Orient Issue 25 by BritCham Singapore

T H E O F F I C I AL MAG AZIN E O F TH E BRIT IS H CHA MBER OF COMMERCE - S ING AP ORE

I S S U E 25 : J U N E  J U LY 2010

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FEATURE:

CORPORATE BANKING & PERSONAL FINANCE

HEADLINE:

BRITCHAM AGM 2010 BRITCHAM BOARD 201011

CORPORATE SOCIAL RESPONSIBILITY

FUTUREPROOFING YOUR BUSINESS FOR FUTURE SUCCESS

building networks connecting business creating opportunities

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Contents

8 - 100

AGM 2010 – A New Year Heralds a Brighter Future

Presidents Message

Headline

AGM 2010 – A New Year Heralds a Brighter Future

June Feature – Cor porate Bank ing and Personal Finance

12 - 19

June Feature Topic: Corporate Banking the Personal Finance

20 - 21

The Future of Transctions: Innovating for a better customer experience – RBS

Strategies for dealing with reduced external liquidity – HSBC

Investing: A Lifetime Commitment – Standard Chartered

Getting out of and staying out of debt - iPac

Inside Britain

Impact of British design on the Singapore skyline – UKTI

Economic and Business Insights

Public relations has changed… for the better – EastWestPR

AIM: A Steady Ship in Choppy Waters? – FirstBranding

Round 2 of the Credit Crunch – The Extreme View – SgWealth

UK Inﬂation Spikes – Interest Rates Remain Flat – Bad News for Savers – The Fry Group

Corporate Social Responsibility

Futureprooﬁng Your Business for Future Success - Grayling

High Commission News

Lord Mayor Visit and UKTI Calendar

BritCham

Chamber news updates June-July

BCC Young Professionals / New Members

Business Awards 2010 / Members Oﬀers

Inside Britain – UK-Singapore Collaborations

30 - 33

CSR – Futureprooﬁng your Business for Future Success Page

EDITORIAL Editor: Sebastien Barnard

Orient is a bi-monthly magazine published by the British Chamber of Commerce.

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The views and opinions expressed or implied in Orient are those of the authors or contributors and do not reﬂect those of the British Chamber of Commerce, its ofﬁcers or editorial staff. All rights reserved. No reproduction of articles without the prior permission of the Chamber. Unsolicited transparencies ad articles are sent at owners’ own risk and the Chamber accepts no liability for loss or damage. orient 1

Contents

BritCham Events Sustainable Supply Chain Practices – Hit or Myth?

63 - 64

BBC’s Close Encounter with Indonesia’s Orang Utans

Members – Sterling News

Sterling News

BritCham Events

Breakfast Club: An Introduction to Commercial Marine Salvage

Breakfast Club: Cut Your Marketing Budgets and Make Every Employee a Brand Champion

Breakfast Club: What Makes A Successful Entrepreneur?

Economic Brieﬁng: How to Tame a Dragon

CSR Seminar: CSR Seminar 2010

Lord Mayor Lunch: The City Today – Opportunities for Partnership

Ossie Ardiles - BP Evening

New Members Evening

Members - Corporate News

Corporate News

Destination

Close encounter with Indonesia’s endangered Orang-Utans - BBC

Wine Club

Christine Kernohan – Gladstone Vineyard – Rubicon Reserves Wines

BRITISH CHAMBER OF COMMERCE, SINGAPORE SPONSORS PLATINUM SPONSORS

GOLD SPONSOR

SILVER SPONSORS

BRONZE SPONSORS

BREAKFAST CLUB SPONSOR

BRITCHAM WINE SPONSOR

Pr e s i d e n t ’s M e s s a g e Dear Members, It is an honour to have been elected by your incoming board as your President. I took over the reins from our outgoing President, Terry O’Connor, at the AGM held on 19th May. On behalf of the Board and our members I thanked Terry for his years of service and many achievements throughout his tenure and presented him with a plaque to commemorate the occasion. As has been customary in recent years, the AGM was held at Eden Hall and we thank His Excellency the British High Commissioner Paul Madden for once again welcoming us into his home. The turnout was excellent. Appreciation and thanks is due to outgoing Board Member Chris Hurd of HSBC, for the strong support given during his term of ofﬁce. I welcome new Members of the Board, Emma Boyd, Ingrid Child and Andrew Vine. In addition I am pleased that Hugo Walkinshaw will continue as Honorary Secretary and Peter Allen will continue as our Treasurer - their contribution is important to the continued good stewardship of the Chamber’s affairs. In leading your new Board I am supported by elected Vice Presidents Chris Claridge and Chris Davies. The foundation of our Chamber’s activities continues to be our four committees and our active business groups. Our Membership Committee continues to be led by Simon Wilson, our Events Committee will be led this year by Philippe Touati, Chris Davies leads our Marketing & Communications Committee, Terry O’Connor has agreed to continue to lead our External Affairs Committee and I will continue to lead our CSR Committee. Our business groups are core to our offering and provide the opportunity and focus for members to network, to leverage their experience, and to participate in business-speciﬁc events. The Chamber now has seven active and growing business groups.

Over the past month or so we have a number of stand-out events. Our annual CSR seminar, at the Shangri La, was well received by all who attended and my thanks go to the speakers from CSR Asia, World Wildlife Fund and DHL, for ﬁrst-class presentations. The Lord Mayor of the City of London proved to be a particularly engaging speaker at our Leaders in Business luncheon and our annual Golf Tournament hit the usual heights, with a full complement of golfers enjoying the challenge of Sentosa’s Serapong course. Coming up; preparations are well in hand for the British Chamber of Commerce, Singapore Business Awards, which are produced in collaboration with UKTI. This year will be the 11th year and in the call for nominations you will possibly have noticed some changes to the format, which it is hoped will give the Awards a wider reaching. Eligibility has been made simpler and there are eight reshaped award categories, which will broaden the opportunity to highlight business achievements at this exciting and prestigious event. This year the Awards will be held on October 7th and the Guest of Honour will be the Minister of State for Trade and Industry, Mr. S. Iswaran (Member of Parliament). In recent years we have built a strong foundation, with an engaged Board and a committed Executive Team. Moving forward we look to grow the Chamber, broadening our reach and improving our offering to members. With your continued interest and participation in our activities, I am sure we can scale even greater heights.

Steve Puckett President British Chamber of Commerce, Singapore

BRITCHAM BOARD: PRESIDENT: Steve Puckett - Tri-Zen International VICE-PRESIDENTS: Chris Claridge – TCP Group Chris Davies TREASURER: Peter Allen - Paciﬁc Century Regional Development HONORARY SECRETARY: Hugo Walkinshaw - Deloitte Consulting, SE Asia EX-OFFICIO: Amanda Brooks - British High Commission Mark Howard - British Council BOARD MEMBERS: Alan Goodyear Andrew Wine David Conway Emma Boyd Ingrid Child John Horsburgh Kevin Burke Nick McGylynn Philippe Touati Pek Hak Bin Richard Burn Roman Scott Stephen Crisp Simon Wilson

44 oorri e i enntt 44 oorriieenntt

RBS The Insight Bureau Pte Ltd Jupiter Asset Management Limited Ernst and Young Solutions LLP HSBC Singapore Rolls Royce Singapore Pte Ltd Barclays Bank PLC British Airways Standard Chartered Bank BP Singapore Pte Ltd Diageo Calamander Group BT Singapore Lloyd’s Asia

COMMITTEES: Events: Philippe Touati Membership: Simon Wilson Corporate Social Responsibility: Steve Puckett External Affairs: Terry O’Connor Marketing & Communications: Chris Davies Young Professionals: Mile Gooseman BUSINESS GROUPS: Energy & Utilities: Damian Adams Entrepreneur & Small Business: Richard Ayres Financial Services: David Conway IT and Communications Technology: Richard Richardson Professional Services: Tulika Tripathi Media & Marketing: Fiona MacKinnon Shipping, Transport & Logistics: Neil Johnson MANAGEMENT TEAM: Executive Director: Brigitte Holtschneider Events & Sponsorship: Melanie Hewlett Events Support: Tiffeny Kua Marketing & Communications: Sebastien Barnard Membership Manager: Katie Hudson Membership Support: Rabiatul Adawiyah Accounts: Emmeline Ng

www.britcham.org.sg

Sterling Members

BRITISH CHAMBER OF COMMERCE, SINGAPORE STERLING MEMBERS

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share in our success Royal Skandia in Singapore is a premier provider of offshore investment solutions within Skandia International. We offer access to a wide range of assets from a large number of third-party fund managers and other organisations. We have extensive experience in providing services for international investors. But don’t just take our word for it. Financial services experts at ‘International Investment’– the authoritative UK magazine for international advisers – have just judged Skandia International the very first winner of their new award in 2009: Best International Provider – Far East. Skandia International are also proud winners of their Best International Life Group and Best Commitment to Service awards. If you’d like to invest with a leading company that really understands the needs of international investors, ask your financial adviser how you can share in our success.

Skandia International is the divisional name for the international group of companies within the Skandia Group. Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Royal Skandia Life Assurance Limited (Singapore Branch), Level 25, North Tower, One Raffles Quay, Singapore 048583. Phone: +65 6622 5406 Fax: +65 6622 5400 Registered in Singapore number T08FC7158E. Authorised by the Monetary Authority of Singapore to conduct life assurance business in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Finance Dispute Resolution Scheme. Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0) 1624 655 555 Fax: +44 (0) 1624 611 715. Authorised by the Isle of Man Government Insurance & Pensions Authority.

Headline

building networks

BRITISH CHAMBER OF COMMERCE AGM 2010

eld once again within the elegant surroundings of Eden Hall, the residence of HE Paul Madden, British High Commissioner to Singapore, the 2010 British Chamber of Commerce AGM kicked oﬀ with 80 members in attendance, on Wednesday, 19th May 2010.

A welcome address by HE Paul Madden, started oﬀ proceedings. This was followed by Terry O’Connor’s Presidents Report in which he took the members through some of the highlights and initiatives of the Chamber in 2009. Terry followed up with the key developments for 2010 after which Hugo Walkinshaw stepped in, (as former Treasurer in the absence of Peter Allen, 2010 Treasurer), to give a summary report of the Chamber’s ﬁnancial position at the end of 2009.

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For those members who were unable to make the AGM, the following is a quick summary update of the Presidents Report and Treasurers Report as presented on the night. Presidents Report 2009 – An economically very challenging year for many businesses

Membership – Continued Growth The British Chamber of Commerce experienced further network development in 2009. Total membership expanded to 1,109 executives, a 32% growth from the previous year. Despite the harder economic times the Chamber welcomed 577 new members to the network in 2009.

Adapting to the changing economic climate and the changing needs of the membership, the Chamber focused upon helping and assisting members to manage the challenges and beneﬁt from the opportunities, by providing insights into how to manage a business in the downturn, engagement with the SingaporeTripartism partners, engagement with EDB to learn ﬁrst hand how Singapore is going to re-position in a changing economic landscape, engagement with the Economist Group sharing analysis and insights, timely economic outlooks, Country updates presenting possibilities beyond Singapore and a close link to UKTI and the British High Commission. The Chamber also worked on continuing to strengthen relationships with SBF, EDB; with other International Chambers and with the British Chambers in SEA through BISEA.

The number of member companies remained stable at around 300 despite a 20% attrition rate mainly due to budget cuts and expense freezes. Continuing to reﬂect the business demographics of Singapore and the key areas of British business excellence strong representation continued from the Professional Services and Financial Service sector. These make up more than 50% of the total Chamber network at present.

