November 2016
A Publication of The Canadian Chamber of Commerce in Hong Kong
Chairman’s Message “We welcome you to participate in the endless opportunities at the Canadian Chamber of Commerce in Hong Kong not only by participating in our activities but by sharing your thoughts on how else we can serve you, our members.” It has been a busy few months at the Chamber as the summer saw a
August and September was also a time for fond farewells as we bid
flurry of activities.
goodbye not only to our friends at the Canadian Consulate including J.Ian Burchett, Lynn McDonald and Janice Vogtle but to our very own President of the Secretariat Philip Leung. We wish them all the best on their next endeavours. On a brighter note, let us extend a warm welcome to Hong Kong’s new Canadian Consul-General Jeff Nankivell, the Canadian Chamber’s new President Derrick Lee as well as the Chamber’s new Head of the Governor’s Council Raymond Chow.
On September 6 , the Chamber was honoured to host the Right th
Honourable Justin Trudeau, Prime Minister of Canada on his first visit to Hong Kong. The special guests who attended the business luncheon the Chamber organized jointly with the Consulate-General of Canada in Hong Kong included the Secretary of Commerce and Economic Development of the Government of the HKSAR, Greg So, the Minister of International Trade, the Honourable Chrystia Freeland, the Ambassador of Canada to China, Guy Saint Jacques, the Consul- General of Canada in Hong Kong and Macao, Jeff Nankivell. I would like to take this opportunity to thank our sponsors of this special occasion, Air Canada, The Bank of Montreal, The Canadian Imperial Bank of Commerce, Manulife, the Royal Bank of Canada, Quam Limited, The Bank of Nova Scotia, Sun Life Financial.
Other events highlights from the past few months also include annual favourites such as the Chamber’s Canada D’Eh Party, our annual celebration of Canada Day and this year’s Annual Ball CANOPOLY. I would like to take this opportunity to acknowledge and congratulate the Secretariat and to all those who volunteered and have been a part of these two main social events in the Chamber calendar. The Annual Ball on Saturday, May 14th sponsored by Manulife of course was a highlight of the year. It was a resounding success for all those who attended, a celebration of our strong and vibrant community. Planning for the Annual Ball has been both comprehensive and creative, led by the Ball Committee co-Chaired by Michael Yong-Haron and Saniza Othman. I would like to thank them both. June 21
also marked the first time the Chamber has hosted the first Canadian Dinner organized by the Entrepreneur and Small Business Committee at the Porterhouse by Laris in Lan Kwai Fong featuring all Canadian ingredients prepared by a Canadian chef. The Dinner was also dedicated to J.Ian Burchett, the Consul-General of Canada in Hong Kong and Macao of the last four years. It was an opportunity for us all to bid farewell. Subsequent to the Dinner, we also launched the inaugural Taste of Canada Campaign held in partnership with eleven of Lan Kwai Fong’s bars and restaurants. I would like to take this opportunity to thank the food suppliers and our F & B members for their contributions to these two new initiatives. st
2 EXCHANGE Vol.17
The Chamber’s role generally is to provide a forum for connecting businesses and opportunities. This issue of EXCHANGE highlights but a few of our business forums. For example, the Entrepreneur and Small Business Committee’s Signature Series sponsored by Baker Tilly Hong Kong, the China Series and the Innovation and Technology Series, both sponsored by KPMG are included in the Events Highlight section. The forum the Chamber provides is also about sharing experience. Apart from interviews with individuals, this issue also features columns introducing our members’ current business initiatives in the city and beyond. Read articles about: The Adventure of Working Abroad interviewing Angie Ford, Executive Chef, Porterhouse by Laris; How to De-Stress On Your Business Trip sharing experience with John McLennan, CEO, Indigo Leadership; interviews with Dr Jeanne Ng, Director of Group Sustainability, CLP Power Hong Kong and Calvin Mak, Founder & CEO, Rhombus in discussing the Challenges of Setting Up Business in Hong Kong. We welcome you to participate in the endless opportunities at the Canadian Chamber of Commerce in Hong Kong not only by participating in our activities but by sharing your thoughts on how else we can serve you, our members. We look forward to seeing and hearing from you.
Lawrence Nutting Chairman The Canadian Chamber of Commerce in Hong Kong
CONTENTS Volume17 November 2016
02
Platinum Sponsors
Chairman’s Message Committee Updates
08 China Business Committee: Review of 2015-16 09 Young Professionals Committee: Improving Your Attitude – The Key to Achieving Breakthrough Performance
Advocacy
10 What Our Retirement Protection Should Be?
Adventures of Working Abroad in Hong Kong
13 Interview with Angie Ford, Executive Chef, Porterhouse by David Laris
Business Tips Column
14 How to De-Stress on Your Next Business Trip: Sharing of Ideas with Senior Executives John McLennan, Founder & CEO, Indigo Living Ltd.
Sharing Experience and Success: Leadership Column
16 Women in Leadership Position: – How A Woman Scientist Sees Her Career Development – Dr. Jeanne Ng, Director of Group Sustainability, CLP Power Hong Kong Limited
Special Feature
18 Canadian Dinner & Taste of Canada in LKF & Central Campaign
Focus on Members
22 A Guide on Exchange of Information: Hong Kong-Canada Tax Treaty 24 The Rise of Flexible Office Space 26 Interview with Mr. Joseph Fung, Founder & Managing Director of Fairchild Junior Academy 28 Managing China Procurement Risk for SMEs 30 Born to Disrupt – Canada’s Maverick University of Waterloo Grows its Hong Kong Presence
Community
Gold Sponsors
32 Natural Partnership – Toronto’s Mayor Says a Shared History and Business Interests make Hong Kong and Toronto Natural Partners 34 Challenges and Success of Setting Up and Doing Business in Hong Kong – Calvin Mak, Founder & CEO, Rhombus International Hotels Group
Professional Development
36 Why Hong Kong is Falling Behind its Peers in Branding
Leisure
38 Raja Ampat – Remote, Beautiful, Pristine
40 Event Highlights 42 Welcome New Members
The Chamber Executive Committee
Governors’ Council
Lawrence Nutting
Chairman
Wayne Lee
Vice Chairman–Internal
Irene Chu
Secretary
Rachel Tsang
Treasurer
Raymond Chow Jeff Nankivell Allan Zeman Aron Harilela Andrew Turczyniak Bernard Pouliot Bruce Hicks Daisy Ho David Armitage David Kong David M. Nesbitt David McMaster Doreen Steidle Dr. Eliza C. H. Chan Dr. William Yip Elizabeth L. Thomson Hing Lam Kam Joe Ng John Cheh John W. Crawford John R. Witt Lawrence Ho Lincoln Leong Madeleine Behan Patrick Lam Richard Siemens Robert Cook Stephen Chu Victor Apps William W. H. Doo
Andy Poon Andy Mahtani Brendan Wong Don Roberts Joseph Law Karim Gilani Katherine Leung Michael Yong-Haron Richard Brown Ron Hoffmann Todd Handcock Vanessa Poon Victor Yang Jodi Robinson
Ex-Officio Member
The Secretariat Head of Governors’ Council Honorary Head of Governors’ Council
Derrick Lee President email: derrick_lee@cancham.org Carol Chan Operations & Finance Manager email: carol_chan@cancham.org Patricia Lau Administrative Assistant email: patricia_lau@cancham.org Sarah Cheng Communications Manager email: sarah_cheng@cancham.org Janice Ip Events Manager email: janice.ip@cancham.org Barbara Mok Membership Services Manager email: barbara_mok@cancham.org Janice Hon Membership Manager email: janice_hon@cancham.org Sarah Wai Membership Co-ordinator email: sarah_wai@cancham.org
Volume 17, November 2016
Published by
Editorial Board Madeleine Behan (Chair) Derrick Lee Carol Chan Sarah Wai (Editorial Assistant) Advertising Contact Carol Chan (carol.chan@cancham.org) Sarah Cheng (sarah_cheng@cancham.org) Project Management Meipo Yeung Design and Layout Winnie Li Lilian Yu
Jointly Published by The Canadian Chamber of Commerce in Hong Kong Unit BC, China Overseas Building 139 Hennessy Road, Wanchai Hong Kong Tel: 2110 8700 Fax: 2110 8701 www.cancham.org Speedflex Asia Ltd 1/F, Hua Qin International Building 340 Queen’s Road, Central, Hong Kong Tel: 2542 2780 Fax: 2542 3733 Email: info@speedflex.com.hk
Claims, statements and assertions made by advertisers are the responsibility of the advertisers. The Canadian Chamber of Commerce in Hong Kong and Speedflex disclaim all responsibility and liability in connection with the content of any advertisement appearing in this publication. The opinions expressed in this publication are not necessarily the opinions of the publishers. All published material is copyright protected. No parts of Canada Hong Kong Exchange may be reprinted or reproduced without the written permission of the publishers. Canada Hong Kong Exchange welcomes letters to the editor sent via email to canada@cancham.org. Submissions must include the author’s full name, address and daytime contact numbers. The Canadian Chamber of Commerce in Hong Kong reserves the right to edit letters for length and clarity.
4 EXCHANGE Vol.17
In Memoriam MICHAEL NARDELLA The Chamber records with deepest sorrow the passing of our Executive Committee member, Mr. Michael Nardella (age 34), on June 27, 2016. Michael started his career in Hong Kong as an intern at the Chamber before being promoted to the role of Membership Manager where he set a number of membership revenue records and substantially developed the membership and relationships in Macau. After his time at the Chamber, Michael went on to work at Colliers International before entering the world of entrepreneurship and fund management, becoming the Managing Director at SABR Property Partners. Michael was an extremely active member of the Chamber, not only serving on the Executive Committee but also as the Chair of the Property Committee for a number of years. Michael brought the Property Committee to Hong Kong-wide prominence, collaborating with a number of other international chamber’s Property Committees, particularly during the public consultations on the real estate ‘spicy measures’ where he presented at the Legislative Council on the topic. Michael also recently chaired the Chamber’s Financial Stability Working Group, producing a long-term plan for the financial sustainability of the Chamber. We not only mourn the loss of a Chamber leader but the loss of a kind and generous friend.
5
The Chamber
Greeting from the Head of the Governors’ Council I am delighted to have the opportunity to serve as the Head of Governors’ Council. Many thanks to the Chairman, Mr. Lawrence Nutting, and many thanks to all my fellow Governors for their support and confidence. The Canadian Chamber is one of the most important international Chambers in Hong Kong. I look forward to heading the Governors as we support the vision and initiatives of the Chairman and the Executive Committee. Raymond Chow Head of the Governors’ Council The Canadian Chamber of Commerce in Hong Kong
Raymond Chow has been Executive Director of Hongkong Land Limited since July 2000. He is responsible for all the Commercial Property business activities for the Company. This includes all development and asset management activities of the Company’s premier office, retail and hotel property portfolio. Prior to joining Hongkong Land, Mr. Chow held a number of real estate management appointments with companies in Canada and Hong Kong. Mr. Chow was educated in Vancouver and holds a Bachelor of Business Administration Degree from Simon Fraser University. He is also a graduate of the Advanced Management Programme of Harvard Business School. He is Global Board of Directors, Trustee and North Asia Chairman of the Urban Land Institute, a Fellow of the Royal Institution of Chartered Surveyors and is on various professional bodies advising real estate matters. He is also the Head of Governors’ Council of the Canadian Chamber of Commerce in Hong Kong and is involved in various charity committees in Hong Kong.
Appointment of New President The Chamber is delighted to welcome Derrick Lee as the Chamber’s full-time President. As head of the Chamber’s Secretariat, he will work with the Chamber’s Executive Committee to deliver programs and services that will further the objectives of the Chamber’s members and strengthen the Canadian business community in Hong Kong. Mr. Lee brings over 20 years of experience working with government departments and multi-national corporations from Canada, Hong Kong and the United States. He specializes in strategic planning, business development, public relations and stakeholder engagement. Derrick Lee worked as the Head of Passport Section at the Consulate General of Canada in Hong Kong since 2009. Before that, he held various management and advisory positions at the Treasury Board Secretariat of Canada, Transport Canada, Invest Hong Kong, State of California Office of the Governor, TD Waterhouse Brokerage and Canada Trust Financial Services. Mr. Lee is a Fellow Certified Management Accountant and Certified Management Consultant. He is a graduate of the Stanford Senior Executive Leadership program, and obtained his Master of International and Public Affairs degree at the University of Hong Kong and his Bachelor degree in International Business at Athabasca University in Canada.
