May 2011 • Vol 26 • No 5
In This Issue
Women’s Financial Planning
Advertising Online Targeting Customers In The Digital Realm By Ian Cruz
Lord Mayor of London
since online advertising boomed
importance for businesses to have an online
utilise audience targeting, who saw their
in the early 2000s, advertisers have relied on
presence, coupled with the new hardware
display budgets decrease by 43%. While
buying display advertisements on websites
and devices that leverage digital technology,
a small share of advertisers and agencies
to reach their potential online customers.
the benefits of spending money online are
that do employ audience targeting saw their
This mainly consisted of buying space
starting to become more evident.
budgets decrease, this does not necessarily
for online ‘banners’ which would appear on web sites - many of which were often overlooked or ignored. This was mainly due to them being lost in the slew of online advertisements which would all appear within a particular page, or simply because it advertised a product or service that had absolutely no relevance to the reader, and therefore attracted little interest. As a
Sir Martin Broughton B.A. Chairman
With the online space now being an integral element in reaching new customers, businesses are constantly trying to better understand how their target audience uses
c l a i m e d t h a t d u e t o t h e e ff e c t i v e n e s s of targeted advertising, they were able t o re a c h t h e i r t a r g e t e d a u d i e n c e a t a lower cost.
the internet and thus, gain a better idea of how to use the online space to reach them.
Social Media In the business world, it has been hard not
businesses which spend money on
to notice the ever growing importance of
audience targeting online have found that
social media. The medium is now a regular
it has played a large part in the success of
part of people’s daily lives as people take
their campaigns, not by just by generating
to websites such as Facebook and Twitter.
Flash forward to today, and the landscape of
sales online, but also by improving general
With close to 700 million users on Facebook
online advertising has drastically changed.
brand awareness. As a result, we are now
and over 200 million on Twitter, it is no
Much of the success of companies such
seeing a sizeable amount of ad budgets
surprise that businesses are clamouring for
as Google and Yahoo can be attributed to
being allocated from the more traditional
a presence on social media sites. In fact it
the wealth they have created from online
means of advertising to the online space.
was recently reported that of the over 1.11
accordingly, the justiﬁcation for setting aside a share of their advertising budgets for it.
trillion advertisements which were viewed
advertising. Online advertising is booming
t h o s e t h a t s a w a d e c re a s e , 2 4 % h a d
demographic profile or online behaviour,
effectiveness of online advertising, and
Targeting An Audience
Whether it be an online user’s location,
result, businesses began to question the
diminish its effectiveness. In fact, among
thanks in large part to the ability advertisers
In a recent report conducted by global
online in the US in the first quarter of this
and agencies now have to more accurately
online advertising technology company,
year, a staggering 31.2% were delivered
target the specific audiences that they
AudienceScience, it was reported that 48%
on Facebook; that is a third of all online
want to reach, thus justifying advertising
of the agencies and 52% the advertisers
ads within the country. With 346.46 billion
budgets for businesses. It has taken a few
who utilise audience targeting saw a
impressions (views), this made Facebook
years for advertisers to effectively market in
rise in their budget for online display
the leader in all websites that display online
the digital realm and they are still learning.
advertising from 2010 to 2011, by 27%
advertising. This is double the ﬁgure of the
After all, online advertising is still a relatively
and 24% respectively. This is opposed to
second leading website Yahoo, with only
young industry. But with the ever growing
the advertisers and agencies who do not
112.51 billion impressions. This clearly
• News / New Appointments • New Members • Shaken Not Stirred
(Continued on page 2)
COVER STORY (Continued from cover)
indicates how advertisers and publishers view the importance of social media when it comes to targeted advertising. Ever increasing its hold on the online advertising market, Facebook is looking to expand its online advertising, allowing businesses to target their audience even more precisely. For example, it is looking to introduce a new ad service that allows companies to place their logos alongside Facebook content and posts which involve that particular company.
Reﬁning The Process In the online space, advertisers and agencies are constantly trying to find new ways for their advertisements to reach their defined target audience. A s a re s u l t , s e a rc h a d v e r t i s i n g i s quickly proving to be the most focused means of audience targeting from the perspective of businesses. In 2000, search advertising make up 1% of online spending in the US. Today, that figure has risen to nearly 50%. The reason for this is that search advertising is directly based on the interests of the consumer through digital traces online. As a consumer goes online to search for a new flat-screen television for example, and visits a particular brand or company’s website, the website will drop digital markers on to that particular computer. Having shown interest in that product, as he or she searches through the web, advertisements from that particular brand will reappear on other web sites that they would visit, with the intention that they will eventually buy that particular brand’s television – or any of their other products for that matter. Why advertisers and agencies feel this is so effective is that it allows them to retarget those very same consumers – consumers they know already have an interest in that brand or company. This makes it easy to justify online advertising budgets as no money is wasted on buying general ad spaces that are often seen by consumers who have little or no interest in that particular brand or product, and instead buys advertisements speciﬁcally for a known audience.
Moving Forward With new devices such as smartphones and tablets being adopted by consumers on mass, the opportunities for advertisers and agencies to reach their target audience online are rapidly increasing. As consumers, we are slowly changing our daily habits, in large part due to how we consume information online. We can easily read the daily news on our mobile devices. People are taking to watching videos online as opposed to television. The world is changing – and advertisers are rolling with the punches, embracing that change by expanding their reach in the digital domain. In the AudienceScience report, 77% of advertisers and 72% of agencies cited indicated that they are intending to place more emphasis on mobile audience targeting. Much as internet advertising had a boom in the early 2000s, the market for advertisements on mobile devices is something advertisers are now looking to corner due to the prominence of mobile devices as a means for consumers to acquire information. Online video components are another aspect in which advertisers are looking to further expand, especially when it comes to in-stream video audience targeting. According to a report for Q1 from video advertisers Brightroll, their respondents said that they would shift nearly 65% of their ad dollars from television advertisements, and 80% from display advertisement, to online video. As the prominence of online advertising continues to rise, companies are striving to reach a point where advertisers and agencies will be able to utilise one-to-one marketing with their targeted audience. And in the digital age, when targeted audiences are becoming more deﬁned, it seems that is could become reality.
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The Magazine of the British Chamber of Commerce in Hong Kong
The royal wedding of Prince William to Catherine Middleton certainly gave everyone the ‘feel good’ factor and marked a very special
Ian Cruz Sam Powney
occasion for British people all over the world. The Chamber in Hong Kong celebrated this historic event at the Hong Kong Club with
and more than 300 people joined in the fun to wish the Duke and Duchess of Cambridge well in their future.
Bill Mo Alan Wong 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: Ian@speedﬂex.com.hk sam.powney@speedﬂex.com.hk Advertising: charles@speedﬂex.com.hk
live screening of BBC coverage of the wedding. It was a wonderful evening kicked off by British Consul General, Andrew Seaton
I recently had the pleasure of hosting our Chief Executive of Hong Kong SAR, Donald Tsang, together with InvestHK at the BT regional headquarters in Hong Kong. We discussed the business environment in Hong Kong and China and Mr. Tsang was keen to ensure that we have the government support we need to be successful in our business investments here. Mr Tsang said: “The presence of multinational corporations underlines the strengths and vibrancy of the Hong Kong economy”. “Apart from creating abundant high-value-added job opportunities, these companies bring in new management cultures, promote transfer of technology and enhance local creativity.” “Local young people beneﬁt a great deal from these rewarding work experiences, which come with international exposure and great career prospects.” “As the Financial Secretary stated in the Budget, we will step up promotion efforts and take the initiative in approaching overseas enterprises to encourage them to set up business here. We will also provide aftercare services and support to foreign companies already established in Hong Kong.” It does quite rightly appear that there is a focus on securing both SME and large multinational investment in Hong Kong. This is
British Chamber of Commerce Secretariat
good news indeed for international companies conducting or looking to do business in Hong Kong. I also took the opportunity to
moving here for business purposes. We are still waiting to see progress in this area.
raise the issue of lack of places in quality independent schools here, which, as we all know, can act as a deterrent to professionals
CJA Hammerbeck CB, CBE
Another key event on the horizon is the British Chamber of Commerce and Standard Chartered Bank Annual Ball 2011 on Friday 24
June at the Grand Hyatt ballroom. This event is the highlight of the Chamber’s event calendar and enjoys a reputation as one of the
Marketing and Communications Manager
best nights out in Hong Kong! This year’s fancy dress theme is ‘Rock Stars,’ so don’t miss this opportunity to don your costume and party like a rock star!
Special Events Manager Becky Roberts
Events Assistant Mandy Cheng
Business Development Manager
Once again this is a sold out event, but sponsorship opportunities are still available – and as the highest proﬁle event in the Chamber’s calendar, the Ball offers fantastic exposure to a key audience. So please take a look at the different sponsorship options on the Britcham website. Proceeds from this year’s event go to the KELY Support Group (KELY), a bilingual local charity that offers non-judgmental, empathetic and conﬁdential support to young people between the ages of 14 to 24 in Hong Kong - a very worthy cause.
On membership, I would like to remind you to renew if you have not already done so. There are a number of different categories
including some new ones, so please take a look at the different options on the website. I also encourage you to take a look at the
Britcham Wine Club and to sign up if you are not already a member. Membership is simply the cost of signing up for 1 case of wine!
