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Singapore's franchising fairytale Franchising and licensing are fuelling dreams of global expansion, but is ittoo good to be true?
Singapore’s IPO market falters Department store exodus
leaves malls reeling
Property market
headed for a rebound
Singapore’s Plus:
mid-life crisis Interviewwith
Discovery Channel’s CCO MICA(P) 244/07/2011 KDM No: PPS1645/3/2008
+rankings MBA Programmes MBA Providers Hotels
FROM THE EDITOR About Us
If you think your favorite department store just pulled out of the mall nearest you, you’re right. Malls in Singapore are left scrambling for new tenants as department stores leave thousands of square feet vacated. Find out what industry experts think of this alarming trend in one of our reports.
The Singapore Business Review is the highest circulating and best read business magazine in Singapore with a circulation of 24,688 copies audited by the Audit Bureau of Circulations Singapore. Our online readership is an average of 215,000 monthly unique viewers according to Google Analytics. Do reach out to us if you would like us to tell your story to our readers via print & online advertising or events. Publisher & EDITOR-IN-CHIEF Tim Charlton production EDITOR Roxanne Primo Uy ADVERTISING CONTACTS RochelleRomero rochelle@charltonmediamail.com Rizelle Rojo
We are releasing the second edition of our much-talked about rankings of Singapore’s largest MBA providers and programmes. INSEAD has once again topped SBR’s ranking, followed by the National University of Singapore.
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We also looked into the franchising and licensing industry in Singapore and found out that this business model has grown in the past few years. Instead of betting it big on creating new brands, more entrepreneurs are finding the idea of franchising more convenient, if not lucrative. In this issue, you will also find an exclusive coverage of our recently held International Business Awards and the inaugural Listed Companies Awards. Take a look at our photo gallery to reexperience the event. Enjoy!
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SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 1
CONTENTS
CoVER STORY
24 Reality check on Singapore’s franchising fairytale FIRST
REGULAR
12 Singapore banks start to sweat as
14 The 12 most influential business
09 Singapore’s “mid-life crisis”
exacerbated by higher inflation
10 Property market finally headed
for a rebound
Published Bi-monthly on the Second week of the Month by Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building 2 Singapore SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 069533
22 Financial Insight
asset quality slowly deteriorates
08 Salary vs bonus 09 The Chartist: Income inequality
18
interview discovery channel goes back to its roots
FIRST
08 Massive store exits leave malls reeling
38
event coverage International business awards and listed companies awards 2015
professors aged 40 and under
16 Startup Watch
RANKINGS 28 How the Singapore MBA unlocks
global opportunities
34 Why 2015 will see increased
competition among hotels
For the latest business news from Singapore visit the website
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News from sbr.com.sg Daily news from Singapore most read
RESIDENTIAL PROPERTY
COMMERCIAL PROPERTY
retail
Private home prices will finally hit bottom in Q4: report
The sun is setting on Singapore’s high-yielding S-REITs, analysts warn
Suntec City’s leasing woes are far from over, analysts warn
This forecast by PropertyGuru is hinged on the fact that transaction volumes have plateaued in the first two quarters of the year while prices have flat-lined in the first half of the year. “There is a strong likelihood that [prices] will stabilize in the next six months to arrive at a ‘bottoming-out’ point. Private property prices will contract by an additional 2 to 4 percent in the second half of the year.”
According to OCBC, over the last seven years of ultra-low rates, investing in S-REITs has been fruitful for many. However, against the backdrop of rising rates and declining sector DPU growth, OCBC foresees significant headwinds for the S-REITs sector ahead. The sector’s already muted DPU growth is forecasted to fall from 3.8% yearon-year toward the end of FY15 to just 2.2% toward the end of FY17.
The end is not yet in sight for Suntec City’s leasing woes, particularly in light of Singapore’s struggling retail scene. Suntec City Phase 3 has achieved passing rents of $12.12 per square foot per month, which is below the REIT manager’s target of $12.59 psf per month. “Despite the opening of Phase 3, we note that leasing activity has been slow for the refurbished mall,” says RHB Research.
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co-published Corporate profile
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e are living in the time of gamechanging news and a vast non-stop flow of information, which we are carefully monitoring every day. Someone follows sports events, some people are particularly interested in politics. However, financial and economic news are widely accepted to be the top priority. Somebody wonders, “Why should I be aware of crises, IMF bailout loans, expansion or contraction of China’s factory output, oil dynamics, and similar things irrelevant to my daily routine?” Is it so important to know trends in the global economy? Or is it wise to know in advance about a looming crisis or recession? Perhaps, it makes sense. Do you know there are at least several millions or even hundred millions of people in the world who earn big money using knowledge which is common nowadays? Indeed, they make good use of financial and economic news. These people are stock and currency traders. As their activities require, they should have their finger on the pulse of global finance. Moreover, they have to be alert to all developments and respond promptly to news by making their trades. In essence, making good trading decisions largely depends on exact financial information provided on time.
importance is to pick a reputable broker before you start trading. To gain decent profits, it is essential to meet at least one of the three conditions: to have experience in trading, to have skills in technical analysis, or to be an expert in fundamental analysis. In fact, it is hardly possible to trade and at the same time to search for relevant information through a myriad of web resources. For traders who prefer fundamental analysis or make trading decisions on the grounds of news, InstaForex provides the best opportunity to earn on the market. InstaForex is a world leader providing first-class and reliable brokerage services. Moreover, it is a real informative hub containing a great deal of information such as news updates, surveys, and exclusive analytical reviews. You do not have to switch your mind from trading to checking news to make decisions. InstaForex will give you both. Vast informative and analytical resources available with InstaForex are a great solution for trading on Forex and monitoring news. Being a client of InstaForex, every trader gains instant access to exclusive information updated online, analytical outlooks and reviews posted every 10 minutes as well as InstaForex TV, a special Forex channel broadcasting new releases on a daily basis.
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SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 7
FIRST Salary vs bonus
Majority of Singapore’s skilled professionals are choosing to let their work speak for itself. More Singaporeans are growing confident of their work, opting for more thorough performancebased bonuses even if it means giving up a bite off of their monthly salary. Out of 530 Singaporeans polled by Hays, 46% said they were even willing to endure as much as a 20% salary cut for a bonus based on their performance. Seventeen percent said they were willing to take an even bigger cut. However, not all Singaporeans are fans of foregoing a fraction of their monthly salary as 37% of those polled rejected the idea of taking a pay cut for a bonus. Christine Wright, managing director of Hays in Asia, believes that longing for performancebased bonuses stems from the fact that Singaporeans are very confident about their work. “Skilled professionals in Singapore are very confident in their own capabilities and their capacity to achieve high results.” Employees for keeps Wright also believes that a good compensation package would be attractive to employees and would increase the chance of keeping them in the long run. She adds that performancebased bonuses create a win-win situation: Motivation for the employees to achieve top results and pushing the employers’ teams to work at peak efficiency. Wright, however, added that communication must be clear between the two parties in order to achieve the desired results. “Communication is essential to make sure both sides are fully aware of the objectives that need to be met in order for performance-related bonuses to be awarded,” she says.
8 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
More stores threaten to pack up
Massive store exits leave malls reeling
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hen the iconic Isetan department store pulled out of Wisma Atria earlier this year, it dealt yet another blow to Singapore’s already sickly retail barometer. Isetan joined a growing list of department stores that have closed or plan to close their Singapore branch, leaving mall owners scrambling to find replacement tenants. But the task is a tall one considering how the departure of department stores is leaving thousands of square feet of vacated space in its wake. Along with Isetan, John Little closed its Marina Square store in the second quarter of 2015 and will also say goodbye to its Tiong Bahru store later this year to focus on other outlets. Likewise, Marks & Spencer will cease to operate its Centrepoint outlet and Metro will close its Compass Point store by the third quarter of 2015 after more than a decade of operation. “These shake-ups are part of a wave of department store changes, with Parco having closed its branch at Millenia Walk in first quarter of 2014 and Robinsons Centrepoint having opened its new 180,000 sq ft flagship store in The Heeren and first suburban store in JEM after its exit from Centrepoint in May 2014,” says
Mall owners and department stores will also have to work hand-inhand to figure out a new game plan amid lower numbers of tourist arrivals.
Heidi Yong, head of retail services at Knight Frank Singapore. As more department stores threaten to pack up, Singapore mall owners are challenged to come up with more lucrative offers and leasing arrangements in order to retain these valuable crowd-drawing tenants. “They serve as magnets to different sections of a mall, distributing footfall throughout various parts of a mall. Department stores are also a good test bed for brands looking to enter the market. It is critical for landlords and department store operators to develop win-win partnerships and innovative concepts and solutions in the softer retail market to ensure mutual sustainability,” says Yong. Mall owners and department stores will also have to work handin-hand to figure out a new game plan amid lower numbers of tourist arrivals and tourist spending in Singapore and the increasing importance of wooing locals as part of an offsetting strategy. A BMI Research report asserts that “the disappointing sales figures have been attributed in part to falling tourist numbers. However, another contributing factor to the drop in sales can be attributed to an outdated approach to demands of local consumers.” The report explains that traditional department store formats, which have hinged on attracting tourists primarily, no longer provide considerable appeal to more sophisticated local consumers. “The most successful players in the department store format over the long-run will be those that best understand the changing tastes of Singapore’s important consumer groups,” says BMI Research.
Upcoming major retail space by year and region
Source: REALIS, Knight Frank Research
FIRST Singapore GDP growth, 2010-2015
Source: DBS Group Research
What’s hampering Singapore growth?
Singapore’s “mid-life crisis”
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hen the Singaporean government unveiled the line-up of celebrations expected to take place this year for the country’s 50th anniversary, the general economic mood was expected to be no less than positive. But on the contrary, Singapore’s economic outlook is looking worrisome as several internal and external economic woes threaten growth this year. “Uncertainties in the global economy and domestic restructuring continue to weigh on growth. The labour crunch has further compounded the problem,
limiting companies’ ability to grow,” says Irvin Seah of DBS. As a result, the numbers are already looking grim for the remainder of the year. “We downgrade our GDP growth to 2% (from 2.5%) in 2015 and 2.2% (from 2.8%) in 2016,” says Hak Bin Chua, ASEAN economist at Bank of America Merrill Lynch. Weak growth from regional neighbours such as Indonesia, Malaysia, and Thailand have contributed to Singapore’s poor growth prospects, Chua says. But most worrisome to Singapore’s growth is the region’s economic superpower, China. “China’s
Weak growth from regional neighbours such as Indonesia, Malaysia, and Thailand have contributed to Singapore’s poor growth prospects.
economic slowdown, coupled with the recent equity market rout and sluggish real estate sector, could have a lasting impact on Singapore given that it is Singapore’s largest export market,” notes Seah. Meanwhile, the government’s crackdown on foreign labour via quotas seems to have backfired on the economy. Hozefa Topiwalla, head of ASEAN research at Morgan Stanley, hints that more relaxed immigration policies would likely reverse the impending growth slack. “With the reality of a growth slowdown setting in, questions have been raised as to whether policymakers could revert to the aggressive immigration policy of the past in a bid to resurrect growth, once elections are over. Adoption of a net zero immigration policy is not economically realistic, but a structural slowdown of the immigration policy is likely here to stay,” Topiwalla says.
The Chartist: Income inequality exacerbated by higher inflation The commoditization of labour across borders brought local wages closer to global levels but what this means, according to Morgan Stanley, is that whilst wages have been lifted for the highly-skilled, wages for the lower-skilled has been depressed amid the influx of cheap labour. Morgan Stanley adds that amid the blistering growth seen in Singapore from 1965 till the 2000s, income inequality has widened with Singapore’s Gini Coefficient standing at 46.4, higher than many other economies with a similar level of GDP per capita. “The income inequality is exacerbated by higher inflation. Singapore’s inflation, which has mostly been below global inflation, trended up to the latter.”
Inflation typically more subdued than global trends
Source: World Bank, CEIC & Morgan Stanley Research
High growth coincided with high income inequality in Singapore
Source: World Bank, various national statistics departments & Morgan Stanley Research The scatterplot includes Japan, Hong Kong, China, ASEAN5, India, Korea, Vietnam, US, UK,Italy, Spain, Greece, Switzerland, Netherlands, Germany, Finland, Denmark, Iceland, Norway and Sweden.
SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 9
FIRST
Property market finally headed for a rebound
Survey
CASH-RICH JETSETTERS
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fter languishing for several quarters on back of crippling cooling measures, analysts now expect that Singapore’s property market is finally headed for a rebound with the government likely to lift some measures within the next 12 months. UOB Kay Hian analyst Andrew Chow says that selective easing is on the cards as prices have retreated 6-9% from their peak. “We see the potential for selective easing of property cooling measures Expect selective easing in 1H16 in 1H16 as physical property prices have retreated by 6-9%. However, we debt service ratios are unlikely to be do not expect prudent measures such changed,” they state. as total debt servicing ratio (TDSR) to Barclays analyst Patricia Song notes be changed,” Chow notes. that a selective easing is likely to be targeted at the battered high-end Reasons behind potential easing residential market. Apart from lower prices, UBS analysts “The ministers have publicly said Cheryl Lee and Louis Chua believe that the Total Debt Servicing Rathat measures will be eased because tio (TDSR) will be permanent as it sales volumes have moderated drasti- encourages financial prudence. We cally in the past quarters. believe ABSD and Sellers Stamp Duty “In Singapore, we anticipate that (SSD) will likely be eased or taken easing of property cooling measures off. If the ABSD measures were to be will commence soon – we remain unwound, or reduced from the curhopeful of a positive catalyst on this rent 15% for foreigners to 5-10%, the front in H215. We believe measures luxury home market could benefit the related to stamp duties could be most from the return of this group of relaxed although measures relating to foreign buyers,” she says.
A selective easing is likely to be targeted at the battered high-end residential market.
Mobile App Watch
Hassle-free booking made possible by Page Advisor Billing itself as Southeast Asia’s first real-time mobile commerce marketplace platform for home and lifestyle services, Page Advisor allows users to book the services of several providers and cut through the hassle of manually searching for people just to get a small job done. “Our goal was to make it much easier and quicker for people to obtain local services,” says Fabian Lim, Page Advisor’s founder and group CEO. Through Page Advisor, users simply have to choose the required service, answer a few questions and fill in the job’s schedule. Details of the job request will then be sent through the app to the appropriate merchants, and users can expect to receive multiple quotes within minutes. Payments are made in-app by credit card upon confirmation of a job, doing away with the need for cash or cheque payments to be made when the job is completed. 10 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
Wealthy Singaporeans are more active globetrotters than their peers in the Asia Pacific, and they plan to travel even more in the coming months, according to the Visa Affluent Study 2015. The country’s rich made an average of 3.1 trips in 12 months, matching the Chinese affluent and passing Hong Kong’s (2.8) and India’s (2) in the same period. The average affluent Singaporean is 37 years old and earns 150,000 dollars, one of the highest average incomes in the Asia Pacific. Meanwhile, two-thirds of Singapore’s affluent are married-the second lowest proportion in the region. The study suggested that 81% of Singapore’s affluent travelled for family bonding, while 46% reported that they went on a luxury getaway in the last 12 months. Big spenders The Singapore rich didn’t skimp when it comes to lodgings as 35% reported staying at a fivestar hotel while 49% chose to lodge at upscale hotels. Visanet data also mirrored the Singapore elite’s love for travel, as Visa Infinite cardholders spent close to 20% in travel-related expenses and chose to spend twice as much on travel as they did on dining—the highest proportion in Southeast Asia. “Singaporeans love to travel and the research findings reaffirm that the affluent in Singapore are consistently seeking luxury experiences and services when they venture abroad,” the study said. Shopping (45%) and relaxing at beaches/resorts(43%) are the top considerations when Singaporean affluent choose their destinations.
co-published Corporate profile
MDIS: International education, right at home In partnership with the University of Sunderland (UK), MDIS provides working professionals with the best in international management education.
W
hen Thio Simin wanted to learn about the business side of the hospital and healthcare industry, her desire to learn more brought her to the Management Development Institute of Singapore (MDIS). “I was fortunate enough to be given the opportunity to pursue my passion in Medicine, graduating from the National University of Singapore’s Yong Loo Lin School of Medicine after 5 years,” says Simin, a doctor and house officer at Singapore’s Tan Tock Seng Hospital. “While I was thrilled to finally be able to help my patients as part of daily work, I felt that there was so much more to know about the world around me! For example, how does the hospital work? What goes on behind the scenes in the planning, designing and operating of a hospital?” With the support of her family, and with an approved sabbatical from Tan Tock Seng, Simin enrolled in MDIS’ University of Sunderland’s MBA programme. “The modular nature of the programme creates a well-balanced curriculum where all crucial aspects of a business are covered, from managing finances to human resources, and business operations,” says Simin. With a focus on application-based
teaching methods, the University of Sunderland’s MBA programme builds on students’ previous work experiences, and rather than promoting education based on rote learning via closed book examinations, gives modular assignments that mimic real life working scenarios. “For example,” recounts Simin, “for our Marketing Management module, our assignment was to create a complete marketing plan for a lecturer-approved organisation from scratch; for our Finance module, we took on the role of a financial analyst to advise our fictitious client on whether a particular stock was worth investing in.” “These assignments give us an improved sense how the real world functions, and benefit our learning greatly.” Aside from the core curriculum of the MBA programme, MDIS students are exposed to multiple workshops that inculcate skills and knowledge that are difficult to learn from textbooks. One of the programme’s greatest strengths, aside from its well-balanced modular curriculum, lies in its people and the networking opportunities it provides. “From dedicated lecturers to the classmates from all around the world, I’ve had the privilege of meeting friends from Germany, South Korea, China, India and Myanmar, with varying professional
backgrounds ranging from engineering, finance, to theatrics and even politics,” says Simin. This diversity provides a rich learning environment where students are exposed to unique perspectives through class interactions. The full-time MBA programme from the University of Sunderland can be completed in twelve months, a perfect fit for the schedules of their candidates, mostly professionals in gap years or sabbatical years. Even with rigour of the highly competitive programme, the environment fostered by MDIS is a supportive one. “I enrolled in the MBA programme while I was in my 5th month of pregnancy, and after giving birth, I took several weeks off to recuperate during the second semester of study,” Simin recounts. “During this time, my classmates were extremely helpful in providing lesson updates; my lecturers were also extremely understanding and willingly spent time outside class to clear any doubts I had. Without their support, it would have been undoubtedly more difficult to catch up with classes.” “I am extremely thankful for the support from my family and from classmates and lecturers,” says Simin. “I enjoyed my time in MDIS gaining not just knowledge, application skills, and networking contacts, but lifelong friends and a life-changing experience. I would strongly recommend this MBA programme to anyone who, like me, wants to learn more about the world around them.” About the course The MBA awarded by the University of Sunderland (UK) is recognised internationally. The duration of the part-time course is 18 months. Full-time classes are also available. Tuition fee is S$23,540 and the upcoming intake is on 28 Sep 2015. For more information, check out www.mdis.edu. sg or call 6247 9111 / 6372 1000.
Thio Simin, doctor, Tan Tock Seng Hospital
Management Development Institute of Singapore Reg. No. 201001793H 20 May 2014 to 19 May 2018 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 11
FIRST
Singapore banks start to sweat as asset quality slowly deteriorates
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ompared with regional neighbors, Singapore banks seem to be a step ahead in planning and less likely to crumble when the credit cycle worsens, but analysts have spotted a few cracks in their defensive measures. “As ASEAN’s credit cycle deteriorates, Singapore banks stand out as a relatively safer haven,” says Kenneth Ng, analyst at CIMB. He reasons that Singapore regulators have imposed tough measures to rein in leverage and that local property loans are wellcollateralised, which should limit the level of domestic non-peforming loans (NPLs). But Ng warns that Singapore banks may not be so well protected in the face of a regional slowdown. “We think that Singapore banks will see their ASEAN NPLs edge up as Thai banks’ NPLs have ballooned, Indonesia NPLs have spread from the commodity sectors to manufacturing, and Malaysia’s weak consumer confidence and rising retrenchment portend a steeper rise in NPLs,” says Ng. Asset quality overall remains strong among Singapore banks and should remain stable in the short-term, according to Sharnie Wong, analyst, Asia ex-Japan Banks at Barclays Singapore, given that NPL ratios and credit costs are close to record low levels. But Wong admits that there are pockets of
weakness such as Singapore banks’ onshore China business and DBS’s India mid-cap portfolio. Singapore banks may also have to be wary of a possible upsurge in NPLs as credit costs rise for corporate and households following an expected interest rate increases over the medium-term. Asset quality deterioration is happening slowly but surely, further warns Krishna Guha, equity analyst at Jefferies Singapore. Part of Guha’s caution stems from the recent default trend of Asian corporates and ratings upgrades and downgrades by rating agencies. Data show that the number of corporate defaults is on the rise since 2011 and that the number of corporates experiencing ratings downgrades exceeds those having upgrades. “We are already seeing signs of deterioration in bank credit quality. The proportion of special mention loans for Chinese, Thai and Indonesian banking systems is on the rise. Some of this will eventually migrate to non-performing assets,” says Guha. And while Singapore banks appear to be in a solid position to weather a mildto-medium downturn due to their well maintained general provisioning (GP) levels, loss absorption capacity has deteriorated.
An upsurge in NPLs loom
“The three banks have rock solid GP, with GP to gross good loans exceeding 100 bps and UOB leading the way. Compared to the last cycle in 2004-07 when the ratio declined by about 100-150 bps, GP ratio has remained stable in this cycle. So, banks do have a good buffer against mild to moderate credit downturn,” says Guha. Singapore banks have strong coverage, but Guha warns that should the asset quality downturn become severe, NPL buffers are not that strong.
OFFICE WATCH
Ping-Pong areas at Skyscanner’s quirky HQ
Occupying both the 8th and 9th floor of Robinson Point and spanning across 1540 square metres at Robinson Road, Skyscanner’s Singapore office now doubles as the headquarters of its Asia-Pacific operations. Filled with bold colours and graphics together with an imaginative selection of flooring and furniture, the new office walls are plastered with images of Asia’s most popular tourist destinations. Pamela Knaggs, Skyscanner’s marketing manager for Singapore and Malaysia, said that the new Skyscanner office’s sense of identity is similar to that of their headquarters in Edinburgh – flexible, vibrant and stimulating office space which reflects the company’s personality and values. She adds that the design of the office also had to allow for the planned future growth of the company.
12 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
Ping-Pong area
Dialing room
Booths
Standup screen
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FIRST exceeded 2,150 in Google scholar and over 225 in the Social Science Citation Index (SSCI), which is the international authority indicator of academic impact. Her research is published in top tier international academic journals. 1
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The 12 most influential business professors aged 40 and under
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escriptions of a good mentor may vary from being able to lead by example to maintaining a good reputation for developing others. In this list of business professors aged 40 and under, Singapore Business Review looked into one particular characteristic – willingness to share skills, knowledge and expertise in any medium with intent to inspire or bring influence.
Business, Ohio State University in 2007.
1 Sameer Hasija, 34, INSEAD The primary focus of Sameer’s research is on contracting issues in outsourcing of knowledge and/or information intensive service processes. Additionally, he is interested in service process design issues with applications in healthcare and callcenter operations.
5 Yaozhong Wu, 37, National University of Singapore (NUS) Yaozhong is described as an amazing teacher and researcher who can engage the likes of senior executives, government officials and young undergraduates in his decision making classes, whether in English or in Mandarin. He is also a wellknown scholar in the field of behavioural operations management.
Stefan Thau, 35, INSEAD In 2011, Stefan’s research on status loss with Jennifer Marr from Georgia Tech University in Atlanta won the Best Paper Award in the Academy of Management’s Conflict Management Division and was widely covered in the Financial Times, Washington Post, and NBC News. 2
3 Angie Low, 35, Nanyang Business School (NBS), Nanyang Technological University (NTU) Angie’s research has been published in internationally renowned journals and cited in various international magazines, such as The Economist and Forbes. She received her PhD from Fisher College of 14 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
Yu Kang Yang, 37, NBS, NTU Kang Yang is an international thought leader on the application of personenvironment fit principles to understand talent recruitment and engagement. He pioneered a shift toward the management of human capital through the use of scientific methods based on empirics. 4
6 Jason Davis, 38, INSEAD Jason’s ideas about how companies innovate collaboratively – including original ideas about best practices like rotating leadership, ecosystem synchrony, and the simple rules for flexible adaptation – have garnered the attention of many high-technology companies after being featured in popular press outlets like Huffington Post and Forbes. 7 Meijun Qian, 38, NUS Business School She is probably the only professor under 40 whose academic research citation has
8 John Byrom, 38, Manchester Business School John has undertaken consultancy projects for commercial giants, among them Tesco Stores and P&O Shopping Centres, and is extensively published in various prominent academic journals, including The International Review of Retail, Distribution and Consumer Research, Journal of Business Research and the Service Industries Journal. 9 Stephen Dimmock, 38, NBS, NTU Stephen is internationally recognized as an expert on portfolio management by foundations, endowments and other non-profit organizations. His research has been featured at top international conferences such as the American Economic Association and the National Bureau of Economic Research, and has twice received the Commonfund Best Paper award in 2008 and 2010. 10 Easwaramoorthy Rangaswamy, 38, Amity Global Business School (AGBS) As the management representative of AGBS, he led AGBS to the attainment of Enhanced Registration with Council for Private Education, Singapore. Further, he helped the school to attain four full years registration with Council for Private Education, Singapore and also the achievement of EduTrust. 11 Qiang Fu, 38, NUS Business School Qiang has become a reputable and influential speaker on various economic issues. His success in executive teaching and practice-oriented macro finance research is considered unusual given his age and relatively short career, his purely academic background and his training in game theory. 12 Jayanth Narayanan, 39, NUS Business School Jay’s research is in the area of negotiation and decision-making. His work has been published in the top outlets in the field such as Organizational Behavior and Human Decision Processes and Academy of Management Review.
startups
This husband-and-wife-duo shakes up Singapore’s HR scene
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udhanshu Tewari and Nicole Seah, a husband-and-wife duo left their jobs at major banks, and set their sights on revamping Singapore’s human resources scene. Together, they founded a small startup with big dreams, called Rewardz. “After working in corporates for a decade, I felt that HR needed better technology solutions to promote work-life balance and encourage staff to stay healthy and fit. This is where Rewardz comes in and our products are built with the vision of creating a happier and healthier workforce,” Tewari shared. Rewardz, a HR technologybased company provides employee
engagement and corporate wellness solutions to medium to large organisations. Since it was founded, Rewardz has launched two apps to help employees make the most of their company’s perks. EmPerks, the company’s flagship app provides employees with corporate privileges in areas such as health, F&B, and lifestyle. It simplifies perks redemption for employees whose organisations are signed up with the service. With over 600 perks on the platform, EmPerks is one of the largest corporate perks portal in Singapore. Meanwhile, Flabuless is a new app that was launched only in April this year encouraging employees to keep fit by rewarding them with both cash and non-cash incentives. Rewards are earned by completing individual and team fitness challenges, as well as competing with one another using online fitness tracking records and leaderboard comparisons. In just over two years, Rewardz has garnered more than 30 clients, including National University Healthcare System (NUHS) and received an iJAM grant from the Media Development Authority.