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Events – A Strong Performance The Chamber’s events oﬀering surged in 2009 with over 50 events conducted. Attendance also increased, in particular at the Breakfast Clubs, which experienced attendance more than doubling to over 1,800 attendees for the year.

The diversity of events also grow with a higher number of lunches, particularly the very successful Leaders in Business Lunch Series and more evening networking opportunities on oﬀer.

In 2009 the Chamber achieved a top line growth of 11%. This was driven by a 10% growth in member subscription, 24% increase in income from functions and a 10% increase in income from sponsorship. However the Chamber did experienced a 32% decrease in income from publications driven mainly by the tightening of advertising and marketing budgets by many companies during the tougher economic climate. The Chamber ended the year with a strong operational cash position at the end of the period. This provided an opportunity to strengthen the Chamber’s cash reserves.

executives with over 330 companies now represented. A new sponsorship category has been introduced, the Platinum Sponsor, taken up by Barclays Capital and an upgrade to Platinum by long term sponsor RBS. Events continued to be held at a high frequency, highlights being the successful CSR Seminar “Sustainable Supply Chain Practices” supported by BP. The Chamber has re-activated the Entrepreneur and Small Businesses Group and launched the ‘Mini MBA’ lunch series. Also new to for 2010 is the Young Professionals initiative and EDB Cluster Collaboration. 2010 will once again feature a Membership Survey,

Of the key flagship Chamber events, the 2009 British Business Awards attendance remained at 2008 level with over 400 pax attending a very successful and enjoyable evening. And finally the BritCham Ball attendance remained strong at 700 pax, continuing its reputation as the classiest end of year bash in town. Other Highlights The British Chamber of Commerce, Singapore helped conduct the 2009 Business Climate Survey jointly with 14 other International Chambers and Singaporean associations. The results were available online to members as well as a synopsis of key findings in the Orient Magazine. The Chamber also further deepened and developed the relationship with existing and new sponsors. New Chamber sponsors in 2009 included Barclays for the Golf Day, Meyado for Breakfast Clubs, Rubicon for Membership Card, Audi as Gold sponsor and Henley Group as Supporting sponsor for the Ball.

By the end of 2009 the Chamber achieved a break-even result after absorbing GST requirements, incurring higher cost for running events due to signiﬁcantly increased activity and through Chamber obligations; donating to Dream 2012, concentrating the support on two athletes with great prospects to compete in London. Hugo concluded with a positive view for the future sighting the ﬁrst four months of 2010 as seeing particular strong performance driven largely by events and membership expansion.

Accounts 2009 In the absence of 2010 Chamber Treasurer Peter Allen, past Treasurer Hugo Walkinshaw kindly stepped in to explain to the members the ﬁnancial position of the Chamber.

Key developments and initiatives update 2010

which was conducted in May-June. Results will be highlighted in the next Orient magazine. Conclusion The evening concluded with incoming President Steve Puckett thanking Terry O’Connor for his dedication, commitment and service to the British Business Community and presenting a token of appreciation on behalf of the Chamber, the Board and the Members. If you wish to have more information on the point raised in this summary please contact the Chamber oﬃce at 6222 3552.

2010 has already seen the Chamber further grow the network by 15% to 1,276

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Headline

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www.britcham.org.sg

BRITCHAM BOARD 2010

Chris Davies Vice President

Steve Puckett President Managing Director Tri-Zen International Pte Ltd

Peter Allen Treasurer Group Managing Director Paciﬁc Century Regional Development

Chris Claridge Vice President Managing Director TCP Group Pte Ltd

Alan Goodyear Board Member CEO, Global Transaction Services, Asia Paciﬁc RBS Roman Scott Board Member Managing Director Calamander Group

Stephen Crisp Board Member Director Public Aﬀairs, Asia Paciﬁc BT Singapore

Kevin Burke Board Member Managing Director, Head of Distribution, Asia Paciﬁc Barclays Bank PLC

Simon Wilson Board Member Director, International Development Markel International John Horsburgh Board Member CDO Rolls Royce Singapore Pte Ltd

Nick McGlynn Board Member Regional General Manager, SE Asia British Airways

David Conway Board Member Sales Director, Asia Paciﬁc Jupiter Asset Management Limited Philippe Touati Board Member Managing Director, Head of Client Relationship Standard Chartered Bank Singapore

Pek Hak Bin Board Member Country President BP Singapore

Emma Boyd Board Member Director, Client Relationships Ernst and Young Solutions LLP

Ingrid Child Board Member Chief Risk Oﬃcer HSBC Singapore

Richard Burn Board Member Corporate Relations Director, Diageo Asia Paciﬁc Diageo

Hugo Walkinshaw Honorary Secretary Partner Deloitte Consulting, SE Asia

Andrew Vine Board Member Managing Director The Insight Bureau Pte Ltd

Amanda Brooks Ex-Oﬃcio Deputy High Commissioner The British High Commission, Singapore Mark Howard Ex-Oﬃcio Director British Council, Singapore

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creating opportunities

Fe a t u re : C o r p o r a t e B a n k i n g & Pe r s o n a l Fi n a n c e

THE FUTURE OF TRANSACTIONS: INNOVATING FOR A BETTER CUSTOMER EXPERIENCE By Harm Bots, Head of Global Transaction Services, Malaysia, The Royal Bank of Scotland Research by Erika Wade, undergraduate economics student, Middlebury College, Vermont, USA

lectronic payment platforms will continue to provide a critical economic link between customers and service providers and gain a place in the growing e-commerce industry. From the advent of credit cards to using smart cards for road tolls and public transportation, it is undeniable that we are moving towards a cashless society where goods and services are being transacted digitally on a micro-second basis across industries and geographies. According to industry surveys, online banking, bill payment and e-bill usage has continued to grow significantly during the last decade. Fiserv Inc, a global provider of financial services technology solutions, confirmed in its latest survey that between 2000 and 2010, the number of American households that use online banking increased more than six-fold, and the number that use online bill payment increased nearly eight-fold. The trend of growing popularity in electronic payment is certainly not unique to the United States. Here in Asia, with computer literacy and affluence on the rise, it won’t be long before we see more Asian consumers making purchases with the click of a mouse. Flying high with AirAsia AirAsia – Asia’s leading low cost carrier - understands this trend well and has

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been innovating its electronic payment platform to enhance the experience for its customers. The company recently launched a multicurrency pricing e-platform, enabling its passengers to get instant ticket pricing in the currency of their choice when they make an online purchase. AirAsia Group CEO TDato’s Sri Tony Fernandes believes the enhanced online ticket sales platform “will take away the uncertainty of exchange rates ﬂuctuation” for AirAsia’s guests, making the purchase of air tickets more convenient, straightforward and transparent.

Last November, eBay launched the next phase of PayPal, an Application Programming Interface (API) called PayPal X that enables developers to integrate a payment option into their application or website. And just last month, MasterCard decided to follow the footsteps of eBay and launch an API of its own that is due to become available sometime later this year.

To begin with, AirAsia will launch AirAsia and The Royal Bank of Scotland launched an innovative multi-currency pricing the new service e-platform. From left: Alan Goodyear, RBS Head of Global Transaction Services, Asia; Datoí Abdul Aziz Abu by oﬀering sales Bakar, AirAsia Chairman; Andrew Sill, RBS Country Executive, Malaysia for the following currencies: USD, SGD, HKD, GBP and AUD. AirAsia’s latest multi-currency pricing The next step is to roll out the service to e-platform is created using The Royal accommodate other currencies. Bank of Scotland’s (RBS) leading e-commerce solution – FXmicropay – AirAsia has been named as the World’s and sophisticated cash management Best Low Cost Airline by Skytrax for two and merchant acquiring services. years in a row (2009 and 2010). The solution is an advanced Foreign Exchange (FX) platform that provides Innovating the customer experience Air Asia with the ability to price tickets in a variety of currencies online, whilst There is no doubt that there is cash to be simultaneously managing the FX risk made in a cashless world. so that AirAsia does not take on any additional FX exposure. With consumers welcoming new advances in payment systems, it is no AirAsia sells 80 percent of its tickets surprise that more and more innovative online as you would expect from an payment platforms are being developed airline that operates 600 ﬂights daily to accommodate electronic payments.

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cost carriers always look at opportunities to lower the cost and therefore an advanced cash management structure was designed on the back of the FXmicropay solution that would fully automate the ﬂow from FX trade to settlement across a variety of countries and across a number of currencies.

to 70 destinations. It is the customer experience that counts for AirAsia and this is where an innovative solution from RBS was able to help. Prior to the FXmicropay solution, customers were subjected to opaque currency conversion by their credit card providers. With FXmicropay however, it is possible to purchase a ticket in a familiar currency and against the exact price that is quoted at the point of sale. On the day that FXmicropay went live on AirAsia’s systems, it successfully processed more than 1000 transactions although it can actually handle up to 3000 transactions per second.

a platform that is capable of processing transactions not only in all of the G11 currencies but key Asian currencies, including the Malaysian Ringgit, Thai baht and Indonesian Rupiah. It was a complex project and RBS drew on the expertise of its teams in Malaysia, Thailand, Indonesia, Singapore, Hong Kong and the UK to deliver it successfully. The bank’s Aviation Capital, Global Transaction Services, WorldPay, IT and Credit teams worked closely together to provide the breadth of knowledge that was required.

However, in order to fully meet AirAsia’s objectives of eﬃciently serving its international clientele, RBS had to design

Andrew Sill, RBS Country Executive for Malaysia, said, “AirAsia has an innovative culture and could see the advantages of FXmicropay and really encouraged us to tailor the product for their business. Adding three new currencies was not a simple task and required dedication from teams in many diﬀerent countries.“

RBS experts in Malaysia, Thailand and Indonesia also had to obtain approval from their respective central banks to include the essential Asian currencies for the system.

No doubt, technology and e-platforms will play an increasingly important role and large global banks, such as RBS, are in a position to deliver on this as scale is required to justify the investments. These investments can be substantial as banks system infrastructure needs to be robust. Any failures would directly impact important payment ﬂows, with the risk of disturbing the business operations of clients. The systems are also developed with the highest levels of security which is of critical importance to both parties and necessary for regulator approval.

Then RBS took a further step and started looking at end-to-end ﬂow - from the point of ticket sale to the bank settling the cash proceeds into the accounts. Low

www.rbs.com.sg

Role of banks in driving e-payments platforms The solution provided by RBS to AirAsia is an excellent example of how a bank can go beyond its traditional role and design solutions that support its clients to take their business forward. When RBS was confronted with AirAsia’s dilemma of trying to lower costs and yet still maintain customer satisfaction, RBS saw the potential in FXmicropay, a solution that has worked for many of the Bank’s clients in other industries.

Finally RBS also identiﬁed an opportunity to improve the merchant acquiring services and lined up RBS WorldPay to provide a platform that would enhance the overall solution and position AirAsia strongly as their business expands internationally.

How does FX Micropay work? FX Micropay is an advanced platform that connects real time between FX market makers (RBS trading rooms), AirAsia’s ﬂight booking systems, AirAsia’s web front end and sophisticated reporting and cash management tools to manage the settlement of the FX trades across various locations. All the operations are automatic without any hands touching the transaction, from ticket booking to settlement.