6 EXCHANGE Vol.17
The Chamber
Canada-Hong Kong Business Luncheon in Honour of the Right Honourable Justin Trudeau The Canadian Chamber of Commerce in Hong Kong had the honour to host the Right Honorable Justin Trudeau in his first official visit to Hong Kong on September 6, 2016 at the Shangri-la Hong Kong with over 500 guests attending the luncheon. We would like to take this opportunity to thank our sponsors of this special occasion, Air Canada, the Bank of Montreal, the Canadian Imperial Bank of Commerce, Manulife, Quam Limited, the Royal Bank of Canada, the Bank of Nova Scotia and Sun Life Financial, and the co-ordination with the Consulate General of Canada in Hong Kong and Macau.
Sponsors:
7
Committee Updates
China Business Committee : Review of 2015-16 By Philip Yu & Victor Yang On Behalf of the China Business Committee The Committee aims to help our members to connect with China – even if it looks like a simple task, it is more than ever a wide topic and a challenging mission. The unique positioning of Hong Kong makes us the perfect gateway to access the Chinese market. Such a vast, complicated and fast changing country which requires some effort to understand it. Our Committee is well-positioned to bridge the gap. By organizing different events on the hottest topic in China, we assist you to get a better understanding of new business opportunities in this promising country. Thanks to the strong support of the Executive Committee and our extremely supportive partner KPMG, our Committee has been proud to host the successful China Series events in the past year. Indeed our 4 lunch seminars that we hosted in 2015/16 included different themes: • • • •
One Belt, One Road Internet Plus China’s Booming integrated Tourism, Hospitality and Retail Projects China’s Fifth Plenum: Developments to Watch
We had a fruitful year under the leadership of our Committee Chair, Winston Kan. Following his relocation to Beijing, our former Vice-Chair, Philip Yu, will step up as the Co-Chair and will lead the Committee together with our Executive Committee member, Victor Yang, and strong support from our Vice-Chair, Farida Lau. Last but not least, our Committee is delighted to welcome new enthusiastic members to join the group, especially the ones who have an extensive experience in China and are interested in getting involved in our thrilling projects. Please feel free to contact Philip at philipyu@fungyucpa.com for more information.
8 EXCHANGE Vol.17
Committee Updates
Improving Your Attitude: The Key to Achieving Breakthrough Performance By Joseph Palumbo, Sandler Training (HK) On Behalf of theYoung Professionals Committee I am blessed. I have been given the gift of teaching, training, facilitating and coaching others to maximize their potential- to be Significant. I treasure this gift. My Canadian Chamber of Commerce Young Professionals talk used the Sandler Training Success Triangle Model which I will walk you through here. Let’s start with the bottom right point of the triangle. This area is labeled Techniques. It is the knowledge and expertise area that most professionals focus on. Professionals in technical/professional positions and/or in industries are often very strong in this area. On the opposite end of the bottom of the triangle is an area labeled Behaviors. This section represents our applied knowledge that is found primarily in customer-centric positions. Both of these lower points of the triangle provide you with an adequate base upon which you will have some success in your career. In order to get to the highest level of performance and success, you must compliment your base Techniques and Behaviors with a superior positive Attitude. Attitude sits atop the Sandler Success Triangle. Your Attitude drives your Behaviors that take advantage of your Techniques (knowledge). The reverse is also true. An abundance of relevant Techniques (knowledge/skills) give you confidence to apply Behaviors. When you practice the appropriate Behaviors, they reinforce your Attitude. One way to have a consistent Attitude at the ‘top of the house’ is to implement the following five practices in your daily routine:
1
Separating your Identity from your Role We will occasionally fall short. The task(s) assigned to you in your role might not have been completed – but there is nothing wrong with you. Separate your Identity from your role so as to keep your Identity intact, move onto the next project. Resilience, the ability to ‘bounce back’ is now one of the most requested competencies for global leaders. If you ‘beat yourself up’, you harm your Identity. The Sandler Rule is: You can only perform in your roles in a manner that is consistent with how you see yourself conceptually. Your Identity must remain as close to a perfect 10 as possible. Your score on your role may be lower, learn from your mistakes and improve. If you consistently underperform, you may be in the wrong role.
2
4
Visualization Star athletes visualize a positive outcome and attract success. They always practice to improve – they demand positive outcomes from themselves first and their teammates second.
3
Keeping a Journal Star performers wishing to keep their Identity intact keep a journal. The journal includes what to focus on, what to improve on, what their short and longer term goals are. A simple way to start is to record 3 things once a week: What you Enjoyed, What you Learned, What you will Stop Doing. Look for insights from the patterns. Turn insights into clarity and focus by setting goals with deadlines.
Writing positive Self-affirmation Statements The first step is to take the time to write down the positive selfaffirmation statements, not just think about them. Use present tense, be specific and descriptive and associate positive outcomes in your statements. Start with the words, “I am …” Once this is done, carry the statements in your wallet or on your phone. I have one statement as my screen saver on my phone – they remind me each day that I am blessed and that I must share my gift with others. Finally review the positive statements or meditate on them twice a day.
5
Finding a Mentor/Coach Sometimes we need the wisdom and words of someone wiser, someone who inspires us. First, define what you want out of the mentoring/ coaching relationship. Then find someone you can: admire, trust, accept their objective point of view and further your objectives. It’s up to you to establish the rules of engagement, hold yourself accountable and give back to the relationship. 9
Advocacy
What Our Retirement Protection Should Be? Content extracted from BPF Response to Consultation Document “Retirement Protection Forging Ahead” by Commission on Poverty
The Government’s consultation document “Retirement Protection Forging Ahead” sensibly compares the Universal approach “regardless of rich or poor” with the targeted approach “those with financial needs”.The document by the Mandatory Provident Fund Authority (“MPFA”) “Towards Retirement Security” is also helpful for those trying to understand the issues. Poverty and Retirement Policy We strongly support efforts to eradicate poverty in Hong Kong but it is wrong to define our policy on retirement protection simply in terms of poverty relief. A retirement income policy should consider all those in Hong Kong, not just those at or close to poverty. Also the definition of poverty used focuses on income rather than assets. Many retirees have no Hong Kong income and live from their accumulated assets. The result of all this is that the data on the level of elderly poverty, as presented in the Consultation Document, is of little value. None of this is to say that,
10 EXCHANGE Vol.17
By Victor Apps, Vice-Chairman of Business Professional Federation (“BPF”) and Governor of the Canadian Chamber of Commerce in Hong Kong
in a rich society like Hong Kong, we should not generously support those in true need and our recommendations do just that. Retirement Protection policy should primarily focus on putting systems in place that enable as many Hong Kong people as possible to save for their own retirement. If this is done well, the numbers that need support from the Government will gradually fall. MPF is the primary system in Hong Kong aimed at retirement protection. It is fundamentally a good system but it has some significant flaws which need to be corrected.
Advocacy Mandatory Provident Fund (“MPF”) Most of today’s elderly have received little or no benefit from MPF since it is still an immature system. This is perhaps why the poverty angle is in the minds of so many. However, MPF currently costs the Government very little and, with careful improvements, it will provide meaningful benefits to a sizeable majority of Hong Kong people as it matures. This majority will not need a Government-paid pension. As MPF matures, the percentage of people requiring Government support will reduce significantly. This will allow the Government to focus on those with true need. MPF is not popular with the people of Hong Kong. Partly this is due to problems with MPF but it has also been the victim of unfair attacks and a poor press. It is crucial that the image of MPF be improved.
iv) We strongly support the elimination of offsets for severance payments and Long Service Payment (“LSP”). v) Lower paid employees (less than HK$7,100 per month) currently have 5% of wages deposited in their MPF account by their employer but they make no contribution. We recommend that, for such employees over the age of 30, the government matches the employer contribution by paying an additional 5% of wages into the employee’s MPF account. Like other MPF deposits this will not be available to the employee until after age 65. This will cost the government little in the long run since these are the people most likely to be claiming Old Age Living Allowance (“OALA”) or Comprehensive Social Security Assistance (“CSSA”) after age 65. vi) Withdrawals on MPF accounts after age 65 should be limited. At age 65, a retiree would only be entitled to withdraw a lump sum of HK$250,000. If the balance in their account is greater than HK$1,250,000, they will also be allowed to withdraw amounts above HK$1,250,000. or, The retiree will be free to withdraw HK$5,000 per month from their MPF account. In this way, the retiree will not normally need Government support for a number of years after retirement. For those whose MPF balance runs out, normal CSSA /OALA /Old Age Allowance (“OAA”) rules will apply.
Universal Pension and the Gap Between Rich and Poor
BPF’s Recommendations for Improvements to MPF i) We support the MPFA’s proposals to drive down fees by mandating the offering of a default investment strategy that keeps fees below 75 basis points. The goal should be to reduce average fees for all providers below 100 basis points within 5 years. ii) We recommend the regular publication of data that compares fees offered by MPF providers. This “name and shame” approach will force high cost MPF providers to improve or close. iii) We support the gradual increase of MPF contributions from 5%+5% to 7%+7%. However, such an increase should wait until MPF is more settled. Specifically, we recommend an initial increase to 6%+ 6% in 2018.
Our recommendations for Government expenditure will focus on narrowing this gap: – improved OALA to those that need it – elimination of OAA to those who definitely do not need it. – elimination of offsets for LSP and severance payments. – Government payments to MPF accounts of the lowly paid. 50% of retirees currently receive CSSA or OALA. Our recommendations would ease the requirements to receive OALA and significantly increase the payments. On the other hand, the “universal” supporters would spend massive government funds on payments to those that do not need them. The payments would all go to the 50% of retirees that do not currently receive CSSA or OALA. The poorer 50% will receive nothing from universal pension as defined by its adherents. Universality would increase the gap between rich and poor which is surely not the objective of its proponents.
Eliminating the MPF Offsets If society wants MPF to deliver a reasonable pension to as many workers as possible, the offsets for severance payments must be 11
Advocacy eliminated. These offsets hit low income workers the hardest and these are the very people most likely to require Government assistance when retired. For this reason we expect Government to contribute financially to the solution of this problem. Naturally the unions argue that the offsets are wrong and expect the offsets to be eliminated without any changes to the payments themselves. On the other hand, employers argue that the offsets are imbedded in MPF because it is unreasonable to ask the employer to pay twice – once with LSP payments and again with MPF contributions. This stand-off will not be resolved unless the Government makes a significant financial contribution to the solution. Our recommendation is that January 1st 2018 is set as the changeover date. For employment contracts entered into after that date, the LSP is abolished but severance allowance payments should be continued as it is. The maximum severance allowance payout would continue to be 2 x average monthly wages X 2/3 with a cap of HK$30,000 per employee. Note that, for employees who started work before the changeover date and are terminated after the changeover date, service after the
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changeover date will not count in the calculation of the LSP payment. We recommend this approach because, whereas LSP carries many of the hallmarks of a pension programme, severance allowances are more a payment to help terminated employees through a hopefully brief period of unemployment. LSP was introduced long before MPF. After the changeover date, employers will not be able to offset severance allowances or LSP against MPF. However, although employers will not be able to offset LSP payments, they will be able to recover them from Government to the extent that they would be recoverable from MPF under existing regulations. Note that LSP is not normally payable if the employee resigns voluntarily and the Government would not be expected to pay in this situation. This recommendation splits the pain 3 ways: – Employers will no longer be able to make offsets for severance payments – Employees will not get LSP for contracts after the changeover date – Government pays the cost for LSP offsets on existing employees to the extent that the amount was recoverable from MPF under existing rules
Adventures of Working Abroad in Hong Kong
Interview with Angie Ford By Michelle Liu,The Canadian Chamber of Commerce in Hong Kong Have you ever dreamed of working in Hong Kong before your arrival? What are the advantages of working in a place like Hong Kong? Yes, indeed. I first travelled to Hong Kong in 2013 to visit my sister and it was love at first sight. I always wanted to work overseas but I did not know where. After my visit to Hong Kong, I knew Hong Kong was the place.
What would you like to see HK do more as your “ideal” city? I used to do camping a lot in Canada so I hope to see more greenery here in Hong Kong. I also hope that Hong Kongers can have a stronger sense of community. On the other hand, Hong Kong is such an overwhelming city with high population density – everyone seems to be keeping to himself or herself a lot.
