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December 2009 / January 2010 - Association of Dutch Businessmen

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<strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong><br />

MITA 373/03/2001<br />

CHINA<br />

Special


Prologue<br />

Time flies ...<br />

I have the feeling that the summer holidays have just finished and now suddenly I realize<br />

that Christmas and New year are approaching.<br />

If I look back at the events we have organized since summer, I realize that it is true. The<br />

Annual Dinner and Dance, the enterpreneurial panel, the visit <strong>of</strong> Jaap van Zweden and his<br />

orchestra, the wine tasting at the Hollandse Club and finally we (and I) are preparing for the<br />

end <strong>of</strong> year network drinks at my place, for which I invite all ADB members warmly.<br />

Jan de Vegt<br />

Looking back, it will probably be for some people a year to better forget, the aftermath <strong>of</strong><br />

the credit crisis, the economies going down and all the consequences that may have brought.<br />

We see now signals that Singapore (and other countries) are technically out <strong>of</strong> recession.<br />

Adding the word technically in these reports makes me suspicious. What are these journalists<br />

and analists trying to say? Technically we are out but effectively we are still in?<br />

In my personal opinion it will take some more time before all economic indicators are pointing<br />

in the right direction. I think we are recovering from a huge overreaction on the credit crisis,<br />

companies as a reaction (or as a consequence) stopped orders, used-up their inventories and<br />

now, as consumer spending is not going down that drastically, they have to restock. This gives<br />

pressure in factories and transportation systems, as factories and transport systems were scaled<br />

down due to the sudden lack <strong>of</strong> orders due to the credit crisis or maybe their credit position.<br />

Could that be the part that leads us ‘technically’ out <strong>of</strong> recession, but not really?<br />

China will play a leading role in global economic recovery, new opportunities will come up,<br />

reason for us to get some further insights in China and business developments, which is the<br />

theme <strong>of</strong> this combined <strong>December</strong>/<strong>January</strong> issue.<br />

I do hope that we are overcoming the economic crisis, but I still have my doubts. Technically<br />

we may be out, but if we are effectively out….., time will tell ....<br />

On the contrary we see that the number <strong>of</strong> <strong>Dutch</strong> people in Singapore still has risen over<br />

the last year and the ADB has recorded its largest number <strong>of</strong> (new) members in history.<br />

This <strong>of</strong> course motivates us to take our tasks even further.<br />

<strong>December</strong> is family month Sinterklaas, Christmas, New years Eve. Most events you spend<br />

with family and friends, whether here in Singapore, in the Netherlands or any other place on<br />

this Earth, therefor I wish you and your families Merry Christmas and a Happy and Healthy<br />

New Year.<br />

Enjoy the holidays and see you next year on our traditional ‘Nieuwjaars borrel’ on the<br />

11 th <strong>of</strong> <strong>January</strong>!<br />

And in between the <strong>December</strong> festivities, do find the time to relax and read the ADB<br />

Magazine!<br />

Jan de Vegt<br />

‘<br />

The ADB provides opportunities for <strong>Dutch</strong> business people to meet, interact and share knowledge<br />

by means <strong>of</strong> company visits, lectures, networking events and membership communications. ’<br />

Marie-Hélène<br />

Piederiet<br />

Ard Huisman<br />

Richard van der<br />

Werf<br />

Frank Kuijsters<br />

Marleen<br />

Dieleman<br />

Rutger Oudejans<br />

Hans Loth<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


A monthly publication <strong>of</strong> the<br />

<strong>Association</strong> <strong>of</strong> <strong>Dutch</strong> <strong>Businessmen</strong><br />

ADB Board<br />

Jan de Vegt<br />

Marie-Hélène Piederiet<br />

Ard Huisman<br />

Richard van der Werf<br />

Frank Kuijsters<br />

Marleen Dieleman<br />

Rutger Oudejans<br />

Hans Loth<br />

Editorial Committee<br />

Frank Kuijsters, Chief Editor<br />

Gene Kwee<br />

Karin Gerbens<br />

Lineke van Nederpelt<br />

Richard Soemita<br />

Sara Caris<br />

Willem Anne Hoekstra<br />

President<br />

Honorary Secretary<br />

Honorary Treasurer<br />

Member<br />

Member<br />

Member<br />

Member<br />

Member<br />

Secretariat<br />

Lineke van Nederpelt<br />

Mailing Address:<br />

c/o 22 Camden Park, Singapore 299814<br />

Telephone: 9101 6201<br />

email: adb@pacific.net.sg<br />

C o n t e n t s<br />

Prologue 1<br />

Review<br />

Selling Wine in Singapore 3<br />

Business<br />

World Expo <strong>2010</strong> Shanghai China 4<br />

What does a Chinese consumer want? 6<br />

Rich, Richer, Richest: Wealth and Private banking 8<br />

in China<br />

Building business ties 10<br />

My Chinese adventure: hosting meetings and 12<br />

embracing naptime Sleeping in China?<br />

Under Chinese management 14<br />

Bizz Agenda 15<br />

Greenpage<br />

Low Carbon City Initiative 16<br />

Website<br />

Email<br />

: www.adb.org.sg<br />

: webmaster@adb.org.sg<br />

Travel<br />

China beaches 18<br />

Editorial contributions for the next issue may<br />

be sent or handed over to the ADB Secretariat,<br />

before or on the day <strong>of</strong> the monthly ADB<br />

meeting. The contents <strong>of</strong> this magazine are partly<br />

based on information received from third parties.<br />

The Committee does not take responsibility<br />

for the correctness <strong>of</strong> the articles.<br />

Designed by Jennifer Phua<br />

Printed by Khoo Sun Printing Pte Ltd<br />

MITA 373/03/2001<br />

Membership fee is S$ 100 per calendar year.<br />

For registration, please see the website www.<br />

adb.org.sg/en_member_signup.htm.<br />

Membership is renewed automatically effective<br />

the first month <strong>of</strong> the new calendar year.<br />

Make your cheque payable to “Assocation <strong>of</strong> <strong>Dutch</strong><br />

<strong>Businessmen</strong>” and send to ADB, c/o 22 Camden<br />

Park, Singapore 299814.<br />

Termination <strong>of</strong> membership must be received<br />

by ADB Secretariat in writing before 1 <strong>January</strong>,<br />

otherwise you will be charged for the full amount<br />

for the following calendar year.<br />

Please notify the ADB secretariat <strong>of</strong> any changes in<br />

employer, (email) addresses or any other personal<br />

particulars that might be <strong>of</strong> interest to the ADB<br />

administration.<br />

Interview<br />

Ask4Me in Guangzhou 20<br />

Doing business in China, an interview with 22<br />

Michiel Verhoeven<br />

Special<br />

The Little Red Book 25<br />

Tibet, or did the 13 th Dalai Lama kowtow? 26<br />

Know Your Tax<br />

China challenges Special Purpose Vehicles 28<br />

Column by...<br />

Richard Soemita<br />

Time to move to Paraguay? 29<br />

Business News 30<br />

Event Agenda 32<br />

Conference Calendar 34<br />

Embassy info 35<br />

association info 35<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Review<br />

Selling Wine in Singapore<br />

In <strong>January</strong> 2008 the big dream <strong>of</strong> Arjen Blom<br />

came through, he started his own wine business<br />

in Singapore. The name <strong>of</strong> the company was<br />

Wine Directions Pte Ltd and specializes in the<br />

import and distribution <strong>of</strong> boutique wines from<br />

New Zealand.<br />

During the ADB wine talk on Tuesday November<br />

17, <strong>2009</strong> it became clear that there are a lot<br />

<strong>of</strong> differences between the Netherlands and<br />

Singapore on the preference and consumption<br />

<strong>of</strong> wines.<br />

The <strong>Dutch</strong> have access to an abundant<br />

<strong>of</strong>fering <strong>of</strong> wines from the European continent,<br />

with the French wines leading the pact. Often is<br />

the preference for certain wines and wine styles<br />

passed on from generation to generation, as the<br />

parents guide their children <strong>of</strong>ten in the first wine<br />

experiences. There is also a lot <strong>of</strong> exposure to the<br />

European wines due to the holidays celebrated<br />

in the different wine producing countries. As<br />

a result they hardly look for wines beyond the<br />

European continent.<br />

For the common Singaporean, wine is a<br />

reasonable new phenomenon. Wine started to<br />

become a part <strong>of</strong> their lifestyle only 15 years<br />

ago. As there isn’t a wine tradition or legacy,<br />

they are open to wines from all over the world.<br />

Singaporeans are also adventurous with regards<br />

trying new products and styles, which also<br />

reflects in their wine choice.<br />

Australia is for many years the market leader<br />

in volume in the Singapore market and in retail<br />

they have a 60% market share, followed by France<br />

and much smaller volumes by Chile, USA, Italy and<br />

New Zealand. The main reason <strong>of</strong> the Australian<br />

success is the style <strong>of</strong> the Australian wines that<br />

suit the Singapore palate and the value for money<br />

aspect that these wines <strong>of</strong>fer.<br />

Also the proximity <strong>of</strong> Australia towards<br />

Singapore helps a lot as many Singaporeans have<br />

been there on holiday, send their kids to study<br />

in Australia and the supermarkets are filled<br />

with Australian produced products. That makes<br />

Australia a trusted brand which helps in selling<br />

their wines.<br />

In case you are not that familiar with the<br />

Australian wine region and wine styles, you can<br />

use the overview below as a guideline when<br />

buying your Australian wines.<br />

Western Australia<br />

• Margaret River: Chardonnay and Cabernet<br />

Sauvignon<br />

South Australia<br />

• Clare Valley: Riesling (dry style) and<br />

Shiraz<br />

• Barossa: Shiraz, Shiraz and more Shiraz<br />

• Adelaide Hills: Sauvignon Blanc, Pinot Gris<br />

and Pinot Noir<br />

• McLaren Vale: Chardonnay, Cabernet<br />

Sauvignon, Shiraz<br />

Victoria<br />

• Yarra valley: Chardonnay en Pinot Noir<br />

• Heathcote: Viognier and Shiraz<br />

• Macedon Ranges: Sparkling wines<br />

• Mornington Peninsula: Chardonnay and<br />

Pinot Noir<br />

Enjoy your next glass <strong>of</strong> wine.<br />

For more information about Wine Directions<br />

visit their website www.winedirections.com<br />

Arjen Blom<br />

More pictures on<br />

www.adb.org.sg<br />

Wilco Alberda, Michael Krayenh<strong>of</strong>f,<br />

Roderick Kasteel, Arnaud Schmutzer<br />

Marie Helene Piederiet, Mathieu Spros, Jurn<br />

Terpstra, Marcel Krol<br />

Wendy Laheij, Lyshia Liauw, Piet Groen<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

World Expo <strong>2010</strong> Shanghai China<br />

By Sara Caris<br />

Next year the World Expo will be organized in<br />

Shanghai, China.<br />

The World Expo is a large-scale, global and<br />

non-commercial exposition. It aims to promote<br />

the exchange <strong>of</strong> ideas and the development<br />

<strong>of</strong> the world’s economy, culture, science and<br />

technology; and to allow nations to publicise<br />

and showcase their achievements, as well as to<br />

improve international relationships.<br />

The World Expo has seen three eras since the<br />

first World expo in 1851 at the Chrystal Palace,<br />

London:<br />

1. Industrialisation from 1851–1938: World<br />

expositions were focused on trade and the<br />

display <strong>of</strong> technological inventions.<br />

2. Cultural Exchange from 1939–1991 : World<br />

expositions became more strongly based on<br />

a specific theme <strong>of</strong> cultural significance, and<br />

began to address issues <strong>of</strong> humankind.<br />

3. Nation Branding from 1992–present: Countries<br />

started to use World expositions more strongly<br />

as a platform to improve their national images<br />

through their pavilions<br />

Expo <strong>2010</strong> Shanghai China will be an event to<br />

explore the full potential <strong>of</strong> urban life in the 21 st<br />

century and a significant period in urban evolution.<br />

The prospect <strong>of</strong> future urban life, a subject <strong>of</strong><br />

global interest, concerns all nations, developed or<br />

less developed, and their people. Being the first<br />

World Exposition on the theme <strong>of</strong> city, Exposition<br />

<strong>2010</strong> will attract governments and people from<br />

across the world, focusing on the theme “Better<br />

City, Better Life.” For 6 months, participants<br />

will display urban civilisation to the full extent,<br />

exchange their experiences <strong>of</strong> urban development,<br />

disseminate advanced notions on cities and explore<br />

new approaches to human habitat, lifestyle and<br />

working conditions in the new century. They will<br />

learn how to create an eco-friendly society and<br />

maintain the sustainable development <strong>of</strong> human<br />

beings. Expo <strong>2010</strong> Shanghai China will centre<br />

on innovation and interaction. Innovation is the<br />

soul, while cultural interaction is an important<br />

mission <strong>of</strong> the World Expositions.<br />

Theme: Better City, Better life:<br />

In 1800, only 2 percent <strong>of</strong> the global population<br />

lived in cities, but by 1950, the figure had risen<br />

to 29 percent. In <strong>2010</strong> around 55 percent <strong>of</strong> the<br />

total human population will live in the city. Despite<br />

all its glories, there is no denying that the city<br />

today, because <strong>of</strong> high-density living patterns,<br />

faces a series <strong>of</strong> challenges, such as spatial<br />

conflicts, cultural collisions, resource shortages<br />

and environment degeneration. Without effective<br />

controls, the unchecked expansion <strong>of</strong> cities will<br />

aggravate these problems and consequently<br />

erode the quality <strong>of</strong> urban life.<br />

All the problems facing the city are believed<br />

to have originated from the discords between man<br />

and nature, between man and man, and between<br />

spiritual and material aspects <strong>of</strong> life. It is also<br />

maintained that such discord, if left unattended,<br />

will inevitably lead to the decline <strong>of</strong> the quality<br />

<strong>of</strong> life in cities and even the degeneration <strong>of</strong><br />

human civilisation.<br />

It is in the face <strong>of</strong> such discord that Expo <strong>2010</strong><br />

Shanghai China proposes the concept <strong>of</strong> a “City<br />

<strong>of</strong> Harmony” responding to the appeal for “Better<br />

City, Better Life.”<br />

So far, more than 180 countries and 34<br />

international organisations have confirmed their<br />

participation in World Expo <strong>2010</strong>, with 70 million<br />

visitors expected over 6 months. The Netherlands<br />

and Singapore have their own pavilion.<br />

The <strong>Dutch</strong> pavilion (4.000 m 2 ), designed by<br />

architect/artist John Körmeling, is called ‘Happy<br />

Street’. It’s an entire street in the shape <strong>of</strong> the<br />

number eight, an auspicious number in Chinese<br />

culture. Visitors to the pavilion stroll along 20<br />

houses in different styles that represent <strong>Dutch</strong><br />

architectural tradition, including designs by<br />

Gerrit Rietveld and Jan Wils.<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

With the theme ‘Better city, better life’<br />

Expo organisers have challenged participants<br />

to generate ideas for liveable cities in the 21 st<br />

century. As a largely urbanised and densely<br />

populated country, the Netherlands has much to<br />

<strong>of</strong>fer in this regard. The <strong>Dutch</strong> pavilion promotes<br />

sustainability, environment, and corporate<br />

social responsibility. It shows, for instance, the<br />

innovative ways in which Holland deals with<br />

space, energy and water.<br />

The Singapore pavilion (3.000 m 2 ) designed<br />

by Kay Ngee Tan Architects will showcase<br />

Singapore’s achievements in urban planning, water<br />

technology and environmental services, while<br />

promoting closer relations between the people<br />

<strong>of</strong> China and Singapore. The pavilion will also<br />

highlight Singapore’s ability to <strong>of</strong>fer a high-quality<br />

and integrated environment to live, work and<br />

play within a compact area through sustainable<br />

planning and development.<br />

The Singapore Pavilion is to be called<br />

Urban Symphony. The theme is best expressed in<br />

the pavilion’s<br />

architecture, one<br />

which evokes images <strong>of</strong> a<br />

musical box. It forms an orchestra<br />

<strong>of</strong> elements and a symphony for the senses<br />

– from the choreography <strong>of</strong> the plaza’s water<br />

fountain to the rhythm <strong>of</strong> fenestrations on the<br />

façade.<br />

Pictures and exhibits <strong>of</strong> Singapore adorn<br />

the way to the atrium space and main hall <strong>of</strong><br />

the first floor, where visitors will enjoy various<br />

activities; taking in performances right up to<br />

the expanse <strong>of</strong> the second floor’s column-free<br />

open space. Topping <strong>of</strong>f Singapore’s reputation<br />

as a much-admired garden city is the ro<strong>of</strong>top’s<br />

A Garden in the Sky. The pavilion’s four columns<br />

stand as symbols <strong>of</strong> the four main races plus their<br />

foreign guests, supporting the entire structural<br />

system on a floor comprised <strong>of</strong> different shapes<br />

and sizes. This demonstrates how while some<br />

<strong>of</strong> the Singaporean may come from elsewhere,<br />

they are all able to live, work and play together<br />

in perfect harmony while sharing the same<br />

common ground.<br />

When: May 1 st to October 31 st <strong>2010</strong><br />

Where: Waterfront <strong>of</strong> the Huangpu River<br />

between Nanpu Bridge and Lupu Bridge<br />

More information: http://en.expo<strong>2010</strong>china.com<br />

SALVAGE ASIA PTE LTD<br />

12A Jln Samulun • Singapore 629131 • Tel : +65 6591 5288 • Fax : +65 6591 5289 • www.ttbisso.com • info@ttbisso.com<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

