges from the survey is one of societies in the midst of a breathtaking transformation. Birthrates have plummeted and families have shrunk. Affluence, educational attainment, and familiarity with markets are rising. And huge generational fissures are opening up between younger and older generations.

• The traditional “Confucian ethic” expectation that families themselves w i l l p ro v i d e f o r t h e i r e l d e r l y members is under unprecedented pressure. Only small minorities (from a low of 4 percent in China to a high of 22 percent in Singapore) believe that grown children should be responsible for the retirement income of their parents. • There is strong support for individuals taking greater responsibility for financing their own retirement. In most countries – China and Malaysia are exceptions – people prefer personal savingsbased retirement provision to government provision. • For today’s elderly, retirement can be a time of economic hardship. Retired respondents in all of the countries worry a great deal about

Britain in Hong Kong

• There is considerable support in Hong Kong for individual re s p o n s i b i l i t y f o r re t i re m e n t income. Forty percent of respondents believe that retirees themselves should be mostly responsible for providing their own retirement income. This is somewhat larger than the share supporting government responsibility (37 percent) and much larger than the share supporting family responsibility (12 percent).

becoming “a burden on their children” (40 to 85 percent), being “poor and in need of money” (30 to 85 percent), and being “in ill health and having no one to care for them” (50 to 80 percent). • Although retirement prospects are improving for members of today’s working generations, most are still not adequately prepared. Gaps in pension coverage and low replacement rates mean that government and employer retirement systems are unlikely to meet their needs—and very few are saving enough on their own to ensure a decent standard of living in retirement.

Key ﬁndings speciﬁc to Hong Kong: • F o r t o d a y ’s re t i re e s i n H o n g Kong, retirement can be a time of economic hardship. Fifty-nine percent report that they have “a lot less income” than while they were working. Just 7 percent report that they have more income. The gap between the income of the old and the young is also one of the largest. While the median income of young adults aged 20-39 is 150 percent of the median for all households, the median income of adults aged 60 and over is just 49 percent. • The rate of pension receipt in Hong Kong is still relatively low. Just 63 percent of current retirees report receiving a benefit from the Mandatory Provident Fund (MPF).

Meanwhile, the dependence of retirees on the extended family is the highest of any survey country. Forty-two percent of current retirees report receiving more financial support from their grown children than they provide to them, while just 4 percent report providing more than they receive. • The outlook for tomorrow’s retirees is much brighter. The expected pension receipt rate among current workers rises to 90 percent—the highest rate of any of the survey countries. The survey also reveals an astonishing increase in the expected receipt rate for all types of asset income. Seventy-ﬁve percent of young adults aged 20-39 expect to receive income from insurance or annuities in retirement, while 66 percent expect to receive income from stocks or bonds — the highest share of any survey country.

• The MPF gives Hong Kong a large relative advantage in preparing for the aging of its population. Although Malaysia and Singapore also have savingsbased retirement systems, Hong Kong’s privately managed system is the only one that earns a market rate of return. The main challenge facing Hong Kong is that the MPF’s targeted replacement rate of 30 to 40 percent is too low to support an adequate standard of living in retirement—and that, despite their growing marketorientation, today’s workers are not saving enough on their own to make up the difference.

For more information, contact: harsha.p.harjani@prudential.com.hk For access to the full report, visit: http://gapindex.csis.org

Business

Internships are becoming part and parcel of Hong Kong’s modern, flexible economy and are beneficial not only for the interns themselves but also for the businesses which host internships.

What Is An Internship? An internship is essentially about work experience for young people — be they school leavers, university students or recent graduates. Where internships were once an informal means to gain practical insight into Samantha Cornelius a particular career field, today they Managing Director StandOut Internships are regarded as part of students’ (HK) Limited education and an important rung on the ladder to success, because an internship can add as much gravitas to a CV as a degree. In fact, students who are not using their university holidays for internships are far less likely to secure a decent permanent job when they leave university.

The Benefits of Businesses in

What Are The Benefits Of Inter nships For Businesses? There are clear business benefits to hosting an internship, not least because the host company gains an additional and, typically, motivated member of staff who is eager to leave an impression. The youth of today tend to be tech-savvy and through their studies are also aware of the latest trends in, for example, management, marketing and social media. This enables them to bring new skills, ideas and perspectives, which have the potential to improve productivity within an organisation — all with minimal financial cost to the business, especially if the internship is unpaid. The internship may even lead to good publicity for a host company if the intern enjoys the experience and tells others about it. Some businesses habitually use internships as part of their recruitment strategy, because they offer an opportunity to trial out candidates before offering them a permanent position. However, in order to reap the benefits of internships, it is important for host companies to ensure that internships are: • structured with a work plan; • advertised appropriately (the job description should detail the intern’s expected tasks so that it attracts the right candidates); and • managed and supervised by a mentor with sufficient industry experience, who can provide constructive feedback to the intern. It is also worth arranging a proper introduction to the company at the start to enable the intern to integrate quickly.

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Britain in Hong Kong

What Tasks Can Interns Do?

Internships for Hong Kong

If an internship is to be beneficial to both the business and the intern, it is imperative that the intern is given the opportunity to carry out diverse and meaningful tasks, attend business meetings and shadow employees. Interns should therefore not be asked to carry out basic administrative or menial tasks any more than other employees would be expected to do so. An effective way to find meaningful tasks for interns is to consult colleagues and heads of departments in advance to find out if they have any specific projects, which they consider an intern could contribute to. If one big project does not stand out, or none of the departments feels they can offer a sufficient workload by themselves, an intern’s workload could be spread across a number of different areas. This would give the intern a broader view of the organisation and a range of learning and development opportunities.

Internships — Paid v. Unpaid? Students, understandably, prefer paid internships and, where possible, businesses should consider a budget for offering paid internships (at the minimum wage or above) and covering work-related expenses incurred by the intern, including travel to and from work and whilst attending external meetings or events. It is, however, possible and perfectly legal to offer unpaid internships, although there are restrictions under Hong Kong’s minimum wage legislation, which companies need to be aware of when hosting unpaid internships. Where an internship is unpaid, the quality of the work experience is the most important factor for the intern, as the short-term economic costs of an unpaid internship can often be offset by the long-term advantages to the intern’s career.

About StandOut Internships (www.standoutinternships.com) At StandOut Internships we manage an active database of students from Hong Kong and around the world who are looking to do internships in Hong Kong. We interview all our applicants and match candidates to host companies based on their job descriptions and candidate requirements. We have a qualified employment lawyer on the team who can advise companies how to structure unpaid internships in accordance with Hong Kong’s minimum wage legislation and arrange visas for interns from abroad. If you would like to find out more about the services we offer when sourcing interns for your business — without any charges payable by your company — please email Samantha Cornelius, Managing Director of StandOut Personnel Limited on sam@standoutinternships.com.

Business

Opinion: Five Reasons Why Hong Kong is an Ideal Data Centre Hub for Asia

Stephen Hilton Head of Critical Systems, EC Harris Asia

Over

the past few years, the increase in the use of the Internet and the emergence of smartphones,

Data centres cannot be built just anywhere, as restrictions

tablets and other mobile devices together with the

locations are available, whilst the cost of operation and

acceptance and growth of cloud computing has seen

maintenance means certain sites are not cost efficient

the volume of data produced by consumers on a daily

to house them. EC Harris, a built asset consultancy that

basis grow at an exponential rate. This growth is not

advises enterprises on how to plan for, build and maintain

just linked to consumer behaviour either, as enterprises

data centres, has found that Hong Kong is an excellent

too are working with record levels of data. For example,

location for developing them.

around access to suitable land means only certain

companies in the financial and medical field or in the media industry are increasingly producing huge amounts

There are several key advantages that make Hong Kong

of data, all of which needs to be securely accessed and

an ideal choice to build a data centre:

stored in a safe location. 1

Environment: Unlike many other places in Asia,

This has resulted in a pressing need to build and maintain

Hong Kong does not have a high risk of massive

high-tier data centre facilities and as an increasing

natural disasters, such as earthquakes or tsunamis.

number of multi-national enterprises look eastward for

In fact, recent research rated Hong Kong as the

future business growth, this demand is never more acute

least risky market in Asia and 7th least risky location

than in Asia today. Data centres are critical to enabling

across the world in which to build a data centre.

businesses to run their operations and in many cases can help a company to secure a competitive advantage

Power: Hong Kongâ&#x20AC;&#x2122;s utility power systems are

over other players within their industry. However,

extremely reliable and do not suffer from major

deploying and maintaining them can be expensive and

outages or brown outs. Continuous availability of

is increasingly complex, as more systems are merged

power is very important, particularly for operators

or integrated into each other. A data centre strategy has

supporting medical or financial services sector

to be carefully planned, as many factors come into play

that need continuous access to â&#x20AC;&#x2DC;mission critical

both when deciding where to house a data centre and

dataâ&#x20AC;&#x2122;. Data centres also require large amounts of

ensuring that it delivers the best possible results for an

power both to operate and to keep them cool and

organization.