I have never worked abroad before. Working in a new city in general opens up your horizon – Hong Kong is very different from Canada so I get to absorb a lot of new culture. To me, the best thing in Hong Kong is definitely the food scene – the diversity of cuisine here is incomparable. I also love working with the people here. My team members are extremely polite and respectful. They are very considerate and willing to help which makes things a lot more convenient for me.
Ford e i g n A
Executive Chef, The Porterhouse by Laris
What are the challenges upon your arrival and how have you overcome them? When it comes to work, the biggest challenge is the language barrier. As a chef, I work closely with my team. It was very hard initially since some of my staff did not speak English and I had to get a translator. But thanks to my dedicated team members, we managed to co-operate in perfect harmony now. Also, I have always worked for smaller companies back in Ottawa; whereas I work in a restaurant which is part of a large corporation with many stakeholders in Hong Kong. Having to work with the CEO and collaborate with many other departments is definitely new to me. The air pollution is a huge challenge to me. I noticed it as soon as I got here and I was sick for a couple of months. I was also shocked by how cramped the housing is when I was looking for accommodation in Hong Kong. I could not believe how tiny the apartments here are given the high rent. Luckily I live far away from the concrete jungle and it is a lot more spacious there.
What is your one piece of advice to other newcomers to Hong Kong? Explore and enjoy the city before you dive right into work. I started working immediately after I arrived in Hong Kong. With an intensive work schedule, I do not have much chance to experience the true Hong Kong. I wish to explore the different facets of this dynamic city soon once my work schedule cools down.
Growing up in a rural town on the edge of Ottawa, I never expected that I would be working in as dynamic a city as Hong Kong. Everything is so overwhelming, but in a good way. I love the eclectic mix of people, busy streets, clash of cultures, variety of food and round-the-clock fresh produce. I am on a constant hunt for new experiences by discovering new flavors and scents. Food for me is such an integral part of myself and who I am. It is the platform for me to express my identity and allows people a glimpse – through a looking glass – into my world as I see it
Note: Angie Ford was the Executive Chef for our Inaugural Canadian Dinner on June 21, 2016
How is Hong Kong different from Canada in general? Hong Kong for sure is very different from Ottawa. Hong Kong is so much larger in size, with a much faster living pace. In terms of cooking, it is very easy to get all the supplies and food products you want. It is also a lot easier to get myriads of products shipped into Hong Kong than to Ottawa.
13
Business Tips Column
How to De-Stress on Your Next Business Trip Interview with Mr. John McLennan, Founder and Executive Chairman, Indigo Living Ltd by Michelle Liu, The Canadian Chamber of Commerce in Hong Kong
What countries do you normally travel to for business? How often do you travel for work? With our head office based in Hong Kong and offices and showrooms in Shanghai and the Middle East, you’ll often find me flying between them on a monthly basis. Every now and then business for trade fairs or conferences will take me further afield to the likes of North America or Europe. On top of regular business trips, I am also in constant contact with our headquarters in Hong Kong to ensure the day-day operations are also running smoothly. So to be as efficient and effective as possible, I try to combine visits to various countries within a week – it can sometimes be quite the whirlwind world tour!
What recommendations do you have for re-vitalizing your tired body and mind on the first day you arrive in a place for business? For me there are 2 key things to staying revitalized during business trips. I am a big believer that to stay healthy and energized you need to exercise and eat well – both of these also help me to adapt to the local time. For example, I make sure I stay at accommodation where there is a gym or somewhere to run. Regardless of how busy my schedule might be, I make sure to start it right by squeezing in an hour to get my mind and body in shape for the day. When it comes to diet it can be tricky with business dinners and drinks with staff, suppliers or clients, however I ensure I choose the lighter and healthier food options and that nights out are all in moderation.
What suggestions do you have for managing your time effectively? I break my time into 4 components: family, work, friends and personal time. My family always comes first no matter what, and then work comes a close second. As a businessman, I also believe that having some personal time on my own allows me to unwind and relax. I enjoy paddling and I find the tranquility a good way to collect my thoughts. It’s when I’m switched off that great creative and business ideas often happen! So never underestimate the power of some ‘me time’.
How do you make time to maintain a balance of homebusiness life? Indigo Living’s vision and my own personal philosophy is to “live beautifully”, as it goes beyond just beautiful products, objects and stores – it extends to family, the way you live your life, contribution to the community, being present in the moment, and the importance of a work – life balance. Despite a packed work schedule, family comes first and even when I’m away on business I try to call home once a day to hear how their day was – they also love hearing my travel stories when I get back. We actually have a world map at home where they put a pin in to mark the country that I’m visiting. Overall, I’m proud to say that I have a wonderful family who understand my work commitments and that working late or away is at times inevitable, but they trust that if I can, then I will be home before 8pm to spend quality time together. 14 EXCHANGE Vol.17
John’s vision is to fill homes across Asia with beautiful furniture and accessories, to turn spaces into homes that people truly love to live in. In his role, he is responsible for business development, project sales and partnerships, as well as managing brand direction, design and trends. John has over 24 years of project management and design experience in Asia where he began his career in 1988, initially working in Taiwan with a children’s furniture company designing furniture and packaging. He then ran his own interior design company in Hong Kong before becoming involved in the retail/rental/project design business in 1999, and later joining Banyan Tree in 2002. He ran the company from 2004 onwards and re-branded it as Indigo before buying the company in 2005.
Leadership Column
Women in Leadership Position: How A Woman Scientist Sees Her Career Development Dr. Jeanne Ng, Director of Group Sustainability, CLP Power Hong Kong Limited
By Sarah Wai, The Canadian Chamber of Commerce in Hong Kong
Can you tell us about your background and what you do at CLP? What intrigued you to dedicate yourself to the sustainable development industry? I was born in Hong Kong and moved to Canada when I was a few months old. I moved back to Hong Kong when I was nine and later went back to earn my first degree in toxicology at the University of Toronto. I am a biological scientist by training. I have always been driven by the mission to give back to the community and my plan was to join the police force. There was no CSI back then, but I believed that the need for forensic scientists would rise in the law enforcement field because what could evidence tell or prove if it has been contaminated? I worked during a summer term with the Metro Toronto Police Headquarters, intending to join the police force after I graduated. However, my parents were not as convinced as I was and disapproved of my plan. It took me a while to figure out what to do next. I still wanted to contribute to the society! I ended up doing a PhD degree at the University of Hong Kong majoring in Environmental Management, with a focus on air quality monitoring which I figured would also contribute to the society. I was in the consulting sector for almost a decade and found out a lot about myself. I enjoy setting up new initiatives, discovering and learning new things to understand why things are the way they are so that I can help improve the situation – all of which I consider meaningful. That is also why I do feel that being a scientist is well aligned with my own personality because I always ask “why?” Scientists always have the need to investigate and understand the drivers behind the question. The first company I joined had the largest and most interesting air quality and greenhouse projects at the time. I have to admit I was lucky enough to be part of these projects, because at the time there were not as many PhDs in Hong Kong studying air quality as now. I 16 EXCHANGE Vol.17
just happened to be a person studying the right subject at the right time and place. Over time I moved from the environmental consulting field to corporate roles in environment and later sustainability, the latter of which is a much broader subject. Sustainability does not only look at environment, but also takes into consideration the social and economic aspects. An organization’s sustainability focuses on how to strike a balance between economic development versus environmental and social impacts. You always want more positive social impacts and less negative impacts on the environment, while ensuring that the organization is financially sustainable. Sustainability is a continuous journey and I enjoy it a lot.
There has long been gender imbalance within the working space. Did you ever encounter that situation? Do you think that gender imbalance has improved over the years and the society is more open to women taking up leading roles? I feel that the cultural stereotype plays a role in giving rise to gender inequality in the working space situation. It’s embedded in older generations’ minds that girls are fragile, unlike men who can do the heavy-lifting. Men may intend to be chivalrous by protecting women from harm and do not mean to discriminate, but in this day in age, it can be interpreted as fuelling gender inequality. Gender equality has definitely improved over the years, except in terms of the number of females in the science and engineering fields. Social norms have been shifting with more women getting involved in traditionally male-dominated sectors. Sometimes it may actually be advantageous to utilize the fact that being in the minority would make it easier for people to remember you in such a sector. However, it is still embedded in the cultural mindset that males are in general doing better in the engineering and science fields. It will take more time for
Leadership Tips Column people to adopt a new gender equality mindset. Part of the challenge is how to encourage more females to take up studies in science or engineering in the first place.
perspective. Although as their manager, we have a responsibility to figure out how to make them want to learn too.
There are indeed stereotypes that I have run into in my career. At the time when I was in the environmental consulting sector, most of our clients were in the male-dominated engineering field. In the beginning of my career, I was often challenged by my gender and age. However, over time I was able to prove myself based on the quality of the projects I delivered.
Who has been your greatest influence in this role? What do you think are the qualities of good leaders?
Do you think it would be useful for corporate companies to have supporting groups? It is beneficial if corporates have supporting groups for women, especially in the male-dominated sectors, although it is even more important that the company itself actually implements measures to support gender diversity overall, such as providing more femalerelated facilities and hiring more female engineers. Everybody is waking up to the fact that the female population is a totally untapped, amazing resource for the industry. You will find more corporates are focusing on that. CLP has a mentorship program dedicated to women where senior mentors are paired with junior mentees to provide advice. To attract more females to join our company, CLP also works with local universities to make science and engineering more appealing to females so that we can create a bigger female pipeline to hire from.
Given your numerous duties in different advisory boards, how do you manage your work-life balance? It has always been a challenge. I consider myself a workaholic but I try not to work at home nor over weekends – my husband helps me with that and I am lucky to have a supportive husband. Work-life balance is an important concept but sometimes hard to promote, especially in a fast-paced place like Hong Kong. In some sectors, there could be the fear of being replaced by other more hardworking colleagues, but you need to think what makes you happy: your career, family, accomplishments or voluntary interest or passion? Everyone should prioritize what you value most and find the appropriate ratio for allocating your time. I try my very best to promote work-life balance within my team, but everyone is different.
I am lucky to have had very supportive bosses who allowed me to learn. My first boss, when I was an air quality specialist expected high quality output but to be delivered under a set deadline. He pushed me into exploring other fields of knowledge, such as climate change and waste management, instead of just focusing on air quality. I was grateful that he did that because now that I am in the sustainability field, this capability to acquire and utilize new knowledge in different aspects, is critical. In some of the lectures I have delivered over the years, one thing that I have always shared with my students is that what you are studying today doesn’t necessarily mean you will work in that area in your future career. What is important is for them to equip themselves with the basic foundational knowledge in all the relevant subject areas. Another influential person is the person who hired me at CLP, but has since retired. She introduced me to the sustainability field and led me outside my task oriented comfort zone towards thinking about how to keep a company in a leadership position and actually delivering on that objective. She inspired me to move from just focusing on environmental issues to thinking more about the broader sustainability challenges. She was a strong leader and I learned a lot from her. I would say a good leader needs to gain respect from his/her colleagues. It is hard to specify the qualities as it might differ from case to case, but there are certain important elements such as being reasonably accommodating and supportive. A good leader needs to understand his/her subordinates as everyone has a working side and a personal side. Sometimes it could be hard for the personal side not to interfere with the working side. As a good leader, it is essential to understand your colleagues and show empathy when needed but at the same time, you also need to set the boundaries and clearly state expectations to ensure performance. Another key that I think is important is team inclusivity. A good leader should respect the ideas of every member of the team, maintain constructive discussions and make executive decisions when needed. Good interpersonal communication and analytical skills are always essential.
