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Issue 45

A COUNTRY TOWN CULTURE How Andersens, despite the ongoing disruption caused by COVID-19, is embarking on an ambitious plan to grow its franchise network across Australia

CHIP MONG RETAIL Spearheading the growth of Cambodian retail

B+H ARCHITECTS

Defining a new normal while continuing to deliver for clients

OYOâ€™s Japan, South East Asia & Middle East CEO Dr Mandar Vaidya talks coronavirus and the hospitality sector

Asia just got bigger...

Asia Outlook is expanding to become APAC Outlook. Building on the success weâ€™ve had in telling the stories of business operating throughout Asia, the time has come to open up to the whole of the Asia Pacific region. From Australia and New Zealand to Papua New Guinea and the Pacific islands, APAC Outlook is ready to uncover inspirational examples of innovation and growth across multiple industry categories. Visit www.apacoutlookmag.com/ get-involved for details on how your company can feature for free in one of our upcoming editions.

www.apacoutlookmag.com/get-involved

WELCOME

A New Chapter

EDITORIAL Editorial Director: Tom Wadlow tom.wadlow@outlookpublishing.com Editor: Dani Redd dani.redd@outlookpublishing.com PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com

As the world continues to be gripped by the

Senior Designer: Devon Collins devon.collins@outlookpublishing.com

coronavirus pandemic, we continue to uncover stories of resilience and innovation within the

Junior Designer: Matt Loudwell matt.loudwell@outlookpublishing.com

regional business community.

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 DIRECTOR Joshua Mann joshua.mann@outlookpublishing.com HEADS OF PROJECTS Callam Waller callam.waller@outlookpublishing.com Thomas Arnold thomas.arnold@outlookpublishing.com Vivek Valmiki vivek.valmiki@outlookpublishing.com TRAINING & DEVELOPMENT DIRECTOR Eddie Clinton eddie.clinton@outlookpublishing.com SALES MANAGERS Donovan Smith donovan.smith@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com PROJECT MANAGERS David Knott david.knott@outlookpublishing.com Kyle Livingstone kyle.livingstone@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 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

From adopting new working cultures to implementing meticulous hygiene standards in order to safeguard employees, organisations are adapting to survive and, in many cases, uncovering new opportunities to generate business. We want to provide a platform for even more of these stories to be told. Therefore, this will be the final edition of Asia Outlook as we know it. From our October edition (Issue 46) onwards, we will be rebranding to APAC Outlook to encompass a heightened focus on activities in Australia and New Zealand, as well as the surrounding Pacific islands. This builds on the already globally successful Asia Outlook platform, and we will, of course, continue to explore the biggest and best of business across the Asian continent. Asia Pacific, or APAC, has long been recognised as a unified part of the world in terms of commerce and trade, and it is our intention to bring you the most inspiring stories from a host of industries which contribute to economic growth across the entire region. Be sure to head over to our newly-branded website www.apacoutlookmag. com to discover more and subscribe, the easiest way to ensure you donâ€™t miss the launch issue of APAC Outlook magazine. In terms of the magazine that awaits you here, we delve into the COVID-19 response in New Zealand, widely praised for its handling of the pandemic to date. Meanwhile, in Australia, we speak with leading retailer Andersens about how it has adapted to the so-called new normal, CEO Rowan Hodge explaining how the coronavirus outbreak has exacerbated the need to evolve in order to meet customer expectations. Elsewhere, hotel giant OYO provides a fascinating insight into how the tourism industry is responding in these extraordinary times. We caught up with its CEO for Japan, South East Asia & Middle East, Dr Mandar Vaidya, to see how the company is looking to kickstart. Enjoy the issue!Â

Tom Wadlow Editorial Director, Outlook Publishing Asia Outlook issue 45 | 3

CONTENTS

78 8

REGULARS

6 NEWS

76 PTC ASIA

8 EXPERT EYE

A regional forum for all things power transmission

IoT and the Digital Transformation of APAC Businesses

BUSINESS INSIGHT

12 Hospitality

Bouncing Back A Q&A with Dr Mandar Vaidya, CEO Japan, South East Asia & Middle East at OYO Rooms

18 COVID-19 Acting Fast

An analysis of New Zealand’s coronavirus response

TOPICAL FOCUS

20 Risk management Answering the Call

The responsive, adaptive approach to building crisis management and QHSE resilience

20 4 | Asia Outlook issue 45

EVENTS

Around Asia Pacific in seven stories

78 CeMAT ASIA All eyes on Shanghai for bigger and bigger 2020 event

80 Asia Warehousing Show The supply chain spectrum under one roof

82 THE FINAL WORD What impact has the coronavirus pandemic had on your industry, and how are you responding?

ASIA OUTLOOK MAGAZINE

28 F E AT U R E S

26 SHOWCASING LEADING COMPANIES Tell us your story and we’ll tell the world

RETAIL

28 Andersens Floor Coverings

Curating the Country Town Culture A franchise network built on a commitment to the customer

34 Chip Mong Retail

Customer Experience is King Spearheading the growth of Cambodian retail

CONSTRUCTION

42 Dhaya Maju Infrastructure (Asia) Sdn Bhd Keeping Malaysia On Track

Sustaining socioeconomic development in challenging times

62 HALCOM Vietnam

The Renewable Renaissance A driving force behind Vietnam’s sustainable development

48 Tony Ip Green Architects

HEALTHCARE

Driving sustainable development in the heart of Hong Kong

A Caring Profession

Architecture for Green Living

54 B+H Architects Designed to Inspire

Defining a new normal while continuing to deliver

ENERGY & UTILITIES

68 Union Medical Healthcare Putting client wellbeing at the front and centre

FOOD & DRINK

72 Trukai Industries Producing for PNG

Building a rice industry for the people of Papua New Guinea

68 Asia Outlook issue 45 | 5

NEWS Around Asia Pacific in seven stories… R E TA I L

DiDi expands delivery service to Sydney

BIOTECH

SINGAPOREAN SCIENTISTS CREATE TOUCH-SENSITIVE ARTIFICIAL SKIN R ES EA RCHERS IN Singapore have developed an electronic skin, which will allow people with prosthetic limbs to detect objects, feel textures and even experience pain. ACES (Asynchronous Coded Electronic Skin) consists of 100 small sensors across a square centimetre. According to its creators it can process information faster than the human nervous system

R I DE S H A R E CO M PA N Y DiDi has launched its contact-free delivery service in Sydney. It allows users to deliver items across the city, and offers contactless kerbside delivery, instant quotes and parcel tracking. According to DiDi’s Australia General Manager Lyn Ma, the service will allow communities a way to stay connected. “We hope that DiDi Delivery can also provide consumers and businesses a quick, convenient and cost-effective solution to sending parcels,” she said. The company also recently announced plans to launch in 20 more locations across Australia, including Canberra and Mackay.

and recognise between 20 to 30 textures. “Humans need to slide to feel texture, but in this case the skin, with just a single touch, is able to detect textures of different roughness,” said research team leader Benjamin Tee. The technology is still in the experimental stage, but Tee said it had already generated a lot of interest within the medical community.

COV I D -1 9

Wockhardt to supply UK government with COVID-19 vaccines I N D I A N D R U G M A K I N G giant Wockhardt has struck a deal with the UK government to supply the government with millions of doses of multiple COVID-19 vaccines, including those being developed by AstraZeneca and Oxford University. 6 | Asia Outlook issue 45

Part of the agreement includes fill-and-finish capacity – the final step of putting vaccines into syringes in vials or syringes and packaging them. According to Wockhardt’s Chairman Habil Khorakiwala, the company has a fill-and-finish manufacturing capacity of 400 million doses in the UK and 600 million in India. Since the news of the deal, shares of Wockhardt have jumped by 10 percent.

M A N U FA C T U R I N G

OIL & GAS

SEVEN & I HOLDINGS BUYS US SPEEDWAY GAS STATIONS

China’s factory activity experiences largest increase of the decade A PR IVATE survey undertaken by Caixin Insight Group showed that China’s factory activity had expanded at the fastest pace in almost a decade. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 52.8 in July, up from June’s 51.2 – the largest jump since January 2011. Analysts had forecast a far more modest improvement to 51.3. “The supply and demand sides both improved, with relevant indicators

maintaining strong momentum,” said Wang Zhe, Senior Economist at Caixin Insight Group. However, export demand remains weak, while virus restrictions in other parts of the world could impede a global recovery.

OIL & GAS

Indonesia revises law to allow oil and gas investors greater flexibility INDO NESIA HAS revised a 2017 law, allowing oil and gas investors more flexibility when choosing contract options. Since 2017 Indonesia has adopted the gross split scheme, meaning contractors pay the cost of exploration and production, but main-

tain a greater portion of the oil and gas they recover. From July 16, however, investors have been able to choose between gross split and cost recovery schemes, where the government shoulders exploration and production costs in exchange for a greater portion of profit. “This change is to provide legal certainty and increase investment in upstream oil and gas business activities,” the Energy Ministry said in a recent statement.

MA R ATH O N P E TR O L E U M recently brokered a deal with Japanese retail giant Seven & i Holdings, selling its Speedway gas stations in the US for $21 billion. The deal was abandoned for five months during the coronavirus pandemic. Seven & i Holdings own the 7-Eleven convenience store chain – this latest deal will bring its outlet count to around 14,000 across the US and Canada. The deal is expected to close in Q1 of 2021 and includes a 15-year fuel supply agreement associated with Speedway.

TOURISM

NEW ZEALAND GRANTS $151.5 MILLION TO PROTECT TOURISM JOBS TH E G OV E R N M E N T of New Zealand is spending more than $151.5 million on strategic tourism assets, helping protect up to 3,000 jobs within the sector. Tourism Minister Kelvin Davis recently released the names of the 126 businesses receiving a $329,350 grant, and who would later be eligible for a soft loans package. More than 300 business applied. Davis also announced a regional events fund of $33 million, and a $13 million inbound tour operator loan scheme. New Zealand has been widely praised for the way it has handled the COVID-19 pandemic, the country looking to rebuild its economy following a tight lockdown period.

Asia Outlook issue 45 | 7

EXPERT EYE

IoT and the Digital Transformation of APAC Businesses Sin Hin Wong, Managing Director & VP of Sales, APAC at PDI Software, outlines the state of play regarding the region’s rapid digitisation of business Written by: Sin Hin Wong, Managing Director & VP of Sales, APAC at PDI Software

he Asia Pacific region is well on its way to becoming the world’s biggest hardware, software and services market for the internet of things (IoT), with regional spending expected to reach $398.6 billion in 2023. This growth opens up many opportunities for local businesses to leverage the latest IoT solutions and adopt a data-driven strategy to compete at home and across the globe. A recent report by the International Data Corporation (IDC) shows that APAC represents 35.7 percent of the world’s spending on IoT solutions, which refers to a network of Internetenabled devices and systems that are transforming nearly every industry. Whether your company is based in the region or doing business here, APAC’s digital transformation is unlocking new opportunities for your organisation to operate more effectively across the board. The region’s rapid pace of digital transformation and growth potential has attracted investments from leading technology companies. Earlier this year, I led the Bangkok opening of PDI’s Regional Center of Excellence to support the unprecedented business growth within the convenience retail, petroleum wholesale and logistics industries as we scale operations and help drive this digital transformation. PDI’s presence here attests to global technology companies’ confidence in the region’s future. With the ongoing digital transformation, businesses can 8 | Asia Outlook issue 45

ABOUT THE EXPERT Sin Hin Wong is a retail IT and executive leader with more than 20 years of consulting, retail and hospitality industry experience in Asia Pacific. He has collaborated with regional retail and hospitality MNCs to redefine retail success and customer experience using retail analytics, disruptive technology and consumer insight. Sin Hin graduated with an executive MBA and MSc in Marketing & Consumer Insight from Nanyang Business School, NTU Singapore. He holds a BBA in Finance (Hons.) from Western Michigan University. He completed an Advanced Management Program at UC Berkeley, a Financial Leadership Program at The Wharton School and earned his PMP from Project Management Institute. Before joining PDI, Sin Hin led RetailNext’s business in Asia Pacific and served as a regional director at NCR responsible for radiant systems retail and hospitality business in Asia.

expect to see increased adoption of end-to-end cloud-based solutions, machine-learning capabilities in data analysis and industry-specific technologies that are designed to:

Increase operational and marketing efficiencies APAC’s booming digital economy requires agility in retailers’ marketing

efforts to keep up with consumer engagement in real time through text messaging, mobile apps and social media. Businesses also need greater control and seamless connectivity of their processes, teams and data at the store level. A cloud-based marketing solution allows real-time sales data from individual stores to feed into a centralised system. In turn, this data can automatically inform the offers customers receive and the amount of new stock needed at the store. Connecting processes in this way increases efficiency and enables retailers to implement more effective customer relationship management (CRM) and profitable marketing outcomes. However, for retailers to leverage insights from customer data, they must address consumers’ concern about personal data safety by strengthening the security of their platforms and increasing their efforts in educating the public about best practices in keeping private information safe. APAC cloud adoption is expanding not just in the retail sector but across all industries, with spending on public cloud services and infrastructure expected to reach $26 billion in 2019, a 47 percent increase over 2018 spending, according to IDC.

Keep prices competitive An improved regional economy has brought increased mobility and fuel consumption. APAC’s oil demand is expected to grow from 4.7 million bar-

rels per day in 2017 to around 6.6 million barrels per day in 2040, according to the International Energy Agency. While APAC countries are at different stages of economic development and have varied consumption patterns, they share a common challenge – to meet a rising demand for fuel. That’s why wholesale and retail petroleum providers are turning to fuel pricing technology with advanced AI and machine learning algorithms that adjust for many factors such as inventory levels and price elasticity to determine the optimal price at any given moment. Previously manual and time-intensive processes have been replaced with smart technology that automatically manages price fluctuations to present the best fuel price to customers, while protecting important margins.

Capture more data to improve logistics As oil demands and dependency on oil imports grow, the logistics sector

has been looking for ways to improve efficiency and remain competitive. IoT is enabling the supply chain to improve fleet tracking and scheduling, as well as capture point-of-sale and automatic-tank-gauge data, in real time. Data-driven insights are helping businesses improve their efficiency and make more informed decisions. For oil companies and petroleum marketers, the need to capture more data and automate the entire supply chain through a one-stop logistics solution is greater now than ever. A recent University of Tennessee and Georgia College study of shippers and logistics companies in the United States found that more than 40 percent of respondents cited data analytics as the most important technology they need for managing supply chains in the next two years. While there are no comparable statistics available for APAC businesses, the study indicates the general need in the industry for solutions that can leverage data from

across the supply chain to improve logistics processes. Gartner is predicting the number of Internet of Things (IoT) devices in the world will hit 20.4 billion by 2020. Businesses across the board should start to consider the implications this will have on their business now and in the future if they’re to remain sustainable and competitive. For APAC businesses in particular, technology adoption in the region shows no signs of slowing and a strong economic outlook is creating so many opportunities for leaders to grow their business with the help of digital technology. If you’re looking to explore this opportunity further, you could consider a technology partner to help you grow and thrive in today’s digital economy. Digital success is not as simple as buying and implementing a software solution. To succeed for the long haul, every function in an organisation should be engaged in digital transformation and proactively driving the company’s business goals. Asia Outlook issue 45 | 9

Outlook Creative Services Complementing the production of Africa Outlook, Asia Outlook and EME Outlook magazines, Outlook Publishingâ€™s award-winning in-house team is now utilising these same specialist production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division. For more information on how we can work with you in providing a plethora of completely flexible and customisable production services, please visit: www.outlookpublishing.com/creative-services

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OYO ROOMS

12 | Asia Outlook issue 45

HOSPITALITY

Bouncing BACK Oyo Rooms CEO for Japan, South East Asia & Middle East Dr Mandar Vaidya discusses the devastating impact coronavirus has had on the hospitality sector, and how OYO is looking to restart Edited by Tom Wadlow and Dani Redd

f one industry has been ravaged by the coronavirus epidemic, it is hospitality. Subject to worldwide lockdowns and restrictions of movement, it is only now that some major tourist-providing economies such as the UK are opening back up. It is a crisis almost nobody anticipated, but one which has fundamentally changed the way hotels and hospitality venues will operate in the future, with capacity limits and hygiene measures critical to a destinationâ€™s ability to attract and welcome guests safely. Last year we spoke with Indian hotel brand OYO Rooms about its surge into China, where the coronavirus originally broke out. This time we caught up with Dr Mandar Vaidya, CEO Japan, South East Asia & Middle East at OYO, to discuss the current climate.