fortunately, electricity in Hong Kong is relatively cheap

Britain in Hong Kong

to help make the S.A.R. into Asia’s data centre hub. However, there is still progress to be made. For example, the number of sites designated as locations where data centres can be built remains scant. There is also a lack of compared to other markets. Furthermore, there is

suitable green ﬁeld sites and buildings for data centres,

continued investment in the electricity grid to improve

and current restrictions can still make the process

the standard of the power supply.

onerous. To overcome these challenges, the government has set up a Data Centre Facilitation Unit to assist

Data privacy: Many enterprises also need to

operators to ﬁnd and build new facilities. The government

maintain certain levels of data privacy and in this

has also introduced a scheme that offers incentives and

respect, Hong Kong is an attractive location, as

wavers to developers who choose to build high class

the freedom of information laws and effective data

data centres.

protection enable organizations to protect the privacy of the content stored and handled in their data

Another challenge for the data centre industry is a

centres. The Hong Kong government will not try to

shortage of experienced data centre professionals —

access it, as opposed to the governments in some

not just in Hong Kong but across the world — who

other markets across Asia.

are able to enter the data centre workforce with ease. There are no, or few, college degrees with data centre

Telecommunication cables: Hong Kong is a major

specific modules, and in many cases, the only way to

hub for international cable networks (nine submarine

get skilled workers in this area is to hire experienced data

cables and 17 overland cables) that provide secure

centre workers or to take graduates with mechanical

and low-latency international telecommunication and

or electrical degrees and then induct and train them to

data connectivity. These undersea cables, which

manage the complex and integrated support systems

carry huge amounts of information across the ocean,

that are required to operate a data centre. Training and

are very reliable and are not at risk of seismic activity,

development is essential to ensure that the high level of

which makes it a much safer natural environment.

support required is available.

Gateway to China: A key route to China, Hong

The big data phenomenon and the anticipated

Kong is an ideal place to house data centres as

continuation of data proliferation mean that data centres

it offers enterprises that want to penetrate China

today have become critical to a company’s success and

relatively close proximity to that location. Very much

competitiveness. Hong Kong is an ideal location in Asia

like shipping cargo and money commonly ﬂows into

for data centre deployments for both local companies

China via Hong Kong, this market is a good place for

and international ones that seek to penetrate the Chinese

data services for companies looking to do business

market. However, issues remain and shortages in skilled

in the Mainland.

labour as well as limited locations for building or housing data centres remain big challenges that must be overcome

The Hong Kong government is very aware of the

if this opportunity is to be fully realised and Hong Kong is

importance of housing data centres and has taken action

to become Asia’s data centre Hub.

Business

Hong Kong as a New Transportation Hub Rex Ho, PwC Hong Kong Tax Partner, Clarence Leung, PwC Hong Kong Tax Director

It has been forecast that there would be strong demand for new aircraft through 2030, predominantly driven by emerging markets. It is estimated that 40% of the world’s commercial fleet will be based in Asia Pacific by 2030 with an expectation that China alone will be operating more than 5,500 aircraft. As a result, many aircraft lessors are considering developing an Asian aerospace hub, outside the traditional jurisdictions like Ireland and the US, to capture this potentially lucrative opportunity.

•

Singapore has already taken a major step to provide a competitive tax regime and incentives for aircraft lessors

•

With appropriate tax rule changes and added policy incentives, Hong Kong can utilise its unique position as the gateway to China to attract aircraft lessors to set up their operations in Hong Kong, thus generating additional tax revenues and further strengthening the position as a major international ﬁnancial centre.

Critics have often commented that the options will be likely Hong Kong, Singapore and China. Indeed, Singapore has taken a major step to provide a more favourable tax regime and policy incentives for aircraft lessors to set up their operations in Singapore.

In a recent interview with the Financial Times, the new Chief Executive, Mr C Y Leung, was quoted as stating that the Government will do more to help local industries by using some of Hong Kong’s fiscal reserves which currently stand at well over six hundred billion Hong Kong dollars. Although Mr Leung did not provide speciﬁc details as to how the Government would add impetus to the Hong Kong Economy, he did mention Singapore’s use of tax incentives to shore up its shipping industry, and set its sights on overtaking London as the centre for shipping services.

For Hong Kong to compete in this industry, it is paramount that the Government should revisit the existing tax rules and policy incentives to enhance the overall business environment for aircraft lessors intending to operate in Hong Kong. This would not only help Hong Kong maintain its competitiveness as Asia’s key transportation hub, but also further strengthen our position as a major international ﬁnancial centre.

Key issues to note: •

Aviation Industry is forecast to be a growing industry in Asia, in particular China

•

Aircraft leasing has become an extremely important source of funding for this industry

•

Hong Kong has a special relationship with China and is seen as the gateway to do business in China

What the Chief Executive actually has in mind with regard to the above statements remains to be seen. It might be that he and the Government will explore the idea of further strengthening Hong Kong’s position as a transportation hub in Asia. To tap into this opportunity, it is paramount that the Government explores the possibilities with an open attitude and considers any policies changes which would help achieve such a goal. Fiscal issues, along with infrastructure, education and training, environmental, telecommunications and legal framework are among the key policies which the Government should consider in a coherent and coordinated manner when considering encouraging any particular business sector.

Britain in Hong Kong

With regard to the transportation industry, particularly the shipping and aviation sectors, financing of the assets is a key consideration and should be specifically addressed if the industry is to be encouraged. Essentially, the financing of these big-ticket items is either by (i) purchasing the assets outright using loan financing or (ii) leasing the assets. The decision of whether to buy or lease such an asset is largely made on the basis of cash outflows; however, other factors such as residual value of the assets, replacement circle, technology obsolescence, repairs and maintenance and flexibility of the lease terms are also of key importance and should form part of the business decision making process. The last of these factors can be very important as the cash investment requirements for outright purchase of aviation and shipping assets are often prohibitive for smaller companies, so acquisition under flexible lease arrangements can be a much more attractive option.

centres, including Ireland. Additionally, withholding tax is generally still applicable to lease rentals under the double taxation treaty agreements signed between China and other countries. These factors further hinder the progress in developing the leasing industry in China, particularly in relation to big ticket assets such as aircraft and ships.

According to Boeing, less than 1% of the global air fleet was leased forty years ago, but the figure is approximately 40% today. Aircraft lease financing has come a long way and become an important method to finance aircraft. With the rapid growth in aircraft lease financing, it has come the development of favoured jurisdictions for the conduct for such business.

Leaving China aside which is a special case on its own, it appears that Singapore has caught up with Hong Kong and has grown as a global transportation centre and a leading international maritime centre. Critics have indicated that this was due to the general features of the tax system as well as the targeted tax incentives. Whilst this may be true, it is also important to appreciate that Singapore has also other incentives such as international aircraft leasing incentives and offshore leasing incentives. Although the head line tax rate in Singapore is 17% which is higher than Hong Kong’s 16.5%, companies engaging in approved aircraft leasing companies could enjoy a tax rate of either 5% or 10%. All these policy incentives demonstrate that the Singapore Government is committed to appealing to international aircraft lessors to base their Asian operations in Singapore, which is clearly working to the detriment of Hong Kong.

In this regard, Ireland has the biggest aviation leasing industry outside the United States, with nine out of the top 10 aircraft lessors operating there. The Federation of Aerospace Enterprise in Ireland (“FAEI”) published a survey a few years ago to demonstrate the contribution of the aviation leasing industry to the Irish economy. This was perhaps the first time that a country carried out such a survey in relation to aircraft leasing. According to the survey, the aircraft leasing industry delivered over €300 million in taxes to the Irish Government. It was also interesting to note that 97% of the respondents stated that tax was a critical consideration in choosing to locate their business in Ireland. Despite the economic downturn in the last few years and the continued problems in the Eurozone market which has an impact on the world-wide economic recovery, China has been picking up on domestic consumption over the past few years. The rapidly expanding affluent individual sector in China has fuelled the demand for both private and commercial air transport, leading to a surge in aircraft ﬁnancing activities in China. It is clear that many leasing companies are operating in China even though the regulations and the tax law in China for leasing are both very complicated and unclear. Therefore, it is difficult to apply the same set of rules that are well tried and tested in other jurisdictions when it comes to leasing in China. Apart from the indirect tax burden on VAT (potentially up to 17% under the VAT pilot program in Shanghai) or Business tax (5% on gross lease rentals or interest income), the corporate income tax rate in China is 25%. Therefore, the overall tax burden for aircraft leasing businesses in China is significantly higher than other major leasing

However, the penetration rate of leasing in China is merely 3% compared to the average rate of well over 17% in Europe or 10% in Japan. Given that China is now the second biggest economy in the world and has a rapidly increasing demand for air travel (with an expectation that it will operate 5,500 commercial aircraft by 2030), but a low penetration rate in the leasing market, it is clear that there are potentially very lucrative opportunities for aircraft lessors, particularly if the high tax burden imposed under the current tax law can be addressed.

