Display to 31 May 2011 S$5.90
Daily news at www.sbr.com.sg
THE DEAL OF THE ART IT’S ART SEASON IN asia. FIND OUT WHAT YOU CAN BUY WITH YOUR BONUS
PROPERTY SPECIAL: WHAT YOU NEED TO KNOW ABOUT THE CONDO GLUt RIGHT NOW crime watch singapore freakonomics special
RICHARD BRANSON: THE ART OF DELEGATION AND PROMOTIONS
aviation report will you ‘friend’ your grandfather
Nokia E7. Success finds itself in good company. -
Touch and type plus large 4� screen View, edit and create documents Multiple email accounts 8 megapixel camera, HD filming and HDMI output
Š 2011 Nokia. Facebook is a registered trademark of Facebook Inc.
nokia.com.sg/E7
FROM THE EDITOR Publisher & EDITOR-IN-CHIEF Assistant Editor Art Director
Jason Oliver Niyasuthin
Editorial Artist
Regina Goloy
Editorial Assistant
Queenie Chan
Media Assistant Editorial Assistant ADVERTISING CONTACTS
Property remains the top concern for Singaporeans, both for would be investors and renters. In this issue we look at both the economic and social forces shaping the market, as well as some on the ground coverage from hard working agents trying to market condos in a difficult time.
Tim Charlton
Kristine Tongson Alex Wong Laarni Salazar-Navida lanie@charltonmediamail.com Alyz Katherine Tenorio alyz@charltonmediamail.com Loren Laylay loren@charltonmediamail.com
April also marks the end of the bonus season, and whilst not pretty, there should be enough happy bankers out there with some cash to burn. The grapevine has it that most banks paid their staff in a ratio of 75 % cash and 25 % in equity spread over three years.
Rochelle Romero rochelle@charltonmediamail.com Allan Andrada allan@charltonmediamail.com ADMINISTRATION
Jaclyn Ganila
I am also very pleased that Singapore Business Review Magazine was just voted Local ‘Business Magazine of the Year’ in a survey of marketing directors and ad agencies by Boardroom Research and Marketing Magazine. We are chuffed to bits.
jaclyn@charltonmediamail.com Advertising Editorial
advertising@charltonmediamail.com editorial@charltonmediamail.com
SINGAPORE Charlton Media Group 15 B Stanley Street, Singapore - 068734. +65 62237660
HONG KONG Charlton Media Group 19/F, Yat Chau Building, 262 Des Voeux Road Central Hong Kong. +852 3972 7166
www.charltonmedia.com
Printing Sun Rise Printing & Supplies Pte ltd 10 Admiratly Street, #02-20 North Link Building, Singapore - 757695
We have also been spending a lot of time on the sbr.com.sg website and you will notice a lot more opinion pieces and daily news. The website is now viewed by over 50,000 people monthly, so if you aren’t already a reader do join us. It’s timely, it’s good, and most importantly it’s free. And finally, we love lists here at Singapore Business Review and will be unveiling our own in the next two issues. The first is ‘Asia’s top bankers’, so if you know some heavy hitters, drop their name to me and we will put them on the short list. The other is ”20 in their 20s”, which will identify 20 up and coming business people in, you guessed it, their 20s. Hope to hear from you and support our economy by spending that bonus. All the best
Tim Charlton
tim@charltonmedia.com
Can we help? Editorial Enquiries If you have a story idea or just a press release please Email: editorial@charltonmediamail.com and our news editor will read it. Media Partnerships Please Email: editorial@charltonmediamail.com and put “partnership” on the subject line and it will forward to the right person. Subscriptions Email: subscriptions@charltonmedia.com Singapore Business Review is published by Charlton Media Group. All editorial is copyright and may not be reproduced without consent. Contributions are invited but copies of all work should be kept as Singapore Business Review can accept no responsibility for loss. We will however take the gains. Sold on newstands in Singapore, Malaysia, Hong Kong, London and New York *If you’re reading the small print you may be missing the big picture
Singapore Business Review is available at the airport lounges or onboard the following airlines:
Singapore Business Review is available at the following clubs and hotels: American Club Hollandse Club Laguna National Orchid Country Club Raffles Country Club Raffles Town Club RSYC Seletar Club Sentosa Golf Club Singapore Cricket Club Singapore Island Country Club Swiss Club The Tanglin Club The China Club The Legends Fort Canning Park The Pines Club Tower Club Singapore Fullerton Hotel Grand Plaza Park Royal
Hotel Inter-Continental Le Meridien Orchard New Park Hotel Pan Pacific Raffles Hotel The Hilton The Regent Singapore The Ritz Carlton The Swiss Hotel Stamford Traders Hotel Singapore Darby Park And to 16 serviced residences
SINGAPORE BUSINESS REVIEW | APRIL 2011 3
CONTENTS ‘Mask Series Painted in 1996’ by Zeng Fanzhi
38
Cover story THE DEAL OF Art
COVER STORY
31 Singapore’s oil and gas market
28
aviation report asian aviation conference
14
A glut of condos and massive new HDB supply testing the market
REGULAR
38 The Deal of Art
about to boom
Experience art as the Hong Kong auction season attracts Chinese people and HK Collectors.
32 Numbers
47 Singapore gets Smart
44 Property
AVIATION REPORT 28 Asian corporate jet business takes off A two-day conference about the lifting of regulations in China to aid the industry’s expansion.
OPINION 20 The art of delegation and promotions 22 Prosperity vs. Bankruptcy
Published Bi-monthly on the Second week of the Month by Charlton Media Group Pte Ltd, 15B Stanley Street, Singapore - 068734
48 Life and Style
ANALYSIS 26 5 Reasons why home prices will
50 Last Word
FIRST
drop
36 The Real Cost of Chinese Non-
14 A glut of condos and massive new
performing loans (NPLS)
HDB supply testing the market
FEATURE
18 Immigration and crime
42 In Business and in Health
For the latest business news from Singapore visit the website
REPORT
www.sbr.com.sg
Always invest with the best.
Join the award winning network with Saxo. Voted the best in category by three of the most highly regarded magazines in the financial industry. Most recently the readers of Shares magazine, UK, voted Saxo Bank the “Best Online Trading Platform 2010*”. Saxo provides seamless facilitation of trading in Forex, CFDs, Equities, Futures, Options and other derivatives around the clock worldwide. Seize the opportunities and try our complimentary, no obligation 20-day trial account that comes with USD100,000 in practice credits today.
ps@saxomarkets.com.sg
+65 6303 7788
Singapore
Hong Kong
Tokyo
London
Copenhagen
3 Church Street Level 30 Samsung Hub S049483
saxomarkets.com.sg
Athens
Dubai
Madrid
Milan
Paris
*Awards made to Saxo Bank A/S on behalf of the Saxo Bank Group Saxo Capital Markets is a subsidiary of Saxo Bank A/S, a Danish investment bank specialising in international capital markets. Saxo Capital Markets Pte Ltd (“Saxo Capital Markets”) holds a capital markets services licence by the Monetary Authority of Singapore and a commodity broker licence by The International Enterprise Singapore. Risk warning: You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. You should be aware that dealing in products that are highly leveraged carry significantly greater risk than non-geared investments e.g. share trading. As such, you could gain and lose large amounts of money. You may sustain losses in excess of the monies you initially deposit to maintain any positions in leveraged products. Company registration no: 200601141M.
Prague
Zurich
Agenda PEOPLE | PLACES | EVENTS | OPPORTUNITIES
PLACES
Learn Currency Trading
LONG BEACH SEAFOOD Restaurant
You understand how currency fluctuations affect your business. Foreign exchange (FX) traders trade with simple yet sophisticated online trading software. Try FX trading in a risk-free virtual environment. Register for a free OANDA fxTrade Practice account and get the same powerful fxTrade technology used by professionals. Practice trading currencies under real market conditions without risking a single dollar. Get 100,000 units of virtual money in a demo account that never expires; you can reset the balance any time. Visit www.fxtrade.oanda.com/learn and learn to trade FX today.
LONG BEACH SEAFOOD is the Original creator of Singapore’s world famous and best Black Pepper Crab. Established in 1946 at Bedok Rest House, it has 64 years of experience in seafood delicacies. The restaurants’ extensive range of fresh seafood include Live Alaskan King Crab, Australian Lobster, Air flown live Canadian Geoduck, and Live Tiger Sea Mantis. Long Beach is also the one of the first to offer crab de-shelling service for their customers. For reservations call MAIN 6445 8833 Dempsey 6323 2222 IMM 6566 9933 LB UDMC 6448 3636 KING 6344 7722.
FREE EXPORT ADVICE FROM ATRADIUS Atradius, one of the world’s largest credit insurers, supports businesses by protecting against the risks of not getting paid when trading on credit terms. It offers free monthly country snapshots with the issues that are currently impacting the local business environment and default expectations. Download the free reports: www.atradius.sg 6 SINGAPORE BUSINESS REVIEW | APRIL 2011
Deloitte & Touche Enterprise Risk Services Deloitte is a professional service provider offering audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings worldclass capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s approximately 170,000 professionals are committed to becoming the standard of excellence. As a thought leader in Risk Intelligence, Deloitte’s approach to risk consulting engagements focuses on risk management’s crucial role in creating and protecting business value. Deloitte leads the market with a full range of services from risk strategy and process design down to technology development and implementation.
visit
charltonmedia.com
FOR MORE INFORMATION on EVENTS AND ADVERTISING
SUCCESS HAS A NEW FORMULA Success is mobility. Bring on the Nokia E7. This innovative business smartphone delivers the best user experience with a full keyboard and 4-inch touch display packed into a sleek design. USB support, business grade security solutions, and the ability to edit Microsoft Office files make the E7 a clear winner in business mobility. Success = E7. For full specifications, visit nokia.com.sg/E7
BUSINESS scene Australian Alumni Awards DATE: 18th March 2011 VENUE: Australian High Commission.
1
2
1
2
1
2
1
2
KPMG CFO Institute Launch DATE: 30th March 2011 VENUE: Four Season Hotel
Martell Ultimate Start-up Space Launch DATE: 31st March 2011 VENUE: Martell
Treasures of Vacheron Constantin DATE: 7th April 2011 VENUE: Novus Restaurant & Bar
8 SINGAPORE BUSINESS REVIEW | APRIL 2011
Trade forex anywhere, anytime
The forex market never stops moving. Luckily, in a mobile world OANDA gives you the power to trade wherever you happen to be. Track the spot forex market tick by tick, with free mobile apps that let you access the low spreads and immediate execution of OANDA fxTrade. Available for iPhone, iPad, BlackBerry and Android. anytimeOANDAtrading.com
Trading in the leveraged Foreign Exchange market carries a high level of risk and may not be suitable for all investors. You should never put at risk, any amount that you cannot afford to lose. More details under: http://www.oanda.sg/risk-disclosure.shtml
SINGAPORE BUSINESS REVIEW | APRIL 2011 9
News from sbr.com.sg
Daily news in Singapore What you need to know about Singapore
FOOD & BEVERAGE
most read
Radioactive contaminants found in imports from Shizuoka Prefecture
TRANSPORT & LOGISTICS
SMRT CFO Lim Cheng Cheng resigns The CFO and Executive Vice President’s resignation is the fourth senior level departure since last November. DBS reported, Ms Lim has been with SMRT since July 2007, and was given additional roles on top of her current in the recent organisational changes of key management effective 1 Mar 2011 HR & EDUCATION
Boss, the plane! : Funtasy Island ready to take on Sentosa The Funtasy Island Resort is 16 km from the Vivocity Shopping Center, Singapore and only 20 min. away by ferry from the Harbourfront, Singapore. It’s expected to be completed by 2013 with hotels, eco-tourism activities, among others. ECONOMY
Economic impact of Japan quake remain surprisingly low: DBS This is based on the order of tens of billions of US dollars rather than hundreds of billions. According to DBS, by comparison, the US congress set aside $750bn of TARP funds to prevent financial sector turmoil in early 2009. Much of the damage will come in the form of lost property with insurance companies and re-insurance
Lim Cheng Cheng companies shouldering most of the burden. RESIDENTIAL PROPERTY
Three condo launches will test residential market EXCLUSIVE: Developers are rushing to put their blocks on sale in a “goldilocks” window, but will it work? The market seems more open to midpriced property units which is prompting new launches following the Japanese Tsunami. Goldhill Land Pte Ltd. launched its 13-storey freehold development “Harbour Suites” which is located at Kampong Bahru Road.
HR & EDUCATION
2011 Salary Survey reveals who earns what: Robert Walters The Singapore job market remained active and Robert Walters gives us a glimpse of the numbers. With an economic growth rate of some 15%, many companies focused strongly on developing their operations in SG saw high levels of recruitment activity. Following four consecutive quarters of strong hiring, however, Singapore did experience a slight slowdown in activity levels during the last quarter of 2010.
Japan quake damaged hundreds of properties
10 SINGAPORE BUSINESS REVIEW | APRIL 2011
Tests done on shipments imported on 30 Mar 2011 showed contaminants were found in a sample of Komatsuna (Japanse Mustard Spinach). The Singapore Government is following the situation at the Fukushima Nuclear Plant very closely. It is continuing its measures to safeguard Singapore from radioactive contamination. Following the latest detection, the Agri-Food & Veterinary Authority of Singapore (AVA) will extend its suspension of import of fruits and vegetables from Shizuoka with immediate effect.
RESIDENTIAL PROPERTY
$34mm Over $34mn worth of properties sold in two days Despite cooling measures announced by the Singapore government, property buying and investment sentiments remained optimistic. According to iProperty.com, property developers and organizers witnessed good attendance of over 10,000 visitors and sales during the iProperty.com Expo.
ECONOMY
BOJ to inject 7 trillion yen aid shaken Japanese market Governor Masaaki Shirakawa is planning to increase “massive” liquidity but is likely to keep his stance on the BOJ maintaining its longer-term credit programs at 35 trillion yen. AVIATION
Tiger Airways plans training programme for 100 new pilots Qualified major aviation training providers were invited by Tiger Airways to submit formal proposals for the provision of a Cadet Pilot training programme. Besides providing comprehensive training to individuals from various countries, the training programme will be tailored to the specific operating requirements of Tiger Airways.
Site by the Housing and Development Board on 28 February 2011. COMMERCIAL PROPERTY
Orange Tee sold half of “Everitt Edge” since launch
MARKETS & INVESTING
Repercussions of Japan quake seen to be minimal: Macquarie Compared to the Kobe quake on 17 January, 1995, Macquarie believes the impact should be lower. Miyagi, home to Sendai and the most affected by the quake, accounts for 1.7% of the population and the same proportion of GDP. Tohoku as a whole is about 8.0% of GDP. Initial reports suggest that Tokyo has not been badly damaged (Kanto accounts for nearly 40% of GDP).
and Rolex (6). According to Clear Ideas, it is well known that a great brand can add enormous value to your business. But what is it that makes some brands irresistible, and others forgotten? What is it that makes consumers ‘Desire’ brands? Human desire is the fundamental motivation of all human action, and brands that can evoke this powerful emotion in consumers are pulling ahead of their competitors.
COMMERCIAL PROPERTY
Private residential units sales volume fell by 9% monthon-month in February 2011 The URA monthly sales volume fell to 1,101 units last month. According to Jones Lang LaSalle, this is despite the increase in developers launches, with 1,710 units launched this month, up 37% m-o-m. From the headline numbers, we see there has been a marginal correction in the sales volume
MEDIA & MARKETING
Singapore Airlines beats out ShangriLa as Singapore’s most desired brand The top 100 brands in Asia were ranked and among the top ten were Google (3) and Apple (4), Mercedes (5)
Singapore Airlines: Asia’s leading airline
in February following the punitive government policies in January 2011.
EXCLUSIVE: 18 out of 36 residential units have been sold in under 2 weeks. According to the property developer’s Senior Group Associate Director Roy Chang, the Orange Tee received “overwhelming” response driven primarily by a low interest rate environment and increase in household incomes. According to the website, it is located at District 15, Everitt Road. An exclusive Freehold boutique condo with 36 Residential + 4 Commercial Shops. hr & education
CapitaLand takes 75% interest in Bishan street site
13% average bonus increase last year failed to satisfy Singapore finance sector professionals
Its partner, Mitsubishi Estate Asia, will take 25% interest to develop condominium site at Bishan Street. According to CapitaLand, they will be the lead development manager for the Site and is responsible for the full spectrum of sales and marketing, product design and development, and project management. BRPL owns 100% of Bishan Residential Investments Pte. Ltd., which in turn owns 100% of Bishan Residential Development Pte. Ltd. (“BRDPL”). In February 2011, BRDPL had tendered for the Site at a tender price of S$550.1 million (the “Tender Price”) and had been awarded the
While 53% of those surveyed reported that their bonus was higher than in 2009, only 45% of respondents indicated they were satisfied with their bonus. According to the eFinancialCareers Global Bonus Survey, despite higher bonuses this year, attrition rates are expected to increase as 62% of Singapore-based professionals surveyed expect to change positions in 2011: 49% of them looking to change firms and another 13% looking for new positions within their existing firms. The 19% of respondents who do not plan to change jobs earned on average higher bonuses than those who plan to change positions.
