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Britain

IN HONG KONG November 2012

Vol 27

No 9

www.br i tcham.com

Gender Imbalance: The uphill battle for gender diversity in the boardroom Not For Sale

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Logistics Outsourcing

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Wage Payment Offences

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Burma Wave


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Contents Lifestyle: Burma Wave

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Gender Imbalance: The uphill battle for gender diversity in the boardroom

Employees Follow Your Purpose

5 Chairman’s Message

22 Organised Crime & Your Laptop

6 Gender Imbalance: The uphill battle for gender diversity in the boardroom

24 Lifestyle: Burma Wave 26 Recent Events

8 Baker Tilly Business Angels Programme 10 Logistics Outsourcing

12 CSR Steering Group 15 Myanmar 2012

18 Employees Follow Your Purpose 20 Directors & Officers Beware Liability for Wage Payment Offences by Company

28 Boxing Smoker 31 Upcoming Events

32 Member Discounts 34 Member Get Member 2012 36 Perspective 37 News and New Appointments 38 New Members 39 Shaken Not Stirred

Britain in Hong Kong Editor Sam Powney Design Winnie Li Lilian Yu Steve Mok 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 Becky Roberts 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.


I M I T E D China L G N I S in V E RT I r v ic e s

O U ) A D of pre-press segzhou H Z G N n (GUA in G u a ll r a n g e

F L E X ovides the fu d subsidiary D E E P S owne flex pr S p e e d g h it s w h o ll y t h ro u

Hong Kong Office

Guangzhou Subsidiary Office

1st Floor, Hua Qin International Building

Rm 1208-9, 12/F Hao Yun Commerical Plaza

340 Queen’s Road Central, Hong Kong

376 Xin Gang Zhong Lu, Guangzhou, China

Tel: (852) 2542 2780

Tel: (020) 2129 9508

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Fax: (020) 8956 2197

For more information, please contact Charles Zimmerman on (852) 2542 2780 or at charles@speedflex.com.hk


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Chairman’s

Message Success in business is not easy. It is not supposed to be. If a competitive market economy is efficient, businesses will find their margins competed away unless regulatory and other hurdles protect the incumbent, or IP protection holds off the competition. There are two main avenues that offer the hope of sustaining profitability. Continuous improvement of your product (computing, the better car companies) or your service (the best hotel brands) can support margins by staying ahead of competitors; while innovation (Amazon, Facebook) can create a new offer for the customer and an entirely new income stream. One way of thinking about whether a business is really exposed to competition is to assess whether improvement and innovation are its “trade marks” or whether it is resting on its laurels (and perhaps on its trade marks!).

In earlier decades, the small size of the market in Hong Kong together with the franchises offered by government in some sectors reduced competitive pressures. Today these easy profit opportunities are much more limited. In mainland China, brutal exposure to fierce competition is inevitable for many foreign companies. The days when developing markets offered fat margins and sleepy competition are long gone. Against this background, our members are continually looking for ways either to improve their current business offer or to find ways of innovating that will allow them to survive in this turbulent business world. The Chamber hopes that, by providing a range of thought-provoking events that allow businesses to assess the competitive landscape and explore opportunities for innovation, we can help British business to thrive in this challenging world, whether at the SME or multinational ends of the spectrum. Where you see gaps in how we are doing this, please let our energetic Chamber staff or our General Committee members know, so that the Chamber can engage in its own continuous improvement and innovation! In mid November, Christopher Hammerbeck and I will be visiting London for the annual Hong Kong Week. This should give us a perspective on current attitudes toward Hong Kong in London, both at the political and business level. Of course, it will also provide us with an opportunity to give them a first-hand view of the present situation in Hong Kong rather than one mediated through the press. In my December message I look forward to giving you some feedback on that potentially interesting dialogue.

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 Kate Kelly K2PR

Business Policy Unit Tim Peirson-Smith Executive Counsel

Financial Services Interest Group Richard Winter Quam Limited

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

Strategic Supply Chain Forum Dominic Jephcott Vendigital Limited

China Committee David Watt DTZ

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

Construction Industry Group Derek Smyth Gammon Construction

ICT IT Committee Craig Armstrong Standard Chartered

Scottish Business Group John Bruce Hill & Associates

YNetwork Committee Alison Asome

Education Committee Stephen Eno Baker & McKenzie


C ove r S t o r y

Gender Imbalance: The uphill battle for gender diversity in the boardroom

Following the highly successful event in 2011, the British Chamber’s Women in Business committee held a further panel discussion last month to explore gender diversity in Hong Kong’s boardrooms. Sponsored by Barclays and moderated by Kay M c A r d l e f r o m t h e Wo m e n ’s F o u n d a t i o n , t h e event’s speakers included Angelina Kwan, COO of Reorient Group, Carole Cheung, Senior Client Partner of Barclays, Fraser Murray, MD of Rock the Boat Consulting and Shalini Mahtani, Founder of Community Business.

The figures don’t lie. KornFerry’s well known Mind the Gap 2011 report put the representation of women directors in the largest 100 Hong Kong companies at just 8.6%. At the British Chamber’s recent Women in Business panel event, the panellists unanimously decried the dismally small number of women in top company positions in Hong Kong. Moderator Kay McArdle put it plainly, ‘It’s just not good enough.’ And yet Hong Kong has at least one key advantage for women executives, an advantage which women are much less likely to contemplate in western countries — carers for children and elderly relatives. Few other locales have the level of business infrastructure on the one hand and the availability of low cost, sometimes live-in, carers for family members on the other. Caring for children and relatives is an issue confronting many professional businesswomen, and a duty to which they will likely devote far more time than their male partners will. A committed workforce of carers close at hand does mean that Hong Kong has a comparatively high number of women in management positions (compared to the US for example). However, we are left with the question, if the carer advantage were removed, what would the prospects for Hong Kong businesswomen be then? Moreover, the plenitude of women in middle management quickly dwindles as we look upwards towards the post of company CEO, though Hong Kong does have a growing number of women on the boards of listed companies — now numbering around eleven hundred. Alice Eagly, Professor of Psychology at Northwestern University, explains that female representation in positions of authority can be viewed as a rising gradient, with fewer and fewer women to call on as you come to the highest levels of management. She dislikes the term ‘glass ceiling’ because, “It’s not that women are blocked from the upper level. It’s a progressive dropout that occurs for many different reasons.” Britcham’s Chairman Nick Sallnow-Smith, who introduced the Chamber event, explained his bafflement at the paucity of women on boards, “The interesting question to me is: why? Not how many and not whether


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3. Prejudice: While bosses are unlikely to deliberately favour male applicants over female ones, many human resources departments fall into the trap of selecting applicants who ‘fit the mould’. Whether they have their own HR or use outside agencies, employers have to be very clear in demanding a diverse selection of applicants for every role.

or not we should have quotas, nor what do we mean by diversity, but why? The issue seems to be, why is there not an obvious pool of women directors available when you look to put people on boards?” This echoed Mitt Romney’s response when asked about the very same issue just the previous day in America’s second presidential debate. Romney’s unfortunate quote about ‘binders full of women’ has become a subject of fun in the media, but his intention to find more qualified women seemed genuine. Ultimately, it is up to human resources firms and internal departments to come up with more female candidates and a more diverse mix of applicants in general. Shalini Mahtani later reinforced this message by highlighting the fact that diversity on company boards is a proven advantage. She also cautioned that many senior businesswomen she had spoken to (Shalini has likely interviewed more people about this issue than anyone else in Hong Kong) said that they would not choose the same difficult, ambitious career path if they could go back and make those decisions again. In the Chamber’s panel discussion, the main barriers holding women back from equal representation in highlevel business positions seemed to fall into three, closely related categories: 1. Pressures from the home: Women feel greater expectation on them to take care of family members. Very commonly, a woman is expected to sacrifice her career over her husband’s for the sake of the children, and again to sacrifice her career rather than her brothers’ for the sake of her elderly parents. 2. Pressures in the workplace: There is widespread evidence that many women do not actively seek the highest positions in their companies. The sharp ‘falling off’ of female representation in the stages between middle-management and CEO likely has much to do with company culture and poor ‘work-life balance’. Also, many women find that in contemporary company structures a prolonged leave of absence is a major career setback.

Firstly, let’s look at the connections between these three barriers. If women are more likely to halt their career for family reasons and are less likely to want to rise beyond a certain point in any case, that might partly explain the stubborn reticence of HR when considering women as viable candidates. If women have obligations at home, that explains their unwillingness to take on a job with unlimited responsibility. Also, over many years, even subtle prejudice can be a major discouragement against seeking further advancement. The closely interwoven nature of these pressures suggests that a holistic view of the problem might be more helpful. We already know that these pressures are as much about the bedroom and the kitchen as about the boardroom, if not more so. Thinking a little more broadly, they likely start in the classroom and the shopping mall too. Therefore, framing the problem as a purely business issue is misleading. For that matter, there is no saying that gender inequality is a purely genderbased issue either. Rather, it can be thought of as part of a much larger social structure and of our general pattern of life. In talking about boardroom gender parity, it seems we are chipping at the summit of a very large iceberg. However that doesn’t mean that businesses and organisations can’t improve conditions from within to the best of their ability (and perhaps without drowning in the bewildering complexity of social science). Some commentators even argue for political and legal pressure. For many decades the Scandinavian countries have employed proactive efforts to increase the involvement of women in business and government. In 2005, Norway became the first country to introduce gender quotas for company boards. Now, nearly 32% of the boardmembers on Norway’s largest listed companies’ are women. Nevertheless, for all its immediate success, there remain the usual question marks over the wisdom of introducing quotas. All the classic arguments against positive discrimination come into play: artificiality, unfairness, scope for manipulation and counter-intuitive reinforcement of prejudice. The mood of consensus at the British Chamber’s Women in Business panel was that for the time being the struggle for gender equality in the boardroom will have to be reactive, both at work and at home. While keeping the larger picture in mind, our own paths towards equality must be navigated one obstacle at a time.

