Britain in Hong Kong July/August 2013

Britain

IN HONG KONG July/August 2013

Vol 28

No 6

www.britcham.com

Not For Sale

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Family Business Succession Planning: Where do I start?

26

What Can Business Really Expect from Hong Kong’s Competition Law?

30

Sri Lanka

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13年5月24日 下午7:27

Britain in Hong Kong

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Contents

How Can We Manage both the High Achievers and the Low Performers?

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6

i-Spy The Increasing Vulnerability of Digital Data

Lifestyle: Sri Lanka

5 Chairman’s Message

24 YNetwork ‘Head of the Table’

6 I-Spy

26 What Can Business Really Expect from Hong Kong’s Competition Law?

8 Asia Supply Chain Insights 10 Family Business Succession Planning: Where do I start?

12 How Can We Manage both the High Achievers and the Low Performers?

14 Hong Kong Maternity Insurance; Waiting Periods and Your Pregnancy 16 The Growing Case for B2B Businesses to Go Digital 18 Report on the British Chamber of Commerce CSR Presentation

28 British Chamber of Commerce’s 25th Anniversary Gala Dinner 30 Lifestyle: Sri Lanka 32 Member Discounts 34 Member Get Member 2013 36 News & New Appointments 37 New Members 38 Sterling Members 39 Shaken Not Stirred

20 Maintaining Standards – An Interview with David Horlock

Britain in Hong Kong Editor Sam Powney Design Winnie Li Lilian Yu Ken Ng Advertising Contact Charles Zimmerman Project Management Vincent Foe

Jointly Published by Speedflex Medianet Ltd and The British Chamber of Commerce in Hong Kong 1/F, Hua Qin International Building 340 Queen’s Road Central, Hong Kong Tel: 2542 2780 Fax: 2542 3733 Email: info@speedflex.com.hk Editorial: sam.powney@speedflex.com.hk Advertising: charles@speedflex.com.hk

British Chamber of Commerce Secretariat Executive Director CJA Hammerbeck CB, CBE General Manager Cynthia Wang Marketing and Communications Manager Emily Ferrary Special Events Manager Stephanie Rose Events Executive Mandy Cheng Business Development Manager Phillippa Cook

Membership Executive Lucy Jenkins Accountant Michelle Cheung Executive Assistant Jessie Yip Secretary Yammie Yuen Office Assistant Sam Chan

Room 1201, Emperor Group Centre, 288 Hennessy Road, Wanchai Tel: 2824 2211 Fax: 2824 1333 Website: www.britcham.com

© All published material is copyright protected. Permission in writing from the Publishers must be obtained for the reproduction of the contents, whole or in part. The opinions expressed in this publication are not necessarily the opinions of the Publishers. The Publishers assume no responsibility for investment or legal advice contained herein.

Britain in Hong Kong

Chairman’s

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Message My aunt and uncle used to take their summer holiday in the same two weeks in July every year. They would go to the same hotel in the West of England and book exactly the same room; every year for more than 40 years. Of course they claimed they liked going on holiday “for a change of scene”.

People claim to like change in business too – the business school mantra is that change is the one thing that doesn’t change. But as in my aunt’s holiday plans, most businesses don’t change much. A new car model has slightly more rounded corners; the hotel redesign has a different shade of silk, the chef piles the shredded vegetable on the sushi on the new menu at an excitingly oblique angle. Big businesses, indeed all big organisations, find change really really hard. Too many people are personally invested in the status quo and repel really new ideas like anti-bodies fighting an infection. This is why innovation usually arises elsewhere. SMEs are a more likely source perhaps. But even SMEs can get comfortable. Indeed sometimes the reason they are still SMEs is because of that. Being small isn’t enough to have the will or desire to innovate. If you’re a start-up however, the business challenge is to be new, not “same old”. Otherwise, what’s the point? On the business news pages of the media, start-ups probably get the least coverage of any segment, except perhaps in technology. This is odd since innovation is where the real value added in the community tends to happen, not in a Central banker’s “policy response”.

In this context, the Chamber’s own “innovation” has been to establish our Start-Up category of membership. Its success has been very pleasing, with over 60 members in that segment already. The survival rate for start-ups is much lower than for larger established businesses of course. This is as it should be, since the trial and error that defines this sector is bound to have a lot of “error”. The Chamber is however pleased to be able to help start-ups with many of the areas where they can find it hard to find their own way alone, where they don’t have the critical mass larger outfits do. In this way, the Chamber tries to ensure that it provide services across the spectrum of business from the very largest to the very newest. If you’re a start-up member and see gaps in what we do as a Chamber for you, do please let us know.

Nick Sallnow-Smith

Chairs of Specialist Committees Business Angel Programme Neil Orvay Asia Spa & Wellness Limited

Environment Committee Anne Kerr Mott MacDonald Hong Kong Limited

Logistics Committee Mark Millar M Power Associates

Small & Medium Enterprises Committee Viktoria Kish International Study Programmes

Business Policy Unit Tim Peirson-Smith Executive Counsel

Financial Markets Committee Richard Winter Quam Limited

Marketing & Communications Committee Adam O’Conor Ogilvy & Mather Group

Strategic Supply Chain Forum Dominic Jephcott Vendigital Limited

China Committee Tim Summers

HR Advisory Group Brian Renwick Boyden Search Global Executive

Real Estate Committee Jeremy Sheldon Jones Lang LaSalle

Women in Business Committee Sheila Dickinson The Fry Group

ICT IT Committee Craig Armstrong Standard Chartered

Scottish Business Group John Bruce Hill & Associates

YNetwork Committee Alison Asome

Construction Industry Group Derek Smyth Gammon Construction Education Committee Stephen Eno Baker & McKenzie

C ove r S t o r y

i-Spy The Increasing Vulnerability of Digital Data

Sam Powney, Editor, Speedflex Asia Limited

If Edward Snowden’s brief stay in Hong Kong has made

routers, to the cloud is facing a crisis of confidence that

an impact here, it is probably in bringing home to people

could have far reaching impact. Trust is the basis of all

the profound and immediate importance of cyber

commerce and the rapid realization that companies such

espionage and surveillance. Despite Hong Kong’s

as ATT, Sprint, Google, Yahoo, Microsoft, and Apple are

obvious role as an information hub and its frequent

actively assisting the NSA in their unrelenting quest to

portrayal in spy movies, in the real world the city often

know everything could be the beginning of the end for

seems largely oblivious to the world of the dark arts. The

US dominance in technology.’

NSA revelations, particularly those related to Chinese University, could be instrumental in changing the city’s

Stiennon’s gloom seems more than a little exaggerated;

laissez-faire attitude towards information security.

information sharing between companies and governments is hardly news to most people in the business community.

For businesses, perhaps the most interesting revelation

However, the increasingly IT propinquity between

is that while the Silicon Valley giants claimed to be

businesses and governments may be a cause of alarm,

cooperating with the PRISM programme under

especially for those companies who genuinely define

government orders, there is also a separate channel for

themselves as multinationals. This uncomfortable

US businesses to share information with the NSA on a

proximity undermines one of the pillars of the free market,

voluntary basis and presumably gain some useful

yet the dangers of cyberspace seem to make it

information in return. Writing in Forbes Magazine, IT

unavoidable. Western businesses have been complaining

specialist Richard Stiennon views the NSA revelations in

about Chinese ‘hoover tactics’ in cyber espionage for the

almost apocalyptic terms, ‘The dream is over. The era

last decade, but it now appears that many countries are

of US tech dominance in everything from servers, to

guilty of the same approach. In a recent report to the

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BBC, Sir Iain Lobban, director of GCHQ, said foreign

specialist who handed over sensitive information to the

hackers were stealing business secrets on an industrial

US government. Crucially, in both cases someone who

scale, targeting information such as design documents:

had been in the organisation for a very short time was given access to high-level and highly sensitive

“People are going after intellectual property and then

information. Businesses too must treat their new hires

seeking to translate it into national gain. We started a

carefully, and should only give trusted, long-term

couple of years ago thinking this was going to be very

employees access to sensitive information. This is

much about the defence sector but really it’s any

particularly difficult in the case of IT specialists, who can

intellectual property that can be harvested.”

be difficult to attract and retain in a very competitive market. Secondly, it has become clear that in the case

Nor do threats to cyber-security come from governments

of the US government, too many people had access to

alone. IT experts and consultants are increasingly

confidential information. Cloud computing and mobile

warning that a successful cyber attack can sink a

communications make this particularly challenging for

company quickly and sometimes silently, especially if a

modern businesses, but the principle remains the same:

competitor learns secrets of strategic value. Whether

with secrets, keep the circle small.

through hacking, phishing, spoofing, pharming or phreaking, a company’s most treasured secrets can be

Thirdly, gathering too much of your own data comes with

gained quickly and remotely if a rigorous IT security

its own problems; there is a strong temptation for any

regime is not employed. Not only can information security

organisation to gather more information than it can really

be crucial in preventing snooping by a competitor, it is

process. In fact, an untargeted approach to data can

now seen as practically mandatory by governments and

slow progress and de-motivate those who have to

business partners. The Inter national Standards

plough through it. Finally, when people are hiding their

Organisation’s ISO 27001 seeks to make information

mobile phones in fridges to avoid the recording of

security (digital, hand-written and oral) integral to a

conversations (as happened here in Hong Kong only a

company’s reputation. The BSI sums up this standard:

few weeks ago), it might be time to think about ways of

‘Information security management gives you the freedom

keeping the most sensitive information free from digital

to grow, innovate and broaden your customer-base in

technology altogether.

the knowledge that all your confidential information will remain that way.’

On the other hand, the increased use of electronic espionage opens up another arena for corporate

The tenor of ISO 27001 implies that information security

strategy: the increasing use of deliberate disinformation.

must be deeply embedded in a company’s working

One of the laws of conflict is that a truly proactive

culture, and, if it shares any important information with

defence is always offensive. In a world of information

partner companies, in their cultures too. As sophisticated

security and cyber attacks, it is possible that Sun Tzu

hacking techniques become more widespread,

really has become relevant in the boardroom: ‘Hence,

companies increasingly have to weigh up the pros and

when able to attack, we must seem unable; when using

cons of hiring outside consultants to take care of

our forces, we must seem inactive; when we are near,

information security or building up a resilient IT security

we must make the enemy believe we are far away; when

capability at their core. As with Human Resources, IT

far away, we must make him believe we are near.’ In

security is often outsourced, but the decision to avoid

future, business information systems may rely on keeping

internal development of a key process inevitably has

confidential information secret while planting fake

long-term ramifications for a company’s performance.

information just within reach of hackers and leakers.

