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Your FREE ScandAsia Magazine ScandAsia is the only magazine that covers all the Danish, Finnish, Norwegian and Swedish residents in South East Asia.
The Danish Health Tech Group, of the Danish Export Association, in cooperation with the Royal Danish Embassy Jakarta is inviting to a delegation to Indonesia on 17 – 19 October 2016. The visit connects to the Hospital Expo star ting on 19 October. The delegation is directed at Danish companies providing know-how, equipment and consulting in health care infrastructure. The trip includes,
among others, visiting a number of hospitals and a networking event with the participation of private and public actors in the country’s health sector. “In the wake of Denmark’s state visit to Indonesia last year and the Indonesian vice-health minister’s recent visit to Denmark, Denmark is now strong in the minds of key players in the Indonesian health, and we must take advantage of now,” explains Thomas Andersen, Head of Danish Health Tech Group. Indonesia is the world’s fourth most populous country with 255 million inhabitants. Healthcare is a priority in Indonesia’s national development agenda and the government has committed to suppor t the development of an adequate healthcare infrastructure in the country. “95 percent of the market for equipment for the health sector in Indonesia is met by imports. With the coming massive new buildings of hospitals and clinics follow a whole new range of opportunities for Danish suppliers that have established relationships or some sort of presence in the market.”
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Invitation to Swedish digital know-how Indonesia forum Business Sweden, the Swedish Embassy and Ericsson are inviting to participate in a two-day event focused on unlocking the digital potential in Indonesia. The event, taking place on 6-7 September 2016, offers a unique opportunity to showcase world leading Swedish digital know-how for Indonesian decision makers. Business Sweden has identified strong business potential for Swedish digital solutions within a number of sectors and industries in Indonesia: Intelligent Transpor tation: Urban transpor t, Seaports, Airports, Railways, Highways Cloud-based Ser vices: Cyber secur ity, Software, Cloud computing Security AND Surveillance: Border surveillance, City security Infr astr ucture For Digitalisation: ICT components, Mobile technology Part of Indonesia’s push for development of the digital economy involves the recently designed e-commerce roadmap, which addresses a number of key issues such as guidelines for logistics services, financing for start-ups (here startup platform Plug and Play could contribute), consumer protection, communication infrastructure, e-commerce business tax, education, and cyber security. The Sweden Indonesia Digital Forum will provide Swedish companies with an opportunity to meet potential customers and partners in a relaxed and out of the box setting. The event will focus on know-how sharing and discussions on how Swedish digital solutions can turn Indonesia´s digital potential into business opportunities and economic growth.
Why participate in the delegation to Indonesia? + Be introduced and get connected to the Indonesian decision makers + Pitch how your solutions, products and services can support the digital transformation of Indonesia + Utilize the strong interest Indonesia has in Sweden as a front runner within digitalization and creative economy. On day two participants get the possibility to visit the digital Jakarta Smart City Lounge, listen to keynote speakers by Indonesian digital leaders and meet one-on-one with prospective customers and partners.
News Brief
Scandinavian Business Seating highlights HAG Capisco
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s people are returning from their annual leave, Scandinavian Business Seating (SBS) – a designer and producer of Scandinavian designed office chairs – highlights the extraordinary HAG Capisco chair from Norway, intended both for the home and work environment. Today’s workplace and advanced technology, forces us to sit for countless hours every day. Those who care about the health of their employees and families and want to prevent future back issues from sitting, you should explore the HAG Capisco chair! “The original HAG Capisco chair is a design classic that has been around for the last 32 years. As the largest office chair manufacturer in Europe, the HAG Capisco chair is still today the best- selling chair under SB Seating, which is based on its unique design and comfort that makes it a leader amongst chairs worldwide,” says Henrik Meltesen, Regional Sales Manager SEA, SB Seating. “Comfort comes from movement and variation, which HAG chairs inspire, better than any other chair in the market, together with exceptional posture. In addition, the HAG Capisco enables the user to work at all heights and positions, which makes it the ideal chair to use at height adjustable workstation.” “On multiple occasions employees at companies that use our chairs, contact us to purchase a chair to maintain the same level of comfort when sitting at home “ adds Henrik. The HAG Capisco chair was designed by the pioneering designer and artist Peter Opsvik in 1984 and is known for both its exceptional comfort and as a design classic. As the only chair in the market, that allows you to sit at all heights, which makes it extremely versatile and fit for all type of purposes and people. The chair is now available in Asia at SB Seating Making the world a better place to sit! info-asia@sbseating.com, www.sbseating.com
August 2016 • ScandAsia.South East Asia 3
News Brief
Nordic midsummer celebration in Manila
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ordic Business Council of the Philippines (NBCP) brought together members and guests to celebrate the Summer Solstice at the Makati Garden Club on 25 June 2016. “The evening was a blast - everybody got a kick out of the potato sack race and egg relay around the midsummer pole, while the kids had a great time in the magic show. The flower crowns worn by the ladies and the singing over schnapps led by the gents definitely relived this yearly Nordic tradition. And of course, the sumptuous buffet dinner prepared by Swedish chef Robert Lilja brought everyone closer to a true midsummer experience,” reports NBCP. In addition, a silent auction was organized for the benefit of Chosen Children Village, a home for abandoned children who are physically and mentally challenged. The KLM round trip business class ticket from Manila to any Nordic destination went to the highest bidder at PHP 100,000. The Nordic Midsummer Night Feast was organized by the Nordic Business Council of the Philippines and Scandinavian Society of the Philippines with the support of KLM and Cricket Lighters.
