Asia Outlook - Issue 41 by Outlook Publishing

w w w. a s i a o u t l o o k m a g . c o m

Issue 41

FUJITSU A Q&A with Mike Foster, Australia & New Zealand CEO

Maritime

MARIANA ISLANDS

Abound with nature and WW2 history

Marvel SIPA is charting the Solomon Islandsâ€™ progressive, transformative maritime course, its two key ports now standing as crucial pillars of the national economy

Rugby World Cup 2019: How Japan is set to gain an economic boost from the six-week showcase

A complete guide to Asia’s leading business travel destinations

NORTHERN MARIANA ISLANDS

BUSINESS TRAVEL GUIDE

SE E PAGE

30 NORTHERN MARIANA ISLANDS

Abound with nature and WW2 history

escribed as an easy warm-weather escape northeast of Guam by Visit The USA, the Northern Mariana Islands are a dazzling group of 15 landmasses in the Philippine Sea. Now ran as US Commonwealth (with Donald Trump technically the destination’s Head of State), the Marianas are part of a chain of volcanic mountain peaks and uplifted coral reefs, making for spectacular scenery both above and below sea level. Although there are 15 islands, only six are inhabited, the three major population centres being Saipan (the capital city), Tinian and Rota. The island of

48 | Asia Outlook issue 41

A small group of islands sat thousands of miles away from its administrative home in the US, the Marianas offer a warm-weather escape with plenty of nature and history to explore Writer: Tom Wadlow Project Manager:Matt Cole-Wilkin Pagan was inhabited until 1981, when a severe volcanic eruption forced the evacuation of its residents.

Besides Guam, the Northern Mariana Islands’ nearest neighbours are the Bonin Islands to the north and the Federated States of Micronesia to the south. As well as picturesque scenery, pristine beaches and charming local hosts, consistent yearly temperatures ranging between 26 and 28 degrees Celsius make for a comfortable stay all year round, although the southern islands are prone to heavy rainfall. Those interested in history will also not leave disappointed, with many preserved Second World War buildings and outposts in easy reach.

RENT ER

A ISL ND

Outlook Recommends

•C AR •A

NORTHERN MARIANA ISLANDS

BUSINESS TRAVEL GUIDE

Serving The Marianas & Guam for 35 years. A ride with us is a PLUS

“Once you’re on the islands of this U.S. commonwealth, the only difficult decision you’ll have to make is whether to sunbathe on a beautiful beach, try your luck at a casino, play golf with dazzling views of the Philippine Sea or go scuba diving in a World War II shipwreck” – Visit The USA

OUTD OOR ACTI V I TI ES

ACCOMMODATI ON

FOOD AND D RI NK

Kensington Hotel Saipain Zen Teppanyaki Restaurant Saipan

Branches: Saipan, Tinian, Rota, Guam Hotline: 670 234-8233 | Email: islander@pticom.com

www.islanderrentacar.com

Country House Restaurant Himawari Hotel

Giovanni’s Umibouzu

Skydive Saipan Starting at $299, Skydive Saipan offers the chance to freefall over the beautiful Mariana Islands from 14,000 feet, its highly experienced instructors ensuring a safe experience that you will never forget. Available to people aged 18 to 65, the experience will involve around a minute’s freefall and five minutes of peaceful flying once the parachute is deployed at 5,500 feet.

TRAV EL

This new hotel was introduced in June 2006. Garapan located in the central district of Saipan , within walking distance of shopping and the beach, restaurants to the city, is very convenient. Garapan district located in a residential area, the eastern part of the most quiet, good security.

Holiday Saipan Hotel Rent-a-car Asia Outlook issue 41 | Islander 49

Marianas Trekking Green Flash Dive

HIMAWARI HOTEL / RESTAURANT STORE / BAKERY The hotel is located in Saipan, Northern Mariana Islands.

Star Marianas Air Hyatt Regency Saipan

Hertz

Phone: +1 (670) 233-1530 Email : hotel@himawari-saipan.com

himawari-saipan.com

Tel 1(670) 233-3337/8 master@holidaysaipan.com www.holidaysaipn.com

56 | Asia Outlook issue 41

Asia Outlook issue 41 | 57

Our Business Travel section not only gives executives the complete guide to the world’s most popular and populous locations, but also gives said locations the perfect opportunity to showcase their own businesses, events, venues and services to a truly international audience and readership of more than 220,000 each month. To share in this unrivalled exposure and to put your own offering on our map, then please contact our Sales Managers, Joe Palliser, Jordan Levey or Matt Cole-Wilkin to find out more.

BusinessTravel Guides www.asiaoutlookmag.com/business-travel-guides

WELCOME

Sailing South

EDITORIAL Editorial Director: Tom Wadlow tom.wadlow@outlookpublishing.com Deputy Editor: Jonathan Dyble jonathan.dyble@outlookpublishing.com

PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com Senior Designer: Devon Collins devon.collins@outlookpublishing.com

Its nations are scattered throughout enormous swathes of ocean, and ports serve as equally if not more important transportation hubs than airports.

Junior Designer: Matt Loudwell matt.loudwell@outlookpublishing.com BUSINESS Managing Director: Ben Weaver ben.weaver@outlookpublishing.com Sales Director: Nick Norris nick.norris@outlookpublishing.com Operations Director: James Mitchell james.mitchell@outlookpublishing.com PROJECT DIRECTORS Joshua Mann joshua.mann@outlookpublishing.com Tom Cullum tom.cullum@outlookpublishing.com HEAD OF PROJECTS Callam Waller callam.waller@outlookpublishing.com Thomas Arnold thomas.arnold@outlookpublishing.com TRAINING & DEVELOPMENT DIRECTOR Eddie Clinton eddie.clinton@outlookpublishing.com SALES MANAGER Donovan Smith donovan.smith@outlookpublishing.com PROJECT MANAGERS Josh Hyland josh.hyland@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com Sam Love sam.love@outlookpublishing.com BUSINESS TRAVEL Director: Joe Palliser joe.palliser@outlookpublishing.com Sales Manager: Jordan Levey jordan.levey@outlookpublishing.com Sales Manager: Krisha Canlas krisha.canlas@outlookpublishing.com Sales Manager: Matt Cole-Wilkin matt.cole-wilkin@outlookpublishing.com

ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Finance Manager: Sophia Curran sophia.curran@outlookpublishing.com Office Manager: Daniel George daniel.george@outlookpublishing.com CONTACT Asia Outlook East Wing, Ground Floor, 69-75 Thorpe Road, Norwich, Norfolk, NR1 1UA, United Kingdom. Sales: +44 (0) 1603 959 652 Editorial: +44 (0) 1603 959 657 SUBSCRIPTIONS Tel: +44 (0) 1603 959 657 Email: tom.wadlow@outlookpublishing.com www.asiaoutlookmag.com Like us on Facebook: facebook.com/asiaoutlook Follow us on Twitter: @Asia_outlook

hipping has been a vital mode of transport for both people and goods in and out of the South Pacific region for centuries.

With this in mind, this month’s cover story features an exclusive interview with Eranda Kotelawala, CEO of Solomon Islands Ports Authority. Established in 1956, it is mandated to maintain and improve key port infrastructure, its vision being to develop and promote Solomon Islands to become the premier hub for port and maritime activities in the South Pacific. Southwest of the Solomon Islands, in Australia, global tech giant Fujitsu is working on a landmark project that will see it replace Australia’s fastest supercomputer. “Australian research has played a part in a number of world firsts, including the bionic ear, lithium medical treatment, ultrasounds, the black box flight recorder and penicillin-based antibiotics,” details Mike Foster, CEO of the company’s Australia and New Zealand business. “With the award of the contract to supply the replacement for Australia’s fastest supercomputer, Fujitsu is playing a part in keeping Australia at the forefront of the world’s research community as it helps to solve complex and pressing global challenges. We are proud to be able to help assist Australian researchers and provide them with the tools to unlock the challenges of society, the mysteries of the universe, and advancements in medical research.” The new supercomputer, named Gadi, will deliver some frightening computing power – find out more in our exclusive Q&A. We also cannot publish this issue without looking at the Rugby World Cup, underway in Japan at the time of writing. A huge event for the country, we present some facts and figures which reveal just how big an impact this sporting celebration is expected to make. Other business success stories this issue cover a range of industries, from fitness and retail to energy and mining, along with some stunning construction project showcases. Finally, be sure to check out our travel guides this issue, starting off on the beautiful Indonesian island of Bali, a destination that is certainly in fashion and growing in prominence, as demonstrated by 2018’s arrival figures which show a 10 percent increase in 2017. We also explore the best of Sri Lanka as well as the Northern Mariana Islands, a remote pacific destination full of natural splendour and World War II relics. You will also notice that our cover story and other articles are presented with an updated design, a refined and refreshed look that further helps to bring our business success stories to life. Enjoy the issue! Tom Wadlow Editorial Director, Outlook Publishing Asia Outlook issue 41 | 3

CONTENTS

18 REGULARS

6 NEWS

10 14

196 CeMAT Asia

8 EXPERT EYE

Celebrating 20 years of logistics industry gatherings

Mastercard on dealing with the complexity of data protection

SECTOR FOCUS

10 Technology

Supercharging Australian Innovation A Q&A with Mike Foster, CEO of Fujitsu Australia & New Zealand

14 Economy

Investing in Vietnam Analysing Vietnam’s international integration and the associated opportunities

TOPICAL FOCUS

16 Rugby World Cup

Rugby’s $1.8bn Bonanza How Japan is set to gain an economic boost from the Rugby World Cup

BUSINESS TRAVEL GUIDES

18 Bali 5,780 square kilometres of paradise

30 Northern Mariana Islands Abound with nature and WW2 history

42 Sri Lanka

42 4 | Asia Outlook issue 41

EVENT FOCUS

Around Asia in seven stories

A small island nation packed with cultural, culinary and natural phenomena

52 American Samoa An unspoiled Polynesian paradise

198 PTC ASIA A global stage for Chinese manufacturing stakeholders

200 Global Compact Network Singapore Summit A platform to share sustainability best practice

202 The Real Estate Development Summit – Asia Addressing the challenges faced by Asia’s real estate industry

204 The International Air Rail Transport Summit – Bangkok Exploring the opportunities facing the future of infrastructur

206 Real Estate Finance, Investment Analysis, Valuation & Modelling A vital learning programme for real estate professionals

208 Insurtech Insights Hong Kong 2019 The largest insurtech conference in Asia

210 THE FINAL WORD What is the biggest challenge facing your industry at present?

ASIA OUTLOOK MAGAZINE

F E AT U R E S

64 SHOWCASING LEADING COMPANIES

ENERGY & UTILITIES

Tell us your story and we’ll tell the world

Singapore’s Leading Light

172 Sunseap Group

Spearheading sustainable change through solar

SUPPLY CHAIN

66 Solomon Islands Ports Authority Maritime Marvel

Charting the Solomon Islands’ progressive, transformative maritime course

78 Kit Loong Commercial Tyre Group

Keeping the Wheels in Motion Helping companies across Malaysia to remain on track

88 Inchcape Shipping Services

Global, Local, Transparent Leveraging technology to provide international transparency in the shipping industry

OIL & GAS

98 CR Asia Group

A Multi-Disciplined Maintenance Mastermind Uplifting industry, people and communities alike

112 Rutledge Group Safety First

Innovating and uplifting the profile of HSE practices

118 MINING

180 Maoneng

Solar Splendour Helping to spearhead the global energy revolution

118 Bayan Airag Exploration

MANUFACTURING

Striking gold (and silver) for socioeconomic benefit in Zavkhan province

The Lean Machinist

Mongolia’s Responsible Miner

126 Gekko Systems Modernising Mining

Upholding the digital upheaval of a global industry

RETAIL

132 Goodhill Enterprise

186 Matrix Composites & Engineering Exporting Australian-made advanced materials the world over

FINANCE

192 RKH Specialty

The Knowledge Broker Expertise-based insurance like no other in Asia Pacific

Distribution Dynamo

Growing side by side with Cambodia

144 Anytime Fitness Asia Changing Lives

ringing health and fitness to the B doorsteps of Asian communities

150 Super Value Stores

nhancing Quality, Expanding E Quantity roviding PNG with better products at P better prices

CONSTRUCTION

154 Meinhardt Singapore Singapore’s Shapeshifter

112

Operating at the heart of urban development

126

160 Hornibrook NGI

Driven by Development Catalysing PNG’s economy through diversified construction

166 VIVABLAST

Preserving Industry, Empowering People Fusing Asian culture and values with western techniques

166

144 Asia Outlook issue 41 | 5

NEWS Around Asia in seven stories… G OV E R N M E N T

Record numbers to contest Sri Lankan presidential election

OYO SECURES $1.5 BILLION FUNDING FROM EXISTING INVESTORS INDIAN HOTEL company OYO has announced the securing of $1.5 billion of investment. Sourced through existing shareholders, the sum includes $700 million from Founder Ritesh Agarwal, who wants to use the money to expand in the US and Europe. OYO now operates in more than 80 countries, one of its most signif-

icant markets being China, where it recently became the number one hotel brand. According to Agarwal, China and India between them account for two thirds of the company’s revenue, its model based around partnering with independent hotels to offer a polished brand and consistent, quality offering.

FINANCE

Malaysia’s Khazanah targets $1.2 billion 2019 profit M A L AYSI A’S SOV E R E I G N wealth fund Khazanah Nasional Bhd has revealed it is on course to make pre-tax profits of $1.2 billion this year. Shahril Ridza Ridzuan, Khazanah’s Managing Director, said that the fund 6 | Asia Outlook issue 41

Sajith Premadasa

is also on course to achieve its debt cutting target in 2019. It represents a sound recovery on the previous 12 months, as last year saw it make its first loss in a decade, triggered by high impairments and lower dividend income. Khazanah owns majority stakes in several Malaysian state enterprises, including Tenaga Nasional Bhd, CIMB Group Holdings Bhd, Malaysia Airports Holdings Bhd and Telekom Malaysia Bhd.

PHOTO BY ANURADHA DULLEWE WIJEYERATNE

H O S P I TA L I T Y

AS S R I L A N KA’ S next presidential election looms, it has emerged that a record number of candidates will be taking part. Set for November 16, almost twice as many people are running this year (35) as did in the last poll back in 2015. Two early frontrunners appear to be current housing minister Sajith Premadasa of the United National Party and Gotabaya Rajapaksa of the opposition party Sri Lanka Podujana Peramuna. Following a series of suicide bombings in April, security is likely to be a crucial topic in this upcoming election, with current President Maithripala Sirisena deciding not to seek re-election.

R E A L E S TAT E

TECHNOLOGY

PropertyGuru eyes IPO on Australian Securities Exchange REAL E STATE classifieds company PropertyGuru is looking to raise around $256 million though an initial public offering on the Australian Securities Exchange. It values the company at between $0.67 billion and $0.8 billion, with around 30 percent of shares set to be sold. Current backers include private equity firm TPG and global investment company KKR, the retail offer ENERGY & UTILITIES

JERA Co acquires 22 percent stake in Summit Power BANGLADESH-BASED ENERGY company Summit Power has sold 22 percent of its shares to JERA Co, a joint venture between Japan’s Tokyo Electric Power and Chubu Electric Power Co. Listed in Singapore, Summit is on track to invest $3 billion in Bangla-

HUAWEI PARTNERS MAXIS FOR MALAYSIA 5G ROLLOUT

expected to open on October 16 and close on October 22. The final price will be announced to the market on October 24.

desh’s power sector by 2022, the country currently able to produce around 18,000 MW of electricity a day, according to junior power minister Nasrul Hamid, who told Reuters that foreign investment is critical in realising its ambitions. JERA said in a statement: “By capitalising on the strong business foundation established through JERA’s investment in Summit Power... JERA will strive to explore business opportunities in the country and further expand its earnings base.”

C H I N E S E TE LCO giant Huawei will team up with Malaysian firm Maxis to roll out 5G across the Southeast Asian nation. Maxis is Malaysia’s second largest mobile network company, and the country’s government is intent on establishing the necessary 5G infrastructure by as early as Q1 2020. In February 2019, the two companies signed an agreement to cooperate in 5G trials, with Huawei set to supply 4G or LTE and 5G radio equipment and services under this latest deal. If the deployment happens in line with the government’s targets, Malaysia could become the first nation in Asia to launch 5G. CONSTRUCTION

LENDLEASE SELLS TWO SYDNEY LANDMARKS FOR $74 MILLION AU STR A L I A N MU LTI N ATI O N A L construction, property and infrastructure company Lendlease has sold two Sydney buildings for a combined $74 million. Barangaroo House, on Barangaroo South’s waterfront, was bought by a private investor for around $27 million. The second landmark building is The Exchange at Darling Square, dubbed the Bird’s Nest for its spiralling façade, was sold to a Chinese investor based in Australia for around $47 million. Last month the company made a major leadership appointment, with Neil Martin assuming the role of Chief Executive Officer for its European business, a division which is working on important UK rail projects such as the revamp of Euston station in London. Asia Outlook issue 41 | 7

EXPERT EYE

Dealing with the complexity of data protection In an increasingly digital and joined up Asia, there are several steps that lawmakers and organisations should take to strike the right data privacy balance. Mastercard’s Derek Ho explains Written by: Derek Ho, Assistant General Counsel, Privacy and Data Protection, Law, Franchise and Integrity (LFI) for Mastercard Europe, Asia Pacific and Middle East Africa

ata protection regulavarious cultures, histories, tions are not new in Asia. governments and levels of ABOUT THE EXPERT It has been over three economic development Derek Ho is a Singapore qualified decades since Australia influence the evolution lawyer and specialises in privacy introduced its Privacy Act in of privacy norms and the and data protection, technology 1988, and more than two since degree to which there and telecommunications law. Prior New Zealand and Hong Kong are differences across the to Mastercard, he held senior legal SAR brought in their data region. positions in multinational compaprotection legislation. Since While the arising comnies in the Asia Pacific region, and was part of Drew then, numerous countries in plexity is little surprise then, & Napier LLC’s telecommunications, media and techAsia such as the Philippines, dealing with this growing nology practice in Singapore. He is also a Vice-PresMalaysia and Singapore have array of regulations is not ident of AsiaDPO which is a registered society of implemented such laws, while easy, particularly for micro, data protection officers focused on developing and others including China, India small and medium sized advancing practices in data protection and serving and Indonesia are working on enterprises (MSMEs) that as a trusted resource of industry expertise. new legislation, or re-evaluatoperate in the digital space ing their existing frameworks. and wish to expand the deWhile the principles that unlivery of their digital goods nology challenges for organisations derpin such data protection laws are and services to consumers across typically consistent with each other, trying to implement policies and promultiple countries. cesses across multiple countries. the breadth and depth of such legisOne reason for all of this complexlation varies across the region. These More consistency is needed differences can range from basic ity is the speed at which the world Convergence of data protection laws fundamental concepts – like the scope is going digital. As organisations in Asia is perhaps a bridge too far. That of personal data or even the existence compete to obtain more data about said, I believe that there is a foundaof a separate category of sensitive their customers, concerns around the tion upon which more consistency unauthorised use of or access to data personal data – to the list of situations in data protection laws can be built (or legal basis) in which you can legally have also grown. to facilitate the ease of cross-border use personal data. Standards relating However, the protection of data and commerce. to consent also differ from country to individuals’ privacy may not be the For example, at the level of genercountry, with South Korea imposing sole motivation. In some instances, al principles, there is already some requirements that are arguably stricter there can also exist a parallel objecoverlap in data protection laws in the than those under the European Gener- tive to establish a safe and trusted region. A number of countries have al Data Protection Regulation. environment for companies to create adapted principles that originated in As a result, companies operating in high value data processing or analytics the OECD Guidelines on the Protecthe region have to navigate a comfunctions, or to enable the innovation of Privacy and Transborder Flows tive use of data by local industry to plex and ever-changing array of data of Personal Data. So, there already protection regulations and standards, benefit national economies and their exists a common vernacular at the which poses operational and techcitizens. Further within Asia, the level of general principles such as 8 | Asia Outlook issue 41

transparency and openness, collection limitation and accountability. Additionally, some regions are coming together to discuss and identify common approaches to data protection. ASEAN is a good example of this with its Framework on Personal Data Protection and its more recent Framework on Digital Data Governance. On a wider scale there is the APEC Privacy Framework and the APEC Cross-Border Privacy Rules (CBPR) System and Privacy Recognition for Processors (PRP) System. While promising, ensuring consistency between such regional and sub-regional frameworks will be necessary to avoid adding more layers of complexity. Finally, efforts – like the Data Privacy Project undertaken by the Asian Business Law Institute – in identifying areas of difference and commonality and potential paths to bring about more consistency around cross-border data transfers should be encouraged as they introduce an additional analytical layer to the conversation. Importantly, these efforts do not

deny the reality that differences will always exist between countries’ legal instruments (as in any other field of law). Instead, the important theme here is the need to establish more shared perspectives with a view towards protecting data and individuals’ privacy, as well as supporting trusted transborder flows of people, goods and services (and the underlying data) between countries.

Accountability as an organisational response While organisations wait for the above-mentioned efforts to bear fruit, the key question facing them is this: What can they do now to both comply with a diverse set of laws while still enabling innovation? One practical solution is to institute an accountability-based approach to privacy and data protection. At its core, accountability means being responsible for implementing data protection requirements and being able to demonstrate that implementation. This is typically done through the

adoption of a comprehensive privacy programme that includes a number of elements such as governance structures and oversight, risk assessments, policies and procedures, transparency, training and monitoring and audits. Through this framework and these tools, an organisation can assess the benefits and risks of a particular use of data, and take the necessary steps to address concerns and mitigate risks by implementing controls or measures (e.g. de-identification or tokenisation). This is a deliberate and thoughtful approach that seeks to ensure compliance with legal requirements and protection for individuals’ privacy and data, while still enabling beneficial uses of data. Adopting accountability also aligns with more recently developed regulatory frameworks. For example, the draft India data protection bill explicitly mentions accountability as a data protection obligation. The privacy regulators in Singapore, Hong Kong SAR and Australia have also introduced regulatory guidance for privacy management programmes which incorporate the various elements of accountability. Once an organisation puts these accountability practices in place, they can consider the additional step of voluntarily certifying compliance with a set of accountability-based standards. This could take the shape of trustmarks or certifications like the Singapore Data Protection Trustmark, or the APEC CBPR and PRP certifications. Ultimately, achieving a measure of success in bringing about more consistency between the various laws in Asia will demand a collective effort. It will require a willingness to engage in dialogue and openness to establishing areas of mutual benefit and interest, instead of focusing on differences. And for organisations, it will require building hard-earned trust through demonstrated accountability. None of this will be simple; but in the words of Theodore Roosevelt, nothing worth having comes easy. Asia Outlook issue 41 | 9

FUJITSU AUSTRALIA & NEW ZEALAND

10 | Asia Outlook issue 41

TECHNOLOGY

Supercharging Australian Innovation Fujitsu Australia & New Zealand CEO Mike Foster discusses the company’s latest project to replace Australia’s fastest supercomputer in Canberra Writer: Tom Wadlow

xactly when the first computer was invented is still a matter of debate today. Some point to the ENIAC machine created by J. Presper Eckert and John Mauchly at the University of Pennsylvania in 1943, a project which took three years and produced a goliath covering 1,800 square feet and weighing almost 50 tonnes. It is generally accepted that the word super was first applied to computers in 1964, when Seymour Cray designed the Control Data Corporation (CDC) 6600. It was extraordinary for its time, its top speed of 40 MHz leaving the previous fastest computer at the time (the IBM 7030 Stretch) trailing in its wake. However, by today’s standards it is painfully slow. An ever competitive and evolving race, the fastest supercomputer as of November 2018 is the US Department of Energy’s machine named Summit,

with a power efficiency of 14.668 GFlops/watt. In Australia, the Fujitsu-commissioned Raijin holds the title of fastest supercomputer in the country. Located in Canberra, the company is now fully invested in producing its leaner and faster successor, Gadi. We caught up with Mike Foster, CEO of Fujitsu Australia & New Zealand, to find out more about the project and what it means for the organisation. Asia Outlook (AsO): A bit about yourself to start with. What inspired your passion in technology? Mike Foster (MF): I was appointed the CEO of Fujitsu Australia and New Zealand in 2011, and am proud to have maintained a strategy of providing innovation and market leadership across our key areas of business. I am proud to lead a customer-focussed organisation across the Oceania region, and to have made significant investment over Asia Outlook issue 41 | 11

FUJITSU AUSTRALIA & NEW ZEALAND

“FOR A REAL-WORLD EXAMPLE, IF YOU PROVIDED EVERY PERSON IN EARTH (7.53 BILLION) WITH THE SAME DESK CALCULATOR, THEN THEY WOULD TAKE ABOUT A MONTH (31 DAYS) TO COLLECTIVELY PERFORM THE SAME NUMBER OF CALCULATIONS THAT GADI WILL PERFORM IN ONE SECOND”

Gadi will be 10 times more powerful than Raijin (its predecessor), which is currently rated as Australia’s fastest supercomputer

the last eight years to encourage strategic investment and growth in the region. Prior to joining Fujitsu, my career has spanned over 25 years within the ICT industry both in Australia and North America. My IT career started as a trainee in the IT industry and it was here that my passion for IT spawned. This passion continued as I progressed into senior business management and executive management roles. While I am always interested in new developments in technology, to me it is more important to consider how technology impacts people. This is well aligned with Fujitsu’s vision of Human Centric Innovation, in which any technology solution is designed for the benefit of humans first. 12 | Asia Outlook issue 41

AsO: How exciting a project is the new Australian supercomputer for Fujitsu? MF: Australian research has played a part in a number of world firsts, including the bionic ear, lithium medical treatment, ultrasounds, the black box flight recorder and penicillin-based

antibiotics. With the award of the contract to supply the replacement for Australia’s fastest supercomputer, Fujitsu is playing a part in keeping Australia at the forefront of the world’s research community as it helps to solve complex and pressing global challenges. We are proud to be able to help assist Australian researchers and provide them with the tools to unlock the challenges of society, the mysteries of the universe, and advancements in medical research. Winning the opportunity to lead this important project is particularly satisfying for Fujitsu as it helps us to continue our long-standing involvement with the National Computational Infrastructure (NCI), based at The Australian National University (ANU). Fujitsu commissioned the current

TECHNOLOGY ‘Raijin’ supercomputer in 2013 and we also supplied one of the University’s earliest supercomputers in the 1980s. AsO: Why has it been named Gadi? MF: The new supercomputer has been named by NCI as Gadi, meaning ‘to search for’ in the language of the traditional owners of the Canberra region, the Ngunnawal people. For Fujitsu, the use of an Aboriginal name is particularly significant as we have recently restated our support for indigenous communities through Fujitsu’s Reconciliation Action Plan (RAP), which was launched in 2018. AsO: Tell us about some of Gadi’s main features. What enhancements have been made on its predecessor from 2012? MF: To ensure the best outcome for NCI, Fujitsu has assembled a solution based on its own technology in conjunction with technology sourced from a number of vendors including Lenovo, Intel, NVIDIA, NetApp, Mellanox Technologies, DDN (Lustre), Altair and APC by Schneider Electric. This robust and industry leading technology approach is intended to sustain the needs of Australian research for years to come. The new supercomputer will utilise innovative direct liquid cooling technologies with warm water, allowing for high-density computing. With 3,200 nodes, Gadi will power some of Australia’s most crucial research, seeking to solve some of the most complex and pressing challenges facing the world currently. Researchers from organisations including the CSIRO, Geosciences Australia, and the Bureau of Meteorology will benefit from faster speeds and higher capacity compared to the existing supercomputer. AsO: Can you tell us about Gadi in laymen’s terms – what does 3,200 nodes and the other hardware convert to in terms of power? MF: When commissioned, we antic-

ipate that the new supercomputer will be up to 10 times more powerful than Raijin when it was commissioned, which is currently rated as Australia’s fastest supercomputer. For a real-world example, if you provided every person in earth (7.53 billion) with the same desk calculator, then they would take about a month (31 days) to collectively perform the same number of calculations that Gadi will perform in one second. AsO: What benefits will this bring to researchers at Canberra (and the country more widely)? MF: Gadi will help to power some of the nation’s most critical research, and will be utilised by over five thousand researchers from organisations including CSIRO, Geoscience Australia and the Bureau of Meteorology as well as universities and medical research organisations. Not only will it help

researchers to access information at faster speeds and higher capacity, but it will help them to use their data more effectively. AsO: How has Fujitsu collaborated with other companies on the project, and how important is such collaboration generally in terms of dealing with national/global challenges? MF: Fujitsu is proud to have collabo-

rated closely with NCI and ANU both in 2012 for the development of Raijin and now again in 2019 for the launch of Gadi in November. NCI is the nation’s most highly integrated, high performance research computing environment based at ANU. It plays a pivotal role in the national research landscape, and the delivery of the supercomputer by Fujitsu will continue to be at the centre of this critical work for Australia. In designing the new supercomputer, Fujitsu has utilised the best available technology from a number of vendors to ensure the best long-term value for NCI. AsO: Are you already looking ahead to the next generation of supercomputer? How powerful do you think they can become? MF: Having spent the last 30 years in the ICT industry I know that things

never stay the same, and that there will always be new technology that supersedes the best we have at any given time. We will continue to work closely with NCI to help ensure that Gadi plays a vital role in supporting Australian research, and we will continue to provide NCI with the benefit our extensive research and knowledge in the area of high-performance computing. Asia Outlook issue 41 | 13

ASIA HOUSE

INVESTING IN VIETNAM From technology to infrastructure and everywhere in between, there are an abundance of investment opportunities for international companies looking at Vietnam. Asia House’s Charlie Humphreys sets the scene Written by: Jonathan Dyble

he year is 1985 and Vietnam is one of the poorest countries in the world. The country had been left in a state of disrepair after the end of the 20-year Vietnam war, and the subsequent centralised five-year plans implemented by the Vietnam Communist Party were doing little to steer the country into a new prosperous era, with GDP per capita estimated at between $200 and $300. Blink, and it’s 2019. Vietnam is now one of the stars of the emerging markets show, with export revenues driving a GDP of $241.3 billion, equating to $2,525 per capita – a 10-fold growth in the past quarter century. Needless to say, this rapid economic development has been unprecedent14 | Asia Outlook issue 41

ed; something of a miracle. Described by the World Bank as one of the most dynamic emerging countries in the East Asia region, its shift from a centrally planned economy to a market economy has transformed Vietnam into a thriving lower-middle income nation. Now a transparent business environment that is home to an annual GDP growth rate forecast at 6.8 percent and progressive, internationalist policies, its future looks extremely bright. “Vietnam is an incredibly interesting country,” Charlie Humphreys, Director of Corporate Affairs at Asia House, affirms. “You can really feel the buzz of entrepreneurial spirit. There’s a growing

understanding of the international markets, making it easier for people from all walks of life to engage with the country for both business and pleasure. It’s vibrant, with a large population and an ideal location nestled on the edge of ASEAN and looking our across the Pacific.” Asia House is a London-based organisation positioned as a centre of expertise on trade, investment and public policy, helping to showcase the opportunities presented by countries like Vietnam, amongst others, to the western world. As part of this mandate, the organisation recently signed a memorandum of understanding with the country’s Department of Foreign Affairs for Provinces aimed at promoting trade and investment relations between Vietnam’s hinterland regions and UK stakeholders. “We decided that, given where Vietnam’s trajectory is and what its trying to do – open up its economy to international investment – we could help to facilitate a better understanding of the opportunities,” Humphreys explains.

ECONOMY “The aim is to help both international companies looking at Vietnam and also local Vietnamese companies looking to engage in international markets.”

MAPPING OUT THE OPPORTUNITIES So, why should companies, UK-based or otherwise, be excited when they look at Vietnam? Posed this same question, the Director of Corporate Affairs responds by citing numerous developments underway across the country, from policy changes to grassroots innovations. “The UK is looking to become more global because of the Brexit process,” he explains. “We don’t yet know where that will end up taking the country, but a lot of UK businesses will be keenly examining where their international connections are. “In a Vietnam context, meanwhile, the country is in many ways the perfect microcosm of the continent’s wider development. I wouldn’t describe its recent experience as a growth story, but rather a step change story. The rise of an urbanised, middle class population has completely changed the local dynamic, and in this sense it’s not a bigger market for the UK to look to, but a new type of market.” In a similar sense to how many of Europe’s key economies transformed during the industrial revolution period, Vietnam and indeed other ASEAN nations are experiencing similarly monumental socioeconomic adjustments, albeit modern variations. In the financial sector, for example, much of the country is leapfrogging traditional banking infrastructure, instead opting for mobile banks, with digital payments now rivalling credit cards as the top non-cash payment method. “Vietnam’s technology-enabled shortcuts are very much part of the ASEAN story,” Humphreys explains. “The region is experiencing huge investment from major technology

companies around the world, whether that’s Google and Amazon or Alibaba and Tencent. “Meanwhile, new technology acts as something of a fuel to economic development, creating a circular cycle of success.” Technology is not the only sector attracting significant FDI, however. The infrastructure sector stands as a similarly lucrative market, owed to estimates suggesting that $25 billion per year is required to meet Vietnam’s sustainable infrastructure needs – figures that can’t be supported by the public sector alone. Yet these are just two examples. Opportunities lie at both ends of the spectrum and everywhere in between,

IN FOCUS

The Asia House, Vietnam Department of Foreign Affairs for Provinces MoU Signed by Ed Ratcliffe, Head of Advisory at Asia House, and Ambassador Nguyen Hoang Long, Director General of the Department of Foreign Affairs for Provinces on June 24, 2019, the agreement underlines the commitment of both organisations to drive political, economic and commercial engagement between Asia and Europe. The agreement is valid for a period of three years and maps out a future of close collaboration. During this time, both parties will collaborate on major events, highlevel roundtable discussions, and facilitate the exchange of relevant expertise regarding how to do business in the respective countries.

laden throughout a multitude of both traditional and digital industries, and further facilitating their accessibility to foreign players is the abundance of policy agreements that the Vietnamese government has signed in recent decades. “Vietnam is certainly at the forefront of ASEAN,” Humphreys states, “but it is still a country in transition. “It’s finding a place in the world where it has a much greater involvement in the global economy than ever before, and therefore a greater role in shaping regional trade and investment rules.” Embracing integration, this approach has seen the signing of crucial FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the ASEAN Free Trade Area and Japan-Vietnam Economic Partnership Agreement. Moving forward, in the eyes of Humphreys, continuing this emphasis on internationalism and economic openness, with the UK, Europe or otherwise, will be integral to the continued development and success of the Vietnamese economy. “Forming and maintaining these agreements will drive sustainable prosperity in the long term,” he affirms. “It’s a must-watch when it comes to Vietnam. The coming years will be interesting as we see how the country tries to make the best use of its priority engagements to really internalise its economy and incite greater levels of investment. “Vietnam is not a rich country by any means. In terms of GDP per capita, it’s still way behind countries like the UK. But there is definitely huge potential to bring a much wider range of people into the economy using a combination of technology and infrastructure-led growth, and there will certainly be opportunities for international businesses to be at the heart of that process.” Asia Outlook issue 41 | 15

TOPICAL FOCUS

RUGBY’S $1.8BN BONANZA Rugby union has well and truly arrived in Japan, the six-week showcase set to inject 216.6 billion yen ($1.8 billion) into the country’s economy Writer: Tom Wadlow 16 | Asia Outlook issue 41

RUGBY WORLD CUP

apan, until recently, has been relatively unknown on the global rugby union stage. In 2015 on the south coast of the UK, in Brighton, the national side produced arguably the greatest upset the world of rugby has ever seen, overcoming South Africa 32-34 in the dying seconds to secure a victory that nobody could see coming. Fast-forward four years to the next World Cup, and Japan is now hosting the tournament. Spread across 12 host cities, the event is set to inject 216.6 billion yen ($1.8 billion) of additive value into the Japanese economy, thanks in no small part to the 400,000 international fans expected to touch down before the final on November 2. RWC2019 could attract up to 1.8 million fans in total, exceeding the number seen the last time it was held in the Asia Pacific region, in New Zealand in 2011. Since the first Rugby World Cup was held in 1987, it has grown tremendously in size and stature, with many visitors staying in the host nation for several weeks.

2019 RUGBY WORLD CUP HOST CITIES & VENUES Toyota, Aichi City of Toyota Stadium

Sapporo, Hokkaido Sapporo Dome Kamaishi, Iwate Kamaishi Recovery Memorial Stadium

Higashiosaka Hanazono Rugby Stadium

Kumagaya, Saitama

Kumagaya Rugby Stadium

Kobe

Kobe Misaki Stadium Chofu, Tokyo Tokyo Stadium

Fukuoka Fukuoka Hakatanomori Stadium

Kumamoto Kumamoto Stadium

Yokohama, Kanagawa International Stadium Yokohama

Oita Ōita Stadium

Fukuroi, Shizuoka Shizuoka Stadium Ecopa

“The findings of the report outline the enormous economic, sporting and social benefits of Rugby World Cup 2019, reaffirming its low-investment, high-return attractiveness to future host unions and governments and just why the tournament increasingly is great for rugby and great for the host nation” – Bill Beaumont, Chairman of World Rugby

$1.8

billion

Expected economic boost to Japanese GDP

thousand Expected number of jobs created

400

thousand Expected number of visiting international fans

This is according to a study undertaken by EY on behalf of the Japan Rugby 2019 organising committee, which predicts a total economic output of around 437.2 billion yen ($3.63 billion). With many of the match venues and team camps enhancing facilities ahead of the tournament and host cities investing in transport links, the report estimates the nation is set to invest ¥40 billion ($0.33 billion) in infrastructure. During the event, a wide range of job opportunities will be presented across different sectors for a variety of different demographics of the population. Indeed, the EY study predicts that up to 25,000 jobs will be supported across the country. Commenting on the impact the sport’s most prestigious showcase will have on its Japanese hosts, Bill Beaumont, Chairman of World Rugby, said: “Rugby World Cup is one of the world’s biggest and most popular global sporting events that attracts sports and major event fans from around the world for a six-week celebration of rugby and the host nation. “The findings of the report outline the enormous economic, sporting and social benefits of Rugby World Cup 2019, reaffirming its low-investment, high-return attractiveness to future host unions and governments and just why the tournament increasingly is great for rugby and great for the host nation. “We are looking forward to what promises to be a very special Japan 2019 tournament that will secure not just an economic legacy, but a participation and fan legacy across Asia through our Impact Beyond programme, run in partnership with the JRFU and Asia Rugby.” And with Tokyo set to stage the Olympic Games in 2020, Japan is currently embracing an unprecedented period of sporting and economic opportunity. For further information go to: www.rugbyworldcup.com Asia Outlook issue 41 | 17

BALI

18 | Asia Outlook issue 41

BUSINESS TRAVEL GUIDE Featuring lush rice terraces, world-class hotels and culturally astounding ancient architecture, Bali is one of the most iconic tourist destinations on earth

FACTS & FIGURES

Writer: Jonathan Dyble Project Manager: Jordan Levey

ali is a destination for everyone. Popular amongst holidaymakers, yoga enthusiasts, digital nomads and honeymooners alike, the island is nothing less than 5,780 square kilometres of paradise nestled within the Indonesian archipelago. From north to south, east to west, you’ll find an unending list of idyllic, white sand beaches and a national aura characterised by ancient artistic flair, spiritual energy, exotic sunsets and some of the most magnificent

Languages: Indonesian, Balinese, English Area: 5,780 km2 Population (2019): 668,000 Currency: Indonesian rupiah Time zone: GMT+8 Dialling code: +62 Internet TLD: .id Climate: Tropical Highest recorded temperature: 42.2°C

terraced rice fields that you’ll ever see. Indeed, such scenery and the region’s warm, humid climate attract many sun-seekers looking for relaxation. Yet others come for the abundance of activities available, and rightly so. Experience the thrills offered by a fantastic array of water sports, from muck diving to white water rafting, the exhilaration of treetop swings and ziplines, and a huge number of other attractions including iconic temples, historic caves and bustling markets. Friendly local and international guides are always available to lend a hand who are chatty, happy and knowledgeable about the best eateries and touristic experiences. In short, whatever you’re after, you’ll probably find it in Bali. By virtue of its very nature, it makes for the perfect getaway.

