Britain in Hong Kong October 2012

16 28Origins of Poppy DayLondon Gateway Effective Networking24

Fundingfor SMEs

October 2012 Vol 27 No 8

Not For Sale

www.bri tcham.com

HONG KONGBritainIN

28071_BCO_Oct-1.indd 128071_BCO_Oct-1.indd 1 12年10月22日上午9:4112年10月22日上午9:41


Funding for SMEs6Origins of Poppy Day28

4 Chairman’s Message

6 Funding for SMEs

10 Construction Planning Engineers

12 Today’s Expense, Tomorrow’s Bottom Line

14 Global Supply Chains

16 London Gateway

18 Basic Investment

20 Megacosts of Megaprojects

22 Offshore Companies Owning UK Properties

24 Networking to Gain Sales

27 YCIS

28 Origins of Poppy Day

30 Lifestyle

33 Legal Column

34 Upcoming and Past Events

36 Member Discounts

38 Member Get Member 2012

41 News and New Appointments

42 New Members

43 Shaken Not Stirred

YES SIAM !30

Contents

EditorSam Powney

DesignWinnie LiLilian YuSteve MokKen Ng

Advertising ContactCharles Zimmerman

Project ManagementVincent Foe

Jointly Published by Speedfl ex Medianet Ltd andThe British Chamber ofCommerce in Hong Kong1/F, Hua Qin International Building340 Queen’s Road Central, Hong KongTel: 2542 2780Fax: 2542 3733Email: info@speedfl ex.com.hkEditorial: sam.powney@speedfl ex.com.hk Advertising: charles@speedfl ex.com.hk

British Chamber of Commerce SecretariatExecutive DirectorCJA Hammerbeck CB, CBE

General ManagerCynthia Wang

Marketing and Communications ManagerEmily Ferrary

Special Events ManagerBecky Roberts

Events ExecutiveMandy Cheng

Business Development ManagerPhillippa Cook

Membership ExecutiveLucy Jenkins

AccountantMichelle Cheung

Executive AssistantJessie Yip

SecretaryYammie Yuen

Offi ce AssistantSam Chan

© All published material is copyright protected. Permission in writing from the Publishers must be obtained for the reproduction of the contents, whole or in part. The opinions expressed in this publication are

not necessarily the opinions of the Publishers. The Publishers assume no responsibility for investment or legal advice contained herein.

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

Britain in Hong Kong


Nick Sallnow-Smith

I noted in an earlier letter that one of the aims of the Chamber this year would be to focus on a limited

number of key themes, rather than dissipating our energies scattergun style. After just a few months,

one of those themes is already beginning to emerge. And that big theme is the need for a big theme!

Whether, as a Chamber, we are talking to Government, politicians, member companies, or overseas

visitors, everyone is wrestling with the need to provide a vision, an objective, an aspiration, around

which a shared destination can be built. At a company level, this enables a CEO to build a focussed

team and to set clear benchmarks for success and reward. In politics, it can enable a candidate, and

later a President or Prime Minister, to create a simple understanding or his or her aims around which

a party can rally and which can generate engagement from voters. In an administration, whether in

Hong Kong or elsewhere, it can reassure society that there IS a plan, and focus citizens on the shared objectives, rather than

scoring points off each other along the way.

For the Chamber, the big theme must be that business is part of the solution, not the problem; and that any business operating

in Hong Kong, whether local or international, is as much invested, both fi nancially and metaphorically, in the success of Hong

Kong as is every member of the population.

In every conversation at Chamber events that I attend, I am struck by the focus that businesses have on the health of the society

around them and how to support that, alongside their drive for the success of their own businesses.

The media is tempted always to portray business otherwise; as parasitic on society rather than as a lynchpin of it. One of our

tasks as a Chamber is to explain the positive nature of our role, as we engage with society and with public institutions. When the

General Committee meets with Government offi cials and local politicians we ensure that we emphasise our desire to support

Hong Kong’s aspirations to improve the quality of life, as well as of commerce, in our city. Although the challenges to progress

are ever more obvious, whether these are fi nancial, environmental, political or otherwise, shared objectives, clearly understood

and supported, make progress a whole lot easier. Please help us build that feeling of shared objectives as we play our part in

Hong Kong’s future.

Chairs of Specialist Committees

Business Angel ProgrammeNeil OrvayAsia Spa & Wellness Limited

Business Policy UnitTim Peirson-SmithExecutive Counsel

China CommitteeDavid WattDTZ

Construction Industry GroupDerek SmythGammon Construction

Education CommitteeStephen EnoBaker & McKenzie

Environment CommitteeAnne KerrMott MacDonald Hong Kong Limited

Financial Services Interest GroupRichard WinterQuam Limited

HR Advisory GroupBrian RenwickBoyden Search Global Executive

ICT IT CommitteeCraig ArmstrongStandard Chartered

Logistics CommitteeMark MillarM Power Associates

Marketing & Communications CommitteeAdam O’ConorOgilvy & Mather Group

Real Estate CommitteeJeremy SheldonJones Lang LaSalle

Scottish Business GroupJohn BruceHill & Associates

Small & Medium Enterprises CommitteeKate KellyK2PR

Strategic Supply Chain ForumDominic JephcottVendigital Limited

Women in Business CommitteeSheila DickinsonThe Fry Group

YNetwork CommitteeAlison Asome

MessageChairman’s


Britain in Hong Kong 54


Introduction

“A business owner walks into a

bank and asks for a loan.” It’s

perhaps not the most promising

opening line for a joke, but for

countless Small to Medium Sized

Enterprises (SMEs) in Hong Kong,

access to funding is no laughing

matter. SMEs are often described

as the “lifeblood” of our economy, and it’s easy to see

why: Hong Kong’s 300,000 SMEs1 account for 98% of

all businesses, 48% of the total workforce, and 60% of

private sector revenue.2

Despite their vital role, SMEs struggle more than any

type of borrower to obtain the funding they need to grow

their businesses, and banks have become culturally

attuned to not helping SMEs. Why exactly is this? How

does Hong Kong compare to other markets? What other

funding sources are available to SMEs? And how can the

situation be improved?

The struggle for funding is not new, nor is it exclusive to

Hong Kong. In the UK, news that nearly half of all SME

loan applications are rejected has created uproar in the

media there. Cynics argue that UK government efforts

to increase SME lending are simply a cloak to disguise

attempts to bolster the beleaguered banks by giving

them access to cheaper funding.

Hong Kong banks hardly struggle for low-cost funding, as

all of us earning close to 0% interest on our deposits are

acutely aware. The banks say they are ready, willing and

able to lend, but the demand from SMEs simply isn’t there.

I am sure that most Hong Kong business owners and

managers would disagree. Our economy has performed

well in recent years, and there is an ongoing need for capital

to help our businesses to fl ourish. In short, the demand for

funding is clearly real, but so is the lack of supply.

Why is it so diffi cult for SMEs to borrow from banks?

So why exactly won’t the banks lend to SMEs? There are

several reasons:

1. Banks see SMEs as high risk due to their smaller

size, fewer years in business, or imperfect credit

history. Perhaps the business operates in a sector

to which banks simply refuse to lend. Just ask any

restaurant owner whether they have borrowed from

a bank and you will likely be met with a stern face,

the sucking of air through teeth, and a few choice

expletives.

SME Funding – SME Funding – How Hard Can it Be?How Hard Can it Be?

Richard Grainger, Managing Director, Richard Grainger, Managing Director, Global Merchant Funding GroupGlobal Merchant Funding Group

1. In Hong Kong, an SME is defi ned as any business with fewer than 50 employees, or a manufacturing business with

fewer than 100 employees.

2. Source: Trade & Industry Department, Government of the HKSAR.

C ove r S t o r y


2. SME lending is an expensive business: loan

processing costs do not change much with the size

of the loan. Banks therefore prefer to give a single

large loan, rather than several smaller ones.

3. SMEs generally provide no collateral as security

against loans. Banks must therefore allocate more

capital against SME loans, compared to say home

loans, which are secured by a mortgage charge on

the underlying property. Since the global banking

crisis, capital requirements have become even

stricter, and capital even scarcer.

In short, banks have little incentive to lend to SMEs. They

are happy to sit back, take in all the funding they need

through low-cost deposits, and focus their lending on

secured mortgages or larger, less risky borrowers.

Moreover, total lending by banks and other Authorised

Institutions in 2011 was HK$57.7 trillion.3 Yes, that’s trillion

with a “tr”. So the HK$14.6 billion lent to SMEs under the

80% guarantee scheme amounts to just 0.025% of total

lending in Hong Kong. That’s one-fortieth of one percent

of all lending feeding the lifeblood of our economy.

However we cut the numbers, it is clear that government

efforts to boost bank lending to SMEs are having, at

best, only a marginal impact.

What other sources of funding are available to

SMEs?

Sadly, not many. Personal loans, overdrafts and credit

cards, as well as more traditional sources such as family

or pawn shops, make a very limited contribution to SME

funding.

Business angels or angel investors provide another

source of funding, and the British Chamber itself, with

the support of Baker Tilly Hong Kong, runs an excellent

programme that brings together entrepreneurs with

angels looking to invest in early stage businesses.

Certainly, there are plenty of investors out there, and

there is no shortage of new and young businesses. The

challenge is to bring more of them together, more often.

For more information about the Baker Tilly Hong Kong

Angel Programme please visit angel.britcham.com or

contact Emily Ferrary at [email protected].

For wholesalers, exporters or other trading companies,

factoring remains a tried and tested funding tool. For a

business that needs to wait for up to 90 days or more

for an invoice to be paid, factoring is a simple way to

unlock the value of that asset, generating funds through

a discounted sale of the invoice.

3. Source: Hong Kong Monetary Authority Monthly Statistical Bulletin.

The SME Funding ParadoxHong Kong’s 300,000 SMEs account for:

• 98% of all businesses

• 48% of total employment

• 60% of private sector revenue

• 0.025% of total lending

Other sources of SME funding include:

• Angel investment

• Factoring / invoice discounting

• Merchant Cash Advance (MCA)

• Microfi nance loans

• Peer-to-Peer (P2P) loans

So where does this leave Hong Kong SMEs?

To its credit, Hong Kong’s government has introduced

measures to boost SME lending. For example, under the

“SME Financing Guarantee Scheme”, the Hong Kong

Mortgage Corporation guarantees up to 80% of SME

loans made by participating banks.

On the face of it, the scheme has been successful.

According to HKMC, HK$14.6 billion of loans have so

far been made under the 80% guarantee scheme. The

offi cial fi gures tell us that 88% of SME loan applications

were approved under the scheme. However, they

also state that only 3,107 businesses received a loan;

3,107 or just 1% of Hong Kong’s 300,000 SMEs.

What the official numbers do not tell us is how many

businesses were rejected before an actual application

was made and recorded in the data. My guess is that

the few SMEs that successfully received loans are

heavily outnumbered by those that failed to reach the

application stage.



What else can be done to help Hong Kong SMEs?

If the government is serious about helping SMEs,

then it needs to be more pro-active. Suggested

measures include tax breaks for angels investing in

young companies; government co-investment in SMEs

with third party investors; direct funding to help early

stage businesses; government-sponsored equipment

and machinery loans; insurance schemes for trade

finance and working capital loans; and of course,

further pressure on the banks to increase SME lending.

Doesn’t it seem strange that overseas investors

can obtain permanent residency in Hong Kong by

investing in property, but not by investing in SMEs? The

government and InvestHK might want to look into this

- it would certainly take some pressure off an already

frothy property market.

Importantly, these measures are much more widely used

in other countries in Asia and around the world, than

they are in Hong Kong. So until our government takes

more concrete action to help SMEs, some 300,000

businesses will continue to struggle to obtain funding,

and Hong Kong’s economic development will inevitably

suffer.

Richard Grainger is a co-founder and Managing Director

of Global Merchant Funding Group. Founded in Hong

Kong in 2008, GMF offers a range of funding products

and services to SMEs in Hong Kong and across Asia,

and has provided funding to thousands of businesses

when none was available from banks.

Richard Grainger

[email protected]

Tel: +(852) 2592 6699

The banks all offer factoring products, but it is still very

difficult for smaller companies to qualify. This seems

surprising, given that the underlying invoice does provide

some security for the bank. However, underwriting

factoring transactions is a very labour-intensive process,

and for invoices below HK$5 million, the banks are

generally not interested. As with SME loans, they prefer

to write larger tickets, fewer of them, and with bigger and

more established companies.

Other non-bank funding products include Merchant Cash

Advance (MCA), available in Hong Kong since 2009 to

businesses that accept credit card payments from their

customers - typically retail shops, restaurants and bars,

but available to any card-accepting merchant. Similar

to factoring, MCA also helps a business to unlock the

value within an asset, but instead of selling an invoice or

a trade receivable, the merchant sells future credit card

receivables at a discount. The MCA product recently

received a strong legal validation from the Hong Kong

courts as a much-needed and innovative funding tool

for SMEs, and MCA looks set to become a mainstream

funding product in Hong Kong, just as it has been for

up to 20 years in countries like the UK, US, Canada,

Australia and Singapore.

We also see many other funding products around

the world, including microfinance loans, Peer to Peer

(P2P) loans, payday loans and advances, and many

other alternative credit products. Many of these do

not yet exist in Hong Kong, but there will always be

financial innovation, and we can be confident that in

a sophisticated market like Hong Kong, the legal and

regulatory framework will always be receptive to new

products.