Executive Assistant Jessie Yip
In this month’s issue of the Chamber magazine, we have lots of interesting articles including one by ipac Hong Kong on women’s financial planning, another by PWC on the rise of the Chinese economy and an interview with Martin Broughton, who spoke recently at a Chamber event on the 75th anniversary of BA’s ﬁrst ﬂight to Hong Kong. Enjoy your reading!
Ofﬁce Assistant Sam Chan Kevin Taylor
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.
WOMEN’S FINANCIAL PLANNING . . . . . . . . . . . . . . . 4 LORD MAYOR OF LONDON . . . . . . . . . . . . . . . . . . . . 6 OFF BALANCE SHEET RISKS . . . . . . . . . . . . . . . . . . . 7 SIR MARTIN BROUGHTON INTERVIEW . . . . . . . . . . . 8 FUTURE OF FREIGHT ROUTES . . . . . . . . . . . . . . . . 10 EMPOWERING YOUTH . . . . . . . . . . . . . . . . . . . . . . . 12 FOOD WASTE DISPOSAL . . . . . . . . . . . . . . . . . . . . . 14
THE DRIVE FOR SUCCESS . . . . . . . . . . . . . . . . . . . . VISITING BORNEO . . . . . . . . . . . . . . . . . . . . . . . . . . . ROYAL WEDDING CELEBRATION . . . . . . . . . . . . . . . NEWS AND NEW APPOINTMENTS . . . . . . . . . . . . . . NEW MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SHAKEN NOT STIRRED . . . . . . . . . . . . . . . . . . . . . . .
15 16 19 21 22 23
Holding up half the sky...? By Alison Asome, Client Advisor, IPAC
after the Chinese Revolution in 1949, Chairman Mao commented that ‘Women
life she wanted so much for us to have. To alleviate this concern, what she did was plan for
Hold up Half the Sky’. This rhetoric in China brought about great change for women in that
the future by paying all our education fees up front, up to the age of 18. Some may not view
it gave women equal legal rights to land, property and marriage. It essentially gave women
this as the most efﬁcient use of money (certainly in terms of cash-ﬂow); however, for her it
a voice and independence. This opened up a whole new world for Chinese women. Fast
put her mind at ease and meant that one of her goals was ticked off from the ‘to-do list’.
forward to 2011 and how have the rights assisted the modern women of Hong Kong SAR?
Thankfully, her fears were never realised, she could feel comforted that this priority remained in place throughout our educational years.
Despite this, statistics still show that women, across the world and not just in China or Hong Kong, continue to be at a ﬁnancial disadvantage. With some 47% of women over the age of
The point here is that one should live within one’s means. Of course this may not apply to
50 being single, by this alone there is a negative impact on their wealth and their ﬁnances.
you if you are fortunate enough to be born into privilege etc, but for the most of us, living
But why is this so? One of the main reasons is that women spend on average 14.7 years
can be expensive and more often than not, we see clients whose expenditures exceed
away from the workforce, for a variety of reasons; namely child-rearing, relocation to follow
their income (regardless of how much income they receive). The best way to do this is put
spouses, changing careers and the like. This, along with traditionally lower salaries, adds up
a budget in place and have a written (ﬁnancial) plan. Work out your priorities and stick to
to retirement beneﬁts that are only about a quarter of those of men.
them. Knowing that this is in place will be hugely comforting and will mean that it is more than likely you will realise your goals.
As we are aware, from the statistics , approximately 50% of marriages end in divorce and again women
The second thing everyone (not just women) should do is to be pragmatic about
seem to be the real losers; and in their first year
protection and insure against the unexpected. With the Global Financial Crisis still on
after a divorce a woman’s standard of living will drop
our heels, no one could have predicted the impact it had or would have had on us
by approximately 73%. Frightening statistics, but
all. It may have affected some more than others, but what it did teach us was that no
surprisingly true, not to mention the fact that women
one can determine what will happen next… and with this, sometimes the worst does
will probably be the main carers of children from a
happen. As one accumulates wealth over a lifetime, it is important that one secures this
marriage, and therefore will most likely take on a
by implementing the necessary insurances, thereby safe-guarding against possible risks.
more ﬂexible working-hour role, which in turn is likely
As such, make sure for example that you have life insurance in place. Check with your
to be lesser paid.
employer that you are entitled to receive beneﬁts in the event of a disability or critical illness. Make sure that you have
Further, the statistics show that women are expected to live an average of 7-10 years longer
income protection which replaces
than their male counterparts which means that they must provide for those extra years.
your income so that your obligations
With most married baby boomer women expected to outlive their husbands by 15-20
and lifestyle can be maintained
years, again women are statistically at a ﬁnancial disadvantage, such that by old age, of the
if you lose your job, and ensure
elderly living in poverty: three quarters are women.
that if something happens to you health-wise, this can be paid for.
So, whether you are single or married, divorced or separated, at some stage in a woman’s
This assumes that you are working
life, 90% of women will have sole responsibility for their ﬁnances. Even more frightening is
and your employer is contributing
that 79% of all women have not planned for this…
to the possible risks, but in areas where you are not covered, then
So what should a woman do?
get covered. Nothing is worse than having worked hard, reaching your
Firstly, every woman should be able to hold
goals and then having it all taken
her own part of the sky up - by this I mean that
away from you because you did not
every woman should be able to support herself
plan properly for the ‘just in case’.
financially; to provide for her dependents and to meet her obligations. Compromises may of
Thirdly, invest correctly. As with your insurances, no one can predict the future, but what we
course be necessary, but there are certainly goals
do know is that some 90% of your asset allocation determines one’s portfolio performance2.
which cannot be compromised. For example,
Depending on how risk averse you are, consider the traditional asset classes: cash, bonds
for my mother, the most important thing as far
(ﬁxed interest), property and equities and invest in them by using the four guiding principles
as I can remember was to educate us three
of: diversity, quality, time and value.
children. Although we were comfortably well-off,
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my mother feared that should something happen
Diversification is important in any sound portfolio in that you should not over-expose
to her, we would not be given the opportunity in
yourself to any one investment class i.e. make sure all your eggs are not just in one basket.
With regards to quality investments, ensure that the asset has good prospects and can
If you would like to discuss this article, or would like to learn more about ipac, please email
be bought at a reasonable price (value). Timing is also critical – so try to remove emotion
Alison.Asome@ipac.com.hk or visit www.ipac.com.hk
when investing. Emotional cycles often reﬂect the economic cycle and unfortunately as the markets change so does investor sentiment. This can be managed better by having a plan
The above information is of general advice only, which has not taken into account the
and knowing that the market will rebound and that by sticking to your plan, you are more
investment objectives, ﬁnancial situation or particular needs of any person. Before making
likely to reach your goals than if you pulled out of the markets altogether.
an investment decision, you should speak to a ﬁnancial planner to consider whether this information is appropriate to your needs, objectives and circumstances.
So to conclude, every woman (and man) can hold up their part of the sky. All you have to do is just work out which bit you want to hold (what is important to you) and adhere to a
From the book “Rich Woman”, by Kim Kiyosaki
sound Financial Plan.
Does Asset Allocation Policy Explain 40, 90, or 100% of Performance by Roger G. Ibbotson and Paul D. Kaplan
May 2011 • Vol 26 • No 5
London’s Lord Mayor Visits Hong Kong By Sam Powney
Lord Mayor, Alderman Michael Bear visited Hong Kong in April
training, it has helped hundreds of people to gain “life chances” which would otherwise
to continue the government’s close communications with Hong Kong’s government and
be inaccessible.’ The Lord Mayor also stressed the challenges that faced the 18-year
business. Arriving after a tour of several cities in the mainland, the Lord Mayor talked
project, including archaeological and environmental aspects. In fact, the developers took
with Hong Kong government representatives and delivered a press statement as well as
care to preserve some of the history unearthed, and even incorporated some of the old
speaking at a breakfast brieﬁng organised by the British Chamber of Commerce and Hong
materials, such as cannonballs, into the newly paved pedestrian areas as reminders of the
Kong General Chamber of Commerce.
The Lord Mayor of London is a post with an 821 year history. Previous Lord Mayors include a signatory of the Magna Carta, the killer of Watt Tyler, the ﬁrst Governor of the Bank of England, and the hero of the popular rags-to-riches tale - Dick Wittington. The role of the Lord Mayor is to support and promote the City brand; this encompasses the whole of the UK’s ﬁnancial and professional services – from accountancy to banking, law to insurance and including the UK-based maritime services industry. The last seven
In a press conference later in the day, Mr. Bear continued to stress the vast potential for UK-Hong Kong co-operation, especially on major construction projects. Besides the West Kowloon Cultural District, he also noted the contributions of British engineering and consultancy ﬁrms in the construction of Chek Lap Kok Airport, the Lantau Link, and several new MTR stations. He stressed the essential provision in the 21st century of ‘complex engineering, complex ﬁnancing, and complex delivery.’
consecutive Lord Mayors have made visits to China and Hong Kong. ‘It is clear that the UK and Hong Kong have a lot of experience to share. The UK can serve Lord Mayor Alderman Michael Bear has decades of experience in the engineering and construction industries and is perhaps most famous in the UK for his role in the redevelopment and regeneration of the Spitalﬁelds area of London. At the joint Chamber breakfast he introduced his experiences with that project, and detailed some of the rewards that regeneration can bring to deprived areas. Although particular conditions on the ground may differ, the broad concept of regeneration has fairly universal applicability. Hong Kong has long experience in the often urgent need for urban planning, and the next few years should allow for plenty of urban development, major plans for which have been incentivised by the large government budget surplus. Norman Foster’s winning bid to redevelop the West Kowloon Cultural District looms large as part of the Hong Kong’s self-image, but recently the city has also been mulling over how to ameliorate conditions in some of its more neglected areas like Tin Shui Wai and Yuen Long and overcrowded districts like Kwun Tong.