Swedish National Day celebration 2016 Hanoi
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n 6 June the Embassy of Sweden in Hanoi invited guests for the celebration of the National Day. Here is a glimpse of the evening. Entertainment for the evening was: DJ: Jonathan Glaser. Live Music: Funkestra
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August 2016 • ScandAsia.South East Asia 5
News Brief
Cambodia celebrates Swedish National Day in style
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June 2016 fell on a Monday, as the Embassy of Sweden Phnom Phen celebrated the Swedish National Day in style at the InterContinental Hotel. The event was presided over by guest of honour, Prak Sokhonn, senior minister for Foreign Affairs and International Cooperation, and hosted by Swedish Ambassador Anna Maj HultgĂĽrd. More than 350 distinguished guests attended, including government officials, diplomatic missions, private sector and development partners, civil society, and other friends of Sweden. The atmosphere was vibrant, open, and informal, repor ts the embassy. It was also an occasion to showcase Swedish activities in Cambodia during the past year. The event was spiced up by a great performance by Bella Voce choir singing Mamma Mia (ABBA) songs, followed by Swedish DJ Jonathan, who made the crowd rock the dance floor to Swedish music. Guest also enjoyed Swedish delicacies. Photos: Chhim Sreyneang and Film Noir Studio.Premium Event & Instant Photography since 2012.
6 ScandAsia.South East Asia • August 2016
News Brief
Sweden’s ambassador presents Cambodia business opportunities By Joakim Persson
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he Swedish-Thai business community was given a rare oppor tunity to be briefed on the investment climate in Cambodia, courtesy of departing Ambassador of Sweden to Cambodia, Ms Anna Maj Hultgård. The special seminar : ”Doing Business i Cambodia: Oppor tunities & Challenges” was hosted by and held at the Embassy of Sweden, Bangkok on 23 May, including among others members of the Thai-Swedish Chamber of Commerce. Ambassador Hultgård began her presentation by saying that she wished to give a balance and up-to-date image of Cambodia in substance and perception. “I saw how much Cambodia had moved, and the connections we have and tremendous access to ministers etc., and thought we should do more on the business and trade side.” Aid will soon be phased out, with some donor countries having already left the country, informed the ambassador and continued: “The image of Cambodia is about war, the Khmer Rouge, which is part of its modern history. But for us living there and seeing the tremendous growth, I saw a mismatch about the image of this country.” “It’s a very open country. What happens in Cambodia is out there. All UN organisations are there, and the reporting is open. I highlight this as a positive aspect; even the smallest abuses taking places is all reported. All Human Rights bodies are there, being very critical and very active. This in a way also contributes to one image, that is at least partly true, but sometimes give and unbalance and unfair image.” Some chambers of commerce surveys show a perception that may not be the updated one, she said. “The image works a bit against, but it is not really corresponding to what is there today.” Then she pointed to some indicators for the country: the hospitality industry has been booming in Angkor Wat, but also moving on to the coast; shopping centres, being new in a commercial context, there are in total twenty new to come on to the market; and that Cambodia has a very young and vibrant generation. “The youth is one of the great potentials. The demographics data continues to accommodate economic transformation; with strong increase in the available work force.” “I think there is great potential, but also point to some challengers that can be overcome. Looking at macroeconomics, the ambassador pointed to that the country ranks among the most rapidly growing economies in the world with a growth at about 7 per cent per year. And there are reduced poverty and income disparities, where poverty has fallen from 50% in 2004 to 18% today. “In some aspects Cambodia is where Thailand was 15 years ago, but Cambodia can also leapfrog on many aspects. Its technology sector is huge!” Garments and construction sector are the main engines of growth and remain resilient despite global slowdown.
Manufacturing, constr uction, assembly, agribusiness and food processing are others. “Cambodia’s labour standards are somewhere in the middle. There are other issues, such as transport to and from the factories.” In response to CSR questions from the audicne the ambassador said that the Swedish embassy is working very actively with companies on CSR and hat Swedish companies should be able operate in difficult markets as well. “Every factory is being monitored by the International Labour Organisation.” The ambassador described the countr y’s government as business-friendly. “The investment schemes are very liberal. Ease of doing business ranking is moving up. Mostly there are too few rules and you might lose out a bit on unpredictability.” “It takes a bit too long still to set up a company,” the ambassador thought. There is sometimes no legislation, such as for the construction sector, though the country is aware of that being an issue. Their new Industrial Policy has clearly expressed what needs to be in place in
Cambodia concerning infrastructure, connectivity, productivity, and skills & SMEs. “Part of the government’s plan and what we also see is needed is to move up the value chain and having the capability to do the processing, and to move up to the higher end in the garment sector.” Reasons to invest there she highlighted: competitive labour force; preferential market access to EU and the U.S; its geographic location: in the heart of SEA; low taxes; and the quality of life. Cambodia has “extremely liberal investment rules”. Only on land there are restrictions but foreigners can own factories and buildings. Land lease can be up to 99 years long. There are also no limitations on bringing in foreign workers. Also repatriation of profits is not restricted. As for challenges these are: corruption; weak institutions and implementation, high energy costs, infrastructure still being under development, skills gap, and a deteriorating political context. Tensions are expected to increase in the run up to the elections in 2017 and 2018, with polarisation in politics and society. August 2016 • ScandAsia.South East Asia 7
News Brief
Amb Charlotte Laursen inaugurates Viedam Mould and Research manufacturing
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iedam Mould and Research is the brand new, grand-scale, modern technology & total solution tool manufacturing company, located in Saigon High tech park, Ho Chi Minh City in Vietnam that opened on 26 May 2016. Denmark’s Ambassador toVietnam, Charlotte Laursen, participated in the opening. This new modern and inventive facilities of VMR can be seen as a visual result of the transformation of the Danish Vietnamese relationship over the years - moving from aid to trade and towards and a comprehensive partnership, writes the Danish embassy. Located in the hear t of HCMC the joint venture between Vietnamese partner Anlap and
Danish company BEEF was present in Vietnam for more than 10 years through Danish development assistance, B2B program. Today the Company has over 150 skilled employees with two factories providing high quality molds for domestics and overseas market. VMR is a collaboration between the best of two worlds; Danish ingenuity and Vietnamese exper tise within the field of toolmaking and production! Together with its partner Viedam VMR can supply the customer with everything from new part ideas, designs, advanced tooling, QC and verification.