Asia Outlook issue 41 | 19

BALI

The Business End IT MAY COME as no surprise that tourism is the key driver of Bali’s economy. According to 2018’s figures, 6,511,660 people arrived at the Ngurah Rai International Airport throughout 2018 – a 10 percent increase on 2017’s numbers.

The rising swathes of international visitors that are descending upon the island each and every year have transformed the destination in recent times. The standard of living has vastly improved, with poverty and unemployment falling. New spectacular entertainment spots, restaurants and hospitality infrastructures are built year upon year, this alongside an abundance of other tourism-related commercial opportunities laying the foundations for prosperity across the region. Local arts such as music, painting, carving and dance, for example, have flourished in recent years, backed by a growing intrigue from tour-

'THE RISING SWATHES OF INTERNATIONAL VISITORS THAT ARE DESCENDING UPON THE ISLAND EACH AND EVERY YEAR HAVE TRANSFORMED THE DESTINATION'

20 | Asia Outlook issue 41

ists. Meanwhile, tax revenues have increased, enabling the government to fund coherent strategies related to the industry’s sustainable and continued development. Granted, there are some challenges posed by the rise of tourism, be it overcrowding and/or adverse environmental effects in a few of the country’s major hotspots, but the benefits are undoubted and have helped to transform Bali for the better in numerous ways.

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BALI

In Focus: Ubud UBUD IS ONE of the most popular destinations in Bali, but one that still allows you to feel as if you’re in a world of your own. Home to some of the island’s most incredible waterfalls and famed for its bright, rice-terrace laden landscape, the electric atmosphere offered by this famous town and its surroundings are not to be missed. The island’s upland epicentre has retained every part of its awe-inspiring ambience despite growing visitor numbers, the central highstreets laden with temples, quaint cafes and one of the country’s most infamous markets. Its genuine culture and architecture

Souvenir shops in the center of Ubud

22 | Asia Outlook issue 41

have largely been protected, something that’s admirable against the backdrop of widespread economic prosperity. Such is no better reflected than by the town’s preeminent attraction – the Sacred Monkey Forest Sanctuary. Home to 700 grey long-tailed macaques, this wildlife reserve features several ancient temples and dense tropical foliage, allowing visitors to see the monkeys in their natural habitat swinging through the canopies. The Forest has also been acclaimed for its conservation and research efforts, helping to observe the species’ health, diets and breeding habits.

Pura Taman Saraswati Temple

THE ISLAND OF DREAMS Located only 30 minutes away from Ngurah Rai BALI International Airport. Mercure Bali Sanur Resort resides in the south of Denpasar city – nestled on the calm and relaxed environment of Sanur beach, where centuries of Balinese art and fishing history have been nurtured. Set right on the shore of Bali’s most beautiful, calm and white sand beach, Mercure Bali Sanur Resort exhibits authentic traditional Balinese heritage and hospitality, iconic Balinese Cottages with Alang-Alang roofing and Lombok influenced architecture. Feel a sense of space and tranquility within the resort’s 4 hectares of lush tropical garden and sunrise facing beach. Jl. Mertasari, Denpasar, 80228 Bali Indonesia T +62 (0) 361 288 833 | F +62 (0) 361 287 303 | E reservation@mercureresortsanur.com | www.mercureresortsanur.com

BALI

Bali Hotels Association ONE ORGANISATION TASKED with supporting this thriving tourism industry is the Bali Hotels Association (BHA). Initially launched in the 1990s (formerly known as Casa Grande until 2002), the organisation has been crucial in helping to propel Bali’s marketing strategy, leading the paradise island to becoming one of the world’s most preeminent tourist destinations. Here, Ricky Putra, Chairman of the Association, gives his own take on this integral role and highlights some of the key prospects and landmarks that Bali has to offer. Asia Outlook (AsO): Can you firstly talk me through the origins of the Bali Hotels Association, how it came about, and its initial vision? Ricky Putra (RP): BHA was born in the early 90’s as Casa Grande, Bali Chapter. At that time, the association was made up of General Managers of (mostly) five-star hotels. It was more of an informal club where they could meet on a regular basis and exchange points of views or matters related with their hotels. It evolved to BHA in 2002 after the Bali bombing. Bali was in crisis and the members of Casa Grande got together to face the daunting task of helping the victims, their employees and families, both from overseas and Indonesia, who were faced with very hard times. Some of them were direct victims, and all of them suffered from the aftermath of the extreme drop in business. A new direction was set, focused on marketing of the destination, security and safety, community relations (to re-build trust) and sports and cultural activities to give pride back to the hotel employees. Meanwhile, the environment and best practices, government relations, scholarship to channel funds that were received to further develop 24 | Asia Outlook issue 41

future Indonesian executives, and education to improve the level of service in some of the lower-end hotels were also key objectives.

venues, exceptional sceneries and international night scene, yet still with a highly cultural component, it is a logical choice for so many organisers.

AsO: Since inception, how has the Bali Hotels Association developed and progressed in terms of its key objectives and the messages it tries to get across?

AsO: Why, in your opinion, should someone visit Bali?

RP: We’ve been helping our members by providing reliable, current information and assistance in the prevention and combatting of any crises and developing local executives as hotelier candidates through scholarship programmes, as mentioned. These candidates have been attending tourism school in Bali and we also provide regular trainings for employees of our hotel members to develop their skills. Our focus on environment has also been effective. We have conducted regular clean-ups, provided energy saving benchmarking, launched a green champion forum to share on green initiatives as reference to hotel members, and encouraged members to adopt environmental initiatives to reduce waste. This includes Soap for Hope where used soaps are processed to make new ones and shared to disadvantaged people, Say No to Plastic Bags, Waste Management System programmes and more. In addition, we’ve stayed abreast of all regulations and always tried to influence them positively where possible. AsO: How would you say Bali has developed in recent years as a business travel hub and what are the key reasons behind its growing appeal? RP: Bali is more a place for meeting and incentives than a business hub as such. MICE has always been a key component of the market mix and with the wide range of top-notch accommodation, world-class dining

RP: Firstly, I’d like to highlight the exceptional choices in accommodation, from hostels and bed and breakfasts to high end luxurious resorts. There’s an abundance of food options from all over the world at all price levels to accompany this. We offer Indonesian, Thai, Japanese, Indian, Korean, French, Italian, German, and all the other cuisines that were born from the fusion of one with the other. The nightlife is great, and there are many adventure activities on offer such as scuba diving, surfing, hiking, mountain biking and rafting. The wide choices of city-like areas with fantastic internet connectivity options and the abundance of places to be in harmony with nature are also both highlights. AsO: Are there any specific attractions, landmarks or places to eat and drink that you would recommend? RP: There are numerous attractions, but to name a few, I’d recommend the Menjangan area (West National Park), the Jati Luwih rice terraces and Bali Safari and Marine Park. In terms of food and drink, three of my favourite restaurants are Cibo! Cucina-Delia-Gelateria in Tibubeneng, Nagisa Izakaya Experience in Tanjung Benoa and Bumbu Bali in Badung. AsO: Are you optimistic about the future of the tourism industry in Bali? RP: Absolutely. Bali is a beautiful and ever evolving destination that keeps attracting so many great minds that feel in communion with the island and want it to always be better and more modernised.

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Asia Outlook issue 41 | 25

BALI

Outlook Recommends "The mere mention of Bali evokes thoughts of a paradise. It's more than a place; it's a mood, an aspiration, a tropical state of mind" - Lonely Planet

HOS P ITALITY

TOUR OP ERATORS

Ayodya Resort Bali Inaya Putri Bali Mercure Bali Sanur Resort Mercure Bali Sanur Resort boasts one of the largest private beach front resorts in Sanur. Set right on one of Baliâ€™s most beautiful, calm and white sand beaches and surrounded by five hectares of tropical gardens, this tranquil destination exhibits authentic Balinese heritage and hospitality.

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Bali Traditional Tours Adventure Indonesia Bali Bali Golden Tour Cibo! Cucina-Delia-Gelateria

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AYANA Resort & Spa Bali The award-winning AYANA Resort and Spa Bali is a world-class resort located on 90 hectares of cliff top land perched above Jimbaran Bay, just 10 kilometres from Bali Airport. Its ocean front views are complemented by white sand beaches, majestic sunsets, 19 restaurants and bars, 12 swimming pools and more. 26 | Asia Outlook issue 41

Bali Museum Nagisa Izakaya Experience

Agung Rai Museum of Art

Bumbu Bali

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Asia Outlook issue 41 | 27

BALI

Transport Links MANY TRAVELLERS CHOOSE to arrange all their travel arrangements with the hotel(s) of their choice, but for those who prefer to welcome the day to day spontaneously, there are plenty of travel options available. The local hotspots such as Ubud and Downtown Denpasar are small enough to get around on foot, and offer the chance to soak up the smells, sights and atmosphere that Balinese urban life has to offer. Travelling further afield, either in between these epicentres or to other key landmarks dotted across the island, is also an easy task. Many opt to

28 | Asia Outlook issue 41

rent bikes or motorbikes, while both traditional taxis and ride hailing cabs from mobile app Grab are never much more than a stone’s throw away. Car rentals are another option, but the country’s often busy and somewhat chaotic roads can make this a daunting task to those used to a Western commute. “Avoid driving or riding by yourself at all costs, if possible,” affirms Putra. “While it may look like the last frontier of freedom, things can easily go wrong. Hiring a car with a driver or taking taxis is less expensive and less hassle.”

BUSINESS TRAVEL GUIDE

Landmark Attractions ULUWATU TEMPLE “Uluwatu Temple, also known as Pura Luhur Uluwatu is a famous Balinese temple, overlooking the dramatic coastline of the Bukit Peninsula. Pura Luhur Uluwatu is perhaps the most picturesque temple in Bali (and the world)” – A Travellers Footsteps

SACRED MONKEY FOREST SANCTUARY “A Balinese Hindu site, the Sacred Monkey Forest Sanctuary is populated by some 700 long-tailed Balinese macaques that live in and around the forest. The monkeys are believed to protect the area and the three Hindu temples within – Pura Dalem Agung, Pura Beji, and Pura Prajapati – from evil spirits” – Viator

MOUNT BATUR “Mount Batur, or Gunung Batur, in the Kintamani region of East Bali is an iconic, extremely-active volcano that draws tourists in with both beauty and promise of adventure. Rising to 5,633 feet, Mount Batur can be summited by physically fit hikers in around two hours. Climbing Mount Batur offers a rare opportunity to enjoy an unforgettable sunrise from the top of an active volcano. The views of Bali from the top are stunning” – tripsavvy

Asia Outlook issue 41 | 29

NORTHERN MARIANA ISLANDS

BUSINESS TRAVEL GUIDE

Asia Outlook issue 41 | 31

NORTHERN MARIANA ISLANDS

The Business End

AROUND 90 PERCENT of citizens live in urban areas, the remaining 10 percent living rurally relying primarily on subsistence farming to supplement their cash incomes. Taro, cassava, yams, breadfruit, vegetables and bananas are commonly grown. Investors from South Korea, China and the Philippines have helped industrialise parts of the economy, including the garment-making sector which has now expanded to become a major revenue generator. Tourism, however, is the principal economic activity. According to the latest statistics from the Marinas Visitors Authority, the 2018 financial year saw more than 607,000 arrivals, with 32 | Asia Outlook issue 41

South Koreans arriving in the biggest numbers (236,577). Other important tourist arrivals came from Japan, China, Hong Kong, Guam, the US and Russia. These figures actually represent a slight decrease on inbound tourists from 2017, although 2018 still marked the fifth busiest year in Marianas history, the record being 726,690 in 1997. A major reason behind the slight drop was the cessation of direct flights to and from Japan in May 2018, a move which saw a 25 percent reduction in Japanese tourist arrivals. However, it is very much the objective of associations such as the Marianas Visitors Authority to revive these routes.

FACTS & FIGURES Capital: Languages:

Saipan English, Chamorro, Carolinian Area: 463.6 km2 Population (2017): 55,144 GDP (2016): $1.242 billion Currency: US Dollar Time zone: Chamorro Standard Time Dialling code: +1670 Internet TLD: .mp Climate: Tropical

BUSINESS TRAVEL GUIDE

In Focus: Saipan SAIPAN IS THE administrative capital and largest island of the Marianas. It was an important battleground in the Pacific campaign of the Second World War, where Allied forces overcame the defending Japanese forces between June and July 1944. It was an important victory, for it left the US within bombing range of the Japanese archipelago and lead to the resignation of the countryâ€™s Prime Minister, Hideki Tojo. Banzai Cliff and Suicide Cliff are important memorial sites related to the battle, for it was here where thousands of Japanese civilians jumped to their deaths in desperate attempts to escape the fighting. The Marianas has been administered by the US since the end of the conflict, becoming a US commonwealth in 1978. Saipan itself is 23 kilometres long and eight kilometres wide, the most prime beaches found on the western

and southern coastlines, with mountainous and rugged coastal stretches on the north and east sides. Outdoor activities are a must for visitors to Saipan, the island offering tremendous diving opportunities as well as beautiful trekking trails to the likes of The Forbidden Island. There are also five golf courses, one designed by the well-known golfing figure Greg Norman.

Asia Outlook issue 41 | 33

NORTHERN MARIANA ISLANDS

34 | Asia Outlook issue 41

BUSINESS TRAVEL GUIDE

The Marianas Visitors Authority THE MARIANAS VISITORS Authority was established in 1976, mandated to promote and develop the Northern Mariana Islands as a premier destination of choice for visitors from all over the world, at the same time providing a maximum quality of life for our people. “We nurture and encourage cultural interchange and environmental sensitivity for visitors’ enjoyment and for the local community,” comments Priscilla Iakopo, the organisation’s Managing Director.

Here, Iakopo answers our questions on the developing tourism scene in the country and the future goals of the Marianas Visitors Authority. Asia Outlook (AsO): Since inception, how has the Marianas Visitors Authority developed and progressed in terms of its key objectives and the messages it tries to get across?

including but not limited to Korea, Japan, China, Taiwan, and Russia. Through effective marketing strategies, we have garnered a great number of arrivals from these core target markets. Furthermore, we are putting effort into targeting other markets around the world to seek opportunity on expanding the awareness of the Marianas destination.

Priscilla Iakopo (PI): One of the main objectives for the Marianas Visitors Authority is attracting high-yield segments from core target markets

AsO: How would you say the Marianas has developed in recent years as a business travel hub and what are

Asia Outlook issue 41 | 35

NORTHERN MARIANA ISLANDS the key reasons behind its growing appeal? PI: The Marianas has effectively executed on properly guiding and assisting travellers to the Marianas by working closely with source travel partners from emerging markets. AsO: Why, in your opinion, should someone visit the Marianas? PI: The Marianas is a perfect getaway destination with crystal clear waters, white sandy beaches, rich history, beautiful nature, and year-round warm weather for visitors to enjoy outdoor activities, world-class diving and golfing. There is also international shopping, a wide range of ethnic restaurants, and a wide variety of international and indigenous cultures. Best of all, the people in the Marianas are very hospitable and friendly. AsO: Are there any specific attractions, landmarks or places to eat and drink that you would recommend? PI: Marianas has great historical landmarks. There are WW2 historical sites around the islands as well as indigenous cultural historical sites such as the Latte Stone Quarry in Rota, and the Taga House in Tinian. The Latte Stone Quarry in Rota is in the record

book as being the largest of its kind. The north part of the island of Saipan has iconic sites such as Banzai Cliff where there is a great WW2 historical presence and also Grotto that is an iconic dive site that features a unique underwater cave to dive into. In addition, the Marianas offers authentic local Chamorro foods such as Chicken Kelaguen which is a lemon-based chicken mix, and Apigigi which is similar to a rice cake but made with coconut. There are also different varieties of ethnic cuisines that can be easily found around the whole destination.

PI: The growing trend here in the Marianas is diving. We have been seeing increased numbers of divers visit. We also currently have an Ocean Ambassador that represents the Marianas, a famous Taiwanese celebrity by the name of Yorko Summer. Through projects with Summer, we have been able to further expose and promote diving in the Marianas to all markets with magnificent videos and astonishing photos of our Marianas dive sites.

AsO: What are the best ways of getting around the islands?

PI: We currently have six ongoing hotel projects here in the Marianas (five in Saipan and one in Tinian). Through this we will have more available hotel rooms that will give us a leverage into having increased numbers of visitors for the upcoming years once constructions are completed. This will also open doors to foreign investors to consider the Marianas as a prime destination to invest.

PI: The best way of getting around the island is by car and tour buses offered by tour companies. Rent-a-car use has been rising in the past several years â€“ it has been a trend taking iconic photos around the island driving convertible Mustangs and Camaros. The Commonwealth Office of Transit Authority also launched a fixed-route transit service in 2017. This service is also available to tourists. AsO: What trends are transforming the tourism industry in the Marianas at present?

AsO: How do you see the Marianas developing as a business travel hub over the next year to two years?

AsO: Are there any plans or projects in the pipeline that you wish to highlight? PI: Reviving the Japanese market is one of our main objectives as it was once the top market in the Marianas. We are working closely with Japanese travel partners with a view to having direct flights between our two countries. In addition, the Marianas Visitors Authority is working on promoting ecotourism and sports tourism. AsO: Are you optimistic about the future of the tourism industry in the Marianas? PI: Very optimistic. With the growing numbers of foreign investors and interest from travellers around the world, we are confident about the future of the tourism industry in the Marianas. The Marianas Visitors Authority continues to work and adapt to the ever-changing travel trends.

36 | Asia Outlook issue 41

BUSINESS TRAVEL GUIDE

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Asia Outlook issue 41 | 37

NORTHERN MARIANA ISLANDS

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HIMAWARI HOTEL / RESTAURANT STORE / BAKERY The hotel is located in Saipan, Northern Mariana Islands. This new hotel was introduced in June 2006. Garapan located in the central district of Saipan , within walking distance of shopping and the beach, restaurants to the city, is very convenient. Garapan district located in a residential area, the eastern part of the most quiet, good security. Phone: +1 (670) 233-1530 Email : hotel@himawari-saipan.com

himawari-saipan.com

Tel 1(670) 233-3337/8 master@holidaysaipan.com www.holidaysaipn.com

Asia Outlook issue 41 | 39

NORTHERN MARIANA ISLANDS

Transport Links SAIPAN INTERNATIONAL AIRPORT is the major air transit hub of the Marianas. Flying to cities in South Korea, China, Guam and the Philippines, as well as Hong Kong, several major airlines operate out of the airport, including Delta Air Lines, Asiana Airlines, United Airlines, China Eastern, Jeju Air, Sichuan Airlines, Jin Air and PAL Express. From here visitors can also pick up a rental car, an increasingly popular mode of navigating the main island. Companies operating out of Saipan International Airport include Avis, Budget Rent A Car, Alamo, Islander Rent a Car, Microl and Hertz.

40 | Asia Outlook issue 41

Tinian International Airport is a smaller operation, handling traffic from inter-island journeys from Saipan, Rota and Guam. Aircraft landing here are single engine, able to carry up to nine passengers at a time. Benjamin Taisacan Manglona International Airport (Rota) is the third airport in the Marianas, again serving inter-island routes between Saipan and Guam. It can handle slightly larger aircraft than Tinian, the ATR 42 able to carry up to 30 passengers. Airlines operating here include Cape Air, Star Marianas and Arctic Circle. Another way of navigating the islands is to join a bus tour.

BUSINESS TRAVEL GUIDE

Landmark Attractions FORBIDDEN ISLAND

MOUNT CARMEL CATHEDRAL

“A craggy outcrop jutting out from the island’s coastline, Forbidden Island remains one of Saipan’s wildest attractions. You’ll need a decent off-road vehicle to access the trail leading to the rock formation. The trail itself is a short but somewhat tricky hike down. Make sure you wear sturdy footwear for the steep walk and bring plenty of food and drinks. The water around the rock makes for excellent snorkelling, although the current can be quite strong” – Inspirock

“The Catholic Cathedral of Mount Carmel is located on the beach road. It was built during Spanish rule and destroyed during World War II. The white building we see now is the occasional prayer time that was rebuilt later. It stays for a short time. It is infected by the attitude and devotion of foreigners to belief” – Trip.com

SUGAR KING PARK “Sugar King Park has beautiful moss covered trees, picnic tables and Japanese shrines. One of the trains that carried the sugarcane around the island is permanently parked at the front of the park. You will also find a large statue of the Japanese sugar king himself, Haruji Matsue” – Saipan Go

HOUSE OF TAGA “According to legend, Taga will survive as long as at least one of the stone ‘ latte’ of his home remains standing. The House of Taga is located near San Jose Village, on the island of Tinian, United States Commonwealth of the Northern Mariana Islands. It is thought that earthquakes felled most of the stone pillars and today only one of the original twelve latte remains vertical” – ancient-origins.net

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SRI LANKA

Sri Lanka Sri Lanka may be a small island nation, but it is packed with cultural, culinary and natural phenomena, home to no fewer than eight UNESCO World Heritage Sites Writer: Tom Wadlow | Project Manager: Jordan Levey

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BUSINESS TRAVEL GUIDE

ou’ll struggle to find a destination as small and navigable as Sri Lanka with so many significant cultural and natural sights. The country, nestled off the southeast coast of India, houses eight UNESCO World Heritage Sights, the world’s oldest living human-planted tree, herds of beautiful Asian elephants and spectacular forest-clad hills – just some of the attractions on offer to visitors.

Formerly known as Ceylon, Sri Lanka has historically served as a vital maritime crossroads in the region, a key outpost for European colonial settlers who traded the likes of tea, rubber and coconut in enormous volumes. In 1948, after almost 150 years of British rule, the country became an independent nation, admitted to the United Nations in 1955. Today’s Sri Lanka welcomes tourists in their millions, visi-

tors won over by the natural diversity, local culture and vibrant cuisine to be found here. It is one of the easiest Asian countries to get around, thanks in part to the proximity of major sites, yet maintains a largely uncrowded feel. Last but not least are the sandy beaches. Picturesquely golden and surrounding the entire island, you’ll never be far from a quiet getaway and world-class surfing and diving scene.

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SRI LANKA

The Business End A MAJOR IMPACT of the colonial period was to establish Sri Lanka as a prolific producer of three major exports – tea, rubber and coconut. The British in particular pressed the development of plantation agriculture, although today the production of rice is the most important economic activity of vast numbers of rural Sri Lankans – since independence, paddy production has increased markedly. Tea is the main plantation crop and a famous national export, with some of the crops grown in higher altitude supplying some of the best quality

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black tea in the world. A range of liberalisation policies saw some state industries privatised in a bid to attract foreign investment, the tourism trade flourishing under these policies. Today it is the third largest foreign exchange earner in the country, earning an estimated $4.3 billion in 2018 thanks to a record 2.3 million tourist arrivals. This trend looks set to continue, with estimates suggesting that $223 million of projects were approved last year.

Global hotel chains such as Marriott, Shangri-La, Six Senses, and Mövenpick have all started building or operating hotels in Sri Lanka, joining Hilton which had previously been the only global player in the country.

FACTS & FIGURES Capital: Colombo Languages: Sinhala, Tamil Area: 65,610 km2 Population (2018): 21.69 million GDP (2017): $82.4 billion Currency: Sri Lankan rupee Time zone: India Standard Time Dialling code: +94 Internet TLD: .lk Climate: Tropical

BUSINESS TRAVEL GUIDE

In Focus: Colombo

COLOMBO IS THE capital of Sri Lanka and carries with it a long history as a port on the ancient east to west trading routes, ruled successively by the Portuguese, Dutch and British colonialists who realised its strategic value. Subject to a modern and ongoing construction boom, Colombo’s skyline is an ever-evolving mix of modern and colonial influences. Awash with markets, galleries and shops, the Sri Lankan capital is also one

of the country’s most exciting places to eat and drink, with local food and tiny cafes forming a highlight for any visitor. Street food is also notoriously good here, and well worth trying out. The National Museum is a must-visit, with galleries dating back to 1877 and a ninth century stone Buddha greeting guests on arrival. Presented inside are numerous exhibitions of arts, carvings and paraphernalia such as swords and guns.

On the business side of things, Colombo is undoubtedly the most important economic centre in Sri Lanka. The Sri Lanka Exhibition & Convention Centre is conveniently located around 20 kilometres away from Bandaranaike International Airport, and just 200 metres from the country’s highest building, the World Trade Centre. The meetings and events venue offers around 4,000 square metres of space. Asia Outlook issue 41 | 45

SRI LANKA

The Tourist Hotels Association of Sri Lanka OPERATING WITH A wide remit to promote the tourism and hotels industry in the country, the Tourist Hotels Association of Sri Lanka (THASL) unites the interest of hotels and accommodation providers spread right across the country, its membership around 200. Sanath Ukwatte is the organisationâ€™s President, and he took time out to answer our questions about its work and the tourism scene in Sri Lanka more widely. Asia Outlook (AsO): Can you firstly talk me through the origins of The Hotels Association of Sri Lanka, how it came about, and its initial vision? Sanath Ukwatte (SU): The Tourist Hotels Association of Sri Lanka, then known as The Ceylon Tourist Hotels Association, was formed in 1965, a year before the establishment of the Ceylon Tourist Board â€“ the event is celebrated as a significant milestone in the evolvement of the modern tourism industry in Sri Lanka.

46 | Asia Outlook issue 41

THASL began with a total of 720 graded rooms with a total bed capacity of 1,200 for the purpose of advancement of the tourism industry. The association has resiliently prevailed in its mission to uplift the local tourism industry in the midst of insurgencies, natural disasters, epidemics and a three-decade long civil war. Today, THASL is the apex body of the entire hotel industry in the country. Its membership presently stands at 200 hotels and resorts located in different parts of the country, comprising reputed international hotel brands, leading local hotel chains, proprietorships and stand-alone properties, ranging from Colombo five-star city hotels to all other star categories including top end boutique properties. AsO: Since inception, how has the organisation developed and progressed in terms of its key objectives and the messages it tries to get across?

SU: There are five key objectives of the association. First is to promote and foster tourism and the tourist hotel industry in Sri Lanka for the promotion of commerce and economic development of Sri Lanka. Second is to co-operate with the Government of Sri Lanka on all measures for the promotion and improvement of the tourist hotel industry, and to advise the government and any statutory or other authority on appropriate measures and incentives necessary to encourage and stimulate the sector. Third is to organise, finance and participate with local and international organisations for the promotion and improvement of tourism and the hotel industry and for the furtherance of the associationâ€™s objectives.

BUSINESS TRAVEL GUIDE Fourth is to affiliate with any organisation in Sri Lanka or overseas which have objectives similar to those of this association. And finally, our aim is to do all such things as may be necessary, incidental or conducive to the interests or benefits of tourism in Sri Lanka, to conduct any kind of business with the aim of promoting and increasing the tourism/ tourist hotels industry and the benefits of the members of the association. AsO: Why, in your opinion, should someone visit Sri Lanka? SU: Sri Lanka is unlike any other country. It has a lot to offer, it is diverse and different. Within a few hours from the airport, you can reach diverse destinations from the warm beaches to the mountains to wildlife parks, bustling life experiences and traditional villages, and UNESCO heritage sites. Sri Lanka is home to the largest mammals

in the world – the blue whale and the Asian elephant. Sri Lankans are among the friendliest people in the world and we are warm and welcoming. Sri Lanka is your perfect destination. AsO: What are the best ways of getting around the country? SU: If you wish to sight see and experience the local way of life, I would suggest the train. However, for the convenience of time, we have air taxis available to most parts of the country. AsO: What trends are transforming the tourism industry in Sri Lanka at present? How are you responding to these trends? SU: We see that visitors are now opting for more experiential and healthy holidays. Visitors are looking

for authentic ways to experience the country – they are concerned about the environment and also what they eat. Sri Lanka is developing practices of taking care of the environment and hotels are taking initiatives to ban single use plastic by March 2020. Hotels are also creating authentic Sri Lankan experiences and are incorporating more healthy food in their buffets – vegan buffets are available in most hotels. AsO: How do you see Sri Lanka developing as a business travel hub over the next year to two years? SU: Sri Lanka needs a lot of infrastructure development to accommodate MICE and large events. At the moment, we have the BMICH and the Nelum Pokuna that are capable of hosting large conference and events. However, this will not suffice, but I do believe that as the demand for Sri Lanka grows the infrastructure too will develop. Sri Lanka’s strategic location connecting the two sides of the world serves for its advantage – we are a part of the One Belt One Road project which aims to invest in infrastructure and other services to increase connectivity from Asia to beyond. Also, projects like Colombo Port City can potentially develop Sri Lanka into an economically vibrant Indian Ocean hub. There are many hotel projects due to come up in Sri Lanka in the next few years. Over 300 new hotel projects have been approved by the government which will add approximately 20,000 rooms nights offering a more diverse product for visitors. AsO: Are you optimistic about the future of the tourism industry in Sri Lanka? SU: Yes, despite the recent unfortunate incidents, I am very positive that we will bounce back and the tourism industry will flourish in time to come.

Asia Outlook issue 41 | 47

SRI LANKA

Outlook Recommends “Endless beaches, timeless ruins, welcoming people, oodles of elephants, rolling surf, cheap prices, fun trains, famous tea and flavourful food make Sri Lanka irresistible” – Lonely Planet

ACCOM MO DAT IO N

FO O D & DR I NK COLOM BO

NATURE

Epicure

Udawalawa National Park

Colombo Hilton

Wilpattu National Park Situated around 45 minutes from Bandaranaike International Airport, the Hilton Colombo is located in the heart of the Sri Lankan capital’s business district. As well as spacious rooms, the hotel offers a grand ballroom which can seat up to 900 people, as well as several other business and meetings facilities.

Horton Plains National Park M USEUM S

The Lagoon

Centara Ceysands Resort and Spa OZO Kandy

Graze Kitchen

National Museum of Colombo

Ulagalla by Uga Escapes

Curry Leaf

Ceylon Tea Museum

Heritance Kandalama

Rare at Residence

World Buddhist Museum

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WWW.EMEOUTLOOKMAG.COM

SRI LANKA

Transport Links THE MAJOR TRANSIT hub serving Sri Lanka is Bandaranaike International Airport, sat 30 kilometres north of Colombo. SriLankan Airlines is the countryâ€™s national carrier, operating a vast network across Asia and into the Middle East with a safety record comparable to many well-respected international airlines. Local flights are mostly served by Cinnamon Air. Mattala Rajapaksa International Airport is near the south coast, 15 kilometres north of Hambantota, but is something of a ghost town with just one scheduled flight to Dubai being operated each day. Once landed in the country, the quickest way to get up and down to

IMAGE BY ANURADHA DULLEWE WIJEYERATNE

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the major settlements is by getting on another aircraft. However, these are infrequent and can be expensive, so public transport represents a more affordable and frequent bet. Trains are tipped as the best way to travel longer distances and provide a great way to see the Sri Lankan countryside. Although these can be slow, they are very reasonably priced and cover most major towns and cities on three major rail lines. Buses are another option. Covering 80 percent of the nationâ€™s road network, routes are operated by state and private organisations, the latter often using more modern vehicles with air conditioning.

BUSINESS TRAVEL GUIDE

Landmark Attractions

Bentota – Sri lanka ALUTHGAMA

Nestled between the Bentota River and the Indian Ocean on Sri Lanka’s south-western coast, Centara Ceysands Resort & Spa Sri Lanka offers a superbly natural environment together with an extensive range of activities and facilities, making the resort a firm favourite for active holidays in an exciting destination, along with being a perfect venue for couples and families to relax and enjoy the beautiful tropical setting. T +94 (0) 34 5 700 700 • F +94 (0) 34 2275395 • E ccs@chr.co.th WWW.CENTARAHOTELSRESORTS.COM

GAL VIHARA “This is a group of beautiful Buddha images that probably marks the high point of Sinhalese rock carving. They are part of Parakramabahu I’s northern monastery. The Gal Vihara consists of four separate images, all cut from one long slab of granite. At one time, each was enshrined within a separate enclosure ” – Lonely Planet

UDAWALAWA NATIONAL PARK “Udawalawe National Park was created in 1972 to provide a sanctuary for wild animals displaced by the construction of the Udawalawe Reservoir on the Walawe Ganga, as well as to protect the catchment of the reservoir. Udawalawe covers 30,821 hectares of land and lies on the boundary of Sri Lanka’s wet and dry zones” – Udawalawe Trails

POLONNARUWA “The second most ancient of Sri Lanka’s kingdoms, Polonnaruwa was first declared the capital city by King Vijayabahu I, who defeated Chola invaders in 1070 to reunite the country once more under a local leader. The Ancient City of Polonnaruwa has been declared a World Heritage Site” – Sri Lanka Tourism

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AMERICAN SAMOA

American Samoa From pristine beaches and jagged mountains to stunning natural harbours and an intriguing WW2 history, American Samoa remains a relatively unexplored paradise Writer: Tom Wadlow | Project Manager: Matt Cole-Wilkin

merican Samoa, an unincorporated territory of the United States, is something of a Polynesian gem. Sat in the southern-central Pacific some 3,500 kilometres southwest of the US state of Hawaii, it is made up of six Samoan islands â€“ Tutuila, Tau, Olosega, Ofu, and Aunuu, along with the uninhabited Rose Atoll. The existence of these islands owes itself to volcanic activity millions of years ago. Except for the coral atolls, the islandsâ€™ terrains are rugged with deep inlets such as the harbour at Pago Pago. Indeed, it is described by the likes of Lonely Planet as breathtakingly beautiful, its beaches and hills combining to present an idyllic setting for a vacation. 52 | Asia Outlook issue 41

Though not rich with animal life, the forest-clad mountains do provide sanctuary for the likes of flying foxes, lizards and rare bird species, the tropical climate also seeing a constant temperate of between around 20 and 30 degrees Celsius all year round. The Samoan locals will also make any visitor feel welcome, most of them speaking English and a large proportion of the population residing in Pago Pago, the main port and administrative and commercial centre. And although traditional Samoan customs have been preserved, the people of American Samoa have been heavily influenced by US TV, music and food, making for a fascinating blend of cultures.

BUSINESS TRAVEL GUIDE

Asia Outlook issue 41 | 53

AMERICAN SAMOA

The Business End AMERICAN SAMOA’S ECONOMY is centred around services and manufacturing, the government serving as the territory’s major employer. Agriculture is organised on a semi-commercial basis for the production of taro, bananas, tropical fruits, and vegetables, with a more formal fishing sector focussing on exporting tuna. Tourism is emerging as an increasingly important earner. In 2016, for example, visitors spent around $22 million on goods or services. “We’ve helped grow our cruise ships visits from six ships a year to averaging 20-plus a year, now bringing over 50,000 passengers annually to our shores,” explains David Vaeafe, Executive Director of the American Samoa Visitors Bureau (ASVB). “We have seen steady growth across the sector and room occupan54 | Asia Outlook issue 41

cy has grown over the years from 30 percent in 2009 to now around 70 percent annually across 260 rooms total.” While the numbers are certainly pointing in the direction of growth, American Samoa remains a relatively unspoiled destination, a big factor in why Vaeafe believes the territory makes for such an enjoyable visit. Moving forwards, the challenge will be to balance the need for economic gain against maintaining an authentic tourism experience.

FACTS & FIGURES

Capitals: Fagatogo and Utulei Languages: English, Samoan Area: 200 km2 Population (2018): 60,300 GDP (2015): $641 million Currency: US dollar Time zone: Samoa Standard Time Dialling code: +1684 Internet TLD: .as Climate: Tropical

BUSINESS TRAVEL GUIDE

Out and About WHETHER IT BE relaxing on pristine beaches, hiking the trails of the resident national park or taking in some of the historical sites, there is plenty to occupy visitors in American Samoa. Asked for his recommendations, Vaeafe comments: “I would suggest going to the National Park of American Samoa, one of 59 in the US National Park System and the only one in the Southern Hemisphere, as well as the National Marine Sanctuary of American Samoa, one of 14 in the US and the largest in both size and marine life diversity. “American Samoa is also the last place on earth to see the final sunrise and sunset of every day and when you travel from Samoa to American Samoa, you cross the International

Dateline and travel back in time. “You should also visit the Manu’a Islands of Ta’u, Ofu and Olosega and visit ancient and sacred sites that even Samoan’s dare not go to because they are haunted by ghostly spirits to this day. “Another option is to visit some of the US Naval Sites like the guns at Blunts Point or the old naval buildings in Utulei and Fagatogo villages, including the Governor’s Mansion as American Samoa was a US Naval base from 1900 to 1957 and played an active

part in WWII against the Japanese. “There’s plenty of shopping at the local retail stores, and if you are looking for tailor made clothing the sewing shops around the island can make or copy anything for you within a day or two. Dining out at local restaurants is cheap and food portions are huge, with a range of food outlets from US fast food brands to American and Asian fare and local Samoan food.”

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AMERICAN SAMOA

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BUSINESS TRAVEL GUIDE

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AMERICAN SAMOA

American Samoa Visitors Bureau MANDATED WITH PROMOTING tourism in the region is the American Samoa Visitors Bureau (ASVB), established in 2008 after former Governor Togiola Tulafono issued an Executive Order titled the Tourism Development Act. “Prior to this there was a Tourism Division within the American Samoa Government Department of Commerce for some 20-plus years,” explains Vaeafe. “The ASVB mandate is to create and build a viable tourism sector and I was hired as its first Executive Director in August 2009 to establish the office.” Here, Vaeafe takes time out to answer our questions about the association’s work and tourism scene in Americana Samoa more generally.

