Oct o be r 2 0 1 1 • Vo l 2 6 • N o 9
In This Issue
Destination PAGE
Hong Kong
4
Recruiting Hurdles
By Sam Powney The HKTDC’s visit to the UK matches well with Britain’s exhortation to its entrepreneurs to ‘look east’. With a push from the UK government and a pull from Hong Kong’s administration, many SMEs are considering making the jump.
PAGE
6
Entrepreneur 101
Admittedly
, Hong Kong’s
no means ignored. Lord Green was at the
by a more determinedly global approach.
Chief Executive Donald Tsang may not
‘Think Asia, Think Hong Kong’ symposium,
Steve Price of HSBC explains why this has
be the most internationally familiar among
where he mischievously updated Horace
been dubbed the ‘European paradox’, ‘On
government heads, but it seems certain that
Greeley’s famous epithet, ‘Go West, young
one hand, the nations across the Channel
his visit to Europe in September attracted the
man’, to a more current though less catchy,
are close, culturally familiar and economically
kind of attention he was looking for. Heading
‘Go East, young person’. In other words,
similar, and present fewer trade barriers. On
a major Hong Kong Trade Development
the chancellery wants to extend London’s
the other, opportunities to trade in a relatively
Council (HKTDC) delegation, Mr. Tsang gave
lucrative internationalisation of finance and
saturated and low growth market are limited.’
the keynote speech to over 700 people at the
entertainment to Britain’s manufacturing and
He is not alone in pointing out that while
‘Think Asia, Think Hong Kong’ symposium in
services sectors too.
the European market is still the bedrock
London in mid-September, emphasising his
PAGE
8
of the British economy, British businesses
city’s key place in the development of China.
Business Secretary Vince Cable emphasised
are certainly having to look further afield for
‘Hong Kong is the perfect entry point to the
that the long historic relationship between
faster growth. Of the Sunday Times HSBC
huge Asian market, as hundreds of British
Hong Kong and Britain was now being
International Track 100, monitoring Britain’s
companies already know,’ he said.
‘transformed into a much more dynamic and
fastest growing private firms with international
forward-looking partnership.’ Having reversed
sales, half sought out opportunities abroad in
Meanwhile, from the British government’s
its post-war economic retraction, Britain’s
their first, second or third year, and China is
side, the message chimes very well with
European focus of the last few decades is
now an export destination for no less than 41
that of the HKTDC. No doubt a few of the
now apparently being gradually superseded
of them.
Property Market
old guard in both of Britain’s major political parties will experience a gut feeling of mistrust towards the present government’s exhortations to British SMEs to look beyond the shores of their native land, but the signal from the cash-strapped British government is
PAGE Design
9
clear – British businesses should think global. Both George Osborne and Lord Green, who visited us here earlier this year, reiterated that the government would lend every support possible to British businesses considering
Plus
expansion overseas. Asia is the prime focus,
• News / New Appointments • Events • Shaken Not Stirred
although other regions of the world are by (Continued on page 2)
www.britcham.com
COVER STORY (Continued from cover)
Facts and Figures
Hong Kong’s attraction for SMEs wanting to do business in the region is plain, especially those looking towards mainland China. Hong Kong’s legal system offers SMEs a trustworthy and, particularly in the case of British companies, an easily recognisable framework
Hong Kong
of security. Early this month, NatWest International, in partnership with the Centre of
•
The HKTDC has 11 offices in China, and nearly 30 more worldwide. Its online
Future Studies, released their research on the extent to which countries promote the
global databank lists around 700,000 business contacts.
entrepreneurial spirit. Hong Kong made the top three easiest places in the world to start up a business, along with Singapore and the US.
•
90.9% of Hong Kong’s GDP comes from services. According to government figures, finance is the fastest growing sector (finance, insurance, real estate,
However, the problems which plague the major foreign firms in Hong Kong are likely to
business services), contributing 25% of GDP, while employing 14.5% of
be even more off-putting to SMEs. The shortage of international school places and lack
the workforce.
of affordable housing hits entrepreneurs, many of whom have young families, hardest of all. As Chris Riley points out in more detail on page 6 (Entrepreneur 101), it is precisely
•
In March this year the HKTDC launched its first forum for English-speaking SMEs
during the process of starting up a business that entrepreneurs need to keep lifestyle
and entrepreneurs
costs to a minimum. In the familiar competition between Hong Kong and Singapore vying to be Asia’s paramount international port, Singapore still has the lead in terms of
UK •
99.9 per cent of British businesses have fewer than 250 employees. These
schooling, accommodation and air quality. In terms of overall quality of life, for the last few years the NatWest survey has found Australia to be the best place for British expats in employment.
represent around 49% of turnover (2009 BIS figures). The share of turnover represented by British SMEs has decreased by 3% over the last decade.
Whether the HKTDC’s dream of attracting foreign SMEs to Hong Kong will come true remains to be seen. The government has made the process straightforward and attractive
•
A greater share of people work for major corporations in the UK than anywhere
for foreign start-ups and, as the HKTDC’s recent road-trip shows, is increasingly active
else in the EU.
in broadcasting this directly to foreign SMEs. The desire from foreign entrepreneurs, especially from British businesses, is keen. At the same time, Hong Kong’s schooling,
•
Only 3% of the Sunday Times HSBC 100 Track companies found local
tertiary education, housing, environmental resources, even its airport, are increasingly over-
competitors an impediment to their growth, presumably demonstrating a
stretched – all of which issues affect the general population just as much as the expat
preponderance of British companies offering high end services.
community. In other words, the city needs a new drive to ramp up infrastructure. Hopefully, the election of the new Chief Executive will expedite the process.
2
w w w . b rit ch am .co m
The Magazine of the British Chamber of Commerce in Hong Kong
CHAIRMAN’S MESSAGE
Editors
Over the past few months, there has been much debate about the health of the global economy, which has now begun to show signs
Ian Cruz Sam Powney
of stabilising, since the crisis call for concerted actions by governments went out during last month’s annual meetings of the IMF and the World Bank in Washington.
Design Bill Mo Alan Wong Ken Ng
We must watch the euro crisis closely as Asia does a lot of trade with Europe. Governments, economies and the business community
Advertising Contact
Britcham we can bear witness to this fact, and help enhance the cause of British businesses in Hong Kong. As economies across the
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: Ian@speedflex.com.hk sam.powney@speedflex.com.hk Advertising: charles@speedflex.com.hk
cannot afford to ignore this fact, as what happens with the Euro will impact Asian economies and markets in years to come. Here at
Asia Pacific region continue to thrive despite global uncertainties, we must change to meet the challenge of a more crisis-beset euro area. We need to rely more on domestic demand and more on domestic capital.
On the business front, Asia Pacific is holding up well, growth is strong across the region, foreign domestic investment is still powering ahead, mainland Chinese investment into Hong Kong is incredibly strong, and we are seeing the city develop into a global financial epicentre, sitting on the main highway between London and New York. The China factor for all Hong Kong businesses in amazing; it is an essential and exciting source of business.
Britcham is a place with much bustle, which is a true reflection of the social and business ecosystem we have in Hong Kong. During this month, we will be organising the Women in Business Networking Lunch, which is a fantastic opportunity to network with fellow female chamber members. Another event to attend is courtesy of the Chamber’s Logistics Committee, who have organised a tour of Hongkong International Terminals at Kwai Tsing Port to learn about the port's development and operations, see HIT’s control centre
British Chamber of Commerce Secretariat
and go on a coach tour of the terminal berths and storage yard facilities.