What does a Chinese consumer want?<br />

By Frank Kuijsters<br />

Crisis or not, the Chinese economy continues to<br />

grow. The inhabitants <strong>of</strong> the People’s Republic<br />

are increasingly affluent. It is a dream market<br />

for many companies. But how do you get solid<br />

foothold?<br />

The Chinese today is not the same as him <strong>of</strong><br />

a few years ago. The living room <strong>of</strong> a family in a<br />

town like Shaoxing, in the east <strong>of</strong> the country,<br />

can now look just like those <strong>of</strong> a middle class<br />

family from Alkmaar or Oss.<br />

Today, the modern Chinese will be able to<br />

meet all his basic needs, and perhaps looks like<br />

the Westerner <strong>of</strong> a few generations ago. Yet he<br />

is looking for the luxury and comfort to match<br />

his new standard <strong>of</strong> living. It appears that the<br />

prosperity <strong>of</strong> the average Chinese in the coming<br />

years continues to rise rapidly. The gross national<br />

product is still growing, global crisis or not.<br />

Companies from around the world closely watch<br />

the Chinese consumers finding increasing financial<br />

prosperity.<br />

A few years ago DVD players, iPods, watches<br />

and mobile phones were enthusiastically welcomed<br />

and sold like hot cakes. But Chinese consumers<br />

are with their time. An overdose <strong>of</strong> choice and<br />

a growing welfare standard makes him more<br />

demanding and less satisfied. A proper strategy<br />

that is responsive to the wishes <strong>of</strong> modern<br />

Chinese is the key to business success in China.<br />

Metropolis<br />

But what are some 1.3 billion Chinese people<br />

today waiting for? A concrete top ten popular<br />

products or services is impossible to compile. But<br />

here some recommendations to get the modern<br />

Chinese onto your side.<br />

First: Focus on the “smaller” cities like<br />

Chengdu and Xiamen. Research indicates these<br />

places, where the average population still varies<br />

from 2 to 12 million people, as the most fertile<br />

markets for the moment. The population is not<br />

primarily critical, but the economic development,<br />

purchasing power and social status <strong>of</strong> the residents<br />

determine the attractiveness <strong>of</strong> the metropolis in<br />

the making.<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

Second: The Chinese over 40 years old are as a<br />

customer much less interesting than those in their<br />

twenties and thirties. The reforms introduced by<br />

Deng Xiaoping in the early eighties marked the<br />

beginning <strong>of</strong> the new China. The Chinese in their<br />

twenties and thirties have grown up in a market<br />

oriented China and are thus more open to foreign<br />

influence and innovations. Moreover, they have<br />

considerably more disposable income than older<br />

compatriots.<br />

Third: Invest in building a relationship with<br />

the Chinese consumer. Loyalty in Chinese goes<br />

far, especially in their choice <strong>of</strong> brands. But a<br />

brand must invest heavily to win the confidence <strong>of</strong><br />

Chinese people. Branding is therefore crucial. That<br />

effort is <strong>of</strong>ten rewarded, the chances are that a<br />

Chinese woman who is satisfied with the cream <strong>of</strong><br />

L’Oreal, will continue to buy L’Oreal for the rest<br />

<strong>of</strong> her life. For international brands there is a big<br />

challenge, because Chinese are naturally attached<br />

to home-grown products. Skepticism about import<br />

products is particularly with older, more traditional<br />

Chinese. Yet the young, modern Chinese is very<br />

explicitly looking for Western brands.<br />

Fourth: Choose the right sales channel.<br />

Modern Chinese are fond <strong>of</strong> shopping malls and<br />

hypermarkets, huge supermarkets where besides<br />

food, things like clothing and electronics are sold.<br />

The French Carrefour recently opened its 135 th<br />

store, the American Wal-Mart has opened this<br />

year 100 Shops. Whether a Chinese goes for his<br />

shopping to a mall, Wal-Mart, grocery store or uses<br />

the internet, all depends on his domicile. Smaller<br />

cities don’t always have a hypermarket, just like<br />

big cities virtually have no small neighborhood<br />

supermarkets anymore. Behind sale on the Internet<br />

is a great exclamation mark: the rise <strong>of</strong> Chinese<br />

online hoppers is unprecedented. Last year their<br />

number grew by over 137 percent, representing<br />

a flow <strong>of</strong> nearly 18 billion U.S. dollars.<br />

Finally: Think <strong>of</strong> the environment. Chinese<br />

consumers are increasingly environmentally<br />

conscious. Modern Chinese have already expressed<br />

a preference for sustainable business.<br />

Selfish consumers<br />

Researchers have identified eight different archetypes <strong>of</strong> the<br />

Chinese consumers in the 21 st century. The detailed pr<strong>of</strong>iles can be<br />

used with a product to match consumer preferences.<br />

1. Egoists (21.3%)<br />

People over 30, high income, averse to traditional values,<br />

eccentric, the early adopters.<br />

2. Hedonists (15.1%)<br />

Average income, attracted by anything new and trendy,<br />

especially out on pleasure and comfort.<br />

3. Traditional maximalists (12%)<br />

Thirties, low incomes, combined with a traditional mind<br />

up consumerism, status oriented, but their buying behavior<br />

influenced by traditional beliefs.<br />

4. Minimalist (11.8%)<br />

Predominantly women, risk-and little interest in new technology<br />

or innovation. Looking for the best value for money. Limit their<br />

consumption to basic necessities.<br />

5. Modern performers (11.5%)<br />

The serious consumer looking for the best quality and would be<br />

willing to pay more. Less sensitive trend, focus on career.<br />

6. Progressive maximalists (11.1%)<br />

Mostly men, average age 34 years, the richest little interested<br />

in environmental or social issues, especially from its own success<br />

and showing them.<br />

7. Traditionalists (9.4%)<br />

The typical small businessman, low price-conscious, especially<br />

for the long term. Family life and provide a good stable home<br />

and determine consumer attitudes.<br />

8. Conformists (7.9%)<br />

40 +, mostly women, great value to social and environmental rules,<br />

little interest in trends or status.<br />

Source: Roland Berger Strategy Consultants<br />

SKYPE<br />

INTERNET<br />

AANSLUITING<br />

SOFTWARE<br />

&<br />

HARDWARE<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

Rich, Richer, Richest: Wealth and<br />

Private banking in China<br />

By Willem Anne Hoekstra and Frank Kuijsters<br />

Wang Chuanfu Zhang Yin Xu Rongmao Huang Guangyu<br />

The number <strong>of</strong> Chinese US$ millionaires is expected to cross 450,000 by the end <strong>of</strong> the year, with<br />

their total assets under management hitting $1.73 trillion. Despite the global economic downturn,<br />

their wealth still expanded this year, creating growing opportunities for Private Bankers. In comparison:<br />

it will take another 4 years for the market in the rest <strong>of</strong> the world to regain 2007 levels. The global<br />

wealth dropped 11.7 percent last year to $92.4 trillion.<br />

China is arguably the most explosive wealth market in the world, as rising income and a high<br />

savings rate are likely to continue. The number <strong>of</strong> millionaires in China is expected to reach 800,000<br />

over the next four years.<br />

Wealth is very concentrated. Half <strong>of</strong> it is owned by only about 0.1% <strong>of</strong> the households, in particular<br />

in the regions Guangdong, Beijing, Shanghai and other coastal provinces. Although these millionaires<br />

saw growth, the total wealth in the country fell by 2.3 percent to $3.41 trillion last year, as the country<br />

witnessed volatile stock markets, plunging exports and fluctuating property prices throughout the crisis.<br />

Competition to service these customers grows. In 2007, foreign banking giants like HSBC, Citibank<br />

and BNP Paribas, have set up private banking operations.<br />

Of the local banks, Bank <strong>of</strong> China was the first Chinese bank to launch private banking business. It has<br />

now established private banking centres in 15 regions and last year bought the Geneva-based Heritage<br />

Fund Management. The Industrial and Commercial Bank <strong>of</strong> China, the nation’s largest bank by assets<br />

and retail network, will expand its private banking network from the current five cities to 10, to cover<br />

other economic regions like Yangtze River Delta, Pearl River Delta and central China.<br />

Rich Richer Richest<br />

The <strong>2009</strong> - list <strong>of</strong> richest people in China counts 130 dollar-miljardairs. In 2004<br />

there were only 3 multimillionaires. The number 1 <strong>of</strong> <strong>2009</strong> is Wang Chuanfu, executive <strong>of</strong><br />

BYD (electric cars). He has 5.1 billion dollar. Last year he was number 103 on the list, with<br />

only 880 million dollar.<br />

The investment <strong>of</strong> the American investor Warren Buffet has been good for his wallet.<br />

The richest man <strong>of</strong> 2008, Huang Guangyu, founder and then boss <strong>of</strong> white goods shops<br />

Gome, was with 6.3 billion dollar richer, but he is currently in prison and has disappeared<br />

from the list <strong>of</strong> richest people in China.<br />

The top ten richest are together worth 45.3 billion dollar, last year that was 40.1<br />

billion. Only three <strong>of</strong> the top ten <strong>of</strong> last year are back in the list. In 2004 the top ten had<br />

together “only” 7.9 billion.<br />

This year 6 out <strong>of</strong> 10 are in real estate developers. Last year only 4 were in real estate.<br />

If we look at the top 100 richest people in China, you could be in 2004 on the list if<br />

you had 100 million dollar, in <strong>2009</strong> you need that to be in the top thousand. Last year you<br />

needed at least 1 billion dollar to be in the top 100.<br />

The economical crises had only a slight impact on the total.<br />

Peking has at least 143.000 euro millionaires – 9 out <strong>of</strong> 1.000 inhabitants and almost<br />

9.000 who have more than 10 million euro. Shanghai’s in China’s second biggest city with<br />

116.000 millionaires – 6 out <strong>of</strong> 1.000 inhabitants and almost 7.000 who have more than<br />

10 million euro.<br />

<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

Name Billions ($) Company Industry<br />

1 Wang Chuanfu 5.1 BYD Electric cars, batteries<br />

2 Zhang Yin 4.9 Nine Dragons Paper Paper<br />

3 Xu Rongmao 4.7 Shimao Real estate<br />

4 Yang Huiyan 4.6 Country Garden Real estate<br />

5 Huang Wei & Li Ping 4.4 Sinhoo Real estate and finance<br />

5 Liu Yongxing 4.4 East Hope Group Chemicals, aluminium<br />

5 Lu Zhiqiang 4.4 Fanhai Real estate and finance<br />

5 Zhu Jianlin 4.4 Hoson Development Real estate<br />

9 Wang Jianlin 4.3 Wanda Group Real estate<br />

10 Liu Zhongtian 4.1 Zhongwang Group Aluminium, plastics<br />

10 Yan Bin 4.1 Reingwood Group Real estate, mining<br />

10 Zhang Jindong 4.1 Suning Retail, real estate<br />

13 Lv Xiangyang 4.0 Guangzhou Young Cars, gsm, batteries, mining<br />

13 Zong Qinghou 4.0 Wahaha Textile, beverages<br />

15 Chen Fashu 3.7 Xinhuadu Ind. Group Retail, gold and pharmaceutical<br />

16 Ma Huateng 3.6 Tencent Gsm and online activities<br />

17 Chen Lihua 3.4 Fu Wah International Real estate<br />

17 He Xiangjian 3.4 Midea Group Household appliances<br />

17 Huang Guangyu 3.4 Pengrun Investment Retail, real estate, private equity<br />

20 Liang Wen’gen 3.2 Sany Heavy Industry Industrial machineries<br />

20 Liu Yonghao 3.2 New Hope Group Real estate, chemistry, nutrition<br />

22 Chen Zhuolin 3.1 Agile Property Real estate<br />

22 Liu Canglong & Liu Hailong 3.1 Hongda Group Chemistry, metal and real estate<br />

22 Lu Guangqui 3.1 Wanxiang Group Car parts, real estate<br />

22 Xiuli Hawken 3.1 Renhe Group Real estate<br />

Source: Huron Report <strong>of</strong> Rupert Hoogewerf<br />

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Business<br />

Building business ties By Gene Kwee<br />

China has been Singapore’s top foreign investment<br />

destination for the last few years. Bilateral trade<br />

has been growing rapidly, making Singapore one<br />

<strong>of</strong> the largest investors in China since the first<br />

half <strong>of</strong> 2000. The entry <strong>of</strong> China into the WTO<br />

and the start <strong>of</strong> the China-Asean tariff reduction<br />

plan have further opened up the Chinese market.<br />

This provides more opportunities for Singapore<br />

to improve its bilateral trade relationship with<br />

China.<br />

Bilateral trade between Singapore and China has<br />

been flourishing since the two countries established<br />

diplomatic relations in 1990. The relationship<br />

is further strengthened by frequent high-level<br />

visit. Tellingly, when Chinese president Hu Jintao<br />

arrived in Singapore for a state visit recently in<br />

November <strong>2009</strong>, he spoke <strong>of</strong> the two nations’ “close<br />

friendship” and “cultural ties”. In response the<br />

Singapore’s foreign ministry reflected on the close<br />

friendship and strong ties between Singapore and<br />

China and the upcoming event as to celebrate 20<br />

years <strong>of</strong> diplomatic relations next year”.<br />

Foundations <strong>of</strong> the business ties<br />

As mentioned earlier, it was not until 1990 that<br />

Singapore opened relations with the People’s<br />

Republic <strong>of</strong> China, which it had accused <strong>of</strong><br />

supporting Communist movements in neighboring<br />

Malaysia, Indonesia and elsewhere in Southeast<br />

Asia. Many ethnic Chinese Singaporeans descend<br />

from people who fled civil war and Communist<br />

rule in the 20 th century. Today the circumstances<br />

have changed. Singapore and its neighbor countries<br />

are eager to build trade ties with China, but are<br />

clear that there is no intention <strong>of</strong> becoming vassal<br />

states.<br />

Singapore is known for its aptitude and its<br />

continuous drive to strive for further enhancements<br />

to enable growth. As an example, the government<br />

promotes Mandarin teaching to help business<br />

ties. From a Singapore perspective, the ties are<br />

not just commercial, but strategic.<br />

In addition, investments from China and<br />

Singapore in their respective territories are<br />

actively promoted through the Bilateral Council for<br />

the Promotion <strong>of</strong> Investments (established since<br />

18 May 2005). The objectives are threefold:<br />

1. to outline China’s investment environment<br />

and policies on foreign investment;<br />

2. to help Singaporean enterprises in China avoid<br />

difficulties and create a favorable business<br />

environment for them;<br />

3. to facilitate Chinese investment in<br />

Singapore.<br />

As a testimony <strong>of</strong> the strong belief <strong>of</strong> continuous<br />

building <strong>of</strong> the strong foundations <strong>of</strong> trade<br />

between the two countries, the China Council<br />

(China-Singapore Council for the Promotion <strong>of</strong><br />

Investment) is chaired by the Chinese Minister<br />

<strong>of</strong> Commerce and made up <strong>of</strong> relative bodies<br />

directly under the State Council <strong>of</strong> China and<br />

the Embassy <strong>of</strong> the People’s Republic <strong>of</strong> China<br />

in the Republic <strong>of</strong> Singapore (the Economic and<br />

President Hu speaking at the Singapore Chinese<br />

Chamber <strong>of</strong> Commerce & Industry<br />

10<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

Commercial Counsellor’s Office). The Singapore<br />

Council (Singapore-China Council for the Promotion<br />

<strong>of</strong> Investment) is chaired by the Singaporean<br />

Minister <strong>of</strong> Trade and Industry and made up <strong>of</strong><br />

relative bodies <strong>of</strong> Singaporean Government and<br />

the Singapore Embassy in Beijing (Commercial<br />

Section).<br />

A Secretariat has been established in both<br />

councils for daily contact. A senior <strong>of</strong>ficial from the<br />

Department <strong>of</strong> Foreign Investment Administration<br />

<strong>of</strong> the Chinese Ministry <strong>of</strong> Commerce will be<br />

appointed the Secretary-General <strong>of</strong> the China<br />

Council. A senior <strong>of</strong>ficial from the International<br />

Business Development Directorate <strong>of</strong> the<br />

Singaporean Ministry <strong>of</strong> Trade and Industry will<br />

be appointed the Secretary-General <strong>of</strong> the<br />

Singapore Council.<br />

With such an impressive backing it is not<br />

surprising that the mission <strong>of</strong> promoting, soliciting<br />

<strong>of</strong> bilateral investments and solving common<br />

investment problems and investors concerns<br />

through bilateral coordination and cooperation has<br />

proven to be very successful. To ensure a sustained<br />

level <strong>of</strong> success, a joint conference is typically<br />

held twice a year to allow for an exchange <strong>of</strong> views<br />

on bilateral investment. The conference is held in<br />

China and Singapore alternately. In principle, it<br />

will be chaired by chairmen from both councils.<br />

When the chairmen cannot attend the conference,<br />

it can be chaired by vice ministers supervising<br />

the investment affairs with the authority <strong>of</strong> the<br />

chairmen.<br />

Another factor that is likely to lead to further<br />

growth in trade between the two countries is<br />

the fact that Singapore and China have signed<br />

a comprehensive free trade agreement (FTA),<br />

which has been implemented on 1 <strong>January</strong> <strong>2009</strong>.<br />

