Orient Issue 43 by BritCham Singapore

BRITCHAM ORIENT MAGAZINE

Orient

Building Networks Connecting Business Creating Opportunities WWW.BRITCHAM.ORG.SG

THE OFFICIAL MAGAZINE OF THE BRITISH CHAMBER OF COMMERCE - SINGAPORE

ISSUE 43 / JUN–JUL 2013

SPECIAL FEATURES

ISSUE 43

ISSN 0219-1245

9 770219 124002

JAPANESE INVESTMENT IN SINGAPORE

IN FOCUS: JAMES TAN

Time and time and time againâ&#x20AC;Ś

Friends Provident International (FPI) received EIGHT awards at the International Adviser Life Awards 2012.

www.fpinternational.com Friends Provident International is a trading name of Friends Life Limited for business conducted outside the United Kingdom www.fpinternational.com

We are proud of the award-winning history of our products and services – we have been winners every year since the awards first took place in 2009.

We are particularly pleased to have won the new ‘Readers’ Choice’ award and would like to thank our distribution partners for voting for us.

The awards recognise our ongoing commitment to providing our customers and distribution partners with the products they need, backed by excellent customer service.

With some exciting developments in the pipeline, we expect to remain at the forefront of the industry, by continuing to deliver compelling propositions to the market.

For further information on how FPI can help your customers achieve their financial aspirations, please visit our website www.fpinternational.com

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Experience more of Britain for less

British Chamber of Commerce members enjoy an exclusive 10% discount on our fares from Singapore For more details visit ba.com/britcham

1. TEA Also English for water. 2. STONEHENGE Was it druids, greeks or aliens? Its history shrouded in mystery makes it so appealing. 3. ROYAL GUARD We dare you to make a royal guard laugh. 4. PHONE BOOTH Once used for phone calls. Now used for photoshoots. 5. RIVER THAMES All that London rain has to go somewhere! 6. DOUBLE-DECKER BUS Hop on, hop off! You have not seen London till you have been on top. 7. NATURAL HISTORY MUSEUM Like an antique shop. Only nothing is for sale. 8. ABBEY ROAD Home of UK’s most frequently stolen street sign. 9. PUB Museums of the neighbourhood. 10. FISH & CHIPS Today’s catch in yesterday’s paper. 11. PIE The best thing to put in an English pie is your teeth. 12. OXFORD STREET You have been there in Monopoly. Now see the real thing. 13. BIG BEN The bell in the grandfather of grandfather clocks. 14. BUCKINGHAM PALACE One prince still up for grabs. 15. WEMBLEY STADIUM A cathedral of football and music. 16. THE TUBE Mind the Gap! 17. 30 ST MARY AXE Or the gherkin, as Londoners like to call it. Terms and Conditions: Offer ends 31 December 2013, unless sold out prior. Subject to availability. Discount of 10% is applicable to Economy, Premium Economy and Business Class only. Valid for travel between 02 May and 31 December 2013. This offer is open to active Singapore based Britcham members only. Bookings of non-members will automatically be cancelled. Valid on BA operated flights from Singapore and strictly not allowed on code share and franchise flights. Discounts not applicable on taxes and surcharges. Valid when fares booked at ba.com/britcham site only. British Airways reserve the right to amend or withdraw this offer without prior notice. Standard British Airways terms and conditions apply.

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Contents

PRESIDENT’S MESSAGE SPECIAL FEATURES

Japanese Investment in Singapore

In Focus: James Tan, Friends Provident International

FEATURE 25

Malaysia General Election 2013

The Asian Opportunity

Client Strategies for Supply Chain Finance

British High Commission 36

UK Budget 2013: Staying the Course on Economic Growth and Fiscal Responsibility

AT THE CHAMBER 43

Executive Director’s Message

BritCham Annual General Meeting 2013

Britain in South East Asia News

Business Group News

Sterling News

Corporate News

Members’ Offers

Events

Events Calendar

CULTURE & LIFESTYLE 78 82

Sandbag: A Singapore-Based Ex-Service Club Destination: Indonesia

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British Chamber of Commerce, Singapore Sponsors PLATINUM SPONSOR

DIVERSITY AND GOLD SPONSOR

SILVER AND BREAKFAST CLUB SPONSOR

SILVER SPONSORS

GOLD SPONSOR

BRONZE SPONSORS

BRITCHAM BOARD: PRESIDENT: Hugo Walkinshaw: Deloitte Consulting SE Asia VICE-PRESIDENTS: Andrew Vine: The Insight Bureau Peter Allen: Pacific Century Regional Developments TREASURER: Dominic Nixon: PricewaterhouseCoopers HONORARY SECRETARY: Damian Adams: Watson, Farley & Williams EX-OFFICIO: Judith Slater: British High Commission Mark Howard: British Council BOARD MEMBERS: Andrew Thomas: Ogilvy & Mather Singapore Brendan Malone: The Royal Bank of Scotland Chris Davie: Rolls-Royce Singapore Clive Christison: BP Singapore David Macdonald: Portfolio Builders David Pugh: The Fry Group Ian Williams: HSBC Bank Peter Hatt: Standard Chartered Bank Richard Burn: Diageo Singapore Robert Williams: British Airways Sian Brown: Barclays Bank Tim Harris: BT Singapore

Editor: Vipanchi vipanchi@britcham.org.sg Assistant Editor: Yong En yongen@britcham.org.sg 138 Cecil Street, #13-03 Cecil Court, Singapore 069538 Tel: +65 6222-3552 Fax: +65 6222-3556 Email: info@britcham.org.sg www.britcham.org.sg

COMMITTEE CHAIRPERSONS: Corporate Social Responsibility: Richard Burn Events & Sponsorship: David Macdonald External Affairs: Steve Puckett Membership: Andrew Vine BUSINESS GROUP CHAIRPERSONS: Energy & Utilities: Damian Adams Entrepreneur & Small Business: Peter Seligman Financial Services: Patrick Donaldson IT and Communications Technology: Henry Farahar Leadership: Peter Hatt Media & Marketing: TBA Professional Services: Carolyn Lints Property & Construction: Richard Warburton Shipping Transport & Logistics: Neil Johnson Young Professionals: Miles Gooseman MANAGEMENT TEAM: Executive Director: Brigitte Holtschneider Accounts Manager: Sabitha Munnangi Marketing & Communications Manager: Vipanchi Marketing & Communications Assistant: Loong Yong En Events Manager: Tiffeny Kua Membership Manager: Katie Hudson Membership & Events Assistant Manager: Emi Hosono Office Administration Executive: Anna C Garciso

Orient is a bi-monthly magazine published by the British Chamber of Commerce. © All rights reserved. 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. No reproduction of articles without the prior permission of the Chamber. Unsolicited transparencies and articles are sent at owner’s own risk and the

Chamber accepts no liability for loss or damage.

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President’s Message Dear members, I am honoured and delighted to have been elected by the board as your new President. I succeeded the outgoing President, Steve Puckett, following the AGM held on 16 May. I worked with Steve at the Chamber over the last seven years, latterly supporting him as Vice President. On behalf of our board and members, I would like to reiterate my thanks to him for his guidance and leadership over that period. As has been customary in recent years, the AGM was held at Eden Hall. I would like to thank the British High Commissioner, His Excellency Antony Phillipson, for his hospitality in opening his home to us for this event, and the Deputy High Commissioner Judith Slater for hosting us in his absence.

Hugo Walkinshaw

President, British Chamber of Commerce

Our thanks and appreciation go to our outgoing board members—Caroline Bagshaw, Emma Boyd, Ingrid Child, James Deely, Andrew Jones, Nick McGlynn, Neil Montefiore, Paul O’Neil and Pek Hak Bin—for their strong support during their terms of office. I would also like to welcome our new board members—Sian Brown, Chris Davie, Tim Harris and Anthony Lucas—who will be joining the board for the first time, and I look forward to working with them in the coming year. I am delighted to confirm that Andrew Vine will continue in his role as Vice President and will be joined by Peter Allen in this designation, with Damian Adams continuing in his role as Secretary. As well, I would like to extend a warm welcome to Dominic Nixon of PricewaterhouseCoopers, who has agreed to take on the role of Treasurer, following David Macdonald’s successful completion of his term. Looking ahead, our planned activities for 2013 will continue to focus on our industry and functional business groups, of which there are now 10. These activities are organised under the guidance of our membership, events, CSR and external affairs committees, and ably supported by our excellent chamber management team led by Brigitte Holtschneider. We now have over 1,900 members representing 360 companies from a broad range of industries, forming a vibrant and varied membership base, and one that is active and engaged. The excellent turnout at our recent CSR event in early April, the continued support of our breakfast club meetings, and the popularity of our Young British Chamber mentor series are all testament to that. Over the coming months, the chamber management team will continue to focus on executing our strategy—building networks, connecting business and creating opportunities—so that we can maximise value for our members. I would encourage all of you to play your part by participating actively in the planned events, and we have a busy calendar ahead of us. Coming up later in the year are the F1 Sky High Networking Evening on 19 September at the Tower Club, the 14th Annual Business Awards on 3 October at the Shangri-La Hotel and, of course, the ever-popular BritCham Ball on 7 December—three dates I ask that you mark in your diary. In summary, I am confident that we have a strong foundation on which to move forward, and that supported by an energetic board and a professional management team, we will build an even stronger Chamber.

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Sterling Members

SINGAPORE

Singapore

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Special Feature

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Japanese Investment in Singapore Investment flows from Japan into Asia have seen a 67% growth since 2005, from 1.8 to three trillion yen in 2011, while Japanese investments in North America have registered a 20% decline since 2005, from 1.5 to 1.2 trillion yen. The mounting constraints of a mature and saturated domestic market have forced Japanese companies to establish a commercial presence in Asia to grow their foreign market shares and globalise their footprint.

By Yuki Kuboshima

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The new trend: Japanese FDI to ASEAN

With the rise of Asia, there is an acceleration of investment flows to the east. Today, Asia is seen as the most attractive destination worldwide for foreign direct investments (FDI), thanks to its strategic geographical location, cultural similarities and historical economic relationships. Specifically, the emerging economies in ASEAN have led to a new and growing middle-class in each country, thus cementing ASEAN’s importance and attractiveness as a high-potential market. In recent years, ASEAN countries have enjoyed a high proportion of FDI from Japan, a nation traditionally seen as a global production centre—over 62% of Japanese overseas subsidiaries have set up a presence in Asia since the end of 2010, with ASEAN countries being the largest recipient of FDI to Asia. In fact, FY11 saw Japanese FDI totalling 1.5 trillion yen to ASEAN, accounting for 17% of Japan’s overall FDI of 9.1 trillion yen.

Special Feature: Special Feature Japanese Investment in Singapore

And the trend will continue. In the years to come, more Japanese companies are expected to make the shift to ASEAN, as they minimise the risk exposure from the excessive concentration of investments in China, which is exacerbated by the ongoing diplomatic tension between the two countries over the disputed islands.

Sharing FDI in ASEAN

In 2011, Thailand received the largest amount of Japanese investment—a total of 27.3 billion yen—followed by Singapore at 24.6 billion yen. In the last few years, Thailand has been the global and Asian production hub for many Japanese companies—61% of Japanese FDI in Thailand pertains to manufacturing. In Singapore, on the other hand, 75% of Japanese FDI is contributed by nonmanufacturing industries such as wholesale and retail, and finance and insurance— many Japanese companies regard Singapore as a flourishing investment trading hub in ASEAN and Asia Pacific.

A shift in FDI to Singapore

Japanese FDI to Singapore are expected to increase as more companies continue to set up their regional headquarters in the island-state. As a result, companies will look at redeployment of capable talent to effectively execute business decisions in accordance with the in-market culture and business practices. Singapore has become a choice destination for Japanese firms for many reasons: low corporate income tax; the absence of significant restrictions on foreign exchange transactions and capital movements; government incentives; a strong and transparent legal framework; economic and political stability; a diverse talent pool; and having English as the nation’s lingua franca. Notably, Singapore’s diverse talent pool has encouraged SMEs to also set up shop in the country. Many large Japanese corporations—Kirin, Mitsui Chemical, Nissin Foods, HOYA, Suntory, Nishinbo, Panasonic and Hitachi Plant Technologies, among others—

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established their regional headquarters in Singapore, in 2011. This is unsurprising, given that Singapore offers Japanese firms geographical advantage for new frontier exploration to Cambodia, Laos, Myanmar, India, Pakistan, Bangladesh, the Middle East and Africa.