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creating opportunities

Fe a t u re : C o r p o r a t e B a n k i n g & Pe r s o n a l Fi n a n c e

STRATEGIES FOR DEALING WITH REDUCED EXTERNAL LIQUIDITY by Iain Taylor, Head of Global Payments and Cash Management, HSBC Singapore

ne of the most obvious consequences of the recent credit crisis has been the reduced availability of external liquidity. This sudden contraction in liquidity availability from the end of 2008 and through 2009 delivered a key lesson to many corporate treasuries – to seriously reconsider their existing strategies in their management of liquidity. There is no better time than now for corporate treasurers to put in place structures that will deliver longterm benefits for return, flexibility and risk management - and in turn they are taking a major step towards ensuring the long-term stability and profitability of their companies. Events of the past 24 months have brought a widespread realisation that the impact of liquidity on a company can be as significant as credit or foreign exchange risk. Previously, companies with respectable credit ratings were able to tap into seemingly limitless and inexpensive liquidity by issuing commercial paper, notes or bonds – or turn to banks to take advantage of uncommitted facilities. That relaxed era is now most definitely over - credit has become a scarce and considerably more expensive commodity.

So What Can Corporate Treasuries Do About Liquidity? In today’s environment, it is vital for corporate treasuries to have a proper framework to mitigate liquidity risk – and in particular, make optimal use of internal liquidity, which has shot up in value. The basic starting point is to have complete visibility of all company cash at the treasury level. This enables the cash position, funding requirements and investment transactions to be tracked in real, or near-real, time. The company’s cash must also reside in a mechanism that allows any idle balances to be used quickly and eﬃciently. In addition, the

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associated investment policy has to be robust, with all the appropriate risk parameters, checks and controls in place so that security if not sacriﬁced in pursuit of yield. Accurate forecasting of cash-ﬂows underpins the above points, as well as the ability to model appropriate stresses to test the resiliency of liquidity reserves to external shock. While the forecast may never precisely match the outcome, if the process if hampered by poor practices or disciplines, the corporate treasury may face unpleasant surprises that add to the pressure of liquidity management.

Real and Relative, Current and Future Benefits Given the resources required to implement a liquidity solution, corporate treasurers are understandably eager to have a clearer picture of the possible benefits before committing. The benefits are considerable: Once treasury has visibility and control of corporate cash, it can use surpluses in one part of the business to finance deficits in others, reducing the overall need for borrowing. If, as part of the liquidity management programme, treasury has control over payments, collections and trade flows, then cash flow forecasting will improve and liquidity fluctuations should become less of an issue. Borrowing requirements can be centrally managed, thereby leveraging the higher credit rating of the parent company to reduce borrowing rates. Net surpluses can also be invested centrally, with the ability to secure higher returns by investing larger balances. Counterparty risk in its various forms can be managed more effectively. Centralising cash and treasury

“Procrastination invariably results in a reactive rather than a proactive response when conditions subsequently deteriorate.” With credit markets having moved rapidly from monsoon to drought over that same time frame, another important lesson for corporate treasurers is to establish a diversiﬁed portfolio of credit facilities – diversiﬁed by lending institution and by facility type. This ensures that the appropriate tool or contingency measure is always available to cover liquidity risk.

activities with group liquidity and balance sheet management enhances their eﬃciency through greater automation and enhanced reporting. Control over cash can also be improved, with better segregation of duties and “auditability” of activities. Many of the steps required to improve liquidity management

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create contingent benefits in other areas. For example, implementing bank-neutral technology also provides greater strategic flexibility around bank relationships, as well as streamlining processes and reducing costs. Many corporate treasurers started considering cash and liquidity management projects in the good times, but these were often postponed because of other business priorities – a decision, which was probably regretted during the credit crisis. Procrastination invariably results in a reactive rather than a proactive response when conditions subsequently deteriorate. Moreover, any quick fix undertaken needs to be considered a first step in a long-term road map, and not just a quick fix in isolation that will be subsequently replaced. For example, an overlay account structure is comparatively simple to implement, but doing so without

considering how it will evolve into a consolidated structure incorporating other transactional banking services is short-sighted and ultimately inefficient, if not costly. If the overlay is provided by a bank that cannot also service the transactional banking element, then this will have to be provided by another bank and significant synergies will be lost. This model also breaks down particularly badly in certain markets. For instance, in some Asian markets transaction banking fees have often been low or waived on the basis of sufficient interest margins realised on frictional and residual deposit balances. However, the moment liquidity migrates from the transactional to the liquidity overlay level across different institutions, the bank providing transactional services suddenly finds itself servicing the client on a very different profitability basis, with inevitable implications for service levels. It is tempting to argue that now may not

the right time to embark on a cash and liquidity management implementation, given how companies are only starting to realise business returns post-crisis. Unfortunately, there is never a good time, and procrastination is deﬁnitely not a strategy, even at the best of times. Given the right provider, swiftly establishing an improved banking model now is perfectly possible. A well-planned structure supported by a provider that can oﬀer a homogenous solution for regulated and unregulated markets will deliver long-term returns, irrespective of future market conditions. However, the critical point is that such a solution must be fully integrated end to end. Piecemeal products that cannot incorporate the transaction banking element are a recipe for sub-standard performance and future re-engineering costs.

www.hsbc.com.sg

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creating opportunities

Fe a t u re : C o r p o r a t e B a n k i n g & Pe r s o n a l Fi n a n c e

INVESTING: A LIFETIME COMMITMENT HAVE A CLEAR AND CONSISTENT FINANCIAL PLAN AT EACH STAGE OF YOUR LIFE By Ronnie Lim, General Manager, Wealth Management, Singapore and Malaysia, Standard Chartered Bank

inding ways to invest wisely throughout your life has become even more important with the rising number of aﬄuent1 individuals in Singapore and the rest of Asia.

partner to build a sound investment portfolio and strategy. It is a misconception that you need a large amount of funds to begin investing. Standard Chartered Bank believes wealth is acquired through astute investment decisions. Start with a small sum by dollar cost averaging or investing equal dollar amounts regularly such as S$100 monthly in an investment or portfolio. Invest in global equities in emerging markets such as Asia, excluding Japan and high-growth sectors like technology, plantation and commodities. Bonds with a decent coupon and longer tenure can cushion exposure to equities.

The Datamonitor Asia Pacific Wealth Management database reports that the population of affluent people in Asia, excluding Japan, is slated to grow from 16 million to 23 million by 2012. According to the Capgemini and Merrill Lynch Global Wealth Management World Wealth Report, by 2013, Asia Pacific is expected to overtake North America as the largest region for financial wealth. With such newfound wealth, investment has become a top priority. While each individual has different investment goals, there are some basic guidelines that an investor can follow which will support your lifestyle, commitment and expectations. Stage One: 20s to 30s Looking at four lifecycle segments, the first is in your early 20s. You will usually want to maximise capital with a 20- to 30-year investment horizon. Your risk tolerance may be high. While investing in high-return products, keep a well-balanced portfolio to balance risk and returns and enlist help from a reputable, committed investment 1 An affluent individual is defined as a person with investible assets of more than US$100,000

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Stage Two: 30s to 40s Your investment goal is capital growth with a 15- to 20-year investment horizon with low- to moderate-risk. You may have commitments such as a housing or education loan and other family expenses. Shift your portfolio to reduce the proportion of high-risk investments while enjoying reasonable returns and opt for asset allocation across investments of varying degrees of risk versus return. Invest in bonds with a regular stream of ﬁxed coupon payout and strong credit rating. Bonds provide tax advantages as they are tax-exempted and you can enjoy both capital gain and dividends. Look at blue-chip stocks such as banking, consumer and telecommunication stocks with minimum volatility and a good dividend payout. For families, accumulate foreign currency for your children’s education or overseas expenses. Consult a reputable ﬁnancial provider for foreign currency investment recommendations and services.

Review your insurance policy to include changes like purchases of additional property or more dependents. Ensure proper estate planning especially if you are the sole bread winner. Stage Three: 50s to 60s Your investment goal may be preserving capital with a five- to 15-year investment horizon. As retirement approaches, your investment horizon and risk appetite shrinks. Protect your portfolio rather than maximising your capital from risky assets. Allocate over 50% of your portfolio in conservative investments such as bonds. Continue investing in stable banking, consumer and telecommunications stocks as well as bonds or bond funds. Manage your interest rate risk while avoiding foreign currency investment that carry higher risk or select a less volatile currency which may give higher yields like the Australian dollar. Nominate a beneficiary. Stage Four: 60s Preserve capital and set an investment horizon of less than five years. Hopefully you have a steady income from fixed deposits, bonds, rental or the Central Provident Fund (CPF). Blue chips such as financial and healthcare stocks and bonds with good credit rating and coupon payout are a good choice. Following an investment strategy at each stage of your life may reduce or eliminate financial stress as you peacefully grow old with your loved ones. Warren Buffet once said, “Investing is laying out money now to get more money back in the future.”

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Fe a t u re : C o r p o r a t e B a n k i n g & Pe r s o n a l Fi n a n c e

creating opportunities

GETTING OUT AND STAYING OUT OF DEBT By: Mark Sing, Vice President and Licensed Financial Adviser Representative with ipac ﬁnancial planning Singapore private limited

arning a ﬁve- or six-ﬁgure salary is a great opportunity for increasing savings and also accumulating wealth. Yet being in this situation does not always equate to smart saving strategies, when people fall into the “big bucks, big debt” trap and fail to monitor their spending habits.

penny saved might very well be a penny earned, but the attitude he or she might take is: who really cares when you can easily get a $15,000 credit limit? High debt levels are prevalent in today’s times with the ready availability of credit, and credit cards in particular, resulting in debt-related diﬃculties for some people.

Take the case of celebrity photographer Annie Leibovitz. To the rest of the world, it was a surprise to read reports that the photographer of Vogue and Vanity Fair fame was in severe debt. Leibovitz

It is important not to ignore any problems with debts despite feeling powerless. Don’t ignore debt, it doesn’t go away. You may end up losing the goods that you have bought and ﬁnd

“Beware of little expenses. A small leak can sink a great ship.” ~ Benjamin Franklin

A build up of debts can be scary, hence the key is to prioritise them in order of fear factor. Remember that all debts are not equal and use this list as a quick guide: ~ Secured debts: Secured debts are those outstanding loans on which you have signed collateral, for example, your house, car, furniture and so on. Rent/ mortgage is likely to be the biggest worry. If you are behind on mortgage payments, you may lose your home. Look at reﬁnancing options as there may be cheaper loans. These creditors can usually live with a late or missed payment or even two, but it is important to contact the creditor and explain the circumstances. Deﬁnitely do not just ignore the creditor. ~ Unsecured Debts: Unsecured debts are those loans that do not have property attached to them, like credit cards, department store loans, phone bills, medical bills or utilities. When it comes to items like utilities and your phone bills, aim to reduce usage as much as you can. If you can do without certain “wants”, like cable TV, cancel your subscription. Failing to pay these will eventually be very painful with your credit and good name, but are probably the least devastating for the short term. Therefore it is these debts that can be the last to be paid. ~ Other Items: Car insurance, medical insurance, children’s “needs” and other debts unique to your circumstance will require a value judgment.

had the ability to command a sevenﬁgure salary and a commercial clientele which paid her thousands of dollars for her craft. Yet her debt mounted to US$24 million, and she had to pledge her properties and the rights to her life’s work as collateral. What happened? Very simply, Leibovitz spent beyond her means, without paying attention to where the money was going. When it comes to the everyday man, a

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it difficult to get credit. You could even lose your home. When you are in debt, the first step is to try and get legal and financial advice to understand the ramifications of any contractual terms and conditions on your personal finances and repayment schedules. You should then work out what debts are immediately due, what all your sources of income are and which of your expenditure items are essential.