EU funds Swedish transparency effort in Cambodia
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n 23 June 2016 Sweden and EU signed a three-year agreement through which the EU will provide 7 Million Euro to Sweden for targeted capacity building. Sweden will co-finance the program with about 3.3 million Euro. The Par tnership for Accountability and Transparency (PAT) program aims at strengthening the priority areas of Cambodia’s PFM reform: revenue mobilization, economic statistics, external audit, budget transparency, external oversight through the Parliament and anti-corruption. Partnership is a key word in this program.To a large extent, implementation takes place through institutional cooperation between Swedish government agencies and their Cambodian counterparts, which also provide the foundation for broader and deeper relations between Sweden and Cambodia. However, the most important type of partnership is that between Cambodian actors and organizations involved in the program: the National Audit Authority, the General Department of Taxation, the National Institute of Statistics, the Parliamentary Institute of Cambodia and Transparency International Cambodia. 8 ScandAsia.South East Asia • August 2016
Danish happiness presentation in Malaysia
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hat makes a nation happy? To foster debate about the relationship b e t we e n s o c i e t y a n d h u m a n wellbeing, the CEO of the Happiness Research Institute in Copenhagen, Mr. Meik Wiking visited Kuala Lumpur on 2-3 June as part his Southeast Asia tour. In collaboration with the National Institute of Public Administration (INTAN), the Embassy of Denmark Kuala Lumpur proudly hosted a public event on 2 June, where Mr Wiking gave a presentation on what makes Danes among the happiest people in the world, and engaged in a debate about the relationship between society and wellbeing, and how to measure happiness. Achieving and measuring happiness is of growing interest in Malaysia where the Economic Planning Unit (EPU) in the Prime Minister’s Department has introduced a Malaysian Well-
being Index. To give the Malaysian perspective on the topic of measuring happiness, the Director of Macroeconomics at EPU, Ms. Zakiah Jaafar presented the results of EPU’s work with this index. Mr. Wiking’s visit to Malaysia is part of a joint effort among the Danish embassies in Bangkok, Singapore and Kuala Lumpur.
News Brief
Dag Juhlin-Dannfelt takes over Sweden’s Malaysia mission
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he next Swedish Ambassador appointed to Malaysia is announced! The Swedish government has appointed Mr Dag Juhlin-Dannfelt as the new Swedish Ambassador to Kuala Lumpur. Juhlin-Dannfelt is currently Sweden’s ambassador in Riyadh, Saudi Arabia. He has previously ser ved at among other s, the Swedish embassies in Teheran, Tel Aviv and Islamabad, and as deputy director of the Foreign Ministry’s Middle East and Nor th Africa Department. He will commence his role as ambassador in Kuala Lumpur on 1 September 2016.
Sweden’s new Asia strategy confirmed
Swe Ambassador’s Cambodia posting ended
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n early July 2016 Ambassador Anna Maj Hultgård’s posting as Sweden’s Ambassador to Phnom Penh came to an end. During her week of farewell the Ambassador met with Prime Minister Hun Sen, President of the National Assembly Heng Samrin, Foreign Minister Prak Sokhonn, minister s, diplomatic missions, opposition par ty leader, civil society partners, colleagues and friends to Sweden. “Ambassador Anna Maj Hultgård at the Embassy! We would
like to thank you for these great three years of your excellent work in Cambodia. We wish you all the ver y best! Thank you for always helping those in needs and for always being there to do a good deed. People like you are a few and far between. Many blessings on your life’s journey. From all of us at the Embassy,” wrote Ms. Sambath Lao, Commercial and Communications Officer at the embassy’s Facebook page.
INTERNATIONAL BOARDING SCHOOL OF SWEDEN
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n 22 June Sweden adopted its new strategy for regional development cooperation in sub-Saharan Africa and Asia and the Pacific Region for the period 2016–2021. Regional development cooperation in Asia and the Pacific Region will focus on strengthening regional actors and states to take greater responsibility concerning the environment and climate , human rights, democracy and gender equality. The focus is to be on cross-border challenges, where solutions can best be sought in regional cooperation. “We focus regional development assistance in Asia and the Pacific Region to the places in the region facing the greatest challenges – in
the human rights area and with regard to the effects of climate change and environmental damage,” says Minister for International Development Cooperation and Climate Isabella Lövin. Asia and the Pacific Region will be hardest hit by climate change. The effects are particularly evident for small island states in the Pacific Ocean. “We now have the opportunity to contribute to strengthened regional cooperation on adaptation, renewable ener gy and other matters.” The new regional strategy amounts to SEK 300 million per year. In total, the strategy encompasses SEK 1800 million for the strategy period.