COMMERCIAL PROPERTY
FIRST
The politics of property in Hong Kong
A glut of condos and massive new HDB supply testing the market Developers are rushing to get new condos launched before interest rate rises kick in and investor sentiment drops, but already Singapore is facing its own unsold ‘condo mountain’
E
urope had its famous ‘butter mountains’ of unsold butter in the 80’s and now Singapore may be facing a ‘condo mountains’ of unsold properties. This is not good news for the residential market where launched but unsold residential units are at record levels. Buyer fatigue seems to be setting in, especially in the high end primary and secondary market where volumes are declining. So what does this mean for prices? According to investment bank Morgan Stanley, residential prices should decline by 7 % over the next two years as government’s dual-pronged strategy of capping price growth through policy while releasing record land supply in the 14 SINGAPORE BUSINESS REVIEW | APRIL 2011
private market (and sharply raising supply of public homes) will take its toll. One sign that the market has slowed is the fact that launched but unsold units in February was at a record 4,700 units, surpassing the previous peak of 4,300 in January, 2009. And there is even more supply to come in the public housing market with the government due to allocate up to 22,000 new HDB units through the government land sale program, up from 18,000 units launched in 2010 and 9,000 units launched in 2009. China Hong Pang, an analyst with brokerage CLSA also warns that there is risk of excessive supply, with 10,000 units this year and potentially over 14,000 units each in 2012 and
Singapore Condo in prime districts are still selling to local investors
2013, versus an average of 8,800 pa over the past five years. “We expect the mass-market to lead a 5% price correction, fuelled by 20,000 new units, while mid and high-end segments stay flat.” Morgan Stanley notes that the percentage of new units sold in the first month for development is declining, as is the volume in the resale market. “Volumes, a typical pre-cursor of prices, have already started softening, and we see risk of volumes weakening – leading to an increasing pressure on developers to reduce prices to move units.” So far there is no sign of developers dropping prices. In the mass and high end spectrum prices remain firm and given developers have strong balance sheets they have
FIRST little need in the short term to discount. Interest rates are at record lows in Singapore so developers are not incurring much interest on their debt. But if that changes, and there are signs it will, then developers will rethink the cost of holding unsold properties and will be moved to discount. Moreover, new laws introduced in January this year makes holding undeveloped land more expensive for foreign developers as they need to pay an extension fee from between 8 % for the first year and up to 24 % of the third year if they exceed the completion period. This augurs for developers wanting to presell new developments quickly to reduce holding risk. But it is purchasers who will have the final say on whether they continue buying, and with new apartment sales as a proportion of income above the long term average for the past two years it does call into question just how much more cash is available to sustain this high level of new property purchases. Last year saw a record 17,645 new private homes sold, but that will be a hard act to continue in the light of a slowdown in population growth. Last year, Singapore’s population only grew 1.8%, versus 3.1% in 2009, due mainly to a to a significant slowdown in the growth of permanent residents. “The government has set more stringent requirements in granting PR status since the end of 2009, which resulted in only 29,265 allowances in 2010. This was a sharp fall from 59,460 in 2009. Overall, the population only grew by 89,100 people in 2010 as compared to 148,200 in 2009 and 250,800 in 2008. It should be noted that the population grew approximately 100,000 pa on average over both the past 10 and 20 year periods. The implication of lower new home demand is severe if population growth also remains low,” noted CLSA. Another factor to consider is that the percentage of Singaporeans in public housing is now increasing as new supply becomes available. Between 2000 and 2007, notes CLSA, the percentage of population staying in public HDB flats fell
dramatically, from 86% to 81%, indicating a shift to private housing. Since then, the trend has reversed and stagnated at 82% between 2008 and 2010. Since 2009, the government has ramped up HDB supply with over 30,000 flats under construction each year. “To curb the supply crunch, the government launched 16,000 HDB flats for sale last year, and will launch another 22,000 units this year. The result is fewer people upgrading to private housing, which means the loss of another market catalyst.” So what is the underlying demand for new apartments in Singapore ? One analysis done by CLSA involves a scenario whereby 100,000 people join the population this year, coupled with a household size of 3.5, a 0.1ppt shift in population from HDB housing, 20% of population residing in private housing and a potential displacement of 600
Young Singaporeans have aspirations to have their own property, even they live with their parents.
families from en bloc sales. Based on that, the brokerage forecasts new demand to be about 7,200 units this year, with a range from 3,200 and 11,300 units per annum. And while that may be the real underlying demand, as every property buyer knows, the big players in Singapore’s market right now are the Chinese, Malaysian and Indonesian buyers, and for them whether to buy or not depends on a whole range of factors no one really has a measure on. However a strong Singapore dollar is making it less affordable for these buyers. Malaysians’ market share among foreign buyers reduced from 40% to 23% over the past ten years, whilst Indonesians saw their shares fall from 30% to 18% in the same period. Meanwhile mainland Chinese buyers have risen from under 10 % before 2007 to account for a quarter of the market now, and even Indian buyers have risen
Upcoming Supply from 2013 Is Worrisome
Source: Company data, Morgan Stanley Research
But Sales Value as a Proportion of Income Has Exceeded Average for Two Years
Source: URA, Morgan Stanley Research
SINGAPORE BUSINESS REVIEW | APRIL 2011 15
FIRST from just 5 % to 13% over the last ten years. So what condos are still selling well and which are not? Vince Chen, Chief Investment Officer at Singapore Condo, says that the ‘shoe box’ units in prime districts are still selling well to local investors. “It is an ego booster for those who yearned to own one in the prime district to be labelled as ‘owner of prime district condo’,” said Chen, adding that these units “do have an effect in the heart of local investors.” Since the financial crisis, huge percentage of foreign investors have diminished from the prime property scene, notes Chen, who warns that if economies in the west fail to recover, investors may be in for a
selling properties now are landed properties with tenure freehold and property whose asking price is less than $800,000. Single investors “Many young Singaporeans and permanent residents are single, all of them have the aspiration to own their own property even though some of them are staying with their parents and rental yield over capital outlay easily is more than 10% return on their capital investment,“ said Chang. Eric Tng, Senior District Director at ECG Property said that “Mickey Mouse” apartments are hot property at the moment due to their affordability but cautioned of the looming oversupply of these units.
“Most of these units are bought as investment and for rental returns.”
“I am pessimistic as most expats from Western countries will not want to live in such a small apartment while those from Asian countries will have no problem staying in a HDB flat for the same rental as a shoebox apartment.” tough time. “My prediction on their rental return to be within 1%-2% of their investment, and with the possibilities in the near future of the rise in interest rates, I smell trouble.” Roy Chang, Senior Group Associate Director at Orange Tree concurred that the hottest
“Most of these units are bought as investment and for rental returns. I am pessimistic as most expats from Western countries will not want to live in such a small apartment while those from Asian countries will have no problem staying in a HDB flat for the same rental as a shoebox
apartment,” notes Tng. So what’s not selling? What is not selling right now is the large apartments of over 2500 sq ft that are usually rented out to top end expats. According to Singapore Condo’s Chen, “Huge units above 2500 sq ft, other than collectors items like Sentosa Cove, and those condominiums units with hefty price tags do have a little difficulty getting buyers for now. Take up rates for the rental is slow now affected badly by the drastical drop in the numbers of European and American expats the heavy weights. The government has successfully eliminated the speculators with the help of the negative economic impact in the west, it does make it undesirable to own these category of property at this point of time.” Orange Tree’s Chang said that condos with an asking price more than $3m are tough to sell. “Most people who buy such property are their 2nd property or buy first then sell later and they do not use cpf, thus they have to have $1.28m cash or more then qualify to buy.” ECG’s Tng said he felt cluster housings were challenging to re-sell. “The high monthly maintenance fees could be one factor and also you do not own the land title in a cluster housing. In land scarce Singapore, owning the land title is a dream come true to many house owners.”
Launched But Unsold Units At Peak
New home sales by developers (1995-2010)
Source: URA, Morgan Stanley Research
Source: URA, CLSA Asia-Pacific Markets
16 SINGAPORE BUSINESS REVIEW | APRIL 2011
coRporate profile
Security in the Cloud
Bjorn Engelhardt, Vice President – Asia Pacific, Symantec.cloud hardt. And this is the real take home message - one of Symantec’s undeniable strength’s in this space is its deep understanding and global coverage of security threats. “We’ve always understood the importance of being a market educator.” In line with the name change, Symantec has adopted its product names to reflect the new branding - for example, Symantec MessageLabs email to AntiSpam. cloud,” Engelhardt adds.
Diagram: Symantec’s cloud solution
M
ission Accomplished Market leader Symantec Hosting Systems has completed its much anticipated rebrand to Symantec.cloud. Cynics may ask what all the fuss is about, but unlike so many rebranding campaigns that are designed to purely attract media space, there is a deeper message that Symantec hopes to convey, and “Symantec. cloud” really says it all. “The change in our identity is the first step we’re taking to make security through the cloud more accessible and understandable,” says Bjorn Engelhardt, VP for APAC and Japan at the newly rebranded entity. Reinforcing that the rebrand campaign is more than simply name change. Engelhardt explains, “this is about a new level of commitment to educating local business about security through the cloud.” Symantec’s mission according to Engelhardt is to create a better understanding of exactly what is being done and the security heights and online security benefits that can be realised by Symantec’s 18 million customers. “As the leading Infrastructure SaaS provider, we are leveraging our expertise to enable cloud infrastructures and provide hybrid solutions to enterprises as they transition to the cloud,” he
PWS LINEAGE is a password-stealing keylogger trojan. adds. Why Symantec.cloud? It is hoped that Symantec.cloud will add weight to the fact that Symantec is making the move to the cloud. The average customer’s understanding of the cloud is well… cloudy… but the new brand highlights Symantec’s position as a leader in cloud-based services and emphasises the importance of cloud-based services within Symantec’s portfolio. “This new brand will also enable all our stakeholders to more clearly see the strength of Symantec’s entire portfolio,” says Engel-
Security through the cloud Growth in this region is phenomenal, and continues to be, especially in the SMB sector. “For SMBs, our cloud security delivers all the benefits of an enterprise-level security service, with fast, scalable deployment, and a subscription, OpEx-based cost structure,” says Engelhardt. Cloud requires no additional on-premise management – with even large organisations have also moved to a cloud-based solution as they realise the benefits. The trend of companies moving to hybrid models – where they have a combination of cloud and on-premise security services, is perfect for Symantec’s product promise as a broad solution set is on offer that can deliver this type of environment seamlessly. “A lot of our customers will start hearing more about the new brand identity during the coming weeks. They trust the Symantec name and, already use our hosted services and understand our commitment to the cloud,” a justifiably confident Engelhardt concludes.
CONTACT
www.messagelabs.com.sg
FIRST Pan-Asian Hunting Stocks 95% of total prisoners were earning below the Malaysian average per capita income. Singapore and The situation in Indonesia is In 2009, total population of policeman in China was about 1.8 million whilst China’s total In China, 722 people Hong Kong not that different. Since population was over 1.3 billion. This leads to the calculation of approximately 722 2003, people the are covered by have a similar covered by single policeman which is a high number,number please see & 52. single policeman ofFig.47 crimes has increased by environment in 2009. 2005, At the same time, in 2009, the number of policemen 75% in Shanghai andEspecially Beijing wereafter around In Shanghai and 45,000 and 50,000 each, and the cities’ populations the wereincreasing both around rate 19 million. Thissharper means Beijing each became that each policeman covered 422 and 380 people in these cities. policeman covered possibly due to the natural disasters 422 and 380 people However, we need to note that one of the main problems crime in China its tragic suchregarding as earthquakes and isthe respectively inequality throughout the country. China may have paid attention to public security in big tsunami disaster. cities such as Shanghai and Beijing, but this would not be the case for other rural areas. Rising employment following A security guard is a recognized job in China. economic shocks also tends to spike In 2009, there were about 2,200 security companies,crime with about 1.03 million security rates. The latter was guards, particuapproved and managed by the public security bureau. Besides, there were about 3 million larly prominent in 1997 (the Asian security guards from local companies, communities, department stores, etc, also supervised crisis) and 2009 (the global slump by the government authority. post the September 2008 Lehman The security service industry still appears to have high potential for grow in China. bankruptcy). When Japan reached Crime trends in HK its peak in 2003, crime rates were Hong Kong, Singapore, and Taiwan are experiencing declining crime rates. also the highest for the past 20 years. It is also applicable to the case of Fig 62 Overall Crime, Theft, and Burglary in HK Fig 63 Violent and non-violent crime in HK Indonesia in 2005 and Taiwan in (No. of cases, 000s) (No. of cases, 000s) 2002. Especially in Korea, 1997 was 100 100 an unforgettable year due to the IMF 90 90 crisis. As GDP dropped sharply, the 80 80 unemployment rate went up, and the 70 70 60 60 crime rate rapidly increased. Then, in 50 50 1999 as the economy recovered, the 40 40 Singapore and Hong Kong both have same period last year. As you may crime rate decreased sharply. So the 30 30 20 well deserved reputations of being 20 expect from the trend both violent conclusion to be drawn is that keep10 10 among the safest cities in Asia. But is property and housebreaking cases ing an economy growing and getting 0 0 this a result of good policing or good 2003 maintained its downturn trend. 2004 2006 2007 2008 “If2009 2000 2001 2002 2004 2005 2007 2008 2009 are in 2003 the right sort2006 of immigrants Burglary Others demographics? we look at it moreTheft specifically, among someviolent of thenon-violent most effective tools to Macquarie Research Hunting Stocks According to research by Macportion of theft was the big-2011 fight Source: Hongall, Kongthe Police Force, Macquarie Research, March Source: Hong Kong Police Force,crime. Macquarie Research,Pan-Asian March 2011 quarie, demographics seems to be gest, and crime against persons came a larger factor in the low and falling next. Burglary comprised the smallFig 64 Policeman coverage in HK Fig 65 situation Crime situation is getting even betterin in HK HK Crime is getting even better crime rates; and in particular in est portion, and it has been declining Hong Kong is considered to be one of the safest cities in the world. In 2006, according to the (%)crime (Cases) (No.of people survey done by UNICVS, International Crime Victim Surveys organized by the UN, the Singapore, where it notes the marked even more. Here, we considered Policeman Coverage per policeman) 48 rate of 1350 Hong Kong was obviously lower than that of both western and other Asian countries. decline in crime, when (measured as200 violent property and house breaking The crime 1300situation in Hong Kong has become even better since then. 46 a percentage of the population) can 195 as burglary.” Things are also improvLooking1250 at Fig. 62-65: 44 be directly attributed to the country’190 s ing in Hong Kong. Since 2006, cases 1200 Cases of burglary and theft as well as that of overall crime have been gradually declining. 42 selective immigration policy. The 185 of burglary and theft as well as that 1150 Portion of violent crime is getting slightly smaller. idea is that highly educated migrants180 of overall crime have been gradu40 1100 Number of people covered by one policeman increased and reached a stable status. Still, 175 are less likely to commit crime. ally declining and the number of 38 1050 as of 2009, the number is 195 people per policeman which is very small. Singapore’s crime rate once reached 170 a people covered by one policeman has 1000 Detection rate is improving continuously while overall crime per 100,000 populations 36 is 165 peak around 2005, but it has declined increased and reached a stable status. 2003 2004 2006 2007 2008 2009 declining. 160 overall crime per 100,000 population detection rate (%) rapidly thereafter. “Even when its Still,2004 as of 2009, the number is 195 2009 Crime trends in Singapore 2003 2006 2007 2008 crime rate was high, the total crime people per policeman which is very Singapore is Source: is Hong Kong Policewhich Force, Macquarie Research, March 2011 Singapore another country has a reputation for its safety. This is supported by the Kong Police Force, Macquarie Research, March 2011 Source: Hong Kong Police Force, Macquarie Research, March 2011 ratio per 100,000 in population Source: was Hongsmall. another country official statistics. has a lower than that of Hong Kong. Unfortunately, many partswhich of Asia reputation for its crime 100,000 ininpopulation in SG Singapore and Hong Kong have a cannot report the same happy turnFigTotal 66 Total crime perper 100,000 in population Singapore safety. This is similar environment, but Singapore’s around in crime figures, supported and again by the 28 officialseems statistics to selective immigration policy has3 March 2011rising youth unemployment successfully brought highly educated be the cause. Malaysia and Indonepeople into the country. Especially sia in particular are experiencing from 2005 to 2010, there was a high a mini crime boom. According to percentage of net migration which the Journal of the Kuala Lumpur explains why Singapore’s crime rate Royal Malaysia Police College, No. is now lower than Hong Kong,” notes 4 (2005), in the article The Rise of Macquarie. According to Singapore Crime in Malaysia, they provide an Police Force, in the first half of 2010, interesting observation. From the the overall crime fell by 4.5% to statistics obtained from the Prisons Source: Police Intelligence Department ,Macquarie Research, March 2011 Source: Police Intelligence Department ,Macquarie Research, March 2011 16,073 cases from 16,837 cases in the Department, they found out that Macquarie Research
Immigration and crime
(No. of cases) 900 850 800 750 700 650
600 1999
2004
2005
2006
2007
2008
2009
Total crime per 100,000 population
18 SINGAPORE BUSINESS REVIEW | APRIL 2011
Singapore’s crime rate once reached a peak around 2005, but it has declined rapidly thereafter. Even when its crime rate was high, the total crime ratio per 100,000 in population was lower than that of Hong Kong.