Expansion of sectors in Singapore

From 1970s to the 1980s, much of the investments went into the electronics and petrochemical industry cluster; then in the 1990s, investments flowed into the telecommunications and media industry cluster. In recent years, however, companies have explored shifting investments to higher-value-

About the Author Yuki Kuboshima is an executive director in Deloitte Southeast Asia’s consulting practice, where he is the Asia Pacific and Japan manufacturing lead. He would like to thank

added industries, while Japanese firms such as Panasonic, Hitachi, Fujitsu and Toshiba continue to invest in their Singapore subsidiaries in semiconductorrelated areas. A $6.1 billion government funding—introduced in 2010 over six years—spurred companies such as Hitachi and Mitsui Chemical to move up the value chain to invest in research and development efforts. The Singapore government has further strengthened its FDI policy in the petrochemical industry cluster: Jurong Island, with its pipeline of multilateral connectivity, has attracted large investments from companies like Sumitomo Chemical, Asahi Kasei Chemicals and Zeon Corporation.

Mr Mukai in Deloitte Tohmatsu Consulting and Ms Murai in Deloitte Consulting Southeast Asia for their contributions to this article.

In recent years, investments in the business services sector—such as professional firms, talent management and recruiting agencies, advertising and PR agencies—have added to the growth of Japanese subsidiaries in Singapore from 1,500 to at least 2,000. As witnessed in the historical trends of increasing investment flow from Japan to Singapore—from US$1.38 billion in 2005 to US$3.85 billion in 2010, and US$4.5 billion in 2012—the island-state will continue to be an important investment destination for Japanese companies in the near future.

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In Focus

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In Focus: James Tan

With a heritage dating back 200 years, Friends Provident International (FPI) has established a strong presence in the life insurance and wealth management market. Celebrating its 25th anniversary in Singapore, GM James Tan speaks to Vipanchi about the insurance industry and its changing dynamics.

The financial market suffered significantly in the last few years. What is the outlook for the insurance industry in the year ahead?

The insurance penetration rates are still low in some of the developing countries. So, I think the outlook for insurance companies is pretty positive, specifically for Asia, albeit challenging. People are flocking to Asia to tap on the opportunities themselves, but there is some level of competitiveness as well. The continuous improvement in the evolution of regulation in this industry is positive for the consumer as well as for insurance companies. What we find is that the clients in Asia tend to be a bit more tech-savvy, and investing in relevant technology has become a must. Overall, there is a growing demand, and access to information is changing the dynamics in policy-buying significantly.

Asia has become the centre of future growth. What challenges does this present?

Asia is a big region with diverse cultures and different levels of maturity when it comes to one’s financial needs. Regulations are evolving, and you see the more developed countries like Hong Kong and Singapore taking the lead on that. The challenges for these countries are the rising cost of complying to regulations such as more disclosures, a lot more sales processes, etc, which are being scrutinised to make sure the end customer is purchasing the product that

is based on their needs, rather than the traditional way of pushing. There is a wide variety of choice in terms of insurance products for customers, and we try to educate our customers, making sure they understand which specific products are appropriate for whatever life station they are in. So, that’s part of the challenge: trying to educate the end client as well as the intermediaries.

What are the potential vulnerabilities in Southeast Asia from the perspective of investors and that of an insurer? The continuous evolution of regulation is key to opening up opportunities for people and companies coming to Asia. Subject to how these regulations are set up, insurance companies can formulate their market-entry strategies. Changing geopolitical environments could either be a deterrent or a positive sign for insurance companies coming in, and for us working as an industry. The region is also facing a challenge with the ageing population in Japan, Hong Kong, Singapore and Thailand. So, there is a need for insurance companies to come up with a solution that can complement the customer’s government pension, for example, to make sure they’re well prepared and financially secure for retirement. These are the few vulnerable areas that I believe are evolving.

The continuous improvement in the evolution of regulation in this industry is positive for the consumer as well as for insurance companies.

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I’ll always recommend that one speaks with a financial advisor to really understand exactly what exposure there is, where their assets and liabilities are, and what their gaps are, so that we can get them to look into products that can protect themselves for now and the future.

In Focus: James Tan, Friends Provident International

Gen Y has easier access to information these days. What is the industry doing to target this market? For the customer or potential client, the ideal situation is to have multiple touchpoints, so they can access information as and when they like. And you’re right— the younger generation is tech-savvy and they gather information easily. This is one of the key things we are focusing on: to invest substantially into our IT and technology to make sure we provide the right information for the young generation to access in the future—in essence, grooming the future client, if you will. I think it is fair to say that some of the other financial industries like banks are a little bit ahead of the game, but it is something on which the insurance industry is working very hard. From our perspective, a key focus for us is to grow in the region—in Asia, specifically. In our recent survey, one of the questions asked was how customers would like to manage their investment, and whether

they sit down with a professional advisor, discuss with their friends, or get information from the Internet. But surprisingly for Singapore as well as for Hong Kong—and I suppose for most of Southeast Asia—up to 40% of respondents said they just guessed it. It is interesting, but equally worrying! I think online information gives customers an idea of what the product is all about. But I’ll always recommend that one speaks with a financial advisor to really understand exactly what exposure there is, where their assets and liabilities are, and what their gaps are, so that we can get them to look into products that can protect themselves for now and the future. People who have been in this industry for a long time, like advisors, can really provide some value-added advice on how one should plan.

What is your growth strategy given that there is so much competition,

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and yet your branding is minimal?

We operate in a slightly different market from the other insurance companies. We’ve been traditionally what we call a “B2B” (business-to-business) company. We don’t involve ourselves in the mass market; unlike AIA or Great Eastern Life, we work more in the expatriate, affluent spaces—that is where the slight difference lies. We work through third-party distributors, like independent financial advisors (IFAs) and banks. In terms of brand perspective, we’re a lot better known in the IFA space, especially in the expatriate community, because we started our business in Asia about 25 years ago. We’re launching a new 25th anniversary campaign to raise our brand awareness. As one of the very few players that provide thought leadership when it comes to expatriate financial planning, we’re working with the top partners and are always providing quality support—this is our core growth strategy, really.

One thing that is quite important for us is the commitment to Asia. Since 80% of our business comes from Asia and the Middle East, we are significantly investing in this region. We’re moving some of the functions and departments into Asia, primarily to be closer to the client, to be able to serve them better. We’re beginning to see the impact of having local management, in managing a local business, so we continue to invest in that. As I mentioned earlier, we’ve been in the expatriate space for a number of years, so we have developed expertise and products to cater for that specific segment.

selection of funds with multiple currencies, with a range of four to 10 currencies that allow clients to invest.

What kind of expatriates do you cater to?

One interesting evolution of our business in Asia was that we started off working with the expats. Because of the features of our products, different underlying investment options, different currency options, the non-expats, the local affluent customers, take an interest into that. They feel they want more diversification in their portfolio. They could be sending their

The definition of “expatriate” has changed. An expat used to be a person who came from the West to the East; nowadays, however, people are becoming global citizens. There is a lot of inter-Asia movement as well. So, the advantage of our proposition is that we have a wide

You recently did a survey. What were the key findings?

Our surveys contribute knowledge to the industry as well as help our clients plan for the future. We try to do this as sensibly as we can; we do this two to three times a year, enough for meaningful information to come in so that clients and the brokers who are using this will find it quite useful. Our “Investor Attitude” survey involves more of the affluent customer segment.

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kids to the UK for education, so they want to create something for them as a savings plan, they want to invest in Sterling-based products. These are the things that are very different, and this is an interesting survey is because it focuses on that part of the segment where there are interesting changes being made, in terms of decisions and how they actually utilise these products to meet their specific needs. In terms of the overall attitude of investors, there are three key objectives: saving for emergency, retirement and education. We looked at some of the numbers, and most of the customers who are investors in Hong Kong, Singapore and the UAE, are still quite optimistic about the market. In terms of the overall outlook of the market, people in Hong Kong are the least optimistic of the three, which then led to another interesting finding: When saving for retirement or a rainy day, the people in Hong Kong tend to feel they need to save a lot more—in fact, they think they need

In Focus: James Tan, Friends Provident International

to save 60% more than what they have today—as compared to Singapore where the equivalent figure is 20–40%. That’s interesting, as attitudes change for various reasons and we want to capture some of the ongoing key trends. When you look at some of the prices of property, for example, it is down in Asia, more so in Hong Kong than in Singapore—and gold. Even though that’s the case, these two are still the asset classes in which investors will want to invest. Gold has always topped the list. Through the survey, we found that people in the UAE love investing in gold and property. There was an increase in investor attitudes index in the UAE back in February when we did the survey—bear in mind, though, that was before the price of gold went down. Despite all the property cooling measures in Hong Kong and Singapore, prices are still high. People see that these two markets offer long-term play. For Hong Kong, a lot of mainland investors

come in and buy up properties, and the Government is putting some measures in place to try to slow that down; Singapore, with an increasing population, sees a lot of foreign investors coming in as well.

Is it a global trend that people prefer gold and property, or is it an Asian trend, which is more towards traditional thinking?

Our survey is limited to Asia and the Middle East, and every market will have different characteristics. In the UAE, gold is one of the favourite assets. There are a lot of affluent non-resident Indians working there; gold is important for them and we see that they are keen to save for education, for weddings. Every individual will have their own investment objectives and risk appetite. For example, on saving for retirement, everyone goes through the same life stage and it is an important agenda for all of us. Even though we see a lot of people gather

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their own information and try to ‘DIY’ their own investment plans, it is always worth it to get a second opinion from a professional investment advisor to walk you through what the other objectives are, the ways in which you can maximise and make your money work for you.

Do you conduct surveys for the mass market as well?

For the past two years, our surveys were focussed on the mass market, but after our strategic review, we enhanced the report by targeting more towards the affluent market to fit our proposition strategy.

How has the insurance industry transformed in the recent years?

I’ve been in Asia for a long time—I was born and raised here. I was working in the US for quite a number of years in the financial services industry, in banks, insurance companies. I came back to Singapore as the global head of bancassurance for Standard Chartered

Bank, overseeing markets in Asia, the Middle East and Africa, which is pretty much what I’m looking after today. I think the evolution of how products are being offered to the customers has changed substantially for the last 10 to 15 years. The traditional agency model is being challenged by the bancassurance model, which is in turn being challenged by the IFA model. What’s yet to be seen is the next generation of technology and social media—how they react to insurance, and how that actually comes into play. That, for me, is an interesting evolution of how people purchase solutions and products for their needs. It’s quite interesting to see how this is going to end up. We’re definitely keeping a very close eye on it.

Please share your experience in Hong Kong, Singapore and the Middle East markets over the years, and how these markets reacted differently. One thing I find quite interesting is that

What’s yet to be seen is the next generation of technology and social media—how they react to insurance, and how that actually comes into play.

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the way people purchase insurance has changed. Different channels are available, and I see a lot of different insurance companies adopting a multichannel strategy. Some give up and say, “Let’s focus on one or two.” I think it really depends on how one would like to operate in the long term, and what is it that they’re good at, leveraging on their strength. In Hong Kong, Singapore and the UAE, we do see an increase in distribution from the bancassurance side, which is an additional access point for the customer. What it means is, the banks will have to increase their level of knowledge and expertise on insurance to be able to provide the right advice and service. And this is where the partnership between banks and insurance companies comes in—each uses a

In Focus: James Tan, Friends Provident International

different model. In Standard Chartered Bank, for example, working for and supporting the bancassurance business globally is actually eight to nine models added up, depending on market needs, expertise and different factors—it’s trying to understand a combination of capabilities of financial institutions, and the type of customer, specifically. As I mentioned earlier, it is important to expand on educating the market and our clients so they know exactly how these products work, and what it does to meet their specific needs. And often, over the years, it became more of a product-push-type approach, which I thought was not the most appropriate way to offer a product. Now, it is evolving into a needs analysis, which I think is the right direction. Over the next year or

so, I would expect companies to cut costs because of the regulations coming into play. Service would be the next differentiating factor in terms of client retention and overall customer satisfaction; customer experience would be a key factor for others, and for us, to compete in this space. I have seen that sort of evolution over the past couple of years. Again, it is going to be interesting with the economic conditions we are facing right now in certain regions. To get more details of the “Investor Attitudes” survey, visit the resource library at www.britcham.org.sg

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Feature

Malaysia General Election 2013 By Andrew Naylor

alaysians went to the polls in record numbers on 5 May in one of the most fraught post-independence elections. The ruling coalition, Barisan Nasional (BN)—led by Prime Minister Najib Razak—held on to power but suffered one of its worst-ever general election performances. This 2013 election, in which divisions in Malaysia were highlighted, revolved around three issues: dealing with corruption, reforming the bumiputera laws—statutes that, since the 1970s, give preference to the Malay majority via affirmative action in education, for example—and, finally, the state of the economy. The choice was quite clear: stick with a ruling coalition that has been in power for the last 56 years, or vote for an untested opposition. In the end, voters opted for the status quo. BN, which has been credited with bringing economic development and political stability, has been returned to power.