What is the best advice that you have learned from your experience and wish to share with our readers? We should look broader and I am always supportive of stepping out of your comfort zone. That’s the only way to continue doing great things. We all make mistakes – what is important is to learn from your mistakes. In fact, a common motto for innovation is to fail fast so you can learn fast. You almost always learn from failures and not much from successes. Learning also means that even when you are a manager, it does not mean that you are always right. Leaders ought to learn to listen as well. We need to revisit different situations separately and people are never too old to learn from others or ask for advice. One of the most popular topics nowadays is to understand the new generation. They have a brand new approach when they look into matters, and there is no harm to listen to opinions from a different 17
Special Feature
R E N N I D N A I D ANA
C
18 EXCHANGE Vol.17
Special Feature
T
he Entrepreneur and Small Business Committee has been promoting our members in the Canadian food distribution and retail sector since 2014. The main objective is to help them grow and expand their business in the Hong Kong market. The Chamber started off with hosting a Canadian Dinner on June 21, 2016 to bid the Consul General J. Ian Burchett goodbye before he left his Hong Kong post. We are most grateful for his kindness and support over the past few years. Prepared by a Canadian Chef, Angie Ford, using Canadian ingredients provided by our members, we welcomed over 70 guests to the Canadian Dinner. The Dinner was attended by members of the Governors’ Council and the Executive Committee among several other Chamber members and VIP guests. Followed by the Dinner, we officially launched the Canadian Food Campaign, namely Taste of Canada in LKF & Central on July 1, 2016. Eleven restaurants in Lan Kwai Fong participated in this, all serving unique Canadian dishes with fresh Canadian ingredients. Special thanks go to our Title Sponsor, Air Canada, which offered 2 sets of round trip tickets from Hong Kong to any parts of Canada for the lucky draw. The Chamber is proud to report that we have successfully ended the month of July with this Canadian Food Campaign. For those who did not have a chance to participate in the Campaign this year, stay turned for the next round!
N G I A P M A C D & FOO Title sponsor
With thanks to the food sponsors:
and supporting organizations:
Venue sponsor
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title Sponsor
community chest Sponsor
centrepiece Sponsor
Beverage Sponsor
platinum sponsors
gold sponsors
Focus on Members
A Guide on Exchange of Information:
Hong Kong-Canada Tax Treaty This article is featuring the Hong Kong-Canada Tax Treaty, prepared by Kevin Yeung, Chloe Tang, Yoyo Zhang, Genevieve Wong, Daphne To, Summer Interns 2016, RBC Wealth Management.
O
n November 11, 2012, Hong Kong and Canada signed a long awaited-tax treaty between the two jurisdictions, developed to facilitate direct investments, enable exchange of information flow on tax matters, and to address their long-standing social and economic ties. Over the past few years, both Hong Kong and Canada have seen a sizable growth in foreign direct investment, with Canadian direct investment in Hong Kong reaching HK$7.3 billion at the end of 2015, making Hong Kong Canada’s second most popular destination for investment in Asia. Likewise, total Hong Kong direct investment in Canada stood at CAD $16.3 billion in 2015, an increase of 263% from last decade of CAD $6.2 billion (Statistics Canada).
With this rise of economic ties between Hong Kong and Canada, a general concern that may arise is the potential exchange of personal information between the two jurisdictions. For the Hong Kong-Canada Tax Treaty, provisions of Exchange of Information (“EOI”) relate to this concern. EOI, as suggested by its name, exists to exchange information between two governments. To clarify concerns regarding EOI, Vanessa Poon, Director of International Tax Services at EY, says “Under the Hong Kong-Canada Income Tax Agreement, competent authorities can exchange information that is relevant for carrying out the provisions of the tax agreement; and a set of conditions have to be met before such information is deemed relevant.” We elaborate more on EOI, and other concerns in the following:
Question 1:
What is EOI, and what is AEOI? As discussed, EOI arises from a Double Tax Agreement (“DTA”), which in this case is the Hong Kong-Canada Tax Treaty. The procedures to launch a request for EOI are pre-established and governments must justify their requests before information can be surrendered. EOI, in general, facilitates the implementation of the Tax treaty for tax authorities to determine the eligibility of individuals. Confusion may arise amongst individuals regarding the difference between EOI and the upcoming Automatic Exchange of Information (“AEOI”) provision. Unlike EOI, AEOI is not a tool under DTA but rather arisen from Common Reporting Standard (“CRS”) of OECD. AEOI is viewed as a worldwide version of FATCA, where it aims to address tax evasion issues. The Inland Revenue (Amendment) Bill 2016 was recently passed in the Legislative Council of Hong Kong. Beginning 2016, The IRD is now able to ask applicable individuals to do self-certification so that the IRD can collect the necessary information for tax purposes. The information to be collected includes: • Name • Residence address • Jurisdiction(s) of residence for tax purposes • Taxable Identification Number (“TIN”) • Date of Birth Anyone who knowingly or recklessly makes a self-certification that is misleading, false or incorrect in a material particular may be subjected to enforcement actions or prosecutions taken by the relevant authorities in accordance with Section 80(2E) of the Inland Revenue (Amendment) Bill 2016. The sole similarity between EOI & AEOI lies in the sense that both correspond to the exchange of information between two jurisdictions.
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Focus on Members
Purpose Bilateral/ Multilateral
Exchange of Information (EOI) in the Hong Kong-Canada Tax Treaty To facilitate treaties Bilateral
Applicable Countries
Hong Kong and Canada
Frequency Governing Law Applicable Group Effective Year
Upon Request Double Tax Agreement Tax Residents of both treaty parties 2014
Automatic Exchange of Information To deter tax evasion Bilateral* (Hong Kong opted for the bilateral model of AEOI where agreements have to be signed countries by countries for AEOI to apply) Not yet determined* (as of today, Hong Kong has not entered any AEOI agreement with other countries) Once per a year Local and International Law (CRS/OECD) Tax Residents of signed countries Quarter 4 of 2018* (when HK will enter the first AEOI agreement with foreign jurisdiction)
(Source: Inland Revenue Department, HKSARG)
Question 2:
How much of a concern is EOI or AEOI in terms of exposing my information? Kevin Lee, a partner at ZhongLun Law Firm, comments: “EOI in this treaty and the new legislation in Hong Kong on Automatic information exchange using the Common Reporting Standard(“CRS”) could cause certain concerns among individual investors who are residents in either Hong Kong or Canada (or in both jurisdictions), but the two protocols are quite different. Under the treaty, information is exchanged at the request of one government to the other and there is an anti-fishing rule, so legitimate investors should not need to worry as much about data disclosure under the treaty. Canadian residents who have broken the law or are in a grey area for reporting might have more cause for concern, but otherwise most people should not need to worry much about this aspect of the treaty. On the other hand, CRS is more of a concern for Hong Kong and Canadian residents as the data collected will be automatically shared between governments regardless of whether the investor is legitimate and law-abiding or not. Such large scale exchange of information raises questions of how the data will be safeguarded and whether the measures justify the needs of such legislation.“
Question 3:
My family and I invest in Canada and have dealings with Canadian financial institutions.I feel insecure about the EOI provision under the Hong KongCanada Tax Treaty. Should I change anything? All financial institutions operating in Hong Kong regardless their company’s original nationality will be subjected to EOI under the treaty enforcement. John Timpany, tax partner at KPMG, said, “Regardless whether one is investing into Canada from Hong Kong via a Canadian or Canadian owned financial institution, one is still be subjected to EOI. The EOI provision is specified in the treaty and is a legal obligation of both governments.” Thus, an investor’s choice on banks would not affect the level of exposure of their information. 23
Focus on Members
E L B I X E L F F O E THE RIS E C A P S OFFICE
By JonathanWright, Colliers International
24 EXCHANGE Vol.17
Focus on Members
Flexible Workspace Operators are on the rise. In Hong Kong, as at June 2016, Flexible Workspace Operators have committed to over 250,000 sq. ft. of office accommodation in this calendar year, which is forecasted to hit 475,000 sq. ft. by year end. By comparison, PRC Companies committed to approximately 400,000 sq. ft. in 2015, which was said to be the peak of PRC activity in Hong Kong.
Why is the demand from Flexible Workspace Operators on the rise? With the rise of the millennial workforce, which is estimated will make up 50% of the global workforce by 2020, and growth within the technology sector, in particular FinTech, more occupiers are seeking flexible, non-traditional solutions to meet the demands of their rapid growth. Conventional lease terms of 3 to 5 years, commonly offered in Hong Kong, do not fit in line with the pace of their growth. Additionally, we are now seeing established MNCs seek flexible solutions and shorter lease terms to address the challenges they face within the current economic climate.
What is the impact on existing operators? Traditional serviced office operators are reviewing their growth strategies to ensure they remain profitable. Regus have recently acquired a coworking operator which they are rolling out globally and Compass Offices has scaled back their expansion plans for APAC.
What is the impact on Landlords? There are positive and negative impacts for Landlords. Flexible workspace operators take up large amounts of space, in addition, a benefit of negotiating a deal with a flexible workspace operator is that, unlike traditional occupiers, they do not need to align lease commencements to the expiry of their current premises creating pre-let opportunities. Finally, flexible workspace operators often act as generators of traditional tenants for the Landlord if the client or member of the operator moves on to permanent space. One of the negatives often cited is the impact on tenant mix. The selection of the operator which best compliments the existing mix is essential.
Benefits for the end user? There are now a range of concepts to select from, a company can now choose from an operator such as Servcorp, who are considered the global market leader in premium flexible office accommodation, with traditional serviced office accommodation in Hong Kong’s most iconic development – Two IFC, to a local coworking operator, such as Campfire, offering space in a Grade B building in Kennedy Town. In between these two extremes lay a range of international operators – WeWork who will soon open 90,000 sq. ft. of coworking and serviced office space in Tower 535 Causeway Bay, and Regus who offer a range of solutions across the market. Start-ups often prefer the newer coworking operators, while these spaces often cost more per square foot in rent, the reduction in capital expenditure and the flexibility offered, usually on month to month “memberships” rather than leases, is enough to off-set the additional cost. Members are also offered both face to face and web based networking opportunities, facilitated by the operators, that they would not normally have access to – some even offering an online platform to exchange services. Often the operators provide access to VCs and mentorship. MNCs are also increasingly attracted to coworking operators, with WeWork, who are not exclusively coworking, hosting the UK’s Guardian Newspaper in one of their New York centres, among other MNCs such as American Express – these companies sit side by side with an array of tech start-ups. Large financial institutions typically occupy more traditional serviced offices for branch or project offices. Servcorp estimate 60% of their clients are MNCs – an example of this is UBS who occupy space in Servcorp’s Doha office and, closer to home, Abu Dhabi Investment Authority, occupying space in Two IFC. We foresee demand for flexible workspace to continue to rise. Aside from the obvious benefits of limited capital expenditure and flexibility, the new lease accountancy standards mean that office accommodation that is non designated limits the initial impact on a company’s balance sheet. For further information on flexible workspace please kindly contact: jonathan.wright@colliers.com 25
Focus on Members
Interview with Mr. Joseph Fung, Founder & Managing Director of Fairchild Junior Academy In mid-February this year, Fairchild Junior Academy (“FJA”) opened its early childhood education centre, in the Park Commercial Centre in Tin Hau, Hong Kong. The first Fairchild kindergarten, based in Sai Ying Pun is currently being developed with a proposed opening date in late September 2016, pending licence approval from the Education Department Bureau of Hong Kong. Together, Fairchild Junior Academy and Fairchild Kindergarten will offer classes for children age 6 months to 6 years.
Mr. Joseph Fung, Founder & Managing Director of Fairchild Junior Academy
Over the coming years, Fairchild Canadian Academy (“FCA”) proposes to develop a through train school system to include playgroups, kindergartens and primary to grade 12 to allow students to start at Fairchild as early as 6 months old and be part of a Fairchild school until high school graduation.
Your professional background is in finance and banking; from where did you draw your inspiration for Fairchild Canadian Academy? Over seventy years ago, my grandfather, Mr. Fung King Hey, arrived in Hong Kong as a refugee. Penniless and uneducated, he had overcome countless challenges. Guided only by a set of selfprescribed principles, he took advantage of opportunities that he encountered and created new ones where none previously existed. My grandfather went on and became a founding member of Sun Hung Kai & Co. Ltd., one of the largest stakeholders of Wall Street and a pillar of the Hong Kong finance industry. My grandfather’s experiences led him to instill in my family, the value of a well-rounded, inquiry based education and I have had the fortunate circumstance to experience both a quality education and the joys of learning within a natural environment. In looking at the education sector in Hong Kong, I saw the opportunity to foster children’s learning and exploration by creating unique learning spaces within Hong Kong.
