AmCham biz.hk May 2016

May 2016

FINANCIAL TECHNOLOGY BEYOND SHEER DATA SANJEEV CHATRATH

MANAGING DIRECTOR (ASIA) FINANCIAL & RISK THOMSON REUTERS

INDUSTRY FOCUS:

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May 2016

Contents

Vol 48 No 5

Publisher

Richard R Vuylsteke

Editor-in-Chief Kenny Lau

Managing Editor Leon Lee

Assistant Advertising Sales Manager Tom Chan

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COVER STORY

With millions of high-net-worth individuals in a market more digitally connected than any other part of the world, Asia remains an exciting region of economic development. Sanjeev Chatrath, Managing Director Asia for Financial & Risk at Thomson Reuters, explains how the rapid onset of “Big Data” and the adoption of analytics to create valuable insights are enabling fast and intelligent decision making – a recipe for a powerful driver of growth

AMCHAM NEWS AND VIEWS 04 Full Speed Ahead

biz.hk is a monthly magazine of news and views for management executives and members of the American Chamber of Commerce in Hong Kong.

Its contents are independent and do not necessarily reflect the views of officers, governors or members of the Chamber.

Advertising office 1904 Bank of America Tower 12 Harcourt Rd, Central, Hong Kong Tel: (852) 2530 6900 Fax: (852) 3753 1206 Email: amcham@amcham.org.hk Website: www.amcham.org.hk Printed by Ease Max Ltd 2A Sum Lung Industrial Building 11 Sun Yip St, Chai Wan, Hong Kong (Green Production Overseas Group) Designed by Overa Creative Tel: (852) 3596 8466 Email: ray.chau@overa.com.hk Website: www.overacreative.com ©The American Chamber of Commerce in Hong Kong, 2016 Library of Congress: LC 98-645652

The Competition Ordinance signifies an era of progressive policy targeting commercial behavior that “prevents, restricts or distorts competition.” As a matter of principle, it is long overdue, and competition is a critical component of driving a free and open economy forward. But enforcement should come in the context of the regional and global circumstances

06 New Business Contacts 15 executives join AmCham’s business network last month

07 New Member Spotlight Each issue, biz.hk highlights a recently joined AmCham member.

For this issue, we speak to Toby Mountjoy, Associate Director of Autism Partnership Hong Kong

64 Mark Your Calendar

COVER STORY 08 Financial Technology Beyond Sheer Data Despite a changing global landscape, Asia remains an exciting region of economic development in a market estimated to have some 4.7 million high-net-worth individuals and more digitally connected than in any other part of the world. Sanjeev Chatrath, Managing Director Asia for Financial & Risk at Thomson Reuters, explains how the rapid onset of “Big Data” and the adoption of analytics to create valuable insights are enabling fast and intelligent decision making – a recipe for a powerful driver of growth

Single copy price HK$50 Annual subscription HK$600/US$90

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18 EDUCATION Past chair of AmCham’s Education Affairs Group Frank Wong discusses how members of the Chamber can deliver an enduring impact on the community through a series of orientation programs linking local high school students with business leaders for a face-toface discussion on career development

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22 REAL ESTATE

COMMUNICATIONS & MARKETING

What are the implications of declining demand from Mainland Chinese companies, investors and tourists on Hong Kong’s commercial, retail and residential property markets? Denis Ma, JLL’s Head of Research for Hong Kong, talks about China’s current and future role in driving the local property market

ADVOCACY

14 The Drive for a Diverse Workforce

Storytelling is increasingly recognized as a leadership capability among CEOs, politicians and global brands in their journey to better connect, inform and engage with stakeholders.

Microsoft Asia’s Senior Director of Communications Andrew Pickup shares how stories can be told to have an impact

COMMUNICATIONS & MARKETING

26 Simple Stories Compellingly Told

The shortage of qualified personnel is a phenomenon that underpins a disconnect between education, labor, and population policies – and it will require a holistic approach by bringing aboard the private and public sectors to forge a long-term, multi-faceted plan in order to maintain a workforce critical to Hong Kong’s continued development

Storytelling predates the printed word, television, cinema and all forms of advertising. It is increasingly recognized as a leadership capability among CEOs, politicians, celebrities and global brands in their journey to better connect, inform and engage with stakeholders. Microsoft Asia’s Senior Director of Communications Andrew Pickup shares how human stories can be told to have an impact

EDUCATION

INDUSTRY FOCUS

18 In Pursuit of Talent Development Past chair of AmCham’s Education Affairs Group and former governor Frank Wong discusses how members of the Chamber can deliver an enduring impact on the community through a series of orientation programs linking local high school students with business leaders for a face-to-face discussion on career development

REAL ESTATE

22 China’s Impact on Hong Kong’s Property Market In a new era of slower Chinese economic growth, what are the implications of declining demand from Mainland Chinese companies, investors and tourists on Hong Kong’s commercial, retail and residential property markets? Denis Ma, JLL’s Head of Research for Hong Kong, talks about China’s current and future role in driving the local property market

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30 A School Orientation for Prospective Students and Parents As parents – local and expatriates alike – continue to seek international school places for their children in a city where supply can barely meet demand, it pays to learn about each of the schools, availability of places and whether they are a good fit given a particular curriculum, philosophy and vision. A number of selected high (secondary) schools offering a broad educational experience are highlighted American International School Canadian International School of Hong Kong Chinese International School Concordia International School Delia School of Canada English Schools Foundation Harrow International School Hong Kong Hong Kong Academy Hong Kong International School International Christian School International College Hong Kong Kellett School Nord Anglia International School Hong Kong Victoria Shanghai Academy Yew Chung International School

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Board of Governors Chairman Vice Chairman Treasurer

Walter Dias Steve Lackey Sara Yang Bosco

Executive Committee Evan Auyang, Sean Chiao, John (Jack) E Lange, Alan Turley, Jennifer Van Dale Governors Donald Austin, Owen Belman, Elaine Cheung, Diana David, Sean Ferguson, Robert Grieves, Matthew Hosford, Clara Ingen-Housz, Michael Klibaner, Simon Ogus, Seth Peterson, Anna-Marie Slot, Catherine Simmons, Eric Szweda, Patrick Wu, Lennard Yong Ex-Officio Governor President

Peter Levesque Richard R Vuylsteke

Chamber Committees Apparel & Footwear Ball China Business Communications & Marketing Corporate Social Responsibility Education Energy Entrepreneurs/SME Environment Financial Services Food & Beverage Hospitality & Tourism Human Resources Information & Communications Technology Insurance & Healthcare

Mark Green Sara Yang Bosco Diana David Devin Ehrig Lili Zheng Oliver Rust Pat-Nie Woo Virginia Wilson Rick Truscott Cynthia Chow Laurie Goldberg Jim C Taylor Steven Chan Veronica Sze Mark Kemper Peter Liu Benny Lee

Rebecca Harrison Hanif Kanji Gabriela Kennedy Intellectual Property Jenny Wong Chiann Bao Law Jessica Bartlett Joyce Wong Pharmaceutical Edward Farrelly Real Estate Robert Johnston Terrance Philips SelectUSA Lili Zheng Philip Cheng Senior Financial Forum Bianca Wong Senior HR Forum Ivan Strunin Taxation Barrett Bingley Trade & Investment Gavin Dow Transportation & Logistics Jennifer Parks Women of Influence Jennifer Wilson Michael Harrington Young Professionals

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biz.hk Editorial

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he Competition Ordinance – Hong Kong’s anti-trust, or anti-monopoly, law which came into effect in December of last year – signifies an era of progressive policy targeting commercial behavior that “prevents, restricts or distorts competition” in a fashion similar to that of other developed economies around the world. As a matter of principle, it is long overdue, and competition is a critical component of driving a free and open economy forward.

The new law applies to nearly every business sector across the board and is good for Hong Kong overall in the sense that consumers will have a larger “say” in terms of choices and prices in a full range of products and services. And the rules should be enforced in the context of the regional or global circumstances – and it can be a tricky proposition because the law is locally confined but MNCs operate largely in the intertwined world of global business.

Essentially, it is a balancing act between the application of competition principles and the feasibility of Hong Kong’s industries that are largely tied to the global or regional operating environment. Take Hong Kong’s international trading and logistics industry, and in particular the liner shipping sector as an example – their common practice of Vessel Sharing Agreements (VSAs) and Voluntary Discussion Agreements (VDAs) would be deemed “anti-competitive” and a “contravention” of the Competition Ordinance.

VSAs (agreements between carriers for joint operation of vessels similar to code-sharing of airlines) and VDAs (exchange and review of market data and forecasts among carriers) are considered necessary to accomplish connectivity,

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FULL SPEED AHEAD frequency and efficiency in a cost-effective and stable manner for the world of global trade. They are a form of providing supply in just the right amount by pooling the overall demand for a sweet-spot of driving commerce and reducing the carbon footprint simultaneously.

The shipping industry is known to have relatively high fixed and operating costs, but it is less commonly known for a very slim margin of profits – and sometimes even financial losses.

That’s because vessels in the liner shipping industry are required to sail a particular route whether or not there are a full load of cargo. The industry often depends on scale of economies in order to function properly and, more importantly, to keep services uninterruptedly – an enormous challenge in the highly volatile business environment of the past decade.

VSAs and VDAs are therefore crucial in allowing for operational sharing of slots on vessels and enabling carriers to provide fixed-day sailing on a regular schedule without subjecting charging rates to severe fluctuation.

And only by granting an exemption known as a Bock Exemption Order under the Competition Ordinance for VSAs can Hong Kong sustain the liner shipping industry.

While different jurisdictions have taken different approaches to the issue of VDAs because of its contentious nature, whether the Competition Commission decides to include VDAs in the block exemption is a decision which needs to take into account the industry as a whole. Block exemptions for VSAs and VDAs can

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be found in jurisdictions across the Pacific Rim, including Singapore which has recently extended an exemption to 2020.