Among the 23 countries he will be visiting, the Lord Mayor explained the importance he attaches to this region in particular, ‘Chinese and UK Premiers agreed our countries should be ‘Partners for Growth’, and pledged to double bilateral trade to $100 billion by 2015. My visit has focused on ﬁnding ways to meet this goal.’ He sees his ﬁeld of experience as a key part of continuing economic development, even in a thriving metropolis like Hong Kong, ‘Urban regeneration is an investment;’ he said, ‘an investment in communities and businesses – providing the jobs, homes and services that can transform the peoples’ lives and help them realise their aspirations.’ Characterising this growth as a ‘renaissance’ of business and community confidence, he recalled his experiences as Director of Regeneration at Hammerson, where he witnessed urban regeneration transforming local communities, and improving aspirations in some of the UK’s poorest areas. The regeneration of Spitalﬁelds has been recognised as an outstanding success story a deprived and neglected area being transformed into a hub for business and lifestyle. ‘The development at Bishop’s Square was not just a series of buildings and public spaces – it was a celebration of the area’s unique feel and heritage. Through employment and
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as a valuable partner for Hong Kong’s many High Value Opportunity projects. And we can learn from Hong Kong’s terriﬁc record in delivering large scale, dramatic infrastructure. We welcome the opportunity to continue building a strong future for Hong Kong.’
How to manage “Off-Balance Sheet Risk”? By Barry Tong, Partner, Advisory, Grant Thornton Jingdu Tianhua
have been a string of recent and
Currently, there are many new entrepreneurs in mainland China, with excellent qualiﬁcations, skills
highly publicised scandals involving Chinese firms
and good connections. However, these cannot always be taken at face value and businesses
listed in the stock exchanges of Hong Kong,
need to verify and authenticate whether such qualiﬁcations and claims are in fact genuine.
m a i n l a n d C h i n a , S i n g a p o re a n d t h e U S . T h e s e scandals have highlighted the unfortunate fact that
Whether a potential target partner is a listed company, privately-held business or former
a major risk in business comes from off-balance
state-owned enterprise, focused reviews need to be conducted to gain a deeper insight
sheet issues. This issue is especially prevalent in
into potential risks.
the mainland, where reliable and accurate business, accounting and legal information is not often
Companies require a level of comfort to support strategic and investment decisions. Issues
available and where, as a consequence, there is
such as the target partner’s reputation, history, background, connection, network, business
a heavy reliance on personal relationships and
ethics and individual management’s integrity and actual inﬂuence in its local environment
consequently on personal integrity.
can be the key to a successful deal.
To avoid major problems, it is vital to examine not only the company’s financial
However, it is also necessary to identify potential problems, such as labour disputes,
statements and legal documents, but also to closely review the workforce and the
litigation history, undisclosed indebtedness, significant capital expenditures and
organisation as well.
operating commitment and contingent liabilities, and potential regulatory or environmental breaches. Equally important are bribery-related considerations (e.g.
Most importantly, contingent liabilities, also referred to as off-balance sheet items,
employees taking kick-backs or rebates) or potential money laundering exposure.
should be carefully analysed as part of the overall risk assessment. Potential offbalance sheet exposures include: understatement of tax payments, pending litigations,
Off-balance sheet risk can be manageable if a company is willing to adopt a robust
corporate guarantees, capital expenditures and ﬁnancial commitments given to third or
approach to due diligence.
related parties. Negative information acquired through due diligence can lead to more favourable Due diligence should therefore be a critical part of the evaluation process before any
negotiation terms for the acquirer, and can ensure that deals are structured to reduce
merger and acquisition transaction. Essentially, the due diligence process helps identify
the identiﬁed risks.
issues that have not been disclosed and identify business, ﬁnancial, legal and human resources risks that are not immediately visible or obvious. Businesses should look
Due diligence is particularly cost-effective when undertaken in the early stages of a
closely at the entities and people (such as senior management) involved in any given
transaction, because it allows businesses to identify problematic issues quickly before
transaction, examining their background, reputation, track record and litigation history.
committing considerable ﬁnancial and management resources to the deal. It can identify potentially serious failures in disclosure which can lead to expensive delays, further negotiations, cancellations or, most costly of all, damage to corporate reputation. And for the end: Grant Thornton Jingdu Tianhua is an integrated part of Grant Thornton China that offers a full range of assurance, tax and advisory services to privately held businesses and listed companies of all sizes. For more information please visit www.grantthornton.cn. Contact: Barry.Tong@cn.gt.com.
May 2011 • Vol 26 • No 5
Up in the Air Interview with Sir Martin Broughton
Sir Martin’s speech to the Chamber was part of the Captains of Industry series, sponsored by KPMG.
Interview Background: Similar to Richard Branson, Sir Martin went straight from a secondary education into a high-
flying business career. Sir Martin joined British the 75th anniversary of British Airways’ first flight to Hong Kong, Sir Martin
American Tobacco in 1971, ultimately becoming
Broughton, Chairman of British Airways came here in late March, and gave a lunchtime
Chairman and Chief Executive in 1998. In 1999,
speech to the British Chamber of Commerce. Sir Martin called for a third runway at Hong
he became an independent director of the British
Kong’s Chek Lap Kok Airport, warning that Hong Kong should not fall into the trap that
Horseracing Board, eventually succeeding Peter
London did in failing to allow for increasing air trafﬁc demands. In the face of small but vocal
Saville as Chairman in July 2004, at which point
opposition, the proposed third runway at Heathrow Airport was jettisoned last year, to the
he retired from his roles at BAT. Though a lifelong
widespread dismay of the aviation sector and British business groups generally.
Chelsea supporter, Sir Martin served as Chairman of Liverpool F.C. during 2010.
Chek Lap Kok Hong Kong International Airport
Aviation: Are carbon taxes on airliners and/or passengers effective in hastening development of
Facts and Figures •
In 2010, 50.9 million passengers used the Hong Kong International Airport (HKIA), and 4.1 million tonnes of air cargo passed through Hong Kong.
HKIA is connected to about 160 destinations, including around 45 in mainland China, through about 900 daily ﬂights by over 95 airlines.
HKIA is the busiest airport for cargo throughput and the third busiest airport for international passenger trafﬁc in the world.
viable, cleaner innovations in the airline industry? I am a great believer in emissions trading but not in carbon taxes. Carbon tax is a very blunt instrument. Emissions trading allows people to focus on the cheapest, most economically rational means of reducing carbon. For example, because of the UK’s climate solar energy is by far and away the most inefficient natural energy source there, yet the UK government still subsidises solar energy schemes. Emissions trading eliminates impractical measures.
Chek Lap Kok commenced operations in July 1998. Terminal 2 opened in June 2007, and there is currently a HK$4.5 billion programme underway to enhance capacity and improve the
Airlines are already doing a huge amount in terms of reducing carbon output. The airline
airﬁeld at Terminal 1. HKIA is also carrying out engineering feasibility and environmental studies
industry accounts for about 2.5% of carbon emissions; we also contribute about 8% of
for building a third runway.
global GDP. Aviation is a social and economic good. So, you have to think about how to reduce carbon whilst allowing growth in the aviation industry. And there are some very
simple procedures which can contribute quite significantly. For example, continuous
As one of the busiest airports in the region, HKIA has seen a steadily increasing flow of
descent rather than stepped descent greatly reduces fuel consumption, and now airliners
air traffic over the last few years. Nearby airports in Shenzhen and Guangzhou have also
are introducing much more fuel-efficient engines. Personally I think that a good way to
seen great increases in trafﬁc, not just in competition with Hong Kong but also from direct
improve both fuel-efﬁciency and safety globally would be to withdraw all passenger aircraft
agreements with an overburdened Chek Lap Kok. There have been growing calls from public
over 25 years old.
and private sector ﬁgures for a third runway at HKIA in order to ensure that Hong Kong retains its edge as a key global and international business hub.
The Hong Kong Ideas Centre, a non-proﬁt organisation, estimates that by 2017 Chek Lap Kok will be saturated and may have to turn away ﬂights. They also note with concern that an airport runway usually takes around 10 years to build. Mr. Patrick Lau, HKIC’s Airport Study
We are at the moment working with a company called Solena making jet-fuel out of household waste. There is a real possibility that by 2030 we could have the majority of jetfuel coming from bio-fuels. If you had asked me about that ﬁve years ago, I would have said that it couldn’t happen in the next century.
