britcham orient magazine issue 35

O R I E N T

b u i l d i n g n e t w o r k sc o n n e c t i n g b u s i n e s sc r e a t i n g o p p o r t u n i t i e s

www.britcham.org.sg

THE OFFICIAL MAGAZINE OF THE BRITISH CHAMBER OF COMMERCE - SINGAPORE

I S S U E 35

EMERGING MARKETS

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P A G E 1 b u i l d i n g n e t w o r k s • c o n n e c t i n g b u s i n e s s • c r e a t i n g o p p o r t u n i t i e s

WWW. B R I TCHAM .ORG . S G

8Feature: Emerging Markets

22Economic & Business Insights

32Out of the Box

Orient is a bi-monthly magazine published by the British Chamber of Commerce.

138 Cecil Street#13-03 Cecil CourtSingapore 069538

Tel: +65 6222-3552Fax: +65 6222-3556Email: [email protected]

www.britcham.org.sg

The views and opinions expressed or implied in Orient are those of the authors or contributors and do not reflect those of the British Chamber of Commerce, its officers or editorial staff. All rights reserved.

No reproduction of articles without the prior permission of the Chamber. Unsolicited transparencies ad articles are sent at owners’ own risk and the Chamber accepts no liability for loss or damage.

EDITOR: Loong Yong En Email: [email protected]

LAYOUT & PRINTING BY Novus Media Solutions MICA (P) 209/03/2011

4 President ’s Message

8 Emerging Markets n Turbulence Revisited: 2012 Global Economic Outlook – The Insight Bureau n Investing in Asia in Times of Uncertainty – Coutts n Enter the Dragon – HSBC n Turning Adversity into Opportunity – KPMG n Choosing Between International and Local Private Medical Insurance – InterGlobal n A Year in Global Emerging Markets – Schroders

2 2 Economic and Business Insights n Digital Banking to be the Norm by 2015 – PwC n Seventh BiSEA Conference in Phnom Penh n Tax on Property Gains – What happens when you move back to the UK? – The Fry Group

2 8 Inside Britain n Doing Business in Asia; Opportunities for the UK – UKTI

3 0 High Commission News n British High Commission News Dec 2011 / Jan 2012

3 2 Out of the Box n Effective Listening – ABE n Posture and Ergonomics – Spinal Balance

3 4 High Commission News n British High Commission News Feb / Mar 2012

3 6 Chamber News n Chamber News Feb/Mar 2012 n New Members n Events Calendar n Members Offers

CONTENTS


46BritCham Events

64Sports

66Destination

PLATINUM SPONSORS GOLD SPONSOR

SILVER SPONSORS

BRONZE SPONSORS

BRITISH CHAMBER Of COMMERCE, SINGAPORE SPONSORS

BREAKfAST CLUB SPONSOR

4 0 The BritCham Membership n Sterling News

4 6 BritCham Events Breakfast Clubs n The Developing World: Embracing an Explosion of Creativity – Fredrik Haren n Managing Supply Chain Risk – TAPA n Productivity – More with More, Not More with Less – Think8 Business Group Working Lunch n What Happens If The Line Goes Dead? – ICT BG Strategic Partner Event n Turbulence Revisited 2012: An Economic Outlook and Business Forum – The Insight Bureau BritCham/UKTI Briefing n What’s going on in China? – UKTI

5 1 The BritCham Membership n Corporate News

5 8 Ar ts & Culture n Welsh Week in Singapore – St David n Shakespeare for the Soul – Singapore Repertory Theatre

6 4 Spor ts n London 2012 - Delivering International Business Legacy – UKTI

6 6 Destination

CONTENTS

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M Y KC

26023 HWC Orient mag-p.ai 1 1/18/12 5:21 PM

ERRATA: In the previous issue of the ORIENT Magazine, in the New Members section on page 32, Beachcroft LLP has changed name to DAC Beachcroft LLP. We apologize for the error.