As it happens, the NSA leak can give businesses a few

In the aftermath of the NSA revelations, one US comedy

common-sense insights into the nature of information

show ran a news segment entitled ‘Congratulations,

security. First of all, people are the most important

you’re not paranoid.’ The most evident result of the NSA

resource. The management and technology contractor

story, especially in light of its Hong Kong connection, is

Booz Allen Hamilton evidently employed the wrong

that anyone caught napping has been sharply brought

person (from their point of view) in Edward Snowden; on

up to speed on the motives and methods of 21st century

the other side of the fence, Wikileaks was severely

cyber-espionage. Life just became a little more

compromised several years ago by an Icelandic IT

Machiavellian.

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Business

Asia Supply Chain Insights

Mark Millar, Logistics Committee Chairman

As the traditional strongholds of consumerism—the developed Western markets of Europe and the United States—suffer from a range of economic woes, consumption growth is slowing down, causing revenue and profitability challenges for multinational corporations (MNCs). As a result, companies are increasingly looking to Asia for market expansion, revenue growth, and increased profits.

It is easy to generalise and consider Asia to be one market, but in fact Asia is a collection of very different markets that vary widely, especially when it comes to the maturity of their logistics networks and supply chain ecosystems. As growth shifts to Asia, companies often experience significant supply chain challenges as they venture into new territories and consequently seek informed and independent insights to help them navigate the complex landscape.

Exciting Consumer Market Potential The Organisation for Economic Co-Operation and Development estimates that, globally, the size of the middle class (defined by the Economist Intelligence Unit as those who can afford to spend money on non-essential items) will increase from 1.8 billion people in 2010 to 4.9 billion

by 2030. Asia will deliver 85 per cent of this growth, with spending by the region’s middle class expected to account for almost two-thirds of middle class spending globally.

At the same time, urbanisation is accelerating—China is forecast to create more than 200 new cities with a population greater than 1 million people by 2025.

Projections also predict that in the next decade some 500 million people in Asia will have access to electricity in their homes for the first time, which will drive exponential increases in demand for a whole range of consumer household products.

Demand for fast-moving consumer goods (FMCG) is also forecast to rise, with PwC reporting that spending on soaps and cleaners in China and India should continue to grow at over 15 per cent per annum. But as MNCs rush to capitalise on this consumer market potential, they may discover that the most attractive markets are also likely to have challenging logistics environments.

A key factor for businesses to consider – for their logistics and distribution activities – is whether they will be best served by a global 3PL or a local service provider. There is no one-size-fits-all solution. In making their decision, companies must evaluate a number of factors including local market knowledge, sector specific expertise, information technology systems, international best practices – and of course price.

Britain in Hong Kong

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The Impact of China’s Economic Shifts

Logistics Challenges throughout Asia

The region’s largest market, China, is experiencing shifts in its economy. International companies initially came to China to capitalise on an abundant supply of low-cost labour and incentives to establish operations in Special Economic Zones. In addition, they are now just as interested in the opportunity to sell products to the huge and rapidly expanding Chinese consumer market. As the Economist noted, “Foreign firms that came for the workers will stay for the shoppers.”

The complex, fragmented and inefficient nature of the logistics sector can present many challenges for those doing business in Asia. The region’s dynamic economies span developing, developed and emerging markets – all at different stages of maturity and sophistication. The nuances can be difficult to read and expensive to ignore.

Migrant workers, who moved to the coastal areas to work in the factories, are increasingly returning to their provinces as more work becomes available inland. As they do, the lower cost of living in rural areas results in greater spending power, driving domestic consumption in third- and fourthtier cities.

For consumer goods companies, the logistics emphasis is just as much on distributing goods throughout the domestic Chinese market, as it is on transporting products from factories to coastal ports for ocean freight exports to the EU and the US. Increasingly, these rapidly expanding consumer markets are being established and opened up around the Asia region, notably in India, Vietnam and Indonesia.

Alternative Production Locations As businesses pursue their China-plus-one strategies – usually seeking additional, rather then purely alternative low cost manufacturing sources - there are several options to explore – particularly India, Vietnam and Indonesia. But each alternative option has its own supply chain challenges.

Companies considering manufacturing in alternative locations should consider the maturity and capability of their chosen market and assess the supply chain challenges they may face, including three critical aspects: • The regulatory environment, including bureaucracy and administrative overheads, and its implications—for example, India’s state-level tax system often leads to operating multiple distribution centres across different states.

• Infrastructure – in many Asian markets the transportation infrastructure is underdeveloped which can lead to damage and delays resulting in costly inefficiencies in the supply chain.

• Talent shortages—more than 70 per cent of businesses are now affected by the industry’s ongoing skills shortage, according to the Logistics Executive 2012 Employment Market Survey Report.

The top three key challenges for MNCs are likely to be infrastructure, bureaucracy and talent. Companies also need to deal with multi modal distribution into the hinterland regions, for which they will need partners with local market knowledge. Different consumer markets may also require product localisation, adding an extra layer of complexity to supply chain operations.

Additionally, Asia’s diverse geographies – for example the massive land masses of China and India, or the substantial archipelagoes of Indonesia and the Philippines – together with the heavy traffic congestion in major cities, all add to the complexity of logistics operations, impacting supply chain effectiveness and efficiency.

Conclusion There are huge opportunities in Asia as the middle classes grow exponentially, demand for consumer products increases, and spending on non-essential goods grows, including throughout the region’s second- and third-tier cities.

But on top of Asia’s geographic, economic, and political complexity, there are significant supply chain challenges resulting from developing regulatory environments, inadequate infrastructure, and talent shortages.

However, with informed insights and the right business partners together providing deeper understanding about the region, businesses can benefit from both production and consumption opportunities in Asia – and ensure that they are in a position to capitalise on that growth during what is becoming known as ”The Asia Era”.

Mark Millar provides value for clients with independent, external and informed perspectives on their supply chain strategies in Asia – covering China and ASEAN. His presentations, seminars and corporate briefings help companies to improve business operations, plan more effectively, and increase the efficiency of their supply chain ecosystems. Mark serves as Chairman of the Logistics Committee at the British Chamber of Commerce in Hong Kong. mark@markmillar.com

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Business

Family Business Succession Planning:

Where do I start?

Andrew D. Ross, Managing Director, Baker Tilly Hong Kong, and Dr Richard Shrapnel PhD, Executive Director – Partner, Baker Tilly Pitcher Partners

Succession plans are one of those things that many business owners never get around to. Where do you start and how do you begin to build some momentum so this ‘succession issue’ is dealt with quickly and efficiently?

There are a few key steps to start. These will set a course that will bring you to a workable outcome as quickly and efficiently as possible. They are: • Recognising how long it will take and who needs to be involved; • Clearly establishing where you want to end up; • Appreciating what the end product should look like; and • Understanding the basic information you will need to gather.

Realistically, formulating a workable succession plan will take 3-6 months if everyone is on board, decisions are made quickly and information can be accessed. Often this is not the case and planning can stretch out to several

years as difficult issues are put on the back burner, financial statements are brought into order and daily work priorities take precedence. However, delaying the completion of a succession plan is like not renewing your insurance. You are running the risk that nothing will happen in the meantime.

Do not underestimate the difficulty that some questions will pose and the time it may take to bring family members along the journey of succession with you. Your spouse and immediate family must be involved in the process. A simple way to engage your family is to provide each of them with a copy of the Succession Planning Guide1 and allow them to read it and answer the questions themselves.

In this way they will be aware of the process you are undertaking in developing your succession plan.

Understanding where you want to end up once your succession planning is finished is an important starting point. Your aim should be to have a cohesive plan of decisions, actions and timetables built around very clear and specific goals. These goals should be determined the

Britain in Hong Kong

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beginning of the succession process and are usually expressed in terms of what you want to do with your business, the timing of succession and what your future financial needs will be.

• Organisational structure diagram

The end product should be a document which we title a Business Evolution Plan, or your Succession Plan. The plan is progressively developed and will ultimately contain:

• Copy of memorandum and articles for each company

The key goals and outcomes you want to achieve

Personal

• Preferences for dealing with your business

• Family tree with dates of birth, spouses details, etc.

• Preferences in managing family affairs and entitlements

• Statement of personal assets and liabilities

• Preferences for your final individual position, both financially and in the management of the business

• Details of any superannuation or life insurance

Facts

Succession

• Existing value of the business and key value drivers

• Bank and debt facilities letters • Particulars of any personal guarantees provided to any financier, creditor, supplier, etc.

• Copy of trust deed for each trust • Copy of any shareholders’ agreement

• Copy of your will and your spouse’s/partner’s

• Copy of your completed Succession Planning Guide

• Summary of assets and liabilities, that is, your wealth map • Family tree, roles in the business, etc.

Options • A complete listing of the possible options to achieve the goals listed above including consideration of the risks involved in achieving the outcomes sought Selected Alternative • The best alternative available, the reasons why it is the better option and how it most closely achieves the set goals and outcomes The Plan • A detailed listing of the actions to be taken, by whom, the expected outcome and the timetable for completion So what is the basic information you will need to gather?

The following list will assist: Business • Business structure diagram showing the various entities that exist and the activities they undertake • Most recent copy of the financial statements, income tax returns and company returns for all entities and individuals • Copy of Business Plan, if you have one

Succession planning represents the ‘capping-off’ of your career and the culmination of years of effort. It will be influential in determining the future prosperity and wellbeing of yourself, your family, your business and its employees and community of suppliers and customers.

Commit to succession planning early and follow it through until its conclusion.

Through our membership of Baker Tilly International, we are participating in a global survey to look at international trends in this area. If you would like to take part please visit: https://www.r esearch.net/s/ BTISuccessionSurvey Every person completing the survey will be provided with an advance copy of the findings.

1 To receive a copy of Succession Planning, a Baker Tilly International Guide for closely held and family businesses, please contact Baker Tilly Hong Kong on enquiries@bakertillyhk.com

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Business

How Can We Manage both the High Achievers and the Low Performers?

Louisa Wong, Executive Chairman, Bó Lè Associates

It

is obvious to those who study organisational

As the leader of a team that promises to deliver, how

development, as described by The Social Enterprise

can you properly manage all your direct reports, both

Alliance, that four interlocking tasks: productivity,

the high achieving ones as well as the underperforming

process, employee satisfaction and shared goals, must

ones, to ensure that everyone reaches their potential?

be managed simultaneously in order to sustain a healthy organisation. Consequently, four types of employees

According to the Wall Street Journal, 42% of companies

help drive each task’s success: achievers are responsible

had low performers actually report being more engaged

for results; agitators are responsible for getting things

than middle and high performers. Hence, they are more

done right; negotiators are responsible for resolving

motivated and they enjoy working at their organization

interpersonal conflicts; and navigators are responsible

more. The problem arises when high performers are

for making sure everyone on the team is committed to

asked to stay overtime at the office to correct the work

the same goal and moving along in the right direction.

of lower performers. Not only does this undermine high

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performers’ efforts, it also gives under performers an

Electric CEO Jack Welch once said that the top 20%

excuse to not take ownership of their own work. More

should be constantly praised and rewarded with financial

importantly, all these additional, tedious work will create

benefits while the middle 70% should be given proper

unnecessary stress and frustration for high performers.

coaching so as to motivate them to move to the top,

In order to avoid this type of disengagement, high

mentors to guide them as they set goals are also

performers might be prompted to leave the company.

advised. While it seems obvious that the bottom 10%

From a management point of view, there could not be a

needs to be replaced immediately, it would be beneficial

worse scenario – all your top performers gradually

to first find out the reasons behind their poor performance.

leaving while low performers stay behind and continue to leech off other’s hard work.