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Asia Outlook (AsO): Since inception, how has the ASVB developed and progressed in terms of its key objectives and the messages it tries to get across? David Vaeafe (DV): Since we started this office from scratch, the ASVB had to build everything from the ground up. With the support from the ASG Department of Commerce, we produced a new Tourism Development Plan which was delivered in 2010. The new tourism plan gave us a more focused roadmap on building up our tourism sector on the basis of a Public Private Sector Partnership model. The ASVB inherited a local young tourism industry that very much had little to no tourism industry experience/training but were passionate about their products and services. We spent the first few years through the support of US Federal Grant Funding conducting our successful ‘Tourism Export Ready Training Program’, which covered 95 percent of our industry, training them on the global tourism industry, relationships between airlines, wholesalers, retailers and online travel agents, how to produce commissionable contracts,

and marketing and sales. At the same time the ASVB undertook sales missions to New Zealand, Australia, USA and UK meeting with travel trade partners and travel media, training and teaching them about American Samoa, a new undiscovered PacIfic Island destination and US Territory in the heart of the Pacific Ocean. We built relationships with our international travel trade partners and have over the years run awareness and sales campaigns with such companies as Orbitz, TripAdvisor, Expedia, Wotif, Air New Zealand Holidays, Hawaiian Airlines and many others. The ASVB acts as the sales representatives for its entire industry and we fund all overseas destination marketing campaigns and will continue to do so until such time as our industry members can do their own. The organisation has re-joined the South Pacific Tourism Organisation (SPTO) after many years of absence, is a founding member of the South Pacific Cruise Alliance (SPCA and a member of the US Travel Association (USTA). Presently I am Chairman of SPTO and President and Chairman of SPCA.

BUSINESS TRAVEL GUIDE AsO: How would you say American Samoa has developed in recent years as a business travel hub and what are the key reasons behind its growing appeal? DV: American Samoa business sector is 100 percent locally owned and business owners have identified their niches in the market for products and services. One of the key tourism drivers here is shopping with locally owned stores (there are no US chain retailers here) bringing US products into the territory. We have no sales tax or GST here so buying “made in the USA” consumer products is very cheap and attractive to visitors. People who are visiting from neighbouring Samoa will hop on a flight (only 30 minutes) and come shopping in American Samoa for the day. You can buy everything from genuine branded products like Coach, Gucci, Prada, Nike and more. Besides the retail aspect, a lot of seasoned travellers are also looking for new destinations and American Samoa to most of the traveling public is an unknown. We are the last Pacific Island nation in the region to develop tourism. Our industry is very small, and we are 100 percent locally owned and operated, with no chain hotels and brands here. If we were to compare our islands with another in terms of tourism

development, American Samoa today is where Hawaii’s tourism industry was 75-plus years ago. AsO: Why, in your opinion, should someone visit American Samoa? SV: The are many! For example, a genuine unique experience, off the beaten track, Samoan culture and hospitality that is over 3,000 years old and a living culture, no five-star hotels or brands here, rainforest covered islands offering an ecotourism wonder, great shopping and no mass tourism. AsO: What trends are transforming the tourism industry in American Samoa at present? How are you responding to these trends? SV: One of the biggest changes taking place on island that we are seeing is a more empowered business sector. Recently the American Samoa Chamber of Commerce has set up a tourism subcommittee lead by one of our longest serving tourism industry members connecting with the grassroots communities and villages. The tourism sector re-established its own association, now called the Visit Amerika Samoa Association (VASA) which is bringing together private sector members to undertake projects to strengthen, grow and support the industry and work together with the

ASVB. We are also seeing industry members utilise more online marketing through social media and other platforms. The ASVB also passes on new sales and marketing opportunities and platforms to industry members to keep them updated on the changing global industry. AsO: How do you see American Samoa developing as a business travel hub over the next year to two years? SV: The ASVB will continue to actively market the destination and industry members at overseas consumer and key trade shows/events such as the Samoa Tourism Exchange, South Pacific Tourism Exchange, Inernational POW WOW, Seatrade Cruise Global and the Travel & Adventure Shows in the region and the US. We’ll continue to promote the destination as a small MICE market as well as helping develop existing and new businesses on island. Key projects the ASVB is involved in with other government agencies include the development of the old Inter Continental Rainmaker Hotel vacant site with a new 150-room hotel in the pipeline – watch this space. We are also working with our airline partners on additional services in the future from existing markets, but also new markets and carriers as well. We are actively involved with industry members to develop new products and services for visitors to make their experience in American Samoa a memorable one. AsO: Are you optimistic about the future of the tourism industry in American Samoa? SV: The tourism future for American Samoa is a positive one with continued steady growth. We now have a very engaged tourism sector and the ASVB will be there to support the industry and make it easier for them to operate with the support of other government agencies. Tourism is everyone’s business! Asia Outlook issue 41 | 59

AMERICAN SAMOA

Outlook Recommends “Mention of this distant archipelago more often than not elicits a blank stare, but despite its mundane moniker and confusing status (it belongs to, but isn’t a part of, the US), American Samoa is one of the most breathtakingly beautiful pockets of Polynesia” – Lonely Planet

TOUR O P ERATO RS

ACCO M M O DATI ON

FOOD AND D RI NK

Tradewinds Hotel

Tisa’s Barefoot Bar

Moana O Sina

Manuia Restaurant

Pago Pago Tradewinds Tours With decades of experience in promoting tourism in Pago Pago, Pago Pago Tradewinds Tours specialises in all types of holidays to the destination, from cruise ships to package trips. With an unrivalled knowledge of Samoan culture, you can be assured of being looked after if you arrange your visit through Pago Pago Tradewinds Tours.

The Koko Bean Cafe IceBreaker Bar & Bistro Va’oto Lodge

AI RL I NES SERV I NG PAGO PAGO

Hawaiian Airlines Tour American Samoa Pure Travel 60 | Asia Outlook issue 41

Polynesian Asaga Inn

Talofa Airways

BUSINESS TRAVEL GUIDE

Asia Outlook issue 41 | 61

AMERICAN SAMOA

Transport Links OWED TO ITS geography, air and sea are the modes of transport that will get you around American Samoa. Detailing some of the options, Vaeafe says: “American Samoa has direct flights twice a week all year round from Honolulu on Hawaiian Airlines and during the summer and Christmas holidays they will go to three flights a week and flight time is five hours one way. “There are 15 flights a day between Samoa and American Samoa on two airlines. Samoa Airways offers nine flights and Talofa Airways offers six flights a day, Flight time is 30 and 20 minutes respectively on both carriers. Samoa Airways also provides domestic flights between Tutuila Island and the Manu’a Islands daily.

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“Talofa Airways also operates a twice a week flight from American Samoa to Tonga, flight time is two hours one way. “There is also a once a week ferry service operated by the Samoa Shipping Corporation from Apia, Samoa to Pago Pago, American Samoa every Wednesday (Samoa time) returning Thursday (American Samoa time) and the sailing time is around five hours or more depending on sea conditions.” In terms of arriving at American Samoa, all international flights arrive at Tafuna International Airport, 15 kilometres southwest of Pago Pago Harbor.

BUSINESS TRAVEL GUIDE

Landmark Attractions NATIONAL MARINE SANCTUARY OF AMERICAN SAMOA

NATIONAL PARK OF AMERICAN SAMOA

“National Marine Sanctuary of American Samoa is located in the cradle of Polynesia’s oldest culture. The sanctuary protects extensive coral reefs, including some of the oldest and largest Porites coral heads in the world, along with deep-water reefs, hydrothermal vent communities, and rare marine archaeological resources” – americansomoa.noaa.gov

“The National Park of American Samoa welcomes you into the heart of the South Pacific, to a world of sights, sounds, and experiences that you will find in no other national park in the United States. Enjoy this unique national park and the welcoming people of American Samoa. We are here to protect its rich culture and natural resources” – National Park Service

OFU AND OLOSEGA ISLANDS

AUNU’U

“These twin islands, separated by a deep channel but linked by a bridge, are as close to paradise as it gets. Ofu’s lone village crouches at its western end, leaving the rest of the island largely – and delightfully – uninhabited. Taking up its southern shoreline, exquisite Ofu Beach is four kilometres of shining, palm-fringed white sand, flanked by outrageously picturesque peaks that rise behind it like giant shark’s teeth” – Lonely Planet

“At the north end of the island is Pala Lake, a deadly looking expanse of quicksand whose fiery red hue is best appreciated at low tide. Within Aunu’u’s central volcanic crater lies Red Lake, filled with eels and suffused by a preternatural glow at dusk” – Lonely Planet

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Issue 41

FUJITSU A Q&A with Mike Foster, Australia & New Zealand CEO

Maritime

MARIANA ISLANDS

Abound with nature and WW2 history

Marvel SIPA is charting the Solomon Islands’ progressive, transformative maritime course, its two key ports now standing as crucial pillars of the national economy

Maritime

Marvel SIPA is charting the Solomon Islands’ progressive, transformative maritime course, its two key ports now standing as crucial pillars of the national economy Writer: Jonathan Dyble | Project Manager: Josh Mann

2 | Asia Outlook issue 41

CHARTING THE SOLOMON ISLANDS’ PROGRESSIVE, TRANSFORMATIVE MARITIME COURSE

Asia Outlook issue 41 | 3

Rugby World Cup 2019: How Japan is set to gain an economic boost from the six-week showcase

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SOLOMON ISLANDS PORTS AUTHORITY

Maritime

Marvel SIPA is charting the Solomon Islandsâ€™ progressive, transformative maritime course, its two key ports now standing as crucial pillars of the national economy Writer: Jonathan Dyble | Project Manager: Josh Mann

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SUPPLY CHAIN

he maritime industry has been instrumental to the development of civilisations through time. Providing humanity with the capacity for cross-continental exploration, mass fishing and greater mobility than land-based travel for trade, transport or warfare, it is understood that the first ships (if you can call them that) were developed many millennia prior to the BC era. Initially consisting of single logs that floated down rivers with small cargo attached to them, greater numbers of logs were eventually strapped together forming rafts to carry larger loads. Fast forward through the centuries and boats gradually became more sophisticated. The Austronesians invented the same oceangoing sailing technologies in 3000 BC that are still used today, allowing them to achieve seaborne migration and establish sophisticated trade routes throughout the Asia Pacific. By 200 AD, records suggest that some ships were capable of carrying 700 people and up to 1,000 tonnes of cargo. Yet these vessels were still a far cry from the sea freighters that we know today. The worlds biggest container ship â€“ the OOCL Hong Kong â€“ currently measures the length of about four football pitches, has a deadweight tonnage of 191,317 metric tonnes, and a capacity equivalent to that of 21,413 standard shipping containers. Albeit impressive, this monumental surge in size is just one facet of the sector that has changed drastically in modern times. Sophisticated marine technologies have been the subject of a similarly meteoric rise, with the likes of blockchain, artificial intelligence, robotics and analytics all stamping their mark, enhancing operational efficiency and introducing automated processes. As a result, one of the worldâ€™s oldest industries now floats above many others, championing global technological progress. Asia Outlook issue 41 | 67

SOLOMON ISLANDS PORTS AUTHORITY Looking at the Solomon Islands, this rings particularly true. A relatively underdeveloped archipelago nation consisting of more than 900 islands, its success has always relied heavily upon the maritime industry. But no more so than it does today. “The seafaring space is dynamic, it is thriving, and it is evolving,” declares Eranda Kotelawala, the Chief Executive Officer of Solomon Islands Ports

Authority (SIPA) – a key organisation backing the reconstruction of the national sector. Previously working a marketing and management capacity, Kotelawala’s career only aligned with the sector back in 2015 when he took on a combined role as Chief Operating Officer for both Fiji Ships and Heavy Industries Limited and Fiji Ports Corporation Limited.

SIPA

AN INTRODUCTION Established June 4, 1956 as a statutory corporation by an Act of Parliament, SIPA as since stood as a wholly owned Solomon Islands government authority reporting to the Minister of Infrastructure Development. It is responsible for the operation of the ports of Honiara and Noro, mandated with the following duties: • Provide, maintain and improve in the declared ports such facilities as appears best calculated to serve the public interest. • Maintain, improve and regulate the use of the declared ports to such extent as appears expedient in the public interest. • Provide for the declared ports the approaches thereto and the territorial waters of The Solomon Islands such pilotage services and aids as appears best calculated to serve the public interest. VISION: To become South Pacific’s gateway to the world. MISSION: To be the port operator of choice in the South Pacific, providing world-class logistics services, shipping and port management. VALUES: Professionalism, progressive leadership, commercial stewardship, strategic innovation, employee wellbeing and diversity, and corporate citizenship.

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From here, he moved to the Solomon Islands and became CEO of SIPA in February 2017. “My family has a maritime background,” Kotelawala explains, “My father and brother both have roots in the profession. Yet one of the main reasons why I myself followed suit was the numerous technologies rising to the fore across the sector. “The whole state of play is changing, and it’s truly an exciting time.”

SOCIOECONOMIC ENTERPRISE In the face of transformation, the role of ports has shifted dramatically. Previously renowned as simple harbours, modern ports are now sophisticated strategic multimodal distribution hubs, highly capable of linking the sea with air, rail and road logistics. Such can certainly be said of both the Port of Honiara and Port of Noro – Solomon Islands’ two key transhipment facilities. The former, situated on the northern edge of the country’s core landmass, is the larger of the two, 70 | Asia Outlook issue 41

“OUR PORTS ACT AS THE PRIMARY GATEWAY TO SOLOMON ISLANDS... THEY’RE ABLE TO CAPITALISE ON TRADE ROUTES BETWEEN AUSTRALIA, NEW ZEALAND, JAPAN, CHINA, THE US AND SOUTHEAST ASIA” featuring both dedicated domestic births and two key international berths compared to Port of Noro’s one mixed berth. “These ports and SIPA have come a long way since their inception,” explains Kotelawala. “Looking at the South Pacific, SIPA is the second largest port authority in terms of the square footage that it has under its portfolio, and is one of the most profitable port-operating entities, despite the fact that we’re one of the only state-owned organisations in the region. “Our ports act as the primary gateway to Solomon Islands. Owed to our naturally geostrategic location, they’re able to capitalise on trade routes between Australia, New Zealand, Japan,

China, the US and Southeast Asia, and play a vital role in the economy, propelling development and acting as a major employer for local people. “We currently have 500 staff under remit alone, let alone the indirect employment that our work helps to support.” This growing role is further reflected by a memorandum of understanding signed last year between SIPA, Maersk Line (the world’s largest shipping company) and US firm Tri Marine – one of the largest tuna exporters in the world. Famous for its fresh fish, timber and a number of other commodities, the collaboration at Port of Noro has allowed both shipment businesses to become the Solomon Islands’ major tuna exporters, helping to consolidate

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Asia Outlook issue 41 | 71

SOLOMON ISLANDS PORTS AUTHORITY WE RECENTLY INVESTED $15 MILLION IN STATEOF-THE-ART LED LIGHTING FROM AUSTRALIA, PROVIDING US WITH THE LARGEST LED OUTPUT OF ANY PORT IN THE SOUTH PACIFIC RIGHT NOW...”

the country’s role within the global value chain by supplying local produce to the rest of the world.

ON THE SMART PORT PATH Accompanying such agreements have been substantiated investments from SIPA, Kotelawala highlighting how a number of the aforementioned technologies, amongst others, have been implemented to great effect. “We recently invested $15 million in state-of-the-art LED lighting from Australia, providing us with the largest LED output of any port in the South Pacific right now,” he reveals. “Alongside a newly implemented CCTV system, these lights are connected through the country’s first fibre optic network.” The former constitutes part of a wider Green Port initiative being pursued by SIPA in an attempt to reduce the country’s energy consumption, owed to LEDs consuming minimal energy in comparison to other forms of lighting.

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The company has also installed 150 solar powered lights across both of its ports to this end and is planning a 1 MW solar farm in Port of Noro to this end. This is not all, however. In addition, the company has recently commissioned a new terminal operating system and building system to better cater to all industry stakeholders con-

nected with both Honiara and Noro, striving towards smart port status. The CEO explains: “We’re investing heavily in the digitalisation of our operations. We are the first in the region to install a state-of-the-art weigh-inmotion (i-win) system that weighs all the cargo both arriving at and leaving from our ports, for example.

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Asia Outlook issue 41 | 73

SOLOMON ISLANDS PORTS AUTHORITY “Meanwhile, we’re also planning to implement smart-gate entry systems and mobile-enabled booking systems for the trucking companies that we work with, and an x-ray scanning system to more effectively monitor the cargo that we deal with in the future as well.” CSR

GIVING BACK SIPA actively invests in people, ensuring it fosters a professional workforce and creates a familyorientated, enviable workplace environment. These employeeinvestment programmes include but are not limited to: • A vehicle payment scheme, helping to reduce a reliance on public transport and reduce the pressures of family life. • Clinic privileges, operating an in-house clinic for both its employees and their families, offering free medical supplies and consultations from two experienced medical practitioners. • Recreational activities, running an annual sporting event and maintaining its Ports Playground that allows employees to play football, netball and volleyball at their discretion. • Study or training leave, upholding employee development as a priority. • A funeral scheme, footing almost all funeral costs for all immediate family members of employees to ensure they are looked after in times of mourning. • Free lunches, setting people up to work effectively until the end of the business day.

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ADVOCATING GREATER INDEPENDENCE The most important aspect of these game-changing strides in the eyes of the CEO is that they are all funded by SIPA itself. Self-sufficiency is a core element of the company’s overriding mandate, not only in the way that it operates, working in a debt-free manner, but equally in the vision that it has for the entire country. Kotelawala himself is SIPA’s sole expat, the CEO preferring to impart knowledge and provide ambitious career opportunities for local people. “We have a lot of talent retention strategies and training programmes geared towards furthering employee development,” he affirms. Evidence of this comes from the Solomon Ports Internship Programme. Assisting degree-level students with work placements, it is a scheme that provides successful applicants with on-the-job insight into each of the organisation’s departments.

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Asia Outlook issue 41 | 75

SOLOMON ISLANDS PORTS AUTHORITY

“We often send our workforce on international excursions to other ports around the world, allowing them to witness best practices and new techniques first-hand,” Kotelawala adds. “The idea is to see what may or may not work for us and introduce new techniques or processes within our own operation as they fit.” In addition, the company recently embarked on a new leadership programme with a number of new locally recruited managers and has been pursuing a female empowerment programme, employing women in traditionally male dominated roles such as engineering, operations and security. Long term, the idea is that the authority will stand as a prime example of Solomon self-sufficiency, operated, owned and run by local people in a profitable and effective manner – 76 | Asia Outlook issue 41

“THE FACT THAT WE’VE BEEN ABLE TO ACHIEVE ALL THAT WE HAVE, BECOMING A STALWART OF THE SOLOMON ECONOMY IN THE PROCESS, IS OWED TO THE FANTASTIC TEAM, PARTNERS AND STAKEHOLDERS THAT WE WORK WITH” efforts complemented by an extensive corporate social responsibility programme. The organisation takes an obligatory stance on impact investment. As a state-owned enterprise, it remains focused on helping local communities in a multitude of ways, from the backing of the religious community to supporting grassroots sports and pursuing education investments. “We are very much dedicated to these practices,” Kotelawala affirms. “We’ve been working with rural

schools, for example, providing them with computer labs. There are some children who don’t have as many opportunities as others from the word go, but we’re looking to change this by offering up equipment and scholarships.”

TAKING PRIDE IN NEW, EXCITING STRIDES This extensive CSR platform, major technological transformation and an underlying emphasis on self-sufficient port operations combined, the future looks bright for SIPA.

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Tradco Shipping Limited has been providing ship agency business in the Solomon Islands for over 35 years with locations in Honiara, Guadalcanal and Noro, Western Province. Tradco provides services whereby we are responsible for handling shipments, cargo, and general interests of the customer, at Ports and Harbours, on behalf of ship owners, managers and charterers. We currently act as agents for Swire Shipping, Sofrana/ANL, fuel bunker vessels, bulk carriers as well as cruise liners.

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The organisation has seen a steady five percent increase of TEU vessels annually, now dealing with in excess of 500 vessel calls and 31,000 TEUs each year, testament to the success of the national maritime industry, As a result, owed to these rising cargo volumes that both the Port of Noro and Port of Honiara have been handling, SIPA’s major focus for the remainder of 2019 and 2020 will be expanding capacity, not only via process optimisation but equally through physical expansion. “For the next year, our main focus will be on improving our infrastructure,” Kotelawala affirms. “For any port, anywhere in the world, sound infrastructure is key to effective operation and management. We’ll be looking to add new jetties and new berths and rehabilitate the older ones, both for international and domestic purposes.” The container terminals will also receive renewed attention – facilities that

We are located on the ground floor of the City Centre Building, Mendana Avenue, Honiara, Guadalcanal, Solomon Islands.

will be similarly crucial in enabling the region to accommodate for a greater number of containers. “We recognise that we need to be proactive,” the CEO adds. Looking to the longer term, bolstered capacity is not the sole ambition of the SIPA. Citing optimism about the Solomon Islands’ position in the regional transhipment industry and recognising the fundamental role and impact of port development strategies on the national economy, Kotelawala concludes with a buoyant outlook. He states: “Port of Honiara will remain our primary asset, but we’re excited about some of the upcoming improvements which will take place at Port of Noro. It’s a relatively small facility right now in the grand scheme of things, but we’ve seen its volumes almost triple in the last eight or nine months. “I’m also personally hopeful that

we can continue to set an example for the rest of the region. I think we’re proving that state-owned enterprises don’t need to be privatised if they’re managed successfully, and that they can indeed become a real asset to any country’s economic development. “The fact that we’ve been able to achieve all that we have, becoming a stalwart of the Solomon economy in the process, is owed to the fantastic team, partners and stakeholders that we work with – I am truly grateful for each and every one of their continued efforts.”

SOLOMON ISLANDS PORTS AUTHORITY Tel: (Honiara) +677 22646 Tel: (Noro) +677 61041 www.sipa.com.sb

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KIT LOONG COMMERCIAL TYRE GROUP

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Keeping the Wheels in

MOTION Kit Loong Commercial Tyre Group is helping companies across Malaysia to remain on the road, its comprehensive offering underpinned by unrivalled expertise, brand partnerships and technology Writer: Tom Wadlow | Project Manager: Josh Mann

Asia Outlook issue 41 | 79

Camelback Compound

Precured Tread Liner

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Maximising Value Delivering Quality

Orbitread Compound

Tyre rubber compound manufacturers and prominent tyre retreaders in Malaysia un Rubber Industry (M) Sdn Bhd has been Malaysiaâ€™s leading Rubber Compound manufacturer for more than 5 decades. We are subsidiary of Sunrich Integrated, a member of Singapore Ecowise Group. Sun Rubberâ€™s commitment to provide excellent standard of service, highest quality of products and reasonable pricing to customers which have resulted in consistent growth over the years. Sun Rubber is engaged in the designing, research and development, manufacturing, product testing and

distribution of rubber compounds. We supply throughout Malaysia and worldwide covering Asia Pacific, Europe and Middle East. Our range of products includes, precured tread liner, cushion gum, repair rope, orbitread compound, camelback which is used widely in retreading industries. Besides that, Sun Rubber also produce customized and speciality rubber compound for other industries such as mining, automotive, industrial and others.

T +606-675 9988 | srexport@sunrich-ew.com | www.srit.com.my

KIT LOONG COMMERCIAL TYRE GROUP

oads, despite their comparative antiquity versus the likes of air and rail, are a backbone of commerce. A critical element of a global multimodal transport network that millions of businesses rely on to move goods and people from A to B, highways continue to form key components of industrial strategies adopted by governmental authorities. Malaysia is no different. Home to a mature road network which supports almost all industrial activity, the country is embarking on an improvement drive to make doing business even easier. And progress is being made, both pushed from the government through projects such as the Third Industrial Master Plan (IMP3), as well as businesses who are looking to make Malaysia a competitive hub within Asia. Indeed, the nation is already home to 1.2 million commercial vehicles which rely on its roads to serve their companies, and keeping these cars, vans, trucks and HGVs roadworthy is also big business, the tyre and related services market worth more than RM3 billion ($720 million) a year. For Kenneth Teh, Group MD of Kit Loong Commercial Tyre Group, the sector represents a vibrant, fast-moving field of work that is subject to constant evolution. “The increase of imports from China has obviously been a real disruptor to the established world-renowned tyre companies, who still have very strong brand kudos here, but are now operating in a system where they are fighting to outline value versus cost. Unfortunately, they are not as organised and consistent in this market as they need to be,” he explains. “We are finding this is the most interesting development. Standalone cost became the key measurement for a while, but we are seeing a shift to operations starting to look at the wider picture.” Safety, in particular, forms part of this wider picture. 82 | Asia Outlook issue 41

Kenneth continues: “Safety is of paramount concern everywhere in the world, but particularly in Malaysia with our highly mixed road traffic composition and network of mostly two-lane highways. The commercial vehicle industry is very attentive to this and playing a big role in increasing the safety of its vehicles, particularly when it comes to tyres. “The government here is heavily looking to enforce more stringent measures around road safety and is hoping the wider transport community will pick up newly introduced standards, such as ISO39001:2013 on road traffic safety management systems.” And it is this which prompts Kenneth to outline three major challenges

facing the tyre industry in Malaysia, challenges which Kit Loong Commercial Tyre Group is actively addressing through its own activities. The first is a lack of discipline and knowledge, and resultant lack of 100 percent adherence to regulation, while the second revolves around brand and product confusion, a problem which leads to wastage when tyres are used for the wrong application or if the right maintenance programmes aren’t in place. “The final challenge is modernisation,” Kenneth adds. “Technology is playing an increasingly important role in the sector, but it is still in its fledgling stage in Malaysia. Adoption of available technology is slow, mainly due

INTRODUCTION

ABOUT KIT LOONG COMMERCIAL TYRE GROUP Kit Loong Commercial Tyre Group is a complete tyre management solution operating throughout Malaysia. The company distributes and supplies new tyres as well as retread solutions for dealers and users of commercial and industrial vehicles. This product offering is part of a wider value-added service offering that, developed from extensive knowhow and driven by technology such as the KLConnect platform. VISION: Increase safety, reduce usage – “our vision is to manage commercial tyres with the best safety practice at the lowest cost per kilometre (CPK) and delivering convenience to our customers.”

un Rubber Industry Sdn Bhd is a subsidiary of Sunrich Integrated, a member of the Singapore based ecoWise Group.

Sun Rubber specialises in the production of international-grade precured tread liners, cushion gum, gum cord, sidewall veneer, orbitread compound, camelback compound, masterbatch and customised compound; as well as specialty or technical rubber compound for the automotive, mining and other industries. Our products and services are distributed to well over 30 countries spanning across Asia Pacific, the Middle East and Europe. Sun Rubber’s primary objective is to uphold its commitment to its customers through exceptional service, quality products, timely delivery and competitive pricing. This commitment has given us the recognition of being Malaysia’s leading rubber compound manufacturer for over five decades. Our sustained growth is testimony to our ability to facilitate the operational; efficiency and business growth of our customers through customised specialty compounds. Investments in R&D combined with industry experience enables us to operate and advance in a demanding market where customers demand customisation and satisfaction.

Sun Rubber Malaysia Sdn Bhd has also won several awards such as: • THE SMB BEST OVERALL AWARD • THE GOLDEN BULL AWARD • THE ‘ENTERPRISE 50’ AWARD BY SMIDEC • “THE BEST BRAND NAME AWARD” BY THE RUBBER RESEARCH INSTITUTE OF MALAYSIA

As a leading supplier of raw material for the retreading industry, Sun Rubber is uniquely positioned to effectively contribute towards the sustainability of the environment. Considerable efforts are channelled towards the expansion of recyclable products. Retreading is a highly practical and efficient form of recycling. Retreading also reduces pollution, conserves oil, reduces energy expansion as well as preserves nature’s resources. Sun Rubber’s commitment is to provide excellent standard of services, highest quality products and competitive pricing to customers. This has resulted in consistent financial performance over the years.

Recognition of quality is a primary indicator of value, sustained growth and improved performance. As such Quality is pivotal to Sun Rubber, evident from the meticulous dedication toward assuring consistency. Sun Rubber has well-structured quality management systems and was among the first in the industry to be certified according to the ISO 9000 series. Sun Rubber also achieved ISO 9001:2008 in 2009.

T +606-675 9988

E srexport@sunrich-ew.com

www.srit.com.my

KIT LOONG COMMERCIAL TYRE GROUP

to prohibitive costs currently, but the industry knows it needs to adapt, and is working to find solutions that apply well to Malaysia.”

KNOWLEDGE IS POWER So, how is Kit Loong Commercial Tyre Group addressing the three challenge points highlighted by Kenneth? In the area of discipline and knowledge, the Group MD points to decades of experience and accumulation of knowhow. “Old, hard-won knowledge over 88 years of operation, getting the right product and enforcing the highest standards, along with understanding our customers’ operation through big data and technology to give clear, consistent advice, are what stand us apart,” says Kenneth. “Our team’s knowledge, with our dedication to helping clients enforce key standard operating procedures, 84 | Asia Outlook issue 41

mixed with a compulsive focus on honesty, is what makes us who we are.” This is evident in the company’s safety-first approach to business (SC3), achieved through Competitiveness (operational efficiency), Cost effectiveness and tighter Control. For instance, it helps customers choose the optimum tyres for their fleet via its diagnostics assistance service, while also providing complete outsourced maintenance or ad-hoc maintenance support, what Kenneth sees as the most critical element of any fleet’s drive to prolong tyre life. Spreading intel is also paramount to solving the knowledge and discipline conundrum. Here, Kit Loong Commercial Tyre Group can provide over 400 hours of training, covering topics from the importance of tyre maintenance through to practical courses on tyre repair procedures and importance of proper inflation pressure.

This, alongside seminars for company owners and industry representatives, helps to portray the message that a focus on safety leads to a more profitable organisation. Kit Loong Commercial Tyre Group also draws on the knowledge and brand power of its manufacturing partners, helping to answer the second challenge surrounding product confusion and wastage. “The products are important, but as part of a wider sustained effort to create longer life, such as SC3OCT,” says Kenneth. “We work with most major brands as one of the largest commercial tyre distributors across Malaysia – these include Michelin, Goodyear, Bridgestone and Continental, as well as up and coming brands such as Giti and Triangle to tailor our offer to the needs of our customers. “We base our decisions on what will deliver the best cost per kilometre for

SUPPLY CHAIN

COMPANY HISTORY

A MALAYSIAN MAINSTAY The Kit Loong Group is a family business established by Kenneth Teh’s grandfather, Teh Kim Hye, in 1931. Beginning life as a tyre repairing, retreading and trading operation, the company began retailing new tyres in the 1950s, establishing a full partnership with Goodyear by the end of the decade. This prompted a sustained period of growth which also saw it become the sole Malaysian distributor for Michelin until 2006, as well as forming partnerships along the way with Continental, Bridgestone Japan and Giti Tyres. “After finishing managing the Michelin distribution business in Malaysia for 10 years, I decided to start Kit Loong Commercial Tyre Group in 2009, which is a total-service provider for commercial tyres only,” recalls Kenneth. “This is now independent from the wider Kit Loong Group, which continues to focus on passenger tyres and tyre workshop machinery today. “Kit Loong has, and always will, pride itself on our values of trustworthiness, honesty and professionalism. We have continued to grow from strength to strength but feel the future has even more to hold for the company.”

any operation. This means addressing the fleet needs and company culture but without sacrificing safety, which is always the key standard we operate by. Beyond brand partnerships, Kenneth is quick to praise the wider sup-

plier network that the company relies upon in its everyday operations, many of them being long-term partners to the business. “We know we operate in a super-connected and interdependent

industry, so we rely on them and them on us for continued success,” he continues. “Alongside this, our client relationships are just as important. For us, the key to the whole supply chain is knowledge sharing between all parties to make the whole greater than the sum of its parts. “However, we face an interesting challenge in Malaysia in how to share our knowledge beyond our suppliers and clients. We see a lot of initiatives with great intentions from the government and public bodies, but the issue is always how to effect change. “We are working hard on finding methods to share knowledge, offer support and contribute our knowhow to the improvement of the industry in general, but it’s not always easy in a market that can be quite traditional and resistant to change on the ground.”

CONNECTED BY TECHNOLOGY Technology may prove to be a facilitator of the knowledge sharing mission referred to by Kenneth, who circles back to the third challenge faced by the industry, which is the relative slowness of digitisation. Again, Kit Loong Commercial Tyre Group is meeting this head on thanks to its embracement of digital solutions, no better demonstrated than by its platform KLConnect. Described by the Group MD as underpinning everything the company does, the system tracks a tyre’s life from cradle to grave. Automated alerts for routine and immediate maintenance are provided to clients based on tyre condition and length of time on the vehicles in question, while data can also be analysed to determine whether casings are suitable for retread. Such data can be presented in real time to clients through various devices, with full reports provided on a tyre’s durability over its life, meaning clients can make better decisions when choosing which tyres to use in the future. Asia Outlook issue 41 | 85

KIT LOONG COMMERCIAL TYRE GROUP

KLConnect also powers Kit Loong Commercial Tyre Group’s new, ultramodern retreading plant in Shah Alam. A vital part of prolonging a tyre’s life, retreading carries with it both environmental and financial benefits for commercial fleets. “We spent many years investing and learning from renowned brands to make sure we have the most efficient retreading plant in Malaysia, if not all of Asia,” comments Kenneth. “We now have a capacity to produce over 1,000 pieces a day, but the key to our success is the efficiency of the plant, powered by our KLConnect technology and aided by ISO process compliance. “Retreading a tyre saves roughly 70 percent of the energy and natural resources of a new tyre, and a lot of people don’t know that tyre casings are made to be retreaded roughly two to three times – with passenger vehi-

86 | Asia Outlook issue 41

cles it is rare, due to the cost and infrequency of tyre replacement. However, for commercial vehicles where costs and CSR are critical, retreading should make up a large part of a company’s tyre mix. For instance, 80 percent of all aircraft tyres are retreads.” The plant is loaded with four Spectra detector machines, three shearography machines, three Matteuzzi computerised buffing machines, three AZ hot feeding extruders, six curing chambers, one of which is industry 4.0 ready, (IoT connected) and three high pressure test machines, Kit Loong Commercial Tyre Group operating three models when it comes to retreading. Customers can either send their own casings or sell casings which the company then upcycles and sells to other buyers, the third model involving projects for international tyre manufacturers and private brands.

FUTUREPROOFING This state-of-the-art facility will no doubt serve to cement the company’s position as a complete tyre management solution for commercial tyres in Malaysia, Kenneth’s major ambition for 2020 along with the further enhancement of KLConnect, which is entering phase two of development that will see it launch as a standalone softwareas-a-service product. “Alongside this we will be re-launching our tyre rescue service Kit Loong 24-seven,” he adds. “This will become an ‘all you can eat’ subscription model to give our customers peace of mind that they are always covered for one fixed cost. “We are also driving home our safety message by providing free training and seminars to the industry on the importance of getting it right. Mobile retail is another area we’re looking at

SUPPLY CHAIN

KL Sigma, Kit Loong Commercial Tyre Group’s tyre management concept (left) defines and manages the five external factors affecting potential tyre life. These include: • Tyre and related products (KL Compass) Maintenance & Services (KL Catalyst) • Outdoor Tyre Rescue Service (KL 24-seven) • Scientific Knowledge (KL Competent) • Overall management with our dealer partners, as physical stores are no longer the be-all and end-all.” The company’s ambitions also carry an internationalist outlook. It already works with several suppliers on outsourced projects worldwide, and Kenneth hints at the potential to work across the region in a franchise model when the moment presents itself, with Thailand and China identified as candidates for future expansion after its

domestic goals have been fully realised. The luring of Group Marketing Manager Michael Hutt to the business in June 2019 is also testament to its forward-thinking ethos, his words providing a fitting conclusion to why Kit Loong Commercial Tyre Group will be setting the agenda in Malaysia (and beyond) in years to come. Hutt says: “Having worked in marketing for the best part of nine years across Europe and the USA, I was living in

Malaysia when I was introduced to Kenneth Teh. Having not worked in tyres before, I was a little apprehensive that I didn’t have the industry knowledge. “However, after meeting Kenneth I was massively enthused by his forward-thinking mentality and plans for the next five years, essentially aiming to bring the tech world to the tyre industry. “Having a background in tech, I saw a fantastic opportunity to work in a still-growing industry and bring new assets and business models to a sector that was prime for this type of disruption. Kit Loong has a fantastic network and a very strong base from which to grow and develop.”

KIT LOONG COMMERCIAL TYRE GROUP +60 3-5122 2418 www.kitloongtyre.com

Asia Outlook issue 41 | 87

INCHCAPE SHIPPING SERVICES

Global, Local, Transparent By adding a global, technology-enabled layer of transparency to shipping agency operations, Inchcape Shipping Services continues to gain the trust of clients to manage their vessels and cargo the world over Writer: Tom Wadlow | Project Manager: David Knott

88 | Asia Outlook issue 41

SUPPLY CHAIN

round 6,000 years ago Egyptians navigated 100-metre-long boats up and down the Nile. Powered by oars and featuring sails, these wooden vessels carried enormous obelisks and were a serious feat of engineering for their time, so much so that very little evolution in boat mechanics occurred until the advent of steam propulsion. The British East India Company took full advantage of this long-awaited breakthrough, initially using steamships to help manoeuvre large sailing ships into the narrow harbours of India before reducing travel time between Asia and Britain. In 1856 the Company awarded a contract to carry mail between Calcutta and Rangoon to the Calcutta & Burmah Steam Navigation Company, which incorporated in London and became an agent for the new ship-

ping line. This was the work of William Mackinnon, who, together with Robert Mackenzie, formed a general merchanting partnership named Mackinnon Mackenzie & Company (MMC). It is the formation of this company in Calcutta in 1847 that the Inchcape Group proudly traces its origins. Exponentially growing its influence between Europe, Africa, the Middle East, Asia and even Australia, MMC became a crucial enabler of British sea trade, the Inchcape name taking over in the 1950s and continuing to serve as agents for a trAfricandous array of clients to this very day. But, much like the steamship’s oarand sail-powered predecessor, the nature of shipping agency interactions remained relatively unevolved through this protracted period during and after colonial trade across the seas. The formation of Inchcape Shipping

Services in 1993, however, marked an important turning point. “We’ve been in the industry for over 170 years, and the issues around shipping have always been that what happens in faraway lands has always been a faraway thing,” explains Frank Olsen, the company’s present-day CEO. “There has not always been enough information, communication, control or transparency, and therefore a lack of trust, in what is occurring in places which are hundreds, if not thousands of miles away.” Inchcape Shipping Services was therefore formed to integrate what was then a loose federation of ship agents into a robust, transparent international network with defined and common service standards worldwide. “Today we are driving both operational and financial transparency to the process, using technology to

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INCHCAPE SHIPPING SERVICES underpin the way we interact and manage relations with our customers,” Olsen continues. “The idea is for the principal to feel in control and know exactly what is happening with their vessel during a port call. LEADERSHIP FOCUS

FRANK OLSEN Frank Olsen began his tenure as Chief Executive Officer of Inchcape Shipping Services in July 2018, previously serving as COO of the group’s Marine Services division. A major focus of his time in the Marine Services business was to enhance its use of technology and data, something which he has transitioned into his role of CEO. “My background in terms of getting to where I am today is quite a simple one,” Olsen recalls. “I started my career as a seafarer and master mariner on ships which journeyed around the world, and in 2007 I moved onshore in the marine service industry but was still very engaged with vessels and their activities. A lot of training and experiences later, and I am here today as CEO of Inchcape Shipping Services.”