Deal with debt proactively There are several steps you can take to get yourself out of debt. For a start, you could consolidate your debt, which would involve rolling all your existing debts, such as your car or boat loans and credit cards, into one loan with a fixed interest rate and a fixed repayment schedule. This can reduce both the amount of interest you pay and your monthly repayments. Contact each of your creditors to negotiate to buy some more time or reach a settlement of what you owe. If a creditor rejects your proposal or wants more evidence in writing that you are genuinely unable to pay, consider asking a financial counsellor to intervene on your behalf. If the debt is large or one of many debts, you should consider hiring a lawyer to write a second letter asking for additional time. The lawyer won’t say anything different than you would, but a request in black and white carries weight. This will cost some money, but it may be worth it. Review the possibility of refinancing your home. Lower interest rates can help you save money while still paying off your home loan. Other options include taking a second job for a short term period of time, even if it is something you wouldn’t normally consider. You may also want to consider obtaining short term loans from family or friends. Avoid the debt trap To avoid being led into the trap of bad debt, look into strategies that will help you protect your wealth and be in control of your savings. i) set up a budget It is important to always have a budget in mind and know how much you can afford to spend. It is an essential tool for ensuring that your money gets used the way you need it to. A budget will enable you to get a handle on the flow of your money – how much is coming in or going out, and also where it goes out. It is only when you understand the flow that you can make intelligent choices about how to spend. Further, having a budget lets you control your money, instead of your

hardship or even to go on that long awaited holiday. Unfortunately, when we know we have savings, we are likely to spend more freely and comfortably as we know that we will always have our savings as a back up. A good way to avoid doing this is by opening a separate account with your bank. money controlling you, and can also keep you from getting into debt. You may have goals and dreams but if you don’t set up guidelines for reaching them and you don’t measure your progress by using a budget, you may end up going so far in the wrong direction you can never make it back. Ultimately, budgeting requires selfdiscipline. This requires determination on your part, and the support of family and friends in sticking to your budget. ii) shop smartly ~ Budget and make a list of items that you intend to buy and stick to it. Don’t spend over this amount. ~ Be wary of enticements like “red hot specials” where an item is advertised in the store as being on discount for the next five minutes. ~ Compare prices between sellers. You may find that someone is selling an item at 10 per cent off and another seller is selling the same thing at a lower price and they’re not having a sale. ~ Compare items for price and quality. ~ Examine the goods carefully. Sometimes packaging can mislead you about the actual quantity supplied. ~ Check out the warranty. ~ Avoid buying on impulse – you may get home and regret the purchase. The worst part is that a shop is not obliged to offer you a refund for a change of mind. ~ Never let anyone talk you into buying something you’re not sure about. iii) have a savings plan It is a great idea to set up a savings plan. Endeavour to save a certain percentage of your income earned. In doing so, you should always have money available to pay for any surprise debts or to help you through an unexpected financial

iv) use credit cards wisely The advantage of using a credit card is that you don’t have to carry large amounts of cash with you. The disadvantage of credit cards is that it makes impulse buying easier and you can spend more than you can afford before you realise. Try not to make the minimum-only payment on your credit card each month. By doing so, you will increase the amount of time it will take to pay off your debt and also increases the amount of interest you end up paying. To pay your debts off quicker and cheaper, you should pay as much as you can on your balance each month. Also, don’t use your credit card to buy things you can’t afford. Make wise decisions about purchasing items you need versus those you simply want. It is easy to over commit when it comes to money. It happens every day without you realising it. The golden rule to avoid going into debt is to buy only what you can afford. Frugal living seems counterintuitive in today’s consumption-driven society, but saving money is attainable, and adopting Ben Franklin’s common sense advice will result in extra dollars. The challenge is upholding the discipline to resist blowing it on a lifestyle you can’t afford, which can be managed with a well-structured financial plan of your goals and objectives.

www.ipac.com.sg In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any person. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, objectives and circumstances. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any person. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, objectives and circumstances.

orient 19

Inside Britain

connecting business

IMPACT OF BRITISH DESIGN ON THE SINGAPORE SKYLINE

lose to 200 years on since that great British pioneer Sir Thomas Stamford Raffles commissioned the first of Singapore’s iconic buildings, great British pioneering companies continue to influence the shape of the Singapore skyline as they design and engineer today’s iconic buildings. As this dynamic Asian market undergoes a 21st century growth spurt, a plethora of projects has sprung up with significant British involvement in terms of innovative design, world class technologies and sustainability credentials. Recently Sir Andrew Cahn, CEO of UTI, viewed both the Marina Bay Sands Integrated Resort and the Marina Bay Bridge. In October 2009, HRH the Duke of York, visited Gardens by the Bay. Singapore projects with UK involvement: Marina Bay Area: Gardens by the Bay, Esplanade, Theatres by the Bay, Marina Bay Double Helix Bridge, Marina Bay Sands Integrated Resort, Singapore Flyer. Other Developments : Capella Singapore (Luxurious Resort), Duke University/National University of Singapore Graduate School of Medicine, EXPO Station (Mass Rapid Transport), ION Orchard, Khoo Teck Puat Hospital, National Heart Centre, National Library Board, Parkway Novena Hospital, Singapore Sports Hub, The Supreme Court. During the last 30 years there have been 4 UK winners of the coveted Pritker Architecture Prize – the professions highest honour. UK architects excel

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at urban regeneration, transport infrastructure, energy efficient buildings and sports infrastructure. London based architects generate in excess of US$1.1 billion in revenue per annum. Marina Bay Area Singapore Flyer - ARUP The S$240 million Singapore Flyer is the world’s largest Giant Observation Wheel to date, standing at 165m tall with a 150m diameter wheel. The Arup design team used the experience gained from working on the London Eye to optimise the design of the Singapore Flyer. Marina Bay Sands Integrated Resort – 4 UK companies The Marina Bay Sands Integrated Resort is estimated to have a total cost of S$8.0 billion. Four UK companies are involved with the project: Aedas lead Consultant & Executive Architect, Arup worked on civil, structural, geotechnical, traffic, façade, fire, acoustics, risk & security along with 3D modelling. Mace appointed to provide project and construction management consultancy services. Rider Levette Buckman provided cost consultancy and quantity surveying, project management and advisory services. Marina Bay Double Helix Bridge - ARUP The design consortium of the Marina Bay Double Helix Bridge was awarded to an international team consisting of engineers from UK firm Arup, Australian architects from the Cox Group as well as Singapore-based Architects 61. The 280-meter-long bridge features a

double-helix exoskeleton constructed from stainless steel to support a 6-meterwide deck spanning 65 meters between piers. The construction for both the vehicular and pedestrian connections is estimated to be around S$68million. Gardens by the Bay – UK Consortium Gardens by the Bay, a major infrastructure project in the Marina Bay area was awarded to a UK team led by landscape architects Grant Associates in collaboration with Wilkinson Eyre, Atelier One, Atelier Ten and Land Design Studios. The master plan for Marina South forms part of Singapore’s new Gardens by the Bay development and will draw from the distinctive flora of the region to create a new destination in the city. It has been designed as a series of distinct ecosystems, which will enable the gardens to function with maximum environmental efficiency. The garden at Marina South will be home to some of the site’s most spectacular structures, including a grove of ‘supertrees’ reaching almost 40 metres in height and two cooled conservatories, which will be among the largest climatecontrolled glasshouses in the world. The cool-dry conservatory will explore issues related to plants and people and incorporates a spectacular flower field with programmed changing displays. In contrast, the cool-moist conservatory will focus on plants and the planet, with a dramatic internal ‘mountain’ and waterfall, demonstrating subjects such

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as bio-diversity. The structures will form a new landmark for the city, enjoying views back across Marina Channel to Singapore’s city centre. The Gardens by the Bay at Marina East is designed by UK-based design firm Gustafson Porter. It will be a waterfront park that is connected to East Coast Park. This watersports themed park will allow for activities such as canoeing, water skiing, sculling and dragon boat races to be conducted along the Channel. It will also feature a number of artificial waterfalls and a wading pool. It is linked to the Gardens at Marina South by the Marina Barrage. Esplanade, Theatres by the Bay - Michael Wilford & Partners Michael Wilford & Partners designed this iconic building with Architects 61. The Esplanade is a S$540 million multiactivity complex for the staging of a wide variety of artistic activities and has an area of 80,500 square metres. Other Developments ION Orchard - Benoy Designed by globally renowned Benoy architects, the $700 million retail-led ION Orchard is located at the crossroads of Singapore’s prime retail district. Opened in July 2009, the 61,300 sq m retail mall represents a significant expansion of Singapore’s public sphere providing both internal and external spaces, including 3,000 sq m of events space and a 500 sq m art gallery.

of open spaces. These spaces, namely courtyards and gardens, are fused with natural light and are naturally ventilated. These enlarged passages serve a dual purpose as they maximize retail opportunities for users and create more space for operational efficiency for staff. Parkway Novena Hospital - HOK International Designed as the “hospital of the future,” this private hospital in central Singapore will provide the latest medical technology and design innovations. HOK International is targeting Green Mark Platinum certification their state-of-theart strategies for energy conservation and sustainability. National Library Board (Singapore) Rider Levett Bucknall Rider Levett Bucknall Singapore was appointed as the Project Manager, Quantity Surveyor and Contract Administrator for the New National Library project. They were also the cost consultants for the NLB’s Library 2000 programme, which involved over 30 regional, community and children’s libraries. The building is internationally acknowledged for its architectural features, green building features, and innovative intelligent and IT features. The building has been the recipient of the Green Mark Platinum award, the highest award accorded for green buildings in Singapore.

ION Orchard’s signature futuristic architecture has already hauled two prestigious awards at MAPIC 2006 against stiﬀ competition from submissions from around the world. These were for ‘Best Retail Development over 20,000m2’ and the ‘Best Architectural Entry’ at British real estate periodical Estates Gazette’s EG Retail & Future Project Awards.

Duke University/National University of Singapore Graduate School of Medicine – RMJM Designed by RMJM, the new graduate school is the ﬁrst western medical school to open in Singapore. At eleven stories high, the new building is very vertical and boasts a plethora of sustainable design measures, which earned it green mark certiﬁcation.

