The Australian Chamber of Commerce Hong Kong and Macau
austcham news • Issue 196 | 2017 2 Get your Friends to Join AustCham and Win Two Qantas Tickets to Australia 6 Is Hong Kong’s Density, First-rate Transportation and Connectivity the Recipe for the World’s First Truly International Smart City? 16 Fintech: Top Priority for Hong Kong’s Banks 19 Making Hong Kong’s Listed Company Board’s Better 24 Members Spread Christmas Cheer
Is Hong Kong the perfect Future City? www.austcham.com.hk
AUSTRALIAN CHAMBER OF COMMERCE HONG KONG & MACAU Working with our members and partners for 30 years through advocacy, insight and engagement within the Hong Kong and Australian business community
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Referee please contact: Angus Perry Business Development Manager T: +852 2115 2052 E: firstname.lastname@example.org
he New Year is already upon us and we are looking forward to the promise of 2018. The spirit of Christmas was brought to life through the AustCham Giving Tree at our Christmas Mix on 14 December at the Hong Kong Club and we were pleased to donate all the gifts collected on the night to the children through our CSR partner this year, The Hub Hong Kong. Thank you to everyone who came to join our Christmas Mix. It marked a perfect epilogue to 2017 and the evening would not have been such a success without the support of our members, guests and our friends from AustCham South China. I was also glad to attend the AustCham South China Christmas Party on 8 December in Guangzhou, along with some of our Hong Kong members. Thank you to the AustCham South China team for hosting such a wonderful evening and I look forward for building a closer relationship with our friends across the border in the coming year. In fact, looking ahead to 2018, you can expect to see the Chamber putting its focus more on advocacy following our newly announced Greater Bay Committee. The committee will be working in collaboration with AustCham South China and planning is underway to have our first committee meeting early in the New Year. Earlier this month on 1 December we held our second annual AustCham Future of Transportation Forum where we were privileged to gain valuable insight from a range of speakers including the opening remarks by Mr Frank Chan, HK Secretary for Transport and Housing. The forum was a great success and a warm thank you to our hosts, HKT Formula E, and the event sponsors HKBN Enterprise Solutions and KPMG China for their support of the Chamber. In looking to the New Year, I am very excited and it is with great pleasure that I invite you to our Australia Day Luncheon to be held on 26 January at the Shangri-La featuring Stan Grant, well-known broadcaster and a very passionate speaker drawing on his indigenous heritage and identity. The day promises to be a fantastic celebration of Australia and an opportunity to come together after the Christmas period. On behalf of AustCham, I would like to extend to all members and their families, my best wishes for a Happy New Year and look forward to seeing you in 2018. Yours sincerely, Andrew Macintosh email@example.com
Chairman's Column austcham news issue 196 Cover Story Our Future as City-Dwellers Re-imagined
Is Hong Kong’s Density, First-rate Transportation and Connectivity the Recipe for the World’s First Truly International Smart City?
The Future of Transportation Forum 12
Hong Kong Focus Hong Kong Needs to Address 14 Business Mindset to Turn Digital Potential into Reality Industry Insights Fintech: Top Priority for Hong Kong’s Banks
Your Chamber's Voice
Committees in Action 20
Victorian Design Leaders Descend 22 on Hong Kong Community Engaged
Corporate Profile 25
On the Scene Telstra CEO: 23 Driving Change is Not Easy Members Spread Christmas Cheer 24
austcham news Online version
he year has drawn to a close with a particular emphasis on high level engagement with senior influencers in Hong Kong, Australia and the PRC. This extraordinary level of access is a reminder of the value the chamber brings – and of the opportunity we have to influence and engage. You can expect to see further focus on this in the next year. In the final quarter of 2017, we have seen the Prime Minister Malcolm Turnbull visit Hong Kong (as you know, the last time we had a sitting PM in Hong Kong was 1984) and we welcomed the Federal Leader of the Opposition Bill Shorten as keynote speaker at our 30th anniversary gala dinner. You will also remember we had our dynamic Consul General Michaela Browning address members about the Federal Government’s focus in Hong Kong and the region. Turning to the Hong Kong Government, we have been energised by the access we have had under the new administration which began with Chief Executive Carrie Lam opening our gala dinner. Since that time, we were honoured to have the Transport Secretary Frank Chan open our half-day Smart City/Transportation Forum and the Innovation Secretary Nicholas Yang spoke at a special breakfast we ran in conjunction with the Consul General on changes to data sharing provisions – a matter of concern to many of our members. We were particularly pleased to have the Financial Secretary Paul Chan address a roundtable meeting just two days into his budget consultation process. The discussion was wide ranging covering topics including