Highlights <strong>of</strong> the FTA:<br />

• 85% <strong>of</strong> Singapore’s exports to China will be<br />

duty-free, with another 10% slated to be<br />

duty-free by <strong>2010</strong>.<br />

• All <strong>of</strong> China’s exports to Singapore will be<br />

duty-free.<br />

• Singapore and China businesses will get<br />

preferential access to the private healthcare<br />

and business services sectors.<br />

• China businesses will get preferential access<br />

to Singapore’s private education industry.<br />

• Greater flexibility for businessmen and<br />

pr<strong>of</strong>essionals to travel and work in both<br />

countries.<br />

Recent Performance<br />

Singapore’s trade with China has seen a tremendous<br />

growth over the last decades to over $90 billion<br />

last year compared to the $7.6 billion in 1994.<br />

China<br />

Singapore<br />

It is then no surprise that China is one <strong>of</strong><br />

Singapore’s largest trading partners. Recent<br />

developments such as the “flagship projects”<br />

in bilateral cooperation, including the Suzhou<br />

Industrial Park and Tianjin Eco-City projects,<br />

have seen remarkable achievements and the<br />

implementation <strong>of</strong> the free trade arrangement<br />

between China and Singapore has helped raise<br />

the level <strong>of</strong> the economic cooperation between<br />

the two countries.<br />

The business circles <strong>of</strong> Singapore have also<br />

voiced their belief that a stable and prosperous<br />

China would bring benefits to the region and<br />

the world as a whole. They also expressed the<br />

willingness to continue to play an active role in<br />

advancing mutually beneficial cooperation and<br />

bilateral ties between Singapore and China.<br />

Up until now, Singapore has made investments<br />

worth more than $60 billion in China.<br />

Looking at the intentions and the strong<br />

support from the government it can only be<br />

expected that the foundations are not likely to<br />

be eroded. During the last visit <strong>of</strong> President Hu<br />

a remark was made that China and Singapore<br />

should strive to create new opportunities for<br />

bilateral cooperation in an effort to realize<br />

economic recovery at an early date and calling<br />

for the two nations to work together to create<br />

an even brighter future. This all exudes a strong<br />

belief <strong>of</strong> the mutual benefit that the success<br />

<strong>of</strong> the China-Singapore trade and economic<br />

cooperation will bring to both countries.<br />

11<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

My Chinese adventure: hosting meetings<br />

and embracing naptime Sleeping in China?<br />

By Koert Breebaart<br />

Shenzhen - the Pearl above Hong<br />

Kong<br />

“The client is based in Shenzhen” an American<br />

voice told me over the phone. I had never heard <strong>of</strong><br />

that city in my life. Now I do. Here are some data<br />

points for you: Shenzhen is 1 hour north <strong>of</strong> Hong<br />

Kong and connected through the MRT system. The<br />

city has 14 million inhabitants, with an average<br />

age <strong>of</strong> 30! Only 20 years back it was a small fishing<br />

village, until Deng Xiaoping declared Shenzhen to<br />

be a Special Economical Zone. Now it is home to<br />

the largest companies in the world, coming with<br />

modern skyscrapers, luxurious hotels, complex<br />

infrastructure and a lot <strong>of</strong> HDB’s, following<br />

Singapore example. The one thing you directly<br />

notice when driving through Shenzhen is the chaos<br />

on the roads. Any ride turns into a rollercoaster. A<br />

Singaporean would get bended toes and lowered<br />

pants by the jaywalkers, the ghost riders, the<br />

It is Monday afternoon. I just arrived in China<br />

and I enjoyed lunch with my new colleagues.<br />

Back at my desk it is dark and you can hear<br />

a pin dropping on the floor where 80 people<br />

work. It feels unreal and I decide to check out<br />

the other floors and come to the conclusion that<br />

this Chinese multinational company sleeps, but<br />

only for a little while a day.<br />

<strong>Dutch</strong> Chinese resident with a mission<br />

As a management consultant for Accenture in<br />

Singapore I help clients, in general the top 500<br />

multinationals, to define their strategy and take<br />

responsibility for organizational change and<br />

business transformation. For the past 9 months I was<br />

leading a strategic project for a prominent Chinese<br />

client, one <strong>of</strong> the most admired companies in the<br />

world. Their mission is ambitious: become a leading<br />

player in the European market. Pr<strong>of</strong>essionally I had<br />

never faced such a great challenge before, leading<br />

such a change program in unknown territory. And<br />

to embark on this endeavor I first had to become a<br />

Chinese resident and learn basic Mandarin (which<br />

is a whole other story…!). The headquarter where I<br />

worked is impressive: spacious, modern, surrounded<br />

by small lakes, lanes and bridges. Nothing is left to<br />

the impression that this company is not going to<br />

conquer the world. Something different compared<br />

to ‘Industry Park Vianen’. Inside their gates over<br />

40.000 people live and work.<br />

tricycles on the highway and the unattended<br />

traffic lights. Several times I’ve said farewell to<br />

the world in the back <strong>of</strong> a taxi or bus.<br />

The main difference with cities like Hong<br />

Kong and Shanghai is that Shenzhen is considered<br />

mainland China and everything is in Chinese:<br />

conversations, menus, signs, telephone operators,<br />

you name it… The city is not really catered for<br />

westerners, but the good thing is, once you get<br />

through it, Shenzhen <strong>of</strong>fers the best restaurants<br />

in China, is extremely affordable and has a<br />

flamboyant nightlife.<br />

Learning on the job<br />

Commuting up and down Shenzhen, Monday to<br />

Friday from Singapore was a dragon travel. It<br />

took me 6-8 hours door-to-door, depending on<br />

luck and availability <strong>of</strong> transportation means,<br />

involving, taxi, plane, boat and limousine service.<br />

During the week I stayed in the impeccable<br />

Pavilion Hotel.<br />

In an over-simplistic way, you could say my<br />

work consists <strong>of</strong> preparing and hosting meetings.<br />

Two aspects stood out:<br />

- First, the dynamics <strong>of</strong> the meetings: organize<br />

a meeting in China with 2 or 3 people and you<br />

will find yourself presenting to an audience <strong>of</strong><br />

30 people. The unwritten rule is that anyone<br />

invited can invite others at their judgment or<br />

interest. So when the Accenture consultants<br />

come and speak everybody wants to listen<br />

12<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

in. After the meeting people just disappear,<br />

normally without giving any feedback.<br />

- And second, the people that attend the<br />

meeting: Chinese people. I found some good<br />

insight in differences between cultures on<br />

www.globesmart.com. After a close look at<br />

this picture I understood there was some work<br />

to be done. Grey is the Chinese, white the<br />

<strong>Dutch</strong>. This definitely helped me being more<br />

effective in my management style!<br />

Also a matter <strong>of</strong> learning through practice:<br />

Festive celebrations. A round table, plenty <strong>of</strong><br />

food and Chinese red wine are the ingredients <strong>of</strong><br />

Chinese New Year celebrations. You go around, yell<br />

“Gan Bei” to anyone, you laugh loudly, you slam<br />

the red wine away and then you yell something like<br />

“Happy Ox”. After some practice a lot <strong>of</strong> fun.<br />

Lunchtime was my favorite. We were given<br />

special pink ‘Tunch’ vouchers that we could<br />

exchange for food in the canteen. The food was<br />

rather good, very Chinese style. The Chinese word<br />

for food is ‘fan’, which also translates to rice. So<br />

there is rice mornings, midday’s and evenings.<br />

Sometimes there was ‘French fried’, but more<br />

<strong>of</strong>ten not. And then after lunch, the curtains close,<br />

the stretchers come out <strong>of</strong> under the desk, the<br />

lights go <strong>of</strong>f, the phones go on mute and everybody<br />

goes to sleep. I can assure you after nine hectic<br />

months: A wonderful oasis in the midst <strong>of</strong> turbulent<br />

meetings!<br />

Although the life experience gained working<br />

in China was fantastic, I am glad to be back in<br />

Singapore.<br />

13<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

Under Chinese management<br />

By Frank Kuijsters<br />

Is there something like a Chinese management<br />

style?<br />

Although the communist Mao Zedong Confucianism<br />

rejected as reactionary and feudal, the influence<br />

<strong>of</strong> the Chinese philosopher’s thoughts and actions<br />

<strong>of</strong> the population never completely disappeared.<br />

Indeed, even during the Cultural Revolution, when<br />

everything that smacked <strong>of</strong> the old China had to<br />

be destroyed, Confucius did affect the thinking<br />

and acting <strong>of</strong> the population. You can’t just erase<br />

25 centuries.<br />

Fundament<br />

The teachings <strong>of</strong> Confucius (551-479 BC) is known<br />

as the cultural foundation <strong>of</strong> China. He is described<br />

as “China’s first master” and has followers in East<br />

Asia. Confucius’ teachings originally transmitted<br />

only orally, but after his death by his students in<br />

writing. More than 1000 years long, to the early<br />

twentieth century, Chinese students were required<br />

to the wisdom and teachings <strong>of</strong> Confucius and<br />

learned by heart at any time could cancel out<br />

loud. The teachings in the Chinese psyche as such<br />

deep scars left as the Judeo-Christian morality<br />

in the western world.<br />

Confucianism is therefore, deliberately or<br />

not, major impact on the management <strong>of</strong> Chinese<br />

enterprises. The Journal <strong>of</strong> Management Studies<br />

in an article in 2007 concluded that the influence<br />

<strong>of</strong> Confucius on Chinese Management wasn’t<br />

estimated for a long time on its true value.<br />

The faster China’s economy develops, the<br />

more the Chinese seem to refer to their history<br />

and important figures <strong>of</strong> the past. The Chinese<br />

economic miracle is leading to a renaissance <strong>of</strong><br />

the ancient Chinese values. At several schools<br />

Confucius is educated again.<br />

“Zesjes” Culture<br />

Anyone who has done business in China will<br />

recognize: the way to a decision or agreement<br />

is long and full <strong>of</strong> bumps (see box ‘10 tips’).<br />

But if a decision has been taken, it also carried<br />

with dizzying speed, without reserve or wailing<br />

afterwards.<br />

It is not only a consequence <strong>of</strong> the top-down,<br />

authoritarian management culture, but it is also<br />

due to the Confucian work ethic. One can accuse<br />

the Chinese <strong>of</strong> many, but they do not lay down a<br />

“zesjes” culture. In addition, both employee and<br />

14<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business<br />

manager much more than we are accustomed<br />

to do their best for the groups interest.<br />

These success factors result directly from the<br />

thought <strong>of</strong> Confucius. More and more business<br />

schools have therefore placed Confucianism in<br />

their curriculum. Meanwhile the Chinese prove<br />

that their ancient philosophical mentor can be<br />

perfectly combined with western management<br />

techniques: Confucius has become an export<br />

product. Worldwide, there are already 210<br />

Confucius Institutes in 64 countries including<br />

one in The Hague.<br />

The doctrine <strong>of</strong> the master<br />

Of course the practice is <strong>of</strong>ten more stubborn<br />

than the philosophy. The abuses in some Chinese<br />

factories are similar to those described by Charles<br />

Dickens than to the l<strong>of</strong>ty musings <strong>of</strong> Confucius.<br />

Mao would be turning over in his tomb at the<br />

Square <strong>of</strong> Heavenly Peace.<br />

Yet the influence <strong>of</strong> Confucius is difficult<br />

to overestimate. Central to his philosophical<br />

principles are relationships, universal virtues<br />

and work ethic. Although they do not relate to<br />

organizations or businesses, they play in adapted<br />

form an important role. The loyalty between king<br />

and citizen is translated into such an employer<br />

has the responsibility for his employee, who in<br />

exchange faithful and is looking for his patron.<br />

The Confucian manager attaches a great<br />

importance on building relationships. He claims<br />

the group interests over individual performance.<br />

In some ways the Confucian ethical principles<br />

do surprisingly modern feel. The ideas <strong>of</strong> the<br />

American management guru Peter Drucker are<br />

similar to that <strong>of</strong> Confucius. And values like<br />

hard work, dedication and loyalty make us think<br />

again about Protestantism.<br />

Unwavering business principles in China<br />

1. Business Friends - Guanxi, or personal relationships are crucial.<br />

Never underestimate the importance <strong>of</strong> building a personal<br />

relationship with your business partners.<br />

2. Respect - Chinese build a relationship with people like<br />

themselves in an honorable way to show respect to others.<br />

3. Seniority - All relationships are in Chinese eyes by definition<br />

wrong, why it is important to show respect for age, seniority<br />

and background.<br />

4. Authoritarian - Managers are usually directively, a reflection <strong>of</strong><br />

the Confucian concept <strong>of</strong> hierarchical organization <strong>of</strong> society.<br />

5. Meaning - In exchange for loyalty, is the manager expected to<br />

show understanding and interest in all aspects <strong>of</strong> the life <strong>of</strong><br />

an employee.<br />

6. Politics - There are <strong>of</strong>ten close links between the senior<br />

management <strong>of</strong> an enterprise and local party <strong>of</strong>ficials.<br />

7. Face Loss - It is important for people not to lose their faces<br />

in the presence <strong>of</strong> their group. Respect seniority always and<br />

never let differences <strong>of</strong> opinion appear.<br />

8. Favors - Do as many others a favor, debt should ever be<br />

repaid.<br />

9. Business Card - Business cards must be presented formally<br />

at the start <strong>of</strong> a meeting. Treat it with respect card, the card<br />

is at that moment the man / woman.<br />

10. Patience - Meetings <strong>of</strong>ten last long and seemingly have no clear<br />

objective. Often such meeting not more than one step in building<br />

a relationship. The purpose <strong>of</strong> the meeting is more than the<br />

relationship to move forward than to a specific business goal.<br />

Bizz Agenda<br />

AESER <strong>2009</strong> (Asia-Pacific Embedded Systems<br />

Education and Research Conference)<br />

14-15 <strong>December</strong> <strong>2009</strong><br />

Nanyang Technological University, Singapore<br />

http://eos.ntu.edu.sg/APESER<strong>2009</strong>/<br />

Singapore International Arbitration<br />

Forum <strong>2010</strong><br />

21-22 <strong>January</strong> <strong>2010</strong><br />

Raffles City Convention Centre, Singapore<br />

http://www.siaf.sg/<br />

World Grains Trade Summit<br />

20 <strong>January</strong> <strong>2010</strong><br />

The Ritz-Carlton Millenia Singapore - Grand Ballroom, Level 1<br />

http://www.cmtevents.com/aboutevent.aspx?ev=100101&<br />

World Pharma Outlook Asia <strong>2010</strong><br />

25 <strong>January</strong> <strong>2010</strong><br />

Marina Mandarin Hotel, Singapore<br />

http://www.terrapinn.com/<strong>2010</strong>/pharmaoutlook/venue.stm<br />

15<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Green Page<br />

Low Carbon City Initiative<br />

1. Why is the initiative needed?<br />

China is the most populous country in the world.<br />

Its economy is also one <strong>of</strong> the fastest growing,<br />

with annual average GDP growth rates settling<br />

in at 9% to 10% over recent decades. The steady<br />

growth has attracted global attention for both<br />

outstanding economic figures and the potential<br />

environmental impacts resulting from the massive<br />

increase in energy consumption. Due to limited<br />

resources and environmental capacity at home<br />

and abroad, China is impelled to explore a path<br />

<strong>of</strong> sustainable development, which will contribute<br />

to development and security at national and<br />

international levels. Cities will play an important<br />

role in this challenge, because most energy is<br />

consumed in cities. In order to protect people<br />

and nature from dangerous environmental threats,<br />

sustainable development <strong>of</strong> China’s growing cities<br />

must become a top priority.<br />

Trend towards rapid urbanization. The<br />

number <strong>of</strong> cities in China has increased from 193 in<br />

1978 to 661 in 2005, among which 54 are so-called<br />

mega-cities and 84 are large cities, compared to,<br />

respectively, 13 and 27 in 1978. By the end <strong>of</strong> 2006,<br />

the urbanization rate in China was about 43.6%<br />

<strong>of</strong> the population. This rate is rapidly increasing,<br />

with 75% <strong>of</strong> the population estimated to live in<br />

cities by 2050.<br />

Heavy industrialization is on the rise. Energy<br />

consumption in heavy industries - such as iron<br />

and steel, chemicals and energy - accounts for<br />

70% <strong>of</strong> the total in the industrial sector, and is<br />

still growing at a fast pace. Industries themselves<br />

represent 70% <strong>of</strong> China’s total energy consumption.<br />

Heavy industry provides the goods and products<br />

which are increasingly consumed in cities.<br />

Conceptual Framework and Key Drivers for the Low Carbon City Initiative<br />

International and<br />

national public work:<br />

Export support <strong>of</strong> EE and<br />

RE industry<br />

Public private partnerships<br />

North-South:<br />

North-South EE and RE<br />

Technology transfer and<br />

cooperation<br />

City Planning<br />

Building<br />

Transport Industry/Utilities<br />

Public<br />

International B&I + academia:<br />

Best practice and expertise from developed countries<br />

EE: Energy Efficiency<br />

B&I: Business and industry<br />

Chinese policy work:<br />

Central/Provincial Government Support<br />

RE: Renewable Energy<br />

GAA: Government Aid Agency<br />

International and<br />

national B&I:<br />

Multi-national companies<br />

investment<br />

International and<br />

national B&I:<br />

Support from the<br />

financial sector<br />

International GAA:<br />

Fund support from other donors and countries<br />

Energy consumption in cities is increasing<br />

rapidly. The energy consumption increase in<br />

China’s cities does not only result from rapid<br />

industrialization, but also from the buildings and<br />

transportation sectors. There are 17 billion m 2 <strong>of</strong><br />

buildings in China’s urban areas, with 1 billion m 2<br />

added each year. China’s vehicle population is also<br />

growing quickly, having surpassed 150 million by<br />

June 2007. In addition, urban energy consumption<br />

per capita is estimated to be three times higher<br />

than that <strong>of</strong> rural areas. The annual migration <strong>of</strong><br />