National Heart Centre, Singapore – Broadway Malyan Broadway Malyan designed the S$ 160 million state-of-the-art national heart centre in Singapore which is expected to be completed in 2010. A key feature of the Heart Center is the abundance

Khoo Teck Puat Hospital – RMJM Khoo Teck Puat is the region’s leading healthcare institution and plays a major role in emergency and infectious disease management. RMJM incorporated these factors into the design of the building, creating subterranean blast-

protected triage and surgery facilities and providing decontamination and quarantine areas with dedicated mechanical, electrical and plumbing systems. This project costs $490 million and is stated to be completed in 2010. Supreme Court Singapore - Foster & Partners Fosters and Partners designed this building together with PWD Consultants. The Supreme Court is a major new judicial centre in Singapore. Environmentally, this building incorporates a range of passive climatecontrol devices, including solar shading to the offices, and the roofs are planted with trees, creating a blanket of greenery that shelters a public promenade. EXPO Station (MRT) - Foster & Partners This station was opened on 10 January 2001, and is part of the Singapore MRT Changi Airport Extension to the existing East West Line. It sports a space age architecture designed by world renowned architect Sir Norman Foster and with a distinctive feature of a large disc situated at the top of the glass elevator shaft; similar to the Singapore Supreme Court building. Capella Singapore (Luxurious Resort at Sentosa) - Foster & Partners Designed by Foster & Partners in association with a+i Asia, Capella Singapore has 111 villas and suites (the largest in Singapore). It also features Singapore’s first circular, glass-roofed ballroom and the entire project costs S$250 million. Singapore Sports Hub - ARUP Arup is part of the consortium that won the S$1.87billion Singapore Sports Hub project, which is expected to be completed in end-2011. This project is Singapore’s largest and flagship PublicPrivate-Partnership (PPP). The Sports Hub will be Singapore’s Premier Park - a fully integrated sport, entertainment and lifestyle hub for both the citizens of Singapore and its visitors.

www.uktradeinvestment.gov.uk orient 21

Economic & Business Insights

connecting business

PUBLIC RELATIONS HAS CHANGED… FOR THE BETTER By Frederic Moraillon, Managing Director – South-East Asia, & Jeremy Ee, PR Executive, EASTWEST Public Relations

ublic relations professionals today are required to deal with not only media relations, but also consumer relations and blogger relations. This distinction is more important than ever with the advent of the Internet and the rise in popularity of online social networks. Bringing together a publisher, a freelance journalist, a blogger and a couple of Singaporean businessmen, we recently discussed how the economics of what we do has been impacted by the Internet. From the point of view of a publisher who is concerned about circulation figures, advertisement sales and overall profitability of their publications, selecting the best articles to publish becomes their top priority and challenge. It also matters whether the article should go to print or be published online, as the dynamics of each medium is starkly different. Generally, a request from a company wanting to get into your publication would mean that the news value is not good enough to be there in the first place. At the end of the day, news that is being fed to you is not going to be that riveting. So almost everything that comes in from a company or agency, immediately gets categorised into online news. As we all know, the role of a PR agency is to help clients connect with their public. This is traditionally done through engaging publishers and journalists, who are the means to reach specific target markets. With the current decline of print and rise of online media, it is fast becoming too expensive for a publisher to cover stories that are not very interesting or even plain boring (in Web parlance, they won’t get many hits.) “Based on the number of estimated reads you get for a story about a company’s CEO coming to town, it is probably

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“One of the critical challenges for PR agencies is to convince clients on the value of uploading content on social media sites.” worth only $5 or at the most $50 dollars if it is a great story. Furthermore, paying journalist to cover the story will cost $400. The question then, is whether the story getting published is worth $395 to you. If it is, then you should be paying for the journalist,” says Tim Charlton, publisher of the Singapore Business Review.

with no interest in what the clients sell. So if publishers are not going to give me that coverage, I’ll have to ﬁnd an alternative and upload the content to Slideshare or Youtube, or even use traditional marketing techniques to reach the target audience. Remember, PR is but a part of a marketing mix, though an important one.

This simply means that the majority of press releases are not going to get published and end-up as junk mail or spam in a publisher’s inbox.

One of the critical challenges for PR agencies is to convince clients on the value of uploading content on social media sites, as it is apparent that clients still value and prioritise media coverage in mainstream publications and newspapers. When we tell clients that the media scene is not the same anymore, their response is that we are not competent enough to get the job done. What PR agencies are doing today is to create the content ourselves, post them on Slideshare, Facebook or LinkedIn, resulting in the disintermediation of the traditional media because such info is not worth their time. The agency still has to do what it used to do, create relevant content, but now it needs to create even more and broadcast it through the entire Internet supply chain.

So what does an agency need to do in order to get coverage for its clients? Firstly we need to think about the target audience that they want to reach in order to generate more revenue. What we do is called public relations, not publisher relations. We engage publishers and journalists because they are a channel to reach a desired public. Though we need to keep in mind that what we propose to them has to interest their readers ﬁrst. Anything less and we’ll fail. If, for example, 5 CIOs read my posting, and they are my target market, it is much more valuable, from a client’s perspective, than to reach 10,000 people

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“From the end-user point of view, information that comes out in the newspaper, may be a bit stretched from the truth. But when you get bloggers coming in, you read their opinion with a bit more interest, be it true or false. They ask questions that everyone thinks about, and they are willing to take the risk to put their opinions in public.” Chris Ong, local businessman. It is obvious that the economics of journalism, and PR, is changing and that the public sees more and more value in bloggers. This influences the way publishers pick and choose their stories as the public is always hungry for interesting news, not boring press releases. The media dynamics are shifting away from the traditional linear flow of information to become intermingled into a web of online sources. PR agencies need to convince their clients to change their mindset about how they can get noticed and who their most valuable target audiences are. Reaching out to them directly, instead of going through the traditional onal media, is the new valueueadding work agencies must st provide. Another aspect of publicc relations that we often hear from our clients is about using PR to increase their revenue – PR ROI. ROI has to be one of the most overused acronyms in the past decade. No activity has been left unturned to ensure that every drop of return has been found. PR is no exception. The UK’s Institute of Public Relations finds the term ROI to be misleading and prefers the term ‘outcome’. It seems, however, that practitioners use ROI to put themselves on equal footing with other disciplines and shows the seriousness of their profession. You can find discussions of PR ROI throughout the discipline’s history with the age-old, though allegedly in disrepute, advertising-dollar-equivalent (AVE) still being used to justify investing

in PR (Metrica found out that the use of AVE has increased from 28% to 49% over the last decade.) PR is one of the most cost-effective ways to get your message out-there. Though less controllable than direct marketing, it benefits from the thirdparty endorsement that its cousin doesn’t. So how do you start measuring your PR ROI? First, ask yourself why you would do PR. It’s a simple question but a powerful one. Many a times, the quality of PR reflects the beliefs of the company’s leader. Some use it to satisfy their ego, others simply tolerate it while treating it as an expense with no or little value. The better leaders will see PR as a business strategy helping them to build revenue and to do so, they need to be the best at it. The complexity of today’s companies and the business environment they work in requires nothing less. Ignoring PR, just like ignoring any other of the companies’ structural activities (sales, finance, HR, etc.), can only o be done at your own risk, ris and don’t complain when the wrong wind w comes your way. co PR is all about changing people’s attitude so they peo become willing to try and beco use your product or services. y It’s about selling, though not ab in the hardcore, in-your-face, way we equate the selling profession with. It creates familiarity, it offers the reader a chance to evaluate, to be accepted as a reasonable option worth looking into, in B2B parlance, a chance to be invited to the table and pitch your case. PR is not a panacea but it’s an important tool in your business arsenal and like any other tool, you need to be able to measure its results effectively. There are many ways to measure the value of PR. Here is a non-exhaustive list of questions that will help you define it: • Clipping: How many articles did you get? What where their tone? Were they positive, negative, neutral? Was your

mention prominent? Dominant? In the article? • Are you mentioned on equal footings with your competitors? Are you measuring well in independent comparisons? • Have you asked your prospect or customer the source of their info? • Can you measure the difference in demand before and after a PR campaign? • How many additional hits did your website achieve during your campaign? What was the percentage of those hits that turned into inquiries? Into sales? • Has the perception of your brand changed after the PR campaign? Did you know what it was before? • Did you receive any industry awards? How did it impact your invitations to speak at events? • Do you know the acquisition cost of leads? Can you correlate with their source? • What is your cost of reach (cost per thousand, CPT or CPM in the online world)? • Do you know your net promoter effect? i.e., how many people would recommend you? • Can you correlate with business outcomes: did your target buy more? • Can you invest in econometrics modeling? Do you have access to the information you need to do so? (yes, that age old tool can save the day) These few questions will allow you to start defining your measurement strategy. It’s not an easy task but a worthy one, and PR deserves to be measured to ensure it’s efficient and effective. Whether you measure the amount of coverage or the realisation of your objective, the future of PR resides in effectively measuring its impact. There are many ways to do it but it looks like web metrics will play an even bigger role in measuring the value of PR coverage and even link it to an actual sales lead. Now, what is the value of a PR coup again?

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orient 23

Economic & Business Insights

AIM: A STEADYING SHIP IN CHOPPY WATERS?

connecting business

By Matthew Gorman, Corporate Partner, Stephenson Harwood, Singapore

n recent weeks the world’s stock markets have been no playground for those of a weaker disposition. Volatility has been the order of the day as investors have had to digest a seemingly endless diet of uncertainty and plain bad news. The Greek debt crisis rumbles on amidst fears that it will infect most of the Eurozone; in Bangkok the death toll continues to rise as the red shirts refuse to disperse; the threat of volcanic ash clouds continues to plague the airline industry and it is feared that China will pursue further measures to address a potential real estate bubble.

USD2.7b offering in Hong Kong. Amongst the downsizers are several IPOs that had to price at the lower end of their target ranges including the US listing of Chinese solar energy player, JinkoSolar which recently raised US$64m. However, it has not all been bad news. Earlier this month, Masterskill Education Group, Malaysia’s largest private-sector operator of nursing schools, shrugged off market woes to raise around US$240m in Malaysia’s largest initial public offering so far this year and L’Occitane International, the French producer and retailer of cosmetics and skincare products, raised

“AIM’s investor base has not lost its appetite for exciting Asian businesses” As a result, global indices have risen and fallen on an almost daily basis as market participants try to navigate their way through a morass of conﬂicting news. Of course, for many dealers the market swings have been good news as they can make returns from trading the volatility. However, the general uncertainty has been less helpful for those companies looking to IPO.

more than US$700m in Hong Kong and was apparently “very signiﬁcantly oversubscribed”.

At the extreme, a number of IPOs have been pulled whilst others have been postponed or downsized. Those pulled include, New Century Shipbuilding’s proposed USD500m listing on Singapore’s Main Board (which would have been the largest IPO in Singapore this year) and Swire Properties mammoth

A 2008 Growth Company Investor / BDO Report noted that there were 147 companies from Asia listed on AIM as of November 2008. The halcyon days of 2005-2007 had seen AIM truly globalise as the international platform forged by AIM’s natural resource and property players provided the launchpad for the junior market to drive into ever more exotic sectors and geographies. With China’s growth engine to the fore and Asia’s emerging markets adding additional flavour, the region quickly gained a significant share of AIM’s pie, represented by a multitude of sectors including offshore services, orange juice producers and online advertising brokers.

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However, fast-forward to the end of October 2009 and AIM had shed 239 companies from its roster including a number of casualties from Asia. Of course, much of this fall-out can be attributed to the collapse in asset values and lack of liquidity that were the hallmarks of the Global Financial Crisis. Marry this with the natural tendency for investors to focus on local markets in harder times, and it is little wonder that AIM’s Asian alumni began to complain of poor liquidity and waning investor interest. When added to the then already common refrain that there is limited market access for the strong retail element that dominates the mid and small cap investor base on most Asian exchanges, the AIM message began to lose much of the luster that had made it such a beacon during the bull run of 2004 - 2007.

So, with a seemingly strong supply of companies still keen to IPO, where does all this leave London’s AIM market, which prior to the Global Financial Crisis had arguably been the market of choice for many companies in Asia?

However, the recent IPO of Stephenson Harwood client, CSF Group, a leading player in the Asian data centre industry, clearly demonstrates that (i) Asian companies still see AIM as a high quality listing venue and (ii) AIM’s investor base has not lost its appetite for exciting Asian businesses. In many ways CSF’s IPO bears all the hallmarks of an ideal AIM ﬂoat: a strong management team with a proven track record; a growing and proﬁtable

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The challenges involved in bringing Asian companies to AIM are much the same as for any other company, whether from the UK, Europe or elsewhere. That said, there are both practical issues and cultural nuances that may need to be dealt with.

business in a market characterised by a significant lack of supply; and a concept that is easily understood. Factor in a market cap of nearly GBP100m and management’s willingness to ensure a strong free float and the result was just reward for a well-packaged offering. So is this simply a one-off, or is it a sign that AIM remains open for (and more importantly is still attractive to) Asia’s entrepreneurs? In the writer’s view, there are a number of reasons why the answer is a positive one:

ß With no obvious signs of a quick turnaround in most Western economies, investors looking for strong growth plays are realising that they may have more success hunting in the emerging markets of Asia than closer to home.