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Feature: Malaysia General Election 2013

Malaysia’s Electorial History in Focus

Key issue: Malaysia’s economy and the Economic Transformation Programme

At first glance, it might seem surprising that the state of Malaysia’s economy was a major feature of this election. On most key economic indicators, Malaysia is performing relatively well and has benefited from 6% year-on-year GDP growth over recent years. But these indicators mask a difficult problem Malaysia’s leaders face: dealing with the “middle-income trap.” Malaysia, as a middle-income economy, has difficulty competing with low-wage markets, but it equally struggles to compete with advanced, high-tech and innovative economies. It is stuck in the middle, and the Government, under PM Najib Razak, has been embarking on the Economic Transformation Programme (ETP) to turn Malaysia into a high-income economy by 2020. This is an ambitious programme that relies on maintaining the 6% growth figure for the next seven years.

What does this mean for British businesses?

Many Singapore-based British firms have significant commercial interests in

Malaysia. It is likely that the Malaysian government will push ahead with the ETP with even more resolve, as this is seen as key to future electoral success. Under the plan, 12 national key economic areas (NKEAs)—that is, priority industry areas— have been targeted for future growth and development, and will receive prioritised government support. British companies in the following industries could benefit from targeted government support: oil, gas and energy, palm oil and rubber, financial and professional services, education, agriculture, tourism, healthcare, electronics, and communications. On financial services in particular, Bank Negara Malaysia (BNM) has published a financial sector masterplan, which acts as a blueprint for the development of Malaysia’s financial services industry over the next decade. The financial sector’s masterplan has a number of strategic objectives designed to grow the industry: • Effective intermediation: Policies put in place to more effectively mobilise

The 13th general election was held on 5 May, after Parliament was dissolved on 4 April. All 222 parliamentary seats were up for election. The two main contenders were both broad coalitions of mainly ethnicity-based political parties: the Barisan Nasional (BN) coalition, led by current Prime Minister Najib Razak; and the Pakatan Rakyat (PR) coalition—led by flamboyant opposition leader Anwar Ibrahim—that comprises the Parti Keadilan Rakyat (People’s Justice Party), the Parti Islam Se-Malaysia (Pan-Islamic Malaysian Party) and the Democratic Action Party. To win the election, a coalition needs at least 112 parliamentary seats; to be able to amend the Federal Constitution, the ruling party needs to command a twothird majority, that is, at least 148 seats. The BN—who have governed Malaysia since independence in 1957—retained a majority in parliament with 133 seats with 47.3% of popular votes, while the PR won 89 parliamentary seats with 50.8% of the popular vote. The opposition has tried to exploit this in postelection discourse, but because Malaysia operates under a parliamentary system, it is not necessarily unbecoming for the winner to actually gain a minority of the popular vote. Indeed, this has happened in the UK: In the February 1974 UK general election, the Labour party polled less than the Conservatives nationally, but gained more seats in parliament under the first-pastthe-post system.

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•

The ETP is highly ambitious, but the recent election result means it will be kept firmly on the agenda. Malaysia is a large and growing market for many British companies, and as the Government continues with its liberalisation and market development programme, new opportunities for British companies operating in the region will open up.

About the Author Andrew Naylor established and leads Cicero’s Asia Pacific office in Singapore. Cicero is a global communications, research and government affairs agency specialising in the financial and professional services sectors.

90 80 70 60

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Opposition

30 20 10 0 1955 1959 1964 1969 1974 1978 1982 1986 1990 1995 1999 2004 2008 2013

Year Chart: Relative General Election performance of the governing and opposition party coaltions (% of seats won)

•

100

Table: Relative General Election performance of the governing and opposition party coalitions (number and % of seats won)

•

savings in Malaysia for productive investment. Life insurers and asset managers should particularly take note of the opportunities as the Government pushes forward with plans to enhance the role of pension funds in long-term financing. Deepening financial markets: Initiatives put forth to improve Malaysia’s debt/securities markets. These include the liberalisation of foreign-exchange rules and the development of the money markets. Increasing financial inclusion and improving access to retail finance: BNM has a target of enabling all members of society to have access to “quality, affordable and essential” financial services. Internationalisation of Islamic finance: Malaysia has the third-largest Islamic finance market—measured by domestic Shari’ah-compliant assets under management—after Iran and Saudi Arabia, respectively. It is also home to a regional Islamic finance standards-setting body, the Islamic Financial Services Board. Islamic finance is a significant area for growth, and plans are afoot to place Malaysia at the forefront of Islamic finance. Electronic payments: BNM has released a series of policy measures designed to promote the use of electronic payments, including the development of e-payments infrastructure such as mobile banking and point-of-transaction terminals.

NB: The states of Sabah and Sarawak did not participate in the 1955, 1959 and 1964 general elections. The first elections of the current nation-state of Malaysia took place in 1969.

Andrew is Vice President of the LSE Alumni Association of Singapore and is a Board Member of the European Chamber of Commerce in Singapore. He is also Vice-Chairman of EuroCham’s financial services industry group.

Andrew regularly comments on global economic and political developments for Sky News and Channel NewsAsia.

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Feature

The Asian Opportunity How can global companies change their recipe for success and claim a bigger slice of Asia’s rapidly expanding pie?

sia is fast becoming the most robust economic region in the world—the epicentre of global growth and wealth creation. While the Industrial Revolution in America and Europe transformed living standards over the course of a century, rapid industrialisation and urbanisation across Asia have lifted hundreds of millions out of poverty in a single generation—a transformational event for the world’s most densely populated region. With entire nations in Asia moving up the consumption ladder to become full participants in the modern economy, global businesses have a multitude of

opportunities to dramatically expand their footprints, improve their growth prospects, and establish their brands with huge numbers of eager new Asian consumers. The task of learning the habits and preferences of such an enormous new pool of customers is daunting. For businesses struggling with new markets and suppliers, as well as language and cultural barriers, the scope of the challenge becomes clear. This instalment of Singapore Sessions assembles a group of executives who wrestle with these problems every day

while servicing the widely divergent demands of Asian customers. These experts hail from key industries operating in Asia: in packaged goods, Francois Renard, Global Brand Vice President, Unilever Hair Care; in information technology, Lisa Gilbert, Vice President of Marketing, IBM; and in logistics, Paul Graham, Chief Executive Officer, Asia Pacific DHL Supply Chain. Each offers widely applicable insights into how marketing to Asia has shaped their business experience and how their expertise, in turn, is setting the stage for future expansion in a region that will define economic success for generations.

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Consumer Packaged Goods

For Unilever, a global leader in consumer goods whose products are used over two billion times a day in more than 190 countries, Asia is a growth story. A majority of the company’s $58 billion business last year—some 55%—came from emerging markets, according to Renard. He says robust 11.5% year-overyear sales growth in emerging markets, compared to 6.5% growth for the company as a whole, is making Unilever an “emerging markets company.”

For businesses struggling with new markets and suppliers, as well as language and cultural barriers, the scope of the challenge becomes clear.

“We fully expect these markets to drive 70% or more of our growth in the future,” says Renard. While Unilever has been operating in Asia for more than a century, the company intends to significantly increase the size of its business there in the coming decade. Its engagement has fostered not only a deep understanding of Asian customers’ tastes, but an appreciation for the strength and potential of the Asian market. “We believe there is still a huge reservoir of growth in Asia,” he says. “The world’s population is going to grow from seven to nine billion by 2050. Most of that growth will be in Asia—an area where our business is strong.” Essential to Unilever’s success is its knowledge of the Asian market. Last year, Renard’s Unilever division surveyed nearly 100,000 customers to learn what they

wanted, what they needed, how they shopped, and what they could afford. This information is particularly helpful in Asia, where the consumer population runs the gamut from low-income earners in India and Indonesia, to affluent consumers in Singapore, Japan, and South Korea. “Marketing hair care products in Asia has to be specific and targeted,” Renard says. While technologies may travel easily across borders, consumer products need to be tailor-made to fit specific regions and countries. The fastest selling beauty products in Southeast Asia, for example, are packaged in mini bottles and sachets. Low cost per unit production and sales put these products within the reach of less affluent consumers. Japan’s prosperous female population, by contrast, makes that market a magnet for hair-repair products and high-end cosmetics like masks and other skin-care treatments. Understanding the needs of different types of customers, and what sets them apart from their neighbours, is an important aspect of success in Asia, says Renard. Responsiveness is also key. Asia operates on an extremely fast timetable, Renard maintains. It’s this consideration that led Unilever to base its global operating hub in Singapore, enabling the company to get closer to customers and stakeholders. “Asia is evolving so quickly,” adds Renard. “Move today; tomorrow may be too late.”

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Feature: The Asian Opportunity

(millions of 2005 PPP dollars)

Information Technology

3,117

2,315

1,534

Spending by Global Middle Class, 2009 to 2030

11,337

10,301

EUROPE

32,596

14,798

4,952

2,793

1,769

NORTH AMERICA

1,052

5,837

5,863

5,602

8,138

The Asian Opportunity

ASIA

AFRICA

SOUTH AMERICA

The Asian share of the global middle class is expected to grow from 28 percent in 2009 to 66 percent in 2030; its share of world spending will rise from 23 percent to 59 percent in the same time frame. Kharas, Homi. The Emerging Middle Class in Developing Countries, page 7, tables 2 & 3. © 2010 The Brookings Institution. Reprinted with permission.

CONSUMER PACKAGED GOODS “We have a number of strategic facilities

and budget resources to tackle them. across leader Asia, including laboratories, easy-to-implement is runs the Customers everywhere value quality For Unilever, a global in consumer goods whose helpful “Finding in Asia, where the consumer solutions population innovation and delivery crucial,” she says.earners “We arein seeing a lotIndonesia, of products, customised solutions, and great are used products over twocentres, billion times a day inhubs morethatgamut from low-income India and provide services for IBM clients around the demand from smaller companies in Asia service—but in Asia, the special key that than 190 countries, Asia is a growth story. A majority of to affluent consumers in Singapore, Japan, and South world,” Gilbert adds. By 2015, IBM expects in application management, security, data unlocks the door to long-term success is the company’s $58 billion business last year—some 55 Korea. “Marketing hair care products in Asia has to be to increase its revenue share from growth protection, information management, the relationship. percent—came from emerging markets, according to specific and targeted,” Renard says. markets to around 30%, a substantial and, increasingly, cloud computing and Francois Renard, Global from Brand22% last year. increase business analytics.” “Clients in Asia are much more likely to Vice President of Unilever Hair want to build strong relationships before “We believe there is still a huge reservoir of growth in has Singapore. a portfolio of customised global “When I first moved to Asia, I got a doing business and closing deals,”Care, says based IBM Francois Renard, in Asia. The world’s population going to grow He says robustsolutions 11.5 percent designed specifically for smaller fantastic piece of adviceis from a colleague Gilbert. She says that once trust and Global buyers in Asia, where smallto mediumin India,” Gilbert recalls. “When you respect are Brand earned, however, companies year-over-year sales growth in from seven to nine billion by 2050. Most of that sized compared companies proliferate. “The key to work in Asia, he said, you need to have Vice President, can anticipate a long-lasting alliance. emerging markets, growth will be in two Asia.” with ears and one mouth and use them Unilever Hair Care, to 6.5 percent working growth for thethese smaller companies is extending our physical footprint,” says proportionally. You need to do your Tohas thatledend, IBM puts a lot of care into global marketing company as a whole, is making Gilbert. “We have a geographic expansion homework, understand the norms of the building and strengthening day-to-day and product efforts for Clear Unilever an “emerging markets company.” While technologies may travel easily across borders, programme in place to open new branches countries you work in, and respect them.” contact with its regional business Scalp & Hair Beauty Therapy “We fully expect these markets to drive 70 percent or consumer products need to be tailor-made to fit specific and extend our reach into some of Asia’s partners, who in turn help the company products since 2009. Based more of our growth in the future,” says Renard. While Uniregions and countries. The fastest selling beauty rapidly growing urban centres.” It may take a while to identify and build products tailor solutions to local needs. Gilbert, who in Singapore, he oversees lever has been operating in Asia for more than a century, in Southeast Asia, for example, are packaged in mini bottles relationships with the real influencers is responsible for growth markets, says, operations in 40are countries Mid-sized companiesincrease frequently faceofthe and sachets. the company intends to significantly the size and stakeholders, Gilbert. But Low cost peradmits unit production andthe sales put “these markets becoming increasingly same challenges as larger long-term benefits to your business across North America, important to IBM as a Asia, growing source of its business there in the coming decade. Its enterprises, engagementbut these products within the reach of less affluentwill consumers. adequate time, of information, be undeniable. revenue Europe,and Latinskills.” America, and has fostered notoften only alack deep understanding Asian cusJapan’s prosperous female population, by contrast, the Middle East. Renard has held other executive positions with Unilever in France, China, Thailand, and Vietnam.

tomers’ tastes, but an appreciation for the strength and potential of the Asian market. “We believe there is still a huge reservoir of growth in Asia,” he says. “The world’s population is going to grow from seven to nine billion by 2050. Most of that growth will be in Asia—an area where our business is strong.”