But why schools when you could have chosen so many other paths? Growing up in Canada, my backyard was a forest and returning home with cuts, scrapes and a smile on my face was a part of my daily life. The small challenges that I set as a child and succeeded in, resulted in a growing sense of confidence, if not resilience. Numbers, ideas and analysis came naturally later. Little did I know that it was my teachers and my parents who were the ones that guided and encouraged me throughout the process. Many years later I learned that this is the crux of inquiry-based learning. 26 EXCHANGE Vol.17
Focus on Members FCA’s inquiry-based programmes are based on established Canadian and British educational principles and the Reggio Emilia approach to learning. To ‘bring the outdoors in’, FJA aims to provide the natural, guided learning environment that I was given in Canada but with modifications for the urban setting and limitations of space within Hong Kong. I do not claim to be an educator but having had the time to reflect on what gave me the right tools to tackle the formidable challenges that arise as an adult, I would like to share the values I hold around education and for me to give back to the Hong Kong community in this way.
You mentioned the idea of ‘giving back’ to the Hong Kong community, why is this important to you? My family has been fortunate to have prospered. Beginning with my grandfather, and continued by my father, Thomas Fung Wing-fat, Chairman and CEO of the Fairchild Group, my family’s charity and community services have grown, giving back to the community in appreciation for what both Hong Kong and Canada have given us is our goal. I am completely humbled by my family’s legacy of charity and social responsibility, a legacy which I can only hope to perpetuate. FCA is established as a not-for-profit organisation.
As a non-educator, how did you set about developing FCA? I hired an excellent team and it is a distinct privilege for me to work with such caring and experienced individuals to set up this new educational institution. FCA spent nearly 3 years planning and developing our educational model, working in close consultation with three world class schools (Pre-K to Grade 12) in British Columbia and Ontario. These are York House School and St. George’s School in Vancouver and The Bishop Strachan School in Toronto. We also work closely with the Faculty of Education and the Faculty of Land & Food Services at the University of British Columbia (“UBC”).
about his environment and creates relationships within it, which is critical for the development of problem-solving skills, critical thinking, building imagination, creativity and so much more. Given time for authentic and guided play, children build a solid foundation for all key academic, numeracy and literacy development. Research is clear that children who learn through play are more likely to be academically successful as high school and university students. Learning and play cannot be separated in our early year programs and our mission is to cultivate curiosity, creativity and confidence in all our students.
What are the Reggio Emilia elements parents may notice when they enter an FCA school environment? In the Reggio Emilia approach to learning, the environment is recognised for its potential to inspire children and is considered the third teacher. When a parent enters FJA in Tin Hau for example, beauty. Special learning features include a tree house, vertical garden and an aquarium \ terrarium. FJA is outfitted with environmentally sustainable, natural, non-toxic wooden furnishings and products created by Natural Pod, a Vancouver based company. We work closely with LT+ Architects to create environments that ‘bring the outdoors in’ using natural elements of wood, water, where every material is considered for its purpose and every corner is ever-evolving to encourage children to delve deeper and deeper into their interests. Fairchild Kindergarten will also provide such space to encourage collaboration, communication and exploration. It is not just what parents see that is important when they enter, but also what they feel. Our Head of School, Dave McMaster and Director of Learning, Kathy Nutting place a strong emphasis on the ‘smile index’ as a measure of the atmosphere of happiness in the centre and how much children, staff, caregivers and parents love to come to school every day. We also nurture a sense of respect and care for people and nature which is reflected in our day to day interactions.
Finally, on a personal level, what qualities would you like students to develop to reflect their Fairchild educational experience?
As FCA continues to grow, these close relationships will provide opportunities to constantly reflect on best practice in Early Childhood Education and pedagogical approach, as well as benchmarking against these prestigious, high ranking schools in Canada.
As passed on from my grandfather to my father, then to me, I would like all Fairchild students to become confident, resilient and passionate to be successful at whatever they choose to do in life, bolstered by an eagerness for lifelong learning and an openness
Fairchild Canadian Academy promotes inquiry-based learning. Why a focus on the importance of play?
students remain happy, humble, caring and respectful with a deep sense of social responsibility.
Supported by Canadian and British early year educational principles and the Reggio Emilia inspired approach to learning, play is central to all Fairchild early year and kindergarten programs. Play is a child’s work and is instrumental to brain and body development. Through play and discovery, a child learns
To learn more about Fairchild Junior academy, you are invited to visit www.fairchild.academy to explore the school’s philosophy, programs, schedules, fees, staff bio’s and lots more. Contact them directly to arrange a school visit or trial class.
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Focus on Members
Managing China Procurement Risk for SMEs This case study presents the issues associated with the purchase of building equipment from China by an Australian Buyer and discusses the lessons learnt to provide a guide for companies importing from China and to highlight the importance of developing a sound procurement strategy. By Paul Belcher, MadePartners Ltd
The names of the buyer and supplier have not been used to protect both of their interests. However, the case study includes an Australasian Company (“the Buyer”) that had been buying product (“the Building Equipment”) from China through an Australasian Agent (“the Agent”) for several years. The agent was buying the equipment from a Chinese manufacturer (“The Manufacturer”) and this was the fifth order for the Equipment with the same Agent. The previous four orders had been delivered satisfactorily with only minor problems. The Buyer followed the same process for the fifth order, which included paying the Agent a 30% deposit with the purchase order and a 70% final payment upon completion of manufacture and prior to the goods leaving the factory. The Buyer contacted the Agent several times after making the final payment and was re-assured that the Equipment would be delivered per the schedule. A week after the due delivery date, the Buyer contacted the Agent to find out why the Equipment was late, but the Agent was not answering phone calls or emails. The Buyer persisted with further enquiries and discovered that the Agent had gone out of business and was un-contactable. The Buyer was getting nervous since he was subject to liquated damages for late supply of the Equipment. He eventually managed to contact the Manufacturer and explained that the Agent had bankrupted and he
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would be dealing direct with the Manufacturer. He asked for an update on the progress on the manufacture and delivery of his Equipment and was devastated to discover that not only had the Agent not placed an order for the Equipment with the Manufacturer, the Agent had not paid the Deposit or the Final Payment to the Manufacturer.
nominated bank account. Subsequently, the Representative was able explain the situation to the factory and facilitate the successful payment of the deposit. With sufficient empathy and pressure, the Representative was also able to negotiate a production slot with the Manufacturer that would allow for the Equipment to be manufactured and delivered in time to avoid liquidated damages.
The Buyer did not have time to find another suitable manufacturer and placed an order with the same Manufacturer to ensure that the Equipment was delivered in time and avoid the liquidated damages for late delivery. After paying the 30% deposit, the Buyer received an email from the Manufacturer to advise that they were having difficulties with their bank and could he transfer the money to a different bank account.
Whilst on site, the Representative carried out a brief audit of the Manufacturer’s facility. The audit identified issues such as: the Manufacturer did not carry out the electrical installation to any known standard, and there was no packing specification to ensure that the Equipment were packed to avoid damage during handling and shipping.
That’s when the Buyer contacted MadePartners (“The Representative”). By ringing the Manufacturer, the Representative discovered that the email requesting the banking details was not in fact sent by the Manufacturer. Smelling a scam was involved, closer investigation of the email address revealed a slightly different email address to the original Manufacturers email address.
The Buyer advised that he did not need the Representative to carry out in process inspection nor witness the testing and commissioning of the Equipment during production, but agreed that a final inspection should be carried out before final payment. Subsequently, the Representative carried out a final inspection and, in the absence of a packing specification, worked with the factory to get the packing quality improved prior to the final payment of 70% being released by the Buyer.
Although the transfer had been made to the Scamming Company’s (“the Scammer”) bank account, the Buyer was able to stop the payment of the deposit to the Scammer. In the meantime, the Representative visited the factory to make sure that the next payment went to the Manufacturer’s
The Equipment arrived at the Buyer’s premises on schedule and he avoided liquidated damages. The Buyer also commented that the packing quality was significantly improved over the packing from previous deliveries.
Focus on Members
Installation and testing of the Equipment was carried out in accordance with the Buyer’s original schedule. However, two faulty electrical panels were identified during commissioning that prevented the installation to be completed. The Buyer contacted the Manufacturer to urgently send replacement electrical panels. After two days with no response, the Buyer asked the Representative to contact the Manufacturer to speed up the supply of the replacement panels. The Representative learnt that the Manufacturer’s contact person was on a business trip and could not respond to emails. The Representative persuaded the Manufacturer to act quickly to get manufacture of the new panels underway. The replacement panels were air freighted and successfully installed and tested by the Buyer. Unfortunately, the delay in the supply of the replacement electrical panels led the Buyer to incur liquidated damages.
Lessons Learnt The lessons learnt presented below are based on the recommendations that were provided and implemented.
Dealing direct to manufacturers versus agents • Agents may be better if you need to consolidate your small order with a large order. • Risks include, the agent goes out of business, the agent changes factories or the factory out sources their work to another factory, which can negatively impact quality.
• Use a local partner if going direct to a factory.
Qualifying Suppliers • If using an agent it is recommended to pre-qualify their suppliers. • If the agent is reluctant to provide the names of their suppliers, then maybe look for another agent as they should add more value than just knowing the Chinese factory. Payment to Manufacturers • China factories typically want 30% deposit and 70% by T/ Tex factory • A letter of credit provides better protection for the buyer and is considered a fair payment term for the buyer. Specifications • Be very specific about your requirements and how your product should perform. • Reference international standards where possible and applicable. • Prepare specifications that include material, testing and packing requirements. Inspection, FAI, Testing and Surveillance • A final inspection before shipment is not enough for complex products. You might get lucky once, but that does not guarantee success for the future. • Managing the delivery program is essential to keep the manufacturer on schedule. This is more significant if you are responsible for the shipping.
• Develop and agree upon an Inspection and Test Plan with the manufacturer and have somebody check that the inspections and tests are being carried out correctly to reduce risk of noncompliance. • Verify that non-conformances have been closed out prior to making the final payment.
Relationships • Relationships in China are an important aspect of a good outcome. Invest time into developing these relationships. • It is difficult to develop meaningful China relationships from foreign markets due to distance, cost, cultural and language barriers. • Use someone that speaks Chinese and understands your product and needs to represent you. Supply Chain Review • Identify and develop relationships with alternative suppliers to confirm quality and pricing are competitive and to provide a backup! Importing from China is in most cases a complicated task. Before taking actions to source from China it is highly recommended to carry out a risk assessment and develop a clear procurement strategy. If you require assistance to develop a China Procurement Strategy contact Paul Belcher at Paul.Belcher@madepartners.com
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Focus on Members
BORN TO DISRUPT – Canada’s Maverick University of Waterloo Grows its Hong Kong Presence By Michael Wong, University of Waterloo Hong Kong Foundation
30 EXCHANGE Vol.17
Focus on Members Traditional universities are rarely mentioned alongside the disruptive business models now reshaping our view of today’s commercial landscape.
physicist Stephen Hawking, who noted, “What’s happening here at Waterloo is truly special, from theory to experiment and beyond.”
But Ontario’s University of Waterloo is no traditional institution.
To this Waterloo offers the world’s largest co-op program that enables international work placements as part of its curriculum, and an entrepreneurial approach that helps students start new companies, while providing them with the infrastructure and guidance to succeed. And unlike many other schools, Waterloo students own their projects’ IP throughout the process.
Waterloo President Dr. Feridun Hamdullahpur set out the school’s vision in an October 2015 op-ed published in The Ottawa Citizen, where he wrote that “Universities, especially those intensively engaged in research, are uniquely equipped to bring together the essential ingredients that will produce the type of people the disruption economy needs to thrive.” The result is a new wave of graduates noted by Canadian Prime Minister Justin Trudeau, who recently (half) joked that Waterloo’s startup successes have meant that United States companies now “poach our best grads.”