Asia Outlook (AsO): What strategies has OYO deployed in Asian countries to weather the COVID-19 storm? Dr Mandar Vaidya (MV): In this industry, maintaining the trust and confidence of guests is key, and this is reflected in the guest-first approach OYO is taking through our new protocols, in order to provide reassurance and peace of mind. All aspects of the customer journey, especially on hygiene and cleanliness, are being relooked at going forward. Contactless experiences will be important. We also believe that travellers will demonstrate preferences for hotels, restaurants and lodging facilities that communicate enhanced sanitation and hygiene protocols. The focus is on being clinically clean. Technology will also be a factor. As a hospitality company that has invested significantly in technology, OYO is well positioned to leverage this for our partners. AsO: In what ways has OYO been helping keyworkers and local communities? MV: OYO is deeply concerned with the spread of COVID-19 and the impact it has on people and businesses around the world. The hospitality industry has been impacted and we are also concerned with the impact COVID-19 has on our partners. Our responsibility as #TeamOYO compels us to come out Asia Outlook issue 45 | 13

OYO ROOMS in full support of everyone connected to OYO as we navigate through this difficult phase. OYO has identified a large number of our hotels to partner with hospitals for setting up safe, pay per use quarantine facilities. Others are focused on providing safe shelter to tourists and travellers who are stranded in certain areas owing to the lockdown for the greater public good. We have started a fund internally and are also contributing to other external funds to support the fight against coronavirus across different parts of the world.

OYO in South East Asia has set up a dedicated Fund of $200,000 to support our partners whose lives, families and businesses are infected and impacted by this pandemic. I will also contribute a portion of my salary to this fund. To support medical and health COVID-19 frontliners in Mindanao, OYO is offering discounts to practitioners from hospitals within a five-kilometer radius of its partner properties. The company is also closely coordinating with BPOs and other businesses for accommodation for their employees, and with stranded foreign tourists

GOING GREEN Dr Mandar Vaidya: “OYO supports all parties and policies that bring about positive impact on the environment. As a company that’s very much part of the local community, we are deeply concerned with the region’s growing reputation as one of the leading contributors of plastic pollution in the world and wanted to do something about it. “Across SEA, we have initiated a Roadmap Towards Zero Single-Use Plastic by encouraging guests to bring their own toiletries. We hope to prevent tens of millions single use plastic bottles from going to landfills in the region and reduce our waste footprint for a greener, healthier world.”

14 | Asia Outlook issue 45

affected by the lockdown. In the Philippines, we are offering accommodation at discounted prices to practitioners from hospitals within a five-kilometre radius of our hotels in Mindanao. In response to the need for more accommodations raised on social media and by local government units and NGOs, 24 OYO properties in Mindanao were reopened. We have also worked with the office of the Vice President, Leni Robredo to open dorms for frontliners in Quezon City. In Malaysia, we are offering complimentary rooms to medical practitioners at three of the busiest public hospitals treating COVID-19 cases in the country. For government employees and those working in essential services, we are offering relaxation of up to 50 percent across Oyo Rooms. Additionally, we have reached out to embassies and consulates to offer discounted tariffs for tourists and guests who need a place to stay. In Indonesia, we have opened doors to healthcare front liners from RSPAD Gatot Soebroto, one of the nine hospitals in Jakarta designated as COVID-19 handling facilities. We are also exploring the possibility to extend the free rooms to other designated hospitals in Jakarta. We are also reaching out to embassies and consulates to offer discounted tariffs for tourists/guests who need a place to stay. We have taken a series of measures to accommodate foreign nationals stranded in the country as well as provide support to frontline medical staff, aircrew, corporates, tourists, PGs, etc. who need accommodation. We reached out to more than 15 embassies in order to support the Ministry of Tourism in efforts to secure shelter for all travellers in need across the country. OYO stands in solidarity with all OYOprenuers and our partners around the world. Our effort reflects the organisation’s culture and values, which we hope will spur others to do their part during this challenging and uncertain time.

HOSPITALITY The fund, set up with a dedicated commitment of $200,000 by OYO in South East Asia, will cover partners and their family members impacted by COVID-19. AsO: In what ways has the coronavirus caused OYO to adapt its plans and strategies for growth and development in the near future? MV: Our business is constantly evolving and innovating. The pandemic has forced us to rethink and review every aspect of our business and make the right decisions required for its success. We have put together an improved model that promises to deliver better value and greater efficiency to the AsO: Can you speak a little more about the OYO Welfare Fund, and what it has been used for? MV: Proceeds will be used for the benefit and welfare of the employees at our properties, asset partners and their staff members impacted by the pandemic. In the long run, it will also be used for the welfare of the community at large when faced with such situations. Through this welfare fund, OYO employees have the opportunity to contribute voluntarily to help those in need. The OYO leadership team and company are further contributing INR 2.5 crore (INR 25 million) to the Indian PM CARES fund to support millions of people with healthcare, infrastructure, and other facilities. The company has made global investments of approximately $3.5 million or INR 25 crore in the fight against COVID-19 and pledges to continue doing all it can to support those in need. OYO in South East Asia also announced a dedicated fund to support its partners and their families in the region who have been afflicted by COVID-19. The setting up of the fund for SEA follows a dedicated fund of more than a million RMB in China to support infected employees and their family members.

â€œPREPARING EARLY IS KEY TO WEATHERING THE STORM AND I AM CONFIDENT WE WILL EMERGE IN A POSITION THAT SETS US ON A PATH TOWARDS LONGTERM SUCCESSâ€?

business. The decision is in the best interest of all stakeholders to maintain business continuity amid the economic pressures. In preparation to face the protocols of the new norm, we have rethought every aspect of our business and will continue to consider all options that enable us to succeed and contribute towards the success of our partners and the communities we serve. Our goal is to get back to our core purpose Asia Outlook issue 45 | 15

OYO ROOMS

“OYO’S SUCCESS IS DOWN TO FULFILLING THE NEED FOR AFFORDABLE, CLEAN LIVING SPACES OUTSIDE OF THE MAIN CITIES. GUESTS TRUST OUR BRAND” – providing clean living spaces at affordable prices – and we will continue to move towards that goal. Preparing early is key to weathering the storm and I am confident we will emerge in a position that sets us on a path towards long-term success. AsO: Pre-coronavirus, OYO was one of Asia’s fastest growing hotel chains. What do you think explains its success? MV: SEA is a strategic growth market for OYO globally. We are constantly looking at being a long term wide16 | Asia Outlook issue 45

scale impactful and sustainable company for our customers, our asset owner partners, our stakeholders and our OYOpreneurs. Like in India, there was a massive dearth of affordable and good-quality hotels in the unbranded budget hotel category in the region. OYO’s success is down to fulfilling the need for affordable, clean living spaces outside of the main cities. Guests trust our brand and we are already known for pioneering effective solutions tailored to their needs. We are also present in towns and

cities where the bigger chains are not. We look forward to strengthening our footprint across the country with a diverse portfolio and relentless commitment towards delivering more choice and delighting our guests with exceptional customer experiences. We are focused on bringing OYO’s successful model of combining design, hospitality, and technological expertise, financial acumen and operational capabilities to real estate owners in more cities and towns in Malaysia, giving them the ability to get a higher return on investments, access easy financing opportunities, transform their hotels, and offer good quality customer service, thereby significantly increasing occupancy and profitability – in every OYO building, with the OYO promise of AC, free Wi-Fi, TV and clean linen for all travellers.

HOSPITALITY For our customers, weâ€™re committed to deliver beautifully designed, chic and comfortable living spaces at hardto-ignore prices. We are committed to build on the success of our business model and work with small and independent asset owners to upgrade unbranded hotels into quality living spaces and offer them at affordable prices in the best locations across the region. AsO: Do you feel optimistic about recovery over the next 12 months? MV: The entire global economy is hurting, and OYO is not immune to the effects of this global pandemic. We exist in an ecosystem of partnerships and interconnected businesses, many of whom are feeling significant pain. Itâ€™s too early to tell what the impact on occupancy rates will be, but we have studied trends and data In countries who have lifted isolation protocols and we see as many as 90 percent of those ready to travel want to start domestically, as experts point to safety fears and the desire to be near the security of home as driving forces in consumer decisions.

We expect the same pattern in SEA, and we see domestic travel, whether for business or leisure, kickstarting the recovery for the hospitality sector in the region. As economic activity resumes, we are starting to see an uptick in bookings from business travelers and also local tourists at a majority of our properties in countries where the isolation protocols have been lifted. During a recent long weekend in Vietnam, we saw a double digit increase in occupancy.

It will still take some time before we return to pre-covid levels. Unlike the bigger chains and network hotels who may be present in the major cities, OYOâ€™s presence extends beyond the main cities and to second and third tier towns and provinces across SEA, which adds to our appeal as the hotel of choice for business travellers and locals alike. With our network and reach, we expect the pace of recovery to be faster for us compared to hotels in the four to five-star category.

COVID-19

ACTING FAST How an early lockdown and clear communication strategy has given New Zealand one of the best success rates for beating coronavirus Written by: Dani Redd

n February 27th, 2020, the first case of coronavirus was recorded in New Zealand. By March 25th it had imposed a strict lockdown. Fast forward four months and New Zealand is being held up as a shining example for its success in beating the virus – it hasn’t had a locally acquired case since May 22nd. Meanwhile, Prime Minister Jacinda Ardern’s approval rating is at an all time high of 62 percent. What has made her government’s coronavirus response strategy so effective?

ACTING EARLY New Zealand’s government implemented its lockdown when the country only had 205 COVID-19 cases and no deaths. Compared to other countries, this was remarkably early – the UK, for example, went 18 | Asia Outlook issue 45

into full lockdown when there were more than 6,500 cases and over 330 deaths. Acting this early was not New Zealand’s initial plan; like many other countries it planned to slowly tighten measures as the virus took hold. But Michael Baker, a public health expert on the government’s COVID-19 advisory panel, believed this was the wrong approach. “I thought we should do it in the reverse order and throw everything at the pandemic at the start,” he told New Scientist magazine. Baker was inspired by the World Health Organization’s report from China, which reported on the effective containment of the virus through stringent lockdown measures. He believed that acting early and aggressively would stop the spread of the virus, even wipe it out entirely.

Although other experts on the panel had contrary suggestions, the government followed Baker’s advice. “We’re going hard and we’re going early,” Ardern told the public. “We only have 102 cases, but so did Italy once.” The government established a four-level alert system for lockdown. Level four lockdown, initiated on March 25th, saw the cancellation of all sports matches and the closure of non-essential services, including pools and playgrounds. People were ordered to remain at home unless it was necessary to head out. On April 28th, the country moved down to level three alert (including easing of work restrictions, reopening of early years childcare), and reached level two alert on May 13th, which allowed socially distanced gatherings of up to 10 people. On June 8th, following two weeks with no new cases, the country lifted all restrictions. At the time of writing, there have only been 22 deaths related to coronavirus in the country, testament to a successful strategy. But even so, Ardern cautioned the country against celebrating too soon,

CASE STUDY warning that cases may reoccur. “Elimination is not a point in time, it is a sustained effort,” she said. Indeed, in the past 24 hours, New Zealand has two new confirmed cases, both visitors from abroad, staying in official managed isolation and quarantine facilities.

CLEAR, CONSISTENT AND EMPATHETIC MESSAGING Another reason New Zealand is receiving worldwide praise is thanks to its clear communication with local inhabitants. “Jacinda is a brilliant communicator and an empathetic leader. But what she’s said also made sense and I think people really trusted that. There’s been a high level of compliance,” Baker told the BBC. Ardern has been holding daily press conferences accompanied by Ashley Bloomfield, Director-General of Health, whose clear messaging has also been praised. “From the outset he has carefully and calmly communicated many complex health issues around COVID-19 paving the way for government decisions,” explains Sarah Robson, a journalist at Radio New Zealand. The four-level alert system has given the public clear guidance on how to behave during the lockdown, which has resulted in a high degree of compliance. Furthermore, noncompliance has not been tolerated. Health Minister David Clark was demoted after breaking lockdown rules to take his family to the beach. He later resigned after coming under fire for the mismanagement of isolation facilities. Ensuring senior government officials are accountable for their actions sends a clear message to the public. This was not the case in the UK, when senior advisor Dominic Cummings was defended by the Prime Minister after allegedly breaking the lockdown rules on multiple

occasions, which sparked public outrage. Research conducted by the Institute of Applied Economics and Social Value showed that the number of people breaking lockdown rules almost doubled during the week that the Cummings story broke, while data gathered from Apple Maps shows an increase in mobility.

EARLY ECONOMIC SUPPORT Some of New Zealand’s economic measures for the COVID-19 crisis include: • The Wage Subsidy Scheme for businesses expecting to experience a 40 percent or more decline in turnover • Tax free income relief payments of $323 per week for those who lost their jobs during the pandemic • Sector-specific support packages for the arts, sport, aviation and tourism industries • A $7.92 billion NZ infrastructure stimulus package, with a further $2 billion promised for ‘shovel ready products’

As well as being consistent, Ardern is also being internationally praised for her empathy. Rather than drawing on the popular political rhetoric of waging war against the virus, the New Zealand government urged the population to unite to overcome it. Ardern has repeatedly referred to New Zealand as “our team of five million”, signing off public appearances with the slogan “Be strong. Be kind.”. She even announced that she and her senior ministers would take a 20 percent

pay cut for the next six months – a way of showing she acknowledges the financial difficulties faced by New Zealanders.

ECONOMIC RECOVERY New Zealand’s early complete lockdown meant that the brunt of the economic costs of the virus were borne early. The government moved quickly to deploy a series of economic measures. In its 40 page report, Rebuild New Zealand 2020, PwC praised the government’s agility in its unprecedented scale of spending and agility in quickly implementing new policies. However, it suggested that there would still be economic difficulties, predicting a decline in GDP of between seven and eight percent and an increase in unemployment, peaking at 9.8 percent in September 2020. It also anticipates a rise in Crown debt from $58.66 billion in 2020 to $124.5 billion in 2020. Like the rest of the world, then, New Zealand faces a long road to economic recovery. But the report by PwC suggests that there are reasons to be optimistic. The largest economic sector, agriculture, continues to perform well, whilst a recent investment in ultra-fast broadband will allow many workforces to upskill and participate in global opportunities. HSBC’s Australia and New Zealand chief economist, Paul Bloxham, anticipates that New Zealand will recover more quickly than Australia. “For New Zealand, a higher economic cost was borne upfront, with the full lockdown,” he explains. “However, local elimination has put the economy on track for a ‘V-shaped’ bounce back. We are pencilling in a 12.6 percent quarter-on-quarter rise in GDP in the third quarter.” Despite the happiness at lockdown lifting, New Zealand has a long journey to recovery. But with Ardern at the helm, the country has every chance of bouncing back. Asia Outlook issue 45 | 19

GLOBAL RESPONDERS GROUP

ANSWERING THE CALL Global Responders Group has emerged as a leading provider of integrated risk management solutions, its responsive, adaptive network of expertise able to satisfy any client’s Crisis Management and QHSE needs Writer: Tom Wadlow

n April 20, 2010, the world was rocked by a catastrophic oil rig explosion in the Gulf of Mexico. The Deepwater Horizon accident, recognised as the largest marine oil spill in history, spread over 150,000 square kilometres of water and left a devastating trail of environmental and economic damage in its wake. Although an extreme example, the incident highlights the value of robust, uncompromising standards in quality, health, safety and environment (QHSE) management. The spill cost BP billions overnight, with the damage still being counted to this day. John Coates was an Emergency Manager with BP in Azerbaijan at the time, and saw the monumental impact 20 | Asia Outlook issue 45

John Coates, Chief Officer, Global Responders Group the disaster had on the company’s fiscal and reputational standing. Today, Coates heads up his own firm dealing exclusively in risk management, serving as Chief Officer of Global Responders Group (GRG), having founded the organisation in 2014.