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“Historically, the criteria for selecting an agent has been localised knowledge of the port in question, and trust in this knowledge and subsequent track record. Trust is everything, and our mantra is that you can only establish genuine trust if you have transparency first – it is not enough anymore to simply say trust me. “We will build that trust by providing the operational and financial transparency, enabled through new technology, across our unparalleled network.”

A GLOBAL-LOCAL DYNAMIC Inchcape Shipping Services thus delivers a service which combines the benefits of a local agent on the ground with a global layer of extra value powered in many different ways by technology and its unique global network. The two facets are intrinsically linked (one cannot survive without the other) and this is shown by three core pillars which define the way Inchcape operates today – global, technology and people. The first pillar centres around a huge global network, made up of 300 offices in 68 countries across 2,500 ports and built up over 172 years of history, a uniquely developed asset that is extrAfricaly difficult to replicate in what is still a very fragmented market. Indeed, it is the largest owned proprietary network of any shipping agency. “This is something we’re extrAfricaly proud of, but more important for us is changing the relationships of our customers from a collection of local relationships to a global partnership,” Olsen adds. “These are transacted at a local level in lots of different locations, but there is commonality, and that is the global layer of value that means the whole is greater than the sum of the individual local parts.” Olsen is not suggesting that the individual parts, which include the company’s huge supplier network, are in any way understated in their significance to Inchcape’s operations.

Port Phillip Sea Pilots Port Phillip Sea Pilots (PPSP) has been providing an essential safety service to the state of Victoria since 1839. It is unique in its history, structure and importance to the State. We provide an on demand professional pilotage service to shipping for Melbourne, Geelong and Western Port, 24 hours a day, 365 days a year. Port Phillip Sea Pilots takes pride in its safety record with over 6,000 movAfricants per year in nearly all weather conditions. Since Captain George Tobin founded the Association in 1839, Port Phillip Sea Pilots has continuously provided a safe and efficient pilotage service. Since our first cruising pilot ship “Boomerang” took up station outside the Heads in 1853, PPSP has been at the forefront of the latest developments in pilot vessels. Our present fleet of modern ORC boats provide safe and efficient transfer of pilots in nearly all weathers. Port Phillip Sea Pilots has worked closely with the Ports of Melbourne, Geelong and Westernport in the development and expansion of the ports, increasing the size and draft of ships able to visit to maximise cargo throughput. This has involved considerable investment in training and technologies (Dynamic Under Keel Clearance and High End PPUs) to ensure these large vessels safe and efficient access to the port. Our highly trained pilots come from command positions at sea with a broad range of backgrounds enabling us to provide expert advice on any pilotage issues. We also provide technical advice and support on pilotage/marine issues to harbour masters, msv and agents. We are proud of our 180 years of service, our traditional independence and professionalism in providing a service to shipping and to the state of Victoria that is first class.

www.ppsp.com.au

Port Phillip

Sea Pilots

Pilot Station (24 Hours) Queenscliff, Victoria Australia Phone: 03 5254 5500 Email: operations@ppsp.com.au Web: www.ppsp.com.au

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INCHCAPE SHIPPING SERVICES “The importance of our partners, of course, cannot be understated,” he says. “Fundamentally, our job is to coordinate suppliers on behalf of our principals, so we would be nothing without our huge supplier base. “A key component of our value proposition to our principals is that we work with extrAfricaly professional and reputable partners, with whom we enjoy a long and stable relationship. “A lot of time, effort and resource has gone into making sure we build up the best supplier network we can, and our strategic sourcing and procurAfricant team reports directly into me. This team, managed centrally, has contacts in all of our countries and ensures that our supplier relations are built around value, not just cost.” Through this network, Inchcape is able to provide a full suite of financial and physical services, from full port agency and husbandry services to crew logistics and bunker calls.

TECHNOLOGY = TRANSPARENCY The second pillar, technology, powers Inchcape Shipping Services’ raison d’etre – to integrate the individual parts into a transparent, global ecosystem. “Technology is the enabler of the global advantage Inchcape provides,” Olsen says. “While I wouldn’t say we are a technology company, I do believe it has a massive role to play in enhancing the value shipping agents can provide to their principals.” Data is the lifeblood of this. Now

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widely dubbed the new oil, it is once more the sum of the individual pieces which combine to make a greater, transparent whole for Inchcape’s principals. And there are millions of data points which are collected and analysed to make this work. As an agent, the company manages 70,000 port calls a year which equates to more than 100,000 individual jobs. This means Inchcape is able to collect and analyse mountains of valuable information, data which Olsen splits into three broad categories. “The first is performance benchmarking data that we can provide customers,” he explains. “For example, your oil tanker calls into a certain terminal at a certain time of day, but the process is not as efficient as a similar vessel calling at a different time or at a different terminal. Why is that? We begin to ask these questions based on the data we have on ship types, terminal types and timings. Our operating system, Optic, enables this.” Second, and equally significant, is the information gathered through a system called World of Ports. Inchcape has operated this for a number of years as a static dataset covering berthing and terminal data for dry and wet berths around the world, a very useful tool for companies looking to charter ships into ports to make sure vessels are compatible with terminals and berths. “What we’ve done now, in order to make the dataset more dynamic, is geofenced every single berth within that dataset, meaning we can now see when a ship that falls outside of the stated parameters makes a call,” Olsen adds. “In these cases, the most likely scenario is that the data for that berth has not been updated since it has been upgraded or expanded by the port. This means we can continuously update the dataset, making it a unique offering that nobody else offers.”

Adzalia Services Ltd A family company operating in Trinidad and Tobago for over 20 years. Efficiently serving global clients within this fast paced environment. Providers of: • Ground transport • Ship chandlery • Ship’s spares clearance • Yokohama fender rental • Sanitation services • Any other services as required We are committed to providing affordable maritime logistics catering to our clients’ individual requirAfricants.

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Blue Marine Transportation We are proud to have partnered with Inchcape Shipping Services, the worldwide leader in agency services since the 1980s, to meet the needs of our maritime industry with excellence. Looking forward to the future, we are excited to work on innovative ways to improve our services, while lowering our clients’ cost with new technologies, safety protocol and employee training.

Frank Rulh, President (504)616-4433 William Crouchet, General Manger (504)236-4451 Dustin Rulh, Operations Manager (504)939-9170

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SUPPLY CHAIN

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INCHCAPE SHIPPING SERVICES

Ships Waste Oil Collector Ships Waste Oil Collector is the largest and leading collector of ships waste at the ports of Rotterdam, Amsterdam and Antwerp in the field of liquid and hazardous waste from Annex I to Annex VI vessels.

Such data is also being linked to other data heralding from outside of the port, what Olsen classifies as market intelligence, the third category, and another way of adding dynamism to Inchcape’s vast pool of information. The result is that principals are able to ask and find answers to questions that need answering in order to make well-informed judgAfricants. “For instance, what ships are in the line up?” Olsen asks. “What are those ships carrying? How much cargo are they carrying? Where are they coming from? Who are the actors involved? We’re not a data company, but we have unique access to public domain data which we can verify at course thanks to our network of ‘eyes and ears’ at the ports. “Ultimately, we are enabling our customers to make better decisions more quickly.” Central to Inchcape Shipping Services’ ability to use technology as vehicle for transparency is our application, Optic as mentioned earlier. The company is in the early stages of rolling out the solution, the basis of it being a system that provides operational transparency at port level based on a vessel programme, an expected series of events that should happen to a ship as it makes a port call. “As a customer, you can see what is happening and when something requires your attention, the system will inform you that an event has occurred outside of the parameters that you set,” says Olsen. “You are not waiting at the end of the phone to hear if everything is ok… or not.” 94 | Asia Outlook issue 41

Rather, our principals are able to monitor progress through a range of devices such as smartphones, laptops and tablets, via an app or integrated into an ERP system. Optic can also be applied to a single vessel or entire fleet sailing around the world, offering unrivalled visibility at virtually any scale. Payments are another important elAfricant of shipping agency, and Inchcape is working on a digital payment platform to ensure all money exchanges are transparent, traceable and accountable. This highlights the importance of global, consistent levels of corporate governance. Be it the payments process or handling of principals’ data, Inchcape Shipping Services has developed a company-wide compliance programme which is widely recognised as pioneering in the industry. Local agents who are part of the Inchcape network are well-versed in these standards, combining this with their local knowledge to represent the safest possible bet for clients, a key differentiator for the company over its competitors. Compliance has historically been something of a taboo subject in the industry, but Inchcape is ensuring the dynamics of the conversation are changing. Olsen adds: “There are lots of large enterprises still choosing smaller, local agents who perhaps do not have the level of global governance that Inchcape carries, simply because they don’t have the scale to justify the investment. We believe it has to be taken

For the collection of liquid hazardous waste, the company uses the most modern vessels and highly trained personnel. It is the only collector in the ports of Rotterdam, Amsterdam and Antwerp, which features 3 C type barges. The firm’s total collection capacity is 8,500 tonnes.

T+31 10 2957154 E info@shipswaste.nl www.shipswaste.nl

SUPPLY CHAIN

Ships Waste Oil Collector B.V. Your dedicated partner for disposal, transport of liquid ships waste in the Rotterdam, Amsterdam and Antwerp area. Reliable and durable! We are the one of largest collector of ships waste at the port of Rotterdam, Amsterdam and Antwerp in the field of liquid waste from Annex I to Annex VI. Because of the strategic alliance with port reception facility MTD in Antwerp, we are able to operate in the entire port area of Rotterdam, Amsterdam and Antwerp. This allows us to work efficiently and environmentally friendly. Actions rather than words.

Ships Waste Oil Collector: • Meet the requirements and needs of our stakeholders • Personal and work closely with our clients • Use modern equipment according to the prior art • Have the appropriate outlets For the collection of liquid waste, we use the most modern vessels and highly trained personnel. We are the only collector in the port of Rotterdam, Amsterdam and Antwerp, which features 3 C type barges. Therefore we are fully equipped for future legislation and regulations in our field. A selection of our collection fleet is shown below. Our total collection capacity is 8,500 tons. For further information do not hesitate to contact our office. Ships Waste Oil Collector B.V., Chemieweg 10, 3197 KC Rotterdam-Botlek | Tel: +31 10 2957154 | E-mail: info@shipswaste.nl | Website: www.shipswaste.nl

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INCHCAPE SHIPPING SERVICES

VISION, VALUES AND MISSION VISION: A connected world in which our customers trade successfully and make better decisions in every port, everywhere. VALUES: We connect the world and see the bigger picture. We rely on the strength of local agent knowledge and relationships. We adopt new thinking and push for positive change in our industry. MISSION: To use technology and our global network to help our partners connect to a smoother, smarter, ocean.

more seriously and can offer both the advantages as a local operator with global governance.” This naturally leads the conversation onto the topic of cybersecurity, another critical elAfricant to the governance piece. Inchcape Shipping Services relies on an advanced IT security setup and a rigorous training programme to ensure all employees operate within safe parameters. Once more, the integrated nature of the company’s network delivers another point of difference. “The biggest risk here is having multiple entry points into your system,” explains Olsen, “so if you have agents spread all over the world, you are giving access to your systems to people you may not have vetted. Our advantage is a single point of entry, and one which principals know and can trust.”

POWERED BY PEOPLE While technology has been proven to provide a digital differentiator, its value would be severely diminished without skilled employees to harness it. Indeed, people make up the third 96 | Asia Outlook issue 41

Inchcape Shipping Services pillar, be they local agent partners on the ground or the company’s own staff spread around the world. “We are an asset-light business, so having the best people is paramount to our success,” Olsen says. “Key to this is our in-house training programme, something we are very proud of. It is predominantly digitally based, providing extensive learning opportunities for all staff, be it mandatory programmes in compliance to more vocational and career-based modules.” Named the Inchcape Marine Academy and in operation for around 10 years, it has been created by a combination of in-house experts and knowledge contributions from outside of the company. Currently the academy houses around 170 courses, with each employee on average undertaking one learning course per month. Although described as asset-light by Olsen, the advanced technology and skilled people combine to make a formidable resource for Inchcape, a setup which leaves the CEO optimistic as the company moves into the next chapter of its story.

“We are witnessing change in the industry,” he observes. “The global nature of what we have been discussing is becoming more prominent and is being valued more by different industries. “For example, oil and gas majors have for quite some time been interested in risk mitigation from a governance point of view – they have been the first ones to adopt this hub methodology that has been introduced by global agents in the past couple of decades. That same motivation is permeating other client bases in the shipping industry. “We therefore believe the need for working with a global agent who can provide safety and security will increase. The transparency related to this on an operational level will also need to increase. However, the requirAfricant for a good quality local agent who you can contact is still crucial – for us it is about the global and local balance, something we believe we are achieving through technology.” And it is this dynamic which Olsen believes will help the company to acquire a greater market share in years to come. Albeit a congested industry with a huge array of participating organisations, the potential to expand Inchcape’s business is sizable. Concluding optimistically, Olsen says: “This is a highly fragmented market and we believe we can significantly increase our market share. To do this we need to increasingly differentiate our products and provide a transparency-based offering built around advanced technology, backing up an experienced and unique network of people at the ports.”

INCHCAPE SHIPPING SERVICES Tel: +44 2035 138500 www.iss-shipping.com

SUPPLY CHAIN

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Asia Outlook issue 41 | 97

CR ASIA GROUP

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OIL & GAS

A Multi-Disciplined Maintenance

Mastermind Driven by a mission to become the partner of choice in delivering comprehensive maintenance solutions, CR Asia Group is uplifting industries, communities and people alike across the continent with its customer-centric contracting Writer: Jonathan Dyble | Project Manager: David Knott

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Online Cleaning Technologies is a world recognised market leader in the cleaning of boilers, furnaces, silos, electrical precips and other facilities.

WHAT IS ONLINE CLEANING?

When time is money and efficiency is paramount, Online Cleaning can provide essential maintenance without the negative impacts associated with some traditional cleaning methods. OCT Solutions

PRIMARY FIELDS OF OPERATION Energy-from-waste power plants Biomass power plants

OCT offers “shockwave solutions” using a patented system involving the safe, controlled and expert use of explosives to remove contamination and waste build-up within industrial facilities and power plants. This can be carried out while the plant remains online and fully operational.

Positive customer feedback OCT’s customers regard us as a committed, service-focused and reliable partner. Our service is available – 24 hours a day, 7 days a week. More than 70% of all energy-from-waste and power plants across Europe, UK & Ireland, USA and Australia use this service. After employing Online Cleaning and our methods which significantly reduce downtime, some customers have reported an increased turnover ranging from $250,000 to $180 million per annum.

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Power plants including black coal, brown coal and peat

OCT workers use their specialist experience to provide the best service possible. All work processes and protocols must meet strict standards for field operations. All workers are individually trained according to the requirements of each task. OCT ensures that safe standard operating procedures are adhered to at all times.

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Process Industry Melting installations e.g. Zinc, Manganese and Cement kilns

+61 (0) 405 823 215 I fred.wanschers@onlinecleaning.com onlinecleaning.com

“ SERVICE AND RESPONSE TIME WERE ABOVE AND BEYOND WHAT WE WOULD EXPECT FROM ANY CONTRACTOR ”

CR ASIA GROUP

he morning of June 23, 2018 was a special occasion, albeit a relatively ordinary day, for Peerapat ‘Night’ Sompiangjai – a 17-year-old boy living in the Thai village of Chiang Rai, two hours’ drive southwest of Bangkok. Turning up to football practice for local youth team the Wild Boars as he usually would on a Saturday, his coach and 11 teammates raced their bikes up through a trail between rice paddies to the Tham Luang cave – a nearby haunt that they often explored. Stashing their bikes and bags by the cave entrance, the group of friends clambered in with just their torches and some snacks, planning to spend only an hour celebrating Night’s birthday there before heading home. Little did they know that they would not emerge until two weeks later. After locals discovered the unclaimed belongings at the cave entrance, authorities scrambled to organise a full-blown rescue operation, calling in the elite Thai Navy Seals, specialist cave divers, police, soldiers, other rescue workers and various

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government agencies and companies, including CR Asia Group. Responding to this call to action without hesitation, CR Asia sent a series of specialised submersible pumps to Tham Luang to extract the muddy floodwaters, and five kilometres of air hoses and special low-pressure regulators to provide oxygen to various chambers in support of the rescue mission. After several days the water levels had reduced, and oxygen levels had increased enough that the rescue teams and divers were able to venture far enough into the cave, discover the football team perched within a rocky alcove and ensure their safe rescue. “After a gruelling 18-day battle against the forces of nature and a huge international rescue effort, the last of the 13 Wild Boars were extracted from the Tham Luang Cave to jubilant scenes broadcast live around the world,” states David Young, CR Asia’s Group Business Development Manager. “We are immensely proud to have been a part of this huge international rescue team.”

By no means a specialist in cave rescues, the company was called in owed to its diverse array of industrial expertise and equipment that would undoubtedly prove to be crucial to the rescue teams’ efforts. These same assets remain crucial to a vast number of asset-intensive industries across Asia, the company firmly established as one of the region’s preeminent execution contractors. “CR Asia is all about bringing people and technology together to get any job done,” says Young, “whether that’s assisting a cave rescue or delivering comprehensive maintenance solutions to the oil, gas, refining, petrochemical or power sectors.”

HONESTY, OPENNESS AND FLEXIBILITY Indeed, it is the latter that constitutes the bulk of CR Asia’s business. Operating from its four key bases in Thailand, Singapore, Malaysia and India, the company’s multi-skilled, motivated team and high-quality systems, procedures and equipment deliver everything from mechanical and plant

ince the business was formed in 2000, Online Cleaning Technologies has grown to become the Europe’s recognized market leader in the use of controlled detonative shockwave technology. With our patented, proven methods and our deep understanding of the processes of various types of power stations and industrial facilities, the services we offer are truly unrivalled. Our shockwave cleaning solutions remove fouling and other deposits, immediately increasing efficiency and throughput.

PARTNERSHIPS

Online Cleaning Technologies now has more than 200 customers across the globe and a guaranteed solution for every cleaning challenge. Using focused and controlled shockwaves, shutdowns can be prevented or postponed, instantly improving your efficiency.

Partnering with CR Asia is a perfect way for Online Cleaning Technologies to present and execute our specialized Online Cleaning services in Asia. Both leading in their own business we can offer a better portfolio of cleaning services to the Power Station business. I started the Online Cleaning business in several countries like, United Kingdom, The Netherlands, France, Spain and Australia. Since last year we are aiming to expand business into Asia, India etc. CR Asia, with their network, is a great partner. Our contact already goes back years. We both think the economy, with new upcoming markets like Waste to Energy, has the right momentum to present our service more and more. The Online Cleaning technology delivers an increase of availability, safety and performance. With existing relations and contracts for more than 10 years we try to be more than just a contractor for Power Station operators. This is also why CR Asia is a great partner for Online Cleaning Technologies.

Online Cleaning Technologies reduces downtime so clients can focus on what really matters. WHY ONLINE CLEANING? We work in close partnership with our clients and our Real Time Monitoring Dashboard, along with our High Definition, High Temperature camera provides invaluable insight into the inner workings of your facility, so that not only can the periods between shutdowns be dramatically increased – from 12 to 24 months in some cases – but we can also help you to more effectively recognize triggers for blockages and issues before they occur.

Online Cleaning Technologies develops close working partnerships with all of our clients to realize the most effective and practical cleaning solutions and achieve the best results. INVESTMENT We constantly invest in the future with the development of new technologies and equipment.

EDUCATION

We look forward to work together with them the next years.

The team of experts are trained to the highest standards to ensure a successful and safe performance with every cleaning.

Fred Wanschers Director Online Cleaning Technologies

T +61 (0) 405 823 215

E fred.wanschers@onlinecleaning.com

onlinecleaning.com

CR ASIA GROUP maintenance, chemical cleaning and catalyst handling services to pipeline and process services, and shutdowns and turnarounds. “We offer many solutions that would normally have to be subcontracted by large maintenance management companies,” Young reveals. “We believe that our ability to plan, manage and execute maintenance activities, rather than just managing teams of subcon-

tractors, is what sets us apart and provides added value to our customers. “Our business philosophy is to always work collaboratively with our customers, and we have a reputation for honesty, openness and flexibility.” This customer-centric approach is a fundamental part of the company’s overriding ethos and is one of the reasons why a significant portion of CR Asia’s work is derived from repeat

CR ASIA GROUP

A BRIEF HISTORY CR Asia began operations in 1991 when a Kiwi-based company, Contract Resources, established an operational base in Singapore. As this business began to establish itself throughout Southeast Asia, it reached out to Middle Eastern maintenance company Anabeeb which agreed to support its expansion. Anabeeb thereafter invited Mourik to join as a shareholder, the two companies together buying out Contract Resources and forming CR Asia as a secondary division for the Asian market. “Although, in some respects, we bear a very close resemblance to Contract Resources, we are completely separate companies,” Young explains. “The good thing is we retain a close working relationship with Contract Resources and occasionally send specialist manpower and

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equipment to support their projects in Australia.” Today the firm remains a private entity with three main shareholders – Mourik, Anabeed and a Dutch family enterprise named Agre Management BV. “Together, with our sister companies we cover much of the globe,” Young reveals. “Anabeeb covers the Middle East, Mourik is responsible for Europe and the Americas, and we focus on Asia, providing comprehensive maintenance services to customers all across the continent via permanent facilities in Thailand, Singapore, Malaysia and India.” Key services include: • Catalyst handling • Industrial cleaning • Mechanical and plant services • Pipeline and process services • Shutdowns and turnarounds

business and loyal customers. It works closely with each client, aligning both parties’ goals to establish clear objectives and a transparent, trust-based working environment. Thereafter, combining collaboration with continual investments in the best equipment, systems and performance management tools and a large inhouse team of highly trained technicians, CR Asia consistently delivers the highest standards of safety, efficiency, productivity and customer satisfaction. “Our main objective is to become the partner of choice in each of our disciplines,” Young explains. “Our commitment to service excellence is underpinned by our integrated approach to safety, quality and the environment as well as our continual investment in developing our people and securing the latest technology available. “We pride ourselves on delivering safer, faster and more efficient results. With each operational success, the experience and knowledge gained is channelled into the next generation of solutions.”

AN ETHOS IN PRACTICE At this point, Young takes the opportunity to showcase a few highlights of CR Asia’s extensive portfolio, first pointing to a major ongoing contract currently being undertaken by its India business. “We’ve completed 30 months of a five-year continuous maintenance contract (CMC) with the world’s largest grassroots refinery located in Jamnagar, India,” he explains, “providing daily plant maintenance services to 17 units within the refinery. “This includes the completion of 12 shutdowns and turnarounds this year alone, a period in which we’ve achieved almost 1.3 million safe working hours.” Meanwhile, the company’s Malaysian unit recently secured a 10-year contract with Petroliam Nasional

Peinemann would like to thank CR Asia for being such a loyal customer for so many years.

CR ASIA GROUP

Unidense UNIDENSE® Technology GmbH is your reformer specialist for catalyst loading technology and tube cleaning system. We are a technology service provider and strive to add value to all our customer.

Berhad (PETRONAS) to cutting, bolt torqueing, “We pride ourselves on uphold daily maintenance pipe cutting and flange delivering safer, faster and turnaround activities machining, and the catalyst and more efficient at its Pengerang Integrated and high-pressure cleaning results. With each Complex, and its Thailand divisions will work on operational success, business has been working change-outs and cleaning the experience and with Shell Brunei to remove work throughout the entire knowledge gained is a partially collapsed storage event.” channelled into the tank roof – again completed The company’s Thailand next generation of safely and in line with cusand Malaysia divisions have solutions” tomer demands. similarly exciting prospects These are just a handful on the horizon, the former of key examples, however, looking to secure further and CR Asia’s pipeline looks equally projects at the Nghi Son Refinery in impressive. Vietnam, with the end goal of creat“We will be significantly involved ing a new joint venture with a local in the next major turnaround for Star enterprise to expand the company’s Petroleum Refining Public Company footprint in the country. (SPRC) in Thailand, scheduled for The latter, meanwhile, remains November 2019,” Young continues. focused on the integrated refinery and “It’s a project we’ve been planning for petrochemical plant in Pengerang, approximately two years, with a total Johor, its sights firmly set on adding to scope of 130 tonnes of fabricated steel its existing term contracts. structure, 25 vessels, eight columns and 225 items. TAKING INNOVATIVE, “We’ve begun to develop mock-ups, EXPANSIVE STRIDES the idea being that our teams will carry Equally, projects are not the only out mechanical maintenance works on evidence of CR Asia’s success, the the crude distillation unit (CDU), vacu- company similarly establishing itself as um distillation unit (VDU), platformer a spearhead of industry innovation. and fluidised catalyst cracking unit The firm has embraced industry 4.0 (FCCU). and bolstered the overall efficiency “Our Special Services division will and capabilities of its operations, support both project and maintenance leveraging technologies such as works with ultra-high-pressure water Rover – the name given to its remotely jet cutting (UHPWJ), diamond wire operated, multi-purpose tracked vehi106 | Asia Outlook issue 41

Our automated catalyst loading system, the UNILOADER® ensures optimum reformer catalyst loading performance resulting in reliable and efficient production process. The UNILOADER® enables reformer tube catalyst loading by using the UNIDENSE® principle automatically. Our OUTTUBE & INTUBE cleaner are revolutionising the cleaning technique for reformer tubes and has been successfully executed with excellent result. The UNIDENSE® technology is a catalyst loading method for primary reformer tubes which is less complex and faster then the traditional “sock” loading method. Catalyst is slowly filled into the tube through a specially designed funnel and the loading rope is gradually pulled out of the tube as the catalyst layer builds up. The brushes with flexible springs reduce the speed of the catalyst particles so that breakage is avoided. With the UNIDENSE® technology the catalyst particles will have a free fall from the lowest brush to the catalyst surface. This gives a “low intensity” filling and the particles will come to rest before being interlocked by other particles. Hence, there will not be any risk for bridging, and vibration of the tubes is not necessary. The UNIDENSE® technology ensures a filling without extra voids and a high uniform density along the full length of the tubes is obtained. The catalyst is charged from buckets and the time consuming and expensive socking of the catalyst is avoided.

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CR ASIA GROUP cles – which were developed to reduce and even eliminate the risks involved in entering confined spaces when removing catalysts from reactors and cleaning vessels. “These next-gen solutions help to improve safety by greatly minimising the need for our technicians to enter confined, hazardous or even underwater spaces and also have a positive impact on project schedules,” Young affirms. “Remotely operated vehicles don’t need the same regular rest breaks that technicians do and can start jobs earlier due to the fact they can withstand temperatures of up to 100 degrees Celsius.” Evidence of the fruits of these investments comes once again from CR Asia’s Thailand enterprise, its remotely operated equipment having secured the company a long-term contract for removing spent adsorbents with Chevron. Further, advanced wet dumping technology has proven to be a similarly coherent investment. Based on a num-

Maintaining high health and safety standards is of paramount importance to CR Asia Group

108 | Asia Outlook issue 41

ber of proven technologies, the firm has successfully commercialised its usage in Asia. “Advanced wet dumping is a process for removing extremely hard materials from reactors such as coke or fused catalyst,” Young explains. “Traditionally, removing these rock-like materials has been problematic. But our solution combines drilling technology with high pressure water to remove over 90 percent of the hardened material in less than a quarter of the time without having to enter the reactor.” The in-house design, build and commissioning of drum tippers to increase the speed of emptying drums, the development of its own dense loading technology to deal with various catalysts and a range of semi-automated internal and external bundle cleaning equipment are also key investments that the firm has pursued of late. And its geographical footprint has been enhanced in tandem. In late 2016, for example, the busi-

ness held an opening ceremony for its new Thai workshop, a 2,000 square metre structure equipped with a fivetonne overhead crane. And less than a year later, it also completed work on the new Thai office building which is now used by around 70 staff from CR Asia’s operating department. Meanwhile, in India, the organisation is in the process of opening a new purpose-built facility and training hub in Jamnagar, costing around $1.5 million. And in Malaysia, the company has acquired premises near to the new integrated refinery and petrochemical complex in Johor, set to become a three-acre facility and a key hub in that territory.

EMPLOYEE-EMPOWERED IMPROVEMENT While this emphasis on technology, equipment and facility is key to the firm’s competitive advantage, so too is its esteemed workforce – something that Young is quick to iterate.

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Multi Nozzle Flare Tip “People are the core of our business,” he declares, affirming this statement by pointing to CR Asia’s extensive training programmes. Ensuring it instils best practices across the board, the firm has invested substantially in the development and operation of two large dedicated training facilities in Rayong, Thailand and Jamnagar, India. Both developments provide certified, tracked and managed supervisory, safety and tradebased validation services for all staff which adhere to three core principles – measurability, relevance and reliability. “Continuous improvement is part of the very fabric of CR Asia,” Young adds. “We establish key performance indicators for all and targets to drive employee development. In turn, the business benefits on all fronts. “We find that this continuous commitment to improvement is similarly reflected in many of the projects that we complete in record time for our customers at lower costs and with

higher quality,” Young continues. “We’re always investing in and developing smart systems and performance

RECOGNISING THE FRUITS OF COLLABORATION Many of CR Asia Group’s esteemed partners and suppliers including ZymeFlow, Cokebusters and Crealyst play a crucial role in providing access to the latest innovations and technology from around the world. Additional partners/suppliers include: • Unidense • Peinemann Equipment BV • Koch-Glitsch • Kota Minyak Internusa PT • Petroval • Online Cleaning Technologies • Honeywell UOP

management tools to support our personnel in delivering responsive and innovative services.” One such example is the soon to be group-wide ERP system, introduced in April 2018. Initially implemented at CR Asia Thailand to ensure the effective management and operational control of all projects as the company continues to grow, taking on new, increasingly complex contracts at scale, it will now be rolled out across the group by 2020. “The system, Epicor, is cloud-based, meaning all parties can access relevant data much faster and more reliably to improve decision making processes,” Young states. “It’s taken some time to get used to, but functions as intended. And we were even nominated and awarded the Epicor Customer Excellence Award for Cloud Deployment – the prize for which we used to provide a $500 donation to a local school in the Rayong area for school uniforms.” Asia Outlook issue 41 | 109

CR ASIA GROUP

LEADERSHIP FOCUS

DAVID YOUNG A Chartered Chemical Engineer with 25 years’ experience of working in the process industries, Young began his career by working for ICI in the UK, holding several technical and operationsbased roles, before transitioning to Johnson Matthey when it acquired ICI’s catalyst business. “In 2001, I then took on a commercial role within the gas processing business and was seconded to Southeast Asia in early 2005,” he explains. “In 2009 I joined KBR as Asia Pacific Regional Director for its process technology business before moving into technical and management consulting with KBC and KPMG respectively.” From here, Young joined CR Asia in his current role of Group Business Development Manager – a position focused on four key strategic areas: • Growth and diversification. • Adding new services. • Developing long term relationships with suppliers and customers. • Overseeing all corporate marketing activities.

Employees are described as the core of the business by David Young

INTUITIVE, IMPACTFUL INVESTMENT As this donation suggests, CSR is indeed another key focus for CR Asia Group. Its social responsibility strategy is driven by local committees within each business, ensuring the company provides targeted, relevant assistance to deliver real benefit to local people. Young reveals: “We proactively engage with the communities in which we work. “Our programmes are usually 110 | Asia Outlook issue 41

focused on the delivery of healthcare and education for children, and the development of local infrastructure. No matter the initiative, we encourage our staff to uphold the delivery of these programmes, ensuring the creation of a powerful link between community and company.” Owed to these efforts, the enterprise also received the Corporate Social Responsibility Award from the Department of Industrial Works in recognition of CR Asia Thailand’s commitment towards operating in the right way,

OIL & GAS

graded against a criteria including organisational governance, human rights, labour practices, environmental practices, fair operating practices, consumer issues and community involvement. Yet this award should come as no surprise, the company able to call upon numerous examples of similarly admirable stewardship. And Young does just this when prompted: “Due to the collapse of the Xe Pian-Xe Namnoy dam under construction in the southeast of the Lao People’s Democratic Republic in

July, several villages were completely washed away and many more were flooded, forcing thousands of people to evacuate. “We felt a strong empathy with the flood affected people in Laos and Cambodia and their urgent need for help, so CR Asia Thailand approached the Rayong Safety Association to rally relief support for the victims through donations of food, clothing and other essential items to survive. “Meanwhile, in Thailand we sponsored the 2019 DOW Charity Run and

provided drinking water for all runners. 10 employees joined the five-kilometre fun run held in June 2019, at Lumpini Park in Bangkok that drew over 1,200 participants. This year’s event promoted environmental conservation and raised funds for the Thai Red Cross Society’s Repair of Cleft Lip and Cleft Palate and Other Deformities Project.” Impact investment, technological innovation, employee excellence and an esteemed, ever-growing project portfolio combined, the future looks bright for CR Asia Group. Executing all projects safely, on time and within budget, the firm is anticipating 40 percent growth this year – a spurt that will pose both new challenges and opportunities alike. “Every few years we take our operations to the next level,” Young affirms, “and this is set to be one of those periods, an advance that we’re preparing to sustain and build on for years to come.” Yet growth is not the only company’s ambition. Indeed, the opportunity for further diversification is similarly on the horizon – a window that the Group Business Development Manager eludes to in his concluding statements: “We’re looking forward to finding additional ways to enhance our business in terms of adding new service lines and focusing on new territories. “We have a strategy event planned for the latter stages of 2019 when the senior management of the company will come together to discuss and agree where our next wave of prosperity is going to come from in advance of conducting our next business planning cycle to 2023 and beyond. “It will certainly be interesting to see what occurs on the horizon during this next crucial period.”

CR ASIA GROUP Tel: +66 2 653 3913 crag@crasia.net www.crasia.net

Asia Outlook issue 41 | 111

RUTLEDGE GROUP

Safety

FIRST Rutledge Group, through its three specialised divisions, continues to innovate and uplift the profile of HSE practices across industries such as oil and gas Writer: Tom Wadlow | Project Manager: David Knott

he Deepwater Horizon oil spill will forever be etched into the history of the oil and gas industry. Caused by an explosion on the oil rig located in the Gulf of Mexico off the Louisiana coast, April 20, 2010 marked a sobering day for the sector as 11 workers lost their lives and 17 more were injured. For Anne Joseph, CEO of Rutledge Group, an organisation focussed on providing a host of safety services and products to industries around the world, accidents like Deepwater Horizon highlight the paramount importance of unwavering commitment to sound HSE standards. “Companies operating in the oil and energy sector operate in hazardous environments and as a result it is critical to pay attention to health, safety and environment practices,” she says. “After major accidents like Piper Alpha and Deepwater Horizon, their importance has only increased over the years. Our belief is that the potential cost of loss of life can be greatly reduced by training and implementing better practices at work sites. We believe that even more can be done to raise awareness of the importance of health and safety procedures.” 112 | Asia Outlook issue 41

Anne Joseph’s illustrious career has led her to standing as Group CEO of the Rutledge Group of companies – a position she has held for 12 years

Rutledge Group facilitates this through a number of its business segments, chiefly Rutledge Omni Services, Arise Global and Ready Oilfield Safety & Services. Joseph became CEO of the enterprise in 2007, this having made the leap into the oil and gas space almost a decade earlier. She recalls: “While working in the insurance industry, I became acquainted with the risks and rewards of different industries. In 1998, I saw an opportunity to build a company focused on providing quality safety services in the oil and gas industry, with application in petrochemical, shipping, fire and other industries. “There was an increased emphasis on health and safety standards, and we believed we could create a leading platform to deliver those services. Together with likeminded business associates, we seized the opportunity and embarked on an exciting journey.”

A BROAD SPECTRUM For Joseph, two differentiating factors that stand Rutledge Group apart are its breadth of products and services and geographic reach covered by its four main entities. The oldest business segment estab-

Rutledge Group is accredited with ISO, OHSAS, OPITO and IADC and became equipped with Singapore Quality Class certification in 2017 - an internationally benchmarked framework for business excellence

OIL & GAS

lished in 1981, is today called Rutledge Omni Services. Headquartered in Singapore, the division is focussed on providing quality safety services and products to many industries such as oilfield, shipping, fire and chemical. Armed with the Singapore Quality Class certification in 2017, an internationally benchmarked framework for business excellence, Rutledge is confident in its bid to win new ground and outdo itself in the years ahead. It can serve almost any facility with

“OUR PEOPLE MAKE THE DIFFERENCE. AN ENERGETIC AND ENTHUSIASTIC TEAM OF INDIVIDUALS MAKE UP THE CORE OF MANAGEMENT” the assurance of its international accreditations (including ISO, OHSAS, OPITO, IADC), and is one of the only Asian-based companies in its field with a strong domestic record and extensive international reach. Crucially, it holds an unblemished safety record. “Our people make the difference,”

Joseph says. “An energetic and enthusiastic team of individuals make up the core of management. Their technical competence combined with a strong sense of duty to customers make them the winners that blaze the trail for the Group. A bespoke training programme has yielded a highly skilled workforce Asia Outlook issue 41 | 113

RUTLEDGE GROUP that win us our sound reputation in the marketplace.”

ARISE GLOBAL Arise Global is another services-based business segment under the Rutledge Group banner. The unit, based in Singapore with presence in Malaysia, Indonesia, Thailand, UAE, Egypt and Kazakhstan, specialises in non-destructive testing for a range of industries, this being the branch of engineering concerned with all methods of detect-

ing and evaluating flaws in materials. Arise is a one-stop shop for customers looking to ensure the integrity and safe operation of their equipment. It specialises in delivering these extensive inspection services using highly specialised equipment and techniques, including Acoustic Pulse Reflectometry for tube inspection, Acoustic Emission for online assessment of the integrity of tanks, piping and other structural equipment, and LongRange Ultrasonic Testing for assessment of pipelines.