A cloud technology-powered platform for SMEs
Alpha7 founder Lynette Seah knows that CEOs of small and medium enterprises (SMEs) are often harried by the demands of running a company without the help of a right-hand man. For SMEs hiring COO for assistance can be a luxury. Alpha7 offers a Chief Operating Officer as a Service (COOaaS), solving this addressable and existing business problem. It also bridges the gap between an SME’s people, processes and technology. COOaaS works by providing COO 16 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
expertise to businesses on an outsourced, part-time, retainer or project basis. The service is extended with its COOaaS platform solution that businesses can adopt to connect the front end of their business to their back end applications. Seah believes that Alpha7 will help local SMEs answer the government’s push for greater productivity, which is bogged down by the lack of a defined framework that allows SMEs to do this independently. After seeing the benefits that cloud technology brings to businesses across the world, Seah wants to convince SMEs to jump onto the cloud bandwagon as well. With $3.6 m seed funding, Alpha7 currently caters to SMEs located in Singapore and Southeast Asia. It will also target companies from the USA, UK, and Australia, and aims to open an office in Australia in the second half of 2015.
ShopBack’s cash rebates online
More people are finding online shopping more convenient, but some are still held back by fraud and payment reliability issues. ShopBack strives to make online shopping in Southeast Asia worryfree. ShopBack provides a trusted platform for consumers to discover new brands. Once these brands are featured, the platform will then collate the top deals and offerings from every brand’s website. ShopBack’s founders, Bryan, Joel, Henry, Derrick, Shanru and Samantha, left their jobs to focus on raising money and built this platform inhouse. Now ShopBack didn’t call itself as such for no reason. The platform also gives shoppers cash rebates for purchases made at nearly all the stores featured, splitting the sales commission from brands with shoppers and helping consumers save more when they purchase online. ShopBack aims to become a one-stop shopping portal for consumers in Southeast Asia, assuaging people’s concerns about online shopping safety, giving consumers access to the best shopping deals and rewarding consumers for shopping online. An energetic team According to ShopBack’s founders, the cashback model is not a new concept, but it is new in the region. So when asked about what makes their team unique, the ShopBack founders told SBR that it’s the passion, dedication and responsiveness of their team. “The ShopBack team is a young energetic team, and every effort goes into adapting, responding to and working with our users to improve their user experience. This has allowed us to become one of the most responsive and trusted cashback sites in the region today!” “We seek to become an essential shopping tool for online users by simplifying the process of online shopping and instilling more regulation into the e-commerce industry, allowing people to discover trusted brands and save more while shopping,” said founders. Within the span of a year, ShopBack has raised over a million dollars in funding from both local investors as well as foreign investors in strategic markets. The company’s initial investors include East Ventures, Accel-X and a few others. After expanding into Singapore, Malaysia and the Philippines, this team plans to expanding into more Southeast Asian countries.
partnership. Developing a new facility is not just about teamwork. It’s about a team that works. PM Group works with the world’s leading firms, conceiving, planning, designing and delivering state-of-the-art food & beverage, pharmaceutical and medical technology facilities throughout Asia and internationally.
The project delivery specialists www.pmgroup-global.com
Europe | USA | Asia
INTERVIEW
Discovery Channel goes back to its roots Discovery Channel’s Chief Creative Officer Phil Craig sat down with Singapore Business Review’s Publisher Tim Charlton to talk network programming and Asian opportunities.
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s the chief creative officer of Discovery Channel, London-based Phil Craig was visiting the Discovery offices located in the new Mediapolis area to talk content and creativity and the changes that Discovery is bringing to its brands. So what changes can viewers expect from the channel? “It is time to make some content that reminds viewers why they fell in love with our brand, and part of that was the promise that there is a purpose and learning to be had from the shows we make. We are an entertainment channel but at the heart of what we are doing is a commitment to passing on knowledge and satisfying curiosity,” says Craig. Does that mean that there will be fewer monster trucks or monster fish programs, something that has become somewhat of a mainstay on Discovery? “There will still be a fair number of monsters appearing on our network,” laughs Craig, “but I think my arrival coincides with a feeling there is time to make content that reminds viewers why they fell in love with our brand twenty years ago. At the heart of that is that there is a purpose and a learning to be had from the shows that we make. Maybe not every program we make will help you with your homework, we are an entertainment channel after all, but at the heart of what we do is passing on knowledge and satisfying curiosity.” Craig has an impressive background as a documentary producer, having greenlit shows such as “Changing Minds”, a program on mental illness, when he was head of factual programming at the Australian Broadcasting Commission. So what sort of shows is Discovery looking to make? “Right now I am interested 18 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
It is time to make some content that reminds viewers why they fell in love with our brand, and part of that was the promise that there is a purpose and learning to be had from the shows we make.
in epic, extraordinary stories only seen on Discovery. We receive pitches and we are lucky we get some of the best ideas from around the world.” New programs commissioned by Craig include Kings of the Wild and Brainy Brunch. In Singapore, Craig says Discovery is already developing an international project with a Singaporean company and he hopes he will do many more. “I am coming here with an optimistic message that it’s a really good time to being us ideas and we have an appetite to develop international stories from Singapore. We are looking for production companies that can produce from the global audience.” Asia is one of the largest regions for Discovery, which boasts 230 million viewers a month. But it’s not just viewers but creators the company is working with. There is also more regional programming which is timely and related to regional news. “Because I sit in London looking to commission for international, in recent years we have had a lot of topical stories. For example we made a show on the Nepal earthquake within 3 and a half weeks, we did flight 370, the Air Asia crash and Typhoon Haiyan. That proves the argument that we do think of this region when we commission programs,” adds Craig. “Over the last 15 years we have produced 400 hours of programming from Singapore with either Singapore talent or Singapore producers.” Initiatives from the EDB and MDA which provide dollar for dollar financing have now seen Singaporean talent rise to a global level capable of producing international programs. According to Craig, there are now several major production companies which emerged in Singapore working across the region including Beach House Pictures, In Focus Asia, Oak3 Films. Each year Discovery operates a kind of boot camp for first time filmmakers in various markets and from hundreds of entries whittles that down to about half a dozen who go through a six month training course in how to be an international film maker and producer, which includes business and finance aspects as well as much technical skills. It is partly from these successful graduates, all of whom get to produce a show for Discovery, that Singapore’s filmed media industry is developing. To mark the SG50 Celebrations, Discovery commissioned five local filmmakers to produce documentaries celebrating the nation’s birthday. That might sound unremarkable, except for the fact that at Singapore’s 40th anniversary ten years ago, the landmark series then, History of Singapore, was produced out of London. Now they have all been produced locally. Mirroring Singapore’s Journey, they have come a long way in a short time.
co-published Corporate profile
Why having adequate protection against cancer is vital to retirement planning Find out more about the newly enhanced AIA Retirement Saver (II) launched by AIA Singapore.
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ith the number of diagnosed cancer cases in Singapore rising to a whopping 34 people every single day1, there is also a high chance life will go on even when one is diagnosed with cancer, with 5-year overall cancer survival rates2 for top common cancers in Singapore such as breast cancer, lymphoma and colon cancer. This is why more and more people are looking for financial security in the face of the Big C. One company aims to provide just that. AIA Singapore, a company committed to helping Singaporeans bridge their protection gap and attain their financial goals, understands the modern-day Singaporean’s need for innovative and holistic solutions to life’s unexpected twists and turns. “When planning for retirement, many neglect to plan for the big C. Should cancer strike, your retirement plan may get put on hold as you need to take a temporary break from work and focus on treatment and recovery. As such, you need to ensure that your retirement plans are not disrupted by cancer,” says Ms Ho Lee Yen, Chief Marketing Officer of AIA Singapore. To address this, AIA Singapore launched its enhanced AIA Retirement Saver (II). It now offers an optional Cancer Relief Income Rider (CRIR) which protects individuals and families alike in the event of major cancer diagnosis. The CRIR, the first of its kind in the industry, provides guaranteed acceptance for major cancer3 coverage without questions asked and medical checks required. “The CRIR pays a monthly stream of income upon a major cancer diagnosis, even before you start retirement. This additional stream of 20 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
income may help defray ongoing medical treatment fees and recovery cost, sustain your lifestyle or supplement your basic retirement plan’s premium, so your retirement plan can continue,” adds Ms Ho. Moreover, at retirement age, customers who’ve opted for the CRIR will receive two income streams their retirement income and the continued cancer relief income all the way till their retirement plan matures. This is not all the enhanced AIA Retirement Saver (II) offers. According to recent studies by AIA, thirty-five percent of the middle class in Singapore find saving for a comfortable retirement the most difficult goal to achieve4. Understanding this, AIA Singapore tailor-made the enhanced AIA Retirement Saver (II) to the pressing needs of Singaporeans. “We have enhanced the AIA Retirement Saver (II), giving our customers more choices to help make planning for their retirement simpler and more achievable. We added more premium terms which makes it more affordable for the younger adult, to encourage Singapore families to start saving from an early age. Singaporeans with aspirations to retire earlier may now do so from as early as age 55 when they will receive a steady stream of retirement income for the next 15 or 20 years.” The enhanced AIA Retirement Saver (II) offers customers the power to take charge of their retirement planning with ease by allowing them to have options such as when
Ho Lee Yen Chief Marketing Officer AIA Singapore they want to start to receive their retirement Income, how much they wish to receive, how long they wish to receive the retirement income, and how long they wish to pay their premiums. “We give choices catering to the unique needs and budgets of individuals and families in Singapore. This encourages customers to start saving for retirement no matter what age or life stage they are at, a critical consideration to help tackle Singapore’s retirement inadequacy,” says Ms Ho. As such, the enhanced AIA Retirement Saver (II) now protects Singaporeans holistically by enabling them to create robust retirement plans with adequate provisions for unexpected circumstances. With its AIA Financial Services Consultants committed to providing quality financial advice and service to their customers, the company hopes to help its customers achieve their financial goals. AIA Singapore is The Real Life Company that puts its customers at the heart of everything they do. The company will continuously conduct comprehensive research to uncover customer insights that help shape the development of innovative products and services. 1 Cancer Cases on the Rise in Singapore, The Sunday Times, 3 February 2014 2 Singapore Cancer Registry, Annual Registry Report Trends in Cancer Incidence in Singapore, 2009-2013 3 There is a waiting period of 24 months 4 Hopes and Aspirations of the Middle Class in Asia, AIA, 2014
“The Cancer Relief Income Rider pays a monthly stream of income upon a major cancer diagnosis, even before you start retirement.”
FINANCIAL INSIGHT: ipos
IPO market’s full-on retreat
Singapore’s IPO market falters as Hong Kong’s soars The IPO market in Singapore has faltered in recent months while Hong Kong and other regional rivals fly high.