approximately 10 million people from rural areas<br />

to urban centers projects a scenario <strong>of</strong> continued<br />

and rapid increase in urban energy consumption.<br />

Energy consumption causes serious<br />

environmental problems in cities. Vehicle<br />

emissions remain the biggest source <strong>of</strong> air<br />

pollution in cities. The pollution is the result <strong>of</strong><br />

factors such as inappropriate urban planning,<br />

insufficient public transportation investment,<br />

growing vehicle numbers and low gas emission<br />

control standards.<br />

The Chinese government attaches great<br />

importance to climate change and is creating a<br />

series <strong>of</strong> policies and measures to address the<br />

issue. One <strong>of</strong> the government’s initiatives to<br />

reduce the country’s contribution to climate<br />

change was to establish a national target to<br />

decrease energy intensity by 20% by <strong>2010</strong>. In a<br />

move to help China achieve this target, and to<br />

facilitate national and international low carbon<br />

development, WWF - with the support <strong>of</strong> local and<br />

global partners - will implement a Low Carbon City<br />

Initiative (LCCI) in China in the next 5 years.<br />

2. What is the initiative about?<br />

LCCI will explore low carbon development<br />

models in different cities, working to improve<br />

energy efficiency in industry, construction and<br />

transportation sectors. It will also address the<br />

development <strong>of</strong> renewable energy and ensure that<br />

other cities in China can learn from successful<br />

experiences and replicate them.<br />

LCCI will focus on:<br />

• Supporting the research and the implementation<br />

<strong>of</strong> policies which contribute to low carbon<br />

development,<br />

• Supporting capacity building on energy<br />

efficiency and renewable energy, and support<br />

demonstration projects,<br />

• Promoting energy efficient technology transfer<br />

and cooperation between China and developed<br />

countries,<br />

16<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Green Page<br />

• Exploring new finance and investment<br />

instruments and sustainable trade opportunities<br />

for energy efficiency and renewable energy<br />

industry,<br />

• Improving public awareness on climate change<br />

in order to enable and encourage Chinese<br />

citizens to save energy and the environment.<br />

3. Where does the initiative start?<br />

In the first stage, cooperative pilot projects will be<br />

implemented in the cities <strong>of</strong> Shanghai and Baoding.<br />

At a later stage more cities will be selected and<br />

join the Initiative.<br />

Shanghai:<br />

• New eco-building demonstrations including<br />

policy research on eco-building promotion and<br />

demonstration<br />

• Energy efficiency improvement <strong>of</strong> existing<br />

large commercial buildings including<br />

demonstration projects to promote energy<br />

consumption management systems, energy<br />

auditing and retr<strong>of</strong>itting, energy efficient<br />

operation, capacity building and international<br />

cooperation<br />

• 20 ways to 20% energy saving campaign, to<br />

raise public awareness <strong>of</strong> energy efficiency,<br />

and to extensively engage the people <strong>of</strong> China<br />

in energy saving<br />

Baoding:<br />

• Networking on sustainable energy knowledge<br />

management and technology cooperation<br />

including information database and service<br />

platform on renewable energy, patent prewarning<br />

mechanism on renewable energy<br />

technology, technology exchange and<br />

training<br />

• Encouraging the investment in and export <strong>of</strong><br />

sustainable energy products including policy<br />

research on ways to promote the renewable<br />

energy industry, training on international trade<br />

measures <strong>of</strong> renewable energy products, and<br />

exchange <strong>of</strong> investment and financing in the<br />

renewable energy industry<br />

• Capacity building in city planning and<br />

industrial park development including<br />

design and implementation <strong>of</strong> a Solar Energy<br />

Demonstration City action plan and Wind<br />

Energy Industrial Park development plan,<br />

and development <strong>of</strong> certification service and<br />

public technology platforms<br />

LCCI will also conduct activities in Beijing<br />

focusing on low carbon development policy,<br />

promoting the best practices derived from the<br />

pilot projects, and making the 20 ways to 20%<br />

energy saving campaign a success.<br />

Baoding’s Power Valley Jinjiang International Hotel is partially powered by<br />

self-generated solar electricity, which comes from nearly 4500sqm <strong>of</strong> solar PV<br />

panels that have been integrated into the hotel’s design.<br />

Exploring the low carbon city development<br />

path is promising yet challenging, and more<br />

participation and support from governments,<br />

research institutes, companies and international<br />

organizations is required. WWF will develop and<br />

deliver all LCCI activities together with partners<br />

on this open platform, joining global actions to<br />

combat climate change.<br />

Partners<br />

• Energy Research Institute <strong>of</strong> the National<br />

Development and Reform Commission<br />

• Shanghai Construction and Communication<br />

Commission<br />

• National Renewable Energy Industrial<br />

Production Base (Baoding)<br />

• Chinese Renewable Energy Industries<br />

<strong>Association</strong><br />

• Chinese Wind Energy <strong>Association</strong><br />

• Shanghai Research Institute <strong>of</strong> Building Science<br />

• Administration <strong>of</strong> Baoding National Hi-tech<br />

Industry Development Zone<br />

• HSBC Climate Partnership<br />

• WWF - UK, Netherlands, Sweden, Norway,<br />

Denmark<br />

Source: www.wwfchina.org/english/sub_loca.<br />

php?loca=1&sub=96<br />

17<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Travel<br />

China beaches<br />

By Sara Caris<br />

Lying on the beach is not the first thing that comes to mind, when you think about China. The average<br />

Chinese does not want to get a tan and most <strong>of</strong> them cannot even swim. Most <strong>of</strong> them are wearing an<br />

umbrella to protect from the sun because a tan doesn’t look very healthy. So it is hard to find any sunscreen<br />

below factor 30 and most <strong>of</strong> the creams are whitening. But <strong>of</strong> course it can be extremely hot, so to cool<br />

down they made a “Fake” Beach in Shanghai: Dino Beach. They claim it is the largest water park in Asia.<br />

The sand is imported from the south <strong>of</strong> China, a wave machine guarantees perfect surfing waves and the<br />

rumour goes that the ro<strong>of</strong> can be closed. Every year there is a Miss Beach Honey Pageant.<br />

But <strong>of</strong> course there are real beaches in China. Here is a guide with a variety <strong>of</strong> the best beaches.<br />

The island Putuoshan, Zhejiang (south <strong>of</strong><br />

Shanghai) is a relaxing and spiritual getaway with<br />

well-looked after patrolled beaches. This mystical<br />

place, seeped in folklore, has become a Buddhist<br />

sanctuary attracting pilgrims from all over China.<br />

Along the hike you’ll come across temples, the<br />

smell <strong>of</strong> incense in the air and sounds <strong>of</strong> distant<br />

chanting. If you climb 297m. to the top <strong>of</strong> its peak<br />

you have beautiful sea views.<br />

How to get there: A 12 hours ferry is the only<br />

way to get to the island from Shanghai. Seats or<br />

beds can be booked from the ticket <strong>of</strong>fice under<br />

Nanpu bridge (call 337 66178 to book) .<br />

At the east coast <strong>of</strong> China Qingdao, Shandong<br />

(classic fun beach) is famous for its beaches,<br />

its beer and its beer festival. Of its six beaches,<br />

Huiquan Beach (the leading bathing beach) is<br />

considered one <strong>of</strong> the best in China by the Chinese,<br />

and is very popular among young tourists. So you<br />

have to arrive early to claim a spot in the sand.<br />

The beach also hosts an annual sandcastle-making<br />

competition in August, but where they find the<br />

space is a total mystery.<br />

How to get there: Fly to Qingdao<br />

Located just across the straits from Taiwan,<br />

Xiamen is famous for its long stretch <strong>of</strong><br />

accessible beach and infinite island exploration<br />

possibilities.<br />

The Drum Wave Islet (eco beach) was for<br />

centuries the home <strong>of</strong> wealthy foreign and Chinese<br />

traders on China’s old Maritime Silk Road, the<br />

ca. 2 sqkm island is home to endless paths that<br />

meander through sea surf and wind-swept rocks.<br />

With cars, mopeds and even bicycles forbidden,<br />

tranquil Drum Wave is a stunning place for<br />

natural exploration, with numerous guesthouses<br />

and restaurants dotted here and there. Though<br />

it lacks much beach, it’s possible to swim <strong>of</strong>f<br />

its outcroppings. For real beach going, head to<br />

Xiamen proper, an island in itself with numerous<br />

beaching and sunning possibilities.<br />

How to get there: Fly to Xiamen. Take a ferry<br />

700m across Xiamen Harbor to Drum Wave Islet.<br />

The best place for kite surfing in China is<br />

Haiyuntai beach (sporty beach) in Xiamen.<br />

The 8km-long beach has become a haven for<br />

enthusiasts because <strong>of</strong> its wide stretches <strong>of</strong> sand<br />

and ever-changing windy conditions. One thing to<br />

be aware <strong>of</strong> is the drastic tide changes, so always<br />

double-check the weather conditions online before<br />

you go. Also, be aware <strong>of</strong> the rocky areas in the<br />

water towards the east <strong>of</strong> the beach. There’s a<br />

kite surfing centre on the sand.<br />

How to get there: Fly to Xiamen Airport and<br />

then get buses 29, 47, 503 or 805 to the Asia Gulf<br />

Hotel. For kite surfing lessons call: 13959211005.<br />

If you want a real castaway experience book a<br />

mid-week to the Gulangyu Island (empty beach)<br />

also known as the ‘Piano Island’ in Xiamen.<br />

On special occasions, national holidays and on<br />

weekends, the beaches will be relatively busy,<br />

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Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Travel<br />

but on the whole they are never to crowded.<br />

When you’ve made it onto the island everything<br />

is within walking distance. The traditional fishing<br />

bays are rustic and charming. Bring food for a BBQ<br />

in the pits provided, then meander the pathways<br />

to colonial mansions and past the dramatic seacrashing<br />

waves on the rocks.<br />

How to get there: From Xiamen Airport, take<br />

Bus 27 to the ferry.<br />

Hong Kong has many beaches. The Shek O<br />

beach (classic fun beach) has great facilities,<br />

sensational scenery and a laid-back party<br />

atmosphere. Her you see an mix <strong>of</strong> surf dudes,<br />

families, sunbathers, hippies and expat wives<br />

in relaxation mode. The small seaside village <strong>of</strong><br />

Shek O is a great place to wander or grab a bite<br />

to eat when you’ve finished tanning.<br />

How to get there: In Hong Kong; Take the<br />

MTR to Shau Kei Wan station and take exit A2.<br />

From the bus terminal, take Bus 9 heading to<br />

Shek O beach.<br />

You will find peaceful romance at Lamma<br />

Island. Yung Shue Wan is home to artsy expats and<br />

the most popular beach on the island, Hung Shing<br />

Yeh beach, is only a 15-minute walk. The sand is<br />

very fine here, and the water extremely clean,<br />

making it a Grade 1 beach. You can eat at a snack<br />

shack, have barbecue under the palms or have<br />

dinner at one <strong>of</strong> the fresh seafood restaurants at<br />

Sok Kwu. The almost unvisited Lo So Shing Beach<br />

also Grade 1 has a few amenities but is a peaceful,<br />

heart-skipping paradise.<br />

How to get there: Once you arrive in Hong<br />

Kong, catch a ferry from Central to Sok Kwu Wan<br />

(Lamma Island), then just follow the signs.<br />

The best beach destination <strong>of</strong> China is the<br />

island province Hainan and especially the area<br />

around Sanya City.<br />

The Shimei Bay (empty beach) <strong>of</strong>fers zero<br />

distractions but plenty <strong>of</strong> time to get lost in your<br />

own thoughts. In this tropical idyll you’ll have all<br />

the s<strong>of</strong>t sand to yourself. There isn’t any kind <strong>of</strong><br />

entertainment and it’s a long way to the local<br />

shops. Be sure to bring a few books as well as food<br />

and water. However, if you want all your essentials<br />

taken care <strong>of</strong>, the new luxury Le Meridien resort<br />

faces the beach and <strong>of</strong>fers comfortable loungers<br />

on the bay.<br />

How to get there: Fly to Sanya and it takes<br />

around an hour drive from Sanya to stay at Le<br />

Meridien Sanya.<br />

If you can find space, Dadonghai beach<br />

(classic fun beach) is the perfect place to lie<br />

back on your towel, close your eyes and listen<br />

to the delighted screams <strong>of</strong> children piling onto<br />

banana boats and lobbing balls at each other. On<br />

this family beach there is something to do every<br />

moment <strong>of</strong> the day. At the promenade you find<br />

meat stick stalls, Russian vodka bars and dozens<br />

<strong>of</strong> families wearing matching Hawaiian-style shirts<br />

and shorts. There’s also a mega shopping centre<br />

(Summer Mall) right by the shore selling all sorts<br />

<strong>of</strong> international brands. But if you actually get a<br />

chance to stop and look, the views are tropically<br />

gorgeous with white sands, palm trees and<br />

shimmering blue waters along the stretch <strong>of</strong> this<br />

crescent-shaped beach.<br />

How to get there: Fly to Sanya. Shuttle buses<br />

run from Sanya Airport to Dadonghai.<br />

You can find a ‘secret’ surfers spot at Houhai<br />

beach (sporty beach). The Chinese only started<br />

surfing in Hainan a few years ago. Locals will stand<br />

watching, perplexed, as crazy Westerners carve up<br />

this beautiful all-year-round long boarders wave.<br />

Local surf outfit Surfing Hainan will pick you up,<br />

take you there, lend and give instructions.<br />

How to get there: Fly to Sanya and stay in<br />

either Dadonghai or Yalong bay, or contact Surfing<br />

Hainan at www.surfinghainan.com.<br />

The China beach tour will finish at the famous<br />

resort brand the Banyan Tree. This is a villa-only<br />

resort with a private beach far from the sprawl <strong>of</strong><br />

Sanya City at the Luhuitou Bay (romantic beach).<br />

All the 61 secluded villas have a large ‘natural’<br />

private pool an outdoor sunken bathtub. The beach<br />

is private and <strong>of</strong>fers full amenities, plus you get<br />

your own little bed-cabin to hide away from the<br />

midday sun. This resort is a favourite get-away for<br />

the Chinese Heads <strong>of</strong> State.<br />

How to get there: Several airlines fly<br />

daily to Sanya from both Pudong and Hongqiao<br />

(prices vary). Banyan Tree Sanya arranges Sanya<br />

Airport pick-ups. For more information visit<br />

www.banyantree.com.<br />

More info on beaches in China: http://shanghai.<br />

urbanatomy.com/index.php/life-a-style/<br />

travel/1924-chinese-beaches-the-classics<br />

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Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Interview<br />

Ask4Me in Guangzhou<br />

By Frank Kuijsters<br />

Ask4Me is a product design agency that <strong>of</strong>fers western design services and operates from Guangzhou.<br />

China. From their head <strong>of</strong>fice in Guangzhou, founder and Director Boukje Koch tells us more about<br />

her organisation and working in China.<br />

Ask4Me<br />

Group focus<br />

on product<br />

development:<br />

prototyping,<br />

CAD<br />

engineering,<br />

casing design,<br />

electronic<br />

component<br />

selection,<br />

injection<br />

mould design.<br />

The strength<br />

<strong>of</strong> Ask4Me<br />

Group is that<br />

it is located<br />

in China.<br />

Since when do you live in China, and what<br />

kind <strong>of</strong> activities do you have in China?<br />

I came to China to set up a factory for a <strong>Dutch</strong><br />

company that develops and produces greeting<br />

cards with sound and light technology together<br />

with husband Jorg van den Hoven (MSc). We<br />

successfully built up a factory with 1000+<br />

employees. After a year or two we both missed<br />

work that was related to our education, product<br />

design development. So we decided to start our<br />

own product design agency. Ask4Me Group works<br />

for clients who already know that the production<br />

and assembly will be in China. We focus on product<br />

development: prototyping, CAD engineering,<br />

casing design, electronic component selection,<br />

injection mould design. The strength <strong>of</strong> Ask4Me<br />

Group is that it is located in China. For example,<br />

during engineering phase Ask4Me Group aims to<br />

design the product in such a way that the Chinese<br />

factory worker knows how to assemble the product<br />

without much explanation. Plus Ask4Me Group has<br />

the advantage that it has <strong>Dutch</strong>-Chinese dialogues<br />

during the whole product development, instead <strong>of</strong><br />

only during production and assembly. This reduces<br />

the problems <strong>of</strong> translating a product designed<br />

with a western mindset into Chinese production.<br />

How do the Chinese perceive you and<br />

Ask4Me?<br />

Looking at the size <strong>of</strong> China’s population, talking<br />

about “the Chinese” in general is quite difficult.<br />

Ask4Me Group is located in Guangzhou, which is<br />

the provincial capital <strong>of</strong> Guangdong province. We<br />

choose to locate in Guangdong as it has the best<br />

availability <strong>of</strong> materials, services and knowledge<br />

for consumer (electronic) products. Guangzhou is<br />

in the middle <strong>of</strong> Guangdong making it an easy HUB<br />

to go between cities in this province, and it has a<br />

good link to Hong Kong. The city has a population<br />

estimated around 11 million inhabitants.<br />

Guangzhou itself has a unique character; green,<br />

nice people, with international and alternative<br />

scenes. My experience with Chinese people is that<br />

they are very interested in what is not Chinese.<br />

For example, Ask4Me Group is <strong>of</strong>ten present at<br />

Chinese fairs and exhibitions related to product<br />

design. I notice that having a western face in the<br />

booth is already enough to attract many curious<br />

manufacturers. With its participation in Chinese<br />

Fairs Ask4Me Group tries to contribute to the<br />

definition <strong>of</strong> design in China: If you say you are<br />

a designer in China, most Chinese will think it<br />

is related to art, shapes, colors, graphics and<br />

20<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


fashion. We try to emphasize that design is also<br />

related to engineering and quality.<br />

What’s your most remarkable personal<br />

experience on doing business in China?<br />

It is difficult to feel bored as a product designer<br />

in China, one day is never the same. I like most<br />

projects we did so far: because every time it is a<br />

challenge to make things work. One nice example<br />

<strong>of</strong> last year is the “Kidsclock”. It is a clock for<br />

children who just start to have a concept <strong>of</strong><br />

‘time’, but who can’t read a clock yet. With a<br />

flying airplane (the second needle) and a slowly<br />

moving bicycle and car, the kids will learn when<br />

it is time to eat, sleep or take piano lessons. We<br />

spend great effort to get for example the right<br />

construction <strong>of</strong> the clock’s pointers, to find a good<br />

solution for the printed parts, design it in such a<br />

way that we can have all CE certifications and most<br />

<strong>of</strong> all keep the price competitive. The responses<br />

<strong>of</strong> distributors have been overwhelming for both<br />

our client and us.<br />

China is <strong>of</strong>ten regarded as one <strong>of</strong> the<br />

most competitive markets, amongst others<br />

because <strong>of</strong> tough competition and frequent<br />

prices wars. What strategy did you choose<br />

in this market?<br />

Our clients are mostly western clients that produce<br />

for Europe, the America’s or Australia. However,<br />

the number <strong>of</strong> our Chinese clients is growing.<br />

These clients want western design, because they<br />

can use that as a marketing strategy. Therefore<br />

the products we design for the Chinese market are<br />

mostly sold for high end prices, simply because<br />

they have the label European Design. This is the<br />

opposite compared to our western clients, they<br />

come to us for our competitive prices.<br />

What tips & tricks can you share with<br />

other <strong>Dutch</strong> businessmen seeking success<br />

in China?<br />

I am quite proud on my accomplishments. I like<br />

my work and have confident in my team: one<br />

day we are discussing mould changes with our<br />

mould partner, the other day I am sculpting a<br />

chair with a Chinese foam artist, the other day<br />

we are finding out what smells you can add to<br />

plastic. If I could change one thing, I wish things<br />

would take less time in China. Chinese prices are<br />

competitive compared to the West, but Chinese<br />

time consumption is not always as efficient as you<br />

hope for. However with all factories disappearing<br />

in many countries, China is the place where you<br />

can find out how stuff works. Not by browsing on<br />

the internet, but by actually seeing how they are<br />

made. This is a type <strong>of</strong> knowledge that is <strong>of</strong>ten<br />