The industry has evolved over time and transshipment now represents the largest source of business for the industry as a whole, however transshipment activities can be easily relocated. The decision on the exemption order must therefore include serious consideration of whether relocation of transshipment activities to other transshipment hubs is a potential consequence.

Without VSAs, it is highly likely that transshipment cargo through Hong Kong will move quickly to alternative ports, thereby reducing the number of vessel calls in local ports and possibly replacing Hong Kong’s role as a shipping and transshipment hub to a large extent. This means Hong Kong would no longer be able to compete in one of the pillar industries – a pillar industry which accounts for nearly a quarter of Hong Kong’s GDP and is directly linked to the livelihood of 88,000 local families.

An exemption order for VSAs is critical in enabling trade and is an urgent matter supporting Hong Kong’s status of being a world-class port and an international maritime logistics hub. It will enhance the overall economic efficiency without compromising competition, benefit customers simply because of more service options and greater carrier choices, and uphold the viability of an industry which has made Hong Kong so proud.

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New

Business Contacts The following people are new AmCham members: Adjuno Duncan Grewcock Chief Operating Officer - Asia Pacific Jamie Lu Senior Sourcing Product Manager

BALtrans International Moving Ltd

New World Development Company Limited Bastien Liveriou Tennis Director

Philip Morris Asia Limited

Andrew Ho Assistant General Manager

Richard Clemente Director, Illicit Trade Strategies & Prevention, Asia

BNY Mellon

Progress-U Limited

Faustina Chiu Head of Human Resources, Asia Pacific

Dell Computer Corporation Peng Yang General Manager & Managing Director, Dell Hong Kong & Macau

Deutsche Bank AG, Hong Kong Branch Michael Spencer Chief Economist and Head of Research, Asia Pacific

Hong Kong University of Science & Technology Kar Yan Tam Dean, School of Business and Management

InterContinental Hong Kong Claus Pedersen General Manager

Terrance Leung Managing Director, Hong Kong

Transamerica Life (Bermuda) Ltd. Marc Lieberman Chief Executive Officer

Turner International Asia Pacific Limited Phil Nelson Managing Director and Senior Vice President, Southeast Asia Pacific & North Asia

William E Connor & Associates Ltd Wayne Milano Managing Director - Apparel

Wyeth (Hong Kong) Holding Company Limited May Chung Country Business Manager

View our other members at: www.amcham.org.hk/memberlist

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New Member Spotlight

Toby Mountjoy Occupation: Associate Director, Autism Partnership Hong Kong Industry: Education Member since: March 2016

Why did you join AmCham Hong Kong?

We believe that AmCham can provide better opportunities for us to meet with different industry parties and we can be more connected with the local business community.

Can you tell us a bit about Autism Partnership?

AP Hong Kong opened in 1999. It is the first organization in Hong Kong to specialize in designing professional Applied Behavior Analysis (ABA) treatment services for children with Autism Spectrum Disorders (ASD).

With a team of over 60 experienced clinical psychologists and Board Certified Behavioural Analysts, we have helped thousands of families.

We also created the Autism Partnership Foundation (APF) as a charitable organization in 2007. APF provides free services to low income families and runs the only primary school in Hong Kong specifically for children with ASD. How can Applied Behavior Analysis treatments help?

Supported by 50 years of global research, ABA is the most widely recognized and scientifically proven treatment for ASD. Intensive and consistent ABA treatment can effectively improve autistic children’s challenging behaviors such as inattention, aggression, self-stimulation, sensory issues, rigidities and non-compliance.

Can you tell us more about the Aoi Pui School?

Aoi Pui School was established in 2007 and is the first school designed specifically for the needs of moderate to high functioning children with ASD in Hong Kong. It benefits students who may not be quite ready for a full mainstream placement by providing more individual planning to meet their educational, emotional and communication needs. Since 2007, we have in total 113 students studying here, 45 students returned to regular schools in Hong Kong, both local or international school.

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About how many children have some sort of autism in Hong Kong?

According to the Centers for Disease Control and Prevention, one in 68 children has been identified with ASD in the United States. The prevalence of ASD is high and ever-increasing. In Hong Kong, the Education Bureau announced that there are over 4,000 children diagnosed with ASD in 2013-14. The number has more than doubled within four years.

What are some common issues autistic children face in Hong Kong?

Due to limited funding most children with ASD cannot access early intensive ABA programs from a young age, which is the gold standard of treatment widely available in the USA. Many children here also have problems accessing good school placements that fit their ability level.

Can you please tell us the importance of AP having a presence in Hong Kong?

AP has offices all over the globe and these are often not planned. It usually begins from a group of families wanting us to consult to them from overseas. As the number of families grow it often makes sense for us to open offices in that place to provide more efficient and effective services. Hong Kong is our second biggest office.

What were some challenges faced by the organization and the school?

It was a challenge to go through the red tape and process of registering the school but our biggest problem has been the funding available for ABA. While widely funded in other countries, Hong Kong still provides no provision for ABA services. Our creation of the Foundation was one solution to overcome this challenge by raising money for those families that cannot afford it.

What are some things people or businesses can do to help?

Please like the APF Facebook page (facebook.com/APautism) so you can be aware of all the different fundraising activities that go on through the year. We love to partner with businesses and provide lots of great CSR opportunities.

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COVER STORY

Sanjeev Chatrath

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Financial Technology Beyond Sheer Data Despite a changing global landscape, Asia remains an exciting region of economic development. In a market estimated to have some 4.7 million high-net-worth individuals and more digitally connected than in any other part of the world, opportunities to leverage “Big Data” to drive growth are clear and present.

In an interview with biz.hk, Sanjeev Chatrath, Managing Director Asia for Financial & Risk at Thomson Reuters, explains how the rapid onset of “Big Data” and the adoption of analytics to create valuable insights are enabling fast and intelligent decision making – a recipe for a powerful driver of growth Text by Kenny Lau Interview by Wilson Lau

Photos: Silver Image

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T

he speed of business development in the age of advanced information technology is a revolution which has captured the world above and beyond any imagination and on a scale far greater than that of the Industrial Revolution more than a century and a half ago.

Today, quintillion bytes of data are created daily, and the rapid onset of “Big Data” has allowed for the adoption of analytics to create valuable insights and to facilitate fast, intelligent decision-making.

This, in fact, will become the single most significant source of market growth and business opportunity if such enormous amounts of information are leveraged in the right way. The phenomenon is particularly pertinent here in Asia where three of the world’s top four economies, based on parity of purchasing power, are located.

The fact that a rising class of Asian consumers continues to grow amid rapid wealth creation is a story of tremendous business potential.

In other words, the cyclical trends driving growth in both the financial and corporate sectors mean that Asia remains the most exciting region of economic development and represents an era of “new normal.” The question, from a commercial perspective, is whether businesses are adequately equipped, enabled and well-informed to tap into this unique and diverse market.

“The secular trends in Asia are still very, very strong.

You’ve got greater technology adoption and more millionaires in Asia than in any other region, and you’ve got demographics that work extremely favorably for Asia,” says Sanjeev Chatrath, Managing Director Asia for Financial & Risk at Thomson Reuters. “I see recognition among corporations globally that Asia has a tremendous amount of opportunity.”

“This is evidenced in the global rebalance of the Forbes Global 2000 where approximately 700 institutions are in Asia, 542 institutions in the US and 510 in the European Union. Clearly, there are more in this region than in the US or the EU,” he notes. “The focus on growth remains high, but more importantly this focus is now complemented with a balanced attention on sustainability.”

Asia is a region with extremes of demographics: Japan has an aging and receding population, and countries such as India have a younger workforce that is more financially confident, more educated, more traveled and more technologically adept than preceding generations or even their western counterparts, Chatrath points out.

“The evolving needs of the Asian consumer presents unique challenges and opportunities to modern organizations that need to reinvent themselves to provide solutions for these audiences,” he explains. “As an example, the Asian wealth management market is unique in the sense that wealth is self-made and self-directed, and often leverages technology. This is the ‘new normal’ and it presents a new opportunity of connecting businesses and consumers.”

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“The impact of the secular shifts is going to be extremely powerful and very uplifting, and technology is going to lead to greater social inclusion by leveling the playing field in many parts,” Chatrath believes. “We will see a greater amount of uniformity as people have similar access to knowledge enabling them to live up to their potential, and hence we are seeing a lot of creativity and focus on accelerators, innovations and FinTech in Asia.”

These innovations, he notes, include machine learning algorithms that can self-heal, and increasing progress on adoption of “blockchain” as well as augmented intelligence, quantum computing, and virtual reality. “The potential for more and more organizations to leverage technology and to drive greater sustainable growth in their businesses is tremendous.

And it’s really up to them on how responsive they want to become and how willing they are to embrace change.”

The scale of impact At a time when the overall quantum of data is expected to double every few years, it is a massive challenge to go about harnessing “Big Data,” hence the need for platforms of immense processing power. Thomson Reuters, for instance, distributes over 10 billion bytes of real-time data daily. At its peak, this can run to eight million bytes every second. With a legacy dating back to 1851, it is recognized as a core industry platform for the financial community with over 11 million interactions daily.

And the only way forward is to leverage technology to augment what humans are doing on an integrated, open platform which ensures a better, more pristine controlled environment. Augmented Intelligence is an area which has widespread potential of application in wealth management (Robo Advisory, for example), advisory and trading functions, where the ability of processing unprecedentedly large amounts of data with quantum computing remains a key focus.

“We process more data in a day than we did within a month just a few years ago,” Chatrath notes. “We’re talking about an increasing volume, variety and veracity of data, including structured data as in files and unstructured ones like emails, PDFs, and many other formats converted into digital structures, databases and knowledge graphs. We use our own predictive analytics to improve how we find, extract and tag data and to enable customers to use data in ways not possible before.”