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Hong Kong’s tax structure, the Greater Bay Area and housing and land supply– all areas of interest to our members as well as high on the list of priorities under Mrs Lam’s administration. We would like to acknowledge Mrs Lam’s open and accessible leadership and are grateful for the opportunity to engage at the highest levels of Hong Kong Government. You will also read in this issue about a three-day delegation to Southern China which I was honoured to join, together with other international chambers, consuls general and the international media. This was led throughout by the PRC’s top man in Hong Kong, Commissioner Xie Feng and again we enjoyed extraordinary access, meeting the Governor of Guandong, the Vice Mayor of Zhuhai and the Head of the Communist Party in Shenzhen. At these meetings, on behalf of members, I sought more information about how we could participate in the Greater Bay vision, registering our interest in doing so and advising of the establishment of the Greater Bay committee. I will keep you informed as this unfolds. The delegation also took in visits to extraordinary start-ups and robotics companies in Shenzhen, the Shenzhen Stock Exchange and we walked along the Zhuhai-Macau-Hong Kong bridge, meeting the project manager who spoke with great pride about this worldleading development which was the result of international collaboration. I do hope you are celebrating the close of another fruitful year and we wish you the very best for a prosperous and healthy 2018. I look forward to keeping you informed on this high level engagement and what it means for you, our members. Jacinta Reddan, Chief Executive, AustCham
A Letter from Canberra
his year’s Parliamentary sitting year finished on a high note with marriage equality finally becoming a reality in Australia. As an advocate for marriage equality, I'm particularly delighted and very proud that the Australian Capital Territory recorded the highest ‘yes’ vote of any state or territory in Australia, with 74 percent. And my own electorate had the highest percentage of 'yes' voters in the ACT, with 74.1 percent, and the highest turnout at 83.2 percent. No one in the chamber could not have been moved by the significance and emotion of that now famous sitting day. All three public galleries were full to the brim with Australians anxious to see history in the making. Once the bill passed, House of Representatives members from both sides embraced, waved rainbow flags and in some cases cried. The public galleries erupted into song with the Bruce Woodley and Dobe Newton classic ‘I am Australian’. In my speech in support of the bill, I quoted the famous conservative US lawyer Ted Olson from half a century ago when he was challenging California's constitutional ban on same-sex marriage: “This fight shouldn't be considered a liberal issue or a conservative issue; it should be considered a matter of equal rights and equal dignity to individuals. People are not, do not choose to be gay. They are born with characteristics that cause their sexual orientation to be what it is. They deserve happiness and equality and dignity and respect and absence of discrimination in their lives the same as the rest of us do.” Now Australia joins with 25 other countries in support of equality and dignity for same sex Australians.
Published By: The Australian Chamber of Commerce in Hong Kong and Macau Room 301-302, 3/F, Lucky Building 39 Wellington Street, Central, Hong Kong Tel: +852 2522 5054 Email: firstname.lastname@example.org Editorial Committee: Jacinta Reddan Karen Wu Advertising: Karen Wu Email: email@example.com
CONNECT • ENGAGE • REPRESENT The Australian Chamber of Commerce in Hong Kong and Macau has more than 1,500 members from some 550 companies doing business here. It’s the largest Australian business grouping outside the country and the second largest of 28 International Chambers of Commerce in Hong Kong. The AustCham mission is: To promote & represent Australian business & values while enabling members to connect, engage & grow bilateral relationships. Disclaimer: The views expressed in this publication are not necessarily those of the Australian Chamber of Commerce in Hong Kong and Macau, its members or officers. The Australian Chamber of Commerce in Hong Kong and Macau takes no responsibility for the contents of any article or advertisement, makes no representation as to its accuracy or completeness, and expressly disclaims and liability for any loss however arising from or in reliance upon the whole or any part of this publication.
Now Australia has delivered for those thousands and thousands of Australians, many of whom are no longer with us, who have waited, who have fought for so long and so hard for marriage equality. Gai Brodtmann MP, Federal Member for Canberra and Shadow Assistant Minister for Cyber Security and Defence
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Our Future as City-Dwellers Re-imagined Social, economic and technological trends will combine to disrupt the way we move, creating new city by 2030.
o view a city from above is to observe a world in motion; mobility is the lifeblood of our cities and essential for urban life. Yet, our desire for mobility has consequences such as noise, congestion and pollution. Mobility is also a critical economic factor, both in its own right and as the means of providing the goods and services that are the foundation of economic life. However, seldom does the reality of what is available match the public’s aspirations for safe, clean, reliable, and affordable ways to travel.
on the horizon, and the increasing urbanization and the growth of “megacities” provide the conditions for change.
We believe, however, that the way people move around the urban environment is primed for dramatic change. Already, organizations such as Uber and Didi Chuxing, are changing traditional mobility patterns. Technological innovations in the form of electrification, connectivity, and autonomy are
The result is a radically different future based around three models of advanced urban mobility that are achievable by 2030. Inevitably, individual cities will make different decisions and go in different directions—and, globally, mobility systems in 2030 will on average look very much like they do today.