Suggested government measures to help SMEs include:

• Tax breaks for angel investors

• Government co-investment in SMEs with

third parties

• Direct funding for early stage businesses

• Government loans for equipment and

machinery

• Insurance schemes for trade finance and

working capital loans

• More pressure on banks to increase SME

lending

• Encourage foreign direct investment in SMEs

C ove r S t o r y


2 0 1 3British BusinessDirectory

The Directory of Members of the British Chamber of Commerce

in Hong Kong , Macau and the Pearl River Delta, China

Publication in Focus

The British Business Directory 2013 offers a comprehensive forum for exposure and opening communication channels. It furtherenables listed businesses and advertisers, entry into the prestigious British Chamber of Commerce group of corporate members andaffiliated organizations. By listing and advertising, companies gain extra recognition and brand awareness, in addition to enjoying theseal of approval associated with the British Chamber of Commerce membership and affiliation.

The contact information contained in the guide produces a tangible, reliable and accessible product that decision makers and industryheads can pick up and use at any time. Thanks to the quality, presentation and design the directory also conveys an image of 25 yearsof economic and cultural growth of British businesses in Hong Kong, Macau and the Pearl River Delta.

The directory boasts a plethora of supporting information of tremendous value for both members and other businesses, and is held inhigh regard in corporate communities and international business circles.

As the sole established, authoritative guide to British Businesses throughout Hong Kong, Macau and the Pearl River Delta, it is a superbmeans for getting in touch with members and highly conducive of generating business opportunities, enhancing its applicability evenfurther.

Advertising

Professional design and lay-out services complement the inherent value of advertising in the British Chamber Business Directory for2013, with advertisers enjoying not only highly increased exposure but also presentation using the highest standards available in thepublishing industry.

There are numerous types of advertisements available, all at competitive rates. The directory also contains feature pages focusing onspecific businesses for added value and highlighted positioning.

Over the past several years, our advertisers in the directory have realized significant returns on their advertising investment, reportingnoticeable feedback and positive business growth as a consequence. As an extra added value, we have not raised the rates of the adsover the past several years.

Advertising Rates (4C OR Black & White)

Position Price (US$) (HK$) (RMB¥)

Double page (front section) 9,000 70,000 66,900

Run of page (front section) 4,500 35,000 33,500

Run of Page (Full Directory Page) 3,000 23,600 21,900

Color Corporate Logo Enhancement 1,650 12,500 11,900

Premium Positions

Bookmark 10,000 78,000 74,400

Outside Back Cover 9,000 70,000 66,900

Inside Front Cover 7,700 60,000 57,200

Inside Back Cover 6,690 52,000 49,700

Facing Content Page 7,800 60,000 57,300

Facing Member Listing 3,600 28,000 23,000

1st section Guangdong page (outside) 6,680 52,000 49,600

1st section Guangdong page (inside) 6,420 50,000 47,700

2nd section Hong Kong page (outside) 6,680 52,000 49,600

2nd section Hong Kong page (inside) 6,420 50,000 47,700

* Color Corporate Logo Enhancements are offered for free with purchase of a full page ad


A s t h e u b i q u i t o u s m e t a l

hoard ings, t ra ff ic d ivers ions

and “men at work” signs sprout

unabated across Hong Kong,

good const ruct ion P lann ing

Engineers are increasingly in

demand. What is construction

planning & how can a career in planning engineering be

embarked upon?

Construction Planning V Scheduling

Now, there’s often confusion, particularly among non-

planners between the terms “planning” and “scheduling”.

Planning is the process of identifying all activities

necessary to complete the project whilst scheduling is the

process of determining the sequential order of activities,

assigning planned duration and determining the start and

finish dates of each activity. Planning is a prerequisite

to scheduling because there is no way to determine the

sequence of activities until they are defined. They are

performed interactively and it is generally accepted that

those who cannot plan cannot create a good project

schedule. The construction schedule will be a plan

which organizes the tasks that must be accomplished

in a logical sequence to successfully complete the

objective in an effi cient manner with available resources

and conform to the framework prescribed by a contract,

specifi cations, drawings, and other documents.

Why is the Construction Planning Function so important and well paid?

Construction planning plays a critical role within the

Hong Kong built environment due to the current

construction boom leading to a massive skills shortage

of qual i f ied and experienced people – including

planners. Schedules developed with the most

advanced and up to date scheduling software can

be indispensable in the performance of the planning

function and the successful outcome of the project.

Such critical input inevitably carries premium salaries

throughout the planning career ladder.

Richard Poulter, Director, Maxim Recruitment

Why Are Construction Planning Why Are Construction Planning Engineers so important and well paid?Engineers so important and well paid?

B u s i n e s s


Primavera Planning Software

The Hong Kong construction industry uses “Primavera

P6” extensively. This is described as complex project

management software for construction companies

which allows users to set goals, measure progress,

control costs and evaluate performances by individual

contractors and suppliers.

Creating a good construction plan is an exceptionally

challenging problem. Having experience is a good

guide to avoiding major mistakes in the successful

planning and scheduling of a construction project,

however each project typically has its unique set of

problems and opportunities to overcome or exploit.

The Three Stages of the Construction Plan

Broadly speaking, there are 3 stages to the construction

plan:

1. The Estimate Stage:

This is where a cost and duration “estimate” is

developed for the construction of a facility as part of the

proposal from a contractor to an owner. Assumptions

of resource commitment to build the facility are made

by the planner. The planner must look for the best

time-cost combination to allow the contractor to be

successful in his commitment. Too high an estimate

and the contractor will not be awarded the job, too

low an estimate and the contractor will win the job and

lose money in its execution. The planner must deal

with the “uncertainty” here.

2. The Monitoring Stage:

This is where management must keep a close eye

on duration of construction activities as well as

ongoing costs. Because the work is on schedule

it doesn’t mean the cost is on estimate. Constant

evaluation is necessary unti l the construction

process is complete and evaluation can begin.

3. The Evaluation Stage:

This is where the results are compared with the

estimate and its validity is evaluated, and where

the planner determines whether the “assumptions”

made at estimate were correct. If new constraints

emerge then corresponding adjustments should be

introduced in future plans.

The increasing avai labi l i ty of 3D models has

facilitated their use in a process known as “4D

planning”. 4D construction planning is a process

which enables clear visualisation of a construction

programme as an animated sequence. 4D models

are created by linking 3D CAD data with one or more

programmes. This visualisation is then automatically

updated any time the programme is updated. The

benefi ts of this include:

• Better communication with stakeholders

• Improved visibility and clarity of planning

• More dynamic and integrated programme

meetings

• More effi cient and immediate review of different

programme options

• Increased fl exibility in detail of output

How to Join the Planning Community

Planners are perceived as a “close knit” community

of specialist engineers with an often eclectic mix of

qualifi cations. Getting into planning can be an excellent

career move. Engineers that enjoy problem solving and

have an aspiration to manage others should seriously

consider it. Although foundation degrees in “Project

Controls” are becoming available there are few formally

recognized qualifications for the professional planner.

This can be seen as an opportunity for an engineer or

other construction professionals to seek out a greater

focus on the duties and responsibilities of a planner as

part of their existing role & progressively move across

to becoming a dedicated planning engineer over time if

things work out for all concerned.



VAT recovery may not be the most exciting thing

in the world but when executives realise how much

money is needlessly spent filling the coffers of UK &

EURO governments; VAT can suddenly seem like a

topic worth discussing.

In order to encourage trade, the European Union

VAT Legislators granted business entities the right

to reclaim the VAT incurred on serviced related

expenditure across mainland Europe and the UK since

the formation of the EU.

The VAT incurred on expenses such as accommodation,

restaurants, transportation, car rental, trade shows,

conferences, training courses, seminars and professional

fees ranging from marketing and advertising to legal

costs are all reclaimable. Business trips, incentives tours,

trade show fairs, business jaunts or conferencing circuits

can be large portions of your business expenditure and

can be minimized by the claiming back of indirect taxes.

Over the last year the UK has hosted the 2012 London

Olympic and Paralympic Games, the Royal Ascot Horse

Racing Carnival, the Diamond Jubilee of Queen Elizabeth,

the Wimbledon Grand Slam tennis tournament as well as

some of the world’s largest trade fairs and conferences

attracting over US$53.9 billion of foreign investment for

the last fi nancial year.

However, every year millions of pounds are lost in

unclaimed foreign VAT with Hong Kong businesses

amongst the thousands of companies’ worldwide not

reclaiming funds that are essentially theirs. Imagine

someone taking 20 per cent of the cash in your wallet

every time you went into a hotel or restaurant; this is the

closest example as to how your business is losing out by

not implementing VAT recovery processes.

The tax refund system is aimed at leveling the playing

fi eld for small and medium sized businesses to be able to

compete with the larger organisations within the EU but

for companies outside the EU it purely provides the ability

to reclaim the tax – benefi ting all companies.

As VAT reclaim is seen as recouping costs and not

a direct cost saving through cutting expenditure

businesses can overlook the ways to minimize costs and

return expenses. The main reason businesses currently

aren’t implementing the tax reclaim solution is due to

not knowing that the refund system exists. This is a tax

that most governments haven’t had substantial claims

to refund since its establishment and continually benefi t

from the millions of pounds of unclaimed tax revenue,

hence, no reason to promote extensively.

Turning today’stomorrow’s

eb

B u s i n e s s


VAT recovery is not aimed at specific industries but at

the greater business community to entice investment

and drive the economy which we are currently also

seeing increased VAT rates due to government tax

rise similar to the UK’s hike in 2010 from 17.5% to

20% on all services.

Currently, Hong Kong businesses with strong economic

links to either businesses in the UK and mainland

Europe or investment in those areas are not fully utilizing

methods of cutting costs and returning expenses to their

bottom line.

Hong Kong remains the UK’s 3rd largest Asian trading

partner and 13th largest export market worldwide

stemming from the Colonial l inks and continued

strengthening economic ties. These links also encourage

an increase in the amount of foreign investment and

travel between the two nations as two of the most

infl uential economic hubs in the world.

As these numbers continue to rise, the amount of VAT

incurred across the UK and mainland Europe by Hong

Kong businesses that isn’t being reclaimed is growing

and most businesses don’t realize they have the legal

right to these funds. British and European companies

located in Hong Kong are some of the main benefi ciaries

of VAT recovery as the travel back to the ‘homeland’ can

add up signifi cantly.

Questions that need to be asked of your business are

A) Does your business travel to Europe and the UK,

Taiwan, Japan, South Korea or Australia? B) Do you

have expenditure on previously mentioned service

related products including accommodation and

entertainment? If the answer is YES to any of these

questions, you can begin to look at how VAT reclaim

can benefi t your business.

Other VAT refund schemes in place for Hong Kong based

businesses with a global reach are Tour Operator VAT

refunds, Import VAT reclaim, Telecoms & Aviation refund,

Mineral Oil Tax refund, US Mobile Roaming Charges

reclaim plus the ability to reclaim GST from Australia, VAT

from Taiwan and South Korea and the JCT from Japan.

The real ity is that VAT recovery is a cost saving

measure that has not yet been implemented by all

Hong Kong businesses, businesses that are becoming

increasingly reliant on the partnership between these

two nations. Essentially, the taxes incurred are the

businesses to be recovered; it is just a matter of

putting the processes in place to ensure companies

are reclaiming the VAT in full.

ss

expenses intobottom line

Alex Oxford

Foreign Tax Consultant, VATit (Hong Kong) Limited



Supply Chain Ecosystems

As a resu l t o f recen t and rap id

developments in worldwide commerce,

we have seen supply chains evolve into

complex international networks, which

can no longer be adequately described

using the linear concept of a ‘chain’.

The depth and breadth of complexity,

connectivity and inter-dependencies

invo lved in today ’s in te rnat iona l

commerce has resulted in the emergence

of ‘Supply Chain Ecosystems’ – globally

inter-weaved, multi-layered networks of

partners, suppliers, regulators, service

providers and customers.

W i th i n t hese ecosys tems , each

confi guration is unique to the particular

enterprise that owns that supply chain.

The ecosystem’s chosen participants

are all coupled together for the common

purpose of providing an end-to-end

channel of distribution – all the way

from the suppliers of materials and

components , ex tend ing th rough

manufacturing processes – whether

Empowering Empowering Global Global Supply Chain Supply Chain EcosystemsEcosystems

in-sourced or outsourced – to the

distributor and retailer, and ultimately to

the consumer.

Each commercial enterprise forms their

own distinctive supply chain ecosystem,

adopting a different composition of

similar participants, or in several cases,

particularly within industry sectors, many

of the same participants.

And so it goes on, such that numerous

m u l t i - l a y e r e d c ro s s - e n t e r p r i s e

connections generate a complex web of

There are increasingly blurred boundaries within-and-across the complex

international organisations that companies deploy in order to efficiently plan,

source, make and deliver their products – such that we are now firmly in the

domain of global Supply Chain Ecosystems.

On the basis that these modern-day supply chain ecosystems inevitably involve

several organisations working together for a common purpose, then by nature

of comprising multiple participants, modern-day supply chains must inherently

involve outsourcing in one form or another.Mark Millar

B u s i n e s s


interdependencies, frequently spanning

the globe, in order to optimise the three

critical attributes that drive differentiation

within the supply chain ecosystem –

speed, agility and resilience.

As modern supply chains increasingly

resemble complex ecosystems rather

than l inear chains, the suppl iers,

manufacturers and service providers

that work together to service one

client’s supply chain, may in fact be

fi ercely competing against each other to

win business to provide services for a

different client’s supply chain.