Given Hong Kong’s unique position with regard to Mainland China, as well as its mature financial environment, stable political environment and well developed legal system, international aircraft lessors looking to do more business in Mainland China naturally consider setting up in Hong Kong. Nonetheless, although Hong Kong is still seen as a gateway to China and is one of the major cities in Asia for doing business, the current Hong Kong tax rules on aircraft leasing generally make it an unattractive location for aircraft leasing to non-Hong Kong airlines. As such, we have recently observed that more and more aircraft leasing companies are looking to build their Asian presence in Singapore and mainland China, rather than Hong Kong. Accordingly, in order for Hong Kong to compete in this potentially lucrative business in relation to the expanding aircraft market in China and Asia-Paciﬁc, it is necessary that the Government enhances the policy environment for international aircraft lessors in Hong Kong. Any expansion of this sector in Hong Kong would not only generate additional tax revenues for Hong Kong, but also additional associated business activities which would have beneﬁts for the overall Hong Kong economy.

Business

GREAT Campaign Launches in Hong Kong On 10 May 2012, the British Consulate-General Hong Kong launched the international GREAT Britain campaign in Hong Kong with an exclusive event to celebrate the long-standing partnership between the UK and Hong Kong and to showcase British creativity and innovation talent. Following events in New York, Rio and Tokyo, the GREAT campaign aims to raise international awareness of the multi-faceted appeal of the UK, attracting an extra 4 million visitors and a £1 billion boost for business over the next four years. Prime Minister David Cameron is spearheading the country’s biggest-ever overseas campaign to boost worldwide awareness of the UK as a GREAT place for business, investment, tourism and study. The Foreign Office, UK Trade & Investment, British Council and Visit Britain are working closely on this impressive campaign to reach a wide audience across the world. British Consul-General to Hong Kong Andrew Seaton said, “The relationship between the UK and Hong Kong, already so important, continues to grow and develop. Our partnership in the fields of creativity and innovation are an increasingly important part of that mix. Many UK designers draw creative inspiration from the vibrancy of Hong Kong. For their part, Hong Kong people appreciate what the UK has to offer in the ﬁelds of fashion, design, food and technology. In recent years we have seen classic and innovative British brands work with local partners to achieve significant success here; and likewise many Hong Kong businesses with global ambition have been establishing a footprint in the UK.” “The choice of Hong Kong as a GREAT campaign city is a sign of how important it is to the UK. I am looking forward to deepening relationships across the board.

2012 will be a chance for people across the world to rediscover GREAT Britain and see with fresh eyes the vibrant opportunities there for business, investment, leisure and education,” Seaton added. The Great event brought together future leaders, business figures, local and international celebrities and young entrepreneurs, in a theme of red, white and blue. Luxury fashion designer Julien Macdonald showcased some of his latest collection while Head Chef of Trinity restaurant Adam Byatt serves modern interpretations of traditional British cuisine, offering guests a taste of the creativity that the UK has to offer. The star-studded event also welcomed other visiting UK figures including interior designer Kelly Hoppen, Hong Kong-born Olympic torchbearer Steven Cheung and gallery owner Michael Hoppen, a leading light in the world of photography. British cirque group Tumbellina entertained the guests with a breathtaking performance of acrobatics. Announced by Prime Minister David Cameron in New York in September 2011, the GREAT campaign has so far been launched in 9 countries. These include the USA, Germany, France, India, China/Hong Kong, Japan, Canada, Brazil and Australia. Focusing on 17 key cities it aims to reach over 80 million people through integrated platforms across advertising, public relations, partnership/celebrity activity and city-based events. UK celebrities such as Sir Richard Branson, Vivienne Westwood, Lily Cole and Victoria Beckham have signed up as GREAT Ambassadors to support the initiative, showcasing the breadth and depth of British talent and with the common goal of inviting people to take a fresh look at everything the UK has to offer.

Britain in Hong Kong

The GREAT Week of Creativity From 5-11 November 2012, UK Trade & Investment will be hosting a series of events, exhibitions and seminars in Hong Kong, showcasing the explosion of innovation and talent coming from the UK. The aim of the week is to celebrate all that is GREAT about Creativity with a focus on Fashion, Luxury, Design and Craftsmanship. The week will give a concise and in depth look at British creativity, exploring issues at government and trade level as well as engaging the general public through the provision of cultural and educational events, open to all. The outcome will be an exchange of ideas and knowledge and to start a dialogue of how the UK and Hong Kong creative communities can support and bolster each other in a Global environment. The focus is on the best quality of design; curation and UK Trade & Investment will be working closely with leading organisations to provide the best quality content to the Hong Kong audience. The British Government is working closely with Walpole, the British Fashion Council, London Design Festival and the Crafts Council to provide relevant and powerful programmes with the best talent and expertise visiting Hong Kong for the week. The week will begin with a high profile launch event that will be hosted by the key organisations participating in the week. Walpole will be awarding their coveted medals to key industry figures from Hong Kong and a VIP audience is expected to attend from both Hong Kong and other areas of the Asia Pacific region, highlighting Hong Kong’s role as a platform and springboard into the wider region. Visiting companies and trade organisations will hold collection previews and press days at the start of the week, all of which will be publicised through a specially developed mobile application that press and buyers can register for, giving access to invite only events over the week to registered users. While still being confirmed UK Trade & Investment is expecting up to 250 of the best British creative companies to be attending Hong Kong over the week, one of the largest trade missions ever undertaken. To take advantage of the expertise and talent visiting Hong Kong a huge project is being undertaken with local educational institutions and creative hubs. Over the week

a series of lectures, workshops, seminars and master classes will be taking place, all with the aim to give free access to both the current and next generation of creative talent here in Hong Kong. Work experience and CV building opportunities are at the forefront of what the week is looking to achieve. Details of all the activities over the week will be uploaded onto UKTI’s free mobile app and website so that there is a central place to search for events and apply for tickets. UK Trade & Investment is working with existing local companies such as department stores and malls to have high impact public and consumer facing events. The organisers are working to bring out new companies for one off availability, pop up shops and special projects to raise awareness and generate additional business opportunities for participating companies from both the UK and Hong Kong. There are many opportunities to get involved; from sponsorship through to organising and participating in relevant or individual events. For more information on how you can participate in the Great Week of Creativity you can contact the event organiser Kate Strutt at kate.strutt@fco.gov.uk.

Business

LEAVING HOME Martin Rimmer, Head of Tax – Asia Pacific, The Fry Group

Many

British families arrive in Hong Kong over the summer all in good time for the start of the new

should send it back to your local tax office in the UK.

academic year. If this is you, congratulations! You have

be held to your answers, though obviously you need to

just landed in what is probably the best place in Asia to

complete the form carefully.

There is no deadline for submitting this form. You will not

be a working expatriate! Secondly, if you will be letting your property in the UK, Yet, as you know, moving countries is a real upheaval and

you will need to file the Form NRL1 (again, visit www.

even if your employer provides relocation assistance, there

hmrc.gov.uk). Application into the Non-Resident Landlord

is no getting away from the fact that a huge amount needs

Scheme will ensure that your rental agent does not deduct

to be done in preparation for the move – not to mention

income tax from your rental income. The proﬁt from your

arriving here, settling down, finding a home and then

rental is still subject to tax, but that is only picked up when

getting on with the business of performing in a new role.

your tax return is completed – if you need one.

One of the things that tend to be neglected is the matter

Third, if you are paying into a personal pension scheme

of personal taxation. So, having successfully helped

in the UK, let your pension provider know that you are

thousands of people to ensure that their expatriate lives

moving abroad. You may still be able to contribute,

are structured as tax-efficiently as possible, I thought

though at much reduced levels. The rules are complex

it would be helpful to set out a few thoughts on the

and further advice is likely to be needed.

implications of leaving the UK from a tax perspective, what you need to do and be mindful of.

Fourth, you may need to continue to file a tax return. Indeed, most departing expatriates are entitled to tax

Firstly, you need to tell HM Revenue & Customs. This

refunds in the year of departure. It would be well worth

is very simple, and can be done by ﬁling the Form P85.

checking with us what your position is, and whether you

This form lets the Revenue know when you left, how long

are going to need to continue to file - we can file tax

you expect to be abroad and one or two other details.

returns for you. In any event, it is wrong to assume that

You can download this from www.hmrc.gov.uk and you

you need only ﬁle a tax return if HMRC sends you one –

Britain in Hong Kong

the truth is that it is up to you to ﬁle if you need to, even if

you already have, but you cannot continue to fund them.

HMRC is silent.

This is not a problem, as you can make investments outside of the UK without having to pay income tax

Fifth, moving to Hong Kong is not going to save you

provided that you are safely non-resident. There is a

a penny in UK tax unless you ‘break residence’ from

vast array of savings and investment options which are

the UK. This means that you will need to meet certain

available to you, though real care is needed to ensure

conditions and if you have left the UK over the summer,

that you select investments and providers wisely.

at a bare minimum you would need to ensure that: Cold-calling is rife here in Hong Kong, as is the use of • •

•

You have stopped living in the UK and have started to

contractual regular savings plans. These are typically

live in Hong Kong,

sold as ‘pension plans’ (though they are not recognized

You are engaged in continuous full-time overseas

in the UK as ‘pensions’ in the true sense of the word). As

employment until at least 6th April 2014, performing

investment vehicles, they are ﬁne and there is no reason

minimal duties in the UK

why a properly thought through investment strategy

You spend less than 91 midnights in the UK on

could not work well for you. However, the contracts tend

average per UK tax year from the point of departure

to be very expensive with long ‘tie ins’ and high surrender penalties. We think that there are much cheaper and

The rules are actually quite a bit more involved than this

more ﬂexible solutions. The watch word is simply to be

and will be changing quite dramatically on 6th April 2013

vigilant and to ensure that you are fully aware of the cost

in any case. So, if you have not already taken advice,

and terms of any product before you buy.