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M Y KC

26023 HWC Orient mag-p.ai 1 1/18/12 5:21 PM


Dear Members,

Happy New Year to you all and best wishes for a healthy and prosperous Year of the Dragon!

I’m pleased to report that 2011 was another year of growth for BritCham. Our flagship events, notably the Golf, the Rugby Dinner, the Business Awards and the Ball, were all celebrated in style last year and there is growing demand for Chamber sponsorship opportunities. Our already seamless cooperation with UKTI and the High Commission has improved and we are continuing to work on extending our UKTI and Chamber links throughout the region. Our relationships with other business organisations and government groups in Singapore remain strong and productive.

The sustained support from our sponsors is always gratifying and a good weathervane for how the Chamber is valued. We are delighted that both Barclays and RBS continue as Platinum sponsors this year and we welcome Cognita for the first time as Gold sponsors. We are pleased that all our sponsors have continued to engage with us this year to bring you a wide variety of opportunities and support our events. In addition to our signature events, we start the year with a strong programme of Leaders in Business lunches, opportunities to meet with thought leaders, and our ever popular programme of business Breakfast Clubs.

The Chamber has quietly made progress over the past year ‘internally’, with new faces in the management team, a feature packed website with online billing implemented, a review by KPMG of our business processes and our governance, the publishing of our CSR business guidelines on the website and a larger office space with better facilities for all.

Looking forward, the business climate this year is more challenging and growth forecasts for Singapore and the region have been scaled back, reflecting the continuing financial troubles in Europe and to a lesser extent in the US. Taking a global perspective however, Asia has maintained its resilience and continues to be the sought after location for investment and we expect it will retain this status in the years ahead.

For Britain, and in particular London, 2012 will be a year to remember. This year marks the Diamond Jubilee of the ascension to the throne of Her Majesty Queen Elizabeth II and the Chamber will join with the rest of the British community to celebrate this in early June. Later in the summer London will become the first city to officially host the modern Olympic Games three times, having previously hosted them in 1908 and 1948. Hosting the Games has prompted the redevelopment of many of the areas of London in which they are to be held and this redevelopment is being particularly themed towards sustainability. Here in Singapore, we are planning an event together with the High Commission for members to celebrate the occasion of the Games opening on July 28th.

I look forward to our continuing to grow the Chamber in 2012, in what promises to be an interesting year to remember.

Steve Puckett, President, British Chamber of Commerce

BRITCHAM BOARD:

PRESIDENT: Steve Puckett – Tri-Zen InternationalVICE-PRESIDENTS: John Horsburgh – Rolls Royce Singapore Hugo Walkinshaw – Deloitte Consulting SE AsiaTREASURER: David Macdonald – Skandia InternationalHONORARY SECRETARY: Damian Adams – Watson, Farley & Williams LLPEX-OffICIO: Judith Slater – British High Commission Mark Howard – British Council

BOARD MEMBERS:Peter Allen – Pacific Century Regional Developments Emma Boyd – Pinstripe Business Solutions Richard Burn – Diageo Singapore Ingrid Child – HSBC Bank Stephen Crisp – Nokia Siemens Networks Singapore James Deely – The Royal Bank of Scotland plc Charlie MacLean - Barclays Bank plc Nick McGlynn – British Airways Pek Hak Bin – BP Singapore Roman Scott – Calamander Capital Andrew Thomas – Ogilvy & Mather Singapore Philippe Touati – Standard Chartered Bank Andrew Vine – The Insight Bureau

PRESIDENT ’S MESSAGE

COMMITTEE CHAIRPERSONS:Corporate Social Responsibility: Richard Burn Events & Sponsorship: Philippe Touati External Affairs: Steve Puckett Marketing & Communications: TBC Membership: Andrew Vine