Executive Director
In other Chamber news and events, in mid October at the Captains of Industry Luncheon to be sponsored by KPMG, Sir C K Chow,
CJA Hammerbeck CB, CBE
Chief Executive Officer of MTR Corporation will share "The MTR Story", and talk about the twists and turns of the company's journey
General Manager
to becoming one of the world's leading railways and the value that it has created for all stakeholders.
Cynthia Wang
Marketing and Communications Manager
And there is more, an informal curry and quiz night is being organised by the Chamber's Scottish Business Group Committee. This will
Emily Ferrary
be a networking night with a difference where one can meet fellow members and guests, take part in the general knowledge quiz and
Special Events Manager
win loads of prizes.
Becky Roberts
Events Assistant Mandy Cheng
Business Development Manager Dovenia Chow
Membership Executive
In early November, at the Joint Business Community Luncheon we will have the privilege to hear Chief Executive of the HKSAR, Mr. Donald Tsang. At the luncheon, the Chief Executive will further elaborate his policy address and talk about the government's initiatives on tackling issues related to housing, ageing population, and the wealth gap in the year ahead.
Lucy Jenkins
Finally, it is very important that we get things right at the Chamber and as we move ahead with our duties, I ask you to please share
Accountant
your thoughts on how we can make the Chamber an even better enabler for business in Hong Kong. I hope that you enjoy this issue
Michelle Cheung
of the magazine.
Executive Assistant Jessie Yip
Secretary Yammie Yuen Kevin Taylor
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.
ATTRACTING INTERNATIONAL TALENT . . . . . . . . . . . 4 HONG KONG’S PRIVACY LAW . . . . . . . . . . . . . . . . . . 5 ENTREPRENEUR 101. . . . . . . . . . . . . . . . . . . . . . . . . . 6 PROPERTY MARKET . . . . . . . . . . . . . . . . . . . . . . . . . . 8 DESIGN: INTERVIEW WITH STEVE FRYKHOLM . . . . 9 TRAVEL: THAILAND . . . . . . . . . . . . . . . . . . . . . . . . . . 10 GROWING TOGETHER . . . . . . . . . . . . . . . . . . . . . . . 12
RECENT EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . UPCOMING EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . NEWS AND NEW APPOINTMENTS . . . . . . . . . . . . . . NEW MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MEMBER DISCOUNTS. . . . . . . . . . . . . . . . . . . . . . . . SHAKEN NOT STIRRED . . . . . . . . . . . . . . . . . . . . . . .
14 15 16 17 18 19
BUSINESS
Losing Its Shine By Matthew Hill, Managing Director, Ambition Hong Kong Summing up Hong Kong’s increasing difficulties in recruiting and retaining international talent, Matthew Hill lays out a roadmap for the business community to take action
Recent
redundancy announcements have shown that, despite Asia’s comparatively
buoyant economic sentiment, Hong Kong is far from immune to the danger of job losses.
Firstly, the city is becoming globally infamous for its poor air quality. Three quarters of companies in a recent survey reported that air quality is hindering their recruitment and retention of staff. The government offers obfuscation and inertia, rather than decisive action
The threat comes in part from the wider vicissitudes of the global economy, but also from
to improve both respiration and confidence.
our city’s policies – or lack thereof – on labour market development. The benefits of Asia’s growth do not automatically accrue to Hong Kong. At Ambition, we have seen a 58%
Secondly, Hong Kong is fast approaching a schooling crisis. The British Chamber of
increase in the number of candidates expressing interest in relocating to Singapore from
Commerce in Hong Kong reports that 75% of its members are finding their business
Hong Kong over the same period last year. Whilst there are some signs of people moving
hampered by lack of school places. Earlier this year, the International Business Committee,
for career advancement, it is quality of life considerations that are paramount.
which provides a platform for Hong Kong’s business sector to provide the government with feedback, made a compelling case that the lack of Hong Kong primary school places is
An unholy trinity of factors is pushing Hong Kong off the pace in terms of catering for the
hurting business and affecting Hong Kong’s reputation.
needs of an international workforce. The current debate around the revision of the government subvention for the English Schools Foundation offers scant evidence that either the Bureau of Education or Legco grasp the full economic significance of providing affordable English-medium education. ESF is not a colonial hangover; it is an important element in Hong Kong’s standing as a world city. Finally, rapidly spiraling housing costs are moving even modest dwellings out of the reach
Take your business to new heights
of many skilled foreign workers – and before the government leans on employers to pick up the tab, it should first ask international banks why they are laying off staff. The old days are behind us, and comprehensive expat packages are no longer commonplace. The failure to address this triple threat to environment, school places and housing is starting to do real damage. If the Hong Kong government wants to avoid more jobs transferring to Singapore and the mainland, it needs to develop a taste for decisive action.
Baker Tilly Hong Kong Business Angel Programme Matching Start Ups and Investors This quarter’s selected entrepreneurs and SMEs showcased their business plans at the eighth Baker Tilly Hong Kong Business Angels breakfast event in front of British Chamber investors in late September. Meanwhile, submissions are already coming in for the next event which will take place in the first quarter of next year. 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.
But a business community which shouts from the sidelines will elicit little sympathy – and rightly so. International business needs to engage with these issues, rather than simply complaining. Two principles should guide us: Firstly, creative thinking is needed. The same lateral thinking we routinely bring to business obstacles needs to be applied to the policy challenges Hong Kong faces – and offered to the government in a collaborative spirit. Secondly, we should remember that we live in a city with well over a million people living in poverty, and amongst the world’s worst economic inequality indicators. Demonstrating a clear concern for the future prosperity of the whole of Hong Kong is a prerequisite to being heard on the issues that afflict the international workforce.
About Ambition Ambition is a leading global boutique recruitment business listed on the Australian Securities
If you’re an entrepreneur or SME looking for investment, or a potential investor looking for start-up potential, please find out more about our programme on our website: angel.britcham.com or email emily@britcham.com
4
w w w . b rit ch am .co m
Exchange. With coverage across Singapore, Hong Kong, Sydney, Melbourne, Brisbane & London, they specialise in banking & financial services, finance & accounting, technology and sales & marketing. For more information, please visit www.ambition.com.hk
BUSINESS
Proposed Tightening of
Hong Kong’s Privacy Law By Susan Kendall and Anna Gamvros, Baker & McKenzie Following growing public concern over the use of private information, a new proposal to amend the Personal Data Ordinance aims to give individuals more control over information relating to them, and harsher penalties to those who violate the law. Susan Kendall and Anna Gamvros explain the details.
On
8 July 2011, the Government of
The Bill is currently before the Legislative Council for consideration and is expected to
the Hong Kong Special Administrative
become law at some point in 2012. Given that the Bill is likely to pass in its current form,
Region published the Personal Data (Privacy)
we recommend that data users review their practices for collection, use and handling
Amendment Bill 2011 (the “Bill”) in the
of personal data in light of the proposed changes, particularly if personal data is sold,
Government Gazette.
transferred or used for direct marketing. This may entail a review of personal information collection statements, setting up “opt-out” lists and reviewing internal direct marketing
The Bill amends the Personal Data
practices to move towards compliance with the proposed changes.
(Privacy) Ordinance (“PDPO”), which has remained unchanged since it came into force in 1996. It addresses key areas
For further information, please contact the authors: susan.kendall@bakermckenzie.com
that have been the subject of recent high
+852 2846 2411, anna.gamvros@bakermckenzie.com +852 2846 2137
profile investigations. Alongside a new offence which prohibits the disclosure of personal data without consent, the Bill introduces, among other things, provisions relating the sale and use of personal data in direct marketing. The Bill provides that, if a company intends to sell, transfer or use personal data for direct marketing purposes, it must: •
provide specific written information to the data subject (of the kinds of personal data, class of buyers/transferees and class of marketing subjects (eg. financial products, telecom products)) in an “easily readable and understandable format”;
•
provide a facility which allows data subjects to object to the proposed use, sale or transfer of their personal data. If the data subject replies in writing that they do not object, or if the data subject does not respond within 30 days after the information and facility are given or after the data is collected (“response period”), the data user may use the data for direct marketing; and
•
notify the data subject, when using personal data in direct marketing for the first time for the data user’s own purposes, that the data user is required, without charge, to cease to use the data if the data subject so requires in writing.