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hat started last year as a small step backward for initial public offerings (IPO) in Singapore has worsened to a full-on retreat. Singapore’s IPO activity has slowed to a crawl in the first half of 2015 to a point where even bourses of less developed Southeast Asian neighbors are attracting more interest. Adding insult to injury, stock markets in Hong Kong and China are booming while Singapore faces an alarming IPO slowdown. Singapore’s drought “Volatile market conditions and weak market sentiment towards new offerings led to an IPO drought in Singapore and hampered the growth of the city state’s stock markets while Asian rivals flourished,” says Elaine
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Ashok Lalwani
Elaine Tan
Tan, analyst, deals intelligence – Asia Pacific & Japan at Thomson Reuters. Tan notes that in the first half of 2015, only three IPOs were listed in Singapore. Total IPO proceeds raised only US$228.3 million, down 79% compared with the same period last year. It should be noted that all three IPO listings were in the Catalist, the junior board of the SGX, led by Malaysia-based GCCP Resources which issued its IPO to raise US$207.7 million in proceeds, making it the biggest IPO listing in Singapore this year. Fear and disappointment have gripped many issuers and have forced them to pull their IPO plans. One example is Manulife US Real Estate Management which sought to raise US$426 million – which would have been
more than double that of GCCP’s and by far the biggest IPO listing in Singapore. Unfortunately, investor demand did not meet company expectations which led the IPO to fall through. While the Catalist has seen a trickle of IPOs, the SGX Mainboard has witnessed no IPO listings so far in 2015 compared with US$1.0 billion investment raised from five companies during the first half of 2014. Tan adds that follow-on offerings in Singapore totalled US$811.1 million in the first half of 2015, a 22% decline from the comparative period last year, and the lowest first half period since 2005 when it totalled US$512.2 million. Combining the lacklustre IPO and follow-on offerings, total Singapore-listed equity offerings fell by 51% to S$1.0 billion during the first half of 2015. “Singapore’s IPO market has been experiencing a bit of a dry spell this year, a spillover from 2014 when deal sizes started shrinking,” says Ashok Lalwani, head of Asia Pacific Capital
FINANCIAL INSIGHT: ipos Markets Group at Baker & McKenzie. “Companies are grappling with uncertain market conditions such as the Greek debt crisis and the drop in commodity prices, and local firms are adopting a waitand-see attitude with regard to listings,” adds Lalwani. Overseas companies have turned their sights to more attractive, high-flying exchanges in the region, which has also contributed to the Singapore IPO drought. Hong Kong’s hot streak Tan says that Singapore’s IPO market could remain subdued for the remainder of the year with investors continuing to favour the soaring stocks in Hong Kong and China. The Hong Kong Stock Exchange has regained its crown as the top listing venue for IPOs globally with total IPO proceeds amounting to US$17.3 billion during the first half of 2015. This is a 45% increase from the same period last year, and roughly eight times that of Singapore’s performance in the first half of 2015. Hong Kong has long been favored by Chinese companies as a listing venue and the launch of the Shanghai-Hong Kong Stock Connect programme in November last year only increased its appeal, says Tan. There seems to be no stopping Hong Kong’s hot streak in the near-term with more listings lined up in the latter half of 2015. “In 2015, the focus of the year
in Hong Kong is the financial institutions sector, and megasized IPOs. By the end of the year we’re expecting to see listings from China Re, China Merchants Bank, and CICC. These are all major players in China’s finance sector,” says Psyche Tai, partner at Norton Rose Fulbright. To further illustrate the widening chasm between Singapore and Hong Kong in terms of IPO activity, bourses in smaller Southeast Asian neighbours such as Thailand and Kuala Lumpur witnessed more IPO activity than Singapore during the first half of 2015. Tan notes that even Singaporebased companies are opting to tap into the overseas markets instead of in the SGX, such as Netccentric Ltd choosing to list in the Australian Stock Exchange where it raised US$7.8 million. Likewise, Singapore-based chip company UTAC Holdings Ltd revived its offering and filed for a $350 million initial public offering in the US with expected pricing date later this year. Despite its recent slump, Singapore could still rally in the coming months, says an optimistic Lalwani. “Singapore has strong fundamentals as an advanced and transparent financial centre, and this should continue to appeal to both regional and global companies as an attractive base to raise capital. It is likely that REITs and business trusts will continue to feature prominently in listings on the SGX in the near term,” concludes Lalwani.
Equity-listings in Singapore exchanges - first half volume comparison
Source: Thomson Reuters
hong kong view
Hong Kong vies for IPO supremacy Hong Kong is no longer content playing second fiddle to the United States or Mainland China when it comes to wooing IPO issuers, as the territory witnessed an impressive number of megasize deals to push its total equity listings to a new record high. Even better, analysts expect Hong Kong’s blistering rally to continue for the rest of the year as China’s financial giants look to launch more billion-dollar IPOs. Already, Hong Kong is off to a fantastic start in the first half of 2015 with total IPOs in the Hong Kong Stock Exchange (SEHK) totaling US$17.3 billion, a 45% increase from the same period last year. IPOs in SEHK surged on the back of China’s stock market rally, which, in turn, stimulated interest in Hong Kong’s local bourse, says Elaine Tan, analyst, deals intelligence – Asia Pacific & Japan at Thomson Reuters. SEHK grew so much in the first half of 2015 that it managed to overtake the Shanghai Stock Exchange (US$16.3 billion) and New York Stock Exchange (US$13.3 billion) in terms of IPO proceeds raised. “Driven by a flurry of Chinese IPOs, the Hong Kong Stock Exchange (SEHK) regained its crown as the top listing venue for IPOs globally. Hong Kong has long been favored by Chinese companies as a listing venue and the launch of the Shanghai-Hong Kong Stock Connect programme last year boosted its appeal to investors,” says Tan. To illustrate the dominance of Chinese IPOs in SEHK, more than 90% of the total IPO or US$15.7 billion of funds raised in Hong Kong’s stock exchanges in the first half of 2015 came from Chinese IPOs. Tan notes that Chinese brokerage firms led the majority of issuance in terms of proceeds worth US$9.7 billion through IPO in SEHK. Huatai Securities Co. led the charge with US$5.0 billion raised after pricing its first time listing in Hong Kong at the top end of an indicative range and exercising overallotment. Along with IPOs, follow-on offerings flourished as well in SEHK to reach US$36.6 billion in the first half of 2015. Combined, IPOs and follow-on offerings led to total equity listings in Hong Kong rising to a record-setting US$53.9 billion, a 145% gain from the same period last year, and the highest first half period since records began, says Tan. Listing frenzy continues There seems to be no stopping Hong Kong’s hot streak in the near-term with more listings lined up in the latter half of 2015. “In 2015, the focus of the year in Hong Kong is the financial institutions sector, and megasize IPOs,” says Psyche Tai, partner at Norton Rose Fulbright. “We’re also seeing a lot of public M&A, primarily from mainland companies, both state-owned and private enterprises, wanting to buy into a listed platform and inject or develop their business into or through the listed entity. For these businesses, Hong Kong remains an attractive place for fundraising, and investor interest remains high.” The latter half of the year will continue to be defined by the finance sector. SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 23
Analysis: franchising and licensing
SoulKids’ franchising leap took them places
Survival of the fittest in Singapore’s franchising scene As businesses chase after local dominance and international expansion, franchising has become a glorious but also increasingly ruthless arena
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n 2004 SoulKids began teaching life skills to children to help them become happier and more confident, and the results impressed parents so much that they clamored for founders Sally Forrest and Vikas Malkani to pass down their effective methods. This was the start of the franchising journey for SoulKids as the two founders trained to become Certified Franchise Executives and spent the past decade developing a successful licensing model that earned them last year the prestigious Licensor of the Year award from the Franchising and Licensing Assocation of Singapore. SoulKids is now looking at international expansion also through franchising, as Forrest revealed plans to participate in business matching meetups in
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In contrast, governments of neighboring countries like Indonesia and Malaysia heavily intervene to prevent franchiser and franchisee failures.
Thailand this year. Franchising has also served to rev up brands which have run out of gas. “We realised that we were hitting a plateau in organic growth, made difficult by local manpower and rental concerns,” says Ian Choo, director of sales and marketing at Saybons. “By devoting time to participate in this franchise development project, Saybons is able to sieve out excesses in operational methods, consolidate, and document an extremely replicable and af wfordable franchise system that will help accelerate future growth for both the company and its franchisees.” Jumping on the bandwagon Franchising has fueled the aspirations of SoulKids, Saybons and other brands in Singapore to
grow fast locally and eventually become global brands despite Singapore’s increasingly harsh operating environment. In fact, the franchising and licensing industry is now growing as fast as education, according Donna Lee, founder and CEO of KinderGolf and chair of Singapore’s Franchising and Licensing Association (FLA). “We have seen our membership numbers double in the past 12 months and we anticipate this number to continue growing,” says Lee. “This is partly due to an increase in awareness in franchising and licensing as an option in greater understanding of the relevance of franchising for international development.” Signarama is another brand that has leaned on franchising to expand rapidly to become the largest full service sign franchise brand in the world with ten franchisees. Signarama owes part of its leadership status to the distinct advantages given to franchisers based in Singapore, according to Signarama president and founder Alex Butt. Singapore’s unique model “Singapore has a more liberal franchising and licensing business model. Singapore has a strong intellectual property law and enforcement regime,” says Butt. “The government encourages franchising and licensing to develop and expand through the hands of market and capitalist forces.” Butt argued that Singapore’s less interventionist approach and easier market access has made the environment stronger overall. In contrast, governments of neighboring countries like Indonesia and Malaysia heavily intervene to prevent franchiser and franchisee failures. “I personally like the Singapore business model and believe the market forces should dictate the success or failure
Analysis: franchising and licensing of franchise brands and not rely on governmental interventional policies alone,” says Butt. Franchising highs and lows Franchiser concepts rise and fall in a matter of a few years, and those that fail to take advantage during that small window may not have another chance to do so. Likewise, entrepreneurial franchisees will not be able to count on government to save them if their franchise business turns out to be a dud. “We do expect to see a shorter life-cycle for concepts before the next trend comes around. We can expect to see more openings and closings of concepts, which may not favour the business brands but instead bring advantage to consumers,” says Joshua Chia, consultant at Achievus Consulting. “As the window for innovative concepts to prosper gets shorter, the franchisor will want to launch their franchise before the euphoria dies down. At the same time, franchisees will like to ride on the bandwagon at the same time before the next new concept hits the consumers.” Going the risky path Despite its glowing potential, franchising is fraught with risk, warn analysts, and brand owners and entrepreneurs would do well to take off their rose-tinted glasses. For brand owners, partnering with the wrong entrepreneurs can become a headache, if not outright lethal – and brand owners primarily take a bigger share of the blame because of their lack of strategy and training. Brand owners must be able to honestly assess whether their businesses are ready to adopt franchising and licensing. “There are some ingredients that a company needs to ensure successful adoption of a franchising or licensing business model,” says Meow Ling Yeo, director, capabilities development at SPRING Singapore. “Examples include possessing strong and quality processes and systems, proprietary products and/
Donna Lee
Joshua Chia
Yeo Meow Ling
Sally Forrest
Franchising is still fraught with risks
or technologies, and distinctive branding that invokes brand recall among consumers,” says Yeo. Given these ingredients for success, Yeo says that companies that have achieved a certain level of sustained success and are not easily replicated are most suitable for the franchising business model. Entrepreneurial paradise or trap? Brands like SoulKids and Signarama have pulled ahead of the pack by meticulously creating franchising and licensing systems that help entrepreneurs, especially young and relatively inexperienced ones, each step of the way. “By creating systems and processes that are easy to follow, new business owners can simply plug into our established systems,” says Forrest, who on top of being a founder is also a managing director at SoulKids. Aside from setting up reliable and easy-to-use systems, a franchisor must build a strong relationship with each franchisee to ensure the success of both parties. “While the franchisor can leverage on business development and marketing services, they cannot outsource franchisee relationships and support to others,” says Butt of Signarama. Singaporean entrepreneurs that are on the fence with regards to franchising or setting up their own brand must take into account the major trade-offs, says Raymond Foo, franchise manager and
learning & development at Evorich Holdings. An established franchise brand offers stability but comes with a larger upfront cost to set up and more limited control, while a new brand will be harder to take off the ground but is more nimble and flexible. “If you are looking towards having a well-coordinated business system, a franchise business is a definite choice,” says Foo. “The decision to take up a franchise is dependent on the degree of control you are willing to surrender to the franchisor,” says Foo. Zeroing in on staff Franchisees must also pay considerable attention to rents and staff recruitment which can account for up to 30 to 50% of business costs, says Forrest. “Site selection is key. Do not just choose a site that is inexpensive as the probability is that it will not be best for business,” says Forrest. “Do not compromise on staff. Pay a fair wage and recruit the best team you can afford. Do not cut corners to suit short-term needs,” she adds. Franchisees that want to survive must also realise that success is hinged on synergy and shared vision between the franchisee and franchisor founders. “Choose a brand that allows inclusion and direct contact with the founders,” says Forrest. “Only then can the passion be truly and SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 25
co-published Corporate profile
Peerless personalized service is the secret behind Globaleye’s success
Here’s why this firm is making big waves in Singapore’s crowded financial landscape.