Building Waterloo-Hong Kong Connections Dr. Hamdullahpur discussed the importance of the Hong Kong region to Waterloo’s plans during his November 2015 visit to the city, when he met with several media to discuss the school’s international strategy. Dr. Hamdullahpur told the publication Hong Kong Means Business: “We want to come out of Canada and show the world what this University is all about, so we’re reaching out to the world through Hong Kong,” he said. “We have the largest concentration of alumni in Hong Kong, with well over 2,200 graduates and it’s growing. This place is also a rich source for partnerships.” Since then Hong Kong has hosted visits from the university’s Dean of Science, Dr. Robert Lemieux in March 2016, followed by its Dean of Mathematics, Prof. Stephen Watt in May. Prof. Watt noted: “The University of Waterloo is already here in Hong Kong society,” estimating that there are about 1,000 math alumni working in the city. “Hong Kong is a world city and Waterloo, especially in its math and computer areas, is a world university. Because math and computers are so integrated into every aspect of Hong Kong society, we are already very involved here.” The Mathematics Dean reinforced Waterloo’s connection to Hong Kong by relating how logistics technology provider Descartes touches Hong Kongers’ daily lives. Waterloo-based Descartes effectively manages Hong Kong’s NWFB and Citybus buses in transit, providing riders with accurate advance notification of pending stops. The innovative system won two Hong Kong ICT awards in 2013, and is used today as a case study in University of Waterloo business courses. Founded in 1957 with a mandate to drive change, Waterloo has been named Canada’s most innovative university 24 years in a row by MacLean’s rankings. Backing its world-class research area, Waterloo’s top-flight engineering, math and computer science programs have attracted praise from theoretical
Waterloo Companies Adding Value to Hong Kong Examples of Waterloo-bred or assisted companies achieving fame here include Blackberry, APrivacy, Pebble and the award-winning Hong Kong-based mobile marketing firm Cherrypicks, whose CEO Jason Chiu graduated from Waterloo in 1994 with a Bachelor of Applied Science in Electrical and Computer Engineering. “I was very fortunate to have entered into one of the best engineering programs in the world,” said Chiu, who founded Cherrypicks in 2000 and has since gathered personal accolades as well, being named Young Industrialist of Hong Kong 2014 by the Hong Kong Federation of Industries and Outstanding IT Person of the Year 2014 by Hong Kong magazine eZone. “But it was not only the education that equipped me for the future, it was also Waterloo’s co-op opportunities that allow me to discover my passion in the commercialization of technology and understand both the business and people aspects of making things happen in the society,” he said. As Dr. Lemieux told the South China Morning Post in March, “It’s about student entrepreneurship. We train entrepreneurs. The students start and build companies. The only others like this are MIT and Stanford.” Perhaps Cherrypicks’ Chiu says it best. “From my university days, I realized that technology is the best catalyst to bring about positive change in our daily life,” he said. “And I found myself surrounded by like-minded high achievers who are smart thinkers and doers. While we cannot predict the future but we can certainly shape it with technology, imagination and persistence.” Spoken like a true Waterloo graduate.
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Community
Natural Partnership Toronto’s Mayor says a shared history and business interests make Hong Kong and Toronto natural partners.
By HKTDC Hong Kong Means Business Toronto Mayor John Tory led a 34-member delegation to China in April, his first major overseas foreign trade mission since assuming the post in 2014. The business mission focused on promoting the Canadian city’s key sectors-financial services, urban infrastructure, clean technology and education.
Toronto Mayor John Tory
The group wrapped up its China visit with a stop-off in Hong Kong, where the city signed an agreement with the Hong Kong Trade Development Council (HKTDC) on expanding trade and investment promotions between the two cities.
As the gateway to North America and Canada’s commercial capital, Mr Tory says Toronto is open for business. Toronto stands ready to do business with China and other countries along the Belt and Road routes, according to the Canadian city’s Mayor John Tory, at the end of a high-level trade mission to China in April
What were some of your impressions from your latest trip to China? I was last in mainland China in 1984, when I travelled to Shanghai, Wuxi, Beijing and Nanjing. For someone like me coming back to those cities again, particularly Shanghai and Chongqing, it was extraordinary. If you look at what’s going on in those cities today, you can see a profound transformation taking place, both in their economies and in their city infrastructure. They’re having to cope with huge migrations of people. It has its good sides, in terms of contributing to economic growth. But at the same time, it’s leading to a gigantic infrastructure problem, which in some respects, they are managing better by resolving to get them done in a reasonably short period of time. We have to go back and tell the story of what China’s modern cities look like because many people have the impression still of a country that is not very advanced . And when you go to Chongqing, Beijing and Shanghai, you come away with an overwhelming impression that these are modern dynamic cities.
At the same time, you want to change people’s perception of what Toronto and Canada has to offer. Just as I was suggesting there may be an impression of China’s that’s out of date, there’s an impression of both Canada and Toronto that is a bit out of date. In the case of Canada, we’re seen as this beautiful land of mountains, of lakes and fish, which is true. But we also have a modern economy and big cities that are every bit as dynamic and exciting as anywhere else in the world. People will see there’s plenty of opportunity to partner with Toronto firms in every area: life sciences, tech, food processing, banking, healthcare. It’s a hugely diversified economy, full of smart people and we want to partner with smart people in places like Hong Kong. 32 EXCHANGE Vol.17
Community You say that this outdated impression is partly because Canada has not been very good at selling itself. Canadians are very modest people by nature. That’s a good quality in many respects, but it does make us less outgoing when it comes to selling, say, compared to our American friends. We have also had the advantage of living next door to the United States where there was this huge growing market that is still great for our prosperity. But it’s best not to just hitch yourself to one wagon. We recently had a Toronto food business that has gained access to the Chinese market to supply Canadian food products. We only have 35 million people in our country and the notion of having access to 300 million of China’s middle class that will buy these goods; think of what it could do to those companies in terms of expanding their horizons, employment and profitability. So everyone has to take a look at other economies and consider their potential.
What types of investment would your city welcome? We’re an open economy. In the old days, people would have confined themselves largely to natural resources, investment and land development. We now need capital from Hong Kong and Asia to fuel our start-ups in tech and life sciences. We have promising companies that get scaled up to a certain extent, But when they need to go to the next level so they can compete in the Asian or American market, there isn’t the financing available. There’s also room for Asian investment in infrastructure, public infrastructure and other kinds of projects. I would say the door is open because we have a rapidly growing economy and we’re a smaller economy in terms of the availability of domestic capital. But it’s a very rich country, therefore it can sustain these kinds of investments and produce a good return.
“If Hong Kong is a super-connector in Asia, then the HKTDC is a super-connector for us and our business community to Hong Kong and through to Asia and vice versa.”
With this Memorandum of Understanding you signed with the HKTDC, how can it help strengthen trade ties with Hong Kong? The single best organisation that can tie us into the commercial sector and to trade development between Hong Kong and Toronto is the HKTDC because they represent those who are most likely to be doing business with us. If you look at the turnout that came to the “Think Asia, Think Hong Kong” seminar in Toronto last year, it was stupendous. You had every major company that was in just about any field, show up to be part of that because they wanted to learn more. If Hong Kong is a superconnector in Asia, then the HKTDC is a super-connector for us and our business community to Hong Kong and through to Asia and vice versa. There are probably many places in the world that do more business on a dollar volume basis than Toronto with Hong Kong. But not many have the historic business connection and common population moving back and forth between these two cities, and that’s a huge advantage for us to forge a special partnership going forward.
How can Canada tap into China’s Belt and Road Initiative? I would hope that there could be some sort of an air link to include Canada, as we wouldn’t come as readily to mind because of the geography of where we are. But technology means there is no distance and barrier in getting things done. I hope the Initiative can be broadened beyond the borders of the geographic Asia and Europe, to North America where there sits a city ready to do business on a number of these fronts and become a part of that. But the key is that China is looking outward both in terms of places to sell things, to invest, so the exciting part is the country is looking outward. 33
Community
The Challenges And Success Of Setting Up And Doing Business In Hong Kong Interview with Mr. Calvin Mak, Founder and CEO, Rhombus Group By Katrine Cheng, The Canadian Chamber of Commerce in Hong Kong 34 EXCHANGE Vol.17
Community Q1. Can you give us a brief background on yourself and Rhombus Group? Why did you choose Hong Kong over other Asia-Pacific cities? I was born and raised in Hong Kong, but I decided to immigrate to Canada when I was in my teens. I had heard many great things about Canada at the time and being young, I wanted to explore what was on the other side of the ocean. During my studies in Canada, I was awarded a scholarship in hotel management and offered an internship opportunity from the Hilton International Hotel Group. Looking back, Hilton was where I really first started my hotel management journey and continued for many years while working with some of the best people in the industry, including Four Seasons and Delta hotels. Eventually, I built my first hospitality company in Canada, CTEW Group. Starting from 2006, I travelled back and forth between Hong Kong and Canada to take on several challenging hotel consulting projects. It was by chance that one of the project owners was looking for someone with my international hospitality experience and background to build a hotel from scratch. I thought it was a great chance for me to apply all the knowledge and skills and I gladly accepted the challenge. Moreover, I saw this as an amazing opportunity to contribute back to the community and my birthplace. After building an excellent relationship with the owner, we partnered to establish the Rhombus Group. The first hotel that we built was Hotel LKF by Rhombus in Central. Over a span of 7 years, we were able to expand the group portfolio to 7 hotels, including hotels in Europe and China.
Q2. How do you find Hong Kong different from Canada in terms of working style? I think what comes to my mind initially in term of differences is that in the Western world there are plenty of work unions representing labor forces. Hong Kong is slowly getting more exposed to the idea of creating union bodies to protect the rights of the workers. However, this will definitely require more time to solicit further support and to set up the proper structures and systems. Another obvious difference is that everything is much faster in Hong Kong and work life usually involves long hours. Canadians tend to cater to a more leisure life style with a 5-day work week and in most cases, weekends off. Hong Kong is gearing towards this direction for sure but I think much more can be done to find a sustainable work life balance.
Q3. How do you see Hong Kong compared to China these days? I think there have been many differences in opinions between Hong Kong and China which I have witnessed in my lifetime. However, there seems to be a greater public display of negativity towards China in recent years. I believe that Hong Kong and China can coexist as one and that both have had their successes. Rather than constantly drilling on the negatives and complaining, I always promote positive thinking. Both sides can learn from each other and improve upon so that there can be a united foundation to find solutions to problems. We cannot change the fact that Hong Kong is part of China and they are bonded by the same Chinese cultural roots. On the other hand, it is difficult to compare the present day Hong Kong and China on the same scale. I have almost 1000 employees and it can be very hectic to manage. Can you imagine having to lead a country with over 1 billion citizens? China has been changing in an amazing way and evolving for the better in recent years. Whether you believe it or not, China has been more advanced than Hong Kong in many fields and part of it has to do with a persistent willingness to continuously learn and upgrade. Hong Kong continues to maintain its advantage to attract international players to connect and to foster new businesses. After all, there are advantages to do business in Hong Kong than in other countries as there is the rule of law, low entry barrier and the low income tax rates. This powerful combination allows new startups to launch faster and for existing companies to survive. In my opinion, in the next 25 years, China will develop into a new era for the better. There is no longer adherence to the one-child policy and the world has witnessed a progressive relaxation on traditional restrictions on international businesses setting up in China. One of the key elements to our philosophy at Rhombus is that we believe in teamwork in order to achieve greater goals and to exceed expectations. Similarly, Hong Kong and China just need to aim for a mutually beneficial relationship and to be optimistic in finding common ground as a team rather than being competitors. Regardless of where you are from and what your background is, one piece of advice that I have, especially for the younger generation, is to learn Chinese and to remember to have an open mind to learn from each other. Trust me, both of these things will come in handy one day.
Q4. What are some of the successes Rhombus Group has experienced in setting up operations and doing business in Hong Kong? I am very proud to say that Rhombus Group is one of the first hospitality companies to introduce the boutique hotel concept to Hong Kong. Also, we are one of the first hotels to place cappuccino and specialty coffee machines in guest rooms. Being the first is always our number one priority and this includes innovation and return on investment. We aim to not only provide excellent service to our customers but to provide a memorable experience as well.