What, then, will be the future of urban mobility? A new report, an integrated perspective on the future of mobility, a collaboration between Bloomberg New Energy Finance and McKinsey, seeks to answer that question. To do so, it explores how a number of existing social, economic, and technological trends will work together to disrupt mobility at the local level.
Yet there is a cluster of some 50 urban areas that could lead the way toward one of the three advanced-mobility models. These areas have the potential to demonstrate the profound effects of mobility innovation on everything from power systems to the use of public space, while simultaneously introducing a new city dynamism. The value of an integrated perspective Numerous trends, ranging from energy decentralization to the Internet of Things, are likely to come together to create drastic changes in mobility systems over the next 10 to 15 years. Several key mobility trends—electrification, shared mobility, and autonomy—are poised to take off. The costs of a lithium-ion battery pack fell 65 percent from 2010 to 2015, and they are expected to drop below $100 per kilowatt-hour over the next decade. Car-sharing and ride-hailing services are already at work in hundreds of cities around the world, enabled by smartphones and substantial venture capital. Urbanization is also expected to increase average city density by 30 percent over the next 15 years, stretching existing systems as demand rises. Urban planners and residents are putting livability and sustainability higher on their agendas. Increased connectivity is opening the door to multiple shared-mobility options and could also help to smooth traffic flows. Each trend is significant, and their combined impact will prove to be truly powerful. For example, more shared mobility could boost electric-vehicle (EV) sales because shared vehicles are used more intensively, improving the economics of ownership. In turn, higher EV production could accelerate innovation and reduce the cost of batteries. That opens up applications in adjacent systems, such as distributed storage. And the plummeting cost of distributed power generation could improve the greenhouse-gas abatement potential of EVs, because they would charge more from low-carbon sources. In these and other cases, there is a powerful dynamic of mutual reinforcement at work. The future of mobility in three models By 2030, we expect a number of additional systems to be at the leading edge of the next phase of advanced mobility.
In broad terms, the best will combine shared mobility, autonomy, and electrification with integrated energy systems, public transport, and infrastructure. In specific terms, cities will navigate these possibilities differently. Local conditions—such as population density, wealth, the state of road and public-transit infrastructure, pollution and congestion levels, and local governance capabilities—will determine what changes occur, and how quickly. For the near future in cities leading the advance, we envision three mobility trajectories, with trends such as sharing, autonomous driving, and electrification. Each is suited to a specific type of metropolitan area, whether it be a dense developed city, a suburban sprawl, or an emerging metropolis. Clean and Shared. For cities that are experiencing rapid urbanization, yet suffer from congestion and poor air quality, the widespread use of self-driving cars may not be an option in the short or medium term. The approach most likely to apply is a shift to cleaner transport, in the form of EVs, while also limiting private car ownership, optimizing shared mobility, and expanding public transit. In conjunction with some connectivity and autonomy, traffic flows and safety could be enhanced. Private Autonomy. Development and commuting patterns have increased sprawl significantly in numerous cities, hence having a car is all but essential. That will likely remain the case for the foreseeable future. However, there are genuine costs to this way of life; congestion in Los Angeles costs the city an estimated $23 billion per year1. To do better, we envision consumers in these cities embracing new vehicle technologies, such as self-driving and electric vehicles. Connectivity could make it easier to implement demand-driven congestion charges, which could increase road capacity while limiting new construction. Car sharing and ride hailing could emerge as complementary options but would not replace the private car on a large scale. Seamless Mobility. This is the most radical departure from today’s reality. In the near term, it is likeliest to emerge in densely populated, high-income cities such as Chicago, Hong Kong, London, and Singapore. In this system, mobility is predominantly door to door and on demand, the boundaries among private, shared, and
INRIX National Traffic Scorecard Annual Report, Centre for Economics and Business Research and INRIX, 2013, inrix.com.
cont from P.7
public transport are blurred. Mobility is delivered through a combination of self-driving, shared vehicles, with highquality public transit as the backbone while EVâ€™s become far more common. All of this is enabled through the use of smart software platforms that manage multimodal traffic flows and deliver mobility as a service.
the possible cumulative societal benefits of each model until 2030: $2,800 per person for Clean and Shared, mostly in the form of improved safety; $3,300 for Private Autonomy (boosting 2030 GDP by 0.9 percent); and $7,400 per person for Seamless Mobility (boosting 2030 GDP by 3.9 percent).
To take full advantage of these benefits and avoid the pitfalls, the public and private sectors would need to work together, while city officials would need to be willing to reconsider how they conduct their own business. For example, sharing and autonomy could cannibalize publictransport systems, and cities may consider whether it makes sense to partially shift ownership to private sharedmobility providers. Governments may also want to rewrite fuel and power taxation and to use the opportunity of connectivity to revisit how infrastructure is priced.