“We also use semantic analysis and learning machines to generate sentiment on news and social media, and we have machine learning algorithms that spot suspicious trading patterns and potential fraud,” he adds. “Our open philosophy enables us to partner with customers, liquidity providers, content contributors and regulators and to link our data with their data so that our customers can extract even greater value and superior

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insights to identify new trends and new opportunities for respective businesses.”

Ideally, professionals across a range of different industries can use data to discover, transact, and execute for a business in a safe, effective and efficient manner. “More and more corporations are thinking about how they can get their dollars to go further and hence they are thinking about cost competitiveness,” Chatrath says.

“The idea is for them to be able to develop and derive greater value and to be able to take their businesses forward without the burden of significant capital expenditures.”

“The pursuit of growth at any cost is a thing of the past as increasing numbers of organizations are being very thoughtful. I think people recognize that double-digit, straight-line growth of the past decades will not be the normal, and a straight line is, more often than not, an unhealthy sign,” he believes. “People also realize that there will be more volatility as seen across different asset classes – be it equities, commodities, real estate, or foreign exchange – and that they need to develop strategies for further growth.”

“In essence, our role is to drive value amongst participants in the marketplace – pursuing an integrated, open platform strategy that supports customers and partners in a simpler, more cost-effective way through innovation and an open partnership,” he says. “It means we are delivering intelligent information by synthesizing human intelligence, industry expertise and technological innovation. We are trusted for solutions in helping businesses navigate through the complexity of the world.”

Reuters news is recognized as a trusted source of news and content – it reaches a billion people every day and has received numerous industry accolades as well as Pulitzer Prizes. “We’ve been big in data before data became big. We track more than 40 million instruments a day across all different asset classes, and we’ve accumulated two petabytes of microsecond stamped data since 1996,” Chatrath says. “Just recently our Mergers & Acquisitions database recorded its one millionth entry. That’s one million M&A deals recorded on our database.”

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The Asia market To a large extent, Thomson Reuters is known to be the world’s largest and oldest FinTech company, with a well-established presence all over the world and a proven apparatus delivering content in a changing global financial landscape. A hundred percent of the Fortune 500 companies are customers, and more than 20 million users globally rely on its solutions across the legal, Tax &

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Accounting and financial & risk markets to conduct business.

The managed services platform is highly relevant in many of the markets, and Asia is no exception. “We are the heartbeat across economies because we provide market infrastructure that institutions use to exchange values, including foreign exchange and benchmarks, like we’ve done in Hong Kong and Singapore; we’ve also recently delivered market-wide trading venues in Myanmar,” Chatrath points out.

“There are almost more Internet users in Asia than in any other parts of the world. The potential is far from being exhausted because a lot can be done in these geographies, and the infrastructure necessary for growth is still not where it needs to be,” he explains. “It’s very exciting with new markets opening up like in Myanmar or new connections such the Shanghai-Hong Kong Stock Connect. It is a huge window of opportunity for new growth in many organizations.”

“From our perspective, Asia has always been a position of privilege, and we’ve been embedded in the region for a long time. So we’ve got very substantive

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presence,” Chatrath says. “Our legacy in Asia dates back to 1851 when we established our first office in India – it was a tent on a beach in Mumbai more than 160 years ago. We are deeply embedded in Asia and have been in many of the countries for more than a hundred years.”

“We are currently present in more than 16 countries across Asia Pacific, and we’ve got more than 40 percent of our global workforce across the enterprise based in Asia,” he adds. “It is a region where we have made significant investments; it is a region where we’ll continue to support our customers who are looking to reach their global priorities and goals even more effectively.”

And a much larger focus on new growth will be based on sustainable performance, Chatrath notes.

“Many companies are thinking about how they can sustain their growth and about the health of their organizations so that they don’t end up taking undue risk while pursuing that growth. It is about keeping a balanced view with solutions to help markets operate in a safer environment.”

“And this is coupled with a focus on compliance with the regulatory environment which has changed

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drastically since the global financial crisis,” he says.

“Last year alone, we tracked over 50,000 regulatory changes; that’s 150 of these changes a day. Therefore, risk and compliance are areas where we will continue to see a demand. It is a tremendous opportunity for leveraging technology to cut through those challenges.”

The way forward Noting a basket of solutions on an open platform with many industry-standard utilities, Chatrath says a key area is “Know Your Customer,” which includes screening for discrepancies, financial crime monitoring, anti-money laundering protocols on behalf of companies onboarding customers and third parties.

And a spectrum of financial institutions and asset managers are turning to these proven solutions with which they can minimize the vast risks in the market today.

“It is part of the sustainability equation. It is about screening third parties in terms of conduct, money laundering, politically exposed people, or in terms of any risky behavior,” he explains. “It is something we do on a daily basis, and we screen hundreds of thousand sites every day for any kind of risk that might exist. It allows our clients to take a proactive approach in searching for any kind of possible vulnerability within their business lines or within their supply chain before it is too late.”

“I’m definitely seeing a lot of emphasis being placed by large companies on how they can develop a better sense of risk management, and in many cases through new technology to manage their counterparty risks,” he says. “A bank, for example, by tracking millions of different price points, can get a sense of what the asset pricings may be or what valuation risks against any given instrument by any particular counterparties may exist.”

“Similarly, we are seeing a lot of focus on anti-bribery and anti-corruption, and these are on the national agenda for most of the countries across Asia,” he further notes. “Again, our task is to help our customers identify fraud and risks through surveillance. This is particularly relevant in the context of Hong Kong in line with the recent initiatives on issues regarding the environment, sustainability and governance.”

“Specifically, we are tackling the issue of human trafficking through the Thomson Reuters Foundation.

Via our Trust Forum Asia in 2015 and again in 2016 we have collaborated with NGOs to identify slave labor and have successfully elevated the issue and garnered commitment efforts to make it an international agenda.

Our solutions are tracking thousands of those data points, and corporations are using them to identify where there might be any kind of slaves in their supply chain and how they can eliminate that.”

Whenever there is stress in the market, there is a flight to quality, Chatrath believes. “That’s because

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people don’t want to run their businesses based on rumors, they want facts. And we’ve seen a significant amount of flight to our platforms, which is a strong endorsement. Even in the days when there was a big amount of market volatility in China, our liquidity venues grew 600 percent within a day.”

“It speaks volumes about our platforms where banks and multiple parties of the buy side and sell side come together,” he says. “Of course, we are known to be one of the most trusted sources of financial news in the world.

We are a unique organization – at an intersection of finance, regulations, and technology. And we are here to tailor all of them and deliver them to the world.”

Personal development Chatrath has worked in Asia’s financial markets for over 20 years and is a veteran in sales, client management, marketing and business management. “My background helps me relate to our customers. People who work with me know that I’m very open and very direct and that I believe in transparency and power of the collective team,” he says. “As a professional, I’m passionate about our customers, about the talent of our organization and about the enterprise that I’m part of.”

“As a global executive based in Asia I have a responsibility to represent the voice of Asia at a senior level and bring back the global alignment into Asia,” he adds. “I like to lead by example, and I like to role model things that I expect from my team. I wouldn’t ask my team to do something that I wouldn’t be comfortable doing myself.

That’s how you get a high level of trust and confidence within your team.”

Chatrath has also made significant contributions in advancing the causes of The Women’s Foundation, 30% Club and ASIFMA. As a board member of ASIFMA, he supports advocacy work for development of capital markets because “they have a far-reaching impact in the development of countries,” he says. “I am also passionate about developing high-performing teams where people are respected and valued on merit and merit alone, and I am proud to be part of the 30% Club for greater diversity and inclusion in the workplace.”

“I do firmly believe that the most successful and the fittest organizations are those with a healthy balance in terms of diversity of views and inclusiveness, and where you’re able to attract and retain the best talent in the industry, unmindful of their gender, background, nationality, or sexual orientation,” Chatrath reveals.

“It’s why I chaired the regional inclusion council for Thomson Reuters in Asia and sit on the global women’s taskforce in the company,” he says. “I absolutely enjoy my work, and I feel privileged to lead a team of world-class professionals who are extremely focused and passionate about delighting our customers and delivering value to their businesses.”

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ADVOCACY

The Drive for a Diverse Workforce It is widely agreed that a shortage of qualified personnel is becoming increasingly acute in all of Hong Kong’s important pillar industries. It is a phenomenon that underpins a disconnect between education, labor, and population policies – and it will require a holistic approach by bringing aboard the private and public sectors to forge a long-term, multi-faceted plan in order to maintain a workforce critical to Hong Kong’s continued development

By Queenie Tsui

A

ccording to AmCham’s 2015 annual survey, Hong Kong’s pool of talent from which employers can draw to meet their needs in human resources remains a key issue among senior executives of businesses across the board. The issue, particularly in relation to a local shortage of those skilled in technical professions as well as those specializing in the “white-collar” sectors of insurance, asset and wealth management, is touted as a major hurdle to the locally economic development.

It is widely agreed that shortages are most acute in logistics and transport services, IT, business and professional services, wholesale import and export trading, and restaurants and catering – all important pillar industries of Hong Kong. It has become a severe problem that companies in those sectors are pushing the government to do more in addressing the issue as they continue to experience frustration in their process of hiring qualified personnel.

There are a number of sub-issues in the larger issue of labor/talent shortage: AmCham has heard

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repeatedly that member companies endlessly find it difficult to locate the right local talent and university graduates for job vacancies, due to reasons including their language capabilities and the general lack of a global mindset among them. In the technical fields of technology, cloud computing, solution architecture, and IT project management are in huge demand without a local supply of people with such expertise.