co-published
The Saxo Difference
Saxo Capital Markets continues to develop trading platforms to suit different trading lifestyles
E
xcitement has just entered the trading and investment arena. Technology has never really been static. Its shifting features from PCs to laptops to the ever increasing use of tablets and smartphones, the convenience of trading 24/7 is now at the touch of the traders’ fingertips. This phenomenon is evidenced by the trading platform developed by Saxo Capital Markets, a subsidiary of Saxo Bank Group, the international investment bank that deals with online trading and investment in multiple global financial markets. “While most platforms only allow traders to buy and sell stocks without any risk minimisation, the Saxo Equity Platform allows clients to view the share price performance, operational performance and valuation multiples including three years forecasts of aggregated analysts estimates of over 11,000 stocks. This depth of fundamental data was previously unavailable to private investors and will empower our clients to explore stock price sensitivities to commodities, currencies and interest rates,” according to Saxo. The Saxo Equity Platform will be available on SaxoTrader and SaxoWebTrader from Q2 this year. The Saxo Equity Platform addresses the rise in “execution only services” following the escalating need for more complex trading techniques, which will allow transparent trading of more than 13,000 stocks listed on 23 major exchanges worldwide. Too good to be true? The thing is, this is the only latest of many other innovative features that Saxo developed for
the convenience of its account holders since 1992. Currently, there are three specialised trading platforms developed by Saxo for its clients. The SaxoWebTrader, a browser-based platform which provides online trading access to Forex, FX Forwards, Spot Gold & Silver, CFDs, Index Tracking CFDs, Stocks, ETFs and ETCs; the downloadable SaxoTrader, made for investors who wish to trade multiple assets on one integrated platform; and the SaxoMobileTrader, for the smartphone users among its client base. SaxoMobileTrader mixes the convenience of mobile trading and the security of the SaxoTrader platform for optimal trading experience. It “was developed to allow clients to use a single account login to switch between interfaces to suit their lifestyle,” explains Saxo. This is best applied to FX trading – a global market that trades around the clock. Saxo Bank recently acquired the Danish-owned software and IT services provider, Initto. This provides a strong push to Saxo’s commitment to “providing an intelligent platform” for end-users. “The acquisition drives the contin-ued development of our trading systems by adding approximately 200 IT professionals to our India and Ukraine IT development centers, in addition to our IT
“The heart of its relationship with its clients is key to allow their clients understand the products they trade and the risks involved.”
center in Copenhagen,” according to Saxo. Thus, “efficiency through IT investments, work process rationalizations, and outsourcing,” are easily achieved. End-users need an intelligent platform to match their trading styles, and Saxo puts that on top priority. “Tight pricing has become a basic requirement, but this does not mean that people are necessarily making money on their investments. We believe the end-users, the individual investors underlying many of our client relationships, require the right analytical tools in making their trading decisions,” Saxo declares. Security issues permeate web trading, and it does not escape the global firm. Current security measures employed by Saxo to protect client information include “the usual security systems such as password-protected log-in and encrypted payments in place. (We) also have a team of in-house IT professionals working round-the-clock to support and secure our information and operating systems,” says Saxo. This erases disconcerting fears arising in global traders’ minds for possible security breaches in their information. The overwhelming solutions Saxo provides are only exceeded by its determined desire to provide intelligent trading modules for better decision-making and their invariable focus on the improvement of the “depth and quality” of their service. This is “the difference between Saxo and our competitors in the online trading space,” Saxo posits. The heart of its relationship with its clients is key to allow their clients understand the products they trade and the risks involved. “As part of our efforts to educate customers, Saxo offers educational tools such as TradeMentor on our website and have regular seminars for our clients,” according to Saxo. “Singapore’s superior technology infrastructure and the wealth of financial information available online has resulted in an exponential growth in online trading, and we expect a continuation of the geometric growth witnessed over the last four years.” With the expansion shown by Saxo’s vigorous acquisitions and the remarkable solutions and tools constantly developing under its roof, the paths are certainly clearing away for this innovative financial firm to overtake its imitators and competitors.
CONTACT SAXO CAPITAL MARKETS PTE. LTD 3 Church Street, #30-00 Samsung Hub, Singapore 049483 T: +65 6303 7800 Website: www.saxomarkets.com.sg SINGAPORE BUSINESS REVIEW | APRIL 2011 19
opinion
richard branson The art of delegation and promotions
V
“The most successful entrepreneurs are those who find people who are at least as good as, or better than, they are at running their businesses.”
irgin’s ability to grow and diversify successfully was set in the company’s early days, with my learning how to delegate and let go. This will probably seem counter intuitive to anyone who is in the midst of launching a business. Right now, you are almost certainly motivating your staff by demonstrating your own drive and enthusiasm. Most days, the founder will be the first to arrive at the office and the last to leave. This is often the only way to survive those first tough years, when most businesses have to scrape by with the minimum number of employees. The trick The trick is to start promoting from within on day one. I’m not just referring to moving people to new positions, but giving all employees enough flexibility to take on new responsibilities within their current jobs, effectively giving themselves mini-promotions. Through their daily work, your employees are developing a deep knowledge of the company and industry. So when employees tell you about their good ideas for the business, don’t limit your response to asking questions, taking notes and following up: If you can, ask those people to lead their projects and take responsibility for them, as they will have the passion and drive to see their ideas through. From those experiences, they will then have built the confidence to take on more and you can take a further step back. A few years later, as the number of our employees
20 SINGAPORE BUSINESS REVIEW | APRIL 2011
neared 100 at our record business, I began to fear we were becoming slow and cumbersome. So I split the company in half, which created a new company. We picked talented people from within Virgin Records to run it. The next time Virgin Records’ number of employees reached 100, I repeated this trick, and I have carried on doing it. This policy kept our businesses hungry and adaptable and, crucially, we uncovered great management talent – people who otherwise might not have gotten noticed, and would likely have pursued promotions at other companies. This kept our staff motivated. At Virgin, we often promote employees who have energy and determination, even if they don’t yet have a lot of experience – people who at other companies might be considered unproven and not ready for a promotion. We have found that these employees seldom let us down. They are so buoyed by their promotion and passionate about their work that they make a success of the new job. All we have to do is ensure they have the support they need to carry out their goals. Over the past 40 years, we have selected many of our most successful CEOs and senior managers from within our organization. Stephen Murphy, who became CEO of the Virgin Group five years ago, was hired 17 years ago as Virgin’s finance director. Others who have risen to the top jobs include Steve Ridgway, CEO of Virgin Atlantic; Jayne-Anne Gadhia, CEO of Virgin Money; and Matthew Bucknall, CEO of
Virgin Active. Looking back, my decision to work out of my houseboat in West London rather than at Virgin Records’ offices was a very important move. This happened about the same time I decided to split Virgin Records into two. I had been involved with the day-to-day decisions at Student magazine and our record stores for years, but as we moved into the recording business, I decided to take a step back to give my managers space to make decisions. That’s when I learned that the most successful entrepreneurs are those who find people who are at least as good as, or better than, they are at running their businesses. Stepping back frees the founder to focus on the bigger picture – to dive in when there are problems or to help close a deal. This is how I manage our diversified group: I am not involved in the daily business of any Virgin company, unless I need to be. When your team is in place and the launch phase is over, take the time to conduct a test to see how well the company performs without your help. This can be a very revealing exercise: It will show you where the problems are and, most important, how well you have done at learning to delegate. So make sure you hire great people, then find ways to keep them on your team for long term. Encourage them to pursue their ideas and give them the tools that they need to succeed. If you get this right, you will also have more time to look after body, mind, family, friends and children. Basically, you’ll have time to have a blast.
coRporate profile
Insightful and Integrated Deloitte is building risk solutions that incorporate dashboard systems and is supporting the standardisation of terms, metrics, reporting, and operational charters across risk management silos. It sees the need to educate the board of directors as critical to evolving risk solutions and is using tools such as the Risk Map to facilitate that process.
R
isk Intelligence is an aspirational state defined by this insight - Enterprises that effectively manage risk to both future growth and existing assets will, in the long run, outperform those that do not. As a thought leader in Risk Intelligence, Deloitte’s approach to risk consulting engagements focuses on risk management’s crucial role in creating and protecting business value. Deloitte leads the market with a full range of services from risk strategy and process design down to technology development and implementation. Enterprise wide methodology Deloitte is building risk solutions that incorporate dashboard systems and is supporting the standardisation of terms, metrics, reporting, and operational charters across risk management silos. It sees the need to educate the board of directors as critical to evolving risk solutions and is using tools such as the Risk Map to facilitate that process. Deloitte’s Risk Intelligence Program Methodology is a holistic and unifying approach for building an effective and efficient risk management program. It is also scalable to transform an organisation’s risk management capabilities.
Following the nine fundamental principles of risk intelligence, the risk consulting professionals in Deloitte Risk Consulting help organisations develop and integrate effective risk management practices across all organisational levels: • Risk governance, including strategic decisionmaking and risk oversight, led by the board of directors • Risk infrastructure and management, including designing, implementing, and maintaining an effective risk program, led by executive management • Risk ownership, including identifying, measuring, monitoring, and reporting on specific risks, led by the business units and functions Activities across all these levels are integrated into a systematic, enterprise-wide program. This embeds a strategic view of risk into all aspects of business management. It gives leaders a clear view into the challenges and opportunities that risk can create. Deloitte in action Deloitte provided business continuity management services to one of Thailand’s largest commercial banks. With expertise from their Southeast Asia Business Continuity
Centre of Excellence and local knowledge of Thailand’s banking regulations, Deloitte performed an in-depth analysis of potential disruptions to the bank’s operations. The team of Deloitte professionals worked seamlessly across borders in Southeast Asia to deliver invaluable solutions to this client. By working as one team, Deloitte enhanced its business continuity service offering to the marketplace. Deloitte risk consulting services • Business continuity and crisis management services •aBusiness process improvement and internal audit services • Data analytics • Enterprise risk management services • Information risk management services • IT governance services • Risk Management technology implementation services • Security, privacy and resilience services
CONTACT Deloitte & Touche Enterprise Risk Services Mr. Janson Yap - Regional Leader Tel: +65 6224 8288 Email: jansonyap@deloitte.com
opinion
Tim hamlett Prosperity vs. Bankruptcy
T
his may not be the best possible time to discuss the reasons for American prosperity, which is looking a bit wilted at the moment. But the Land of the Free is still being held up as a shining example of vibrant and prosperous capitalism, so it is worth considering carefully any conclusions drawn about the causes of this happy state of affairs. The one which caught my eye the other day was bankruptcy. Apparently, or so we were told, Americans feel no shame at going bankrupt at all. It is simply regarded as part of the hidden process of trial and error which produces winners. The bankrupt person is neither pitied nor shunned; he is admired. So people are not afraid to fail, so they try more daring things, so innovations are attempted which defy common sense and conventional wisdom, so a few of them succeed wildly, QED. At least that is how the argument goes. One does also hear complaints. Apparently ailing companies are allowed to trip into bankruptcy court and transform into a sort of semi-alive condition in which they are protected (an interesting choice of word) from their creditors and can try to reform themselves in the hope of becoming going concerns again. In the meantime they continue in business, competing with companies which are still paying their debts. Which in a way seems rather unfair. Ethical Aspects Indeed discussion of these matters usually seems to overlook the ethical aspects of the matter. There is a scene in the book of “Casino Royale” which I think did not get into any of the James Bond movies in which a lady at a casino card table makes a very expensive bet, loses it and does not have the money to cover her owings. There is an embarrassing scene, and muttering of “le coup de deshonneur” before Bond rescues the lady with some of his copious winnings. The French phrase loses a lot in literal translation - the blow of dishonour - but you get the gist. Honourable gentlemen - and ladies - do not wager money they have not got, do not incur debts they cannot repay and do not make promises they cannot keep. It is all very well to say there should be no stigma in bankruptcy. Of course nowadays we are forgiving about these things and we would not shun a friend just because his business had failed - or so I hope. On the other hand there should be some stigma. The bankrupt has made off with quantities of other people’s money and not repaid it. We may hail the reappearance of Chrysler and General Motors as debt-free if somewhat slimmer car-making operations. But this was done by sticking two fingers up at people who had supplied money and goods in good faith, expecting to be paid or repaid as the case may be, and reneging on agreements freely negotiated by the companies with their employees. Is this the sort of thing we would like to see more of? I have at various times been a spectator for a good deal of the process. In my youth I sometimes accompanied my father, who was in business as a wholesaler at the time, on
22 SINGAPORE BUSINESS REVIEW | APRIL 2011
tim hamlett Former Editor of Sunday Standard and Associate Professor of Journalism
dubiously legal attempts to retrieve goods supplied to companies or individuals who were obviously insolvent or on the brink. These trips were sometimes followed by creditors’ meetings, which fell into two categories. In some a clearly embarrassed and penitent debtor did his best to spread as much consolation as possible. Others featured shameless and cheerful crooks whose obvious familiarity with the procedure was presumably the reward for going through it several times. Later as a court reporter I covered bankruptcy proceedings, which though gloomy were a relief because the alternative was usually an inquest. At the bankruptcy hearing the proprietor of the extinct business (butchery and hairdressing seemed particularly popular with the financially challenged) would be examined in painful detail about what had gone wrong. I noticed he had always managed to rescue a suit and a tie from the wreckage. In Hong Kong this is all very subterranean. There is a flourishing bankruptcy system - more like the British one than the American one, for obvious reasons - but it seems a lot of people do not use it and its doings are not reported. If Hong Kong people need capital to finance some new venture they usually rely on relatives, which means failure to repay brings problems of a kind which a court will not be able to solve, or on loan sharks, who have their own solutions for situations of this kind. Large companies never seem to fail, presumably because however badly the business is run they can always cash in their chips and sell the factory, shop or whatever. They can then become real estate companies cosseted by a congenial government. Well we must not begrudge others their good fortune. But it seems to me that capitalism has distinct ethical problems if the lavish rewards for success are not balanced by a decent level of chastisement for failure. Whenever you complain about the big gap between the rich and the poor in Hong Kong the spokesmen for the rich defend their position as a reward for, among other things, risk-taking. This implies that there is some serious downside to their activities. But apart from those actually caught in criminal activities it seems the downside for big business in Hong Kong is very limited. Most markets are rigged, the government is friendly, and even the insolvent never seem to become very poor. One does not find former millionaires sleeping under fly overs. Indeed even the ones who are caught in criminal activities seem to do quite well afterwards. Complex company structures allow proprietors to keep their winnings and pass the losses elsewhere. A man who has made his extended family rich will never be short of a sofa to sleep on. There have been signs lately that even the very prosperous are beginning to recognise that we cannot go on for ever with the arrangement immortalized in an old hymn: “The rich man in his castle; the poor man at his gate ...” It is not only people and companies which can become bankrupt. Land of the debt free?
coMPANY profile
A Race Beyond Wagering
With lush furnishings, V serves as the perfect venue for any meet.