RUTLEDGE OMNI SERVICES A SNAPSHOT “Rutledge is about providing safety for personnel in toxic gas environments mainly in the upstream oil and gas work sites,” Joseph adds. “The toxic gas of interest is H2S and the business is dependent on the presence of the gas which naturally occurs in some geological formations along with hydrocarbons. Among the areas where H2S is prevalent is the Middle East and the threat is present in both onshore and offshore operations.”

sector to enhance the safety of oilfield personnel specifically in their work. I believe that this will be the next growth driver and will enable Rutledge to transcend beyond H2S fields, hence opening wide the doors to new clients and new territories.

Rutledge has also served clients in Central Asia, the Middle East, Russia, Pakistan, India, China and all of Southeast Asia, while many jobs have further been executed elsewhere, including in Africa and New Zealand. Much of its work is organised out of its bases in Singapore, Erbil, Islamabad, Jakarta, Atyrau and smaller setups in Songkhla, Chengdu and Abu Dhabi.

• H2S safety services

For Joseph, a priority is extending this division’s capabilities. She explains: “We are introducing a positioning solution in the upstream

• Metrological stations and data management

114 | Asia Outlook issue 41

“We intend to roll this out in 2020, and Rutledge will be among the first systems integrator for the solution.” Rutledge’s activities can be divided into eight major categories:

• HSE services • Air quality monitoring and data management • H2S and HSE training • Provision of Firefly critical well ignition systems • H2S removal solutions • Location / POB management systems

• Community awareness

Circa Enterprises Rutledge Group strengthens Circa Enterprises’ presence across Southeast Asia. Rutledge Group (Ready Oilfield Safety & Services) further strengthens Circa’s (Guardian Telecom and CircaMax) sales and support presence in SEA in response to strong demand for rugged telecommunications and surge protection solutions. At Circa we know to help our customers succeed, we must keep pace with the challenges they face daily. To do that we must have the most experienced and the brightest personnel in sales, engineering and customer service. Rutledge Group helps strengthen this commitment to our customers in SEA.

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Asia Outlook issue 41 | 115

RUTLEDGE GROUP An energetic and enthusiastic team of individuals make up the core of management. Their technical competence combined with a strong sense of duty to customers make them the winners that blaze the trail for the Group

READY OILFIELD SAFETY & SERVICES Ready Oilfield distributes high quality safety products such as SCBA, gas detection equipment and compressors, also serving as an authorised service centre for much of this portfolio in Singapore. The division is able to take advantage of Rutledge Group’s longstanding relationships with leading equipment manufacturers and thus can offer competitive pricing to its customers and can also offer trained personnel if required. Among its product portfolio are: • Scott and Sabre brands of SCBA • Detcon fixed gas detectors • BW portable detectors • AQMESH air quality monitors • Guardian telecom equipment • Calgaz calibration gases • Coltri and Bauer breathing air compressors

116 | Asia Outlook issue 41

Rutledge Group embraces a range of industry leading technologies, including a positioning solution, software tools for distributed applications, and servers for harsh and hazardous conditions

OIL & GAS

Joseph adds: “The first product, APRIS, was launched in May 2018 and the R&D team is working on the second product, UPRIS. These are Acoustic and Ultrasonic Pulse Reflectometry solutions for tube inspections, an area of expertise where we own 11 patents. “APRIS is currently used for inspection of heat exchangers, boilers, and multiple bend tubes using sound waves to quickly detect defects inside of tubes. UPRIS will provide a faster means to detect tubular integrity issues such as cracking to avoid costly unplanned shutdowns or accidents. “We have interests expressed by a major manufacturer to explore development of our patented technology for quality control purposes and have another similar expression of interest by a manufacturer of twisted tubes. These interests are exciting as it demonstrates the relevance of the technology beyond maintenance in refineries, chemical plants and power plants.”

EMBRACING TECHNOLOGY Corrosion Mapping is another technique used for a range of services such as tank shell inspections, pressure vessels and piping systems (without using scaffolding), while Pulsed Eddy Current and Magnetic Flux Leakage are used to respectively inspect insulated equipment and map tank floors. These and many more techniques are within Arise’s capability. With the different capabilities it possesses, Arise is able to respond to complicated challenges faced by customers at their production, storage and distribution facilities, to ensure safe operation of customer assets and to avoid unexpected failures. Arise is also the early adopter of patented APR technology, a novel tube inspection technology it owns. Specialised inspection products are researched and sold through an Arise subdivision called Talcyon.

This emphasis on research leads Joseph to outline another strategic advantage of Rutledge Group. Apart from the spread of products and services and geographic reach commanded by Rutledge Group’s portfolio of companies, a third key differentiator for Joseph is the willingness to adopt and embrace technology across the board. “We are always on the lookout for an angle where we can make a difference,” Joseph says. “It is in our DNA. Just before the downturn in the oil and gas industry in 2016, Rutledge embarked on an ambitious endeavour to bring a new technology for a positioning solution to the mature oil and gas sector. “What started as one solution has today resulted in two companies that have been hived off from Rutledge Omni Services. We have developed a

positioning solution, software tools for distributed applications, and servers for harsh and hazardous conditions. These are housed in entirely new companies (Biqmind and LanternEdge).” Another example of this tech-driven ethos comes from Arise and its ambition to supply customers with new technical solutions. As well as the APRIS and UPRIS developments, Arise operates an Acoustic Emission technology Centre of Excellence in Singapore. The facility carries out studies on exploiting the capability of the technology in defect detection, characterisation and quantification, and also explores the use of the science in other applications. It is constant innovation and research such as this that leaves Joseph optimistic about the future of HSE practices across industries such as oil and gas, the CEO adamant that the coming years will see technology take centre stage. Outlining the company’s own ambition for the next small chapter in its story, she concludes: “There are many developments on the horizon, including establishing our positioning solution as a means to help us transcend to fields where H2S services are not required. “Further, we will ensure the successful rollout of UPRIS and work with multinational corporations on new applications of our patented technologies, a process which I hope will see us become the global go-to provider of Acoustic Emission technology. “This will help our companies to open up in new territories and ultimately expand the Rutledge Group.”

RUTLEDGE GROUP Tel: +65 65150055 www.rutledgeservices.com www.readyoilfield.com www.ariseglobal.com

Asia Outlook issue 41 | 117

BAYAN AIRAG EXPLORATION

MONGOLIA’S Responsible Miner

andlocked between Russia and China and spanning some 1.6 million square kilometres, Mongolia is topographically one of the most fascinating places on earth. Vast swathes of grassy steppes, the enormous Gobi Desert and three major mountain ranges make for a natural phenomenon – one which is home to just three million people, meaning it is Cityscape view on the clock the most sparsely populated country tower and Tyn cathedral on the in the world. old square And yet, despite what may appear as physical constraints to economic 118 | Asia Outlook issue 41

Having invested in excess of $150 million into one the remotest areas of western Mongolia, Bayan Airag is imparting a positive legacy from its gold and silver mining operations Writer: Tom Wadlow Project Manager: Donovan Smith

development, the nation’s GDP is growing solidly. Last year saw the Mongolian economy expand by 6.9 percent, with 6.7 percent growth forecast for 2019 and 6.3 percent in 2020. Central to this recent positive performance and equally bold outlook is mining. According to government figures, the industry accounted for 21 percent of GDP, 85 percent of exports, 30 percent of national budget revenue and over 70 percent of foreign direct investment in 2016, with China being

MINING

a crucial customer of this thriving activity. It is also fair to suggest that Mongolia is only beginning to scratch the surface of its mining potential. The country is blessed with minerals, sat atop massive reserves of copper, uranium, rare earths, gold, zinc, oil, silver and more. According to some estimates, it is home to 10 percent of the world’s known coal reserves. For Enkhtuvshin Yura, the past decade or so has seen Mongolia ready itself to the point where it can begin to

seriously reap the benefits of its natural resources, not least because of the economic powerhouse it is bordering. “Being in close proximity to China has been a big advantage for the mining industry, as we have been able to supply them with iron ore and coal throughout much of its recent economic growth period,” he says. “I believe the industry here has seen a shift over the past 10 years towards more and more Mongolian companies being in control of mining work – prior to this a lot of international contrac-

tors were here, but we learned best practices from them and are now able to manage our own operations to high standards of environment, health and safety management. This has been a big enhancement, and our company is a perfect example of this.” Yura is the Managing Director of Bayan Airag Exploration LLC, an exploration and mining company operating a gold and silver mine near Durvuljin soum, Zavkhan province, in the west of Mongolia. “Before I got into this industry I was Asia Outlook issue 41 | 119

BAYAN AIRAG EXPLORATION working in tourism, when mining and exploration wasn’t as big in Mongolia as it is today,” he continues. “I worked in the exploration side of the business before Bayan Airag started mining operations – once we decided to develop the mine, I became the Managing Director for the project.”

STRIKING GOLD (AND SILVER) The mine in question is named Golden Hill, and for good reason. It is situated 1,500-2,500 metres above sea level and lies some 1,200 kilometres to the west of Mongolia’s capital city Ulaanbaatar. The closest major settlement is Uliastai, 150 kilometres away, while the Durvuljin soum centre is just 20 kilometres from the site. Being nestled at the foot of the Khangai Mountains, the project area is subjected to the extremes of the Mongolian climate, temperatures reaching 40 degrees Celsius in summer and -40 degrees in the winter months, with very little rainfall seen all year round. “There are not many mining operations here, so we are pioneers in the

region and have overcome many challenges and hurdles in order to get the project off the ground since we started the development phase back in 2011,” explains Yura. Initial exploration activities at Golden Hill began in 2002, Bayan Airag receiving a gold and copper mine operation license from the Mineral Resources and Petroleum Regulatory Authority with a 30-year term. Following a prolonged delay and three years after development of the site began, production of gold and silver kicked off in 2014.

“THERE ARE NOT MANY MINING OPER ATIONS HERE, SO WE ARE PIONEERS IN THE REGION AND HAVE OVERCOME MANY CHALLENGES AND HURDLES...”

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120 | Asia Outlook issue 41

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It is an open pit operation using a surface mining technique where gold is extracted by mining the pit, crushing, heaping, and leaching ore. In the first phase, ore and surrounding waste rocks are removed before the ore is hauled around a kilometre away to a stockpile area. The stockpiled ore is then crushed, leached and processed.

A RESPONSIBLE MINER Readying the mine site has also involved building a large amount of infrastructure, including roads and a camp which can accommodate up to 400 people. In all, investors have spent in excess of $150 million, signifying its longterm commitment to the project and the surrounding communities, with engagement of local people being of paramount importance to Yura and the whole of Bayan Airag. The greatest beneficial impact, arguably, has been through employment. “Training local people has been 122 | Asia Outlook issue 41

extremely important for the success of this mine and the positive impact on the surrounding community,” Yura says. “We currently employ 460 people directly and work with a number of other employees from suppliers and vendors who work in and around the site, for example catering, maintenance and security for our camp. “If you include all of our workers and the fact that most of them are provid-

“ON THE EDUCATION SIDE, WE PAY UNIVERSITY TUITION FEES FOR APPROXIMATELY 40 STUDENTS FROM THE TWO NEARBY COMMUNITIES UNDER OUR SCHOLARSHIP PROGRAMME EVERY YEAR”

ing for their dependents and families, we are talking about 1,500-2,000 people’s lives that we contribute to.” Beyond offering employment and career development opportunities, Yura outlines the company’s wider impact delivered through its corporate social responsibility activities, a strategy which is divided into three major areas – education, health and infrastructure. “On the education side, we pay university tuition fees for approximately 40 students from the two nearby communities under our scholarship programme every year,” Yura says proudly. “Further, we have upgraded kindergartens and local school facilities, from shower and washroom units to the maintenance of classrooms and provision of materials such as books and toys. We have been helping to provide everything that is needed for the education of young people.” In the area of health, Bayan Airag

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Asia Outlook issue 41 | 123

BAYAN AIRAG EXPLORATION

has been running medical check-ups for local people under different focus area each year, bringing in doctors from the capital city or in conjunction with the local hospital.

BAYAN AIRAG’S VISION, MISSION AND VALUES VISION: To be leaders in the Mongolian mining industry through uncompromising standards of safety, environmental stewardship and social responsibility.  MISSION: To follow international leading practice and embrace Mongolian values to benefit stakeholders. VALUES: Dignity and respect, teamwork, safety and environment, business excellence, partnerships and sustainable development. 124 | Asia Outlook issue 41

“WE ARE ENABLING PEOPLE TO WORK AND LIVE SUSTAINABLY WITHIN THEIR COMMUNITIES. I BELIEVE WE ARE A GREAT EXAMPLE OF WHAT RESPONSIBLE MINING IS IN MONGOLIA” Infrastructure development has involved a number of road constructions connecting local areas, as well as helping administrative centres and other local organisations to install vital components at their premises such as lighting and CCTV. The company has also helped to upgrade a landfill waste site. “At the same time, there were of course some negative perceptions of the mining industry, and we had to allay some of these concerns by outlining our vision of the bigger picture, demonstrating our world-class practice environmental standards and that we’re here for the long-term betterment of their area,” adds Yura. “If we hadn’t developed the project, many local people would not have

been given these employment opportunities – more than 50 percent of our staff are from the local area. We are enabling people to work and live sustainably within their communities. “I believe we are a great example of what responsible mining is in Mongolia. Our backers are not simply here to cash in on a quick investment, and the investment spent to date over many years is testament to this ethos.”

EXPANSIVE EXPLORATION Another clear indication of Bayan Airag’s commitment is the busy exploration activity that is looking into the possibility of expanding the Golden Hill mining operation in several directions.

MINING

SERVICES: Exploration Services • Diamond Drilling • Large Diameter Conventional Coring • Directional Drilling • Open Hole Drilling (Rotary, PCD, Percussion) • Rotary Mud Drilling • Reverse Circulation/ Air Core • DTH Hammer/Rotary Air Blast • Water Well/Hydrological

Phoenix Drilling was founded in Mongolia in 2016 to provide the full spectrum of exploration and mining drilling services. The core of the business being exploration of water, minerals, geotechnical advice and production drilling to support our partner’s project goals.

Mining Services • Grade Control • Blasthole drilling • Water Production • Dewatering

Tel: +976-99113714 Email: tulga.ts@aidd.mn

“At the moment we are only mining the oxidised ore that we extract silver and gold from, but underneath this resource there is sulphide mineralisation that is rich in copper,” Yura explains. “We are carrying out more exploration to scope the possibility of mining copper, which could lead to us going into underground mining, a move which will require us to obtain and develop new skillsets.” However, while the initial exploration signs look promising, Yura urges a degree of caution in terms of timings.

He continues: “We cannot be too precise at the moment because these activities take a lot of time and capital – to carry out drilling and all the metallurgical test work that comes with it is a big undertaking. “We need to be certain about the resource we have and whether it is viable to begin expanding the mining operations. However, what I can safely say is that we are working extremely hard to prolong the life of the mine and deliver long-term benefits to the industry and community.”

And what of the future of Mongolia’s mining industry writ large? Having stated his confidence in early remarks, Yura also rounds off the conversation bullishly. “I am upbeat about Mongolian mining. There are huge mines in the likes of South America, and they are using their resources now – we can become a huge supplier of minerals such as copper to the likes of China. It is usable in so many industries and being on the doorstep of our Chinese neighbours is extremely beneficial. “The future for Mongolia, in my opinion, looks very bright.”

BAYAN AIRAG EXPLORATION UB Office: +976 77116100 info@bayanairag.com www.bayanairag.com

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GEKKO SYSTEMS

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MINING

Modernising

MINING Bringing a fresh approach to the global mining table, Gekko Systems’ innovative offerings and next-gen technologies are helping to uphold the industry’s digital upheaval Writer: Jonathan Dyble | Project Manager: Donovan Smith

he mining industry is one of the greatest beneficiaries of a rising digital tide. New technologies are enabling industry stalwarts to reenergise their traditional operations and processes, propelling performance across the whole value chain from mine to market. From the internet of things to cloud computing or data analytics, the abundant benefits that new technologies are providing are not lost on boardroom decision makers. According to a recent study from Accenture, 92 percent of mining executives plan to increase their investment in technology, while research from KPMG shows that the highest level of investment is occurring in data and analytics tools (53 percent), autonomous vehicles (30 percent) and robotic process automation (29 percent). “At the moment, mining operations are all trying to reduce costs and improve efficiency,” explains Nigel Grigg, General Manager of Global Sales and Solutions at Gekko Systems. “This in mind, we believe that automation and the use of data in optimising processes will continue to accelerate.” Indeed, Gekko Systems is perfectly positioned to capitalise on the opportunities that this shift will bring. Starting out as an Australian startup producing InLine Pressure Jigs (IPJ) for continuous gravity separation, designed to recover very high grades of valuable ore material in very small masses, the firm has gone from strength to strength during the course of the past two decades, now standing as a world leader in gold processing and low-energy mining solutions. “The Founders, Sandy and Elizabeth Lewis-Gray, launched the company in Avoca, Victoria off the back of the IPJ that Sandy invented while working on alluvial gold mines,” Grigg explains. “A number of units were tested at local sites, before the company attracted venture capital and expanded its operations in Ballarat.” Asia Outlook issue 00 | 127

GEKKO SYSTEMS FROM STARTUP TO STANDOUT It was at this point that Grigg himself became aware of the company. Having studied metallurgy at Ballarat University, he had kickstarted his career with a series of jobs at a small local Carbon-in-leach (CIL) gold processing plant – a company that eventually installed a gravity circuit and purchased an InLine Pressure Jig from Gekko Systems. “My main interest was in gravity gold recovery, and due to the coarse gold that we had from our Ballarat project, we collaborated with Gekko,” Grigg explains. “I thought that its solutions had so much potential that I asked to join the company. “We were a start-up company, and so I was tasked with assisting in a wide range of work including the metallurgical test-work and commissioning before eventually looking after the sales team.” From these humble beginnings, the company began to diversify its offerings, developing its now flagship InLine Leach Reactor (ILR) that enables clients to achieve very high recovery rates from gold concentrates. “The ILR is now utilised in over 100 gold plants around the world,” Grigg reveals, also pointing to the firm’s InLine Spinner Bowl, Mag-Screen, resin circuits and electro-winning systems as other milestone products. “We quickly covered a complete range of equipment around the typical gold recovery circuit, which led us to building complete modular plants that were fully assembled and tested prior to being shipped. It proved to be an excellent option for clients that were operating in remote areas or on satellite deposits with lower mine lives. Any plant could simply be unassembled and transported to another location at the end of a deposit’s life.” Further natural progressions led Gekko to both expanding into Canada, Peru, Chile, Argentina and Mexico, and into the underground processing space, with pre-concentration quickly 128 | Asia Outlook issue 00

becoming a popular addition to the firm’s growing portfolio. Grigg continues: “Pre-concentration made an excellent proposition for underground processing. It can upgrade the ore, making lower grade deposits economical for downstream processing and provide more metal units to be processed in the mill circuit. “It’s a concept that’s of particular interest to deeper mines and those experiencing diminishing margins due to long haulage distance and costs.”

A TIMELINE OF SUCCESS Unsurprisingly, these advances have been accompanied by a number of flagship projects over the years. In 2005, for example, Gekko built the Ballarat Goldfields plant, utilising vertical shaft impactors (VSI) as an alternative to milling, to liberate the gold prior to treatment using a gravity only circuit. “The flowsheet was very efficient in recovering the coarse Ballarat gold and by not installing a mill in the circuit we were able to produce using very low energy,” Grigg explains. “This saved on capital and ultimately operating costs.” 2008 also saw the delivery of a pre-concentration system at the Pirquitas mine in Argentina, Gekko’s equipment helping to reject approximately 50 percent of material prior to the milling circuit. The company was able to almost double the grade of the ore as a result, improving cash flow and providing extra efficiency in the flotation process, enabling saleable concentrate grades to be produced. Meanwhile, more recently the enterprise built a full plant for Aurelia at the Hera project in New South Wales in 2014, a facility designed to maximise free gold recovery, and also supplied TMAC Resources with a modular processing plant in 2016 at the remote Hope Bay project in Canada. “There are a number of projects that have utilised Gekko’s equipment and been very successful,” Grigg affirms.

ICE Engineering ICE Engineering (VIC) Pty Ltd is a privately-owned company established in 2003. We have built a reputation for reliability and quality work in the fabrication and structural steel industry and we have established lasting relationships with leading public and private construction, mining and industrial companies. ICE Engineering employs over 30 personnel and operates from a purpose built, fully equipped 4000-square-metre factory in Delacombe, Victoria. Our on-going investment in modern equipment enables us to offer first class “onestop-shop” service solutions to our customers. This includes: CAD, CNC plasma cutting of plates and beams, machining, shot blasting, surface treatments and site installation.

www.iceengineering.com.au

“We are very proud to assist clients, helping them to think outside the box and look at alternative flowsheets that can optimise recoveries, reduce energy and lower costs. It enables them to progress their projects when other traditional options may not be available.” Needless to say, Gekko has amassed an impressive portfolio, both in the way of products and services and completed projects. Yet, as the market continues to change rapidly, the company moves in tandem, innovating and investing to remain ahead of the curve. Most recently, this approach has resulted in a close collaboration with independent Australian federal government agency CSIRO (The Commonwealth Scientific and Industrial Research Organisation) and the commercialisation of its online gold analyser (OLGA) technology. “OLGA is an exciting solution that allows clients to measure in real time the total gold content within a slurry,”

MINING

Our core business is the supply of quality fabricated products, structural steel & installation services within the industrial, commercial and mining industries. Specialising in medium scale projects our team of 30 provide:

• Fabrication & welding • Structural steel fabrication & erection • Mining equipment • Site installation • Machining • Service and repair • 3D modelling & design

ICE Engineering (Vic) Pty Ltd, 26 Whitelaw Avenue, Delacombe VIC 3356, Australia p. +61 3 5338 7022 | e. info@iceengineering.com.au | www.iceengineering.com.au

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GEKKO SYSTEMS

Grigg states. “We believe that it will be incredibly important in the future, assisting mines in continuously measuring gold grades, and instantaneously optimising and automating parts of circuits that traditionally have been operated manually.” OLGA’s inauguration has also been accompanied by Carbon Scout. Created in partnership with the Curtin University based in Perth, this allows CIL and carbon-in-pulp (CIP) operators to move carbon inventories automatically, resulting in less gold solution losses and ultimately better returns. “We’re hopeful that the combination of both technologies will ultimately lead to the complete automation of 130 | Asia Outlook issue 00

the CIP/CIL leaching circuits around the word,” the GM adds.

EMPOWERED BY PEOPLE AND PARTNERS An aggressive, agile R&D programme and startup mindset are not the sole pillars behind the company’s ongoing

success, however. The firm’s extensive network of suppliers and partners has proven equally crucial, described by Grigg himself as being immensely important. “We use several global companies’ equipment within our plant offerings and so it’s important that the local

MINING while company presentations are provided,” Grigg adds, “with surplus food being donated a local soup bus providing food for the homeless.” And such activities will continue to grow in tandem with the business as it continues to blossom, the MD outlining some exciting developments on the horizon. He concludes, bullishly: “We’re currently working with King Island Scheelite in delivering a modular style plant that can be easily shipped to the island and offers a fast construction schedule, and Gekko recently opened for business in Russia, appointing two people to look after an expanding installation base.

subsidiary is able to support our clients after the equipment is installed,” he reveals. “Due to the cyclical nature of the mining industry, we experience significant periods of high demand for labour resources, and it is only possible to achieve the equipment lead-times demanded by our customers with the strong support of suppliers and contractors.” Its employees also play a major role, something that’s not lost on Gekko System’s management team. The company readily invests in a graduate programme, taking on three to five such employees each year who are provided with the opportunity to

experience all aspects of the business, from working at mine sites to overseas locations to multiple offices. “At a time of declining enrolment in mineral processing related university courses we believe it is important to support young people entering our industry,” states Grigg. These pro-bono attitudes translate into a wider corporate social responsibility programme, the firm donating a percentage of its yearly profit to numerous charities including schools and local medical and social organisations in Ballarat. “Every Wednesday, we provide lunch for our staff at our head office

“In addition, we’ve recently been in discussions with several major companies about the potential of Carbon Scout and OLGA in particular and feel that they will provide a great step forward in future leaching plant design. “To reiterate, we strongly believe that data and automation will become crucial in optimising operations, and we are very focused on introducing new products and technologies in this area.”

GEKKO SYSTEMS Tel: +61 353 395 859 gekkos@gekkos.com www.gekkos.com

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GOODHILL ENTERPRISE

Distribution

Dynamo

Goodhill Enterprise (Cambodia) Ltd is enjoying a remarkable growth curve which is ahead of the country as a whole, bringing more international brands to retailers and consumers Writer: Tom Wadlow Project Manager: Josh Hyland

132 | Asia Outlook issue 41

here are many reasons for Cambodian retailers and wholesalers to be buoyant. Sustained economic growth of seven percent per year, rising consumer purchasing power and a digitally-enabled, youthful population who are exposed to an increasing variety of international brands all add up to a vibrant and rapidly evolving shopping sphere. “It is currently an exciting time to be in the consumer retail and wholesale sector, as evidenced by the entry of several international players,” remarks

Teoh Oon Kiat, Managing Director of leading full-service distributor Goodhill Enterprise (Cambodia) Ltd. “Following the success of its first Cambodia mall in mid-2014, Japanese retail group Aeon has already opened a second mall and is now planning to start construction on the third in 2020. Makro from Thailand first opened in Phnom Penh at the end of 2017 and has already expanded to Siem Reap with its second outlet in early 2019.

RETAIL

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GOODHILL ENTERPRISE

COMPANY HISTORY

ABOUT GOODHILL ENTERPRISE (CAMBODIA) LTD The Goodhill Group of Companies, established in Singapore in 1973, first entered Cambodia in 1989 when the Vietnamese withdrew and two years before the Paris Peace Accord was signed. The distribution business began operating in 1993. The company arrived with little experience in the distribution market, but its early mover status allowed it to pick up the mantle quickly, its Singaporean roots also an advantage with clients trusting the payments process from the city-state’s banks. “We started with Darlie toothpaste and Gestetner office equipment in 1993, followed by paper from Asia Pulp and Paper (APP) in 1994 and consumer products from Procter and Gamble (P&G) in 1995,” says Oon Kiat. “As we grew, we gradually acquired more brands which are currently divided into six divisions, each of them having an experienced head and a dedicated operations team.” These six subsectors include: CONSUMER: Brand partners include P&G, Darlie, Mondelez and Kellogg’s CONFECTIONERY, BEVERAGE AND DAIRY: Want Want, Malee, Ferrero, Fonterra and Dutch Mill PAPER AND STATIONERY: Asia Pulp and Paper, Pilot, Linc and Staedtler AUTOMOTIVE CARE: Castrol and BP LIGHTING AND ELECTRICAL: Philips, Hager and Cadivi OFFICE AUTOMATION: Ricoh and Gestetner The Goodhill Group of Companies also covers Malaysia, China and Myanmar.

134 | Asia Outlook issue 41

“Another example is the US convenience store chain Circle K. Since opening its first outlet in early 2018, Circle K has quickly expanded to more than 20 outlets within a year.” And the potential to develop this sector further is enormous – informal trade still makes up more than 80 percent of the mass consumer products market given the majority of Cambodians reside in rural areas. “We believe that these are still early days and there will be plenty of room for further development in the consumer retail and wholesale market,” Oon Kiat continues. “This is why we are continuing to deepen our distribution coverage and penetration in Phnom Penh, while also investing into expanding our branches in six key provinces outside of the city. Although income disparity is still wide in Cambodia, it is encouraging to see that the benefits of economic development and income growth are also spreading to provinces outside Phnom Penh.”

UPSKILLING FOR THE FUTURE Asked about the major challenges that lie ahead for the development of this vibrant industry in Cambodia, Oon Kiat is quick to highlight a skills deficit as a potential obstacle holding back progress. Already playing catchup with modernised counterparts following the Khmer Rouge period, which saw many intellectuals killed, the country is also dealing with the disruptions brought about by the rapid influx of industry 4.0 and the technological demands carried with it. “The breadth and depth of the talent pool in Cambodia is still relatively limited, which is a severe constraint in the journey to become future-ready,” Oon Kiat says. “Take our industry. I have mentioned that the modern trade is a growing channel with many new foreign and local entrants in the last few years, however, the talent pool of experi-

GOODHILL ENTERPRISE “We also sign up for external trainings, like the recent workshop by the Harvard Professor Sunil Gupta in a bid to familiarise and open our minds to new possibilities in the digital era,” the Managing Director adds. “Learning and development is an integral part of Goodhill’s quest to become future-ready and remain relevant.”

A FULL-SERVICE DISTRIBUTOR

Goodhill was one of the first in Cambodia to be awarded with Best Trader Group status enced and specialised people able to manage the modern trade channel well is still relatively limited. “So now, while we are having to continue to strengthen in our traditional trade channel and build up experience and skills to better manage our modern trade, there is an additional challenge to start understanding and embracing ecommerce and the digital channel.” New entrants to the market are placing an even greater squeeze on this talent crunch, but with the arrival of multinationals comes a raising of standards to international levels, something Oon Kiat identifies as a positive trend along with reform efforts from Cambodia’s Ministry of Education. Goodhill is also addressing the skills conundrum head on. A vital component of its strategic plans, expanding local knowledge and nurturing homegrown expertise is actively encouraged in the organisation. The Managing Director explains: “From day one the company had the foresight to base expatriates in Cambodia and over the years we continued 136 | Asia Outlook issue 41

to develop our internal talents, complementing them with experienced professionals from MNCs. “We are also now putting in place a talent management programme to identify suitable candidates and help accelerate their development in a bid to nurture our next generation leaders.” Indeed, Oon Kiat is passionate about driving Goodhill as a Great Place to Work, becoming a home away from home for its people and offering opportunities for them to develop their skills. For example, the firm has established the Goodhill Learning Hub for in-house training and conferences for up to 60 people at a time. Here, the company holds twice-yearly professional development training courses on top of many other meetings and events, while the management team take part in a corporate away day offsite in Cambodia or abroad to brainstorm new ideas. Close collaboration with its brand partners is also paramount to these upskilling efforts, not least with FMCG giant P&G, who help to train Goodhill’s beauty product advisors and organise workshops focused on creating the distributor of the future, allowing Oon Kiat and his team to take best practice learnings from other P&G distributors.

Such efforts have already paid dividends since the Singaporean company arrived in Cambodia in 1989, its highly skilled team building up a formidable distribution network across the country and investing in infrastructure to serve its brand partners. For Oon Kiat, this has been fundamental to Goodhill’s success to date. “Instead of using sub-distributors or wholesalers to service the key provincial cities, we chose to invest in setting up branches in these six key provinces with our own team, office and warehouse so that we can have greater control and execute better in these areas,” he says. “Systems wise, we relied on inhouse expertise to develop our own distribution management system and customised our own version of salesforce automation system. Now that we are outgrowing these legacy systems, we are planning to invest in enterprise resource planning (ERP) and warehouse management solutions to help us achieve better productivity. “With the right investments into these areas over the last 20 years, we have developed into a full-service distributor with a wide range of services from market feasibility analysis, clearance and trucking, sales and marketing, warehousing and delivery to aftersales services. This credibility built up over the years was also recognised by the General Department of Customs and Excise, Goodhill being among the first eight companies across Cambodia to be awarded the Best Trader Group status.

inc Pen & Plastics Ltd. is amongst the top manufacturers and exporters of Writing Instruments from India.

We specialise in a wide range of low and ultra-low viscosity ball Point Pens, Gel Pens and Markers with exports to over 50 countries. Linc has a manufacturing capacity of 2.8 million pens per day. The company has four manufacturing units in Kolkata and Mumbai with a dedicated team who are committed to produce excellent quality pens at affordable prices and deliver high customer satisfaction. Linc Pens reiterates its endless quest for innovation and research for the last four decades by launching the futuristic, new generation pen, “Pentonic”, as an extension to the wide range of office and classroom products. “Pentonic”, the biggest launch for the year 2019, is an up-market ULV ballpoint pen which has received exceptional response across borders. On the celebrating moment of Pentonic‘s launch, Mr Rohit Deepak Jalan, Director, Linc Pen and Plastics Limited, said: “In a time when the world is moving towards digitalization and students are typing more than writing, Pentonic gives a reason to write for its effortless smooth writing feature and Hybrid ink technology. “We at Linc, aim to differentiate ourselves with innovative products and packaging ideas, understand the consumer trends and ensure that our customers are delighted with the products they receive.”

LINC PEN AND PLASTICS LTD 3, ALIPORE ROAD 1ST FLOOR, SATYAM TOWERS KOLKATA 700027, INDIA TELEPHONE: +91 (0)33 24398066 EMAIL: exports@lincpen.com www.lincpen.com

We really appreciate and value our association with Goodhill Enterprise Cambodia and how they believe in our plans and vision for Pentonic. We sincerely thank Goodhill Enterprise for their seamless cooperation and their welcoming attitude.

T +91 (0)33 24398066

E exports@lincpen.com

www.lincpen.com

GOODHILL ENTERPRISE

“We have to understand the brand owners’ objectives and apply the local market conditions and consumer insights to customise the most appropriate solution for them,” Oon Kiat continues. “For example, depending on the brand owner’s strategy, budget and product price points, we may suggest a customised distribution model with more targeted coverage of certain channels or geography instead of a one-size fits all coverage model.” In areas too small to set up its own branch and where sub-distributors are below satisfactory levels, Goodhill has stationed its own sales representatives who coordinate with the nearest company warehouse to ensure products are delivered in a timely 138 | Asia Outlook issue 41

manner. Post implementation analysis shows a sales growth of 22 percent with no increase in distribution costs. This approach has enabled the company to build up a portfolio of well over 50 international and regional brands, many of its partners on board for more than a decade thanks to its reliable, consistent service. Oon Kiat also touched upon technology and the need to move with the times, another enabler of these long-term relationships with customers. There are four broad areas making up the organisation’s digital roadmap, the first being the aforementioned ERP and warehouse management systems which will help to streamline operations and optimise resources.

The second involves exploiting the rising trend of online and digital banking and payment methods sweeping through Cambodia, with social media and ecommerce a big focus for Oon Kiat, who believes this will add tremendous value to its brand partners. So too will harnessing the value of consumer data, the third pillar of Goodhill’s digital roadmap. “The fourth area is more aspirational but the most transformational if we are able to do it successfully,” adds Oon Kiat. “After gaining more experience in the digitalisation journey, our goal should be set on identifying major pain points of consumers or industries and attempting to solve them using digital technologies to create disruptive solutions or business models.

Want Want Group Your faithful and reliable business partner! for business enquiries, pleasse contact us at: International@want-want.com

Want Want Group is the No. 1 Rice Cracker Manufacturer in the World. Want Want’s main goal is to be recognizable across the entire world. Want Want has extended its network overseas and has entered countless markets across the world. Our overseas sales team now covers 59 different countries across 6 continents. Want Want will continue to select vital countries in order to work on marketing intensive cultivation and will constantly expand into an even larger sales network. • Over 35 years rice cracker manufacturing experience • In-house milled Japonica Rice used to ensure the best quality, flavor, aroma, and texture.

• More than 132 factories & >1,000 production lines in mainland China. • Largest flavored milk drink manufacturer in mainland China. • World’s largest manufacturer of rice crackers, second largest producer of gummy candies. • Leading manufacturer in China of other diversified products, including beverages, cookies and confectionaries. • 100% FDA audited factories.

All Natural Rice Biscuits for Kids • Baby Bites for babies 6 months + • Toddler Mum-Mum for toddlers 2 years + All these products are available in Cambodia, imported by: GOODHILL ENTERPRISE (CAMBODIA) No. 214-218, Preah Sihanouk Boulevard, Phnom Penh, Cambodia. Tel: (855)23 217 888 Goodhill imported Want Want & Baby Bite for sales & distribution in Cambodia since 2010.

Please visit us at http://www.want-want.com for more product information.

GOODHILL ENTERPRISE

Darlie Established in the 1930’s, Hawley & Hazel Group is a reliable and trusted manufacturer of high quality Darlie oral care products. Darlie is now a well-known oral care brand in markets such as China, Malaysia, Thailand, Singapore, Taiwan, and Hong Kong, among others. Since 1990s, we have introduced Darlie to Cambodia with our partnership with Goodhill Enterprise. With their national distribution network, extensive driven marketing strategies and professional management, our products have successfully penetrated into Cambodian households. Darlie products are now available in local supermarkets and grocery stores.

Goodhill’s management team often take part in corporate away days offsite to brainstorm new ideas “If we are able to embrace digitalisation to this level, then we will be able to not only survive but even thrive in the digital age.”

CROSSING BORDERS As well as growing its digital capabilities, Goodhill is also eyeing up bold physical expansion. In Phnom Penh, it is set to complete the building of a 4,000-square-metre corporate office and a 10,000-square-metre warehouse by 2020, and beyond Cambodia, Oon Kiat plans to enter markets across the wider Indochina region such as Myanmar and Laos. The company has already been dealing in the paper and stationery market in the former since 2011, but in a limited capacity due to restrictions on foreign trading. However, now the Myanmar government has relaxed legislation on overseas investment, Goodhill is looking to set up a full-scale distribution operation using Cambodia as a template. Real estate is another natural opening for the company. Given its experience in buying land and building its own warehouses and commercial 140 | Asia Outlook issue 41

Let Darlie be your daily partner in oral health!

facilities, Oon Kiat highlights the potential to explore more land investments in strategic locations across the country and develop similar assets for other organisations to either rent or purchase. Diversification and expansion do not stop here, however. “The third part of our growth strategy is our Reform to Transform project,” the Managing Director says. “We plan to transform the supply chain function from a cost centre servicing in-house customers to a profit centre – a 3PL servicing internal and external customers. “Supply chain is one of the core competencies of a world class distributor and we need to continually scale up our service levels and keep abreast of rapid industry developments. “By transforming supply chain into a 3PL business, it both strengthens our position as a distributor of choice for our brand partners and adds another revenue stream for us to justify the extensive investments into people, systems and infrastructure.” Central to this development will be ongoing collaboration with partners and suppliers, companies that Oon

P&G (Singapore) Pte Ltd. P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands. P&G has operated in the Asia Pacific, Middle East and Africa region for over 80 years. Innovation is at the heart of P&G’s business, setting its brands apart from competition and delighting consumers around the world. Every day, P&G works to improve people’s lives in small but meaningful ways with its brands

www.pg.co.uk

RETAIL

Improving Everyday Life. Our brands are trusted in millions of living rooms, kitchens, laundry rooms, and bathrooms around the world. Over the course of 181 years, we make every day more than ordinary.