More specifically, Hong Kong’s position in aircraft maintenance, repair and overhaul (MRO) is battered because young people are reluctant to join an industry which they see as non-lucrative. Hong Kong Aircraft Engineering Co (Haeco) said in its 2012 annual report that it couldn’t meet the demand for airframe maintenance during the year as a result of a shortage of skilled labor.

“Having vibrant international and competitive talent is Hong Kong’s most valuable asset,” says Diana David, Chairperson of AmCham’s Education Affairs Group (EAG) and a governor of the Chamber. “Talent, whether coming from overseas, Mainland, or home-grown, needs to be internationally aware and connected.”

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The current situation strongly indicates that this is no longer a matter of corporate policy, but a local phenomenon that underpins a disconnect between education, labor, and population policies in a 21st century economy that is evolving very quickly. And it will require a holistic approach by bringing aboard both the private and public sectors to discuss and understand the issue, and then to forge a multi-faceted plan and execute for the long-term, sustainable development of a skilled workforce in Hong Kong.

Areas of high importance, David notes, include: surveying AmCham’s multinational membership to understand skills and attributes needed in today’s workplace and where gaps remain, raising the profile of vocational training, reviewing immigration policy to allow overseas and Mainland students to study and intern in Hong Kong, and continuing an outreach program into local schools by AmCham leaders.

The education agenda The first step to talent development is education. As an international chamber of commerce, AmCham is well aware of cases concerning the level of dissatisfaction with the availability of school places in Hong Kong.

Because international schools, in general, provide a learning environment that is more open, multicultural, linguistically adept and internationally minded, there is a huge demand among expatriate and local parents alike.

The demand drives an imbalance in the public and private education systems, causing a knock-on effect as overseas families have had grim difficulty in finding school places for their children in Hong Kong. Some families had no other alternative but to send their children abroad to boarding schools, and other families as a whole simply left Hong Kong for neighboring cities.

As such, AmCham through its Education Affairs Group (EAG) has been lobbying the government over the past years on the shortage of international school places, insufficient support for non-English speaking

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students with special education needs, declining language capabilities of students and the overall lack of confidence in the public education system.

The Chamber’s long-standing emphases on many of these issues, particularly on international school spaces, have garnered solid government response. The government has made considerable efforts to promote the development of the international school sector and to enable existing international schools to undergo expansion in meeting the growing demand of the community.

The Education Bureau through its School Allocation Exercise in 2014 released two vacant school premises and three greenfield sites and invited international schools to submit their development and expansion proposals. It is expected that a total of 4,270 school places (3,490 primary places and 780 secondary places) will be made available starting from the 2016/17 academic year.

And there is more: as announced in most recent Policy Address by Hong Kong’s Chief Executive, the government will promote interdisciplinary curriculums emphasizing “whole-person development,” with a focus on science, technology, engineering and mathematics (STEM) to prepare students for the challenges brought upon by the recent economic, scientific and technological developments. It is a progressive approach to aligning with the world’s education trends and enhancing the public school system.

The ongoing effort bodes well for Hong Kong as it is key to retaining a competitive edge and having the capacity to attract, develop and retain talent. And it leads to the important priority of casting a long-term, sustainable human capital strategy to cope with the rising demand for talent as a result of the shifting global economy and Hong Kong’s structural transformation towards being a city of the skilled.

For this reason, AmCham’s EAG has expanded its scope from a purely advocacy standpoint on education to a strategic discussion and execution on the mapping of talent development. EAG is progressing into another

15

phase of working with the government to forge closer ties between the public and private business sectors for further collaboration and to strategize ways of nurturing and attracting the necessary talent that Hong Kong urgently needs to remain competitive in the near and longer terms.

The larger issues The issue of talent development, in Hong Kong’s context, is not only about the availability or allocation of human resources, but is also hampered by a set of social perceptions at large. When students rush into the legal, medical and financial services industries over other technical professions seen as less promising, it creates an imbalanced trend of academic and career choices among young people.

Hong Kong is also perceived to have become less entrepreneurial in an economy believed to have a decreasing appetite for risk-taking, creativity and innovative thinking. While these trends are closely correlated to the economic shifts taking place, they are a source of concern in the diversity of talent across a wide range of industries. They could lead to a down-spiral of home-grown talent in terms of quality as well as quantity, further widening the gap in the talent equation.

The Education Bureau is acknowledged for the efforts in providing students with early career planning – it is very encouraging to see that steps are being taken for the goal of career diversification in the workforce. The Bureau’s Career and Life Planning Grant of HK$200 million each year targets public and semi-public secondary schools for classes of life-planning (LP) education and career guidance. This is a great way to expose young people to technical professions where shortages abound.

AmCham is also doing more. The Chamber’s outreach program, “Conversation with an AmCham Leader,” (see story on page 18) seeks to stimulate and broaden the mindset of schools, parents and students on the issue of career development. It highlights stories of

16

“vocational heroes” through talks at local secondary schools, emphasizing opportunities for vocational training and jobs, and how they can be a step ahead in the job market by having the right mindset and skills including language capabilities.

A PwC survey has shown that millennials (those born after 1980) will form over 50 percent of the workforce by 2020, while the government has estimated that Hong Kong could face a shortage of 117,900 workers in different sectors by 2022. Together, these statistics manifest that a demographic change, together with a shrinking workforce skilled enough for today’s market, is poised to pose an enormous challenge.

To tackle the labor shortage, Hong Kong’s Labour Department has implemented a scheme since 1996 allowing employers with difficulties finding suitable staff in Hong Kong to bring in non-local workers. The application process, however, can take months or even a year before any decision can be reached, partly due to the necessary reviews by employee representatives on the Labor Advisory Board. While the import of non-local workers can be a controversial subject, there needs to be a sensible approach.

It is important to bear in mind that the shortage is set to grow steadily more acute and that Hong Kong’s economic competitiveness in the 21st century depends on a skilled workforce. A diverse labor force in an inclusive environment is critical to the city’s overall economy, and a review on immigration policy for overseas and Mainland students as well as foreign, legally registered same-sex and domestic partnerships and marriages must take place to afford Hong Kong a level playing field.

Given Hong Kong’s experience in global business, there is no reason that it can’t be leveraged for the long-term development of a workforce highly geared for the local market today. And there is every reason that companies are looking for ways to collaborate in nurturing a generation of talent whom may one day turn out to be their employees. What’s needed is a thought leader to connect all the dots.

biz.hk 5 • 2016

EDUCATION

In Pursuit of Talent Development Having initiated and spoken in a “Conversation with an AmCham Leader”, past chair of AmCham’s Education Affairs Group and former governor Frank Wong discusses how members of the Chamber can deliver an enduring impact on the community as role models through a series of orientation programs linking local high school students with business leaders for a face-to-face discussion on career development

By Kenny Lau

biz.hk: First of all, you seem to have a real passion for education. Why is that?

Wong: We live in an era of globalization, and the global economy is undergoing very rapid changes as a result of recent development in the way people communicate with each other, the way local, regional and global business is done and, above all, the way an economy is serviced in the 21st century. And it is all happening very quickly. The phenomenon is particularly pertinent to the economy of Hong Kong because, as we all know, it is no longer manufacturing-based but service-based.

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Frank Wong

Hong Kong needs to remain “Asia’s World City” or it will become just another city – one of the many cities across China. It is about being relevant and making real progress in a very competitive environment, and education – formal training in schools, apprenticeships, or continuous learning – is the best way to nurture the necessary talent for economic development.

As such, we need our young people to become the next-generation workforce equipped with proper skills and a global mindset in order to drive our economy forward and sustain Hong Kong’s competitive edges. The key,

from an employer’s perspective, is the ability of future employees to think logically and communicate effectively, and a passion to achieve results. biz.hk: How does your personal experience relate to your vision of guiding students towards success?

Wong: Just like the global economy, the job market has also undergone dramatic shifts, and not only is it becoming more competitive but also requiring somewhat of a different skillset, compared with a decade or two ago. That’s why it’s more important than ever to have a broader global mindset and be open-minded, especially when we are seeing an influx of highly qualified personnel from

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just kept doing it. On one fine afternoon, a recruiter whom I had never met gave me a call all of a sudden and told me that Colgate would like to meet me; and the rest is history.

emerging economies, such as China and India, joining the global workforce.

What hasn’t changed is that opportunities will always be there for those who persevere. My experience tells me that your first job may not be your ideal job; but it won’t be your last job either if you keep trying hard. In fact, my first job wasn’t all that ideal, either. But I would take the initiative in all types of potential opportunities.

I recall responding to job advertisement – and many were blind ads with just a PO Box address and without company names – in the New York Times on the weekends back then. I must have sent over a dozen copies of my resume along with a cover letter every Monday morning for over a year without any positive response, but I

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biz.hk: How does AmCham have a role to play here, in terms of preparing future leaders?

Wong: Education leads to opportunities, and opportunities are what people, especially young ones, look for in a better life. Besides ensuring that quality education remains readily accessible and affordable, we need to show them a future – a bright and better future. I believe we have a responsibility of doing just that by guiding, supporting and encouraging our students through exposure to the real world and through hands-on experience whenever and however we can.

AmCham is an influential organization and is well known locally and abroad. It is blessed with a membership comprising of so many community leaders, experienced professionals and experts in an array of industries in such a deep and diverse way that they are hard to find elsewhere. More importantly, they care deeply about this community and certainly want to make Hong Kong a better place by preparing a generation of future leaders.

biz.hk: What exactly is a “Conversation with an AmCham Leader?” What can it achieve?

Wong: It creates an opportunity for students of local high schools to meet face-to-face with business leaders of our community in a program which seeks to leverage AmCham’s natural resources – its large pool of current and former Board governors and committee chairs as well as member companies – to inspire students with their stories of career development, lessons learned, and their advice on how to prepare for a career. I think it is safe to say that all of us were once students and wished to have a mentor of some kind.