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August 2016 • ScandAsia.South East Asia 9
Swedish Ambassador
on Cambodia’s potential By Joakim Persson
‘‘I
will miss Cambodia a lot; there is something with Cambodia that gets to you. So, definitely, I will try to return and visit once a year or so. It might be very frustrating at times but the country and its people are fantastic!” Swedish Ambassador to Cambodia, Anna-Maj Hultgård, concluded as she was about to end her stint there. She returned to the headquarters of Sweden’s Ministry of Foreign Affairs this summer. Having visited nearly all corners of Cambodia, the ambassador has amassed many insights that she gets to share with ScandAsia’s readers at this junction in her diplomatic career. She encourages Swedes who are already in the region or are passing through to give Cambodia a chance: “Go and visit and get an updated image of what Cambodia is, and see the opportunities. Once you are there you’ll get the impression of a forward-looking society.There are challenges, in terms of for example wide-spread corruption. But there are opportunities not to miss out on, especially for businesses already being in the region.” She made this statement at a Business Sweden seminar in Bangkok and has also been to present in Singapore and on a road show to Sweden, along with the other ambassadors based in Asean. “It’s not always Cambodia itself that will draw the attention but by being part of the Asean market, with its 600+ million people, makes a difference,” believes Anna-Maj. “My work has been focused on making Cambodia more known, to provide a more upto-date, balanced view that is more about what
Cambodia represents today. It’s still early days but I think it’s coming, slowly.” The preconception of this as still being a war-torn country she thinks does not match with reality. “It’s also visible that it’s not only about urban development – people are getting better livelihoods in the countryside as well, which I think is promising.” “We are happy to assist from the embassy and Business Sweden is willing to support.” “And EuroCham Cambodia has in the last two years been very active and we work closely with them. That’s also a natural partner in support of and in collaboration on business and investment locally in Cambodia,” says the ambassador. The organisation handling foreign investment is CDC – The Council for the Development of Cambodia. “Within CDC a major, industrial plan has been put forward that has a long-term strategic goal and where they also point to certain sectors. They have identified obstacles to further growth that are very clearly spelled out, and it has been given the highest priority for all ministries to address those.” There is a willingness to do so, on a political level and within the agencies, but it still takes some time to implement and take the necessary steps. All institutions in Cambodia are still very bureaucratic, concludes Anna-Maj. There is also an ongoing private-public business forum dialogue, where, among others, EuroCham has put forward very clear recommendations. “From the embassy we are very active on
10 ScandAsia.South East Asia • August 2016
issues that might also be challenging for companies, concerning corruption and human rights issues. That is also in support of business to be present also in sometimes challenging markets.” “Cambodia has been relying on aid to a large extent, but also been seeing immense economic growth. Even if from a very low level Cambodia is one of the top ten countries in terms of fastest growing economies in the world!” All the institutions and the government within Cambodia are working to support business and investment. They have also been quite successful with two trade ministers in a row hand-picked from business sector – who know business and do not have the bureaucratic approach.” “From what I have seen, which is quite impressive, is that there is strong support and awareness from the government about the need to attract business and investment.” “I also like is that Cambodia is a very open and international; they look with curiosity towards everything foreign. There is an urge to get more brands in, and you can see it on policy level as well; an acknowledgement that Cambodia is a small market. So it’s important to have an exportdriven economy and be outward-looking. They need to be open, so trade and investment rules and regimes are very liberal, and I don’t think they will ever turn into a protectionist society.” During her posting in Phom Penh Anna Maj has been able to utilise Sweden’s established and strong connections in the country. “I have focused on really broadening and using also the really excellent network and relations we have, given the long-term, development
I am one of few female ambassadors, and also given the priority in general Sweden puts into this topic, combined with the interest from Cambodians on all aspects of life to learn more and interact on gender and gender equality issues. And that affects or influence in many work areas where we try to have a gender equality perspective.
cooperation – and build on that and to increase the focus on both trade and investment but not least making Sweden more known, also in terms of cultural exchange and participation and through visibility to what activities we are doing at the embassy.” The ambassador says she has tried to be smart by using social media, and been successful in reaching young Cambodians well, who are “very apt and keen on social media”. The embassy has been active in book and education fairs, and in relation to the ongoing development suppor t from Sweden, where humanitarian efforts have gradually given way to long-term cooperation, since Sweden’s aid to Cambodia began in 1979. The Swedish International Development Cooperation Agency (Sida) is currently running the co-operational results strategy (20142018), aiming to: improve the conditions for democratic development in Cambodia; improve the opportunities for people living in poverty to contribute to and benefit from economic growth; and increase resilience to climate change. Cambodia’s steady growth combined with the transition from a post-conflict to a more stable situation, has led to improvements for Cambodia’s people. A large share of the population, however, still live just above the poverty line and are still very vulnerable to any economic, ecological or climate changes, Sida evaluates. “To be fair, Cambodia is seeing tremendous development in terms of addressing poverty. And we are a bit surprised that the economic growth is still relatively inclusive, even though you can just
by going around in Pnom Phen still see quite huge differences,” comments Anna Maj. “Just during the last ten years the poverty rate has come down from almost 50 to 17 per cent, which is a very good. Also in addressing all the Millennium Goals the country has been very successful. But on the political side, all the democratic institutions are there but they are weak, and it’s been the same party in power and also the same prime minister for thirty years.” The governing party holds much of the power, putting opposition parties in a vulnerable position. Poor people’s rights are strongly limited. Sida is working to distribute power across local levels and to strengthen the work of non-governmental organizations (NGOs) at grass-roots level. Through the work of suppor ting NGOs, Sida is promoting for instance legal advice, observations and documentation of human rights violations, anticorruption and the development of a free press. Sida supports the democratic processes by working on a broad level to suppor t public administration reforms as well as public participation for increased democracy. By supporting the government’s programme for decentralization, channelled through the UN’s Development Programme, publicly-elected local authorities in rural areas have been established, leading to greater self-determination. “It’s about meeting and supporting both the supply and the demand side, which I think is the successful approach. I saw that around the last elections people voiced their concerns and also were very clear on their expectations much more
than before and I think that our support has been contributing to that. And now it’s important that this momentum is not lost when political and civil society space is a bit more questioned,” says the ambassador. In one initiative supported by UNESCO and the Embassy of Sweden, Cambodia’s Women’s Media Centre (WMC) has been part of a group, involving more than 15 civil society organizations, academia and ministries, at the forefront of efforts concerning access to information. Gender equality is one area where Anna Maj believes has been able to make a difference: “I am one of few female ambassadors, and also given the priority in general Sweden puts into this topic, combined with the interest from Cambodians on all aspects of life to learn more and interact on gender and gender equality issues. And that affects or influence in many work areas where we try to have a gender equality perspective.” Within education Sida’s long-term support has contributed to 95 per cent of the country’s children starting school today. However, Only 65 per cent of the women are able to read and write, and only a few of the children continue to higher education, which is a large problem. Sweden builds further on the trust it has built up with key stakeholders through its long-term commitment in the primary school sector in order to gradually increase the focus on education geared to the needs of the labour market, thus contributing to increased employment. Cambodia’s biggest potential the ambassador sees in its young population. “The demographic factor talks to Cambodia’s advantage; more than 65 per cent are under 30 years old, and they are more educated than previous generations. When I meet them I notice a great potential. Cambodia is now moving up to become a lower-middle income country soon, but I think the potential is still that it’s competitive in terms of labour costs, though still there is work to be done on the skills side.”