Group convener and former Director of the Lands Department, explains the immediacy of the need, “Given the intense competition now facing us, we contend that Hong Kong has to
Although British Airways is a very international company, Heathrow is still very
address the third runway issue with a sense of utmost urgency, otherwise our competitive
much your base. Do you see it remaining so in the future?
advantage will be diminished”.
Yes. Although we can’t grow it, it is our hub. We tried for several decades to have a dual hub – both Heathrow and Gatwick. Gatwick is a very good South-
The government is currently pursuing a public consultation on the construction of a third runway.
We s t re g i o n a l a i r p o r t ; i t ’s n o t a h u b . R e g re t t a b l y, I t h i n k w e ’ v e p ro v e n t h a t
Building a third runway will be a major engineering project involving land reclamation, and will
provide a great number of additional jobs on the largely undeveloped island of Lantau. The existing 12.48 km² airport site was created in the 1990s by levelling the tiny Chek Lap Kok and Lam Chau islands and reclaiming adjacent seabed, adding nearly 1% to Hong Kong's total surface area.
www.brit cha m.co m
We could certainly have a hub elsewhere in Europe. If in the future North America has genuinely open-skies, we could have a hub there too.
Education: Should one need a university education to progress in a high-level business or political career? No. It is increasingly expected of young people, but I think it’s time to think again about direct entry into demanding careers – which is in itself a form of tertiary education. There are ways to become, for example, a chartered accountant without doing a degree – but the perception is that there aren’t, and therefore less than 2% of accountants have actually arrived through those routes of entry. We do need to catch more numerate students at an earlier age, especially if they plan to go into a career in which they will gain a professional qualiﬁcation in any case. I didn’t do a degree but I think that I actually got a head start over a lot of other people in my ﬁeld. I’m all in favour of education and of tertiary education; I’m not in favour of promoting tertiary education as a mechanism of keeping people off the unemployment register. And one is suspicious that too much of it is done for those purposes. There are very good reasons for going to university and I would encourage anyone to go to university; there are also other options which can be equally dependable. At British Airways we’ve just restarted our apprenticeship system, launching two brand new apprenticeship schemes this time last year. This is a step forward I think. There has always been a mismatch between what business wants from a school leaver or university leaver and what is delivered by the education system. The CBI spends a lot of time trying to align ‘output with input’. And let’s not forget that, in the UK at least, business spends ten times what the gover nment spends on tertiary education.
Smoking and Gambling: Football:
In terms of public and government acceptance in the
In what key ways do you see globalisation affecting/
UK, smoking and gambling seem to have followed
changing football culture?
inverse trajectories. Is that kind of shift in public
It has changed it - it’s no longer a local sport. If you look
consciousness entirely rational?
at the Premier League, the players are international, the
No. Smoking has been demonised. If you look at the
managers are international, the owners are international. It
courts in the UK, you will see that around half of all
has been dramatically changed by the globalisation process.
criminal cases are alcohol-related. Scarcely one is
Clubs have to focus on who their fan-base is. I think there’s
smoking-related. But smoking is banned in pubs while
still too much of a tendency to think of the fan-base as being
drinking is not. This is because smoking is a minority
the people who come to watch the games at the stadiums.
occupation while drinking is a majority occupation.
I feel that some of the large clubs don’t focus enough on
Legally one is not allowed to discriminate against
their global fan-base, perhaps the largest part of which is
minorities…except in the case of smokers where one is
here in Asia. Where you already have an entrenched football
culture, such as in South America, people tend to support their local teams, but in countries like China which don’t
Gambling is one area where the British government took
have such a signiﬁcant football heritage, fans often support
the opportunity to capture a global leadership position.
both a Premier League club and perhaps a local club as
Even today, in other European countries betting tends to be
well. That’s a big fan-base which the Premier League clubs
would do well to dedicate more time to. Is horse-racing catching on in China? We think there is rising interest in China. There are strict laws against gambling in China, but that doesn’t have to be a problem. Horse-racing is a hugely popular phenomenon in Dubai and there’s no gambling allowed there. People who go to the races in Dubai can bet on which horses will win in several races, but no money is involved – that’s included in the ticket price. They can still win money of course – so it’s more like a lottery in some ways. That could be an option in China too.
May 2011 • Vol 26 • No 5
China set to overtake the US and dominate global trade by 2030 Emerging and developing economies to make up signiďŹ signiďŹ cant cant share of global output From PricewaterhouseCoopers
growth â€“ and many of the customers they have are the T&L industryâ€™s players,â€? says Alan Ng,
US, and dominate global trade by 2030. Together with China, emerging economies like
PwCâ€™s Transportation and Logistics Leader for China and Hong Kong.
, 22 March 2011 â€“ China is expected to overtake the
Indonesia, Malaysia, Nigeria, Saudi Arabia and India are also poised to play an increasingly important role in the top sea and air freight routes in 20 years. These ďŹ ndings are revealed in
Global trade suffered a sharp decline in 2009, but bounced back robustly over the past
the latest PwC â€œFuture of world trade: Top 25 sea and air freight routes in 2030â€? report.
year. Itâ€™s estimated to have ended 2010 above its 2008 peak. Trade as a proportion of world GDP is expected to increase in the short term, as the world economy gains strength and
In the report, PwC economists use special modelling techniques to project bilateral trade â€“
conďŹ dence. But in the coming years, the trade landscape will undergo fundamental change,
requiring either sea or air freight â€“ between 29 economies over the next two decades. The
as the emerging economies begin to play an increasingly critical role in the trade landscape.
key ďŹ ndings reveal four key areas that could present signiďŹ cant opportunities for transport and logistics (T&L) ďŹ rms:
The table below shows how, by 2030, China will have moved into a dominant position,
Trade within the Asia-PaciďŹ c region.
appearing in 17 of the top 25 trade pairings. Also in the mix are some emerging countries
Trade between emerging and developed economies â€“ inspired by Germany/China
such as Indonesia, Malaysia, Nigeria, Thailand, Saudi Arabia, Brazil, India and UAE.
Trade between emerging economies, such as parts of Asia and Latin America
Trade between China and Africa PricewaterhouseCoopers Ltd., 22/F, Princeâ€™s Building, Central, Hong Kong
â€œTransport and logistics companies will need to adapt to the change in trade patterns to
T: (852) 2289 8888, F: (852) 2810 9888, www.pwchk.com
ensure they maximise their proďŹ t opportunities. Planning for the trends that will shape the trade landscape over the next 20 years would beneďŹ t a company in this highly globalised marketplace. The â€˜first moverâ€™ advantage is likely to be important, and establishing a presence before your competitors on a route that becomes a signiďŹ cant global trade ďŹ‚ow is likely to be highly valuable,â€? says Yael SelďŹ n, PwCâ€™s Head of Macro Consulting. In fact, the changing picture of global trade has already been providing opportunities and challenges for those operating in the T&L industry. For example, 73% of T&L CEOs say they are changing their strategies to respond to the potential growth in emerging markets. â€œMany growth stories
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remain in Asia, with China still being considered as the epicentre of global trade. In the recent PwCâ€™s 14th Annual Global CEO Survey, most CEOs, regardless of the sectors in which theyâ€™ re operating, are looking to Latin America and Asia â€“ and to China in particular. 39% of CEOs
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Top air and sea freight bilateral trade pairs in 2030 Rank
Air and sea freight bilateral trade pair
United Arab Emirates
Trade value (2009 US$m)
www.brit cha m.co m
Source: PwC projections
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Rebalancing The Global Economy Interview with Andrew Walker, BBC Economics and Business Correspondent
three years after the global financial
crisis, countries that previously wielded a great deal of clout such as the US and European economies are still feeling the ripples. Meanwhile here in Asia, the picture is very different. China continues to be a thriving
Many people, particularly in the US, fear not just the economic implications of China’s economic rise, but the political ramiﬁcations as well. China’s tightly managed exchange rate has already been a point of strong contention. What other issues do you feel need to be resolved in order to avoid political conﬂict, and create a mutually beneﬁcial global economy?
economic superpower, ﬁnancial centres such as Hong Kong and Singapore are seeing steady growth, and
The exchange rate is an important issue as you suggest. Allowing the currency to rise
developing economies such as India, Indonesia and
certainly could help moderate global economic imbalances by encouraging China to import
Vietnam are seeing an influx of foreign investment.
more. It would also help China with its inﬂation problem by making imported goods cheaper.
Ian Cruz speaks to Andrew Walker, Economics and
On the other hand there is the concern about possible job losses in export industries. And
Business Correspondent, BBC World Service to
many critics of the US say it’s the Federal Reserve’s monetary policy that is the real cause of
explore the effect which the power shift towards Asia is
trouble in the currency markets, because it has weakened the dollar.
having on the rest of the world and what are some of the impacts of the rebalancing of the global economy.
Trade and investment between countries within Asia is on the rise, and the East now seems less reliant on economic activity from the West. Are Asian economies still looking to the West for business, with the increasing opportunities here in Asia?