Irrespective of whether a data subject objects to the use, sale or transfer of his/her personal data during the response period, the data subject can request at any time that his/her personal data is not used, sold or transferred for the purpose of direct marketing. Where personal data has been sold or transferred to other parties for the purpose of direct marketing, the data subject may also require the data user to notify the buyers/ transferees to cease to use the data for that purpose. On receipt of the notification, the data user and the buyers/transferees must cease using the data or risk criminal sanctions. The Bill introduces heavy penalties at a level previously unseen under the PDPO with fines of up to HK$1 million and imprisonment for up to 5 years for sale and disclosure of personal
Lambert Brothers Insurance Brokers www.lambertbrothers.com.hk Winnie Hung ڗ2585 8260 whung@lambertbrothers.com.hk
data without consent. This represents a significant increase from the current penalties which peak at HK$50,000 and 2 years imprisonment. Oc tober 2011 • V o l 26 • No 9
5
BUSINESS
Entrepreneur
101
By Chris Riley, Managing Director, Sercura You’re tired of the corporate politics, you don't like your boss and you think the company might be downsizing again soon. This might be the time to grab a few customers and set yourself up in your own business.
Compared
to most Western countries, setting up a business in Hong
The business plan will tell you at which stage
Kong is painless and swift. Taxation is clear and fair and the red tape is minimal. If there is
you should break even and how much cash
any place in the world to take the entrepreneurial plunge it is here. Below are a few rules
you need to plug the gaps until revenue
that have proven useful.
consistently exceeds overheads.
Rule 1:
Never borrow money from the banks. They will gouge you on the interest. They
Rule 4:
Be conservative. If you think you
will try and influence your business and when you are at your most exposed
will start making profit by the end
they will ask for the money back.
of Year One then make sure you have enough cash to carry you
Rule 2:
When planning to set up a new business, make sure you have enough of
through to the end of Year Two.
your own cash to get the project safely off the ground, through the clouds and up to cruising altitude. A good rule of thumb is to have at least two
Rule 5:
If the start up capital required is beyond your savings, consider bringing in a
guaranteed customers where the revenue from one alone will cover your
financial partner. In Hong Kong fortunately there are plenty of people with spare
monthly overheads. Count on customers not coming through with all
money to invest. A common formula might be that if you need 1 million HKD for
their promises.
your start-up but only have half a million of your own money a financial partner would contribute the other half in exchange for 50% of the company's equity.
Rule 3:
You should make a business plan in the form of a simple Profit & Loss
You will need to choose your partner with care and have a good shareholders
projection. First list all the customers from whom you expect to receive money
agreement in place but all parties will benefit from the success of the venture.
and break the expected revenue down by month for two years. Take into
An ideal partner will contribute to strategy, revue finances monthly but not
account seasonality such as a possible drop in business at Chinese New
interfere with daily operations.
Year or Christmas. Make sure you do enough research with your prospective customers without getting yourself into trouble. A sad reality is that many
Rule 6:
Most new businesses fail because of bad cash management not for product
customers who trust you while you are working for an established corporation
or service reasons. There is nothing more important than being paid on time
won't give you business when you are in a start-up situation. Once you gain
and maintaining a healthy cash balance in the bank account. If possible
momentum they will be more comfortable to switch work to you.
develop schemes where you can be paid in advance such as that favourite trick of fitness centres where people sign up for a package of twenty sessions
Make two sets of projections: best case and worst case then take the median. Plug the
in exchange for a discount. Another solution is to have customers pay online
numbers into the top part of your business plan. Then work on the expenses. Staffing
through mechanisms like Paypal.
and office rental are the biggest expenses unless your business nature requires heavy equipment investment. Nowadays the costs of setting up computers and phone lines are
Have your accountant generate a weekly cash position statement and a weekly
very reasonable. Try and trim these costs as low as possible by initially working from home
receivables list. Never wait until the end of the month. Don’t let your accountant chase
or sharing an office. Avoid all marketing expenses except a decent website. Your other
unpaid invoices. Do it yourself or have your sales people do it. As a new business,
biggest expense will be traveling to meet customers. If you have to fly, obviously it will be
customers will try and take advantage of you by demanding lower prices or longer
economy class and stay with friends or in cheap hotels.
payment terms. Negotiate the most suitable terms so you get the work but don’t run out of cash. Rule 7:
You don’t need to invent a new product or service to be successful. Take an established industry but find a new twist to providing better and more costeffective service. This may simply be how you hire and motivate your staff or how you use modern technology in an innovative manner. Often that’s all it takes to carve your own niche in and old industry.
Christopher Riley is the owner of Sercura, a global quality and compliance solutions company providing consulting and other services to retailers and their suppliers manufacturing in Asia and beyond. www.sercura.com
6
w w w . b rit ch am .co m
PROPERTY
Up or Down? Forecast for Hong Kong’s Property Market By Kenny Suen, CEO & Vice Chairman, Vigers Holdings Limited After the recent disappointing land sales by the government, are there signs that the Hong Kong property market will cool in the fourth quarter?
In
September, the Hong Kong government registered
a third straight month of worse-than-expected residential land sale this year, its residential plot in Tseung Kwan O selling for HK$3.12 billion – far below the top forecast of HK$4.12 billion. This reflected developers’ caution towards bidding on land sales while the global economic outlook is uncertain and stock markets are volatile. In their increasing aversion to risk, developers have shown signs of a stronger preference for commercial and smaller residential lots in Hong Kong. In light of this we may raise the question – does the recent performance of land sales signal a cooling of the Hong Kong property market? On the land supply front, although the Hong Kong government has paid great attention to dealing with the concerns over housing shortages, the short-term imbalance in supply and demand for Hong Kong’s residential property market may persist, since residential projects need at least several years for completion. In fact, by the end of September this year, the Hong Kong government may only have achieved total land sales amounting to around 9,000 residential flats, which would represent less than half of its annual minimum target of 20,000 units. In addition, general market sentiment in the Hong Kong
could also lend support to a quarterly rebound in the capital
property market will likely rally should there be any
values of both mass and luxury housing in Hong Kong. The
resumption of apartment block construction through the
latest easing by the mainland is the sixth increase in the
Home Ownership Scheme (HOS) following the government’s
bank reserve requirement ratio this year, and precedes a
policy address in October. The potential risk of a policy
potential leveling off of inflation in China in the third quarter.
overhang can be removed, though some may argue
These factors make a rebound likely despite the tightened
that the resumption of the Scheme could well affect the
anti-speculative measures being imposed by the Hong
sentiment among the low end private residential sector,
Kong government.
given an overlap between the HOS and the low end private residential markets in previous market downturns.