makes that market a magnet for hair-repair products and high-end cosmetics like masks and other skin-care treatments. Understanding the needs of different types of customers, and what sets them apart from their neighbors, is an important aspect of success in Asia, says Renard. Responsiveness is also key. Asia operates on an extremely fast

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Logistics

DHL is the world’s—and Asia’s—leading logistics company. To keep its operations humming, while continuing to build market share and customer loyalty, the company relies on a steady stream of top-notch local managers to expand its expertise in the region. “Our growth is limited only by talent,” says Graham. To continue to grow that talent, DHL collaborates with the National University of Singapore and the Georgia Institute of Technology in a venture called The Logistics Institute – Asia Pacific (TLIAP). The Singapore-based institute spearheads research and education programmes in global logistics. In the last two years alone, DHL has invested more than $2.5 billion into developing highly specialised products and services—investments Graham insists are crucial to success in Asia. The company has also invested in supplychain courses in India and China, providing over 200 internships annually throughout the region to train young professionals in the rigours of the industry. “We have to help develop talent, while also building awareness that logistics is a professional specialty with a bright future,” he says. “Asia will drive new business models,” says Graham, noting that a pioneering ocean freight solution implemented in Shanghai has since been carried over to the company’s operations in South America and beyond. “The dynamic nature of the region drives innovation.” Pioneering innovations in Asia include Express Rail connections linking China and Europe, and a new direct-to-market operating model for the booming pharmaceutical industry in India. The India model is being replicated in other quickly developing regions where distribution is

This article has been contributed to Orient by EDB Singapore and was first published in Singapore Sessions.

complex, helping the pharmaceutical industry make vital in-roads that will help grow these new markets. DHL is committed to Singapore as a life sciences centre for Southeast Asia, setting up a 30,000-square-foot hub capable of meeting the specialised requirements of biomedical companies to help service the region’s growing healthcare demands. Given the explosive pace of development over the last several decades, solutions innovated and refined in Asia are particularly applicable to other developing markets, Graham notes. The distribution challenge in these markets is to keep costs low while shipping large quantities of small unit sales to mom-and-pop stores scattered

across great distances. “The solutions we develop for our customers in low-income markets such as the Philippines or Indonesia are highly applicable to other markets facing the same conditions,” says Graham. DHL has been in Asia for 41 years, and Graham insists a long-term presence is essential to truly grasp the region’s complexity. “How global brands adapt to the particular nuance of local cultures and tastes here is an interesting journey to observe,” he observes. “But many are now rising to the challenge.”

The As

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Feature

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Client Strategies for Supply Chain Finance By Aseem Goyal

upply chain finance (SCF) has been talked about with much hype for many years now. Banks and corporate clients—known as ‘anchors’—see it as a win-win situation for themselves as well as the corporation’s distributor/supplier network, or the ‘spoke.’ There is good reason for this belief: The advantages have been fairly well articulated over the years, and there are in fact many successful SCF programmes now up and running.

Why is supply chain finance a win-win situation?

We have all heard it: Over 80% of global trade is conducted on an open-account basis—there is no indication of reversal in this trend—and SCF is a rapidly growing market. Additionally, with globalisation and a focus on productivity and efficiency, it is no longer sensible for a corporate treasurer to look at different components of supply chain finance—working capital optimisation, risk mitigation, balance sheet management, information, liquidity and transaction management—on a silos basis. Instead, more relevantly, these ought to be viewed as components of the same interconnected and integrated solution, benefiting all parties involved.

Supply chain finance benefits buyers and sellers in the following ways: • Stronger buyer–supplier relationship: Supply chain solutions go a long way in building the buyer–supplier relationship, whether it is the predictability of supplies or the availability of the distribution network to market products. This outcome is more critical in certain industries than others—the auto industry is a classic example: Automakers spend a long time building their supplier base, so it is important to preserve this relationship. The global fast food or supermarket chains, for instance, focus on developing their supplier network before they expand into a new market. A strong buyer–supplier relationship will also be pertinent to consumer products manufacturers who are looking to market their products through retail distribution channels. • Payable-financing programmes: Anchor buyers in this programme can use their credit rating to provide a stable funding source to the suppliers, which can result in additional borrowing capacity for the suppliers, possibly at a lower cost. Many of the global retailers source from emerging markets, where

suppliers often face liquidity challenges— and even if they can access it, the cost is high. Payable-financing programmes can provide the solution and considerably benefit both parties. • Receivable-financing programmes: With such a programme, supply chain solutions can help the anchor seller with risk mitigation and balance sheet management—both of which are important criteria for a growing number of corporations, especially listed companies. Companies are increasingly adopting such solutions to ensure their financial ratios compare well with industry standards. • Optimisation of working capital: Whether it is longer payable terms in supplier financing programmes or upfront collection of receivables in buyer financing programmes, SCF allows the anchor to manage its working capital more efficiently and with certainty, freeing up funds for other activities in line with the overall strategic focus. Corporate treasurers are increasingly focused on how financial solutions can shape and deliver the overall strategy. • Visibility and information requirements: This can be achieved through automation,

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which helps the corporate treasurer to make informed decisions as well as automate critical functions such as reconciliation. For the banks, it is an equally attractive proposition. SCF is normally considered an efficient deployment of capital, more so than vanilla lending or trade finance loans. SCF solutions also enable the banks to provide integrated working capital solutions involving financing and payments, wrapped around reconciliation and delivered through the electronic channel. As such, supply chain programmes have a longer sales and implementation cycle. Once they are

About the Author Aseem Goyal is Head of Global Receivable Finance at ANZ. He is responsible for building and driving this strategic proposition in the bank’s global transaction banking business. Starting his banking career as a

Feature: Client Strategies for Supply Chain Finance

up and running, though, they provide a more stable source of annuity revenue while reducing price-sensitivity and daily discussions at transaction levels. Further, SCF also involves strategic discussions with the corporate client. As explained above, supply chain solutions would usually extend to multiple bank products and systems, helping to deepen the bank–client relationship and often elevating it to core status. Finally, supply chain programmes mean new customer relationships for the banks: Rather than simply focusing on the individual anchor buyer/seller, it presents numerous targets in terms of buyers’ and sellers’ spokes on

relationship manager with Toronto Dominion Bank, Aseem has spent the last 23 years working in Canada, Thailand, China, Taiwan, Hong Kong and Singapore in a variety of regional and global roles in relationship banking,

both sides, thus potentially broadening the relationship. This might not be possible with other bank products, which are normally targeted to the bank client on a standalone basis. In summary, it can be foreseen that the current trends towards open-account trade will continue, and supply chain programmes will become more common, especially as Asian MNCs go global and adopt best practices. Banks also have an incentive to focus on this business—and more so, considering the overall trend of global trade and the challenges with traditional trade.

transaction banking, strategy as well as leading business integrations. Aseem holds degrees in Engineering and an MBA.

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British High Commission

UK Budget 2013: Staying the Course on Economic Growth and Fiscal Responsibility

n 20 March, the Chancellor of the Exchequer, George Osborne, delivered his 2013 Budget. I wanted to highlight some of the key policy measures given the importance of Singapore as a global trading partner and an investor in the UK. This is a fiscally-neutral budget which aims to build recovery based on fiscal responsibility, monetary activism and supply side reform, against a backdrop of continued economic challenges at home and abroad. The economic recovery has been more subdued and uneven than expected. The UK’s independent Office for Budget Responsibility (OBR) revised down its forecasts of GDP growth to 0.6% this year and 1.8% in 2014 (though the IMF forecasts our growth this year and the next to be higher than France and Germany). This reflects smaller-than-expected contributions from net trade, domestic consumption and business investment. Despite this, employment numbers have been encouraging, with the employment rate growing faster than in the US and three times faster than in Germany. Beyond 2014, OBR’s forecasts for GDP growth were rosier: 2.3% in 2015; 2.7% in 2016; and 2.8% in 2017.

The Government’s commitment to deficit reduction is undimmed. The deficit has been reduced by a third over the 3 years from 2009–12, and the Government remains on course to meet its fiscal mandate (to balance the Budget by the end of a rolling, five-year forecast period) a year early. To ensure that active monetary policy continues to play a full role in supporting the economy, the Chancellor announced an updated remit for the Monetary Policy Committee (MPC), and further measures to ease the long-term pressure on public finances.

Employment numbers [in the UK] have been encouraging, with the employment rate growing faster than in the US and three times faster than in Germany.

The Budget also contained further probusiness measures to deliver economic growth. Key to this is making the UK tax system the most competitive in the G20 by reducing the main rate of corporation tax to 20% by April 2015. This will directly benefit the many Singaporean businesses that have invested in the UK, and maintain the UK’s position as the preferred destination in the EU for Singaporean investments. Like Singapore, we recognise the importance of R&D to our country’s economic future. To boost innovation, R&D tax credits will be increased and the

UK employment numbers have been encouraging, with the employment rate growing faster than in the US and three times faster than in Germany.

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British High Commission: UK Budget 2013: Staying the Course on Economic Growth and Fiscal Responsibility

Prime Minister David Cameron and German Chancellor Angela Merkel at Schloss Meseberg to discuss EU reform. They were accompanied by their spouses Mrs Samantha Cameron and Prof Joachim Sauer.

The UK remains committed to playing a full role in Europe in order to remedy the three deficits—fiscal, competitiveness and democratic—identified by Prime Minister David Cameron in his speech earlier this year.

Chancellor of Exchequer George Osborne and the Budget Box. The Budget 2013 contained further pro-business measures to deliver economic growth.

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corporation tax rate on profits from patents will be reduced to 10%. To help create jobs and support small businesses, a new Employment Allowance of £2,000 per annum will be introduced from April 2014, to be offset against employers’ National Insurance Contributions. As part of its Industrial Strategy, the Government will also provide £1.6billion of funding to support strategies in 11 key sectors, including life sciences, oil and gas, education, and aerospace. On the last, an Aerospace Technology Institute will be created in partnership with industry, providing £2.1billion of R&D support over seven years. These are all areas in which Singapore and the UK enjoy strong commercial relationships, with British companies like Rolls-Royce making longterm, high-value-added investments in Singapore’s future as a manufacturing and R&D location.

Beyond the Budget, the Prime Minister has set out an agenda focussing on Tax, Trade and Transparency for our Chairmanship of the G8 in 2013. On Tax, the Chancellor said, “We want the global rules governing the taxation of multinational firms to be updated from the 1920s when they were first written, and made relevant to the global internet economy of the 21st century.” We are leading international action on tax avoidance through the OECD as well as the G8 and at the G20 where we look forward to working closely with Singapore as Chair of the Global Governance Group. On Trade, we will continue to push hard for finalisation and implementation of the EU– Singapore Free Trade Agreement, and for a deal on trade facilitation that will benefit not only less developed countries, but also those like Singapore and the UK that rely on trade flowing freely. On Transparency, we

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An Aerospace Technology Institute will be created in partnership with industry, providing £2.1bn of R&D support over 7 years.

want to bring as many countries as possible into the Open Government Partnership that we chair this year.

democratic—identified by Prime Minister David Cameron in his speech earlier this year.

Finally, a word on developments in the EU. Although last year UK firms exported more to non-EU markets than to the EU, our disappointing GDP performance stems in large part from weak demand in our traditional markets. Recent events in Cyprus show that there are still deep rooted problems to resolve in the Eurozone. But the UK remains committed to playing a full role in Europe in order to remedy the three deficits—fiscal, competitiveness and

Should they be successfully tackled, that will generate a new relationship between the EU institutions and the Member States, which will then be put to a referendum in the UK in 2017. I am keen to emphasise this because much of the commentary at the time and since has suggested that the UK was on an inexorable slide towards EU exit. We are not, though there are tough challenges to address.