Some would say that China consolidated its position as an economic superpower due to the way in which it handled its economy during the global ﬁnancial crisis. Would you agree with this, and what other factors have contributed to putting China in this position? This raises a very contentious issue. Many people say that China’s actions before the financial crisis caused it. I wouldn’t put it as baldly as that. There were plenty of other
In one sense, Asian economies don’t have much choice. They will have to look for opportunities outside the large developed economies, and I include Japan in that, as well as “the West”. Consumers in those countries will be constrained by high levels of debt and by the tax and spending consequences of government’s trying to stabilise their debts. Western consumers are not going to be the reliable source of export growth they once were. Asia by contrast, excluding Japan, is likely to enjoy stronger economic growth with a growing army of consumers keen to improve their standard of living. Having said that, I think you can exaggerate Asian economies’ de-coupling from the West. Last year, the US and the EU were the destination for 38 per cent of China’s exports. That’s about the same as in the early 2000s and higher than in the 1990s. There was a short period when it was higher, a few years before the great ﬁnancial meltdown and probably will continue to decline. I do think, however, that the traditional western markets are going to be important to Asia for many years.
culprits. But there’s a good case for saying that the China’s high savings and investment of its rising foreign exchange reserves provided the fuel for the crisis. China’s excess liquidity proved to be a very ﬂammable liquid. It was the US and other housing and ﬁnancial markets that put a match to it. Once the crisis came, you could say that China’s global economic status was reinforced by the fact that growth slowed and then quickly accelerated again. It helped that China had a low level of government debt, so it could use the budget to stimulate the economy without having to worry unduly about the consequences. What a contrast with the US, Japan and much of Europe, where the recovery has been relatively sluggish and government debt is a deepening problem.
Which current issues do you see as being pivotal to the future shape of Asia’s role in the world economy? Whether or not the global recovery continues with its current two-speed performance:
Do you see China looking to reshape the global economy and its international systems to better serve its (and Asia’s) needs, or will China be integrating itself to signiﬁcantly bolster the global economy as a whole?
strong in the developing world and less convincing in the rich world. My own guess is that debt, private and government, in the developed world will be a strong headwind to economic growth for some years. Asia will need its own consumers to spend more; dare I say – to become a bit more western. That is an essential element of the global economic
China will pursue its own interest as its leaders and business people perceive them
rebalancing that the IMF is trying to facilitate.
– what country does anything different? How much benefit that brings the global economy depends on how much Chinese consumers come to be a growing source of
Some of the rebalancing is already underway. The rapid growth in consumer spending in
demand for other countries’ exporters. Private savings rates in many Asian countries
the US, Britain, Ireland and other countries has ended and their governments are trying
are very high. If they come down as China grows, others will benefit from increased
to stabilise their debts. Unless there is a massive surge in business investment in those
sales. In international fora such as the IMF, China will undoubtedly seek to become
countries, which seems unlikely, that will mean smaller international trade deﬁcits, which in
more influential. It already has made some gains in terms of share of the IMF’s complex
turn means smaller trade surpluses for others, including large parts of Asia. If they want to
weighted voting system, but not very much and I am sure they will keep up the
continue their prodigious recent growth, the chances are they will have to start consuming
pressure for more.
more of what they produce at home.
May 2011 • Vol 26 • No 5
The British Chamber of Commerce and Standard Chartered Bank have chosen KELY Support Group to be the benefitting charity for the 2011 Annual Ball. We asked Chung Tang, Executive Director, to talk about the issues facing young people growing up in Hong Kong today.
By Chung Tang, Executive Director of KELY Support Group
uch has been said about the state of our young people in Hong Kong,
rate for local students is only 15% to 18%, which suggests that only a
in particular, their lack of self-awareness, self-direction, engagement
minimal proportion of our local Chinese students are receiving degrees to
in society, as well as readiness to be part of the adult world. Whether itâ€™s
prepare them for their future.
issues of poverty, technological advancement, family breakdown, drug abuse or problems with the current education system; there has been
Some have also argued that youth today seem disconnected from society
much debate about how these variables are impacting our young peopleâ€™s
and lack a sense of family, community and social structure. Others have said
development and how our systems are failing our youth.
that there exists a real disconnect between our youth and decision-makers within our systems, a growing apathy which is also contributing to a sense
As the older generation continues to mature and the birth-rate in Hong
of mistrust and an unwillingness to work together. For their part, many
Kong continues to decline, there is also a genuine concern from the public
young people in Hong Kong feel that while policy makers think that they
about the lack of locally skilled and critical talent, which is necessary to
are making decisions in the best interest of the young, the reality is that
ensure the prosperity and sustainability of our future society. According to
they often donâ€™t genuinely know what young people want, nor are they
the Hong Kong Census and Statistics Department, the university admission
even interested in consulting them.
www.brit cha m.co m
KELY Support Group (KELY) is a non-government funded charity which was
disturbing trend is the fact that an increasing number of young drug
established 20 years ago for young people with drug and alcohol addiction
abusers are female, many of whom are also ﬁrst time users. The youngest
issues. Through the provision of various programmes and services, we reach
reported drug abuser in Hong Kong was 10 years old. Based on the most
out to over 35,000 local Chinese, ethnic minority and English-speaking
recent statistics from the Narcotics Division, the newly reported drug abuse
youth in Hong Kong. Whether it’s through our harm reduction education,
cases by age for 2010 is 10.5% for those under 16 years, and 36.8 % for
peer support, circus skills training, our helpline, or our youth forums,
those between 16 to 20 years of age.
young people have told us that what they are searching for is simply what most young people around the world want: a sense of belonging, family,
In the face of all the compounding issues affecting our youth, KELY remains
community, healthy relationships, and solid education and employment
optimistic when it comes to how we can support them and help them see
opportunities, just to name a few.
their own potential. Our mission is to empower young people through nonjudgmental peer support to help them make informed choices. Using a peer
Although what our youth is searching for seems very basic and attainable to
support and self-help approach, we work with vulnerable youth to help
many, the reality is quite the contrary because the situation in Hong Kong
them see failure as opportunities, and to always value themselves and what
has become so dire for our youth compared to 10 years ago. Despite the fact
they can contribute to society.
that Hong Kong’s economy continues to grow, a large number of our youth are still not reaching their goals and continue to fall through the cracks.
KELY also places heavy emphasis on helping youth develop strong selfesteem through “doing”. Our work is all about creating accessible
According to the Hong Kong Council of Social Services, poverty and
platforms for young people to obtain important skills such as: leadership,
unemployment amongst young people is on the rise. Based on the statistics
communication, negotiation, and teamwork; all of which help to foster
compiled by the Council, poverty rose from 15.4% 10 years ago to 20% in
a sense of achievement and contribute to positive self-esteem building.
the first half of 2009 – an indication that over 180,000 young people were
Whether it’s having our youth organise large scale youth forums or
living on the poverty line in the city. Further statistics from the government’s
multimedia art productions, young people are guaranteed the opportunity
General Household Survey have indicated that in 2005, the number of students
to learn new things about themselves and obtain knowledge and expertise
who had earned an associate degree or high diploma and were receiving
which will help them in meeting their future goals.
Comprehensive Social Security Assistance (CSSA) was 500. For 2011, the number receiving CSSA with the same level of education is a shocking 900 students.
For more information about KELY, please click onto www.kely.org
There has also been an increase in the number of young people emerging from families experiencing social breakdown. The bi-annual social development index released by the Hong Kong Council of Social Services “found that family solidarity and child welfare in Hong Kong have been declining steadily over the past 10 years”. According to the Council, young people have increasingly grown up in families with either separated or divorced parents – with this number having increased from 97,000 to 224,000 families in the last 10 years; an indication that our young people are receiving less support at home. Drug abuse is also an on-going issue facing our youth. According to the 2009 Report of the Task Force on Youth Drug Abuse, Hong Kong has seen an alarming rise in the number of abusers below the age of 21. The report states that there has been a steady increase with younger ﬁrst-time abusers under the age of 16, as this group has grown 57.8% from 2006 to 2008, compared to 29.5% for youth aged 16 to 20 over the same period. Another
May 2011 • Vol 26 • No 5
An Elephant in the Living Room Hong Kong’s Looming Food Waste Problem By George Woodman, Director Teng Hoi Conservation Organisation
elephant in the living room’, that wonderful English idiom, that refers to a
truth that is being overlooked, even though it’s as obvious as an elephant in your living room. The elephant we are illuminating here that has been almost overlooked until now is the importance of food waste in Hong Kong in the context of waste management. Our government maintains and publicises excellent statistics for the SAR that includes ﬁgures for our daily disposal needs and a breakdown of the types of waste. Food waste has typically made up around 40% of all domestic waste over the last few years, with around one third of the total waste going into landﬁll. When food waste is buried in a landﬁll it decays anaerobically (in the absence of oxygen) generating gases such as methane, hydrogen sulphide and carbon dioxide. Some of the gases smell bad and lead to complaints from local residents. Less well-known is that methane is a potent greenhouse gas: each tonne of methane is equivalent to around 25 tonnes of carbon dioxide in its Global Warming Potential, and that methane from landﬁlls has contributed up to 12% of Hong Kong’s emissions in recent
An important key to Hong Kong’s waste problem is to separate putrescent waste from all
years. Food waste is therefore
other waste. Then there would be no need to collect rubbish so frequently. In fact, once the
a component of our solid waste
putrescent waste has been separated, then recycling of the non-putrescent waste such
that generates signiﬁcant issues.