The ideal workplace is built around a harmonious, respectful environment where expectations are delivered

Reasons why companies are not able to retain talent boil

clearly and feedback from both sides are communicated

down to poor management and uninspiring or confusing

and understood. Ability and motivation go hand-in-hand

organisation vision. In order to effectively manage your

to impact performance; so efforts that aim to improve

subordinates, you must divide them into the top 20%,

both turn out as the best strategies. At such a workplace,

the middle 70% and the bottom 10%. Former General

leaders who are able to properly manage and motivate their subordinates will yield the best results for their companies. Therefore, it is recommended that senior executives should review the way they handle their office dynamics as there can be a long lasting effect on the company’s performance.

About Bó Lè Associates Bó Lè Associates is the largest executive search firm in Asia with a well-developed network of 25 wholly owned local offices worldwide, over 550 staff including 500+ experienced consultants and researchers, and 50+ support staff including Finance and Accounting, I T, i n - h o u s e R e c r u i t m e n t a n d Tr a i n i n g , a n d Marketing and Communication specialists. www.bo-le.com

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Business

Hong Kong Maternity Insurance; Waiting Periods and Your Pregnancy

Having a child in Hong Kong is an expensive proposition, especially if you are choosing to deliver the baby in hospitals like the Matilda, Sanatorium or Adventist, where the costs associated with a routine delivery can range between HK$ 66,000 to HK$ 150,000 or more. With such a high price tag placed on delivering a child at a private hospital many individuals are increasingly turning to medical insurance plans which provide a maternity coverage benefit in order to alleviate the burden of the costs involved.

However, a large amount of confusion exists on the subject of maternity insurance which can complicate the task of identifying and obtaining the best coverage for your needs.

The biggest concern in relation to maternity coverage is with regard to the waiting periods (moratorium) which are applied to almost all health insurance plans offering a maternity or pregnancy benefit, although some group plans do cover maternity with no waiting period.

A waiting period, or moratorium, is the length of time you must have held a health insurance plan before being able to claim for a certain coverage benefit under the policy. Only claims for treatment received after the expiration of the waiting period can be reimbursed by the insurance, meaning that it is not possible to claim for treatment under the policy while the waiting period is in force. Similarly, it is not possible to claim for treatment received whilst the waiting period was in force, even if the time period has expired.

Christopher Claridge-Ware, Chief Executive, Cooper Claridge-Ware

If we apply this to maternity, only maternity treatments which are received after the expiry of the waiting period are eligible to be claimed under the policy.

All maternity coverage benefits will normally be attached to waiting periods, and unless you are part of a larger group scheme, it is rare to find a health insurance policy offering this type of protection that does not apply a waiting period to the benefit.

To complicate matters, the way in which the waiting period is enforced can vary amongst different insurance providers with the moratorium occurring in one of two main ways.

The first way in which a maternity waiting period may be applied to your Health Insurance coverage is that it will be activated “From the Start of the Plan.” This is pretty much self-explanatory and means that the waiting period will run from the start of the policy, giving you a clear indication of when you are able to receive coverage for maternity treatments. “From the Start of the Plan” waiting periods usually last between 10 to 12 months – meaning you must have held the policy for at least that length of time before being able to receive coverage for your pregnancy.

The second way in which a maternity waiting period may be applied is that it will occur on an “Until Conception” basis. This

Britain in Hong Kong

means that if you conceive during the waiting period, no claim relating to that particular pregnancy or delivery will be covered by your insurance. In order to be able to claim for the delivery

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and associated costs under this type of plan therefore, you must have been insured for the full extent of the waiting period before becoming pregnant.

Due to the application of waiting periods across all maternity insurance options, both in Hong Kong and through the international market, it is important that any families considering the purchase of such coverage plan far in advance to ensure that the pregnancy can and will be covered by the health insurance policy. Because a full term pregnancy lasts 9 months, trying to obtain insurance coverage which offers maternity protection once you are pregnant is not the best idea simply due to the fact that none of the options will provide you the protection you are seeking due to the waiting periods which are attached to the benefit.

Once you’ve identified a policy which will provide suitable coverage levels for pre-natal and post-natal treatments, and will protect you against the costs of giving birth at a high-quality maternity hospital the next step, which often gets overlooked by many soon-to-be parents, is to consider insurance coverage for your baby.

New born child insurance coverage is offered by a wide range of Hong Kong and international health insurance providers and can help to ensure that your baby has access to both insurance coverage and comprehensive healthcare options for the rest of their life, even if the child suffers from a serious medical condition at birth. However, this type of policy benefit will generally be attached to a waiting period, just like the coverage available under the regular maternity benefit.

While it is possible to obtain new born child coverage with no waiting period from certain insurers, this tends to be the exception rather than the norm. Generally, a new born child coverage benefit will be placed at 6 months from the start of the plan, meaning that you must have held the policy for at least 6 months before being able to provide protection to your newly delivered baby.

If your health insurance plan enables your baby to be “Born into the Plan” then the child will be born straight into your existing health insurance policy, with all the same coverage and protection offered to you as the policyholder.

Even if the infant is born with a medical condition, then they will have access to health insurance coverage through your policy for life, guaranteeing that they will have the care and attention needed due to the state of their health at birth.

Having a child “Born into the Plan” will mean that you are responsible for paying the premium associated with their coverage; so be ready to pay for a higher premium when you renew the plan.

The other way in which new born child insurance coverage is offered is through a “Free Benefit.”

A “Free Benefit” will not incur an extra charge to the policyholder; coverage will be offered by your existing health insurance plan to the child free of charge. However, the major drawback to a “Free Benefit” is with regards to the fact that there will often by restrictions on the length and levels of the coverage being offered.

Many “Free Benefits” will limit the protection on offer to the first 30 days of the infant’s life, or to a pre-determined financial limit, whichever comes first. This means that, if your baby is born with a serious medical condition which uses the coverage available under the free benefit, once the coverage is fully used up a new application must be made to the insurer for continuing protection for the infant.

The following table provides examples of both types of policy available: Waiting Periods Example Covered Treatments Excluded Treatments From The Start From The Start Until Conception Until Conception Type of Moratorium of the Plan of the Plan Date Joined 1-Jan-2013 1-Jan-2013 1-Jan-2013 1-Jan-2013 10 Months From the 12 Months 10 Months From the 12 Months Length of Moratorium Start of the Plan Until Conception Start of the Plan Until Conception Maternity Covered From 2-Oct-2013 2-Jan-2014 2-Oct-2013 2-Jan-2014 Conception Date 1-Mar-2013 2-Feb-2014 20-Dec-2012 30-Dec-2013 Delivery Date 1-Dec-2013 2-Nov-2014 2-Sep-2013 30-Sep-2014 Delivery Covered Yes Yes No No

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Business

The growing case for B2B businesses to go digital Leo Wood, Senior Director in the Strategic Communications team of FTI Consulting

While the use of social media has become second

In a fast-changing and fragmented landscape, learning

nature to consumer brands, business-to-business (B2B)

how to exploit digital to meet objectives has been harder

organisations have been much slower to utilise the likes

in B2B. Now, the ecosphere has matured and several

of Facebook and Twitter, or RenRen and Weibo, their

channels have reached critical mass on a global scale

Chinese equivalents. Things are changing, however, with businesses learning how to harness the potential of digital to transform the way they communicate. Recent groundbreaking B2B campaigns should encourage other organisations to reassess what social media can do to

(with some notable exceptions, particularly in China), making them much safer bets for long-term investment.

The same principle of ‘social currency’ can be applied to B2B organisations trying to build closer relationships with their stakeholders. Broadly, there are four areas where

help them reach and engage their audiences.

social media can support organisational goals:

Gaining social currency

• External communications

The business case for companies that depend heavily on influencing consumers to adopt social media is clear. Such brands seek to gain ‘social currency’ – interacting with their markets by sharing information and securing

• Employee engagement • Customer service/relationship management • Sales Perhaps the most spectacular example of a company which has embraced social media to great effect is Maersk

influence in the process by leveraging individuals’ own

Line, a highly unlikely digital pioneer. Eighteen months ago,

followings. It’s a cost efficient, engaging approach to

the Danish shipping giant set out to use digital engagement

marketing and all manner of brands from Cathay Pacific

to “get closer to [its] customers”. Its initial strategy has been

to Coca-Cola have sophisticated, multi-channel digital

so successful that it has since developed social media

campaigns.

campaigns to cover all its stakeholders.

Britain in Hong Kong

16

When you see Maersk Line’s social media pages – spread

the resource that can be committed. There are countless

across a variety of channels such as Facebook, Twitter,

businesses which have dipped a toe into digital in a

Instagram, Vimeo and others – you get a vivid sense of

piecemeal way without really thinking about what they are

what the company and its people are about. There is no

trying to achieve or how.

hard sell.

The offspring of an ad hoc approach to digital may include Different digital media channels provide the perfect outlet

infrequently updated and/or poorly crafted blogs, or

for fascinating glimpses into what the company does –

Twitter feeds that are treated as one-way sales channels.

such as shipping sea ice from the Scott Base in Antarctica

The mere process of opening social media accounts does

to Europe for scientific research, and the journey of a

not equal a strategy and is unlikely to support business

giraffe from New Zealand to her new home in Melbourne.

goals.

Maersk’s approach is highly transparent, narrative and visual, relying on its people to tell the story of what the

By adopting some creative thinking, however, businesses

business is doing day in, day out.

that succeed in digital can come from unlikely sources.

Corning, a manufacturer which sells speciality glass to

Despite the difficulty in measuring success in social media,

other industries, has invested in digital with the clear

with almost 1 million Facebook likes and 62,000 Twitter

objective of humanising its applications. To that end, it

followers, Maersk has a huge and engaged following that

produced a futuristic film, ‘A Day Made of Glass’, which

has transformed its corporate image both internally and

shows what life could be like if all glass surfaces were

externally. The company reports that nearly 70 per cent

‘smart’. It’s an amazing piece of work that really brings

of its customers said its campaign had improved their

the capabilities of its products to life. The film has gone

perceptions of the business.

viral across a vast audience, clocking up a staggering 22 million YouTube hits.