On the practical side, language, foreign ownership restrictions and express limitations on overseas listings are obvious hurdles; whilst from a cultural perspective, a tendency towards tightly held family businesses (even post ﬂoat) and a reluctance to accept that market practice can, in certain respects, impose a more restrictive position than is strictly required by the AIM Rules, can call for some delicate handling in the planning stage. However, the number of Asian companies that have come to AIM provides manifest evidence that such obstacles can be readily overcome and that investors are both capable of understanding these issues and willing to ride with them.

ß London’s position as a leading global ﬁnancial centre is still a big draw for Asian issuers particularly as the market’s depth often results in a greater understanding of certain sectors. Indeed, in a recent interview for The Edge, Adrian Yong, CEO of CSF Group, cited London’s familiarity with the data centre industry as a key factor in choosing to ﬂoat on AIM.

“Asian companies still see AIM as a high quality listing venue” ß One of the most frustrating features of the last few years has been the number of good Asian businesses that have still wanted to raise funds through AIM despite a lack of investor appetite.

ß The “cash is king” mantra of 2008/2009 has started to wear thin as the returns on cash continue to languish and those with a more risk-oriented proﬁle look elsewhere for growth.

ß One of the legacies of the 1997 Asian Financial Crisis is a landscape in which many Asian economies, and the battlehardened entrepreneurs that inhabit them, were better placed to tackle the Global Financial Crisis when it came, and have emerged ﬁtter and stronger than many of their Western counterparts.

ß Regional bourses within Asia continue to struggle when it comes to developing a second board that can appeal to nondomestic issuers. So, if Asian companies are still hot, what of the common complaint that they are more of a challenge when it comes to the IPO?

Clearly, current volatility levels are making it a diﬃcult time for the regions companies to come to market, whether they chose to do so on a regional bourse or in London. However, for those of stronger constitution who are prepared to tough it out and ﬁght for a valuation, the capital markets remain cautiously receptive albeit that the ride may be somewhat bumpy until some of the macro factors mentioned above settle down.

www.stephensonharwood.com

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Economic & Business Insights

coneecting business

ROUND 2 OF THE CREDIT CRUNCH  THE EXTREME VIEW By Dr Alan King, CEO for GS Wealth Pte Ltd

hat if the current “recovery” is only a lull between the 1st and 2nd rounds of the Credit Crunch with more aftershocks to follow at regular intervals over the next few years? We are facing a sovereign debt crisis in the Euro zone that is being underestimated in other asset markets – equities, commodities and property and could lead to a second credit crunch in the second half of this year. As Wolfgang Munchau recently wrote in his excellent series of FT articles on the Greek crisis and its repercussions, “Greece will default, but not this year”. Spain, Italy and Portugal are already in the bail-out queue. Eastern Europe will also return to the radar. The UK will be facing a major devaluation of the pound, as in all past sterling crises. And how good is the US economy and ﬁnancial

– 9 were driven by extreme credit stress. The risk-fuelled equity market re-bound of 2009-10 has been driven by huge infusions of credit by governments, many of which, without correcting their severe structural problems, have now run out of money, especially in Europe. The answer is that credit is bound to get very tight again with big market falls quite a possibility. In recent times liquidity, not fundamentals, has driven markets, and it may well now dry up again.

“2007-2009 meltdown was just Round 1, and, after a stimulus driven break, Round 2 is now rapidly approaching” recovery? And really scarily, what if China falters with its super-charged bank lending and accompanying monster growth ﬁgures, but limited systematic risk controls? So, is the ﬁnancial crisis over, or has it just been taking a bit of a time-out, while the world’s governments emptied their treasuries to save their “too big to fail” banks? An emerging thesis therefore is that the 2007-2009 meltdown was just Round 1, and, after a stimulus driven break, Round 2 is now rapidly approaching. The focus is now correctly back on the credit markets. The asset crashes of 2007

26 orient

What if Europe, as a whole, has to go to China and the Middle East for a bail-out, under the guise of the IMF, because the US and Germany are not in a position to hold up the Western financial system. Japan suffers badly in the same scenario. Fanciful maybe but, all of a sudden, not an impossibility. So, I fear that the events of 2007-09 were just the start with Asia and the Middle East the big winners, although only in relative terms. But, given the major weakness in the US, and the rapidly deteriorating situation in Europe, what if things now go wrong in China? All bets are off then. My view is that the world is much too optimistic and another reality check is coming.

Against such a background, we make no apologies for not abandoning our conservative instincts, but also accept that holding cash, unlike diversiﬁcation and asset shorting, is not hedging. So, we are focusing on fund managers and asset strategies, which, we believe, balance the right defensive qualities with a track record of solid performance in a range of market conditions, and are giving us every indication of understanding the above scenario. But it may be time to defer that house purchase or any headlong rush into equities, corporate bonds and industrial commodities and stay liquid with some exposure to precious metals, government bonds and the US$ and other safe haven strategies. A 2nd severe ﬁnancial crisis, this time based on sovereign debt defaults, the prospects for which are now clearly before us, is suddenly a very real possibility.

www.gswealth.sg

www.britcham.org.sg

Economic & Business Insights

connecting business

UK INFLATION SPIKES  INTEREST RATES REMAIN FLAT  BAD NEWS FOR SAVERS By Aidan Bailey, General Manager Singapore, International Division, The Fry Group

onsumer Price Inflation (CPI) in the UK showed an unexpected rise from 3% to 3.4% in April. Although economists had been expecting a rise in inflation, the consensus had been a more modest rise to 3.1%. What are the main reasons behind this spike in inflation? According to the Office for National Statistics (ONS), inflation figures were pushed higher by a rise in the price of petrol (because of the relative strength of the dollar and higher refining costs, as well as the increasing price of oil) and food. The weakness in the pound is also forcing companies to raise the prices of imported goods.

savers who will find the real value of their savings erodes fast if they cannot find accounts paying rates to match the inflation increase. For expatriates, finding a bank account offering much more than 3% is a challenge and, for UK tax payers, the hurdle is even higher. According to financial website Moneynet, savers paying basic rate tax need to find an account paying over 4.25% to ensure their savings keep pace

The governor of the Bank of England, Mervyn King, has said that he expects inﬂation to fall back towards the target rate of 2% in the coming months. Analysts therefore expect the Bank to keep interest rates low to stimulate growth. “We would not expect the Bank of England to be swayed by short-term movements in commodity prices, so today’s ﬁgures should not have much bearing on interest rates. We still expect rates to remain on hold for the remainder of this year,” said Hetal Mehta, senior economic adviser to the Ernst & Young ITEM Club.

“savers paying basic rate tax need to ﬁnd an account paying over 4.25% to ensure their savings keep pace with inﬂation”

The continuing impact of the rise in VAT, which went back up to 17.5% in January, and the effect of flat gas bills relative to this time last year, when they fell sharply, also contributed to the spike in inflation. Other rising costs included clothing prices while airfares were up 11.3% on last year.

with inflation. Higher rate taxpayers would need to find an account paying 5.67% to match the CPI figures. The rate of inflation is now way above the Bank of England’s set target of 2% and at its highest level since January. So why aren’t interest rates rising? Despite the sharp rise in prices, analysts expect the rate of inflation to fall again in the coming months, as weak economic growth and high unemployment dampen price rises.

The inflation figures are bad news for UK interest rates have been at the record low of 0.5% for 13 consecutive months. The policy helped to bring the UK economy out of recession in the last quarter of 2009, when it grew by 0.4%. However, if prices continue to rise sharply, the Bank’s Monetary Policy Committee (MPC) may have to raise rates and, if the CPI inflation rate remains above 3%, Mr. King will have to write another letter of explanation to the Chancellor.

www.thefrygroupsg.com

28 orient

www.britcham.org.sg

creating opportunities

Corporate Social Responsibility

“FUTUREPROOFING YOUR BUSINESS FOR FUTURE SUCCESS” THE NEED FOR A ROBUST CSR POLICY By James Wright, Managing Director of CSR, Sustainability and Not-for-Proﬁt at Grayling

magine you were to restart your business from scratch tomorrow. What would you change? Would you change your values? Would your business live those values diﬀerently? Would you try to be better corporate citizens? Would you be more ethical, give more thought to sustainable development and environmental issues?

Forget the barriers and the difficulties. How would you make your product differently, deliver your services differently? It is what I call the ‘Stop. Reset’ process. It is this type of exercise that businesses need to undertake if they have ambitions of being leaders in sustainability and corporate responsibility, and to be best positioned for success in the future. Developing strong sustainability and corporate responsibility strategy builds trust with your stakeholders and provides numerous business benefits. It allows you to communicate to groups and organisations that you may have not been able to talk to before, whether this be government, international NGOs or local community groups. It can provide access to new investment and growth opportunities (see table 1). It can save you money through efficiency

30 orient

savings. It can help attract and retain talent. It can protect and enhance your brand. Importantly, sustainability is about futureproofing your business, enabling you to meet the needs of future consumers. Strategic communication Sustainability campaigns seem to be the rage at the moment yet it is not a fad or a fashion, and it is certainly not a tool to get some fluffy PR. It is strategic and it’s business critical in future proofing

many cases where the businesses record was actually pretty good. The problem was that neither the media nor the NGO knew what they were doing. The businesses hadn’t communicated it. But sustainability communications is not about waving a ﬂag and saying “look how fantastic we are”, it is about sincere, evidence based communications, whether through media relations, digital channels, investor relations or stakeholder engagement programmes.

“Developing strong sustainability and corporate responsibility strategy builds trust with your stakeholders and provides numerous business beneﬁts” your business and it is important to communicate it. If stakeholders don’t know you are tackling sustainability issues then you are missing a trick and perhaps even exposing yourself to unfair accusations. I have seen many businesses attacked by media and NGOs on areas where they had made signiﬁcant headway, and in

I am often brought into meetings with new clients that will say they are keen to promote their CSR or sustainability credentials and they will often have their CSR report to hand. The view seemingly that if we just got this document into the hands of the right people then everyone would see how wonderful they are. CSR or sustainability reports are about governance, a management tool to enable you to progress and improve. They provide the evidence of what you are doing, which is all great but they are not a communication tool. The key is to bring to life your sustainability vision and your story in a way that your stakeholders will appreciate and understand. The goal for sustainability communications is to reassure people that your business is a good one. May even make people feel good about your business. Whether that is your employees feeling good about working for you, suppliers feeling good about working with you, customers feeling

www.britcham.org.sg

good about buying from you, investors feeling good about investing in you. Where to start With austerity measures being implemented in some countries, such as Greece, to tackle deficits and the global recession we are seeing consumers turning in the short term to cheaper goods and it is also leading companies to ‘put off’ making long term sustainability decisions. This is a trap, as failure to prepare and gear up will leave businesses on the back foot in the future. So, where do you start? In the words of Henry Ford “a business that makes only money is a failure”. Ask what benefits your business brings to the communities in which it operates and what benefits would you like it to bring in the future? Are there any negative impacts and if so, how do you act responsibly to minimise this? Ask who do you want to reach and

chosen to do is to create sustainability marketing brands. They are appearing everywhere and in every industry. BMW has ‘Eﬃciency Dynamics’, GE has ‘Ecomagination’, IBM has ‘Smarter Planet’, Marks & Spencer has ‘Plan A’, Starbucks has ‘Shared Planet’ and so on and so forth. This has enabled these companies to cleverly package everything they do as a responsible business in an easy and consumable format, and it is striking a chord with stakeholders both internally and externally. Taking your internal stakeholders with you is vital to success. They are the people that will be implementing the strategy and they should be proud of the business they work for, they are your brand ambassadors. A neat way of doing this is to get them involved in the development of new sustainability ideas and initiatives. It will give them a sense of ownership and encourage them to ensure KPIs are met.