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hen Tim Searle first established Globaleye in Singapore just seven years ago, he knew that his young financial services firm will be up against extremely stiff competition in the city-state’s highly saturated market. “For us it was very daunting because we were coming into a very mature market. In order for us to make a noise and make a difference, we knew it was going to be a bit of an upward struggle,” shares Searle, who is Globaleye Group’s Chairman and is the CEO of the company’s local operations.
Searle’s concerns were perfectly warranted. The city-state, after all, is already home to a plethora of financial services providers. Singapore’s streets are literally teeming with financial folk—bankers, asset managers, name it and Singapore has it. Despite the challenges, Globaleye still managed to outstrip competition by sticking to its tried-and-tested strategy of bespoke wealth management for its clients. “It’s all about reaching out and engaging our clients. It’s not about reaching out and saying, what can I sell you? We ask our clients: what do you need to have? What are your goals? How can we help you achieve it?” Searle says. Searle credits Globaleye’s international expertise as the driving force behind the company’s success in Singapore. Thanks to its extensive operations in various parts of the globe, Globaleye was like a breath of fresh air compared to some of their more insular competitors. “We managed to bring in ideas from other parts of the world in which we operate. Some of our competitors have fairly insular operations, which meant that our international background really gave us an edge,” says Searle. According to Searle, a one-size-fits all customer policy no longer works in today’s ultra-competitive market. Consumers are extremely discerning and demand services that are uniquely tailored for their needs. Unfortunately, the industry has been quite slow on the uptake when it comes to changing consumer preferences. “The financial services industry has been slow in reinventing itself on how consumers engage with us. Old methods simply do not work anymore. You cannot be singular, as some of our competitors are. You can’t say, here are our offerings, take it or leave it,” he says. Technology is the ground on which Globaleye’s
Globaleye’s advisers do not only look after their clients’ wealth; they also keep track of important dates and make sure that no personal milestone goes unnoticed. 26 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
personalized operations are built on. Providing bespoke services to over 10,000 clients across the globe will be impossible without a sophisticated system to keep track of their needs and aspirations. Despite this reliance on technology, Searle is adamant that nothing can ever supersede the strength of personal connections. “Technology is at the forefront of everything we do, but it doesn’t replace the one thing that we absolutely insist on, which is personal contact,” Searle says. Automated responses are not for Searle; at Globaleye, clients can expect to communicate with advisors who can address their needs with a human touch. Globaleye’s financial advisers do not only look after their clients’ wealth; they also keep track of birthdays, anniversaries and other important dates, and make sure that no personal milestone goes unnoticed. “These small personal difference make a huge impact. I’m in a space where there’s lots of competition. There are a lot of people doing what we’re doing. The difference is, at Globaleye, we do it better before, during, and after,” Searle says. Global Valuation Service One of Globaleye’s most innovative products is the Global Valuation Service, or GVS. The GVS provides clients with up-todate information on all of their investments, whenever and wherever they need it. It keeps everything in one place, which makes it easier for Globaleye’s clients to have an accurate and holistic snapshot of their wealth. “These can include portfolios they have with us, cash holdings, property, pensions, vintage cars, works of art and so on. Most of our competitors provide a much narrower offering which we believe does not meet the needs of the investors nowadays. They want choice and a trusted partner that can cater to all facets of their financial planning now and the foreseeable future either in Singapore, Asia or around the world,” Searle says. For all their tireless efforts, Globaleye was a proud winner in the Financial Services category of Singapore Business Review’s International Business Awards 2015.
co-published Corporate profile
The EASB East Asia Institute of Management: On the go, the way to go
An EASB education is the perfect fit for postgrad-seeking professionals.
Eric Lim, Director, EASB School of Postgraduate Studies
W
ith schedules and everyday lives getting more jam-packed, professionals nowadays are searching for the essential yet flexible MBA programmes. East Asia Institute of Management (EASB) offers just that with the MBA programme awarded by Edinburgh Business School(EBS), Heriot Watt University.“EBS programmes are portable, flexible, and caters to the lifestyle of busy professionals as well as aspiring full-time students,” says Eric Lim, Director of the EASB School for Postgraduate Studies. “Programmes can be ‘classroom on-the-go.’” As flexible as they are, EBS programmes still provide the same top calibre education traditional institutions do. The school makes use of the CESIM Business Management Simulation, an online platform that reconstructs and reflects real-world challenges and results with accuracy, in order to help students test their classroom knowledge and practically apply their skills in managing corporations. “While undertaking a Master’s programme with Edinburgh Business School, students are acquainted with knowledge on the business environment and the influences that shape the industries. We provide a wide coverage of key management disciplines, such
as people skills, economics, marketing, accounting and more,” says Lim. Classes are taught by qualified lecturers from the industry, and the programme content is regularly reviewed by industry practitioners to ensure that students can keep up with current business trends and relevant issues. An Approved Learning Partner of Edinburgh Business School, Heriot-Watt University, where 40% of Fortune 500 companies have students take their Masters in Business Administration, EASB also provides the Masters programme through EBS in the Chinese Language too, to help cater to a wider range of prospective students. More than textbook knowledge, the EBS programme provides students with avenues for making connections and expanding their networks. The school’s diverse mix of international students from Denmark, Switzerland, Mongolia, Chile, UK, New Zealand, China, Vietnam, India, Indonesia, Myanmar, Malaysia and Singapore, is perfect for acquiring and establishing important global business connections.
“EASB programmes are flexible, and able to cater to the lifestyle of busy professionals.”
Several student successes are proof of this. One student, Pamela Ardana, leveraged her vast network to expand her business, No Faux Official, a bag retail company. In just six months, the company already has appointed retail representatives in China, Thailand, Hong Kong and Indonesia, and she will be looking to expand the business into the Middle East, to countries such as the United Arab Emirates and Kuwait. Miss Ardana credited the lecturers and her fellow school mates for sharing their knowledge and experiences with her, which turned out to be helpful information when she kick started her business. “We have another student from China, Guo Saiwei who has teamed up with fellow classmates to establish a Chinese ‘Groupon’ equivalent portal called http:// huayutuan.com/,” recounts Mr. Eric Lim. “Saiwei has also started his unique mineral water business, ‘Bello,’ and has leveraged on the knowledge he gained from the programme and his network of his Indonesian and Malaysian classmates to venture into the Indonesia and Malaysia market,” he adds. The EBS MBA programme, is also available in a few specialisms, including Strategic Planning, Human Resource Management, Marketing and Finance. For more information, visit www.easb.edu.sg or email enquiries@easb.edu.sg.
SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 27
Singapore’s 10 largest mba providers
Singapore attracts top academic talent
How the Singapore MBA unlocks global opportunities Why MBA candidates all over the world are looking to Singapore.
I
n a country where top companies and industry frontrunners both thrive in and create a strong global business presence, the academe plays a significant role in mentoring the leaders of Singapore’s formidable workforce. Singapore business schools have developed some of the best MBA programmes in the world with many outstanding leaders, Singaporeans and internationals alike. “Singapore is one of the leading places in Asia attracting top academic talent,” says Stephanie Villemagne, director of the INSEAD MBA Programme. Considering that Singapore is an international hub not only in the academe but also in business, it seems natural that their MBA programmes would accentuate the importance of experiencing globalisation first-
The choice between a traditional MBA programme and a specialised one is dependent on what would best suit the student’s interests and career goals.
28 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
hand. “Generally more business schools are collaborating with other universities in offering their MBA [programme],” says Lo Chee Wen, chairman of the YMCA Education Centre. Topnotch MBA programmes make their students’ career aspirations a priority and Singapore is certainly no exception. “Business schools [in Singapore] have strengthened their career services to help students realise and increase the ‘return on their MBA investment,’” says Nilanjan Sen, associate dean of graduate studies at Nanyang Business School. To complement the changing market, Singapore’s business schools have evolved by offering specialised MBA programmes. “We [have noted] a demand for specialised qualifications as more potential students seek to differentiate themselves from
the pack,” says Tan Gek Khim, PBM and senior director of the Management Development Institute of Singapore, pointing out that the choice between a traditional MBA programme and a specialised one is dependent on what would best suit the student’s interests and career goals. Specialised MBA programmes are also often offered as Master’s programmes because of the focus on a particular field rather than on the overall leadership and management skills of the traditional MBA. For those looking into MBA opportunities, it would be a serious understatement to say that graduating from one of Singapore’s top business schools would give one a competitive edge. Whether traditional or specialised, Singaporean MBA programmes shape future managers and leaders poised to take on the challenges of the contemporary business landscape. Who made it onto SBR list? While Singapore Business Review’s list of the largest MBA programmes and providers is based on the number of students, it is important to note that the quality of a programme is difficult to assess through that numerical factor. Thus, we reiterate that this ranking is not a qualitative but a quantitative list of MBA Programmes. The second edition of our much-talked about ranking was participated in by over 20 local providers. INSEAD has once again topped SBR’s ranking of 30 largest MBA programmes with 1,018 total number of students. INSEAD is then followed by National University of Singapore with 492 students. Joining them in the top five spots are Manchester Business School with 400 students, JCU Singapore with 382 students and Lee Kong Chian School of Business of Singapore Management University with a total of 285 students.
NUS Executive MBA NUS MBA
Manchester Global MBA
National University of
Singapore2
Manchester Business
Nanyang EMBA
Nanyang Fellows MBA Nanyang MBA
Nanyang Business School
- Nanyang Technological
University (NTU)
Nilanjan Sen
Lynette Yeo
Eric Lim
Leon Choong
Ong Han Boon
Gerald Tan, Manager (Admissions) Eugene Tan, Daphne Ang, Gurbir Toor, Manager (Admissions)
Jesline Wong
Dr Dale Anderson
Lim Bee Ing
Bernard Yeung
Ilian Mihov
HEAD OF SINGAPORE OFFICE
75
25
66
107
25
150
65
11
155
364
18
18
225
160
65
70
70
77
133
100
25
50
175
Grand Total 175
25
50
175
Grand Total 210
11
26
Grand Total 215
145
145
Grand Total 215
40
150
Grand Total 285
60
60
Grand Total 296
68
210
382
400
57
55
18
400
62,000
55,000
75,000
28,650
28,650
(After S$1,000 scholarship rebate)
18,500
21,100
(After S$1,000 scholarship rebate)
58,140
34,240
24,075
55,000
95,000
35,980
20,230
20,290
17,800 (After S$6,000 scholarship rebate) 16,800 (After $3,000 scholarship rebate)
60,180 / 70,000
3
2
1
1
1
1.5 year/ 1 year
12 months
12 months 20 to 24 months
13 months
24 months
15 months 15 months
1
1
1
2
4
4
2 15 months 15 months
3 15 months
4
3
1
1
3
2
3
3 intakes (full time) 2 intakes (part time)
2
1
1
2
no. of Intakes
16 months
15 months 15 months
18 months 18 months
1 year
9 weeks over 1 year
32,100 102,336
20-24 months
28,034
12 months 18 months
16 months 16 months
2.5 years
17 months 24 months
15 months 24 months
23,540
43,674 44,940 (International) (Domestic only) 43,674 (Domestic)
63,709
62,000
15 months
95,000
307
10 months
93,315
PART TIME
DURATION FULL TIME
185
PART TIME
MINIMUM COST (SG$) FULL TIME
1018
total
Grand Total 492
1018
PART TIME
TOTAL NUMBER OF STUDENTS FULL TIME
Data provided by companies. Survey period: March to May 2015 Ilian Mihov is the dean of INSEAD globally and is based in Singapore. INSEAD’s multicampus structure enable its MBA students to exchange between campuses in Fontainebleau and Singapore. Each year, 70% of students participate in the exchange programme; and the number of MBA students in the SG campus will oscillate between 400 and 600 students at different time of the year. Tuition fee is converted from Euro63,300. NUS declined to provide their updated figures. Data are obtained from its website. For JCU, 505 was their total number of students in 2013, while 382 was their population for 2014.