Combined, these three models could apply to around 50 urban areas globallybut the majority of cities are expected to develop more incrementally. Cities are most prone to accelerated uptake based on a ranking of metrics, including income, population, government effectiveness, level of public-transit development, congestion, and pollution. Each model can deliver significant benefits, such as saving time, reducing congestion, and improving air quality. We quantified
These new mobility models will also require a number of sectors to do some hard thinking in order to find new opportunitiesâ€”and to avoid some major risks. In the power sector, for example, EVs could represent 3 percent of electricity demand globally, and nearly 4 percent in Europe, by 2030. Differentiated time-of-use rates and investments in charging infrastructure could help utilities to mitigate negative grid effects from EV charging. EVs could also play
In a seamless-mobility system, people would potentially travel more due its ease and low cost. However, the number of cars would likely remain the same or decline, due to the high level of sharing and significantly higher utilization. EVs could account for as many as two-thirds of vehicles on the road, while those capable of self-driving may exceed 40 percent.
a role in reducing curtailment as solar-photovoltaic and offshore-wind generation increase.
congestion. They need to think ahead, with regard to both replacing the possible loss of fuel-tax revenue and reviewing their connection with the private sector. Strong partnerships that make it easy to blend public transit and private mobility will likely produce the best solutions.
The future of the automotive could be fundamentally different from its past and may need to consider moving from using a pure product-ownership model toward providing a range of transportation services. For tech companies, the three mobility models offer a world of opportunity. As the use of connectivity and autonomy increases, so, too, does the need for sensors and software.
Why does this matter? Because getting mobility right could be a significant competitive advantage for cities. This shift can help clear the air of pollution and reduce traffic deaths. It is an opportunity to improve the quality of life—day in, day out—for billions of people.
Moving into the future
Source: Abstract taken from McKinsey & Company’s An integrated perspective on the future of mobility Report. This report was discussed at AustCham's Transportation Forum. For more on this topic, please visit https://solutions.mckinsey.com/ msd/future-of-mobilityinitiative/
The future is not set, and there is a strong role for the public and private sectors to help avoid pitfalls and potential negative outcomes. To best capture the benefits, Governments may want to anticipate these new mobility models by crafting regulations consistent with consumer-friendly technological developments that also promote larger public goals, such as clean air and reduced
Authors of the report: Eric Hannon, Colin McKerracher, Itamar Orlandi, and Surya Ramkumar from McKinsey & Company
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Is Hong Kong’s Density, First-rate Transportation and Connectivity the Recipe for the World’s First Truly International Smart City? - Peter Smith, Chair of AustCham Business Technology Committee
he second annual AustCham Future of Transportation Forum was held in conjunction with the return of Formula-E racing to Hong Kong. Holding the event at the trackside Media Venue certainly contributed to the buzz of the occasion, surrounded by pre-race construction noise and helicopters flying in low overhead. It was very encouraging to have more than 140 attendees and 20 media personnel, rise early on a Friday morning to join the 8:00 am kick off, and participate in the dialogue as to how Hong Kong can embrace the disruptive forces occurring in the transportation industry.
(Autonomous Driving, Connectivity, E-Mobility and Shared Mobility) as noted by Detlev Mohr, McKinsey Global Practice Leader in Transportation. There are enough indicators to suggest that Hong Kong is already a laggard in urban mobility when compared to other dense, developed cities worldwide.
Hong Kong is currently being challenged to deliver a truly integrated transport system that can support the urban mobility expectations of a burgeoning city. Important strategic and policy decisions will need to be made in the coming years for Hong Kong to remain a competitive and liveable international city.
The Greater Bay Area panel session explored Hong Kong’s central role in the Bay Area Transport Infrastructure Development (BATID) initiative. Creating a one hour Greater Bay Area living/ commuting circle with road, rail and water transport has the potential to fundamentally influence housing, social and cultural factors for both Hong Kong and PRC residents.
The forum agenda was expanded this year to incorporate the role that Hong Kong is expected to play in supporting the Greater Bay area initiative. We were delighted to have the involvement of key industry thought leaders covering all key stakeholders - academic, commercial, research and government.
My thanks to all the co-hosting chambers: American Chamber, British Chamber, Canadian Chamber, French Chamber, German Chamber and the European Chamber, together with the support of our major event partner FIA Formula E, for their active and strong support of the forum. There were almost six months of joint Chamber planning leading up to this forum and in the end has become a showcase in the value of collaboration occurring across the international community to deliver a united voice.
It is certainly the envy of many cities around the world that 90% of domestic passenger trips in Hong Kong are taken on public transport as mentioned in the opening speech by Mr Frank Chan, HK Secretary for Transport and Housing. This is clearly not a time however for complacency and selfcongratulation in Hong Kong. Transportation is experiencing four major vectors of change occurring simultaneously
Thanks also to the event sponsors HKBN Enterprise Solutions and KMPG China for their generous support. As an international community, let’s collectively drive Hong Kong’s embrace of an innovative transportation future!