About the Author HE Antony Phillipson British High Commissioner

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British High Commission

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Infographics courtesy of UK Trade & Investment

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At the Chamber

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As you will recall, at end of February, UKTI welcomed a multi-sector trade mission from North Staffordshire. On 13 May, BritCham and the Chamber of Commerce and Industry in North Staffordshire signed a memorandum of understanding (MoU), agreeing that closer collaboration between the two Chambers would benefit members from both parties. This is the first MoU in a line of UK regional Chambers that rate Singapore as an important export and investment destination and a springboard to doing business in Asia. Reaching out to UK Chambers of Commerce has been one of the priorities of the professional services business group chaired by Carolyn Lints. As such, we saw the support of the Headstart scheme launched by UKTI in October last year, and the drive of more business opportunities for Chamber members. In line with the Headstart programme, the Chamber has been working with the High Commission and UKTI in Singapore and London on a project that sees the Chamber taking on some of the services traditionally offered by UKTI. Minister of State for Trade and Investment Lord Green—the initiator of this pilot project that comprises 21 high-growth and emerging markets in different geographies—strongly believes that overseas British Chambers have a lot to offer to UK SMEs and can ideally complement UKTI’s excellent work. BritCham Singapore is one of the first five markets to have signed a grant letter outlining the range of services to be provided to UK SMEs and the funding available to support the necessary organisational development in the Chamber management office. This extension of our offering to include services to UK-based SMEs is consistent with our mission “to encourage British trade and investment in Singapore and the Asia Pacific region and to be the authoritative voice of British business.” Brigitte Holschneider Executive Director, British Chamber of Commerce

Lord Green visited Singapore on 6 and 7 June, and officiated the signing of the grant letter with Chamber president Hugo Walkinshaw, High Commissioner Antony Phillipson and UKTI director Judith Slater. We will report the details of the agreement and what it means for the Chamber and its members in the August issue of Orient. Moving on to the Chamber’s activities here in Singapore, we welcomed Barclays as a Gold and Diversity sponsor as of 1 May 2013. We will launch a Diversity committee, and under this umbrella, a ‘women in business’ subcommittee will be first priority. As I write, a survey has been launched to gauge members’ areas of interest and priorities, and we will be kicking off this new, relevant and exciting initiative in Q3. The 14th Annual Business Awards have been launched in April, and we are now calling for nominations. For the past 13 years, the Annual Business Awards have recognised achievements by British businesses in Singapore and/or Singapore-based organisations with a significant investment in the UK. In 2012, we aligned eligibility for the awards to the Chamber’s open-membership policy, and all Singapore-registered enterprises that share our values are encouraged to submit nominations. So, please nominate and inform your clients and business partners about this excellent platform to showcase outstanding achievements in nine categories. Good luck, and enjoy a relaxing summer break! Best wishes,

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At the Chamber

BritCham Annual General Meeting 2013 T

raditionally held within the elegant surroundings of Eden Hall, the residence of HE Antony Phillipson, British High Commissioner to Singapore, the British Chamber of Commerce AGM kicked off on Thursday, 16 May 2013, with 87 members and guests in attendance. In her welcome address, Deputy High Commissioner Judith Slater shared statistics on Britain’s exports to Singapore and stressed the growing importance of the UK–Singapore business relationship. She also gave an update about the “Overseas Business Networks Initiative,” which brings

the partnership between the UKTI and the Chamber to a new level. In short, the British Chamber of Commerce in Singapore has been selected (together with 20 other markets) to provide business services to UK SMEs.

Treasurer David Macdonald gave his summary report of the Chamber’s financial position at the end of 2012. The Chamber is in excellent financial health with a robust cash position and multiple revenue sources.

Outgoing President Steve Puckett presented highlights and achievements of 2012 in his President’s Report, leaving members with the key message that the Chamber continues to develop, grow and enjoy success. Stepping down this year, Puckett welcomed the new board, and Hugo Walkinshaw as his successor.

For all members who were unable to join the AGM, here is a summary of the President’s Report:

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President’s Report Key developments and achievements 2012: • Continuous and sustainable membership growth • Introduction of member focus groups to gauge feedback on a regular basis • Increased events activities providing members more networking opportunities • 82 events with close to 5,000 attendees • Active and engaged Committees and Business Groups • Relaunch of the Professional Services Business Group, chaired by Carolyn Lints, with focus on support to UK-based SMEs • Further development of the Annual Business Awards with The Straits Times as exclusive Media Partner • Further enhanced website • Seamless customer journey when joining online • Prominent reference to Business Groups and BiSEA • Redesign of the Orient magazine driving higher value for contributors and advertisers • Publication of the Diamond Jubilee Book • Continuously excellent relationships with sponsors, both existing and new • A close and productive working relation with UKTI and the BHC • Part of Headstart, the pilot to offer UK SMEs enhanced services in market Key developments and initiatives 2013: • Introduction of regular Pulse Surveys to track members’ views on business issues and satisfaction with the Chamber • A new Silver Sponsor: Standard Life • A new Bronze Sponsor: Portfolio Builders • A new Sponsor for the prestigious Leaders in Business Lunch Series: BT • Re-engagement with existing Sponsor Barclays–introduction of Diversity • Leadership in Singapore and SEA Business Group launched in April • Establishment of the Scottish Business Group • Continuation of Headstart • Signing of an MoU with the Chamber of Commerce in North Staffordshire • Adding new target audience and new revenue stream

The presentation, the full set of accounts and the minutes of the meeting are available in the membership section of the website www.britcham.org.sg

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At the Chamber

BritCham Board Members 2013/14

Hugo Walkinshaw Executive Director Deloitte Consulting SE Asia

PRESIDENT

Andrew Vine Managing Director The Insight Bureau Pte Ltd

Peter Allen Group Managing Director Pacific Century Regional Development

VICE PRESIDENT

Dominic Nixon Senior Partner & Head of Financial Services Industry Practice PricewaterhouseCoopers

Damian Adams Partner, International Corporate Group Watson, Farley & Williams LLP

TREASURER

SECRETARY

Andrew Thomas Managing Director, Public Relations Ogilvy & Mather Singapore Pte Ltd

Anthony Lucas Partner Ernst & Young Solutions LLP

Brendan Malone Head of Client Network Strategy The Royal Bank of Scotland plc

Chris Davie Chief Executive Officer Singapore Aero Engine Services

Clive Christison Country President BP Singapore

David Macdonald Managing Director Portfolio Builders

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David Pugh General Manager The Fry Group

Ian Williams Chief Risk Officer, Singapore Asia Pacific Risk HSBC Bank

Peter Hatt Regional Head of HR, Singapore & South East Asia Standard Chartered Bank

Richard Burn Corporate Relations Director, Diageo Asia Pacific Diageo Singapore Pte Ltd

Robert Williams Regional Commercial Manager, South East Asia British Airways

Sian Brown Regional Head of Programme Execution Group Barclays Bank PLC

Tim Harris CEO South East Asia, BT Global Services BT Singapore

Judith Slater Deputy High Commissioner British High Commission

Mark Howard Director British Council

EX-OFFICIO

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Britain in South East Asia News

BiSEA News Britain Brunei Business Forum

Brunei’s ASEAN chairmanship has led the Britain Brunei Business Forum (BBBF) to focus on growing business within Brunei and the region. In March, BBBF held a network event— “The EU’s Business proposition in Brunei and ASEAN”—with a visiting European Union delegation, which specifically focussed on a political cooperation agreement and a possible free trade agreement. In late May, BBBF hosted a discussion about supporting SMEs with the visiting Standard Chartered Bank global head of SME sales management, who was joined by a panel comprising representatives from local business, the Brunei Economic Development Board and ASEAN Business Advisory Council Brunei. www.bbbf.biz

British Chamber of Commerce in Cambodia

Following a reorganisation programme, the British Chamber of Commerce in Cambodia is now formally registered as a Chamber, continuing the work of representing British businesses since 1995. “Our members are benefiting from increased lobbying influence on their behalf and a more focused approach to promoting their success,” explained chairman Darren Conquest. “We have a full diary of briefing sessions, speakers’ dinners and networking events for 2013, and we welcome British business people and those with an interest in doing business in Cambodia.” Do visit the new website: www.britchamcambodia.org

British Chamber of Commerce in Indonesia

BritCham Indonesia is pleased to offer preferred rates to members of British Chambers and business groups part of Britain in South East Asia (BiSEA), for bespoke organisation of your marketing or information event in Jakarta. This service is particularly useful for non-resident businesses that are looking to test the attraction of their products and services, particularly among the BritCham community of 1,000, or database event attendees of 5,000. We will work with you in a highly cost-effective and efficient way, allowing you to tap into our negotiated venue rates, under the organisation of our very experienced team. You will only have to concern yourself with polishing your product or service messages. For more information, please contact us at busdev@britcham.or.id

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British Malaysian Chamber of Commerce

It has been a busy month of May for Malaysia: The country’s 13th general election saw the ruling coalition party re-elected. With the Government securing their seat, we now see investor confidence returning to Malaysia. Looking forward, the British Malaysian Chamber of Commerce will follow the nation’s progress and development in line with Vision 2020. Malaysia continues to be a growing force in ASEAN, and its attractiveness to businesses is set to continue. Visit our website www.bmcc.org.my to view the exciting lineup of events the Chamber is holding this year, and do follow us on Facebook (BmccMalaysia) and Twitter (@BmccMalaysia) for live updates.

British Chamber of Commerce Thailand

The Thai government and the European Union have formally commenced negotiations for a bilateral free trade agreement (FTA). The British Chamber of Commerce Thailand (BCCT) is inviting submissions from member companies on business issues that members would like addressed in the FTA negotiations. Input from members will be consolidated into sectoral recommendations, which, together with general business issues, will then be channelled to the European Union via the British Embassy and the European ASEAN Business Centre in Thailand. Member companies are encouraged to email Stephen Frost, BCCT board of directors, at sfrost@bia.co.th

British Chamber of Commerce Philippines

This is an exciting time for British businesses in the Philippines. The economy grew by 6.6% in 2012, making it Asia’s fastest-growing economy after China. Recently, Standard & Poor’s and Fitch Ratings awarded the Philippines its first-ever investment grade rating. Against this backdrop, the British Chamber of Commerce Philippines recently signed a Memorandum of Understanding with the UK Trade and Investment and the British Embassy Manila to strengthen their collaboration in promoting the interests of incumbent British companies and in attracting more British businesses to enter and succeed in this exciting market. www.bccphil.com

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At the Chamber: Business Group News

Leadership in Singapore and SE Asia W

hat is a global mindset? Do we need it to succeed? How can organisations develop global-minded talent? What are some of the challenges we, as businesses, face and how do we overcome them? These were just some of the questions which kicked off our recently established “Leadership in Singapore and SE Asia” business group meeting, after our recent BritCham survey found that the membership was keen to learn about best practices in leadership and talent development.

Global mindset

A global mindset can be defined as a set of characteristics that enable the individual and the organisation to be competent, effective and responsible in the global environment. It requires knowledge about world affairs and geographies; characteristics, such as openness and flexibility; and the ability to effectively interact with people across cultures, in a socially responsible manner. With increasing globalisation and the interconnected nature of business across geographies, most employees need to have

a global mindset to some extent. It is not only true for executives with international responsibilities. Even a junior accountant in a local company is often dealing with overseas customers/suppliers, while company offices spread across the globe with a multicultural local team. Without a global mindset, an individual may have a narrow view of his role and how he works and interacts with others. This in turn may result in miscommunication, misunderstanding and missed opportunities. “One very important element of global leadership is openness to different cultures and ideas. This often comes up in our conversations,” noted committee member Kerri-Ann Mower, Head of Corporate Responsibility, Communications and Engagement Aviva Asia. “If there is a perception that a leader is not very open to ideas from elsewhere, this can often unfortunately act as a blocker to their development as a leader.” Dr Zsuzsanna Tungli, committee member who is Founder and Managing Partner of Developing Global Leaders Asia, explained that global leaders need certain skills and attributes in addition to their core leadership

skills to be fully effective. Based on a comprehensive literature review and our experience, these six areas appear to be the most important in which a global leader needs to be competent: • Leveraging and shaping global trends • Building global alliances and international networks • Being competent across cultures • Working effectively in virtual teams • Supporting and leveraging diversity • Acting in a socially responsible manner

Developing a global mindset

Using the well-established 70-20-10 rule in respect of development (70% on the job, 20% internal development, 10% external development), the most obvious approach often appears to provide opportunities for international experience on either shortterm or long-term assignments. “Gaining on the job international experience can be a great way of developing a global mindset. However, there are cases when a longer-term international assignment may not be possible, and is usually quite expensive,” noted Mike Hughes, a former executive with The Coca-

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Cola Company. “It is important to make sure the assignment meets the individual’s wider development needs, and the international assignment is not merely required so that individuals can tick a box saying they now have international experience.” The topic of assignments proved to be quite lively during the debate, particularly on whether international assignments should be short-term or long-term. Arguments for short-term include the suggestion that the assignment is often easier to arrange and senior executives are often more willing to undertake them. “Studies show that experienced people in general are less and less willing to go on long-term international assignments,” commented Dr Tungli. Faster rotation may also provide more opportunities for more employees, while ensuring expatriates do not sit in a position too long, which blocks the pipeline for ambitious local talents. On the other hand, a longer assignment (in excess of three years) often means the executive fully immerses in the country’s culture and gains a deeper understanding of the consumers and market dynamics. “In my opinion it takes about five years to really make a difference. A shorter assignment can have its challenges—knock-on effects can include a de-motivated team, the loss of local high potentials and missed market opportunities,” added Peter Hatt. So how can a global mindset be developed without working outside your home country? You can certainly develop your global mindset through interaction with international business partners and associates. But to what degree? Is there still a need for some form of international experience at the higher levels, where executives are expected to understand and appreciate their major international customers and markets? This is one of the questions the group wants to consider more thoroughly in future meetings.

Using coaching and mentoring to develop a global mindset

One of the most popular ways of developing global mindset is internal coaching and mentoring. The benefit of this approach is that the individual gains one-on-one development over an extended period of time. This ensures that learnings are properly embedded and the individual receives a high level of support.