I would recommend that you do so. The vast majority of British people who leave the UK to work abroad

Many expatriates have bad initial experiences, but that

do achieve non-resident status, but it is important to

does not need to be the case. Find a provider who

understand the ‘trigger points’ at which the status might

you can trust, who provides expertise across many

be endangered. There are also separate conditions which

disciplines, who is properly regulated by the SFC as

need to be met in order to escape the UK capital gains

well as by the FSA in the UK and who is completely

tax system. Your exposure to Inheritance Tax on world-

transparent about terms and charges – what you will pay,

wide assets is unlikely to change as a consequence of

what the adviser will receive and the period of over which

moving abroad.

charges are due.

Sixth, if you can break residence from the UK, your

Finally, seek advice! Leaving the UK provides a

earnings and all other non-UK sources of income would

wonderful opportunity to shake off a higher tax regime

be exempt from UK taxation. Most continuing sources

and to move into a low-tax environment which does tax

of income arising in the UK remain taxable, though most

most forms of investment income and gains. However, it

can continue to beneﬁt from standard tax allowances.

is rare for these advantages to be obtained ‘by default’. It would certainly be worth taking formal advice on your

Seventh, once you have left the UK, you are no longer

position and to ensure that you fully understand how you

allowed to contribute to ISAs. You can keep the plans

can proﬁt tax-wise from your time in Hong Kong. The Fry Group provides UK taxation, financial planning, pension planning, UK will writing and inheritance tax planning for British expatriates in Hong Kong. Our office is located at #20-05 Tower 1, Lippo Centre, 89 Queensway, Hong Kong – Tel, 2526 9488. We offer an initial consultation without charge or obligation and are the trusted partner to thousands of British expatriates in Hong Kong and around Asia. www.thefrygrouphk.com The Fry Group can help in all of the areas highlighted in this article, as well as many more! If you have any questions or would simply like to chat through your own situation, please do not hesitate to contact myself, or James Sutton in the Hong Kong office info@thefrygrouphk.com

Business

An Olympic-sized Opportunity for Hong Kong

Craig Shute, Senior Managing Director for CBRE Hong Kong, Macau and Taiwan

When looking for similarities between London and Hong Kong, you might normally expect to compare their statuses as the traditional financial centres of Europe and Asia, their roles as regional bases for major inter national corporates and Craig Shute retailers, and of course their importance as regional transport hubs and must-see destinations for tourists. You might be surprised for me to suggest that London could also be considered as an emerging commercial real estate market. As one of the biggest and most dynamic economies in the region, it is continually expanding its ‘core’ to encompass the growing requirements of its population and businesses. I will leave aside the comparison with Hong Kong for the moment and we can return to it a little later. As host for the 2012 Olympic Games, London’s venue for the Olympic Park in the East End has undergone a major regeneration programme since the city was awarded the games on 05 July 2005. Over the past decade CBRE has been heavily immersed in this project, whose success will not only be judged on completion of the Olympic facilities themselves, but on the legacy and long-term opportunities brought about by the regeneration for Londoners and investors alike.

When London was awarded the 2012 Olympic Games, the 500 acre bid site was still an industrial heartland but situated just 3 miles from the City of London and 17 minutes by Tube from the very centre of London, Oxford Circus. Although there was good infrastructure in place in 2005, prior to the bid East London and specifically Stratford had suffered economically for a number of years. Fragmented land ownership, lack of investment and industrial contamination meant that options for comprehensively re-developing this area were incredibly limited. Over a two year period, CBRE acted for the London Development Agency, the regeneration arm of the Mayor of London, acquiring this land and relocating businesses occupying over 3.5 million sq ft to deliver a cohesive site by June 2007, thus enabling the building of the Olympic Park. This was the largest and fastest land assembly project ever undertaken in Europe. The success of London’s bid was heavily predicated on the regeneration proposals for the site and wider area. The big question is: Will London succeed where (some) others have failed in delivering an Olympic Games where the host city is the real gold medal winner? Speaking with my colleague Matthew Black, CBRE’s Senior Director for Central London Development Team, who as adviser to the Olympic Delivery Authority has been involved with the development of the Olympic Park since its inception and was responsible for the negotiations surrounding the land acquisitions, we believe the answer

Britain in Hong Kong

provide a direct high speed rail link to continental Europe. Creating a destination like the Park is incredibly important for the legacy of the Games and Stratford’s ability to draw in investors after the athletes leave. London is unique in that creating a legacy and an attractive investment proposition was an intrinsic part of the bid.

is a resounding ‘yes’. The immediate Olympic site and the wider surrounding area has already attracted international developers and private capital due to the significant opportunities brought by the opening up of this strategic site. We estimate that £2 billion (HKD24bn) has been invested in the last two years alone, representing commitments to deliver more than 6,000 homes and 5 million sq ft of commercial space. Australian shopping centre group Westfield has constructed Europe’s largest indoor shopping mall, totalling 1.9 million sq ft, which remarkably opened with 95% of its space let in the eye of the economic downturn in September 2011. The centre has had a strong impact in changing the economic outlook for the area and external attitudes towards it. On its own, the centre is projected to provide 18,000 jobs in Stratford. Westfield’s investment has already been vindicated – Dutch pension fund APG and the Canadian Pension Plan Investment Board bought a 50% stake in Stratford City for £870 million in late 2011. Westfield has also completed the first phase of its office developments and over 100,000 sq ft of grade A space has been let. Likewise, the Athletes Village presented a major investment opportunity for investors seeking to access residential opportunities in London’s supplystarved market. The private element was built on time and on budget and pre-sold to property investor Delancy and Qatari Diar, the property investment arm of the Qatar government, for over £550 million in 2011 - Britain’s largest private rented sector deal. After the Games this will accommodate over 4,000 inhabitants. Other components of the Olympics infrastructure provide clear opportunities for the area and further investment post-Games. This includes the 1 million sq ft Press and Broadcast Centre. Two final submissions for future usage are currently being assessed, and whoever is successful will bring a further 5,000 workers and a significant number of new employment opportunities to the area. Lend Lease and London & Continental Railways are also planning to build 4.5 million sq ft of offices. Discussions are taking place with occupiers who are more usually associated with Central London office locations who are attracted by the opportunity and plans for HS1, which will

Regeneration and legacy isn’t just about what has happened within the confines of the Park however. Inter Ikea, the Swedish pension fund related to the Ikea Group, has purchased approximately 29 acres of redundant industrial land at Sugar House Lane and submitted a planning application for 1200 new homes, 400,000 sq ft of commercial space and has pre-let the 350-bed Marriott hotel. Investment on this scale is a huge endorsement by the private sector of the work undertaken to change the perception of the area of London and to attract private investors. How will history judge the London 2012 Games? The post-Games regeneration vision of building a thriving commercial hub in Stratford has remained steady over time and the area now represents a credible alternative location for occupiers and investors to London’s more established markets. The fact that the majority of the large assets have been funded or acquired by international capital is a major endorsement of how London has seized the opportunity created by the event. Referring back to the comparison of London and Hong Kong, I am not suggesting that Hong Kong should bid to host the Olympics any time soon, although we did successfully play our part hosting the equestrian event during the Beijing Olympics, not forgetting that we are annual hosts of the world’s premier rugby sevens tournament. However like London, Hong Kong is in need of a credible alternative location for occupiers and investors to meet the requirements of international and local businesses and also directly benefit Hong Kong’s people. Referring to the example of East London, pre-2005 it was an area with a poor reputation, considered to have few prospects - an industrial heartland with fragmented ownership and a destination deemed too far from Central London. Here in Hong Kong, we could easily be talking about Kowloon East. While we don’t have a big ticket event like the Olympics, we do have the CBD2 redevelopment project which covers a similar scale 488 hectares of land including 320 hectares on the former Kai Tak site, we do have the wider West Kowloon Cultural District project, we do have the upcoming high speed rail connecting Hong Kong to the mainland and we do fundamentally have the need to follow London’s example and continually look to reinvent our city. We do need a master-plan to successfully regenerate our city if Hong Kong is to continue its role as Asia’s premier business hub. Let’s go for gold.

Environment

The Hong Kong Cleanup I n Hong Kong we generate a shocking 6 MILLION TONNES of waste every year, but only a small portion is recycled. Our landfills are almost full, and a vast amount ends up in nature.