Accordingly, property developers are expected to ride these favourable conditions to speed up their respective new
On the demand side, mounting inflationary pressure,
property project launches in the fourth quarter of 2011,
improving economic fundamentals and the increasing
thereby helping lift the sector’s total transaction volumes.
importance of buyers from the mainland, all bode well for
However, given developers’ strong balance sheets and
Hong Kong residential property demand. Moreover, the
ample liquidity, they are likely to focus on margins; in other
United States government has announced its extension
words, it is unlikely they will slash sale prices.
o f t h e l o w i n t e re s t r a t e s e n v i ro n m e n t u n t i l 2 0 1 3 , suggesting continued abnormally low nominal interest
Therefore, despite the recently weak land sale performance,
rates in Hong Kong.
near term Hong Kong residential prices should remain solid, whilst the Hong Kong commercial property market,
8
w w w . b rit ch am .co m
Any revival in global stock markets after their recent
benefiting from capital inflow, is likely to experience
plunges and any easing of mainland monetary restrictions
moderate growth in capital values.
LIFESTYLE
Eames lounge chair and ottoman: In continuous production since 1956
Accident and Design Interview with Steve Frykholm, Creative Director at Herman Miller
Wandering
into the Herman Miller’s recent exhibition in Hong Kong
Design Institute, you might be forgiven for thinking you’d arrived at an art exhibition. Droves of devoted young design enthusiasts cluster around exhibits in three large showrooms. What they are looking at are classic examples Herman Miller design, and particularly those of legendary designers Charles and Ray Eames, the couple responsible for a revolution in home design. Yet it is their office designs which have made Herman Miller famous Moulded plastic chairs: Developed by Charles and Ray Eames during the 1940s
throughout the business world for the last 50 years. Steve Frykholm, a graphic designer at Herman Miller since the late 1960s, relates his
As an expert in the field, do you notice a lot of bad design out there?
experience of the company’s development over the years, and the iconic pieces of office
We all know there are a lot of bad designs out there, but it’s important to focus on what’s
furniture with which we are all familiar…even if many of us had no idea who designed them.
good. That’s something I learnt from one of my wife’s colleagues. Sometimes you see something that’s not quite right – but there’s still something intriguing about it. You say, ‘If
First of all, how did you get involved in design?
only the designer had done this or that…’, and you improve upon it. George Nelson used to
I guess it was in high school. I entered a competition, and the judge wrote on the back of
call it ‘shoulder-climbing’, not copying!
my entry that I should ‘consider a career in commercial art’. He couldn’t have been much more specific! I’ve been a graphic designer for 42 years.
But to answer your question, yes there is a lot of dreadful design; a lot of it is purely marketdriven to sell goods, and my personal view is that the people really don’t need so many
And you’ve been with Herman Miller for your entire career. Even for the baby boomer generation, that’s unusual isn’t it?
goods. I’m sure we could waste a lot less of the earth’s resources by being just a little more forward-thinking.
It’s unheard of! But yes, I’ve been with Herman Miller all the way through. I had no idea about that when I started out – I wanted to end up in New York or the West Coast. But I’ve enjoyed the company all along. Opportunities have presented themselves – working with
Where do you get your inspirations from? Is it from past design models, or from your own memories and experiences?
good product designers, having interesting projects, being able to learn more. I’m very glad
I never know! It might be a conversation, it might be seeing something; the other day I was
that I joined when Herman Miller was a smaller company (the founder used to come into the
reading some publishing copy, and ended up circling some words that triggered images.
office every day when I began) because you could say I grew up with it.
In a lot of ways graphic design is more ephemeral than product design. Products
And was Herman Miller already involved in office design at that stage?
stay around, but graphic design is very
I’d say it was just beginning to be primarily office-focused when I joined. Before that stage you
often here today and gone tomorrow. So
have the more home-focused designs of Charles and Ray Eames. But when I joined, Action
the process of design is a lot faster too.
We Collect and deliver your car FREE OF CHARGE (subject to distance) We provide good, quick repair service at reasonable prices
Office II had just been introduced – that spawned an industry. It led to the ‘office cubicle’, although our designer Bob Propst, never imagined it to be a cube – he had more of a 180-degrees,
What will the next major innovation in design involve?
hexagonal workspace in mind, something more spacious and with
We certainly can’t diminish what the
lower walls. At that time we also hired Bill Stumpf to design the
electronics industry has done to our
first ergonomic office chair, the Ergon. After
lives, and I’m sure the next great area of
that he designed the Equa chair in the mid-
innovation is bound to be connected with
1980s along with Don Chadwick, and then
electronics in some way. Just to put this in
again the Aeron chair in the mid-‘90s, which
perspective through, when I started working
is still selling very strong. So the company’s
all we had was a typewriter!
Our competitive Labour charges:
From
Lubrication Service
$ 110
Tune Up Engine
$ 220
Engine Decoke & Grind Valves
$ 1,500
Engine Overhaul
$ 4,000
Brake System Overhaul
$ 900
Clutch Mechanical Overhaul
$ 1,000
Air Condition Freon Recharge
$ 400
Alternator Overhaul
$ 400
Starter Motor Overhaul
$ 400
ALL REPAIRS WITH THREE MONTHS GUARANTEE
Our Business Hours 8am-6pm, Mon-Sat & Public Holiday
growth really accelerated – it’s been very interesting to watch.
As for our company, besides the office and home design, we’ve also been involved
The Aeron Chair – a standard feature of modern offices
So, what’s the direction now?
in design for healthcare organisations for
As it happens, we’re now working on the
around 35 years, designing waiting rooms
Herman Miller Collection – which will have a
in clinics for example, and that’s really
lot of appeal in the residential context as well
taking off at the moment. That process
as the corporate space. So it really feels like
of adaptation is happening very naturally;
I’m seeing the company go full circle, back to
a successful business is always trying to
the early days of domestic interior design.
branch out.
Our 24hrs. Emergency Towing Agent “Firstone Towing Services” 8203 3411 Please call us at 2565 6166 or Fax: 2856 1047 E-mail Address: fookie@netvigator.com
FOOKIE MOTORS CO. LTD. Shop 7, G/F, Paramount Bldg., 12 Ka Yip Street, Chai Wan, Hong Kong.
Oc tober 2011 • V o l 26 • No 9
9
LIFESTYLE
Undiscovered Thailand
Krabi
Paul Jeffels from Flight Centre Hong Kong explores alternative Thai beach destinations & discovers that there are lots on offer for those in need of some serious rest and relaxation.
private stretch of beach. Most luxury hotels including the Rayavadee
Set amongst a backdrop of sheer cliffs, lush jungle and the clear waters of the Andaman sea, the Krabi coastline is home to some of the most spectacular & iconic views in the whole of South East Asia. The relative seclusion of Krabi will ensure that you are never far from your own & Phulay Bay have options of upgrading to rooms with private pools giving you ultimate privacy & seclusion.
Activites The calm seas & unique landscape make the Krabi coastline an adventurer’s playground. Krabi is an excellent base to explore nearby uninhabited islands, including the island made famous in the film “The Beach”. Sea Kayaking – is very popular due to the calm seas and there is a chance to explore the many sea caves & mangroves along the coastline.
Khao Lak
Rock Climbing – The unique coastline means that several companies offer rock-climbing & abseiling trips. Breathtaking views are guaranteed, it’s not for the faint hearted however.
Set amongst 5 national parks & surrounded by some of the worlds best scuba diving sites, Khao Lak is a haven of
Diving & Snorkeling – With crystal clear waters and secluded
beauty and relaxation & is a world away from the hustle and
bays, there are numerous opportunities to explore the sea life. The
bustle of Phuket.
official dive season runs from November to May, where visibility is better & seas calmer.
Unlike Phuket, Khao Lak has yet to be touched by mass tourism, and certainly offers a great alternative for either a romantic break or
Resorts
a family vacation.
The relatively remote location of the Krabi coastline will ensure that you will be rewarded with extra space & freedom. Two world class
Khao Lak has a remarkable recent history; it was devastated in the
resorts include:
2004 Tsunami and has since bounced back with a number of luxurious resorts to become a “hidden gem” of the Andaman coast.