Aviva has used mentoring for the development of their leadership team and to increase their global mindedness. “We experimented with a reverse-mentoring scheme,” highlighted Mower. “Success was linked to how open the pair was at the beginning of the process. It seemed to work best, even beyond our expectations, when there was a genuine interest in learning more from the other person. I think you have to want to be open and globally minded to develop this skill.” Standard Chartered has also used a reversementoring approach to good effect. “In a similar vein, we selected a group of senior leaders for a leadership programme in China, where they were set up for a reverse-mentoring experience with some of our junior Chinese talent,” added Hatt. “Interesting learnings came out about a very important market for us as well as about generation drivers, differences and opportunities.” Another question to be considered by the group in future meetings is: What more can organisations do internally to help develop global-minded talent?

External training

Lastly, the right training programmes, workshops and seminars can also be costeffective ways to help individuals and teams become more global-minded. One-on-one expatriate training is still a very popular and appreciated way to help executives quickly grasp the cultural challenges of their new

location. There are various companies that offer programmes in cross-cultural competence, virtual team leadership and other global mindset areas. “Training should be practical and job-relevant for the employees. It should also be spread out, and as a minimum, there should be some kind of follow-up either in the form of further training or coaching” added Dr Tungli.

Future areas for discussion

As always, this session raised as many questions as were answered. In the coming months, the Leadership in Singapore and SE Asia Business Group will be meeting again to talk more about this topic with the aim to bring companies from all industries and sectors together to share experiences. This business group will also be discussing a number of other questions such as: • How can we have more Singaporeans among middle and senior leadership? • How do we develop Asia’s next cohort of global leaders? • Can you develop a global mindset without a move? • How do you develop leaders in a fast-changing environment and a hot employment market? • Do you need sponsors to succeed in your global roles? If you are interested in contributing to the discussion, please join our British Chamber of Commerce in Singapore LinkedIn group discussion.

Chairperson:

Peter Hatt Regional Head of HR, Singapore & South East Asia - Standard Chartered

Committee Members: John Nolan - Unilever

Stephen Brown - Rolls-Royce Wen Brotter - BP Zsuzanna Tungli - Developing Global Leaders Mike Hughes - Developing Global Leaders

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At the Chamber: Business Group News

Entrepreneur and Small Business Group Chairperson: Peter Seligman —Assistant Branch Manager, Meyado Pte Ltd

mall- and medium-sized businesses depend on the energy and drive of their owners—and the Chamber’s Entrepreneur & Small Business Group (ESBG) has fully adopted this strategy, with their ever-growing pipeline of events. These are challenging times for all businesses, particularly the small ones. Having said that, Asia is definitely the place to be, and opportunities for growth are still out there. With a little help, SME owners can ensure that they are well placed to take advantage of these. The ESBG sees its role as an “ideas exchange” for its members—to provide assistance in the entrepreneur’s desire to grow his company as swiftly and profitably as possible. We stage events on a wide array of topics and themes, ensuring that we cater to the stated needs of the membership. The most recent event was the eagerly awaited presentation on property strategies for small business owners, held at Collective Works, on Cecil Street. Attendance was good, and the feedback from attendees so far has been excellent. Personally, I have been really impressed with the enthusiasm of the presenters at the events for which I am responsible. An increasing number of new and existing Chamber members are approaching us, wanting to know about, or even suggesting, a future event—momentum is clearly building within the ESBG. We hope you have enjoyed the events to date, and if you haven’t managed to attend one yet, that we’ll see you at the next one, which is a breakfast presentation on low-cost techniques for digital marketing.

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Financial Services Group Chairperson: Patrick Donaldson —Executive Director, VP Bank (Singapore) Ltd

s this is the first submission to Orient by the Financial Services Business Group (FSBG) committee, we thought it would be useful to provide some detail on the business group itself, which constitutes the committee and what we aim to achieve. We hope this leads to an increase in the level of engagement between the membership and the committee. The FSBG membership is one of the largest within BritCham, which is not surprising, given the size of the financial services community in Singapore. The committee is composed of a good mix of individuals to ensure representation across various industry sectors. The current committee is as follows: • • • • • • • • • • • • • •

Alexandra Faris, Lloyds of London Andrew Naylor, Cicero Group Anil Scott, Meyado Ashley Jones, The Fry Group Charlene Braganza Morris, PricewaterhouseCoopers David Gardner, The Henley Group Gary Haran Doyle, Deloitte & Touche Ian Black, Friends Provident International James Parker, The Royal Bank of Scotland Julian Chester, Coutts & Co Nicholas Moraitis, Australia and New Zealand Banking Group Paul Handley, J.P. Morgan Paul Hedges, HSBC Raphael Young, SAP

The committee allocates a good deal of time to discussing and identifying relevant and interesting events on behalf of the membership. Historically, most of our events have been on tax and regulatory updates, which is expected, given the changes in the industry. In the future, we will attempt to have a more balanced

approach to events: allocate roughly 30% of the discussion to industry/regulatory/ tax updates, 30% to economics/markets/ investing, 30% to educational topics and 10% to social. In terms of regular events, we aim towards the following: • a quarterly networking evening • a quarterly breakfast club presentation

• a biannual economic briefing • ad-hoc events, as speakers of interest become available We will give regular updates in each issue of Orient. It would be helpful for the committee if members provide input when it comes to deciding events. And where possible, we would encourage member companies and their employees to get more involved.

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At the Chamber: Business Group News

IT and Communications Technology Group Chairperson: Henry Farahar —Sales Director, Unified Communications Group, Logicalis Asia

ig data, cloud, mobility and social—these important “megatrends” are this year’s focus topics for the ICT Business Group. Each of them will profoundly impact all of us on a personal and business level, so you need to know about them. In our last event, Kenneth Cukier explained how big data has been used to improve the success of our treatment of premature babies. Big data isn’t going to tell us why something happened, but it can tell us when something is likely to, allowing for prevention and offering infinite possibilities of how we can use and benefit from the ever-expanding realm of information and

data. The same algorithms that help us find and predict the best time to book the cheapest airfare can help doctors save lives. This truly incredible account is the tip of the iceberg when it comes to the significance that big data will have on our lives. From what and how we buy, to when and where we go, big data permeates our lives today, and this will only continue. Mobility and social media shape the demands the consumer brings to business, and are drivers that lead to the evolution of the way we work; cloud and big data are the enablers for businesses to succeed and grow in this new era.

To the most forward-thinking businesses, these concepts are embraced and employed to make their businesses better; to others, they need to be clarified from the abstract and pinned down into areas of development that will empower and benefit business, going forward. Don’t be left behind by the megatrends—understand the implications and impacts they could have on your business and make them work for you. The result: A lot less embarrassing than embracing other megatrends… like the “Gangnam Style,” for example!

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Professional Services Group Chairperson: Carolyn Lints

rofessional Services Group committee member, Duncan Merrin, was at Old Trafford recently to highlight the advantages of doing business in Singapore, enumerating the services on offer to overseas BritCham members—the first of a series of direct presentations to UK chambers. Local business people from the Manchester Chamber of Commerce and representatives from a diverse group of businesses filled the function room at the venerable stadium. The presentation consisted of three main points: the ease of doing business in Singapore, with speedy company formation as a result of its law and English language as the lingua franca; the very

favourable taxation rates, particularly for new companies; and the strategic location of the republic as the hub for the region of Southeast Asia. Further, local government grants for businesses operating in Singapore, and the strength of the Singapore dollar—pointing to a good time for exports to the region—were also highlighted. To underscore the benevolent tax infrastructure, Duncan outlined the personal income tax rates and information from his own company’s brochure, which addresses new company tax rates. Duncan—a UK chartered accountant and managing director of Intro International, a well-established Singapore-based business advisory consultancy—also delved into

the support offered by the UK trade and industry sector within the British High Commission, and the BritCham, for businesses interested in Singapore and the region, an area particularly new to market companies in the strategic SME sector. Duncan says of the presentation, “There was a lot of interest shown in the opportunities on offer in Singapore as a regional hub, and it was a good chance to highlight how the British Chamber and the Professional Services Group can assist in a practical way.” To find out more on the group’s activities please visit www.britcham.org.sg/psg

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At the Chamber: Business Group News

Property and Construction Group Chairperson: Richard Warburton â&#x20AC;&#x201D;Area Leader, South East Asia, EC Harris Singapore Pte Ltd

s emerging markets within Asia begin to open up further, global corporates are increasingly looking at the region and developing strategies around how they can capitalise on growing consumer spending power.

This approach can help to reduce backoffice costs; optimise both the CAPEX and OPEX spend; and guarantee greater consistency around brand standards, health and safety, and the final asset that is ultimately delivered in each location.

With excellent transport links, a welleducated workforce, an excellent quality of living and strong connectivity back to their UK headquarters, many of these businesses are choosing Singapore as a hub from which to base their regional expansion programmes. This will present exciting opportunities for UK businesses in many different fields.

Many corporates can already see the benefits of adopting a programme approach over a series of individual projects. However, they typically require guidance around two important themes: how to design the PMO so that it suits their business, and how to secure buy-in within each of the local markets where they want to operate.

While achieving future growth to meet increasing demand may be the burning platform for many of these companies, expansion cannot come at any cost. Indeed, many of these initiatives are being launched at a time when budgets globally are being reduced and property teams are shrinking. As a result, many of these corporates find themselves trying to implement growth strategies in some parts of the region, and consolidate their property portfolio in other locations.

To address this, itâ&#x20AC;&#x2122;s important that the

So, how can members within the Property & Construction Group help their clients negotiate this apparent tension, and successfully manage to do more for less? Thereâ&#x20AC;&#x2122;s no simple answer, but it almost certainly requires new ways of working for all and embracing different operating models. Adopting a programme management office (PMO) approach is one possible solution. This allows clients to adopt a lean, internal model, whereby a small team based in a Singapore hub define the vision, focus and governance of the programme, which is then executed by local delivery teams.

design of the PMO is inherently flexible, such that processes can be adopted to suit local market conditions, and that it accounts for differences in culture, language and working practices while maintaining core-process consistency. Furthermore, clients need to appreciate the benefits that a PMO approach delivers across the life of a programme, and engage stakeholders unfamiliar with the model. Designing and operating a PMO is not a quick win, but it can help clients achieve their future growth objectives by facilitating successful expansion and creating leaner teams and more productive ways of working, all of which will be a significant competitive advantage in this market.

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Scottish Business Group Chairperson: Jason Grant —Regional Manager Southeast Asia, Scottish Development International

n view of the recent merger of the Scottish Business Association of Singapore and BritCham, we have created the Scottish Business Group. This new group is open to all Scottish companies and individuals, as well as members with an interest in Scottish business. Due to the similarity and complementarity of industry in Scotland and Singapore, over 60 Scottish companies have established their Asian operations in Singapore in the last four years. In addition to huge interest from Scotland’s universities and colleges, there is now a steady flow of Scottish companies—in the oil and gas, engineering, financial services, software development and digital marketing sectors—moving into the Singapore market. Through this group we wish to develop a strong support and lobbying body, running industry-focused events with Scottish speakers, businesses and social networking events, and provide a core resource of advice and services for businesses new to the local market. We also have aspirations to link businesses in Singapore and Scotland, to support the two-way trade of products and services. Please feel free to get involved and we look forward to seeing you at our group’s launch event.

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At the Chamber: Business Group News

Young British Chamber Chairperson: Miles Gooseman —Consultant, The Fry Group

one are the days when you can say, “It’s not what you know; it’s who you know.” In today’s world, it’s all about what you learn from who you know. The prevalence of social networking means we are highly “connected,” but the key is identifying a network that provides you with what you want. Are you looking to find out about a new career path? Are you interested in understanding a particular business, or do you just want to know some new people? Networking is about expanding your range, creating new possibilities (for both parties involved), learning more about other jobs and fields, and identifying key people and decisionmakers. It raises the questions: Who do I know with something interesting to tell me? Or who do I know can offer me help?