“As a premier racecourse in the world, Singapore Turf Club has “consistently taken strategic measures over the years such as implementing measures to improve racing.” Experience first-hand action at the Singapore Racecourse
F
rom the early years of colonial history to the present day heart-throbbing action at Singapore Racecourse, horse racing has been an ever present past time for Singaporeans not without the name Singapore Turf Club. Known as Singapore Sporting Club before changing to its current name to adhere to a more definite role, Singapore Turf Club has been in the center of horse racing in Singapore ever since. Founded in 1842 by a group of racing enthusiasts, it has evolved into the world-class racecourse that it is today. Its success is lined not only in its historical endurance but to the different factors Singapore Turf Club admits to be indebted to. “With advancement in technology, we also cater to the sophisticated tastes of racegoers by improving the array of races internationally. This is made possible by satellite broadcasting and fibre optics,” according to the Club. Races from anywhere in the world can be shown ‘live’. Singapore Turf Club offers world class facilities such as the Singapore Racecourse and its off-course lounges at China Square, The Majestic, SingPost and Bukit Merah. A new trackside marquee is set to be opened in May
Enjoy exclusive dining at the Singapore Racecourse 2011, which will bring guests closer to the racing action. Singapore Turf Club clearly goes beyond horse racing. “There are three reasons why your functions or events should be held at the Singapore Racecourse and/or Off-Course lounges. One, the event will be fused with fun and excitement of live thoroughbred racing. Two, in the Off-Course lounges, a 3-D environment that is unrivalled by any enclosed function venues. Finally, privacy and exclusivity, a unique feel away from the hustle and bustle of the city,” the Club states. As a premier racecourse in the world, Sin-
gapore Turf Club has “consistently taken strategic measures over the years such as implementing measures to improve racing.” They increased prize money and incentives for races. This encourages top international trainers and jockeys to train and ride in the Club. The Singapore Racecourse has activities awaiting the public even on non-racedays. Concerts, Car Rallies, family Open House and Ladies’ Nights provide a unique compliment to racing activities. By maintaining a stable customer feedback system through surveys and feedback sessions, it’s easier to Singapore Turf Club to maintain its grasp on customer needs and focus on key areas of development. Singapore Turf Club is clear in its vision of providing the most efficient horse racing experience and races beyond wagering to a variety of clientele.
CONTACT Singapore Turf Club 1 Turf Club Avenue Singapore Racecourse Singapore 738078 Telephone: (65) 6879 1979 Fax: (65) 6879 1010 business_development@turfclub.com.sg
co-PUBLISHED corporate profile
Perspectives in a Changing Legal Landscape
Tan Peng Chin, Senior Director
Wong Liang Kok, Joint Managing Director
G
lobalisation is quickly changing the world. No one functions any longer without effecting change somewhere else. Whether it be in a closed economy like North Korea or in an open one like Singapore, the world has become one island threaded together by technology. Law firms are not exempted from this complexity. This is exactly what Tan Peng Chin LLC (TPC) is all about: changes. TPC recently underwent a big change in leadership on 1 January 2011 with Wong Liang Kok and Lim Jo See, who have been with the Firm since its beginnings in 1994, becoming Joint Managing Directors, and Chye Kit Min and Tan Peng Chin now the Senior Directors. This change in leadership will hopefully bring the Firm to another level of law practice. Peng Chin is confident of this. “Liang Kok and Jo See have been working with me since the start of their legal careers, and are well-placed to take the Firm to the next level amid the new challenges facing the Singapore legal market, while retaining the Firm’s core ethos and philosophy,” says Peng Chin. Under Tan Peng Chin’s watch, TPC has
24 SINGAPORE SINGAPORE BUSINESS BUSINESS REVIEW REVIEW || APRIL APRIL 2011 2011 24
“While we accept, and will seek ways to face, the increased international competition, we do also see and will seize opportunities following the liberalisation of the legal services market.” grown from a sole-proprietorship to a full service medium-sized law firm of around 27 lawyers and 40 support staff (this will put TPC in the top 20 in terms of size). Singapore is a fast-growing economy, attracting more and more international firms to its shores, and to keep abreast with this movement, TPC adjusts itself by riding along the waves of international practices. In 2008, the Qualifying Foreign Law Practice (QFLP) Scheme was introduced. Selected foreign law firms that underwent a stringent selection process are now free to practice Singapore law in specifically permitted areas. QFLP Scheme opened up Singapore’s legal services market and is likely to be liberalised further. Come 2012, lawyers from other jurisdictions who pass the Foreign Practitioner
Examinations (FPE) will be able to practice Singapore corporate and commercial law. TPC bears this in mind. “While we accept, and will seek ways to face, the increased international competition, we do also see and will seize opportunities following the liberalisation of the legal services market,” Liang Kok says. Many of the lawyers at TPC have been called to the Bar in other jurisdictions such as England, Malaysia, India, Sri Lanka, Australia and New York, and several have previously worked in the international law firms such as Freshfields and Johnson Stokes & Master. TPC is the only (and first) Singapore law firm and an exclusive Singapore member of Eurojuris International, a leading network of law firms in Europe covering 630 cities in 40 countries worldwide. All Eurojuris law firms are well established and reputable in their community, stringently selected and adhere to defined quality standards. Liang Kok comments, “Eurojuris will open doors to more cross-border transactions in Europe and the global arena for TPC without the need for a physical outfit.” TPC is a full service law firm, although wellknown for its banking practices. TPC regularly
CO-PUBLISHED CORPORATE profile “...the Firm is well-placed to serve an industry in which there is only a handful of experienced and dedicated lawyers.”
TPC Asset & Wealth Management Directors acts for many foreign financial institutions including DZ BANK, Nordea Bank, Bank Mandiri, China Construction Bank, Chinatrust Commercial Bank, Qatar National Bank, Arab Bank and Emirates Bank. It is grouped into 5 departments: corporate, banking and fianance, real estate and conveyancing, asset and wealth management, litigation and dispute resolution and intellectual property. Kit Min, who is in the TPC Conveyancing Department, says “TPC has a busy leasing and landlord-tenant practice. Our clients, such as the Frasers Centrepoint Group, Asiamalls, Lend Lease, DRB-Hicom, NUH, Chye Lee & Sons, AIA, YTL’s Starhill Global Reit, are the leading developers, managers and owners of retail malls and commercial offices such as Centrepoint, StarHub Centre, Liang Court, 313@ Somerset, Parkway Parade, Wisma Atria and AIA Tower.” The Firm also boasts a dedicated team of funds and wealth management lawyers. The team, headed by Melvin Khoo, covers
the retail, insurance-linked and private funds sector, as well as the private wealth and trusts industry, and advises on fund structuring and formation, licensing of capital markets and financial intermediaries, private and retail funds offering and registration requirements, trust formation and regulatory compliance. “With the rapid development and growth of Singapore as a financial, fund management and wealth management hub in Asia and globally, the Firm is well-placed to serve an industry in which there is only a handful of experienced and dedicated lawyers,” says Melvin. He continues, “we are unique in having such a large and experienced team of funds lawyers. Our team size rivals that of the largest law firms in Singapore.” An additional answer to the inexorable entry of foreign firms, Liang Kok expresses TPC’s commitment to focus on local law. “Foreign firms are not likely to be permitted in the near future to practice in the domestic areas of litigation and general practice such as criminal law, retail conveyancing, family law and administrative law. We will continue to stay focused on these areas,” Liang Kok says. TPC maintains its backbone of legal force by having a core group of senior lawyers who have known and worked with each other for more than a decade of law practice. Peng Chin hopes that the younger and newer lawyers can get to know and experience the
Lim Jo See, Joint Managing Director team spirit and camaraderie which the older lawyers in TPC share. Peng Chin says, “I am lucky to have a key bunch of partners who work for one another and put the Firm’s interests first and foremost.” The working culture is centered on balancing between law practice and personal development. Liang Kok says, “We try to create a set-up where lawyers see a real opportunity to establish themselves in the profession and take ownership of their careers. We make a conscious effort to maintain a congenial and co-operative working environment where lawyers do not get burnt out in the early years of practice but can last a marathon.” With the advancement in communication technology, it is inescapable to enable the lawyers to simulate a 24/7 work load. But Peng Chin claims that he never wants his lawyers to spend all their waking hours in the office and that he has been a strong advocate of worklife balance even before it became vogue. With more and more international companies getting in Singapore, TPC is keen on expanding its scope of legal practice. “TPC aims to capitalise on the growth spurred by the liberalisation of the legal market and the recovery in the region and continue to establish our domestic and international credentials”, says Jo See. Liang Kok adds, “We will also in due course develop our next generation of lawyers who will take up the mantle to keep Tan Peng Chin LLC ahead of the competition in a constantly changing world.”
CONTACT
TPC Real Estate & Conveyancing Lawyers
Tan Peng Chin LLC Advocates and Solicitors Notary Public Commissioner of Oaths 30 Raffles Place #11-00 Chevron House Singapore 048622 Tel: (65) 6532 1808 Fax: (65) 6534 5433 www.tpclaw.com.sg
SINGAPORE BUSINESS REVIEW | APRIL 2011 25
Hong Kong Property: 5 Reasons Why Home Prices Will Drop Property transactions are starting to fall, and demand from foreign buyers is decreasing.
A
gainst the overall bullishness in the property market, I have been slightly cautious since the start of the year. Although I suggested in my own forecast that a 10-15% rise of overall home prices in 2011 is possible under bull case scenario, I have already outlined some of the key risks factors that would trigger a correction, which include an earlier-thanexpected interest rates hike from the United States, and more-aggressivethan-expected monetary tightening in China, along with other reasons such as Eurozone debt crisis. The key to call for the end of bull market in Hong Kong real estate is to identify something that trigger funds outflow. Since I wrote my forecast early this year, new developments around the world have made Hong Kong property market more risky 26 SINGAPORE BUSINESS REVIEW | APRIL 2011
“The key is that fundamentals are not as strong as people think: Hong Kong is no longer a fast-growing economy, and population growth is very slow.”
to me than it was. Follow-up my “Beginning of the End” call, here are some reasons why I turn from slightly cautious to downright bearish:
is very slow. Worse still, like many other parts of the world, the population is ageing, and that is going to be negative for real estate market.
1. Hong Kong Property Prices Are Really Expensive Whether you agree the methodology or not, there is very little doubt that Hong Kong home prices are among the most expensive on earth. This is the prerequisite to call anything a “bubble”, and the property market in Hong Kong certainly meets this criteria. Even though properties look very affordable, they are so only because of ultra-low interest rate. Of course, being expensive by itself does not mean that prices are going to drop. The key is that fundamentals are not as strong as people think: Hong Kong is no longer a fast-growing economy, and population growth
2. Illusion of Supply Shortage The most frequently cited reason for high home prices is the supply shortfall, though my previous analysis showed that if we take the total housing stock in the private residential sector into account, the Hong Kong private residential market may have as many as 210,000 excess flats relative to “true” demand based on the total number of households living in the private residential sector in Hong Kong. I believe that the excess in the market should be able to buffer any annual supply “shortfall” for 2-3 years. In fact, should the property market corrects, we might find ourselves facing
analysis an excess supply in the total housing stock as well as the new supply coming on stream after government increased land supply over the past year or so. 3. Demographic trend is working against the market Demographics have an important relationship with asset prices. Előd Takát of the Bank of International Settlement (BIS) wrote a paper in August 2010 titled “Ageing and asset price” (Note 1), in which he examined the demographic forces behind home prices. He found that in the previous few decades, the baby boomers generation has driven asset prices up, including real estate prices. However, the overall ageing of population in the coming decades will create an 80 basis points headwind per annum in real estate prices in the United States, and even stronger headwind in other places like Europe and Japan. The implication for such a finding is that, as almost all countries will face an ageing population in the years to come, real estate markets all over the world are likely to face demographic headwinds. For instance, the ratio of workingage population to total population in both Hong Kong and China peaked in 2010, and population ageing will proceed at a fast rate. By 2050, the population aged between 15 and 59 in Hong Kong will account for less than half of total population, down from about 70% in 2010 according to United Nations Population Division’s forecast. Although the property market will continue to experience ups and downs, the structural problem of
population in Hong Kong means that the long-term trend for the real estate market will be tilting downward. 4. Economic Uncertainties Increase Now, many people think that the Japan’s earthquake is only going to be a blip. Even the significance of Japan in the global economic landscape has diminished over the past 2 decades; Japan is still the third largest economy in the world with all sorts of intricate links within the global economic system. Japan, for instance, is a major trading partner of China and many others, and is a major part of the global supply chain in technological products. There have been reports that Japanese brokerage houses Nomura and Daiwa Capital Markets were among the brokers who sold off most stocks in Hong Kong since the start of this week. While it is unclear whether that was related to Japanese institutional clients selling off stocks in Hong Kong to repatriate funds back to Japan, the country will have a huge need for funds in months or even years ahead, so it should not be surprised that funds are flowing back to Japan. Situations in the Middle East and North Africa are also far from clear. The breaking news is that UN Security Council has just approved the use of a no-fly zone in Libya, and military intervention might be on the way. That creates even more uncertainties. Our neighbor, China, is fighting with inflation and tightening policy. Tightening will inevitably slow down the economy, and that will be negative for Hong Kong real estate.
“In the time of crises and uncertainties, money flights to safety.”
In the time of crises and uncertainties, money flights to safety (e.g. US Treasury). As Hong Kong property market is extremely sensitive to money flow, the increasingly clouded global economic outlook does not bode well with Hong Kong property market. 5. Interest Rates on the Rise I have written previously that interest rates in Hong Kong do not always move with that of the United States. As long as funds are flowing away from Hong Kong, market interest rates will probably rise even the Federal Reserve was keeping interest rates low. The increasingly clouded economic outlook may trigger some funds flowing away from Hong Kong, which will decrease money supply and put upward pressure on interest rates. Banks in Hong Kong have raised mortgage interest rates marginally, not because of any interest rates hikes in the United States, but to increase net interest margin. Although not consequential by itself, this gives a signal that interest rates cannot be at record low forever. Interest rates cannot remain low forever, but understanding this and watching this happening appears to be two different things. Bubbles are not sustainable, but they often last longer than people believe is possible, and when they end they end very quickly. A big bubble waiting to burst. But when? Only history can tell, but it might be unwise to go into the market now. By Zarathustra W. Also Sprach Analyst www.alsosprachanalyst.com
Transaction Volume of Private Residential Market
M1 growth vs. Home Prices Changes
Source: www.alsosprachanalyst.com
Source: www.alsosprachanalyst.com
SINGAPORE BUSINESS REVIEW | APRIL 2011 27
Asian corporate jet business takes off A two-day Asian Business Aviation conference talked enthusiastically about the lifting of regulations in China that will aid the industry’s expansion.
C
orporate jet travel has been gaining momentum in the Asian region since 2006 as huge enterprises and individuals began recognizing business aircraft as a business and productivity tool rather than a mere status symbol. Greater security, privacy, convenience, comfort and the ability to travel based on businessmen’s own schedule instead of depending on commercial airplanes have added extra lure to the trend. The boom, which started in the United States in 2005, spread to Asia with very consistent, rapid growth of the industry in the past six years. The 2008 financial crisis has not been a deterrent. In fact, Asian business jet buyers benefitted from the crisis as
28 SINGAPORE BUSINESS REVIEW | APRIL 2011
“China will become the ‘big story’ of this decade in the aviation industry.”
aircraft cancellations from clients overseas pushed forward plane deliveries to Asian customers. Against this background, outgoing Cathay Pacific Airways CEO Tony Tyler, who left the airline last March 31 to take up the position of Director-General and Chief Executive Officer of the International Air Transport Association (IATA), says: “China will become the ‘big story’ of this decade in the aviation industry, given the rapid expansion of its airline market and growth in airports over the next 10 years.” Asian Aerospace Congress “China is already the world’s secondbiggest economy and the country’s emergence as an economic power-
house will undoubtedly be reflected by its importance in aviation terms,” Mr Tyler added in his keynote address at the three-day Asian Aerospace Congress which took place on March 8, 2011 at the Asia WorldExpo in Hong Kong. As part of this prestigious event organized by Reed Exhibitions, some 5,300 delegates, including several Chinese billionaires, visited the dedicated static line of 22 business aircraft, hospitality chalets and stands at Asian Business Aviation. Business aircraft participants included Airbus, AsiaJet, Boeing, Bombardier, Cessna, Embraer, Gulfstream, Hawker Beechcraft, Metrojet and TAG Asia. All reported a high quality of visitor traffic at their air-
aviation report craft, hospitality chalets and stands. Among the business aviation debutantes out on the static display were aircrafts such as the Beechcraft King Air 350, Boeing BBJ, Cessna Citation XLS Plus and Sovereign, Hawker 900XP and Pilatus PC-12. At the two-day Asian Business Aviation conference delegates talked enthusiastically about the lifting of regulations in China that will aid the industry’s expansion, new airports being built, new infrastructure and maintenance, repair and overhaul (MRO) facilities, the need for more pilots and training and the requirement to educate on the benefits of private charter. Speakers including Hong Kong-based Metrojet’s CEO Bjorn Naf highlighted the importance of choosing a reputable management company as the majority of business jets in China are owned by private individuals as well as the
just 116 business jets in China, and that figure will increase 30% by yearend. Asian business aviation market has increased by 15% in 2009, with about 600 executive jets operating in Asia, while US has over 11,000 in operation. This market is tipped to increase further. Boeing forecasts that Asia-Pacific will account for 44% of world travel in 20 years’ time, from 34% today. And its rival, Airbus, is predicting that the region will receive 40% of new airplane deliveries worldwide over the period. At the show, China announced completion of the preliminary design of its C919 medium-range commercial airliner that is meant to be a direct competitor with Boeing’s very popular 737 and Airbus 320 aircraft models. The C919 is slated to undertake the first flight in 2014, with certifica-
“Asia has become the fastest- growing region in the number of billionaires in line with its rapid economic transformation.” importance of winning trust from those owners, families and clients that purchased jets which were flown 24/7 and 365 days a year. Demand to increase Delegates also heard that there are
Joe Lambardo, President, Gulfstream
tion and delivery to its first customers by 2016. On the opening day of the show, Hainan Airline Group announced an order for five Gulfstream G450/ G550 aircraft and five Dassault Falcon 7Xs for business jet subsidiary
“In Asia, airlines are buying business jets; a new industry trend that has emerged with increasing numbers of super-rich in Asia.”