Members of the Chamber are excellent role models in terms of having a global mindset, a commitment to community service, and the pursuit of excellence. The investment of just 30 to 45 minutes could have an enduring impact on the students, most of whom do not come from affluent families and have had very little exposure to accomplished global executives. The format is very flexible: AmCham leaders could give a talk at a participating school or have a smaller group of students come to their office. biz.hk: What was your experience like as a guest speaker? What did you talk about? How receptive were the students?

Wong: I truly enjoyed my experience and the students were very engaged, judging by the many questions they asked. It’s a good exercise for me personally as I had to collect my thoughts on my own career journey to derive a few key messages for the students. During my talk, I carried a few points for the students to bear in mind.

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My first message is: don’t give up; it’s never too late. There is nothing more important than this when it comes to trying to achieve something.

Once you give up, it will be the end of it. The fact that you might be at the bottom 10 percent of your class right now does not mean the end of the world. You could be one of those late bloomers or you simply have a different kind of talent, and you don’t need to be a doctor, a lawyer or an engineer to achieve success in life.

Secondly, I encourage students to find something, anything, to be passionate about. It might have nothing to do with school work, but if you are able to dedicate yourself to it, you will become good at it, and it will become your competitive edge. If you love sport, train yourself to be highly competitive; if you like karate, get a black belt; if you like video games, you can write a blog as a game critic and may land yourself an incredibly lucrative career as a game developer. The key is to become good at something that you are proud of.

Thirdly, from a career standpoint, you cannot afford to have an anti-China mentality. What you can do and learn in China’s huge market with an open mind is beyond imagination. We all need to learn to have a more balanced, nuanced view – there are always the pros and cons of any opportunity. The best way is to personally experience China in a meaningful way and to think critically for yourself, rather than being a follower of sensationalism. biz.hk: From your conversation with students, what are the concerns, worries and ambitions of the students?

Wong: Their concern is about limited opportunities, and they feel good career options are becoming less available partly due to a growing number of Mainland talent. They would appreciate more internship opportunities with large corporations as a way of better preparing themselves in a competitive job market, and I think this is precisely an area where AmCham can facilitate as many of our members operate throughout the region.

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biz.hk: What are your top three pieces of advice to high school students in Hong Kong?

Wong: Don’t stop learning just because you are now out of school. As a high school graduate, you have at least another 40 years ahead of you to learn and to grow. You need to keep investing in yourself, and you can learn a great deal by reading biographies of successful people. Another is to take initiatives – don’t wait to be told what

to do, and always be thinking how you can do things better. When you go above and beyond what you are expected to do, you will stand out.

Lastly, persevere – don’t give up easily. Grit is proven to be the single most important factor to lifetime achievement, more so than your class ranking or your IQ.

Frank Wong is President (Asia) of Scholastic Inc, the world’s largest publisher and distributor of educational material for children and a pioneer in technology dedicated to the development of children’s reading skills and English proficiency.

He was previously Managing Director of PepsiCo Foods in China (1999 to 2003) where he established a dominant market position for Lay’s brand of potato chips.

Wong spent five years with Nabisco for which he began as International Marketing Director in New York and later became Managing Director of Nabisco’s operations in China responsible for the successful brand-building of Oreo, Chips Ahoy and Ritz in a growing market. Prior to his assignments in Asia, he had also held a number of senior management positions with Colgate Palmolive in New York.

Mr. Wong received a BA degree from George Washington University and a Master’s degree from Columbia University, and did graduate study at Harvard’s Kennedy School of Government. In addition to serving as Chairman on the Board of Teach for Hong Kong, he is a board member of the AFS Intercultural Exchanges, a member of the International Council of George Washington University’s Elliott School of International Affairs, and a former governor of the American Chamber of Commerce in Hong Kong.

biz.hk 5 • 2016

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REAL ESTATE

China’s Impact on Hong Kong’s Property Market In a new era of slower Chinese economic growth, what are the implications of a wave of declining demand from Mainland Chinese companies, investors and tourists alike on Hong Kong’s commercial, retail and residential property markets? Denis Ma, JLL’s Head of Research for Hong Kong, talks about China’s current and future role in driving the local property market

By Leon Lee

O

ften described as the gateway to China, Hong Kong’s proximity to the economic juggernaut is one of the many advantages that makes the city a leading international business hub. With an increasingly growing connection with Hong Kong, China has had a significant impact in various sectors of the city such as financial services, banking, retail and property.

However, as China enters a new era of slower economic growth, there are questions about the long-term implication, given the declining demand from mainland companies, investors and tourists alike. Of particular interest is real estate in Hong Kong as indicated in a recent white paper by JLL on China’s influence across the local property market.

Denis Ma, JLL’s Head of Research for Hong Kong, shares some of his insights and research on China’s current and future role in driving the growth of the local property market which includes commercial offices as well as the other two core sectors – retail and residential.

The demand As China’s economy steadily grew over the last several years, Hong Kong’s property market has benefited in terms of rentals and investments. Over the last seven years since the global financial crisis, rental prices have doubled. The number of Mainland Chinese companies with an established office in Hong Kong has increased by about 50 percent over the last 10 years.

“In terms of new lettings, we’re seeing more and more Chinese demand coming through the market. Over the last five years, their market share has basically doubled,” says Ma. “Last year, in Central for example, Chinese tenants accounted for just under 40 percent of all new lettings in that sub-market.

This is important because this is probably a trend that we’re going to see continue moving forward.”

The demand is primarily coming from banking and financial services

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Market activities Over the last three years, three of the largest deals in Hong Kong’s office market were completed by Chinese companies. In November 2015, Evergrande Real Estate bought Mass Mutual Tower in Wan Chai for a record HK$12.5 billion, while in February of this year China Everbright paid HK$10 billion for Dah Seng Financial Centre, also in Wan Chai.

The huge demand for office space has raised some issues as there is a shortage of vacancies in the market right now. This is further exacerbated by Chinese companies’ preference of office spaces in Central, leading not only to an imbalance of demand outstripping supply but also a stagnation of buying/selling activities due to the fact that offices in commercial areas other than Central are not on the buyer’s list.

“In my opinion, I would say that demand is actually still there in the market,” Ma says. “The problem is that vacancies are so tight, there is not a lot of opportunities for them to move. If they went out and looked beyond Central, perhaps we could see a little bit more activity.”

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Chinese Market Share (%) 40

Maket Share, %

35 30 25 20 15 10 5 0

'11

'12

Overall

'13

'14

'15

Central

Demand vs Vacancy - Central 180

4 PRC

160 120 100 80 60 40

3 Non-PRC 2 1

x%

140

NFA, sq ft ('000)

companies as well as some real estate, insurance and professional services firms that have set up offices in Hong Kong. And with the strong demand from Chinese companies, it has pushed the city’s property market above other places.

“It differentiates Hong Kong from a city like Singapore where we’re seeing that MNC demands have been quite flat over the last couple of years. Yes, Singapore has some supply issues but primarily it’s the Chinese demand in the market that has actually propped up the Hong Kong’s office market,” Ma explains.

When Chinese companies make the initial move to Hong Kong, they will typically look for a smaller space (less than 5,000 square feet) in prime locations like Central. As their companies grow, they will lease up to 60,000 square feet and afterwards, look to buy office space that are 100,000 square feet or more.

Vacancy (RHS)

20 0

0 Source: JLL

“We’ve been trying to get them to look beyond, but right now they still remain very much focused in Central,” he adds.

Currently, Chinese companies have a total footprint of 5.2 million square feet in Central which accounts for 21 percent. According to estimates by JLL, the number will increase to seven million square feet to reach 28 percent in five years’ time.

“What it means is that if you don’t have a Chinese neighbor in your office building now, you probably will. It also likely means that some people are going to have to be squeezed out of Central. It’s actually our views that it will be the larger MNCs getting squeezed out of Central, in particular the banks.”

Favorable government policies such as the Shanghai-Hong Kong Stock Connect and the Mainland-Hong Kong

Mutual Recognition of Funds will help maintain the demand of office spaces from Chinese corporations for the near future.

Impact of tourism The impact of the Chinese consumer on Hong Kong’s retail sector has been well-documented in the news. In 2015, 46 million people from Mainland China visited Hong Kong and spent an estimate of HK$178 billion. That figure accounted for 40 percent of all retail sales in the city which was just under HK$500 billion. On average, they spent HK$3,900 per visit.

Chinese visitors are attracted to Hong Kong as a shopping destination because of the authenticity of products, a diverse range of goods available and favorable pricing. However, last year the number of Chinese visitors decreased

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Retail sales vs visitor arrivals 50

YoY Growth, %

40

Mainland Visitor Arrivals

30 20

Total Retail Sales

10 0 -10

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

Sales of Jewellery, Watches, Clocks & Valuable Gift

-20 Source: Census & Statistics Department, Hong Kong Tourism Board

Denis Ma

for the first time in almost 20 years. It coincided with decreases in retail sales, especially in high-end luxury products including brand-name watches and jewelry.

There are an array of reasons contributing to the decline. With the slowing of the Chinese economy, people are generally more cautious about where they go on holidays and how much they spend. And for those who decide to travel abroad, they are increasingly heading to Japan, Europe or North America rather than Hong Kong because they’ve already visited the city on a previous trip.

For visitors who choose to come to Hong Kong, their habits are different from previous visitors. “Increasingly, more visitors coming into Hong Kong are here on a one-day visit rather than staying overnight,” Ma points out.

“They usually spend less and tend to target a different segment of the market. Rather than coming down to Tsim Sha Tsui to buy a luxury handbag, they’ll probably stay around the borders and buy daily necessities.”