Q5. What advice do you have for our readers who want to do business in Hong Kong? My advice is simple: Get ready to learn constantly. Don’t get frustrated over one failure; failure is inevitable, especially for start ups. I waited for a year and a half before I got my first hotel contract after setting up my own company in Canada. Have faith in yourself and keep going. Another tip I would like to share with the newcomers is to fully utilize the networking opportunities offered by the international Chambers. Hong Kong is an amazing city with a close community and it is very easy to get to meet new contacts– build your network! 35
Professional Development
Why Hong Kong Is Falling Behind Its Peers In Branding By Andrew Ryder, Edelman Digital
H
ong Kong is fast, busy, bustling and full of life. It’s a place that’s industrious, competitive and incredibly driven – the perfect place to build brands, right? Wrong. Hong Kong marketers are lagging behind their peers. But why? Has the need for short term profits and the need for instant gratification on our Facebook feeds short-circuited our approach to brand building? In our need for speed have we become so lazy that we’re falling off track? The chase for short term marketing results is affecting brand’s abilities to focus on the long term. Marketers are using shortcuts to keep and attract consumers, which unfortunately results in consumers developing a lack of trust in brands’ owned channels. Two of these shortcuts are the use of one-off celebrity endorsements and neglecting the creation of data-led campaigns. The Hong Kong market is saturated with examples of campaigns in which brands use celebrities in one-off exchanges as a way of driving engagement on social channels. This is somewhat shocking given that the 2016 Edelman Trust Barometer research reveals that in Hong Kong, only 36 percent of the general population trust
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information shared by a celebrity. That’s not to say that there isn’t value in a strategic and meaningful long term brand-celebrity partnership. However, these one-off exchanges are transactional, shallow and although they often bring a temporary spike in traffic, they give marketers false hope that long-term brand building can be done with short-term social media engagement. The methodical building of a brand and its values is driven by great products/ services and top-notch content. Proving a tangible ROI also points to a larger problem across Hong Kong – the lack of data rigour. In my experience, very few brands demand robust analytics from their agency partners. Brands launch
Professional Development
campaigns without clear business/sales/lead generation KPIs. Often, brands somehow believe metrics such as fans, likes or shares are sufficient. The problem is when brands do not demand robust analytics linked to business KPIs, then all but the most data-led agency partners become lazy. This lowers our market’s ability to compete with its regional and/or global peers. Short-term and often lazy tactics, like using quick celebrity endorsements and non-data supported campaigns, is leading to a significant and damaging lack of trust in Hong Kong’s media landscape. This lack of trust is impacting our market’s ability to compete. Edelman Trust Barometer Hong Kong research indicates
that a brand’s owned channels are the least trusted, by both millennials and the general population, at 35 percent, when compared to social media (46 percent), search engines (52 percent), and traditional media (54 percent). It’s clear that trust in a brand’s owned channels is necessary for a consumer to build brand affinity, loyalty and advocacy. Without this trust, there is a fundamental flaw in a brand’s ability to connect with its audience, convert customers, and in turn, build brands. For Hong Kong to regain its marketing mojo, it must slow down and regain trust in brands, which can only happen through strategic campaigns that guide long-term brand building. 37
Leisure
By Jonathan Csanyi-Fritz, Halo Travel Asia
Raja Ampat –
Remote, Beautiful, Pristine
O
ver the last six years that I have been living in Hong Kong I have heard about hundreds of beautiful and amazing places being touted as ‘off the beaten track’ or one of ‘the last untouched’ destinations. Each year you hear about a hot new destination and shortly after there’s a direct flight from HK and Facebook and Instagram are filled with pics of the most iconic monuments. I wouldn’t be surprised if Raja Ampat follows this trend in the coming years – but right now, it’s still too remote for the mainstream. Make the long journey to get there however, and you will be rewarded with a truly incredible, unique and secluded location. If spectacular natural beauty & the best scuba diving on the planet sound interesting to you; read on. Raja Ampat archipelago is comprised of four large islands: Waigeo, Batanta, Salawati and Misool along with 1,200 plus islands and islets. Hundreds of small islands dot the sea; still covered with lush and vibrant wild jungle. The beaches are some of the most stunning you will ever see, yet, most are devoid of any sign of people at all! A deserted beach or unspoiled jungle is more common than a paved road or man-made structure. The warm waters come in dazzling hues ranging from deep blue, to aqua, to beautiful greens and shades I had not seen before – like the crystal clear, yet impossibly rich royal blue near Misool island.
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Leisure Raja Ampat is considered one of the most essential parts of the Coral Triangle (which is considered to have the most biodiversity on the planet). This Biodiversity and the fact that 70-80% of the known varieties of coral can be found here mean Raja Ampat consistently ranks as a top diving destination. Until recently the area was relatively unknown to tourists and it was only the more intrepid divers who made the long journey to get here. It consistently and ubiquitously exceeded the expectations of these experienced and well-travelled divers and so word of mouth quickly grew about the endless coral and a sea teeming with life. While Raja Ampat is an obvious magnet for divers and nature lovers, there are plenty of other activities to keep you busy and even some luxury to be found here as well. Here are my pics for places to stay: As Raja Ampat covers a large area, your location determines the activities available to you. You will not be able to find the same activities in one location as you would in another. For this reason it is important to speak to a travel agent about the specific activities that are available at each location. The most luxurious option for accommodation is the Misool Eco Resort. However, there is also another modest option that is worth consideration as well – The Sorido Bay Resort. The Sorido Bay Resort is a little easier to get to and a more budget conscious option. Located on Kri Island, the Sorido Bay consists of comfortable stone bungalows set within the jungle overlooking a lagoon. Sorido Bay is near the famous dive site Cape Kri; which is one of the more popular sites in Raja Ampat. During your stay at Sorido Bay all meals are included. The Misool Eco resort is “A true tropical hideaway, just south of the equator and fringed with powder-white beaches and pristine coral”. They don’t just offer luxury accommodation; it is also a conservation centre that works hard to preserve the natural beauty and habitat it calls home. The owners have already done so much to preserve this beautiful corner of the planet and they continue to work diligently on conservation. You can read about some of their current projects here: http://www.misoolecoresort.com/currentprojects.html. It is worth reading into the work they do and if you have a chance to stay there it is well worth the journey. Raja Ampat’s location near the equator means year round warm temperatures. However, you can get rain any time of year as well. Generally, the waters are roughest from July to September, with more rain falling in those few months along with June and October being considered wetter months as well. To avoid the rain, November to March is peak season with calm seas being the norm. Yes, Raja Ampat is difficult to get to, but it is a journey worth making. From Hong Kong you will have to take a flight to Jakarta and on to Sorong via Makassar. The best way to do this is flying overnight with Garuda Indonesia. A pristine tropical paradise awaits you and hopefully the ongoing conservation efforts will keep this unique gem pristine for years to come! 39
Event Highlights Photos By Sarah Cheng
KPMG and CanChamHK Present: The Innovation & Technology Series 2016 Title Sponsor: KPMG
In this series, KPMG brought in 2 panels of speakers to talk about the Chinese consumers being driven by disruptive technologies, and some of the disruptive technologies being used in the real estate market.
February 19, 2016 – KPMG Office, April 25, 2016 – KPMG Office
Property Committee Presents: 2016 Trends Shaping the Property Market in Hong Kong Venue Sponsor: KPMG
Dr. Justin Chiu, Executive Director of Cheung Kong Property Holdings Limited explored with our audience on whether Hong Kong was heading towards a soft landing based on the recent market events. Topics included: Slowdown in the Mainland economy, expected appreciation of the HKD, due to its peg to the USD, and anticipated launch of the Shenzhen Hong Kong Stock Connect.
February 25. 2016 – KPMG Office
KPMG and CanChamHK Present: The China Series 2016 Title Sponsor: KPMG
With the support of KPMG, we brought in 2 panels of speakers to talk about China’s Fifth Plenum, giving a broad overview and details on the implementation, as well as to speak in regards to private equity investment in the Chinese market.
March 21, 2016 – KPMG Office, June 6, 2016 – KPMG Office
ESBC Signature Series Part 2 – A Practical Checklist: Skills and Experiences During the Setup Phase Title Sponsor: Baker Tilly Hong Kong Venue Sponsor: Regus
Mr. James Gibson, Emack & Bolio’s, Mr. Arnold Leung, Appnovation, and Mr. Charles Ng of InvestHK had shared experience about the challenges entrepreneurs, start-ups including MSEs faced while establishing and operating a business in Hong Kong and the Asia Pacific Region. March 23, 2016 – Regus
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Event Highlights Financial Services Committee Presents: Big Data and Analytics in Financial Services Organized by the Financial Services Committee, Mr. Philippe El-Asmar, the co-founder & CBDO of Amareos and the Founder of PEA Global Consulting, discussed the future of Big Data and the benefits and concerns that companies embracing Big Data may experience.
April 15, 2016 – CanChamHK Boardroom
The Women’s Network Presents: “I Wish I Would Have Known...” This thoughtful discussion featured Ms. Wendy Tong Barnes from Cheung Kong Infrastructure, Ms. Vanessa Poon from Deloitte, moderated by Ms. Doreen Steidle, HSBC, discussed the personal lessons they have learned in their career and life journeys.
April 21, 2016 – CanChamHK Boardroom
Young Professionals Committee Presents: Mentorship Programme Season 4 Closing Event Academic Sponsor: HKUST MBA Program
CanCham YPC brought its 4th mentorship program to an end atop Azure Restaurant Slash Bar. With another year completed, the mentees and mentors are looking forward to the next season of the mentorship program.
May 3, 2016 – Azure Restaurant Slash Bar
The Entrepreneur and Small Business Committee Presents: The Rise of Social Enterprise in Hong Kong Professor Mark Hayllar moderated a discussion with panelists Professor George Woo, Poly Vision, Ms. Doris Leung, Diamond Cab, and Mr. Patrick Cheung, Dialogue in the Dark, about their unique business models – social enterprise, their methods of raising venture capital, and the social impacts and benefits of business decisions.