Rayavadee – a secluded Spa resort situated at the heart of the stunning Phranang peninsular, the Rayavadee can only be accessed by boat. A
Activities
perfect honeymoon or romantic break destination for those looking for
Beach – if you like uncrowded, soft white sand beaches then Khao Lak
understated luxury. You will stay in a your own two-story pavilion, go for
if the place to be. The resorts are relatively spread out, meaning you will
the Hydro Pavilion for your own pool in your private sub-tropical garden
always be able to find your own piece of paradise. Phulay Bay Ritz Carlton – marketed as a 6 star hotel, the Phulay Bay Scuba Diving – The Similan Islands are consistently voted as one of
offers a blend of traditional thai service with all of the faculties of a luxury
the world’s top 10 dive sites, the dive season runs from November
resort. The villas are impressive with 4 meter beds, balcony plunge
to May & there are several local companies who cater for both the
pools. 24 hour butlers are on call to cater for your every whim. This
novice & experienced diver. The area is well known for the quality or
place is special with a price tag to match.
quantity of coral & fish. Waterfalls & jungle treks – with 5 national parks within 30 minutes
Access There are no direct flights to Krabi from Hong Kong. You will need to
drive, there are plenty of options for day trips if you get bored of
either transit in Bangkok with Thai Airways or fly into Phuket with either
lying on the beach.
Cathay Pacific or Thai Airways, it’s then a 90-120 minute drive to Krabi.
Resorts Local building regulations state that hotels cannot be taller than the height of coconut palm trees making for a more secluded feel to most of the resorts. Sarojin – personal service in this award winning 5 star resort.
Phuket
The Sarojin markets itself as if you are “staying as a guest
With stunning sunsets, spectacular scenery and crystal blue seas,
at a friend’s private estate”. Go for a pool residence and relax in
Thailand's largest island still remains a favourite beach destination and
your own private plunge pool. No young children are allowed at
weekend getaway for HK residents. The ease of getting to Phuket from
the Sarojin.
Hong Kong helps it to retain it's popularity and whether it is world class diving in the Andaman Sea or exciting eco-adventures that you are
JW Marriot – boasting the longest swimming pool in South East
after, Phuket is a place to extend your horizons.
Asia, the JW Marriot has all the facilities you would expect including a fantastic Kids club, leaving you more time to
Andara Resort & Villas
relax and pamper yourself.
Andara is an ultra-deluxe villa and suites resort at Kamala Beach along Millionaires’ Mile. Set on a hill rising gently from the Andaman Sea the
Access
resort offers stunning ocean views. Minutes away are Phuket’s best
Cathay Pacific & Thai Airways offer daily direct flights to
restaurants, boutiques, world-class golf resorts and other attractions
Phuket it’s then a 70 minute car transfer to Khao Lak.
Access Cathay Pacific & Thai Airways offer daily direct flights to Phuket.
10
w w w . b rit ch am .co m
Celebrating
25
Years
In 2012, in time for the British Chamber’s 25th anniversary, Britain in Hong Kong will have a new design. With a fresh look, a modern A4 format and new content, the magazine will continue broadcasting from the heart of the British Chamber of Commerce in Hong Kong. We value your input, and greatly welcome articles from Chamber members on any issue related to business, property, community, environment and lifestyle. If you would like to find out more about the new design, or have any comments and suggestions, please contact our editor: sam.powney@speedflex.com.hk If you would like to learn more about the new opportunities for advertising in Britain in Hong Kong, please contact: charles@speedflex.com.hk
IT E D ina IN G L IM Ch V E RT ISress services in D A ) U GZHO f p re -p zhou
U A N full range o ry in Guang e ia F L E X (G S P E E D dflex provides llthy owned subsid S p e e g h it s w h o th ro u
Hong Kong Office 1st Floor, Hua Qin International Building 340 Queen’s Road Central, Hong Kong Tel: (852) 2542 2780 Fax: (852) 2542 3733
Guangzhou Subsidiary Office Rm 1208-9, 12/F Hao Yun Commerical Plaza 376 Xin Gang Zhong Lu, Guangzhou, China Tel: (020) 2129 9508 Fax: (020) 8956 2197
For more information, please contact Charles Zimmerman on (852) 2542 2780 or at charles@speedflex.com.hk
Oc tober 2011 • V o l 26 • No 9
11
MEMBERSHIP The British Chamber’s Sterling Members
Perspective Interview with Paul Brough, KPMG Regional Senior Partner, Hong Kong
How’s business? We’re up year on year across the business. However, we are not growing quite as quickly as we’d like because certain European business sectors have been impacted in the last couple of months by what’s happening in Europe, in particular the IPO market is down because stock market prices are such that new candidates for listing aren’t coming forward as quickly as we would have anticipated. That’s where we see the major area of weakness, but we are still seeing companies getting ready for IPOs. Europe is weighing heavily on the local stock markets and no more so than in Asia. It is difficult for a Chinese property company to IPO when the shares of some of the big existing players are currently so attractive. That is the challenge, as the secondary market is depressing the primary market for new IPOs.
What are your plans for KPMG in 2011? My priorities are to stick to quality because that is a challenge in emerging markets like China and elsewhere, and to maintain our reputation in the market place. Both of these are challenging in present circumstances: accounting firms are under scrutiny from regulators and others, therefore maintaining brand reputation is very important.
12
w w w . b rit ch am .co m
How does the British Chamber of Commerce add value to your business? It does so in a number of ways. The business breakfast briefings are very useful. I’m fortunate being on the British Chamber’s General Committee to see some very high quality submissions being sent to government, so I know what the business community is feeling and what the hot topics are. The networking is also very useful - even for someone as seasoned as me!
How are accountancy firms being affected by the new proposed measures relating to the auditing business in Europe?
We are constantly reinforcing our established role as a cornerstone of Hong Kong’s financial industry. We host forums for non-executive directors and CFOs and we work closely with the regulators and other market leaders. If you’re working in an emerging market, when things go wrong - a client may get into financial difficulty or an IPO goes wrong - despite your best efforts to prevent it, you have to deal very swiftly with the impact of those problems and get everything under control.
Accounting firms are global, and it’s the global accounting firms that the proposed measures are aimed at. Whilst there is some merit in parts of it, the proposal that the large accounting firms become audit-only is not realistic. It will lead to difficulty in recruiting talent, which will ultimately affect the quality of audits. What people may not realise is that due to the present rules on audit independence the vast majority of our advisory income does not come from audit clients, as they are almost an entirely separate clientele. These measures are weighing heavily on us at the moment. But as that debate matures – and it’s right to debate it – I think people will find certain benefits from having large accounting firms with global coverage.
Where is KPMG’s biggest emerging market?
What’s the biggest recent news in your industry?
The fastest growing emerging market by country is China, followed by India and Indonesia. In terms of sector, it’s probably financial services. The amount of regulatory scrutiny the financial sector is undergoing means that there’s a great need for the services we provide. Whether it’s rescuing or capitalizing banks, giving them advice on business transformation, helping them respond to regulatory criticism, or investigating a fraud – the financial services sector is keeping us busy. In terms of functions, our fastest growing business (out of audit, tax and advisory) is advisory. If you’re working in advisory in Asia-Pacific, in an emerging market, then you’re in the fastest growing part of KPMG worldwide.
The EU directive is a hot topic currently, but I think that in fact the outcome won’t be as severe as some people think. These measures will have most impact on people within the industry and I expect a sensible solution will be sought. But I think it’s an important debate.
You take up the Chairmanship of the European Chamber of Commerce in January. What does that involve?