A changing landscape

In April 2015, the Chinese government reduced the number of times

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Shenzhen residents could visit Hong Kong to once a week in an effort to combat the growing issue of parallel traders. Previously, under the Individual Visit Scheme (IVS), residents who had multiple-entry permits could make as many trips to Hong Kong as they wish.

Ma believes that if the policy was reversed, it could potentially bring back 5.4 million people back to Hong Kong and boost the retail market. He adds that if the government expanded the IVS beyond the current 49 cities in China, it could add 10.4 million visitors and bring in HK$20 billion in retail sales to the city.

“Looking ahead, for the market, we’re going to see more rebalancing which might be a good thing for Hong Kong. To see more diversity coming back in the streets is a positive for the market in the long-term,” he says.

For retailers, there are going to be opportunities for those who want to move into prime shopping locations in the city as the demand from luxury brands has decreased – an issue not just restricted to Hong Kong but other areas in China as Chinese shoppers become more sophisticated and selective with their purchases. However, Ma believes the luxury brands will make their way back to Hong Kong in the long term.

In the residential sector, sales to Chinese buyers have slowed down as the Hong Kong Government introduced the Buyer’s Stamp Duty in 2012, which places an additional 15 percent duty on any acquisition by a

non-Hong Kong permanent resident.

In addition, Chinese buyers are preferring to purchase properties overseas in the UK, US and Australia.

Instead of Chinese buyers, Chinese developers are playing a bigger role.

“Over the last couple of years, Chinese developers have been increasingly active in the land sales market.

They’ve been active in submitting bids and they’ve actually started to win a lot more bids,” says Ma. “And when they do win bids, very often, they are quite aggressive and have been paying in premiums.”

As of the beginning of April this year, Mainland Chinese developers have already won three of the five residential land sales completed in 2016.

The developers are coming down to Hong Kong for a number of reasons.

One is because the Hong Kong property market remains fair and open compared to other places. Another has to do with developers’ global expansion strategy. For developers, especially those in southern China, who want to grow their business, they need to have Hong Kong in their stable of properties.

Chinese developers definitely have the resources and potential to grow in size to compete with the handful of local developers in the Hong Kong residential market. For some of the smaller local developers, there might be opportunities to partner with their Mainland counterparts through joint ventures.

biz.hk 5 • 2016

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COMMUNICATIONS & MARKETING

Simple Stories Compellingly Told One of the oldest forms of human communication, storytelling predates the printed word, television, cinema and all forms of advertising. It is increasingly recognized as a leadership capability among CEOs, politicians, celebrities and global brands in their journey to better connect, inform and engage with stakeholders. More importantly, storytelling is a repeatable technique that can be learned. Microsoft Asia’s Senior Director of Communications Andrew Pickup shares how human stories can be told to have an impact

By Leon Lee

T

he ability to tell a good story is useful at any social setting. Whether it is to entertain friends or break the ice with strangers, a good story captures the attention of its audience and perhaps gets remembered to be retold to others. According to Andrew Pickup, Microsoft Asia’s Senior Director of Communications, storytelling has emerged as an essential skill for CEOs and business leaders.

At a recent AmCham event, Pickup reveals the role of telling a good story in promoting a brand, protecting the image of an establishment and defending the reputation of a corporation.

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Breaking through Storytelling is the oldest form of communication in human history, dating back to cave paintings of hands and animals. Today, the number of ways to tell a story and share an idea have increased dramatically, from the traditional forms of writing to radio broadcasting, from television to the Internet. Recent research shows that the average US consumer is exposed to over 250 marketing messages daily.

“Innovation in technology of recent years means that the volume, variety and velocity of information channels that are now globally available have exploded

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exponentially,” says Pickup. “So clearly, if you are a business leader trying to communicate with your key stakeholders – whether they are employees, customers, partners, suppliers, or regulators – a fundamental challenge is how to break through this clutter, this sheer cacophony of ‘white noise.’”

The answer is storytelling – it helps to bolster essential messages and ideas and to separate them from the usual corporate speak. Business leaders who are adept at storytelling can effectively use it to inspire employees or capture the imagination of stakeholders.

It is a subject which numerous academic research and books have covered while publications such as the Harvard Business Review, Financial Times and Forbes have all featured stories on genuine communications and authentic stories. At University of Pennsylvania’s Wharton Business School, it is a class offered in a module called “Leader as Storyteller.”

As the channels and methods of communication have grown over the years, so has the sophistication of consumers. They have become more skeptical of public relations and corporate communications. However, with the right form of storytelling, it allows people to be more authentic and speak to the hearts and emotions of an audience.

“If you really want to get people to act, you have to appeal to the brain, but you also have to appeal to the heart. We’re all human at the end of the day. Just bombarding people with facts and figures is meaningless,” Pickup explains.

However, that is not to say that facts and figures are useless, he adds. Statistics and research all give credibility to the message that is being delivered. There is a need for both the rational and emotional in order to get people to act.

From Pickup’s perspective, it is meaningless to just bombard customers with numbers on the speed of processing rates or graphics cards. Instead, he believes there is a bigger likelihood of success by explaining to them, perhaps with a personal anecdote, how having quicker processing rates or graphics cards can be useful to their performances and businesses.

Microsoft Stories Microsoft saw the value in stories about three years ago, and they subsequently launched a website dedicated to telling “Microsoft Stories.” The company took inspiration from the Pulitzer Prize-winning New York Times article, Snow Fall: The Avalanche at Tunnel Creek – a long-form feature story on the fatal avalanche that seamlessly incorporated videos, voice recordings and interactive online elements into the story.

The company aspires to help reach out and touch the lives of billions of people through technology. To

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reach them, Pickup explains, Microsoft knew it needed to deconstruct the technology paradigm and make it easier for people to access it.

Stories were the ideal way to break down that wall.

The company’s first story was 88 Acres which featured an employee named Darrell Smith who was in charge of ensuring all the facilities on the vast Microsoft campus ran smoothly, utilizing software and sensors to Andrew Pickup monitor and control conditions. The role of Smith was not the typical subject featured in an article, yet the story was well-received both within the organization and outside, as it perfectly showed the skills and dedication displayed by Smith and his team to do their jobs, with a focus on the people rather than the products themselves.

The Microsoft Stories website now has over 50 stories with a small, dedicated team of ex-journalists in the US producing the stories. There are in-depth articles on employees, customers and partners on their contributions or how the company’s products contribute in a positive way.

Storytelling played a huge role in 2014 when Microsoft announced the appointment of CEO Satya Nadella.

The announcement was big news because of the size and reputation of the company and that Nadella was going to be just the third CEO in Microsoft’s 40 years of existence after Bill Gates and Steve Ballmer.

With the immense potential of interest in the announcement, the company wanted to control the narrative and share information in an innovative way.

Therefore, rather than holding a press conference, they launched a website providing information on Nadella’s background of growing up and studying in India, his work at Microsoft and his personal interests in cricket and poetry.

Through the website, news agencies and publications were able to access photos of the new CEO, his email message to Microsoft employees, and videos from Gates and Ballmer explaining why Nadella was a good choice. The initiative provided journalists and reporters with everything they needed to write a story on his appointment; yet, it provided more through the new portal.

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The company used the website and narratives to not just announce a change in leadership, but a change in culture as well – a company that was becoming more transparent and accessible.

A learned skill Pickup has seen a greater level of awareness and interest in storytelling than ever before.

“I think this is partly because, these days, business leaders are far more knowledgeable and informed about the marketing & communication process than ever before,” he says. “They are also observing all sorts of figureheads – celebrities, politicians, activists, charities, and brands – using storytelling to communicate their messages and doing so with impact.”

However, there is a difference between great stories and great storytelling. Great stories are typically made up of four key elements – relevance to the audience with an emotional core in a simple and authentic way. Great storytelling is about “taking the audience on an emotional-laden journey.” And it must include incorporating context, introducing conflict or disruption, embarking on a transformational journey and then providing a resoluSatya Nadella tion.

Just like any other skill, Pickup believes storytelling is something that can be learned.

“It is certainly true that some societies have a strong history and culture of storytelling. But storytelling is also a recognized technique – one that can be learnt, repeated and scaled to your business,” he says. “There are some common elements that are core to a great story and can be applied to commercial scenarios. The global center of storytelling is Hollywood, and there are certainly lessons and techniques from that industry that can be successfully applied to other industries and businesses.”

Recognizing and adapting the Hollywood process is one of Pickup’s secrets to telling a great story. One of the most commonly used process in moviemaking is called the hero’s journey – which starts off with an ordinary person with some flaws getting called to an

28

adventure. The hero would initially refuse, until he or she meets a mentor who leads them on the adventure.

Through the journey, the “hero” will gain new skills, meet allies and encounter enemies, and will then overcome the challenge of fear to defeat the enemy. At the end, the hero has transformed to a better person because of the adventure – a classic journey featured in some of Hollywood’s most popular films such as Star Wars, Harry Potter and The Lord of the Rings.

Finding a hero is an essential part to telling a great story because every story needs one, but it is important to remember that not all heroes necessarily have to represent the typical strong and silent type. Another secret to great storytelling is images. In the past, newspapers were all text but today the most popular websites such as Buzzfeed are visually-oriented.

For the announcement of appointment of Nadella, Microsoft provided media outlets with images featuring a new CEO not only in a typical suit or business attire but also wearing a much more casual sweatshirt which plays to the idea that the company is becoming more modern and progressive.

While something like attire might not seem to be a priority, details really matter in great storytelling.

Details such as whether a speaker is speaking to an audience from atop a stage or on the same level are powerful as non-verbals signs evoke a different response from listeners.

When it comes to storytelling for a company, it needs to get to the why – why do they exist.

“For Microsoft, we sell Windows, Office, Xbox, etc.

But that’s not why we exist. That does not inspire any employee to say, ‘I exist to licence Windows or Office,’” Pickup explains. “That’s just what we do and how we make money.”