The collaboration between Young British Chamber (YBC) and Young Bankers Association (YBA) at the Royal Bank of Scotland has been able to bring precisely all these things to the table. This joint effort promotes the professional and personal development of members who are young professionals within the firm and across the industry. The principle is simple: Having fun is an integral part of personal development. Ultimately, members need to feel they are taking away something new with them—whether it is something they’ve learnt or someone they’ve met. Opportunities to network with some of the senior members of the financial industry, to meet the British High Commissioner, to have a mentoring session with Michael Ma, to visit the cockpit of a

ready-to-fly Airbus A380, or to take a tour on the USS John C Stennis, don’t come about too often for young professionals— but not so here at YBC. Having been a part of YBC for over six months now, we are thrilled to have formed this partnership and to be able to co-host a number of external events that will provide more opportunities for our young professionals to network across industries, to connect and learn from one another and build rewarding relationships. Written by Abhinav Swamy Supervisor - Collateral Management APAC, Markets & International Banking, RBS

When you want to get there faster, aim higher It turned out the fastest way to sail across the ocean, was to fly. At Standard Life we’ve invested time into developing our savings and investment plans to get you where you want to be, quicker. So there’s never been a better time to invest in the future. www.standardlife.sg

Standard Life International Limited (Singapore Branch) is the Singapore branch of Standard Life International Limited and is registered in Singapore (T12FC0118K) at 30 Cecil Street, #26-00 The Prudential Tower, Singapore 049712. Authorised and regulated by the Monetary Authority of Singapore as a direct life insurer. Standard Life International Limited is a company registered in Ireland (number 408507) at 90 St Stephen’s Green, Dublin 2. Standard Life International Limited is authorised and regulated by the Central Bank of Ireland. www.standardlife.sg © 2013 Standard Life, images reproduced under license.

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At the Chamber: Sterling News As a global moving and relocation company, Allied Pickfords have been taking care of our customers worldwide for over 400 years. In September 2013, Allied Pickfords Singapore will be celebrating 40 years of operations in Singapore. Allied Pickfords is part of the largest and most respected providers of moving services in the world, with enhanced capabilities to manage domestic and international moves, as well as time sensitive business and office moves. With over 600 offices in more than 40 countries, we’re the moving specialists and the only provider with the global reach and local expertise to move anyone, anywhere, at any time. Each year we organise ore than 50,000 international moves with thousands of individuals placing their trust with Allied Pickfords. So relax, we carry the load.

Standard Life launches in-market survey to better understand savings needs of British and European expatriates in Singapore. Leading long-term savings and investments firm Standard Life—which recently launched in Singapore—conducted a targeted survey to better understand the savings attitudes and habits of British and European expatriates in Singapore. Through analysis of the survey results, the Singapore team will develop propositions to address under-served areas within the long-term savings and investments industry. Standard Life looks to fully understand what British and European expatriates seek from a long-term savings partner, as well as their saving priorities, to better serve the Singapore market. The survey closed at the start of May, and findings will be announced shortly. In addition, Standard Life announced in April that it has added an additional 42 funds to its platform, bringing the total number of direct funds offered in Singapore to 196.

As a result of a rigorous formal assessment, designed to improve Continuing Professional Development (CPD) standards throughout the education sector, Tanglin Trust School is delighted to have been awarded the highly coveted ‘CPD Mark.’ The assessor, from the independent UK Quality Mark, found CPD practice to be ‘Outstanding’ and, in particular, highlighted the professionalism of all staff and their commitment to life-long learning. The report described CPD provision as, “In line with the school’s mission and development priorities; strategically well led and exceptionally well managed; bespoke to meet individual staff training requirements; and innovative and inclusive of all employees at the school.”

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All British Airways flights from Singapore to London now arrive at Terminal 5, the airline’s award-winning and state-of-the-art home at London Heathrow. Terminal 5 is exclusive to customers of British Airways and its sister airline, Iberia, and serves as the gateway to British Airways’ extensive European and North American route networks. This means that travellers from Singapore no longer need to change terminals when travelling to Europe and other parts of the world. In 2012, Terminal 5 was named by Skytrax as the World’s Best Airport Terminal based on surveys of 12 million frequent travellers. The £4.3 billion building, which is capable of handling 30 million customers a year, is among the world’s most advanced and redefines the concept of travelling through an airport.

In line with the company’s commitment to give back positively to the community, Courts Singapore launched a 10-week long Courts Charity House campaign in December last year to raise funds for 10 local families in need. For every ‘Like’ pledged on its Facebook application, Courts contributed $1, and also rewarded $5 for every hour of community work by Heartware Network’s youth volunteers. A total of $52,000 was raised, which was exchanged for items from Courts stores and grocery vouchers. LG Electronics also sponsored brand new electrical items. On 11 April 2013, Terry O’Connor, Chief Executive Officer of Courts Asia, presented the cheque to Raymond Huang, Honorary Chief Heartware Officer of Heartware Network, who received it on behalf of the families. Acting Minister for Social and Credit: Heartware Network

Family Development, Chan Chun Sing, was in attendance to witness the cheque presentation.

Deloitte Southeast Asia will partner the newly-minted Business Families Institute (BFI@SMU) to conduct a first-of-its-kind regional comparative study on business succession. Deloitte will appoint country champions in six countries—Singapore, Indonesia, Malaysia, Thailand, the Philippines and Vietnam—to provide research resources and industry expertise in designing and conducting the survey study. A research gift will also be donated to the Institute. Tam Chee Chong, Regional Managing Partner of Financial Advisory Services at Deloitte Southeast Asia shared: “We are pleased to be a Knowledge Partner of BFI@SMU. By tapping Deloitte’s extensive cross-border and industry knowledge, this research study will offer valuable insights to business families in this region and also enhance the quality and lifespan of their businesses.” BFI@SMU is expected to launch the survey in June 2013 and release its findings at the end of the year.

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At the Chamber: Sterling News Over 100 of the world’s mobile operators, network equipment providers and handset manufacturers now rely on Actix to support the rollout and management of the latest 4G LTE networks. Christopher Beukers, SVP of Global Customer Operations at Actix, comments, “For mobile operators, the return of investment on LTE networks is dependent on an on-time, on-quality and on-budget delivery. Subscriber expectations are high and operators must get it right the first time.” Actix solutions transform the way mobile operators locate, optimise and monetise their subscriber’s experience. By delivering real-time visibility of the mobile network, Actix helps mobile operators improve customer experience, increase efficiency and deploy next generation mobile networks. Founded in 1992, today Actix has major offices in Singapore, the UK, Malaysia, Japan, China, US, Germany, Australia, Brazil, and Dubai.

Turn-key office moving solutions for you... Allied Pickfords is one of the largest and most respected providers of time sensitive business and office moves. At Allied Pickfords, we understand the intricate details that go into the success of an office move. We approach your move holistically, looking beyond the physical relocation to include (but not limited to) services such as  IT consultancy  Server/network/data centre relocation  Minor fit-out work  Secure document destruction  Move/project management Let Allied Pickfords facilitate your office move from conception to completion.

Call Allied Pickfords at (+65) 6862 4700 or visit

www.alliedpickfords.com.sg

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At the Chamber: Corporate News

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Leading fashion retailer Wing Tai Retail launches three exciting brands in May and June: • Renowned for its urban and contemporary pieces, Spanish fashion label Adolfo Dominguez is affordable luxury, with a focus on high-quality and carefully designed silhouettes for the sophisticated woman. • Established French lingerie brand Etam exudes pleasure, spontaneity and femininity through its delicate lace and intricate tailoring. • Hong Kong fashion conglomerate I.T Group will open its first multi-label flagship store, i.t, in Southeast Asia. Expect cutting-edge street brands such as izzue, b + ab, 5cm, tout à coup, Fingercroxx, Venilla suite and many more, in Wisma Atria this June. Store locations: Adolfo Dominguez: Paragon Shopping Centre, #02-26A, Singapore 238859. Etam: Wisma Atria, #01-31, Singapore 238877; Raffles City, #02-08, Singapore 179103. i.t: Wisma Atria, #03-15, Singapore 238877 (opening this month).

ICAEW, a world leader in the accounting and finance industry, will be launching its first international Financial Talent Executive Network (F-TEN) programme in Singapore this August. An elite leadership programme, F-TEN uses mentoring and peer-to-peer networking to help senior finance professionals develop the leadership skills required of today’s chief financial officers. Further, ICAEW has also signed a letter of intent with the Singapore Accountancy Commission to commit to reciprocal membership for their members and the chartered accountants of Singapore. This step signals a closer relationship between the two bodies, and aims to strengthen Singapore’s accountancy talent pool, as the nation moves towards becoming the leading global accountancy hub in the region. As ICAEW solidifies its presence in the region with such initiatives, it continues to be a provider of professional development, knowledge, insight and technical expertise, to protect the quality and integrity of the accountancy and finance profession globally.

Cambridge International Examinations will hold its next global schools conference on 16 and 17 October 2013 at the United World College of South East Asia, in Singapore. The venue recently hosted a visit from the newly appointed chief executive of the Cambridge International Examinations, Michael O’Sullivan. It will be the second time this annual conference is held in Asia Pacific. Entitled “Educating Today’s Learners for Tomorrow’s World,” the conference will explore how to best prepare learners for life beyond school by looking at the skills that will be needed in the future, and how to effectively embrace technology in the classrooms. On top of keynote addresses from prominent education experts, the event will also feature panel discussions and facilitated workshops for attendees. For further information, sponsorship opportunities and seat reservations, please visit: www.cie.org.uk/events

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At the Chamber: Corporate News The British Council is highly regarded for its teacher-training work in Singapore and worldwide. Therefore, the British Council Singapore Teaching Award is the place to start if you are new to teaching, or plan to teach as a career. Begin with one module and have the flexibility of choosing what you want to do next, and when. Each module completed successfully gains you credits towards a teaching award. At the British Council, you can also attain the Certificate in Teaching English to Speakers of Other Languages (CELTA)—an internationally recognised qualification from Cambridge in teaching English as a foreign language to adults—offering you the chance to work in Singapore and overseas.

Ambition Group has announced the appointment of Eric Dodd as independent NonExecutive Chairman. He will replace Nick Waterworth who will step into the role of Deputy Chairman. Eric has over 30 years’ board level and financial services experience and is the Chairman for SFG Australia and Firstfolio. He has worked with NatWest Markets, Legal & General, New Zealand and Australian Bank and NRMA, where he was Chief Executive. Eric is a Fellow of the Australian Institute of Company Directors and the Institute of Chartered Accountants.

Cartus Corporation, a leading provider of global relocation services, has introduced new enhancements to its CartusMobileSM app used by transferring employees and their companies in 87 countries. In real-time, the easy-to-use app consolidates information and enhances effective communications between transferees, their companies, and Cartus. The app now enables transferring employees to organise, draft, submit, and track expense reports from their mobile devices—anywhere, anytime. “With the new app, we’ve taken things to a further level by adding advanced features for mobile devices, improving the relocation experience for transferees and their companies,” said Kenneth Kwek, head of Cartus Asia operations.

Corporate Research and Investigations LLC (CRI Group), a subsidiary of Corporate Research and Investigations (Pvt.) Limited and a leading provider of investigative research services, today announced the award of License and therefore opening of its offices in the Qatar Financial Center-QFC, Doha, Qatar, with the name and style of Corporate Research and Investigations LLC – QFC Branch. For the past 23 years, CRI Group has been safeguarding clients across the Asia Pacific, South Asia, the Middle East and North Africa by establishing the legal compliance, financial viability and integrity levels of outside partners, suppliers, customers and other sources seeking potential business affiliations. www.crigroup.com

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Raffles Health Insurance Pte Ltd (RHI), a wholly owned subsidiary of Raffles Medical Group, has launched two new international health insurance plans in conjunction with Bupa International, targeting next-generation expatriates and international businesses in the Asia Pacific region. The plansâ&#x20AC;&#x201D;RHI-Bupa Company Health Select Asia Pacific and RHI-Bupa Company Health Choice Internationalâ&#x20AC;&#x201D;are insured by RHI and administered by Bupa International. The first is designed for businesses that operate in the Asia Pacific region,* whose employees do not need worldwide cover, while the latter, the RHIBupa Company Health Choice International plan, covers members in three different countries, one of which would have to be Singapore as their residency country, with two additional locations of choice (excluding the US). For more information, please contact +65 6340 1663. *Covers treatment in more than 40 countries in the Asia Pacific region, with the exception of Hong Kong.

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At the Chamber: Members’ Offers

Members’ Offers

To find out more about our members’ offers, visit our website under Membership -> Members Offers.

10% off Berrys’ Own Selection range and reputable Bordeaux and Burgundy producers. 10% off airfare for British Airways.

15% discount on any lifetime memberships (new memberships only).

City Serviced Offices: 10% discount on virtual offices, meeting rooms, video conferencing facilities and secretarial services. 5% off electrical and 10% off furniture at Courts when you present your membership card.

Special Rate for Damai Gym membership at Damai Spa, Grand Hyatt Singapore.

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15% off menu for ECO Gourmet café.

15% discount on full service outsourcing of payroll. 10% off any International Medical Insurance plan.

Free 3 Month subscription to ExpatLiving.

15% discount at Harry’s when you present your membership card. Complimentary Changi Airport transfers. Complimentary return flights from Bali to Sumba. 15% off regular rates for services. Enjoy $1,250 vouchers with Term Membership at ONE°15 Marina Club. Up to 15% off F&B at Quayside Isle: 15% off total bill at Grillado and Paradiso Restaurant & Bar 10% off regular-priced wines at The Straits Wine Company Complimentary gelato with every main course

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Everything We Know is Wrong March 14, 2013 BBH Asia Chairman, Charles Wigley, delivers a talk “Everything we know, is wrong.” Playing provocateur, he tackles five flawed notions in the marketing industry in one fell swoop: from ‘TV is dead,’ ‘brand love,’ ‘everyone wants to join in,’ ‘pre-testing makes everything better,’ and finally ‘London and New York knows absolutely everything.’