Thank you for your continued support
This is the best forum to disseminate that kind of information into Hong Kong. Likewise, businessmen in Hong Kong can make their representations to the EU on how best to support businesses and organisations going into China via Hong Kong.
The European Chamber is a chamber of chambers. If businesses want to come into China and Hong Kong they will typically make contact with their own chamber first. The European Chamber acts as a portal through which the European Union can keep Hong Kong abreast of changes and new EU directives. This includes all kinds of Europe-wide changes such as reform of the accounting profession, EU directives regarding bank capital, new tax regulation on transfer pricing, etc.
For Hong Kong and China the biggest event is the election of the Chief Executive next year, and what impact this will have on Hong Kong in terms of policy. There are quite a few challenges here in Hong Kong at the moment, the poverty gap being a major one for us, as well as the environment and the third runway at the airport. There are a lot of issues requiring work in Hong Kong, and I think the international business community is keen to get on with it.
What is KPMG’s style? We have a reputation in Hong Kong of being the cornerstone of the financial establishment, so when something big happens, like a Lehman crisis or the BCCI collapse in the early nineties, KPMG has typically been the firm in this town that people turn to solve those big problems. So we have a reputation of being that cornerstone, of very high quality work and a fairly deserved reputation of being tough. We want to maintain that reputation but it is increasingly hard when you are working in an emerging market where the range of things that can go wrong is much wider. Our style is to do the right thing and to be seen doing the right thing.
Sponsor
Growing Together Letting Hong Kong’s Children Learn about Green Issues The British Chamber of Commerce Environment Committee is pleased to announce the launch of the ‘Growing Together’ project in partnership with HSBC and involving selected schools in Hong Kong. The scheme originated as a way to encourage Corporate Social Responsibility across the British Chamber membership. Twenty schools (10 international and 10 local schools) have been selected to take part in this one year pilot programme, during which students will work with Microgardens and Bokashi composting systems to foster their awareness of environmental and sustainability issues. The programme aims to introduce students to organic farming/planting and to educate them on the growth cycles of plants, and on composting and reducing food waste. It will give them the opportunity to learn about other issues, such as the impact on carbon footprinting and climate change, and will encourage students to appreciate the value of organic materials in growing local, sustainable and non-toxic fresh produce. The programme, which can easily be built into the teaching curriculum, will demonstrate the proven benefits that a creative, hands-on, horticultural activity can have on schools and students, as well as serve as a useful catalyst to diversify the range of academic studies that are currently available in Hong Kong. International and local schools will be ‘paired’ together to promote cultural exchange and knowledge sharing, as well as English-language enrichment for the local students.
Participating schools: Abacus Kindergarten
HSBC Climate Champions (employees who have gone through intensive classroom and field climate
Bradbury School
change training) will be involved as facilitators of sharing activities among the participating schools, providing opportunities for students to establish career contacts and understand the business community in Hong Kong.
Clear Water Bay School Chiu Yang Por Yen Primary School Creative Primary School
In addition to the British Chamber’s role as Project Manager, our project partners for ‘Growing Together’ are as follows:
The Hongkong and Shanghai Banking Corporation Limited - SPONSOR HSBC supports the communities in which they operate. They focus their community investment activity
Discovery College ELCHK Lutheran Secondary School Hong Kong Baptist University Affiliated School
on education and the environment – the fundamental building blocks for the development of communities
King George V School
and drivers for economic growth and poverty alleviation. In 2005, HSBC became the world’s first carbon
Kowloon Junior School – Rose Street
neutral bank.
Ma On Shan Ling Liang Primary School
The Green Patch– MICROGARDENS SUPPLIER
Munsang College (Primary Section)
The Green Patch are specialists in organic installations and horticulture educational workshops.
Munsang College (Secondary Section)
Microgardens features the intensive cultivation of food and other plants grown in twin-walled modular
Peak School
containers made from 95% recycled uPVC with a life span of at least 20 years, purpose-designed to ensure stable growing conditions in a safe, fertile organic media.
Quarry Bay School Renaissance College
Teng Hoi Conservation Organisation – BOKASHI SUPPLIER
SMKMCF Ma Ko Pan Mem College
Teng Hoi Conservation Organisation is a non-profit making organisation that develops practical and
South Island School
participative environmental programmes with a strong emphasis on education and measurable results. Bokashi originates from Japan and features a hygienic and vermin-free composting process using micro-organisms.
St Bonaventure Catholic Primary School St Paul’s Convent School
A launch ceremony with all participating schools will be held at South Island School on the 6th October. For more details please contact Dovenia Chow at Dovenia@britcham.com.
EVENTS
September Events September saw several major events organised by the Chamber, including:
Captains of Industry Luncheon 5th September 2011
Sponsored by
John Slosar, Chief Executive, Cathay Pacific Airways spoke about “Cathay Pacific: Banking on a Great Future for Hong Kong”
Annual Economic Debate 22nd September 2011
Sponsored by
Dr Jim Walker, Founder & Managing Director of Asianomics had severe warnings about the underlying state of China’s economy, while Nicholas Kwan, Head of Research at Standard Chartered Bank predicted a smoother landing for the mainland in the coming year.
Luncheon with Visiting Justices of the Supreme Court of the United Kingdom 27th September 2011 A visit by Lord Phillips, Lord Clarke and Lord Hope, of the new Supreme Court of the United Kingdom, who were on their way back from a visit to mainland China. Amidst a lively discussion and questions from the floor, the three Lord Justices explained the reasons behind the change in the legal system in October 2009, and what the new structure entails.
14
w w w . b rit ch am .co m
EVENTS Upcoming Events Captains of Industry Luncheon with Sir C K Chow
Hongkong International Terminals Tour
Event date: Fri, 14 Oct 2011, 12:30-14:15 Sir C K Chow, Chief Executive Officer of MTR Corporation will share “The MTR Story”,
Event date: Wed, 26 Oct 2011, 14:15-17:15 The Chamber's Logistics Committee have organised a tour of Hongkong International Terminals
the twists and turns of the company’s journey to becoming one of the world’s leading railways and the value that it has created for all stakeholders. The Captains of Industry Series is sponsored by KPMG.
at Kwai Tsing Port. Join us with John Harries, Port Development Director, Hutchison Ports South China to learn about the port's development and operations, see HIT’s control centre and a coach tour of the terminal berths and storage yard facilities.
Women in Business Networking Lunch
Joint Business Community Luncheon with Donald Tsang
Event date: Thu, 20 Oct 2011, 12:30-14:00 Come and join the Women In Business Networking Lunch, a great chance to network with fellow female chamber members. This month's lunch will take place at the Watermark in Central. Non-members are very welcome to attend.
Scottish Business Group Quiz and Curry night! Event date: Thu, 20 Oct 2011, 19:00-22:00 Join us for a fun informal curry and quiz night, organised by the Chamber's Scottish Business Group Committee. This will be a networking night with a difference - meet fellow members and guests, take part in our fun general knowledge quiz and win some prizes!
The Jardine Matheson Group & British Chamber YNetwork Scottish Ceilidh 2011 Event date: Fri, 21 Oct 2011, 20:00 – Sat, 22 Oct 2011, 01:00 It is that time of year again! The ever popular British Chamber YNetwork Scottish Ceilidh is back, and is set to be better than ever! Get ready to dance the night away to the popular reels, and enjoy some delicious Scottish fare, washed down with plenty of whisky! This is a hugely popular event, and space is limited, so please book now to avoid disappointment.