Indeed, whilst each company has their

own supply chain ecosystem over which

they have control, that same company

will most likely be a participant in several

other supply chain ecosystems, for

example for its customers and suppliers.

For global businesses, the supply

chain is increasingly becoming a key

source of competitive advantage and

differentiation. Brands need supply

chains that enable and empower

them to get their product to market

more efficiently and faster than the

compet i t ion. Businesses are now

competing on the basis of their supply

chain management capabilities almost

as much as their product or their brand.

In this context, organisations must

develop the capabilities to effectively

work with multiple partners in order to

successfully operate and execute their

supply chain ecosystems, thus leading

to an increasing trend to supply chain

outsourcing.

Supply Chain Outsourcing

Defined as ‘the act of one company

contracting with another company to

provide services that might otherwise

be performed by in-house employees’,

outsourcing is generally undertaken in

order to benefit from using an external

provider – typically through gaining

economic advantages and leveraging

specialist expertise.

In our globalised world, outsourcing

is often confused with offshoring.

However outsourcing is still outsourcing

irrespective of where the outsourced

services are actual ly performed –

whether onshore or offshore. Offshoring

refers to moving business activities

out of the existing host organisation to

another location in a different country –

in many cases to an outsourced partner

(Outsourced Offshore), but in some

cases to a subsidiary division of the

same company (Offshore).

Adopting the Tom Peters mantra “Do

what you do best and outsource the

rest”, organisations have taken the

approach of focusing on their core

Industry thought leader Mark

Millar has been engaged by clients

as Speaker, MC, Moderator or

Conference Chairman at more

than 240 functions in 20 countries

and is recognized by the Global

Institute of Logistics as “One of the

most Progressive People in World

Logistics”; Mark serves as Chairman

of the Logistics Committee at the

British Chamber of Commerce in

Hong Kong. [email protected]

competencies whilst seeking external

partners to undertake activities that are

non-core and that can be undertaken

by th i rd par ty serv ice prov iders .

Outsourcing partners typically have

specialist expertise and the economies

of scale that enable them to deliver the

required results better and cheaper than

could be achieved by the client using

their own in-house resources.

These trends have led to industry sub-

sectors of firms providing outsourcing

services, including call centres, fi nance,

payroll, telecommunications, computing

and of course transportat ion and

logistics.

In addition to leveraging the scale

economies that result from servicing

multiple clients, these focused service

providers also nurture and develop

specialist subject matter expertise,

doma in know ledge , s t reaml ined

processes and technology platforms

that are above and beyond levels that

any single organisation could develop

in-house.

There in the va lue proposi t ion for

outsourcing – contracting out your

business processes to a specialist service

provider that can perform those services

more effi ciently and more cost effectively

than you could do yourself, enabling

your organisation to focus its precious

resources on your core competencies.

We can expect further collaborative

ou t sou rc i ng deve l opmen ts t ha t

will empower efficient and effective

performance in global supply chain

ecosystems.



London Gateway is envisioned to turn London’s

newest port into a 21st century logistics facility, a major

hub and port of entry for goods coming into the UK, and

for goods destined for onward transition to Ireland and

Continental Europe.

Opening in Q4 2013, this brand new, world class 3.5

million TEU deep-sea container port is currently under

construction on a 1,500 acre disused brown field site,

located just 25 miles from central London on the former

Shell Haven oil refi nery at Stanford-le-Hope. With a 2.7

km frontage on the north bank of the River Thames, a

total of six berths with 24 quay cranes will serve a 175

hectare terminal area.

London Gateway will combine a world-class deep-sea

container port together with Europe’s largest dedicated

logistics park to create a state-of-the-art Port and

Logistics Hub that is located within easy reach of all three

London international airports at Heathrow, Gatwick and

Stansted. Hinterland connectivity is enabled through

comprehensive multi-modal transportation capabilities

that seamlessly connect the deep-sea container port

facility with short-sea feeder services, on-dock rail

terminal with at least four rail freight services per day

and a newly constructed dual-carriageway providing

direct connections into the UK motorway network – all

providing access to markets in London and the south

east, and further afield throughout the UK, Ireland and

Continental Europe.

In order to maximise efficiencies in, and minimise the

costs of, the end-to-end supply chain from “origin to

destination”, London Gateway will deploy the ‘smart

solution’ platform called PortCentrics. This is a unique

logistics platform in the UK that enables and empowers

more effective supply-chain management and increases

effi ciencies by eliminating the unnecessary handling and

movement of goods, reducing the primary and secondary

trunk movements, minimising inventories in transit, thus

improving time to market, lowering distribution costs,

saving road miles and improving carbon emissions.

Within the container port, London Gateway wi l l

adopt the latest technology solutions featuring highly

automated systems and intelligent tracking, which will

provide customers with fast identification and retrieval

of containers, as well as optimising stack management

to hold and control containers to more efficiently meet

customer demand.

London London Gateway –Gateway – changing the UK Logistics Landscape

B u s i n e s s


With Europe’s largest logistics park situated next to the

port, many of the goods offloaded at London Gateway

will move immediately into facilities within the logistics

park, instead of being transported to another part of the

UK for storage, reworking and distribution, thus saving

many road miles whilst reducing costs and emissions.

DP World has estimated that the improved efficiencies

in the logistics supply chain will save thousands of truck

movements per day off the national highways. The

project should result in environmental benefi ts of reduced

lorry movements of over 60 million miles per year –

equivalent to 148,000 tonnes of CO2 savings per annum.

Logistics Park

The vast majority of deep-sea imports currently enter

the UK through container ports in the South East, yet

only 10% of warehousing and distribution facilities are

located in the South East. The London Gateway project

has planning consent for 940,000 m2 of logistics and

distribution facilities within the Logistics Park – adjacent

to the new deep-water container port. Individual units will

be offered of up to, and in excess of, one million square

feet, designed and built to specifi cation, providing world-

class facilities for the distribution, manufacturing and

high-tech sectors.

With its unique location on the Thames, London Gateway

therefore offers signifi cant supply chain savings for global

businesses through reduced transport costs created by

having warehousing at the port of entry and closer to the

key UK consumer markets.

London Gateway Proposed Layout

DP World London Gateway has appointed Jones Lang

LaSalle as sole property agents for what is the largest

logistics park development in Europe. Jones Lang LaSalle

will provide specialist advice in the property sector to

support the delivery of the London Gateway logistics

park. Tim Johnson, Director in the UK National Industrial

& Logistics Team at Jones Lang LaSalle said: “London

Gateway has the potential to transform logistics operations

in the UK by offering a port-centric logistics solution at the

heart of the UK’s largest consumer market.”

“The logistics park is a unique proposition offering the

potential to provide some of the largest and tallest

buildings in Europe. There are 15 million consumers

located within 80km of the site and this underpins our

view that London Gateway is simply the best location for

UK supply chain solutions.”

London Gateway will therefore offer a faster, more reliable

and greener way to transport goods to their destination,

compared with existing supply chain models. Analysts

have estimated that over 60 million road freight miles

every year will be saved, because many goods will no

longer need to be transported from deep-sea ports to

inland distribution centres. Instead, goods will fl ow quickly

and easily from London Gateway port into the adjacent

logistics park for subsequent onward distribution directly

to shops and homes.

The London Gateway executive team will be presenting

the latest updates at various briefings during their

forthcoming Asia Road Show - for further details contact

Mark Millar in Hong Kong, [email protected]

London Gateway Construction July 2012



Sir Arthur Conan Doyle and I went to the same school. Not at the same time, but we both

sat in the same classroom and on the same bench in

church. My school was a jolly fine school. They taught

us the great art of Rugby (our history teacher coached

the England team to victory in 2003), they taught us

how to reason in debate and they taught us how to

handle physical pain like a gentleman. We also learnt

about starvation and how to survive hypothermia in the

unheated classrooms and dormitories. Overall it was a

balanced education, that seemed to produce results.

One of my contemporaries runs the BBC, another is a

Member of Parliament, a third recently received a Tony

Award for a play he directed and someone a few years

younger, here in Hong Kong, is the Chief Executive’s right

hand man.

However what our school did not teach us, was the fi ne

art of making and handling money. There were no classes

on how to get more of what you have or how to avoid

losing what you have earned. This was an elementary

failing in our education, Dr. Watson!

Here are a few fi nancial maxims that I try to instill in my

children over the dinner table.

Rule #1 Buy Low and Sell High: Buy Low and Sell High: My Chinese colleagues always seem to be selling when the market

is dropping. They look at me as if I’m mad when I tell

them to buy more as the prices tumble. If you have a

good stock where the company’s fundamentals are solid

then you should love a falling market. Take HSBC: this

morning they are at 60. A few years ago they were close

to a 100. The bank is well-run and is very conservative. If

I bought 1 million HKD worth of shares now and held on

Do you have any idea what to do with your money?

Sit on Your CASHCASH,Wait for the CRASHCRASH

to them, it is likely they will be up to a 100 again within 2-3

years. Once they are at a 100, I may sell, having made

about 600,000 HKD profi t. But you have to be patient.

Capitalism works on the principle of boom and bust.

The markets fl uctuate. They have to go up and down in

cycles, otherwise smart investors would not be able to

make big money. Since I’ve arrived in Hong Kong I have

been through fi ve Global or Asian Economic Crises (1987,

1997, 2001, 2008, 2012) and we’ll have a few more to

be sure.

The same applies for property. We are now at an

unprecedented high for local properties. They may

correct by 10-15% when CY Leung implements some

cooling measures or they may crash 50% if we have a

‘Black Swan’ effect – an unpredictable event that spooks

the markets such as 9/11 or SARS. The day after 9/11

a friend acquired a very large stock position in Cathay

Pacifi c which paid off nicely a year later.

Rule #2 Pay Yourself First: The best savings advice nobody gave me until I figured it out eventually, was

to take half of my salary on the first day of the month

and buy shares or mutual funds with it. If you don’t see

the money in your account, you will not be tempted to

spend it on fancy dinners, fi ne wine, cool cars or swanky

electronics. Don’t wait until the end of the month. Set

up a direct debit on the fi rst day of the month and adjust

your lifestyle to live within your means.

Rule #3 Understand the Magic of Compound interest: Those of us who are not maths prodigies

cannot comprehend how powerful compound interest

can be. If you put the same amount of money into a

monthly investment account you will receive interest on

Chris Riley, Founder and Managing Director, Sercura

B u s i n e s s


the interest. Regular monthly savings are the secret to

getting rich by the time you are ready to retire. Assume

you save 10,000 HKD per month/ 120,000 HKD per

year at 10% interest that would be 132,000 HKD by the

end of the year. The following year you add 120,000

HKD to the 130,200 HKD plus 10% interest on the

total. Now take a spreadsheet and extrapolate that

over 20 years. The end result is impressive. It really

starts snowballing after a few years. If you think 10%

interest is high, here is a fact: Over the past 90 years,

the US stock market has generated returns exceeding

9 percent annually. London and Hong Kong have

performed similarly over the long-run. Buy into the Hong

Kong Tracker Fund 2800 which follows the Hang Seng

Index and you will match the market’s returns which

over the last twenty years has been consistently up,

despite the occasional big drop.

Rule #4 Understand the Magic of Dollar Cost Averaging: Once you have seen how compound interest

works you can also relate to this rule. Let’s assume you

buy China, Light & Power shares (in the last two years

they have gone from about 50 up to 75 and are around

60 currently). Every month you buy 5000 HKD worth of

shares. When their value is down you get more for your

money, when their value is up you get less shares. But

over a period of several years you will get more for your

money than by trying to be clever and watching the

market daily. Set up a standing instruction and check

your portfolio once a year.

Rule #5 Only invest in what you understand: This is the classic Warren Buffett line and he’s been successful

with it. I can relate to property because it is tangible and

moves up and down slowly. I have an idea how banks,

airlines and power companies work because I am a

customer. But I have no idea how complex structured

investment products work. Nor does the fi nancial adviser

trying to sell them to me, so best stay away from these

unless you’ve missed the boat to Macau and need a

gambling fi x.

Rule #6 Buy shares that give you a dividend payment: HSBC, Hang Seng Bank, China Light &

Power, Sun Hung Kai and Cathay Pacifi c are among the

top dividend payers in town. Remember that when you

buy shares you are a part-owner of the business and are

entitled to a share of the company’s profit. 5% annual

dividend is about the same return as you would expect

on a property rented out in Hong Kong.

Rule #7 Don’t keep all your eggs in one basket: Diversify your investments in order to balance potential

risk. Keep some money in shares, some in mutual funds,

some in bond funds. One rule of thumb is to keep a

percentage of your portfolio equal to your age in bond

funds. Currently shares are doing poorly but property

in Hong Kong is doing great. Don’t buy two fl ats in the

same building. Spread them out in case there is a fi re or

a rash of bird fl u in your building, which will reduce your

returns in the short term.

Rule #8 Don’t be scared by the bogeyman of Inflation: Financial advisers love to tell you that if you

don’t invest your money it will simply evaporate because

of infl ation. There is an element of truth in this but only

over the long-term. If you had 1 million HKD in your bank

account and inflation is 3% a year, notionally you will

have lost 30,000 HKD buying power over a year. Let us

put this in perspective: If you drink two grand Lattés at

Starbucks per day it will cost you about 30,000 HKD per

year. Stop going to Starbucks and you’ve made up for

the infl ation. 1 million HKD in your bank account is still 1

million HKD. But if you hand it over to an unscrupulous

financial adviser there might only be half a million HKD

left in your bank account.