“It has to be a higher echelon, an aspiration, for everybody. Whether you’re a small company or the largest corporation in the world, there has to be something emotional that really gets to the heart of the impact you are trying to have,” he says.

Lastly, when stories are conveyed in a personal way, it feels more authentic and makes it easier for an audience to relate. Storytelling will continue to have an impact in the future but on different plains, Pickup believes.

“As I have said, storytelling is the oldest form of communication known to mankind, so I do not believe that the fundamentals of a great story will change dramatically,” he says. “What will change are the platforms upon which these stories will be told which will be advanced through technology becoming cheaper, more accessible and more broadly available to all.”

“Longer-term, emerging technologies such as virtual reality, augmented reality, holographic computing and artificial intelligence will create newer, exciting storytelling opportunities,” he adds.

biz.hk 5 • 2016

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INDUSTRY FOCUS

A School Orientation for Prospective Students and Parents Hong Kong is truly a vibrant international city – a status reflected not only in the role it plays in the immense volume of global trade and investment or financial transactions year after year but also in the thriving sector of international schools. Some 50 schools currently provide curricula of the UK, US, Australia, Canada, Japan, Korea, Germany, France, Singapore and the International Baccalaureate Organization, meeting the needs of nearly 37,000 non-Chinese speaking students, children of expatriates and local students in the academic year of 2015/2016.

As parents – local and expatriates alike – continue to seek international school places for their children in a city where supply can barely meet demand, it pays to learn about each of the schools, availability of places and whether they are a good fit given a particular curriculum, philosophy and vision. Here are a number of selected high (secondary) schools offering a broad educational experience

By Leon Lee

American International School The American International School (AIS) is a private, fully accredited co-educational international school in Kowloon Tong, with a student body of 800-plus from early childhood to Grade 12. It is known for a strong college preparatory academic program based on US education standards, and students learn to become “confident, independent and well-rounded.”

High school students normally spend four academic years and must earn a minimum of 24 Carnegie Credits to graduate. They are required to take a full-time schedule of seven courses per year.

Besides academic requirements, students must also take part in the mandatory Outdoor Education and Leadership Program, which can start as early as Grade 2, to nurture personal and social growth and to learn leadership skills. Giving back to the community is another key area in their development so there are minimum community service hours as criteria for graduation.

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Honor classes are offered starting in Grade 10 and 11 for students anticipating Advanced Placement (AP) classes in their senior year. In 2015, 53 AIS students received 53 Scholar Awards, including 12 with Honors. The fifty-six graduates last year received 170 acceptances from prestigious universities and colleges in the United States and worldwide.

Starting in the academic calendar of 2016-2017, AIS will be one of the very few schools in the world to participate in the US College Board’s AP Capstone Program. The program includes a two-course sequence, AP Seminar and AP Research, and allows students to develop necessary skills for college such as inquiry, research and collaboration. Students who complete AP Seminar and AP Research with scores of 3 or higher, and receive scores of 3 or higher on four AP Exams in subjects of their choosing, will receive an AP Capstone Diploma.

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Canadian International School of Hong Kong Canadian International School of Hong Kong (CDNIS) is a private, non-profit co-educational school located in Aberdeen, with more than 1,800 students representing 40 nationalities. It is a fully accredited Pre Reception – Grade 12 International Baccalaureate (IB) World School, emphasizing a complete and immersive IB experience to prepare students for the challenges of post-secondary studies.

Three graduates from the class of 2015 scored a perfect 45 on their IB exams, while another two achieved a score of 44 and 27 other had a score between 40 and 43. In total, ninety-three percent scored above the world average of 29 points, and all graduates were awarded both their IB and Ontario Secondary School diplomas. 71 percent were accepted to universities of their first choices, with 59 percent going to one of the Top-100 universities in countries including the UK, US and Canada.

In addition to a focus on academic achievements, CDNIS has established strong partnerships with external organizations to give their students experiences that go beyond traditional classroom learning. More than 70 after-school activities in sports, art and academics allow their students to explore and expand their skills and knowledge.

Chinese International School Chinese International School (CIS) is a dynamic dual-language learning community located on Braemar Hill on Hong Kong Island. The school was established in 1983, and today it offers an international curriculum in English and Mandarin for students aged 4-18 (Reception to Year 13, or Pre-kindergarten to Grade 12 equivalent).

Students are taught to develop a strong command of English and Chinese Mandarin, and they take classes in both languages throughout their years of enrollment. From early on through Year 6 (Grade 5), the amount of time spent in each language is equally divided, with more English progressively introduced.

In the secondary years, students follow the International Baccalaureate (IB) Middle Years and Diploma Programs.

Year 10 students (Grade 9) spend a year studying abroad at Hangzhou CIS in Zhejiang Province and are able to be fully immersed in Chinese culture and language

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while continuing their education in English within the framework of the internationally recognized IB Middle Years Programme (IBMYP).

The student population of 1,500 is very stable, with about five percent turnover per year. Graduates go on to leading universities worldwide, with approximately 50 percent choosing schools in the US, 30 percent in the UK, and 10 percent each in Hong Kong and Canada.

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Concordia International School Concordia International School (CISHK) is a private, non-profit school which has offered an Americanbased curriculum for over 25 years. Located in Yau Yat Chuen in Kowloon, it has a small, yet diverse student body as the campus accommodates a maximum of 100 students yearly. For the last 20 years, CISHK has maintained total enrollment of about 90 students and an average size of classes of 15 students. The school has been approved as a candidate for accreditation by the

Accrediting Commission for Schools of the Western Association of Schools and Colleges.

The foundation of the high school program is based on the US College Board’s SAT (formerly known as the Scholastic Aptitude Test or Scholastic Assessment Test) and AP curriculum specifications. All students in Grade 10 and 11 sit for the PSAT test, and Grade 11 and 12 students take the SAT and TOEFL tests. Many students also choose to take AP and subject-specific SAT exams.

CISHK is associated with Concordia Universities in the United States, providing an excellent foundation for further study. Students are mentored in university application processes to help with their transition. Their graduates have pursued further study in the Americas, Europe, Oceana, East and Southeast Asia.

Students participate yearly in league sports, including cross-country, volleyball, basketball, badminton and soccer as well as other extra-curricular activities such as History Bee and Bowl as well as The World Scholar’s Cup.

Delia School of Canada With over 1,400 students of more than 45 nationalities, Delia School of Canada (DSC) in Taikoo Shing follows a curriculum from Pre-Grade 1 through Grade 12 accredited by the Ontario Ministry of Education, Canada. The

mission of DSC is the “pursuit of educational excellence” in guiding students to become citizens in a global community, providing them with opportunities to develop their intellectual, physical and social skills.

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To graduate from high school with the Ontario Secondary School Diploma (OSSD), students must earn 30 credits made up of 18 compulsory credits and 12 optional credits.

Students are also required to complete a minimum of 40 hours of community service and involvement, and to meet the literacy standards of the Ontario Secondary Literacy Test (OSSLT).

Similar to other prominent schools in Hong Kong, graduates of DSC are accepted to prestigious universities around the world, including those in Hong Kong, Canada, USA, the UK, and Saudi Arabia, among others.

For after-school extracurricular activities, there are a range of sports, art- and academic-related offerings, including soccer, art, ICT, Chinese Culture, choir, Dragon Math and Model UN. As a member of the International Sports Federation of Hong Kong, teams of the school participate in basketball, ball hockey, volleyball, and rugby competitions.

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English Schools Foundation The English Schools Foundation (ESF) is the largest provider of English-medium international education in Hong Kong. Students in Year 9 to Year 11 of the five secondary schools take either UK GCSEs or International GCSE courses. English Language, Mathematics, Sciences courses are all compulsory. By the end of year 9, students have the opportunity to select between four and six options from a broad range of subjects. For Year 12 and 13 students, the main pathways are the IB Diploma and the Applied Learning. Highly personalized courses of study are available for a small number of students with special needs.

The IB Diploma allows students to study six subjects, generally three at higher level and three at standard level, as well as a Theory of Knowledge course, an Extended Essay and a Creativity, Action and Service (CAS) component. The Applied Learning Pathway is built upon the Business and Technology Education Council (BTEC) qualifications, and it meets the needs of students who enjoy and do best with a more practical style of learning.

In 2015, 934 Year-13 students completed the IB Diploma: 98.5 percent of students achieved the full IB Diploma; 61.5 percent scored 35 or more IB points, and 25.1 percent had 40 or more points. The average was 35.7 total points, while 17 students achieved a perfect score of 45 points. The Bilingual Diploma was awarded to 121 students. At the same time, 94 Year-13 students from King George V School, Island School, South Island School and West Island School successfully completed the Applied Learning Pathway.

Harrow International School Hong Kong Harrow International School Hong Kong is the first international boarding and day school in Hong Kong.

Opened in September 2012, the school is well known for its crescent-shaped building and custom-built facilities near the Gold Coast in Tuen Mun. So far, it has a population of 1,115 students, from early years to Year 13, in its Lower School and Upper School.

The school is an integration of educational philosophy, practice and traditions. Curriculum during Year 9 to Year 11 is based on IGCSE courses; and curriculum during Year 12 to Year 13 is based on A-level courses over a period of two years, together with the Extended Project Qualification and the school’s own Harrow International Perspectives course.

Last year, 52.2 percent of Year 11 students scored an “A” in their IGCSE examinations. Out of 44 students, 21 received five or more “A” grades. In the A-Level examinations, 25 Year-13 students received a combined 86 “A” grades in 14 subjects; 19 earned two or more “A” grades; and no student received a grade below a “C” at the same time.

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Harrow Hong Kong graduates have been very successful in gaining places at top universities in the UK, US and Hong Kong. Among the conditional offers gained by the current class of Year 13 students, there are six from

Cambridge, two from Oxford and seven from the London School of Economics.