“Why did I set this up?” he asks. “It was down to my experience with crisis management and QHSE contractors while I was working in oil and gas – I knew it could be done better. I knew my experience was perfectly suited to starting a consultancy that was based solely on experienced operators. This is what makes GRG different – our specialists are all required to have in-depth, hands-on experience, this is the only way to offer a client sound advice and service - that experience base which we founded the company on. “Taking short-cuts, failing to adhere to regulations (if they exist) and being blasé about safety and security standards, not only places people at risk, it can kill them. QHSE standards are written for a reason – they set the

RISK MANAGEMENT

AN INTRODUCTION TO GRG Global Responders Group is a leading provider of integrated risk management solutions, its specialists armed with decades of hands-on experience in delivering preventative and responsive QHSE. From planning and preventing risk to emergency response and postincident support, GRG is able to operate as an end-to-end solutions provider. Its services include: • Emergency response services, planning and readiness: This covers 24-seven support to assist in emergency mitigation, developing a holistic approach to emergency response planning across multiple departments and stakeholders, and reviewing/actioning on emergency response assets and resources. • Emergency management: Provisioned through manpower, management or complete response bases, this can cover areas such as fire engineering, crisis management and auditing/assessments/reviews • Design and specifications: Assisting facilities in the design of new systems or equipment and writing proper specifications based on thorough reviews. This can include fire and water systems, and incident command systems, a vital component of an effective approach to emergency. • Health and safety: Provision of health and safety consulting, manpower or services to a business or facility. • HSE technical services: GRG’s Technical Safety Division is a consultancybased service, primarily dealing with preventative measures.

baseline standard that industry and/ or governments expect operations to adhere to. In addition to that baseline standard, we are helping proactive companies to incorporate human factors from a safety point into their safety management systems. “What Deepwater Horizon showed is that you cannot afford to take safety for granted. Accidents hit reputations and brands, and reputations and brands hit the bottom line. Our job is to make our clients benefit from and appreciate this relationship.”

• Fire systems and brigade management: Estimates state that 80 percent or more of installed fire systems will fail to operate correctly on demand due to failures in design. GRG knows what to look for and where to look, and can also assist with fire brigade personnel and equipment. • Contract services: If required, GRG can provide outsourcing for emergency response teams, which are vetted for experience, education, physical conditioning and work aptitude. MISSION: “To enable you, our clients, to manage the risks within your business. Global Responders Group will help your organisation to understand the risks, effectively plan mitigations for those risks and enhance the ability of your response personnel and allied professionals to deal more effectively with incidents and emergencies.” VISION: “To be known, by our clients, for providing exemplary services in their time of need.”

RESILIENT, RESPONSIVE And this is where GRG comes in. Now firmly established in the crisis management and QHSE field, Coates admits he has had to ride on what he describes as a rocky road to this

For a comprehensive overview of GRG’s capabilities and services, visit www.globalrespondersgroup.com

Asia Outlook issue 45 | 21

GLOBAL RESPONDERS GROUP

“I RECENTLY JOINED GRG BECAUSE OF THE DIVERSITY OF THE WORK IT UNDERTAKES, THE EXPERTISE THAT IS WITHIN THE COMPANY AND THE AREAS FOR WHICH IT OPERATES, GLOBALLY” point, the oil price crash of late 2015 providing an acute challenge which forced GRG to diversify into new markets and activities. Though painful, the company has emerged stronger as a result. GRG now stands as an expert risk management partner for organisations engaged in a wide variety of commercial endeavours worldwide, from oil and gas operators and transport and logistics companies to industrial firms and office-based enterprises. Headquartered in Texas and with bases in the Americas, Europe, the Middle East and Asia Pacific, GRG’s solutions are risk-based and specific to each client’s individual needs, a onestop shop for all crisis management and QHSE consultancy. 22 | Asia Outlook issue 45

New to the GRG Team, Brad Coulter has been brought in to expand the one-stop shop further still. Now serving as Security and Southeast Asia Manager, the opportunity to join forces with Coates was too good to refuse. “I recently joined GRG because of the diversity of the work it undertakes, the expertise that is within the company and the areas for which it operates, globally,” he says. “It is one of the few organisations in the world where the diversity of my skills aligned perfectly. “We can do everything from crisis and incident management, emergency response, technical services, detailed security services and training in all of the aforementioned. No two workdays are the same; the variety of skills our experts bring to each client is

unsurpassed in the industry.” Indeed, GRG’s services are categorised into five key areas: emergency response; crisis and incident management; manpower and resources; technical HSE support; and corporate services, with Coulter’s security division being the latest addition to the portfolio and the sixth service line. A key component across all six service lines is training clients’ staff on how to implement the plans and risk mitigations, closing the loop on the end to end service. “The new service ranges from a bespoke kidnap and ransom support for a client’s employee in a remote part of the region, to providing a turnkey security department, fully equipped and manned, in another part of the region,” Coulter explains. “In the form of a single contractor, GRG’s core focus is on providing end to end holistic and fit for purpose solutions,” adds Coates. “This solutionbased approach shows our clients how to manage and reduce their risk.

RISK MANAGEMENT

Global Responders Group is a one-stop shop for all QHSE needs of organisations operating in a range of industries

Asia Outlook issue 45 | 23

GLOBAL RESPONDERS GROUP

SECURITY SERVICES – A NEW VENTURE GRG has launched a new line of services in the field of security, an operation being spearheaded by Coulter. Here he explains the remit and purpose of this new division, its importance highlighted by the coronavirus pandemic. “In many industries and locations, the focus moved away from the traditional aspects of physical security and safety, to cybersecurity and safety. Cyber experts were highly sought after and paid extremely well for their area of expertise and knowledge they brought to organisations, companies and global entities. “But this often leads to a period of neglect for the more traditional safety and security tasks. COVID-19 was the undoing of many organisations in this regard – business continuity plans, resilience planning, evacuation plans, risk management assessments and security plans and procedures were often found to be out of date, or indeed did not exist. “Yes, you need cyber experts, but planning and protecting your staff and physical assets must always be the number one priority, and that’s where GRG comes in. That is our ‘bread and butter’. It’s not something that cybersecurity people have knowledge of, nor the experience to handle, which has been so profoundly illustrated during the COVID-19 crisis.”

“Whether for a project or an established operation, our clients can benefit substantially from access to the entire width and breadth of our staff and experience. Access to a large and versatile set of resources adds not only value to the services provided, but also fosters a continuing relationship that develops into a longterm partnership between parties.” Beyond this, GRG is on-hand 24 hours a day to provide emergency response assistance as accidents and incidents unfold, providing peace of mind that help will always be on hand no matter when a problem arises. Central to this capability? Its strategically placed offices – these are staffed by a formidable roster of deeply knowledgeable personnel and contractors who have real-life experience of working in hazardous operating environments. “Within GRG resides an unparalleled 24 | Asia Outlook issue 45

depth of skill-sets that include significant experience in the management of highly specific hazard categories, which mainstream crisis management, emergency response and fire-fighting systems do not specifically address,” Coates adds. “And critically, there is no cookie cutter approach, or one size fits all template that we adopt. We understand the nuances and requirements of different markets and countries and are able to adapt and even rewrite the rulebook in some cases.” The result is that GRG’s approach to crisis and emergency response planning for a facility or business is holistic, the company able to incorporate all elements of an organisation into a QHSE strategy no matter where they are. For example, GRG has been highly successful in Papua New Guinea building longstanding partnerships with PNG operators, while in Oman the firm

is about to open a new office to be closer to the client base in the Sultanate and better service them – as opportunities and demand for services arise, GRG will respond with a bespoke, appropriate offering.

A VERSATILE FUTURE The company is also reacting to the societal needs of the communities that surround it. Coates cites a number of ongoing corporate social responsibility initiatives, including the provision of fire training for crews in impoverished countries, which are almost exclusively volunteer-based, as well as supporting schools in Thailand where he is based. This sort of activity is important for GRG, the company recognising a responsibility to give back to the community and society as it grows and develops.

RISK MANAGEMENT

Building partnerships, supporting client resilience GRG’s philosophy, indeed its whole basis of work and work ethic, is predicated on serving the customer’s needs, not only today but through a relationship whereby the customer can depend on GRG always being there for them… answering the call.

And this is very much the ambition of Coates moving forwards – to grow in a way that allows the firm to remain agile and responsive to everchanging environments, its versatility central to its viability as a business and ability to serve clients. The coronavirus pandemic has only served to highlight the importance of being adaptive, the outbreak reaching almost all corners of the earth and disrupting every facet of economic and social life. Business continuity planning will need to be updated following the COVID-19 outbreak with lessons learnt and a greater focus on business resilience, all the while prioritising staff welfare as well as customer well-being, possibly in remote delivery environs. GRG resilience includes being a largely virtual company with team members located remotely throughout the world can be adapted to any customer’s needs. “If you had inadequate business continuity plans, resilience planning, risk management assessments and security plans and procedures, then COVID-19 made your organisation suffer,” says Coulter. “Even organisations that had pandemic plans, often the plans typically are designed to protect an

Supporting schools, like this one in Thailand, is a core part of GRG’s CSR activity organisation only for seven or a maximum of 30 days – proper holistic risk management and planning, which GRG provides, must have the resilience and flexibility to adapt to the crisis no matter how long it lasts. “Coronavirus is like a war. It cannot be won or planned for, to deal with a crisis like this in a few days and move on. Being ready, planning your response and recovery are all essential in this time of crisis and these are things that GRG excels at, providing unrivalled broad-spectrum support to our clients. “GRG offers that full spectrum end-to-end service. Our experts are able to plan, train and prepare your organisation for any eventuality, whether it is a fire, a terrorist attack, natural disaster or any other event – our knowhow is there to better prepare our clients and reduce the impact.” As Coulter explains, while the challenges facing organisations may be sizeable, GRG is ready to help. The lessons learned along the rocky road that Coates described at the beginning stand it in good stead to adapt and deal with the COVID-19 fallout. GRG is more ready than ever to respond to the crisis management and QHSE needs of organisations the world over.

Here are three examples of such partnerships. Puma Energy PNG Limited: “Puma Energy Downstream used GRG’s services delivered by Gordon Diack to undertake practical, hands-on training at each of our bulk and packed fuel terminals around the country. Gordon worked with us to tailor the training to our needs and developed a series of scenarios to test and train the team. With a focus on practical training and “learning by doing”, the work teams picked up new skills and the ratings from staff following the training showed the training was well received.” - Paul Benjamin, PNG Operations Manager

Swire Emergency Response: “Having worked with GRG since its formation in 2014, I have always found them professional, conscientious and adaptable, and a pleasure to work with.” - Simon Valentine, Manager, SERS

Gulf Human Resources Development Est.: “GHRDC is fortunate having GRG as a business partner. Alone GHRDC can do much, together with GRG we have achieved so much more! GRG knows their field of expertise and as a partner have enriched my experience. A sincere thank you very much to John and GRG.” - Hussein Al Baidany, CEO

Asia Outlook issue 45 | 25

Tell us your story and we’ll tell the world. ASIA OUTLOOK is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent. With content compiled by our experienced editorial team, complemented by an in-house design and production team ensuring delivery to the highest standards, we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of Asia. We reach an audience of 220,000 people across the continent, bridging the full range of industrial sectors: agriculture, construction, energy & utilities, finance, food & drink, healthcare, manufacturing, mining & resources, oil & gas, retail, shipping & logistics, technology and travel & tourism. In joining the leading industry heavyweights already enjoying the exposure we can provide, you can benefit from FREE coverage across both digital and print platforms, a FREE marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to grow your business. To get involved, please contact Outlook Publishing’s Managing Director, Ben Weaver, who can provide further details on how to feature your company, for FREE, in one of our upcoming editions.

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ANDERSENS FLOOR COVERINGS

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Marketi ng Oppo rtunity

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CURATING THE COUNTRY TOWN CULTURE

Issue 45

A COUNTRY TOWN CULTURE

How Andersens, despite the ongoing disruption caused by COVID-19, is embarking on an ambitious plan to grow its franchise network across Australia

Writer: Tom Wadlow | Project Manager: Josh Hyland

As a business mentor of mine once told me, all businesses should redesign themselves – as if they were brand new – once in a while, to make sure they are deliberately invented to give the customer what they now want.” “If there is one thing that the COVID19 pandemic of 2020 has taught us, it is that businesses of all kinds must be adaptable in order to survive. Indeed, the definition of ‘normal’, it seems, looks certain to change. “Behavioural patterns are changing as more and more consumers seek flexibility to fulfil their retail needs, while countless office-based organisations are waking up to the fact they can operate equally effectively with their employees working remotely and flexibly.” These remarks are from Rowan Hodge, CEO at Australian retailer Andersens Floor Coverings. Specialising in quality floor coverings and window furnishings, the network was established more than

CHIP MONG RETAIL Spearheading the growth of Cambodian retail

B+H ARCHITECTS

Defining a new normal while continuing to deliver for clients 2 | Asia Outlook issue 45

five decades ago and operates 50 stores stretching from the far north of Queensland (where it all began) to Canberra. Andersens is a franchise network which employs around 200 team members and about as many flooring installation contractors. These franchisees are supported by 20 staff who work from company headquarters and warehouse in Gatton, and in the field as business coaches. Like all retailers, Andersens is having to adapt in response to the unprecedented interruption of COVID-19. But Hodge is quick to recognise that the need to evolve to meet customer needs is evergreen. “The coronavirus has brought long standing retail trends into sharper focus,” he says. “Customers have always wanted retailers to make their lives easier, more convenient, safer, more comfortable, more accessible and more seamless. “The present crisis just lays this bare. It is always urgent to be open,

A FRANCHISE NETWORK BUILT ON A COMMITMENT TO THE CUSTOMER

Asia Outlook issue 45 | 3

OYO’s Japan, South East Asia & Middle East CEO Dr Mandar Vaidya talks coronavirus and the hospitality sector

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ANDERSENS FLOOR COVERINGS

28 | Asia Outlook issue 45

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CURATING THE COUNTRY TOWN CULTURE Andersens Flooring Coverings is embarking on an ambitious plan to grow its franchise network across Australia, the brand built on its unwavering commitment to providing exceptional personalised service Writer: Tom Wadlow | Project Manager: Josh Hyland

As a business mentor of mine once told me, all businesses should redesign themselves – as if they were brand new – once in a while, to make sure they are deliberately invented to give the customer what they now want. “If there is one thing that the COVID19 pandemic of 2020 has taught us, it is that businesses of all kinds must be adaptable in order to survive. Indeed, the definition of ‘normal’, it seems, looks certain to change. “Behavioural patterns are changing as more and more consumers seek flexibility to fulfil their retail needs, while countless office-based organisations are waking up to the fact they can operate equally effectively with their employees working remotely and flexibly.” These remarks are from Rowan Hodge, CEO at Australian retailer Andersens Floor Coverings. Specialising in quality floor coverings and window furnishings, the network was established more than

five decades ago and operates 50 stores stretching from the far north of Queensland (where it all began) to Canberra. Andersens is a franchise network which employs around 200 team members and about as many flooring installation contractors. These franchisees are supported by 20 staff who work from company headquarters and warehouse in Gatton, and in the field as business coaches. Like all retailers, Andersens is having to adapt in response to the unprecedented interruption of COVID-19. But Hodge is quick to recognise that the need to evolve to meet customer needs is evergreen. “The coronavirus has brought longstanding retail trends into sharper focus,” he says. “Customers have always wanted retailers to make their lives easier, more convenient, safer, more comfortable, more accessible and more seamless. “The present crisis just lays this bare. It is always urgent to be open, Asia Outlook issue 45 | 29

ANDERSENS FLOOR COVERINGS accessible and helpful when your customer needs you, and the pandemic has refocussed our minds on making sure we are. “Customers have always wanted the best advice, competitive pricing, an extensive range, insights on colours, textures and trends. What coronavirus has forced us to do is to accelerate our adaptation of an old business, in an overly ‘same’ industry, to try to better give our customers what they’ve actually always wanted.” It is an exacerbated challenge which Hodge was hardly expecting to encounter when he joined the group

BRIEF BIO Rowan Hodge is the CEO of Andersens Floor Coverings. He has degrees in Accounting and Law from the Queensland University of Technology, and is the President of the Australian Retailers Association and board member of the Floor Coverings Institute of Australia. Hodge has previously been recognised for Australian Franchise Chain of the Year, and Innovative Franchise Chain of the Year (both 2018). He is a current nominee for the Courage in Leadership award presented by Leadership HQ Magazine.

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as CEO in 2019. A life spent in commerce since his high school days, his career has taken him from jewellery to hotels, batteries and Domino’s Pizza, right across Australasia and Europe.