1. HKSAR Secretary for Transport and Housing Frank Chan. 2. Julian Vella, AsPAC Regional Head - Global Infrastructure Advisory, Co-Head - China Infrastructure, KPMG. 3. Dr. Detlev Mohr, Senior Partner, McKinsey & Company Stuttgart office. 4. Steve Saxon, Partner, McKinsey & Company’s Shanghai office. 5. Lincoln Leong, Chief Executive Officer, MTR Corporation. 6. Andrew Pickford, Director, Infrastructure & Transport Advisory Services, MVA Hong Kong Ltd. 7. Francois Bancon, Vice President, Global Product and Programs of INFINITI Motor Company Limited. 8. Waltraut Ritter, Principal, Knowledge Dialogues. 9. Panel discussion on ‘Linking Hong Kong’s Transport Strategy to the Greater Bay Area initiative’, moderated by Dr. Hung Wing-tat, fellow of HK Society of Transportation Studies & Chartered Institute of Logistics and Transport (first one on left). 10. AustCham’s Sustainability Committee Vice-Chair Helen Cochrane, Chief Executive Jacinta Reddan, HKSAR Secretary for Transport and Housing Frank Chan and Forum moderator David Ketchum, CEO of Current Asia. 11. Panel discussion on ‘The key innovations in the transport and energy industries’.
The Future of Transportation Forum
he half-day forum held just before the opening event of the Formula E season â€“ The HKT Hong Kong E-Prix on 1 December. Industry experts gathered to share insights and trends on the future of transportation. After the event, participants also have a chance to join for a sneak preview tour to the pit lane and a Michelin workshop. Thank you our event sponsors:
Major event partner:
Hong Kong Focus
Hong Kong Needs to Address Business Mindset to Turn Digital Potential into Reality
he Economist Intelligence Unit (EIU) recently released a global research project commissioned by AustCham Platinum Patron Telstra, which assesses the confidence of business executives in their city’s environment and its conduciveness to supporting the digital ambitions of companies. Hong Kong ranks 37th for overall business confidence. The ‘Connecting Commerce’ report includes the first ever Digital Cities Barometer, a ranking of 45 cities around the world across five key categories relevant to business performance: innovation and entrepreneurship; the financial environment; people and skills; development of new technologies; and ICT infrastructure. The report reveals strong business confidence in the world’s emerging economies, with Bangalore topping the Barometer across all five categories. Of the top 10, seven cities are from developing Asian countries. Darrin Webb, Telstra’s Managing Director for North Asia, said the report shows a contrast between the perception of Hong Kong’s executives and the reality of the city’s environment. “Hong Kong performed well in the Asian Digital Transformation Index we commissioned from the EIU in 2016. This Index included objective measures across digital infrastructure, human capital and industry connectedness. Whilst last year found Hong Kong’s digital transformation readiness to be good, this year’s results show there is some doubt amongst senior executives when it comes to Hong Kong’s ability to support the digital ambitions of business,” said Mr Webb.
“Hong Kong is a global financial hub with a burgeoning start-up ecosystem and there is a real opportunity for it to become a leading technology and innovation centre. What is needed for the city to achieve this potential is for an aligned commitment across business, government and communities to address the divide between reality and perception and show that Hong Kong is taking tangible steps towards this goal and fulfilling its true potential,” said Mr Webb. The Digital Cities Barometer — Hong Kong results Score (out of 10)
Rank (out of 45)
Innovation & entrepreneurship
Supply of people and skills
Development of new technologies
Key findings: Hong Kong’s executives rank skills shortages and limited funding for investment as the toughest challenges for their business transformation at 36 per cent. While both are in line with the global results, the skills challenge is particularly tough in Osaka, Bangkok and Bangalore, where it is cited by 40 per cent or more of each city’s executives. Fifty-nine per cent of Hong Kong’s executives believe the city’s educational institutions are ‘generally effective’ or ‘very effective’ in preparing people with the right digital skills. More than one-fifth of executives in cities with strong technology innovation reputations, such as Stockholm and Seoul, rate their local institutions as ineffective on this count. Hong Kong’s executives name government programs and events as the most helpful local resource for digital advice and support at 39 per cent. In China, over 40 per cent of executives value innovation labs and centres, whilst European and American cities see business associations and events as important resources. Hong Kong’s executives name digital security skills (31 per cent) and business networking skills (27 per cent) as the most needed for digital success. Digital security is the most in demand skill globally at 30 per cent, big data analysis ranks second at 24 per cent.
Hong Kong’s executives see their main sources of financial assistance to be from banks or other financial institutions (42 per cent) and government programs (29 per cent). Both are in line with global sentiment with financial institutions at 37 per cent and government programs at 32 per cent. Globally, 48 per cent of surveyed executives said their firm has considered relocating their operations to a city with a more favourable external environment. Respondents in Asian cities are most likely to consider moving (53 per cent), while nearly half in US and Australian cities say the same. “Organisations today have numerous options – both domestically and internationally – as to where they base their business operations. This report makes an important contribution to exploring what support executives need to digitally transform their business and thrive in a connected world” said Mr Webb. About Connecting Commerce Connecting Commerce is a research-led programme from The Economist Intelligence Unit, commissioned by Telstra, provides in-depth analysis of the environment for digital transformation in 45 cities and 11 industries, based on a survey of 2,620 executives conducted in June and July 2017. The full report can be found at http://connectedfuture.economist.com.