forgotten, but essential for realizing innovation.<br />

For more information about Ask4Me visit their<br />

website www.ask4me-group.com.<br />

21<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Interview<br />

Doing business in China,<br />

an interview with Michiel Verhoeven<br />

By Marleen Dieleman<br />

Who are you and what is your position in<br />

Micros<strong>of</strong>t?<br />

I am Michiel Verhoeven and currently the Vice<br />

President <strong>of</strong> Micros<strong>of</strong>t Services for Asia-Pacific,<br />

Greater China, India and Japan (APJ). As a<br />

member <strong>of</strong> the Worldwide Micros<strong>of</strong>t Services<br />

Leadership Team, my role is to represent the<br />

Services organization in APJ with about 4,700<br />

employees and additional vendor staff. We have<br />

a Consulting & Premier organization, Sales teams,<br />

Customer Service & Support, and Global Delivery<br />

teams. These teams are instrumental in ensuring<br />

we successfully deploy Micros<strong>of</strong>t s<strong>of</strong>tware with<br />

our partners so that customers enjoy productive<br />

use <strong>of</strong> our technologies.<br />

Although I was born and raised in The<br />

Netherlands, I left about 20 years ago. A sense<br />

<strong>of</strong> adventure has always driven me, not in the<br />

least since my mum’s family has a long Indonesian<br />

history. I completed my HEAO degree in The Hague,<br />

attended a French university and enjoyed my MBA<br />

in the USA. After working in The Netherlands,<br />

France and the USA, Asia has been my home for<br />

almost 12 years now.<br />

How <strong>of</strong>ten do you travel to China, and what<br />

kind <strong>of</strong> activities do you have in China?<br />

I travel to China almost every six weeks and my<br />

usual engagements in China include meeting<br />

customers, business and technology partners, as<br />

well as meeting my colleagues there. Personally<br />

I believe it’s paramount for leaders to hear the<br />

voice <strong>of</strong> the customer, partner and employee<br />

first hand and advocate their needs across the<br />

worldwide organization. Building organizational<br />

capability is my first priority in China, while<br />

growing the business in a transparent manner.<br />

We have a large presence in China across sales,<br />

delivery, support and R&D organizations. So I<br />

try to spend a lot <strong>of</strong> time with the Micros<strong>of</strong>t<br />

China leadership team, members <strong>of</strong> the Services<br />

organization, including our customer service and<br />

support organization, sales and marketing teams<br />

and consulting delivery teams. The activities<br />

range from strategic leadership meetings and<br />

people reviews to conducting operational reviews<br />

and roundtable discussions with customers and<br />

employees. Connecting across the chain is a well<br />

orchestrated effort to gain insight and to motivate<br />

people. My trips usually include celebratory<br />

dinners with my teams to thank them for their<br />

contributions.<br />

How do the Chinese perceive you and<br />

Micros<strong>of</strong>t?<br />

Micros<strong>of</strong>t is a global organization and has been<br />

very active in participating in China’s commercial<br />

growth, having set up representative <strong>of</strong>fices in<br />

1992, followed by establishing ourselves formally<br />

in 1995. Then we gradually setup our R&D,<br />

Services and Research organization in China and<br />

it is important to note that in no other market<br />

place except the U.S. does Micros<strong>of</strong>t have such<br />

a comprehensive line <strong>of</strong> operations. Micros<strong>of</strong>t<br />

products are widely adopted and recognized in<br />

China. We have a deep commitment to invest<br />

in China for both local and global capabilities.<br />

Currently, we have over 6,000 employees,<br />

more than 13 branch <strong>of</strong>fices and more than 20<br />

technology centres, and we continue to see China<br />

as a very strategic market for the company’s<br />

future growth. China has a lot <strong>of</strong> potential as the<br />

top IT market by users worldwide, with over 200<br />

million Internet users and over 500 million mobile<br />

users. In addition, we are proud to develop a<br />

diverse talent pool with global capabilities not<br />

just in R&D, but also in our customer service and<br />

support organization, which boasts 21 nationalities<br />

working in our Shanghai <strong>of</strong>fice.<br />

As far as how I am perceived by my Chinese<br />

colleagues and business partners, I think the<br />

biggest challenge in the beginning was the fact<br />

that I probably look very young for someone in<br />

this position, especially since I am foreign and my<br />

colleagues must have thought I needed a lot <strong>of</strong><br />

coaching on local business practices – therefore,<br />

people who met me for the first time might not<br />

have tagged much credibility just by looking at<br />

me. What they didn’t know was the fact that I<br />

have lived in Asia for the past 12 years! That has<br />

certainly changed now and I have built a really<br />

strong relationship with my teams and business<br />

partners in China.<br />

My approach is to always find out what the<br />

customers want, and what pain point I can help<br />

them address. I want to share my experiences<br />

on my business philosophies and management<br />

learnings to my team and help them sharpen their<br />

customer focus, and show customers they are being<br />

listened to and taken care <strong>of</strong>. That, I feel, is a<br />

key step towards gaining credibility and winning<br />

trust from customers and partners. I also make a<br />

commitment to my teams and customers that I<br />

will visit once every 2-3 months and have them<br />

trust that we are always making sure things are<br />

22<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Interview<br />

running on the right track for them. That is also<br />

very comforting for them to know we are fighting<br />

for their rights and benefits.<br />

I also tell my team that people are not judged<br />

on their language capabilities, so I practice<br />

patience (especially when English was also not<br />

my mother tongue) when some <strong>of</strong> the team<br />

members have great ideas to share but might<br />

need some help conveying them in English.<br />

What’s your most remarkable personal<br />

experience on doing business in China?<br />

There are many stories to tell, and I have made<br />

mistakes, some are better told over beers. But I<br />

remember when I first started doing business in<br />

China, simple things such as seating arrangements<br />

are done with the utmost care and precision,<br />

whereas in Holland, we are a lot more casual and<br />

non-hierachical. I still have to smile when people<br />

are nervously leading me to a high-level customer<br />

meeting which can feel like a royal ceremony,<br />

complete with high chairs and tea.<br />

We are also more direct as a culture and tend<br />

to think it’s acceptable to tackle business issues<br />

head on. Being honest and open is what we value.<br />

So once somebody has said yes to what we ask for,<br />

we think it’s a done deal and a decision that will be<br />

acted upon. But it can be insulting, embarrassing<br />

and disrespectful to those surrounding you. We<br />

have to learn and appreciate the dynamics,<br />

while walking the corridors before and after<br />

the meetings, and doing the homework. It takes<br />

more effort to find out what’s been committed<br />

to and what not. It meant that as a <strong>Dutch</strong> person<br />

I have had to take risks on people without<br />

hearing the words I wanted<br />

to. That can cost dearly,<br />

although it creates amazing<br />

loyalty and traction. Stick<br />

to your values, no matter<br />

what cultural differences, is<br />

my belief. You can liberally<br />

use the <strong>Dutch</strong> style once<br />

people know you care about<br />

them. Then you make fun <strong>of</strong><br />

yourself and they will accept<br />

our directness. Hearing a<br />

“yes” is a real yes only when<br />

the validation is there in the<br />

actions and results.<br />

Ultimately, in my travels<br />

through China and other<br />

parts <strong>of</strong> Asia Pacific, I have<br />

found being approachable,<br />

interested and authentic<br />

the best way <strong>of</strong> overcoming<br />

differences. I have been<br />

thoroughly inspired by the<br />

diverse people I meet, and the<br />

great work we do together.<br />

China is <strong>of</strong>ten regarded as one <strong>of</strong> the<br />

most competitive markets, amongst others<br />

because <strong>of</strong> tough competition and frequent<br />

price wars. What strategy did you choose<br />

in this market?<br />

Our strategy has been working closely with<br />

our customers and business partners to gain<br />

trust and helping them build brand loyalty. For<br />

example, we recently announced a partnership<br />

with Agricultural Bank <strong>of</strong> China (ABC) through<br />

which Micros<strong>of</strong>t has been supplying s<strong>of</strong>tware,<br />

consulting, and technological support to help<br />

scale ABC’s business growth and competitiveness.<br />

We have gone live with very large mission-critical<br />

projects in the backend infrastructure supporting<br />

the consumer and corporate banking channels.<br />

This is <strong>of</strong> huge significance as we are providing<br />

solutions and are not only helping one <strong>of</strong> China’s<br />

largest banks with its desktop management, but<br />

also the backend infrastructure. We have been<br />

enjoying similar successes in China in other<br />

banks, telecommunications companies and large<br />

enterprises because <strong>of</strong> the solution sales and<br />

delivery approach with our partners. This goes<br />

beyond s<strong>of</strong>tware legalization and speaks to the<br />

level <strong>of</strong> trust in our technology and the ecosystem<br />

that we are building out.<br />

We have been working hard on educating<br />

Chinese institutions on the value <strong>of</strong> Intellectual<br />

Property (IP) and embracing the need to<br />

shift towards a knowledge economy. Through<br />

government citizenship programs, R&D, educational<br />

programs, channel programs, enterprise solution<br />

sales and delivery, while working closely with<br />

System Integrators (SI) and Independent S<strong>of</strong>tware<br />

23<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Interview<br />

Vendors (ISVs) to help them go to market. We also<br />

work very closely with our local OEM partners like<br />

Lenovo, to strengthen a stronger partnerships<br />

that will extend collaboration to benefit our end<br />

customers with integrated hardware and s<strong>of</strong>tware<br />

support. Enabling partner ecosystem and growing<br />

with the local industry is our long-term strategy<br />

and view, and we continue to see encouraging<br />

results on all fronts.<br />

Looking back on your activities in China,<br />

what would you do differently? What tips<br />

& tricks can you share with other <strong>Dutch</strong><br />

businessmen seeking success in China?<br />

I would certainly recommend people to live in<br />

China, which is something I have not had the<br />

chance to do. If you truly want to understand,<br />

motivate and influence, it’s best that you live<br />

there, build genuine connections and immerse<br />

yourself. Flying in and out <strong>of</strong> the country gives<br />

you impressions and insights but does not have the<br />

same impact. Learn the language if you can invest<br />

the time and have the discipline, make friends<br />

beyond work, and learn about communication<br />

styles and relationship networks.<br />

Here are a few lessons learned and tips:<br />

1. Be the voice <strong>of</strong> customers – Lead by example<br />

and show the teams how your company<br />

strategy flows through in execution.<br />

2. Invest in the best talent - People make the<br />

most difference in the quality <strong>of</strong> your service<br />

and product innovation. Take a long-term<br />

view to hire, develop, rotate and retain talent<br />

for China. Create a culture with passion and<br />

energy that is compelling and rewarding.<br />

Employees and customers will reward you.<br />

3. Never compromise on your values - Rooting<br />

out systemic issues in business practices will<br />

take a generation. The causes arise from<br />

economic differences, status quo and fearbased<br />

decisions. Address them and relentlessly<br />

advocate transparent business practices.<br />

Keep your focus on helping customers solve<br />

problems. Use data and business intelligence<br />

to effectively run your operations. Put<br />

yourself in the shoes <strong>of</strong> your staff, partners or<br />

customers and see their point <strong>of</strong> view when<br />

faced with challenging dilemmas. I believe a<br />

management team should trust their employees<br />

to do the right thing, but be ready to enforce<br />

accountability when it’s necessary.<br />

4. Be determined and accountable - When you<br />

are pursuing long term goals, it does come with<br />

short term deliverables and P&L constraints.<br />

Influence your headquarters, share global<br />

strategies and advocate local needs. Patience<br />

has never been my biggest strength and<br />

I’m constantly reminded. Holding people<br />

accountable on quarterly and annual results<br />

is relatively easy, but differentiation comes<br />

from influencing the drivers that allow you<br />

to execute on 3-5 year goals.<br />

As member <strong>of</strong> the Services organization,<br />

one <strong>of</strong> fundamental things we have to do is<br />

shift perception and educate the market on the<br />

value <strong>of</strong> intangible goods, as it is very different<br />

between the East and West. This means a constant<br />

commitment to excellence from pre-sales all the<br />

way to support, and life cycle management to<br />

help our customers understand their needs and<br />

their rights.<br />

I see this as a long term cultivation <strong>of</strong> mutual<br />

understanding and see mutual business benefits in<br />

China. I encourage you to advocate best practices,<br />

spend time and make effort to build informal<br />

relationships. Take an interest in your business<br />

associates and their families and you’ll find that<br />

there are a lot <strong>of</strong> shared family values between the<br />

Chinese and the <strong>Dutch</strong> cultures. If you establish<br />

a connection and build trust, your business<br />

experience in China should be a successful and<br />

pleasant one for many years to come.<br />

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24<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Special<br />

The Little Red Book<br />

By Richard Soemita<br />

Quotations from Chairman Mao Zedong, better known in the West as The Little Red<br />

Book, was published by the Government <strong>of</strong> the People’s Republic <strong>of</strong> China from April<br />

1964 until approximately 1976. As its title implies, it is a collection <strong>of</strong> quotations excerpted<br />

from Mao Zedong’s past speeches and publications. The book’s alternative title The Little Red<br />

Book was coined by the West for its pocket-sized edition, which was specifically printed and<br />

sold to facilitate easy carrying. The closest equivalent in Chinese is, literally “The Red Treasured<br />

Book”, which was a term popular during the Cultural Revolution.<br />

The most printed book in the twentieth century, Quotations had an estimated 5 to 6.5 billion<br />

copies printed during Mao’s attempt to transform Chinese society. The book’s phenomenal<br />

popularity may be due to the fact that it was essentially an un<strong>of</strong>ficial requirement for every<br />

Chinese citizen to own, to read, and to carry it at all times during the later half <strong>of</strong> Mao’s rule,<br />

especially during the Cultural Revolution.<br />

During the Cultural Revolution, studying the book was not only required in schools but was<br />

also a standard practice in the workplace as well. All units, in the industrial, commercial, agricultural,<br />

civil service, and military sectors, organized group sessions for the entire workforce to study the book<br />

during working hours. Quotes from Mao were either bold-faced or highlighted in red, and almost all<br />

writing, including scientific essays, had to quote Mao.<br />

To defend against the theory that it would be counter-productive, it was argued that understanding<br />

Mao’s quotes could definitely bring about enlightenment to the work unit, resulting in production<br />

improvement to <strong>of</strong>fset the time lost.<br />

During the 1960s, the book was the single most visible icon in mainland China, even more visible<br />

than the image <strong>of</strong> the Chairman himself. In posters and pictures created by CPC’s propaganda artists,<br />

nearly every painted character, except Mao himself, either smiling or looking determined, was always<br />

seen with a copy <strong>of</strong> the book in his or her hand.<br />

After the end <strong>of</strong> the Cultural Revolution in 1976 and the rise <strong>of</strong> Deng Xiaoping in 1978, the importance<br />