BUILT ON CULTURE Hodge touches on what he believes to be central to the company’s point of difference – an embedded culture that has successfully rolled out across all franchises. “I was headhunted into the CEO role with Andersens, but this this was definitely not a position I came to reluctantly,” Hodge says. “When I looked more closely at the business, I found a history and culture second to none. “The country town values of our founder, Jack Andersen, carry all the way back to our amazing origin story, and on through our established team and franchise community. The Andersens expertise, service and brand strength today are without equal. “This is a remarkably solid foundation from which to launch our current period of rapid network expansion. The asset growth of all stakeholders is the number one priority for any CEO, and Andersens has exactly what it takes to expand store numbers into new geographies, while also focusing hard on same store growth in revenue and profitability for existing franchisees.” Despite any other strategic imperative, like differentiating on quality, product range, store design, training, experience and price, the country town focus remains the centre of gravity. Founder Jack Andersen is fond of saying, “Treat the customer as if they’re your best friend’s mum.” This deliberate culture also translates into relationships between company HQ and franchisees. Hodge highlights the importance of two annual support surveys, run by the franchise community, which allow franchise owners to provide feedback. Cultural expectations from head office are likewise clearly

Clever Choice Established in 2003 as an importer and wholesaler of solid bamboo floating flooring, Clever Choice Design Floors has since expanded. Today, it specialises in classic laminate, European engineered oak, hybrid and hydro floors, as well as acoustic underlays and finishing trims. Clever Choice is a preferred supplier to major retailers across Australia, including Andersens. It is renowned for its extensive product knowledge and ability to supply the best and most suitable flooring solution for every customer. The Clever Choice commitment to its customers, flexible supply options and a quality-first approach assure it continues to lead and innovate in product development.

www.cleverchoice.com.au

communicated from the outset, as the following statement from an Andersens franchise agreement shows: “This particular network has its origins in the bush. Core values of country town service, mateship, respect, community, working together, and going the extra mile are a part of what makes this thing special. These values matter to the Andersens franchisor and all franchisees. No party should sign this agreement and join this special group if they feel differently.” For Hodge, this sums up why he decided to join the journey as CEO. “The concept of country town service is hard to define, but you know it when you see it,” he adds. “It might be an attitude. It might be going the extra mile. It might be a thoughtful gesture. Whatever it is, it’s all about giving this lady amazing personal service.” So, how does Andersens ensure its franchisees uphold the cultural values and quality service commanded by the brand’s reputation?

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We understand that your floor is an investment and not an impulse buy. Clever Choice makes products you can trust that offer quality, style and value. Make yours a Clever Choice.

sales@cleverchoice.com.au

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Asia Outlook issue 45 | 31

ANDERSENS FLOOR COVERINGS A key part of the answer is its market-leading induction and training programme, known as the Andersens Academy. Onboarding new franchisees typically takes six weeks, the first two of which are spent in a classroom environment, before a hands-on four-week

experience in a live trading store where inductees are taken through 20 daily skills checklists by a seasoned franchise owner, who in turn earns $10,000 for their efforts. Once new franchisees are into their new store, they continue to receive daily and weekly contact from

POWERED BY PARTNERSHIPS As well as the formidable experience contained within the Andersens ranks, Hodge is quick to emphasise the critical nature of the company’s relationship with partners and suppliers. “To say our supply chain is important would be an understatement,” he says. “Since our humblest beginnings well over half a century ago, Andersens has had a proud history of dealing with a core of the best supply partners in the entire industry. “We have a large warehouse at our headquarters in Gatton. In our industry, this is a unique investment, and a tremendous asset for our franchisees and suppliers alike. The warehouse allows Andersens to buy products by different metrics to all other players, like securing whole rolls and pallet pricing for merchandise instead of paying expensive small batch freights and fees. “The result is that Andersens is a favourite for these vendors, who routinely report that they wish all other chains were as good to partner with. We believe this partnership must be built on a win-win. We strive to push the volumes of the vendors who best support our franchisees, and in turn deliver them the thing they most want – volume growth.” The company also conducts a franchisee sentiment survey on its top 20 vendors by volume every six months. The results are shared via a dashboard to the vendors to encourage positive and constructive discussions around how best they could improve their supply, in the eyes of these stakeholders.

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operations trainers and a business coach, while the academy continues to be used to deliver new material, a recent example being COVID-19 training modules for franchisees and their employees to ensure stores remain safe amid social distancing measures. “Andersens Academy is critical to the success of the organisation,” Hodge says. “With so many decades of experience in dozens of stores, the whole objective of Andersens Academy is to capture the best practices and make sure we spread them around. “Andersens has the longest average tenure of any franchise I have even encountered at a little over 15 years. This is an extraordinary asset, and the academy is aimed at making sure we wring every last drop out of this advantage for the benefit of all of our franchise members.” The company has also added a mentorship programme into its offering in which a new franchisee paired up with an experienced colleague. Here, the experienced operators earn $5,000 for performing weekly 30 minute mentoring meetings in person or by Zoom with new franchisees over the course of their first 26 weeks trading. “This creates a friendship and a voice of experience to help guide our new recruits, come what may,” adds Hodge. “Just like our franchisees who help train our new recruits, our mentors are also paid for their care of their new franchise colleagues, in recognition of the incredible value of their accumulated expertise.”

FIT FOR THE FUTURE And such collective experience is vital in navigating through what are such unusual times. Although the ‘lockdowns’ around the world are keeping the ecommerce giants busy (Amazon being the notable beneficiary), Hodge points to research that highlights the enduring

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“WE HAVE EVEN CREATED A RETAIL FIRST IN AUSTRALIA WITH OUR BRAND-NEW AUGMENTED REALITY APP THAT ALLOWS OUR CUSTOMER TO VISUALISE OUR BEAUTIFUL FLOORING RANGE OPTIONS IN REAL TIME...” role of a bricks and mortar retail experience as a central pillar of any omnichannel customer offering. In the CEO’s eyes, it is all about a balanced and consistent mix of services. “We’ve heard that rallying cry and launched upgrades to our website, our online rug store, our uniforms, our vehicles, our bathrooms, our trading hours, our advertising, our media mix, and our support team,” Hodge explains. “We have even created a retail first in Australia with our brandnew augmented reality app that allows

our customer to visualise our beautiful flooring range options in real time, in her home, at her leisure, anytime of the day or night.” “What we really strive for at Andersens, however, is to differentiate our in-store experience from that of our competitors.” A major priority for Hodge and the company is to take this one step further through a rollout of the Andersens store of the future concept. The aim is to elevate new and refurbished outlets to a cut above the competition, and feeds directly into

the organisation’s plans to expand its presence further south in Australia. “This can be by small things like offering chilled branded water bottles to customers free of charge, airconditioned showrooms for comfort, and subtle fragrances to stimulate her sense of smell. We’re also designing our new fitouts to deliver comfortable seating and design consultation zones, and clean and comfortable bathrooms for our guests.” Through new franchise stores and conversions, Hodge has set a target to grow the network by 10 percent a year until 2025, with southern and western New South Wales and Victoria among its imminent target territories. And this growth is also planned to be entirely franchise-based, with all new stores being owned and operated by members of the local communities. This has been a driving force behind the decision for Andersens to franchise four of its remaining five company stores over the past year to double down on their franchising strength. “The other growth pillar is to grow same store sales among the existing franchisees,” Hodge adds, bringing the conversation to a close. “We must never forget we work for them. To do this we will stay heavily focused on contemporary franchising best practices like benchmarking, networking, marketing and coaching. “But we will also overlay new technologies, like our brand-new online rug store and our market leading augmented reality app, to give our customers new ways to access and engage with our franchisees at their leisure.”

ANDERSENS FLOOR COVERINGS Tel: +61 (0) 7 5462 1955 rhodge@andersens.com.au www.andersens.com.au

Asia Outlook issue 45 | 33

CHIP MONG RETAIL Chip Mong presented the ultimate challenge to me. They are a conglomerate in the industrial business – lately extended to banking and hospitality – but with no presence previously in retail, especially in shopping mall management. However, they plan to roll out 11 shopping centres and more than 50 supermarkets and convenience stores by 2023. This is the test where one finds out if he is as good as he thinks he is.” The man in question is Michael

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Vong. Standing as Shopping Mall Director of Chip Mong Retail, he recently moved to Cambodia to take on a brand-new venture for Chip Mong – opening its first two malls in December 2019. Having began his career in processdriven industries, Vong gradually became more interested in working in a consumer-led business, and Chip Mong Retail provided the perfect opportunity to test his credentials and drive change in a rapidly evolving Cambodian industry.

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Customer Experience is King

“Consumer behaviour started to fascinate me when I took the job as brand manager of a FMCG product 25 years ago,” he explains. “I began to realise the importance of consumers’ wants and needs – why they would buy the products we produce.” This interest led to roles in Malaysia, Vietnam, Myanmar and now Cambodia, a career Vong describes as a fulfilling adventure. “I felt I could contribute more to emerging markets, share my experiences, train local teams and help to elevate the standards of the retail industry,” he adds.

Michael Vong, Shopping Mall Director at Chip Mong Retail, provides his insights into the volatile, exciting and fast-growing Cambodian retail sector Writer: Dani Redd | Project Manager: Josh Hyland

Asia Outlook issue 45 | 35

CHIP MONG RETAIL A NEW PLAYER IN A GROWING INDUSTRY So, what is the story of the company he now presides over? Chip Mong Retail is one of the 14 businesses of Chip Mong, a fast-growing corporation with a diverse portfolio encompassing industry, property development, beverages, retail, feed, hospitality and banking. Chip Mong has allocated a $300 million dollar seed fund to Chip Mong Retail that will enable it to open up to six shopping malls over the next three years. The vision? To become the shopping destination of choice in Cambodia, with the largest number of locations and the biggest market share. Vong describes the Cambodian retail industry as a fragmented market, with multiple companies serving a relatively small population. However, by the end of 2021, the supply of retail space will have doubled, stimulating increased demand. The Shopping Mall Director is cautiously optimistic, but

outlines significant challenges within the sector. “New malls will need to differentiate themselves from each other, and stay relevant to continue attracting foot traffic,” he explains. “There will need to be new market entries of both regional and international brands to continue attracting growing consumer interests. Finally, it is likely that growth will be driven by the food and beverage sector, entertainment and wellness segments at the expense of fashion.”

STANDING OUT FROM THE CROWD In this challenging but expanding market, how does Chip Mong Retail Group plan on distinguishing itself? For a start, through its understanding of the importance of consumer behaviour. For many customers, visiting a mall is far more than an opportunity to shop – it’s a mix of leisure and entertainment. Chip Mong malls are equipped with extensive food

Clik Clik is a fintech startup set to transform payments in Southeast Asia by facilitating all payments in one platform. By enabling smartphones to accept card payments and tap-to-pay, digital payments become simpler and more seamless than cash. Another advantage Clik’s solution has over cash is safety. Bankinggrade security, world-leading ID authentication solutions and compliance with the highest global security standards ensure Clik users are secured against fraud and theft. Clik’s value truly shines when it comes to merchants. Uniquely positioned to not only collect, enrich and protect transaction data, Clik also distills it too - providing anonymised consumer insights that detail customer segmentation and spending habits. By better understanding customers, merchants can make effective data-driven decisions to improve products and services, launch precise marketing campaigns and cut expenditure on ineffective advertising, ensuring better customer engagement. Clik also provides tools to act on this insight, such as their loyalty plans, which cater to 100 percent of a merchant’s customers and effectively drive repeat purchasing through cashback incentives, rather than profit-draining discounts. Surveys conducted by Clik with over 1,000 respondents found that $1 in cashback is a sufficient incentive for 67 percent of consumers to return and spend $10 at the store, an encouraging statistic for the 2,500-plus merchants currently signed on to Clik’s beta testing phase. Five minutes is all it takes to onboard new users and give them access to Clik and all of its capabilities.

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RETAIL

HOW IMPORTANT ARE PARTNER AND SUPPLIER RELATIONSHIPS TO THE SUCCESS OF YOUR BUSINESS? Michael Vong: “Our mall tenants have high expectations and expect mall facilities that work efficiently – HVAC systems, people transportation systems, car park management and a forwardlooking, service-oriented mall operations team. We also need to establish effective customer-centric marketing programmes that build awareness and increase foot traffic. All this must be achieved at a cost that will not burden our tenants.

“To achieve all this, we work with partners who are specialists in their own fields: contractors who provide security services, housekeeping, pest control, parking, constructors who design and build our malls, and our MEP engineers. With our network of six malls (a total of more than 270,000 square metres of retail space), supply chain risk management is absolutely crucial to us in managing cost volatility, supply disruptions, and non-compliance to agreed SOPs. “Working with key tenants beyond a lessor–lessee relationship is a strategy we are currently pursuing by forming partnerships, sharing risks and profits, as this facilitates easier entry of desired brands into our malls.”

and beverage outlets, cinemas and even children’s play areas, all of which substantially extends and enriches the experience. “We believe that shopping malls are not just about buildings but about the people who visit them every day,” Vong explains. “Our goal is to deliver exceptional shopping experiences for our customers through an effective category and tenant plan, and to develop customer-engaging marketing programmes that result in a higher frequency of visits.” To drive this, Chip Mong Retail operates an advanced, ever-evolving digital marketing plan. It relies upon shopper analytics – gathering information about customers through targetted marketing and tracking customer metrics to draw traffic to malls. It also uses machine learning and AI to help interpret and predict customer behaviour. When it comes to property, location Asia Outlook issue 45 | 37

CHIP MONG RETAIL

Noro Mall

is everything, and Chip Mong malls occupy ideal spots in Phnom Penh. “A collaboration between Chip Mong Retail and Chip Mong Land gives us access to prime locations for our malls within the premier class residential projects of Chip Mong Land,” Vong explains. “The neighbourhood surrounding each of our malls represents a prized catchment area of high yield consumers that adds value to the malls, thus benefitting our tenants.” Furthermore, Chip Mong Retail is able to collaborate with other businesses within the group – Chip Mong Insee Cement and Chip Mong Trading – to procure raw materials, such as steel and cement that can be provided to mall constructors. What’s more, Chip Mong Bank provides financial support to suppliers, builders, contractors and tenants. All these measures help lower the cost of entry for partners and vendors. Vong also believes that building relationships with stakeholders and 38 | Asia Outlook issue 45

customers is integral to the success of Chip Mong Retail. “This involves always striving to satisfy our customers, fostering sound relationships with our business partners, and to provide rewarding careers for our employees, while adhering to good corporate governance and social responsibility,” he explains. Ensuring the satisfaction of the malls’ tenants is also integral to the success of the business. “Successful shopping mall management performance is about creating a conducive environment for tenants to help them grow their businesses,” he continues. “This involves managing their expectations and collaborating with them to attract repeat customers to the mall. That is very much the most important part of our job, for without the right tenants and their customers the mall is just a shell of a building.”

OVERCOMING CHALLENGES However, even the best laid plans can be derailed by unforeseen circumstances, and the recent COVID-19 outbreak has proved challenging for Chip Mong Retail. “It’s a grim picture,” the Shopping Mall Director says. “Crowds are thinning out, which malls fundamentally thrive on. We have had to close cinemas, restaurants and bars, children’s playgrounds, fitness centres and themed events meant to drive foot traffic to the malls were curtailed, all these in an effort to stem the spread of the coronavirus.”

RETAIL

Chip Mong Retail board of Directors

Asia Outlook issue 45 | 39

CHIP MONG RETAIL

“Needless to say, foot traffic declined drastically, resulting in a ripple effect on the tenants in the malls who now find their businesses no longer sustainable. They can’t pay their rents, and landlords like us have had to offer substantial relief of up to 50 percent discount on rent for the next three months.” In Cambodia, schools, casinos and close-contact businesses such as hair salons have resorted to temporary closures. This has led to people losing their jobs, and declining consumer spend. Chip Mong Retail has had to downsize its outsourcing teams, slash operating costs, shorten business hours and aggressively promote home delivery services across social media, but its malls remain open. “Our malls still operate as we want to retain our well-trained staff,” the Shopping Mall Director explains. “Keeping them healthy is our 40 | Asia Outlook issue 45

priority, especially those on the front lines. We invest in PPE for them, constantly educating them and ensuring they follow strict hygiene protocols.”