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Having engaged over 60,000 volunteers in cleaning up over 250,000kg of trash, and now in its 12th year, Ecovision’s Coastal Cleanup Challenge is firmly established as a well-loved and vital part of the Hong Kong event landscape. This event is part of a global eco initiative by Ocean Conservancy - The International Coastal Cleanup, which takes place in over 100 countries and last year alone mobilized more than 600,000 volunteers. Yet 11 years of data and volunteer feedback show a need for even greater community engagement and action here in Hong Kong. Thus, Ecozine and National Geographic Channel (HK) are proud to bring you: the Hong Kong Cleanup. As part of this year-long education platform,

we are expanding beyond beaches and coastlines to cleaning up country parks, urban areas, ofﬁces, homes and schools, with the support of Presenting Sponsor, Nomura. Now there are many more ways for you to participate with your colleagues, school, family, friends or community! Everything is connected – the land, the sea and the air we breathe. What we do at home, at school, in the office or in our neighbourhood, can affect ecosystems hundreds of kilometres away in the ocean. Everyone can be part of the solution - from product development to disposal, we all have a role to play. Together, we can halt the ﬂow of trash into our precious oceans! Do you love Hong Kong? Want to be part of something big? Join hands with the Hong Kong Cleanup. Together, WE CAN MAKE A DIFFERENCE! Visit HKcleanup.org today and sign up a tem today!

Three team challenges = More ways to participate! 1. Coastal Cleanup Challenge With its expansive coastal areas, ﬁshing and shipping industries, marinas, boating and water sports, Hong Kong has a special relationship with the marine environment, and as such it is vital for us to take part in its protection. Beach cleanups bring awareness to the vast and vital issue of marine debris, and allow participants to engage with our beautiful coastal ecosystems.

2. Country Cleanup Challenge Hong Kong’s country parks are one of our most valuable assets. They offer not only beautiful vistas and recreational activities such as hiking, cycling and camping, but also absorb carbon dioxide and are home to many species of wildlife. Detrimental

Britain in Hong Kong

amounts of litter and trash can be found in all of our country parks, and the issue needs to be addressed. Cleanups educate about littering and its effect on the natural world we all need and enjoy.

3. City Cleanup Challenge Every day, more than 10,000 street cleaners manually sweep and remove copious amounts of litter and trash from our city streets. Trash from our homes, offices, schools and neighbourhoods is bagged and sent to already-full landfills, or swept down storm drains and washed out to sea. We need to look at our urban behaviour and stem the flow of trash at the source. Cleaning our city streets, offices homes and schools will provide an eye opening experience for many. City Cleanup Challenges can take the form of a single day cleanup or a longer-term monitoring activity!

Get involved! Joining the Hong Kong Cleanup is brilliantly simple! Registration will begin in late August, and it’s FREE for everyone! Participation happens in four simple steps:

1. Create your Cleanup Simply visit HKCleanup.org and follow the simple steps to create your event. You’ll be able to choose your date, location and Challenge type, and invite friends instantly through social media or email. Your team can be anywhere from 3 people to 300 people, and can include colleagues, classmates, friends, or anyone you choose to invite! You can also create as many Cleanups as you wish. After signing up, you’ll have the chance to select your free brieﬁng session.

2. Attend your FREE brieﬁng session All team captains may attend a free group briefing. At the briefing, you’ll learn how to conduct a safe, fun, successful cleanup and get the most out of the experience. You will receive full support as well as educational materials and data tools. Many useful materials can also be downloaded from our comprehensive website.

3. Go clean! On your chosen date or term, your team will clean your chosen area, or activate your monitoring activity. You’ll not only be making Hong Kong more beautiful, but raising awareness, collecting vital data, and having a fun, engaging experience with your company/school/ group/family!

4. Share your results After completion, simply login and enter your Cleanup data to be included in our local and global reports as well as to be eligible for team prizes in the Challenge. You’ll also be able to share photos and stories, follow us on Facebook and Twitter, and check out what other teams have done. Watch out for your invitation to our Awards Ceremony in November!

What can you do? Ten simple things YOU can do to make a difference: 1. Bring a reusable bag to do your shopping. 2. Carry a reusable, BPA-free water bottle or thermos. 3. Vote with your dollar – avoid purchasing anything overpackaged, and choose products that are returnable, reusable or reﬁllable. 4. Separate the recyclables in your home for easier recovery and recycling. 5. Consider reusable containers and chopsticks or cutlery for purchased takeaway school or work lunches. 6. Donate used household products, clothing, and furniture to charity rather than throwing them away. 7. Write to your local district councillor and voice your support for better waste policies. 8. When hiking, camping or enjoying the outdoors keep your litter until you can dispose of it in a proper receptacle. 9. Get your community, school or workplace involved in monitoring and reducing waste, and set up a recycling system. 10. Sign up a team today for the Hong Kong Cleanup Challenge: visit Hkcleanup.org!

Lifestyle

All-inclusive

ELEPHANT ADVENTURE With so much on our doorstep here in Hong Kong we are often spoilt for choice on where to go for oneâ&#x20AC;&#x2122;s next holiday. The close proximity of Thailand, as well as the unique mix of what it has to offer keeps us coming back, time and time again. In early July I was lucky enough to go on a once-in-a-lifetime trip to the northern tip of Thailand for an all-inclusive stay at the Four Seasons Tented Elephant Camp. Whilst I had done a small amount of research beforehand nothing could have prepared me for the most unforgettable few days spent elephant trekking through lush jungle, whilst unwinding in superb luxury tented accommodation in the heart of the Golden Triangle.

Our adventure began as soon as we touched down in the northern city of Chiang Rai where we were met and transferred in the comfort of a private car for an hour further north through paddy ďŹ elds and past ancient hillside villages, eventually ending at the West Post, a small dock located on the banks of the Ruak River. Here, the camp host was waiting for us with some deliciously cold towels and cool refreshments, before ushering us down some steps and into a traditional long-tail boat. Barely uttering a word as we were taken upstream for ten minutes, we were all totally mesmerized by the beauty that surrounded us, when the camp suddenly came into view jutting out of the jungle, dramatically yet elegantly in front of us. Located in the heart of the Golden Triangle and set amidst 200 rugged acres along the river on the Thai-Burmese border the camp boasts stunning views of the lush tropical jungle, with the hills of Eastern Burma in one direction and the mountains of Laos towards the northeast.

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We were greeted at the camp pier by another group of friendly staff all exuding the same warmth and kind nature that seems to go hand in hand with the Thai people. Whilst checking in, the delightful camp manager, Vikas, told us the interesting story of how the Four Seasons Tented Camp had come into being. With a ban on logging imposed in Thailand in 1989, many elephants were no longer needed in the countryside and they soon became a burden on their owners. As such, many were taken to the cities where they were made to ‘entertain’ for a living. Under the guardianship of the Thai Government’s Elephant Conservation Centre (TECC) the Four Seasons set up an adoption programme to help rescue elephants from the streets, giving them the opportunity to live in a natural environment again as well as providing wages and benefits for their owners (the mahouts). The adopted elephants are now cared for on-site and can be seen roaming the jungle that surrounds the camp as well as during breakfast where guests have the unique opportunity to feed them. Checked in and ready to explore we were lead across an Indiana Jones-style suspension bridge and along the thick bamboo jungle pathway to our tent. One of just 15 that make up the entire camp, the canvas-covered, air-conditioned tent was huge with gorgeous comfy beds, a standalone copper bathtub, an outdoor rain shower and a large private sundeck with stunning views towards Burma and Laos. All the handmade furnishings and final touches are customized on 19th century expeditions from the region, so it had a real old-world rustic feel with sophistication and luxury all rolled into one. The tents are all built at enough distance away from each other, maintaining a sense of privacy and seclusion, whilst savouring the peaceful ambiance of the surrounding jungle. Leaving the sundeck and elephants, that had come to pay a visit, behind, we headed for the riverside free-form pool to enjoy an obligatory kir royale whilst having a plunge amongst the serene bamboo jungle. Our next port-of-call was the stilt-top Burma Bar where, in the warm evening light, we sampled the various cocktails on offer as the golden sun set over the Burmese hills. A delicious supper awaited us at Nong Yao restaurant followed by some cheese and wine tasting in the huge wine cellar. Phew – what a day! Exhilarated yet exhausted we collapsed into our pillow-top beds and it wasn’t long before the sound of geckos were the only noise to be heard. The next morning I somehow managed to peel myself away from the comfort of my bed and took part in an early morning exercise/yoga session in an outdoor pagoda, followed by a small hike up to the viewpoint to see the sunrise. A well-earned breakfast followed and was filled with much amusement due to the company of our hosts… the adorable baby elephants who were patiently waiting for the guests to feed them endless handfuls of bananas, pineapples and anything else on offer. Whilst they were gauging on their feast, I was meanwhile tucking into another incredible spread that had been laid in front of us which certainly set us up for the main activity of the trip. With a slight feeling of apprehension (mainly because of the sheer size of these vast mammals) we ventured towards the elephant camp to meet the mahouts and to be assigned an elephant each. It didn’t take long to feel more at ease thanks to our extremely patient guide and the mahouts themselves, who taught us various commands in Thai. Like a scene from the Jungle Book, we were soon marching along at a pleasant pace giving various orders, when suddenly I realised we were heading straight for the river. We had been told that the elephants like to bathe whilst trekking but I didn’t anticipate to what extent. Noone could contain their laughter as my elephant ‘Thom Kap’ totally submerged herself and I beneath the muddy water. All I could do was cling on for dear life but there was no stopping her as this was closely followed by a continuous shower from top to toe! Despite being utterly sodden on the trek back to the camp we were all in complete stitches. After a mandatory photo shoot with our new best friends we headed back to freshen up in the comfort of our tent which was definitely called for!