Business confidence in the digital environment
The Digital Cities Barometer
Fintech: Top Priority for Hong Kong’s Banks
intech seen as a key priority for Hong Kong’s banking sector, while the outlook for 2018 continues to look robust, finds KPMG report.
The report highlights that a stabilising market environment in 2017 and a number of upcoming opportunities, particularly for fintech, is set to provide a strong foundation for Hong Kong’s banks.
fintech firms is expected in 2018, as banks continue to seek to digitise and adopt advanced technologies to improve their product and service offerings and increase efficiency, KPMG forecasts.
Paul McSheaffrey, Partner, Head of Banking and Capital Markets, Hong Kong, KPMG China, says: “2018 will be the year where fintech goes mainstream in Hong Kong. We appear to have reached a tipping point where the adoption of fintech and other technologies across all aspects of banking has become a priority issue on the boardroom and executive committee agenda. This trend is likely to drive the industry towards making a step change in the adoption of fintech in the next 12 months.”
There are a number of positive initiatives and developments in 2018, the report highlights. These include a single point of entry for piloting trials of fintech products by linking the sandboxes between Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority; the emergence of open banking is expected to further promote innovation and collaboration between banks and fintech firms. Banks are also assessing the use of robotics to automate processes, streamline operations and increase efficiency, primarily throughout their back and middle office functions.
Closer collaboration between financial institutions and
Highlights from the report: - Stabilising market environment in 2017 and a number of upcoming opportunities, particularly for fintech, is set to provide a strong foundation for Hong Kong’s banks - 2018 will be the year where fintech goes mainstream in Hong Kong. We appear to have reached a tipping point where the adoption of fintech and other technologies across all aspects of banking has become a priority issue on the boardroom and executive committee agenda - Closer collaboration between financial institutions and fintech firms is expected in 2018, as banks continue to seek to digitise and adopt advanced technologies to improve their product and service offerings and increase efficiency - Emergence of open banking is expected to further promote innovation and collaboration between banks and fintech firms
McSheaffrey adds: “A key focus for banks in 2018 will be on developing their people and talent programmes to attract and retain the right skills. We are starting to see banks set up digital communities and help their teams understand the intricacies and benefits of working alongside a bot.” Regulatory and compliance remains a key priority for banks, with an emphasis on implementation. Challenges and concerns facing banks in Hong Kong in the year ahead include cybercrime, anti-money laundering (AML) and counter-terrorist financing, conduct and culture risks. It is expected that banks will increasingly apply technology to tackle these issues, manage costs more effectively and maximise revenue generating opportunities.
The full report can be found at: https://home.kpmg.com/cn/en/home/ insights/2017/12/hong-kong-bankingoutlook-2018.html
- Banks are also assessing the use of robotics to automate processes, streamline operations and increase efficiency, primarily throughout their back and middle office functions - Developing their people and talent programmes to attract and retain the right skills will be key for Hong Kong banks in 2018. We are starting to see banks set up digital communities and help their teams understand the intricacies and benefits of working alongside a bot - Challenges and concerns facing banks in Hong Kong in the year ahead include cybercrime, anti-money laundering (AML) and counter-terrorist financing, conduct and culture risks. It is expected that banks will increasingly apply technology to tackle these issues, manage costs more effectively and maximise revenue generating opportunities
Your Chamber's Voice AustCham@IBC
he International Business Committee (IBC) members met at a lunch reception hosted by the Chief Secretary for Administration in late November.
Established in 1989, the IBC provides a forum for discussion between the Government and international business representatives on matters affecting the business environment and perceptions of Hong Kong. It comprises leaders of the major international chambers of commerce and business organisations who meet regularly with the Chief Secretary and other senior Hong Kong Government officials.
AustCham Explores Greater Bay Opportunity
ustCham Chief Executive Jacinta Reddan joined a special three-day tour of Southern China taking in the Hong Kong -Zhuhai - Macau bridge, the Shenzhen Stock Exchange, innovative robotics companies in China’s “Silicon Valley” and Zhuhai. The delegation of international chambers, consul-generals and media was led by The Commissioner of The Ministry of Foreign Affairs of PRC in HKSAR, Mr. Xie Feng, who provided extraordinary access to government leaders in the region. The trip follows the recent announcement by AustCham Chairman Andrew Macintosh of the establishment of the China Greater Bay Committee.
Roundtable Discussion with the Financial Secretary
inancial Secretary of the HKSAR, Mr Paul Chan recently shared his plans for social and economic reforms in Hong Kong with AustCham members at an exclusive roundtable discussion.