Deer Jet, together with an order for two VIP configured Boeing 787s for its Hong Kong Airlines subsidiary. In Asia, airlines are buying business jets; a new industry trend that has emerged with increasing numbers of super-rich in Asia. Super Rich According to Forbes’ rich list, announced recently – potential corporate jet customers, there are 115 Chinese billionaires from the mainland among the 1,210 billionaires from around the world, almost double of last year’s 64. Their businesses cover manufacturing, information technology, food, and other sectors, where China has grown spectacularly since Deng Xiaoping launched his reforms. Hong Kong and Taiwan have 36 and 25 billionaires respectively on the list, as Asia has become the fastest-growing region in the number of billionaires in line with its rapid economic transformation. Indian billionaires have also moved up the list of the world’s super rich, reflecting the dynamism of the so-called BRIC countries and the wider emerging market economies. Prominent among the Indian billionaires are members of the Mittal family, who are now at the top of the global steel industry, alongside other top Indian players in the information communication technology sector.
Daniel Kunz, Director, Sales and Marketing, Pilatus Aircraft SINGAPORE BUSINESS REVIEW | APRIL 2011 29
aviation report Many of them attended the airshow and inspected the aircraft on display, but their identities were kept low key as part of security measures. Show’s feedback Joe Lombardo, President, USAbased Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics, which designs, develops, manufactures, markets, services and supports the world’s most technologically advanced business-jet aircraft, says: “The visit here (to Hong Kong) has been invaluable. We had good talks with potential customers, you just can’t do this on the phone.” Gulfstream is making a major commitment in resources to the region and intends to maintain its leader-
lai, Product Marketing Director, Airbus Corporate Jets, which displayed its A318 ELITE aircraft. The aircraft is designed to serve markets with frequent services on low-density routes, and it accommodates 107 passengers in a typical two-class cabin configuration. It is the best-selling A320 Family product line. Airbus’ Chinese partner In parallel with the show, European aircraft manufacturer Airbus announced that Taikoo (Xiamen) Aircraft Engineering Company Limited (TAECO) is the new Airbus-approved cabin-outfitter in China where the plane producer has a strong and growing presence. TAECO, which is a member of the HAECO group, is one of the world’s
“Asian Aerospace met our expectations in all aspects and we’ve had some interesting quality discussions. We participated first time on the static and it was well worth the effort.” ship position. In 2009, the company doubled spare parts at bases in Beijing, Hong Kong and Singapore. “Asian Aerospace was a good showcase for the comfortable and spacious Airbus A318 cabin which billionaires came to see and experience first hand,” said David Velupil-
leading MRO companies. It is located in the Gaoqi international Airport in Xiamen. “Airbus is new top-end of the corporate jet market,” Francois Chazelle, Airbus vice president executive and private aviation, said. Ted Farid, Senior Vice President
Francois Chazelle VP Airbus Executive & Private Aviation jets 30 SINGAPORE BUSINESS REVIEW | APRIL 2011
“The visit to Hong Kong has been invaluable. We had good talks with potential customers, you just can’t do this on the phone.”
International Sales, of USA-based Hawker Beechcraft, said: “Great location for a show, very similar to EBACE (annual meeting place for the European business aviation community). We met with key people and (saw) markedly greater activity over the 2009 event. It is worthwhile bringing three aircraft here.” Daniel Kunz, Director Sales and Marketing, Pilatus Aircraft, said: “Asian Aerospace met our expectations in all aspects and we’ve had some interesting quality discussions. (We participated) first time on the static and (it was) well worth the effort.” “Best conference I’ve been to in 20 years. (It dealt with) real issues (and) great substance,” Jim Edgar, Regional Director, Marketing Commercial Airplanes, Boeing Commercial Aircraft, said. A number of jet manufacturers have already set up sales offices on the mainland as the business aviation market matures. Airspace and air-traffic control regulations have become more liberal in the recent years, with the opening of airspace below 4,000 metres making it easier to travel by business jet and helping to expand the market. By Wong Joon San wongjoonsan@yahoo.com Tel: +852 2106 1898 Freelance writer; Editor of GCTL8.com and GCTL Insights Magazine.
Asian aviation is growing and improving
opinion
Singapore’s oil and gas market about to boom Global Managing Director Hays Oil & Gas
Matt Underhill > Singapore is likely to hit a boom in 2012 Day rates for local labour for Oil & Gas in Singapore have almost doubled in the last year. This was revealed in our second annual Oil & Gas Global Salary Guide, produced in partnership with the specialist jobsite Oil and Gas Job Search. Daily average contract rates for locally based professionals have increased significantly, from $280 to $500. Annual salaries have also increased with locals earning an average US $66,300, up from $56,700.
With the global recession hitting the world’s markets in late 2008, the oil and gas industry was not immune to its effects. By late 2009 the worst had passed and business was in recovery. However permanent salary trends by their nature tend to lag behind the economic state of the industry and salaries continued to fall. It was only in mid-2010 that permanent packages began to climb. Contract day rates on the other hand are much more reactive to short term changes in demand for skills and as such are a good indicator of the state of the job market. In September/October 2009 we would expect contractor day rates to have been at their absolute rock bottom in line with the recession hitting the industry at that time. So to have an increase between then and the same time in 2010 is to be expected, however to have an
increase of 80% shows the oil and gas industry in Singapore is rebounding very strongly and is good indicator of the likely boom predicted to hit in 2012. The Guide, compiled from the responses of almost 11,000 industry professionals, shows positive worldwide growth and sentiment towards salaries in the sector. Over the next 12 months, nearly 47 percent of respondents believe that salaries will increase by 5 percent or more. Overall the figures demonstrate a level of confidence and more than half the respondents indicated they are positive about the current employment market. With an increase in the number of jobs and applications posted to our own offices and Oilandgasjobsearch in the past 12 months, I am equally optimistic.
Swiss quality also stands for knowledge. Ensuring your success with global mailings.
Swiss Post offers you cross-border mailing options to make your business even more successful. You can count on us for daily mail, direct mailings, newspapers, magazines and small consignments. With our flexibility, innovativeness and reliability we are your partner for international mailings. Further information available at number +65-6748 4484 or at www.swisspost.com.sg
Excellence delivered.
SINGAPORE BUSINESS REVIEW | APRIL 2011 31
numbers
Will you ‘friend’ your grandfather ? What will/did you do when you retire?
What will/did you do when you retire?
Singapore
Hong Kong
Join a new company/start a new career
18
Join a new company/start a new career
51
Be a volunteer
Be a volunteer
15
Adult education Garden
34
%
Join a club and attend activities
49
Move to a senior centre for better social life
15
Garden
13
Take care of grandkids
39
Join a club and attend activities
38
Move to a senior centre for better social life
10 73
Travel
%
2
Travel
13
Other
46
Adult education
16
Take care of grandkids
9
70
Other
12
Generational differences in online activities
What will/did you do when you retire?
Features used on the internet %
12-64
12-19 (Post 90s)
20-29 (Post 80s)
Using email Using search enginges General browsing Instant Messenger Downlaoding Playing online game Online banking/investment Listening to live music Listening to live radio Online purchase Online auction Online booking of travel services
61 61 51 38 30 28 26 23 18 15 15 13
61 64 45 65 45 45 3 36 14 10 17 2
75 73 61 60 44 35 29 32 24 27 25 20
>50%
Internet usage continues to grow 2006
2007
2008
2009
2010
12-19
56 58
60
63
72 73 70
48
46 47
45 45 43
42 43 40
18 18
TV
Internet
Source: Synovate Media Atlas Hong Kong Target: People 15-64
Daily Newspaper^
<25%
Hong Kongers are active in either creating, participating or reading social content
90 90 88 90 88 76 75
25% -50%
50-64 (Silverhair) 43 43 40 12 13 15 28 16 14 8 5 12
Source: Synovate Media Atlas Hong Kong Jan-Dec 2010 Target: People 12-64 years old who have used the internet in the past month
Source: Synovate Media Atlas Hong Kong Jan-Dec 2010 Target: People 12-64 years old who have used the internet in the past month
Media Usage
30-49 (Post 60s/70’s) 60 59 52 25 23 22 33 17 17 13 12 14
Weekly Magazine^
Yesterday: TV, daily newspaper, internet & radia Pastweek: Weekly magazine Past month: Monthly magazine ^Exclude readign online
41 41
15 16 14
Monthly Magazine^
Created blog or personal page, uploaded self-produced video/audio to public site
Creators
Commented blog, contributed to forum/discussion groups, contributed/edited articles in wiki
Reactors
Connect in social network
Connectors
20-29
30-49
50-64
25%
33%
35%
44% 43%
44%
59% 55%
67%
Radio
Read blog without commenting, listened to podcasts, read forums/discussion groups
Participants
Source: Synovate Media Atlas Hong Kong Target: People 12-64 years old who accessed the internet in the past month
44%
57%
78%
86% 88%
67% 71%
past 30 days activites
For more information contact: Nielsen, Margaret Lim (margaret.lim@nielsen.com); Synovate contact Tim Hill (Tim.hill@synovate.com)
32 SINGAPORE BUSINESS REVIEW | APRIL 2011
corporate profile
Singapore – A media capital? Yes, it’s true a 22-year-old organisation originally mandated to promote exposure for local music talent offshore, explains that local audience are highly influenced by exogenous trends to the exclusion of home-grown talent.“ Local artists need to have the endorsement of foreign fans before locals will accept them. Through grants and the use of venues, the Government is helping us develop provide a platform for local talent.” Lim Sek operates the Republic of Pop portal (www.rop.com.sg) which provides Y-Geners with one click access to the local music scene. This provides talent and original local musicians with the marketing arsenal that they need to make it big. These would not have been possible without policy-maker consideration and investment.
MDA offers opportunities to improve studies through gaming
O
nce described by blanket terms such as “overly-controlled” and “boring”, Singapore is revamping its image as that of a leader in the Asian media sector. Singapore’s media industry is rapidly opening-up – albeit in Singapore’s famously orderly and planned way - and when Singapore’s policymakers decide on cultivating a new area of national development, they don’t fail. The All-Seeing Eye In working toward these goals, the Singapore Media Development Authority has just finished playing host to Media Fiesta 2011. “One of the leading objectives of Media Fiesta was to encourage Singaporeans to use media in a responsible and discerning manner,” says Kenneth Tan, ACE (Industry) at the MDA. “Today, we are exposed to increasingly complex information and we have faster and cheaper access to information. The flip side of this is that fallacies can easily masquerade as the truth, especially on the World Wide Web. Hence, one of the aims of Media Fiesta was to promote media literacy,” he adds. Apart from initiating a widespread public re-educate campaign, Media Fiesta also aimed to raise general awareness of emerging media technologies and generate a sense of national pride in “Made-By Singapore” media content, services and applications. The business case Singapore media players are enlarging their
global footprint. The stats say it all. In 2009, Singapore’s Interactive Digital Media sector, a flagship segment of the media industry, supported 8,117 jobs up from 7,613 the year before. In 2009, the sector contributed S$867 million to Singapore’s GDP (about $1 in every $4,000), a 15% increase from the previous year. Made-By Singapore media content is broadcast in more than 70 countries. Singapore’s unique combination of multicultural subject matter and leading-edge technological capabilities should see the media sector grow healthily in the next few years. “Digitisation of media content and the convergence of consumption platforms are very much a part of our DNA,” says Tan. Opportunities abound for SMEs willing to put in the hard-yards. Companies like Garena, a games company, increased its user base from 4 million in April 2008 to over 60 million users in December 2010. KAI Square, specialising in intelligence surveillance data processing, clinched the prestigious Emerging Enterprise Award 2010. Fertile fields for SMEs Lim Sek, co-founder of Music & Movement,
“One of the leading objectives of Media Fiesta was to encourage Singaporeans to use media in responsible and discerning manner.“
Business with a social cause Having an original idea and great business plan may not be enough for grants and endorsement. Fundees should also share the government’s social duty. No better example is found than in Angler, a gaming company formed by band of passionate individuals with a sense of social responsibility. The directors have a special interest in “gaming addiction” and how this can be avoided to produce well-balance young individuals. Lim states that the MDA plays a vital role in endorsing home-grown talent and shares Angler’s vision of providing youths the opportunity to improve their studies through gaming. That being said, Lim also states that since the industry is young and still finding its feet, the MDA must continue to be proactive, provide support and funding. “The Government is clearly concerned with the youth welfare and I see great opportunities as long as the Government can assist in creating a value for all, and that includes developers and end-users.” Singapore’s vision of becoming a regional centre of excellence in Media is in good hands. A necessary and unique confluence of vision between Government, business and the general public should no doubt lead to Singapore’s next great miracle.
CONTACT Media Development Authority 3 Fusionopolis Way #16-22 Symbiosis Singapore 138633 Tel: 6377 3800 Fax: 6577 3888 Website: www.mda.gov.sg
ceo interview
Coffe Bean & Tea Leaf launches CBTL The perfect cup of coffee or tea can now be brewed at home as Coffee Bean and Tea Leaf’s President Mel Elias tells Timothy Charlton.
C
Mel Elias, President and CEO, Coffee Bean & Tea Leaf
offee bean & Tea Leaf has embarked on an ambitious plan to tap the market for professional home brewed coffee with the launch of its CBTL system. The coffee chain, which was started in LA but is now Singaporean owned, chose its ION Singapore location as the first place outside of America to launch the system and President and CEO Mel Elias was on hand to demonstrate the system. According to Elias, the market for capsule style professional coffee systems in home could well exceed that in-store, making it an alluring proposition for the chain which is the first to launch such a single sealed capsule system. “We spent many millions in research and development on the CBTL system,” said Elias, and said that take-up had already been strong. Customers can buy both the system and refills in Coffee Bean & Tea Leaf stores and selected retail partners, and the whole benefit is they can get their favourite brews and espresso at home. One key differentiator of the CBTL system is that it also brews fresh tea, whereas other systems only do coffee. Elias also sees big potential in the office market where people don’t want to spend the time and deal with the mess with tea bags or grinding coffee beans and cleaning the machine.
34 SINGAPORE BUSINESS REVIEW | APRIL 2011
Thank you for choosing Singapore Business Review as the number 1 local business magazine Display to 31 March 2011 S$5.90
Daily news at www.sbr.com.sg
Singaporeâ&#x20AC;&#x2122;s Best Selling Business Magazine
ING TY ?
5 INVESTMENT IDEAS FOR 2011 WILL INFLATION
EXCEED PAY RISES IN 2011?
2011 BUDGET
SINGAPORE VS. HK:
THE REAL VALUE OF THE
CAN HSBC GET MICA(P) 125/07/2008 KDM No: PPS1645/3/2008
ITS GROOVE BACK?
4
SCENARIOS YOU NEED For seven years SBR has been bringing Singaporeans the best in business news, TO KNOW ABOUT and advertisers the best in response to their campaigns.HONG By thinking KONG local and PROPERTY acting local, Singapore Business Review has continued to be the first choice for Singapoeran business people. For more information email tim@charltonmedia.com SINGAPORE BUSINESS REVIEW | APRIL 2011 35
The Real Cost of Chinese Nonperforming loans (NPLS) China can simply grow its way effortlessly out of its loan problem is widespread but wrong.