Lifestyle

After a nap on our sundeck and another exquisite meal of delicious Thai fare in Nong Yao we spent a cultural afternoon exploring the Golden Triangle by long-tail boat as we were taken along the Mekong river to the actual intersection where all three countries met, followed by a trip to a local market and temple. Back at the camp and to end a perfect day we headed to the Spa where we were treated to the aptly named ‘Mahout Recovery massage’ which worked wonders on our sore muscles. The spa setting was as spectacular as they get, sitting atop a hillside in an open environment amidst the jungle. It wasn’t long before I had totally passed out in the warm tropical breeze to the sound of birds singing and geckos calling. Bliss! It is safe to say that our stay at the Four Seasons Tented Camp was above and beyond all our expectations. Someone had told me before the trip that I was about to go on a holiday of a lifetime, the memories of which will stay forever, and it’s fair to say that I now know exactly what they meant. The ﬂawless way in which the camp is run, the attention to detail and the exemplary service that the staff provide at all times, complemented by the unique natural beauty of the surrounding setting, made for an unforgettable holiday and one which I hope I am fortunate enough to experience again one day. For more information about the Four Seasons Tented Camp please visit their website: www.fourseasons.com/goldentriangle/

To make a booking please contact Lightfoot Travel on +852 2815 0068 or email info@lightfoottravel.com

B e s p o k e t r a v e l c o m p a n y L i g h t f o o t Tr a v e l (www.lightfoottravel.com) is an Asia-based tour operator specializing in tailor-made holidays, honeymoons, short breaks, boutique accommodation and private villas in Asia and beyond.

Britain in Hong Kong

Upcoming Events Update on China-Hong Kong Double Taxation

YNetwork Ping Pong Tournament 2012

Event date: Venue:

Thu, 18/09/2012 - 12:30 - 14:00 Conference Room, 6th Floor, British ConsulateGeneral

Louis Lam and Monica Xu, Partner and Senior Manager of the International Assignment Services with PwC Hong Kong, will take you through the details of China’s new tax law — which aims to reduce the problem of double taxation, and what it means for HK residents working in China in an interactive seminar. The British Chamber of Commerce in Hong Kong has planned a Trade Mission to Macau on Thursday 20th September 2012.

Macau Trade Mission 2012 Event date: Venue:

Thu, 20/09/2012 - 12:00 - 19:00 Macau

The British Chamber of Commerce in Hong Kong has planned a Trade Mission to Macau on Thursday 20th September 2012.

The Statutory Residence Test: What You Need to Know Event date: Venue:

Thu, 20/09/2012 - 12:30 - 14:00 Conference Room, 6/F, The British ConsulateGeneral

On 6th April 2013, the old uncertainties will largely disappear as three centuries of case law and the very limited pieces of statute law are swept away and replaced by a new Statutory Residence Test. In this presentation, Martin Rimmer, Tax Manager, Asia-Paciﬁc, The Fry Group, will outline the key pillars behind each of the three tests, provide worked examples and will equip you with an understanding of the new rules. He will also explain where the danger areas lie and where care will still be required.

Thu, 20/09/2012 - 19:30 - 21:30 SCAA, 8/F, Table Tennis, Sports Complex

The Young Executives’ of the British Chamber have organised their ﬁrst ever Ping Pong Tournament, and it is set to be a fun-ﬁlled night!

Women in Business Networking Lunch Event date: Venue:

Wed, 26/09/2012 - 12:30 - 14:00 Oolaa

Come and join the Women In Business Networking Lunch, a great chance to network with fellow female chamber members. September’s lunch will take place at Oolaa in Soho. Non-members are very welcome to attend.

Shaken Not Stirred Networking Drinks Event date: Venue:

Thu, 27/09/2012 - 18:30 - 20:30 The Globe

Supported by the Environment Committee, this month’s networking drinks we aim to help build waste recycling awareness among Chamber members and inspire all to take action over drinks and canapés at one of Hong Kong’s best-loved local!

The British Chamber and Tanner De Witt present: Breakthrough Boxing 2012 Event date: 13 Oct 2012 - 19:00 - 23:59 Our popular annual charity boxing event, held in association with Operation Breakthrough. Don’t miss this night of action and excitement at the Hong Kong Football Club on Saturday 13th October 2012.

Past Events Balancing Tradition and Modernity: The Future of Retirement in East Asia – Dr Richard Jackson, Centre for Strategic and International Studies Kindly brought to us by Prudential, a special lunch event took place in the Island Shangri La hotel on Thursday the 12th of July, when Dr Richard Jackson from the Center for Strategic and International Studies in Washington D.C gave a presentation about the major ﬁndings of a recent survey of workers and retirees in East Asia. Commissioned by leading life insurer Prudential plc, a survey of workers and retirees in six major geographies in Asia was carried out by the Center for Strategic and International Studies (CSIS), a US-based public policy research institution. The study focused on China, Hong Kong, Malaysia, Singapore, South Korea, and Taiwan and highlighted issues associated with demographic and cultural shifts, the East Asian population’s changing attitudes towards retirement, and implications for governments and businesses.

Well Connected. Worldwide.â&#x201E;˘

crownrelo.com/hongkong

MANAGEMENT & LETTING PRIME CENTRAL LONDON A well tried, tested. Comprehensive and personal service provided by an experienced and dedicated team, who understand the needs of the International Investor. Letting * Management * Refurbishment * Online Statements * Tax Returns for Overseas Investors * Regular Visits by Directors. Contact: Perry Bousfield Neil West Director Property Manager Perry.bousfield@primeportfolio.com neil.west@primeportfolio.com Prime Portfolio 45 Charles Street Mayfair London W1J 5EH Tel: +44 (0)207 409 0209 Fax: +44 (0)207 629 6050 www.primeportfolio.com

Member Discounts Food and Beverage and Accommodation Accor | Members will receive 10% discount on top of the lowest rates that Accor’s Asian hotels are offering on the day. This applies to over 1600 Sofitel, Pullman, MGallery, Novotel, Mercure, Thalassa & Orbis hotels worldwide. You will also receive 5% discount on top of the best unrestricted rates for hotels including ibis (in specific countries), All Seasons & Hôtel Barrière. For more information please contact Regina Yip on 2868 1171 or email regina.yip@accor.com Alfie’s | Members of the British Chamber of Commerce can benefit from a 10% discount at this chic restaurant in Hong Kong. To make a reservation please call 2530 4422 or email booking.alfies@keeclub.com Berry Bros. & Rudd | Members can benefit from a 10% discount on all retail prices as well as receiving invitations to free tastings and other wine events during promotional period. For more information please call 2907 2112 Courtyard by Marriott Hong Kong | Members will receive a 10% discount on food only in MoMo Café. To make a reservation please call 3717 8888 Dot Cod | All members of the British Chamber of Commerce of Hong Kong will receive a 10% discount on the bill. For more information please call 2810 6988 or email dotcod@hkcc.org Grand Hyatt Hong Kong | 15% discount on food and beverage at The Grill and 10% discount on treatments upon spending HK$1,000 at Plateau Spa. To make a reservation please contact The Grill on 2584 7722 or the Plateau Spa on 2584 7688 Hyatt Regency Hong Kong, Tsim Sha Tsui | 10% discount at The Chinese Restaurant, Hugo’s, Cafe and Chin Chin Bar (except during happy hour). To make a reservation please call 2311 1234 JW Marriott Hotel Hong Kong | Members will receive a 10% discount on the total bill at Man Ho Chinese Restaurant, JW’s California, Marriott Cafe, The Lounge, Riedel Room @ Q88, and the Fish Bar & Grill. To make a reservation please call 2810 8366 Le Méridien Cyberport | Members can book a Smart Room at the special rate of HKD1,600 including a daily eye-opening buffet breakfast (subject to availability). You will also receive 20% discount at 5 of the hip restaurants and bars that the hotel has to offer. Furthermore, when you book the 21-day long room package at HKD23,100 you will receive a ‘Round Trip Limousine Service’. For more details please call 2980 7785 Hong Kong Skycity Marriott Hotel | Members will receive a 10% discount on the total bill at Man Ho Chinese Restaurant, SkyCity Bistro, Velocity Bar & Grill, and The Lounge (Promotion does not apply to alcoholic beverages). To make a reservation please call 3969 1888 Renaissance Harbour View Hotel | Members will receive a 10% discount on the total bill at Michelin Star Dynasty Chinese Restaurant, all day dining at Cafe Renaissance, Scala Italian Restaurant and the Lobby Lounge. To make a reservation please call 2802 8888 The Mira Hong Kong | Members will be given special room rates, a complimentary upgrade and fantastic discounted rates on the Spa suite package (subject to availability). For more information please contact Connie Kwan on 2315 5666 or email connie. kwan@themirahotel.com W Hong Kong | Members will receive fantastic offers at Kitchen and Sing Ying. Dine at either of these restaurants and receive complimentary discount vouchers to use at your next meal. For more information or to make a reservation please call 3717 2222