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Business

BritCham Baker Tilly Hong

After six years trading in Hong Kong, we developed a strategy at Indigo Global to take our business to the next level. In order to expand our target client base, we planned to develop a market-leading, international workplace savings plan for multinational employers of all sizes. Inevitably, this required additional working capital. We headed to the SME centre of our bank, armed with our audited accounts and business plan. After making our case, the bank’s ‘former receptionist turned business advisor’ said our expansion plans equated to those “of a teenager with an unproven idea looking for start-up capital” and, thus, were too risky for a conservative organisation that had just lost in excess of US$20 billion on sub-prime mortgages. Our six years of continuous growth, even during the Global Financial Crisis, apparently meant nothing to this doyen of business development. We realised that, as is often the case with managing a growing business, a different approach was required. An internet search for business angels led to a unique business angel programme in Hong Kong run by the British Chamber of Commence and sponsored by Baker Tilly Hong Kong. Despite our initial preference to fund the expansion through short-term debt, rather than a share sale, we decided to make an application. Immediately, we knew we were dealing with a far more professional organisation than our bank. Britcham’s

response times and organisational levels would put the most service-orientated companies to shame. Information was quickly and clearly communicated. Following our submission, we were invited to participate in an initial screening. This involved presenting to four managing directors from different companies. These individuals truly understood the importance of raising capital for SME’s and felt so strongly about it, they were prepared to give up their time to help fellow business owners such as ourselves. The allocated presentation time flew by but we managed to finish with a couple of seconds to spare. The initial response from one of the committee members questioned why we were even there and not raising the capital from our bank. There followed 15 minutes of extremely valuable feedback and guidance on how to pitch to the business angels. The nature of the responses given and the time we were allocated suggested we had been successful in passing this initial test. We were extremely pleased when notice soon followed that we had been short-listed to present to the angels at the Hong Kong Club. We benefitted from further preparation organised by Britcham. A presentation training session was provided by a senior trainer of Connect Communications at the offices of Pinsett Masons. The entire process demonstrated how member firms of the British Chamber of Commerce were pulling


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Kong Business Angels Programme Indigo Global’s Experience David Shaw & Chris Anderson Directors, Indigo Global Limited

together to ensure candidates had the greatest possible chance of success. This was an extremely professional approach and proved invaluable to the success of our pitch. On the day, we presented to about 7 business angels and other members of the Britcham community. Despite having given hundreds of presentations over the years, we had no idea how well this particular presentation had gone and whether the Q&A session had been a success. Fortunately, reports from the panel were positive. The informal session after the event was an ideal opportunity to meet the business angels and discuss aspects of our pitch in greater detail; the only limitation being the time the angels had available for further discussion. However, Britcham followed up with each angel investor, ensuring they had copies of the respective presentations and contact details for the presenters. A week later, we were approached by one of the angels to discuss our project in greater detail. Following a number of additional meetings and with due diligence completed, an offer was made of 50% of the capital we hoped to raise. This provided the necessary resources for us to focus on developing an industry leading product. Eighteen months on, we have launched our international workplace savings plan and are now presenting it

to distributors and our target client base. We have received an overwhelmingly enthusiastic response. We could not have attained this without the support and investment generated by the Britcham Baker Tilly Hong Kong Business Angel programme. Without the vision of the British Chamber of Commerce in recognizing that an SME- funding void exists in Hong Kong, and the commitment of Baker Tilly Hong Kong and everyone involved in the programme who work to make it a reality, it would have taken several more years for us to be in the position we are in today. We cannot recommend the Baker Tilly Hong Kong Britcham Business Angel programme highly enough to business owners, investors and other potential programme sponsors. Hong Kong, once a mecca for entrepreneurship, has become an increasingly difficult environment for SME’s to flourish in in recent years. With programmes like this, innovations and visions still have an excellent chance of succeeding and contributing to Hong Kong’s continued success. Indigo Global specialises in the design and provision of corporate retirement services and workplace savings plans for multi-national employers. By combining innovative plan design with engaging communications, Indigo transforms the employee benefit proposition of its clients and the financial futures of their employees.

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Business

Logistics Outsourcing Mark Millar, Logistics Committee Chairman

Logistics

is probably the most prevalent and tangible of outsourced supply chain services — activities encompassing transportation, warehousing and related goods handling tasks are typically outsourced to a third party logistics service provider (3PL or LSP). In delivering the outsourced logistics solution, the provider will typically manage warehouse operations in multiple locations, operate or manage a fleet of trucks for transportation of goods, and provide freight forwarding services for international movement of cargo by sea and air, together with related customs clearance and documentation processing.

managing multiple logistics service providers in order to empower an integrated supply chain ecosystem — making sure all participants work effectively together to enable the efficient movement of parts and components to production facilities and distribution of finished products to customers. The challenges involved in managing multiple logistics providers has resulted in the evolution of the ‘4PL’ model — fourth party logistics — whereby the company appoints a ‘fourth party’ to manage all the other third party providers. Not dissimilar to outsourcing your logistics management department, the 4PL could be either a non-asset based management consulting firm or could in-fact be one of the 3PL logistics service providers involved in the supply chain execution. Both approaches have their own merits, but a common challenge is an inherent reluctance to openly share information with other — often competing — supply chain partners, best explained by the fact there are two distinct dictionary definitions of ‘collaboration’: (a) to work with others for mutual benefit; and (b) to willingly assist the enemy!

Businesses recognise that one single logistics service provider can rarely meet all of their supply chain needs on a global basis — despite many 3PL’s proclaiming to be everything to everyone, everywhere. Organisations therefore tend to select and appoint multiple service providers typically on a best-of-breed basis – seeking out the leading practitioners based on specific geographies, type of product (eg high value electronics, perishables) services required (eg inbound to manufacturing, retail distribution, reverse logistics) and transportation mode (air cargo, ocean freight, road transport).

The case for Outsourcing

Having appointed their preferred outsourcing partners, companies are then faced with the challenge of

Accenture contend that what matters most is not who executes a given function, but who executes it


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(scope of work) and the SLA (service level agreement), both of which are developed on the basis of mutual agreement and form the commercial basis of the outsourcing partnership.

best — and that who executes it best will usually be the organization with the most economic incentive to improve that function. Prentice and Hall argue that if an external outsourcing provider can perform activities more productively than the client firm, then the outsourcing provider should do the work. Their survey found that the most important reasons for outsourcing were: 1. Achieving Cost Savings 2. Gaining access to Outside Expertise 3. Improving Services 4. Focusing on Core Competencies 5. Gaining access to Technology By nature of becoming outsourced, the logistics activities concerned are subsequently purchased as services and therefore become subject to the critical success factors of services businesses, the three P’s of: • Physical Evidence — the results, the deliverables —typically measured through key performance indicators • People — the personnel that are involved in delivering the services • Process — the processes used for effective delivery of the services

International Best Practices Managing your outsourced logistics service provider entails a portfolio of expertise and disciplines, harnessed within two key frameworks that document the agreed services and performance expectations — the SOW

The Scope of Work (SOW) defines the activities being outsourced. This clearly outlines the requirements and expectations from both parties, and must be carefully crafted to encompass all the activities involved in the outsourcing arrangement. The Service Level Agreement (SLA) defines performance measurements and expectations. These are best defined through a set of Key Performance Indicators (KPI’s) that are both meaningful (not micro detail) and aligned to the business objectives. KPI’s should preferably be summarised in dashboard format and include some leading-indicator metrics that serve as an early warning system to enable sense-andresponse mechanisms to be deployed at the first signs of problems ahead. Within your supply chain ecosystem, the outsourced logistics service provider should be considered an extension of your business — a partner used for delegation (not abdication) and managed through collaborative B2B relationship management methodologies and continuous improvement processes.

Diligence during Evaluation As with all service sectors, evaluating and selecting the appropriate business partner for your logistics activities is fraught with challenges, whilst the consequences of mistakes can have massive impact on your business. Due diligence is essential and as you do not yet have any prior experience of the service providers being evaluated, you should place considerable emphasis on those that do — existing customers as client references together with market opinions from industry advisors and testimonies from former customers. In the context of references in service businesses, I like to use my simple litmus test of customer satisfaction, just two key questions: Would you buy again? and Would you recommend? Industry thought leader Mark Millar advises clients on best practices in evaluating, selecting and managing third party logistics service providers. He has been engaged as Speaker, MC or Conference Chairman at more than 240 functions in 20 countries and is recognized by the Global Institute of Logistics as “One of the most Progressive People in World Logistics”. 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

BritCham’s new CSR Steering Group Corporate Social Responsibility [CSR] can be defined in a number of ways, but essentially it’s about the way that business gets done….the integration of social, economic and environmental concerns into a company’s business operations, and its interactions with stakeholders. It can encompass a wide range of topics that not only includes the environment but also governance, human rights, labour practices, fair operating practices, consumer issues, community investment & development, stakeholder & employee engagement, and supply chain management….to name but a few! The British Chamber has recently set-up a new CSR Steering Group in response to member demand for more support on the subject of CSR, and we talk to a few members of the team to find out more.

BritCham Members Survey “Before setting up our group we surveyed Chamber members to ensure that we were clear on where to focus. We had a great response from many companies, both large and small, with some clear steer which has shaped our approach and priorities going forward” said Kathryn Jackson of KPMG, knowledge-sharing lead within the team.

CSR is a Journey “CSR is a journey that can start in a number of ways. From a passionate and enthusiastic member of staff, through demands from suppliers and distributors to expectations of customers and shareholders. Whichever way it starts, the first few steps are typically a long way off the point at which CSR is embedded within the DNA of an organisation….and where the true value for business really lies” says Kim Swan of Lloyds, and Business Benefits lead within the newly formed group.

Source : CSR Asia


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CSR is a competitive edge “Many people question the true value of CSR initiatives, yet there is increasingly strong evidence that an active CSR agenda, effectively integrated within the business, can lead to tangible results, offering a sustainable source of competitive advantage. For example, businesses often overlook the fact that CSR can significantly affect staff engagement, which can be shown to have a clear link to business results,” says Ninder Takhar of BT, who is leading on Engagement.