<strong>of</strong> the book waned considerably, and the glorification <strong>of</strong> Mao’s quotations was considered to be left<br />

deviationism and a cult <strong>of</strong> personality. The original books now became a collector’s item and some<br />

editions are highly sought after. The book has been translated in many languages, even in <strong>Dutch</strong> and<br />

was first published in 1967 by A.W.Bruna & Zonen.<br />

Mao’s quotations are categorized into 33 chapters in the book. Its topics mainly deal with Mao’s<br />

ideology, known in the West as Maoism and <strong>of</strong>ficially as “Mao Zedong Thought.”<br />

25<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Special<br />

Tibet, or did the 13 th<br />

Dalai Lama kowtow?<br />

By Willem Anne Hoekstra<br />

Kowtow: To kneel and touch the forehead to the<br />

ground in expression <strong>of</strong> deep respect, worship,<br />

or submission, as formerly done in China.<br />

My good father taught me that there are<br />

three subjects to avoid during conversations at<br />

the dinner table: Money, Politics and Women.<br />

How right he was. When I was having dinner with<br />

a Greek colleague in Athens many moons ago, I<br />

casually mentioned the case <strong>of</strong> Macedonia. This<br />

resulted in a 3-hour passionate lecture from<br />

his side on how unfair and wrong the claim <strong>of</strong><br />

independence <strong>of</strong> the Macedonians was, because<br />

in 14 th century... Similarly I was ignorant enough<br />

to mention something neutrally supportive <strong>of</strong><br />

the Palestinians to an Israeli friend <strong>of</strong> mine. A<br />

big mistake, it took months before we were on<br />

speaking terms again. Did I mention my friend<br />

in Northern Ireland yet? Maybe I am ‘een beetje<br />

dom’?<br />

Two years ago, I was on a business trip to our<br />

<strong>of</strong>fice in Shanghai, and I was silly enough to ask<br />

about the situation in Tibet. Me and my big <strong>Dutch</strong><br />

opinionated mouth. Wasn’t it that China invaded<br />

poor Tibet, and the Dalai Lama is the good guy who<br />

now tries to liberate the poor monks, right? Well,<br />

not quite, according to my Chinese colleagues.<br />

Soon I understood that Chinese students are<br />

taught that Tibet has been an “inalienable part<br />

<strong>of</strong> Chinese territory”, from the time <strong>of</strong> the Yuan<br />

Dynasty conquest onward. Now how did today’s<br />

dispute start? The essence <strong>of</strong> the conflicting claims<br />

<strong>of</strong> three parties <strong>of</strong> the sovereignty over Tibet can<br />

only be understood in the context <strong>of</strong> history, and<br />

more importantly, the interpretation <strong>of</strong> history.<br />

First a few facts. Tibet was first unified under<br />

King Songtsän Gampo in the 7 th century. Over the<br />

last centuries, a line <strong>of</strong> spiritual leaders called<br />

Dalai Lamas ruled as head <strong>of</strong> government, ruling in<br />

a close relationship with the Chinese Dynasties.<br />

In 1904, the British invaded the country,<br />

after Tibet had been closed to all foreigners for<br />

half a century. The British then agreed with the<br />

Chinese that the Qing would have sovereignty<br />

in return for a British fee and free trade with<br />

Tibet. Following this, the Qing government sent<br />

a military expedition <strong>of</strong> its own to establish direct<br />

Chinese rule and deposed the Dalai Lama in an<br />

imperial edict.<br />

In 1913, (after the fall <strong>of</strong> the Chinese<br />

Qing dynasty) the 13 th Dalai Lama proclaimed<br />

independence and expelled all Chinese<br />

representatives, an action never accepted by<br />

China, or by any other state. Tibet however de<br />

facto lived autonomous for the next 36 years,<br />

whilst the republic <strong>of</strong> China (ROC) endured its<br />

Warlord era, civil war, and World War II.<br />

The ROC was ruling mainland China between<br />

1912-1949, before it took refuge, and today de<br />

facto is based and governing Taiwan. It has kept<br />

its claim to legitimate sovereignty over China,<br />

including Tibet. Note that even during its factual<br />

government <strong>of</strong> China, it did never have real<br />

control over the region.<br />

The new People’s Republic <strong>of</strong> China PRC,<br />

which governs China since 1949, contends that<br />

according to the “Succession <strong>of</strong> States Theory”<br />

in international law, all subsequent Chinese<br />

governments (Ming Dynasty, Qing Dynasty, ROC<br />

and PRC) have succeeded the Yuan Dynasty<br />

in exercising de jure sovereignty and de facto<br />

power over Tibet.<br />

The Tibet government in exile, under<br />

leadership <strong>of</strong> the 14 th Dalai Lama, has a different<br />

reading <strong>of</strong> history. In their view, during the earlier<br />

dynasties, Tibet and China cooperated on the<br />

basis <strong>of</strong> ‘benefactor and priest’ relationship,<br />

perhaps comparable to the Vatican and Italy.<br />

The relationship did not imply “subordination<br />

<strong>of</strong> one to the other”. The 13 th Dalai Lama, for<br />

example, knelt, but did not kowtow, before the<br />

Empress Dowager and the young Emperor while<br />

he delivered his petition in Beijing. Chinese<br />

26<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


sources emphasize the submission <strong>of</strong> kneeling<br />

here, whilst Tibetan sources emphasize the lack<br />

<strong>of</strong> the kowtow.<br />

In 1950, the PRC invaded Tibet, in an attempt<br />

to liberate it from the ruling Tibetan government,<br />

which held the despotic rule <strong>of</strong> aristocracy and<br />

monasteries in power, rejecting any form <strong>of</strong><br />

modernization, at the expense <strong>of</strong> 95% <strong>of</strong> Tibetans<br />

<strong>of</strong> the population who lived like ‘serfs’ in a feudal<br />

serfdom or “hell on earth”. Except from a very thin<br />

top layer in society, Tibetans had no mentionable<br />

access to education, care, democracy, media, and<br />

lived in primitive conditions. Mao Zedong stated<br />

that the decision to unite Tibet into the PRC was<br />

done to achieve ethnic equality and to “free<br />

Tibetans from imperialist oppression”.<br />

Tibetan sources however describe the<br />

people in the same period as happy, content, and<br />

devoted to Buddhism. It is a religious devotism<br />

which clearly finds a different interpretation in<br />

Marxist / communist ideology. Is religion a freedom<br />

or a means <strong>of</strong> oppression?<br />

In any case, one year after the invasion, the<br />

PRC and Tibetan representatives both signed and<br />

ratified the “Seventeen Point Agreement for the<br />

Peaceful Liberation <strong>of</strong> Tibet”, in which Tibet is an<br />

autonomous region within the Chinese sovereignty,<br />

and recognition <strong>of</strong> the Dalai Lama and <strong>of</strong> the<br />

Panchen Lama. However, Tibetan leaders later<br />

contended this treaty, as it was signed under<br />

pressure (the PRC had 20.000 troupes waiting at<br />

the border)<br />

The Tibet territory has always been under<br />

debate. Two provinces (Xikang and Qinghai) that<br />

were excluded from the treaty, revolted when<br />

they faced the Chinese land redistribution policies.<br />

This 1957 upraise was forcefully suppressed by<br />

the Chinese People’s Liberation Army, allegedly<br />

not shy <strong>of</strong> brutal torture. The number <strong>of</strong> freedom<br />

fighters grew rapidly, receiving American support,<br />

leading to the summit in the Lhasa uprising <strong>of</strong><br />

1959. A gathering <strong>of</strong> 30.000 people at the Dalai<br />

Lama’s palace was dramatically shelled with PLA<br />

artillery. Some reports estimate the casualties in<br />

all the conflicts as much as 85.000. Clearly, the<br />

Chinese ‘peaceful liberation <strong>of</strong> Tibet’ had gone<br />

terribly wrong and was widely condemned. Various<br />

countries and committees openly disapproved,<br />

and the UN General Assembly condemned China<br />

for “violations <strong>of</strong> fundamental human rights<br />

<strong>of</strong> the Tibetan people” in 1959, 1961 and 1965<br />

resolutions.<br />

Following the defeat, the Dalai Lama fled to<br />

India, and formed a government-in-exile. The PRC<br />

sees the continued western support to the Dalai<br />

Lama, the government-in-exile and resistance<br />

movements as a threat to Chinese territorial<br />

integrity, sovereignty and stability.<br />

Jetsun Jamphel Ngawang Lobsang Yeshe Tenzin<br />

Gyatso, better known as the 14 th Dalai Lama, was<br />

born in 1935 and proclaimed the tulku or rebirth<br />

<strong>of</strong> the 13 th Dalai Lama at the age <strong>of</strong> two.<br />

Since the invasion, reports on the situation are<br />

quite contradictory. Chinese sources claim rapid<br />

progress for prosperous, free, and happy Tibetans<br />

participating in democratic reforms. Tibetans,<br />

on the other hand, call the PRC rule illegitimate,<br />

motivated solely by the natural resources and<br />

strategic value <strong>of</strong> Tibet. They say the Chinese<br />

feel superior to the Tibetans, using assimilationist<br />

policies and even genocide, aimed at destroying<br />

Tibet’s distinct ethnic makeup, culture, and<br />

identity, thereby cementing it as an indivisible<br />

part <strong>of</strong> China. So far there has been no open and<br />

free election under Chinese rule yet.<br />

The current policy <strong>of</strong> the Dalai Lama, is that<br />

he does not seek full independence for Tibet,<br />

but would accept Tibet as a genuine autonomous<br />

region within the People’s Republic <strong>of</strong> China, under<br />

the democratic condition <strong>of</strong> freedom <strong>of</strong> speech<br />

and expression and genuine self-rule.<br />

The Human Rights Watch World Report 2008<br />

reports on Tibet: “Widespread and numerous<br />

instances <strong>of</strong> repression target ordinary citizens,<br />

monks, nuns, and even children in an effort to<br />

quash alleged ‘separatism’.” The examples given<br />

are those arrests <strong>of</strong> protestors, political graffitiwriters,<br />

and others unsolicited expressions <strong>of</strong><br />

opinion.<br />

Today, the Tibet government in exile is not<br />

recognized by any government in the world.<br />

The territory is part <strong>of</strong> China. However, various<br />

governments and international institutions do<br />

support the social and cultural activities organized<br />

by the government-in-exile.<br />

At this point I notice I have been living in<br />

Singapore for too long. I think to myself: yeah lah,<br />

but if you write politically loaded graffiti slogans<br />

on a public wall, organize a protest, or loudly<br />

voice an opinion in conflict with the government,<br />

or expect open and free elections, obviously you<br />

will be arrested and imprisoned or caned. But is<br />

this normal?<br />

Both parties seem to have point, whether the<br />

Dalai Lama kowtowed or not. But I think my good<br />

father was right. Better not raise the subject at<br />

the dinner table. Especially not with Chinese<br />

business prospects.<br />

27<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Know your tax<br />

China challenges Special<br />

Purpose Vehicles<br />

By Pieter de Ridder and Nicolien Luijsterburg <strong>of</strong> Loyens & Loeff<br />

With the introduction <strong>of</strong> the new Enterprise Income Tax Law (“EIT”) in 2008 and the subsequent regulations<br />

issued by the State Administration <strong>of</strong> Taxation (“SAT”) <strong>of</strong> China, new anti-avoidance rules have entered<br />

into force and more attention is paid by China to tax avoidance arrangements.<br />

During the course <strong>of</strong> <strong>2009</strong>, the SAT issued various circulars to combat tax avoidance and tax treaty<br />

abuse. In <strong>January</strong> <strong>2009</strong>, a circular was issued in which the SAT further explained the rationale <strong>of</strong> the<br />

general anti-abuse clause as included in the EIT. It was announced that, among others, the SAT was likely<br />

to challenge structures where, in their view, investors abuse China’s tax treaties. Tax treaty benefits can<br />

be disallowed if the main purpose <strong>of</strong> invoking a tax treaty is to obtain Chinese tax benefits. In this regard,<br />

countries such as Singapore, Mauritius, Barbados and Ireland may expect more attention from the SAT.<br />

A favorable tax treaty could reduce local Chinese withholding taxes on dividend distributions, interest<br />

payments as well as royalty payments substantially. Also, a limited number <strong>of</strong> China’s tax treaties protect<br />

against China’s 10% non-resident capital gains tax due on gains realized by a foreign investor on the sale<br />

<strong>of</strong> its Chinese investment. The SAT explained in another Notice, that<br />

in order to benefit from reduced withholding taxes on dividends<br />

under a tax treaty certain conditions must be met. Among others<br />

(i) the recipient <strong>of</strong> the dividend must be a tax resident <strong>of</strong> the other<br />

treaty jurisdiction; ii) the recipient <strong>of</strong> the dividend must be the<br />

beneficial owner <strong>of</strong> the dividend; and iii) the dividend must qualify<br />

as a dividend under the tax law <strong>of</strong> China. SAT requires the taxpayer<br />

to prove - with substantial documentation - that the requirements<br />

to be able to benefit from the tax treaty are met.<br />

The SAT went on to deny tax treaty benefits in two important<br />

cases this year, the Chongqing case and the Xinjiang case, which<br />

deserve attention and watching by the international investment<br />

community in relation to how the Chinese tax authorities may behave<br />

in international structures where a special purpose vehicles (“SPV”)<br />

is used. In the Chongqing case, a Singapore company (“SingCo 1”)<br />

sold the shares <strong>of</strong> another Singapore company (“SingCo2”) which, in<br />

turn, held shares <strong>of</strong> a Chinese company. The SAT disregarded SingCo<br />

2 for tax purposes and subsequently subjected SingCo 1 to tax on the capital gains realized with the sale.<br />

In the Xinjiang case, the tax treaty between China and Barbados was disregarded as, according to the<br />

SAT, the Barbados company was unable to prove its tax residency in Barbados.<br />

More recently, on 5 November <strong>2009</strong>, the SAT released its newest circular to tackle foreign structures<br />

which addresses the issue <strong>of</strong> “Beneficial Ownership under Tax Treaties”. In order to enjoy the reduced<br />

withholding tax rates on dividends, interest or royalty payments under a tax treaty, the recipient <strong>of</strong> the<br />

payment should qualify as the beneficial owner. Based on the newest circular, beneficial owner refers to<br />

any person who owns or has control over certain income or the rights or assets which give rise to such<br />

income. Also, the beneficial owner should generally be engaged in substantial business activities and<br />

cannot be an agent or a conduit company.<br />

In relation to the above, the tax circular stipulates that a substance-over-form approach will be<br />

applied. For example, if the applicant has the obligation to pay or distribute all or a substantial part<br />

<strong>of</strong> its income (e.g., more than 60%) to a third country resident within a prescribed time (e.g., within<br />

12 months after receiving such income) this may jeopardize its beneficial ownership status.<br />

When taking the above into account it is obvious that China is currently developing its anti-abuse<br />

legislation. In this regard, China is likely to scrutinize common international tax structures where<br />

investments into China are structured through a SPV located in a jurisdiction which has a favorable tax<br />

treaty with China. It is therefore now, more then ever before, important that proper attention is given to<br />

ensuring that the holding structure <strong>of</strong> Chinese investments can be supported by sufficient business arguments<br />

and substance that justify the structure. Investors should consult their tax advisers in order to establish<br />

the right investment structure, both for existing as well as for new investments into China.<br />

A favorable tax treaty could reduce<br />

local Chinese withholding taxes on dividend<br />

distributions, interest payments as well<br />

as royalty payments substantially. Also,<br />

a limited number <strong>of</strong> China’s tax treaties<br />

protect against China’s 10% non-resident<br />

capital gains tax due on gains realized by<br />

a foreign investor on the sale <strong>of</strong> its Chinese<br />

investment.<br />

28<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Column By…<br />

Time to move to Paraguay?<br />

Richard Soemita<br />

I<br />

was at Boat Quay last Friday after a long time. All I<br />

could see is expats being ripped <strong>of</strong>f. Which brings me<br />

to the point that we pay far too much for a pint <strong>of</strong> beer<br />

i.e. double if not triple what you will get in any other local<br />

neighbourhood or hawker centre. Of course I could go and<br />

sit in any hawker centre on a bright yellow plastic bench<br />

staring miserable in front <strong>of</strong> me and watching out for the<br />

trolley man to take away your glass if you have not touched<br />

it every 10 seconds, but BQ just happens to be a stone<br />

throw away from the CBD and that’s were all the bankers,<br />

traders and lawyers have a drink after work, as you do.<br />

I was recently in Bali were there are at least 3<br />

prices for everything: local price, other Bali price and<br />

foreigner price. One day I went to the local market and<br />

bought some fruit. My Bali friend asked me how much I paid,<br />

and was appalled at the enormous amount I had been skinned<br />

for (even though it had seemed cheap to me). So imagine my<br />

joy and his embarrassment when 2 days later he went to the<br />

same market, and for the same order <strong>of</strong> fruit had ended up<br />

paying more! After I told him to leave his Gucci sunglasses<br />

and Amrani T-shirt home in future, even though they were<br />

fake (given the spelling mistake).<br />

Well, Singapore is heading that way: we do not want to live<br />

in an HDB flat, have to hire maids since grandparents do not<br />

live in to look after our kids, we pay taxes and do not get any<br />

allowances or CPF and all non-Asian restaurants are basically<br />

put there for us angmohs, where they can charge us at least<br />

SGD 250 for not even a decent meal and a bottle <strong>of</strong> wine for 2<br />

persons. The average meal in a hawker centre is just over SGD<br />

2.50. For those who can calculate, this 100 times more ! Do we<br />

earn 100 times more than the locals? Furthermore you DO NOT<br />

want to eat in a hawker centre every month, let alone every<br />

day. On that note: you realize how much MSG is being served<br />

at an average food stall? Just let your food digest for an hour<br />

until you feel your heartbeat going up gradually and have the<br />

terrible urge to drink 2 gallons <strong>of</strong> water. Its like sitting in death<br />

row waiting for a massive heart attack to strike you. I call it<br />

the wasabi-attack. Put some <strong>of</strong> the green stuff in your mouth<br />

and wait for 12 seconds (I have timed it) until you think that<br />

your brain has imploded and wants to come out <strong>of</strong> your nose<br />

after it has filled up your sinuses.<br />

On the world rank, Singapore is the 13 th most expensive city<br />

for expats, even above New York. Moscow is on number 1, but<br />

that is probably due to an army <strong>of</strong> security personal you need<br />

to hire for not being robbed at daylight.<br />

Coming back on the restaurants that serve angmoh food.<br />

We should all boycott them until the price levels come down<br />

to a reasonable level. Not to mention to improve the quality<br />

and train their staff how to serve the Western way ie. serve<br />

everyone their meal at the same time, do not take things away<br />

from the table if they feel like and do not write everything<br />

on their notepad even if you order just a bottle <strong>of</strong> sparkling<br />

water.<br />

After all I feel that it is only the expats that keep the<br />

whole area from Boat Q up to Robertson Q running. Without<br />

us (including my Indian friends at East Coast Park and the<br />

Filipino maids at Lucky Plaza on Sundays) Singapore would<br />

be for sure a ghost town. In a recent survey it appeared that<br />

Holland is the most popular European destination for expats<br />

in terms <strong>of</strong> length <strong>of</strong> stay. More than 3 quarters <strong>of</strong> expats now<br />

living in Holland have been there for 3 or more years. HKG<br />

and Singapore were ranked 5 th and 6 th respectively. But in<br />

terms <strong>of</strong> cheapest place to live in for expats it is Asuncion,<br />

the capital <strong>of</strong> Paraguay.<br />

29<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business news<br />

Sources: Het Financieele Dagblad and Reuters<br />

The Netherlands is out <strong>of</strong> recession<br />

The <strong>Dutch</strong> economy grew by 0.4% in the third quarter <strong>of</strong> this year, compared with the<br />

previous quarter, meaning the country is now <strong>of</strong>ficially out <strong>of</strong> recession. The new figures<br />

from the national statistics <strong>of</strong>fice CBS show the first period <strong>of</strong> economic growth in a year.<br />