Strathclyde MBA
Edinburgh Business School, Heriot-Watt University MBA (Chinese)
Edinburgh Business School, Heriot-Watt University MBA
Northumbria University MBA
Murdoch University MBA
Wolverhampton MBA
University of
YMCA Education Centre
Management
East Asia Institute of
Institute
Kaplan Higher Education
University of
ERC Institute
Greenwich MBA
SMU MBA
Lee Kong Chian School of Business Singapore Management University
SMU Executive MBA
University of Sunderland, UK MBA Universityof Bradford, UK MBA Southern Cross University, Australia MBA
Management Development
Institute of Singapore
James Cook University MBA
JCU Singapore3
School
INSEAD MBA
MBA PROGRAMME
INSEAD1
MBA PROVIDER
Singapore’s 10 largest mba providers
SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 29
Singapore’s 30 largest mba programmes MBA PROGRAMME
PROVIDER/LOCAL PARTNER
TOTAL NO. OF STUDENTS 2015
TOTAL NO. OF STUDENTS 2014
Anglia Ruskin University, UK MBA
Amity Global Business School
120
103
Arcadia MBA, Pennsylvania
Aventis School of Management
67
335
California State University International MBA
Aventis School of Management
35
52
Edinburgh Business School, Heriot-Watt University MBA
East Asia Institute of Management
133
128
(Chinese)
East Asia Institute of Management
77
-
INSEAD MBA1
INSEAD
1018
1024
James Cook University MBA2
JCU Singapore
382
505
Manchester Global MBA
Manchester Business School
400
800
Murdoch University MBA
Kaplan Higher Education Institute
145
220
Nanyang EMBA
Nanyang Business School - Nanyang Technological University (NTU)
50
-
Nanyang Fellows MBA
Nanyang Business School - Nanyang Technological University (NTU)
25
-
Nanyang MBA
Nanyang Business School - Nanyang Technological University (NTU)
100
120
Northumbria University MBA
Kaplan Higher Education Institute
70
56
NUS Executive MBA3
National University of Singapore Business School
185
295
NUS MBA3
National University of Singapore Business School
307
397
Rutgers Executive MBA
Rutgers Business School Asia Pacific
25
20
S P Jain Executive MBA4
SP Jain School of Global Management
32
-
S P Jain Global MBA4
SP Jain School of Global Management
174
191
SMU Executive MBA
Lee Kong Chian School of Business Singapore Management University
60
-
SMU MBA
Lee Kong Chian School of Business Singapore Management University
225
-
Strathclyde MBA
YMCA Education Centre
175
182
University of Adelaide MBA
Ngee Ann-Adelaide Education Centre
100
100
University of Birmingham MBA
SIM Global Education
153
175
University of Bradford, UK MBA
Management Development Institute of Singapore
68
-
University of Greenwich MBA
ERC Institute
150
291
The University of Newcastle, Australia MBA
PSB Academy
72
66
University of Northampton MBA
Amity Global Business School
27
-
The University of Nottingham, UK MBA
PSB Academy
72
123
University of Sunderland, UK MBA
Management Development Institute of Singapore
210
-
University of Wolverhampton MBA
ERC Institute
65
76
Edinburgh Business School, Heriot-Watt University MBA
Data provided by companies. Survey period: March to May 2015 ESSEC declined to participate in this year’s rankings. Ilian Mihov is the dean of INSEAD globally and is based in Singapore. INSEAD’s multicampus structure enable its MBA students to exchange between campuses in Fontainebleau and Singapore. Each year, 70% of students participate in the exchange programme; and the number of MBA students in the SG campus will oscillate between 400 1 1
30 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
Singapore’s 30 largest mba programmes HEAD OF SINGAPORE OFFICE Dr. Easwaramoorthy Rangaswamy
TOTAL NUMBER OF STUDENTS FULL TIME
PART TIME
45
75
MINIMUM COST in SG$ FULL TIME
PART TIME
18,910
16,585
DURATION FULL TIME
PART TIME
NO. OF INTAKES PER YEAR
1 year
1 year
2
Dean Dan Levin (PhD, Wharton)
67
24,800
12 months
3
Dean Dan Levin (PhD, Wharton)
35
45,000
12 months
1
Eric Lim
107
26
28,650
15 months 15 months
4
Eric Lim
66
11
28,650
15 months 15 months
4
Ilian Mihov
1018
93,224
10 months
2
Dr. Dale Anderson
364
18
44,940 43,674 16 months 16 months time), 2 intakes (International) (part time) 43,674 (Domestic) (Domestic only) 3 intakes (full
Lim Bee Ing
400
63,709
2.5 years
2
Leon Choong
145
20,290
16 months
3
Nilanjan Sen
50
95,000
13 months
1
Nilanjan Sen
25
Nilanjan Sen
75
25
55,000
1
12 months
75,000
12 months
55,000
20 to 24 months
1
Leon Choong
70
20,230
15 months
2
Bernard Yeung
185
95,000
15 months
1
58,000
17 months 24 months
1
Bernard Yeung
58,000 25
Dr. Zhang Yongwei
75,000
Yasmin Javeri Krishan
32
39,809
Yasmin Javeri Krishan
174
Gerald Tan, Manager (Admissions)
60
Eugene Tan, Daphne Ang. Gurbir Toor, Manager (Admissions)
65
160
14.5 months 14 months
1
– 2 years (Flexible)
2
64,996
1 year
3
102,336
9 weeks over 1 year
58,140
60,180 / 70,000
1 year
1 1.5 year / 1 year
1
Lynette Yeo
175
35,980
24 months
2
Dr. Susie Khoo
100
32,400
24 months
3
Ho Soon Eng
153
31,009
24 months
4
28,034
15 months 24 months
2
18 months 18 months
3
12 months
3
Jesline Wong
11
Ong Han Boon
150
Evan Law
72
Dr. Easwaramoorthy Rangaswamy
2
Ong Han Boon
34,240 21,100
155 25
17,800
(After S$1,000 schol- (After S$6,000 arship rebate) scholarship rebate)
28,762 25
23,540
72
Evan Law Jesline Wong
57
55 40
24,075 18,500(After
S$1,000 scholarship rebate)
1 year
2
32,742
24 months
6
23,540
12 months 18 months
3
15 months 15 months
4
1 year
23,450
16,800 (After
$3,000 scholarship rebate)
and 600 students at different time of the year. Tuition fee is converted from Euro63,300. For JCU, 505 was their total number of students in 2013, while 382 was their population for 2014. NUS declined to provide their updated figures. Data are obtained from its website. SP Jain GMBA’s total number of students represent the combined numbers of May and September 2014 and January 2015 intakes. SP Jain’s tuition fee is converted from USD29,500 for its EMBA and USD48,165 for its GMBA. 2 3 4 4
SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 31
co-published Corporate profile
S P Jain School of Global Management’s innovative approach to post-grad education With a unique tri-city model in Singapore, Dubai and Sydney, the school is reinventing business education to craft business leaders of the 21st century.
“S P Jain School of Global Management is a Forbes Top 20 international business school, so ours is a branded, quality education.”
F
aced with diminishing employee tenure and prevalent employment uncertainty, both employers and employees increasingly view post-graduate education as an unnecessary gamble. One school, however, believes that investing in a sound post-graduate education is still the way to go. S P Jain School of Global Management believes postgraduate education is exactly what the country’s economy needs. “As a highly advanced economy, Singapore needs to move beyond a knowledgeable workforce, into an innovative workforce. The government is encouraging skills upgrades, and businesses need talented leaders to drive new growth,” asserts Prof. CJ Meadows, S P Jain School of Global Management, Director of i2i, The Innovations and Insights Centre. “However, with increasingly intense quarterly profit pressure, employers are more wary of sponsoring employee MBA’s. Furthermore, employees themselves are more wary of investing in long-term programs in the face of changing and losing jobs,” she adds.
32 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
The school provides exceptional value to both employers’ businesses and students’ careers. With a good brand name, relevant learning, practical skills, and a useful network to tap into for future business opportunities, the school enhances not only competitive advantage, but cooperative advantage, as well. “S P Jain School of Global Management is a Forbes Top 20 international business school, so ours is a branded, quality education,” says Prof. Veena Jadhav, Assistant Dean – GMBA & MGB. S P Jain is focused on experiential learning and decision making in the face of uncertainty. “We help our students tap into our global network of alumni and business leaders for projects, internships, jobs, and new business initiatives. In Singapore, this is especially useful to SME’s, who are under increasing pressure for innovation and growth,” adds Jadhav. Employers and students want immediate business impact. S P Jain addresses this by having Executive MBA students bring their current business problems into the classroom for group problem-solving not only
providing immediate value to the businesses, but also engendering more creative solutions by including students from other countries and industries in the problem-solving teams. Another unique feature that sets the S P Jain education apart is their tri-city model of education, which fosters more global-minded business leaders. In the model, students study in three campuses, namely, Singapore, Dubai, and Sydney where they are exposed to the Asian, Middle Eastern, and Western business environments respectively. This develops highly adaptable, globally rooted, global-business ready graduates through Industry Immersion Projects, industry visits, Visiting Wisdom & CEO talks. “Our out-of-class activities include student projects, global learning sessions, and field visits,” says Meadows. S P Jain also boasts of Business Education 2.0, where students not only learn business tools and concepts, but also develop global intelligence in and out of the classroom, and proficiency in real-world skills. They develop global awareness and conduct rigorous analysis, creating corporate-ready graduates. The School is offering blended learning, combining online and face-to-face delivery. Students participate in webinars conducted by faculty, as well as virtual classes, in an effort to better assimilate core concepts via self-paced, on-demand learning. They also engage in interactive, discovery-oriented learning in classrooms, where every subject includes a computer-aided simulation, nurturing critical and lateral thinking. Apart from these offerings, SP Jain is continuously developing new Executive Education programs (e.g. Design Thinking for Insight Innovation) and offers proactive career services across multiple regions.
co-published Corporate profile
Kaplan’s students reveal how the school helped them succeed Offering flexibility, innovation, and utmost quality, Kaplan postgraduate education satisfies the professional’s every need.
L
andon Xu, already a Premier Relationship Manager with a foreign bank, realised how much he has to learn in his industry and eventually felt the need for new challenges in his career. Fueled by this desire, he went directly to Kaplan. “It has been 5 years since I graduated with a degree in finance. I felt that it was time I take on a new challenge,” says Xu, now an MBA graduate from Northumbria University. Accredited University. 100% assignment-based. According to him, the University’s lessons are 100% assignment-based and interactive. “It was a major factor as I was able to pace myself than cramp my revision for exams. I chose this MBA because Northumbria University is an accredited one with good ranking. It is also part of the top 1% of business schools which achieved a rare double accreditation with The Association to
Steven Neo. MBA student Murdoch University
I
“ came from the IT industry with an engineering background. After years of working experience, I discovered that the technical knowledge and skills
Advance Collegiate Schools of Business (AACSB) International in business and accounting,” he says. The Northumbria MBA programme provides experiential learning that is based upon real business problems. Students are taught to experience hands-on projects, and engage in transformational development. “The lecturers that Northumbria University has chosen come from different industries. All were able to share their wealth of experience and applied it during our classes, helping students relate to themselves,” says Xu. He adds that if there are others like him looking to develop themselves, to challenge and continually improve existing working practices, interact with others effectively, and increase ongoing personal and professional development, then the Northumbria MBA programme will give them an unbeatable opportunity to drive your business, management and leadership potential to new heights. that I possessed were insufficient for my daily scope of work. I wanted to have a well-rounded knowledge, understanding both the business concepts and how the organisation functions,” says Neo. Having compared the MBAs from different universities, I found Murdoch University offers a wide range of modules like Project Management and Risk Management are very applicable to reallife experience. The core subjects are practical and relevant to my current job scope. The Murdoch MBA programme provides comprehensive analytical tools for managers in decision-making. “The elective modules offered are regularly reviews and up-to-date in today’s business context. One interesting module that I noticed is Entrepreneurship & Innovation Management,“ says Neo. “The combined classroom experience and real-life, hands-on learning allow me to immediately apply the knowledge and findings in my organisation.”
Landon Xu. MBA graduate Northumbria University
Flexible schedules. No dissertation. Meanwhile, Neo also added that “The Murdoch part-time MBA is very suitable for busy working professionals. The course structure provides me the flexibility to plan my own timetable and study load,” he says. “In the event that I need to travel for business trip, I’m able to get the academic support from the lecturer anytime, and anywhere throughout the course.” In addition, the MBA is a coursework based master degree with no dissertation required. A coursework Masters allows practical learning where students have the opportunity to have discussions and interactions integral to the subject. There will be sharing of work experiences, defending ideas and presenting information in a way that student can understand clearly. These are important, practical skills that you can’t really exercise in a thesis Masters. SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 33
Singapore’s 50 largest hotels
Marina Bay Sands’ occupancy rate reached 99% in 2014
Why 2015 will see increased competition among hotels
Find out why one of the hotels has a “You snooze, you lose” slogan this year.
W
ith the country lauded by The New York Times, CNN Travel, and Lonely Planet as one of their must-visit destinations this 2015, Singapore’s tourists have a lot to look forward to. The local hospitality industry, keen on setting the bar higher on itself, will be playing a large part towards making the visitors’ escapades more enjoyable. “Singapore hotels enjoyed a high occupancy of 84% in 2014; albeit a 2% decrease in comparison to 2013,” says Patrick Fiat, general manager and chief experience officer of Royal Plaza on Scotts. The impressive figure was achieved despite numerous mishaps in the aviation industry, protests in Hong Kong, and restrictions imposed on Chinese travellers’ shopping tours. A highly competitive hospitality scene is expected following
Singapore hotels enjoyed a high occupancy of 84% in 2014; albeit a 2% decrease in comparison to 2013.