Source : Towers Watson Research

CSR Steering Group “With clear direction set by members, our mission is a simple one: Accelerating members’ understanding of, contribution to, and business benefits realised from, CSR in Hong Kong. There is already a lot of material and support available to members outside the Chamber on the topic, so we intend to stay focused on things that can make a difference for our members” said Simon Phipps of Towers Watson, and chair of the new group. The BritCham CSR Steering Group is in its formative stage, and will be working with the Chamber, its various committees and all its members to help further embed CSR in what we do. A few of the things coming up include: Showcasing of good practice in next month’s magazine. We are looking for examples, from different sized companies, that can show the real benefits to business of great CSR in action, ideally within Hong Kong. Please contact Sarah Powell of Gammon Construction Ltd with suggestions, or to nominate your own company. “Benefits to Business” event on 17th January 2013 at 5:00-6:30pm. An opportunity for post Xmas drinks whilst engaging in a stimulating debate on where the true benefits to business really lie. Keep an eye on the BritCham website for further details or please contact Kim Swan. www.britcham/csr.com. CSR stories, information & useful links will be stored within the BritCham website going forward. Please contact Becky Roberts at the Chamber for further details. “Accelerator Project 2013.” We are in the early stages of selecting an initiative for particular focus next year, with a view to driving a sustainable step-change in results. The intention is that this will offer members a specific opportunity to join forces with others and help make a difference — something requested through the members survey. At this stage all suggestions are welcome. Please contact Nick Marsh of Harvey Nash for further details.

The CSR Steering Group is a deliberately small, focused and committed group, working closely with BritCham Committees and its members to leverage resources and make a difference where it can. Thanks in anticipation of your support. More details to follow next month….. Steering Group members Committee member Alison Asome Helen Ashton-Ford Jolene Chan Kathryn Jackson Kim Swan Nick Marsh Ninder Takhar Rafia Choudhury Richard Seeley Robert Footman Sarah Sanders-Hewitt Sarah Powell Simon Phipps

Role in group Britcham Committees liason Articles / SME’s Benchmarking Knowledge Sharing Business Benefits Accelerator Initatives Engagement / MNCs Enriching Debate Diversity Government Networking / Mid Caps Showcasing Chair / Media

Contact aasome@hartgiles.com hashtonford@pentland.com jolene.chen@prudential.com.hk kathryn.jackson@kpmg.com kim.Swan@lloyds.com nick.marsh@harveynash.hk ninder.takhar@bt.com rafia.choudhury@fco.gov.uk richard.seeley@barclays.com rclfootman@netvigator.com sarah.sandershewett@erm.com sarah.powell@gammonconstruction.com simon.phipps@towerswatson.com

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Take your business to new heights

Exciting Investment Opportunities! The British Chamber of Commerce is hosting its tenth Business Angel Event sponsored by Baker Tilly Hong Kong on 22 November 2012. This initiative provides an opportunity for new businesses, or existing small businesses looking to expand, to present their business plan in front of an audience of potential investors. Each candidate is screened before a committee of business professionals before the event and the investment opportunities that are subsequently presented on the day are high quality and often very exciting. Who are we looking for? This programme is designed for Angel Investors or their representatives who are looking for sound investment opportunities from Hong Kong based companies of around USD$100,000 to USD$2 million. Angels should either be high net worth individuals looking to invest, investment companies or representatives of investors and the programme is open to both members and non-members of the British Chamber of Commerce. There are still spaces available at this event for any potential investor who would like to hear more. Space is limited so please let us know as soon as possible if would like to be part of this unique investment opportunity. Please visit angel.britcham.com to register or email emily@britcham.com for more information.

Sponsored by:


Britain in Hong Kong

Business

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Myanmar 2012: Investment challenges and opportunities

Anthony Nightingale Director, Jardine Matheson Holdings Ltd

Myanmar

is, I believe, poised at a fascinating moment in time. For almost five decades, while the rest of Asia has offered huge opportunities, Myanmar has stagnated, remaining impenetrable and riddled with risk. But I hope and believe that this is about to change. Change may come more slowly than we might like and predict, but I sense — as we did on the doorstep of China in the late 1970s — that decades of disastrous and damaging isolation are coming to an end. As one lawyer based in Yangon commented to me some weeks ago: “The government is doing things that it does not need to do if it were doing things just for show.” There is today a buzz about Yangon, and a general feeling that this time, reforms are for real. But if it is right that there is no going back, it is wrong to think the journey forward is going to be plain sailing. There is an immense task faced by the Myanmar administration as it seeks to modernise and open the economy. We are likely to see false starts and abrupt policy changes as government feels its way forward but I believe these are teething troubles which will settle down. The military can be expected to continue to play a strong role, for some years to come, but that need not be a problem. Both Indonesia and Thailand have had strong military influence but that has not stopped these economies from growing successfully.

Let me first give some broad perspectives: First, Burma went into its 5-decade period of isolation as a postcolonial economy built on delivering natural resources like wood, jade and rubies to Britain and the rich, developed countries of the west. It emerges 50 years later not only among the poorest nations in the world, but as an economy that is firmly focused on, and part of, the economies of Asia. Today, at least 60% of its trade is with Asia. Next year Myanmar will host the South East Asian Games, and in 2014 it will be chair of ASEAN – the Association of South East Asian Nations. In 2015 it has important obligations on trade and investment to fulfil to its fellow ASEAN members as part of the ASEAN Economic Community. Second, Myanmar has emerged to become a very important country from a strategic as well as a resources point of view. Pause for a very short time in front of a map of the Asia Pacific and you see Myanmar’s pivotally important future role as a bridge between China and the markets of the West. Myanmar’s land bridge is an important future source of strategic comfort. The third main introductory point must surely be Myanmar’s rather ambivalent attitude to China, illustrated on the one hand by President Thein Sein’s five-day stop-over in China on his way to New York and the United Nations a month ago, and on the other by public protests over planned Chinese investments.

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Business

With most of its investment in energy and infrastructurebuilding, China’s interest in Myanmar’s vast resource wealth is undisguised, and a source of opportunity and anxiety in equal measure. Roughly four per cent of Myanmar’s population is ethnically Chinese, and some say these families run almost a quarter of the country’s businesses. A significant proportion of the overseas Myanmar population that are already playing an important pioneering role in opening up the economy are also ethnically Chinese. But Myanmar’s 2,200 kilometre border with China has a troubled history that remains unsettled even today. Whether under the current military-dominated leadership or a future democratic Government, leaders in Naypyidaw will almost certainly remain anxious to limit China’s huge influence in the country. This will give investment opportunities to others that might otherwise not arise. South East Asian investors will undoubtedly develop strong links over time. So too will Korea, and Japan. Hong Kong, as a key financial and trading hub for East Asia, will see much more interaction with Myanmar. And what about the politics? While we must always be ready for the unexpected, people seem generally sanguine on the political side, with little fear of a sudden military backlash or a major flare up of the separatist conflicts — though clearly important issues remain to be resolved particularly in the Kachin area. The president seems now domestically to be receiving due credit for his pivotal role in the reform process. And on the ground, it is quite clear that the once huge gap in popularity between him and “The Lady” has narrowed considerably. The President’s recent trip to the US and his speech to the UN has shown that the world has given him credit for much that has recently happened

in Myanmar. Recent strong debates in parliament have shown that the reformers and hardliners are pitted against each other but this shows that parliament is not a mere rubber stamp. There appears to be a genuine political process working. But today I would like particularly to talk about investment opportunities and challenges. Perhaps the single most important initial step of interest to foreign investors was the unification of the currency in April this year. The official rate of 6 Kyat to a US$ has been abandoned, and replaced with a managed exchange rate regime where the current rate stands at around 840 Kyats to the US$. Land laws have been promulgated that give investors the right to lease land up to 60 years and this is likely to be revised to 50+10+10, a total of 70 years. While previously foreign investors could only lease from the government, they can now sublease land from local Myanmar individuals too. A Foreign Investment Law (FIL) has finally been approved after significant horse-trading between the reform-minded elements in the government and large local businesses fearful of international competition. Foreign investor interest will depend heavily on how the law is implemented. Regulations and the implementation process are still unclear, and will determine foreign investment in sectors like agriculture, fisheries, some “sensitive” services and small-scale manufacturing. The time-table for scaling up the employment of local employees is extremely challenging in view of the scarce availability of local skilled and professional persons. In sum, the new FIL will provide greater comfort to foreign investors, many legal and regulatory uncertainties remain. Other major reforms are under consideration, and will play an important role in facilitating investment. First the banking sector is to be opened up. At present, the country has four state-owned banks, and 19 private banks, but no foreign banks can operate, and banking as we know it in the west barely exists. Virtually all payments are in cash, and there is barely any credit card infrastructure. Foreign banks will be allowed to enter the market in due course, but they will in the first stage have to go in as JVs with local banks. One area of financial services which will receive early access is micro finance which is crucial in providing credit to the agriculture sector. At Jardines, we have a share in a bank in Cambodia called Acleda which specialises in this field and is now applying for a licence for Myanmar.


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Second, the government has created at least three large Special Economic Zones in Dawei in the south, Thilawa near Yangon, and at Kyaukphyu in the north west, and it is laying plans for a further 29 industrial enterprise zones. Numerous incentives are being offered to investors in these zones and power supplies are being strengthened. Since the Japanese Government agreed to forgive US$3.7 billion of Myanmar’s debts, Japanese companies have been particularly active. The World Bank and ADB are also said to be restarting their lending programs to Myanmar. But where should investors focus with greatest confidence? With severe and frequent power cuts throughout the country, and even Yangon experiencing daily power rationing this last summer, investment in power generation is likely to be keenly sought. So too with other critical infrastructure — not just roads, but telecommunications. Operating in Yangon today with no stable access to the internet or any reliable (or reasonably priced) mobile phone services is a serious impediment to investment. Another sector with huge needs for modernisation and improvement is education and there will be opportunities to offer services in this field. The government remains extremely cautious about companies that want to set up in Myanmar to import foreign goods for consumption, and this anxiety is likely to remain strong for some time to come. But investment in simple processing for export — like in garments or plastic goods — will be encouraged. Investors in sectors well placed to export and underpinned by the country’s very rich natural resource base are likely to be

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welcomed — adding value to food products, gems or timber, for example. Of all the sectors, agriculture stands out, employing two thirds of the working population. It is essential to raise the livelihood of this group of people for the government to position itself favourably for the next elections. When it comes to the crunch, investors that generate jobs will get a good hearing. President Thein Sein and Aung San Suu Kyi have each said they need to create one million jobs by the time of the next elections in 2015. For potential investors, looking at a country that has been closed to the world for so long, there are of course many significant obstacles: the absence of all aspects of infrastructure will be troubling for a long time; shortages of skilled people and institutional inexperience will weigh heavily too. Patronage, monopolies, and corruption will put many international companies on the defensive. And until sanctions on Myanmar are fully lifted normal growth will be hard to achieve. In conclusion, a half century ago, the Far Eastern Economic Review predicted that one of the most promising economies in Asia was Myanmar. Hindsight has shown that their crystal ball was badly out of focus, but there were good reasons for optimism at the time. With its rich natural resources, lucky location, youthful demographics and plentiful labour force, Myanmar is well poised for success. While there is still much to be done, a careful and well planned entry today will deliver worthwhile rewards — so long as you have the patience to look towards a distant horizon.