AN EXCITING FUTURE Despite these difficult circumstances, Vong is determined to stay positive. “There is an upside though,” he says. “It has helped accelerate our digital transformation programme. We now connect regularly through video conference meetings, webinars and e-training, and we have more time to conduct staff training.” Chip Mong Retail has ambitious plans to digitise its services. As well as developing more advanced marketing tools, it also plans to roll out a Shopper Rewards Scheme and e-payment system that serves its expanding network of shopping malls. “As Chip Mong Retail continues to grow, we want to ensure that our tenants and customers have an

experience that is unique, by delivering quality products, competitive prices and outstanding services,” says Vong. “To help us achieve these goals, Chip Mong and Cambodia-based fintech company Clik have created a partnership to boost tenant profits while providing customers with exceptional rewards through an improved understanding of our customers. “New insights into spending patterns, demographics and instore behaviour are now possible, granting our retailers the ability to engineer effective marketing strategies, monitor in real-time campaign performance and made data-driven decisions to improve. “This cashback-centred approach, which rewards loyal customers for their purchases, will be more effective at generating repeat purchasing for our tenants, and increased footfall than with boring expensive discounts. Backed by empirical evidence, this is

RETAIL

An aerial render of the 271 Mega Mall, Phnom Penh, Cambodia highly beneficial to both our tenants and customers, as exclusive cashback rewards can now be redeemed between stores in the Chip Mong Retail group, driving repeat purchasing and hence sustainable revenue growth.” And over the next few years it will continue to grow, with ambitious targets to open one mall by end 2020 and another four in the next three years.

So, despite facing sizable and complex challenges, Vong concludes our interview on a positive note. “We will continue to invest in human capital by attracting, training and retaining key team members. As well as growing a strong and effective mall management team, we will continue to use technology to optimise our operational efficiency,” he says. “There are also abundant opportunities in a softer market for us to dig into

and grow via mergers and acquisitions. Any which way one looks at it, the future will be volatile, but exciting.”

CHIP MONG RETAIL Tel: +85523 218 060 Fax: +85523 210 155 www.chipmong.com

Asia Outlook issue 45 | 41

DHAYA MAJU INFRASTRUCTURE (ASIA) SDN BHD

hile 2020 will be remembered as the year that saw the coronavirus pandemic cause health and economic crises around the world, it has highlighted the remarkable degree of resilience that exists within societies. In Malaysia, the government’s movement control order, issued in March to safeguard public health, brought large sectors of its economy to a halt. Non-essential workers are staying at home, many have lost jobs and entire industries such as construction have had to pause projects. For companies such as Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA), the pandemic has caused mass disruption and presented many logistical challenges, but it has remained resolute throughout and is determined to continue contributing to the socioeconomic development of Malaysia. A leading national public transportation, infrastructure and property company established in 1996, DMIA is committed to delivering world-class projects with integrity, professionalism, and high quality, built on principles of continual improvement, high productivity, and sustainable ambition. Today it’s focus remains the same – to deliver quality and reliable developments for railways, highways, public infrastructure and property. Indeed, DMIA hopes that under the 12th Malaysian Plan covering 2020 to 2025, the country spending for public transport, logistics, urbanisation and communications will become the catalyst for Malaysian growth post COVID-19. This is because rail transportation carries a huge impact on socioeconomic development in Malaysia. It has served as a catalyst that moves people and goods since 1885, becoming a corridor for a new growth and development connecting cities and rural areas. 42 | Asia Outlook issue 45

KEEPING MALAYSIA ON TRACK

Despite the health and economic challenges presented by the COVID-19 crisis, DMIA continues to spearhead vital rail infrastructure projects across the country to ensure socioeconomic development is sustained Project Manager: Ryan Gray

CONSTRUCTION

Asia Outlook issue 45 | 43

DHAYA MAJU INFRASTRUCTURE (ASIA) SDN BHD

Sime Darby Industrial SEM machine was first manufactured in 1958 and was been fully acquired by Caterpillar in 2008 as Caterpillar Qingzhou Ltd. SEM is one of the 20 brands under Caterpillar which serves the utility segment and offers machines such as wheel loaders, dozers, motor graders and soil compactors. The “SEM, A Caterpillar Brand” has been introduced to the Malaysian market to provide users with a highly affordable and reliable machines with excellent after sales service. Sime Darby Industrial is one of the world’s largest Cat and SEM dealer with a footprint of 152 branches in 16 countries across the Asia Pacific.

The rail industry is expecting to see more than 200 billion Malaysian ringgit ($47 billion) invested up to 2030, with several critical projects ongoing, and DMIA has responded to ensure the safety of its employees during these unprecedented times. Management are working from home, while essential site staff are ensuring that projects currently under development remain safe.

INVESTING IN PEOPLE As well as making important progress on projects since we last spoke with the company in April 2019, it has also invested heavily in its people over the past year or so. Workers are ensured safe and comfortable living at the new DMIA 44 | Asia Outlook issue 45

Centralised Workers Quarters in Kuala Lumpur, where they are provided with COVID-19 swab tests and also transportation to and from construction sites, with both transport and work areas sanitised. Indeed, safety has been the number one priority throughout the coronavirus period. Not only did the company’s report for Q2 2020 show 1.6 million man hours worked without loss-time injury, it was also the first rail development firm to be given the green light to work during the health crisis, underlining the trusted reputation it carries in Malaysia. In terms of finding and developing talent, DMIA has a number of exciting programmes underway. It is currently building a new centre of excellence in Selangor, a project worth RM200 million ($47.7 million) which will house state-of-the-art machinery. It will not only become a regional centre of excellence, but also a key hub from which the company can deliver new rail projects and engage in the future of rail expansion in Southeast Asia. In the province of Sabah and Sarawak (eastern Malaysia), DMIA is

• Wheel Loader: SEM Wheel Loader series handle high load capacities to light working conditions with improved dump height and enlarged bucket. • Dozer: The hydrostatic system and world-class undercarriage delivers maximum output traction force, high durability and resistance to wear. • Motor Grader: Machine comes with a seven-position link bar with electric over hydraulic controls and optimum blade design which enables ease of operation and versatility. • Soil Compactor: SEM Soil Compactor has a durable design that extends system life up to 50 percent. Over the years, Sime Darby Industrial was largely instrumental in supplying heavy equipment to various national projects in Malaysia such as the Pan Borneo Highway, Klang Valley Double Track (KVDT2), the Gemas Johor Bahru Rail Double Tracking & Electrification Project and the West Coast Expressway. The collaboration between Dhaya Maju Infrastructure (Asia) Sdn Bhd. (DMIA) and Sime Darby Industrial started in 2015 with both Cat and SEM machineries deployed in infrastructure, railway, earthwork and quarry projects.

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DHAYA MAJU INFRASTRUCTURE (ASIA) SDN BHD

“STEPS ARE ALSO BEING TAKEN TO STRENGTHEN DMIA’S CAPABILITIES ACROSS THE AREAS OF RAIL CONSTRUCTION, REHABILITATION AND MAINTENANCE, WITH NEW MACHINERY AND HUMAN SKILLS BEING AT THE CENTRE OF THESE ENHANCEMENTS” working with local authorities to find aspiring talents to join the organisation. The scheme will see the state providing the training required, with DMIA offering a fulfilling career for these qualified and skilled individuals. At a national level, the firm is working with government to support its Agenda Bumiputera programme, which will teach young professional talents skills relating to project management, managing heavy 46 | Asia Outlook issue 45

machinery, coordinating materials and other work involved with delivering railway projects.

BIGGER AND BETTER Steps are also being taken to strengthen DMIA’s capabilities across the areas of rail construction, rehabilitation and maintenance, with new machinery and human skills being at the centre of these enhancements. It has invested RM200 million ($47.7 million) in maintaining its man-machine dynamic, with further investment and collaboration with key vendors needed if the firm is to take on larger challenges in the future. Here, China and its Belt and Road Initiative represent a tremendous opportunity for the likes of DMIA to participate in ground-breaking activity across the wider SEA region. As activity picks up in a postCOVID-19, ‘new normal’ world, DMIA Group looks extremely well placed to contribute both to Malaysia’s ongoing infrastructure development, and expand into new markets as and when the opportunities arise.

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Asia Outlook issue 45 | 47

TONY IP GREEN ARCHITECTS

Tony Ip is now director of his own firm â€“ Tony Ip Green Architects, or TiP as it is commonly known

CONSTRUCTION

Architecture for Green Living Tony Ip Green Architects has been instrumental in driving forward sustainable building and renovation work in Hong Kong, bringing a number of landmark techniques and installations to the fore Writer: Tom Wadlow | Project Manager: Ryan Gray

n 2012 Hong Kong celebrated the opening of its first zero carbon building. ZCP, short for Zero Carbon Park, is nestled in the Kowloon Bay area and is designed to produce a surplus of energy, its completion sparking a wave of green building projects which the government is eager to continue rolling out. Working on this breakthrough project was Tony Ip, now Director of his own firm – Tony Ip Green Architects, or TiP as it is commonly known. His multidisciplinary expertise proved invaluable on the ZCP development, although by his own admission, such broad knowledge was almost inadvertently acquired during his education years. Indeed, Tony’s story is a prime validation of the well-cited term ‘if you don’t succeed at first, try, try again’.

“I’ve always loved design and architecture but wasn’t accepted into the school of architecture I applied for, so my first degree was in environmental engineering as environmental conservation was not a hot topic two decades ago,” he recalls. “After graduation, I worked as a trainee engineer in an engineering firm. Several years later, and I still retained this passion for architecture, so I tried to enrol on another course and this time, thankfully, was accepted.” Tony never looked back. Having completed the two-year master’s programme, he was nominated and won the Hong Kong Institute of Architects Outstanding Student Medal Award. In 2010, he scooped the Hong Kong Institute of Architects Young Architect Award, and six years later was selected as one of Hong Kong’s Ten Outstanding Young Persons. Asia Outlook issue 45 | 49

TONY IP GREEN ARCHITECTS

LEADERSHIP FOCUS

TONY IP Q: Tell us about your work for the Hong Kong Architecture Centre and Hong Kong Green Building Council. A: “I am the Chairman of the Hong Kong Architecture Centre (HKAC). HKAC is committed to bridging architecture and the community – it is an NGO and a charitable institution and our members are the general public. We believe that an enhanced awareness of the built environment helps cultivate a deeper understanding of architecture and a keener appreciation of the environment and culture, and together, we can build and better our city, our community and our future. “I also serve the Hong Kong Green Building Council as its Director. I am mainly involved in the Industry Standards & Practices Committee (ISPC) and Sustainable Development Committee (SDC). I act as the Convenor of the Green Product Task Force to guide the overall direction and advocate green product certification and ecoproduct directory. Meanwhile, I also serve the BEAM Society Ltd. and act as the Vice Chairman of the Material Aspects Expert Panel in the Technical Review Committee. I am the convenor of new green building assessment tool “BEAM Plus for Existing Schools”, which we are targeting for completion by Q3 in 2021.”

50 | Asia Outlook issue 45

In 2017, Tony decided to form his own venture in the form of TiP. “In HK, buildings consume 90 percent of electricity and are attributed to two thirds of greenhouse gas emissions,” the Director says. “To really drive change, we need to have a visionary approach and for every project we must set a benchmark for environmental considerations. This must be combined with embedding social sustainability as part of that vision. “In Hong Kong we shouldn’t just focus on new buildings. For me, the key issue is also to regenerate and revitalise existing buildings to become more sustainable. Right now, half the building stock is over 30 years old and those buildings need to be demolished or upgraded, and that is a challenging issue.”

FOR PEOPLE AND PLANET TiP’s portfolio reflects these thoughts. A mixture of new builds and renovation projects spread across Hong Kong, the company has proven itself as a pioneering force for sustainable development. And this, for Tony, is the hallmark of his practice. “We are community-centric architects and designers who specialise in sustainable design and advocate the paradigm shift to green architecture and biophilic urban-scape at the tipping point of climate change. “Our interdisciplinary and integrated expertise and experience drive us to achieve de-carbonising, regenerative, climate resilient and cost-effective design ideas and project execution, especially in high-density high-rise urban contexts.” The firm’s scope of services includes urban design, master planning, architectural design and execution, interior design and build and green material innovation, together with sustainable design and green professionals’ input throughout the whole project process. The Director points to many case studies to showcase this breadth of expertise, including the Health Ageing

GreenWalls Bioengineering (HK) Limited Realising the growing demands of a pleasant green environment by the HK Government and public, GreenWalls Bioengineering (HK) Limited came into service in early 2000. We are specialized in providing revolutionary green construction services including bioengineering greening and building integrated nanotechnologies to the construction industry. We offer services, construction solutions and products for improving the living environment and promoting energy savings. Our advanced technologies can be applied to the designs of new developments, as well as upgrading existing buildings to be more environmentally-friendly.

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www.greenwalls.com.hk Community Centre in Kwai Tsing which is scheduled for completion in September 2020. Spanning 800 square metres, it is divided into four specialist zones covering different areas of wellness, TiP providing architectural planning and design services for the project, led by the HKSKH Lady MacLehose Centre. Also under construction is the Chinese University of Hong Kong at Hong Kong Science Park, slated for handover towards the end of 2020. Here, TiP is the lead architectural and interior designer, as well as consultant for fitting-out works to six new InnoHK centres – laboratory spaces spread over numerous buildings that will spearhead cutting-edge research using advanced technology. In Kowloon Bay, the firm recently completed renovation on the ZCP for the Construction Industry Council, a site all too familiar to Tony. As well as using reclaimed materials, improving shading elements

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Optimisation of Landscaping Works for CIC - Zero Carbon Park for the Construction Industry Council

CONCEPT & DESIGN GreenWalls Bioengineering (HK) Limited ZCB TRAY PLANTER SYSTEM

Tony was recognised as one of Hong Kongâ€™s Ten Outstanding Young Persons in 2016

Asia Outlook issue 45 | 51

TONY IP GREEN ARCHITECTS

PROJECT SNAPSHOT

BEC JOCKEY CLUB ENVIRONMENTAL BUILDING RENOVATION The TiP team completed design and project management for the renovation works at the exhibition hall and auditorium at Jockey Club Environmental Building, not only within the overall budget and designated timeframe but also with the overarching goal of achieving environmental sustainability. To achieve cost effectiveness and resource saving, daylight accessibility, low-speed high volume ceiling fans, acoustic panels, rapidly renewable materials, carpets with recycledcontents, LED displays and lighting, and features with reused materials were adopted.

and helping to rebrand the site to the CIC-ZCP with new logos and signage designs, TiP also introduced a Hong Kong first in the form of an air improvement photovoltaic glass canopy. â€œBy adopting nano-technology, 52 | Asia Outlook issue 45

the canopy generates renewable energy with diffuse daylight, decomposes PM2.5 pollutants and facilitates self-cleansing simultaneously,â€? Tony explains. TiP also provided architectural

design services for a stormwater air conditioning system at ZCP, again the first of its kind in Hong Kong, a system which uses stormwater as an alternative cooling and heating medium to serve the existing multi-purpose hall.

CONSTRUCTION Tony is quick to point out the important role various partners and suppliers play in projects such as those already cited. For example, GreenWalls Bioengineering (HK) Ltd recently supplied TiP’s Green Pavilion Heat Sink development, located at the UABB2019 & Construction Innovation Expo 2019 and completed in December 2019. The idea here was to present how advanced bioengineering, nano-technology and renewable technology mitigate greenhouse gas emissions, alleviate urban heat islands, and improve outdoor environmental quality. “All of these projects show how partners and suppliers are important to TiP,” Tony adds. “Without their collaboration and input, we could not accomplish what we have across Hong Kong to this point.”

The CIC-ZCP project makes use of reclaimed timber

LOOKING AHEAD And such collaborations will continue to ensure many more successful projects are delivered in the future. Asked about TiP’s pipeline, Tony reveals an exciting partnership with B+G Design to act as the architect on the Urban Forestry Education Centre for the Conservancy Association, a challenging development which involves containing the entire site underneath a flyover. This is one of several environmentally-driven and community-centric building projects that are set to get underway by the end of 2020, a year which will be remembered for the outbreak and spread of the coronavirus pandemic. For TiP, the health crisis has sharpened minds on how important it is to pay attention to hygiene and wellbeing in its designs, from basic solutions such as sanitisation stations and separation of wet and dry areas to more advanced measures like quick access to medical equipment and installation of isolation rooms. And for Tony, this all feeds into

what a building’s purpose should be. Concluding the conversation, he lays out his vision regarding the role of green architecture. “The green and sustainable building sector focuses on not only individual buildings, but neighbourhood, community development and infrastructure,” he says. “We envisage that our role is not just that of an architect, but a facilitator for community engagement, a collaborator for inter-disciplinary innovation and an advocator for human-nature

interactions in the green building and neighbourhood design process. “There is no green architecture, only architecture for green living. This is what I believe as a green architect.”