How to ‘think social’ Maersk avoided a traditional top-down approach to digital communications and instead focused on growing a social media culture within the organisation. But encouraging people internally to ‘think social’ often requires moving out of the comfort zone of a company’s culture, with management shifting from a role as content creator to curators of content created by employees.

The public, global nature of digital means that such an approach is not without its risks. A robust process is needed to mitigate against reputation-damaging incidents such as the leaking of confidential information or posting of inappropriate remarks.

For businesses that have relied on tried and tested communications techniques such as events programmes and media relations, an evolutionary process towards

While Corning’s film is slickly produced, the beginnings of a social media strategy need not be costly. There are plenty of CEOs tweeting interesting content on a regular basis, such as Jack Welch and Sir Richard Branson.

Whether they’re heading to a summit, offering a view on some breaking news or celebrating a win for their sports team, Twitter can be a dynamic and informal way to share nuggets of insight both with employees and the wider world, while bypassing more labour intensive platforms such as a press release or intranet.

There are now enough examples of B2B businesses that have cracked social media to remove the mystery and encourage others to explore what digital can do for them.

Moreover, as people integrate social media into their personal lives, the case for businesses to incorporate digital into their communications activities will only grow.

‘thinking social’ may prove the best strategy, involving some experimentation with different channels to establish a social presence first and then foster a culture.

Leo Wood is a Senior Director in the Strategic Communications team of FTI Consulting. For more

Deciding how to take the plunge into the digital world

information please contact leo.wood@fticonsulting.com

requires clear sight of the objectives, the audience and

/ +852 3768 4538

17

Business

Report on the British Chamber of Commerce CSR Presentation 16 July, 2013 at DLA Piper Hong Kong

Clare Pearson, CSR Manager, Asia at DLA Piper

The British Chamber of Commerce CSR Steering Group and China Committee hosted Wang Liwei (the Chinese Government Advisor on Charity) and Clare Pearson (CSR Manager, Asia at DLA Piper) to speak on “Engaging Government in Complicated China.”

Wang juggled his many hats to keep the audience entertained and informed.

As a member of the Board of the Ministry of Commerce he provided detailed statistical analysis of access to new markets in the new special economic zones in the North East (Tianjin), West (Lanzhou and Xi’an) and South West (Chongqing and Chengdu) of China. He also gave an overview of the companies relocating from the Western seaboard to new inland markets.

As a member of the Chinese media he peppered his speech with insightful anecdotes from behind the headlines of the four new Government priorities namely; 1) East to West; 2) Urbanisation; 3) Production to Consumption; and 4) Social issues (environment, education, healthcare and elderly).

Two stories that interested me were the number of manufacturing companies in Chongqing that are now accessing the European market via the eleven day train route from Chongqing to Frankfurt; and the fact that Bugatti and Koenigsegg Agera R almost had no cars left at the opening of the Shanghai Luxury Car Show 2013 because they had been pre-purchased by private buyers.

As a member of the Board of the Ministry of Commerce, Wang provided a comparison of the contribution by Chinese and Foreign companies to social causes in China.

Britain in Hong Kong

Giving specific examples he looked at the new market in public private partnerships in the development of social services. Expanding on the need for a multi-stakeholder approach to reducing China’s wealth divide, he highlighted where Corporate Social Responsibility met with the Government development agenda.

I then gave an overview of the two Corporate Social Responsibility (“CSR”) Projects I currently run in conjunction with Nord Anglia, SSP International and the BMW Foundation in Beijing. The first is called E3 (Equal Education for Everyone) and provides professional development for twenty-five rural teachers per term at British School Beijing.

“Going Places” is the second program and enables sixteen rural students at a time to experience life in the city (Shanghai) to broaden their views about potential careers opportunities. I also spoke about balancing priorities of Government relations, media, NGOs, local office and international headquarters when executing CSR in China.

The presentations provoked many questions. Helen Den Held from Cisco asked about the impact of the scandal at the Chinese Red Cross on giving to Government Foundations. Mei Zhang from Goldman Sachs talked knowledgably about the impact of social media on the rapid evolution of CSR in China in the last three years. Annabel Baker of Lush Cosmetics asked about how best companies can impact the formulation of ethical legislation in the field of animal rights.

Wang drew on his diversity of experience to answer these questions. Although he now mainly mixes with Government, Philanthropists, NGOs and media I think his sharpest insights came from his time as an international cotton trader in Hong Kong in the early 90s. Working between the US,

18

India, Uzbekistan and China gave him first-hand experience of the delicate balance between Hong Kong, mainland and international managers. This background makes his answers believable because cultural misunderstandings underlie most issues.

On route to Hong Kong our plane had been delayed on the Beijing runway for five hours. Wang had just come from a meeting mediating between an Indian CEO and a Chinese Manager. The Chinese Manager was using his wife’s company as the major supplier and he had used alternative bills to fill a gap in invoice provision. For the Singapore CEO the activities were illegal. For the Chinese manager, they amounted to nothing more than pragmatic business solutions.

As I listened to Wang answering the questions in Hong Kong, I realised that it was not what he said that was surprising, but who was saying it that made an impact.

When Wang says to a China Manager “I know the game” you sit up and listen because you realise that he can appreciate the predicament from both sides. Bi-cultural credibility comes from inside knowledge.

Wang and I left Hong Kong (with no delay). As a mainland Chinese and UK citizen we might have some differences on our view of Hong Kong. However, one thing we do agree on is the commitment of the Hong Kong people to make an impactful contribution to China’s development.

My sincere thanks to Phillippa Cook and Yammie Yuen of the British Chamber, Kim Swan and Simon Phipps from the British Chamber CSR Steering Group, Jolyon EllwoodRussell from the British Chamber China Committee and Farrah Saleem.

19

Business

Maintaining Standards Interview with David Horlock, Asia Pacific Managing Director of BSI Sam Powney, Editor, Speedflex Asia Limited

“If any one hire an ox or an ass, and a lion kill it in the field, the loss is upon its owner. If any one hire oxen, and kill them by bad treatment or blows, he shall compensate the owner, oxen for oxen.” – Code of Hammurabi, Babylon, c. 1772 BC

Ethics and law have developed somewhat since the days of Hammurabi, but the essential need for codified standards remains as vital now as it was then. While the British Standards Institution has not been around for quite that long, it has been in the business for longer than most standards agencies – starting life in 1901. Famous in the UK for the Kitemark, a certification symbol dating back almost to the foundation of the organisation itself, BSI now produces standards and standards-related services for clients around the world. We caught up with BSI’s Managing Director of Asia Pacific, David Horlock to find out how the world of standards and certification is evolving. David Horlock has only been with BSI for around a year, but has been in the certification business for much longer.

What led you to this career and position with BSI Asia Pacific?

My International exposure and understanding of the Asian Culture was a key driving force to working in Asia. I was born to English Parents in Thailand where my parents lived as expatriates for 17 years and I was sent to boarding school and university in Australia.

As a boy in Thailand, I loved nature and everything connected with the outdoors – animals, plants, agriculture, eco systems and did everything from swimming in the klongs, tropical islands, fished, hunted and so forth. My dad was an electronic engineer but he grew up on a Farm in Studland, on the Dorset coast in England. So he was very much connected with the outdoors too. I had a lot of exposure as a child to different Asian cultures and to nature, from rice paddy to metropolis. This led me to studying for a Bachelor of Business in Agribusiness at University which then projected me into a 30 years+ journey in the Agri-Food, Agriculture Chemical, Consumer Products industry associated with International Standards dealing in Trade Compliance in the areas of product safety, quality, Social, Ethical and Environmental Sustainability working with global brands to bring their supplier facilities into acceptable compliance with regulatory and market requirements.

My postings included international management positions as CEO, Country Manager, Global Product Manager and Regional positions with internationally recognized Systems Certification and Compliance companies gained from postings in Hong Kong, Philippines, Thailand, Australia and United Arab Emirates.

I was awarded to the world’s most accomplished individuals by Princeton Premier Business Leaders & Professional Honors’ Award for 2009-2010 Registry for contributions to supply chain compliance.

Britain in Hong Kong

20

All these events played a key role in me following a career in the world of standards and certification and here I am with BSI, the worlds first and most experienced national Standards body.

What have you enjoyed most about your current role at BSI? The people and the vision of the new management team is great. BSI has a great legacy, and is a wonderful brand which I have always admired. It has the best product development pipeline in the industry and most importantly great people and management team to work with. Business is fun and we do a lot of good things to help business and organisations improve performance, reduce risk and cost, improve product safety, gain efficiencies and ensure sustainability in all areas of environmental, CSR, Governance and corporate behaviours. I like what I do, especially being given the privilege to lead, building people talent, products and territories and at the same time helping business, society and environment. It’s a great feeling.

How do standards make a difference to businesses and society?

BSI produced the world’s first environmental standard, now recognised as ISO 14001, back in 1992 and since then have led the way with on-going developments in environmental management, corporate social responsibility, product carbon footprinting and many other areas.

Also, take the energy sector: standards help secure and protect customer data, and ensure that energy bills are clear and easy to understand, as well as save energy and money while protecting the environment. In the service industry standards identify and respond to vulnerable customers, while others safeguard children on the internet. Standards help hospitals to stay open through the snow, hail and other conditions, and enable businesses to continue operating after a major disaster.

Most operational or execution problems that derail business is because you do not have the systems and processes in place to keep things on track or people do not follow the procedures. At BSI we help with the training, embedding and certification of all types of standards so organisation can make excellence a habit in whatever they do. All businesses want to be able to perform better, effectively manage their risks and grow sustainably. Our standards do just that – from environmental and energy management, through to business continuity management, information security and quality management.

If we take sustainability – in all its forms – it has never been more important. Organisations across the world are facing challenges from environmental, economic and social perspective. How we deal with these issues will make a huge difference to the future of business and the planet.

A major concern in Hong Kong, rightly or wrongly, is about products manufactured in mainland China. How do you feel about the safety and standards in mainland China today? Has there been significant progress? Does the situation differ from sector to sector I think this has been exaggerated. For example, China manufactures 75% of the world’s toys but has less that 75% of the problems. Remember, China is a combination of low, medium and high tech industries. When problems occur you have to differentiate whether this is due to design, systems and processes or outright criminal intentions.

Every time you get a recall, this provides the call to attention needed to ensure business and regulators implement the controls and enforcement to ensure tomorrows products will be safer than today. The reality is that by most measures the things made in China today are much safer than what was made in China ten years ago, and it keeps getting better.