as plastic and metal can be much more efﬁcient and pleasant. However, the difﬁculty of engaging the public with this has confounded policy makers. Bokashi Composting is a Japanese solution that has been successfully used in other countries to separate food waste. Normal putrefying microorganisms are out-competed when food waste is placed into an airtight container with Bokashi, which contains other microorganisms that ferment the food waste. Bokashi composting is a technique that can buy time for more sensible handling of food waste. In our work with schools, we’ve kept Perhaps one reason why we’ve managed to miss
food waste in sealed boxes for periods of many months. When opened, there’s a distinct
this elephant in our living room is the stupendous
smell of vinegar and pickles, but it’s not the awful smell one would expect. The other great
efﬁciency with which the Food and Environmental
advantage with Bokashi composting (when compared with worm composting) is that it can
Hygiene Department (FEHD) deals with our waste and, more importantly perhaps, at no
handle nearly all types of food waste, including cooked and uncooked meat and ﬁsh as well
charge to the public. By contrast, in many developed countries one has to pay directly for
as vegetables and carbohydrates such as rice and noodles. It is possible to imagine a Hong
domestic waste disposal and there is a ﬁnancial incentive to ‘Reduce, Reuse, Recycle’. So
Kong where domestic waste is collected once a week from ﬂats and homes in a sealed box
why is Hong Kong so different? One reason for the evolution of Hong Kong’s system is that
where it is safely and hygienically fermenting, free from vermin and unpleasant smells. Such
putrescent waste (which is mostly waste food) is a potential health hazard and therefore the
systems exist elsewhere: in east London a charity group has successfully run a scheme that
maintenance of high standards of cleanliness has facilitated the evolution of a zero-charge
handles over 80% of the residents of tower blocks that are not too dissimilar to the mostly
system to avoid ﬂy tipping and other non-compliance issues. Whatever the reason, the Hong
urban environment of Hong Kong.
Kong public has been spoilt by our marvellous FEHD. The rapidly-ﬁlling landﬁlls have been reported in the newspapers over the last decade or more – yet Hong Kong’s volume of waste
One common misconception with Bokashi composting is that the end result is a
has steadily risen. By contrast, Taiwan reduced its waste stream by 50%
container of compost. It’s not quite as straightforward as this: the pickled food waste in
over the same time period.
its container needs to be either digested in a purpose-built machine or buried into soil where the soil microorganisms ﬁnish off the decomposition. The end result in both cases is a rich compost. There is now a need to demonstrate that Bokashi composting is acceptable in the Hong Kong community and hence underline its potential to resolve one of the thorniest issues of our waste management problem. Community acceptance of a new way of handling waste is a very important component of an effective solution. Teng Hoi is currently working with Britcham along these lines to help develop educational and practical approaches to the food waste management problem that are suitable for Hong Kong.
www.brit cha m.co m
The Drive for Success By Ian Cruz
in Hong Kong, those looking for the thrill of speed will be sorely disappointed.
However, considering the high proﬁle of motor sports in Asia, with races like the Japan
success and positive response from sponsors, as well as the positive media coverage it has been garnering, Wong believes the races will mature within the next twelve months.
Grand Prix and Macau GP, and the relatively recent addition of the Singapore GP, the potential for the growth of motor sports here in Hong Kong and around China is something
Though somewhat of a thrill-seeker himself, Wong is not just pursuing his desire for speed,
that hadn’t escaped the attention of Richburg Lotus CEO, Eric Wong. Through a new
or indeed his wish for business success with this venture, but is actually attempting to
racing scheme initiated by Wong, drivers in China and Hong Kong have recently been
develop motor racing as a viable sport for people in Hong Kong and China to enjoy. “We’re
given the opportunity to experience some of Lotus’ most powerful machines as they are
not creating a hobby, we’re creating a sport,” says Wong. “You need a lot of training and
meant to be experienced – fast. “Lotus
commitment, but it’s also a lot of fun. We believe that teamwork on and off the
has a long history in racing,” says Wong.
track – during training, networking and building team spirit – can provide a bond
“The brand has gotten stronger through
between owners, all with the aim to create good sport.”
its involvement in motor sports in the US, Europe and in Asia, and so we’d like to
Sponsors for the Lotus team have reacted positively, with companies such
take the same approach in China and
as Nokia, Yokohama and Speedmaster getting involved, while the increasing
media support and market exposure shows promise of more business to come. With regards to Lotus owners, Lotus’ base in Guangdong houses facilities and
M u c h l i k e t h e b r a n d h e re p re s e n t s ,
a VIP lounge for car owners and their families to get involved and comfortably
the man behind the scheme, business
immersed in the racing experience, with an eye to creating branding valuation
entrepreneur Eric Wong, has a six cylinder
that will hopefully bolster the number of Lotus owners on the mainland and
past. Trained in the Hong Kong Police Force prior to his current ventures, he has applied
sustain the brand’s racing scheme. Wong feels that it is important that this close connection
the same regimented approach he learnt on the force to conducting his business, resulting
with the motor sports world will offer a totally new type of ownership experience for those
in a very successful and illustrious career. “Through my police career, I’ve learnt how to
with a Lotus.
turn ideas into action - how I successfully execute my missions, and how I conduct my contingency plan. In the police, we learned two sayings – ﬁrstly, ‘no pain, no gain.’ You
While the drivers for the Lotus team are made up of people from Hong Kong, China and
need to put in a lot of commitment if you want to be successful. The second is – ‘failing
Britain, Kwok hopes that even more homegrown interest will help spur the sport forward
to plan is planning to fail.’ These are the ﬁrst cautionary words I learned when I joined the
as they look for more drivers in the future. This is why, in addition to organising the team
and their races, Wong has also started a school for racers, where potential drivers
This steadfast attitude has led Wong to be awarded the Young Entrepreneur of the Year at
from around the region can be developed
the 2007 DHL/SCMP Hong Kong Business Awards, as well as a list of seemingly endless
and hone their skills in the burgeoning
businesses involvements outside of Lotus, from restaurants and consulting, to NGOs and
sport, while being coached and advised
high tech engineering. This is all on top of his role as a published writer, radio personality
by professional drivers in each session
and social commentator. “I’m a man of the future. I’m not a man of history so I don’t keep
on skills, experience and how to improve
my own records. I’m a record breaker, I create my own legend. I never look back. The future
competitively on the race track. Having
is more fascinating than looking back.”
already built a strong foundation for motor sports in such a rapidly growing economy
It took this unique business foresight for Eric Wong to truly foresee the true potential for
as the mainland, the future for the sport
both motor sports and Lotus in Asia. On the Mainland, they are taking up motor sports
and for Lotus looks bright.
quite fast as can be seen in the growing infrastructure for racing, with seven racing tracks around China and another two on the way which are being built to international standards. The ﬁrst Lotus race took place last March at the Guangdong International Circuit with nine cars taking part, and involving drivers from different walks of life – entrepreneurs, professionals, engineers – from Macau, Hong Kong and China. Given the initial
May 2011 • Vol 26 • No 5
Borneo Jungle By Richard Witts When Richard Watts and wife Akiko won a holiday in the auction at last year’s Britcham Ball, they had little idea of all that Borneo held in store for them...
Let me ﬁrst say that the hospitality of the Iban people was overwhelming. We were told that 15 families stayed in the longhouse and we were offered one of two areas for our “bed”. We had a “deluxe” area because a mosquito net was somehow erected round our mattress, lying on the ﬂoor. I had been warned that I would be expected to drink copious amounts of
the native rice wine, known as tuak, and prepared myself slight sense of curiosity combined with
for the task ahead with a few Tiger beers. I had also been
alcohol-inspired enthusiasm at the always
tipped off that I may well be expected to sing. Now, this
splendid fun Annual Ball in June last year, saw
was OK with me as I actually like singing. Whether anyone
me outbid all others in one of the items in the
else likes it is totally irrelevant to me. Unfortunately, and
British Chamber’s Annual Ball. My wife, Akiko,
inexplicably, no singing was called for at all. Instead we had
and I had obtained a 12 day tour of Borneo,
dancing, which I am not good at and don’t like at all. The
generously sponsored by HSBC. The Borneo
village Chief came to watch from his chair (the only one I
jungle is famous not only for its orang-utans but also for the head-hunting Iban tribe, man-
saw in the longhouse) but seemed strangely unimpressed
eating crocodiles, malaria, snakes, leeches and all sorts of other unspeakable creepy-
as he sat there impassively smoking his cigarettes.
crawlies. I could not help but ponder, on the morning after the Ball, on how well I had done! I also wondered how long could we put this trip off… The voucher seemed to be good for
Akiko and myself had a somewhat restless night. I don’t think either of us slept. It was hot
one year. We went in March.
and it was also noisy with dogs barking, cocks crowing, pigs snorting and 15 families doing whatever they do at night time. Next morning brought my attempts with a blowpipe and
There was no gentle easing into our new environment. We were met at Kuching Airport by
two lads with a cock-ﬁght demonstration, then we were on our longboat waving goodbye.