TONY IP GREEN ARCHITECTS Tel: +852 3596 7800 green@tonyip.green www.tonyip.green

Asia Outlook issue 45 | 53

B+H ARCHITECTS

54 | Asia Outlook issue 45

CONSTRUCTION

Designed to

INSPIRE

As the world responds to the challenges presented by the coronavirus outbreak, B+H Architects has embraced new ways of working, all the while continuing to build on its global reputation for developing inspiring spaces for clients Writer: Tom Wadlow | Project Manager: Ryan Gray

he global health crisis caused by the outbreak of coronavirus has impacted almost every economy and industry around the world. From a virtual standstill in international travel to sweeping reconsiderations of what defines a safe working environment, the human ability to adapt and innovate through challenges is being tested to the extreme. In the words of Bill Nankivell, “the workplace has been turned upside down”. Speaking as CEO of global architecture, design and strategic consulting firm, B+H Architects, he has witnessed first-hand the disruption caused and creativity deployed as a result of the COVID-19 outbreak. “Our first concern was for the wellbeing and safety of all our staff across the globe,” he adds. “The novel coronavirus impacted our Shanghai team in late January, and we had the benefit of their experience when the wave reached our other global studios.” “We have taken every precaution, implementing protocols, best practices and measures to ensure peace of mind for our staff and make sure they have everything they need to continue to deliver uninterrupted service to our clients.”

Bill Nankivell (left) and Karen Cvornyek (right)

B+H’s Shanghai team is now back in its studio, the company continuing to monitor closely the impact of new safety measures while evaluating the effect that working from home has had on employees in different parts of the world. Indeed, not only is this data harvesting exercise providing valuable insight for internal decision makers, it is also helping B+H to advise its clients on their return to shared working spaces. B+H President and Regional Managing Principal, Asia, Karen Cvornyek, adds that companies too are having to evolve to move with the new times. “Taking B+H as an example, remote work and hot desking have been fully Asia Outlook issue 45 | 55

B+H ARCHITECTS implemented in our Asia offices from the beginning of the crisis,” she says. “Businesses are quickly evolving; new effective ways of communicating and software that has existed for quite some time is now being deployed swiftly and adopted eagerly by managers, employees and clients alike. “Prior to the COVID-19 pandemic the governing trend within workplace design was to make work feel like home. This trend reversed during the crisis when we had to adapt our homes to function as our workplace.” B+H is well-equipped to manage this transition. From a secure VPN which grants workers full remote access to servers to the hosting of meetings via Teams, Cvornyek believes the move to virtual has actually increased collaboration, dispelling fears that a reduction in face-to-face interaction would have a detrimental effect. The COVID-19 crisis has also fuelled changes within the architecture discipline itself, what Cvornyek refers to as an acceleration of the blurring of lines between once well-defined spaces and environments. “The key to future design may lie in finding the balance between the pre-industrial ‘one-size-fits-all’ model and the hyper-specialised design of the late 20th century,” she continues. “As designers our work is to anticipate a wide array of environments to accommodate a wide variety of functions, users and needs, recognising that our emotional and social needs vary over the course of our work day as well as the nature of the task we need to focus on.”

BOLD+HUMAN Such a fundamental shift in disciplinary and workplace culture has occurred at breakneck speed when considering the company’s heritage dates to a studio in Toronto, Canada, in 1953. Built on a legacy to create inspiring spaces for people, the initials B and H refer to founders Bregman and 56 | Asia Outlook issue 45

Hamann, although B+H has evolved to symbolise the essence of the firm’s values – Bold and Human. Nankivell explains: “At our core, we’ve always strived to be Bold and Human – bold in our ambitions and in the questions we are unafraid to ask our clients, and human in our approach to design (no matter the scale) and to people and talents. “The letters B+H are now invested

with a broader meaning that honours our history and guides the future impact we want our firm to have. “Being a multi-sector, multi-disciplinary, cross-cultural firm we offer clients significant advantages in a rapidly evolving and competitive global business environment. “As building typologies blur and merge we apply insights gathered from multiple sectors to create spaces

PROJECT SNAPSHOT

Lucina Women and Children’s Hospital, Xiamen, China Spanning 23 storeys, this new hospital building blends together healthcare, hospitality and entertainment components, the vision for the design being to celebrate the birth of new life, the beauty of the mother, and the excitement and joy of the entire family. Karen Cvornyek: “A holistic approach was taken, with an artistic touch added to create a soothing and cosy atmosphere. The Lucina Women and Children’s Hospital serves as a community for women and children where healing, learning, recovering and socialising can happen at the same time in one space.”

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and communities that respond and adapt to people’s changing needs in a holistic way in every locality. Innovations realised in one geographic area can inspire and inform the forward movement of another.” This is reflected in B+H’s presence across the globe today. It has been in China since 1992 and participated in the nation’s unprecedented rise through the ensuing decades, working on many collaborations which reflect its growth into a modernised, urbanised economic powerhouse. It began in Shanghai with a competition to design the Xiamen Gaoqi International Airport, the studio serving as a springboard to expand throughout the region. Today the B+H team comprises more than 450 talented individuals collaborating across nine studios in Toronto, Vancouver, Calgary, Seattle, Dubai, Shanghai, Hong Kong, Singapore and Ho Chi Minh City, the

Asia team seeing more than 25 million Mix Match Merge 78x97mm.indd 1 square metres of its designs constructed across Asia Pacific.

LEADING THE WAY Such a portfolio includes many landmark developments in several countries. From five BCA GreenMark Platinum-accredited public hospitals in Singapore and award-winning workplace designs such as Nestlé’s Ho Chi Minh headquarters, to hospitality landmarks in China and stunning apartment developments in Hong Kong, the Asia showcase reel is a long one. In Shenzhen, a former Chinese manufacturing hub which has transformed into a hi-tech innovation centre, B+H is working on the once-in-a-lifetime Shenzhen Children’s Hospital and Science & Education Building. “B+H’s integrated design approach allowed us to easily weave a cohesive response from the site

master-planning through to the 24/03/2020 10:51:55 architecture and interiors, with special emphasis on the integration of landscape design,” says Cvornyek. “Our vision is to ensure that the building’s occupants not only fully engage with the surrounding natural landscape, but that we create a unique micro-landscape within and around the building from ground to roofscape. Taking inspiration from the mountains in the distance, the new building adopts a gently terracing approach with the upper floors stepping back to create multiple sky gardens.” From hospitals to hospitality, in Singapore B+H masterminded the design of the city state’s first rooftop spritz bar. Named VUE, it is set against the backdrop of Marina Bay and is accessible by a private elevator, exuding modern elegance with subtle touches of intricate details, including Italianinspired furnishings. Asia Outlook issue 45 | 57

B+H ARCHITECTS

PROJECT SNAPSHOT

Greenland Primus Resort & Apartments, Sanya, China Nestled on the Yuelan Bay coast, Greenland Primus Resort & Apartments was designed to integrate traditional cultural elements and classic Asian motifs in unconventional ways. For example, materials, textures and patterns are inspired by the jewellery, accessories, and pottery from the local Li and Miao ethnic minority group. Karen Cvornyek: “The interior design concept evolves from the alluring and magnificent Hainan Pearls which has a long history in China and continues to thrive in the region today. Our design aims to provide guests with a wow factor when they step into the room for the first time, just like the special moment when human beings first discovered the pearl that lies within the oyster.”

58 | Asia Outlook issue 45

“The overall composition of exquisite materials and natural finishes delivers the impression of atmospheric luxury, yet with a visible uniqueness and appreciation of the finer details,” adds Cvornyek. “The elegant interiors and echoless acoustics invite VUE guests to savour fusion delicacies as they enjoy the stunning vistas of Marina Bay and the Singapore skyline over intimate conversations.” Another important milestone has come in the way B+H approaches its increasingly complex, multidisciplinary work. In 2018 it joined the Surbana Jurong

CONSTRUCTION Group, one of the largest Asia-based urban, industrial and infrastructure consulting firms, a strategic partnership which Cvornyek states will provide unprecedented access to a deeper and broader platform from which to propel B+H’s international growth. “The Asia Pacific region demonstrates global leadership in sustainability with the East leading the West in embracing new tools, processes, and practices for sustainable urban development,” she explains. “Moving forward, we believe that to offer our clients the freshest, most innovative insight and solutions we

have to find ways to disrupt ourselves. We continue to seek ways to challenge our assumptions to inspire and inform the ways in which we approach designing for the future.”

BEYOND ARCHITECTURE A prime example of self-disruption has been the establishment of B+H Advance Strategy. A strategic advisory service formed to help clients align their long-term business goals with their real estate assets, it has transformed B+H into a truly integrated design and consulting services provider. Nankivell adds: “Through asset

PROJECT SNAPSHOT

Invictus International School, Phnom Penh, Cambodia This project involved the renovation of an old university building into a primary and secondary facility for 1,600 students. The primary and secondary grades are separated into two buildings and linked together by sky walkways on upper floors, with the landscape design aiming to provide a dynamic and healthy outdoor environment that enhances an understanding of nature. Karen Cvornyek: “In addition to natural material palette, the incorporation of pop colors and plants in the design of indoor and outdoor spaces creates an energetic and vibrant learning environment as well as stimulates imagination for kids.”

optimisation, development solutions, workplace strategy and experience design consulting, we engage clients upstream of the design work to ensure that we are delivering what they should build – not simply what they can build. “Our process empowers clients to envision new possibilities, maximise ROI on real estate investments and delivers competitive advantage that anticipates the evolution of their organisation.” It is a highly data-driven and intensively collaborative operation between stakeholders, with high profile clients hailing from a range of sectors such as healthcare, ecommerce, food and drink and hospitality in the likes of Singapore, Australia, China and Vietnam. Informing this work is the B+H Advance Strategy Academy, a cutting-edge research body delivering workshops to clients and employees alike, exploring the emerging opportunities for future design. It is a resource the company is eagerly expanding, with a mine of resources now available online, including the latest project experience and insights published by strategy and design leaders across the B+H network.

Asia Outlook issue 45 | 59

B+H ARCHITECTS REMAINING RELEVANT Constant innovation and adaptation will be key to emerging strongly from the unprecedented challenges brought about by COVID-19, challenges which will not disappear in the short term. Nankivell moves onto the final part of our conversation by returning to the topic of transformation in the wake of the coronavirus pandemic, only this time speaking through a long-term

lens. Although the lessons being learned are harsh ones, he points to the positives, not least how it has enabled imaginations to be freed as ingenuity is required to adapt and survive in a tough business environment. “If there is a silver lining to this devastating pandemic it is that we are learning and adapting quickly and will be bringing a new mindset to design in the future,” Nankivell says. “There is opportunity in this big reset. We

PROJECT SNAPSHOT

Nestlé Vietnam Head Office Renovation, Ho Chi Minh City, Vietnam A completely revamped 4,500 square metre space, this is now a diverse office environment inspired by the literal meaning of Nestlé – a small bird’s nest. Covering three floors, it is home to amenities such as work lounges, canteens, new mothers’ rooms, collaboration hubs, focus rooms and phone booths. Karen Cvornyek: “The design was a response to the ever-evolving needs and expectations of the modern workplace. Providing spaces that support the many work modalities of the Nestlé Vietnam and their employees was at the forefront of the project goals. The overall architectural palette incorporates the use of natural and highly textured finishes evocative of the materials harvested for a bird’s nest. With the use of natural materials such as wood, the introduction of indoor plantings, strategic pops of colour, and uninterrupted views to the city beyond, the space feels joyful and optimistic.”

60 | Asia Outlook issue 45

are adapting and new behaviours are emerging. We will have new data to point to, and our own personal experiences to draw from.” Indeed, B+H is already designing new office spaces for its Shanghai and Toronto teams, slated for opening this year. “What lessons will we take away from this experience to apply to our new workspaces? What are the physical space implications for new

CONSTRUCTION organisational models that recognise the resilience of a mobile workforce? How can our own experience help inform our clients’ projects? These are some of the questions we are asking ourselves right now,” Nankivell continues. “Gone too are the days of the single-purpose tower. For the past decade we have increasingly seen the trend towards more mixed-use programming in urban design. “Our biggest opportunity lies in anticipating changing demands and uses so that buildings can adapt easily and elegantly over time. Before designing anything, we need to ask how things can be pulled apart, reused after their initial intended use and how they can become part of a circular economy.” And it is this acceleration forward that the CEO is determined to drive, a dead-end status quo arguably presenting the biggest threat to the longevity of the industry more widely. For Cvornyek, the opportunity ahead is as much societal as it is environmental and economic, the events of 2020 highlighting how the architectural sphere can only heighten its role in shaping a fundamentally better world.

PROJECT SNAPSHOT

Violet Valley Residential Development, Phu Quoc Island, Vietnam This new master plan envisions the development of an integrated residential and resort community addressing the need for high-quality and sustainable living spaces for local residents, as well as creating a lifestyle destination for tourists in Phu Quoc – nicknamed as The Pearl Island of Vietnam. Water integration is central to the plan, which will create a unique community that provides a diverse range of workplace, living, and public amenities while celebrating its exceptional setting of nature in the powerful context of green and blue. Karen Cvornyek: “Situated adjacent to the protective forest area of the Bo Doi Mountain, the 74-ha residential development is divided into eight key zones of different residences and a village centre. A timeline connective experience defining the zoning and architectural character across the site establishes an integrated mixed-use core area surrounded by eco-homes supporting high-level sustainability objectives.”

She concludes: “There are many architectural and design solutions, aided by technology and informed by science, that can facilitate and indeed accelerate our progress towards a new balance. In combination they will create a new design aesthetic that embodies and reflects our newfound values. We are excited about the possibilities the future holds and eager to work with the clients who will join us in creating it.”

B+H ARCHITECTS Tel: +86 21 3360 7861 marketing@bharchitects.com www.bharchitects.com

Asia Outlook issue 45 | 61

HALCOM VIETNAM

THE RENEWABLE RENAISSANCE

hen Vietnam moved to middle-income status in 2018/19, it capped what can only be described as a remarkable economic turnaround. One of the world’s poorest countries in the 1980s, a huge series of reforms launched under Đổi Mới spurred rapid socioeconomic growth. Per capita GDP surpassed $2,700 in 2019, a growth of 270 percent since 2002, a period which has also seen more than 62 | Asia Outlook issue 45

HALCOM Vietnam continues to drive sustainable development across the country, the company spearheading a number of pioneering renewable energy projects Writer: Tom Wadlow Project Manager: Donovan Smith Photography: Tuan Anh Nguyen

45 million people lifted out of poverty. Early data suggests the Vietnamese economy expanded by seven percent last year although, like many nations, it has been hit hard by the COVID-19 pandemic. However, the fundamentals remain extremely positive, a feeling reflected by Saurabh Mathur, CEO of HALCOM Vietnam, a specialist investment and consultancy firm focused on urban and infrastructure development.

ENERGY & UTILITIES

“It is very exciting to be working in this space because of Vietnam’s fast-growing Saurabh Mathur, economy,” he says. “To extend CEO of HALCOM the discussion into our industry, Vietnam which is largely centred on renewable energy, the opportunity is significant. “Currently, around nine percent of the country’s energy mix is comprised of renewables, surpassing the target set for this year which

was seven percent. Developing clean energy is quintessential if Vietnam wants to proceed with its annual growth in a green and sustainable manner.” Indeed, electricity consumption has tripled over the past decade, growing faster than output, and the Vietnamese government has recently encouraged private sector to invest into RE, a void which HALCOM Vietnam is determined to Asia Outlook issue 45 | 63

HALCOM VIETNAM help fill through renewable, sustainable developments. This responsible ethos and mindset to deliver on large projects was key to Mathur joining the firm in the summer of 2018, the CEO having spent the last eight years living in Hanoi and working with smaller businesses and big corporates in Vietnam, the Middle East and India. “The journey so far has been exciting and eventful,” he says. “I am here with my family and we thoroughly enjoy living in Vietnam. “In this short amount of time, I have had the opportunity to successfully develop our first greenfield 21 MW wind project, which became operational in Q1 this year, and now we have embarked on the construction of our first solar farm in southern Vietnam which will be completed in December this year. The pace of execution at HALCOM is fast.” The company has been consulting on infrastructure projects since it was established in 2001, and extended its investing field in2014.