The safety and quality of products for export are better due to legislative requirements such as the EU Directives – and this can vary between self-declaration and those that have to be tested by a Notified Body. In general, products for export markets are of a higher quality and standard than product manufactured for the domestic market.

From your experience of working in different countries throughout Asia Pacific, what made you relocate the BSI regional hub from Singapore to Hong Kong?

China is an increasingly important market to BSI and Hong Kong is the gateway to China – we plan to open another 12 offices in China in the next 3 years. So this move helps BSI to deliver its ambitious growth plan which will increasingly move towards developing economies and supply chain communities.

In fact, Hong Kong is a gateway to the whole Asia Pacific region, with a strong trading economy, a good legal system, and competitive location for regional headquarters with business friendly tax and a good market for talent.

It is conveniently located as well as being a large base for regional headquarters, global procurement and supply chain businesses. Fundamentally, it’s also a vibrant city with a can-do mentality. Having said all that, BSI will continue to maintain and grow its presence in Singapore too.

21

Business

Does Hong Kong’s legal system continue to make the introduction and application of standards particularly straightforward, or are other jurisdictions catching up?

Standards are not regulatory or government imposed, but can be used to help support regulations. They are created as a result of experts, professionals and consumers working together to set them for mutual benefit and to ensure high quality.

In many cases they help support legislation. Take waste management for example: the legislation requires that you do not pollute the environment. The standard will recommend the best ways of disposing of and managing waste.

What are the opportunities you see for BSI in Hong Kong?

We are entering a new era of information and supply chain complexity in what is becoming a smaller and more transparent world. Globalisation is affecting businesses everywhere, forcing companies to improve their performance and stretching their supply chains. Advances in technology are rapidly changing every aspect of business operation and commerce, creating entirely new ways for customers, citizens, employees and organizations to interact. All these pressures are driving demands for more transparency, better governance, risk and compliance (GRC) management, higher quality and reliability and more effective separation of voluntary standards from mandatory regulations. We see a paradigm shift over the coming years in the way that the best businesses will operate, improving their bottom line performance and meeting their corporate social responsibilities. With these changes is coming a new generation of standards relating to corporate behaviour including antibribery, business continuity management, cloud security, water, energy, CSR, asset management, collaborative relationship and many more in the pipeline. There will be increasing need for standards and standards services in finance, construction, property, as well as ensuring procurement & supply chains.

What is Hong Kong’s industry good at, and what could it do better?

Hong Kong can be good at whatever it decides to be good at. It’s full of entrepreneurs with a long trading history in trading, textiles, then toys, then electronics. When the factories moved to China, Hong Kong became a procurement/supply chain hub, service industries started to shoot up, logistic and transport gateway evolved, property development, and lastly it became a financial centre for APAC. Hong Kong is good at adapting and creating an environment for business to be competitive.

Hong Kong will continue to change. Low crime, respect for law and order, low tax, and a business friendly environment will always keep Hong Kong competitive. However, its biggest challenge will be to remain competitive with China, Singapore and other emerging hubs. It will need to improve the environment, international schools and living conditions so as to attract international headquarters. English education will be critical if Hong Kong is to maintain its place as an international service and financial centre in Asia.

Where is the ‘new ground’ at the moment? Which business sectors are you finding need wholly new/revamped sets of standards?

BSI was the world’s first National Standards Body and over a century later is globally recognised as a champion of best practice. BSI is responsible for originating many of the world’s most commonly used management systems standards and publishes over 2,500 standards annually. These standards address the most pressing issues of today from clear billing to energy management and disability access to nano-technology; spanning sectors including aerospace, construction, energy, engineering, finance, healthcare, IT and retail.

What is the direction of change you see in the Asia Pacific region, and how will BSI be involved?

3.5 billion people in the region are moving to a middle class and more affluent life style. This will be a hundred times bigger than the great industrial revolution of the 18th and 19th centuries. The centre of gravity is and will shift to Asia Pacific where it is already the manufacturing hub of the world. Its share of global GDP is predicted to grow from 17% today to 50% by 2050. With this Asia will move as did Japan from low tech to high tech, low quality to high quality, copycat to innovation and centres of excellence. Meanwhile, supply chains are changing rapidly from export oriented patterns to domestic consumption and thereby decoupling from the western world. APAC will evolve from export driven economies and greater balance between export and domestic consumption.

All these pressures are driving demands for more transparency, better governance, risk and compliance (GRC) management, higher quality and reliability and more effective separation of voluntary standards from mandatory regulations. We see a paradigm shift over the coming years in the way that the best businesses will operate, improving their bottom line performance and meeting their corporate social responsibilities. With these changes is coming a new generation of standards relating to corporate behaviour including anti-bribery, Business continuity management, cloud security, water, energy, CSR, asset management, collaborative relationships and many more in the pipeline.

If you didn’t work as a Director, what would you do?

I am very happy where I am. If not for this, I would fish and live on an island. My favourite t-shirt has on it “Born to fish but forced to work”. I think that sums up my real passion.

2013

The Standard Chartered Bank & British Chamber of Commerce Annual Ball 2013 Friday 13th September 2013 7.30pm - TILL LATE GRAND BALLROOM, GRAND HYATT, HONG KONG Dress Code: Circus Freaks and Big Top Chic The British Chamber and Standard Chartered Bank Annual Ball is back and this year promises to better than ever!

Roll up to The Flying Circus which will be in town for one night only! Experience a magical show that will take you back to a vintage Victorian wonderland filled with fantastic fun and wonderful surprises.

Many thanks to our sponsors and supporters so far!

Title Sponsors

Gold Sponsors

Silver Sponsors

Logistic Sponsors

Other Supporters

Please visit, www.britcham.com/annual-ball-2013 for more information.

Please contact stephanie@britcham.com for sponsorship opportunities.

Business

YNetwork ‘Head of the Table’ Hosted by Sir David Li – Chairman and Chief Executive of The Bank of East Asia, on 23 May 2013 Michael Chi On Wong

The British Chamber has been where the business

To Hong Kong’s business community, Sir David has been,

community gets connected. For younger members of the

and remains a towering and influential figure. He not only

Chamber, there surely can be few more valuable

heads up BEA, a major bank founded in Hong Kong in

experiences than having an exclusive opportunity to meet

1918 with operations all over Mainland China and overseas,

with the leading lights in Hong Kong’s business world. On

but also leads the Chinese Banks’ Association and holds

Thursday, 23 May, eight young members were fortunate

directorship at various locally and internationally listed

enough to be invited to attend the first Head of the Table

companies. On the political dimension, Sir David served as

of 2013 hosted by Sir David K.P. Li, Chairman and Chief

a member of the Preparatory Committee for HKSAR, the

Executive of The Bank of East Asia (BEA) at their Head

Legislative Council and the Executive Council, in addition

Office in Central.

to numerous other political and professional bodies.

Presented by the Chamber’s YNetwork Committee, Head

The evening began with a lighted-hearted and elating drinks

of the Table is a unique event for YNetwork members to

reception in BEA’s beautiful banquet room, where YNetwork

‘meet and greet’ key business leaders in Hong Kong from

members had the chance to converse closely with Sir David

a variety of fields. The event serves as a platform where

and Mr Andrew Burns (Manager, Management Office, BEA)

both parties can spend an evening interacting and getting

and were then invited to sit down to a delicious Chinese

to know each other.

dinner. For the YNetwork members, it all seemed too good

Britain in Hong Kong

24

to be true and they surely found it difficult to contain

plan to an Iraqi prince for a royal sum! These fascinating

their excitement!

examples surely showed the YNetwork members how great business can be done by creatively harnessing unutilised

Interested in tapping into the points of view and aspirations

resources in one’s business environment to meet the unmet

of the Chamber’s younger generation, Sir David invited

customer needs in the market.

YNetwork members to comment on different current issues in Hong Kong from politics and government, university

The YNetwork is extremely grateful to Sir David and Mr

education, to mass media. Sir David responded to each

Burns for their hospitality and generosity that made the

comment with his astute opinion and observations, drawing

Head of the Table such an unforgettable occasion.

from his rich experience in business as well as politics.

Gratitude also goes toward Sir David, being the true gentleman that he is, for taking time to write each YNetwork

The dinner was also the perfect opportunity to learn about

member who attended the dinner a heart-warming letter

the less known early life of Sir David. The YNetwork members

of thanks and good wishes after the event!

were amazed and impressed to find out that Sir David already shined with strong business acumen and sense of entrepreneurship back when he was studying Economics and Law at Cambridge University in the 1960s. He launched a business selling second-hand bicycles to new students in collaboration with the porters at Selwyn College, Cambridge; he set up a night club in town for young scholars to enjoy music and socialise; he managed a musical band and, to raise money for charity, even dressed in Chinese costumes to act as a fortune teller who could ‘see into the future’! He

The Head of the Table is just one of the brilliant experiences

also started to develop a long-lasting interest in historical

that the YNetwork can provide. If you would like to know

maps and began map trading in London. Just before he left

more about upcoming events, please contact Ms Lucy

university, Sir David closed a final deal by selling a dance hall

Jenkins at lucy@britcham.com

25

Legal

What Can Business Really Expect from Hong Kong’s Competition Law?

Ros Kellaway, Head of Eversheds Competition Group

Introduction

The Second Conduct Rule

The Competition Ordinance (the “Ordinance”), Hong Kong’s first cross-sector1 competition law, was passed on 14 June 2012 and is being implemented in phases. The Ordinance will be supplemented by various guidelines2, drafts of which are expected to be published by the Competition Commission (“CC”) in early 2014 for public consultation.

Businesses will need to be compliant with the Ordinance after its full implementation, which is not expected until the latter part of 2014.

The Second Conduct Rule prohibits businesses with substantial market power from abusing it by engaging in conduct with the object or effect of restricting competition6.

Under the “substantial market power” test, a business with a market share below 25% is not expected to be caught by the Second Conduct Rule7. Compared to other competition jurisdictions, such as EU, PRC and Singapore, which adopt the “dominant position” test, the threshold in Hong Kong is much lower. This is intended to cater for the small and geographically concentrated economy in Hong Kong, where many sectors are oligopolistic with two or three major players whose conduct could have a substantial effect on competition but none of them would be considered “dominant”.

The Ordinance is modelled closely on the EU competition regime, with some deviations to cater for the local market economy. Merger control will only apply to holders of carrier licences under the Telecommunications Ordinance in Hong Kong.

The First Conduct Rule The First Conduct Rule prohibits competitors from entering into an agreement or engaging in a concerted practice that has the object or effect of preventing, restricting or distorting competition in Hong Kong. Businesses should be particularly concerned about “serious anti-competitive conduct”, e.g. price-fixing, bid-rigging, market sharing and restriction of output. These are generally understood as anti-competitive activities that almost always have an adverse impact on competition3 and will not fall under the general exclusions4.