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GOODHILL ENTERPRISE

The company’s CSR is built on an ethos focused on conducting business in an ethical and sustainable way

Kiat is quick to praise for the integral role they play in Goodhill’s success story. “Strong relationships with our business partners are definitely vital for our business as we will not be able to win in the market unless we have the trust and support of our brand partners, especially when business conditions are challenging,” he says. “We need to cultivate and nurture the relationship with them carefully to build trust and then strengthen it over time.” Goodhill generally classifies partners into two broad categories – tactical/trading partnerships which predominantly concern sales and taking products to market, and strategic partnerships which involve closer collaborations on product packaging and development, branding and marketing elements. Setting and aligning clear expec142 | Asia Outlook issue 41

“WE REGULARLY CONTRIBUTE OUR PROD UCTS TO VARIOUS LESS PRIVILEGED GROUPS IN ORPHANAGES, HOSPITALS, NGOS AND SCHOOLS” tations is paramount to the success of both forms of collaboration, an approach which has enabled Goodhill to develop a strong and resilient portfolio. Synergy, scalability and sustainability are three vital factors the firm looks for when scouting potential suppliers. “In addition to having mutual trust and support, we enjoy working with brand partners who have clear goals in the market with the right building blocks to achieve them,” Oon Kiat adds. “With some, we have also progressed to working on joint business plans where key business objectives are aligned – some partners even

mandated Goodhill’s profitability as one of their KPIs, which goes to show the extent they view us as a business partner instead of just a customer or trading partner.”

GIVING BACK TO CAMBODIA Indeed, building up a sustainable business in an ethical way is, for Oon Kiat, the most fundamental form of corporate social responsibility. Besides providing fulfilling career opportunities to Cambodian citizens and contributing positively to the country’s economy, the company is giving back in a number of other ways at a community level, not least in the

RETAIL form of continued support for the underprivileged. “We regularly contribute our products to various less privileged groups in orphanages, hospitals, NGOs and schools or donate to organisations like the Cambodian Red Cross,” Oon Kiat explains. “We rotate the donations to

different organisations so as to spread the help more widely to different needy groups. “Where possible, we try to incorporate a charitable aspect to our promotional activities. For example, for our Staedtler brand, we organised the World Kids Coloring Day event in

LEADERSHIP FOCUS

TEOH OON KIAT’S JOURNEY Getting involved with the family business was not a straightforward decision for Oon Kiat, who was raised in Singapore. Here he explains his journey into the company… “Growing up in Singapore, many of us had a narrative that was subconsciously imposed upon us by well-meaning parents: Study hard, go to university, graduate, get a job in a good company, work hard, climb the corporate ladder to senior management roles and retire comfortably. Of course, along this journey, get married, buy a house, have kids and ensure that they too study hard and repeat the cycle. “I was coasting along this typical narrative, studying hard, got a scholarship for my university education, graduated with a degree in accounting and worked for KPMG and Hewlett Packard for a couple of years. But the journey was disrupted in 2004 when Dad came home one day and told me that an Indonesian expatriate in Goodhill Cambodia had resigned, and asked whether I would like to fill this role.” “Cambodia was not a very conventional choice at that time as there was a common perception of it being a backward and unsafe country. “However, from the opportunity standpoint, I felt that the Indochina region was just opening up and at the initial stages of economic development. It was the right time to further entrench our business in Cambodia and also use Cambodia as a base to expand across the rest of the emerging Indochina region. “On a personal level, since I was also single then and still mobile, it was probably the best period for me to base myself overseas to gain regional exposure and experience something different as an ‘intrapreneur’.” “15 years on, I am enjoying the intrapreneurial journey which has allowed me the autonomy and freedom of an entrepreneur but with the resources and support of an existing company platform. I am convinced that Goodhill has to continue to foster a conducive environment to identify and enable more intrapreneurs who can create an exciting and rewarding future for both the company and themselves.”

Cambodia, whereby school children participate in the colouring contest and their works are then sold to donors with the funds given to a charity. “Such activities are very meaningful as they allow the children to express their creativity and also understand from a young age the importance of helping those less fortunate.” As Goodhill continues to expand its activities and drive towards becoming IPO-ready, more opportunities to support local community causes will arise, a prospect which prompts Oon Kiat to reiterate his confidence in the future of development of Cambodia. He concludes: “The projected GDP growth of Cambodia in the next three to five years remains healthy at around six to seven percent. If Cambodia continues on its pro-business policies, education and tax reforms, and follows through with the Industrial Development Plan and smart city initiatives, the mid- to long-term prospects of the country remain bright. “The retail and wholesaling industry will definitely be developing in tandem with the country’s economic developments. The increase of disposable income of the growing middle class coupled with rapid urbanisation will mean that this industry will continue to be attractive. “Goodhill’s aspirations are to not only participate in this growth but also attempt to lead the developments in the sector by futureproofing our business models and developing industry leading talents. Our intention is to widen and deepen our investments into Cambodia and continue to enrich Cambodian consumers’ lives with our global brands.”

GOODHILL ENTERPRISE Tel: 855 (23) 217 888/889/890 main_acc@goodhill.com.kh www.goodhill.com.kh

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ANYTIME FITNESS ASIA

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CHANGING

RETAIL Anytime Fitness Asia has established itself in hundreds of communities across eight countries, its gyms becoming a welcoming home away from home for its members, staff, and franchisees

LIVES Writer: Tom Wadlow | Project Manager: Josh Hyland

he Eureka moment came on a random late night in Singapore. “There were no 24-hour fitness centres anywhere in the country, and to my recollection, Asia for that matter. A quick online search, and I found this brand, called Anytime Fitness. “Serendipitously, one of my sons called me from out of the blue and asked me about this 24-hour gym he had just heard of – you guessed it – Anytime Fitness. Right then and there, I got in touch with them, and proposed to be the master franchisee for Asia.” In 2013 Maurice Levine had no idea his career was about to be transformed into the world of health and fitness. Trading in gold at the time, he was enjoying a lucrative and successful juncture in his professional life serving as CEO of Gold Buyers Asia out of Singapore. But something was missing. “I was looking for something that mattered,” he recalls, “something that made a difference, something that touched and changed people’s lives. “I believe their reaction to my master franchisee proposal was ‘who is this audacious man who wanted to bring

Top picture: Maurice Levine, Chairman and Master Franchisee, Anytime Fitness Asia

our brand not just to one country, but to an entire region that was not yet in our sights?’ “The same day they responded, I flew to the Anytime Fitness headquarters in Minnesota, and the rest – six years, eight countries, 350 territories, 250 gyms – as they say, is history.” Indeed, Levine is now Chairman and Master Franchisee of Anytime Fitness Asia, a brand that has been exponentially built up from the single gym he still owns in Woodlands, a small enclave in Singapore that went against the traditional high-traffic, high-rent grain suggested by developers. “I asked them for a location they would never show me. Woodlands is a small neighbourhood right in the middle of where people live, and its success led me to be able to franchise quickly in Singapore in 2014.” Today the company operates in seven other countries, including Malaysia, the Philippines, Indonesia, Thailand, Hong Kong and Macau, a footprint that translates into more than 250 24hour gyms across the region, and part of Anytime Fitness’s network of over 4,500 sites around the world. Beyond the bricks and mortar and

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ANYTIME FITNESS ASIA 24-seven access provided, Levine is quick to recognise that the business fundamentally boils down to its people, all of whom carry his motivation to positively impact their communities and help change the lives of others. And it has never been a better time to do so. “If it was an exciting time to enter the fitness industry in 2013, it’s an ex-

hilarating time now,” says Levine. “It’s like being present at a birth, with all the joys, pains, and fulfilment that goes along with it. The opportunities are massive, and so are the challenges. “The region is where the US, Europe, and Australia were over 30 years ago, when fitness was not yet a lifestyle and was just a fad. Setting up in a country and being part of both the learning

INTRODUCTION

POWERED BY THE PEOPLE The face of the brand, Anytime Fitness’s franchisees and staff are the people who provide the welcoming atmosphere for members and form the lifeblood of the company. For Levine, addressing the lack of formal training structure was one of the most important challenges he had to overcome when establishing the business. “The truth is, Asia does not have a certification system geared specifically for the fitness industry,” Levine explains. “We lack the technical expertise that has been available for years in more mature markets such as the US and Australia. Recognising this, we have developed our own training system, which is unique even within the Anytime Fitness network. “Training begins the moment a franchise is signed, and franchisees are required to attend a minimum of a week-long course on the brand and our operations. We then require all staff to undergo face-to-face training regularly, and these are monitored through continuing education credits for the gyms. The topics range from basic operations and our technology, to customer service and providing a good member experience. “This is then supplemented by our proprietary e-learning platform, AF Learn, which covers all the topics needed to successfully own and operate an Anytime Fitness gym. From pre-opening requirements to marketing to member retention, all staff and franchisees are continuously trained with updated content that evolves with the changing needs of consumers.”

Precor Incorporated Precor Incorporated is one of the foremost suppliers of fitness solutions across the globe. With operations in over 80 countries, Precor is ideally positioned to meet all your business needs. Precor is a proud member of Amer Sports Corporation, one of the leading sporting goods companies in the world, with a brand portfolio including Salomon®, Wilson®, Suunto®, Atomic®, Peak Performance® and Arc‘teryx®. Through a strong focus on experience design, Precor delivers best-inclass products, top-ranked service, unparalleled expertise and resources needed to help facility operators win. At Precor, we don’t just design products, we design experiences.

humphrey.leung@amersports.com

Paul-Tec Security Group The Paul-Tec Security Group is proud to have recently been awarded ‘Anytime Fitness Asia Vendor of the Year’. Paul-Tec has designed and installed specialised integrated safety, security, CCTV, computer and access control systems for Anytime Fitness since 2014, working with AF franchisees in many countries including China, Hong Kong, Philippines, Thailand, Indonesia, Malaysia, Singapore, Taiwan, Australia and New Zealand. Call Paul-Tec anytime when you need a security solution!

T 612 8811 3100 E lindsay@paul-tec.com.au www.paul-tec.com.au

146 | Asia Outlook issue 41

RETAIL

EXPERIENCE THE DIFFERENCE Through a strong focus on Experience Design, Precor delivers best-in-class products, top-ranked service, unparalleled expertise and resources needed to help facility operators win. At Precor, we don’t just design products, we design experiences.

AT YOUR SERVICE Mr. Humphrey Leung, Business Manager Southeast Asia P: 00852-97259702 E: humphrey.leung@amersports.com

The Paul-Tec Security Group is proud to have recently been awarded ‘Anytime Fitness Asia Vendor of the Year’. Paul-Tec has designed and installed specialised integrated safety, security, CCTV, computer and access control systems for Anytime Fitness since 2014, working with AF franchisees in many countries including China, Hong Kong, Philippines, Thailand, Indonesia, Malaysia, Singapore, Taiwan, Australia and New Zealand. Call Paul-Tec Anytime when you need a security solution!

Paul-Tec Security Group Asia

Paul-Tec Security Group Asia Office: Level 30, The Gardens Noth Tower, Lingkaran, Syed Putra, 59200 Kuala Lumpa, Malaysia. Phone Australia Head Office: 612 8811 3100 Web: www.paul-tec.com.au Email: lindsay@paul-tec.com.au

Asia Outlook issue 41 | 147

ANYTIME FITNESS ASIA and the educating process, watching more gyms open and more people get involved, Anytime Fitness is there when the industry is born.” Levine also points to a statistic which represents both the greatest challenge and opportunity to the fitness industry in Asia. Again, people are front and centre here. Across Anytime Fitness’s Asian markets, an average of just 2.17 percent of citizens are gym goers, with an even smaller number considering fitness as a viable business investment, or a job through which to forge a career. However, the goalposts are moving thanks in no small part to the work of Anytime Fitness in changing perceptions. For instance, it partners with national governments on their longterm nationwide fitness goals and also works within communities where its expertise is needed. “We have a growing network of franchisees who are now multi-gym owners, having seen monetary and emotional return on their investment,”

An image showcasing the typical layout and equipment found within one of Anytime Fitness Asia’s 250 gyms

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Levine explains. “And as we grow, the number of people employed in fitness, and who see fitness as a viable career, also grows with us.”

COMMUNITY PILLARS Central to the momentum being gathered by Anytime Fitness Asia is the simplicity and impact of its business model. Levine summarises: “Our model is simple, and that is why it works. Be within one to three kilometres of where people live and work; offer safe, convenient, secure access to a gym with top-of-the-line equipment; and provide a surprisingly personable experience to members and the community. “People do not enter gyms if they are intimidated, so we set out to welcome everyone – first-time gym goers, disillusioned former members, athletes, and gym buffs. This has created a community of people with varying interests and goals but with a shared safe space to work towards them.” For Levine, this sense of camarade-

rie sits at the core of Anytime Fitness, its gyms acting as a place where people feel welcome and safe. Beyond serving as a hub for members, the company’s franchisees actively support local CSR initiatives and address the needs of their areas. Locations with young families, for example, may benefit from programmes that involve their gym hosting nearby schools, while those near more elderly populations might partner with retirement homes to spread the benefits of being active. “We encourage and instil this mindset in franchisees from the first time we meet with them, and reinforce it with their staff through our continuous training,” Levine adds. “Our success attracts them to the business, but they return and open more gyms because they realise how much more fulfilling it is to not just run a business, but to change lives.” This sense of community extends into providing business for local enterprises, with franchisees encouraged to procure items such as office supplies

RETAIL

The company is dedicated tomaking a difference to the lives of its members as locally as possible. The bigger procurement involving machinery and gym equipment is carried out through Anytime Fitness’s global network, ensuring the benefits relating to economies of scale are realised.

DRIVEN BY DATA Franchise partners also leverage cutting-edge technology to streamline and optimise their operations, not least through the Anytime Fitness app. Available on and offline, it completes the experience for members by enabling them to set and track goals and communicate with personal trainers. Users can also use it to locate gyms when they are away from their local centre, with memberships covering the

entire Anytime Fitness network. Another critical benefit the app can harness for the business is information. Asked what trends he sees impacting the market in Asia in the coming years, Levine emphatically responds: “Data, data, data. As we move the gym experience from on-ground to online, we will have more data on our members – what they need, when they need it, and how we can provide it. “From customised workouts to personalised communication to a holistic view on health, wellness, and fitness, these will become more important to both gyms and our consumers. “At Anytime Fitness, we have moved from simply providing convenience to caring and coaching, and we are enabling our gyms to take it to the next step – customisation and communication. It’s not about being always on, it’s about being on top of what our members need and want.”

CHANGING MORE LIVES The near future is also about serving the needs and changing the lives of a greater number of members. For example, Anytime Fitness has recently moved into the Indonesian market, its two existing gyms set to be joined by another six in and around the Jakarta area. It is a country with abundant scope to adopt a formalised fitness presence with just 0.18 percent of the population in possession of a gym membership, and Levine’s goal is to expand into the provinces outside of the capital city. Indeed, Levine is set on targeting

the provincial and traditionally underserved areas in the seven other Asian countries Anytime Fitness operates in, the company looking to establish itself in locations not previously touched by other big brands. “We aim to be truly networked within a country, where members can access an Anytime Fitness near their home, their place of work, and even on vacation,” he says. “We are already doing this, and the response has been highly positive. “We are also revisiting our current locations to determine whether communities need another gym. We are not looking for the greatest number of members in a gym, hence our small footprint – we are looking for spaces where people can feel they are welcome, and that they belong.” Beyond expanding the bigger picture, the Chairman’s priorities also include enhancing the everyday operations that keep Anytime Fitness up and running. Levine concludes: “Continuous improvement is our ever-moving goal post every year. “In franchise sales, we are streamlining the process and making it easier for new franchisees to onboard and for existing franchisees to open new gyms. For club operations, it’s understanding and gaining even more insight into the challenges our franchisees face and how we can support them better. “Anytime Fitness Asia will continue to work to become more than a gym, a business, a franchise – we are a movement to change lives, and we welcome everyone to join.”

ANYTIME FITNESS ASIA franchise@anytimefitnessasia.com www.anytimefitness.com

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SUPER VALUE STORES

Enhancing Quality, Expanding Quantity For PNG-based business Super Value Stores, wholesale and retail is all about creating customer benefit by providing better products at better prices Writer: Jonathan Dyble | Project Manager: Josh Hyland

enowned as one of Asia Pacific’s most resource-rich nations, Papua New Guinea has made great strides in recent decades. Between 1967 and 2017, GDP per capita grew from just $196 to $2,556, the country having continued to capitalise on a booming exports industry underpinned by various commodities such as gold, timber, fish and natural gas. More recent times have witnessed a shift away from this export-led growth, however. Owed to a national drive geared towards achieving environmentally sustainable economic prosperity, other industries such as the retail sector have come to the fore. This, coupled by increasing urbanisation and a rising middle class, has facilitated the gradual replacement of the traditional informal retail segment with shopping centres and modern stores, paving the way for a number of 150 | Asia Outlook issue 41

different businesses, be it automotive, industrial or grocery retailers, to thrive. And in the eyes of Lalani Hanafi, Executive Director of local wholesale company Super Value Stores (SVS), everyone’s a winner. “Wholesale and retail development undoubtedly improve quality of life by improving the quality of goods distributed to the population,” she states. “For example, we’re able to provide better options for proper nutrition to growing infants like milk and instant baby food filled with vitamins instead of just plain rice porridge or mashed tapioca or papaya. “Medication and vitamins in Papua New Guinea are overpriced and unaffordable to the average Papua New Guinean, so SVS tries to ensure its products provide health benefits and fill our customers’ stomachs without emptying their pockets. “The satisfaction of finding goods

that offer value for money and getting positive feedback from our customers brings joy to the work, for sure.”

BRINGING BENEFITS FOR ALL Indeed, Hanafi is not naïve to the fact that the industry remains in a relatively infant state and challenges remain. “Unfortunately, there are still many gaps in this community to fill,” she affirms. “But this does mean there is room to grow, lives to be improved and a difference to be made, and that is exciting!” Achieving this is a core part of SVS’s overriding mandate.

RETAIL

Established in 1986, the company has risen to become one of the country’s leading retail and wholesale players, remaining ahead of the curve by consistently seeking greater value for its customers. “We focus on better products and better price – not one or the other,” Hanafi states. Primarily a wholesale business, the company sells everything from groceries to beauty products, clothing, textiles, footwear, electronics and bicycles by the container load, its distribution footprint spanning 22 provinces in PNG. The majority of its operations stem from a core logistics hub in Lae, the

country’s key industrial hub and largest cargo port, located near the delta of the Markham River and at the start of the Highlands Highway, which is the main land transport corridor between the highlands region and the coast. In addition, however, it operates warehouses in Mount Hagen and Kokopo – facilities that expand the company reach to the highlands and New Guinea Islands respectively. “We also run a supermarket and department store in Lae at Top Town, the central area of the city, and along with other partners, a supermarket and sports retail outlet in Port Moresby,

the capital,” the Executive Director adds, before pointing to the role of its suppliers as crucial to the success of the enterprise. Maintaining close working, mutually beneficial relationships with many of its business partners, the firm is able to consistently bring new, improved and diversified products to PNG while simultaneously providing the platform for many brands to become market leaders in their respective product categories. “We are the sole distributors or agents for a number of our products in PNG, so distribution and growth become a team effort between us and Asia Outlook issue 41 | 151

SUPER VALUE STORES our suppliers. For this reason, our relationships with them are very important,” Hanafi affirms.

CHAMPIONING COMMUNITYLED CHANGE Unquestionably, much of the same can be said for the business’s relations with both its staff and the surrounding communities in which it operates. The latter, encapsulated by an extensive corporate social responsibility programme, is a major focus of the company, the business running a host of different initiatives from its Supa V projects that stand as containerised convenience stores to regular donations for earthquake victims, churches and hospitals. Arguably the most important of these community-centric efforts, however, is the firm’s empowerment of education. Hanafi explains: “The lack of local infrastructure and distress this country

faces, in the areas of social crime, health, internet connectivity, safe public transportation and poverty, begins with poor education. “Owed to an absence of quality knowledge and skills and the high cost of education, there are a large number of dropouts at both primary and secondary levels. This makes it very challenging to find talent and, more importantly, talent of integrity. “As an enterprise that has been part of this society for more than 30 years, we want to be part of the solution to this problem.”

LEADERSHIP FOCUS

LALANI HANAFI “I have always wanted to be a successful businesswoman from a young age,” Hanafi states. “I was raised with business as my future.” Graduating from Monash University in Melbourne, Australia, Hanafi swiftly moved to Papua New Guinea to support her family business – Super Value Stores. Working her way up through various departments, she came to understand the organisation’s intricacies, strengths and weaknesses, insight which helped to bolster her skillset and appreciation of interpersonal relationships. “Teamwork doesn’t only improve performance at SVS. It also provides a sense of belonging and purpose in the fruits of our work, allowing us to see how we bring satisfaction to our customers and benefit to the communities that we operate in,” the Executive Director explains. “I think I fell in love with this part of the process more than the wholesale retail industry specifically. I believed in the benefits we are bringing to our community, making people’s daily lives better to the best of our ability, as much as we can, while still maintaining profitability so that we can continue operating for the long term.”

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To this end, the Executive Director and her team are in the process of setting up the SVS Foundation – what will be a non-profit social investment division of the company that will prioritise education improvements alongside family-orientated initiatives and community action plans. “Whether it’s focusing our efforts on helping children, women and healthcare or helping local communities in the areas of law and order, grassroots sports and climate change, we’ll continue to try to make a difference wherever possible,” Hanafi affirms.

And it is clear that similar attitudes translate into the firm’s employment practices via the SVS Institute of Learning, launched in order to address the lack of external quality training institutes available for the business to engage by offering its own development programmes. “We currently have over 300 employees, each of whom benefit from the SVS Institute of Learning,” Hanafi reveals. “Further, we have also been awarded the Good Corporate Citizen award in previous years, providing positive credentials for recruitment.”

FACING UP TO THE TASK Moving forward, the aforementioned social upliftment efforts will be accompanied by an abundance of alternative, progressive and diversified investments. The company is in the process of building on its existing service portfolio, looking into the potential benefit of implementing a customer relationship management system and expanding its ecommerce presence.

RETAIL

Excellence in Baker’s Yeast

IMPORTED BY SVS Ltd. PO Box 1988, Lae 411, Morobe Province, Papua New Guinea Tel: (675) 472 1688 Fax: (675) 472 6103 www.svs.com.pg

PAKMAYA_ASIA_MAGAZINE_ILAN_ONAYLI.indd 1

“We’re also diversifying into exports and beginning to assist local agricultural industries,” Hanafi adds. And while each of these progressive strides will continue to take SVS to new heights, the Executive Director is equally quick to reemphasise the fact that numerous challenges remain. She concludes, advocating for numerous changes to be made to ensure that the wholesale and retail industry can thrive in PNG in the long term: “Doing business in PNG is by no means easy. Operating costs such as

electricity, the transportation of goods and security expenditure remain high, and a lack of foreign exchange in recent years has failed to help address these issues. “The government has also been trying to encourage investors to set up local manufacturing plants by increasing import tariffs. And while this serves its purpose to an extent, there is not a quality control institution ensuring that the products manufactured locally are done at a respectable level of quality. “This may altogether harm the end consumers because if they want cheaper products then the quality will be unsatisfactory, and if they want better quality products then they are unable to afford them. “Equally, the retail industry has become inundated with many enterprises that do not play by the rules. The government and Internal Revenue Commission are tightening up on the collection of good and services tax,

11.09.2019 10:10

corporate income tax and salary withholding tax, but focusing only on registered companies, killing their golden goose. The focus should be on those operating whilst getting away with under declaring taxes, import tariffs, fake copies and parallel imports that do not meet the supposed import regulations in English packaging and quality. “Yet, despite these hurdles, we hope to continue growing through internal improvements in corporate governance, improved efficiency and effectiveness, and a potential boom set to follow the country’s second LNG project and a major upcoming gold mine.”

SUPER VALUE STORES Tel: +675 4721688 sales@svs.com.pg www.svs.com.pg

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MEINHARDT SINGAPORE

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CONSTRUCTION

Singapore’s

Shapeshifter S

ingapore is, like many major cities around the world, changing at breakneck speed. Rightly perceived as a poster child for modernity and an almost faultless smart city template, the island nation too is having to adapt to changing dynamics that are somewhat out of its authorities’ control. Climate change and rapidly evolving technology are two examples, while shifting demographic patterns also present a conundrum, one that is accentuated by the fact that Singapore itself is a city-state. A critical driver of cities’ income expansion since the turn of the millennium, population growth is starting to slow thanks to falling birth rates and the reality that people are living longer. Indeed, by 2030, one in four Singaporeans will be aged 65 years or older, what Dr Shahzad Nasim describes as a silver tsunami. Nasim is Executive Chairman of global engineering firm Meinhardt, and also the Managing Director of its well-established and sizable Singapore subsidiary. He has witnessed first-hand the changing dynamics of the city and, while recognising the various challenges that lie ahead, is excited about the opportunities that this brings to the construction sector and his company, not least as part of the response to climate change. “The effects of climate change loom large in the horizon,” Nasim com-

Thanks to its one-stop shop approach and can-do attitude, Meinhardt Singapore has been involved in nearly 4,000 projects across the city-state since it started out as a 10-person operation in 1974 Writer: Tom Wadlow | Project Manager: Tom Cullum

Dr Shahzad Nasim, Meinhardt Group Executive Chairman and Meinhardt Singapore MD ments. “Singapore’s Prime Minister Lee Hsien Loong recently highlighted the urgent need for us to futureproof our city against the effects of climate change, which will bring about rising sea levels and potentially disruptive effects here. “Singapore is uniquely placed as our government agencies plan long

term, sometimes with a 50-100-year time horizon. Meinhardt is happy that we are able to work alongside our government agencies, providing innovative engineering solutions for our projects.”

GROWING SIDE BY SIDE Nasim’s statements are backed up convincingly by numbers, its project portfolio in Singapore nearing 4,000 developments since it arrived in the city-state back in 1974. From a team of just 10 people and five projects on the books, Meinhardt Singapore has exponentially risen to become arguably one of the most prominent international consultancies in the country, its employee base now standing at 450-strong. It has been involved in some of the most iconic developments that have come to define the unmistakable Singaporean skyline, including Marina Bay Financial Centre, Gardens by the Bay, Changi Airport T1, One Raffles Place, One Raffles Quay, Tanjong Pagar Centre (Guoco Tower) and many transport interchanges and MRT (metro) projects. “From starting on simple projects providing single engineering discipline services, we have grown to establish ourselves as Singapore’s leading engineering firm providing master planning, integrated multi-disciplinary engineering, planning and project management services,” Nasim proudly states. Asia Outlook issue 41 | 155

MEINHARDT SINGAPORE “Through hard work, a forwardlooking strategy and never being satisfied with the status quo, we have established a reputation for innovative engineering solutions that help our clients save time and money.” This is driven by an unwavering commitment to achieve outstanding results. Nasim continues: “Engineers, working with other stakeholders, need to question the status quo, think out of the box and come up with unconventional solutions, and that includes rejigging the design. You have to get the best outcome, and the best outcome is about improving safety, environmental sustainability, cost, constructability and time.”

“Everyone in the team looks for the best solution – it takes out the guesswork and overcomes passive engineering. Innovation is not something that you do once-off. It’s a culture in an organisation.” Securing increasing numbers of jobs as a lead consultant, Meinhardt Singapore has emerged as a high value-added engineering enterprise, its projects operating at higher margins for all parties thanks to its reputation for innovation that is etched into its DNA. So too is passion for the profession, something which Nasim himself carries in abundance. “Engineering is a unique discipline that allows you to serve country,

BACKGROUND

ABOUT MEINHARDT Meinhardt, established in Melbourne in 1955, has been present in Singapore since 1974, a move which laid the foundation for the group’s rapid international growth. Today Meinhardt Group operates out of 51 offices worldwide with more than 4,500 consultants, its locations including Australia, Greater China, the UK, India, Pakistan, Malaysia, Indonesia, Thailand, Vietnam, Philippines, Middle East and Africa, as well as Singapore. Its capabilities cover a range of areas, such as civil and infrastructure, planning and urban development, structural engineering, mechanical, electrical and plumbing (MEP) engineering, project management, and water and environment. Specialist capabilities cover façade engineering, environmentally sustainable designs (ESD), fire performance engineering, integrated design management, specialist lighting and mission critical facility design.

Azbil Corporation Looking to the Smart Cities of Tomorrow In the future, smart cities will set urban standards for comfort and sustainability. You will be able to walk into a building and the temperature will automatically be adjusted to a level you find comfortable. When you leave, the building will automatically reduce energy consumption and redirect excess electricity to other buildings within the grid. Bringing about such developments requires advanced technology to measure various environmental factors, control them in the precise way that occupants desire, and adjusting energy demand. Japanheadquartered Azbil Corporation, a leading company in building and industrial automation, is endeavouring to make this a reality. Leveraging its expertise in measurement and control technologies, the company is working towards the implementation of Society 5.0, Japan’s vision of a super smart society in which technologies such as IoT, big data, and artificial intelligence are used to resolve social issues and improve people’s lives. Azbil has already incorporated such innovations into its building management systems and, in the future, will use its area energy management system to integrate buildings with each other by connecting them through a smart centralised network. Although this sounds complicated, what it means is that Azbil plans to integrate smart buildings into smart communities, and, in turn, integrate those into smart cities. Although technology is at the core of this vision, user experience and environmental preservation are at the forefront. Smart cities have the potential to make our lives better and protect our increasingly vulnerable earth. Strategic Planning & Development Office for Southeast Asia E info@sg.azbil.com

www.azbil.com

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Going Beyond Automation

A better tomorrow begins today At Azbil, it has always been our goal to create comfortable and safe work environments. This aspiration has motivated us to perfect our measurement and control technology for more than 100 years, just as it defines our future. Together with our customers, we strive to do more than add value â€“ we are shaping a more secure and sustainable society for all.

Azbil Corporation Headquarters: Tokyo Building, 2-7-3 Marunouchi, Chiyoda-ku, Tokyo 100-6419, Japan Singapore: No 2 International Business Park, The Strategy Tower 1, #04-09 Singapore 609930 Email: info@sg.azbil.com

MEINHARDT SINGAPORE

communities and make a difference to the lives of the public at large, whilst leaving a lasting legacy behind,” he says. “This, in itself, is an inspiration for anyone. “For me, engineering has always been in my blood and Meinhardt Singapore has a special place in my heart. It is where I started my career, and I am proud to have helped expand the group’s business globally.” Nasim’s own dedication translates into his team of highly skilled engineering experts. It is a pool of knowledge almost unrivalled in the industry within Singapore, one which has taken tireless effort to build up over the years in the face of growing competition for talent. While the profession was once a go-to for graduates back in the 1980s, Nasim has witnessed increasing numbers of bright youngsters opt for careers in other sectors such as law, banking and medicine, among others, creating a more competitive 158 | Asia Outlook issue 41

recruitment arena for companies like Meinhardt. “Notwithstanding, engineering is still a choice profession for inquiring minds,” he says. “Competition for talent in our trade is strong and that is where companies that offer engineers exposure to exciting and technically challenging projects, as well as training opportunities, will win the talent war. “We believe in recognising and properly rewarding the talent, including equity shares in the Group. This is the best way to attract and retain skilled people.”

A SUSTAINABLE FUTURE Just as winning the talent war is critical to the longevity of Meinhardt Singapore, so too is the adoptions of sustainable thinking. “Sustainability is no longer just an industry buzzword,” Nasim continues. “It is an imperative for the engineering profession. It does not just serve to preserve the environment, it also

makes for a good business case over the long term. For example, there may be slightly higher initial capital expenditure, but long-term operational cost will reduce and more than offset the initial outlay.” Meinhardt has been front and centre of the sustainable building drive in Singapore, with many of its projects being designed in a way that reduces carbon footprints and cuts down on energy usage. Its credentials were amply demonstrated in October 2018, the firm recognised as “Asia’s most influential company” under the Leadership/ Enterprise category at the prestigious Asia Corporate Excellence & Sustainability Awards (ACES). It has not been a lone journey, however, with Nasim eager to stress the key role its supplier network will continue to play in helping steer the sustainable conversation in Singapore’s building industry. “As urban and infrastructure de-

CONSTRUCTION

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velopments become more complex, construction industry players need to address their projects with a multi-dimensional approach,” he explains. “They need to move away from just being suppliers of single service but consider how they can be part of an integrated systems approach, working hand-in-hand with all stakeholders. “This can be done through technology collaboration and converging services with other industry players to build a seamless ecosystem for the built environment. Evolving platform services where shared resources can be utilised more efficiently and effectively across territorial jurisdictions is another way. “Aggressive training initiatives to retrain and nurture a new generation of leaders in this industry is crucial. Our sub-consultants are crucial to delivering large infrastructure and multi-use, complex and smart building projects.” Diversification of its own expertise is another way in which Meinhardt is

futureproofing itself against the challenges of the future. For example, it is enhancing its value proposition by offering integrated engineering, project management, financial advisory and smart city planning services, not just in Singapore but also in Asia, South Asia, the Middle East and Africa. “Our network of 51 offices controlled out of Singapore HQ gives us redundancy unmatched by others,” adds Nasim, who concludes by sharing a balanced, yet ultimately optimistic outlook for the future of the industry and the development of Meinhardt Singapore. “While we have done well in the past, the last few years have been challenging for all. As the industry consolidates, engineering services become more commoditised and the construction sector slows down. Combined with the pessimistic global outlook as a result of the US-China trade war, Brexit and the situation in

Hong Kong, it looks like the setting for a perfect storm. “It is not all doom and gloom though. In such times, it is important that we reinvent our processes and business strategy to stay ahead of the game – there are always opportunities. “Our strong regional presence and global foot-printing envisioned years ahead is helping us in these turbulent times. We believe that with the company’s envisioned leadership, committed and talented staff and the powerful engineering solutions we offer, we will grow bigger, better and professionally stronger.”

MEINHARDT SINGAPORE Tel: +65 6273 5255 info@meinhardtgroup.com www.meinhardtgroup.com

Asia Outlook issue 41 | 159

HORNIBROOK NGI

160 | Asia Outlook issue 41

CONSTRUCTION

Driven by

Development A company characterised by transition and transformation, Hornibrook NGI continues to catalyse PNG’s economy with its diversified construction services Writer: Jonathan Dyble | Project Manager: Tom Cullum

apua New Guinea (PNG) is not known as one of Asia Pacific’s economic powerhouses. Yet it is a nation that is beginning to make a real name for itself. Earlier this year, the World Bank released a bullish assessment of the country’s economy, forecasting subdued inflation, a surgent local currency (kina) and GDP growth of five percent. Indeed, PNG’s remarkably diverse mineral reserves and thriving agricultural industries have traditionally played a major part in mapping out this rise and will continue to do so. However, the World Bank also claims that much of the economic buoyancy set to sweep across the country can be attributed to an enhanced emphasis on expanding economic diversification. From the catalysation of the private sector to greater investment in infrastructure and human capital, steps are being taken and PNG is becoming celebrated as a country on the up.

Mal Lewis, Chairman of Hornibrook When Mal Lewis joined Hornibrook, he immediately set about a restructuring exercise which has seen the company transform into a more efficient organisation

One local company embodying the optimistic outlook amidst this climate is Hornibrook NGI (HNGI). With roots stemming from the 1940s, the business has been an integral part of PNG’s industrial and resource development over the years. That said, its present stature as an industry-leading construction specialist is largely owed to a critical period of consolidation that occurred from 1994 onwards following the arrival of current Chairman and Australian national, Mal Lewis. “I joined Hornibrook as Managing Director and hastily had to restructure things because the company had simply lost its way a little,” Lewis explains. “Over the next couple of years or so, we closed down all the subsidiary joint venture operations. It was a bit of a learning curve for me, both in understanding the business as I’d previously been involved in the aviation and telecommunications sector, and the PNG market.”

Asia Outlook issue 41 | 161

HORNIBROOK NGI

EastPac

PORTFOLIO SNAPSHOT

BURNS PHILP & TRIBAL DEN LOCATION: Port Moresby CLIENT: Nasfund VALUE: PGK 40 million ($11.8 million) ABOUT: Included the total refurbishment of the Tribal Den building and a complete rebuild of the historic Burns Philp building. A large car park was also included in the project.

East Pac Limited, a company in Papua New Guinea, established in 1996, with its head office in Lae, Morobe province and branch in Port Moresby. It is mainly a distributor of Asphalt/ Bitumen, Fire Extinguishing products, Marine Parts, Chainsaw Parts and Auto Parts. It gradually expands into road construction machineries from Germany, and eventually diversified into Fire and Safety System which has become a prominent business expansion of the company. Head Office: EAST PAC LIMITED P.O Box 1439 Lae, Morobe Province Branch address: EAST PAC LIMITED P.O Box 1025 Vision City NCD 111, Papua New Guinea

eastpac.png@gmail.com

A TALE OF TRANSITION AND TRANSFORMATION Gradually, the company was able to learn and transition over the course of the next decade, finding new footing as a steel fabrication and construction specialist in both Port Moresby, PNG’s capital city, and Lae to the north – the country’s second largest settlement. It was at this point in 2004 that the firm reached another major milestone in its history, the company having been acquired by Lewis and some other private shareholders. Thereafter relocating its headquarters to Lae, HNGI set about expanding its capabilities under its new ownership, delivering on numerous projects including the resurrection of the iconic Burns Philp Haus, crucial infrastruc162 | Asia Outlook issue 41

ture and bridges (in line with both Australian and PNG standards), and other civil works such as a 9,000 cubic metre concrete development for the Warastone Oil Palm Mill in Kimbe, New Britain. “From 2010 onwards, we seemed to be going in all directions,” Lewis reveals, continuing to map out the company’s meteoric rise. “Our mobile cranes got bigger and more complex. In 2004, our biggest truck mounted crane (TMC) was 75 tonnes and our rough terrain cranes were 20 tonnes, but today we have 170-tonne TMCs and 80-tonne rough terrain cranes, for example.” In line with this, the company’s projects followed a similar trend, scaling up dramatically.

CONSTRUCTION

• Road Construction • Fire Extinguishing Products • Outboard Motor Parts • Chainsaw Parts • Auto parts

(675) 472 0909 | eastpac.png@gmail.com

Whether you are the world’s largest miner or the best workshop in town. Bishops have been doing the little things for over 45 years.

