December 2009 / January 2010 - Association of Dutch Businessmen
December 2009 / January 2010 - Association of Dutch Businessmen
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 />
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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 />
19<br />
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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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 />
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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