Winning the Talent Retention War March 27, 2013 Gaurav Joshi covered the latest trends in flexible and mobile working and supported this through research conducted by Regus among HR professionals with the most critical points for workplace change in their organisations. Main issues such as collaboration among the workforce are identified and case studies of organisations that have faced these challenges are given. The morning concluded with a lively discussion on the topics presented.

At the Chamber: Breakfast Clubs

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Global Customer Experience Management April 10, 2013 Bhagwat Pant gave a presentation on creating and delivering personalised customer experiences on a global scale, how a company can communicate key messages clearly and consistently across all marketing communications and channels, strengthening brand loyalty with existing customers, and increasing market share through new customer acquisition.

Neuroscience in Business April 23, 2013 In this presentation, Professor Gemma Calvert, one of the worldâ&#x20AC;&#x2122;s leading experts in the application of neuroscience (the study of the brain) to marketing, introduced the rapidly expanding field of Neuromarketing.

The BritCham Breakfast Club is proudly sponsored by:

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At the Chamber: Breakfast Clubs

Debt Financing and Restructuring April 24, 2013 David Chew, Executive Director of Ernst & Young Solutions LLP, gave an introduction to debt financing and the full debt spectrum â&#x20AC;&#x201D;from debt raising and refinancing to debt restructuring, non-traditional debt raising options, non-traditional/alternative debt financing solutions, process, key concepts and structuring issues, and some case studies.

Boosting Business with Digital Marketing May 8, 2013 Nick Fawbert reviewed lean start-up methodology and how it can be applied to both new and existing local businesses to kick start a digital business strategy, digital technologies and opportunities and its impact on commercial success in SEA, and demystified the various digital marketing disciplines from web design, through search, social display and mobile to show how simple these are to execute and manage through the existing talent pool.

The BritCham Breakfast Club is proudly sponsored by:

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Employee Mobility and Travel Risk Management

Challenges and best practices in mitigating key business travel risks in Asia

May 9, 2013

Alex McSporranâ&#x20AC;&#x201D;Regional Security Training Manager, International SOS

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At the Chamber: CSR Panel

Corporates for Social Enterprise April 17, 2013 Official launch of the Social Enterprise Association Social Enterprise Partner Programme, introduction by the panelists on social enterprise, followed by a fun, practical and interactive forum to hear from social enterprises and enable matching of social enterprises with attendees to forge an ongoing partnership.

From left to right: Dr Gillian Koh, Board Member, Social Enterprise Association Ltd; Georgie Passalaris, Corporate Social Responsibility Manager, Diageo APAC; M Ibnur Rashad, Co-founder & Kampung Innovator, Sustainable Living Lab Pte Ltd; Areena Loo, Founder and CEO, Bridge Learning Pte Ltd; and Benny Se Teo, Founder and Chef, Eighteen Chefs Pte Ltd

Moderator Jenny Costelloe, CSR Consultant, Tulchan

The BritCham CSR Panel is sponsored by:

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All Party Parliamentary Group Trade Mission Led by Margot James MP March 3, 2013 BritCham members had the unique opportunity to network and discuss with UK MP’s and UK companies from the infrastructure and education and training sectors. The mission was led by Margot James, MP. In attendance were MPs Alok Sharma, Iain Wright, Brian Donohoe, Rt Hon John Spellar and Chris Kelly.

Working Lunch: Understand How Multi-disciplinary Personal Skills Contribute to Business Growth

Expatriates on assignment in Singapore and those Singaporeans desirous of working elsewhere

May 7, 2013

Attendees were able to: • Understand how multi-disciplinary personal skills contribute to business growth • Know how networks and professional associations can aid personal development • Learn how board room diversity can contribute to business effectiveness • Take away tips on how to get your marketing message over more effectively

At the Chamber: Business Lunch

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Harnessing the Power of Big Data for Your Organisation March 19, 2013 Kenneth Cukier, Arun Ulagaratchagan and Rob Bartby discuss: The era of “Big Data” is now truly upon us, and is recognised as one of the defining business trends of the next decade. Increasingly, companies are looking at their data—and their ability to understand, harness and lever it—as a sustainable competitive advantage.

YBC Networking March 21, 2013 Networking session with members of the BritCham Young Professionals Business Group.

At the Chamber: Evening Presentation/Networking

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ICT Networking Evening April 18, 2013 In partnership with FCCS, the BritCham ICT Business Group welcomed members from the ICT community for a casual networking evening.

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2013 BritCham Events: Mark Your Diary

At the Chamber: Events Calendar

BritCham Breakfast Club Wednesday July 10, 2013 Persuasion Psychology: How to Persuade and Influence People Tuesday July 23, 2013 Risk Appetite as a Starting Point Wednesday August 21, 2013 Operational Excellence: Meeting Customer Requirements Efficiently and Profitability

CSR Breakfast Briefing Tuesday July 16, 2013 Towards a new Social Contract: Making Corporate Giving Strategic

Business Lunch Tuesday June 25, 2013 Working Lunch: Selling and Negotiation—Avoiding the Trap and Reducing Internal Conflict

Evening Presentation/Networking Wednesday June 19, 2013 YBC Evening Presentation on “Questions are the Answers: NLP Language Patterns for Business Productivity”

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Networking Thursday June 20, 2013 Professional Services Business Group Networking Thursday June 27, 2013 Networking Evening and Incorporation of the Scottish Business Group

Annual Corporate Golf Tournament Available for Sponsorship Sentosa Golf Club

F1 Networking Thursday September 19, 2013 British Chamber of Commerce, Singapore

BritCham Business Awards Thursday October 3, 2013 Shangri-La Hotel, Singapore

The BritCham Ball Saturday December 7, 2013 Shangri-La Hotel, Singapore

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Culture & Lifestyle

Sandbag:

A Singapore-Based Ex-Service Club You may have heard of Sandbag, a Singapore-based association of former British and Commonwealth military men and women, but who are they really, and what do they do?

ragically, 440 UK servicemen and women have been killed in Afghanistan, and 179 in Iraq; the number of people killed and wounded is even larger when you take into account other nations involved in conflicts. Countless people are consequently affected: wives, husbands, partners, children, parents, relatives and friends. This is a situation that many people want to help alleviate. Sandbag is a Singapore-based association of erstwhile military men and women who live in Asia, with the aim to raise awareness and money for service charities and service families. The term “sandbag” was derived from the old military expression, “Pull up a sandbag, I’ll tell you a war story.” Sandbaggers, as the members are called, could be men or women from any rank in the Royal Navy, the Royal Army or the Royal Air Force, regular or reserve.

Currently, there are approximately 200 Sandbaggers from across Asia. Unsurprisingly, they come from a wide variety of industries: banking, financial services, recruitment, legal, medical, education, offshore, maritime, defence, security, media, food and beverage, etc—you name it, and there’s probably a Sandbagger in it! So far, Sandbaggers have raised over $30,000 for their chosen charities, the Royal British Legion (RBL) and Help 4 Heroes. Money is raised in the form of donations, sponsorship of events or people giving directly to the charities themselves.

The Royal British Legion

RBL was established in 1921 as a result of the millions of families affected by World War One. The charity provides welfare to the service family—serving or ex-servicemen and women, and their dependents. Each year, RBL runs the Poppy

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Culture & Lifestyle: Sandbag: A Singapore-Based Ex-Service Club

Appeal, which is central to Remembrance Sunday. This is particularly significant in Singapore, where 130,000 Commonwealth armed forces were captured during World War Two, many of whom were laid to rest at Kranji Cemetery, the Singapore site for the annual act of remembrance.

Help 4 Heroes

This newer charity supported by Sandbag was founded in 2007 to provide facilities and recovery centres, which were thenâ&#x20AC;&#x201D; and still areâ&#x20AC;&#x201D;desperately in need for injured troops returning in large numbers from Afghanistan and Iraq. The aim of the charity is to enable and support those sick and wounded, and their families, for the rest of their lives. There are two principal events on the Sandbag annual calendar:

The Changi Walk

Last year marked the 70th anniversary of the fall of Singapore, in 1942, to Japanese forces. Those captured were marched from the Padang to Changi Prison. In November 2012, the Sandbaggers retraced the 25-kilometre march as a charity walk, and were joined by over 100 men, women and children from the massed ranks of the Singapore Gurkha Contingent, the Royal Marines, the Royal Navy, the Royal Air Force, Singapore Cricket Club, as well as parents and teachers of the Tanglin Trust School.

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Sandbag is a vibrant club made up of dedicated Sandbaggers who are passionate about doing their bid for service charities, while also meeting up regularly on a social basis.

The Eden Hall Dinner

A formal black-tie mess dinner is held annually to honour those who have served their country, and to raise funds. The event is hosted by the British High Commissioner, His Excellency Antony Phillipson, at his Eden Hall residence. This year’s event, on 19 April 2013, saw representatives that included the defence adviser to Singapore, Group Captain Clive Coombes, and the defence attaché to Indonesia, Colonel Phillip Thorpe; guests included Admiral Robert Carney USN and Brigadier

About the Author John Howells is the Founder and President of ‘Sandbag.’ He served as a Captain in the British Army, has been living in Singapore for 10 years, and can be contacted at john.howells@sandbag.asia or +65 96334595. Sandbag can also be found on LinkedIn Groups, Singapore. For more information, visit www.sandbag.asia

General Winston Toh, the latter of whom represented the Singapore Armed Forces Veterans’ League. Sandbag is a vibrant club made up of dedicated Sandbaggers who are passionate about doing their bid for service charities, while also meeting up regularly on a social basis. Please join us if you are an ex-service personnel, or if you know someone who is, do pass on the word—there is always a warm welcome for new Sandbaggers. Do support us at every opportunity for this very worthwhile cause.

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Culture & Lifestyle

Destination: Indonesia

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ome to over 230 million people, the worldâ&#x20AC;&#x2122;s fourth most populous nation, Indonesia, is an intoxicating blend of stunning natural scenery, intermingling religions and diverse languages. Also thrown into that mix are gorgeous sandy beaches, lush tropical forests, phenomenal animal and marine biodiversity, and tongue-tingling cuisine. With this vast archipelago stretched out at our doorstep, we really are spoilt for choice when it comes to exotic cultural delights and island escapes. Weâ&#x20AC;&#x2122;ve picked our top-three destinations for soaking up culture, exploring the seas and indulging in the best that barefoot luxury has to offer.

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Culture & Lifestyle: Destination: Indonesia

Sumba Island, Nihiwatu

The island of Sumba is 400 kilometres east of Bali and is one of the few Indonesian islands where the majority of its 600,000plus population still follow the ways of their ancestors. Untouched by the modern world, a visit to the primordial villages—famed for the Pasola ceremonies that take place during February and March—is a chance to really step back in time. In 1988, American Claude Graves and his wife Petra set up camp on the island in the hopes of creating a resort on par with international standards. However, the Graveses weren’t interested in merely building a five-star hotel that existed in isolation from the cripplingly poor local community—they were determined that the resort of Nihiwatu become the vehicle to improve the quality of life for ethnic Sumbanese. They co-founded the non-profit Sumba Foundation in 2000, which now raises $500,000 a year towards the elimination of malaria, building of schools and clinics, and provision of potable water for the villages. Nihiwatu itself encompasses 175 hectares of tropical forest, rice terraces and grasslands. Its stunning 2.5 kilometres of beachfront are protected by headlands that ensure total exclusivity for the handful of villas dotting the coast. The newly opened Nihiwatu 2.0 suites have been designed by the best minds in ecodesign and alternative engineering, with the intent to pave the way in eco-luxury. It’s a truly breathtaking getaway that few would have the chance to experience.

Credit: Callaghan Walsh

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Moyo Island, Amanwana

Moyo Island is a designated wildlife reserve with a pristine natural environment, where Amanwana’s 20 luxury tents surrounded by lush forest overlook the isolated bay. Inland, the island is a haven for nature lovers—there are countless treks through beautiful caves and waterfalls, and the chance to spot the area’s indigenous wildlife. The resort’s deer-breeding programme has brought about a significant increase in the rusa deer population, a native animal that’s shy and graceful. And beneath the surface, the opportunity for an incredible snorkelling experience lies just steps away from your tent.

About the Author Lightfoot Travel is an Asian-based luxury tour operator, offering full booking services alongside expert travel advice and inspiration for tailor-made itineraries and short breaks. Get in touch with Lightfoot Travel at 6438 4091 or info@lightfoottravel.com for your designer holiday.

For the true Aman Resorts-junkie, you can plan a trip to Amanwana, with visits also to Java’s Amanjiwo and Bali’s Amankila, Amanusa and Amandari.

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