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Business

Employees Follow your Purpose not You

Louisa Wong, Executive Chairman of Bó Lè Associates

Today , leaders have a very tough job. You need t o d i re c t t h e c o m p a n y t o achieve business targets while balancing employee engagement and revenue generation. Most importantly, you need to form a vision for the business, creating a direction in which the company will expand and develop further. This is where a good business purpose is invaluable; a purpose unites a business, providing a common objective that plots the intended course of the company. It also fosters engagement, allowing employees to become part of something bigger than the sum of its parts. Furthermore, a unified purpose shows both customers and shareholders the fundamental direction of the business, and in turn builds brand value and loyalty. What is a company purpose? A core company purpose is a question of “why does this firm exist?” It is an idealistic motive or reason for

the company’s existence, defining why it operates. In a company with a well-defined purpose, every product it produces, every new industry area it expands into, every daily activity, will be geared towards achieving a unified objective. A company purpose is an ideal or goal above and beyond tangible results, encompassing the core of the business, and is always briefly attainable but unachievable. For example, a pencils producer may list their purpose as “provide writing tools to help further the education of children”. Note that this goal is briefly attainable but unachievable in the long term, and also explains how the company will better the world or society that it operates in. It also has zero financial consideration — all businesses exist to generate revenue, but the goal of simply earning money is not a direction. How the firm earns money is where the importance of purpose lies. Business leaders should establish a clear purpose for their businesses, and use it to create a clear path for both short-term and longer-term goals of the company. Senior executives should act on the company purpose, creating a vision for where they want the company to be in the foreseeable future and placing down tangible


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goals for the business. Employees in turn follow the core purpose of the company through aiming for these tangible and short-term objectives. Essentially, the vision and values of the leadership team should guide the employee, but the purpose of the company should guide senior management and the business as a whole.

Why should your company follow a purpose? The biggest benefit that a good company purpose brings to the table is employee engagement. Studies have shown that there is a positive correlation between company purpose statements and work performance, highlighting the importance of a purpose in influencing corporate citizenship. Engaged employees not only perform at a higher level at work, but they are also less likely to desert the company in times of economic turmoil. An employee that is fully engaged with his work will stay because of what he can provide to the company, while an employee that has little motivation will stay only for what the company can provide him. As well as improving employee engagement, a company purpose helps build brand reputation and loyalty. By displaying commitment towards bettering others, it displays the company’s strong moral principles, encouraging customers to buy from the company as well as potentially attracting new talents to its cause. Additionally, following a company purpose can make succession planning easier. Often, there is confusion and uncertainty following the departure of a senior executive, as there is the perception that direction has been lost within the company. However, a good company purpose ensures continuity: not only will the replacement executive have an objective to build a strategy towards, but employees will still have the overarching goal of the business to follow, and investors can remain confident that the company retains the same ambitions. A good example of a company that employs a solid forward-looking purpose is Merck & Co, the oldest and second largest pharmaceuticals and healthcare company in the world. Merck aims to “improve human life”, and this core objective has guided the company for decades. George W. Merck, who led the company from 1925–52, said “We try to remember that medicine is for the patient. We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear.” Overall, there are key benefits to having a company purpose. Not only can it be an effective compass for the company’s future direction, but it also increases

employee engagement as well as acts as a great marketing tool to for brand development. Companies that have yet to establish their core purpose should do so. By having a purpose, leaders can solidify the company internally and chart a specific direction, efficiently and effectively guiding the future of the business. 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 520 staff including 470+ experienced consultants and researchers, and 50+ support staff including Finance and Accounting, IT, in-house Recruitment and Training, and Marketing and Communication specialists. We have been ranked No. 1 in China and Indonesia and also in the top three in Vietnam, the Philippines, and Malaysia. Our core competencies are in handling senior level positions including CFOs, CEOs, Regional Heads, General Managers, and Functional and Business Heads. Operating since 1996, we have placed over 12,000 successful candidates. Our Top 10 Clients are all Fortune 100 companies and have consistently accounted for over 30% of our total revenues. Out of our more than 900 clients, 31% are from the consumer industry, which includes FMCG, retail, hospitality, while 29% are from the financial services sector and 28% are from the industrial sector. Other major sectors include technology and pharmaceuticals.

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Business

Directors & Officers Beware Liability for Wage Payment Offences by Company

Kim Boreham Partner, Tanner De Witt

Directors and officers of companies with staff in Hong Kong should be aware that they may be held criminally liable and ordered to personally pay arrears in wages if their company commits wage payment offences with their consent or connivance or due to their neglect. The Labour Department has successfully prosecuted a number of directors for wage payment offences and failure to pay awards, with sanctions ranging from fines, orders to pay the outstanding wages, community service and imprisonment.

imprisoned for up to three years. An employer convicted under the Employment Ordinance may also be ordered to pay wages or sums outstanding at the time of conviction.. The fact an employer is a company does not protect its directors or officers if they are responsible for deciding whether or not employees get paid on time. Under the Employment Ordinance, “employer” means not only the company that has entered into the employment contract but also the duly authorized agent, manager or factor of that company. If a wage payment offence committed by a company is committed with the consent, connivance or attributable to neglect on the part of any director, manager, secretary or other similar officer, they will also be guilty of the offence.

Liability for Wage Payment Offences Recent examples The Employment Ordinance requires that wages, end-of year payments and other termination payments be paid within seven days of the date they fall due. An employer who “willfully and without reasonable excuse” fails to pay within time commits an offence. Similar offences arise for failing to pay an award of the Labour Tribunal within 14 days and for certain breaches of the Minimum Wage Ordinance. Offenders may be fined up to $350,000 and

In HKSAR v Li Fung Ching Catherine, a director appealed unsuccessfully against her conviction for non-payment of wages. She was one of the company directors and her main duties included the daily operation, personnel and finances of the Company. The Magistrate had found that the company’s financial difficulties were not a reasonable excuse for failing to pay the wages as it had the funds


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but deliberately failed to pay the wages, deciding to meet other operating expenses instead in the hope of keeping afloat. He determined this had been done with the director’s consent or connivance and fined her a total of $110,000.

The Court determined the director’s objection to the decision not to pay wages for two months was only an oral one and no practical or more active act had been taken by her to stop the unlawful behavior. Not only was she not active enough, she also failed to draw a clear line to separate herself from the decision. In any event, she was held to have “connived” in the company’s act of not paying the wages due, the meaning of “connivance” including “assistance in wrongdoing by conscious failure to prevent or condemn; or tacit permission”.

Protecting Yourself

The Court of Final Appeal rejected the director’s appeal, observing that, even assuming she had voted against withholding the wages, it was open to the Magistrate to find she had connived in the failure to pay wages due. She had remained a director and was responsible for the company’s daily operation, personnel and finances. She retained her position throughout November knowing the October wages had not been paid and that other expenses would be given priority so the November wages would not be paid either. Other recent prosecutions include:•

a director sentenced to 21 days’ jail (suspended for 24 months), fined $15,000 and ordered to clear the outstanding wages of $100,000 for his participation in the wage offence;

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a director fined the maximum penalty of HK$350,000 after his company failed to pay wages and wages in lieu of notice to four employees and defaulted on payment of a Labour Tribunal award for $61,800. The company received a separate fine of $345,000.

The above cases serve as a stark warning to any director or officer in charge of a company or its finances and personnel that if they participate in a decision to withhold or delay payment of wages or an award they are at risk of being found to have connived in that decision even if they raised an objection to the decision if no further steps were taken to distance themselves from it. To protect themselves from such claims, directors and officers should: 1. Take all reasonable steps to ensure that the company pays employees their wages in full and other payments required under the Employment Ordinance as they fall due; 2. Object in writing to any decision the company may make to delay payment and draw the company’s attention to the possible legal consequences; and 3. If the company insists on pursuing such a decision, the director or officer concerned should consider taking legal advice as to what further steps they should take to limit any personal liability for the company’s acts. For more information please contact: Kim Boreham Partner +852 2573 5000 kimboreham@tannerdewitt.com Tanner De Witt is an independent Hong Kong law firm established in 1999 whose core practice areas are corporate and commercial; litigation and dispute resolution; insolvency and restructuring; employment and white collar crime. The firm’s highly reputed team of over 30 fee earners provides legal services to clients worldwide who have business interests in Hong Kong, China and the Asia-Pacific region. Information about the firm’s practice areas and experience is available at www.tannerdewitt.com. Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.

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Business

Organised Crime and Your Laptop

John Handley, Security Consultant, BT

Where are we today?

Organised Crime or Political Motivation?

Almost every day there are reports of data breach, data loss, website break-ins, defacement of systems and networks compromise. One must ask the question “why is this happening”? Firstly, let’s try to work out what is in fact the target here to these attacks. Is it company reputation, share value, data, intellectual property, financial gain, perception management or making a political statement?

Now back to reality, Paddy Power the online gambling website was allegedly hit with a DDOS (Distributed Denial of Service) attack in early April 2011.