August 2016 • ScandAsia.South East Asia 11
NBCP and Apples & Spears supports Asean market ent By Joakim Persson
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ordic Business Council Philippines (NBCP) is a Manila-based trade & investment and business support organization between the Nordic and Baltic countries and the
Philippines. Apples & Spears is a Singapore-based market entry consultancy that suppor ts Scandinavian start-ups and SMEs in exploring opportunities to provide their products and/or services to the Southeast Asian markets. NBCP and Apples & Spears have partnered
up in 2016 to strengthen their regional presence, and to provide broader range of in-depth market knowledge for the clients of the two businesses. The two have found what they believe is the perfect match. “We are ver y happy to have found the right partner in the Philippines. Nordic Business Council Philippines with their solid local market knowledge, extensive network and invaluable connections was the highest on our partner wish list,” says Sandra Appelqvist, co-founder of Apples & Spears.
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”Thanks to the partnership, we are better positioned to reach out to potential clients, but we can provide a wider geographical range of services to our existing clients. Also, our way of working and objectives are well aligned, and as we are both small organizations, so it makes sense to craft partnerships,” says NBCP Executive Director Joona Selin. This partnership introduces a new channel par tner for NBCP’s market entr y consulting services. “Asean [the Association of Southeast Asian Nations] integration fur ther stresses the importance of having a regional approach to Southeast Asia. While our focus is on the Philippines, the partnership with Apples & Spears adds a key element to our regional network, enabling us to serve our members and clients even better.” Commenting further on what they foresee with this new co-operation Apples & Spears say: “Our partnership with NCBP is part of our strategy to build a strong local partner network with expertise in the region. Since many of the companies we are talking to have a regional perspective on their market entry strategy, it is only natural for us to ensure deeper cooperation and relationships in the most important markets. The Philippines is one of them. The goal with our partnership with NCBP is to take on shared projects, but also to be able to refer clients to each other.” “For our clients, who often start their regional market entr y with Singapore as a hub, the Philippines is another intriguing growth market,” explains Apples & Spears co‐founder Agneta Spjuth. “Most companies planning a market entry in Southeast Asia have a long-term regional agenda, which we want to facilitate by building up a strong partner network within Asean,” says Sandra Appelqvist. Apples & Spears are in ongoing dialogues to broaden their network in the region. “When we talk about partners, we also include other types of competencies than we ourselves or partners, like NBCP, can provide. Our network also consists of local companies and consultants within HR/recruitment, cultural training, sales, data capture, accounting and administration etc. It is a constant process to organically grow our network of contacts and partners.” Asean, it should be added, can be seen as one single market but is also the umbrella name for many, very diverse, country markets including those in Southeast Asia. Apples & Spears describes their approach:
s synergy ntrance “Southeast Asia is not a homogeneous market but have a variety of opportunities and challenges, depending on which country we’re looking at. For us, the most important starting point is to understand how our client’s business, business model, current markets, offering and strategy looks like and based on those specific circumstances drill deeper into relevant markets to identify oppor tunities and seek out market gaps. If a market is big, with high GDP growth and is called an emerging market does not automatically mean that it is a suitable entry market for all clients.” Their clients, since the start in November 2014, are from several different industries such as Medtech, Edutech, Healthcare and Cleantech. “All these industries seek innovations and ser vices to better suppor t the region’s long term and sustainable growth from several angles. Southeast Asia is transforming rapidly and that process demands smart solutions and ideas both from inside and outside the region. Our aim is to continue to work with those companies that can really bring added value to the market and make a difference.” Apples & Spears’ start was based on a study that they conducted together with 30 Scandinavian SMEs already established in the region and where they identified the main challenges these were facing when starting up their ventures here. “The study clearly showed in what areas these companies would have benefited from having more support during their market entry process, areas in which Apples & Spears together with our local network could facilitate and support.” “Southeast Asia is a growth region with several emerging markets in need of creative and innovative products and services to help the region build a sustainable future. In this sense, Scandinavian companies have a lot to offer, a fact that was another driver when establishing our business.” NBCP’s Joona Selin first met the Swedish consultancy duo late 2014 in connection to a SBAS luncheon in Singapore where he held a talk about business opportunities in the Philippines. “With this par tnership, we are targeting Nordic SMEs who need external assistance in finding business par tners: clients, agents, distributors, suppliers, or in studying the market opportunities in the Philippines.These companies might be present in the region, but not necessary in the Philippines yet. We are not limited to par ticular sectors, but most of our work has been in the ICT, healthcare & pharmaceuticals, and industrial equipment sectors - we are in a strong position to serve Nordic companies in these industries.”
As for the strongest indicators for business potential in and with Philippines Mr Selin highlights: “From the macro view the 6-7% annual GDP growth and the ongoing real estate construction and infrastructure development boom provide a strong foundation for business opportunities across a number of sectors and throughout the value chain. From the micro perspective this means new companies and brands flocking in, and new stores and restaurants opening shop. It means cranes and construction sites all over the place. In short - it’s an extremely dynamic environment where you sense growth and opportunity around every corner.” Philippines can function as a hub to the region or destination for outsourcing – either as service or delivery center or as a production hub. “Major Nordic companies such as Nokia, Grundfos, NNIT, and Maersk, but also SMEs are running global in-house operations in HR, finance & accounting, software development and IT here. For third-par ty outsourcing provider Transcom, the Philippines is their largest country
of operation with ca. 10,000 employees.“ “As for manufacturing operations for the expor t market, the Philippines houses Nordic multinationals of the likes of Sonion (microacoustics) and Swedish Match (lighters), while also SMEs such as the SAWO sauna factory and Christmas decor and lighting factory Tema Design have found their homes here.” SMEs are the type of businesses Apples & Spears will focus on as they continue approaching Scandinavian companies that they think should be present in Southeast Asia based on identifying interesting products or services that these offer. “The ambition is also to be more present in Scandinavia during this coming autumn to meet clients and potential clients as well as broaden our network at home. We also actively work to spread information and knowledge about Southeast Asia through our blog and social media. By sharing inter views with company leaders, experts and specialists in the region we hope to encourage SMEs who are starting their journey towards this region – to take the leap.”