Event date: Wed, 02 Nov 2011, 12:15-14:00 Chief Executive of the HKSAR, Mr. Donald Tsang has accepted the invitation to speak to the business community in Hong Kong at a luncheon on 2 November 2011, following his policy address to the Legislative Council in mid-October. At the luncheon, the Chief Executive will further elaborate his policy address and talk about the government's initiatives on tackling issues related to housing, ageing population, and wealth gap in the year ahead.
Hong Kong Treasure Hunt Event date: Sat, 12 Nov 2011 Quintessentially Foundation has partnered with local businessman Chris Geary and is hosting the inaugural Hong Kong Treasure Hunt to raise money for five charities. They are looking for teams and volunteers for the day and also have a multitude of opportunities for companies to be involved as sponsors. For more information please contact: Quintessentially Foundation (Ms Orla Gilroy Tel: 37587404)
For more information on upcoming events, please visit www.britcham.com/events
/HJDO H[SHUWLVH ZKHUHYHU \RX DUH
:HŐOO VXSSRUW \RXU IDPLO\ LQ WKH 8. ō ZKHQ \RX FDQŐW EH WKHUH Moving overseas and leaving loved ones behind can be hard, but leaving elderly parents without the emotional and practical support upon which they have become reliant is distressing. At Mogers we have been helping expats who have elderly parents in the UK manage long distance care for decades. Our Concierge Service offers hands on local and practical support, such as paying bills, dealing with tax returns or finding suitable long or short-term care solutions which take away a real burden and give genuine peace of mind for everyone concerned.
To learn more about this service and how it can benefit your family please contact Derwent Campbell on +44 1225 750001 or email derwentcampell@mogers.co.uk. Further details regarding all our expat services can be found on our website www.expatlaw.co.uk
Oc tober 2011 • V o l 26 • No 9
15
NEWS/NEW APPOINTMENTS China’s banks post strong profits, ahead of foreign counterparts, says KPMG
Partnership Fund for the Disadvantaged has begun seventh round of application
China’s local banking sector posted another year of strong growth for 2010, ahead of their foreign counterparts in the country, according to KPMG’s latest annual survey of China’s banking sector.
The Social Welfare Department has recently announced the launch of the seventh round of applications for the Partnership Fund for the Disadvantaged (PFD), with the deadline of submissions of applications being 31 December, 2011.
The survey covers a record 182 banks, representing 85 percent of all banking assets in China, as well as 33 of the 37 foreign banks that were locally incorporated prior to year-end 2010.
Hong Kong’s Chief Executive, in his 2005 policy address, announced the establishment of a HK$200 million PFD to promote tripartite partnership among the welfare sector, the business community, and the government to help the disadvantaged. The government will provide dollar-to-dollar matching grants to donations made by business to support non-governmental organisations (NGOs) in implementing social welfare projects. With the provision of matching grants under the PFD, business corporations are encouraged to take up more corporate social responsibility for creating a more cohesive, harmonious and caring society.
The report notes strong profit growth despite the impact of government steps to restrict credit. This is mainly being driven by a rapidly growing deposit base, increased net interest margins and growth in non-interest income. For the 172 banks which provided net profit figures for both 2009 and 2010, there were strong signs of profit volatility between banks and well as larger increases being made by smaller institutions. The survey also notes the onset of internationalisation of the RMB, which has added a new element to the banking sector and should be a strong source of growth for those banks with a regional or international presence.
Anti-money laundering focus drops down board agendas, ASPAC lags behind US and Europe Banks’ focus on anti-money laundering is being squeezed by other priorities, according to KPMG’s latest global survey for 2011. Only 62 percent of senior management at the banks globally said they consider this to be a top priority, compared to 71 percent in 2007. For Asia-Pacific (ASPAC), that number is even lower, with 50 percent indicating that AML was either a moderate or low profile issue, in which the board of directors takes some or little interest. This was 12 percent lower than the global average. Transaction monitoring continues to be the biggest AML cost for banks, however there is a level of dissatisfaction with the results, with less than one-third of respondents able to monitor a single customer’s transactions and account status across several countries. The results also show that respondents in 2004 and 2007 underestimated future spending on AML. Respondents in 2010 estimate that AML costs will rise by 29 percent over the next three years, but they have underestimated it again, especially when the new US tax law – FATCA – is taken into account.
Since the establishment of the PFD in the 2005, a total matching grant of over $180 million has been approved for 125 NGOs, in joint hands with 790 business organisations, to carry out 442 welfare projects to benefit over 800,000 disadvantaged people. In view of the positive response, the government injected $200 million into the PFD last year to encourage further cross-sector collaboration to help the disadvantaged.
EC Harris report finds that construction costs in Asia are on the rise Japan, Hong Kong and Singapore are the most expensive places in Asia to build and are amongst the world’s top twenty most expensive countries, according to the 2011 International Construction Cost Report released by built asset consultancy, EC Harris. According to the survey, which benchmarks the cost of building in each country, the construction prices in Asian countries have risen more than Western countries in the past twelve months resulting in higher overall rankings for the Asian locations. Tim Robinson, Head of Cost and Commercial Management in Asia at EC Harris said, “We’ve seen construction prices in Hong Kong continue to rise due to the shortage of skilled labour, increased demand on commodities and increased construction output volume in the public and private markets.“ South Korea and Macau completed the top five most expensive countries across the region whilst China finished in seventh position and in 47th place overall. India and Sri Lanka were named the cheapest places to build in the survey both in Asia and the wider world as a whole.
Global accountancy network BDO International Limited has recently appointed Martin van Roekel as CEO. Martin joined BDO CampsObers in the Netherlands in 1975, becoming a partner in 1988. He immediately became involved with international business as the partner responsible for the Dutch sub-holding of an international US client. On a national level, he managed the Northeast region for six years and became a member of the board of BDO CampsObers Martin van Roekel Accountants & Advisers, representing Finance and IT, in 2002, moving to chairmanship of the board in 2004. In the same year, he became a member of the international BDO Policy Board and took over the chairmanship in 2007. In 2009, Martin stood down from his role with BDO Netherlands and from the chairmanship of the international Policy Board in order to join the Global Leadership Team as Global Head of Network Development and CEO – Europe. His appointment reflected the importance of network development to BDO, and under his leadership the network grew from 110 member firms to 125, covering 15 additional countries. The global accountancy firm BDO Limited has recently appointed Angela Wong as the Human Resources Director. Angela possesses extensive HR generalist experience and exposure in a diversity of industries, such as IT consulting, banking, telecommunications, security and NGO, in addition to professional accounting. She has held Human Resources Director positions and played a strategic regional / local HR role in a number of MNCs which are world leaders in their respective industries. She has a proven track record in acting as a professional business partner to the line management and in re-engineering the organisations.
PricewaterhouseCoopers has recently appointed Tony Evangelista as Partner, handling the company’s asset management.
Tony Evangelista
Tony has also assisted foreign governments in developing their investment management regulatory framework, and he is bringing this extensive knowledge and experience to accelerate the growth of PwC Hong Kong’s own regulatory practice. PricewaterhouseCoopers has recently appointed Angelica Kwan as Partner, handling US taxes. Having practiced in New York for fifteen years, Angelica has extensive experience in private equity, mergers and acquisitions, and international transactions. While in New York, she advised on the formation of funds and the acquisition of portfolio companies in a range of industries. Prior to joining PwC Hong Kong, Angelica was a US tax partner at Sidley Austin LLP in New York.
Olivia will concentrate on strategic business development plans for the firm, along with client relationship management initiatives and developing the firm’s brand and profile in the region. She has eight years business development experience in regional management roles for major US and UK firms. Tanner De Witt is a move that she has been eager to make due to the firm’s stellar reputation and strong focus on client development.
Angela Wong
Olivia Crooke w w w . b rit ch am .co m
Angelica Kwan
Business law firm Tanner De Witt has recently announced the appointment of Olivia Crooke as the new Practice Development Manager.