Making Hong Kong’s listed company board’s better
ustCham calls for stronger governance and greater diversity on the boards of Hong Kong listed companies. Read our submission to the Hong Kong Exchanges and Clearing Limited on these important matters (including “overboarding” of directors, related parties and the need for more women on boards) http://bit.ly/2iZhfkO. Our Women in Business Network (WIBN) has also made a submission focusing on board diversity.
Hong Kong as an International Data Hub – Vision and Challenges
an Hong Kong achieve its vision to become a regional data hub? AustCham invited Secretary for Innovation and Technology of HKSAR, Mr Nicholas Yang, to share with members on the opportunities and challenges for data-rich businesses, Government plans, as well as to address issues around data sharing provisions between Hong Kong and mainland China. This is the first opportunity the business community has had to better understand the changes to the data sharing provisions made in June amendments to CEPA and is of interest to all businesses concerned about data storage and cyber-security. Thank you to the Australian Consulate-General Hong Kong, venue sponsor Herbert Smith Freehills, co-hosting chambers and Australian Consul-General Ms. Michaela Browning, for moderating the session on the day.
Committees in Action AustCham Technology and Business Program
he highly sought-after Women in Business Network (WIBN) program is now in its second series. The program aims to increase knowledge of our members on the threats and opportunities posed by disruptive technologies, to upskill in particular technologies, and to help close the gender technology gap and empower everyone to deliver innovative solutions. 20
Don't miss the next WiBN Technology session on Blockchain - "What are the Opportunities & Impacts of Distributed Ledge Technology" which will explore the many facets of the technology that has taken over headlines in recent months. Session 6 - Blockchain: 23 January, 6.15pm at Innovation Lab, Commonwealth Bank of Australia, 13/F, One Exchange Square
Women in Business Network sponsors:
Session 1 An Introduction to the new technologies shaping our world Business innovator Liam Gilligan gave an overview of the key disruptive technologies and how companies and individuals are preparing for and embracing rapid disruption.
Session 2 Artificial Intelligence â€“ How AI works and how it is being applied today Leonie Valentine from Google Hong Kong gave an introduction to AI and illustrate how it is being applied and affecting our daily work and life today.
Session 3 Tour to Cyberport A tour to visit the flagship for Hong Kong’s digital tech industry. After the tour, we also invited women entrepreneurs from some of the best startups in Cyberport to share with participants their stories of success.
Session 4 Technology, Connectivity and Creativity – how internet of things evolve and heading to in the near future? Michelle Chan from HKT shared on how the Internet of Things has evolved along her career, working in different roles and companies within telecoms sector.
Session 5 What is big data and why should I care? Koen Klein Tank and Flora Leung from KPMG walked us through what is Big Data and its impact on our daily lives through examples, videos and demonstrations.
The Expert's View of Content Marketing
n Inspiring session on what makes an effective content marketing campaign hosted by AustCham’s Marketing and Media Network at Frites Central. Thank you to panelists Daniella Tonetto of St. Regis Macao, Bill McQueen of Lime Content Studios, Melissa Brown of Telstra and moderator Guy Parsonage of PwC Experience Centre, who shared with us the successful metrics behind the scene and tips to create your own content marketing campaign. Network sponsors:
Minister for Creative Industries Martin Foley with the Victorian delegates.
Victorian Design Leaders Descend on Hong Kong Spotlight to Shine in Melbourne next year A delegation of more than 50 Victorian design leaders attended one of the world’s most prestigious design events – Hong Kong Business of Design Week. Minister for Creative Industries Martin Foley said Hong Kong Business of Design Week was a celebration of the latest design innovations from around the world – attracting more than 100,000 people. Organised by Hong Kong Design Centre (HKDC), the 16th edition of this landmark international summit was held earlier in December at HKCEC. The week includes conferences, expos, forums and events that bring together some of the world’s most outstanding design masters and influential business figures to showcase their work and identify new business opportunities. The Victorian Government-led delegation is made up of architects, games developers, design industry bodies, universities and designers working across graphic, fashion, interior and industrial design. The visit provided a platform for local businesses to promote their products and services and find new global business opportunities. Minister Foley spoke at the closing event where he gave a preview of Melbourne’s plans for Design Week in 2018.
Under the theme ‘Melbourne: Think. Collaborate. Create.’ – next year’s event will provide a major global platform to showcase the strength of Victoria’s design industry, local businesses, products and talent.
Victorian designers are world-class and this has been a terrific opportunity for a local delegation to share their stories and ideas, and make important international connections.” – Minister for Creative Industries Martin Foley Victoria has spearheaded delegations to Hong Kong Business of Design Week since 2014 to generate new business, find new suppliers, tap into Asian distributor networks and explore the potential to set up regional offices. The Andrews Labor Government is investing $115 million over four years through the Creative State strategy – the largest and most comprehensive investment by any government in the creativity of Victorians. Victoria’s design industry currently generates more than $5 billion for the state economy each year including $400 million in exports.