34 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
the industry’s strong 2014 performance. Coupled with the strong Singapore dollar and new hotels popping up everywhere, accommodations can’t afford to sleep in, lest their clientele checks in at a rival establishment. Five-star hotel, six-star amenities “You snooze, you lose” is Grand Hyatt Singapore’s slogan this year, and its management certainly won’t be caught napping. To secure the critical meetings, incentives, conferencing, and exhibitions (MICE) groups, Hyatt will be banking on their newly renovated event venues. The overhaul makes them the first hotel to feature a fully-equipped and attached Show Kitchen, as well as the first to offer wall-to-wall video mapping technology. Meanwhile, Marina Bay Sands proudly boasts a 2014 average occupancy rate of 99%
and more than 2,500 events successfully handled by their MICE team. Their patrons can expect only the best on the entertainment and pleasure fronts, with management announcing a myriad of improvements including: new luxury restaurants and stores at The Shoppes; Sands Live, a brand new live concert series; a refurbished Hotel Tower 3; and a more exclusive VIP lounge. “We will continue to invest in the appropriate technology and processes to enhance our staff productivity, and in turn, service levels delivered to our guests,” says Ian Wilson, senior vice president of hotel operations at Marina Bay Sands. Finally, Royal Plaza on Scotts ended 2014 with an occupancy rate of 89% and a S$290 average rate of return. With further facility improvements and an expected influx of tourists towards the end of the year, they are expecting a 3-4% growth in their profit margin. Who made it onto the SBR list? Marina Bay Sands has once again topped Singapore Business Review’s ranking of the largest hotels in the city, based on total number of rooms. From the 25 largest hotels in 2014, SBR has collaborated with CBRE to expand the list to find the city’s 50 largest hotels. Singapore’s 25 largest hotels include Swissôtel, The Stamford, Mandarin Orchard Singapore, Carlton Hotel, and V Hotel Lavender in the top 5, maintained their rankings in 2015 with no changes in their respective number of rooms. Holiday Inn Singapore Atrium was an exception to this rule; decreasing their rooms from 515 to 508. New entrants include Hotel Michael, Shangri-La’s Rasa Sentosa, Furama City Centre Singapore, Holiday Inn Express Clarke Quay, and Regent Singapore by Four Seasons Hotels and Resorts.
Singapore’s 50 largest hotels Hotel 1
Marina Bay Sands
2
Swissôtel The Stamford
3 4
no. of rooms 2014 2015 2014 rankings 1 2561 2561
General Manager/Head of Hotel Operations Ian Wilson
2
1261
1261
Tom Meyer
Mandarin Orchard Singapore
3
1077
1077
Danny Wong
Carlton Hotel Singapore
4
915
915
Mark Bulmer
5
V Hotel Lavender
5
888
888
Charles Goh
6
The Pan Pacific Hotel Singapore
6
790
790
Gino Tan
7
Fairmont Singapore
7
769
769
Tom Meyer
8
Shangri-La Hotel
8
747
747
Reto Klauser
9
Grand Hyatt Singapore
9
677
677
Willi B Martin
10
Orchard Hotel Singapore
10
656
656
Richard Ong
11
Furama Riverfront Singapore
11
615
615
Kwan Hun Fah
12
The Ritz-Carlton Millenia Singapore
12
608
608
Peter Mainguy
13
Peninsula.Excelsior Hotel
13
600
600
William Wong
14
Grand Mercure Roxy Hotel
14
576
576
Klaus Gottschalk
15
Marina Mandarin Singapore
15
575
575
Kurt Wehinger
16
Grand Copthorne Waterfront Hotel Singapore
16
574
574
Benedict Ng
17
Hotel Jen Singapore
17
546
546
Clifford Weiner
(Formerly Traders Hotel Singapore) 18
ibis Singapore on Bencoolen
18
538
538
Pierre-Etienne de Montgrand
19
PARKROYAL on Kitchener Road
19
534
534
Sharmini Moganasundram
20
Mandarin Oriental Singapore
20
527
527
Christian Hassing
21
Royal Plaza on Scotts
22
511
511
Patrick Fiat
22
Holiday Inn Singapore Atrium
21
508
515
Tuncay Bockin
23
Conrad Centennial Singapore
23
507
507
Mark Meaney
24
Hotel Jen Orchardgateway Singapore
-
502
-
Duboscq Herve
25
Riverview Hotel
24
476
476
Shirley Wong
25
Swissôtel Merchant Court Singapore
24
476
476
Rainer Tenius Chow Keng Hai
27
Hotel Michael
-
470
-
28
Shangri-La’s Rasa Sentosa Resort
-
454
-
Ben Bousnina
29
Festive Hotel
-
447
-
Chow Keng Hai
30
Furama City Centre Singapore
-
445
-
Jovian Hun
31
Holiday Inn Express Clarke Quay
-
442
-
Mark Winterton
32
the Regent Singapore - Four Seasons
-
440
-
Martin Sinclair
Hotel and Resorts 33
Oasia Hotel Singapore
-
428
-
Joo Leng Teo
34
Hilton Singapore Hotel
-
421
-
Peter Webster
35
Sheraton Towers Singapore Hotel
-
420
-
Steven Long
36
M Hotel Singapore
-
413
-
Cecilia Lim
37
York Hotel Singapore
-
407
-
Jessie Tan
37
Concorde Hotel Singapore
-
407
-
Karl L. Muir
39
Days Hotel Singapore at Zhongshan Park
-
405
-
Tony Cousens
40
Hotel InterContinental Singapore
-
403
-
Tash Tobias
40
Novotel Singapore Clarke Quay
-
403
-
Kevin Bossino
42
The Fullerton Hotel
-
400
-
Giovanni Viterale
43
Village Hotel Bugis
-
393
-
Mika Umemura
43
Singapore Marriott Hotel
-
393
-
Simon Bell
45
Amara Singapore
-
392
-
Khee Siong Ng
46
Orchard Parade Hotel
-
387
-
Melvin Lim
47
Carlton City Hotel
-
386
-
Mark Bulmer
48
Ramada Singapore at Zhongshan Park
-
384
-
Tony Cousens
49
Village Hotel Changi
-
380
-
Brian Stampe
50
PARKROYAL on Pickering
-
367
-
Tina Sim
28,901
18,519
578
741
TOTAL AVERAGE
Data provided by CBRE Hotels as at February 2015.
SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 35
co-published Corporate profile
Succeeding with an ‘asset right’ strategy
Millennium Hotels and Resorts balances acquisitions and managing franchises.
authentic Cantonese cuisine prepared by award-winning chefs; Intermezzo Bar, where guests can sip cocktails and wine to the sound of live music; and lastly, its very own Noodles restaurant, where diners can witness the creation of a la minute, handmade noodles. Grand Copthorne Waterfront Hotel, meanwhile, offers a wide range of culinary options ranging from authentic Italian cuisine, offered by the hotel’s awardwinning Pontini restaurant, to distinctive Chinese cuisine from the Grand Shanghai Grand Copthorne Waterfront Hotel Riverfront Promenade Restaurant. Diners can also find a variety of local and international favourites at the hotel’s Cafe Brio. Notably, both hotels, together with M Hotel Singapore, also one of MHR’s hotels, were among only 20 hotels selected as official South East Asian Games Village venues, where the recent SEA Games’ athletes were housed. MHR’s growth strategy remains focused on exploring new acquisition opportunities in the region and worldwide. “Some might say the group’s strategy is asset heavy since we own many of the properties we operate. But we believe that we are “asset right” and we balance Orchard Hotel Singapore - Grand Ballroom asset heavy activities like acquisitions rooms provide privileges to business and with asset light activities like managing ith this year’s surge of new leisure travellers such as complimentary entrants in the Singapore franchises. A combination of these two laundry credit, personalized check-in hospitality sector turning the allows our group to make profits from the services and gourmet breakfast,” Yadav industry into an even tighter rat race, appreciation of property value on assets says. Another MHR hotel, the Grand one company’s efforts to stand out that we own, while asset light activities Copthorne Waterfront Hotel, just minutes offer opportunities for quick expansion,” from the pack have proven successful. away from entertainment and F&B hubs Millennium Hotels and Resorts’ strong he said. commitment to customer satisfaction and Robertson Quay and Clarke Quay, is “We are also focused on rolling out competitively positioned as a preferred self-improvement continue to keep the new F&B brands to appeal to different MICE venue. To address these specific company competitive. customer groups,” says Yadav. As of 2014, “Our hotels in Singapore regularly carry needs, the hotel has a team of dedicated MHR boasts an impressive global portfolio MICE professionals, ready to meet the out enhancement exercises which enable of more than 120 hotels, which include demands of even the most discerning us to constantly improve the facilities its most recent high-profile acquisitions businessmen. “The hotel’s function and services that we offer our guests,” Grand Hotel Palace Rome (formerly rooms are also equipped with wireless says Bhupesh Yadav, Chief Business Boscolo Palace Roma Hotel), The Chelsea broadband internet access, motorized Administration Officer at Millennium Harbour Hotel, and Novotel New York. screens, video-conferencing equipment Hotels and Resorts (MHR). “These What’s next for this company on the rise? exercises also serve as opportunities for us and intelligent lighting and sound systems According to Yadav, “MHR is on track to for special effects,” says Yadav. to differentiate our hotels from others in introduce a new hotel brand – M Social – Aside from this, the two hotels also Singapore.” in Robertson Quay, Singapore. Similar to offer clients a variety of dining options. Orchard Hotel Singapore, one of our existing Studio M brand, M Social will Orchard Hotel Singapore’s options MHR’s establishments, boasts a recently target younger discerning travellers who renovated Claymore Wing, which includes include: Hua Ting, which serves up have cosmopolitan tastes.” 331 guestrooms and a Premier Club executive lounge, spruced up to reflect the “We balance asset heavy activities like acquisitions hotel’s more contemporary feel. “The club with asset light activities like managing franchises.”
W
36 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
Event Coverage: Iba & lca 2015
In ultra-competitive Singapore, these winning firms are in a class of their own
U
ncompromising excellence is the name of the game in Singapore’s extremely competitive corporate landscape. Singapore Business Review’s search for the republic’s most outstanding listed and international firms culminated in a grand awarding ceremony held yesterday at the luxurious Conrad Centennial Singapore. SBR’s inaugural Listed Companies Awards and the second International Business Awards was attended by over 160 top executives from the winning firms, along with members of the panel of judges and representatives from supporting partners. “This is a night of winners as we celebrate groundbreaking projects and trailblazing innovations from Singapore’s most outstanding firms,” said Tim Charlton, editor-in-chief and publisher of Singapore Business Review. The winners were selected by an esteemed pool of judges composed of Henry Tan, Managing Director of NEXIA TS, Choo Eng Chuan, Asean Markets Leader at Ernst & Young, Ernest Kan, Chief of Operations, Clients & Markets at Deloitte, and Toh Kim Teck, Assurance Partner, Foo Kon Tan LLP. SBR salutes all the winners, as follows: LISTED COMPANIES AWARDS Heavy Civil Construction Civmec Food and Beverage Del Monte Pacific Limited Food Services Neo Group Limited Real Estate OUE Limited Agriculture Qian Hu Limited Marine and Offshore Engineering Sembcorp Marine Ltd. Advertising Singapore Press Holdings Financial Services Singtel, Dash
38 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
INTERNATIONAL BUSINESS AWARDS Food and Beverage Abbott Laboratories Singapore Pte Ltd. Property Services BuyAssociation (Singapore) Pte Ltd Education Cegos Asia Pacific Pte Ltd. Advertising Dentsu Singapore Financial Services Globaleye Pte Ltd Hospitality and Leisure ibis Singapore on Bencoolen Technology Ideal Systems (Singapore) Pte Ltd Diversified Services Imagination Human Resources Consulting Jardine Lloyd Thompson Asia Health Products and Services M-Plan Sdn Bhd IT Services NTT Communications Engineering PM Group Consulting PMsquare Pte Ltd Business Services Swiss Post Solutions Ltd Singapore Branch Personal Insurance Zurich Life Insurance
Takeshi Kazami with the NTT Communications Team
Jerry Siah Eng Kiat & Wong Zung En of SPH
Henry Tan delivering a speech on behalf of the judges
Thomas Vonrueti of Zurich Life Insurance
Neo Kah Kiat of Neo Group
Pat Ryan of PM Group
Jason Rankin of PMsquare Pte Ltd
Dimitri Getsios of Swiss Post Solutions
Irene Meta of OUE
Raymond Yip of Qian Hu
Wee Keng Hwee of Sembcorp Marine Ltd SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 39
Kevin Deery of Civmec
Ignacio Sison of Del Monte Pacific Limited
Alexander Knight of BuyAssociation (Singapore) Pte Ltd
Jeremy Blain of Cegos Asia-Pacific
Tim Searle of Globaleye Pte Ltd
Fintan Mc Kiernan of Ideal Systems
Andrew Au of Imagination
Richard Roper of Jardine Lloyd Thompson
Tan Hong Huat of M-Plan Sdn Bhd
Julia Chandra with the ibis Singapore on Bencoolen Team 40 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
Hui Hwa Koh-Minjoot of Abbott Laboratories Singapore Pte Ltd
Gan Siok Hoon with the Singtel, Dash Team
Networking Dinner
Ideal Systems (Singapore) Pte Ltd Team
Jardine Lloyd Thompson Asia Team
Rosalynn Tay with the Dentsu Singapore Team
Singtel, Dash Team
NTT Communications Team
Swiss Post Solutions Ltd Singapore Team SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015 41
Y
Jardine Lloyd Thompson (JLT) is one of the world’s leading employee benefit consultancies, with the ability to offer client solutions across 135 countries. We strive to be trusted advisers, to think differently and to put the clients’ interests first. Our goal is to see the world, the risks and opportunities that our clients face first and work in partnership to engage employees and manage costs. JLT EMPLOYEE BENEFITS IN ASIA
The macroeconomic and demographic trends in the Asia’s population growth, increasing middle class, urbanisation and an ageing population, all lead to an increased demand for more sophisticated employee benefit programmes for companies. The needs of employees and employers differ in each Asian territory. Operating long established businesses in 13 Asian territories and having a history in the region that dates back to 1836, JLT is well-placed to work with our clients to provide Employee Benefit programmes that engage employees and manage the employers’ costs.