Maybe it is controlling the ability of a business or government to conduct its activities using the internet as a medium? The Bar Council of Ireland Website defines Tort law; “Tort law is concerned mainly with injuries to the person, reputation, property or business.” If that injury for example, is actually the prevention of the ability to do business over the internet it starts to be come less transparent and as a result it starts to become less attached to law. In the United Kingdom (England and Wales) the law has progressed to a stage that criminals can be prosecuted and allotted custodial sentences on conviction of computer related crimes [1]. In Ireland we have a certain level of codified law but the actual cases that go to court are few and far between [2]. For example: the website of the Department of Justice and Equality states that: “No clear definition of cyber crime exists, but the term is usually taken to describe the use of the Internet or other new communications technologies as a tool to commit a crime — or, as has been said, to provide new ways to commit old crimes.” [3] Scotland has its own legal system and is beyond the scope of this discussion.

Sony, a music and online computer gaming giant recently had their website breached and credit card details of customers were taken by the attacker(s). The impugned company released a statement that all was ok as the stolen data was in fact encrypted [4]. Curiously some days before that statement, security researchers reported on an on line auction of the decrypted card details at a knock down price [5], [6]. This infuriated the denizens of other card thieves as the price of card details was suddenly devalued.

From Nuisance to e-Business This is not the work of traditional script kiddies who used to launch nuisance attacks on internet facing ICT infrastructure to prove their prowess in “taking on the man” to their peers for kudos etc. This was in fact a well planned, executed and lucrative attack if the words of the company and the Trend Micro researcher are to be believed. Names of perpetrators like Anonymous and LulzSec are readily noticeable in the media. The group Anonymous have been implicated in “hactivism” or political attacks on web sites and alleged theft of data, allegedly recently threatening to attack the website of Federal Reserve in the United States [7]. Another group LulzSec, for example are attributed the recent alleged DDOS (Distributed Denial of Service) attack on the CIA website, among a litany of alleged attacks [8] and the UK’s SOCA (Serious Organised Crime Agency) website [9]. The two groups I mentioned are only examples of the plethora of alleged “collectives” in cyberspace.


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Who are the Other Players? In 2007 Russia, Eastern Europe and Brazil were discussed as being sources of Organised Information Crime, with Asia seen as a growth area. One online retailer paid US$40,000 to have his site allowed back on the internet, free from attack. [10] The 2009 General Report of ENISA (European network and Information Security Agency) discusses the idea of developing a Culture of Security and that we should not forget the issue of (extracted from the report, in italics) “financially motivated organised cyber-crime” and also “politically motivated cyber attacks” [11] One organised crime source RBN (The Russian Business Network) are attributed as hosting malware and pornography, originating DDoS attacks and spam. [12]

Why Should I be worried about my laptop in all of this? DDOS attacks are launched from PC’s, laptops, servers that have been compromised by malware and are controlled as part of a Botnet. To understand a Botnet it is essential to know where the concept originated and this manifests itself in the way of IRC (Internet Relay Chat). IRC is essentially a mechanism for interactive text based communication using computers and a connected inter network. IRC was developed in 1988 and one year later the first IRC Bot was developed. Zou et al state that a “ “botnet” is a network of computers that are compromised and controlled by an attacker” [13]. Infection can be as simple as browsing to a website or a Google search response and unknowingly downloading malware that can bypass traditional Firewalls, IPS (Intrusion Prevention Systems), local anti virus, anti spyware and local firewalls and operating system call mechanisms.

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One such standard which BT are certified in, in our hosted data centres, is ISO27001 “Information technology — Security techniques — Information security management systems — Requirements” [14]. BT also engages our customers on a consultancy basis to bring them on the journey of Information Security Management. BT approach Information Security and what is now referred to as the “Advanced Persistent Threat” seriously and are always willing to understand our customers needs. Finally to quote a research colleague of mine who recently tried to develop a strategy to combat the malware writers, “Talk to each other, especially about what keeps you awake at night!”. Remember part of the strategy of malware writers is to play on the fact that we are reluctant to talk about security concerns, breaches etc. You may be very surprised to learn that we all have similar concerns and a co-operative approach of information sharing to Information Security Management will reap rewards.

Bibliography 1. Walden, I., ed. Computer Crimes and Digital Investigations. 2007, Oxford University Press. 2. Dennis Kelleher, K.M. Computer Crime. 2007 [cited 2011 24 June]; Available from: http://www.ictlaw.com/crime.htm. 3. Equality, D.o.J.a. Cybercrime — What is Cybercrime? [cited 2011 24 June 2011]; Available from: http://www.justice.ie/en/JELR/ Pages/Cyber_crime. 4. Leyden, J. Sony calls in data Sherlocks to unpick megahack disaster. 2011 4 May 2011 [cited 2011 24 June]; Available from: http://www.theregister.co.uk/2011/05/04/sony_hack_ investigation/. 5. Snuffy. PSN Hackers Auctioning Off User Data. 2011 29 April 2011 [cited 2011 24 June]; Available from: http://sneakypeakz. wordpress.com/2011/04/29/psn-hackers-auctioning-off-userdata/.

Add to this the fact that most PC users insist on being a local administrator with the ability to install software unchallenged. Once an infected host is present on a network, the malware may attempt to search for other hosts to infect etc.

6. Santosh. The PSN Credit Card Auction! 2011 14 May 2011 [cited 2011 24 June]; Available from: http://portal.aecorp.in/2011/05/ the-psn-credit-card-auction/.

Once hosts are infected with botnet malware they phone home and communicate with their Command and Control servers, accepting commands to direct attacks such as SPAM and DDOS for example. Traffic can be tunnelled within traditional network traffic such as web and email using standard networking protocol ports or even use encryption channels which may avoid security controls.

8. Telegraph, T. LulzSec hacking: a timeline. 2011 24 June 2011 [cited 2011 24 June]; Available from: http://www.telegraph.co.uk/ technology/internet/8589677/LulzSec-hacking-a-timeline.html.

What Can We Do? Common sense is a good start for the home PC’s, defence in depth is a head start. Adoption of an ISMS (International Security Management Standard) for the Enterprise is a Current Best Practice. This works from the top down in an enterprise environment and has maximum support from top level management, ensuring its success. The tenets of the ISMS are “Plan, Do, Act” in an iterative manner.

7. Leyden, J. Anonymous vows to attack Federal Reserve. 2011 14 June 2011 [cited 2011 24 June]; Available from: http://www. theregister.co.uk/2011/06/14/anonymous_plats_assault_on_ federal_reserve/.

9. BBC. Soca website taken down after LulzSec ‘DDoS attack’. 2011 20 June 2011 [cited 2011 24 June ]; Available from: http://www. bbc.co.uk/news/technology-13848510. 10. Sullivan, B. Who’s behind criminal bot networks? 2007; Available from: http://redtape.msnbc.com/2007/04/whos_behind_cri. html#posts. 11. ENISA, E.N.a.I.S.A.-. Securing Europe’s Intonation Society, General Report 2009. 2009 [cited 2010 10 November]; Available from: http://www.enisa.europa.eu/about-enisa/activities/ programmes-reports/general-report-2009. 12. RBNexploit. Russian Business Network (RBN). 2011 [cited 2011 28 January]; Available from: http://rbnexploit.blogspot.com/. 13. Cliff C. Zou, R.C., Honeypot-Aware Advanced Botnet Construction and Maintenance. International Journal of Information and Computer Security (IJICS), 2010(4(1)): p. 30-51. 14. International organization for Standardization, I., Information technology — Security techniques — Information security management systems — Requirements 2005.

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Lifestyle

Burma Wave During the first ten years of the 21st century, Myanmar received its fair share of bad press. Whether from natural disasters such as 2008’s Cyclone Nargis, the much publicized plight of the Rohingya — Western Myanmar’s minority Muslim population, or due to the detention of the country’s most prominent democracy advocate, Aung San Suu Kyi. While tourism in neighbouring Vietnam, Thailand, Cambodia and Laos flourished, Myanmar was blacklisted by the majority of politically correct backpackers. However, since Aung San Suu Kyi’s release in 2010, tourism to the country has skyrocketed. While it is often plugged as “the” place to go to get away from the hoards, the beaten path that winds its way through Southeast Asia is steadily creeping towards Myanmar. There is still time before the dusty streets of Yangon come close to resembling anything like Bangkok’s Khao San Road, but something has to be said about traveling where few have gone before. On a recent trip to Luang Prabang as I sat amongst 300 other tourists waiting to give alms to the line of monks dodging the motorcycles that tore down the road, I couldn’t help but think I’d missed the boat a little bit. Picture that scene fifteen years ago with no more than a few flickering bulbs to light the predawn sky, and nothing but the sound of footsteps and the rustle of the monk’s robes as they shuffled by. That scene is Myanmar now.


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Yangon Yangon (formerly Rangoon) is the former colonial capital and Myanmar’s commercial centre. While the administrative capital was moved to Naypyidaw in 2005, Yangon remains Myanmar’s largest city and is very much the country’s nucleus. The military junta’s iron tight grip on power and widespread corruption resulted in a half-century legacy of neglect to its infrastructure. Amazing old architecture is on the verge of falling down, traffic has soared in the past several years, and bizarrely (or fortunately depending on your tolerance for noise pollution) motorbikes are banned in the city exacerbating the congestion. Despite this, the city still has a great deal of charm. When you sit in the golden Shwedagon Pagoda surrounded by meditating monks and watch the sun set, you will know why you came to this country. We recommend the following activities and sites around Yangon: • Bogyoke Aung San Market — Shop for handmade bricabrac, textiles and gemstones in this sprawling 70-yearold market comprised of over 2,000 stalls. Even if nothing catches your eye, it gives you the perfect opportunity to chat, laugh, and test out your bargaining skills with the local vendors. • Old Colonial District — Worth wandering around to inspect the beguiling old architecture. If the crowds and heat get to you, nip into the 116-year-old Strand Hotel for a cool drink. • Taukkyan War Cemetary — Dedicated to Commonwealth soldiers who died in Burma during the Second World War, this isn’t for everyone, but we found it fascinating and it is very well kept. • Le Plenteurs Restaurant — Set in an old colonial house and run by a Swiss-German couple, the food here is excellent, and the best part is they provide return transport from your hotel in an old 1947 Vauxhall classic car. Our Hotel Pick: Governor’s Residence by Orient Express A 46-room hotel in the Embassy district of Yangon, the hotel gets you away from the hectic town center. The hotel has a spa, swimming pool, highquality restaurant and an old colonial bar that serves as a gleaming reminder of a bygone age.