August 2016 • ScandAsia.South East Asia 13
Sweden-Malaysia Innovation Days 2015
Inaugural Sweden-Southeast Asia
Business Summit announced By Joakim Persson
I
n the spring of 2015 Sweden’s Southeast Asiabased ambassadors jointly, and in partnership with Business Sweden, held seminars back in the home country in order to promote the various markets in ”their” region as being ripe markets for increased Swedish export and investment. As an additional way to strengthen the Team Sweden efforts and as a platform for engagement, the inaugural ‘Sweden-Southeast Asia Business Summit’ is now officially confirmed. With the view that Southeast Asia is the world’s new growth
Håkan Jevrell
engine offering, as in the words of Sweden’s ambassador to Singapore, ”fantastic opportunities for Swedish companies to grow in a number of areas”, this summit will take place on 21-22 September in Singapore, held at Parkroyal on Pickering hotel. During two days company representatives as well as various business associations and official representatives of Business Sweden and the various embassies will gather to share best practices on how to do business in this dynamic part of the world. All Swedish businesses in Sweden and the Southeast Asia region are welcomed to attend this summit, hosted by the Embassy of Sweden in Singapore, Business Sweden and the Swedish Business Association of Singapore (SBAS). ”Southeast Asia is the world’s new growth engine,” begins Sweden’s ambassador to Singapore, Håkan Jevrell, when explaining the reasons behind this new initiative to ScandAsia. Southeast Asia is home to more than 650 million people with a rapidly growing middle class. Despite slowing economic growth in China, the Southeast Asian region is estimated to grow at an average of 5 –6 percent annually in the coming decade, making it the growth engine of the world. The newly established ASEAN Economic Community is likely to enhance growth further. ”Southeast Asia continues to show strong growth rates despite the slowdown in the world economy. Simultaneously, the interest for the region is growing, as more and more companies come to realize that Asia represents more than just China and India,” says the ambassador in reply
14 ScandAsia.South East Asia • August 2016
to why the time is ripe for this even now. ”There is also a need to increase knowledge about this region of the Swedish decision-makers, both in politics and business. The purpose of the Sweden-Southeast Asia Business Summit, which we hope will become a regular event, is to disseminate information on Southeast Asia and the rapid development taking place here as well as a forum for exchange between Swedish and Southeast Asian business representatives who are active in the region. Sweden-Southeast Asia Business Summit is an initiative run jointly by ’Team Sweden South-East Asia’, which means all the embassies, Business Sweden offices and chambers of commerce in the various countries in the region.” To be competitive in this evolving global market, it is crucial for any CEO or board member to have a clear understanding of the developments in the region.The Sweden–Southeast Asia Business Summit provides an excellent opportunity to get insights from industry peers and policy experts and to meet with potential partners. Sharing of best practices on how to do business in this dynamic part of the world will be a key ingredient. ”I meet many business representatives in my role as ambassador and I often hear that one lacks a forum for experience-sharing and cross-sector dialogue between business representatives. They of course, have a lot to learn from each other. Via ’Sweden-Southeast Asia Business Summit’ Swedish companies will have the oppor tunity to share their experiences. Alongside a range of
Guests at SBAS Ball 2015 in Singapore inspirational speakers and panels there will be plenty of time for discussion and networking,” replies Håkan Jevrell. The summit will feature key political and business representatives from Sweden, including Mr Mikael Damberg, Minister for Enterprise and Innovation; Mrs. Ylva Berg, CEO, Business Sweden - the Swedish Trade and Invest Council; Mr Marcus Wallenberg, Chairman of the Board, SEB, SAAB Group & Foundation Asset Management; Mr. Magnus Böcker, Executive Chairman of Blibros and former CEO of Singapore Exchange and many more.
“We have chosen a broad focus for this first Sweden-Southeast Asia Business Summit, not least because of the amazing breadth that Swedish companies in the region represents. In Singapore alone there are 250 Swedish companies presents, many with regional headquarters, and ranging from small niche consulting firms to banks and manufacturing companies,” the ambassador says about the summit. Around 600 Swedish companies across business sector s ranging from ser vice to manufacturing and retail are present in Southeast Asia.
For outreach the ambassador explains that this initiative is run jointly by ‘Team Sweden SouthEast Asia’, which means all the embassies, Business Sweden offices and chambers of commerce located in region’s various countries in the region. “We all have an important role to play in reaching out to businesses with presence there and ensure good attendance.We are very pleased with the strong interest we’ve seen by businesses to participate as partners. Our main sponsors are Carl Bennet AB, Ericsson, SAAB, Scania, SEB and Volvo. Singapore Airlines is the official airline of the event. Other sponsors are Alfa Laval, Billerud Korsnäs, IKEA, Nordea, SKF and Spotify.” Team Sweden is an umbrella made up of public authorities, government agencies and companies that all work to promote Swedish exports abroad. At home, Team Sweden is led by the Ministry of Enterprise and Innovation. Abroad, a local Team Sweden led by the Swedish Ambassador will assist companies around the world. Through Team Sweden the Swedish Government can provide coordinated and effective export support to Swedish companies that want to set up operations abroad, making entry into the export market clear and simple. The export support includes advisory services, financing, marketing and the long-term promotion of Sweden. Learn more about the Summit and register your interest today at www.sweden-sea.com.