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Hong Kong Academy The Hong Kong Academy (HKA), with a spacious 5.9-acres campus in Sai Kung, is an independent, International Baccalaureate (IB) World School for students from early childhood up to Grade 12 in primary, middle and diploma programs. HKA’s globally-sourced curriculum emphasizes whole-child, inquiry-based learning and is independent of any particular national curriculum. HKA is accredited by the Council of International Schools (CIS) and Western Association of Schools and Colleges (WASC).

Diversity and inclusion are two key areas of focus for the school: all students – including those with learning

needs, or requiring language acquisition support, and those receiving enriched offerings – learn in the same classroom.

Approximately 15 percent of the 630-plus students of HKA receive some form of “Learner” or “English Language Support.” Students - and faculty members – come from all parts of the world as no one single nationality represents a majority among the student body.

The school has three types of diploma for its secondary students: a HKA Diploma with Full IB Diploma, a HKA Diploma with up to six IB Certificates and a HKA Diploma.

A minimum of 23 credits as well as a Reflective Project, Work Experience and Creativity, Action & Service (CAS) are required for graduation. Outside the classroom, co-curricular activities include visual and performing arts, sports, debate, service learning and action groups such as Student Council and Sustainability Council.

In January 2016, HKA became a member of the Global Citizen Diploma (GCD) consortium and is the only school in Hong Kong to offer such program. The GCD focuses on student-led service learning and responsible action.

Hong Kong International School Hong Kong International School (HKIS) has a long history in Hong Kong: it has provided an American-style education grounded in the Christian faith across two campuses on the south side of Hong Kong Island since 1966. As a private, co-educational college preparatory school for students from pre-kindergarten to Grade 12, it is an inclusive learning environment for over 2,600

students of 40 nationalities and diverse religious backgrounds.

HKIS has over 25 Advanced Placement (AP) subjects available to its high school students. Students normally

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complete high school in four years after earning a minimum of 22 units of credit. Eighteen credits must come from classes in English, Mathematics, Science, Social Studies, Physical Education, Fine Arts, Religion and World Languages, and the remaining credits can be earned via electives.

Besides academics, a wide variety of extracurricular activities – ranging from community service, care for the environment, to photography and journalism – are well established. Their award-winning bands and athletics teams regularly participate in competitions both nationally and internationally. There is also an Interim program every year for students to engage in a weeklong, off-campus learning experience with which learning results can be applied in their studies.

Their graduates can be found at the world’s top universities, and many are accepted on full or partial scholarships. Close to 85 percent of HKIS students attend US institutions including Ivy League schools. HKIS is accredited by the US Western Association of Schools and Colleges (WASC) and is a member of the East Asia Regional Conference of Overseas Schools (EARCOS).

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International Christian School International Christian School (ICS) first opened its doors for Grades 6-11 in 1992 with only 56 students on a “small, run-down campus” inside Bethel Seminary in Kowloon City. Over the span of a quarter century, ICS has grown to become a school of well over 1,000 students with a 6,300-square meter campus in Shek Mun, Shatin. Besides offering students a broad range of learning opportunities based on a North American curriculum, it places a great emphasis on the interpersonal dimension of learning based on the belief that “learning is the result of interaction between people, ideas and experience.”

The academic program is one which challenges students in a wide range of subjects, including 19 Advanced Placement (AP) classes and 16 honors-level courses in art, music, language, math and sciences. In 2014, 153 students sat for a total of 298 AP exams and were able to achieve a 94 percent passing rate with a score of 3 or above on a 5-point scale. ICS’s Fine & Performing Arts program is particularly noteworthy and is well known for its choir, band, art, and drama projects, including the course in Theatre Technology.

ICS’s High School is based on four academic years of attendance, and students must earn at least 25 units of credit and must complete successfully a “Week without

Walls,” an annual program which targets different kinds of learning in various locations with a service component, in order to graduate. Extracurricular programs range from basketball to French, from Harvard Model Congress to Spiritual Discernment. As a Christian school, ICS also has school camps, weekly chapels, and a Bible curriculum.

International College Hong Kong The International College Hong Kong (ICHK), situated in the New Territories, is specifically for students from Years 7 to 13. It is an IB World School and a member of the Council of International Schools and of the Association of China and Mongolia International Schools. The school has a particular focus on innovation in learning and has come up with a unique and stimulating curriculum to help students learn that success is a result of effort, commitment, perseverance and resilience, rather than latent intelligence or talent.

From Years 7 to 9, students follow the UK National Curriculum with subjects including English, Science, Humanities, ICT/Media and Human Technologies. In Years 10 and 11, the program of study leads to GCSE and IGCSE qualifications while also preparing students for the challenging two-year course of study IBDP offered in Years 12 and 13.

In 2015, 40.5 percent of ICHK students scored an “A” in the IGCSE while students in the IBDP achieved an average of 30.5 out of the possible 45 points, collectively

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above the global average. All of their graduates were accepted to their first-choice universities – a key initiative of the school.

Taking advantage of its rural surroundings in the New Territories, extra-curricular activities focus on outdoor education and appreciation of the natural environment.

Sailing, horse riding, gardening and other environmentally green undertakings are what students can do. Others include sports, performing arts, community action and school radio.

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Kellett School Kellett School, the British International School in Hong Kong, was founded in 1976 as a not-for-profit association providing a British-style education to English speakers in Hong Kong. It is a through-train school – meaning enrolled students normally go through their primary and secondary years at the same school – and has some 1,200 students on two campuses in Pok Fu Lam and Kowloon Bay.

The Pok Fu Lam campus is a preparatory school (age 4-11) located in Hong Kong’s southern district of Wah Fu, while the Kowloon Bay campus is for both preparatory and senior places. The school also guarantees all Kellett preparatory students a place in the secondary section, with a capacity of up to 600 places. Kellett School follows the Early Years Foundation Stage (EYFS) and English National Curriculum which begins in Reception (early childhood) and runs all the way to Year 13. The academic program is based on GCSE, IGCSE and A-Level.

The school’s philosophy is that a broad curriculum embraces creativity, hence the need for participation in arts and sports as something supplementary to high academic achievement and to the development of a student as a whole.

Extra-curricular activities include local and overseas educational visits, a rich repertoire of performing arts opportunities, sports and activities of general interest.

Nord Anglia International School Hong Kong Nord Anglia International School Hong Kong (NAIS) is part of a global family of 42 international schools located in 15 countries, including those in China, Europe, the Middle East, North America and Southeast Asia. It opened

a campus in Lam Tin in September 2014 and follows the English National Curriculum in Years 1 – 9. From Years 10 to 13, students work towards the University of Cambridge IGCSEs and the IB Diploma during their final years.

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With over 32,000 students worldwide, each student is encouraged to learn and collaborate with one another via the school’s Global Campus. It consists of three distinct areas of learning: Online, In School and Worldwide. With the online campus, students are assigned challenging activities, discussions and tailored resources to promote their own learning.

The average IB Diploma score of NAIS students was 33.5 points, compared with the 2015 global average of 29.9 points. One in three of the school’s graduates go on to attend one of the world’s top 100 universities.

In June, NAIS will become the first school in a partnership with the prestigious performing arts institution, The Juilliard School. The extensive curriculum begins with music and consists of a Julliard-curated repertoire comprising of 12 core categories to explore a range of genres, styles and cultures. As such, students will have access to Juilliard’s network of performers and teachers through workshops, classes and performances.

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Victoria Shanghai Academy Victoria Shanghai Academy (VSA), a private independent school for over 1,800 students, is the first “through-train” IB World School in Hong Kong to offer International Baccalaureate (IB) programs. The primary section runs a model of bilingual education (English and Putonghua) while the secondary curriculum is delivered in English and supplemented by a strong Chinese program.

Throughout the academic years, students organize and participate in a wide range of activities locally and globally, and programs are designed to broaden their horizons and to help develop a greater sense of social responsibility so that they can become internationally-minded individuals.

Activities are anchored on Creativity, Activity, Service (CAS) in various locations – students take part in Model United Nations debates and other international and cultural events such as those organized by the International Schools Theatre Association (ISTA).

Academically, in 2015 VSA students scored an average of

35.2 points in their IB examinations, including an “ace” of 45 points, and more than 20 percent of graduates obtained 40 or above. It was the school’s fourth consecutive year of achieving 100 percent pass rate among its graduates. Every year, VSA

graduates receive offers from prestigious institutions; most notable are Oxford University, University of Cambridge, UCLA and University of Toronto.

Yew Chung International School Yew Chung International School (YCIS) is a blend of Western and Eastern cultures, and students get to learn in an international, multicultural, and bilingual environment. The school is led by two co-principals, one of Western cultural background and another of Chinese decent, who work as a pair to create an atmosphere conducive to a deep understanding of cultural diversity, global awareness and to the development of linguistic skills in both English and Chinese among students.

Established in 1932, YCIS is accredited by the Council of International Schools (CIS) and New England Association of Schools and Colleges (NEASC); it is also an authorized Cambridge International Examinations Centre (CIE) and IB World School. Students in the IBDP are required to complete six subjects satisfactorily, plus Theory of Knowledge as well as the subject of Creativity, Activity & Service (CAS), and to submit an extended essay.

The school boasts a 100 percent university placement, with graduates attending schools in the US, UK, and Canada.

Graduates of the class of 2016 received an average of four offers of university admission.

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Through a multi-faceted co-curricular program (CCP) which allows students to develop new skills and interests and to build collaboration and teamwork in a “fun and

enriching” way, YCIS puts students in a variety of extracurricular activities for students in Years 2 to Year 13. The CCP is offered in two sessions per year, recently including choirs, orchestras and bands as well as productions of drama and musicals.

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