Inle Lake A stunning natural lake in central Myanmar, Inle Lake is surrounded by hills and ringed by pristine villages and giant banyan trees. The ground is extremely fertile with wheat, bananas, beans, coffee, tea, sugarcane, mango and avocadoes growing as far as the eye can see. On the lake itself there are about 25 unique villages, all supported on stilts, where farmers and fishermen live and eke out a livelihood. Farmers grow crops on floating gardens and visitors can take boat trips stopping at the different houses and shops as they choose. It is an otherworldly experience and one that offers amazing insight into the lives of the boat people. We recommend the following activities: • 1-3 day trekking excursions spending the night at monasteries dotted around the surrounding hills. • Unwinding and doing a little wine tasting at a French-owned vineyard that produces very pleasant wines. • Cycling around the lake stopping at temples and monasteries as you choose. Our Hotel Pick: Inle Princess Resort This lake-side property has a genuine boutique feel, and they make arts and crafts on-site which are on display in the rooms. Each room is full of character with mud fireplaces, boat-shaped wooden baths, and walls decorated with flower etchings. The resort provides excellent service from properly trained staff as well as a spa, organic vegetable garden. The stunning views over the lake and mountains are unparalleled.

Bagan Famous for being home to more than two thousand ancient temples and pagodas, Bagan is an absolute “must” on any Myanmar travel itinerary. The highlight of many trips is setting off at dawn in a hot air balloon and floating over the ruins as the sun rises. Watching the mist lift over the thousands of temple complexes that dot the land, one can’t help but feel a sense of old world adventure being in the wicker basket of a hot air balloon. Our Hotel Pick: Aureum Resort Set within the Bagan Archaeological Preservation Zone, this expansive resort and luxury spa is in a spectacular location and overlooks many pagodas. The hotel design is outstanding and the property has two pools, a spa, a fitness center and a gigantic viewing tower. This is but a brief glimpse of the destinations, activities and wonderfully unique places to stay in Myanmar. Sail up the Mekong aboard a lavish river boat, explore the ancient capital of Mandalay with its beguiling temples, and end your holiday on the coast at Ngapali Beach, Myanmar’s only beach destination on the Bay of Bengal. Wherever it is you choose to go on your adventure into Myanmar, we predict that one feeling will overwhelm all others. And that is the feeling that you are very much in Myanmar, and nowhere else.

Bespoke travel company Lightfoot Travel (www.lightfoottravel.com) is an Asia-based tour operator specializing 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


Recent Events The Annual Economic Debate — “China, Europe and the World: Is the End Nigh?”

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Despite the optimistic start to 2012 displayed by asset markets the crisis in Europe will just not go away and worries about China are being expressed by an ever larger number of people. Add to this the US ‘fiscal cliff’ in 2013 and the question has to be, are we heading out of the eye of the storm back into the hurricane? Can the world as we have known it for the last 40 years survive this perfect storm? Chamber members gathered for the Annual Economic Debate held at Island Shangri-La on Thursday 13th September, where Dr Jim Walker, Founder & Managing Director or Asianomics and Dr Simon Ogus, Founder & CEO of DSGAsia discussed the economic climate and provided their thoughts to these questions.

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Myanmar Re-engages the World: Celebrate? Beware? Or Both? — Anthony Nightingale, Director, Jardine Matheson Holdings Limited

Through five decades of brutal, reclusive and xenophobic military rule, Myanmar has become one of the world’s poorest and most backward pariah states. But at almost breakneck speed under the Presidency of former General Thein Sein, almost all political prisoners have been released — including the charismatic Nobel prize winner Aung San Suu Kyi, democratic institutions are being built, and the economy is being opened up. Anthony Nightingale, who has spent more than four decades working in Asia on behalf of the Jardine Matheson group, recently visited Yangon. He shared his views on prospects for this enigmatic country with Britcham members at a luncheon on Wednesday 24th October 2012, held at Island Shangri-La.


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Women on Top — Developing the Pipeline for the Next Generation of Female Executives

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sponsored by

On Thursday 18th October, a Women in Business panel event took place at The Hong Kong Club, sponsored by Barclays. The panel was made up of Angelina Kwan, COO of Reorient Group, Carole Cheung, Senior Client Partner of Barclays, Fraser Murray, MD of Rock the Boat Consulting and Shalini Mahtani the Founder of Community Business and it was moderated by Kay MaCardle, the Board Chair from The Women’s Foundation. In the discussion the panel looked at the issue of gender diversity and what is being done in order to develop the pipeline for the next generation of female executives. They discussed the impact of diversity on corporate leadership and the importance of improving gender balance, whilst looking at the studies that have proved that companies with a strong female representation at board/top management level perform better than those without. However whilst progress is being made in Hong Kong and globally, and many companies are now making an effort to improve the number of women in top jobs, the change is still slow. One of the biggest challenges that was discussed was about supply and the development of senior female talent which is becoming a growing priority.


Events

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Upcoming Events CIETAC — An International Chinese Arbitration Commission?

Inspirational Women Series — Inspired to Lead

Event date : 16 Nov 2012, 8:00 - 9:15 Speaker : Jessica Fei, Partner, Dispute Resolution, Herbert Smith Freehills LLP, Beijing

Event date : 03 Dec 2012 - 12:30 - 14:00 Speaker : Erin Ganju, Co-founder and CEO, Room to Read

Jessica Fei, a dispute resolution partner with Herbert Smith Freehills LLP in Beijing, will talk about CIETAC in the context of the latest revisions to the CIETAC Rules in 2012, its new office in Hong Kong and whether in light of these developments CIETAC can now be said to be an “international” Chinese arbitration institution. Jessica discusses this topic from the perspective of not only a partner at an international law firm, but also a current CIETAC arbitrator and former member of CIETAC.

The Women in Business Committee are delighted to invite you to hear Erin Ganju, Co-founder and CEO of Room to Read, speak in the Inspirational Women series, sponsored by Barclays. Erin Ganju successfully leads Room to Read, an award-winning global organisation that promotes literacy and gender disparity in education in Asia and Africa. Room to Read is recognised as a leader in global education and has benefited over six million children worldwide. In the presentation, “Inspired to Lead,” Erin will share her personal journey which brought her to lead Room to Read and the inspirational leadership lessons she has learned in the process.

Enabling the Most Connected Olympic Games Ever Event date : 23 Nov 2012, 8:00 - 9:15 Speaker : Howard Dickel, Programme Director, London 2012 Delivery Programme, BT Global Services BT is the London 2012 Olympic and Paralympic Games Official Communications partner. Howard Dickel, BT’s Programme Director of the London 2012 Delivery Programme, will talk about how, after 4 and a half years of intensive planning, testing and modifying, BT successfully delivered the most-connected Games ever. The scale and profile of this programme meant that this was the ultimate right-first-time delivery, and risk had to be managed appropriately. Howard will highlight the challenges that were faced by the team throughout this project, how he led a team that grew from 12 to 800 over a 4 year period, and how they managed the incredibly powerful use of social media during Games time.

Stellar Leadership — Getting the Best Out of Your Team

Challenges facing Higher Education in the UK Event date : 06 Dec 2012, 8:00 - 9:15 Speaker : Prof Henry Woudhuysen, Rector of Lincoln College, University of Oxford Higher education in the UK is undergoing a series of radical changes and currently faces a number of serious challenges. In England, a new fees regime for undergraduates has been introduced that will also affect postgraduate study, and ultimately research. It is very likely that government funding for tertiary education will be further reduced. Internationally, British institutions find themselves in growing competition with other universities that are also seeking to recruit the best students. At the same time, questions are being raised about what subjects should be taught in higher education and about how they should be taught.

Event date : 23 Nov 2012, 12:30 - 14:00 Speaker : Douglas Gerber, CEO, FocusOne Ltd.

Implications of China’s Leadership Transition

Douglas Gerber, IAF Certified Facilitator and Founder of FocusOne Ltd. will explore:

Event date : 07 Dec 2012, 8:00 - 9:15 Speaker : Dr. Tim Summers, XTEChina Consulting Ltd

• How to create 1+1=3 results • Being recognised as a “Leader with a Winning Team” • An environment where members are proud / excited to partake • Keys to high participation groups • Leading team members to their maximum potential • Overcoming the 5 five team killers

Pay in 2013 Event date : 27 Nov 2012, 8:00 - 9:15 Speaker : Brian Renwick, Vice Chairman, The Employers’ Federation of Hong Kong Deciding your company’s pay budget is never easy. With widely conflicting views of the world economy and big variations of different industry sectors, this year it is harder than usual. Brian Renwick, Vice Chairman of the Employers’ Federation of Hong Kong, will give his views and predictions of likely pay increases in 2013.

The 18th Party Congress will commence on 8 November and reveal China’s new leadership line up. Every previous leadership change in China has had an impact on policy, some more radical or quicker than others. This presentation will look at what the Congress tells us about future policy direction in China across politics, the economy, and international relations. Tim will comment on the background, style and approach of the new leadership team, examine the key policy ideas discussed at the Congress, and suggest what Chamber members should look out for over the coming months to help with business and investment decisions relating to China.

British Chamber Christmas Drinks Event date : 11 Dec 2012, 18:30 - 20:30 All members and guests are welcome to join the Chamber for our Christmas Drinks at The Penthouse in Jardine House.