our genial guide at 9:30 pm, conducted to our hotel, advised that we would go down river
That was basically the end of the Sarawak tour. What would Sabah bring?
to Bako National Park on the next day and that we would be collected from the hotel lobby at 6am. By 6:45am, whilst sitting in a hut by the river waiting for our boat, I had my ﬁrst
We were met at Sandakan Airport and taken straight to the Sepilok Orang Utan
mosquito bite despite having been drenched in some special OFF, having anti-mosquito
Rehabilitation Centre but we only saw a few so on we went to the jetty for our cruise up
patches on my shirt and a high-pitched buzzing contraption dangling round my neck. ‘What
the Kinabatangan River. Now this was more like it. This was a boat with a roof and proper
on earth are we doing?’, I thought.
seats and two 150 hp Yamaha outboard motors at the back. We headed to a lodge at Abai for lunch with choices of chicken, prawns, and ﬁsh plus rice and fruits. Very pleasant it was
The Bako jungle trip was no relaxing stroll. They have many trails. Our very knowledgeable
as well. Then back on our launch to head further up the mighty Kinabatangan to another
guide, formerly a forester, took one look at me and decided we would be best on the
riverside lodge, 61 miles up river from where we had started. Before dusk we investigated a
easiest one, a mere 800 metres long. A bagatelle, I thought to myself. How wrong I was!
small tributary river and saw wild pygmy elephants, monkeys, snakes, lizards and a myriad
Though we started on a relatively ﬂat boardwalk, it soon disintegrated into a rocky, slippery
of birds, some of them startlingly beautiful.
path, with tree roots everywhere, which seemed to be permanently climbing up or sliding down. The guide compassionately decided that we should drop down from the trail to the
On the next day we headed by boat back to Abai, where we had had lunch the day before.
foreshore, where the tide was out, and return on reasonably ﬂat terrain. We saw wild pigs
Akiko and I each planted a tree by the river. When it grows it will be transplanted to a part of
charging around and a troop of long-nosed, pot bellied proboscis monkeys, having their
the rainforest denuded by illegal loggers. The two highlights for me here were taking a night
breakfast. They are comparatively rare. We also spotted a ﬂying lemur trying to disguise
cruise to see the ﬁreﬂies, which are in fact beetles, in the ‘Christmas tree’. Amazing and
itself as part of a tree – presumably because it is nocturnal, a few long tailed macaques, one
beautiful and unlike anything we had ever seen before. The other was the night walk on the
with a baby “on board” and almost at the end, half a dozen or so orang-utans, languorously
(ﬂat!) nature boardwalk with powerful torches to spot all the wild life having its beauty sleep
moving through the trees or just hanging around.
as well as nocturnal creatures getting on with their businesses.
Next morning was a visit to the Semenggoh
By the way; I nearly forgot. We did spot just one man-
Nature Reserve, primarily to see the orang-
eating crocodile. We saw it on our last jungle river day and
utans and we saw plenty. We were advised
it was almost 18 inches long at the most!
not to make eye contact but it was difﬁcult not to do so. They are engaging animals and
Next day we checked in at the luxurious Shangri-La in Dalit
I would have thought that if they attacked
Bay. It really had been a marvellous experience but it was
any people, they probably deserved it. That
lovely to be back to air-conditioning, hot water, flushing
afternoon we boarded the longboat to head
toilets, ice cubes, etc.
up the Lemanak River for 4 hours to stay with an Iban family in a longhouse for the night.
www.brit cha m.co m
We wonder what’s in the auction this year……………….
Introducing the British Chamber’s
Thank you for your continued support
Wine Club Tasting Riedel Room@Q88 at JW Marriott Hong Kong Elegance and style marked the meeting of the British Chamber’s Wine Club on the 13th of April. The Marriott’s Riedel Room@Q88 is undoubtedly one of Hong Kong’s premier wine-sampling locations; decorated with sparkling crystals and subdued LED lights, it lends an exciting air to wine-tasting proceedings. The guests were introduced to a wide range of wines by expert Gregory Brossard, starting with Burgundy Chardonnays including a Grand Cru Henri Boillot Bienvenue Batard Montrachet. The assembly then moved on to the Chinon – a 100% Cabernet Franc from the Loire Valley. Finally, to Australia for the Highbank - a Bordeaux blend from South Australia and ﬁnishing with a beautiful big and bold Aussie Shiraz from Greenock Creek in Barossa Valley.
Britcham Wine Club – The more the merrier! Join: Membership is simply the cost of signing up for 1 case of wine. Each member will select their own mixed case in any combination from our list of 9 premium wines from all over the world. These 12 bottles will then be delivered directly to your home or ofﬁce free of charge within a few days. Perfect to stock up on wine for the summer or to use as gifts! This represents at least 20% off the normal cost, and you are also entitled to a 10% discount on additional wine purchases and Vintec fridges. All members will then be invited to an exclusive tasting event every 3 months, where they can try a new selection of wines and put together another mixed case. It’s a great way to discover new wines while networking with fellow members, and there is no obligation so you can cancel your membership at any time. The Enthusiast (HK$1,888 per quarter) –
for wine tasting beginner who is looking to learn more about different regions.
The Connoisseur (HK$3000 per quarter) – for the experienced drinker who enjoys quality wines from popular vintages. Please email email@example.com or call 2147-2931 to receive the full wine list and make your selections! May 2011 • Vol 26 • No 5
Royal Wedding Celebration On Friday, 29th April 2011 the world watched the marriage of Prince William to Catherine Middleton. Among them were 300 Hong Kong residents who toasted the occasion at a special celebration in the Hong Kong Club. The party, kindly sponsored by HSBC Bank International, was organised by the Chamber in partnership with a number of British organisations including the British Consulate-General, the Royal Geographical Society, the Royal Overseas League and the Royal Commonwealth Society. Ensuring every part of the country was represented, the St. George’s Society, the St. David’s Society and the St. Andrew’s Society were also involved. This very British occasion was marked in apposite style with traditional party fare including cucumber sandwiches, scones, strawberries, and Pimms. The champagne was sponsored by Berry Bros. & Rudd, who are the ofﬁcial suppliers to the royal household. BBC coverage of the event was screened so that guests could follow the event while drinking to the happiness of the couple with old friends and new. After the wedding ceremony, Andrew Seaton asked all present to charge their glasses and toast the happy couple and the Queen.
The Royal Wedding Celebration was sponsored by HSBC Bank International
Several happy Lucky Draw winners were presented with gifts to take home, including a ‘Romance Package’ from TaDa! and two cases of English Ale, kindly donated by Mybrewerytap.com.
Thanks to the following for sponsoring champagne and prizes:
May 2011 • Vol 26 • No 5
MEMBER BENEFITS MEMBER DISCOUNTS To enjoy exclusive member discounts please log onto www.britcham.com, log in and click on membership discounts. If you have forgotten your login details please email firstname.lastname@example.org to request them. Accor
The Mira Hong Kong
AGS Four Winds International Movers Ltd
Renaissance Harbour View Hotel Hong Kong
B&W Group Asia Limited
Berry Bros & Rudd
Le Meridien Cyberport
For up to date event listings and information, check out www.britcham.com
www.brit cha m.co m
NEWS / NEW APPOINTMENTS
PWC’s Cities of Opportunity report places Shanghai ﬁrst among emerging market centres
AirconMiser becomes poster-child of British business in Asia
Shanghai comes in ﬁrst in economic clout among 10 emerging market centres featured in
a showcase example of successful British business in Asia. HKTDC used AirconMiser as
the fourth edition of Cities of Opportunity, released by PwC and the Partnership for New York
an example of bringing British technology and commercial acumen together with all the
City. According to the 26-city study, it also leads the world in foreign direct investment for both
advantages of operating from Hong Kong as a hub for business in Asia.
greenﬁeld and capital invested and contends strongly with global leaders in domestic market capitalisation, ranking ﬁfth — just below London and above Hong Kong.
British Chamber member AirconMiser Limited, the manufacturer and distributor of energy saving devices for air conditioning and cold storage equipment was recently featured as
Executive Director Graham Cottingham reﬂected “With delivered energy savings typically in the range of 40-50% we were the victims of our own success to begin with, as people
The study’s key indicators of economic growth are: intellectual capital and innovation, technology
didn’t believe we could make such a big difference. But now that respected testing
readiness, transportation and infrastructure, demographics and livability, economic clout, cost,
authorities and well known international brands have proved it for themselves and given us
lifestyle assets, health, safety and security, ease of doing business, and ﬁnally, sustainability.
endorsements for our products the enquiries have grown exponentially. The recent HKTDC
Shanghai ties with Toronto in transportation and infrastructure, outperforms London, Singapore and New York in sustainability and ranks in the top four in the visual impact of
coverage has boosted this international awareness of our brand and products and now we have grown to the point of selling in about 50 countries around the world”.
its skyline. New York leads the study, but is followed closely in the top ﬁve by Toronto, San
The revolutionary AirconMiser technology beneﬁts from a worldwide patent that allows
Francisco, Stockholm and Sydney — cities more notable for quality of life and balance than
for other applications too. AirconMiser is currently developing its product range for cold
global business dominance.
storage and mobile applications using the same technology.