Britain in Hong Kong

There are many great benefits of being a member of The British Chamber of Commerce. One of those is the Member Discounts programme which is an exclusive package of discounts that range from discounted car rental, reduced hotel accommodation, airfares and even relocation costs. Every six months we invite members to prepare a tailor made offer to all the members of the British Chamber. You can find these benefits listed below and for more details please visit our website www.britcham.com

Home Allied Pickfords Hong Kong | Allied Pickfords will extend a free local move for any Home Search completed by SIRVA Real Estate. For more information please call 2823 2089 or email olivier.jourdan@sirva.com.hk Bowers & Wilkins | B & W are offering members a 10% discount on all listed price items in the B&W Showrooms in Tsim Sha Tsui and Central. For more information please call 3472 9388 or 2869 9916 Colourliving | As a member of the British Chamber of Commerce, you can enjoy a 10% discount on all normal price merchandise when shopping at Colourliving in Wanchai. Please call 2510 2666 or visit www.colourliving.com

Travel & others Avis | Members can receive up to 20% discount off standard rates on car rental bookings. To make a booking please call 2882 2927 or visit www.avis.com.hk British Airways | As a member of the British Chamber of Commerce you can enjoy an exclusive offer of 7% discount from British Airways. To make a booking please visit www.britcham.com/memberdiscount/british-airways Compass Offices | Compass Offices, Hong Kong’s largest Serviced Office provider, offers members a 10% year round discount on meeting rooms, a free one hour Telepresence or Video Conferencing session and a 3 month complimentary Virtual Office package. For more information please call 3796 7188 or email hksales@ compassoffices.com Flight Centre | Members will receive HKD150 off the first booking made as well as a complimentary Airport Express ticket per booking. For all holiday and flight enquiries please call Paul Jeffels on 2830 2793 or email paul.jeffels@flightcentre.com.hk Regus | Britcham members will receive a complimentary six-month Businessworld Gold card that gets you access to 1,200 business lounges in prime central city business locations in Asia and around the world. For more information or to accept this offer please visit www.regus.hk/localpartnership and enter the activation code APHKBCC in the Promotional Code box. The Hive | The Hive is offering one additional month’s membership at no extra charge for any member who signs up for 6 months. For further details, please visit www.thehive.com.hk Virgin Atlantic Airways | Special offers to London are available exclusively for members of the British Chamber of Commerce. Please call 2532 6060 for more details or to make a reservation VisitBritain | British Chamber members can get 5% on all purchases from VisitBritain’s online shop by entering the code TR7DE67! at the checkout. Please visit www.visitbritaindirect.com/world for further details.

Terms and Conditions apply. All member discounts are subject to availability. If you are interested in providing a tailored offer to our members or for more information please contact Emily Ferrary on 2824 1972 or email emily@britcham.com

MEMBER GET MEMBER 2012 the to l a rr fe re l u sf es cc su a ke a M ce er m om C of r be m ha C sh ti ri B two! and enjoy a fantastic meal for The British Chamber is delighted to announce that the Member Get Member 2012 campaign is well underway! If you successfully introduce a company that results in them becoming a member of the Chamber, you will receive a fantastic dinner for two courtesy of one of our top member restaurants in Hong Kong. Not only that, all referring members will be entered into a prize draw to win a $2,000 voucher to go towards your holiday provided by Flight Centre!

AND if you happen to refer the most new members to the Chamber, you are in for a real treat for you and your friends! A complimentary dinner for four at Sakesan, the newest Robatayakibar, courtesy of Cafe Deco Group.

Sakesan Sakesan is the newest Robatayakibar in the heart of the bustling Soho area. It offers a range of exquisite dishes fresh from their robata grill, as well as other Japanese culinary delights, all rendered with a modern twist. Designed by Fiona Bagaman and Mirei Lim, Sakesan uses different wood and stone tones with ﬂashes of black and gold to create a serene, relaxed and cool space. Funky, colourful sake barrels wrap the bar area and frame the individual dining booths and an illuminated Japanese urban scene gives the bar a warm glow as well as striking visuals. Signature dishes include homemade steamed tofu, salmon miso, lobster dumplings and SAKESAN black cod. There is also a cool bar featuring a top range of sakes, shochus and awamoris with a superb range of cocktails made with these classic Japanese ingredients. To compliment this they also offer a selection of some of the ﬁnest, most thirst quenching beers to emerge from Japan.

To enter: • • • • •

Consider who among your contacts might be interested in joining the Chamber Email dovenia@britcham.com with the name and contact details of your suggested company If appropriate, contact your suggested company and let them know that the Chamber will be in touch The Chamber will follow up with each suggestion directly If your referral is successful, the Chamber will contact you with details of how to book your dinner. Your name will also go into the prize draw which will be drawn in March 2013.

Britain in Hong Kong

So what are you waiting for? Spread the word throughout your network to enjoy a complimentary meal for two at one of these fantastic member restaurants:

Lobby Lounge, Conrad Hong Kong Featuring the spectacular views of the Hong Kong skyline and live entertainment, the Lobby Lounge is the ideal venue for private meetings or relaxed gatherings with friends. From salad bar to noodle station, and delectable hot dishes to exquisite desserts, the Southeast Asian themed supper buffet showcases an impressive range of more than 50 scrumptious all-time favourites.

The Bostonian, The Langham, Hong Kong This well-established restaurant has been a Hong Kong favourite for well over a decade. Located at the lower lobby level of The Langham, Hong Kong, The Bostonian has an excellent reputation for its superb steaks, and more recently its fully sustainable seafood menu. Featured by one of Hong Kong’s inﬂuential restaurant bibles, “The Hong Kong Best Restaurant Guide” since 2000 and recommended by The Michelin guide, the Bostonian is a hallmark for impeccable service and exceptional food. Guests can indulge in a tantalising array of fresh seafood from around the world at the “Raw Bar”, including home-made smoked salmon, prawns, crabs and freshly shucked oysters. The enticing menu also includes gourmet favourites such as maine crab cakes, sautéed foie gras, clam chowder, as well as separate menus for the restaurant’s specialties – the Boston lobster galore, seafood sharing platters and Bostonian grill.

KITCHEN, W Hong Kong Kitchen is a modern bistro with a capacity of 200, reflective of W’s signature stylish and fun design. Upon arrival to KITCHEN, the mad hatter’s tea party in “Alice in Wonderland” brings guests to a world of fantasy. Cats play and jump around the stacks of plates, inviting guests to join their games too. KITCHEN’s modern interpretation of timeless classics and equally innovative original masterpieces ﬁll a menu that’s designed to tantalize and satisfy even the most discerning gourmands. Guest can indulge in the fun world of kitchen, while relaxing in the pleasant and interactive dining experience, sampling the delicate cuisine on offer from all over the world.

cafe TOO, Island Shangri-La, Hong Kong T The innovative cafe TOO brings casual dining to a higher level of creativity. Their ten cooking theatres, each featuring a different culinary style, are showcases for the best of international cuisine as well as stages for their chefs' engaging performances.

Café Renaissance, Renaissance Harbour View Hotel Hong Kong Café Renaissance is the perfect place for all day dining. Located on the Mezzanine ﬂoor, the 210-seat all-day dining café serves a wide variety of dishes from all over the world. Café Renaissance serves wholesome breakfasts, chef crafted lunches and dinner buffets plus à la carte menu daily and brunch on weekends, in a warm and welcoming atmosphere. In addition to the great array of fresh seafood delights using the freshest ingredients, guests can also enjoy a tantalizing array of international favourites and local specialties from live cooking stations.

Terms & Conditions • • • •

You must be a member of the British Chamber to be eligible for this offer The dining vouchers will only be provided if your referral results in a new member for the Chamber This offer is valid for all members whose referral results in a new Corporate, Overseas or Startup member of the Chamber. It does not apply to Additional members or additional YNetwork members The Chamber will allocate the restaurant vouchers. Members will not be able to choose which restaurant they visit and must adhere to the terms and conditions

News Cleaner Waters for Hong Kong Hong Kong’s Director for Environmental Protection has announced a new scheme to encourage ocean-going vessels to switch to low sulphur fuel while in Hong Kong waters. Vessels which comply while berthing in Hong Kong will enjoy a 50% reduction in dues for port facilities and lights. The incentive scheme will come into force on 26 September 2012 and will last for 3 years.

Reversal in Regional Luxury Property Market Emerging South East Asian cities are leading the charge in luxury residential capital value growth across Asia, according to the latest Residential Index from Jones Lang LaSalle. Jakarta and Manila registered double digit increases of 19.2 percent and 10.5 percent respectively in the 12 months to end-Q2. Meanwhile, Hong Kong, Singapore, Shanghai and Beijing have seen annual declines in high-end residential prices of up to 8 percent.

Finance Professionals Staying Put The latest Movement Survey in Hong Kong from career site network eFinancialCareers has found that 8 in 10 Finance Professionals Choose to Stay in Hong Kong Amidst Global Economic Uncertainty. The survey, exploring the attitudes of 653 Hong Kongbased ﬁnance professionals towards relocation and working in Hong Kong, revealed that over 8 in 10 (82%) of them have no intention of leaving Hong Kong in 2012. The city’s stable and well-developed economy, supported by continued growth from mainland China, makes it an ideal market for finance professionals to wait out the downturn. A similar proportion (81%) also said they would recommend Hong Kong as a place to live to other ﬁnance professionals.