Member Discounts Food and Beverage and Accommodation Accor | 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 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 10% 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 10% discount on the bill. For more information please call 2810 6988 or email dotcod@hkcc.org Grand Hyatt Hong Kong | 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 Hyatt Regency Hong Kong, Tsim Sha Tsui | 10% discount at The Chinese Restaurant, Hugo’s, Cafe and Chin Chin Bar (except during happy hour). To make a reservation please call 2311 1234 JW Marriott Hotel Hong Kong | Members will receive a 10% discount on the total bill at Man Ho Chinese Restaurant, JW’s California, Marriott Cafe, The Lounge, Riedel Room @ Q88, and the Fish Bar & Grill. To make a reservation please call 2810 8366 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 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 Renaissance Harbour View Hotel | Members will receive a 10% discount on the total bill at Michelin Star Dynasty Chinese Restaurant, all day dining at Cafe Renaissance, Scala Italian Restaurant and the Lobby Lounge. To make a reservation please call 2802 8888 The Mira Hong Kong | Members will be given special room rates, a complimentary upgrade and fantastic discounted rates on the Spa suite package (subject to availability). For more information please contact Connie Kwan on 2315 5666 or email connie. kwan@themirahotel.com W Hong Kong | Members will receive fantastic offers at Kitchen and Sing Ying. Dine at either of these restaurants and receive complimentary discount vouchers to use at your next meal. For more information or to make a reservation please call 3717 2222


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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

Home Allied Pickfords Hong Kong | Allied Pickfords will extend a free local move for any Home Search completed by SIRVA Real Estate. For more information please call 2823 2089 or email olivier.jourdan@sirva.com.hk Bowers & Wilkins | B & W are offering members a 10% discount on all listed price items in the B&W Showrooms in Tsim Sha Tsui and Central. For more information please call 3472 9388 or 2869 9916 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

Travel & others Avis | Members can receive up to 20% discount off standard rates on car rental bookings. To make a booking please call 2882 2927 or visit www.avis.com.hk British Airways | As a member of the British Chamber of Commerce you can enjoy an exclusive offer of 7% discount from British Airways. To make a booking please visit www. britcham.com/memberdiscount/british-airways Compass Offices | Compass Offices, Hong Kong’s largest Serviced Office provider, offers members a 10% year round discount on meeting rooms, a free one hour Telepresence or Video Conferencing session and a 3 month complimentary Virtual Office package. For more information please call 3796 7188 or email hksales@compassoffices.com Flight Centre | Members will receive HKD150 off the first booking made as well as a complimentary Airport Express ticket per booking. For all holiday and flight enquiries please call Paul Jeffels on 2830 2793 or email paul.jeffels@flightcentre.com.hk Regus | 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. sense of touch | 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 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 Virgin Atlantic Airways | Special offers to London are available exclusively for members of the British Chamber of Commerce. Please call 2532 6060 for more details or to make a reservation 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.

Terms and Conditions apply. All member discounts are subject to availability. If you are interested in providing a tailored offer to our members or for more information please contact Emily Ferrary on 2824 1972 or email emily@britcham.com

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MEMBER GET MEMBER 2012 the to l a rr fe re l u sf es cc su a ke a M British Chamber of Commerce o! tw r fo l ea m ic st ta n fa a y jo and en The British Chamber is delighted to announce that the Member Get Member 2012 campaign is well underway! If you successfully introduce a company that results in them becoming a member of the Chamber, you will receive a fantastic dinner for two courtesy of one of our top member restaurants in Hong Kong. Not only that, all referring members will be entered into a prize draw to win a $2,000 voucher to go towards your holiday provided by Flight Centre!

AND if you happen to refer the most new members to the Chamber, you are in for a real treat for you and your friends! A complimentary dinner for four at Sakesan, the newest Robatayakibar, courtesy of Cafe Deco Group.

Sakesan Sakesan is the newest Robatayakibar in the heart of the bustling Soho area. It offers a range of exquisite dishes fresh from their robata grill, as well as other Japanese culinary delights, all rendered with a modern twist. Designed by Fiona Bagaman and Mirei Lim, Sakesan uses different wood and stone tones with flashes of black and gold to create a serene, relaxed and cool space. Funky, colourful sake barrels wrap the bar area and frame the individual dining booths and an illuminated Japanese urban scene gives the bar a warm glow as well as striking visuals. Signature dishes include homemade steamed tofu, salmon miso, lobster dumplings and SAKESAN black cod. There is also a cool bar featuring a top range of sakes, shochus and awamoris with a superb range of cocktails made with these classic Japanese ingredients. To compliment this they also offer a selection of some of the finest, most thirst quenching beers to emerge from Japan.

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. Your name will also go into the prize draw which will be drawn in March 2013.


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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:

Lobby Lounge, Conrad Hong Kong Featuring the spectacular views of the Hong Kong skyline and live entertainment, the Lobby Lounge is the ideal venue for private meetings or relaxed gatherings with friends. From salad bar to noodle station, and delectable hot dishes to exquisite desserts, the Southeast Asian themed supper buffet showcases an impressive range of more than 50 scrumptious all-time favourites.

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.

KITCHEN, W Hong Kong Kitchen is a modern bistro with a capacity of 200, reflective of W’s signature stylish and fun design. Upon arrival to KITCHEN, the mad hatter’s tea party in “Alice in Wonderland” brings guests to a world of fantasy. Cats play and jump around the stacks of plates, inviting guests to join their games too. KITCHEN’s modern interpretation of timeless classics and equally innovative original masterpieces fill a menu that’s designed to tantalize and satisfy even the most discerning gourmands. Guest can indulge in the fun world of kitchen, while relaxing in the pleasant and interactive dining experience, sampling the delicate cuisine on offer from all over the world.

cafe TOO, Island Shangri-La, Hong Kong T 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 tantalizing array of international favourites and local specialties from live cooking stations.

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

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Perspective Mark Greenberg, Director of Jardine Matheson Holdings Limited How’s business? Of course each of our companies are different, but in our half-year results (announced in July) we spelled out that conditions were challenging in certain markets and overall profits for the first half were flat. However, we have a great set of businesses, which are strong performers in their relative markets - primarily in Greater China and Southeast Asia, although a couple of businesses have a greater reach. We have long term confidence in them and the markets in which they’re represented. What are your plans for the firm in the region in the coming year? Every one of our companies has its own management team, its own strategy, and its own capital structure, and each of those businesses have well developed plans in their own right. The strategy for the group as a whole has been progressively evolving over a long period of time – that’s well established and pretty clear. We continue to invest in all the businesses: we have good organic opportunities to fuel our medium-to-longer term growth. What has been the crucial element in the success of Jardine Matheson over the years? It’s difficult to highlight any single factor, because although there are many elements of continuity, the structure of the group has changed a great deal. If you go back, let’s say around 50 years, when Jardines first became a public company, and look at the balance and structure of the group compared to today, there has been a tremendous change in terms of the businesses that are part of the group and its geographic balance. So, whilst we are great believers in maintaining and passing on institutional knowledge, that also doesn’t stop the group evolving and meeting new market challenges and opportunities. If I was to single out one consistent characteristic that runs throughout the history of Jardines, it would be the ability to think long-term and apply that perspective to business decisions. This comes with a stable ownership structure and has been fundamental to the way the group has evolved. A focus on relationships has also been important. The group’s history is replete with examples of long-term relationships of different kinds, whether we’ve acted as agent, distributor, or joint-venture partner. These partnerships are with some of the world’s largest companies – Mercedes Benz, Toyota, Daihatsu, Komatsu, Schindler, just to name a few. Attention to these relationships and investment in them, as well as developing new relationships, has been a very important part of the group’s development over a long period of time. Alongside this, knowledge of, and relationships with, the Chinese business community across Asia has been a critical focus. In financial terms, over a considerable period of time, the firm has focused on building and maintaining a strong balance sheet, and no more so than over the last 20 years. Financial conservatism has provided a stable platform for the group to grow and the worth of this has been proved no more clearly than in the last four or five years. How would you characterise your work? There’s a relatively small team of people at the Jardine Matheson level and as a group our job is to ensure we’re on top of all the relevant and material issues going on with any one of our businesses, or their wider sector or

The British Chamber’s Sterling Members

Thank you for your continued support

geographic operating environments at any point in time. We also have to think about future issues which might create risk or opportunity for us. Within that overall context, my job is to focus on corporate finance and financial strategy issues, and development opportunities - particularly the more material investment proposals that exist within any of its individual business units, as well as any areas which might fall outside of our existing business units. What aspects do you find most interesting? We’re operating across many different sectors and countries. It is challenging and interesting to keep on top of what’s going on across the spectrum. We need to keep on top of trends and developments which will have an impact on the group as a whole or any individual operating business. That includes industrial, political and financial trends, or developments affecting any of our partners, peers and competitors. How does the British Chamber of Commerce add value to your business? Jardines has been involved with the British Chamber since its inception. The Chamber is now 25 years old and we’ve always been great believers and supporters of the Chamber and the work it does. It provides a very valuable contribution not just to British businesses but also to the wider international business community, often addressing matters which are relevant to that constituency as a whole in Hong Kong. It covers a very broad spectrum of issues and does it very professionally. From our point of view, as a significant group of companies employing a sizeable number of people here in Hong Kong, having a body like the British Chamber through which we can make views known, together with others who hold similar perspectives, is very helpful. How long have you been living here? Nearly seven years. What’s your favourite spot in Hong Kong? There are many places I like in Hong Kong. But let me pick two: Sharp Peak provides one of the most panoramic views of much of Hong Kong; and the Bride’s Pool area is one the best places to go cycling. What’s the biggest change you’ve noticed since you’ve been in Hong Kong? The physical landscape has changed, particularly here at the waterfront in Central. From a business perspective the physical landscape has also changed. Although Central is still the core CBD, there has been extensive and impressive development of areas like Island East and ICC in Kowloon, and there will be in due course further development for example at Kai Tak and at the terminal for the high speed rail link in Kowloon. The fragmentation and expansion of the commercial hubs of Hong Kong has been interesting to watch. Beyond that, another striking phenomenon is the increased politicization of the Hong Kong population. There’s a much greater focus on the construct, activities and behaviour of government. As Hong Kong moves towards a universal suffrage model, this growing public awareness and activism is inevitable.