Farewell and welcoming
at Carlsberg Malaysia
C
arlsberg Malaysia arranged a cocktail reception in Kuala Lumpur to welcome Lars Lehmann, taking over the role as Managing Director of Carlsberg Malaysia on 1 July 2016, and to bid adieu to outgoing Managing Director, Henrik Juel Andersen. “I am entrusted to take charge of the Malaysia and Singapore operations and oversee our investment in the Lion Brewery (Ceylon) Ltd. in Sri Lanka. I have also been appointed as Chairman of Carlsberg Singapore Pte. Ltd, am on the Board of Carlsberg Marketing Sdn. Bhd., a wholly owned subsidiary of Carlsberg Brewery Malaysia Berhad, and Maybev Pte. Ltd., a 50% owned subsidiary by Carlsberg Singapore Pte. Ltd,” said Mr Lehmann. Prior to this appointment, he was the Regional CEO for Western Europe Challenger Markets overseeing 11 European markets Germany, Italy, Greece, Bulgaria, Serbia, Croatia, Portugal, Estonia, Latvia, Lithuania and Carlsberg ExLiD (Export, License and Duty Free). During 13 years with Carlsberg Groupv so far he has had various senior positions within sales, marketing and general management and could successfully delivered top-line, bottom-line and market share growth. He started out in the Group Sales & Marketing, responsible for commercial development among others working with Asia and Malaysia/Singapore. The Carlsberg Malaysia Group was off to an impressive start this year with a strong double-digit growth in profits for the first quarter ended March 31st 2016. “On behalf of the Management and employees of the Carlsberg Malaysia Group, I would like to take this opportunity to extend my heartfelt thanks to the former Managing Director Mr. Henrik Juel Andersen for his admirable leadership and invaluable contribution to the Company’s results. I wish him every success in his new role as the Managing Director of Lao Brewery Company Ltd.” August 2016 • ScandAsia.South East Asia 15
The moment to tap the Philippine furniture market is now By Frederik Guy Hoff Sonne
T
h e P h i l i p p i n e e c o n o my i s a thundering train and it is about time for the Nordic design and furniture companies to get on board, Joni Koro, project manager at Nordic Business Council Philippines and founder of GRØN Design Solutions, says. “The sheer amount of new office, retail and residential developments is staggering. Although I have lived in Malaysia, Mainland China and Taiwan in the past, this is something I haven’t seen anywhere before”, the Finnish Manila-resident says. With an annual growth of around 6 percent, the island state is one of the world’s fastest growing economies. The construction boom is huge and in 2015 Metro Manila recorded the highest premium office space take-up in history on 459,000 square meters. Similar take-up of premium office space is expected also for 2016. Naturally this creates a great demand for furniture and design companies to furnish the office spaces. A lot of multinational offices are opening in Manila, and they are looking for sustainable quality furniture and are ready to pay the price for it, so the time to tap into the market is now, Joni Koro tells.
But why now? “Well if you ask me, actually we’re already late. It’s like when talking about China, the best time to get into the market was 5 years ago, but the second best is now and this also goes for the Philippines”, the Finnish entrepreneur says. “Unfortunately Philippines has really been flying under the radar in the Nordic region.There’s a huge potential here, especially since the last six years have been the best in the Philippine history.”
Battling the US and European design
Joni Koro, Finnish entrepreneur and project manager at NBCP, urges Scandinavian furniture brands to enter the Philippine market. 16 ScandAsia.South East Asia • August 2016
When Joni Koro says that the Scandinavian engagement on the furniture market is already late, it’s partly because more American and some European furniture companies have already jumped the gun and invested heavily in the Philippine market. As the market is now, American contract furniture companies like Steelcase are the biggest competitors on the market for any Scandinavian quality offering, but more European companies has penetrated or are about to penetrate the furniture market as well. Another reason why it is a good idea for
Joni Koro in the Framery’s O booth – a single person phone booth, he distributes in the Philippines as a demo unit. the Scandinavians to tap into the market is that the name of the cold north is already hot in the Philippines. “The concept of Scandinavian design and quality is fairly well known in the Philippines, but the offering is mostly limited to local mock-ups that rarely live up to the Nordic standards”, Joni Koro says.
Why is Scandinavia and the Philippines a match If you ask Joni Koro there are several reasons why Scandinavian furniture and the Filipino market should be a successful match. The most significant reason is a rising interest for green awareness and thereby a demand for sustainable and environmentally friendly furniture, especially at the multinational offices, which represents the most likely buyers for Scandinavian furniture. This demand fits like a glove with what Scandinavian furniture is famous for. “The green movement is definitely getting stronger in the Philippines. Looking at the new office building developers, more and more of them are applying for the US Green Building Council’s LEED cer tification for their new buildings, he says. “The certificate works like a seal of approval that your office is environmentally friendly and of course gives the company a good name and a chance to price the square meters higher in a country where electricity price is one of the highest in Asia,” says Joni Koro. The cer tifications have become highly popular. “I think out of the 80 upcoming high-end office buildings, roughly 30 have already applied for the certificate. These are the buildings the multinationals also want to be located in”. One way to achieve higher level in certification is choosing a green furniture supplier, as this will grant the company points when the application is rated and most Scandinavian furniture manufacturers have the green profile that grants these points. Another reason why Scandinavian furniture fits the Philippine market is the traditions of Scandinavian furniture. Joni Koro’s own enterprise, GRØN Design Solutions, is the local par tner for Denmark’s largest office furniture manufacturer, Duba-B8 as well as for Finland-based silent space manufacturer Framery acoustics. For Joni Koro these brands are good examples on what Nordic furniture has to offer in the Philippines. “Duba-B8 products are highly ergonomic
policy. But the new political situation shouldn’t be a challenges for the market, Joni Koro says: “Despite we have a new President in the country the fundamentals are there. The growth of the consumption-driven economy is further fed by expanding Business Process Outsourcing sector as well as Overseas Filipino Workers’ remittances, which last year were the third largest in the world, USD 26 billion. The Gross Domestic Product (GDP) is set to grow by 5 to 7 percent in the coming years. If Duterte does well with building the confidence towards foreign investors and can accelerate the infrastructure projects the country could grow up to 8 to 10 percent, so the economical situation is still fertile”.
Duba-B8 products are highly ergonomic which starts to be a hot topic also in Asia. In this regard Scandinavians are the world leaders.