Rule #9 Hold some properties that are not owned by the bank: I am always amused when people

tell me they own several properties but on questioning

it turns out that in fact they have a 70% mortgage

on every property. The fact is they do not own the

properties. The bank does and can always take them

back. If you have the luxury of cash it is best to have

at least two properties that you own outright: one

for you to live in, one to rent out and provide a rental

income that is generous enough to cover your monthly

expenses. This is a disaster hedge in case you lose

your job or want to retire early. A beachfront property in

Phuket and a Mid-Levels fl at rented out would do nicely.

For any further properties, leverage them and wait for

the capital appreciation, keeping the rental return to pay

the mortgage since currently we are borrowing money

so cheaply.

Rule #10 Nobody cares more about your money than you do: Although I am a fan of HSBC shares I

am not impressed by their investment expertise. My

personal relationship manager looks as if she is about

fourteen and can barely speak English. If that is the

best they can do I can't take them too seriously and

so I keep my savings at a small private bank in Zurich.

My relationship manager is a middle-aged Swiss fellow

with a certain gravitas who is able to explain in words of

two syllables what the markets are doing, so that even

I can comprehend. Nevertheless I don't let him manage

my money. Unless you have huge sums and don't mind

losing a bit here or there, it is best you manage your

own money. Take advice from bankers by all means but

make your own informed decisions.

I called around all my banker friends In the last few weeks

and asked them what they were doing with their personal

investments. Most of them are sitting on their cash and

waiting for the markets to crash, so they can jump in and

get bargains at low prices.

Christopher Riley is the owner of Sercura, a global

quality and compliance company that provides product

inspection and factory audit services to retailers and

their suppliers manufacturing around the Asian region.

www.sercura.com



It was the Olympics that got me thinking about the

astonishing escalation in the cost of big projects. The

London Olympics 104 years ago, in 1908, cost a

grand sum of £20,000. By the next London Olympics,

in the austere postwar environment of 1948, they

cost £750,000. The Danny Boyle Olympics in London

this summer cost £11 bi l l ion. However you play

with inflation over 104 years, that is an astonishing

escalation in the price tag.

Needless to say, this phenomenon is far from a “UK

thing”. As a well known English language columnist in

Hong Kong whined this week, the third runway at Chek

Lap Kok airport is budgeted at HK$86 billion, and is

expected to cost HK$136 billion in the dollars of 2020

when planes are due to begin landing on it. This would

be very close to the total cost of all of the projects

linked with building the original Chek Lap Kok airport

– which when it opened in 1998 included not just the

two-runway airport and associated airport buildings but

the 35 km Airport Express MTR line, and the HK$6.5

billion Western Cross Harbour Tunnel.

When I began to think further, the problem proliferated.

London’s Victoria MTR line, built in the 1960s, cost

about Pounds 4.38m per km. Ten years later, the

Jubilee line in London cost Pounds 22.5m per km —

The megacost of megaprojects The megacost of megaprojects

and the Jubilee extension in the 1990s cost £225m per

km.

Up in Scotland, the famous Forth Bridge l inking

Edinburgh to Fife cost £3.2m in 1890, but a second

road crossing in the 1960s cost £19.5m — and a third,

now being budgeted, is expected to cost £1.6 billion.

Look at Hong Kong’s MTR and you see simi lar

hyperinfl ation: the Kwun Tong line completed in 1979

cost about HK$384 million per km, but the purple

Tseung Kwan O line, finished in 2009, cost HK$2.5

billion per km, and the Shatin Central line, due to begin

operation in 2018 was costed in 2011 at HK$3.8 bn

per km.

The cross harbor tunnels provide further fascinating

examples: the original Hung Hom tunnel, opened in

1972, cost about HK$172m per km, but the Eastern

Crossing, opened in 1989, cost HK$1.5 billion per km

and the Western Crossing which opened in 1997 cost

HK$3.2 billion per km — and would undoubtedly have

been more expensive had it not been built as part of

the bundle of Chek Lap Kok airport projects.

Away f rom t ransport , the Hong Kong Olympic

Equestrian Centre, completed in 2008, cost HK$1.2

David Dodwell, Chief Executive, David Dodwell, Chief Executive,

Strategic Access LimitedStrategic Access Limited

B u s i n e s s


The megacost of megaprojects

billion, while the Kai Tak Sports Complex that is being

discussed for the 2018 Asian Games is currently price-

tagged at HK$19 billion.

Pretty much wherever you turn over the stones on

the costs of megaprojects, the same phenomenon

appears. So why is it that costs have spiraled so

extravagant ly? Obviously, much has to do with

the pol i t ical empowerment of our communit ies.

Apparently, when the first Forth Bridge was built,

hundreds died in the construction, but as safety

concerns have tightened, so costs have risen. Many

of these costs are linked to acquisition of land, and

this seems to have become progressively more diffi cult

over the decades. The process of acquiring land

not only costs money in a direct sense, but the time

required to negotiate land purchases has lengthened

projects and extended costs. Regulatory compliance

costs have also spiraled: anyone who spectated on

the Environmental Impact Assessment for the LNG

Terminal proposed for the Sokos Islands, for example,

could not but be in awe of the rooms full of documents

submitted by China Light and Power and their teams

of legal drafters.

It is perhaps not surprising therefore that megaprojects

on the Mainland remain significantly cheaper than

Hong Kong or UK counterparts. Putting carefully on

one side the rising concerns over collapsed bridges

or “tofu buildings” on the Mainland, and the shadow

of corruption (the construction industry is after all

worldwide recognized as the sector most heavily

burdened by corruption): Guangzhou’s Baiyun airport,

opened in 2004, cost about HK$24 billion — one third

the cost of the Hong Kong International Airport. The

offi cial audit cost for the 2008 Beijing Olympics came in

at HK$24 billion:

the London Olympics cost fi ve times as much. Beijing’s

subway line No 10, completed for the Olympics, cost

about HK$800m per km — a quarter of the cost of

Hong Kong’s Tseung Kwan O line.

Even if you don’t put much faith in China’s numbers,

it is clear that regulatory costs and delays contribute

strongly to the hyperinfl ation of megaprojects. This has

created a feast of opportunities for consultants and

financiers – largely at the cost of taxpayers. But as

megaprojects have become more mega, so the number

of global contractors deemed capable of managing

them has dwindled. As competition has dwindled,

perhaps unsurprisingly, prices have risen. A happy elite

band of contractors have clearly done very well out of

this process.

Is there anything that can be done? Clearly, the trend

is toward more regulatory scrutiny rather than less. But

it would surely help if the (largely public sector) clients

commissioning megaprojects were more expert than

they currently appear to be in setting specifi cations and

scrutinizing tenders. Experts say that it helps if clients

resist the temptation to change specifications mid

contract — and if they carefully distinguish wants from

needs, and do not insist on the very latest technologies

or highly idiosyncratic specifi cations unless they clearly

fall into the “need” category. Look, for example, at the

UK’s aircraft carrier Ark Royal. This ship was originally

built in the 1930s for £3m. It was sunk in 1941, and the

replacement launched in 1981 cost £250m. I read that

a new Ark Royal in the UK would today be budgeted

at £3.5 billion — in large part because of the military

establishment’s efforts to ensure it carries the very

latest defence technologies.

We can only be grateful in Hong Kong for the small

mercy that we have no army, navy or air force to

equip, and can leave this hyperinfl ationary headache to

Beijing. But then, even with Ten megaprojects on our

hands, we have budgetary headaches enough.



Earlier this year the UK Government announced far-

reaching proposals to change the way that non UK

companies which owned UK residential property would

be taxed. Previously these companies, like non UK

resident individuals, had not been liable to pay Capital

Gains Tax (CGT). Under the new proposals this would

change and those companies would now be subject to

CGT, broadly calculated on the difference between the

acquisition value and the disposal value.

There are many companies who acquired UK property

many years ago so their base value for CGT purposes will

be very low. On resale of the property those companies

are going to face a very heavy tax bill.

Additionally, companies which own a property worth

more than £2 million will now be subject to an annual tax

which is being referred to as “Mansion Tax”. The amount

will vary according to value but will be a minimum of

£15,000 and a maximum of £140,000.

These charges are going to greatly impact on the

investment value of such properties. Both charges can be

avoided by transferring the property from the company

to individual owners but, particularly for older buyers or

those in poor health, that will not be attractive as it will

mean that the property is subject to UK Inheritance Tax

(IHT) at 40% of the total value if anything happens to the

owner. Obviously it won’t concern the owner themselves

as the charge will only be triggered when they are past

caring but many will be concerned to try and preserve

wealth for the benefit of their family and heirs. For that

reason, individual ownership will only seem interesting

if the ultimate owners are young and/or intending to

sell the property sooner rather than later. Those owners

are likely to be in the minority. Insurance is likely to be

an alternative way of covering the IHT but is likely to be

expensive especially for older owners.

HMRC did announce some exemptions from the new

charges. More detail of those exemptions have now

emerged so the planning opportunities have now

become clearer.

The first exemption announced was that professional

trustees holding residential property would not be subject

to the new 15% rate of Stamp Duty Land Tax (SDLT) that

was introduced in April this year. They will also be exempt

from the Mansion Tax but there is no general exemption

from the new CGT charge which previously did not

apply to non UK residents. Exemption from CGT can be

obtained if the trustees and a benefi ciary occupying the

property both claimed Principal Private Residency relief.

Offshore Companies Owning Uk

Residential Property Need To Take Urgent Action

Howard Bilton,

Chairman, The Sovereign Group

B u s i n e s s


This would normally apply where the property is occupied

by any benefi ciary or any number of different benefi ciaries

of the trust. CGT might also be avoided by “selling” the

property by changing the beneficiaries of the trust or if

the trustee was a private trust company by changing the

ownership of the trustee or by both. In fact there appear

to be so many potential ways to avoid CGT and so many

difficulties in collection that the latest rumour is that

HMRC may decide not to introduce this new extension.

At this stage it would be unwise to assume that CGT will

not apply.

Discretionary trusts are subject to a ten yearly charge

which could be as much as 6% of the capital value of

the property. This is an attempt by HMRC to claw back

some of the 40% IHT which is lost if UK property is held

within trust. The way the ten year anniversary charge is

calculated is complicated so 6% is certainly the maximum

but it will generally work out to be between 3% and 6%

depending on value and other circumstances. Luckily

this charge is only payable on the equity in the property.

If loans are used to purchase the property, the tax is

payable only on the difference between the capital value

and the loan amounts. For this reason it seems as though

a two trust structure may give the best of all worlds. One

trust, set up by a non-UK domiciled person, can receive

the capital amount needed to purchase the property. That

amount is then loaned to another trust which actually

buys the property. The loan amount is then deducted from

the value of the property for the purposes of calculating

the 10 year tax. The loan could be sufficiently large to

reduce the tax to a nominal or zero amount.

The above does not work for those who are sti l l

domiciled in the UK because the transfer into trust

would trigger the lifetime IHT charge of 20%. For UK

domiciled persons it is better to use a Qualifying Non UK

Registered Pension Scheme (QNUPS). A QNUPS is a

pension trust that enjoys special UK IHT treatment. The

pension trustees (typically corporate trustees) are exempt

from the new 15% SDLT charge and from the Mansion

Tax. A QNUPS is not subject to the ten year anniversary

charge. The terms and conditions necessary for the

trust to qualify as a QNUPS do mean that access to the

capital is somewhat restricted. The property can be sold

and the money can be re-invested in another property

or anything else allowed for under the pension rules but

the pension holder would only be able to take the money

out of the QNUPS according to the rules of the scheme.

Those rules normally allow the pensioner to take a lump

sum out on retirement and then the rest in drawdown.

That restriction may not suit everybody so the trust

structure will be preferable for non doms.

Happily, a gift by a non UK company to either a trust or a

QNUPS can be made free of SDLT as long as there is no

mortgage in place on the property. If there is a mortgage

then SDLT is payable on the mortgage amount so the

transfer could prove expensive to do now but will result

in large savings in the future.

Trusts owning residential property are subject to higher

rates of tax on rental income. They pay up to 50%. To

reduce the tax on income the income rights can be

vested in an offshore company wholly owned by the

trust when the property is acquired. The tax rate is then

reduced to 20%.

Anybody who owns UK property worth £2 million or

which may become worth £2 million in the future should

take action now. There is a window of opportunity to

rebase the capital cost as long as this is done before

April next year.

Howard Bilton is a UK and Gibraltar barrister, Professor

of Law at Thomas Jefferson School of Law, San Diego

and Chairman of The Sovereign Group.



Delivering our recent oversubscribed Networking

seminar for a cross section of the HK business

community, Fraser Murray asked the audience at the start

of the event why they felt the need to be even better at

networking, particularly as Hong Kong is already known

for being a hotbed of networking. The answer……whilst

many people are great at networking socially.... turning

good social networks into business growth is for many of

the audience, much more challenging!

In this article Fraser, Talent expert and MD of Rock The

Boat, shares his top tips for effective business networking.

Many people find it challenging meeting new people

at a business event, conference or training event.

Whether you’re job hunting or looking to develop new

business contacts, the initial approach can be quite a

daunting experience, but it doesn’t need to be! With a

few simple tips and some preparation, you can make

networking enjoyable and with the right connections,

there are a few things you can do to increase your

chances of doing business with your new network

contact in the future. Just one or two changes in your

approach could land you that new business deal, or

new job!