Working on projects spanning water supply, sewage works, waste management and transportation throughout the past two decades, the major focus currently lies with driving renewable energy developments, especially in the fields of solar and wind. It works closely with multilateral donors such as the World Bank, Asian Development Bank and Japanese International Cooperation Agency, which in turn has led to HALCOM curating its own international-standard corporate compliance programme and code of conduct. This, for Mathur, is a standout feature of working for the organisation. “We are a small and nimble company which focuses on efficient and timely execution of projects and, because of our transparent and open culture, many international investors have decided to join us in our renewable projects,” he adds. It hasn’t all been plain sailing in recent times, however, as restrictions imposed to curb the spread of COVID-19 has led to disruption in the

LBBW Best bank for export financing Leading importers and exporters from all over the world have chosen LBBW as the best bank for export finance. In June, LBBW received the “TXF Industry Choice Award 2020 – Best Bank in Export Finance”. The ranking was based on the results of a study that TXF has conducted seven times now. TXF obtained the opinion of more than 300 importers, exporters, banks, lawyers, and insurers worldwide through a combination of surveys and interviews. 59 percent of respondents were exporters and importers. Unlike traditional league tables, financing volumes are not decisive for the ranking. Instead, eight exclusively qualitative factors are evaluated in the Export Finance Industry Report. LBBW came out on top in these criteria, securing first place in the overall ranking in the “Banks” category. LBBW assists its export-oriented corporate customers with their international activities through an extensive international network of 18 locations in 17 countries. Our LBBW Singapore Branch acts as a regional hub for Asia Pacific and coordinates the business and our offices in the region consisting of LBBW’s: • Seoul Branch • Representative Office Mumbai • Representative Office Beijing • Representative Office Shanghai • Representative Office Hanoi • Representative Office Jakarta LBBW offers structured financing solutions that are tailored to the individual needs of exporters and importers according to the specific features of their markets and businesses. Contact us for a free consultation. We look forward to assisting you in your next project.

The Phuong Mai 3 wind power plant spans 122 hectares and received $40 million in direct investment, with HALCOM taking over in 2017 and construction work beginning in 2018 64 | Asia Outlook issue 45

Mr. Marc Philippe Schlatter Head of Export Finance Asia/Pacific Email: marc.schlatter@LBBWsg.com

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LBBW Structured Export Finance. Sustainable Financing. The LBBW Branch in Singapore offers a wide range of services and products and is a wellestablished partner for its international corporate and institutional clients since 1995. LBBW Singapore is LBBWâ€™s center of competence for cross-border finance in the Asia/ Pacific region. With the aim to support both importers and exporters in the region alike, Export Finance at LBBW Singapore has a specialized focus on providing tailor-made longterm financing solutions for capital goods and services sold on a cross-border basis covered by an Export Credit Agency.

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HALCOM VIETNAM economy. Though HALCOM didn’t suffer any significant impact, the lockdown restricted movement of foreign experts which the company relies on to consult on various projects. In response, the company has taken on more local experts, and now building activities are starting to resume as lockdown measures ease, progress can once again be made.

RAMPING UP RENEWABLES

WORKING WITH WATER HALCOM is engaged in another project in the Nhon Hoi Economic Zone in Binh Dinh province, this time focusing on the local water supply. An investment of $50 million will see work commence in October 2020, with building expected to take around two years. Once complete the water plant will supply 50 cubic metres of water per day from the Kon River, enough to provide for the economic zone and its ongoing development.

As Mathur has referred to, the completion of HALCOM’s first renewable energy project was perfectly timed in relation to the arrival of coronavirus. Located at the Nhon Hoi Economic Zone in Binh Dinh province, the Phuong Mai 3 wind power plant spans 122 hectares and total investment is about $42 million in direct investment, with HALCOM taking over in 2017 and construction work beginning in 2018. “With the total capacity of 21 MW, Phuong Mai 3 will supply over 65 million kwh to the national electrical grid a year, save 50,000 tonnes of CO2 annually, and achieve estimated annual revenue of 140 billion dongs,” Mathur adds. “It is also a success story in terms of financing. The plant was financed by Bank of Investment and Development of Vietnam, Cau Giay. It is also proudly

This is the first wind farm in the province and is made of up six Siemens Gamesa Renewable Energy turbines, each 114 metres in height with a blade diameter of 132 metres

the second project in Vietnam that is financed by export credit – by Landesbank Baden-Württemberg (LBBW), the fourth biggest bank in Germany – enhancing the project’s financial effectiveness and demonstrating international cooperation. “Being a consulting company by DNA, we rely heavily on our international and local partners, and also our individual consultants and collaborators. We have had several successful

ENERGY & UTILITIES Once more the project represents multiple firsts – not only is it HALCOM’s first foray into solar power, but also the Hau Giang province’s inaugural solar plant. Covering 33 hectares, it will deliver 35 MW of power once construction is completed in December 2020, the groundworks and clearance having begun in February.

partnerships in our wind projects, and we would like to particularly emphasise the tremendous support we’ve received from our financing partner, LBBW.” This is the first wind farm in the province and is made of up six Siemens Gamesa Renewable Energy turbines, each 114 metres in height with a blade diameter of 132 metres. “This clean energy source contributes to the electricity supply which faces a shortage, not only locally, but also in Vietnam in general,” Mathur continues. “In the long run, the plant will contribute to the provincial economic and social development, create jobs, and add to a beautiful landscape which will help attract tourism. What makes us proud is that it has inspired other renewable energy investors to consider the province, as Binh Dinh has high wind and solar power potential.” HALCOM also has plans to install solar power capacity at Phuong Mai 3, and is further invested in another solar project in the Phung Hiep district of the Hau Giang province, nestled in the Mekong Delta region in the southern part of Vietnam.

HALCOM also has plans to install solar power capacity at Phuong Mai 3, and is further invested in another solar project in the Phung Hiep district of the Hau Giang province RESPONSIBILITY AT HEART All of this activity is carried out with compliance and responsibility front and centre of HALCOM’s motives. Mathur has already cited the corporate compliance programme as a key reason why he was attracted to the company in 2018, these standards informed by the World Bank’s integrity guidelines. “This ensures our commitment in doing business fairly and transparently, for the benefit of all stakeholders, avoiding corruption, bribe and conflicts of interests among related parties,” the CEO says. “We work hard to bring sustainable benefits to the community and society with transparency and innovation.” Mathur also explains how HALCOM

has joined a long-term national programme – ‘Together joining hands for the poor – No one is left behind’ – initiated by VN Fatherland Front. “This aims to build up houses and implement social security activities for the poor,” he adds. “We also join hands in supporting poor civilians in central and Mekong Delta provinces such as Binh Dinh and Hau Giang, where we are building up renewable energy plants.” And it is the further development of these projects which will enable HALCOM to contribute even more to the upliftment of disadvantaged communities. Looking ahead to the next year or two, Mathur reveals the company is committed to building a renewable energy portfolio of about 300 MW, and has recently signed its first international consulting contract for a project in Laos, with plans also to build its first waste to energy plant in Vietnam in 2021. He signs off confidently, outlining the role HALCOM can play in driving sustainable Vietnamese development in the years to come. “The whole landscape for renewable energy in Vietnam is extremely exciting,” Mathur says. “There is a huge amount of international interest in this space and we are extremely excited to be part of this journey and contribute to the development of this sector.”

HALCOM VIETNAM Tel: +84 (0) 24 3562 4709 www.halcom.vn

Asia Outlook issue 45 | 67

UNION MEDICAL HEALTHCARE

A Caring Profession Having expanded its services, Union Medical Healthcare is focusing on what matters – looking after the wellbeing of its clients Writer: Dani Redd | Project Manager: Callam Waller

hen it comes to measuring healthcare systems around the world, the Bloomberg Healthcare Efficiency Index is worth consulting. It calculates a score for each nation based upon its life expectancy and health expenditures, and Hong Kong has consistently been number one on the list, thanks to its accessible, costeffective healthcare provision. Union Medical Healthcare Limited (UMH) has a large part to play in this, as it is Hong Kong’s largest nonhospital medical service provider. Its vision: to become the leading clientcentric medical provider in Asia, for aesthetics, health and wellness. In September 2018, we spoke with Karen Chui, Director of Corporate Finance and Investor Relations at UMH, about the company’s plans to expand through mature marketing and big data. We recently caught up with her to see how the organisation has developed since – according to Chui, there have been no end of successes. “We have successfully transformed into an integrated medical and healthcare player since we last spoke,” she explains. “And not only that, UMH has 68 | Asia Outlook issue 45

managed to expand its clientele from individuals to the government, insurance and even corporates. Thanks to its continual focus on technology, branding and high-quality services, we have been able to outperform our peers.” In 2018, UMH had 54 clinics of 233,000 square feet with 80 in-house registered practitioners. It now has 56 of 301,000 square feet, with 96 full-time and exclusive practitioners across 23 disciplines. Collectively, UMH completed more than 240,000 medical procedures over the year ending March 31, 2020. In other words, then, the company’s plans for expansion have been realised.

COMBATTING COVID-19

Karen Chui, Director of Corporate Finance and Investor Relations

However, the recent COVID-19 outbreak has proved a challenge for UMH. Although the scale of its business means it is able to secure a reliable and consistent supply of medicines and other products from medical businesses, the fact that beauty services were temporarily suspended meant a potential loss of revenue, which was roughly 20 percent of the business. The company acted quickly, adopting a series of measures to safeguard

With advanced medical facilities and professional medical specialists, Specialist Clinic Day Procedure Centre is dedicated to giving the best medical service and patient peace of mind

HEALTHCARE

the wellness of its talents and clients. â€œIn February 2020, UMH launched its telemedicine services in Hong Kong, facilitating social distancing following government guidance, safeguarding our clients and talents and offering services to clients during the lockdown due to the pandemic,â€? Chui explains. Telemedicine allows doctors to examine patients remotely, via videolink, enabling them to make diagnoses without patients having to leave their houses. During the pandemic, when it is important for anyone exhibiting

symptoms of COVID-19 to stay at home, it has been invaluable. And looking beyond the pandemic, it is just one of many ways in which UMH can put its clients first. Asia Outlook issue 45 | 69

UNION MEDICAL HEALTHCARE

Prime Care pediatric clinic

“We currently are more focused on consumer interfacing than we are on investing in technology, such as AI,” the Director says. “Our capability to capture clients’ needs in a timely and efficient manner shall allow the company to retain clients.” Since UMH currently has a client retention rate of 80 percent, its customer-centric approach is undoubtedly working.

PUTTING PEOPLE FIRST Indeed, UMH plans to continue its focus on customer retention first and foremost throughout 2020. It cites medical aesthetics as a valuable entry point for securing long-term clients, although that is not to suggest the company only recommends repeated cosmetic procedures. “We want to encourage individuals to age gracefully,” Chui says. “Regardless, you need to stay healthy! This is why we are preventive and precision focused when it comes to 70 | Asia Outlook issue 45

your health and wellness.” UMH has also identified the fact that women are often the medical and health decision makers of the family, and therefore can target its communications towards them. Further, the company recently rolled out its UMH Health Program, which offered 100,000 individuals free health and wellness services valued up to $240 a head, as well as discounted services at special rates. It invited 1,000 medical and healthcare professionals in Hong Kong to join the programme for free, helping to boost their wellbeing. This is but one example of its focus of corporate citizenship – looking after the welfare of both loyal clients and Hong Kong residents. As well as focusing on retaining clients, UMH is also deeply engaged in retaining talent to maintain its high-quality services. Back in 2018, Chui mentioned that finding skilled medical practitioners was one of the

company’s greatest challenges. These days, it is much less so. “Now we are the largest nonhospital medical service in Hong Kong, with more than 120 in-house and 170 affiliated registered practitioners, so attracting talent is much easier,” she says. “The challenge now lies in selecting the right candidate to grow the platform with us in the long-term.”

HEALTHCARE

Chui sees the company’s new co-ownership plan as vital to this goal. UMH’s talented staff are invited to invest a proportion of their annual salary, their existing family wealth, into the company, helping to drive overall growth over the next few years. At the end of the investment period, participants may be awarded up to 50 percent of free shares.

Advanced imaging centre “Participants are no longer just an employee, but a co-owner of the company with the upside of free shares of UMH,” she explains. “We anticipate this sense of ownership

will make staff more productive and efficient, and hence UMH as a whole.” With its emphasis on client retention and staff satisfaction, the firm is focusing on what is most important in healthcare – putting people first. It is this approach, above all, which explains its success. Despite the recent pandemic, Chui remains optimistic about the period ahead, and states that UMH will continue to expand its operations, whilst monitoring it’s medical and aesthetic targets closely. “We were quite focused on local spending and announced a further

acquisition of our pain and wellness management centre recently – we will replicate this model and further consolidate the medical industry,” the Director says. “In addition to medical tourism, we have decided to speed up expansion into Mainland China, in particular the Greater Area Bay, where favourable policies have been and will be implemented to facilitate the interaction of talents and business.” UMH plans to set up between 30 to 50 outlets in the next three to five years. We, for one, are in no doubt it will realise its goal of becoming one of Asia’s most important and wellrespected medical providers.

Tel: +852 3975 4798 ir@umhgp.com www.umhgp.com

Asia Outlook issue 45 | 71

TRUKAI INDUSTRIES

Producing for PNG Trukai Industries Ltd has been building up a national rice industry for more than 50 years, its work centred around community and people Project Manager: Josh Hyland

eally good food - a simple strapline but one that everybody can identify with. As well as keeping us alive and healthy, food forms a focal point of social and family interaction, with few better feelings than providing relatives and friends with a tasty meal. Papua New Guinea’s Trukai Industries Ltd is centred around this concept. The word Trukai originates from a saying in the local language - trupela kaikai - which translates to really good food. Trukai began life as Ricegrowers – Australia Pty. Limited in 1970, and has played a central role in feeding Papua New Guineans ever since. Back then, it exclusively dealt in the distribution of a single variety of white and brown rice, packed and

72 | Asia Outlook issue 45

delivered in polysac bags. In the half century since, Trukai has grown into the nation’s leading supplier of rice and is the only firm that manufacturers its products locally, serving as a true bedrock to the community. This important PNG-centric milestone was reached in August 2019 when it launched Trukai Hamamas Rice. It is 100 percent homegrown in the Rangiampum village in Umi, Morobe Province, grown from 275 hectares of rainfed crop in the Markham Valley before being milled and packaged at the firm’s main base in Lae. Speaking at the time of the announcement, CEO Greg Worthington-Eyre said: “It took a lot of hard work and commitment by our hardworking staff and the support from the Chingwam Rice Growers Cooperative in Umi in the Markham Valley; we are proud of this achievement. “Rice is a challenging crop to grow in PNG and it requires a lot of work, technical expertise and investment. Trukai has invested significantly in local rice development over the years and this milestone is a testament of our investment and commitment towards developing a local rice industry for PNG.”

Indeed, investing in local agriculture is the core of Trukai Industries, the company committing 200 million Papua New Guinean kina ($56.7 million) every year into industry infrastructure. This includes its 220,000-tonne capacity rice mill and packing plant in Lae, 12 national supply centres which serve more than 80 wholesale and retail distributors, and 2,500-hectare

FOOD & DRINK

cattle farm at Erap, as well as the Gabmatzum Rice Research Farm. Considerable investment comes from majority shareholder SunRice, which is Australia and the Pacific regionâ€™s leading rice production, manufacturing and marketing company.