Community Engaged Seasons of Giving
ur Christmas Mix was a fantastic night and to celebrate the season of giving we again partnered with The Hub who provides educational support, counselling and wellbeing services to under-privileged children. A big thank you to everyone who bought gifts on the night to make Christmas a special time for those less fortunate and also to those who participated in the raffle at our 30th Anniversary Gala Dinner from which money was donated to The Hub to fund several of their programs for 2018.
Following the Christmas Mix, AYE Chair Alex Oxford and AustChamâ€™s Angus Perry visited The Hub to help give the presents to the children of The Hub and see first-hand the difference it made.
k Than ! You
Peoplebank Hong Kong Limited 1808, 18F Nan Fung Tower, 88 Connaught Road, Central www.peoplebank.com.hk Peoplebank is a specialist IT recruitment firm that provides permanent, contracting recruitment and payroll services. We cover junior to executive level recruitment in technology across multiple industries. We have offices covering Hong Kong, Singapore, and across Australia. What are the main skills of your job? As a General Manager, this means I need to not only lead, but I also need to provide support and advice to all the internal staff including sales, and back office. As the company is extremely sales oriented, business development and client relationships is still an important role in my job. What does your company do really well? We pride ourselves as specialists in IT recruitment. As we are not generalists, we have in depth market and talent knowledge across the different industries with hiring needs in technology. What is the vision of your company in 10 years? The demand of IT professionals supply is steadily increasing globally, and whilst we have a strong presence in Asia Pacific and we are one of leading technology recruitment companies in Australia, we would like to expand our presence to a worldwide level. What’s something most people don’t know about your company? We have been the Employer of Choice for Gender Equality for the 6th consecutive year!
Annie Cheung General Manager, Peoplebank Hong Kong Branch
What’s your company’s connection to Australia? Peoplebank was founded in Australia and continues to be one of the leading IT&T recruitment firms nationwide. How would you describe your workplace and colleagues? Whilst I joined in early 2016, many of my colleagues have been working with Peoplebank for over 5 years. Everyone is very friendly and always offers support to each other. I can say all of us have a very strong mindset of teamwork while we work closely as a community. What’s your favourite place to go on the week-end? I love going to the spa and pampering myself to relieve any stress or achiness from the work week.
On the Scene
Telstra CEO: Driving Change is Not Easy
elstra CEO Andy Penn told a packed AustCham breakfast of the organisation’s commitment to diversity - as well as to Asia. "Why Diversity and Inclusion Matters” (5 December), Mr Penn shared his experiences leading an organisation that continues to challenge traditional hiring and employment practices by building diversity and inclusion and holding itself to account by measuring outcomes. From addressing gender pay gap issues to requiring a minimum of 50% female representation on recruitment shortlists, he also shared how Telstra is making a difference for women in the workforce in Australia and the opportunities for Male Champions of Change in Asia.
EVENTS UPDATE JANUARY 2018 AT A GLANCE… Wed, 10 January, 12:00nn – 2:00pm THE YEAR AHEAD - From Market Highs to Regional Security Concerns: Just What Does 2018 Hold? Victoria Suite, The Hong Kong Club, 1 Jackson Road, Central
Tue, 23 January, 6:15pm – 8:30pm AustCham Technology and Business Program - Series II S6: Blockchain - what are the opportunities & impacts of distributed ledger technology? Innovation Lab, Commonwealth Bank of Australia, 13/F, One Exchange Square, 8 Connaught Place, Central
Wed, 10 January, 6:15pm – 8:30pm AustCham UOW Mentor Programme: Sustainability Panel Discussion Meeting Room, KPMG, 8/F, Prince’s Building, 10 Chater Road, Central
Fri, 26 January, 12:00nn until late Australia Day Lunch Ballroom, 5/F, Island Shangri-La Hong Kong, Pacific Place, Supreme Court Road, Central
Wed, 17 January, 8:00am – 9:30am Central Harbourfront Site 3: The New Face of Hong Kong's Skyline - InterCham Panel Discussion Penthouse, 48th Floor, Jardine House, 1 Connaught Place, Central
Wed, 31 January, 12:00nn – 2:00pm How do Consumers Make Decisions? Boardroom, Commonwealth Bank of Australia, 13/F, One Exchange Square, 8 Connaught Place, Central
Members Spread Christmas Cheer
ustCham members celebrated the Christmas spirit at this year's annual Christmas Mix which was held at the Hong Kong Club.
Special guests included founding member Ian Robinson, three past AustCham chief executives and current and past board directors.
Christmas Mix at Six photo coverage
Congratulations to All the Lucky Draw Winners! Thank you to our venue partner Hong Kong Club, lucky draw prize sponsors:
Published on Dec 22, 2017