TOP TIPS for EFFECTIVE BUSINESS NETWORKING

Fraser Murray, Managing Director,

Rock the Boat Consulting

”NETWORKING IS LIKE PLANTING

BAMBOO…..It takes a long time to grow but

when it does it’s very strong!”

– Fraser Murray

B u s i n e s s


Why might you want to network more effectively?

In the current economic climate, selling your product

or service is a tough challenge; therefore networking

has become an even more valuable skill to possess

than ever before. Does that mean that you need to

become an extrovert social butterfl y, fl uttering around

the room, meeting as many people as possible?

No, not at all! Not all extroverts are successful at

translating network contacts into new business. Both

extroverts and introverts can learn to be even more

effective at networking. Networking is one of the most

successful and cost effective ways to generate new

business leads. Becoming brilliant at networking isn’t

just useful, for many businesses it’s critical and can

be the difference between success and failure. As well

as new business and contacts, you could be picking

up useful information about what’s going on in your

sector.

Trust is one of the most critical requirements in selling

effectively and without it, few people will buy from you

and certainly even fewer will recommend you to others!

People buy from people they know, they rate highly and

they like. I ran a session recently for a group of MBA

students who tried to convince me that people didn’t

have to “like you” to buy from you. On refl ection, they are

possibly right, but in my experience, “being liked as well

as highly rated” certainly helps!

1. Prepare in advance

• Set your objectives

Find out who will be attending the event. Decide

who you would like to target and what you would

like to take away from the event, how many quality

contacts and in relation to what? Having a specific

goal will ensure that you remain focused and will have

success.

• Get yourself in the right frame of mind for any

networking opportunity

Prepare well. Nobody is that interested in what

you wear as long as you are not hugely under or

over-dressed. Relax and remember to try and fi nd

out more about the other person and you’ll be

fi ne. Hold your head up, tummy in, chest out and

project your voice slowly and with confidence.

If you’re nervous, think back to a time, anytime,

when you were at your most confi dent. Remember

how it felt, feel the confi dence, imagine the scene

and now take that confidence with you into the

next situation.

• Be clear on your personal story and 30 second

introduction

Try to keep it short and punchy as there’s a limit to

how much people will remember on first meeting.

You want to give them enough information to get a

hook that they may wish to explore further but not

too much to send them to sleep!

Here is mine: “I lead a team of experts at Rock the

Boat, a Talent Development organisation providing

training in Leadership Skills, 1:1 Performance and

Career Coaching, and who specialise in Women’s

Development”.

What’s yours? You need to get a person’s interest

right away or you’ve lost your chance. The greeting

should be no more than thirty seconds long,

informative and about you. You need to sell yourself

before you can sell a product or service.

• Make a professional first impression with your

appearance and your attitude

The Blink Theory says you make your mind up in

the first 17 seconds. People decide many things

about you within 17 seconds of meeting you. Decide

what impression you want to make and then how

to make it through the colours and styles you wear,

your posture, handshakes, eye contact and facial

expressions. Dress to impress. Whether we like it

or not, attractive people receive attention. Anyone

can be attractive with the right outfit. Dress for

a networking meeting as you would if you were

going to visit your most important client. You need

to approach the event with a positive attitude and

positive energy, as people will be more likely to enjoy

your company and to recommend you to others if

you are up-beat and have a can- do attitude. Try to

smile regularly as and when appropriate.

2. At the networking event

• Working the room

Working a room can sometimes seem very daunting

for some people but it’s easier than you think if you

use some basic techniques. Shaking hands and

exchanging business cards are pretty common at

networking events, so make sure that if you have a

buffet at the event, that you have a drink or food but

not both! Always keep one hand free!

• Interrupting/joining a group of people

Focus on a group of people and stride confidently

up to them, so they can sense you’re coming. Don’t

interrupt immediately but be prepared to be invited



into the group. Standing close to two people usually

results in them opening up to let you join. As you

approach, focus your eye-contact on one friendly

face, usually on the far side. Don’t be scared to walk

round the group to enter where people are smaller.

More people will see you this way and they are more

likely to welcome you in. Show interest in the topic

they are discussing.

Be prepared when invited to introduce yourself briefl y

and be prepared to shake hands with everyone. Say

your name slowly (don’t rush). It is OK to take a peek

at name badges! Make sure you wear yours high up

rather than on your belt or near your cleavage, unless

that’s where you want people to look!

Ask questions. Where do you work? What do you

do? What do you do in your spare time? Are you

doing anything interesting this weekend? Do you

have any kids? How old are they?

• Ask questions

The best way of fi nding out about the other person is

to ask them questions. Hopefully they will then ask you

some questions too. Focus on your value proposition or

ideas that can help them grow their business, improve

their performance or reduce their costs. A strong and

positive relationship takes time to develop. If they feel

you can add value to them or to their contacts, they

may want to meet up again in the future.

• Share business cards only with those you have

made a useful connection

Culturally I’ve noticed some differences in the way

business cards are used in Asia compared to many

other parts of the world. In Asia, it’s a bit like the

handshake greeting, in so much as everyone offers

their business card almost immediately. Whilst I

accept this cultural practice and reciprocate, I do

often wonder whether this is an effective use of

business cards, as this way most will end up in a

drawer at home never to be looked at again. The

reality is that most of us will only connect with one

or two out of every five people we meet. I believe

you should only offer your business card at the end

of the meeting if the rapport and interest was strong

enough for you both to want to stay in touch. There’s

no shame in not having a strong connection, that

would be quite normal where I come from, but then in

an Asian culture I accept that may be uncomfortable.

Instead I prefer to focus my energy where there is a

two way meeting of the minds or at least where you

feel you can help one another, then exchange contact

details! One strong connection is worth a hundred

weak ones.

Spend time with those you DON’T know

Diversity often sparks new ideas, so try to fi nd new

types of people to help generate more creativity for

you. Although it is ok to spend some time with key

contacts before working the room, remember that

people with whom you are already friendly know what

you offer. Networking meetings should enable you to

expand your network.

Open questions to establish rapport – men……..

this must be more than sport; business and

current events.

Find common ground quickly. Ask simple questions

to get things started. Appropriate humour often

works. Try to create a conversation, rather than an

interrogation. Avoid any temptation for a one-way gush

of “this is me, what I do, and I only want to know if we

can do business otherwise I am out of here”….

Listen, listen, listen...more than you talk

Are you listening carefully to what the other person

is saying, or just waiting to speak? You don’t want to

spend all of your time explaining what you do. First,

find out what the other person does. Not only do

people love to talk about themselves, but it will give

you time to understand their needs and how you may

be of service to them.

Ask yourself, “How can I help this person?”

Share ideas and resources to help them achieve

their objectives. Genuinely care about the other

person.

Always maintain good eye contact; be alert to your

body language and theirs and start to develop

relationships with people in the group. Think “What

do they want to know? How can I help them?” Is

there anything that my network contacts could do for

them?

How often you should keep in touch so you are

remembered?

Research tells us that you start to lose rapport

somewhere between the 1 and 3 month stage.

People start to forget about you and your needs,

so try to make contact with them every quarter.

Remember that face to face contact is far more

effective than telephone contact or email, so make

the effort to meet those important contacts in your

network every 3 months (minimum).

If you want to know more tips on how to network effectively,

including how to increase business sales through brilliant

networking, how to remember people’s names, and how to

exit someone's company gracefully..... look out for future

British Chamber workshops!

B u s i n e s s


Debate continues on the provision

o f s tudent p laces in Hong Kong

international schools. Long waiting lists

at the most prestigious of these are a

fact of life, as are the genuine concerns

of the business community that a

shortage of school places is a serious

disincentive to the recruitment of top

overseas professionals.

Quality vs QuantityOne point that is sometimes overlooked

in this debate is that, according to

government figures, there were 4,000

international school vacancies last

year. Based on this fi gure, Yew Chung

International School (YCIS) believes it’s

the quality, not the quantity that is the

issue. Parents want a good school,

not just any school professing to offer

international education.

It’s apparent that further development

is important to meet the demand for

quality places and also to support

H o n g K o n g ’s f u t u r e e c o n o m i c

growth. The government has made

clear its intentions to foster the city’s

development as a regional education

hub. Co-operation with mainland and

international educational institutions

is growing rapidly. It’s an exciting time

for education providers, who must

ensure they meet the needs of both

the local community and those of

students who come from other places.

An important question is: “What should

an international education provide to

students?”

Your Global EducationYCIS fi rmly believes that the globalised

world of the 21st century requires

students to be international-minded

citizens. This is particularly relevant

to Hong Kong. As a major financial

centre, the city needs to constantly

connect with the rest of the world and

foster innovation and diverse ways of

thinking.

International education must go beyond

establishing a strong platform for future

careers. Local educators must lead the

way in Hong Kong – and throughout

Asia – in embracing new standards.

They need to offer students an “extra

something” that enables them to develop

truly global perspectives and prepares

them to become tomorrow’s leaders.

This must start at an early age, taking

into account the overall well-being

of each student. YCIS understands

the need to encourage students to

become active and motivated learners,

developing skills not only in literacy and

numeracy but also in asking questions

and observ ing according to thei r

individual abilities.

Connecting East and WestIn Hong Kong’s context as a key

interface between East and West,

dual-language education – mastering

both Chinese and English – is key.

By do i ng so , s t uden t s deve l op

intercultural skills and understanding.

Th is i s fu r the r nur tu red th rough

i n t e r na t i ona l exchanges , whe re

students interact with their peers in

other cultures, perform cross-cultural

community service, and develop their

understanding of the world around

them, shifting their thinking from local

to global.

Th is is a major change f rom the

historical development of international

schools in Hong Kong, which began

with a British education being offered

to a mainly British school population.

Even today, some international schools

still offer a national curriculum leading

to foreign qualifi cations for entry into a

national education system overseas. In

fact, they are really national schools in

an international context.

Future World CitizensYCIS strongly believes that education

s h o u l d b e v i e w e d h o l i s t i c a l l y,

focusing on students’ intel lectual,

physical, cultural, spiritual and social

development as future world citizens.

The challenge now for Hong Kong is to

build on its existing advantages in order

to offer a world-leading international

educational experience.

Three core beliefs underpin the YCIS

philosophy and practice. Education

must:

change with time, produce long-term

benefits for individuals, help create a

better future for all.

and

ndividu

Con

in

An education feature brought to you by YCIS

YCIS students’ global mindset is nurtured through international exchanges and cross-cultural community service

YCIS Believes quality is key to developing the international school sector



The fi rst ever Poppy Day

was held on 11th November

1921. Traditionally Poppy

Day is held on the second

Saturday of November, the

closest to 11th November,

to mark the end of WWI

on the Eleventh Hour of

the Eleventh Day of the

Eleventh Month in 1918.

The use of the poppy was

adopted because, in the

areas of Northern France

known as Flanders and

Picardy which saw the

heaviest f ighting during

WWI, it was the only other

living thing which survived.

F lower ing each year i t

brought life, hope, colour

and reassurance to those still fi ghting. Major Howson, a young

Infantry Offi cer, decorated for bravery recognized that making

artifi cial Poppies might offer opportunities for those disabled in

the war who, on return home, seemed unemployable.

The Royal British Legion

The British Legion, now the Royal British Legion, was founded

by Earl Haig, formerly Commander-in-Chief in France, in

1921, to give practical help to the ex-Servicemen and women

and their dependents. The surviving men and women who

returned home after the war, many injured and scared by their

experiences, did so to a world that would never be the same.

People at home had learned to manage without them. For

many the transition to civilian life was not easy. Some found

diffi culty in adjusting to their new way of life and others could

not fi nd work due to their age or health.

Hong Kong and China Branch

The Royal British Legion (Hong Kong and China Branch) has

been active in Hong Kong since 1922. It was established for

the purpose of providing financial assistance to Hong Kong

ex-servicemen and women and their dependants who fall on

hard times. Some of the ex-servicemen were prisoners of war

in Hong Kong while others escaped to China to join the British

Army Aid Group or to Burma and India to continue fi ghting.

How it all BeganC o m m u n i t y

THE

REMEMBRANCE

SUNDAY SERVICE

IS AT 11AM

ON SUNDAY 11th

NOVEMEBER

2012.


The Charitable Work of the Royal British Legion in Hong Kong

The work carr ied out

by the Legion increases

y e a r b y y e a r a s e x -

s e r v i c e m e n b e c o m e

older and are less able to

take care of themselves

a n d t h e y b e c o m e

dependent on the Legion

for financial assistance.

In Hong Kong there are

current ly only 35 war

veterans still alive. They

are in their late 80s – 90s

and many need our help.

We help to run a clubhouse in Causeway Bay where these

gentlemen can escape their sometimes very small and sparse

accommodation and meet to play mahjong, have a cup of tea

and meet their friends. It is not, however, just the war veterans

we help. We also help the Local Enlisted Personnel (LEPs) who

were made redundant when the British Garrison closed in 1997

following the handover. We estimate there are 14,000 who are

eligible to apply to us for help. In addition to these we stand

ready to assist former Gurkhas and British Ex Servicemen who

have fallen on hard times.

The Legion is a charity organization. It relies upon public

support to continue its work because the Legion receives no

fi nancial support from the Government or from the Community

Chest. The Legion also supplies wreaths, made by disabled ex-

servicemen, for the annual Remembrance Sunday ceremony

that falls on the second Sunday in November, the day after

Poppy Day.