The CC may issue a block exemption order for vertical agreements subject to conditions, but application of the First Conduct Rule is expected to have limited application in this context, e.g. where (i) suppliers with substantial market power are involved; or (ii) supply agreements are entered into between competitors5.

Extra-territorial Effect The Ordinance applies regardless of where the anticompetitive conduct takes place or where the undertakings may be located, so long as the infringement has the prohibited effect in Hong Kong. That said, the extra-territorial investigation and enforcement by the CC and the Competition Tribunal (“CT”) may pose some serious challenges.

The Institutions (i) The Competition Commission The CC is a well-funded8 and professional institution with wide investigation powers (including the power to require production of documents and information, persons to attend interviews and to conduct “dawn raids” authorised by court warrants9). We expect it to have a strong consumer agenda.

The CC will act as a prosecutor and will refer cases to the CT to impose sanctions.

Britain in Hong Kong

26

(ii) The Competition Tribunal

Recommendations to businesses

The CT takes on an adjudicative function. If (on application by the CC), it decides that there has been an infringement of the Ordinance, it may impose sanctions, including pecuniary penalties capped at 10% of the relevant undertaking’s annual local turnover for up to three years10 and director disqualification orders.

Based on our international experience, we believe that this significant piece of legislation will have an impact from the start on the day-to-day trading activities and strategic commercial decision making of nearly all businesses in Hong Kong. Companies are recommended to take an active role to consider how the Ordinance and the guidelines (when they are issued) may affect them as the full implementation commencement date approaches.

Following the determination of a contravention of a Conduct Rule by the CT, victim(s) of anti-competitive conduct may bring a follow-on action against the infringer for damages.

However, the Ordinance has expressly ruled out standalone private actions.

Leniency The Ordinance provides for a leniency regime. Details as to how it is expected to operate will be set out in guidelines to be published by the CC. Leniency provides for immunity or reductions from fines for people coming forward with information about cartel conduct. As evidenced in Europe, this is potentially a very powerful enforcement tool because it breaks down trust between cartelists – how do you know if one of them has not reported the cartel to the CC in exchange for immunity? As engaging in cartel activities is not a criminal offence under the Ordinance, there is scope for businesses who are committed to putting a stop to ongoing cartel activities to seek leniency from the CC without having to worry about attaching criminal liability to its directors or staff.

What to expect in the early days of implementation?

The CC is expected to exercise its powers robustly even in its early days. If it is slow to act, scepticism among the general public that the CC is too close to the business sector may arise, and cast doubt on its determination to tackle anti-competitive behaviour in Hong Kong. Lessons can be learned from the UK, Singapore and Australia, where quick action was taken at the start of the new regime to tackle cartels.

Steps to be taken include: • watching carefully for the scope of any exemptions and for consultations on the draft guidelines of (block) exemptions and leniency; • identifying areas of the business where competition risks are likely to arise; • conducting detailed review on companies’ agreements and identifying conduct that should be changed for compliance; • rolling out high-level training to management and employees, especially drawing their attention to the fact that any discussions or arrangement with competitors will be closely scrutinised for compliance under the new law and past business practices may no longer be permitted; • developing a competition compliance policy or updating it if one already exists; and • modifying any relevant business practices and structures, e.g. monitoring participation in trade or industry associations which provide a forum where inappropriate discussions can take place.

By considering in advance where potential competition risks lie and preparing for compliance with the new law, businesses will be able to stay “competitive” without falling into any pitfalls under the new Hong Kong regime.

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action to the matters dealt with in this publication.

Sectors that are likely to be targeted include construction11, property development, supermarkets, food and beverages.

1. Sector-specific competition provisions were introduced in the telecommunications and broadcasting sectors in 2000.

2. These will relate to the first and second conduct rules, market definition, leniency, the CC’s investigation powers and block exemptions orders.

3. See discussion paper CB(1)2336/10-11(01): http://www.legco.gov.hk/yr09-10/english/bc/bc12/papers/bc120531cb1-2336-1-e.pdf.

4. Set out in Schedule 1 of the Ordinance.

5. See discussion paper CB(1)2336/10-11(01). Op Cit. 6. e.g. predatory behaviour towards competitors, tying and bundling, refusal to supply and margin squeeze.

7. See discussion paper CB(1)1506/11-12(02): http://www.legco.gov.hk/yr09-10/english/bc/bc12/papers/bc120410cb1-1506-2-e.pdf 8. The CC has been granted a budget of HK$82m for the year 2013-2014, which compares well with other jurisdictions.

9. Non-compliance with the CC may lead to criminal penalties.

10. the three years with the highest local turnover would be used in calculating penalty if the infringing act involves a period longer than three years.

11. Where bid-rigging is known to be commonplace.

27

Events

Thank You to All our Sponsors and Members!

A huge thank you to all of the sponsors who came on board for the British Chamber of Commerce’s 25th Anniversary Gala Dinner on Wednesday 29th May 2013 at the Island Shangri-La Hotel and contributed to a fantastic night! Chamber members from the past and present gathered to celebrate this special occasion. Vince Cable, Secretary of State of Business, Innovation and Skills provided a special video message to congratulate the Chamber on reaching its 25th Anniversary.

We had Brit-tastic POP phones sponsored by Native Union, gentlemanly British cufflinks from Timothy Oulton, luscious skincare sets for men from Aesop, LUXE City Guides and much more. Not to mention the striking bar produced by Diageo serving delectable bespoke cocktails created exclusively for BritCham’s anniversary. A 25th Anniversary celebration would not be complete without a Champagne toast, courtesy of Lanson. Of course the night couldn’t have happened without the support of our members and Silver Sponsors; Barclays, BSI, Ernst & Young, Grosvenor, HSBC, Jardines and Zurich Insurance (Hong Kong).

Silver Sponsors

Thank you to our Sponsors

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Lifestyle

Sri Lanka

Nikki Pang, Regional Marketing Manager, Lightfoot Travel

Sri Lanka – a tiny teardrop shaped island in the northern Indian Ocean. A country with a hugely varied landscape ranging from bustling cities and misty hill stations, to wildlife parks and long stretches of empty beach. A place where cuisine takes centre stage – where green chillis and sambal are served with your morning omelette, fresh papayas are always drizzled with lime, and dhal is present everywhere yet always unique. Sri Lanka is a remarkably beautiful nation that has seen tourism not only return, but explode after almost three decades of civil war that finally came to an end in 2009. While the country has remained largely unchanged over the past decade, foreign investment is pouring in, international flights are becoming very frequent to more and more destinations, and new hotels and resorts are opening up by the dozen, heralding dramatic change in the decade to come.

Hill Country One of the memories from Sri Lanka that lingers the most is riding the train from Kandy, the country’s second largest city and former capital, up into its mystical hill country. Located in the island’s southern heartlands, half of hill country is comprised of perfectly manicured rows of tea plants on dozens of tea plantations that dot the landscape. The other half is made up of equally beautiful rugged peaks, gushing waterfalls, and quiet hill towns.

Temperatures noticeably drop the higher the train climbs, and a memorable experience is stepping out of the observation car and sitting in one of the train’s doorways as it slowly winds its way around the hills. Bring a book and pause every once in awhile to stare out at the passing scenery, feeling somewhat like you’ve stepped back in time. Chances are you will never forget what you were reading that day, or how it felt to sit and watch that stunning landscape go by.

There are many different hill stations, and countless activities that include hiking up Adam’s Peak surrounded by thousands of pilgrims at dawn, trekking through Horton Plains National Park to World’s End, or visiting one of the tea plantations that are scattered throughout the area. Hopping off the train at the little town of Ella for an evening is recommended. Set in a huge valley with spectacular views, there are plenty of day hikes and you will leave this place completely charmed by its scenery, people and relaxed way of life.

Accommodation — Tea Trails If you are looking for the best, Ceylon Tea Trails is the winner hands down. Comprised of four plantation bungalows that were originally built for tea estate managers in the days of the Raj, Tea Trails offers guests the unique experience of life on a working tea estate. With beautiful trails perfect for trekking and mountain biking, breakfast on the expansive lawns overlooking the Castlereigh Reservoir, and excellent chefs who prepare handmade scones and jam for tea, Tea Trails takes the cake. There is also a fantastic honeymoon suite at the top of the property with stunning views. Another one to note is Mas Villas, the new kid on the block that is also a great option for families with plenty of space for children to play.

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East Coast Sri Lanka’s eastern coast is as undeveloped as you find these days with virtually no tourists, but this is set to change in the next few years when all the big players come into town. The beaches are long, wide and perfect for activities. The best diving around the island is found here, and the whale watching from June to September is known to be very good. If you’re looking for nightlife, or any type of social scene for that matter, you’ve come to the wrong place as there are virtually no restaurants or bars, and the towns are very simple. This area was greatly affected by the civil war, slammed by the tsunami, and then hit by the war again. While the region is healing, it is doing so at a slow and comfortable pace, and this remains a great place to go for those looking to surround themselves in…just about nothing at all.

Accommodation — Uga Bay Situated metres from the beaches of Passekudah Bay, Uga Bay is lovely with exceptional staff, 46 spacious rooms, a beautiful infinity pool, and underground spa with round windows so you can look out onto the beach. Sip on a cold Lion beer overlooking the ocean, and sample one of those fiery curries that the country is famous for by the resort’s amicable chef who is more than happy to accommodate any special needs or requests.

South Coast Where Sri Lanka’s eastern coast is the epitome of remote and off-the-grid, its southern coast is bustling, built up, and a much easier drive from Colombo. However, “built up” is a relative term, and it is still a far cry from the overdeveloped beach destinations of Southeast Asia. Each of the many towns that line the southern coast has a different feel and its own unique characteristics – Tangalle with its rocky, rugged coastline, the watersport hotspot of Bentota, and quieter Thalpe with a 2-kilometre stretch of beach concealing luxury private villas to name a few.

Accommodation — Why House In a word, Why House is a stunner. This lovely 8-bedroom boutique hotel is tastefully designed and decorated, the staff are top notch, and it’s nestled within 3 acres of beautifully landscaped, private walled gardens. The surrounding Thalpe/ Galle area has excellent activities for kids including turtle hatchery visits, walking tours tailored for families with fun activities to entertain them along the walk and little gifts at the end, whale watching boat rides and beach hopping.

Galle Fort The UNESCO World Heritage Site of Galle Fort is quaint and historic with plenty of narrow little streets full of galleries, cafes and boutiques to explore. Stock up on children’s books by local authors, artwork, handicrafts, and of course, the beautiful gem stones that Sri Lanka is famous for. Sitting on the fort walls watching the sun set as children play cricket on the grounds below is a favourite memory – a sunset of brilliant colours that can suddenly appear from an otherwise dull and cloudy sky.