Locations PNG – Port Moresby Ph: (+675) 325 1088 PNG – Lae Ph: (+675) 472 3799

PNG – Kimbe Ph: (+675) 983 5500 PNG – Kokopo Ph: (+675) 982 9911

bishopbros.com.pg sales@bishopbros.com.pg PNG – Madang Ph: (+675) 422 1344

PNG – Mt. Hagen Ph: (+675) 545 1990

Solomon Islands – Honiara Ph: (+677) 30046

Asia Outlook issue 41 | 163

HORNIBROOK NGI

PORTFOLIO SNAPSHOT

SP BREWERY TANK FARM LOCATION: Port Moresby CLIENT: SP Brewery VALUE: PGK 4 million ($1.2 million) ABOUT: Involved the supply and construction of a new tank farm for SP Brewery in Port Moresby, facilitating its expansion.

ations and couldn’t pay. Nonetheless, I’m proud of the lives we saved and the friends that we made in doing so.” A humbling example, the Lae International Hospital is not the sole proof of HNGI’s project success, however, the organisation having also transformed the Crossroads Hotel into a fully-fledged commercial operation. Further, the more recent launch of Hornibrook’s Road Construction Division in 2017 has been similarly fruitful, owed to a major contract for work on a major roadworks project on Manus Island in conjunction with Jacobs and the Australian Department of Home Affairs. This includes the remediation of 4.4 kilometres of unsealed roads within the Lombrum Base and the sealing of a further 5.6 kilometres of road between Lombrum and Lolak Junction, with Hornibrook also required to complete a 12-metre bridge, meaning

it is a flagship for the region. “Ultimately, this is just one project. We’re looking to further our venture into road building projects throughout PNG moving forward,” the Chairman adds.

A NEW FRONTIER Indeed, the future undoubtedly looks bright for Hornibrook NGI. Not only renowned as a key proponent of the success of PNG’s industrial and resource development, the company is now set to play a major role in facilitating the continued economic diversification of the country, catering to the needs of both local and foreign clientele. In the eyes of Lewis, HNGI’s and indeed his own learnings over the past two decades will be crucial in capitalising on the opportunities that present themselves during this impending period of prosperity.

PORTFOLIO SNAPSHOT

MANUS MARKET LOCATION: Manus Island CLIENT: Incentive Fund and Aus Aid VALUE: PGK 5 million ($1.5 million) The evidence comes from Lae International Hospital, a flagship facility built, owned and operated by Hornibrook itself until 2015 to provide an alternative to the public Angau Hospital that had deteriorated to an almost unusable state. “We ended up selling the hospital to Pacific International Hospital in 2015. We thought they might do better with it in the long run,” Lewis states, also revealing that he handed over the Managing Director position to his son the year before, taking up his current role as Chairman of the firm. “It was supposed to be a lucrative venture, but we ended up treating a lot of people who were in desperate situ164 | Asia Outlook issue 41

ABOUT: A full scale project that included an array of different space to fit out a fish and meat market, shops and offices.

CONSTRUCTION

Hornibrook has greatly increased the size and stature of its crane fleet

PORTFOLIO SNAPSHOT

PRIMA WAREHOUSE LOCATION: Lae CLIENT: Prima Small Goods VALUE: PGK 15 million ($4.4 million) ABOUT: Contracted to complete a large refrigerated warehouse including a car park, loading dock, kitchens, storage sheds and administrative offices.

“PNG is a relatively small economy when compared to the likes of Australia,” he affirms. “As a result, we’ve learnt the importance of diversification, evidenced by our proficiencies in delivering anything from bridges, mining process plants and barges to property maintenance services and road construction. “As one market declines, another picks up, meaning this array of specialisms sustains us long term. “We’ve always cited that we are not in PNG for the short term, and we’ve always wanted to do things differently with a can-do attitude. As a result, we’ve got into a range of marvellous adventures over the years, from running a hospital to running a night club, working all over the country, making lots of friends and enjoying ourselves! “When things have been hard, we’ve only been thankful, because if the work was easy then the rewards would be smaller. It’s these attitudes and this progressive culture that we hope to maintain for decades to come.”

HORNIBROOK NGI Tel: +675 4758601 hngi@hornibrook.com.pg www.hornibrook.com.pg

Asia Outlook issue 41 | 165

VIVABLAST

166 | Asia Outlook issue 41

CONSTRUCTION

PRESERVING INDUSTRY EMPOWERING PEOPLE A business epitomising the meteoric rise of Vietnam and ASEAN during the past two decades, VIVABLAST successfully fuses Asian culture and values with western techniques to deliver excellence in industrial asset preservation Writer: Jonathan Dyble | Project Manager: Donovan Smith

he 20th century was largely a period of hardship for Vietnam. Categorised by a combination of French colonial rule (1858-1945), the First Indochina War (1946-1954) and the Vietnam War (1955-1975), decades of conflict had left the nation in a state of disrepair. Yet, despite the odds, the country began to turn a corner during the 1990s. Political reforms brought about by Doi Moi beginning 1986 saw an agricultural overhaul and influx of foreign

direct investment, allowing its previously untapped potential to blossom. By the turn of the millennium, more than 30,000 private businesses had been created, poverty had been nearly halved and GDP growth rates were peaking at seven percent. Fast forward to the present day and prosperity remains steady. The countryâ€™s economic output has risen from $31 billion to over $233 billion over the past 19 years â€“ a growth record described as remarkable by the World Bank. Asia Outlook issue 41 | 167

VIVABLAST And similarly, the future looks bright. The Vietnamese construction industry, for example, a central facet of the country’s fast-paced economic development, currently benefits from annual investments double that of global averages. Meanwhile, estimates suggest that $25 billion per year will be required in order to meet the country’s sustainable infrastructure needs moving forward. Resultantly, opportunities for local industry stalwarts are currently abundant. “For Vietnam, and for the ASEAN as a whole, the demand for construction activities and asset maintenance has been steadily growing during the last 20 years,” affirms Boris Vivares, General Manager of VIVABLAST, a native industrial assets life solutions specialist. “Today, we are witnessing further dynamism and growing investment and FDI within modern infrastructure developments. There’s a very strong push to meet power generation needs,

REPUTABLE, RESPONSIBLE VIVABLAST has built its success on the foundations of numerous esteemed corporate values. VISION: To be the most preferred and trustful solutions provider for industrial asset preservation. VALUES: Safeguard health and safety, deliver service excellence to customers and leverage the power of a united will to reach its goals. COMMITMENT: Conduct business through transparency, loyalty and integrity for the benefit of all stakeholders, striking a balance between economic growth, corporate social responsibility and sustainable environmental performance. 168 | Asia Outlook issue 41

with a notable institutional focus on renewable energy and energy optimisation.” A French citizen, Vivares himself arrived in Vietnam for the first time in 1998 owed to the positive climate, joining his father Jacques who had moved to the country four years earlier to help solve an ongoing management crisis at a declining French construction business. “My father always has the ambition of developing his own construction specialties business with me,” Vivares states. “1994 is ultimately the year that this dream began to take shape. “At that time, the situation was extremely bad for the French firm, but there was still an outlook of strong potential fuelled by Vietnam’s rapid economic development. “Not long after I arrived, my father entered into a discussion concerning the orientations for the future of the business with the existing owner. We received information that the corporate decision was to pull out of Vietnam in view of the struggles, despite the positive results he had brought about that had helped to keep the business afloat. “My father and I discussed the present situation and ended up proposing to acquire the business. Conditions were discussed, an agreement was reached, and in 2000 VIVABLAST was officially born. “It marked my full-bodied venture into the industrial construction business – a leap of faith into the 21st century.”

A THREE-PRONGED EVOLUTION Two decades in the making, VIVABLAST’s history can be defined by three major milestones – landmark periods that have moulded the business into what it is today. From the crucial kick-starter period to a series of recent diversifications, Vivares maps this evolution out: “Our first milestone was within the development of our health, safety and quality

Ningbo Haishu Shengerjie Scaffold NINGBO SHENGERJIE COMPETITIVE ADVANTAGES: TIME & MATERIAL SAVINGS (Below data is from actual yard test comparison) • The actual hours for the Ringlock build were 59 percent less than the estimated tube and fittings • The Actual hours were also 35 percent less than the Hi-Vis estimate for the Ringlock, adjusting the assumptions with site norms and agreed trends can tighten up these variances. • Number of components in the SEJ Ringlock build is 40 percent less components VALUE ADDED SERVICES • Design and engineering • Product development COST SAVINGS • Direct sourcing of material from the manufacturer and and increased reliability of supply • Reducing waste and reworks

www.sjscaffold.en.made-in-china.com

system and multi-discipline service orientation, with specialities in protective coating, thermal insulation and passive fire protection. “VIVABLAST’s safety inclination and culture is seeded from British Petroleum’s esteemed Golden Rules, focused on upholding safety to the highest standards, and the opportunity to undertake and be selected in our field of expertise for BP’s first Vietnamese gas plant development in Dinh Co under Australian EPC specialist McConnell Dowell.” Indeed, this project was a landmark for the entire country, welcoming the footprint of one of the world’s leading oil and gas players, but simultaneously acted as a flagship for improved safety cultures in Vietnamese construction. “Our second major milestone was then within the development of our ISO system and the addition of new professional trades,” Vivares adds. “This included scaffolding, thermal insulation, and subsequently allowing

CONSTRUCTION

We provide our customers with premium products, reliable supply, comprehensive service and competitive commercial choice on a global scale. Continuously improvement of our products quality and new product development capabilities make us stand out of the industrial scaffolding market, occupying broad markets. With our extensive experience in the industrial market, we specialize in: Oil, Gas & Chemicals, Power & Energy, and Mining & Refining projects. Our products are mainly sold to North America, South America, UK, Australia and Southeast Asia Etc.

Ningbo Haishu Shengerjie Scaffold In 2008, Ningbo Haishu Shengerjie Scaffolding Co., Ltd was established in Ningbo City, Zhejiang Province. Ningbo Shengerjie covers an area of 20,000 square meters. After more than 10 years of development, we have become an Integrated Company for scaffolding R & D, Production, Sales, Rental, Scaffolding training, meanwhile we provide Complete Scaffolding Solutions Service for clients. Our main products include complete Ringlock Modular System Scaffolding products and wedge clamps. We can produce 1000 1200 tons of all kinds of scaffolding products every month.

China

Malaysia

Australia

Contact Name: Sam Chai Mobile: 86 133 9674 9919 86 180 1400 7770 Email: Sam@hcscaffold.com Wechat: 13396749919 Web: sjscaffold.en.made-in-China.com

MKRS BUMI (M) SDN BHD

COBRA ACCESS PTY LTD

Contact Name: Dato’ Dr Saravanan Karrupayah Tel: 6038736 4851 Email: saravanan@mkrs.com.my

Contact Name: James Novatscou Tel: +61 419 999 990 Email: jnovatscou@yahoo.com.au

“My father and I discussed the present situation and ended up proposing to acquire the business. Conditions were discussed, an agreement was reached, and in 2000 VIVABLAST was officially born”

Asia Outlook issue 41 | 169

VIVABLAST

VIVABLAST to ventures into the Vietnamese power generation construction sector through the successful participation in several combined-cycle power-plant (CCPP) projects and build-operate-transfers (BOTs) projects.” During this period, Vivablast began working towards its ambition of expanding its capabilities to encompass all sectors of the construction industry, from manufacturing, shipbuilding and mining to the power generation and oil and gas midstream and downstream market with a full array of professional services. Vivares then points to the firm’s latest operational breakthrough: “Most recently, we’ve focussed on and developed our brownfield mechanical works capabilities, again for the power generation and oil and gas refining and petrochemical segment. “We have developed our steel fabrication expertise, with specialties in 170 | Asia Outlook issue 41

“I can honestly say that our achievement and long-term growth are the outcome of the commitment of our long-term employees – their daily dedication, in-depth motivation and continuous efforts” piping fabrication, power generation equipment, gas exhaust system and several types of handling equipment since this phase kickstarted in 2016.” Owed to this three-stage evolution, VIVABLAST’s industrial assets life solutions services are now housed in four well managed business units, respectively focusing on power generation, oil and gas, manufacturing and shipbuilding, operating across the ASEAN region. “We’ve had to develop and adapt to market demands, but we’ve retained our versatile advantage, ensuring VIVABLAST provides quality work-

manship, unrivalled health and safety and reliable services on schedule with a clear comprehension of projects,” Vivares adds.

EMPLOYEE AND PARTNER POWER An agile market mover, this latter point is testament to the company’s workforce. As the enterprise has evolved, so too have its employees, embracing the opportunity to diversify their own skillsets across a multitude of verticals. This is not been lost on VIVABLAST either. The organisation emphasises

CONSTRUCTION the importance of providing a good working environment and culture that nurture ambition and empower staff at every opportunity. “We focus on the strong development of our management skills at all levels for white and blue collars, as well as employee accountability within our decision-making process and the CSR PROGRAMMES

GIVING BACK VIVABLAST’s workforce empowerment extends beyond upskilling, the company’s corporate social responsibility programmes largely centred around uplifting their livelihood in wider ways. “Much of our social investment activities are oriented around our employees,” Vivares affirms. “We grant them long term, interestfree loans, helping them to buy, build or repair their homes, pay for weddings and funerals, and offer a hand in dealing with the hiccups that everyone experiences in life. “We see it as our duty to provide the right level of protection cover for our employees, beyond what the labour laws here legally necessitate as these requirements are minimal.” In addition, the business takes time out to support orphanages on an external basis, repainting buildings and upgrading facilities for children.

execution of projects and services,” Vivares adds. “Jacques and I have been in Asia and Vietnam for over 20 years now, and I can honestly say that our achievement and long-term growth are the outcome of the commitment of our long-term employees – their daily dedication, in-depth motivation and continuous efforts.” These brand champions are not the sole proponents of the business’s success, however. Equally, the MD also highlights the role of its extensive network of suppliers and partners that uphold activities spanning protective coating, passive fire protection, scaffolding systems, mechanical works, steel fabrication and more. “These relationships are significant. We are dependent on our suppliers to both meet our own requirements and provide flawless delivery to our customers,” he states. “Right now, for example, we hold more than 4,000 supply entries in our database. “Our standards are high. We ask them to abide by key quality guidelines within our ISO/OSHAS process, ensure they are all approved and properly registered within our database, and demand continuous improvement across the board. And they respond, repeatedly offering better technical support and expertise, and ensuring all materials and commodities are readily available.”

BLENDING ASIAN CULTURE WITH WESTERN TECHNIQUES Leveraging this expansive partner base, further upskilling its esteemed employees and maintaining its progressive ethos moving forward, VIVABLAST is well positioned to capitalise on a season of opportunities ahead. Not entirely Vietnamese, nor French, the business’s core differentiator is its standing as a fusion company, successfully blending Asian culture and values with western techniques and methods such as an extensive, modern investment programme.

“We are aware that any enlargement of VIVABLAST’s integrated turnkey solutions and array of services in maintenance and construction will require additional financial backing, particularly as we look to sustain our expansion and meet market demands across Southeast Asia,” Vivares states, eluding to its goals of upholding both world-class offerings and a panASEAN outlook. “This will likely translate into equipment acquisition and the addition of technology monitoring systems and optimisation means. We will also further invest in technical training and international standard certification with the ambition to develop a professional and certified training school next year in our growing trades.” Combining this willingness to epitomise industry modernity with the backdrop of widespread regional prosperity, it is undoubted that this modus operandi will bear fruit in the long term. For this reason, the MD is staunchly optimistic. He concludes, once again citing the upward curve referenced at the beginning of our conversation: “As mention earlier, the ASEAN region is certainly the most dynamic part of the world nowadays and the requirement in terms of infrastructure development and energy needs will only grow further. “There are already clear project commitments set for the petrochemical, power generation, renewables and manufacturing sectors, and we are excited about expected growth, notably in countries such as Vietnam, Myanmar and other fast developing economies in the area.”

INDUSTRIAL

ASSETS

LIFE

SOLUTIONS

VIVABLAST Tel: +84 28 38 965 006/7/8 vivablast@vivablast.com www. vivablast.com

Asia Outlook issue 41 | 171

SUNSEAP GROUP

Singapore’s

Leading Light Empowering Southeast Asia with a portfolio of 1.7 GW of solar projects, Sunseap Group continues to spearhead change with its innovative, agile solutions Writer: Jonathan Dyble | Project Manager: Ryan Gray

here are few regions globally that can lay claim to more exciting economic prospects than Southeast Asia. While China, Japan and many of the continent’s other traditional powerhouses continue to make headway, the whirlwind taking many of its tiger cub economies by storm is equally helping to shape Asia’s next growth frontier. Take the Association of Southeast Asian Nations (ASEAN), for example. An intergovernmental organisation comprising 10 countries, combined they stand as the fifth largest economy in the world with a GDP of $2.76 trillion and population of 630 million (according to 2017’s figures). Yet this is just the advent of prosperity for the region. Owed to vast swathes of industrial, entrepreneurial, financial and technological opportunities, the territory’s annual economic growth rates are forecast to exceed five percent for the next half decade. Against this backdrop, numerous enterprises are unsurprisingly thriving. “The renewables industry, particu172 | Asia Outlook issue 41

larly solar energy, is epitomising the high growth in Southeast Asia,” affirms Keith Lim, Chief Financial Officer of Sunseap Group – a Singaporean-based company that is making the most of the monumental opportunities available. “Many developing countries here require increasing amounts of energy to fuel their rapid economic expansion, and solar energy presents itself as an attractive alternative to conventional energy, especially with the declining cost of generation.” Identifying these inevitable demands, Sunseap can be best described as a forward-thinking first mover in the solar market, as well as an industry innovator. Born out of a series of informal meetings turned serious discussions between long time friends and eventual Co-Founders Lawrence Wu and Frank Phuan, the pair set out to plug the gap. “With Frank, I formed a synergistic partnership,” Wu explains. “Frank was the technical guy, having been closely involved in his family’s solar business, while I brought a finan-

ENERGY & UTILITIES

Asia Outlook issue 41 | 173

SUNSEAP GROUP cial background in investment banking to the table, having raised capital and requisite funding for international banks such as DBS Bank, Macquarie and BNP Paribas. “We had a vision, to provide affordable solar energy solutions to corporates and the general public as a service, and with our combined

individual skillsets, we set up the first entity of Sunseap Group, Sunseap Leasing in 2011.”

WORKING WITH MICROSOFT AND APPLE Fast forward to today and Sunseap Group now stands as the leading clean energy solutions provider in Singa-

INTRODUCTION

ONE GROUP, SIX ENTITIES Since its inception in 2011, Sunseap Group has established six separate business units that now operate across 12 countries and provide integrated, holistic renewable energy solutions: SUNSEAP LEASING provides commercial clients with a zero-capital investment model solar solution via its solar power purchase agreement (PPA), by fully financing solar systems and taking care of technical areas such as installation and maintenance. SUNSEAP ENERGY specialises in offsite renewable energy supply facilitated by renewable energy certificates (RECs) for commercial clients and the general public in Singapore via its assortment of energy plans. SUNSEAP INTERNATIONAL provides renewable energy solutions to countries outside of Singapore. SUNSEAP ENGINEERING provides engineering, procurement and construction (EPC) and operations and maintenance services for commercial clients. SUNSEAP SOLUTIONS provides green roofing and energy efficiency solutions. SUNSEAP ENERGY VENTURES is an incubator and accelerator programme for new and emerging technologies.

ABB (1 MW-peak)

174 | Asia Outlook issue 41

pore, comprising six different business entities. Offering everything from zero-cost solar solutions (solar power purchasing agreements) and offsite renewable energy supply to green roof solutions, the firm’s extensive array of services has facilitated its establishment as an integrated, holistic renewable energy solutions provider. “I think this is what sets us apart,” Wu affirms. “For businesses, we provide a full suite of energy related services that can help buildings reduce energy consumption, improve the energy efficiency of buildings and provide a source of renewable energy for the betterment of the environment. For consumers, we provide an option to choose a sustainable source of energy without having to invest or manage a renewable energy generation asset.”

JW Engineering JW Engineering Pte Ltd was established in 2016, but it’s management staff had experiences in the construction industry for over 20 years. The company strives to provide quality service to our building industry and is supported by our project management and construction.

SERVICES PROVIDED: • • • • • •

Construction (Convention) Construction (Design & Build) Project / Construction Management Safety Management Maintenance Management Specialized Services - Inspection & Repairs, Retrofitting, Alterations / Additions

535 Hougang Street 52, #08-14, Singapore 530535 Tel: 9137 0010 Email: jwengrg@gmail.com

SUNSEAP GROUP

LONGi Solar Technology Co. Ltd.

SUPPLY CHAIN

PARTNERS IN PROGRESS Lim cites Sunseap Group’s partners and suppliers as pivotal to Sunseap’s rapid rise and continued strides: “Our relationships with our partners and suppliers are vital to the success of our businesses. Their continued support forms the basis of what we do at Sunseap and we would not be able to have our sustained success if it weren’t for them. “We’ve worked with many of them on a long-term basis and engage them regularly to see how we can improve our processes through an assessment of existing work processes, exploring possible ways to improve efficiency by integrating technology.”

LONGi leads the solar PV industry to a new height with product innovations and optimised powercost ratio with brweakthrough monocrystalline technologies. LONGi supplies more than 30 GW of high-efficiency solar wafers and modules worldwide yearly, about a quarter of the global market demand. LONGi is recognised as the worlds most valuable solar technology company with the highest market value. Innovation and sustainable development are two of LONGi’s core values.

The Future of LONGi Sustainable Development Strategy With “Solar for Solar”, LONGi is building towards achieving 100% in clean energy consumption.

The numbers back up this competitive advantage. In just eight years, the enterprise has already amassed a portfolio of more than 1.7 GW in solar projects, spanning Singapore, Australia, Vietnam, China, Taiwan, Philippines,

Lawrence Wu, Co-Founder

Frank Phuan, Co-Founder

176 | Asia Outlook issue 41

Thailand, Japan, Cambodia, Malaysia and India. This includes landmark deals with global tech giants Apple and Microsoft. Lim explains: “With Apple, we engineered Southeast Asia’s first 100 percent renewable energy deal, which allowed us to kickstart and develop Sunseap Energy – the entity in Sunseap responsible for developing offsite renewable energy solutions. “Equally, we clinched Microsoft’s first renewable energy deal in Asia and the single largest solar energy portfolio in Singapore via renewable energy attributes.” Just two of an array of milestone deals for the firm, it also won the Singaporean Housing Development Board’s first tender under the SolarNova programme in 2015, a contract which subsequently led Sunseap to constructing the largest portfolio of projects at that time, spanning 800 HDB skyrise blocks with a total capacity of 76 MW.

LONGi always had sustainable management as a core criteria for business decision-making, including continuous investments in innovation and research, advocating an open corporate culture and promoting scientific institutional research. At the same time, LONGi has been leading continuous changes in electric power and energy, promoting the sustainable development of the planet and mankind. It is LONGi’s vision and roadmap that Earth will be completely green and self-sustainable in the first half of this century.

No.8989 Shangji Rd., Weiyang Dist., Xi’an, China T + 86-29-85767999 F + 86-29-81566685 www.en.longi-solar.com

SUNSEAP GROUP Further, the company more recently delivered a 168 MW solar farm in Vietnam, one of the largest in the country, and Cambodia’s first solar farm in the southern city of Bavet. “It is an exciting time for clean energy providers like us to be in Asia. Many countries are transitioning to greener sources of energy,” Wu adds.

ELEVATION THROUGH INNOVATION Simply looking at Sunseap Group’s upcoming pipeline makes it hard to argue with the Co-Founder. He continues: “We announced a new partnership with Pacific Green Energy in June this year to jointly develop 100 MW of distributed solar projects in Taiwan over the next three years. “And we also teamed up Guohe Capital, one of China’s first private equity firms, and Shanghai renewable energy company Starkle Energy to establish a clean energy investment fund. The fund aims to invest and manage more than 200 MW of solar projects in China over the next two years.” New projects are not the only source of excitement for the organisation right now, however. Equally, the business continues to invest heavily into research and development. “It’s a big part of what we do here at Sunseap,” Lim reveals. “We are constantly looking at new ways to innovate and improve our current work processes.” Most recently, this approach coaxed a collaboration with Envision, the pair teaming up to develop an internet of things platform, geared towards optimising solar PV projects by incorporating solar applications such as demand side energy management technologies. “We also partnered with leading third-party renewables asset management service provider UPER Energy to develop proprietary solar project management tools,” Lim adds. “Meanwhile, internally, we are in the midst of revamping our enterprise resource 178 | Asia Outlook issue 41

planning software to streamline our work processes and integrate various platforms across the group.”

SPEARHEADING SUSTAINABLE CHANGE Project improvement and efficiency optimisation investments aside, the firm equally puts time and effort into ensuring that it upholds a world-class workplace environment. Be it the firm’s open-plan office environment or an emphasis on staff empowerment, the Sunseap leadership team readily encourage inter-department participation and sharing across the organisation. “We’ve created a culture of open communication,” Wu states. “Our staff feel comfortable giving feedback and ideas to higher management and are able to collaborate with different departments on various projects. “We also prioritise education given that quite a number of employees who join us did not have any previous background in solar. We provide on-the-job training and ensure our staff have the chance to develop their specialised skillsets regularly.”

This responsible outlook similarly translates into the organisation’s corporate social investment initiatives, an area that Wu himself feels particularly strongly about. “CSR encompasses our entire operation,” he states. “Sunseap is committed to developing affordable and reliable solar energy solutions that benefit communities while saving the environment. “Most recently we have supported a group of students attending the National University of Singapore by providing solar panels for Suoi Quyen Village in Vietnam to power their dayto-day activities. In a similar capacity, we have also supported Green School Bali in Indonesia to get it off the grid by donating solar panels to generate solar energy on site.” Charitable efforts form another sizable part of the business’s philanthropic efforts. On this front, Wu highlights a VND3 billion ($130,000) donation made by Sunseap for the construction of a 168 MW solar farm in Ninh Thuan, Vietnam which helped to improve connectivity for local farmers in the district.

1: Jurong Port (9.5 MW-peak). 2: Panasonic (2.4 MW-peak). 3: Bavet City Solar Farm, Cambodia (10 MW-peak). 4: Floating solar system along the Straits of Johore (5 MW-peak)

ENERGY & UTILITIES

Public housing estates (More than 100 MW-peak)

Keith Lim, CFO

Looking beyond these individual elements, the firm has positioned itself as a flagship for change, spreading awareness of environmental sustainability, upholding communities and encouraging consumers to reduce their carbon footprint. In doing so, the organisation is showcasing the double-edged potential of solar

in both meeting rapidly rising energy demands and addressing global climate goals. For this reason, it remains optimistic for the future. Lim concludes: “As opposed to traditional grid infrastructure which takes years to establish, solar systems can be deployed in a matter of weeks and months. There’s even room for greater deployment of solar systems on unused surfaces and areas – on bodies of water, seas and reservoirs. “Further, for countries like Singapore that are faced with land scarcity, rooftop areas can be utilised to build solar systems which can contribute cleaner sources of electricity to na-

tional grids. In essence, this provides an option for commercials and the general public alike to utilise renewable energy without having to own or manage a renewable energy generation asset.”

SUNSEAP GROUP Tel: +65 6816 1000 enquiries@sunseap.com www.sunseap.com

Asia Outlook issue 41 | 179

MAONENG

SOLAR SPLENDOUR 10 years ago, Maoneng was a humble startup operating in a western suburb of Sydney. Today, it is one of Asia Pacificâ€™s leading solar entities, helping to spearhead the global energy revolution Writer: Jonathan Dyble | Project Manager: Ryan Gray

180 | Asia Outlook issue 41

ENERGY & UTILITIES

othing is more important to life on earth than the sun. Warming our oceans, generating our weather patterns and facilitating the photosynthesis of plants which provide food and oxygen for all, without it the world would become an arid ball of ice and rock. Yet, owed to the innovation-abundant 21st century, humanityâ€™s reliance on the central star of our solar system is becoming increasingly pronounced, owed to its ability to act as a sustainable fountain of power. Fast forward from the BC era, when the use of a magnifying glass in Asia Outlook issue 41 | 181

MAONENG concentrating the sun’s ray to create fire was discovered, to today, and technological advancements and learnings have seen solar energy rise to power everything from buildings to streetlamps to trains. An exciting, fast-moving industry that’s full of sustainable promise, it’s become a field filled with champions of the new energy revolution. “Contrary to popular belief, modern solar photovoltaic technologies are not new,” explains Morris Zhou, Group Executive Chairman of Maoneng, one of Australia’s leading lights for the solar industry. “They have been around for roughly 50 years – one of the first satellites ever shot into space, for example, required silicon-based solar panels in order to charge the equipment. “Only in recent years, over the past decade and a half or so, has the cost of this technology fallen to the point where it is realistic and attainable. In 2010 the cost of putting together a whole solar system was around $7-8 per watt, whereas now it costs less than $1 per watt. “Solar is no longer reliant on government subsidies or policies in order to succeed. It has become a market-based competitor to the likes of coal-fired generators or gas-fired generators.” Standing as the Executive Chairman of a somewhat veteran solar company (taking into account the relatively recent emergence of the industry), Zhou himself fell into the sector by chance roughly a decade ago. Having been working for his family business on the Rolling Stock Public-Private Partnership project in New South Wales, supplying fasteners for 626 train carriages, he decided that his heart wasn’t in it and went about looking for an alternate line of work. “I guess I’ve always had an entrepreneurial spirit, much like the rest of my family, but if I’m being honest there was a period where I didn’t really know what I wanted to do,” Zhou reveals. 182 | Asia Outlook issue 41

“Like most good things in life, the transition in my career path came about without any prior planning when I was introduced to solar by a close friend of mine from university. “Coming from a non-engineering background, the process of converting sunlight into electrons was a very sci-fi concept to me. I spent a lot of my spare time looking into research and market viability, saw a real opportunity in late 2009 and kickstarted Maoneng in early 2010.”

FROM STARTUP TO SPEARHEAD Starting out as a humble solar retailer/ installer startup based in a western Sydney suburb, Maoneng’s first 18 months were categorised by consistent growth and success. The business benefitted from a distinct first-mover advantage, marketing itself as a key supplier of solar products and services to an array of commercial, residential and industrial clients.

“We didn’t start out with any grand ambitions,” Zhou explains. “We were more focussed on giving it a shot without really knowing where it would lead us in the long term. At the same time, however, we quickly realised that the barriers to entry as a solar installer were relatively low and the competition was both increasing and catching up in terms of capabilities.” Resultantly, the company morphed from being a business to consumer enterprise into a B2B specialist, establishing itself as one of Australia’s top three importers and distributors of solar equipment. Thereafter, Maoneng’s former competitors became its clientele, the business primarily focused on operating in this capacity until 2015. “Throughout this period, I was fortunate enough to be visiting manufacturers, technology vendors and projects oversees in Japan and China,” Zhou adds, “which included a visit to the biggest solar farm to be commissioned in China in 2010 – a 20 MWAC development. “When I saw it, I immediately knew that we had to do the same in Australia. We’d only been changing the environment with four or six panels at a time, whereas these solar farms consisted of hundreds of thousands of panels. It made what we were doing look like child’s play.” This vision in mind, a new division of Maoneng was launched, actualising in 2015 when the firm gained the greenlight to undertake its first major development, the 15.6 MWDC Mugga Lane Solar Park in Canberra, ACT. Construction was completed in 12 months finishing October 2016, making it one of the country’s first grid connected solar farms, with the development able to generate 24,500 MWh of electricity per year – enough to power more than 3,000 homes. “We put everything into this project,” Zhou adds, “including a 0.6 MW block of single axis tracking system, allowing us to plan for the future by testing next gen technologies.”

ENERGY & UTILITIES

#1 Global Market Leader in Smart Solar Trackers As partners in the clean energy revolution, NEXTracker salutes Maoneng for helping make solar the choice in energy generation worldwide.

Australia and Asia Sales: australia@nextracker.com 39 East Esplanade, Suite 303/304, Manly NSW 2095, Australia Nextracker.com

Morris Zhou has brought Chineseinspired ideas to Maoneng in Australia

CHAMPIONING COLLABORATION Provided with confidence and gaining substantially greater credibility upon the successful completion of the Mugga Lane development, the firm has since taken on it’s second, ongoing flagship project in the form of Sunraysia Solar Farm. Located near Balranald in western

New South Wales, this project, once complete in December 2019, will be able to supply 50,000 homes a year with energy, generating circa 540,000 MWh per annum. And while the Executive Chairman is immensely proud of what the company has been able to achieve in the past 10 years, now delivering Australia’s largest solar farm for this year, he is

equally quick to admit that the business can’t take all the plaudits. “We’re in full recognition of the fact that we didn’t get to where we are by ourselves,” he explains. “We’ve received huge support, not only from our families and friends, but equally from our colleagues and business partners.” Pointing to the latter of these parties, Asia Outlook issue 41 | 183

MAONENG

PROJECT PORTFOLIO

MUGGA LANE SOLAR PARK LOCATION: Canberra, Australian Capital Territory ANNUAL CAPACITY: 15.6 MWDC COMPLETION: October 2016 SOLAR MODULES: 53,000+ HIGHLIGHTS: Testing of single axis tracking and coexistence demonstrated with use of sheep in maintaining the landscape.

SUNRAYSIA SOLAR FARM LOCATION: Balranald, New South Wales ANNUAL CAPACITY: 255 MWDC SOLAR MODULES: 750,000+ COMPLETION: December 2019 HIGHLIGHTS: Full implementation of single axis tracking and the testing of high efficiency mono-perc cells developed by the University of New South Wales. Nominated and awarded for Asia Pacific Solar Deal of the Year at the PFI Awards 2018.

Zhou outlines how Maoneng understands the importance of nurturing mutually beneficial relationships: “We put a very strong emphasis on empowering our partners, from equipment vendors who provide us with our solar PV technologies to our construction partners who actually build the solar farms and our financing partners. “Sometimes business partnerships exist with a lot of tension, something we actively try to avoid. You’ll often find that businesses will pick contractors based on the best pricing and terms, but we’re equally keen to assess track records and whether our businesses will be a good fit.” Such practices are best evidenced by the organisation’s fruitful correspondence with Bank of China and Nord L/B, two banks that it worked closely with on both the Mugga Lane and Sunraysia projects. Zhou continues: “When we were looking to source the finance required to bring the Mugga Lane project to life in 2014, we had no real track record in Australia. Yet these banks were willing to back our project. “When the Sunraysia project then presented itself we reached out to these same two banks to show our appreciation of their support on the previous undertaking and asked them if they would like to be part of our next opportunity – an invitation they accepted alongside a number of other financing partners including NAB, Mizuho and ING. “It’s relationships such as these that we are particularly proud of. Our success does not lie in just our own achievements, but also in the achievements of our partners, from banks to our technology partners.

UPHOLDING THE ENERGY EVOLUTION Combine these empowering relationships with Maoneng’s entrepreneurial, agile, flexible culture and proven projects, and it is certainly exciting times ahead for the enterprise. 184 | Asia Outlook issue 41

ENERGY & UTILITIES Of late, the company has begun to build on its consolidated reputation, a process that has included expansion into the Philippines and a gradual diversification into the development of battery energy storage systems. “Focal points of ours for the next 12 months will be the completion of the 100 MW/200 MWh Sunraysia Emporium Battery Energy Storage System, co-located on the same site as the Sunraysia solar farm, as well as establishing a greater foothold in Southeast Asia,” Zhou affirms. “As a region it has one of the highest economic growth rates around the world, and for economic development to succeed you need the energy infrastructure to support it.” Having been based in the Philippines for more than a year now, the country selected due to its high

electricity tariff rate, the company has been operating a rooftop distribution business model, catering to the needs of commercial and industrial clients which have heavy energy burdens such as shopping malls and

CSR

EMPOWERMENT THROUGH EDUCATION A responsible company, Maoneng ensures it regularly works with communities and charities in the aim of giving back to society. “Personally, I have a very strong interest in education,” Zhou states. “I believe it provides the key to unlocking the true future potential of fastmoving industries such as renewables energy. “When we developed the Sunraysia Solar farm, we spent a lot of time with stakeholders of the local community in Balranald, trying to understand how we could help them as an organisation. We spoke to various figureheads, including the principal of the Balranald Central High School. “He told me that a lot of the difficulties that the school was encountering stem very high drop our rates from students, where they don’t see the need to continue with tertiary education. I shared this concern with him and so we launched a 10-year scholarship with the school, committing AUD$30,000 each year to sponsor up to three students annually.” In addition, the company is in the process of formulating a graduate scheme that it plans to roll out next year, and recently had major involvement with one of the world’s largest fun-runs, a 14 kilometre route between Sydney CBD to Bondi Beach, with its employees raising AUD$5,000 for an organisation called Raise that promotes youth education and awareness.

manufacturers enterprises. Yet, in the eyes of Zhou, these transitions and expansions are just the beginning of a new, prosperous chapter for Maoneng moving forward. He concludes, exuding optimism: “From the Philippines, the ultimate view is that we frog hop to other Southeast Asian nations with a similar business model once we’ve achieved our targets. “This is not our single ambition, however. We hope to become more of a platform company as we grow and continue to champion the renewable energy revolution – a space where each different technology with unique properties will have a vital role to play. “The hope is that renewables and solar will one day ensure that energy is much more affordable, subsequently encouraging growth in other industries such as data science where energy usage is high. “We see it as a natural step that we should continue to evolve with the industry and environment in the future, with the key goal of helping to uphold a greater, more sustainable global ecosystem.”

Tel: +61 2 9199 8599 corporate@maoneng.co www.maoneng.co

Asia Outlook issue 41 | 185

MATRIX COMPOSITES & ENGINEERING

186 | Asia Outlook issue 41

MANUFACTURING

THE LEAN

Machinist Matrix Composites & Engineering is exporting Australian-made advanced materials all over the world, its lean production principles adding a competitive edge Writer: Tom Wadlow | Project Manager: Thomas Arnold

ustralia is a nation with a proud record of ingenuity. Whether it is the bionic ear, ultrasound scanner or black box flight recorder, Australians’ knack for innovation has helped propel the country onto the global advanced manufacturing stage. Indeed, of the nation’s A$100 billion total annual manufacturing output, the advanced subsector accounts for nearly half, driven by the adoption of cutting-edge technology and commitment to investing in research and development. This rings true for Aaron Begley and his company Matrix Composites & Engineering. Co-founding a business with his father in 1999, it was a case of sensing an opportunity to innovate and plug a gap in the market which saw it break away from the family’s more traditional engineering background. “We saw an opening in the marketplace to diversify away from what we were doing in the heavy engineering manufacturing space, and that was presented to us by a materials technology from North America,” CEO Begley recalls. “This prompted the development

Aaron Begley, CEO (pictured above) helped set up Matrix Composites & Engineering more than 20 years ago. Prior to this, he worked as the Sales & Marketing Manager of Begley International in Perth, Australia

of our own version, which gave the company entrance into the oil and gas space.” The composite material in question is called syntactic foam. Lightweight with high compressive strength, it is used in marine environments predominantly to provide flotational buoyancy for oil and gas drilling operations. Matrix is gearing itself up for a boost in the industry’s fortunes and anticipating greater volumes of demand from these clients.