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News Mandarin Oriental, Hong Kong to showcase The Sovereign Art Foundation Pacsafe Schools Prize Finalists Mandarin Oriental, Hong Kong is partnering with the Sovereign Art Foundation to showcase the 20 finalists of The Sovereign Art Foundation Pacsafe Schools Prize at the hotel’s Clipper Lounge. Launched at the end of March, The Sovereign Art Foundation approached secondary schools throughout Hong Kong and encouraged them to select the best artwork produced by a student in their school. Fifty pieces were submitted and assessed by a panel of leading judges, and 20 finalists were shortlisted. Each of these 20 pieces will be on display from 5 to 25 November and will be judged further throughout the exhibition to find an overall winner.

Hong Kong facing office space shortfall A recent study by real estate services firm CBRE and Daiwa Capital Markets has found that Hong Kong is facing a major shortfall of grade A office space by the end of this decade. According to the study, the city’s current pipeline supply of 8 million square feet falls some way short of a total required supply of 17 million square feet, based on projected GDP growth. The study has identified seven sites totaling 9 million square feet of land that can be feasibly fast-tracked through the development process and provide completed office space by 2020. The in-depth study takes a view of the Hong Kong market through to the end of the decade and models future occupier demand based on what economic growth Hong Kong needs to retain its status as a world city.

Support diversity on boards of Hong Kong companies Community Business, a long-time advocate for the issue of women on boards of Hong Kong’s listed companies, has recently reached out to the corporate community to support the recommendation by Hong Kong Exchanges and Clearing to promote diversity on the boards of listed companies by amending its Corporate Governance Code.  The change involves a ‘comply or explain’ provision for all companies listed on the Exchange to have a policy on board diversity, and to report on this policy in their corporate governance and interim reports. In Community Business’ response to HKEx’s consultation on the proposed changes, the organization advocated diversity on boards because it is good for business and is in line with international best practice, broadened their perspective from women on boards to diversity more generally, did not favour setting quotas to achieve diversity and noted that board diversity will differ according to the circumstances of each company. 

Mercer study finds problems in leadership development strategies The results of Mercer’s Asia Pacific Leadership Development Practices Study show that while organizations in the region are taking a comprehensive approach to grooming leaders from within, they are having difficulty in executing the strategies in place to move the needle on leadership development. Despite 58% of companies surveyed across the Asia Pacific region reporting that they have a defined and agreed leadership development strategy in place, the results show that organizations are not achieving the desired impact they need to deliver results. The study had additionally found that only 15% of companies report having strong “ready-now” successors locked in for every role in the pipeline, three-fifths of companies are not regularly conducting leadership pipeline projections, and 59% of companies say leaders and managers are not held accountable for grooming future leaders.

Hong Kong Immigration Department’s e-Channel Earlier this year, the Hong Kong Immigration Department launched an e-Channel service for frequent visitors to the country. The service provides those enrolled with faster and more convenient immigration clearance and examination when entering or departing Hong Kong. Enrollment for the service can be done at the enrollment office located at the Arrivals Hall of Hong Kong International Airport for those aged 18 and above and holding a valid travel document and where appropriate, a valid multiple visit visa. For more information, please contact Mr Chui Tak-shing, Commander of Airport Division, at 2182 1484 or tschui@immd.gov.hk.

Information Services Department launches government yearbook app Hong Kong’s Information Services Department has launched a new iPad application for the government yearbook, “Hong Kong 2011.” By downloading the application, iPad users can access the information in the yearbook at any time to view an in-depth account of government policy and activities and an overview of Hong Kong’s life and developments in 2011. The yearbook has 21 chapters covering a wide range of subjects such as the economy, commerce and industry, employment, e n v i ro n m e n t , s o c i a l w e l f a re , e d u c a t i o n , i n f r a s t r u c t u r a l development to culture and recreation, sports and the arts.  The application can be downloaded free of charge from Apple’s App Store by searching for “Hong Kong Yearbook,” the ISD website www.isd.gov.hk or the yearbook website www.yearbook. gov.hk. For enquiries, please contact Felix Leung at felixleung@isd.gov.hk of (852) 2842 8848.


New Members YNETWORK INDIVIDUAL

CORPORATE The Harbour School Elizabeth Blurton Principal / Director Tel 2816 5222 jadisb@gmail.com 23 Belcher’s Street, 2nd Floor, Kennedy Town Centre, Hong Kong Education LGS Matrix Hong Kong Ltd Martin Franks Director Tel 9199 8657 martin.franks@lgsmatrix.com 1201 Allied Kajima Buidling, 138 Gloucester Road, Wanchai, Hong Kong Security Services Coop Denmark Asia Ltd Lene Larsen General Manager Tel 5185 3588 lene.larsen@coop.dk Unit 3810-11A, 38/F, Skyline Tower, 39 Wang Kwong Road, Kowloon Bay, Kowloon, Hong Kong Retail / Wholesale / Sourcing

JAC Recruitment HK Co Ltd Hatsushi Tetsuya Associate Director Tel 2522 6767 t-hatsushi@jac-recruitment.hk Unit 1612, 16/F, Tower Two, Lippo Centre, 89 Queensway, Hong Kong Recruitment

JAC Recruitment HK Co Ltd Gary Ip BD Manager Tel 2522 6767 gary.ip@jac-recruitment.hk Unit 1612, 16/F, Tower Two, Lippo Centre, 89 Queensway, Hong Kong Recruitment

ADDITIONAL Jardine Lloyd Thompson Limited Jonathan Linstow New Business Director Tel 2864 5329 jonathan_linstow@jltasia.com 5th Floor, Cityplaza Four, 12 Taikoo Wan Road, Taikoo Shing, Island East, Hong Kong Insurance DLA Piper Hong Kong Joyce Chan Partner Tel 2103 0473 joyce.chan@dlapiper.com 17F, Edinburgh Tower, The Landmark, 15 Queen’s Road, Central, Hong Kong Legal

EN World Kieran Hallahan Manager, Supply Chain & Industrial Team Tel 3972 6582 kieran.hallahan@enworld.com Level 27, World Wide House, 19 Des Voeux Road Central, Hong Kong Executive Search

Fiona Donnelly Tel 9037 8744 fiona.donnelly@redlinks.com.hk 9A, Foo Cheong Building, 82-86 Wing Lok Street, Sheung Wan, Hong Kong Rosie Wilkins Tel 5304 1099 rosiewilkins@thehideawaysclub.com 15/F, 100 Queen’s Road Central, Central, Hong Kong

STARTUP

STERLING

GCP Asia Ltd Gavin Wyborn Partner Tel 815 2113 gavinwyborn@gcp.asia 13/F, Hilltop Plaza, 49 Hollywood Road, Central, Hong Kong Consultancy

Ernst & Young Keith Pogson Partner, Global Financial Services Tel 2846 9888 keith.pogson@hk.ey.com 22/F, CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong Accounting

Hall Park Capital Limited Jonathan Garrick Principal Tel 6183 6880 jonathan.garrick@hallparkcap.com 10/F, Chiyu Bank Building, 78 Des Voeux Road, Central, Hong Kong Asset Management

We Collect and deliver your car FREE OF CHARGE (subject to distance) We provide good, quick repair service at reasonable prices

Our competitive Labour charges:

From

Lubrication Service

$ 110

Tune Up Engine

$ 220

Engine Decoke & Grind Valves

$ 1,500

Engine Overhaul

$ 4,000

Brake System Overhaul

$ 900

Clutch Mechanical Overhaul

$ 1,000

Air Condition Freon Recharge

$ 400

Alternator Overhaul

$ 400

Starter Motor Overhaul

$ 400

ALL REPAIRS WITH THREE MONTHS GUARANTEE

MANAGEMENT & LETTING PRIME CENTRAL LONDON A well tried, tested. Comprehensive and personal service provided by an experienced and dedicated team, who understand the needs of the International Investor. Letting * Management * Refurbishment * Online Statements * Tax Returns for Overseas Investors * Regular Visits by Directors.

Our Business Hours 8am-6pm, Mon-Sat & Public Holiday Our 24hrs. Emergency Towing Agent “Firstone Towing Services” 8203 3411 Please call us at 2565 6166 or Fax: 2856 1047 E-mail Address: fookie@netvigator.com

FOOKIE MOTORS CO. LTD. Shop 7, G/F, Paramount Bldg., 12 Ka Yip Street, Chai Wan, Hong Kong.

Contact: Perry Bousfield Neil West Director Property Manager Perry.bousfield@primeportfolio.com neil.west@primeportfolio.com Prime Portfolio 45 Charles Street Mayfair London W1J 5EH Tel: +44 (0)207 409 0209 Fax: +44 (0)207 629 6050 www.primeportfolio.com


Britain in Hong Kong

38

39

Shaken Not Stirred Sponsored By

Sept 2012, The Globe

Michael Haynes (Lambert Brothers Insurance Brokers), Gilbert Lennox-King (Energenz)

Corey Franklin (Ecopoint Limited), Stephen Sheppard (PTS Consulting)

Maria Gomez (Terra Firma), Trish Meecham (MagazineGap)

Anita Martin (Regus), Carole Young (Campden Wealth)

Chow Mezger (Care for Children), James Kench (Jardine Lloyd Thompson), Jesper Bruun-Olsen

Simon Stevens (Financial Partners), Humphrey Wilson

Tobias Dyrba, Christopher Lloyd, Andrea Demy (AGS Fourwinds)

Barbara Friend (Crown Relocations), Margaret Poon (Paradigm Management), Tasveer Deol

Mark Harding, Vincent Vedel, Paul Fisher (DTZ)

Phillippa Cook (British Chamber of Commerce in Hong Kong), Julie Haynes (Save the Children), Allard Nooy (JITF Water Infrastructure Ltd.), Gilbert Lennox-King (Energenz), Dovenia Chow (Art Basel) Polly Bolus (wine’n’things)

David Stanton (AEC), Lucy Jenkins (British Chamber of Commerce in Hong Kong)

Viki Kish (International Study Programs), Chris Thomas (Leodan)

Martin Taylor (Green-Works Asia), Samantha Cornelius (StandOut Internships (HK) Ltd.)


Britain in Hong Kong Nov 2012  
Britain in Hong Kong Nov 2012  

Britain in Hong Kong is the highly regarded monthly magazine of the British Chamber of Commerce in Hong Kong. The magazine is sent out to al...

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