Increase in ‘global nomads’ weighing on expatriate benefit provision Mercer’s 2011/2012 Benefits Survey for Expatriates and Internationally Mobile Employees survey has highlighted the challenges companies face as a result of the growing number of ‘global nomad’ employees. While the number of employees on international assignments has remained relatively stable over recent years, the percentage of “global nomads” (employees who move from country to country on multiple assignments) and long-term expatriates has increased by two thirds since 2008/2009, causing challenges for employers when it comes to providing expatriate benefits. One effect this has had is that 53% of companies have seen increases of 6% or more to their international medical plan premium. However, provision of expatriate benefits remains a key priority for multinational companies – 85% of survey respondents have specific procedures in place to monitor the success of expatriate benefit programmes. Employers are reportedly eager to ensure that their expat benefits programmes not only support business and HR strategies but also meet their assignees’ needs. The survey covers 288 multinational firms world-wide which, altogether, employ 119,000 expatriates (up from 94,000 in the 2008/2009 survey).

Garuda Indonesia Awarded ‘World’s Best Regional Airline’ Accolade at the World Airline Awards 2012 Garuda Indonesia, the Indonesia national flag carrier has been named “The World’s Best Regional Airline” and the “Best Regional Airline in Asia” at the SkytraxWorld Airline Awards Ceremony held at Farnborough Air Show 2012, London. The awards, presented to Mr. Emirsyah Satar, President & CEO of Garuda Indonesia by Mr. Edward Plaisted, CEO of Skytrax, were given to Garuda based on a global customer satisfaction survey conducted over a 10-month period. The survey, which targeted more than 200 airlines, from global to domestic carriers, interviewed 18 million passengers from 100 different countries via questionnaires, telephone and online portals about their satisfaction across more than 38 key performance indicators of airlines’ service and product.

Survey reveals cautious optimism among businesses in Hong Kong According to the Grant Thornton International Business Report (IBR) in Hong Kong, businesses are only cautiously optimistic about the economy over the next 12 months. Expectations for employment remain below 2011 levels whilst the availability of a skilled workforce and bureaucracy are both far less of a constraint than in 2011. The survey, targeting over 200 businesses – ranging from medium to large in size with a total employment of between 100 and 499, takes in the views of more than 12,000 business leaders in 40 economies around the world.

Hong Kong business leaders show strong support for greater shareholder involvement and transparency in setting senior executive compensation More than three-quarters (78%) of business leaders in Hong Kong believe that senior executives at large public companies are paid too much, leading to a call for greater shareholder involvement in establishing remuneration policy for senior executives (80%) and disclosure of the remuneration policy and individual remuneration of executive and non-executive directors (68%), according to the research from the Grant Thornton International Business Report (IBR). These results are in line with the latest amendments by the Stock Exchange of Hong Kong (SEHK) on corporate governance requirements for companies, which should be implemented by stages in January, April, and December 2012.

New Appointments BDO has recently appointed Gabriel Wong as their new Principal of Specialist Advisory Services. Gabriel is a CPA in Hong Kong and a member of the ACCA, and has in-depth experience advising clients on regulatory investigations, fraud investigations, breach of contract and dispute resolution, anti-bribery and corruption, irregular rebates and kickbacks, misappropriation of assets, financial statement manipulation, employee/management conflicts of interests, review of internal controls, forensic risk reviews and due diligence, compliance, anti-money laundering (AML) compliance reviews, and Foreign Corrupt Practices Act (FCPA) related investigations and reviews. He also has experience in working in a regulatory authority’s enforcement division performing investigations into complaints regarding financial institutions. Fern Ngai, Head of Corporate Affairs at Standard Chartered Bank, will join Community Business as its new Chief Executive Officer effective 5 October 2012. Community Business, a leading non-profit organisation based in Hong Kong, works with some of the world’s largest businesses in Corporate Social Responsibility. Ms Ngai has worked at Standard Chartered for 25 years and has held leadership roles at a local and regional level, previously in the Human Resources, Technology and Operations, and Asia Governance and Strategic Initiatives functions. As part of her Corporate Affairs role, she is responsible for sustainability and she has been the bank’s Diversity and Inclusion champion, a Living with HIV Ambassador and Director of Programme Care, an employee-led community care and volunteering organization. Ms Ngai is also the Chair of the Board of KELY Support Group, a local charity dedicated to supporting young people. Howse Williams Bowers has expanded its practice areas by adding a Family and Matrimonial Practice Group led by experienced practitioners, Linda Heathfield and Karen Lam. Linda joins HWB as a Partner and Karen joins as an Associate with effect from 1st September 2012. These most recent HWB recruits see HWB grow to 70 partners, lawyers and staff, with additional hires to be announced soon. Linda worked for Richards Butler Hong Kong in the 1980s before qualifying as a solicitor and specialising in family and matrimonial law. Linda has built up a substantial family and matrimonial practice and is regarded as one of the leading lawyers in her field in Hong Kong. Linda is moving to join HWB with her existing team and her practice. Karen was admitted to practice law in New South Wales, Australia in 2007 and Hong Kong in 2008. Karen’s practice focuses on family law matters with emphasis on matrimonial disputes including divorce and separation, child custody, wardship and financial applications, settlements and injunctions. Karen’s other areas of focus are will drafting, probate and general civil litigation matters. Karen has litigation experience in the High Court, District Court and Family Court in Hong Kong.

Co-hosted by Bloomberg, Compass Offices and the British Chamber of Commerce You’re invited to the first Financial Entrepreneurs Series to be co-hosted by Bloomberg LP, Compass Offices and the British Chamber of Commerce. Our five-part seminar series will motivate, inspire and inform financial professionals launching a business in Hong Kong. Themes include: how to launch and grow a Family Office, Hedge Fund or Private Equity Fund.

Event Schedule Seminar 1

Becoming a Financial Entrepreneur: September 13, Launching a Family Office, 6.00-8.00pm Hedge Fund or Private Equity Fund Starting a Family Office: Demystifying Single and Multi-family Offices

September 26, 6.00-8.00pm

Seminar 3

Launching a Hedge Fund: Growing the business beyond Alpha

October 11, 6.00-8.00pm

Seminar 4

Emerging Private Equity Funds: Identifying Value in Illiquid Opportunities

October 24, 6.00-8.00pm

Seminar 5

From Headspace to Desk Space: Managing Operations, Compliance and Risk

November 1, 6.00-8.00pm

Seminar 2

The British Chamber of Commerce is delighted to announce that CBRE is supporting the SME Committee’s SMART TIPS FOR SMALL BUSINESSES series of lunchtime seminars aimed at entrepreneurs and small business owners in Hong Kong.

The series is co-ordinated by the British Chamber’s SME Committee, a group of successful entrepreneurs, business owners and experts who understand the challenges faced by small businesses every day. The series aims to provide practical know-how as well as market analysis tailored to small business needs. The series is open to members and non-members.

With the support of CBRE, the SME Committee is looking forward to hosting a fascinating series of seminars this year.

The series features commentary, experiences and lessons learned from Asia-based thought leaders and industry experts including: John Dawson: Presenter, Bloomberg Television Mike McDonough: Chief Economist, Bloomberg Asia Charlie Luchangco: Convergence Capital Chuak Chan: COO, Ascalon Capital Managers Matthias Feldman: Senior Partner, Funds, Clifford Chance Ying White: Senior Partner, Funds, Clifford Chance Stuart Somer: Regulatory and Compliance Advisors, Corporate Support Tony Mitchell: Willis Global Insurance Darren Bowdern: Senior Partner, Tax, KPMG

Baker Tilly Hong Kong Business Angel Programme

Any many more!

Who should attend? • • •

Take your business to new heights

Financial analysts, traders and portfolio managers with extensive institutional experience thinking about a career transition Those starting, considering launching or joining family office, hedge fund or private equity fund C-level professionals wishing to better understand the business and operations of managing a fund th

Series will be held at Bloomberg ofﬁce, 27 ﬂoor, Cheung Kong Centre, 2 Queen’s Road Central, Hong Kong.

Calling all Start Ups! If you have a great idea or have started a new business and are looking to grow, the Chamber would like to help. The Baker Tilly Hong Kong Business Angel Programme, run by the British Chamber of Commerce, brings entrepreneurs and investors together to create exciting new partnerships. It gives entrepreneurs with new business ventures, or SMEs looking for funding to expand, the opportunity to present their business plan to potential investors (known as Angels). Applicants, who do not need to be members of the British Chamber of Commerce, should be seeking to raise between USD100,000 to USD2,000,000. Short-listed applicants will be given advice and assistance by a sub-committee of experienced professionals. The next event will be taking place on Thursday 22nd November and the deadline for applications is Monday 8th October 2012. If you’re an entrepreneur or SME looking for investment, and would like to ﬁnd out more about our programme, please visit angel.britcham.com or email emily@britcham.com

We’ll conclude each session with refreshments and the opportunity to network with panelists and like-minded entrepreneurs. Detailed agenda and speaker lists for each seminar to follow. For more information please contact mandy@britcham.com