Accommodation — Amangalla Think slowly rotating fans, chandeliers, high ceilings and beautiful, aged hardwood floors. Amangalla is located in the heart of the Dutch fort in a beautifully maintained building that was finished almost 300 years ago. Having tea or a gin and tonic on the verandah while you watch the world go by is a must, as is spending a few hours at The Baths, Amangalla’s spa with signature treatments found only in Sri Lanka. Dining at the Amangalla is an experience in itself with crisp white linen, antique silverware and impeccable service. However, the beauty of being located within the fort is there are plenty of dining options at your doorstep should you want to venture beyond Amangalla. The Fort Printers Hotel located nearby has an excellent restaurant serving the freshest seafood in its poolside courtyard, and Fortaleza is housed in a beautiful old building with a lovely, cosy courtyard bar – well worth stepping out for!

Bespoke travel company Lightfoot Travel (www.lightfoottravel.com) is an Asia-based tour operator specialising in tailor-made holidays, honeymoons, short breaks, boutique accommodation and private villas in Asia and beyond. For more information please call +852 2815 0068 or email info@lightfoottravel.com

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ember iscounts

There are many great benefits of being a member of The British Chamber of Commerce.

One of those is the Member Discounts programme which is an exclusive package of discounts that range from discounted car rental, reduced hotel accommodation, airfares and even relocation costs.

Every six months we invite members to prepare a tailor-made offer to all the members of the British Chamber. You can find these benefits listed below and for more details please visit our website www.britcham.com

ood & Beverage & Accommodation Accor

Grand Hyatt Hong Kong

Members will receive 10% discount on top of the lowest rates that Accor’s Asian hotels are offering on the day. This applies to over 1600 Sofitel, Pullman, MGallery, Novotel, Mercure, Thalassa & Orbis hotels worldwide. You will also receive 5% discount on top of the best unrestricted rates for hotels including ibis (in specific countries), All Seasons & Hôtel Barrière. For more information please contact Regina Yip on 2868 1171 or email regina.yip@accor.com

15% discount on food and beverage at The Grill and 10% discount on treatments upon spending HK$1,000 at Plateau Spa. To make a reservation please contact The Grill on 2584 7722 or the Plateau Spa on 2584 7688

Alfie’s Members of the British Chamber of Commerce can benefit from a 10% discount at this chic restaurant in Hong Kong. To make a reservation please call 2530 4422 or email booking.alfies@ keeclub.com

Berry Bros. & Rudd Members can benefit from a 10% discount on all retail prices as well as receiving invitations to free tastings and other wine events during promotional period. For more information please call 2907 2112

Courtyard by Marriott Hong Kong Members will receive a 20% discount on food only in MoMo Café. To make a reservation please call 3717 8888

Dot Cod All members of the British Chamber of Commerce of Hong Kong will receive a 15% discount on the bill. For more information please call 2810 6988 or email dotcod@hkcc.org

Hong Kong Skycity Marriott Hotel Members will receive a 10% discount on the total bill at Man Ho Chinese Restaurant, SkyCity Bistro, Velocity Bar & Grill, and The Lounge (Promotion does not apply to alcoholic beverages). To make a reservation please call 3969 1888

Le Méridien Cyberport Members can book a Smart Room at the special rate of HKD1,600 including a daily eye-opening buffet breakfast (subject to availability). You will also receive 20% discount at 5 of the hip restaurants and bars that the hotel has to offer.

Furthermore, when you book the 21-day long room package at HKD23,100 you will receive a ‘Round Trip Limousine Service’. For more details please call 2980 7785

Renaissance Harbour View Hotel Members will receive a 10% discount on the total bill at award-winning Dynasty Chinese Restaurant, all day dining at Cafe Renaissance, Scala Italian Restaurant and the Lobby Lounge.

To make a reservation please call 2802 8888

W Hong Kong Members will receive 15% off the lunch buffet in Kitchen and dinner in Sing Yin Monday to Friday, and 10% off in all venues at all other times. For more information or to make a reservation please call 3717 2222

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ifestyle & Travel British Airways

sense of touch

As a member of the British Chamber of Commerce you can enjoy exclusive offers from British Airways. For more information please visit: www.britcham.com/memberdiscount/ british-airways

Britcham members will receive 20% off all treatments on their first visit upon a total spend of $1,000, 10% off facials and massages in all subsequent visit as well as a $1,000 treatment coupon when purchasing a $10,000 cash package. For more information please call 2201 4547

Colourliving As a member of the British Chamber of Commerce, you can enjoy a 10% discount on all normal price merchandise when shopping at Colourliving in Wanchai. Please call 2510 2666 or visit www.colourliving.com

Virgin Atlantic Airways

VisitBritain British Chamber members can get 5% on all purchases from VisitBritain’s online shop by entering the code TR7DE67! at the checkout.

Please visit www.visitbritaindirect.com/world for further details.

Special offers are available exclusively for members of the British Chamber of Commerce.

Please call 2532 6060 for more details or to make a reservation

usiness Services Compass Offices

Regus

Compass Offices are offering all Britcham members a free, no obligation 1 month Virtual Office Address Package to help you get set up in Hong Kong as well as 50% off meeting room rental. Please email hksales@compassoffice.com or call +852 3796 7188 to find out more.

Britcham members will receive a complimentary six-month Businessworld Gold card that gets you access to 1,200 business lounges in prime central city business locations in Asia and around the world. For more information or to accept this offer please visit www.regus.hk/localpartnership and enter the activation code APHKBCC in the Promotional Code box.

The Executive centre Members can enjoy a complimentary Serviced Office for 1 month, 50% off for Virtual Office subscription and up to 20% off meeting room and video conference bookings. Please contact +852 2293 2299 or email hongkong@executivecentre. com for more details.

The Hive The Hive is offering one additional month’s membership at no extra charge for any member who signs up for 6 months. For further details, please visit www.thehive.com.hk

MEMBER GET MEMBER

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Make a successful referral to the British Chamber of Commerce and enjoy a fantastic meal for two!

If you happen to refer the most new members to the Chamber, you will win a stunning prize: A complimentary brunch for four at Cafe Deco Bar & Grill, courtesy of Cafe Deco Group.

Cellarmaster Wines The British Chamber is delighted to announce the launch of the 2013 ‘Member get Member’ Campaign which will run from April 2013 – March 2014. As part of this new scheme we are pleased to announce that any new member who signs up through this referral programme will receive a complimentary bottle of Champagne Pommer y, cour tesy of Cellarmaster Wines.

In addition, if you successfully introduce a company to us that results in them joining the Chamber, you will receive a fantastic dinner for two courtesy of a top restaurant in Hong Kong.

Cafe Deco Bar & Grill Sunday Brunch For the most amazing views of Hong Kong, Cafe Deco Bar & Grill is a great brunch option. Indulge in a wide variety of delicious specials whilst overlooking the Peak’s spectacular view every Sunday and public holiday from 11am to 3pm at Cafe Deco Bar & Grill. Guests can pay $468, which includes free-flowing Clair diamant blanc de blanc N.V., Nugan 3rd Generation semillion & Chardonnay, Chateau Fontaubert Bordeaux and soda.

For kids aged between 3 and 11 years old brunch costs $238. This brunch features Canadian sustainable sea urchin specials for customers to feast upon and a kids’ entertainer to keep the little ones occupied.

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So what are you waiting for? Spread the word throughout your network to enjoy a complimentary meal for two at one of these fantastic member restaurants: The Bostonian, The Langham, Hong Kong This well-established restaurant has been a Hong Kong favourite for well over a decade.

Located at the lower lobby level of The Langham, Hong Kong, The Bostonian has an excellent reputation for its superb steaks, and more recently its fully sustainable seafood menu. Featured by one of Hong Kong’s influential restaurant bibles, “The Hong Kong Best Restaurant Guide” since 2000 and recommended by The Michelin guide, the Bostonian is a hallmark for impeccable service and exceptional food. Guests can indulge in a tantalising array of fresh seafood from around the world at the “Raw Bar”, including home-made smoked salmon, prawns, crabs and freshly shucked oysters. The enticing menu also includes gourmet favourites such as maine crab cakes, sautéed foie gras, clam chowder, as well as separate menus for the restaurant’s specialties – the Boston lobster galore, seafood sharing platters and Bostonian grill.

cafe TOO, Island Shangri-La, Hong Kong The innovative cafe TOO brings casual dining to a higher level of creativity. Their ten cooking theatres, each featuring a different culinary style, are showcases for the best of international cuisine as well as stages for their chefs’ engaging performances.

Café Renaissance, Renaissance Harbour View Hotel Hong Kong Café Renaissance is the perfect place for all day dining. Located on the Mezzanine floor, the 210-seat all-day dining café serves a wide variety of dishes from all over the world. Café Renaissance serves wholesome breakfasts, chef crafted lunches and dinner buffets plus à la carte menu daily and brunch on weekends, in a warm and welcoming atmosphere. In addition to the great array of fresh seafood delights using the freshest ingredients, guests can also enjoy a tantalising array of international favourites and local specialties from live cooking stations.

To enter: • Consider who among your contacts might be interested in joining the Chamber • Email phillippa@britcham.com with the name and contact details of your suggested company • If appropriate, contact your suggested company and let them know that the Chamber will be in touch • The Chamber will follow up with each suggestion directly • If your referral is successful, the Chamber will contact you with details of how to book your dinner Terms & Conditions • You must be a member of the British Chamber to be eligible for this offer • The dining vouchers will only be provided if your referral results in a new member for the Chamber • This offer is valid for all members whose referral results in a new Corporate, Overseas or Startup member of the Chamber. It does not apply to Additional members or additional YNetwork members • The Chamber will allocate the restaurant vouchers. Members will not be able to choose which restaurant they visit and must adhere to the terms and conditions

News Michael Page continues to Expand in Greater China Michael Page, part of global recruitment firm PageGroup, has recently invested in significant additional office capacity in Shanghai and Guangzhou to accommodate its growth and enable continued expansion. After opening its first mainland China office in Shanghai (Puxi) in 2003, the Michael Page Puxi team has relocated to a new, larger office accommodating 130 people – an additional 40 people than in the previous space. The business has also secured a new spacious office in Guangzhou and as this team grows, the business strategy is to increase the offering scope and extend into new disciplines. In addition, the Shanghai Pudong business has been busy and the office is close to full capacity after just three years.

Commenting on the strength of the China business, Richard King, Managing Director for North & Eastern China, said, “While Michael Page has grown to be the largest professional recruitment firm in China, we see enormous scope for further growth. We are committed to investing in the region and providing our clients and candidates with an extensive recruitment offering delivered by our exceptional consulting staff.”