On an annual basis, however, the economy contracted by 3.7%. ‘According to normal<br />

definitions, the Netherlands is now out <strong>of</strong> recession,’ the CBS said in a statement.<br />

‘It’s nice to be able to signal the recovery but we still can’t hang out the flags,’ CBS<br />

economist Michiel Vergeer said. Consumers are still reluctant to make major purchases<br />

in particular. ‘They are keeping their hands on their cash,’ Vergeer said.<br />

Exports<br />

The recovery is still very fragile and almost entirely depends on improvements in<br />

the export market. Exports are still lower than a year ago but the decline is smaller<br />

than in the second half. The finance ministry said the news showed that government<br />

efforts to combat the recession are working. ‘The effect <strong>of</strong> the stimulus package<br />

is now visible,’ a spokesman said. New figures from the European Union statistics<br />

<strong>of</strong>fice Eurostat show that the eurozone as a whole is also out <strong>of</strong> the recession.<br />

Working dads’<br />

problems in spotlight<br />

Budget deficit deadline<br />

2013, says minister<br />

Dredger Boskalis to<br />

take over Smit<br />

Dredging company Boskalis has made a<br />

€60 a share <strong>of</strong>fer for maritime services<br />

group Smit. The takeover, described as<br />

a merger, has the backing <strong>of</strong> a group <strong>of</strong><br />

Smit shareholders who control 44% <strong>of</strong><br />

the company. ‘Combining our companies<br />

creates a <strong>Dutch</strong> maritime player <strong>of</strong> a<br />

global scale. The merger fits excellently<br />

with our strategy aimed at reinforcing<br />

and expanding our maritime services,’<br />

said Peter Berdowski, Boskalis CEO. The<br />

scheme is also backed by Smit’s CEO Ben<br />

Vree who last year rejected takeover<br />

attempts by Boskalis, including a €1.1bn<br />

<strong>of</strong>fer. Boskalis has built up a 25% stake<br />

in Smit since those talks broke down<br />

in <strong>December</strong> 2008. Analyst Edwin de<br />

Jong from SNS Securities said Boskalis’<br />

commitment to maintain current Smit<br />

strategy and the board job for Vree could<br />

be behind the change <strong>of</strong> heart.<br />

Family minister André Rouvoet is to<br />

start research into the problems fathers<br />

have combining their careers and caring<br />

for their children. Rouvoet said that<br />

a ‘cultural shift’ needs to be made at<br />

work, in the school playground and in<br />

board rooms to make sure fathers can<br />

spend more time with their families. The<br />

research will look at the choices working<br />

fathers feel they have to make in terms <strong>of</strong><br />

career opportunities in order to become<br />

more involved with their children. The<br />

Netherlands still tends to see childcare as<br />

the primary task <strong>of</strong> mothers while fathers<br />

continue to work full time, the minister<br />

said. ‘The question is, is this what fathers<br />

who wish to see their children grow up and<br />

mothers who wish to develop pr<strong>of</strong>essionally<br />

actually want?,’ Rouvoet was saying. Last<br />

month, a survey by the government’s social<br />

policy unit SCP showed most <strong>Dutch</strong> couples<br />

are happy with the 1.5 income household<br />

set-up, whereby men work full time and<br />

women work fewer hours.<br />

The European Commission will probably<br />

order the Netherlands to cut its budget<br />

deficit to below the <strong>of</strong>ficial EU level by<br />

2013, finance minister Wouter Bos said.<br />

Under EU rules, the budget deficit must<br />

be below 3% <strong>of</strong> gross domestic product. It<br />

also emerged France and Germany must<br />

bring their deficits back under control<br />

by 2013. ‘I do not have the impression<br />

that the Netherlands is being treated any<br />

different to other countries,’ Bos said,<br />

following a meeting <strong>of</strong> EU ministers in<br />

Brussels. The commission expects the<br />

<strong>Dutch</strong> budget deficit to reach 6% next<br />

year. Bos said it would be a ‘challenging<br />

deadline but not impossible’. The finance<br />

minister did say he was concerned about<br />

how ready some member states are to<br />

follow the commission’s instructions.<br />

France has already said it will be difficult<br />

to cut its 8.3% budget deficit in line with<br />

Brussels’ timetable. The EU’s economic<br />

affairs commissioner Joaquin Almunia will<br />

formally announce the deadlines.<br />

Ministers pledge action<br />

on early retirement<br />

Ministers have agreed to draw up proposals<br />

to encourage older workers not to take<br />

early retirement and to get employees to<br />

take on more older staff. The measures<br />

are to be combined with the increase in<br />

the state pension age from 65 to 67 and<br />

were agreed at parliamentary debate on<br />

the pension plans. CDA MP Pieter van Geel<br />

pointed out during the debate that just<br />

38% <strong>of</strong> men aged 60 to 65 are still working,<br />

as are 18% <strong>of</strong> women. But social affairs<br />

minister Piet Hein Donner, who is in charge<br />

<strong>of</strong> steering the pension legislation through<br />

parliament, told later it is harder for young<br />

people to find a job than the over-45s.<br />

Although a majority <strong>of</strong> MPs support the<br />

planned pension age increase, there was<br />

much criticism <strong>of</strong> ministers’ proposals to<br />

help people who do ‘heavy work’.<br />

SNS Reaal moves back into pr<strong>of</strong>it<br />

Financial services group SNS Reaal posted<br />

net pr<strong>of</strong>it <strong>of</strong> €26m in the third quarter <strong>of</strong><br />

<strong>2009</strong>, the Utrecht-based company said<br />

in a trading update. Both the banking<br />

and insurance arms were back in the<br />

black, SNS said. SNS posted a loss over<br />

2008 as a whole following a poor second<br />

half and made a loss in the first half <strong>of</strong><br />

<strong>2009</strong> as well. SNS said its cost reduction<br />

and integration programmes are on<br />

schedule and shareholders’ equity is up<br />

‘significantly’ compared with the end <strong>of</strong><br />

June. The company also said it expected<br />

to take a provision in the fourth quarter to<br />

pay for its share <strong>of</strong> the savings guarantee<br />

scheme for customers <strong>of</strong> bankrupt DSB<br />

bank. SNS said its portion would be 6%.<br />

Based on the central bank’s estimate <strong>of</strong><br />

a maximum requirement <strong>of</strong> €3.25bn, SNS<br />

could face a charge <strong>of</strong> up to €195m, news<br />

agency Reuters said. SNS has had €750m<br />

in state support to ease it through the<br />

financial crisis and will pay back €185m<br />

raised through a September share issue<br />

later this month. CEO Ronald Latenstein<br />

told a conference call there was no<br />

timetable on repaying the rest. ‘It’s a bit<br />

early to predict anything in that area.<br />

Our intention to go to full repayment is<br />

clearly there.’<br />

30<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Business news<br />

Sources: Het Financieele Dagblad and Reuters<br />

‘Heavy work’ focus <strong>of</strong> pension plan critique<br />

Opposition MPs launched a strong attack on the cabinet’s<br />

plans to increase the state pension age from 65 to 67 during<br />

a parliamentary debate. In particular, ministers’ decision to<br />

force employers to find other jobs for people who have done<br />

‘heavy work’ for 30 years came under fire. The Liberals are<br />

not opposed to the pension age increase in principle. However,<br />

the coalition has made a ‘monster’ out <strong>of</strong> the plan, Liberal<br />

leader Mark Rutte said. The move will deliver savings too<br />

late, is unfair, is unworkable when it comes to people who<br />

do heavy jobs and will have a drastic effect on employers,<br />

Rutte said.<br />

Employers<br />

The cabinet has agreed to increase the state and corporate<br />

pension age from 65 to 66 in 2020 and then to 67 in 2027. They<br />

also plan to make it easier for people who do ‘heavy work’<br />

to still retire at 65 or be given new, lighter duties by their<br />

employers. The VVD suggests that everyone who has earned<br />

at least 70% <strong>of</strong> the minimum wage for 40 years should still be<br />

allowed to retire at 65. This would get around the problem <strong>of</strong><br />

how to cope with people who have done hard physical labour<br />

and cannot work any longer, Rutte said. Alexander Pechtold,<br />

leader <strong>of</strong> the Liberal democratic party D66, said it would<br />

probably be impossible to define the concept <strong>of</strong> ‘heavy work’.<br />

Femke Halsema, leader <strong>of</strong> the left-wing greens Groenlinks<br />

also supports the increase in principle. But she sided with the<br />

Liberals’ 40-year plan and dismissed the cabinet’s proposals<br />

as a ‘political patchwork’.<br />

Unworkable<br />

The Socialists and anti-Islam PVV both support the current<br />

65-year retirement age. The PVV came under attack from other<br />

parties for saying an end to migration from Muslim countries<br />

would produce enough cost savings to eliminate the need to<br />

raise the state pension age. Labour’s parliamentary leader<br />

Mariette Hamer said the party is prepared to drop the heavy<br />

work clause if it proves to be unworkable. ‘ But we will come<br />

up with something else,’ she was quoted as saying. ‘ Employers<br />

must take responsibility for their workers’ careers.’ The debate<br />

is set to continue.<br />

ING moves back into pr<strong>of</strong>it<br />

Financial services group ING confirmed it had booked net pr<strong>of</strong>it<br />

<strong>of</strong> €499m and underlying pr<strong>of</strong>it <strong>of</strong> €778m in the third quarter<br />

<strong>of</strong> this year, reversing a year <strong>of</strong> decline. But the company gave<br />

no more details <strong>of</strong> its plans to split <strong>of</strong>f its insurance activities.<br />

ING announced its third quarter figures on October 26, at the<br />

same time it broke news <strong>of</strong> the separation and a €7.5bn rights<br />

issue. The split up is part <strong>of</strong> the agreement reached with the<br />

European Commission on ING’s €10bn capital injection from<br />

the <strong>Dutch</strong> state. CEO Jan Hommen said ING has completed<br />

most <strong>of</strong> the first stage <strong>of</strong> its restructuring process but gave no<br />

more information. ‘It was not an easy decision,’ quoted him as<br />

saying. ‘But I strongly believe this is the right decision at the<br />

right moment. The financial services sector will be transformed<br />

by the crisis and the winners will be those who win back the<br />

trust <strong>of</strong> their clients.’<br />

Half Holland’s households run<br />

financial risks<br />

Some half <strong>of</strong> the Netherlands’ seven million households<br />

are running the risk <strong>of</strong> getting into financial trouble because<br />

they don’t have enough savings, says family spending institute<br />

Nibud in a new report. Nibud says 25% <strong>of</strong> households never save<br />

and a further 25% only put money away for a rainy day when they<br />

have some left over. And four out <strong>of</strong> five households never look<br />

at what their future spending needs are likely to be. In addition,<br />

a quarter <strong>of</strong> households are overdrawn at the bank at least<br />

once a month and one third have a non mortgage-related loan,<br />

quoted Nibud as saying. Impulsive people who look for comfort<br />

and an easy life, and career-oriented people with a fondness<br />

for luxury are the most likely to get into financial difficult, the<br />

report found.<br />

31<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Event Agenda<br />

BODY WORLDS: The original and the cycle <strong>of</strong> life<br />

DATE : 23 rd Oct <strong>2009</strong> to 6 th Mar <strong>2010</strong>, Mon-Fri 10am - 6pm<br />

(Closed on Mondays except school and public holidays)<br />

VENUE : Science Centre Singapore<br />

SYNOPSIS<br />

BODY WORLDS: The Original and the Cycle <strong>of</strong> Life features real specimens and has<br />

a special focus on health, wellbeing and the ageing process. This unique exhibition<br />

<strong>of</strong>fers an amazing insight into the human lifecycle.<br />

At the exhibition, you’ll discover the mysteries <strong>of</strong> how the human body develops<br />

through time; at its most radiant and as it changes, matures and finally wanes.<br />

TICKET PRICE (exclude booking fee): Adult $20, Primary Student $12,<br />

Secondary Student/Senior/Group $16<br />

MORE INFORMATION: http://www.science.edu.sg<br />

Reverie: Cirque on Ice<br />

and Carnival<br />

DATE : 27 th Nov <strong>2009</strong> to 27 th Dec <strong>2009</strong><br />

Tue-Sun: 3.30pm, 7.30pm<br />

Reverie-Cirque on Ice Carnival<br />

(Daily 2.30pm - 9pm)<br />

VENUE : Singapore Indoor Stadium<br />

SYNOPSIS<br />

Soar and spin into the fantasy dream world <strong>of</strong> ice and<br />

snow this Christmas as Singapore Indoor Stadium (SIS)<br />

presents “Reverie: Cirque on Ice” at World’s first and<br />

biggest temporary arena - Arena Stadium Waterfront -<br />

starting from 13 th <strong>of</strong> November <strong>2009</strong>.<br />

Reverie: Cirque on Ice, the creation <strong>of</strong> former Cirque<br />

de Soleil acrobat and aerialist Michael McPherson, will take<br />

the audience to an enchanted and colourful dreamworld<br />

<strong>of</strong> fairies, nymphs and mythical creatures. With novel<br />

combination <strong>of</strong> theatrical circus artistry and heart-stopping<br />

acrobatic performances through seamless blending and<br />

gliding <strong>of</strong> skaters with soaring aerialists moving in their<br />

spectacular costumes to the spellbinding music on the<br />

fantastical set under the striking visual lighting.<br />

Reverie- Cirque on Ice Carnival” (27 Nov-27 Dec) will<br />

be a thematic non-gated monthlong series <strong>of</strong> interesting<br />

events and activities to complement SIS’ arena events and<br />

hype up year end festivities, and justifies for a “Uniquely<br />

Singapore” branding.<br />

TICKET PRICE (exclude booking fee): $60, $90, $120 (VIP)<br />

Free entry for “Reverie- Cirque on Ice Carnival”<br />

DURATION: Approx 120 mins<br />

MORE INFORMATION: http://www.sis.gov.sg/reverie.htm<br />

Celebrate Christmas<br />

in Singapore<br />

DATE : 18 th Dec <strong>2009</strong> to 25 th Dec <strong>2009</strong><br />

18 th - 24 th Dec <strong>2009</strong>, 6.00pm - 10.30pm<br />

25 th Dec <strong>2009</strong>, 3pm - 11pm<br />

VENUE : Various venues in Orchard Road area<br />

SYNOPSIS<br />

Stroll along Wisma Atria and Ngee Ann City and discover<br />

how Christmas is celebrated in different cultures. Check<br />

out nightly performance featuring mimes, plays, musicals<br />

and more! Enjoy the Floats Parade on Orchard Road and<br />

bask in the joyous atmosphere.<br />

Take on the sights and sounds <strong>of</strong> Orchard Road. As<br />

you walk through Orchard Road enjoying Christmas in the<br />

Tropics Light Up, also enjoy the showcasing <strong>of</strong> the mega<br />

size displays base on the Christmas scenes.<br />

Join in the interactive Christmas story and experience<br />

Bethlehem from over 2000 years ago! Pose with the three<br />

wisemen, walk through Bethlehem’s market streets and<br />

catch performances at King Herod’s Palace and the stable<br />

at the nativity scene.<br />

On 25 th Dec evening, a Grand Concert will be happening<br />

on Christmas Day on Orchard Road, literally! Take your<br />

family portrait with the 7 beautifully decorated Floats that<br />

will be parked at Orchard Road on 25 th Dec <strong>2009</strong>. Join in the<br />