O
nce again I am starting to hear investors tell me that they have been advised by bank analysts not to worry too much about the impact of a banking crisis in China. According to this argument, China has developed a very efficient and low-cost way to address banking crises, and the proof is that Chinaâ&#x20AC;&#x2122;s last banking crisis, which occurred only a decade ago, was quickly and easily resolved. I am afraid this argument makes absolutely no sense and is based on an inability to understand how the crisis was actually resolved. Throughout modern history, and in nearly every economic system whether we are talking about China, the US, France, Brazil or any other country, there has really only been one meaningful way to resolve banking crises. Whenever non-perform36 SINGAPORE BUSINESS REVIEW | APRIL 2011
â&#x20AC;&#x153;The household sector always pays to clean up the banks.â&#x20AC;?
ing loans or contingent liabilities surge to the point where the solvency of the banking system is threatened, the regulators ensure that wealth is transferred in sufficient amounts from the household sector to borrowers or banks to replenish bank capital and bring them back to solvency. The household sector, in other words, always pays to clean up the banks. Ways to pay There are many ways to make them pay. In some cases, and certainly in the US before the 1930s, banks simply defaulted and their depositors absorbed the full loss. In that case it was the actual bank depositors, mainly households, who directly bore the full cost of the losses, in the form of reduced, or sometimes no, repayment of their deposits. Largely because this kind of system
creates incentives for bank runs, regulators developed alternative systems, by which governments guaranteed deposits and otherwise bailed out the banks, and paid for the bailout by raising taxes. In that case the household sector still paid for the losses, but they did so largely in the form of taxes, and the losses were spread out throughout the population. Of course this way of bailing out the banks is politically unpopular and always leads to uncomfortable calls to punish the banks for their behavior. If the regulators are given a longer amount of time during which to clean up the banks, they can use other, less obvious and so less politically unpopular, ways to do the same thing, for example by managing interest rates. In the US and Europe it is fairly standard for the central bank to engineer a steep yield curve by forcing down
analysis short-term rates. Since banks borrow short from their depositors and lend long to their customers, the banks are effectively guaranteed a spread, at the expense of course of depositors. Over many years, the depositors end up recapitalizing the banks often without realizing it. There are two additional ways used in countries, like China, with highly controlled financial systems. One is to mandate a wide spread between the lending and deposit rates. In China that spread has been an extremely high 3.0-3.5 percentage points. The other, and more effective, way is to force down the lending and deposit rates sharply in order to minimize the loan burden and to spur investment. This is exactly what China did in the past decade. These low interest rates help resolve non-performing loans by granting continual debt forgiveness to borrowers. How so? Because if interest rates are set at a level lower than the natural rate, every year the borrower is effectively granted debt forgiveness equal to the difference between the two. By most standards, even ignoring the borrower’s credit risk, the lending rate in China during the past decade is likely to have been anywhere from 4 to 6 percentage points too low. Over five or ten years, or more, this is an awful lot of debt forgiveness. These all sound like radically different ways of addressing insolvent banking systems, but make no mistake, they are all simply different ways of spreading the cost of bank insolvency among households. With all the concern generated by China’s recent minimum reserve hikes and the controversy over 2011 lending quotas, it is important to remember this. There is a widely-held but wildly incorrect belief that China was able to grow out of its last banking crisis at a relatively low cost to the economy. After all ten years ago, the share of non-performing loans in the Chinese banking system was estimated to range from 20% to 40% of total loans. Within the decade, however, this once-staggering share of bad loans had shrunk dramatically to a manageable level, wihout anything resembling a Western-style banking crisis. Many analysts believe that it was combination of explicit steps to recapitalize the banks — directly by injecting
capital and indirectly by purchasing bad loans at very high prices — and very rapid GDP growth, matched by even more rapid loan growth, that resolved China’s banking crisis. In that case, these analysts say, why worry? If there were another sharp rise in non-performing loans – as many, including Beijing’s banking regulators, expect – China would easily grow out of it again using the same combination of factors and the cost to the economy would be minimal. But they would be wrong. In fact the cost of cleaning up the last banking crisis was very high, much higher than simply calculating the explicit cost of recapitalizing the banks by direct and indirect equity infusions, and so will the cost of the next one be. The combination of implicit debt forgiveness and the wide spread between the lending and deposit rate has been a very large transfer of wealth from household depositors to banks and borrowers. This transfer is, effectively, a large hidden tax on household income, and it is this transfer that cleaned up the last banking mess. It is not at all surprising, then, that over the past decade growth in China’s gross domestic product, powered by very cheap lending rates, has substantially exceeded the growth in household income, which was held back by this large hidden tax. It is also not at all surprising that household consumption has declined over the decade as a share of gross national product from a very low 45 percent at
“There is a widely-held but wildly incorrect belief that China was able to grow out of its last banking crisis at a relatively low cost to the economy.
the beginning of the decade to an astonishingly low 36 percent last year. This is how China’s last banking crisis was resolved. It did not result in a collapse in the banking system, but it nonetheless came with a heavy cost. The banking crisis in China resulted in a collapse (and there is no other word for it) in household consumption as a share of the economy. This is why the People’s Bank of China is so worried about another surge in non-performing loans. The idea that China can simply grow its way effortlessly out of its loan problem is widespread but wrong. If the household sector is forced once again to clean up a banking mess, this will make China even more reliant for growth on the trade surplus and on investment. Remember that there is no such thing as a painless banking crisis and anyone who suggests otherwise should not be taken very seriously. There is always a significant cost, and the cost is almost always borne one way or the other by the household sector. In China, with its already toolow household consumption, it will be very risky to force households to clean up yet another surge in nonperforming loans. It would only make it more difficult than ever for China to achieve the rebalancing its economy so urgently needs.
By Michael Pettis michael@pettis.com www.businessinsider.com
SINGAPORE BUSINESS REVIEW | APRIL 2011 37
ending the peg
‘Eclipse’ by Jitish Kallat
THE DEAL OF THE Art Experience art as the Hong Kong auction season attracts Chinese people and Hong Kong Collectors.
T
he Hong Kong auction season is here, with the Sotheby’s Spring Sale in early April and Christie’s mammoth auction in late May, coinciding with ARTHK11 and a huge Zeng Fanzhi retrospective sponsored by the Pinault Foundation and curated by Christie’s and the Shanghai Rockbund Museum, all taking place at the Hong Kong Convention and Exhibition Centre. Art as investment seminars are springing up like the proverbial flowers, fine art galleries are opening almost every month in Central and even investment banks are taking notice of the vibrant art market flourishing in Hong Kong. Although wealthy individuals, financial institutions and corporations have traditionally invested in established European masters, French Impressionists, American Abstract Expressionists, Pop Art, Chinese antiques, jewellery, stamps and wine as hedges against inflation, younger Hong Kong and Chinese investors are mainly interested in the contem-
38 SINGAPORE BUSINESS REVIEW | APRIL 2011
“It is becoming an increasingly popular and profitable alternative investment”
porary and modern (20th century) art scene. It is becoming an increasingly popular and profitable alternative investment. Although the art market cooled a bit during the economic downturn of 2008-09, Chinese artist Zeng Fanzhi’s ‘Mask Series No.6’ (1996) sold at Christie’s Spring Sale in May 2008 for US$9.6 million (actual figure, US$9,662,114), stands as the world’s record for a contemporary Chinese work of art to date. The final price was more than triple the presale estimate of US$1.9 -- 3.2 million. In November of 2010, Christie’s Asian Contemporary Art & Chinese 20th Century Art Evening Sale in Hong Kong realised US$36,225,644, with 84% sold by lot and 78% sold by value. Seven artists’ records were set, including Potted Chrysanthemum in a Blue and White Jardiniére by Sanyu, which was also the top lot fetching US$6,865,040. International Director of Asian Contemporary Art & Chinese 20th Century Art Eric Chang said, “The other six artists that set records are
Yee Bon, Wang Guangyi, Zhan Wang, and Mao Xuhui, and Japanese artists such as Aya Takano and Tatsuo Miyajima. As we can see from the intense competition that resulted in top prices for works by blue-chip artists such as Wu Guangzhong and Zeng Fanzhi, the market for Chinese 20th Century and Contemporary art continues to be steady and healthy.” The story was the same at Sotheby’s 2010 autumn sales as the sale of Fine Chinese Paintings achieved triumphant results. The sale commanded US$52.2 million establishing Sotheby’s highest-ever total for a various owners sale of fine Chinese paintings. All but three of the 270 works offered found buyers. The top lot of the sale was Fu Baoshi’s Court Ladies which sold for US$4.2million, while works by other Chinese masters such as Zhang Daqian and Qi Baishi also achieved strong prices. Kevin Ching, Chief Executive Officer for Sotheby’s Asia, said: “Indeed, this auction’s sales saw a notable increase in participants from mainland China across a range of categories, which resulted in totals well beyond the pre-sale estimates, particularly in the paintings areas.” Twentieth century Chinese artists, such as Sanyu and Qi Baishi are starting to peak in price and desirability now. The big auction houses define “20th Century Chinese Art” period as one
ending peg coverthe story between 1880 and 1950, when artists in China were liberated from the weight of Chinese millennia of art ink and brush history and traditions by travelling overseas. They came into contact with Western ideas of media, perspective and subject matter. Yet they retained their mastery of Chinese calligraphic ink and brush painting techniques, while they studied new ideas and images from the West. The new Hong Kong art showcase, de Sarthe Gallery located on Ice House Street in the Club Lusitano Building, which opened in early March, made a stunning impression on the art glitterati by exhibiting masterworks by Zao Wou-ki (Zhao Wuji), who at 90 years old is still painting in France. He went to Paris and never went back
He painted 10 paintings during this trip but unfortunately very few remains. One was on display in Hong Kong until the end of April 2011. “This will be the first gallery exhibition of Zao Wou-Ki paintings of exceptional quality and breadth to be held in the past 10 years with half of them not being exhibited for half a century. We are extremely honored to bring such a prestigious collection to mark our debut in Hong Kong and Asia,” said Pascal de Sarthe. Those artists lucky enough to leave China before the CCP took over in 1949 went to Paris, London, New York and Tokyo and other places as artists-in-residents or as students. They all had their horizons widened by coming into contact with Western
“We are extremely honored to bring such a prestigious collection to mark our debut in Hong Kong and Asia.” to China, becoming the darling of not only the Chinese expatriate community but also a favourite of knowledgeable collectors in Europe and the United States for his wonderful abstract oils that evoke Chinese calligraphy in bursts of colour. Born in Beijing on February 1, 1920, Zao Wou-Ki is the most celebrated living Chinese artist. Among the exhibition is a very rare painting done in 1958 when the artist travelled to Hong Kong for six months where he met his second wife Chan MayKan.
‘Bleah’ by Liu Ye
Modern art by seeing the actual art works, not just in photographs. Contemporary, modernist Chinese artists were more stimulated by the Abstract Expressionists from Germany and America after World War II. Chinese contemporary artists (post-1949) were more taken with Marcel Duchamp and the Dada and Pop movements, but what they all had in common was the idea of discarding the old ways of doing things. Being able to express emotional states and existential ideas instead of copies of reality or idealised expressions of
“Buy the best your budget will allow”
technique, Chinese artists came into their own. Pan-Asian artists benefit Artists from all around Asia are also benefitting from the art boom, with artists from Indonesia, Japan, and Korea especially in demand. Art from Thailand, Cambodia, Myanmar (Burma) and Vietnam is also finding willing buyers. Interest is growing in Indian and Pakistani art, and with the advent of Art Dubai, the Middle East is beginning to show up in the art markets as well. Vinci Chang, vice president and head of sales on the 20th century Chinese Art and Asian contemporary art at Christie’s said, “When people are thinking about art as an investment, it requires a different sort of knowledge than when buying real estate or equities. The investor has to figure out what type of art he likes and in what categories first, and then get consultants, gallery owners, auction house staff, and the artists’ themselves, to help narrow the search. But the most important criterion is to love the art and be willing to live with it for a while. Emerging artists can sell work for HK$200,000 and two years later, that piece can be worth $8 million, but then again, they may not appreciate that fast”. Young investors are seeking help and advice. The auction houses may be too intimidating for a novice, so they turn to gallery owners, art consultants and artists themselves for
Untitled, 1958 by Zao Wou-Ki courtesy of Archives Zao Wou-Ki, Paris SINGAPORE BUSINESS REVIEW | APRIL 2011 39
cover story advice and guidance. Many gallery owners, such as Henry Au Yeung from Grotto and Stephen McGuinness from Plum Blossoms, advise clients to “buy the best your budget will allow”. All experts tell prospective buyers they must buy what they love and be able to live with the art rather than thinking about it solely as an investment. Hong Kong is rich is established galleries, to mention just a few: Hanart TZ, which just opened a huge new space in Kwai Chung, plus the Ben Brown, Gagosian, Plum Blossoms, Tagore and Schoeni galleries in Central, while 10 Chancery Lane and Osage have branched out to Chai Wan and Kwun Tong respectively for more space to display fine art. Dozens of new galleries have opened in
in the Rotunda at Exchange Square and displayed art from Afghanistan, Kazakhstan and Iraq for the first time, as well as the art from countries usually considered Asian. The Sovereign Group not only sponsors the art competition and exhibitions, it donates all the money earned from auctioning off the art works to artrelated charities in Cambodia and India, among others. Societe Generale just concluded a massive on-line art competition for young Chinese artists from Hong Kong, China, Taiwan and Macau, exhibiting the winners at Artistree in Taikoo Shing. This first competition attracted 364 self-selected artists to participate, winning not only cash prizes but the opportunity to be shown at international exhibitions
“The most important criterion is to love the art and be willing to live with it for a while.” the past 10 years, each specialising in some form of Asian art, so good advice is readily available to new collectors in Hong Kong and the Mainland. Corporations are getting into the act as well, giving new collectors other opportunities to see emerging artists’ work. The annual Sovereign Asian Art Awards solicits entries from dozens of countries all over Asia, nominated by galleries, curators and art consultants. The nominees of the 10th anniversary show was just exhibited
‘Potted Chrysanthemum in a Blue and White Jardiniere’ by Sanyu 40 SINGAPORE BUSINESS REVIEW | APRIL 2011
in Beijing, Shanghai, Taiwan, Hong Kong, Singapore and Paris. This allows young, emerging artists to network and make valuable contacts, but it also allows young collectors to see judged works and become familiar with the artists’ names and type of media they use. There are many art consultants who have worked for the auction houses and cooperate with collectors to build a certain kind of collection. “Ascertaining the taste and budget is the first step”, according to Anna Ning, who also runs the Anna Ning
Untitled, 1959 by Zao Wou-Ki
“The methodology of Art Futures Group is the same for any investment.”
Gallery. “I have been showing the 20th century Chinese artists quite often as they are a known quantity, especially if the artist is deceased. The prices keep going up as the mainland Chinese begin to reclaim their heritage”. Newcomer to the scene, Jon Reade is the sales director of Art Futures Group, a company dedicated to financial consulting for collectors, investors and institutions. Reade said he had been in Hong Kong for a few months and had visited China for about three months, looking at contemporary art. “The methodology of Art Futures Group is the same for any investment. Do your homework, research artists’ track records of solo exhibitions, gallery shows, group shows, museum acquisitions, and the latest prices sold. Check with the reputable auction houses for their latest prices for an artist’s work. We only list top selling artists and we can make informed recommendations to create a balanced portfolio for an individual or a company,” Reade said. The company is confidently predicting that now is the time to invest in Chinese contemporary art. Although Reade’s credentials don’t compare with people such as Johnson Chang, founder of Hanart TZ Gallery and the initiator of the contemporary Chinese art market in Hong Kong almost 30 years ago, everyone is finding a place in the thriving Hong Kong art market.
‘Mask Series Painted in 2000’ by Zeng Fanzhi
coRporate profile
Your Way To an Insured Wellness
Dr Chong Yeang Chern, Wellness Physician and Director of Wellness Centre,
“Our health screening packages combine all the best elements of preventative healthcare and are specially tailored to suit the needs of men and women of all ages.”
Asia HealthPartners, Wellness Center
A
sia HealthPartners Private Limited is a modern medical centre conveniently located in the heart of Orchard Road, offering health screening, aesthetic surgery and laser treatments, endoscopy, and diagnostic imaging services. We bring you the benefits and healthcare solutions that can only come from a combination of our medical expertise with state-of-the-art technology. While we use the latest cutting- edge medical technology to serve patients better, we understand that beyond these tools of the trade, the human touch is an essential ingredient of holistic medical care - a pleasant, relaxed environment, attentive and dedicated staff, privacy and comfort all contribute to offering our patients peace of mind, and the assurance that they are receiving the highest quality care. Our mission is to enrich the quality of our patients’ lives through exceptional preventative, diagnostic, therapeutic and aesthetic medical services. Asia HealthPartners Wellness Centre is a listed clinic in HPB directory list. At the Wellness Centre, we are committed to offer the best care to our patients. We stand by our motto – Live Well, Live Happy and we
believe in service from the heart. We have a comprehensive range of services that includes health screening, family medicine practice, anti-aging management, family planning and contraception, weight management, travel health, imaging and laboratory services. Health screening is essential to help you understand your current health status by identifying pre-existing but silent health problems and risk factors for diseases. Through health screening and education, health concerns can be addressed easily. Accurate diagnosis and management can be instituted promptly to prevent disease progression and improve your health and quality of life. Our health screening packages combine all the best elements of preventative healthcare and are specially tailored to suit the needs of men and women of all ages. We can customize assessments or help you choose the package that best fits your particular needs. Our services are suitable for both individuals and corporate organisations. Our Wellness Centre provides evidence based personalized health screening services with specialized tests that include food and inhalant allergy tests, hair mineral analysis and hormone analysis.