“a business that makes only money is a failure” what is the best way to reach them? It is vital to understand how doing all of this can in turn bring tangible beneﬁts to your business. This business case is what will often determine the amount of resource an organisation will put behind developing and implementing sustainability strategy. Packaging up sustainability The problem is that words like “sustainability” and “corporate responsibility” can often be meaningless to certain stakeholders. There is even, often a misunderstanding internally about what it means for the business and so communicating it to stakeholders will always be diﬃcult until everyone is on the same page. What many businesses have

Externally it is often good to talk not just of the accomplishments, but of the challenges you face and how you plan to tackle them. Some businesses shy away from this, frightened of criticism if they admit to not quite meeting expectations or targets. NGOs and opinion formers in particular understand that the big issues are tough and will appreciate the challenges you face. What these inﬂuencers really want to know is that: A) you accept there is a problem; B) you are making a genuine and concerted eﬀort to tackle it; and C) you are doing so with transparency and integrity. Many of the big NGOs are becoming more and more supportive and they are often keen to develop partnerships with business to help address problems.

Asian expansion The number of Asian companies expanding into foreign markets has doubled over the past 5 years and this pace is quickening. This provides several problems. The ﬁrst is that the vast majority of CSR leaders are Western companies and so stakeholders in Western markets will expect the same level of governance and rigour to be given to these issues by new players. Indeed many contracts require, as part of pitch and tender processes, evidence of actions being taken by the supplier company, whether this is in terms of ethical trade, human rights, environmental actions or community support, so without this they won’t be able to bid. The second is that as more Asian businesses spread their wings overseas they may be able to ﬂy under the radar for a while and so will have no reason to truly embrace sustainability practice. This would leave them exposed when someone somewhere begins to scrutinise that business as it becomes better known and more successful, and if things don’t stack up, those wings could be snipped. However, events such as the Shanghai Expo, where Asian business is being showcased to the world, are acting as catalysts across the region to push the agenda. Many are keen to prove that they can compete on sustainability against their Western counterparts or even become leaders and this can only be a good thing.

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Corporate Social Responsibility

creating opportunities

Leadership Being a leader in sustainability and corporate responsibility is not about meeting regulatory requirements or even social expectations. The former simply makes you compliant and the latter is a common misconception. If your stakeholders would say “I would expect them to do that anyway” then this isn’t leading and doesn’t set you apart. It’s obvious to say it but leading requires leadership and this can only come from the very top of the business. The best businesses in terms of sustainability have strong direction and they invest appropriately in it. The business begins to ascribe its values from its sustainability strategy.

been brought up with diversity, the explosion of connectivity and the internet, and worldwide eﬀorts to save the planet. Ambitious, motivated, conﬁdent and sophisticated, they will ask for things that previous generations may have been too nervous or embarrassed to ask for. Comfortable communicating through multiple platforms, they want information immediately and being able to express their point is important to them.

They have seen their parents working hard, long hours only to find themselves with financial problems during the global recession and they don’t want to find themselves in a similar position. They want a life of riches rather than a rich life. Globally this group will more than ever seek reassurance that companies are ethical and environmentally sound and be much more willing to trade up if they don’t like what they hear.

Generation Y A companies values will become increasingly important in the coming years in attracting future consumers. Lets take Generation Y, people born between the late 70s through the 90s, and otherwise known as the ‘now’ generation. By 2020 we will see an explosion in the global middle class and as this generation builds its wealth their power will naturally increase. Whilst they may already be signiﬁcant purchasers of products and services, in ten years they will have become a major force in the economy. They will be the next group of global managers and leaders - and they are game changers for businesses wanting to attract them. The risk of losing out to more agile competition has led to many businesses, such as Microsoft touting the mantra that we must ‘adapt or die’ to this generation. This is a generation that has some major diﬀerences to previous ones (Boomers and Generation X). They are global in outlook and multicultural. They have

32 orient

The need for a robust CSR policy : Supporting tables Table 1: Highlighting that the DJSI (a global index tracking the ﬁnancial performance of the leading sustainability driven companies wordwide) Asia Paciﬁc regularly outperforms MSCI.

www.britcham.org.sg

Negative press around sustainability and corporate responsibility issues can have a considerable impact on share price. Table 2: Impact on BP share price against Dow Jones Industrial average following oil spill and environmental fall in the Gulf of Mexico.

If businesses want to be best placed to make the most of changes in customer attitude and behaviour and attract Generation Ys. To stand up to increased scrutiny from media and opinion formers. To pre-empt future regulation and legislation, rather than be forced to change, they need to embrace sustainability strategy. It can be a market diďŹ&#x20AC;erentiator and its success lies in weaving it into the fabric of the business and then strategically communicating it to stakeholders. Are you best positioned for future success, are you ready for the challenges of the next generation of consumer? If not, perhaps you should ďŹ nd time to stop and reset.

www.grayling.com

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High Commission News

building networks

BRITISH HIGH COMMISSION NEWS JUNEJULY 2010

I’

m sitting down to write this less than 12 hours after the end of the Lord Mayor of the City of London’s visit to Singapore. The Lord Mayor used his visit to remind people of the strength of UK’s financial and professional services, and to highlight the opportunities still to be grasped for further partnership between the UK and Singapore. I’ve heard an overwhelming array of statistics – indeed the Lord Mayor said in his British Chamber speech that it would take 15 minutes to give you them all – but here are just a few: - The UK’s financial services sector contributed 12.1% of total tax in 2009 - There are 280 banks represented in London: that’s more than New York, Frankfurt and Paris combined. - The UK is responsible for almost a fifth of international bank lending and over a third of foreign exchange trading takes place in London. - £3.7 trillion total funds are managed in the UK – second only to the US. - The London Stock Exchange has more overseas companies than any other exchange. The Lord Mayor focused on two key areas during his visit, with potential for further co-operation: asset management and arbitration. And he spoke at two events, organised by UKTI, to highlight the opportunities. The UK had a record year in 2009 in asset management, taking £26 billion in net retail sales – 45% above its previous best year. As a result, by the end of 2009, total funds under management had reached the highest on record at £500 billion. Against this background, the UKTI seminar, at which 5 British based asset management firms were represented, highlighted innovative and niche products not currently available in Singapore. If you would like to learn more about these products, please take a look at our website – www. ukinsingapore.fco.gov.uk/ukti The UKTI seminar on arbitration demonstrated that there are

36 orient

opportunities in the development of arbitration in Singapore and in London, working together. UK law firms are already a global leader in commercial law and arbitration, and English law is the law of choice in many contracts around the world. Singapore is already a major hub for law firms in Asia, with 95 international law firms here. It aims to become a centre for arbitration, and has established excellent facilities for arbitration at Maxwell Chambers. The discussion focused on increasing the cost effectiveness and efficiency of arbitration - and perhaps exploded a few myths about arbitration. Allen & Overy, DLA Piper, Hill Dickinson, Norton Rose, Watson Farley Williams, and the Londonbased Zaiwalla & Co all participated in this event.

want more detailed discussions. The ﬁrst three seminars will be covering Indonesia, Vietnam and Korea. Within UKTI Singapore, this work is being led by Dominic Lyons, who has recently joined the team. His sole focus is supporting you in other Asian markets: if you’d like to speak to him further about this, please do give him a call on 6424 4351 or drop him an email - dominic.lyons@fco.gov. uk

We’ll be doing more work on both of these issues in the months to come.

Best wishes

Over the next few months, UKTI will be working with the British Chamber to deliver a new series of events for British companies operating from Singapore. My colleagues from a variety of Asian markets will be visiting Singapore to deliver seminars on the opportunities for British companies in those markets. They’ll also be oﬀering one to one meetings, for those who

For those of you in the UK in July or November, the Asia Taskforce will be holding a series of meetings across the UK, working in partnership for the ﬁrst time with RBS (big thanks to Alan Goodyear and James Walton for this!) More information can be found on www. businessinasia.co.uk

AMANDA BROOKS DEPUTY HIGH COMMISSIONER DIRECTOR OF TRADE AND INVESTMENT www.ukinsingapore.fco.gov.uk www.uktradeinvest.gov.uk

www.britcham.org.sg

UKTI SUPPORTED EVENTS 2010/11 DATE

EVENT

June 30 Jun - 2 July The Children’s Media Conference 2010 (previously known as Showcomotion) 7-12 MIFA (Annency Animation) 24 UK reputational showcase, Shanghai 28-2 Jul Explore Expert Wales July 1 13 19-26 August 14

5 yrs on- UK’s capability in sports linked to Soccerex Asia Forum Inward mission to Asia Attractions Expo 2010 KL Farnborough Air Show

Reception & mini exhibition in support of Inaugural Youth Olympic Games

Sept 20 Sep-1 Oct Asia Pac ICT Clinic IBC - Low Carbon Vehicles 15-17 UKTI stand & Networking Reception at Medical Fair 15 Technical Seminar by Healthcare Trade Mission to Singapore

DATE

EVENT

Oct IBC - DSO Security Sector 4th Qtr/2011 SE Region Meet the Expert Day 1 Inward mission to World of Learning 1 Inward mission to BES Asia Nov BDV and IBC to Technology World 30 Nov -3 Dec Networking Programme in support of OSEA Dec 8-10

Networking reception & seminar Asia TV Forum

Jan-11 12 15

Inward mission to BETT Education Show BDV to Arab Health

Mar-11 1 1 13

UK Stand at Biomedical Asia Inward mission to Education Show BDV to Int’l Food & Drink Exhibition, ExCel Ldn

TBC Railway Projects Seminar Regional BDV visit to W Midlands and SE to meet companies

orient 37

BritCham

building networks

CHAMBER NEWS  JUNE  JULY 2010 For all of you who were not able to attend the AGM on May 19th a quick heads up on what has been happening: Terry O’Connor, Board member of the Chamber for eight years and President for the last four years stepped down from the Chamber presidency. Terry’s outgoing President’s report comprised the following key messages summarizing the Chamber’s development over the recent past: BritCham 2010 – Bigger – Closer – Smarter • Continuous and sustainable membership growth • A revived and diverse events programme • Excellent relationships with sponsors, both long term and new • An active and engaged membership contributing to the Chamber development through Business Groups and Committees • A close and productive working relation with UKTI and the BHC • Strong ties with Singapore Business Associations (SBF, EDB) • A capable and committed Management Team • A very strong cash position Incoming President Steve Puckett is committed to lead and drive continuous growth and development. I would like to invite all members who are interested in participating in one of the Chamber Committees or one of the Core Business Groups to speak to Steve or myself. Being involved means getting most out of your Chamber!