It is a matter of principle that the Hong Kong and China Branch

of the Royal British legion helps only Hong Kong people –

100% of them are resident in Hong Kong. Currently we pay 15

monthly grants to people in need – these grants range from

war veterans to young widows with children who are still in

school. So we need your support not only fi nancial by buying

a poppy but by coming along to the service on the 11th of

November 2012.

The Poppy Brigadier Christopher Hammerbeck,

Executive Director, British Chamber of Commerce in Hong Kong

anBritain in Hong Kong 2928

THE CEREMONY, WHICH IS TAKING PLACE ON SUNDAY 11TH NOVEMBER 2012. COMMEMORATES THOSE WHO GAVE THEIR LIVES FIGHTING FOR THEIR COUNTRY IN ALL WARS, BUT ESPECIALLY WE REMEMBER THE MEN AND WOMEN WHO TOOK PART IN THE BATTLE FOR HONG KONG IN 1941.


The Eugenia, BangkokTucked away and a little hidden, this Relais & Chateaux

boutique hotel is one of Bangkok’s little known gems.

Designed and decorated in an old world-style – a late

19-century colonial-style house, and tastefully furnished by

the owner, it offers its guests a quiet oasis in the middle of

a busy city.

Each of the 12 suites includes four-poster beds, settees,

dressers, vintage desks and hand-beaten copper bathtubs.

The lobby, the reception area, the cafe, the library and the

lounge are all set on the ground fl oor. The swimming pool

and Thai pavilion are set in the back courtyard, surrounded

by luscious green trees. There is a 24 hour valet on standby

and a tuk tuk service in the driveway on hand to give you

lifts to the nearby shopping malls or landmarks. But, The

Eugenia’s pride and joy is their vintage car that is parked

out front and of course, for hire, if you would like to arrive (or

depart) in style.

Peninsula, BangkokThe Peninsula in Bangkok doesn’t disappoint. If you are

going to be paying those prices, you are expecting top

luxury and grandeur, which you will fi nd here.

YES SIAM !A recent work trip took me all around Thailand and of course, my mother jumped at the opportunity to take

advantage of a week of luxury spas and pool villas.

Arriving in Bangkok after a three hour flight was a bit of

a shock to the system – it was hot and dusty. We spent

two nights in a very cute boutique property, Ariyasom Villa,

located just off Sukhumvit Road in the heart of central

Bangkok.

Hua Hin was next and Six Senses were kind enough to

host us in a pool villa for two nights.

Our final stop was four nights in Koh Samui. Bangkok

Airways does direct flights from Hong Kong, making this

island easily accessible for long weekend getaways and

the choice of properties in Koh Samui seems endless.

Beaches, nightlife, shopping, water sports, elephant

trekking, temples and waterfalls are just a few options to

keep you busy during your stay there. We spent two nights

at W Retreat and two nights at Infinity Residences and

Resort.

L i f e s t y l e


The 370 rooms and suites are spread across 37 floors

and cater perfectly to any type of traveller. The effort they

put in to making sure kiddies needs are also met is very

impressive, from baby sitting services, kid sized bathrobes

and slippers, to blankets with printed cartoons (pink or

blue) to baby activity kits.

All rooms are spacious and have a royal feel to them –

some with balcony, some with terrace and all overlooking

the river.

You can chose from four restaurants from the Chinese Mei

Jiang, the authentic home cooked Thai style, Thiptara, the

River Café and Terrace and the River Bar, which of course

are set by the Cha Phraya River and offer serene views and

a more relaxed atmosphere.

Activities range from lounging by the pool, painting and

cooking classes in their very own herb garden, garland

decorating, river cruises and of course shopping sprees.

Don’t forget you can arrive in style, as they do also have a

heli pad on the roof – now, if that’s not luxury, then I’m not

sure what is.

Six Senses – Evasom, Hua HinThree hours south of Bangkok is Hua Hin, where we

would spend the next two nights in our private pool villa of

Six Senses.

Six Senses has a luxuriously rustic feel to it. Everything is

very earthy, green and organic. From the food and herb

garden, to the villas to even the Earth Spa which is a

collection of mud huts – it doesn’t get more natural than

that.

The 240 rooms have a fresh feel to them with little pops of

colour, which is copied throughout the resort. The beds are

large, comfortable and come with mosquito nets, however,

fear not, there are perfectly functional air conditions in every

room! The pool villas are gorgeous and very light, with

spacious stone showers and bathtubs (both indoor and

out) and come with a 24 hour butler – ask for Tammy!

There are two spas – The Six Senses Spa and The Earth

Spa. The latter is not air-conditioned and comprises of

mud huts that rest between beautiful lily ponds. The huts

are naturally cooled and everything used in this Spa is

completely natural – think coffee beans, aloe, papaya,

cucumber…. The Six Senses Spa, of course, has air-

conditioning and a plethora of amazing treatments to

choose from (my mother is an expert on them all…).

The Beach Restaurant has a great choice of Italian cuisine

and a huge array of sorbets to choose from (try the

Jasmine & Yoghurt and Coconut. Delish!) Of course, there

is also the Thai restaurant which at night is entertained by

Thai musicians and The Living Room, their main restaurant

that serves an incredible breakfast spread.

Six Senses, Koh SamuiPerched on a cliff overlooking the ocean, this resort has to

be one of my favourites of the whole trip. It’s very earthy,

relaxed and rustic, yet luxurious and modern. You are

greeted at the top of the resort, then taken by buggy down

the cliff where the rest of the property lies. All 66 villas

are naturally designed and come complete with outdoor

showers, dining tables, daybeds, sun loungers and

spacious l iv ing

rooms, with dark

wood furnishings.

A private butler is

on hand for each

villa that will assist

you with anything.

Dining on the Hill

and Dining on the

Rocks are the two

main restaurants

and very popular throughout the island. Both with stunning

views and food to match. There is also an excellent wine

cellar, infinity swimming pool (possibly the best one I’ve

ever seen in my life), Thai cookery school, gym, library and

a spectacular spa with outdoor treatment rooms. “Bus

stops” dot the resort for you to call for a pick up at any

time.



Four Seasons, Koh SamuiThe Four Seasons is one of the best. It was built on

a coconut plantation, however, not a single tree was

destroyed in its constructions, they simply built around

them – some trees are part of the décor in your villa!

The resort’s 40 one-bedroom villas and 14 one- to five-

bedroom residences come with a private pools and

stunning panoramic views of Laem Yai Bay and nearby

Koh Pha Ngan.

A great option for families, they have a wonderful kids club

catering to children of any ages with daily activities such a

coconut painting and crab racing on the beach.

The Forest spa – a spa in the jungle - comprises 5

treatment villas with private outside bathtubs ideal for

couples.

Dining at The Four Seasons is an experience of its own as

the views are absolutely breath taking. Lan Tania serves

Italian and Thai cuisine and Pla Pla which is set on the

beach serves fresh fi sh daily, prepared according to your

request.

Banyan Tree, Koh SamuiBanyan Tree is a collection of 88 villas, all equipped with

private pools, which are said to be one of the largest on the

island.

Overlooking the scenic Lamai Bay, the resort is nestled in

a series of cascading terraces on a private hill cove in the

south-eastern coast of Koh Samui.

Restaurants feature a variety of cuisines to suit all taste

buds. International delights at The Edge, Thai dinners at

Saffron, a fun BBQ at Sands, or cocktails by the pool. Of

course, there is the option of in-Villa dining, because, let’s

face it, sometimes (especially at Banyan Tree) there is no

need to leave the room.

Designed in a typically contemporary Thai style with

modern amenities, enjoy the sweeping views over the Gulf

of Thailand from your outdoor Jacuzzi, dining and sun-

lounging areas, or bask in the indoor bathtub and mosaic-

tiled shower.

Banyan Tree boasts some of the fi nest spa facilities with the

island’s fi rst hydrotherapy wellness centre: a jungle-themed

aquatic experience, including an artificial-rain walkway,

crushed-ice fountain and scented steam chambers.

B e s p o k e t r a v e l c o m p a n y L i g h t f o o t Tr a v e l

(www.lightfoottravel.com) is an Asia-based tour operator

specializing in tailor-made holidays, honeymoons, short

breaks, boutique accommodation and private villas in

Asia and beyond. For more information please call +852

2815 0068 or email [email protected]

L i f e s t y l e

Zazen, Koh SamuiMy favourite boutique property on the island, Zazen, has

a Moroccan/Balinese feel to it with a peaceful vibe and

friendly staff. Located just next to Fisherman’s Village in

Bophut, and directly on the beach, Zazen is close to all the

action.

Comprising only 26 bungalows with enormous beds and

open-air bathrooms, the rooms are either beach front or

surrounded by gardens.

The restaurant is famous throughout Samui for its delicious

east-meets-west cuisine and relaxed atmosphere. The

resort’s Le Salon de Ti is a bay-view tea lounge with Louis

XVI-style furniture and crystal chandeliers. They are also the

proud owners of their very own wine cellar and host weekly

Thai dance shows. The beach bar connects the main pool

and the private beach and is the perfect place to enjoy a

sunset cocktail or two.

The La Spa Zen is not to be missed, it is a traditional Thai

spa with beautiful rooms and a long list of exotic treatments

on offer.


Q. What is my liability as a shareholder in a Hong Kong company?

A. If you have invested in a Hong Kong incorporated company as a shareholder, you may be eager to know the extent of your liability. Hong Kong adopts the same regime as England for limited companies, namely that you will only be liable up to the amount of your paid-up nominal share capital.

The nominal value is fi xed by the company and is usually HK$1 per share. “Paid-up” means you have paid for the full nominal value of the shares. Shares of private limited companies are usually paid for in full when issued to shareholders.

Therefore, if the company is in debt and is wound up, and you own fully paid-up share capital, you should not have to contribute any more money to satisfy the debt. However, if your shares are only partially paid, you will have to “top up” so that they are fully paid.

Stefania Lucchetti, Partner, Corporate Practice, HWB.

Q. Daisy Chan commenced employment with Moon Cake Limited (“MCL”) on 8 October 2012 with a 3 month-probation period. After 5 weeks of employment, Daisy gave notice of pregnancy. MCL would like to terminate Daisy’s employment because of poor performance. Can MCL do that?

A. The Employment Ordinance provides pregnant employees with protection against termination. After a pregnant employee has served notice of pregnancy upon an employer, the employer shall not terminate the employment unless the employer has grounds to summarily dismiss her. However, such protection is not available to employees on probation for a period not exceeding 12 weeks. MCL is allowed to terminate Daisy’s employment, so long as the reason is not connected to Daisy’s pregnancy (in this case, it is poor performance). The Company must effect termination before 8 January 2012, otherwise MCL will not be permitted to terminate Daisy’s employment until after she returns to work, after completion of her maternity leave.

Catherine Leung, Senior Associate, Employment Practice, HWB.

Q: Our company has been approached by marketing agencies to sell our client and employee data, especially email addresses and phone numbers. Could this backfi re on us under the Personal Data (Privacy) Ordinance (Cap 486)?

A. Yes – it will probably backfire and we advise against this approach. The guiding principle under the Ordinance is that personal data (including email account details and phone numbers) should be carefully controlled. The data should not be used for any other purpose than the purpose for which it was to be used at the time of the original collection of the data.

The exception to this is when a person consents to the use of their data for another purpose, although that is unlikely to happen in this kind of situation and, if it does, your company should secure written consent before the release of data to a third party. If a person suspects that your company has misused or sold their data for a purpose other than the original purpose of collection, they could make a complaint to the Privacy Commission and potentially, recover compensation. In addition, and perhaps just as signifi cantly, unlawful use of personal data is likely to cause signifi cant harm to your business reputation.

Lisa Nabou, Senior Associate, Dispute Resolution Practice, HWB.

Legal Q & A

Howse Williams Bowers (HWB) is a new independent Hong Kong law firm. Our key practice areas are commercial and maritime dispute resolution; corporate/commercial and corporate fi nance; clinical negligence and healthcare; insurance and professional indemnity insurance; employment; family and matrimonial law and intellectual property.

As an independent law fi rm we are able to minimise legal and commercial confl icts of interest and act for clients in every industry sector. The partners have spent the majority of their careers in Hong Kong and have a detailed understanding of doing business in Asia.

Disclaimer: The information contained in this article is intended to be a general guide only and is not intended to provide formal legal

advice. Please contact [email protected] if you have any questions about this article.

For more information please contact:

Stefania Lucchetti

Partner

+852 2803 3640

+852 2803 3618

[email protected]

Catherine Leung

Senior Associate

+852 2803 3630

+852 2803 3608

[email protected]

Lisa Nabou

Senior Associate

+852 2803 3604

+852 2803 3608

[email protected]

Law is always a daunting world for those outside the legal profession, yet its relevance to business situations can be very real and immediate. Britain in Hong Kong is here to help and is pleased to announce the new regular Legal Q & A column. Every month, legal experts from major law fi rms will be on hand to answer your queries. If you have any legal questions that you would like to ask our panel of experts please send them by email to [email protected]

This month the team from Howse Williams Bowers lays down the law (so to speak) on the fi rst round of business-related questions.

Britain in Hong Kong 3332L e g a l


The Jardine Matheson Group & British Chamber YNetwork Scottish Ceilidh 2012Event date: 26/10/2012 - 20:00 - 27/10/2012 - 01:00 Venue: Aberdeen Marina Club, 8 Shum Wan Road, Aberdeen, Hong KongDress: Black tie, with a touch of tartan!