1000 strong Line Dancing on 25 th Dec night.<br />

Share the Joy <strong>of</strong> distributing the gifts to representatives<br />

from various charities. So, Share the Spirit <strong>of</strong> Christmas and<br />

come Celebrate Christmas In Singapore!<br />

TICKET PRICE: free<br />

MORE INFORMATION: http://ccishome.org<br />

32<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Event Agenda<br />

Marina Bay SINGAPORE Countdown 09/10<br />

DATE : 31 st Dec <strong>2009</strong>, starts at 7pm till 1am<br />

VENUE : Marina Bay<br />

SYNOPSIS<br />

Catch the brilliant fireworks display as you count<br />

down to the new year at the signature annual<br />

Marina Bay SINGAPORE Countdown 09/10. More<br />

than just a festive celebration, this year-end<br />

tradition for Singapore will bring together the<br />

collective wishes and aspirations <strong>of</strong> thousands <strong>of</strong><br />

people, and unite all in counting down the final seconds <strong>of</strong> the year to celebrate<br />

the beginning <strong>of</strong> a new year full <strong>of</strong> hopes, challenges, changes and dreams.<br />

Broadcast LIVE on Channel NewsAsia, the Countdown will also capture the<br />

hearts <strong>of</strong> fellow Singaporeans and friends residing overseas.<br />

Fast becoming the city’s favourite festival stage, Marina Bay provides a<br />

perfect setting against the signature city skyline to stage and enjoy large-scale<br />

cultural and community events, water-based sports and celebrations. Active<br />

programming <strong>of</strong> events will bring iconic events to Marina Bay all year round,<br />

establishing it as a Bay <strong>of</strong> Celebration with exciting activities for everyone<br />

to enjoy.<br />

TICKET PRICE (EXCLUDE BOOKING FEE): Free, except for entry to The Float<br />

at Marina Bay (ticket prices tbc)<br />

DURATION: 6 hours<br />

MORE INFORMATION: http://www.marinabaycountdown.sg/<br />

Siloso Beach Party<br />

DATE : 31 st Dec <strong>2009</strong>, 8pm - 6am<br />

VENUE : Siloso Beach, Sentosa<br />

SYNOPSIS<br />

Asia’s Grooviest Beach Party - Siloso Beach<br />

Party at Sentosa – is turning up the heat this<br />

year with MORE DJ line-ups, the SIGNATURE<br />

foam pool and sandy dance floor!<br />

Shake those svelte bodies to pulsating<br />

music and groove to the beat at the new chillout<br />

stage. Fuel your energy with the wide array<br />

<strong>of</strong> food and drinks, as the fringe performances<br />

provide you with a visual feast.<br />

The whole host <strong>of</strong> activities will no doubt<br />

satisfy your appetite for entertainment till<br />

the break <strong>of</strong> dawn – this is Asia’s Grooviest<br />

beach party you cannot miss!<br />

TICKET PRICE: S$35 (incl. 1 free drink)<br />

S$65 (including 2 free drinks and S$30 food<br />

vouchers)<br />

DURATION: 10 hours<br />

MORE INFORMATION: http://www.sentosa.<br />

com.sg/silosobeachparty/<br />

singapore amsterdam san francisco istanbul cruise on location and soon london & los angeles<br />

supperclub singapore is is a multi-sensory experience that brings together<br />

fine cuisine, art, performance and djs in one unique location. Join us for<br />

just a drink or a dinner, always followed by a club night with the best<br />

national and international djs.<br />

Dining at supperclub is different. you can choose a surprise menu which<br />

changes every week or go for the delicious finger food items. Forget<br />

about formal dining etiquette since freedom is the key word here. You<br />

will lie down, relax and dine on oversized beds and, as you are being<br />

served you will enjoy excellent food, djs, unique performances and art.<br />

dinner & table reservations call 6334 4080 or go to www.supperclub.com<br />

odeon towers, 331 north bridge road<br />

show this ad and receive 15% <strong>of</strong>f on food or complimentary entrance on one <strong>of</strong> our club nights*<br />

*(t&c apply)


Conference Calendar<br />

A selection <strong>of</strong> upcoming conferences in the region in <strong>January</strong>/February:<br />

GIS in Oil & Gas <strong>2010</strong><br />

18-19 <strong>January</strong>, Dubai<br />

Shipping Finance Asia <strong>2010</strong><br />

3-4 February, Singapore<br />

Pharmacovigilance <strong>2010</strong><br />

21 <strong>January</strong>, Mumbai<br />

Pharma Sales Force Effectiveness Conference<br />

25-27 <strong>January</strong>, Singapore<br />

3 rd Annual Anti-Corruption Asia Congress<br />

25-28 <strong>January</strong>, Hong Kong<br />

HSE Risk Management in Oil & Gas<br />

26–27 <strong>January</strong>, Kuala Lumpur<br />

Contact Centres Asia <strong>2010</strong><br />

26-27 <strong>January</strong>, Singapore<br />

Prepaid Mobile Summit <strong>2010</strong><br />

26-27 <strong>January</strong>, Kuala Lumpur<br />

TradeTech China<br />

28-29 <strong>January</strong>, Shanghai<br />

Global Worldnet Conference <strong>2010</strong><br />

31 <strong>January</strong> – 4 February, Mumbai<br />

3 rd Annual Investment Performance Analysis<br />

& Risk Management Asia <strong>2010</strong><br />

3-4 February, Hong Kong<br />

Innovations in Healthcare Management and<br />

Informatics<br />

8-11 February, Singapore<br />

Data Centre Management <strong>2010</strong><br />

9-10 February, Melbourne<br />

Regional Airport Development<br />

10-12 February, Sydney<br />

Pipeline Integrity Management<br />

17-18 February, Melbourne<br />

Airport Security <strong>2010</strong><br />

17-20 February, Dubai<br />

5 th Annual Asset Integrity Management<br />

Summit<br />

21-24 February, Abu Dhabi<br />

Log on to www.conferencebay.com for more information on these and many other events.<br />

And remember, you can make a bid and decide the price you’re willing to pay for any<br />

conference you wish to attend, not just the ones listed on Conference Bay! Just contact us<br />

on +65 67357445.<br />

34<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


Embassy Info<br />

Embassy closed<br />

The Embassy <strong>of</strong> the Kingdom <strong>of</strong> the Netherlands will be closed from Friday<br />

25 <strong>December</strong> <strong>2009</strong> until Friday 1 <strong>January</strong> <strong>2010</strong>.<br />

In case <strong>of</strong> an emergency, please contact the duty <strong>of</strong>ficer on HP: 9661 5704.<br />

With respect to the closure <strong>of</strong> our financial year only cash payments can be accepted<br />

at the consular counter from 14-31 <strong>December</strong> <strong>2009</strong>. It will not be possible to use our<br />

credit card facility.<br />

SCHENGEN VISA<br />

The visa application section will be closed from Monday 21 <strong>December</strong> <strong>2009</strong> until<br />

Friday 1 <strong>January</strong> <strong>2010</strong>.<br />

Job Seekers / Internship<br />

<strong>Association</strong> Info<br />

Name : Frank C.T. Bussen<br />

Age : 40<br />

Mobile : +31 6 5049 8881<br />

Email : fbussen@gmail.com<br />

Study: Degree in Aeronautical Engineering (Bachelor)<br />

Specialization: Aeronautical Engineering, Customer Service<br />

Working experience: 5 years experience in Logistical<br />

Support and Customer Service at KLM and Fokker Services.<br />

Supporting fleet operations, and serving as first contact<br />

between customer and logistics. This includes Spares handling,<br />

Repairs handling, Financial control, Quote hunting and problem<br />

solving.<br />

Looking for: A challenging job position, preferably in the Airline<br />

Industry but also willing to change into new directions. A job<br />

where I can show my inventiveness, creativity and drive and in<br />

which I can be an asset to increase the business.<br />

Name : Rudrani Djwalapersad<br />

Age : 23<br />

Tel.no.<strong>of</strong>fice : +31 6 5054 3020<br />

Email : r.djwalapersad@gmail.com<br />

Study:<br />

• Sep ’08 – Jan ’10: Master Financial Law, Erasmus University<br />

Rotterdam.<br />

• Sep ’07 – Dec ’08: MSc Business Admnistration: Management<br />

<strong>of</strong> Change, Erasmus University Rotterdam, graduated with<br />

honor.<br />

• Sep ’04 – Jun ’07: BSc Business Administration, Erasmus<br />

University Rotterdam.<br />

Working experience:<br />

- Feb ’09 – Sep ’09: Research Assistant at the faculty Erasmus<br />

School <strong>of</strong> Law.<br />

- Aug ’07 – Sep ’08: Chairman <strong>of</strong> the Master Study Club Board<br />

Management <strong>of</strong> Change, Study <strong>Association</strong> STAR.<br />

- Oct ’06 – Jun ’07: Chairman <strong>of</strong> the BA Study Trip Committee,<br />

Study <strong>Association</strong> STAR.<br />

Looking for: An internship position for a four-month period<br />

starting in February <strong>2010</strong> to gain international working experience<br />

in Singapore. I do not have a preference for a specific position<br />

or industry. I think it would be a great experience and challenge<br />

to get the opportunity to transfer the theoretical knowledge I<br />

gained during my studies into practice.<br />

Name : Michiel Sengers<br />

Age : 26<br />

Tel. no. : +65 66990767 (H), +65 91272770 (HP)<br />

Website : www.linkedin.com/in/michielsengers<br />

Study:<br />

Sep 02 - Feb 07: Amsterdam School <strong>of</strong> Business (HES), Marketing,<br />

Bachelor <strong>of</strong> Marketing<br />

Specialization: Product management, Market research and<br />

Travel retail<br />

Characteristics: Team player, involved, outgoing, creative,<br />

hands-on, strategic, analytical, IT savvy<br />

Working experience:<br />

– Jun 08 – Dec 08: Martinair Holland N.V. – Product Specialist:<br />

responsible for both service and sales concepts; additionally<br />

manage in-flight shop, supplier management, catalogue<br />

design, operations support.<br />

– Mar 07 – May 08: Martinair Holland N.V. - Service Concept<br />

Manager: responsible for service concept; manage, develop<br />

and improve on-board service product (F&B, entertainment)<br />

to optimize passenger satisfaction.<br />

– Sep 06 – Feb 07: Martinair Holland N.V. - Product Management<br />

Internship: thesis on brand association in the airline<br />

industry<br />

– Feb 05 – Aug 06: SBS Broadcasting S.A. – Pricing Assistant:<br />

perform marketing and market research activities<br />

Looking for: A position in marketing or marketing communications.<br />

Preferred industries; travel, tourism, media and open to others.<br />

Contributing to an international team with marketing, market<br />

research and product management experience and knowledge.<br />

Ideally full time. Long term. Local terms<br />

35<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


<strong>Association</strong> Info<br />

New Members<br />

Anne Elias, ING Bank<br />

Francoise Roche, Rabobank<br />

Frans Janssen, GfK Asia<br />

Fred Neve, RBS Bank<br />

Koos Alfrink, ING Bank<br />

Kris Vervaeke, Kris Vervaeke Photography<br />

Marleen de Bruijn, ING Bank<br />

Michael Krayenh<strong>of</strong>f, AQ Services<br />

Michiel Sengers (1/1)<br />

Roderick Kasteel, ABN AMRO Bank<br />

Rogier Dolleman, ING Bank<br />

Rosiah van den Hoek<br />

Sara Verh<strong>of</strong> (1/1)<br />

Vincent Groenewoud (1/1)<br />

Wietse Roodenburg, Shell<br />

Wilco Alberda, Smit<br />

Leaving Members<br />

Anne Elias, ING Bank<br />

Bert Hazelaar, Shell<br />

Clementine Klijberg<br />

Cornelis van den Muyzenberg, Colorcon<br />

Edwin Ebrahimi, Vopak<br />

Ernst Altena, Van Leeuwen Buizen<br />

Freek van Velsen, RBS<br />

Frits Wolters, Shell<br />

Geert Kraak, De Lage Landen<br />

Gjalt Jan Feersma Hoekstra, I.M. Freight<br />

International<br />

Hans Rijfkogel, Agio Cigars<br />

Inge Oostendorp, Hollandse Club<br />

Ingmar de Gooijer, Burson-Marsteller<br />

Kiki van der Erf<br />

Laurence Caron<br />

Lukas van der Hoef, Deutsche Bank<br />

Mark Woudstra*<br />

Marleen de Bruijn, ING Bank<br />

Michael van Ommeren, Fortis<br />

Monique van Donzel<br />

Ninna Liu , Agio Cigars<br />

Orhan Koc*<br />

Pim Kraan, Embassy <strong>of</strong> the Kingdom <strong>of</strong> the<br />

Netherlands<br />

Rob de Louw, Océ<br />

Roderick Kasteel, ABN AMRO Bank<br />

Ronald Broer, Unitor<br />

Sebastiaan Reek, RBS<br />

Stefan Beukeveld, BHP Billiton<br />

Thijs Fransen<br />

DECEMBER EVENT<br />

MEMBERSHIP FEE <strong>2010</strong><br />

Dear ADB Member,<br />

The ADB members are invited to join ADB’s<br />

‘Eindejaars Netwerkborrel’<br />

Date: Thursday 10 <strong>December</strong> <strong>2009</strong> Time: 20.00-22.00 hrs Venue: 8 Binjai Hill<br />

Registration is required, please register before 6 <strong>December</strong> <strong>2009</strong> by sending<br />

an email to www.adb.org.sg/en_events_<strong>2009</strong>1210_invitation.html<br />

JANUARY EVENT<br />

Limited parking available.<br />

Kindly sponsored by:<br />

Dear ADB Members,<br />

You and your partner are kindly invited to attend the<br />

ADB New Year’s ‘borrel’<br />

on Monday 11 <strong>January</strong> <strong>2010</strong><br />

Ambassador Johannes Jansing and Mrs. Barbara Jansing are kindly<br />

hosting the ‘borrel’ at their residence from 19:00-21:00 hrs.<br />

If you would like to attend, please register by 6 <strong>January</strong> via<br />

www.adb.org.sg/en_events_<strong>2010</strong>0111_invitation.html (limited registration)<br />

Address: 23 Ridout Road (please park at Dempsey car park)<br />

Dress code: Smart Casual<br />

Kindly sponsored by:<br />

The ADB will start the process <strong>of</strong> collecting next year’s membership fee. We are<br />

happy to inform you that the ADB is still able to keep the calendar membership fee<br />

at SGD100 only.<br />

Attached please find the annual invoice for the ADB membership fee for <strong>2010</strong> and<br />

we kindly ask you herewith to arrange payment at your earliest convenience at the<br />

latest by the 31 st <strong>of</strong> <strong>December</strong> <strong>2009</strong>:<br />

1. By crossed cheque made payable to: “<strong>Association</strong> <strong>of</strong> <strong>Dutch</strong> <strong>Businessmen</strong>”, and<br />

send your cheque to <strong>Association</strong> <strong>of</strong> <strong>Dutch</strong> <strong>Businessmen</strong>, c/o 22 Camden Park<br />

Singapore 299814<br />

Please state your name on cheque.<br />

2. In cash and send/deliver to/at for the attention <strong>of</strong> ADB, c/o 22 Camden Park,<br />

Singapore 299814<br />

3. By internet<br />

Bank name : Standard Chartered Bank, Battery Road<br />

Benificiary : <strong>Association</strong> <strong>of</strong> <strong>Dutch</strong> <strong>Businessmen</strong><br />

Account # : 01-0-837759-8<br />

Branch : 001<br />

Bank code : 7144<br />

Please make sure that your name will be stated on our bank statement.<br />

Your prompt payment will be appreciated.<br />

N.B.: Cancellation <strong>of</strong> your membership must be received in writing (by email) before<br />

the 31 st <strong>of</strong> <strong>December</strong> <strong>2009</strong>, otherwise full membership fee (SGD 100) will apply for<br />

calendar year <strong>2010</strong>!<br />

36<br />

Vol.19 • No. 10 • <strong>December</strong> <strong>2009</strong> / <strong>January</strong> <strong>2010</strong>


YOU DON’T HAVE TO BE<br />

dUTCH<br />

TO jOiN THE HOllANDsE clUB<br />

SINCE1908INSINGAPORE<br />

Hollandse Club<br />

The common misperception held about the Hollandse Club is that you<br />

have to be <strong>Dutch</strong> to become a member, but as only 25 per cent <strong>of</strong><br />

our members are from the Netherlands, you definitely don’t have to be<br />

<strong>Dutch</strong>…<br />

Whichever nationality you are, we welcome you with open arms into our<br />

child-friendly, couple-friendly and cosy club. The Hollandse Club is a little<br />

bit <strong>of</strong> country in the sprawling city, and yet so easily accessible from the<br />

centre <strong>of</strong> town.<br />

So don’t fight for dining space in Dempsey, elbow room in Boat Quay<br />

or breathing space in Orchard Road. Instead, hang out at the Hollandse<br />

Club and enrich your social life, improve your sporting prowess and treat<br />

your taste buds.<br />

For information about becoming a member, call the membership<br />

department on 6461 1111 or 6461 1104.<br />

fiND OUT mOrE ON OUr wEBsiTE www.HollandseClUb.org.sg


Connected<br />

Heart-to-heart<br />

Reserved<br />

Finally, a dimmable energy saver –<br />

because no two moments are the same.<br />

Whatever light level you desire, the Philips Tornado<br />

Dimmable delivers. Dimming smoothly down to 5%<br />

brightness, it also saves energy by up to 80%.<br />

Experiment with the possibilities, and bring out the<br />

best in any moment. www.philips.com

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