Beside the Wellness Centre, we have 3 major centres that bring you the finest Health Care solutions: • Aesthetics Centre, equipped with Modern technology in the hands of our experienced and highly trained team of doctors, nurses and therapists, will help you attain harmony and balance of facial and body aesthetics. From our suite of non-surgical to surgical services, we are confident that you will find a treatment that suits your desires and expectations. • Imaging Centre, pioneering a new horizon in digital imaging, our centre offers modern and streamlined diagnostic facilities to patients and the general community. We are the first in the world to acquire the latest Ultra-low radiation dose CT machine with HD quality images. • Gastro/Liver centre offers comprehensive gastrointestinal and liver solutions that includes gastroscopy, colonoscopy, fibroscan and intragastric balloon system for weight loss.
CONTACT asia healthpartners 304 Orchard Road #05-06 Lucky Plaza Singapore 238863 Tel: (65) 6235 7888 / Fax: (65) 6732 9789 www.asiahealthpartners.com
Healthcare feature increasingly significant market in the healthcare sector. Providers should constantly evaluate what needs to be done to achieve operational effectiveness and improved care. Universities and hospitals should continuously coordinate to better plan and meet the industry’s demand for supply of qualified professionals. Healthcare providers should also take pre-emptive measures to plan for the future. Deloitte’s Five Pillars of Performance Improvement is one example: providing key strategies that can help promote a sustainable long-term growth. A higher rate of convergence and integration across the life sciences and health care value chain is needed. This transformation will take place as governments execute strategies and reforms in areas including health care policies and regulations, investments in Mr. Janson Yap, Regional Leader in Life Sciences and Healthcare, Deloitte Southeast Asia medical facilities and training, incentives for biotech research, and insurance and tax incentives. With the advancements in technology and communication, people have become more demanding when considering health Singapore healthcare at its best. care options. Different governments in the region have implemented different diseases treatment by importing research healthcare approaches in delivering health eloitte Southeast Asia Diseases and Cure for Asia’s and readily available technologies from the care services. In alignment with global Healthcare Industry - Despite developed nations of the west, and applying trends, Southeast Asia is seeing a shift the global downturn, the efficient and low-cost manufacturing from sickness care to health care, where demand for more and better health care is practices in Asia. The ageing the priority is placed on “priority is prevention and wellness. rising sharply across Southeast Asia for the and more affluent population past decade, along with the region’s rapidly will also mean bigger market placed on for degenerative disease growing economies. developing Neuglow Dental by Challenges in Asia’s Healthcare Industry treatments such as artificial integrated Healthway Medical Group today - Adding to the growing need of joint replacements. One can Dental is a multihealthcare Neuglow the healthcare industry, the Economist also expect majority of the disciplinary dental team model.” Intelligence Unit reported the spread of Asian nations to be actively specializing in dental care non-communicable diseases as the leading looking into upgrading their wherein all patients are cause of death in Asia, which is partly a current health care facilities to meet the treated like family with the warm and caring result of progress against infectious diseases. population’s expectations. environment is offering. However, patients’ Healthcare systems, in return, must find The role of the healthcare industry health and safety is still the top priority as a way to deal with these two matters in professionals - Southeast Asia is an the team offers the latest in specialized terms of disease management and patient education. Along with that is the increasing percentage of citizens over 65 years old that will require major preparations to better address the needs of the senior population. The impact of demographical and healthcare reform - The healthcare industry carries a weight of difficulties that include upgrading the facilities to keep up with the consumer demands, acquiring and maintaining the best medical staff, and other issues like change in disease profiles, lifestyle and ageing population. These challenges paved way for new marketing opportunities in the healthcare industry.Pharmaceuticalandmanufacturing companies can now explore more on non-communicable, chronic and lifestyle Dr Poon Kee Hwang, Specialist Orthodontist, Neuglow Dental
In Business and in Health
D
42 SINGAPORE BUSINESS REVIEW | APRIL 2011
healthcare feature >> technology.
is due to the remarkably flat design of the diseases cannot be detected immediately. Patients need not be afraid at Neuglow Dental gold alloy brackets which can be cast and This poses a big challenge to the healthcare clinic. Dr. Poon Kee Hwang trained her staff polished with supreme accuracy and is anti- industry since some of the local population, with the principle, “Treat allergic. especially the men and the older generation, all patients as you yourself are not receptive to this idea. “Treat all would like to be treated”. Asia HealthPartners Dr Chong said: “We need to better According to her, this simple patients as you Escalating healthcare costs understand the health seeking behavior and statement is effective as the are a major concern both in the concerns of this group”. would like many things that people fear The current trend leans on a more balanced to be treated the healthcare industry and – the dreaded drill, the ‘smell’ the local community. While relationship wherein a shared decision yourself” of the place, the space of the healthcare costs in Singapore making is involved. In the modern society, clinic – suddenly become are not entirely borne by the patients make their own choices. They view easy to understand and manage. Dr. Poon government, insurance companies and all this as their right to be well-informed about said: “We use state of the art digital X ray healthcare personnel are fulfilling their part their conditions, as well as the benefits and machines to minimize radiation exposure. in keeping the costs low and affordable. risks of various treatment options. Listening All instruments are autoclave and sterilized Asia Healthpartners, a modern multi- to patients’ feedback will also provide insight to MOH standards.” disciplinary medical centre that combines a to service standard so that overall experience “Patients are engaged actively in the professional team of medical expertise help at the doctor’s office can be improved. treatment planning process from the onset. the community afford quality medical care. “As doctors, we should help patients By understanding their concerns, identifying Dr Chong Yeang Chern, Wellness navigate the information and guide them problems through intra-oral photography Physician and Director of Wellness Centre, towards the correct direction. We should and active discussion; together we arive at Asia Healthpartners, elaborates: “In the era also keep an open mind towards their ideas, a treatment plan that best suits the patient,” of affluent society, ageing population and expectations and concerns”, says Dr Chong. she adds. Eliminating dental phobia is not a one step process. It is a journey and our team works together to walk the patient through it step by step. Patients are now seeking treatment that challenges Dr. Poon’s dental team to provide fast results, flexibility, and invisibility of their braces. Their response to these challenges is to offer a variety of solutions such as Friction-free braces, Invisalign, Incognito Lingual Braces and porcelain veneers. Dr. Poon is the first Orthodontist in Singapore to be certified in the Incognito Braces System. From her experience, she has completed many cases ranging from nonextraction cases, extraction cases and cases with facial skeletal discrepancies that require concurrent corrective jaw surgeries. “Of all the lingual braces system, the Incognito Braces System is the most high tech, advanced and accurate of them all,” she Dr Chong Yeang Chern, Director of AHP Wellness Centre said. declining resident fertility rate, emphasis on Moreover the future of healthcare is Incognito is not just a type of braces. various strategies to prevent closely knitted with IT According to Dr. Poon, it is a system escalating healthcare costs is infrastructure. which follows a detailed planning phase, important”. Asia Healthpartners’ “We should customization-fabrication phase with the Dr Chong believes that all mission is to enrich the keep an open final result in mind. healthcare personnel have quality of patients’ lives mind towards through Dr. Poon said: “The Incognito Lingual a role to play in order to preventive, their ideas, braces are designed with a modular concept. control the healthcare costs diagnostic, therapeutic and Each bracket structure is created by the while ensuring good quality expectations aesthetic medical services. computer and allows individual components of care to patients. “Our Wellness Centre and concerns” of the braces to be positioned independently “I see myself playing an provides evidence based of one another.” important role in public personalized health “This makes the system unique and allows education, inculcating importance of healthy screening services. Specialised tests include absolute customization to the needs of each lifestyle for prevention of chronic medical food and inhalant allergy tests, hair mineral patient,” she adds. diseases and reinforcing need for preventive analysis and hormone analysis. We also offer Patients who have used the Incognito medicine”, she adds. corporate health screening packages at your Lingual braces find that they adapt rapidly Health screening is a vital area of healthcare desired location at competitive rates,” said Dr to speech with maximum comfort. This that should not be overlooked since many Chong. SINGAPORE BUSINESS REVIEW | APRIL 2011 43
PROPERTY
Top residential transactions LOCALITY
PROJECT NAME
OCR WATERFRONT ISLE OCR MY MANHATTAN OCR AUSTVILLE OCR CANBERRA RESIDENCES OCR SUITES @ EASTCOAST CCR LOFT @ STEVENS OCR PRIVE CCR D’LEEDON OCR THE LAKEFRONT RESIDENCES RCR SPOTTISWOODE 18 OCR PALMERA EAST RCR NIN RESIDENCE RCR THE CASCADIA RCR THE INTERLACE RCR LA FLEUR OCR WATERVIEW OCR FLAMINGO VALLEY OCR NV RESIDENCES OCR THE CANOPY CCR THE HOLLAND COLLECTION OCR THE TENNERY OCR SPACE @ KOVAN OCR WATERFRONT GOLD OCR THE MINTON OCR VACANZA @ EAST RCR FLORIDIAN OCR OASIS @ ELIAS RCR THE CAPE OCR VIBES @ KOVAN OCR WATERFRONT KEY OCR POETS VILLAS RCR SILVERSEA OCR ISUITES @ PALM OCR ESPARINA RESIDENCES OCR PAVILION PARK (PHASE 1D) RCR SPOTTISWOODE RESIDENCES RCR VISTA RESIDENCES RCR CLOVER BY THE PARK OCR THE GREENWICH RCR THE SHORE RESIDENCES RCR ASCENTIA SKY OCR SANCTUARY @ 813 OCR THE WATERLINE OCR SUNCOTTAGES CCR CYAN RCR JARDIN CCR ROBINSON SUITES CCR LATITUDE RCR CONCOURSE SKYLINE CCR LOFT@HOLLAND CCR ADRIA CCR LUSH ON HOLLAND HILL RCR PRESTIGE HEIGHTS CCR JIA RCR OKIO OCR CENTRO RESIDENCES CCR THEGREENWOOD (PHASE 5) CCR BELLE VUE RESIDENCES CCR THE GLYNDEBOURNE CCR LOFT @ NATHAN CCR TRILIGHT CCR THE TRIZON Source: Urban Redevelopment Authority
44 SINGAPORE BUSINESS REVIEW | APRIL 2011
DEVELOPER
FCL Peak Pte Ltd CEL-Simei Pte Ltd MaxLee Development Pte Ltd MCC Land(Singapore) Pte Ltd Fragrance Properties Pte Ltd Oxley Concept Pte Ltd Punggol Field EC Pte. Ltd. Morganite Pte Ltd Keppel Land (Mayfair) Pte Ltd RL Developments Pte Ltd World Class Property (Telok Kurau)
Qianjian Realty (Serangoon) Boonridge Pte Ltd Ankerite Pte Ltd Teambuild Properties Pte Ltd Sim Lian (Tampines One) Pte. Ltd FCL Estates Pte Ltd Hong Realty (Private) Limited MCC Land (Singapore) Pte Ltd Lippo Project Pte Ltd Dollar Land Singapore Pte Ltd RP North Pte Ltd FCL Peak Pte Ltd Peak Garden Pte Ltd Hoi Hup Sunway Property Pte Ltd Orwin Development Ltd CES Land Pte Ltd Beauty World Properties Pte Ltd Oxley Assets Pte Ltd FCL Peak Pte Ltd Feature Green Pte Ltd Marina Green Ltd I Development Pte Ltd FCL Compassvale Pte. Ltd. Bukit Batok Development UOL Development (Dakota) Arts Associate Co Ltd Sim Lian (Bishan) Pte Ltd Far East Square Pte. Ltd. Dover Rise/Whitewater Properties Winpride Investment Pte Ltd Sunhuan Construction Pte Ltd Waterline Development Pte Ltd Lucky Realty Co Pte Ltd Kentish Court Pte Ltd YHS Dunearn Pte Ltd 50 Robinson Pte. Ltd. Phoenix Realty Pte Ltd Hong Fok Land Ltd Oxley Star Pte Ltd Jumbo Valley Pte Ltd SP Holland Hill Pte Ltd Fragrance Land Pte Ltd SDB Asia Pte Ltd Tiara Land Pte Ltd Eunos Link Technology Park Ltd Golden Development & Astoria Park
Winquest Investment Pte Ltd Copthorne Orchid Hotel Singapore Oxley JV Pte Ltd Pacific Rover Pte Ltd Ideal Homes Pte Ltd
PROPERTY TYPE Non-Landed Non-Landed Exec Condo Non-Landed Non-Landed Non-Landed Exec Condo Strata-Landed /NonLanded
Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Exec Condo Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Strata-Landed Non-Landed Non-Landed Exec Condo Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Strata-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed Strata-Landed Non-Landed Non-Landed Non-Landed Non-Landed Non-Landed
TOTAL UNITS NO. OF LAUNCHED UNITS IN IN THE PROJECT MONTH 561 350 301 150 540 0 320 0 116 116 44 44 680 0 1715 150 31 629 0 251 32 32 69 219 0 536 250 1040 0 58 0 696 0 393 0 642 0 406 11 26 0 338 0 140 0 361 0 1145 0 473 0 336 0 388 76 76 0 36 0 437 20 40 0 383 0 64 0 573 8 37 31 351 0 280 0 616 0 319 0 408 4 373 0 23 7 103 0 23 0 278 18 140 0 167 0 127 122 360 0 41 0 105 8 56 3 154 0 22 97 104 0 329 0 54 0 176 0 150 31 121 0 205 0 289
MEDIAN UNITS PRICE SOLD ($PSF) IN IN THE MONTH THE MONTH 997 282 1219 69 721 63 819 59 1438 56 1960 43 689 41 1567 38 1053 34 2230 32 1255 31 1291 29 1460 26 1126 25 1150 23 854 17 1296 15 850 15 640 15 1621 14 1207 14 1098 14 968 14 848 14 1102 13 1800 11 782 11 2001 10 1312 10 1052 9 634 9 1672 8 993 8 770 8 747 8 2115 7 1390 7 925 7 1213 6 1380 5 1304 5 1119 5 1076 5 844 5 2211 4 1912 4 2839 3 2233 3 1935 3 1830 3 1670 3 1587 3 1501 3 1480 3 1474 3 1441 3 989 3 2616 2 1957 2 1926 2 1840 2 1767 2
co-PUBLISHED
An Exceptional Dental Care
The new Incognito braces by Neuglow Dental
D
r. Poon Kee Hwang talks about the Newest discovery in the braces system.
First in Singapore As an Orthodontist, I often meet patients who are unhappy with their smile but seem resigned to their fate of not having straight and beautiful teeth. ‘’Why?’’ I ask and the reply often is, ‘’ I am already working, I meet clients all the time, I can’t be seen wearing braces. Its unprofessional!’’ or ‘’ I have asked about Invisalign treatment. I am not a suitable candidate because my smile needs extractions to correct.’’ One patient exclaimed. ‘’ Did you watch the episode of Sex and the City where Miranda had ceramic braces and food got caught everywhere during her hot date? I can’t go through that!’’ Similar frustrations to an age old problem of straightening teeth the INVISIBLE way. I then introduce this idea. What if there is a braces system that is hidden behind your teeth. It can’t be seen when you smile and talk. It can be applied to extraction cases, crooked teeth cases, smile with lots of gaps, ‘under-bite’ cases, for teeth that stick out and even cases that require jaw surgeries to straighten the face? The braces are fixed to the back of your teeth and are working to straighten your smile 24/7. Basically all the time and not just those times that you remember to wear the aligners. Treatment time is fast and you need not worry about food getting stuck for the whole world to see. Patients suddenly perk up, a twinkle en-
ters their eyes and they want to know more. Lingual braces are Hidden braces behind your teeth. This concept is not new. Just like basic telephone land lines that have been around for a really long time. From this foundation, add onto it the latest in technology and you get the birth of the newest iphones and android phones. The difference? Efficiency, convenience and we have never looked back! Of all the Lingual (hidden) braces currently available, the Incognito System is the most advance, accurate and precise. • Incognito is not just a type of braces, it is a System! • It follows a detailed planning phase, customization-fabrication phase with the final result in mind. • Incognito Lingual Braces are custom-made, using the latest prototyping machines and are suitable for all types of malocclusions, including braces for orthognathic (jaw) surgery. • Incognito braces are designed only for your teeth and it is a PERFECT fit. • Both the brackets and the wires of the Incognito appliance are manufactured individually with the latest state of the art CAD/CAM technology.