It is that time of year again! The famous British Chamber YNetwork Scottish Ceilidh is back, and is set to be better than ever! Get ready to dance the night away to the popular reels, and enjoy some delicious Scottish fare, washed down with plenty of whisky!

The night will open with Scottish pipers, sword dancing and a haggis addressing ceremony. There will also be a business card lucky draw with some amazing prizes to be won, so don’t forget to bring your business cards!

Asia - Regional Economic Outlook and Real Estate OpportunitiesEvent date: 30/10/2012 - 08:00 - 09:15 Venue: Harcourt Suite, 1/F, The Hong Kong ClubSpeaker: Nicholas Brooke, Chairman, Professional Property Services Ltd.

Whilst many countries in Asia share regional interests and have much in common when it comes to their economies, cultures, and climates, their economic status or political development and the business potential are not always so aligned.

Nicholas Brooke has been undertaking assignments and providing advice in the region for over 30 years and if you would like to learn more as to his views as to the current and future economic and investment opportunities across Asia, particularly in the real estate sector, join us for the Real Estate Committee breakfast on 30 October when Nicholas Brooke will share his thoughts with us.

Macau - Gaming-Politics-Junkets - What is really going on and what is going to happenEvent date: 31/10/2012 - 08:00 - 09:15 Venue: Harcourt Suite, 1/F, The Hong Kong Club Speaker: Steve Vickers, Chief Executive Offi cer, Steve Vikers & Associates

Whilst the Macau gaming industry has been hugely successful over recent years, it currently faces various strategic challenges. These include political risks arising from the pending leadership change in the People’s Republic of China and other political risk indirectly arising from the US Presidential Elections. Recently highly publicised allegations as to breaches of various laws by the international operators in Macau present other challenges.

Steve Vickers will help to put all of these matters into context and to identify factors which will impact upon the future direction of the gaming industry in Macau and Asia. Steve Vickers will help to put all of these matters into context and to identify factors which will impact upon the future direction of the gaming industry in Macau and Asia. Steve Vickers is the CEO of Steve Vickers & Associates (“SVA”) and has over 36 years experience in Asia. SVA is a specialist risk mitigation, corporate intelligence and risk consulting company. The company serves fi nancial institutions, private equity funds, corporations, high net-worth individuals and insurance companies and underwriters around the world.

“The View from the Boardroom” – is ‘Aspiration Britain’ deliverable?Event date: 02/11/2012 - 12:30 - 14:15 Venue: The Atrium, 39/F,

Island Shangri-La, Speaker: Sir Roger Carr, CBI President

Sir Roger Carr is President of the CBI, the UK’s premier business lobbying organisation. At this lunch, Sir Roger will discuss how UK PLC must adapt and lead in order to drive international growth, and what this means for the Asia markets.

Marketing Strategies for SMEsEvent date: 07/11/2012 - 12:30 - 14:00 Venue: CBRE offi ces, 3/F Three

Exchange SquareSpeaker: Timothy J. Peirson-Smith,

Managing Director, Executive Counsel Limited

Marketing communications and brand building for SMEs remain the most challenging areas for the sector in terms of what to do, who to have do it, and how to extract maximum ROI from a small budget. In this seminar, Timothy Peirson-Smith will share his experience on Public Relations and Marketing campaigns for large corporations and brands and will summarise his key learnings and distill experiences to those that will be appropriate to the needs and budgets of SMEs.

Shaken Not Stirred Networking Drinks KowloonEvent date: 08/11/2012 - 18:30 - 20:30 Venue: Vibes, 5/F The Mira Hong Kong,

Tsim Sha Tsui

Join us for our Kowloon networking drinks event at Vibes, The Mira - a chic, alfresco bar hidden in the fifth floor courtyard. Especially for all those working in and around Tsim Sha Tsui - unwind in style after work with an evening of drinks and canapés.

Past Events

Upcoming Events

Y Network Head of the Table dinner hosted by Nick Sallnow-SmithOn Thursday 6th September, Nick Sallnow-Smith, Chairman of the British Chamber of Commerce in Hong Kong and Chairman of Link REIT, hosted a

dinner for 12 members of the YNetwork at the Kee Club. Nick began the evening by guiding us through his dynamic career trajectory in which he has

been, at one stage or another, a teacher, civil servant, treasurer, property executive, and chairman. Despite these varied professions, Nick maintained that

one thread of consistency throughout his career has been his lack of qualifi cations! In fact, he argued convincingly that it was this very lack of qualifi cation

that has been the source of his success. That is, by entering new industries or professions without extensive experience but with an enthusiasm to

critically engage, he has been able to question the lazy consensus, challenge institutional inertia and create a momentum for change. Nick’s emphasis

on the importance of a fresh perspective and the impetus to question the status quo struck a particular chord with me and the other members of the Y

Network as we move forward in our careers.

Nick went on to describe his numerous career successes as treasurer of Johnson Matthey, treasurer

of Jardine Matheson and Chief Executive of Hongkong Land to name but a few. By comparing his

experiences in each of these companies, Nick applied a refreshing approach to our lively discussion

of company culture. He steadfastly argued that our loyalties should be to the people that make

up an organization, and not necessarily to the institution itself. Furthermore, Nick highlighted the

importance of diversity of approach within a company’s make-up. For example, although liberal arts

degrees can sometimes be dismissed, he told us that if he could go back the one thing he would

do differently would be to have done a degree in Philosophy as he believes that the intellectual

rigour of this discipline encourages an independence of thought that is not only relevant, but also

hugely advantageous, in the corporate world.

I would like to take this opportunity to thank Nick for so generously hosting the Y Network and for providing a forum for such stimulating and candid

debate on everything from the value of an MBA to abolishing the UK curriculum. Nick’s experiences provided us both with inspiration and practical

advice on how to develop our careers going forward. If you would like to learn how you can attend the next Head of the Table event, or if you would like

to ensure that the younger executives in your organisation can benefi t from this unique forum, please email Lucy Jenkins at [email protected].


Thank you for your continued support

The British Chamber’s Sterling Members

Exciting Investment Opportunities!

Take your business

to

new heights

The British Chamber of Commerce is hosting its tenth Business Angel Event sponsored by Baker Tilly Hong Kong on 22 November 2012. This initiative provides an opportunity for new businesses, or existing small businesses looking to expand, to present their business plan in front of an audience of potential investors. Each candidate is screened before a committee of business professionals before the event and the investment opportunities that are subsequently presented on the day are high quality and often very exciting.

Who are we looking for?

This programme is designed for Angel Investors or their representatives who are looking for sound investment opportunities from Hong Kong based companies of around USD$100,000 to USD$2million. Angels should either be high net worth individuals looking to invest, investment companies or representatives of investors and the programme is open to both members and non-members of the British Chamber of Commerce.

There are still spaces available at this event for any potential investor who would like to hear more. Space is limited so please let us know as soon as possible if would like to be part of this unique investment opportunity. Please visit angel.britcham.com to register or email [email protected] for more information.

Sponsored by:

The British Chamber of Commerce is delighted

to announce that CBRE is supporting the SME

Committee’s SMART TIPS FOR SMALL BUSINESSES

series of lunchtime seminars aimed at entrepreneurs

and small business owners in Hong Kong.

The series is co-ordinated by the British Chamber’s

SME Committee, a group of successful entrepreneurs,

business owners and experts who understand the

challenges faced by small businesses every day. The

series aims to provide practical know-how as well as

market analysis tailored to small business needs. The

series is open to members and non-members.

With the support of CBRE, the SME Committee is

looking forward to hosting a fascinating series of

seminars this year.


Member DiscountsFood and Beverage and Accommodation

Accor | Members will receive 10% discount on top of the lowest rates that Accor’s

Asian hotels are offering on the day. This applies to over 1600 Sofi tel, Pullman, MGallery,

Novotel, Mercure, Thalassa & Orbis hotels worldwide. You will also receive 5% discount

on top of the best unrestricted rates for hotels including ibis (in specifi c countries), All

Seasons & Hôtel Barrière. For more information please contact Regina Yip on 2868

1171 or email [email protected]

Alfie’s | Members of the British Chamber of Commerce can benefit from a 10%

discount at this chic restaurant in Hong Kong. To make a reservation please call 2530

4422 or email booking.alfi [email protected]

Berry Bros. & Rudd | Members can benefi t from a 10% discount on all retail prices as

well as receiving invitations to free tastings and other wine events during promotional

period. For more information please call 2907 2112

Courtyard by Marriott Hong Kong | Members will receive a 10% discount on food

only in MoMo Café. To make a reservation please call 3717 8888

Dot Cod | All members of the British Chamber of Commerce of Hong Kong will receive

a 10% discount on the bill. For more information please call 2810 6988 or email

[email protected]

Grand Hyatt Hong Kong | 15% discount on food and beverage at The Grill and

10% discount on treatments upon spending HK$1,000 at Plateau Spa. To make a

reservation please contact The Grill on 2584 7722 or the Plateau Spa on 2584 7688

Hyatt Regency Hong Kong, Tsim Sha Tsui | 10% discount at The Chinese

Restaurant, Hugo’s, Cafe and Chin Chin Bar (except during happy hour). To make a

reservation please call 2311 1234

JW Marriott Hotel Hong Kong | Members will receive a 10% discount on the total

bill at Man Ho Chinese Restaurant, JW’s California, Marriott Cafe, The Lounge, Riedel

Room @ Q88, and the Fish Bar & Grill. To make a reservation please call 2810 8366

Le Méridien Cyberport | Members can book a Smart Room at the special rate of

HKD1,600 including a daily eye-opening buffet breakfast (subject to availability). You

will also receive 20% discount at 5 of the hip restaurants and bars that the hotel has to

offer. Furthermore, when you book the 21-day long room package at HKD23,100 you

will receive a ‘Round Trip Limousine Service’. For more details please call 2980 7785

Hong Kong Skycity Marriott Hotel | Members will receive a 10% discount on the total

bill at Man Ho Chinese Restaurant, SkyCity Bistro, Velocity Bar & Grill, and The Lounge

(Promotion does not apply to alcoholic beverages). To make a reservation please call

3969 1888

Renaissance Harbour View Hotel | Members will receive a 10% discount on the total

bill at Michelin Star Dynasty Chinese Restaurant, all day dining at Cafe Renaissance, Scala

Italian Restaurant and the Lobby Lounge. To make a reservation please call 2802 8888

The Mira Hong Kong | Members will be given special room rates, a complimentary

upgrade and fantastic discounted rates on the Spa suite package (subject to availability).

For more information please contact Connie Kwan on 2315 5666 or email connie.

[email protected]

W Hong Kong | Members will receive fantastic offers at Kitchen and Sing Ying. Dine at

either of these restaurants and receive complimentary discount vouchers to use at your

next meal. For more information or to make a reservation please call 3717 2222


There are many great benefits of being a member of The British Chamber of Commerce. One of those is the

Member Discounts programme which is an exclusive package of discounts that range from discounted car rental,

reduced hotel accommodation, airfares and even relocation costs.

Every six months we invite members to prepare a tailor made offer to all the members of the British Chamber. You

can fi nd these benefi ts listed below and for more details please visit our website www.britcham.com

Home

Allied Pickfords Hong Kong | Allied Pickfords will extend a free local move for any Home Search completed by SIRVA Real Estate. For more information please call 2823 2089 or email [email protected]

Bowers & Wilkins | B & W are offering members a 10% discount on all listed price items in the B&W Showrooms in Tsim Sha Tsui and Central. For more information please call 3472 9388 or 2869 9916

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

Travel & others

Avis | Members can receive up to 20% discount off standard rates on car rental bookings. To make a booking please call 2882 2927 or visit www.avis.com.hk

British Airways | As a member of the British Chamber of Commerce you can enjoy an exclusive offer of 7% discount from British Airways. To make a booking please visit www.britcham.com/memberdiscount/british-airways

Compass Offi ces | Compass Offi ces, Hong Kong’s largest Serviced Offi ce provider, offers members a 10% year round discount on meeting rooms, a free one hour Telepresence or Video Conferencing session and a 3 month complimentary Virtual Offi ce package. For more information please call 3796 7188 or email hksales@compassoffi ces.com

Flight Centre | Members will receive HKD150 off the fi rst booking made as well as a complimentary Airport Express ticket per booking. For all holiday and fl ight enquiries please call Paul Jeffels on 2830 2793 or email paul.jeffels@fl ightcentre.com.hk

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

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

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

Virgin Atlantic Airways | Special offers to London are available exclusively for members of the British Chamber of Commerce. Please call 2532 6060 for more details or to make a reservation

VisitBritain | British Chamber members can get 5% on all purchases from VisitBritain’s online shop by entering the code TR7DE67! at the checkout. Please visit www.visitbritaindirect.com/world for further details.

Terms and Conditions apply. All member discounts are subject to availability. If you are interested in providing a tailored

offer to our members or for more information please contact Emily Ferrary on 2824 1972 or email [email protected]



To enter:

• Consider who among your contacts might be interested in joining the Chamber

• Email [email protected] with the name and contact details of your suggested company

• If appropriate, contact your suggested company and let them know that the Chamber will be in touch

• The Chamber will follow up with each suggestion directly

• If your referral is successful, the Chamber will contact you with details of how to book your dinner. Your name will also go into

the prize draw which will be drawn in March 2013.

Make a successful referral to the

British Chamber of Commerce

and enjoy a fantastic meal for two!

AND if you happen to refer the most new members to the Chamber, you are in for a real

treat for you and your friends! A complimentary dinner for four at Sakesan, the newest

Robatayakibar, courtesy of Cafe Deco Group.