Richard Roper I Managing Director – Benefit Solutions Asia & Sales and Marketing Director Asia I Jardine Lloyd Thompson Limited Suite 2001, 20/F Cityplaza Four I 12 Taikoo Wan Road, Taikoo Shing I Island East, Hong Kong Tel : +852 2864 5333 I DD : +852 2864 2551I Mob +852 9730 5595 Fax : +852 2161 0138 Richard_Roper@jltasia.com I www.jltgroup.com AsiaAds_2014_Client_First_130x200mm.pdf 1 6/3/2015 10:35:52 AM
Swiss Post Solutions revitalizes the humble mailroom with a dash of tech
M
ention the word ‘mailroom’ and the image that immediately comes to mind is that of a harried employee hemmed in by hundreds boxes and packages. But Swiss Post Solutions is out to break the mailroom stereotype with its sophisticated suite of document management solutions. Dimitri Getsios, General Manager— Asia of Swiss Post Solutions, shares how his company found fertile soil in Asia’s unfortunately outdated mailrooms. “In Asia, everything is manual. When we first entered the market in 2011, we immediately knew that our technology could help streamline these manual processes and therefore drive efficiency and increase productivity,” Getsios says. Swiss Post Solutions is a global leader in providing seamless mailroom management services for large multinational clients. The company provides outsourced solutions to help large companies digitize their inefficient paper-based business processes. Swiss Post Solutions provides its suite of physical and digital solutions to clients across sixteen countries, and leverages on its global network and in-depth understanding of local
cultures to provide unrivaled service to its client. Apart from mailroom management services, Swiss Post Solutions also engages in the business of digital transformation, which involves extensive document management and processing. Swiss Post Solutions’ crowning glory is its award-winning iTrak System, which was honored at Singapore Business Review’s International Business Awards 2015. iTrak is a secure web based system for tracking and tracing of all incoming and outgoing goods from an organisations locations. iTrak provides crucial service performance
information, such as delivery timescales and individual messenger productivity levels and can also be used to track the progress of other ad-hoc and regular tasks such as reprographics work, or conference room set-up. After setting up its offices in Singapore and Hong Kong in 2011, Swiss Post Solutions has expanded its presence across the region. Together with its licence partners, it is now present in Australia, NZ, Japan, Taiwan, Philippines, India and has a document processing centre in Vietnam with 1200 employees.
At Neo Group Limited,
technology is a key driver of our growth. Being the Number One Events Caterer, we continue to innovate and drive business excellence to cater to more tastes and serve the best versions of ourselves.
Mr Neo Kah Kiat, PBM Founder, Chairman & CEO Neo Group Limited
LISTED COMPANIES
AWA R D S in the category of
FOOD SERVICES 2 0 1 5
Our recipe for
success lies in innovation. Our in-house developed driver assistance solution (“DriveBuddy�) supports our business requirements of excellent service and timesensitive delivery, with the rigorous job demands of our Catering Captains. In an industry characterised by the need to balance high cost and service excellence, DriveBuddy has
driven
significant
improvements
in
productivity and helped Neo Group emerge as the Number One Events Caterer in Singapore in 2014 once again.
NEO GROUP LIMITED 1 Enterprise Road Singapore 629813 Phone : 6896 7757 | Fax : 6515 0421 www.neogroup.com.sg
Recognising Singapore’s exceptional companies and business leaders Entries are now accepted
for the Singapore Business Review Business Ranking Awards and Management Excellence Awards 2015 If your company or your team has a noteworthy initiative that deserves recognition, don’t miss your chance to nominate for this well-deserved accolade.
For more information, contact Julie Anne NuĂąez at 6223 7660 ext 221 or email julie@charltonmediamail.com
co-published Corporate profile
Investments in Uzbekistan: Favourable conditions and unlimited opportunities
Find out what makes Uzbekistan an ideal country for foreign investments.
U
zbekistan has been recognised as the heart of the Great Silk Road which has existed for more than 16 centuries. The territory of the state lies at the center of the land bridge between East and West, and has played a prominent role in international overland trade. Beginning in the late 20th century, Uzbekistan embarked on market reforms that have gradually restored and magnified its position as a key player in international business. The Uzbekistan economy ranks as one of the most stable and fastest growing in the world today. The country has managed to not only survive the global financial and economic crisis, but to flourish and sustain high economic growth rates. Over the last five years, the annual GDP growth of Uzbekistan averaged 8%, which is higher than the average growth rate in the Commonwealth of Independent States (CIS) countries. In the World Bank’s recently updated ranking of countries in terms of economic development as measured by the size of GDP, Uzbekistan moved from 72nd place in 2010 to 66th today out of 190 countries. The country’s ease of doing business rating also improved 8 positions, while on ease of paying taxes it ranked 61st. According to UNDP, over the last year, the country is also among the top ten countries by number of reforms in the facilitation of business.
The modern Uzbekistan economy offers foreign investors a number of advantages. Among them are political and macroeconomic stability; favorable climatic conditions; rich raw materials; strategic geographical location in the center of the largest regional markets; an integrated network of ground and air communications, transport, and logistics systems of international importance; a diversified industrial base; and superior scientificintellectual, human resources. According to the IFC, direct foreign investment occurs in the CIS countries on the condition of 45-55% expected profit. With this in mind, the investment attractiveness of Uzbekistan industrial sectors is generated by the relatively low cost of production factors (electricity, natural gas, labor), a significant domestic market (more than 31 million population), and free of duty access to the markets of CIS countries (more than 280 million people). In addition, by investing in Uzbekistan foreign companies gain the opportunity to access the rapidly growing market of Central and Eastern Europe, Southeast Asia, and the Middle East. According to economic experts, the investment legislation of the Republic of Uzbekistan is among the most progressive legislations in the CIS countries. The law related to the protection of foreign
Currently, more than 4,000 enterprises with foreign capital from more than 90 countries successfully operate in the country.
48 SINGAPORE BUSINESS REVIEW | SEPTEMBER 2015
investments, guarantees and rights is among the most important laws of the Republic of Uzbekistan. The law reflects basic key provisions of international investment law, in particular those provisions guaranteeing the rights of foreign investors and providing preferences for them. Further, the Republic of Uzbekistan has signed 70 bilateral agreements on mutual encouragement and protection of investments, as well as ratified a number of related multilateral international instruments. These regulations govern the stimulation and protection of investments, compensation for investment losses caused by free transfer of investments abroad, and the procedure for settlement of investment disputes. Of particular note is the system operating in the country providing privileges for foreign investors making direct investments. They are exempt from paying income taxes, property tax, tax on improvement and development of social infrastructure, single tax, and mandatory contributions and duties to the Republican Road Fund for a fixed term (3 to 7 years), based on the introduced investment. Foreign companies engaged in prospecting and exploration of oil and gas, as well as foreign contractors and subcontractors, are also exempted from payment of all taxes and mandatory contributions to social funds for the period of exploration. Joint ventures in oil and gas, formed with the participation of foreign companies engaged in prospecting and exploration of oil and gas, are exempt from income tax for a period of 7 years from the beginning of oil and gas extraction. These liberal conditions for foreign investors, manifest operating benefits, and solid guarantees have all contributed in attracting foreign capital. Currently, more than 4,000 enterprises with foreign capital from more than 90 countries successfully operate in the country. Among these partners of Uzbekistan are General Motors (USA), Samsung Electronics (South Korea), Huawei (China), Nestle (Switzerland), Man and Knauf (Germany), and many others. This year Uzbekistan attracted more than US$ 3 billion of foreign investment.
Abbott recognized for formulating
Singapore-made product to
fuel growing kids’ needs
The Singapore Business Review’s (SBR) International Business Awards 2015 has recognized GROW®, Abbott’s growing-up milk, as an innovative product in the Food & Beverage category. This award is given to celebrate trail-blazing innovations from the most outstanding and valuable companies in Singapore. SBR caught up with the team behind GROW® to learn the story behind the brand and its award-winning ways.
by the Singapore Institution of Food & Technology with the Healthier Choice Award for 2011-2013.
Abbott Nutrition’s Regional General Manager, Ms Hui Hwa Koh-Minjoot, said that when GROW® was first launched in 1998, it was with a view to providing a scientificallyformulated, nutrient-dense growingup milk for active, school-going children in Singapore. Since then, the brand has evolved to keep pace with Singapore’s transformation and changing nutritional needs. It was in 2011 that Abbott seized an opportunity to reformulate GROW® in tune with the changing health needs of Singapore. Mr Gary Fanjiang, Divisional Vice President of Asia-Pacific Research & Development at Abbott Nutrition, said that in line with a national campaign in 2002 to address the increasing risk of obesity among children, Abbott, partnered with the Health Promotion Board of Singapore to reformulate and develop two advanced growing-up milk formulas, GROW® PRESCHOOL for children three to six years and GROW SCHOOL® for children 6 to 12 years old. The two products were scientifically formulated with a nutrient system called IMMUNIGROWTM - which delivers 26 vitamins and minerals, DHA, choline, taurine and prebiotics to improve the nutritional intake of children.
To ensure that their innovative products penetrated the market while also serving broader public health needs, Ms Suzie Chiang, Business Unit Director at Abbott Nutrition, said the team designed campaigns aimed at educating parents about the daily recommended intake of two glasses of milk for children and milk as a better hydration beverage to fuel play and learning in school-going children.
“The food scientists at Abbott’s newly established research and development center in Singapore formulated both products to contain 25 per cent less sugar and saturated fat and with higher calcium content per serve in comparison to other brands in the category,” Mr Fanjiang said. The food scientists also introduced a vanilla flavor, reminiscent of vanilla ice cream to enhance children’s compliance to the daily recommendation of two servings of milk, he added.
Given the busy schedules of children in Singapore, Abbott decided to launch the GROW® Ready-to-Drink (RTD) variant in 2013. The tetra pack format, which is available in vanilla or chocolate flavors, makes it convenient for active kids to meet their nutritional needs even while they are on-the-go.
It was because of these efforts that GROW® earned the distinction of being the first growing-up milk to be awarded the prestigious Healthier Choice Award by Singapore’s Health Promotion Board, and was further recognised
Ms Koh-Minjoot said this constant attention to changing needs is what drives the product’s continued success: “It is very rewarding to see how GROW® has over the years worked to educate consumers on the benefits of laying a good nutritional foundation for our children so that they can play, learn and grow healthily.”
Visit www.abbottfamily.com.sg for more information about GROW® and Abbott 1 Loke KY, Lin JB, Mabel DY. 3rd College of Pediatrics’ and Child Health Lecture-- The Past, the Present and the Shape of Things to Come, Ann Acad Med Singapore. 2008 May;37(5):429-34. 2 Based on Nielsen Market Share for Growing Up Milk Stage 5 as of Oct 2014.
the years r e v o W O GR 1998
Abbott Nutrition Singapore launched GROW® as growing-up milk for active children
2011
GROW® PRESCHOOL & GROW SCHOOL® launched. Reformulated with IMMUNIGROW to improve nutritional intake of children
2013
GROW® Ready-to-Drink in Vanilla and Chocolate flavour launched for active kids on-the-go
Awards 2011
Healthier Choice Award by Singapore Health Promotion Board Healthier Choice Award 2011 by the Singapore Institution of 2013 Food & Technology
2012
Global Food Industry Award by the International Union of Food Science & Technology for Communicating Science Related Knowledge to Consumers Food & Beverage Award by Singapore Business Review 2015
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