May 4, 2016 – CanChamHK Boardroom
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Welcome New Members CORPORATE
The Butchers Club Mr. Jonathan Glover, CEO Mr. Jess Davis, CFO Ms. Lotte Vander Brom, Marketing and Sales Manager info@thebutchersclub.com.hk http://thebutchers.club/
Club Med Mr. Julien Hauss, Business Development Manager – MICE +852 3111 9381 julien.hauss@clubmed.com https://www.clubmed.com.hk/
Equiom Corporate Services HK Ltd Ms. Anik Tremblay, Business Development Manager Ms Debby Davidson, Group Business Development Director Ms. Jade Wong, Associate Director – Business Development +852 3188 1143 hongkong@equiomgroup.com http://www.equiomgroup.com
Exiger Asia Ltd Mr. Vanson Soo, Director Mr. Velisarios Kattoulas, Vice President, head of Business Mr. Hong Hui Wong, Associate Managing Director +852 3469 5194 hongkong@exiger.com http://www.exiger.com/
SkyPoint Realty Partners LTD. Mr. Brett S. Cameron, CEO Mr. Eric Siu, Key Account Manager Ms. Yung Yung, Creative Designer +852 3180 9284 info@skypointrp.com http://skypointrp.com/
University of Calgary Dr. Janaka Ruwanpura, Vice-Provost International Mr. Mark Sollis, Associate Vice-President Alumni Mr. Tom Liu, Country Coordinator China +1(403)220 5110 http://www.ucalgary.ca/uci/
CORPORATE ADDITIONAL
The Chinese University of Hong Kong Mr. Lawrence Chan, Admission Director Ms. Becky Tsang, Senior Manager, Marketing & Student Recruiting Ms. Roanne Law, Manager + 852 3943 7782 cumba@cuhk.edu.hk www.mba.cuhk.hk
L&K Group Holdings Limited Mr. Ka Cheong Kam, Executive Director Mr. Wai Hung Lau, Executive Director +852 3520 2477 info@lkconsultants.com http://www.lkconsultants.com
National Properties Holdings Limited Ms. Eva Yeung, Senior Sales Manager http://www.nationalhotels.com.hk/ Diamante Development Corporation Ms. Julie Di Lorenzo, President Mr. Samuel Wong, Vice President, Special Projects and Sales Ms. Anne Sedgwick +1 (416) 741 7207 info@diamantedevelopment.com http://www.diamantedevelopment.com/
Dr. Lauren Bramley & Partners Dr. Lauren Bramley, Founder, CEO Ms. Carolyn Chan, Head of Finance Ms. Nancy Trueman, Head of Operations nancy.trueman@laurenbramleymd.com +852 2877 6068 http://www.laurenbramleymd.com
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QBE General Insurance (HK) Ltd Ms. Margaret Wong, Head of Strategic Partnership Mr. KeeEngKhor, CFO +852 2828 1998 Info.hk@qbe.com.hk http://www.qbegihk.com/
Singapore Telecom Hong Kong Limited Ms. Jenny Fong, Regional Director, Greater China Mr. Alfred Hui, Global Marketing Manager Mr. Teddy Ko, Managing Director +852 2877 1500 http://info.singtel.com/
Mr. Arthur Cheng, Assistant Manager, KPMG
ENTREPRENEUR
APrivacy Ltd Mr. Cedric Jeannot, CEO +852 3618 6128 cjeannot@aprivacy.com http://www.aprivacy.com/
Blue Ocean Strategy Mr. John Ngai, Founder & Managing Partner Ms. Della Lo, Senior Partner + 852 3757 9589 john.w.ngai@blueoceanstrategy.com http://www.blueoceanstrategy.com.hk
BottleXO Mr. Davide Lentini, Director +852 3460 2025 hongkong@bottlesxo.com http://bottlesxo.com/
Welcome New Members
Canadian Real Estate Investment Centre Mr. Keelan Chapman, Director of C.R.E.I.C (Hong Kong) +852 5121 0273 keelan@macrealty.com http://macrealty.cn
Chope Group Ltd. Mr. Wesley Tang, General Manager http://www.chope.co/hong-kong-restaurants
CUHK, EMBA Program Mr. Chun So, Administrative Director + 852 3943 7642 emba@cuhk.edu.hk https://www.emba.cuhk.edu.hk/
Groveland Financial Services Limited Mr. Brandon Hui, CEO Mr. Jim Wang, Business Development Director + 852 2545 2766 info@groveland.com.hk http://www.groveland.com.hk
Sponsorium International Inc Mr. Rejean Provost, Head of Sales, Asia + 61 (3) 9674 0878 china@sponsor.com http://www.sponsor.com
Stephen & Sons Mr. Stephen Chau, Managing Director + 852 2328 9011 sales@farbo.com.hk
SunSelect Produce Mr. Travis McLachlan, Export Manager +1 (604) 807 5457 travis@sunselect.ca http://sunselect.ca/
Thrive Nutrition Practice Ms. Cristina Tahoces Gonzalez, Owner https://thrivenp.wordpress.com/about/
Umami Concept Mr. Nolan Ledarney, CEO +852 5161 5900 nolan.ledarney@umamiconcepts.com http://www.umamicollaborative.com
INDIVIDUAL Mr. Ambrose Yau General Manager, Ditto Mr. Andrew Lee Head of Investments, Eurizon Capital (HK) Limited Ms. Chloe Ngan HR Manager & Recruitment (Contract), Global Link Int’l Ms. Cindy Kam Director, Bank of Montreal Mr. Daniel Warelis Ms. Darcy Davison Roberts Ms. Fion Chan Director, BioNature Health Products (International) Limited Mr. Guy Lam Chairman, CP Homes Ltd Ms. Jane Anders Estee Lauder Mr. John Leighton Consulting Director, FocusCore Group Mr. Laurent Lameck Branch Director Hong Kong, Pro-DataLGI Hong Kong Ltd Mr. Lawrence Yeung Marketing Associate,Pictet&Cie (Europe) S.A. Mr. Michael Lau Global Head Corporate Access & Client Management, CLSA Mr. Michael Yong-Haron Managing Director, Head of Relationship Management, Standard Chartered Bank Ms. Rosa Lo
Mr. Ricky K. Chim Honorary Consulate of Papua New Guinea in Hong Kong Mr. Rishi Jalan Vice-President, Citigroup Ms. Vicky Cheng Bloomberg Mr. Vincent Mikolay
YOUNG PROFESSIONALS Ms. Anne Mak Vice President, Wells Fargo Bank Ms. Ariane Friesen Ms. Carmen Leung Portfolio Administrator, Cohen and Steers Mr. Colin Pritchard Chief Operating Officer, InteractiveStudios Inc. Mr. Dan Couture Business Manager, Monkey Tree International Group Mr. Dominic Tam Business Development Manager, L’Voyage Mr. Julien Landais Market Data Administrator, Credit Agricole Corporate and Investment Bank Ms. Manasy Vidyasagar Senior Associate, PwC Ms. Niki Leung Marketing Executive, Techtronic Trading Ltd. Mr. Olivier Charron-Duhamel Associate, Markit Mr. Patrick Waller Marketing Director, OtterBox Ms. Simone Thomson-Sakhrani Ms. Stephanie Lau Sales Analyst, Societe Generale
NON-PROFIT Ms. Cora Chu CEO, DiD HK Limited Ms. Doris Leung Diamond Cab (Hong Kong) Ltd. Mr. Johnny So President, Chinese Investment & Business Alliance of Canada Mr. Joel Laykin Secretary, Independent Power Producers Forum Ms. Polly Zhao Director, Business Development-China, Canada Beef International Institute
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LOOKING FOR A SERVICE OR PRODUCT?
The following companies are the Chamber’s Corporate and Entrepreneur members listed by their industry categories. If you are looking for a particular product or service look here first! Support your fellow members. ACCOUNTING, AUDITING & TAX SERVICES • Baker Tilly Hong Kong • BDO Limited • Deloitte AP ICE Limited • Ernst & Young • KPMG • Mazars • PricewaterhouseCoopers • Fung, Yu & Co. CPA Limited • Koehler Group • Vistra • Deloitte Touche Tohmatsu • RSM Hong Kong • Trowbridge Professional Corporation
Limited • Loving Your Work (Spaxman Limited) • Rosemont (Hong Kong) Ltd • Sinovantage Investment Consulting Limited • Sun Hing Holdings Limited • The Hong Kong Trust Company Group • Towers Watson
• • • • • •
University of Calgary University of Ottawa University of Toronto University of Victoria University of Waterloo Yew Chung International School • York University, Schulich School of Business
INSURANCE SERVICES & BROKERAGE • Groveland Financial Services Ltd.
Investment Centre • Candid Group Asia Limited • Diamante Development Corporation • Hong Kong Sotheby’s International Realty • Jones Lang LaSalle Limited INVESTMENT • Landscope Christie’s InterMANAGEMENT national Real Estate • Canada Pension Plan In• Mordril Properties Limited vestment Board Asia Inc. • Redev Properties • Clifford Investment Co ENERGY • SkyPoint Realty Partners Limited • The Hong Kong Electric LTD. • Hutchison Whampoa Co., Ltd. BUSINESS CENTRES • Walton International Limited • CLP Power Hong Kong • Cliftons Hong Kong • Marathon Capital Manage- Group Ltd. Limited. • The Executive Center ment Limited • Kaisun Energy Group Ltd. CONSTRUCTION AND RECRUITMENT & ENGINEERING TRAINING ENTERTAINMENT LAND & INFRASTRUCTURE • Asia Clean Capital Ltd • Balloon Castle • Black Isle Consultants Ltd. INVESTMENT • Bombardier, Inc. • Lan Kwai Fong Group • Korn/Ferry International ADVERTISING, • CTC (Hong Kong) Holdings • Melco International Devel- • Cheung Kong Infrastruc• Seeds Training Hong Kong MARKETING & Ltd opment Ltd Ltd. PUBLIC RELATIONS ture Holdings Limited • Kawada Industries, Inc. • The Factory Workshop Ltd. • Jardine Lloyd Thompson • Strategic Executive Search • New Narrative • MadePartners Limited (SES) Group Limited • Speedflex Asia Limited • Sanctuary Resorts • The Communication EVENT SERVICES Group Ltd • CiEvents LEGAL SERVICES RECREATION AND • Williams Lea and Tag • Funraising Events Asia Ltd. • Angela Ho & Associates LEISURE CONSUMER GOODS • Dynamic Management Worldwide • Baker & McKenzie • Indigo Living Limited • CIHL Group Ltd. • Blake, Cassells & Graydon • The Canadian Rugby 7s • iSGO HK Limited • City Age LLP Fund ART & CULTURE • Bruno Yiu & Co. • Art Futures Group Co Ltd. DESIGN & • Dechart LLP • Voice of the Harp Limited ARCHITECTURE FASHION TECHNOLOGY & • H.J.M. Asia Law & Co. LLC TELECOMMUNICA• B+H Architects • Maxwell’s Clothiers • K &L Gates TIONS • Elena Galli Giallini Ltd. • Stephen & Sons BANKING & • McMillan LLP • PHIL & osophy Design FINANCIAL SERVICES • APrivacy Ltd • Weir & Associates SoliciConcepts • EMC Computer Systems • Bank of Montreal FOOD & BEVERAGE tors & Notaries Public (FE) Limited • Brookfield Financial • 12 Bottles Company Ltd. • IMIT Advisory | Improve • Canadian Imperial Bank of EDUCATION • BOTTLESXO HONG KONG • Zhong Lun Law Firm My IT Commerce LTD. • American School Hong • Euler Hermes HK Services • Mitel • Chilli Fagara Kong LOGISTICS & • Singapore Telecom Hong • Chope Group Ltd Limited • BabySteps Limited TRANSPORTATION Kong Limited • Golien Ltd. • Delivery.com Ltd. • Branksome Hall • Addison Limited • SmarTone • HSBC • Eclipse Hospitality Group • Allied Pickfords/Sirva • Canadian International • Surface Mount Technology • Jardine Matheson Limited • Epicurean Group School of HK • Bombardier TransportaLimited • Manulife (International) • Frutodor Ltd. • China Maple Leaf Education China Limited • ThinkAct Limited • Hainle Vineyards Estate tional Systems Limited • BSL Containers Limited • Uniserve Hong Kong • NBC Financial Markets Winery • Chinese University of • Hellmann Worldwide Limited Asia Ltd • Nestle Hong Kong Limited Hong Kong Logistics • Ontario Teachers’ Pension • Christian Alliance P.C. Lau • NextStep Gourmet Group • MTR Corporation Limited • Velocity Solutions Ltd. • SunSelect Produce Plan (Asia) Limited Memorial International • Santa Fe Transport Inter• Quam Limited • The Butchers Club • Columbia International national Limited TRAVEL & • Refund Management • Umami Concept College of Canada Over• Shipping Masters (Port of HOSPITALITY Services (RMS) Asia • Worldwide Seafood seas Montreal representative • Club Med • Royal Bank of Canada Limited • Delia School of Canada in Asia ) • Delta Airlines Inc. Financial Group • EMBA Program, CUHK • Thales Transport & Securi- • Four Seasons Hotel Hong • Sun Hing Holdings Limited • Fairchild Canadian Acade- GOVERNMENTAL ORty (HK) Ltd. Kong • Sun Life Financial Asia my Limited • FRHI Hotels & Resorts GANISATIONS • The Bank of Nova Scotia • Grtalent Consulting • GH Hotel Company • Advantage BC MANUFACTURING & • Toronto Dominion Bank Limited Limited • Consulate General of TRADING • United Overseas Bank Ltd • HKU SPACE • National Properties HoldCanada • Hay Nien Company • Hong Kong Institute of ings Limited • Government of Alberta Limited Languages • Rhombus (HK) Manage• HKTDC • TMax Group Limited BUSINESS SERVICES & • Hong Kong University of ment Ltd • International Trade and CONSULTING Science and Technology • The Mira Hong Kong Investment Office Repre- MEDIA • Anokasan Capital Ltd • International School of senting the Government • Ascent Partners Group • South China Morning Post • United Airlines Nanshan Shenzhen of British Columbia in HK Limited Publishers Ltd. • Ivey Business School • Invest Hong Kong • Blue Ocean Strategy Co. NON-PROFITS & • Nord Anglia International Ltd ASSOCIATIONS MINING & NATURAL School Hong Kong • Brookfield Financial RESOURCES • Chinese Investment & HEALTH &WELLNESS • Simon Fraser University • Equiom Corporate SerBusiness • AD MediLink • Century Iron Mines Cor• St. George’s School vices HK Ltd • Community Business • CK Life Sciences Int’l., poration • St. Margarets School • Fiducia Management Limited (Holdings) Inc. • Methanex Asia Pacific • The Bishop Strachan Consultants • CPA Canada Hong Kong • Dr. Lauren Bramley & Limited School • Givex Hong Kong Ltd. Chapter Partners • Symbior Energy Limited • The Hong Kong Polytech- • OneFitCity • Global Sources • Alliance of Canada nic University • Hong Kong Cyberport • Diamond Cab ( Hong • The Women’s Clinic REAL ESTATE & • The International Montes- • Thrive Nutrition Practice Management Company Kong) Ltd. PROPERTY sori School Limited • DiD HK Limited • TOPFIT Asia Limited DEVELOPMENT • The UBC Asia Pacific • Kayro Solutions Limited • WellnessPlus Limited • ASPAC Developments Ltd • Self Storage Association Regional Office • L&K Group Holdings Asia • Canadian Real Estate