Angela holds a Doctor Degree of Business Administration from The Hong Kong Polytechnic University, and a Master Degree of Business Administration from City University of Hong Kong. She is also a Professional Member of the HK Institute of Human Resource Management.
16
Tony Evangelista joined PwC Hong Kong on 1 August, 2011 from PwC US. While in the US, he helped set up PwC's investment management regulatory compliance practice in New York. He also spent two and a half years at the Securities and Exchange Commission where he helped develop and review rules for investment companies and advisers.
NEW MEMBERS Chairs of Specialist Committees Business Policy Unit Tim Peirson-Smith Executive Counsel
CORPORATE
ADDITIONAL
STARTUP
FocusOne Limited
Bloomberg L.P
Asia First Executive Limited
Douglas Gerber
Dominic Sizer
Simon Crockett
CEO
Account Management, North East Asia
Managing Director
Tel
Tel
Tel
2854 0780
5196 6026
9019 2961
douglas@focusoneleadership.com
dsizer3@bloomberg.net
simon.crockett@asiafirstexecutive.com
Unit 17B, 128 Wellington Street
27/F, Cheung Kong Centre
1902a, Lippo Centre, Tower 2
Central, Hong Kong
2 Queen’s Road Central, Central
89 Queensway, Admiralty, Hong Kong
Construction Industry Group Derek Smyth Gammon Construction
Business Services
Hong Kong
Management Consultants
Education Committee Stephen Eno Baker & McKenzie
Emma Jane May Smith
Jones Lang LaSalle Limited
International Co Ltd
CEO
Peter Trollope
Mitya New
Local Director - Head of
Managing Director
esmith@consultancy-pr.com.hk
Business Development
Tel
2921 9370
9B, Carfield Commercial Building
Tel
Fax
2921 9308
75-77 Wyndham Street, Central
peter.trollope@ap.jll.com
mitya.new@leadingorganisations.com
Hong Kong
6th Floor, Three Pacific Place
18/F, 8 Queen’s Road Central
Consultancy
1 Queen’s Road East
Hong Kong
Hong Kong
Management Consultants
China Committee David Watt DTZ
Environment Committee Anne Kerr Mott MacDonald Hong Kong Limited Financial Services Interest Group Debbie Annells Azure Tax Consulting HR Advisory Group Brian Renwick Boyden Search Global Executive
Financial Services
Tel
3114 6339
YNETWORK
Marketing & Communications Committee Adam O’Conor Ogilvy & Mather Group
Tel
Logistics Committee Mark Millar M Power Associates Small & Medium Enterprises Committee Kate Kelly K2PR
Lauren Richards HK Ltd Max Cooke
Fast Track HK
Scottish Business Group Dr. Jim Walker Asianomics Limited
2922 4421
Property / Real Estate Services
ICT IT Committee Craig Armstrong Standard Chartered
Real Estate Committee Jeremy Sheldon Jones Lang LaSalle
Leading Organisations
The Consultancy Ltd
Melvin Byres Account Executive 2616 2710
melvin.byres@fasttrackagency.com 23/F, Shun Ho Tower
Director Tel
9450 6136
max@laurenrichards.com 15A, 20/F, Prince Industrial Building 106 King Fuk Street, San Po Kong Kowloon, Hong Kong
24 Ice House Street, Central Hong Kong Consultancy
Quintessentially Emma Gibson Partner Tel
3758 7417
emma.gibson@quintessentially.com 2/F, Teda Building, 87 Wing Lok Street Sheung Wan, Hong Kong Lifestyle
Women in Business Committee Sheila Dickinson Ipac Financial Planning Hong Kong Limited YNetwork Committee Fiona Foxon Quintessentially Business Angel Programme Neil Orvay Asia Spa & Wellness Limited Tim Hay-Edie Pilot Simple Software
Oc tober 2011 • V o l 26 • No 9
17
MEMBERSHIP
Member Discounts There are many great benefits of being a member of The British Chamber of Commerce. One of those is the Member Benefits program 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
Food and Beverage and Accommodation
Home
Accor | Members will receive 10% discount on top of the lowest rates that Accor’s Asian hotels are offering on the day (5% off hotels outside Asia Pacific). This applies to over 1600 Sofitel, Pullman, Novotel, Mercure & All Seasons hotels worldwide. For more information please contact Regina Yip on 2868 1171 or email regina.yip@accor.com
Allied Pickfords Hong Kong | For any Home Search completed by SIRVA Relocation, members will receive a FREE local move. Please call 2823 2077 or email homesearch@ sirva.com 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
Alfie’s | Members of the British Chamber of Commerce can benefit from a 10% discount at this chic restaurant in Hong Kong.
TaDa! | 10% discount on every online purchase as well as other special offers such as a free concierge service and delivery! For more details please visit www.tada.net
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. 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 all a la carte treatments and spa merchandises 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.
Travel & others Avis | Members can receive up to 20% discount off standard rates on car rental bookings. To make a booking please call 28822927 or visit www.avis.com.hk British Airways | As a member of the British Chamber of Commerce you can enjoy an exclusive offer from British Airways. Travel before 31 December 2011 and receive 7% discount on all fares. To make a booking please visit www. britcham.com/memberdiscount/british-airways Carey | As the world’s finest chauffeured services company Carey are pleased to offer Britcham members a 10% discount on the base rate of any service, anywhere in the world. For more information please call the international reservations team on +800 0123 4578 or email international.support@carey.com Compass Offices | Compass Offices, a premium serviced office provider, are offering members a one month free Serviced Office space or three months free with a 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 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 enjoy a 5% discount on all purchases from the VisitBritain online shop. Please call 3515 7815 or visit www.visitbritaindirect.com for further information. 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
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 Benjamin Mueller-Rappard on 2315 5642 or bmr@themirahotel.com
18
w w w . b rit ch am .co m
Emily Ferrary on 2824 1972 or email emily@britcham.com
EVENTS
Shaken Not Stirred Aug 2011, Jimmy’s Kitchen Melanie Osborne (Living Group), Dominic Masterson-Smith (Human Communications), Derek Ip (Santa Fe Relocation Services)
James McGowan, Swan McGowan
Simon Ho (The Fry Group), Janet Yeung (The Executive Centre)
Freya Simpson Giles (Giles Publications), Stuart Leckie (Stirling Finance), Elise von Stolk (Santa Fe Relocation Services)
Ben Lester (Elite Capital Solutions), Samuel Olsen
Teg Maffa (Lotus Art), Florence Banales (AXA Asia)
Dan Patient (Brand HK), Roger Wu (PMTHK) Dovenia Chow (The British Chamber of Commerce in Hong Kong), Joseph Lam (BALtrans International Moving), Max Cooke (Lauren Richards), Francesca Cooke (Lauren Richards)
Roger Wu (PMTHK), Jenny Pang (Giles Publications), David Leung (Systems Go)
Fergie Miller (Compass Offices), Emily Ferrary (The British Chamber of Commerce in Hong Kong), Jessica Schubert (Compass Offices)
Ricky Shin (Pwc), Yuelin Zhu (PricewaterhouseCoopers) Gregory Seitz (AGS Four Winds), James Sutton (The Fry Group)
Gregory Seitz (AGS Four Winds), Daniel de Guzman (Allied Pickfords)
Damian Tubbert, Constance Ip (Asianet)
Brent McDougal (Hays), Anthony Richman (Affiniti), Corey Franklin
James Sutton (The Fry Group), Chris Parker (Carey International), Jonathan Zamora (AON) Oc tober 2011 • V o l 26 • No 9
19