Global Study Examines Impact Of Regulations On Financial Services Industry Specialist recruitment firm Robert Half has released a study revealing significant fatigue among the financial community regarding rapidly changing regulations. In Hong Kong, 96% of respondents within the financial services sector found the regulatory regime challenging to manage. Among the regulatory changes, anti-money-laundering (AML) requirements (35%), Basel III (31%) and anti-corruption requirements (24%) have had the biggest impact on businesses. Compared to 35% of companies globally, 46% of Hong Kong respondents are expecting to increase in their budget, including capital expenditure and labour costs over the next 12 months as a result of regulatory changes. To manage and accommodate the additional regulatory workload, 43% of Hong Kong companies will hire contract or interim staff, and one in four (23%) will add to their permanent headcount. The Robert Half Financial Services Global Report: Navigating Change in an Evolving Regulatory Landscape report is based on responses from 1,100 Chief Financial Officers (CFOs) and Chief Operating Officers (COOs) from seven major global financial centres. Globally, profitability (37%), business costs (35%) and increasing regulatory issues (27%) were highlighted as the three biggest internal business concerns.

Community Business Founder Collects MBE for Services to CSR in HK Shalini Mahtani, founder of leading CSR-focused NGO Community Business has been awarded an MBE, or Member of the Order of the British Empire, in the Queen’s Birthday Honours List for her outstanding contribution to Corporate Social Responsibility (CSR) in Hong Kong. She received her medal from His Royal Highness, Prince Charles, at Buckingham Palace on 28 June 2013.

Over the years, Shalini has devoted herself to the community, leading, inspiring and supporting businesses to improve their positive impact on people, workplaces and communities. Under her leadership, Community Business has established a reputation as a thought leader on diversity and inclusion in Asia, and this year celebrates its tenth anniversary.

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Hong Kong’s CBD World’s Most Expensive Office Market For Third Year Running CBRE’s latest Prime Office Occupancy Costs review has found that Hong Kong is still out-pricing the rest of the world in terms of office space. Although financial institutions have become more cost sensitive, with some considering relocating to less expensive space outside the CBD, high-quality and premium space is still sought after, especially by mainland Chinese firms which are increasingly setting up their offices in Hong Kong (Central) in prestigious buildings. Commenting on the continuous top ranking of Hong Kong, Edward Farrelly, Head of CBRE Research for Hong Kong, Macau and Taiwan said, “Hong Kong is the most expensive office location despite weaker demand in the core CBD. Slower economic growth and exposure to uncertainly in international financial markets caused occupancy costs at the top end of the market to ease towards the start of the year. However, occupier options are severely limited beyond the Central sub-market with vacancy rates close to 3% in many key areas. This is providing a platform for strong rental levels across the market.” It is worth noting that on the other side of the harbour in Hong Kong, West Kowloon saw an increase of 9% in occupancy cost year-on-year to climb up one rank to the sixth of the most expensive list.

APAC Finance Professionals Hold Negative Economic Outlook eFinancialCareers, the leading financial career site, last month announced its 2013 APAC Employment Survey results on finance professionals’ confidence in economic outlook and employment prospects. Results show that three in ten Hong-Kong-based finance professionals (29%) claim their confidence in the Hong Kong economy has decreased in the last 6 months. Asked why their confidence had decreased, a quarter (26%) cited the poor government strategy, followed by the global economic conditions (23%), and the instability in global financial markets (17%). eFinancialCareers’ survey also shows that finance professionals believe their company performance over the past 6 months has hindered their career prospects. Four in ten (42%) of finance professionals in Hong Kong, as well as in Australia (43%), said their prospects have deteriorated.

When asked about the next 6 months, a third (34%) of finance professionals in Hong Kong forecast a weaker performing Hong Kong economy. Over half (54%) believe the same for their local economy in Singapore, as do over half (52%) in Australia.

New Appointments CBRE Strengthens International Project Marketing Asia Team CBRE has boosted its International Project Marketing team in Asia with the appointment of Victor Li as Director of International Project Marketing. Victor will be responsible for supporting the expansion of CBRE’s international project marketing business with a focus on Hong Kong and China. Victor will specifically assist the team in developing its sales strategy across China, supported by his extensive database of mainland contacts. His main activities will include the development, planning, management and implementation of project marketing campaigns including exhibitions and seminars, along with major sales. Victor has more than 18 years of experience in the real estate industry and is highly regarded by major developers as one of Asia’s most experienced international brokers. Most recently, Victor was a Director with Knight Frank in Hong Kong where he was the highest fee earner in the market. Prior to this, he was Associate Director at Colliers International for 13 years where he successfully marketed over 100 projects in Hong Kong and China.

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New Members CORPORATE ADDITIONAL STARTUP

YNETWORK

Hargreaves Industrial Services Ltd Jacqueline Ngan International Business Support Manager Tel 2325 2909 jacqueline.ngan@hsgplc.co.uk 2725, Tuen Mun Square Central, 22 Hoi Wing Road, Tuen Mun, New Territories, Hong Kong Industrial

Hamilton Advisors Limited Mavis Ma Account Manager Tel 3588 0031 mma@hamiltonadvisorsltd.com Suite 2909-10, 29/F, China Resources Building, 26 Harbour Road, Wanchai, Hong Kong Consultancy

BK Asia Pacific Ltd Nicholas Seymour Managing Director Tel 2687 2267 nseymour@bkasiapacific.com Suite 1901-2, 19/F, Hopewell Centre, 183 Queens’s Road East, Wanchai, Hong Kong Construction Shop Direct Group Sourcing Caitrin Adorian Head of Finance & Operations Tel 2738 1688 caitrin.adorian@sdgsourcing.com 18/F, Overseas Trust Bank Building, 160 Gloucester Road, Wanchai, Hong Kong Retail / Wholesale / Sourcing Hamilton Advisors Limited Robert Grieves Chairman & CEO Tel 2488 8866 rgrieves@hamiltonadvisorsltd.com Suite 2909-10, 29/F, China Resources Building, 26 Harbour Road, Wanchai, Hong Kong Consultancy AT Associates Hong Kong Limited Alan Taylor Director Tel 6280 0749 alan@atassociates.com.hk 22/F, 3 Lockhart Road, Wanchai, Hong Kong Consultancy Mira Moon Jaly Lai Director of Sales and Marketing Tel 2643 8811 charmmy.chu@miramoonhotel.com 388 Jaffe Road, Wan Chai, Hong Kong Hospitality

TMF Hong Kong Limited Michelle Woo Associate Director Tel 3188 8218 michelle.woo@tmf-group.com 36/F, Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong Financial Services EC Harris (HK) Ltd Timothy Robinson Partner Tel 2263 7470 tim.robinson@echarris.com 27/F, Millennium City 6, 392 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong Consultancy PricewaterhouseCoopers Andrew Henley Senior Manager – Assurance Tel 2289 1601 andrew.sf.henley@hk.pwc.com 22/F, Prince’s Building, Chater Road, Central, Hong Kong Accounting PricewaterhouseCoopers Thomas Johnson Manager – Assurance Tel 2289 2372 thomas.wd.johnson@hk.pwc.com 22/F, Prince’s Building, Chater Road, Central, Hong Kong Accounting Citibank N.A Jervis Smith Managing Director Tel 3419 8855 thomas.wd.johnson@hk.pwc.com 21/F, Tower 1, The Gateway Harbour City, Tsim Sha Tsui, Kowloon, Hong Kong Banking

Asia First Financial Intelligence Limited Jonathan Watkin Chairman Tel 3626 9169 jwatkin@asia-first.com 15/F, Nexxus Building, 41 Connaught Road, Central, Hong Kong Financial Services Concept Duette Creative Limited Carol Tsui Commercial Director Tel 2150 1947 carol@duettegift.com 607 Yenshen Centre, 64 Hoi Yuen Road, Kwun Tong, Hong Kong Trading Cellarmaster Wines Lizzie Fraser Business Development Director Tel 3191 2183 lfraser@cellarmasterwines.com 18/F, The Hennessy, 256 Hennessy Road, Wanchai, Hong Kong Wines & Spirits Elite Charters Kylie Waterstrom Director Tel 5354 9955 kylieww@me.com PO Box 298, Sai Kung, Hong Kong Hospitality ABN Impact Scott Lee Managing Director Tel 375 8847 scott.lee@abnimpact.com 2201, Times Square, Tower 2, 1 Matheson Street, Causeway Bay, Hong Kong Business Services Transitions Intl Ltd Lalita Raman Executive Career & Business Coach Tel 9156 4700 lalitaraman@transitionsintl.com 7/F, Unit E, Tower 3, Estoril Court, 55 Garden Road, Hong Kong Training

INDIVIDUAL Jeremy Woodall Tel 2151 3877 info@oxforduchina.org Suite 4018, Cosco Tower, 183 Queen’s Road Central, Hong Kong Caroline Court Tel 9731 1708 caroline.court@ap.cushwake.com 9/F, St George’s Building, Ice House Street, Central, Hong Kong

OVERSEAS London Strategy Unit Phil Lewis Partner Tel +44 203 176 6493 phil@londonstrategyunit.com Unit 11.1.1, The Leather Market, 11-13 Weston Street, London, SE1 3ER, United Kingdom Management Consultants Anglo Cathay Enterprises Richard Heygate Chairman Tel +44 777 188 7701 sirrichardheygate@anglocathay.com Birr Castle, Birr, Co Offaly, Ireland Trading

Think: Adventure!

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Tel: +852 2636 8388 hongkong@crownrelo.com

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Thank you for your continued support

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Shaken Not Stirred Sponsored By

23rd May 2013, Berliner, Wanchai

Tim O’Leary, Jim Mackie (Forth Capital)

Neil Logan (Henley Business School), William Lee (Innovation)

Martyn Ludlow (Forth Capital), Dorothy Chan (HKJC), Richard Beaven (Innovation)

Aline Coget (Powerling), Aaron So (IP Global)

Keith Mak and Felix Lie (Novotel Century Hong Kong Ltd.)

Sean Morgan (Search Office Space), Ian Kane

Andrew Davison (TNS), Deborah Payne (Eversheds), Bruce Bogle (TNS)

Candy Tsang (ISG), Christopher Claridge-Ware (Cooper Claridge-Ware), Llewelyn James (IP Global), Hades Chung (ISG)

Anita Martin (Absolute Discovery), Martin Copp (Artlink)

Daryl Li, Raymond Shuai and Jonathan Wong (KPMG)

Ceri Silk (Skeyndor Insitute), Stephanie Dixon (Flight Centre)

Takeshi Oshima (TNS), Holly Steans (HRS)

Emily Ferrary (British Chamber of Commerce in Hong Keith Mak, Martin Copp (Artlink) Kong), Candy Tsang (ISG), Andrea Demy (AGS Four and Alfred Aung (Artlink) Winds)

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