Sakesan

Sakesan is the newest Robatayakibar in the heart of the bustling Soho area. It offers a range of

exquisite dishes fresh from their robata grill, as well as other Japanese culinary delights, all rendered

with a modern twist. Designed by Fiona Bagaman and Mirei Lim, Sakesan uses different wood

and stone tones with fl ashes of black and gold to create a serene, relaxed and cool space. Funky,

colourful sake barrels wrap the bar

area and frame the individual dining

booths and an illuminated Japanese urban scene gives the bar a warm

glow as well as striking visuals. Signature dishes include homemade

steamed tofu, salmon miso, lobster dumplings and SAKESAN black

cod. There is also a cool bar featuring a top range of sakes, shochus

and awamoris with a superb range of cocktails made with these classic

Japanese ingredients. To compliment this they also offer a selection of

some of the fi nest, most thirst quenching beers to emerge from Japan.

The British Chamber is delighted to announce that the

Member Get Member 2012 campaign is well underway! If

you successfully introduce a company that results in them

becoming a member of the Chamber, you will receive a

fantastic dinner for two courtesy of one of our top member

restaurants in Hong Kong.

Not only that, all referring members will be entered into a

prize draw to win a $2,000 voucher to go towards your holiday

provided by Flight Centre!

MEMBER GETMEMBER 2012


Terms & Conditions

• You must be a member of the British Chamber to be eligible for this offer

• The dining vouchers will only be provided if your referral results in a new member for the Chamber

• This offer is valid for all members whose referral results in a new Corporate, Overseas or Startup member of the Chamber. It

does not apply to Additional members or additional YNetwork members

• The Chamber will allocate the restaurant vouchers. Members will not be able to choose which restaurant they visit and must

adhere to the terms and conditions

The Bostonian, The Langham, Hong Kong

This well-established restaurant has been a Hong Kong favourite

for well over a decade. Located at the lower lobby level of

The Langham, Hong Kong, The Bostonian has an excellent

reputation for its superb steaks, and more recently its fully sustainable seafood menu. Featured

by one of Hong Kong’s infl uential restaurant bibles, “The Hong Kong Best Restaurant Guide”

since 2000 and recommended by The Michelin guide, the Bostonian is a hallmark for impeccable

service and exceptional food. Guests can indulge in a tantalising array of fresh seafood from

around the world at the “Raw Bar”, including home-made smoked salmon, prawns, crabs and

freshly shucked oysters. The enticing menu also includes gourmet favourites such as maine

crab cakes, sautéed foie gras, clam chowder, as well as separate menus for the restaurant’s

specialties – the Boston lobster galore, seafood sharing platters and Bostonian grill.

KITCHEN, W Hong Kong

Kitchen is a modern bistro with a capacity of 200,

reflective of W’s signature stylish and fun design. Upon arrival to KITCHEN, the

mad hatter’s tea party in “Alice in Wonderland” brings guests to a world of fantasy.

Cats play and jump around the stacks of plates, inviting guests to join their games

too. KITCHEN’s modern interpretation of timeless classics and equally innovative

original masterpieces fi ll a menu that’s designed to tantalize and satisfy even the

most discerning gourmands. Guest can indulge in the fun world of kitchen, while relaxing in the pleasant and interactive dining

experience, sampling the delicate cuisine on offer from all over the world.

Lobby Lounge, Conrad Hong Kong

Featu r ing the spectacu la r v iews

of the Hong Kong skyl ine and l ive

entertainment, the Lobby Lounge is the ideal venue for private

meetings or relaxed gatherings with friends. From salad bar to noodle

station, and delectable hot dishes to exquisite desserts, the Southeast

Asian themed supper buffet showcases an impressive range of more

than 50 scrumptious all-time favourites.

So what are you waiting for? Spread the word throughout your network to enjoy

a complimentary meal for two at one of these fantastic member restaurants:

cafe TOO, Island Shangri-La, Hong Kong

The innovative cafe TOO brings casual dining

to a higher level of creativity. Their ten cooking

theatres, each featuring a different culinary style, are

showcases for the best of international cuisine as well as stages for their

chefs' engaging performances.

T

Café Renaissance, Renaissance Harbour View Hotel Hong Kong

Café Renaissance is the perfect place for all day dining. Located on the

Mezzanine fl oor, the 210-seat all-day dining café serves a wide variety

of dishes from all over the world. Café Renaissance serves wholesome

breakfasts, chef crafted lunches and dinner buffets plus à la carte menu daily and brunch

on weekends, in a warm and welcoming atmosphere. In addition to the great array of fresh

seafood delights using the freshest ingredients, guests can also enjoy a tantalizing array of

international favourites and local specialties from live cooking stations.



For more information, please contact Charles Zimmerman on (852) 2542 2780 or at [email protected]

SPEEDFLEX (GUANGZHOU) ADVERTISING LIMITED

Speedflex provides the full range of pre-press services in China

through its wholly owned subsidiary in Guangzhou

Guangzhou Subsidiary Office

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

376 Xin Gang Zhong Lu, Guangzhou, China

Tel: (020) 2129 9508

Fax: (020) 8956 2197

Hong Kong Office

1st Floor, Hua Qin International Building

340 Queen’s Road Central, Hong Kong

Tel: (852) 2542 2780

Fax: (852) 2542 3733


Standard Life Launches Innovative New Investment

Plan for Hong Kong and International Mobile

SegmentsResponding to the market need for a more flexible, customised approach to

wealth management, Standard Life (Asia) Limited (“Standard Life”) – one of

Hong Kong’s leading investment-linked insurance providers – has announced

the launch of Harvest Wealth Investment Plan (“Harvest Wealth” or “the Plan”),

an innovative, holistic solution geared toward sophisticated local clients and

international mobile clients residing in Hong Kong.

Harvest Wealth utilises a direct fund approach, providing 295 investment choices

from 24 of the world’s leading fund managers. Customers may switch investment

choices at no cost while Standard Life’s comprehensive digital platform enables

online investment management anytime anywhere. Harvest Wealth also provides

contribution flexibility for customers that they may increase or decrease their

contribution levels as required, or even take contribution holidays.

BDO announces appointment of Chief Executive Offi cer

BDO Limited, the Hong Kong member fi rm of BDO — the world’s fi fth largest accountancy network, has

announced the appointment of Johnson Kong as Chief Executive Offi cer, effective as of 1 October 2012.

Albert Au remains as the Chairman of the fi rm.

Johnson joined BDO in 1989 and has been managing the fi rm’s non-assurance practice. He has nearly 30

years of professional accounting experience specialising in fi nancial investigation, due diligence, litigation

support, restructuring and insolvency related assignments. Johnson is a practising member of the Hong

Kong Institute of Certified Public Accountants, a member of the Institute of Chartered Accountants in

England and Wales and the Society of Chinese Accountants and Auditors.

British Airways appoints Tracy Dedman as Regional General Manager, Greater China and the Philippines

British Airways announced that it has appointed Tracy Dedman as Regional General Manager, Greater China and the Philippines. Based

in Hong Kong, Tracy will be responsible for the airline’s commercial activities in Mainland China, Hong Kong, Taiwan and the Philippines,

leading a region-wide team of over 21 people. Tracy has worked for British Airways for over seven years in various roles in Bahrain and

Hong Kong. Previously, she was Regional Corporate Sales Manager, Greater China.

Tracy replaces Kevin McQuillan, who accepted a new role within the organisation as Head of ba.com and Mobile Channels. Kevin’s

former commercial responsibility as Regional General Manager, East Asia, has since been split into two: Greater China & the Philippines,

led by Tracy; and Japan & Korea, headed by Vishal Sinha.

The split enables British Airways to place greater focus on the operational needs of each subregion while strengthening its commitment

to its customers, and it comes after British Airways’ parent company’s recent promise to grow its presence in Asia.

IML Worldwide appoints Merion Trask as Managing Director of its Asia operations

Merion Trask is no stranger to IML Worldwide, having been with the company for 17 years, most recently managing its global support

network across the full range of its meetings technology products. Over the past ten years he has also been responsible for launching

IML’s Electronic Shareholder Meetings Services in Asia, Europe, Australia, and Canada.

According to Trask, “Asia presents huge potential for IML Worldwide and I am looking forward to utilizing all my IML experience

and knowledge to continue to expand our presence in this exciting, dynamic market. We have an excellent reputation, unparalleled

experience and a second-to-none product range and I will be building on this whilst also focusing on our ability to advise clients on all

aspects of harnessing audience insight.”

New Appointments

NewsIML Joins BritchamBritcham welcomes new member company IML, a

global leader in harnessing audience insight. Its award

winning services capture and make sense of the rich

content, discussion and interaction that is generated

at meetings and events. Their signature product, the

IML Connector, allows seminar and panel audience

attendees to share their opinions easily and efficiently

and for organisers to analyse the results. Operating from

12 offi ces around the world, IML engages annually with

over half a million people at more than 2500 business

conferences, annual meetings, charity auctions, training

workshops and market research sessions - ranging in

size from ten to ten thousand participants. IML is owned

by Computershare.



New Members

STARTUPMYR Consulting

Steve Tunstall

Managing Consultant - Asia

Tel 9182 6001

[email protected]

15-01, 15/F, 100 QRC, 100 Queen’s Road

Central, Hong Kong

Consultancy

Leodan Limited

Chris Thomas

Director

Tel 8199 0959

[email protected]

20/F, Central Tower, 28 Queen’s Road,

Central, Hong Kong

Computer / Technology / IT

CORPORATEIML Asia

Rachel Ford

Sales Manager

Tel 2862 8687

[email protected]

1806-07, 18/F, Hopewell Centre,

183 Queen’s Road East,

Wan Chai, Hong Kong

Events

HKUST

Roger Levermore

Interim Director, MBA Programs

Tel 2358 8749

[email protected]

The Hong Kong University of Science &

Technology, SBM Dean’s Offi ce,

Room 6415, Clearwater Bay,

Kowloon, Hong Kong

Education

ADDITIONALBritish Council

Susan Tse

Director Programmes

Tel 2913 5513

[email protected]

3 Supreme Court Road,

Admiralty, Hong Kong

Education

British Council

Sophia Chan-Combrink

Head of Education & Society

Tel 2913 5159

[email protected]

3 Supreme Court Road,

Admiralty, Hong Kong

Education

ICF GHK

Tom Callahan

Principal Consultant

Tel 2829 6408

[email protected]

19/F, Heng Shan Centre,

145 Queen’s Road East,

Wanchai, Hong Kong

Consultancy

INDIVIDUALAlexander Oxford

Tel 2838 3810

[email protected]

4/F, Wah Kit Commercial Centre,

302 Des Vouex Road, Central,

Hong Kong

We Collect and deliver your carFREE OF CHARGE

(subject to distance)We provide good, quick repair service at

reasonable prices

ALL REPAIRS WITH THREE MONTHS GUARANTEE

Our Business Hours8am-6pm, Mon-Sat & Public Holiday

Our 24hrs. Emergency Towing Agent“Firstone Towing Services” 8203 3411

Please call us at 2565 6166 or Fax: 2856 1047E-mail Address: [email protected]

Our competitive Labour charges: From

Lubrication Service $ 110

Tune Up Engine $ 220

Engine Decoke & Grind Valves $ 1,500

Engine Overhaul $ 4,000

Brake System Overhaul $ 900

Clutch Mechanical Overhaul $ 1,000

Air Condition Freon Recharge $ 400

Alternator Overhaul $ 400

Starter Motor Overhaul $ 400

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

MANAGEMENT & LETTINGPRIME CENTRAL LONDON

A well tried, tested. Comprehensive and personal service provided by

an experienced and dedicated team, who understand the needs of the

International Investor.

Letting * Management * Refurbishment * Online Statements * Tax

Returns for Overseas Investors * Regular Visits by Directors.

Contact:

Perry Bousfi eld Neil West

Director Property Manager

Perry.bousfi [email protected] [email protected]

Prime Portfolio

45 Charles Street

Mayfair

London W1J 5EH

Tel: +44 (0)207 409 0209

Fax: +44 (0)207 629 6050

www.primeportfolio.com


Shaken Not StirredSponsored By

Aug 2012, Il Posto 97, Central

Ryan Swann (Baker Tilly Hong Kong), Cynthia Alfieri

Ava Chung (DataSource), Steve Thomas (Maxim Recruitment)

Liz Hamerton (Secretarial Office Services), Andrew Vize (Terra Firma)

Eve Ormond, Caroline Swartz-Zern (King & Wood Mallesons)

Jeff Lane (King & Wood Mallesons), Samantha Cornelius (Stand Out Hong Kong)

Will Sweeney (Concise Media Design), Katie Erricker (The Wren Press Ltd.), Helen Peters (The Wren Press Ltd.)

Maria Gomez (Terra Firma), Leigh Mackeurtan (Concise Media Design), Glen Farmer (Regal Hotels International)

Conrad Wong (Euler Hermes), Maria Leung (Euler Hermes), Anil Berry (Euler Hermes)

Kirsty Galbraith (Hays), Sarah Knapton (King & Wood Mallesons)

Gary Luttrell, Viki Kish (International Study Programs)

Caroline Chow (Epicurean Group), Vincent Leung (Crowne Plaza), Elaine Chan (Crowne Plaza)

Teddy Slama (AGS Four Winds), Samuel Lai (Baker Tilly Hong Kong)




Documents

Britain in Hong Kong October 2012