“What if there is a braces system hidden behind your teeth? It can’t be seen when you smile and talk... Treatment time is fast, you need not worry “
The remarkably flat design of the brackets provides maximum comfort and rapid adaptation to speech. Gold alloy is used. It is chosen as gold is a metal that can be cast and polished with supreme accuracy and is anti-allergenic. The Incognito Lingual braces are designed with a modular concept. Each bracket structure is created by computer and allows individual components of the braces (base, bracket body, slot) to be positioned independently of one another. This makes the system unique and allows absolute customization to the anatomical needs of your teeth and smile. Therefore the advantages of the Incognito Braces system are: • Invisibility • Allows all types of smile problems to be treated • Incognito has the flattest and slimmest lingual braces design for comfort • As a braces system, it is highly accurate; giving fast and precise tooth movement Suddenly, the patient smiles back at me and looks hopeful. ‘’There is a way out after-all!’’ I am honored to be part of this journey with them. Personalized Treatment, Best Results A multi-disciplinary dental team specializing in your dental care! At Neuglow Dental, all our patients are treated like family. We believe in listening to your concerns and understanding your problems – no matter how big or small.
Dr Poon Kee Hwang, Specialist Orthodontist
CONTACT TripleOne Somerset 111 Somerset Road #02-02 Singapore 238164 Contact: 6732 2237 Enquiries: dentalsomerset@neuglowdental.com Website: www.neuglowdental.com
CHRO BRIEFING
turnover. “Besides a fair and competitive compensation and benefits package, we ensure that employees who excel will experience a sense of progression and fulfilment in terms of their professional as well as personal development. We also emphasise the importance of having people managers who know how to bring out the best potential in every individual. We work closely with our talents, helping them on a self discovery process on their own strengths and gaps. It is a winwin strategy for the individual and organisation if the former succeeds and decides to have a long-term plan with the company,” says Chan Hoi San, Head of human resources, StarHub Singapore.
Career development can help employees to do their jobs more efficiently
STAR WARS: don’t use the force
In a talent-short market, where hawk-eyed poachers are always ready to steal the best boys, how do you equip your human resource function with strategies that keep them from walking out of the door for a few dollars more?
A
ttrition matters. If you are losing some of your critical employees to the employer across the street, you can safely bet that this phenomenon is not restricted to top performers alone. Exit interviews with departing staff will reveal that something is amiss in your own organisation, thus driving key performers away. Like all other tangible business objectives, the health of an organisation needs constant monitoring and timely intervention. Most importantly, you should be able to assess the pulse of the employees and distinguish the factors that motivate them to stay, from the ones that do not. However, be cautious, one size does not fit all. For instance, whilst some talent seek career growth in a systematic and methodical upward graph, many others prefer change and are motivated to take on tasks that will facilitate their advancement. In addition to providing hygiene factors such as a fair and competitive compensation and benefits package, a key retention strategy would be to identify the diverse needs and goals of the individual talent and create a work environment that is conducive to highproductivity, employee satisfaction and hence, lower 46 SINGAPORE BUSINESS REVIEW | APRIL 2011
“
what is in it for me?
Career Development Needless to say, top performers expect a clear visibility in their career development. They are interested to know what kind of learning and development opportunities and options are available. Therefore, it is important for organisations to chart out a clear development plan. “Let top performers know exactly what they need to do to progress and move to the next level. Managers must be transparent about the plans and be able to manage their expectations,” Gina Kuek, Senior HR Manager, Asia Pacific, Frost & Sullivan, highlights. Moreover, consistent learning helps retain staff, agrees Sarah Dempsey, Operational Development Manager, Pret-A-Manger, Hong Kong. “When people are learning and moving up the career ladder, it helps retain staff. Seventy per cent of our store managers are internally promoted.” However, apart from formal learning and management training programs, organisations can also democratise learning and teaching and customise it to the need and interest of the employee. Google, for instance, has a Googlers teaching Googlers (G2G) program where employees can sign up to teach a class on anything from how to code in Python to how to write a good stand-up comedy act. The organisation also takes care to develop the whole person, and not one that is just focused on ‘traditional’ leadership training, through its School of Personal Growth, part of an internal learning and development initiative called Google University, whose classes focus on mindfulness, knowing oneself, and emotional intelligence, a Google spokesperson from Singapore shares. These innovative strategies definitely go a long way in making Google an employer of choice. Furthermore, an effective reward and recognition system with a flexible remuneration to match with the dynamic market could be a motivator strong enough to prevent or reduce attrition, industry experts say. “Non-monetary rewarding or benefits system for top performers are also important to retain good performers. The company could look after the well being of individual’s needs when needed,” says Eunice Ng, Director, Pacific, Avanza Consulting, Hong Kong.
OPINION
OPINION
Rohit Dadwal ROHIT DADWAL Managing Director, Mobile Marketing Association Asia Pacific
G
lobally, 2011 is said to be the year of the smartphone. Although adoption rates have seen continuous growth across the world, cheaper devices and subscription plans will ensure a very significant increase in smartphone penetration. As consumers switch to more sophisticated devices the world over, marketers continue to see an opportunity for innovative mobile campaigns to engage consumers. Although Singapore is a smaller market compared to the US, smartphone adoption in the country is remarkably similar to that of the bigger global markets outside of the Asia Pacific (minus Japan). A technological forerunner in the Asia Pacific region, Singapore is a place where consumers can be connected with on their smartphones at scale through immersive mobile experiences. According to Informa Telecoms & Media, global mobile advertising revenue will rise tenfold to about $24.1 billion by 2015. Much of that growth will come from China and India. Mobile advertising is no longer just an emerging market; it has quickly grown into a major advertising medium. Informa also estimated that the global mobile data services market, including mobile advertising, was worth $224 billion in 2010. This market is set to increase to $340 billion in 2014. In InMobi’s recent A Global View of Mobile Advertising: January 2011 report – Asia Pacific market, the total ad impressions from smartphones represent 23% of all impressions in the region. Although this percentage in the Asia Pacific continues to grow, the dependence on smartphones in Singapore is almost four times the Asia Pacific numbers. Up to 91% of all mobile ad requests in Singapore on the InMobi network came from Smartphones - a staggering difference between Singapore and the rest of the region.
Singapore gets smart in Singapore based on InMobi’s network data. Coming in second and third in the local market were Android and RIM OS with 14.4% and 5.7% of impression share, respectively. The quick adoption/ dominance of newer operating systems in the country is a testament to its tech savvy populace making it an ideal market for mobile innovation and outreach.
How does this affect Singapore? As mobile continues to grow in Singapore, several new technologies are being introduced and will be seen gaining pace. The proliferation of GPS phones with digital compasses has already given rise to a series of location-based augmented reality (AR) software platforms and applications. The combination of AR with location-based services (LBS) allows for graphic content related to the position of the user to be overlaid in real-time onto camera images taken by the phone. 3D technology is being incorporated in any and every gadget available in the market today. Probably the biggest announcement at the Mobile World Congress this year was of the LG Optimus 3D Phone and the LG Optimus Pad. It’s certainly been the most eagerly anticipated. The technology will lead to the development of new content and advertising avenues. The penchant for technology adoption also ensures plenty of competition between the different OSes, thus ensuring an ever-changing and improving smartphone market. While “The mobile industry in Singapore Apple is still in the lead in Singapore, its continues to be one of the most exciting in impression share has been affected by strong competition from both Android and RIM the region.” OS. The adoption of newer technology tends to be With new mobile technology in the line-up and a quicker in Singapore than in the rest of the region. strong consumer adoption rate, the mobile industry For example, Nokia (29%) and Symbian (22%) in Singapore continues to be one of the most exciting operating systems (OS) are the leaders in the Asia in the region. It is impossible to predict exactly how Pacific market while Android (5%) and iPhone OS the next five years will go for mobile in Singapore, but (11%) figures add up to only about half of Nokia’s looking back at how quickly it has evolved, we can hold in the region. imagine that more consumers will soon hold their In comparison, the iPhone OS holds a 69.6% share entire lives in the palm of their hands.
Getting Mobile
SINGAPORE BUSINESS REVIEW | APRIL 2011 47
LIFE & STYLE
The kindest cut
An essential part of any grooming routine is a good haircut and a smooth shave. Concierge experts Quintessentially recommend two salons in SG and two in Hong Kong for the ultimate gentleman’s pampering experience. D’hair Workshop
York Hotel, 21 Mount Elizabeth, Singapore D’hair Workshop is a reputable salon for those in search of a quick trim or a new hairstyle. Located in the York Hotel, this low-key spot is also the salon of choice for a few Quintessentially Members. The Barbershop
Shangri-la Hotel, 22 Orange Grove Road, Singapore The barbershop is just what you would expect from the Shangri-La: a Singapore landmark and one of the few really good salons in the city that also offers a classic wet shave. The Barber Shop
1/F, 15B Wellington Street, Central, Hong Kong This is a true, old-fashioned barbershop. Warm, inviting and decorated with dark woods, when we visited at 4pm on a recent weekday, almost every seat was full with office gents in the middle of being groomed. Even the smell itself is authentic – a dash of Brylcreem and a splash of shampoo. The building is rather ratty and hidden down a small alley off Wellington Street (opposite Yung Kee restaurant) but the barbershop itself is definitely a diamond in the rough. Visage One
LG/F, Po Lung Building, 93 Hollywood Road, Central, Hong Kong Benky is the owner, hair stylist and proprietor of this one-seat hair salon, jazz and artist’s studio. Specialising in cutting and colouring hair, Benky adopts a naturalistic approach that takes into account his customer’s personality. If you’re looking for something more stylish than a generic “short back and sides”, then Benky is your man.
You call that a knife? 48 SINGAPORE HONG KONG BUSINESS BUSINESS REVIEW | APRIL|2011 APRIL 2011
Recommended by QUINTESSENTIALLY, the world’s leading luxury lifestyle group with a 24-hour global concierge service. Contact hongkongbusiness@quintessentially.com.
.BZ TU )JMUPO )PUFM 4JOHBQPSF
Speakers and Panelists: · Mr. Callum Bir, Director for Healthcare & Life Sciences Practice lead for SE Asia, Deloitte Consulting · Mr. Rudi Papsch, Managing Director, GFK Healthcare Asia · Dr Mahendran Maliapen, Academic Informatics Director, National University Health System · Dr Hwang Chi Hong, Director for Medical Affairs, Alexandra Hospital · Dr Chong Yoke Sin, CEO, Integrated Health and Informations Systems · Prof TAN Ser Kiat, Group Chief Executive Officer, Singapore Health Services · Mr Bernie Poh, Deputy CEO, Pacific Healthcare Holdings · Mr. Simranjit Singh, Director for Strategic Planning Asia, Quintiles East Asia Pte Ltd · Dr David Teo, Medical Director for Singapore & Malaysia, International SOS · Mr Leigh Berryman, Chairman, BioSingapore and CEO, Maccine Pte Ltd. · Mr T K Udairam, CEO, Changi General Hospital
For more information about speaking and sponsorship opportunities or to register email julie@charltonmediamail.com
Full day Conference Pass
Register until April 15 US$795 Register from April 16 onwards US$995 SINGAPORE BUSINESS REVIEW | APRIL 2011 49
Last word Dimitri Tsamados
Ready for your next leadership post in Asean? Singapore is the next hunting ground for C-level executive talents in SEA markets. Singapore-based senior executives stand to gain from robust growth in demand for Managing Directors, Country Mangers, Chief Operating Officers, Chief Financial Officers, Chief Human Resources Officers and Chief Marketing Officers in neighboring Asean countries. Several factors point to a movement of senior talent beyond Singapore’s borders. Firstly, the balance of foreign direct investment flows is expected to shift from China towards Asean and the rest of Asia, according to a recent research note from Macquarie Securities. Companies from Japan and South Korea especially, have begun to diversify from China and towards South-east Asia and elsewhere, possibly as a result of higher labour costs and reduced tax incentives. We have also witnessed this trend at CTPartners where requests by the firm’s global clients to fill senior level positions in places like Indonesia, Malaysia, Philippines and Thailand, have indeed tripled in the last 12 months, as compared to the previous five years combined altogether. While China was, and continues to be a key location, more companies are turning to South East Asia in search of fresh opportunities after they have set up and stabilized their China operations. After entering the greater China market for example, Google has just now recruited a head for Malaysia and is recruiting
“Business leaders need to possess the strategic vision to address a global marketplace and bring their organizations to their next phase of growth.” a head for Thailand and a head for Indonesia. After all, countries in South East Asia promise growth rates that are triple or quadruple that of mature markets in terms of real GDP over the long term. This shift towards building leadership benches in Asean countries is further supported by a global study of 700 chief human 50 SINGAPORE BUSINESS REVIEW | APRIL 2011
resource officers (CHROs) and senior executives by IBM that states that 63% of Asean companies surveyed intend to increase investment in leadership development (compared to 33 per cent for mature markets). Conducted between November 2009 and April 2010, the study also goes on to say that companies will be focusing on growth over improving operational efficiency over the next three years, with 44% of Asean companies saying that ‘expanding into new markets or geographies’ is an important priority in the short term. Before one makes the leap however, executives who are used to how things work in Singapore should remember that they will only succeed if they are adept at functioning within a developing marketplace. So if a leadership position in Thailand, Malaysia or Indonesia piques your interest, make it a point to understand and respect the important local business traditions that often vary along national borders, beyond what you may have understood from just visiting as a tourist from Singapore. Regulatory statutes, too, can be complex and vary tremendously from Asean country to Asean country. And in situations where there is government involvement in business matters, executives from Singapore should demonstrate a respectful and successful working relationship with government officials. Among the other basic leadership attributes to be expected from Singapore-based candidates are broad-based market intelligence, expertise in corporate governance and organizational structure and the inspirational leadership skills that are necessary to drive expansion and change. Business leaders need to possess the strategic vision to address a global marketplace and bring their organizations to their next phase of growth, whether based out of Singapore or another Asean country. Dimitri Tsamados Partner CTPartners
3KDUPDWRQ &DSVXOHV (QKDQFHV <RXU 3K\VLFDO DQG 0HQWDO :HOO %HLQJ
'RHV LW RIWHQ VHHP WKDW WKH KDUGHU \RX ZRUN WKH OHVV WLPH \RX UHOD[" 7DNLQJ FOLQLFDOO\ SURYHQ 3KDUPDWRQ &DSVXOHV GDLO\ FDQ KDYH \RX IHHOLQJ PRUH HQHUJHWLF LQ D PDWWHU RI ZHHNV ,I WKH SUHVVXUH LV RQ DW ZRUN \RX KDYH \RXU KDQGV IXOO ZLWK D \RXQJ IDPLO\ RU DUH FRSLQJ ZLWK \RXU ILQDQFHV LW LV HDV\ IRU \RX WR IHHO VWUHVVHG DQG WLUHG <RX NQRZ WKDW HDWLQJ KHDOWKLO\ DQG UHJXODUO\ GRLQJ VRPH H[HUFLVH DQG JHWWLQJ D JRRG QLJKW¶V VOHHS ZRXOG KHOS EXW \RX VLPSO\ GRQ¶W KDYH WLPH 6RXQGV IDPLOLDU"
3KDUPDWRQ &DSVXOHV LV D ZHOO EDODQFHG IRUPXODWLRQ DQG LWV DFWLYH *LQVHQJ * LQJUHGLHQW KDV KHOSHG WR VLJQLILFDQWO\ ERRVW WKH TXDOLW\ RI OLIH LQ KHDOWK\ LQGLYLGXDOV
7KH FOLQLFDO HYLGHQFH FRQILUPV WKDW 3KDUPDWRQ &DSVXOHV FDQ LPSURYH WKH TXDOLW\ RI OLIH RI LQGLYLGXDOV ZKR WDNH LW
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
3KDUPDWRQ &DSVXOHV DJDLQVW WLUHGQHVV DQG GDLO\ IDWLJXH $VN \RXU 3KDUPDFLVW $OZD\V UHDG WKH ODEHO ,I V\PSWRPV SHUVLVW VHHN PHGLFDO DGYLFH 9LVLW XV DW ZZZ IDFHERRN FRP 3KDUPDWRQ 6* IRU IUHH VDPSOHV 5HSULQWHG IURP 3V\FKRO +HDOWK SS /H *DO 0 &DWKHEUDV 3 6WUXHE\ . 3K\WRWKHU 5HV
HONG KONG BUSINESS | FEBRUARY 2011 0DUDVFR & 9DUJDV $ 5XL] 5 9LOODJRPH] 6 %HJRQD $ ,QIDQWH & 'UXJV &OLQ 5HV
52