A LEAN ENTERPRISE As with Australia’s advanced manufacturing sector, much of Matrix’s revenue derives from export sales all over the world, key markets being North America, South America, North Asia, Southeast Asia and Europe. The key to its global appeal? For Begley, it is twofold. “Our strength is in the field of materials technology and advanced manufacturing,” he says. “We have the ability to tailor material properties to particular requirements and the manufacturing capability to produce them consistently and competitively in Australia. Asia Outlook issue 41 | 187

MATRIX COMPOSITES & ENGINEERING “Our competitors are European but one of our major advantages is that we have very low levels of labour input, meaning we are extremely competitive in the area of efficiency and cost.” Central to this is a steadfast commitment to processes and systems which are set up around lean production principles, an approach which Begley reveals was initiated around a decade ago when its plant in Henderson, Western Australia, was being assembled. “This is designed to reduce waste between processes, and we have a system in place called ‘one piece flow’

through the plant here,” he adds. “A lot of this is down to the physical layout of the facility, along with introducing automation where appropriate. This lean approach has allowed us to reduce working capital and increase the quality and consistency of product output.” Underpinning this is the fact that Matrix’s plant is SCADA-controlled, the real-time data it collects enabling the company to monitor, record and analyse all processes, meaning if there are any issues, it can respond quickly and effectively.

INTRODUCTION

ABOUT MATRIX COMPOSITES & ENGINEERING Matrix Composites & Engineering specialises in the design, engineering and manufacture of composite and advanced material technology solutions for the civil and infrastructure, resources, oil and gas, defence, and transportation industries. Using advanced composite and polymer materials technologies alongside leading-edge manufacturing processes, the company produces products which are stronger, lighter and longer lasting within shorter timeframes. In 2011, Matrix opened the largest composites syntactic manufacturing plant in the world, spanning 20,000 square metres in Henderson, Western Australia. The company’s products meet international quality standards such as ISO 9001, API 16F, API 17L and OHSAS 18001. The company’s service offering is divided into six main strands: advanced materials including large composites structures, deepwater drilling, downstream, surf and marine, subsea testing and well construction.

188 | Asia Outlook issue 41

Baker Onsite Health Baker Onsite Health is an Australian owned, specialist medical services company based in Perth. We have extensive experience in providing tailored medical and health surveillance services across all industries including mining, construction, manufacturing and oil and gas. We provide a unique, cost effective and efficient model of medical screening solutions tailored to your companies specific OHS requirements. We provide specialist medical assessment services conducted in our offices in Perth, onsite or ‘in-house’, utilising our purpose-built medical vehicle on an ‘as required’ or regular service contract with additional injury management services.

www.bakeronsitehealth.com.au

New capabilities have also been added in recent months, for instance a large rotational moulding machine which produces hollow plastic products very accurately and in high volumes, serving clients in the oil and gas and the civil and infrastructure markets. Matrix has also added the capability to manufacture lightweight composites for transportation and defence applications, the former representing a promising line of business thanks to an agreement with a major bulk freight company to develop and manufacture composite bulk transport system prototypes. “In terms of the defence work, we are limited in what we can say here but it is an exciting avenue for us,” explains Begley. “We’re part of a defence science and technology collaboration with the University of Melbourne, RMIT University, and QinetiQ to make or investigate new materials for naval applications. This will be a long-term

MANUFACTURING

The overriding feedback that we receive from Companies in WA is one of dissatisfaction of the Medical services they received due to a number of key factors including; • Long delays in booking medicals and receiving results. • Poor quality of medicals, lacking attention to detail including personalized result reporting. • High cost of services and inconvenience with little or no reduction in workplace injuries! If you are experiencing any of the above, Baker Onsite Health will be able to assist you in achieving; Baker Onsite Health understands your business, the risks and the restrictive time constraints placed upon it, recruitment can be a costly and time consuming process. Consequently the importance of identifying the most suitable candidates who are appropriately skilled, ‘medically fit’ and a ‘low risk of injury’, in the shortest possible timeframe is pivotal to your Organizations success. Our innovative Medical screening solutions will enable your Organisation to achieve a significantly faster ‘turnaround time’ in the recruitment processes. Our aim being to prevent the costly delays in recruitment by providing an efficient, comprehensive, convenient assessment of your candidates health status and risk of injury, resulting in a reduction in workplace injuries, ill-health and subsequent costs, due to employing ‘low risk, quality candidates’ in preference to ‘high risk’.

“Baker Onsite Health have been our Company’s preferred supplier since 2014, Fiona and her team are fantastic to work with. We often provide short notice for bookings, with tight deadlines, and the flexibility and dedication we receive is always remarkable.

• Faster medical results ‘turn around’ time (same day or within 24 hours) • Significant reduction in medical assessment costs (hourly rate option Or invoiced per service), with the additional convenience of booking availability 7 days a week from 6am until 10pm. • Significant reductions in number of injuries, claims and LTI rates, reducing your Insurance premiums. • Maintaining a healthy, efficient and productive workforce by providing Specialist Onsite or ‘In-House’ Medical assessment services, avoiding the lengthy delays and inconvenience that occurs when workers attend GP Clinics that prioritise their Patients over Medical bookings. • Detailed, Comprehensive medicals tailored to your specific OHS requirements conducted within our Offices in Perth or Onsite as well as Nationally utilising our trusted affiliated network of Medical providers. • Your ongoing compliance with your Health Surveillance requirements including WorkCover Compliant Hearing testing Onsite with yearly recall reports for Clients. • Onsite Drug and Alcohol Testing (AS4308 compliant) to reduce your exposure to risk and to assist you in protecting your Organisation from the impact of Drug and Alcohol related incidents occurring in the workplace. • An increase in overall Workforce quality, Client satisfaction and convenience.

We utilise both the mobile service, as well as their facility in West Leederville, for Pre-Employment Medicals, Drug & Alcohol testing, Workcover Audiometry assessments and other specialist health surveillance. Baker Onsite offer professional and cost-effective solutions and I have no concern in endorsing their services.”

E: admin@bakeronsitehealth.com.au W: bakeronsitehealth.com.au T: 08 9388 4730 F: 08 6313 0969

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Asia Outlook issue 41 | 189

MATRIX COMPOSITES & ENGINEERING

SUPPLY CHAIN FOCUS

THE POWER OF PARTNERSHIP Q: How critical are your suppliers to your success? Aaron Begley: “We have a number of collaborations and supply chain partners, most of these being our raw material suppliers which are predominantly based in Europe, North America and Asia. Some raw material suppliers have been with us for over a decade. “We are reliant on them to provide quality products and materials technologies that we can then apply into our finished products – without them we couldn’t operate. “Beyond this, we’re investigating the possibility of collaborating with big businesses which have skillsets that are complementary to ours, skills that we can combine with our product offering. This is designed to expand our scope of products which we can provide to our clients without having to invest in duplicating the capacity that somebody else might have.”

project for the business. There has also been great interest in establishing our subsea test facility, containing the Southern Hemisphere’s largest hyperbaric test capability, as a sovereign industry capability for defence.”

READY FOR THE REBOUND The processes and cutting-edge technology detailed by Begley would count for little if it were not for the 100-plus employees adopting and using them. For the CEO, finding and 190 | Asia Outlook issue 41

Pictured right are a selection of the company’s Max-R low friction composite drilling and completions centralisers. They have been designed to convey well screens, completion tool strings and typical casing and tubing strings into highly deviated and challenging horizontal wellbores

developing the skills of competent engineers is paramount to the longevity of the company. Matrix partners with local universities in a bid to identify the next bright sparks in the industry, while substantive in-house training and development programmes ensure such potential is maximised. “It is always a challenge to find the right people,” Begley says. “In our case, we need a whole series of skills from a manufacturing and solutions standpoint. “There are three tiers of skills that our company needs, the first being materials development engineering like industrial chemists and plastics engineers. We also need manufacturing engineering experts which is all about the process side of the operation and operating in a lean environment. The third capability is taking our technology in front of clients in an industry

MANUFACTURING

specific way – i.e. we need people who know the oil and gas sector, the defence industry, and so on. “We anticipate the O&G sector getting busier, so these skills may be harder to find in the near future.” It is this prospect that excites Begley moving forwards, the CEO eager to express that Matrix Composites & Engineering is ready to serve the upswing in the oil and gas industry. He concludes: “We’re already starting to see the beginnings of this recovery, so it is vital that we maintain our capability in the oil and gas space. However, we will also continue working on our diversification plans which will ensure a sustainable future for our company.”

MATRIX COMPOSITES & ENGINEERING Tel: +61 894 121 200 matrix@matrixengineered.com www.matrixengineered.com

Asia Outlook issue 41 | 191

RKH SPECIALTY

The Knowledge

BROKER By extending its in-house talent and integrating capabilities of partner organisations, RKH Specialty is able to provide an unrivalled insurance offering to businesses, institutions and governmental bodies across the APAC region Writer: Tom Wadlow | Project Manager: Sam Love

sia Pacific represents arguably the world’s most vibrant, opportunity-laden insurance

market. Holding the key to the insurance industry’s future according to EY, the region looks set to outperform the rest of the world as it has been doing since the turn of the decade. For example, between 2012 and 2017 the sector grew by 2.8 percent across Asia Pacific, compared to just 0.6 percent elsewhere, the non-life category expanding by eight percent versus the global 0.9 percent during this five-year period. For companies operating in this subsector such as Singapore-based RKH Specialty, the backdrop certainly looks exciting. “APAC is a very diverse region with respects not only to natural peril exposure but also regulatory influence, historical trading culture and relationships and a rapidly growing middle class and domestic industrial activity,” explains Stuart Beatty, CEO of the firm – a speciality lines wholesale and reinsurance broker. “Capital markets that are focussed on taking risk such as insurance are therefore evolving quickly across all countries within the region and this all needs to be underpinned by the

192 | Asia Outlook issue 00

reinsurance markets. The region will continue to grow as a whole economically faster than other regions and the insurance sector will therefore as well. “There is now significant insurance capital across all classes based in the APAC region that has specifically evolved to service the clients and risks within the region.” RKH Specialty creates unique risk solutions, programmes and facilities across a wide range of industries and risk classes, working with some of the world’s largest companies, financial institutions and governmental organisations. Beatty himself has more than 30 years’ experience, joining the profession in 1987 in Australia, a move he admits was more by chance than choice. However, it is fair to suggest that the industry veteran has never looked back, working in the UK, South Africa and now Singapore. “Insurance is a fantastic industry in respects to having the chance to live and work in many countries,” Beatty says. “Since I joined the industry, I have been involved in international insurance and reinsurance placement and production roles. “Singapore as a market really started to expand in the early to mid2000s, and this led to me moving

AN INTRODUCTION TO RKH SPECIALTY Part of the Hyperion Group for the past five years, RKH Specialty goes beyond the standard model of specialty insurance, priding itself on its breadth of knowledge and experience which it uses to protect businesses, financial institutions and governments. In Asia Pacific, the company operates out of offices in Singapore, Hong Kong, Sydney and Taiwan, its approximately 90 employees being part of the wider group’s 900 across the globe. “Our client base is a blend of broking partners based in countries across the region, cedants, captives and MGAs,” adds Beatty. “We combine market experience with data and technology across a complete range of insurance and reinsurance specialisms to design and deliver solutions across every part of the insurance distribution chain.”

FINANCE

there in 2009 as I had a regional APAC role and the country was becoming a key regional market which has further grown over the last decade. “RKH has been developing a regionalised strategy over recent years and I was fortunate to be asked by them in early 2018 to help lead the expansion strategy we have in APAC.” Indeed, central to RKH’s regional rise has been playing to its strengths. Helping to differentiate the company from other brokers operating across the region, Beatty defines several standout facets across three key areas. “The first is the fact we are a business in which almost half the shares are held by employees,” he says. “This drives an owner’s mentality and a culture that is 100 percent focussed on results for clients. “Second, our independence ensures

we are never conflicted. We analyse and access the markets that are best for our clients having fully understood their challenges. We use our access to specialist insurance and reinsurance markets and deep industry knowledge to deliver solutions that are relevant, insightful(pragmatic) and optimal.” Third, according to Beatty, is RKH’s approach to running its business, operating on a product line basis with a global lens, a strategy which enables it to deploy resources seamlessly to where its clients’ interests lie.

MOVING WITH THE TIMES A diverse spectrum of talent is front and centre of why RKH is able to offer the aforementioned points of difference on the regional and global stage. Described by Beatty as a top priority, the company’s recruitment net is

stretched wider than ever before, well beyond people with traditional insurance industry knowhow – actuaries, data scientists, IT specialists, engineers, natural catastrophe analysts and finance experts are just some of the expertise continually sought after. “As our market profile has grown, we have become an attractive place to join which is very pleasing,” says Beatty. “The success the company enjoys, as well as a culture that provides scope for individuals to develop their own ideas, are definitely two important factors. As important as salary and employee benefits are, in the end people want support and a real opportunity to succeed. We aim to provide those with real ambition with the platform to succeed in an international setting.” Beatty cites RKH’s newly established Asia Outlook issue 00 | 193

RKH SPECIALTY

Stuart Beatty, CEO

global analytics team as a perfect example of this ethos in action. Here, the relationship with parent firm Hyperion is crucial, its vast knowledge pool being tapped into to help propel the company to new heights. “Like many broking analytics teams, ours provides actuarial services, catastrophe modelling, strategic advisory and sector research,” Beatty explains, “but unlike other broking analytics teams, it is underpinned by Hyperion’s unique, proprietary accelerator dataset. “This allows advisory and analytics practitioners to give our clients better, faster insights across lines of business and regions of the world. The team is part of Hyperion X which is Hyperion’s new and growing data and technology division. Other Hyperion X offerings include the xTrade Digital Marketplace, the Rethink facility, and RKH’s unique Know How database which clients can use to find new business opportunities they may not have been aware of previously. “We are creating something truly new and exciting in Hyperion X which, we hope, will disrupt the entire industry in favour of our clients,” adds Beatty, who outlines a 2020 ambition to integrate various broking divisions from around the world to maximise its resource bench strength across all product lines. This includes integrating with retail broker Howden, a move which the 194 | Asia Outlook issue 00

CEO believes will provide yet further strategic advantage in years to come. “This move is very exciting for RKH and a natural next step for us following on from the success of the first five years of RKH becoming part of Hyperion Group,” Beatty continues. “Joining forces with Howden will make us a unique proposition for our clients and will help us attract and retain the best talent by cementing our position as the only true alternative to the giant US firms. We will be the leading independent, international specialty broking business and the only broker with an international retail network.”

MILLION FOR A MILLION As well as looking after RKH Specialty’s own business interests, Beatty also stresses his desire to build up the company’s impact on its surrounding communities. Such activity is currently being spearheaded through the Million for a Million (M4M) initiative in tandem with Hyperion Group, launched as part

of the organisations 25th birthday celebrations. Its objective is to raise $1 million for four selected charity partners – Plastic Oceans, InterEd, Cancer Research and Black Dog – as well as charities chosen directly by employees. Starting out as a sports-centred activity, where employees aimed to collectively run a million kilometres, M4M has morphed into a more diverse series of challenges, the Asia team already raising more than $75,000 through the likes of marathons, cleaning beaches, crocheting ‘therapeutic octopuses’ for premature babies and volunteering at charities such as Food Angel in Hong Kong. “From a company perspective, it’s also been fantastic for building rapport and relationships with our colleagues around the world as it’s not often we all work towards a single goal,” Beatty says. “CSR is definitely something we’re building on for the future – it’s important to everyone from investors to the boardroom to the broking floors. As

REMAINING RELEVANT Two key trends that RKH has tapped into are cybersecurity and renewable energy, both topics undeniably rising in stature in political, commercial and societal circles all over the world. CYBER INSURANCE: Still viewed as a relatively new insurance product area, cyber risk has the potential to impact almost any company or individual dependent on technology. RKH caters to companies of all sizes across numerous industries around the world, as well as associations, governments and industry bodies. RENEWABLE ENERGY: With a large share of global energy investment going into non-fossil fuel power plants, RKH has developed a new renewable energy specific platform for mid-scale projects, due to launch in the near future, focussing on countries which are experiencing rapid socioeconomic development and population growth. “This provides flexible coverage through every operational stage of a project, from initial ground break to decommissioning,” explains Beatty. “It also uses new technologies to simplify the application and buying process and is typical of the team’s approach in that they have aimed to optimise every aspect of the product and service.”

FINANCE

Argenta Underwriting Asia Pte Limited (AUA) has established a strong local presence in both the Singapore and Australian markets. Based in the Lloyd’s Asia hub in Singapore and through a branch office operating on the Lloyd’s Australia platform in the heart of the Sydney CBD, AUA offers access to insurance and reinsurance solutions in respect of business emanating from across the Asia-Pacific region.

Insurance and Reinsurance Expertise

we’ve grown as a company, we have been able to dedicate more time and resources to projects like M4M as well as collaborating and volunteering with local charities. “We are also increasing our focus on improving our sustainability and minimising our impact on the environment. This area will be an increased group wide focus of attention and effort.” The fact 2019 has been an extreme-

The full range of available underwriting capability covers the following classes: • • • • • •

Cargo and Specie / Fine Arts Marine Hull and Machinery Marine Liabilities Marine War Offshore Energy Energy Construction

ly positive one for RKH enables it to invest time and resources into uplifting local communities, the CEO very much eager to extend this work alongside growth in the business over the next year. Outlining the imperative to continue developing new talent by transitioning knowledge from experienced professionals, Beatty is optimistic the RKH can continue to grow its own cohort

• • • • • •

Power / Utilities Terrorism Treaty Reinsurance (Property) Accident and Health Political Risks Property

of staff in Asia which has doubled over the past three years alone. Also paying homage to the company’s partners in its ongoing success story, he concludes: “This year has been a great year for RKH, despite very challenging market conditions across all product lines and across all regions. Looking towards 2020, these market conditions won’t be any easier and nonetheless it’s our responsibility to deliver optimal solutions. “Our carrier partners are crucial in this regard and we are focusing on better aligning their appetites and targets in both product line and geography. In these prevailing market conditions, it’s absolutely necessary to trade smartly.”

RKH SPECIALTY Tel: +44 (0) 20 7456 9300 stuart.beatty@rkhspecialty.com www.rkhspecialty.com

Asia Outlook issue 00 | 195

EVENTS

CeMAT Asia October 23-26 | Shanghai, China | www.cemat-asia.com

Celebrating 20 years of logistics industry gatherings CEMAT ASIA’S 20th anniversary starts with glory. As one of the most influential logistics industry trade fairs in Asia and member of Hannover Messe Global brands, CeMAT Asia has taken place successfully for 19 editions since the year 2000. Inheriting the concept “innovative and service oriented, technic based trade fair” of Hannover Messe, CeMAT ASIA has roots in China and provides a high-end trade fair platform to the exhibitors. CeMAT ASIA 2018, the biggest annual meeting platform of the logistics industry in Asia Pacific, gathered famous exhibitors from Germany, Italy, USA, Japan, Korea and elsewhere, with the integrated logistics system the highlight of the show. Leading players in this sector are all 196 | Asia Outlook issue 41

presented, including: DEMATIC, SSI SCHAEFER, TGW, Honeywell, Vanderlande, SFA, Fives, Beijing Material Handling Research Institute, Beijing Research Institution of Automation for Machinery Industry, Kunming Shipbuilding Equipment Co., Ltd., VSTRONG, BlueSword, Zhongding, and Anji Tech. Along with the development of the ecommerce industry, JDX participated at CeMAT ASIA for the first time, showcasing a no-man warehouse on its booth, the first time the solution has been shown in public having been developed at the JDX no-man warehouse robotics centre. Huang Fengquan from JDX no-man warehouse robotics centre delivered a keynote speech “Intelligent Technolo-

gy – The Future of Logistics Industry” on the first day of the CeMAT ASIA innovation event. During the four-day event 630 exhibitors showcased their innovations and products over an exhibition area of nearly 70,000 square metres. The trade show, which is focusing especially on smart logistics, attracted a total of 100,616 visitors to Shanghai.

EVENTS

PTC ASIA October 23-26 | Shanghai, China | www.ptc-asia.com

AS AS IA’S first and the world’s second largest power transmission show, PTC ASIA serves as an important platform to showcase power transmission and control technology. Like a magnet, it attracts the world’s leading enterprises, innovative SMEs, and startups to jointly discuss the trends of the industry and exchange thoughts about the importance of power transmission and control technology in the future. PTC ASIA 2018 gathered 1,300 companies from various countries such as Germany, Italy, Turkey, USA, Spain, Portugal, Japan, Hungary and Romania. Moreover, it attracted 100,616 professional visits from 97 countries and regions. PTC ASIA 2019 will expand to 10 halls, covering 10 exhibition categories including hydraulics, pneumatics, seals, bearings, gears, motors, belts, chains, springs and industrial supply. 198 | Asia Outlook issue 41

A global stage for Chinese manufacturing stakeholders It will boost the “Made in China 2025” strategy with latest products, technologies and solutions for the manufacturing industry and carry on the model of “large industrial platform” proposed at Hannover Messe.

SMART Pavilion Since it was set up in 2017, the SMART Pavilion has invited numerous model manufacturers to showcase their solutions on predictive maintenance and innovative applications on smart

power transmission and fluid power. Visitors were able to experience demonstrations of highly integrated components and solutions focusing on reliability, sustainability, energy efficiency and their economic life cycle costs.

Concurrent events There were 13 events during the same period as PTC ASIA 2018, including the SMART Manufacturing Forum powered by VDMA, the Speed Reducer Technology Innovation Seminar, the China International Automotive Transmission and High Efficiency Transmission Technology Seminar, the Bearing Seminar, the automotive industry matchmaking event for new energy, the overseas buyers sourcing event and many more. They attracted many visitors from various fields of expertise.

EVENTS

Global Compact Network Singapore Summit November 12 | Singapore | https://summit.unglobalcompact.sg/

A platform to share sustainability best practice I N ITS 11th edition, the summit, a premier platform of advocacy, capacity building and networking, brings together eminent knowledge experts, government officials, business leaders, civil society organisations and the youth – to enable a truly inclusive and holistic approach to practising sustainability. Themed “Reimagining Businesses for Resilience” this year, the summit will explore global trends in sustainability and what it means to be a progressive, forward thinking business. Expect insights on leadership, workforce development, plastics, a low-carbon economy, and more! Each year, the event attracts around 350 participants locally and from around the region. Whether you have just started your 200 | Asia Outlook issue 41

sustainability journey or are a seasoned practitioner, the summit will be abuzz with conversations, networking and business development opportunities on sustainability and the Sustainable Development Goals.

Programme highlights include: • Striving for resilience: Reimagining models for cooperation, commitment, and a shared vision • The Big Debate: Plastics – precious or perilous? • Employee, but also human: Ensuring an agile workforce in the face of new technologies • Thriving in a low carbon world – envisioning the transition • Charting the way forward – revolutionary leadership necessary for resilient businesses

About Global Compact Network Singapore (GCNS) GCNS is the Singapore chapter of the United Nations Global Compact. As the national lead agency promoting corporate sustainability, GCNS provides an ecosystem for companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions to achieving the United Nations’ Sustainable Development Goals (SDGs). In addition, GCNS nurtures the next generation of responsible business leaders through its youth initiatives. GCNS is a stakeholder of the Global Reporting Initiative and supports the Singapore chapter of the World Bank Group’s Carbon Pricing Leadership Coalition (CPLC).

REIMAGINING BUSINESSES FOR RESILIENCE 12 November 2019 | 9:30am - 6:00pm

Hear from experts on global trends in sustainability. Walk away with insights on creating a progressive, forward-thinking business. JOIN US

https://summit.unglobalcompact.sg/

EVENTS

The Real Estate Development Summit â€“ Asia November 14-15 | Bangkok, Thailand | www.redevelopmentsummit.com/asia

Addressing the challenges faced by Asiaâ€™s real estate industry TH E E IGHTH edition of The Real Estate Development Summit â€“ Asia is all set to take place on November 14-15, 2019 at Grand Mercure Fortune Hotel, Bangkok, Thailand. The Asia edition brings together a wide canvas of 60-plus solution providers, 20-plus speakers, 150-plus VIP delegates and a fleet of industry thought leaders, hotel owners, hotel operators, developers, architects, designers, consultants, solution providers, technology consultants and investors from Southeast Asia and the Indian subcontinent. The summit encompasses sessions around challenges that project holders and solution providers face on common grounds and evaluates the best practices in revisiting strategies that bring about a paradigm shift in the way the real estate industry functions. 202 | Asia Outlook issue 41

With growing challenges in the real estate sector each day, the summit aims to address a gamut of issues and challenges with respect to finding suitable suppliers with quality and pricing, while also maintaining their international standards and practices. The summit also serves as a ground for face-to-face meetings that add a personal touch in fostering meaningful business relationships that will help investors and suppliers to seal prospective business opportunities. The key attendees for the RED summit include executives and key decision makers from the residential, hospitality, commercial, and mixeduse sectors. The hospitality sector tops the list with 45 percent attendees. The residential sector follows with 30 percent and commercial ranks third with 15 percent.

The key USP of the summit is pre-scheduled face to face meetings between the solution providers and the project holders who are looking to source products for their ongoing and upcoming projects in the region. The summit will also have a range of the latest products on display by solution providers that will be relevant to developers and investors while also promoting new services to prospective customers in a professional set-up An expert-led panel discussion forum with thought leaders will throw light on the latest market trends that will educate and inspire change in the real estate sector. The RED summit will be a potential ground for endless opportunities to connect with people pertaining to their respective fields on many different levels through B2B meetings. The predefined agendas in B2B meetings will facilitate in in-depth analysis of preferences of buyers and suppliers and lays a strong foundation for business transactions.

EVENTS

The International Air Rail Transport Summit – Bangkok November 20 | Bangkok, Thailand | www.airrailsummit.com

Exploring the opportunities facing the future of infrastructure I N VE ST MENT IN transport infrastructure, the development of air-rail connectivity and innovation in construction will be the key themes of the first International Air Rail Transport Summit – Bangkok (www.airrailsummit.com) on Wednesday 20 November 2019. Endorsed by Thailand’s Ministry of Transport and Italy’s Embassy in Thailand, the summit will bring together leading industry and public sector figures from around the world to learn more about air-rail connectivity and explore the opportunities and challenges facing the future of infrastructure planning, delivery and operations. Focused on the rapidly-expanding Asia-Pacific infrastructure pipeline, this one-day event will discuss lessons to be learnt from benchmark mega-projects around the world in relation to improved passenger experiences, efficient operations and innovative construction techniques. With major 204 | Asia Outlook issue 41

projects such as the new high-speed rail links connecting three major airports coming to conclusion, and important airport expansion projects such as U-Tapao International Airport and Suvarnabhumi International Airport in discussion, what are Thailand’s infrastructure priorities post-2020? And what actions are required from all stakeholders to ensure long-term success in achieving Thailand 4.0 targets? Following a keynote speech from Thailand’s Minister of Transport and the Italian Ambassador to Thailand, local and international industry leaders will discuss and share their experiences. Confirmed speakers include Mass Rapid Transit Authority of Thailand (MRTA), Mahanakhon Partners, Manchester Airport Group; Bangkok Airport Rail Link; and London Heathrow Airport. In the afternoon, delegates will be invited to join one of two focus sessions to discuss in more detail the

following key themes: InnoCon Bangkok: As digital technology continues to power a new era of construction; leading experts discuss how best to leverage the increasingly large amounts of data and technology to achieve greater benefits. Air Rail Development: Find out more about international trends and best practices in technology, operations, development, marketing and branding of rail services to airports. Together with a range of networking opportunities and exhibitions, this event at the Centara Grand & Bangkok Convention Centre at Central World will be the best and more exclusive place for bringing together the thai market and international community to share information and knowledge about this important sector. Register for free at: www.airrailsummit.com

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EVENTS Real Estate Finance, Investment Analysis, Valuation & Modelling November 26-28 | Singapore | www.infocusinternational.com/realestate Benefits of attending

• Place real estate in a global context and appreciate what the key risks are for the sector. • Learn market analysis techniques, data and reports. • Analyse the risk and returns of investing in real estate. • Develop land banking, investment and development bank proposals for real estate. • Evaluate discounted cash flow valuation, investment and development frameworks and financial models for lending analysis. • Integrate leases, tax and finance into real estate lending at project and corporate level. • Analyse and build robust models for complex property development and portfolio. • Take away a wide range of financial models for real estate. • Use both debt and equity financing structures and techniques. • Model any real estate investment scenario. • Be inspired. Just one good nugget of inspiration will repay the cost of the course hundreds of times over.

A vital learning programme for real estate professionals RE AL E STATE construction or investment requires a high level of technical expertise in building and using financial models if the building is to be profitable for its builder or owner. This has not always been available, with the result that a large percentage of real estate has been built or bought without the necessary understanding or planning to underpin decision making. The consequence of this lack of planning has often been disastrous. The valuation profession, like many others, has to continuously upgrade and evolve especially in this dynamic real estate market in order to keep pace with one of the most active and 206 | Asia Outlook issue 41

profitable investment opportunities. This course will teach you all the available techniques of real estate finance, investment and development, and how to apply them practically through the use of Microsoft Excel, as well as providing insights into real estate modeling software such as Estate Master and Argus. An extensive use of regional case studies will be adopted to illustrate the principles covered. Ultimately, you will get practical tips on layout and style in building and analysing user-friendly models which are available as additional benefits of attending the course.

This course will teach you all the available techniques and how to practically apply them through the use of Excel and other softwares. Extensive use of case studies will be adopted to illustrate the principles covered. Ultimately you will get practical tips on layout and style in building and analysing user-friendly models which are available as additional benefits of the course. To take full advantage of the hands-on exercises please bring your laptop equipped with Excel. Upon the successful completion of this course, you will receive a Certificate of Completion, to testify your endeavour and serve towards your professional advancement. To view the full programme visit www.infocusinternational.com/realestate

Intensive 3-day course

Real Estate Finance, Investment Analysis, Valuation & Modelling 26 - 28 Nov 2019, Singapore ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Place real estate in a global context and appreciate what key risks are for the sector Learn market analysis techniques, data and reports Analyse the risk and returns of investing in real estate Develop land banking, investment and development bank proposals for real estate Evaluate discounted cash flow valuation, investment and development frameworks and financial models for lending analysis Integrate leases, tax and finance into real estate lending at project and corporate level Analyse and build robust models for complex property development and portfolio Take away a wide range of financial models for real estate Use both debt and equity financing structures and techniques Model any real estate investment scenario Be inspired. Just one good nugget of inspiration will repay the cost of the course hundreds of times over

Media Partners

abigail@infocusinternational.com

www.infocusinternational.com/realestate

EVENTS

Insurtech Insights Hong Kong 2019 November 27-28 | Hong Kong | www.insurtechinsights.com

Shaping tomorrow’s insurance

I NVO LVED IN Insurtech? Attend Insurtech Insights, Asia’s largest Insurtech conference. The largest insurtech conference in Asia, Insurtech Insights Hong Kong 2019, is connecting leading executives, entrepreneurs, and investors from around the world. The future and the opportunities in the insurance value chain will be discussed at The Kerry Hotel in Hong Kong on November 27-28. With more than 200 global speakers and 1,250 of the most prominent leaders and pioneers from the industry, one would be able to gain extraordinary insights on the adaptation and development of the technologies shaping tomorrow’s insurance. 208 | Asia Outlook issue 41

Networking with experts Gathering 1,250 leaders under the roof of The Kerry Hotel to exchange insightful knowledge, have thoughtful discussions and to gain irreplaceable connections, Insurtech Insights will be the platform to connect with future partners and stakeholders.

Your gateway to the Asian market The global insurance community at the Insurtech Insights Hong Kong will help bridge the gap between the developed and undeveloped markets, hereby gaining and giving unique insights of the insurance industry in Asia. The opportunity arises for companies to enable an expansion towards other developed markets for Asian enter-

prises. Connect and build the network needed to take your business off the ground.

Representatives from the entire insurance value chain Insurtech Insights’ community is defined by a broad coverage of the entire insurance value chain: from global, leading insurers to cutting-edge tech startups. Join us in Hong Kong for a unique opportunity to connect and share knowledge with every part of the industry. In collaboration with AsiaOutlook, we offer you a promotional discount. Use ASIAOUTLOOK30 to get 30 percent off your Insurtech Insights Hong Kong Pass.

THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question

Maurice Levine Chairman, Anytime Fitness Asia “The opportunities and challenges in Asia are the same: people. Across our markets, there is an average penetration rate of 2.17 percent of gym goers, and a miniscule number who consider fitness as either a viable business or industry or as a long-term career.

What is the biggest challenge facing your industry at present?

Teoh Oon Kiat Director, Goodhill Enterprise “I think the biggest challenge for both the industry and Goodhill as well is to become future ready. Cambodia has only started opening up to the world post 1989 and developments, though rapid, are still in the relatively early stages. To catch up with the current level of developments and standards of more developed markets is already a challenge. Coupled with the disruptions brought about by the fourth industrial revolution, the difficulties and complexities then multiply.”

Kenneth Teh Group Managing Director, Kit Loong Commercial Tyre Group “For the end user we see a huge amount of confusion around tyre brands, quality and tread patterns, often attracted by pricing but definitely a difficult field to navigate for any purchaser. This leads to wasting of tyres that are used for the wrong application. We also recognise that scrap tyres are not properly disposed of at the end of their usable life. We’re exploring how we better address this, but there’s no easy answer. “Secondly, a lack of discipline and knowledge leads to the challenge of standards and management across the nation. Not everything is always as legitimate as it should be, and although regulation exists, it’s not 100 percent adhered to and less so enforced. This is 210 | Asia Outlook issue 41

an attitude and perspective issue. The final challenge is modernisation. When global logistic companies are becoming super sophisticated, we need to modernise to keep pace.”

Stuart Beatty CEO, RKH Specialty “Changing from pretty archaic and inefficient work practises to embracing technology, capturing and using data more efficiently is a big challenge we are facing in the whole industry. The disruption currently taking place in (re)insurance markets is at its most acute since the culmination of the global financial crisis. Industry reserves, deteriorating earlier catastrophe losses, and eye-popping expense ratios are combining with macro headwinds, changes in investor appetite and less predictable global capital flows. Unlike in previous cycles, capital inflows alone will not be enough to meet the industry’s challenges.”

Dr Shahzad Nasim Meinhardt Group Executive Chairman and Meinhardt Singapore Managing Director “By 2030, one in four Singaporeans will be aged 65 years and above. Cities will have to make provisions for the silver tsunami that will put a strain on healthcare and transportation as well as social safety networks. “Concurrently, the effects of climate change loom large in the horizon. Singapore’s Prime Minister Lee Hsien Loong recently highlighted the urgent need for us to future proof our city against the effects of climate change which will bring about rising sea levels and potentially disruptive effects on our city.”

Are you a CEO/Director with a company story to tell? Contact Asia Outlook now!

Charting the Solomon Islands’ progressive, transformative maritime course... SOLOMON ISLANDS PORTS AUTHORITY

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CHARTING THE SOLOMON ISLANDS’ PROGRESSIVE, TRANSFORMATIVE MARITIME COURSE

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66 36

are looked after in times of mourning. • Free lunches, setting people up to work effectively until the end of the business day.

2 | Asia Outlook issue 41

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Asia Outlook issue 41 | 3

LOGISTICS

he maritime industry has been instrumental to the development of global civilisations throughout history. Providing humanity with the capacity for cross-continental exploration, mass fishing and greater mobility than land-based travel for trade, transport or warfare, it is understood that the first ships (if you can call them that) were developed many millennia prior to the BC era. Initially consisting of single logs that floated down rivers with small cargo attached to them, greater numbers of logs were eventually strapped together forming rafts to carry larger loads. Fast forward through the centuries and boats gradually became more sophisticated. The Austronesians invented the same oceangoing sailing technologies in 3000 BC that are still used today, allowing them to achieve SOLOMON ISLANDS PORTS AUTHORITY seaborne migration and establish sophisticated trade routes throughout “Meanwhile, we’re also planning to ADVOCATING GREATER the Asia Pacific. implement smart-gate entry systems INDEPENDENCE and mobile-enabled booking The records most important aspect of these By systems 200 AD, suggest that for the trucking companies that we game-changing strides in the eyes of some ships were capable carrying work with, and an x-ray scanning the CEO is that they are of all funded by system to more effectively monitor the SIPA itself. 700 people and up to 1,000 tonnes cargo that we deal with in the future Self-sufficiency is a core element of as well.” company’s overriding mandate, not a of cargo. Yetthethese vessels were still only in the way that it operates, working far cry from inthe sea manner, freighters that a debt-free but equally in the we CSR vision that it has for the entire country. know today.Kotelawala himself is SIPA’s sole expat, GIVING BACK thebiggest CEO preferring to impart knowl-ship The worlds container edge and provide ambitious career SIPA actively invests in people, OOCL opportunities Hong Kong currently for local–people. ensuring it fosters–a the professional “We have a lot of talent retention workforce and creates a familymeasures the length of about four strategies and training programmes orientated, enviable workplace geared towards employee environment. These employee- pitches, football has afurthering deadweight development,” he affirms. investment programmes include tonnage of 191,317 tonnes, Evidencemetric of this comes from the and but are not limited to: Solomon Ports Internship Programme. • A vehicle payment scheme, a capacity equivalent to that of 21,413 Assisting degree-level students with helping to reduce a reliance on work placements, it is a scheme that standard public transport and reduce theshipping containers. provides successful applicants with pressures of family life. Albeit impressive, this on-the-job insight intomonumental each of the • Clinic privileges, operating organisation’s departments. surge an in-house clinic for bothin its size is just one facet of the employees and their families, sector that has changed drastically in offering free medical supplies and consultations from modern times. two experienced medical Sophisticated marine technologies practitioners. • Recreational activities, have been the subject of a similarly running an annual sporting meteoric rise, with the likes of blockevent and maintaining its Ports Playground that allows chain, artificial intelligence, robotics employees to play football, netball and volleyball their andatanalytics all stamping their mark, discretion. enhancing operational efficiency and • Study or training leave, upholding employee introducing automated processes. development as a priority. As a result, one of the world’s oldest • A funeral scheme, footing almost all funeral costs for all industries now floats above many othimmediate family members ers, championing global technological of employees to ensure they

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Asia Outlook issue 41 | 75

Solomon Ports has told its story. Now, why not tell yours? Our monthly magazine Asia Outlook is essential reading for business executives wanting to keep up with the latest in global news and trends affecting Asian businesses across all industries. With a monthly coverage of over 220,000 readers, your company can take advantage of exposure in Asia Outlook with a FREE article and FREE digital brochure, as well as access to further digital and print-based marketing tools that could transform your business. To share in this unrivalled opportunity, contact one of our project managers today!

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Issue 41

www.asiaoutlookmag.com/get-involved A Q&A with Mike Foster, Australia & New Zealand CEO

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