The Scandinavian situation
which starts to be a hot topic also in Asia. In this regard Scandinavians are the world leaders,” Joni Koro explains. “At the moment, the demand for ergonomic, sustainable high-end furniture, that Nordic brands often represent still comes mostly from the multinational companies. But this is to change.” “Another ver y interesting product is a movable silent space from Finland. Framery silent spaces address the noise issues at open plan and activity based offices. This company is growing four-fold this year - the demand around the globe for their solutions is huge and we also see the potential and need here in the Philippines”.
Any challenges? As there might be many reasons and conditions to tap into the market now, there are on the counterpoint challenges to be aware of. “Unfortunately the local demand for highend sustainable office furniture is still fairly limited and we can talk about niche market here. The price matters,” Joni Koro admits. “Even though the Philippines is closer to the western cultures compared to many, or any, other Asian country, most of the local companies still rely on cheap Chinese furniture and on layout design suppor ting individual work in cubicles instead of collaboration and activity-based office environmentsw.” The Philippines elected a new president in May 2016. The new man in charge turned out to be Rodrigo Duterte, who is seen as a highly controversial figure in Western media, mainly because of his outspoken quotes on justice
When overviewing the state of Scandinavian design in the Philippines in general, one senses that there’s a taste for it. Some well-known brands are responding to that and have already entered scene. Popular companies like BoConcept and Hay have opened retail stores with help of local par tners. Republic of Fritz Hansen and some other household names can also be found in multi-brand design stores. Joni Koro does his fare share to open the market for Scandinavian furniture through NBCP and GRØN Solutions. “I want to bring authentic Nordic design and especially quality to the Philippines - first to the office market and soon after to the consumer market as well. I want to build a gateway for Nordic furniture and decor companies to enter the Philippine market”. Even though the Scandinavian design and furniture mark in the Philippines is still fairly unseen, things are developing, Joni Koro hopes. A big leap would be to get IKEA to the market, he says. “That would really create awareness of Scandinavia”.
Do you have any advice to give if one were to get into the Philippine market with Scandinavian design? “The demand for high-end products in the consumer market is strong, but if you want to play it safe and build the awareness of your brand slowly you should start with fast-moving items like decorations. If I should give any recommendations you should of course do you research as always, be committed to the market, and find a trustworthy local partner to work with to deal with retail restrictions.”
August 2016 • ScandAsia.South East Asia 17
News Brief
NBCP held a Renewable Energy Seminar
O
n 14 June, Nordic Business Council of the Philippines, NBCP, held a Renewable Energy Seminar at the New World Hotel to discuss the current outlook and future prospects of the sector in the country. Mr. Petri Haataja, Head of Energy Consulting of Pöyry provided an overview on the sector, followed by Mr. Knud Hedeager, COO of Alternergy; Mr. Leandro Legarda Leviste, Founder of Solar Philippines; Mr. Tor Stokke, Countr y Director of SN Power Philippines, who discussed recent developments and challenges in the wind, solar, and hydro power sector, respectively. Capping the presentations was Mr.Walter Wassmer, Senior Executive Vice President of BDO Unibank, who gave a primer on BDO’s financing process for RE projects. Mr. Haataja discussed the role of RE in alleviating some of the power issues of the countr y. He acknowledged the impor tance of the Feed-in-Tariff (FIT) system in increasing intermittent generation capacity. Mr. Haataja cited the case of Negros, where solar generation capacity has outpaced the region’s peak demand. He pointed out the opportunities in Mindanao, which he expects to be much like Luzon in terms of demand but will not be as reliant on coal-fired power plants. Mr. Hedeager provided a backdrop on the success of Alternergy’s Pililla Rizal Wind Farm project. Aside from providing clean energy, the 54MW wind farm has evolved into a tourist destination that averages 1,000 tourists a day. He
also disclosed that their company intends to put up a US$180 million 72MW wind project under Alternergy Sembrano Wind Corp. Further, Mr. Hedeager expressed Alternergy’s willingness to partner with local investors, confirming that they are in early talks with Lucio Tan’s LT Group. When asked about the FIT, Mr. Hedeager shared that the system has allowed RE projects to phase out diesel power producers, resulting in lower spot market prices for electricity. Meanwhile, Mr. Leviste gave a spirited presentation on the growing potential of the solar power sector and how RE can solve the power woes of the country. He stressed that the production of solar power has become less expensive than coal thanks to the development of new RE technologies. Moreover, he highlighted the generation capacity of large-scale solar farms can compete with coal power plants, if distribution utilities conduct competitive bidding for their power supply. Mr. Leviste also noted the growing number of conglomerates shifting to RE. Mr. Leviste recognized the importance of FIT to jumpstart the industry but he preferred incentivizing the Renewable Por tfolio Standards (RPS). RPS is a market driven policy that requires electricity suppliers to source an agreed por tion of their energy supply (in on-grid systems) from renewable sources. Mr. Stokke provided an overview on the current hydropower operations of SN Power. He also shared his views on the countr y’s
18 ScandAsia.South East Asia • August 2016
cumbersome process of getting a permit and issues on land acquisition and grid connection. Despite these challenges, he still finds the local RE market has become more competitive and the willingness of local banks to finance RE projects. In terms of FIT, Mr. Stokke was clear to communicate his dislike of the scheme. Delving into the funding side of RE,Mr.Wassmer emphasized on the continued commitment of BDO in the development of renewable energy in the country. He highlighted the bank’s current P33 billion outstanding investments in hydro, wind, solar, geothermal, and biomass projects across the country. However, Mr. Wassmer reminded that the bank is not a subject-matter expert in terms of RE and just takes cue from RE developers. As such, the bank uses profitability or eligibility for the FIT incentives scheme as a measuring stick for funding an RE project. At present, the Bank offers short-, medium-, and long-term funding either through syndicated or bilateral term loan. Following the presentations, an open forum was held in which the speakers further elaborated on the immense potential of renewable energy in the Philippines, par ticularly in Visayas and Mindanao. They commended the incoming administration’s pronouncement of increasing the competitiveness of the energy market. In terms of land use, the speakers had different views. The renewable energy seminar was done in partnership with BDO Unibank and Pöyry. Source: NBCP
August 2016 • ScandAsia.South East Asia 19