The complete report can be found at: www.pwc.com/cities.
Contact Graham.Cottingham@AirconMiser.com or 3752 2664 for further information.
New Jazz Band in Captain’s Bar at Mandarin Oriental, Hong Kong
HSBC sets out Strategy Execution Plan
Captain’s Bar at Mandarin Oriental, Hong Kong is delighted to welcome the Valeria Proaño
Trio as its newest resident jazz band. The band’s vast knowledge of jazz, Brazilian jazz, pop and Latin American styles makes it the perfect match for this vibrant venue. Watch these professionals perform between 18 April and 17 July from 9 pm and 12.45 am Monday to Thursday, and until 1.45 am on Fridays and Saturdays. Valeria Proaño was born in Quito, Ecuador, and moved to Miami to attend Miami Dade College, where she ﬁrst studied classical voice before winning a scholarship to attend the world-renowned jazz programme at the University of Miami. For the past 15 years, Valeria has been performing professionally in jazz clubs, hotels and diverse venues all over the world, and has successfully led her own groups on two European tours. Valeria has also appeared as a back-up singer for Grammy Award winners and world renowned Latin artists
HSBC’s senior leadership and executive management have recently held a series of presentations on their group strategy for investors and analysts at HSBC’s London
This included a description of HSBC’s distinctive position aligned with key trends, its disciplined capital allocation aimed at driving growth priorities, a sustainable cost savings programme of US$2.5-3.5bn to improve efﬁciency, and the group’s focus on maintaining an experienced management team accountable for delivery. Stuart Gulliver, HSBC Group Chief Executive, commented, “Our strategy is to be the leading international bank, concentrating on commercial and wholesale banking in globally connected markets. We will also focus on wealth management in 18 of the most relevant economies and limit retail banking to those markets where we can achieve proﬁtable scale.”
Jose Luis Rodriguez, Paulina Rubio and Miguel Bose.
InterContinental Grand Stanford Hong Kong (ICGS)
Professional services real estate firm Jones Lang LaSalle recently appointed Tina Ting
has recently announced the appointment of Martin
as Director of International Residential Property Services. Utilising her years of successful
Schaumburg as Director of Food and Beverage. Martin
residential sales, Ms Ting is responsible for growing the ﬁrm’s international luxury residential
brings with him more than 11 years of experience in the
sales business, managing overseas property sales launches and representing clients in
marketing their projects throughout Asia. Ms Ting joined Jones Lang LaSalle on 1 April 2011.
Martin started his career in 1990 and worked in a number
With over 20 years in the industry, Ms Ting brings with her a wealth of international
of prestigious luxury hotels throughout Europe and Asia,
property experience in sales and marketing overseas projects locally. Prior to joining
such as Hotel Nassauer Hof in Wiesbaden, Germany,
Jones Lang LaSalle she spent over 15 years with another real estate service ﬁrm in
Claridge’s in London and Westin in South Korea. He joined
Hong Kong where she led the international sales team and worked closely with the
Kempinski Hotels Group in China in 2004, where he participated in the hotel openings
company's London office and other branches. Ms Ting
as Executive Chef that brought him from Shenyang to Shenzhen. With his impressive
has a strong track record handling prominent overseas
background and signiﬁcant contribution to his role, he switched from Culinary to Food
residential sales projects including Neo Bankside,
and Beverage department in 2008.
Wellington House, Bramah House, One Hyde Park,
Prior to joining ICGS, Martin was part of the pre-opening team as Executive Assistant Manager for Kempinski Hotel Huizhou in charge of Food and Beverage department, and worked on task-force assignments at hotel pre-openings and openings in Sanya and Yinchuan.
The Knightsbridge, The Phillimores and The Stadium. In addition to her sales experience in marketing luxury residential properties in London, Ms Ting has experience in sales of overseas residential property developments in China, Australia, Thailand and the USA.
Tina Ting May 2011 • Vol 26 • No 5
NEW MEMBERS Chairs of Specialist Committees Business Policy Unit Tim Peirson-Smith Executive Counsel China Committee David Watt DTZ Construction Industry Group Derek Smyth Gammon Construction
ADDITIONAL Aedas Limited
Paciﬁc Basin Shipping (HK) Limited
Hong Kong Sotheby’s International
Head of Communications - Asia
General Manager, Corporate Affairs
31/F, One Island East
7/F, Hutchison House
18 Westlands Road, Quarry Bay
10 Harcourt Road, Central, Hong Kong
Suite 2001, Three Paciﬁc Place
1 Queen’s Road East, Hong Kong
Architecture/Interior & Urban Design
Property / Real Estate Services PricewaterhouseCoopers
Chartis Insurance Hong Kong Limited
Senior Manager - Assurance
Education Committee Stephen Eno Baker & McKenzie
AVP - Head of Broker Relations
Lloyds TSB Bank plc, Lloyds TSB
22/F, Prince's Building, Chater Road
Environment Committee Anne Kerr Mott MacDonald Hong Kong Limited
46/F One Island East, 18 Westland
Central, Hong Kong
Road, Quarry Bay, Hong Kong
Business Development Manager
Financial Services Interest Group Debbie Annells Azure Tax Consulting HR Advisory Group Brian Renwick Boyden Search Global Executive
2524 1723 2524 1723
Sir Elly Kadoorie & Sons Ltd
Chartis Insurance Hong Kong Limited
805-806, 8/F, Man Yee Building
68 Des Voeux Road, Central, Hong Kong
24/F, St George’s Building
2 Ice House Street, Central, Hong Kong
46/F One Island East, 18 Westland Road
Quarry Bay, Hong Kong Insurance
ICT IT Committee Craig Armstrong Standard Chartered
Sovereign Trust (Hong Kong) Ltd
Chartis Insurance Hong Kong Limited
Marketing & Communications Committee Adam O’Conor Ogilvy & Mather Group
Flat 1A, Beach Pointe
Suites 1601-1603, Kinwick Centre
16 Stanley Beach Road, Stanley
32 Hollywood Road, Central, Hong Kong
46/F One Island East, 18 Westland Road
Real Estate Committee Jeremy Sheldon Jones Lang LaSalle
Quarry Bay, Hong Kong
Scottish Business Group Dr. Jim Walker Asianomics Limited Logistics Committee Mark Millar M Power Associates Small & Medium Enterprises Committee Kate Kelly Women in Business Committee Lisa Bowman DG3 Asia Limited YNetwork Committee Fiona Foxon Business Angel Programme Neil Orvay Asia Spa & Wellness Limited Tim Hay-Edie Pilot Simple Software
Citigroup Global Markets Asia Limited
Business Development Manager
Fleur De Koning
6/F, Hong Kong Jockey Club,
1 Sports Road, Happy Valley, Hong Kong
Suites 1601-1603, Kinwick Centre
46/F, Citibank Tower, 3 Garden Road
32 Hollywood Road, Central, Hong Kong
Central, Hong Kong
Enecore Carbon International Limited
English Schools Foundation
Chief Operating Ofﬁcer
Unit 8, Level 3, Three Paciﬁc Place
Suite 2005-7, 20/F, Gloucester Tower
1 Queen’s Road East, Hong Kong
25/F, Fortis Centre, 1063 Kings Road
The Landmark, Central, Hong Kong
Quarry Bay, Hong Kong
Lloyd & Limited Withers
The Oval Partnership Ltd
Business Development Manager
Suite 2005-7, 20/F, Gloucester Tower
1902-03, Chinachem Hollywood Centre
The Landmark, Central, Hong Kong
1 Hollywood Road, Central, Hong Kong
14/F, Malaysia Building
Architecture/Interior & Urban Design www.brit cha m.co m
Michael Moir Sovereign Trust (Hong Kong) Ltd
50 Gloucester Road, Wanchai, Hong Kong
Shaken Not Stirred March 2011 The Quarterdeck Club G/F, 1 Lung King Street, The Fleet Arcade Fenwick Pier, Wanchai, Hong Kong Stuart Northrop (Widnell Sweett), Ben Lester (Elite Capital Solutions)
Wendy Lam (The Executive Centre), Roger Thompson (PricewaterhouseCoopers)
Ally Lung (Civil Aviation Department), Hody Lai (The Executive Centre), Roger Wu (Purcell Miller Tritton), Kenneth Sham (Hudson)
Lucy Jenkins (The British Chamber of Commerce in Hong Kong), Lilian Chan (American Express), Amine Loukia (AGS Four Winds)
Suzanne Wasson, Richard Bracken (Consulate General of the United States)
Hody Lai (The Executive Centre), Antony Eden (Ernest Maude), Andy McBride (Al Masaoud & Sons) Helena Wong (Executive Homes), Maureen Mills (Executive Homes)
Steven Resco (Widnell Sweett), Jason Wong (EHM)
Amine Loukia (AGS Four Winds), Eleanor Stormonth (ANZ)
Becky Roberts (The British Chamber of Commerce in Hong Kong), Liz Hamerton (Strategic Ofﬁce Solutions), Lucy Jenkins (The British Chamber of Commerce in Hong Kong)
May 2011 • Vol 26 • No 5