38 orient

Shortly before the AGM Terry, Steve and I attended the fourth BISEA conference hosted by the British Malaysian Chamber of Commerce in KL. The main agenda items were an economic up date about key markets in the region and an exchange of the developments of the respective Chambers. The key discussion evolved around how our respective members can benefit most from the BISEA alliance. Currently BritCham Singapore offers a BISEA webpage enabling members to easily click through to the other Chamber’s sites. All BritCham Singapore members can attend events presented by the Chamber’s in the region at respective member prices. Individual connection to respective contacts in the other Chamber’s are made upon request. We are working on agreeing a special membership fee scheme applicable for members in one Chamber if they wish to join one of the BISEA Chambers. Our Membership Directory 2010/2011 will also include information about BISEA. Following up on information I gave in the April issue, BritCham’s Entrepreneur and Small Businesses Group hosted their first presentation on Thursday May 27th. A group of 18 members gathered at Host @ Clark Quay over lunch to discuss the Top 10 Mistakes of Entrepreneurs. The event was perceived as intimate, personable and highly valuable with tangible tips to take away for entrepreneurs and small business owners as well as members thinking of changing their career path and considering a start up themselves. We will be hosting a presentation every last Thursday of the month at the same

time and the same venue. Look out for information on the website and for our individual event announcements! I was also referring to the Singapore Budget 2010 in the April Issue mentioning that some of it’s measures and complexity would need to be explained in a bit more detail. For example did you know that under the Productivity and Innovation Credit = PIC businesses can deduct from taxable income 250% of their ﬁrst $300,000 spending for each of the following six activities: • • • • •

Research and Development Registration of Intellectual Property Acquisition of Intellectual Property Design Activities Automation through technology or software • Training of employees We will present a series of comprehensive up dates in special newsletters in the next couple of weeks. The results of the recently conducted membership survey are going to be available by mid June and a report will be sent to all our members by end of June. Best wishes for a pleasant and relaxing summer break wherever you are planning to spend it!

Brigitte Holtschneider Executive Director British Chamber of Commerce www.britcham.org.sg

www.britcham.org.sg

BRITISH CHAMBER OF COMMERCE, SINGAPORE YOUNG PROFESSIONALS COMMITTEE “See a need, fill a need”, was the motto of the main character from the 2005 computer-animated comedy Robots. In that spirit of adaptation BritCham recognised a large segment of the business community was perhaps not having their needs fulfilled. So the Chamber has launched the BritCham Young Professionals Committee with Miles Gooseman at the helm. Miles, Area Manager, Singapore & Malaysia for Royal Skandia Life Assurance Ltd., and the Chamber office saw an opportunity for the Chamber to engage existing members and attract a new, younger membership. The new committee will explore ways of encouraging and engaging professionals under 35. This will also provide an added benefit for current Corporate members, who will have given the opportunity to develop the skills of up and coming

employees by encouraging their involvement in Chamber activities and networks. To get a better feel for the needs of the ‘young professional’ a focus group discussion was conducted by the Chamber and moderated by Chamber member Dennis Heath, of WayAhead Leadership. Findings indicated ‘young professionals’ would like access to experts in career development, leadership, people management and mentoring. The group also showed a particular interest in the collaboration of business and sport and events that would be appealing to young professionals; focused, diverse, intimate and inspirational. These ﬁndings have formed the basis and focus for the activities of the Young Professional’s Committee. The group will be holding several events throughout the year providing

opportunities specifically for young professionals. The first initiative is a new kind of networking and development event. The ‘Dragon’s Den’ Business Challenge, to be held Thursday, 1st July 2010 at The Tanglin Club, is a business simulation pitting five teams of four against each other to see who can steer their business to success. Book your best four up-and-coming professionals for this exciting opportunity online at www. britcham.org.sg. The committee also has a Young British Chamber of Commerce LinkedIn group. An online forum for ‘young professionals’ to connect and keep up-to-date with the latest activities from the Committee. If you are interested to be part of the BritCham Young Professionals Committee please contact the Chamber office or connect with Miles on LinkedIn.

orient 39

BritCham

NEW MEMBERS STERLING Gazprom Marketing & Trading Singapore PTE Ltd. Arthur Tait managing Director Sterling www.gazprom-mt.com Qatar Airways Andrew Stephen Country Manager Singapore Sterling www.qatarairways.com/sg StarHub Ltd Neil Monteﬁore CEO www.starhub.com Thales Security Asia PTE LTD Ian Woodroofe CEO www.thalesgroup.com CORPORATE PLUS BSI Group Alwi Haﬁz Managing Director, ASEAN www.bsigroup.com BW Furniture Pte Ltd Charlie Brazier Managing Director Corporate Plus www.bwfurniture.com GL Noble Denton Mark McGurran Business Development Manager www.gl-nobledenton.com

London Oﬀshore Consultants Rutger Bierman Director www.locs-group.com Prime Cuisine Pte Ltd Felomina D Rulloda Managing Director www.bobbys.com.sg The AES Corporation Mark George Sandy Regional General Counsel, Asia & Middle East www.aes.com BDP Oil and Gas Logistics Pte Ltd Paul Jones Executive Director bdpoilandgas.com CfBT Education Pte Ltd Kari Lawson Charity www.cfbt.com CMC Markets Singapore Pte Ltd Ward Gavin Director of Asia (Ex-Japan) Global Marine Systems Limited Ian Douglas Managing Director www.globalmarinesystems.com K2 Specialist Services Pt Ltd Nicholas Robert Conway Managing Director www.k2velosi.com CORPORATE SME

Global Financial Consultants Pte Ltd Adrian Love TBC www.gfadvice.com INCE & CO Richard Lovell Managing Partner www.incelaw.com Kennedys Julian Wallace Partner www.kennedys-law.com.sg

40 orient

Actinium Consulting Pte Ltd Alexander Knight Director www.actinium.com.sg Advance Supply Chain Solutions Pte Ltd Pavan Sharma Country Manager www.advancescs.com

www.britcham.org.sg

NEW MEMBERS Commensus Pte Ltd Peter Lazou CEO - Asia www.commensus.com

OVERSEAS CORPORATE

Competitive Capital Consulting Pte Ltd Shaun Warren Partner www.competitivecapital.com

Chadwick International Andrew Chadwick Principal www.chadwick-international.com

EASTWEST PR Frederic Moraillon Managing Director - South-East Asia www.eastwestpr.com

Joseph & Partners Jeremy Mark Joseph Partner www.jnplaw.my

Elmwood Design Singapore Pte Ltd Dominic Mason Managing Director www.elmwood.com

Lawford Exhibits Ltd Francesca Rabjohns Director www.lawfordexhibits.com

eVantage Technology Pte Ltd Sam Walker Director www.evantage-technology.com

McKinney Rogers International Ltd John Collins Partner, South Asia www.mckinneyrogers.com

Flying Dragon Adventures Pte Ltd Conrad Ho Managing Director www.megazip.com.sg

Young Samuel Chambers (“YSC”) Ltd Peggy Lam Senior Consultant www.ysc.com

BOOTS RETAIL (THAILAND) MICHAEL CAVES Mr.

Majuko Enterprise (S) Pte Ltd Y S Nam Managing Director Masters Medical Pte Ltd. Roger Schmid General Manager Asia www.masters-uk.com McLaughlin IP Pte. Ltd. Michael McLaughlin Patent and Trademark Attorney www.mclaughinip.com Partners In Brass Pte Ltd David Smith Managing Director www.partnersinbrass.com/ ZoMedia Pte Ltd Pierre Perrett Managing Director & Creative Director www.zomedia.sg

Keith Price Paul Coleman Andrew Douglas Emslie PETER RYAN Sree Kumar Dean Ward Manish Singh Michael Warren Peng Huat Ang Rainer Ackbari Sara Varela Suzy Goulding Kenny Rogers Graham Prior Gregory Errol Hobson Raphael Young Benjamin Paul Arnott

Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member Individual member

orient 41

BritCham

BRITISH CHAMBER OF COMMERCE, SINGAPORE BUSINESS AWARDS 2010

building networks

Creating Opportunities, Showcasing Excellence OUR MISSION To recognise outstanding achievements of businesses and individuals within the Singapore business community.

AWARD CATEGORY Customer Service Excellence Companies with a continuous proven commitment to serve customers/clients

OUR VISION To be the premier Business Awards in Singapore, which recognises outstanding achievements of both British and Singaporean businesses.

Extraordinary CSR Practice Companies with implemented CSR practices & programmes, outstanding HR, Health & Safety, Work Life Balance policies and environment & sustainability commitments.

To provide the platform of choice for promoting and showcasing business achievements. 10 YEARS ON – WHAT’S NEW? The British Chamber of Commerce, Singapore has been recognising excellence in local and international business for the past 10 years through its British Business Awards. This has positioned the Chamber as a leading exponent of business interests in Singapore. In 2010 the Chamber aims to encourage a wider and more diverse field of nominations with the re-vamped British Chamber of Commerce Singapore Business Awards. The 2010 awards will place greater emphasis on the collaboration between British and Singapore business. NEW CATEGORIES As part of the awards re-focusing, the British Chamber of Commerce Business Awards will introduce new award categories. These will be organised away from the traditional vertical industry sectors and will incorporate horizontal cross-sector business performance and policy criteria. The British Chamber of Commerce Singapore Business Awards seeks to be relevant across industries and hence attract a wider variety of businesses and a stronger field of contenders. Instead of only demonstrating excellence and leadership in their industry, companies will now be able to associate themselves with specific business initiatives and strategies, providing potential winners with an alternative platform for showcasing themselves to the business community.

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Productivity Improvement Companies with productivity practices that have enhanced their business model and performance Innovation in Business Companies/organisations/ individuals who have shown innovation in their business practices Inspirational Creativity A broad field of creative achievements from industries such as PR, Marketing. Advertising, Product/Business launches, Design, Architecture, Projects & Campaigns which have shown ingenuity and taken expectations to a new level Education & Training Excellence Schools, Colleges, Universities, Executive/ Personal Development professionals or companies which have internal training programmes Outstanding Professional Services Any company providing professional services for example - banks, accountants, aviation & aerospace, legal, HR, executive search, real estate, shipping, energy, oil & gas and offshore services which provide outstanding levels of services and offerings to their clients and customers. Young Professional of the Year Anyone under 40 years old who has performed outstandingly and shown definite career progress. Companies may enter on behalf of an outstanding employee or entrepreneurs may enter themselves.

ELIGIBILITY The British Chamber of Commerce, Singapore Business Awards have broadened the eligibility criteria for award entrants. Firstly, ALL British Chamber of Commerce, Singapore members are eligible to nominate themselves for an award. Secondly, ALL Singapore registered enterprises who can demonstrate British business interests, (e.g. products, clients, management, etc), connections, partnerships or links are eligible for a British Chamber of Commerce, Singapore Business Award. EXPOSURE The British Chamber of Commerce is committed to building networks, connecting business and creating opportunities. The British Chamber of Commerce Business Awards is one of the most valuable platforms the Chamber has to oﬀer for nominees and eventual winners in achieving these aims. The 2010 awards will create more exposure and publicity for the entrants not only at the Gala Dinner itself but during the process leading up to the Awards presentation as well as post event. HOW TO ENTER The entry process is simple: • Ensure that you are eligible to enter • Select the Award Category in which you wish to be considered • Go online to www.britcham.org.sg and click on ‘Business Awards 2010’ to download the entry form. • Develop a Submission document using the Judging points for your selected category • Prepare any supporting evidence/ documents • Email the entry form, submission and supporting documents to: businessawards@britcham.org.sg prior to the deadline of 13th August 2010