CORPORATE CITIZEN Crucially, Trukai Industries is one third

owned by 40,000 Papua New Guinean shareholders, a structure which is facilitated through the Pacific Balanced Fund and underlines the organisationâ€™s commitment to local people. This is, undoubtedly, the hallmark of the enterprise. Not only is it part-owned by thousands of Papuans, it employs more than 1,000 PNG citizens across

its operations, jobs which in turn help to support the lives of many thousands more in family networks and livelihoods of those involved in the wider supply chain. Beyond the core activities of the company, Trukai Industries also manages one of the most comprehensive corporate social responsibility programmes in Papua New Guinea. Asia Outlook issue 45 | 73

TRUKAI INDUSTRIES

PRODUCT PORTFOLIO Since 1970, Trukai has expanded its portfolio to included several rice products which help to feed the people of Papua New Guinea. These include: TRUKAI MEDIUM GRAIN RICE: Sold in quantities ranging from 500 grams to 20 kilos, this is known as the nation’s favourite rice brand. TRUKAI JASMINE RICE: Fragrant rice ideal for Asian dishes. TRUKAI NATURAL BROWN RICE: The healthiest of the range, this brown rice carries a unique nutty flavour thanks to the bran coating which is full of fibre and nutrition. TRUKAI LONG GRAIN RICE: Available in one or 10 kilo bags. ROOTS RICE: The most affordable product in the range, made from a unique blend of rices. TRUKAI FARMS STOCK FEED: Broiler feed sold to poultry farms. Trukai also has activities centred around cattle and currently operates a commercial cattle production unit at Erap, half of which has been taken over by rice. The firm also has interest in sorghum, an African warm weather crop which can produce several seed heads from a single planted seed. In fertile soils, it can produce a yield of up to six tinnes per hectare of land.

74 | Asia Outlook issue 45

“Establishing itself in the community, as an organisation actively engaged in promoting healthy living, it does this not just through its products, but also in its long term support and partnership of sports and local events,” Trukai states. “Trukai is not just a ‘good corporate citizen’ but a leader in its industry, paving the way for other organisations to follow suit.” Sport is a critical part of the company’s sustained CSR endeavours. Here, Trukai has a longstanding association with the Papua New Guinea Sports Federation and its development of athletes able to compete on the international stage. Through significant cash and kit donations, Trukai’s support has been vital in helping the Federation to pay for preparation of athletes for prestigious events such as South Pacific Games, the Commonwealth Games and the Olympic Games. More specifically, the firm’s sponsorship has been directed towards weightlifting, powerlifting and bodybuilding, fitting with the association of its rice products with healthy living and strength. In the world of team sports, Trukai Industries is also a major supporter of rugby league, PNG’s national sport. Through a partnership with Australian club North Queensland Cowboys, it

J. L. Lennard Trukai Industries understood many years ago the importance of partnering with a renowned supplier for their product inspection equipment and this is why they chose JLL and Anritsu to supply all of their metal detectors and checkweighers for their rice factory in Lae. Selecting JLL as the preferred supplier was not only based on the reliability of the Anritsu product range but also due to JLL’s after sales service and frequent service visits to PNG. Our partnership has been based on loyalty and trust , which grows stronger each year and J.L.Lennard is proud to be a major supplier to such a successful company.

www.jllennard.com.au

has contributed to many initiatives and events to raise the profile of the sport in the country, funding coaching, tournament hosting and opening up access to young people. Indeed, supporting younger generations of Papua New Guineans is central to Trukai’s CSR strategy. In late 2019, for example, it provided

FOOD & DRINK

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THE TRUKAI COLOURS Trukai Industries is deliberately defined by three colours - yellow, red and green - which represent its promise as a brand, summed up by TruQuality, TruFlavour, TruHealth.

support to an outreach programme in Northern Province run by Youths With A Mission (YWAM). Specifically, Trukai donated 600 kilos of rice to YWAM’s medical ship for its Popendetta outreach - the ship is a vital means of accessing health services given PNG’s challenging terrain made up of rugged landscapes and river systems. Last year saw three rice donations made by Trukai, resources which

YELLOW: Represents a continuous strive for excellence in delivering high quality products to the people of PNG. RED: Represents Trukai’s confidence and commitment in providing exciting and flavoursome products. GREEN: Represents the organisation’s commitment to the health and safety of its people and the people of PNG.

have helped the ship to see around 3,000 primary healthcare, optometry and dental patients in the Northern Province area. MV YWAM PNG Ship Manager, Jeana Wiemeyer, commented: “On behalf of the whole team aboard YWAM’s medical and training ship, MV YWAM PNG, I would like to extend our wholehearted thanks to Trukai for the donation of rice for our upcoming outreaches. “It is wonderful to see partners from all over PNG and the world work together to build healthy villages and a healthy Papua New Guinea. We are grateful for Trukai’s partnership and support.” Moving forwards, by building up a truly local rice industry in PNG and investing in social upliftment programmes such as those with YWAM and the Papua New Guinea Sports Federation, Trukai looks set to continue contributing to the improving health of the nation. Asia Outlook issue 45 | 75

EVENTS

PTC ASIA November 3-6 | Shanghai, China | www.ptc-asia.com

A regional forum for all things power transmission P TC AS IA is an annual leading industrial event of the Asia Pacific region, an international trade fair for those dealing in hydraulics, pneumatics, seals, gears, motors, coupling and brakers, chains, belts, springs and bearings. PTC ASIA 2019 facts: • >1,663 well-known Chinese and overseas enterprises • >100,000 square metre venue • 142,975 visitors (increased by 42.1 percent compared to 2018) • >210 VIP visiting buyers’ groups • 40 Forums and activities 76 | Asia Outlook issue 45

The event is organised by Hannover Milano Fairs Shanghai, which is a joint venture of Deutsche Messe AG and Fiera Milano. It is organised in partnership with the China Federation of Logistic and Purchasing and the Chinese Mechanical Engineering Society. To find out more about the event, please contact Ms. Alexandra Nadbitova, International Sales and Marcom Manager, at Alexandra. nadbitova@hmf-china.com or +86 21 20557033.

EVENTS

CeMAT ASIA November 3-6 | Shanghai, China | www.cemat-asia.com

All eyes on Shanghai for a bigger and better 2020 event RUNNING IN tandem with PTC ASIA, CeMAT ASIA is an annual leading industrial event of the Asia Pacific region, an international trade fair for materials handling, automation technology, transport systems and logistics, cold chain, heavy machinery and more. CEMAT 2019 facts: • >800 well-known Chinese and overseas enterprises (increase of 27 percent compared to 2018) • >85,000 square metre venue (increase of 20 percent compared to 2018)

78 | Asia Outlook issue 45

• 142,975 visitors (increase of 42.1 percent compared to 2018) • >210 VIP visiting buyers’ groups (increase of 40 percent compared to 2018) • 40 Forums and activities (increase of 42 percent compared to 2018) The event is organised by Hannover Milano Fairs Shanghai, which is a joint venture of Deutsche Messe AG and Fiera Milano. It is organised in partnership with the China Federation of Logistic and Purchasing and the Chinese Mechanical Engineering Society.

To find out more about the event, please contact Ms. Alexandra Nadbitova, International Sales and Marcom Manager, at Alexandra. nadbitova@hmf-china.com or +86 21 20557033.

EVENTS

Asia Warehousing Show December 2-4 | Bangkok, Thailand | www.asiawarehousingshow.com

The supply chain spectrum under one roof AS IA WA REHOUSIN G Show (AWS) is an annual exhibition and meeting place where professionals from warehousing, material handling, storage, AIDC, intralogistics, supply chain, transport & logistics industry meet the buyers of various end-user industries. Taking place on December 2-4, 2020, the exhibition will be featuring Asia Warehousing & Logistics Summit and will be co-located with Material Handling Equipment Expo Asia, Robotics & Automation 4Logistics and Supply Chain Asia Zone. Innovative and energy-saving solutions ranging from forklifts and industrial equipments, fully automated conveyor systems, shelving and warehousing systems, latest developments in IT â€“ every solution for warehouse, distribution centre, logistics and supply chain requirement can be found at Asia Warehousing Show. 80 | Asia Outlook issue 45

Material Handling Equipment Expo Asia (MHE Asia) aims to bring material handling equipment manufacturers to showcase and demonstrate new technological equipments used throughout the process of manufacturing, distribution, consumption and disposal by any user industry. Robotic & Auotmation4Logistics focuses on the community creating robotics solutions and those seeking the most innovative solutions for their manufacturing, warehousing, and logistics applications. Supply Chain Zone (SCZ) invites leading 3PL, 4PL, logistics parks and warehousing companies to exhibit their services at the show. This will significantly attract professionals from the end-user segments who are interested in these services.

Asia Warehousing & Logistics Summit is a two-day concurrent conference. Focus topics of the conference will be logistics parks, warehouse real estate and robotics and automation. Warehouse, supply chain, logistics heads, commercial heads, procurement heads and plant heads from food and beverages, FMCG, pharmaceuticals, automobile, supply chain and logistics companies, retail, engineering, paints, warehouse owners, transport companies, ports, railways, terminals and airlines, relevant government departments, trade bodies and associations and other user industries will attend the event.

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

Rowan Hodge CEO, Andersens Floor Coverings “Customers have always wanted retailers to make their lives easier, more convenient, safer, more comfortable, more accessible and more seamless. “The present crisis just makes these desires plainer. It is always urgent to be open when your customer needs you. It has refocused us on making sure we are. Customers have always wanted the best advice, competitive pricing, an extensive range, insights on colours, textures and trends. What the crisis has forced us to do is to accelerate our adaptation of an old business, in an overly ‘same’ industry, to try to give our customers all that they want. As a business mentor of mine once told me, all businesses should redesign themselves – as if they were brand new – once in a while, to make sure they are still designed to give the customer what they now want.”

Karen Cvornyek President and Regional Managing Principal, Asia, B+H Architects “The workplace has been turned upside down. Taking B+H as an example, remote work and hot desking have been fully implemented in our Asia offices from the beginning of the crisis. Companies are quickly evolving; new effective ways of communicating and software that has existed for quite some time is now being deployed swiftly and adopted eagerly by managers, employees and clients alike. “Prior to the pandemic the governing trend within workplace design was to make work feel like home. This trend reversed during the crisis when we had to adapt our homes to function as our workplace. Our homes are not typically set up to accommodate the work function, but we are learning 82 | Asia Outlook issue 45

What impact has the coronavirus pandemic had on your industry, and how are you responding?

something important – although most of us are missing our colleagues, faceto-face collaboration, our ergonomic office chairs and large computer monitors, we are discovering that we can be incredibly productive working from home, that we do not miss the hours lost in commuting, and appreciate the extra time with our families and hobbies.”

Stephane Pierron President, Chip Mong Retail “Apart from the serious health concerns, it also affects the business community, and not just locally; Cambodia imports most of what it consumes from the regional markets, which are also affected badly. Orders for equipment and fixtures from abroad are affected

as overseas factories close. “Crowds are thinning out, which malls fundamentally thrive on. Needless to say, foot traffic has declined drastically, resulting in a ripple effect on the tenants in the malls who now find their businesses are no longer sustainable. They can’t pay their rents, and landlords like us have to offer substantial rent relief. Our malls still operate as we want to retain our hard-working staff. Keeping them healthy is our priority, especially the front-liners – we have invested in PPE for them and are constantly educating them and ensuring they follow strict hygiene protocol.” Are you a CEO/Director with a company story to tell? Contact Asia Outlook now!

A franchise network built on a commitment to the customer... ANDERSENS FLOOR COVERINGS

RETAIL

CURATING THE COUNTRY TOWN CULTURE

See page

28 22

Andersens Flooring Coverings is embarking on an ambitious plan to grow its franchise network across Australia, the brand built on its unwavering commitment to providing exceptional personalised service Writer: Tom Wadlow | Project Manager: Josh ANDERSENS Hyland FLOOR COVERINGS A key part of the answer is its market-leading induction and training

RETAIL

experience in a live trading store where inductees are taken through 20

operations trainers and a business coach, while the academy continues

programme, as the Andersens ago daily skills checklists by a seasoned to be used to deliver new material, As a business mentor of mine known five decades and operates 50 Academy. franchise owner, who in turn earns a recent example being COVID-19 once told me, all businesses stores stretching from the far north training modules for franchisees and Onboarding new franchisees typi$10,000 for their efforts. cally takes six weeks, first two of Once new franchisees are into should redesign themselves of the Queensland (where it all began) to their employees to ensure stores which being spent in a classroom envi- their new store, they continue to remain safe amid social distancing – as if they were brand new – once in abefore aCanberra. ronment, hands-on four-week receive daily and weekly contact from measures. “Andersens Academy is critical while, to make sure they are deliberAndersens is a franchise network to the success of the organisation,” Hodge says. “With so many decades ately invented to give the customer which employs around 200 team of experience in dozens of stores, what they now want.” members and about as many flooring the whole objective of Andersens Academy is to capture the best “If there is one thing that the COVID- installation contractors. These fran- practices and make sure we spread 19 pandemic of 2020 has taught us, it chisees are supported by 20 staff whothem around. “Andersens has the longest average is that businesses of all kinds must be work from company headquarters andtenure of any franchise I have even encountered at a little over 15 years. adaptable in order to survive. Indeed, warehouse in Gatton, and in the field This is an extraordinary asset, and the academy is aimed at making sure the definition of ‘normal’, it seems, as business coaches. we wring every last drop out of this looks certain to change. Like all retailers, Andersens is having advantage for the benefit of all of our “Behavioural patterns are changing to adapt in response to the unprec- franchise members.” The company has also added POWERED BY PARTNERSHIPS as more and more consumers seek edented interruption of COVID-19. a mentorship programme into its As well as the formidable experience within the Andersens that offering in which a new franchisee flexibility to fulfil their retail needs, But Hodge is contained quick to recognise paired up with an experienced ranks, Hodge is quick to emphasise the critical nature of the company’s while countless office-based organithe need evolve to meet customer colleague. Where experienced relationship with partners and to suppliers. operators earn $5,000 for performing sations are waking up to the fact they needs evergreen. “To say our supply chain isis important would be an understatement,” weekly 30 minute mentoring meetings he says. “Since our humblest beginnings well over half a century ago, in person or by Zoom, with new can operate equally effectively with “The coronavirus has brought long franchisees over the course of their Andersens has had a proud history of dealing with a core of the best supply partners in the entire industry. first 26 weeks trading. “This creates a their employees working remotely and standing retail trends into sharper friendship and a voice of experience “We have a large warehouse at our headquarters in Gatton. In our industry, flexibly.” focus,” he says. “Customers have to help guide our new recruits, come this is a unique investment, and a tremendous asset for our franchisees what may,” adds Hodge. “Just like our These remarks are from Rowanand suppliers alike. always wanted The warehouse allowsretailers Andersens to to buy make product bytheir franchisees who help train our new metrics to all other players, like securing whole rolls and pallet Hodge, CEO at Australian retailerdifferent lives easier, more convenient, safer, recruits, our mentors are also paid pricing for merchandise instead of paying expensive small batch freights for their care of their new franchise and fees. Andersens Floor Coverings. more comfortable, more accessible colleagues, in recognition of the “The result is that Andersens is aseamless. favourite for these vendors, who routinely incredible value of their accumulated Specialising in quality floor covand more report that they wish all other chains were as good to partner with. We expertise.” erings and window furnishings, the “The present lays this believe this partnership must be built on acrisis win-win. just We strive to push the volumes of the vendors who best support our franchisees, and in turn FIT FOR THE FUTURE network was established more than bare. It is always urgent to be open, And deliver them the thing they most want – volume growth.” such collective experience is vital

A FRANCHISE NETWORK BUILT ON A COMMITMENT TO THE CUSTOMER

The company also conducts a franchisee sentiment survey on its top 20 vendors by volume every six months. The results are shared via a dashboard to the vendors to encourage positive and constructive Asia Outlook issue 45 discussions around how best they could improve their supply, in the eyes of these stakeholders.

2 | Asia Outlook issue 45

in navigating through what are such unusual times. 3 Although the ‘lockdowns’ around the world are keeping the ecommerce giants busy (Amazon being the notable beneficiary), Hodge points to research that highlights the enduring

our customer to visualise our beautiful flooring range options in real time, in her home, at her leisure, anytime of the day or night.” “What we really strive for at Andersens, however, is to differentiate our in-store experience from that of our competitors. A major priority for Hodge and the company is to take this one step further through a rollout of the Andersens store of the future concept. The aim is to elevate new and refurbished outlets to a cut above the competition, and feeds directly into

ANDERSENS FLOOR COVERINGS Tel: 07 5462 1955 rhodge@andersens.com.au www.andersens.com.au

6 | Asia Outlook issue 45

Asia Outlook issue 45 | 7

Andersens Floor Coverings has told its story. Now, why not tell yours? Our bi-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!

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

Issue 45

A COUNTRY www.asiaoutlookmag.com/get-involved TOWN CULTURE How Andersens, despite the ongoing disruption caused by COVID-19, is embarking on an ambitious plan to grow its franchise network across Australia

Complementing the production of Africa Outlook, Asia Outlook and EME Outlook magazines, Outlook Publishingâ€™s award-winning in-house team is now utilising these same specialist production

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