BUSINESS GROUP CHAIRPERSONS:Energy & Utilities – Damian Adams Entrepreneur & Small Business – Sonia Fuller Financial Services – Patrick Donaldson IT and Communications Technology – Henry Farahar Leadership – TBA Media & Marketing – TBA Professional Services – TBA Property & Construction – Alan Dalgleish Shipping Transport & Logistics – Neil Johnson Young Professionals – Miles Gooseman

MANAGEMENT TEAM:Executive Director: Brigitte Holtschneider Accountant: Sabitha Munnangi Business Enhancement & Events Development Manager: Erica Hegarty Business Events & Business Group Relations Manager: Tiffeny Kua Marketing & Communications Manager: Vipanchi Marketing & Communications Assistant: Loong Yong En Membership Manager: Katie Hudson Office Administration & Membership Support: Emi Hosono


BRITISH CHAMBER OF COMMERCE, SINGAPORESTERLING MEMBERS

STERLING MEMBERS

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Gift Bag, On-Course Refreshments, Lunch,Evening Dinner and Trophy PresentationSentosa Golf Club, Serapong CourseThursday 31st May 20121:30pm

Programme includes:

Venue:Date:

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For more information please visit www.britcham.org.sg

Sponsored by:

Calling all Golf Enthusiasts... Its Tee-off time!18 Holes of amazing Golfing experience

4 Player Flight

BritCham Annual Corporate Golf Day

Gift Bag, On-Course Refreshments, Lunch,Evening Dinner and Trophy PresentationSentosa Golf Club, Serapong CourseThursday 31st May 20121:30pm

Programme includes:

Venue:Date:

Shot Gun Start

For more information please visit www.britcham.org.sg

Sponsored by:


FEATURE

TURBULENCE REVISITED: 2012 GLOBAL ECONOMIC OUTLOOK

Focus On The Emerging Marketsby Andrew Vine, CEO, The Insight Bureau

I n our first Global Emerging Markets (GEMS) report in January 2011, Dr

Yuwa Hedrick-Wong described the global economy as being in a state of “turbulence”, created by cross currents which included an anaemic recovery in the US, the deepening crisis in the Eurozone and emerging markets struggling to shift gear from exports to domestic demand to sustain their high-paced growth. Hence, the GEMS’s outlook for the global economy for 2012 again features turbulence as the central theme, taking into consideration the primary cross currents creating this turbulence have now changed.

• The US economy’s recovery is actually showing signs of growing strength, and more importantly, could be in the early stage of a new phase of economic rejuvenation underpinned by robust productivity gains and business innovations.

• The Eurozone crisis, in contrast, is not only deepening but is facing the rapidly rising risk of a banking sector crisis and fragmentation;

• Although the emerging markets will not escape unscathed from the fallouts from the Eurozone, they are actually better anchored against the global storm, with China again playing a key role in Asia.

Turbulence however fundamentally implies that powerful chaotic dynamics are at work. There will inevitably be unforeseen and unintended consequences, as well as unanticipated shocks. We could also forsee a number of developments triggering a disorderly fragmentation of the Eurozone, throwing the entire global economy into a period of heightened uncertainty, putting growth in the rest of the world at risk. Despite seemingly coming through what is arguably the danger period, the possibility

of such an outcome simply cannot be discounted. All hopes for growth ride on the Emerging Markets

Although the report focuses on broader topics, this article extracts the key points relating to the role of the emerging markets. In general, credit conditions in Asia and other emerging markets have actually improved over the period between 3Q 2010 and 3Q 2011, a period when inter-bank lending froze in Europe and when crisis contagion ensnared Italy. Cross-border lending to emerging markets rose between 3Q 2010 and 3Q 2011. The year-on-year growth is the highest in Asia at 33 percent, followed by Latin America at 28 percent, Turkey at 18 percent and Middle East and Africa at 16 percent. One of the key reasons for the sudden collapse of exports in the emerging markets during the 2008/09 crisis was the drying up of trade financing, aside from a drop in demand. It is unlikely to see a repeat of this collapse in 2012.

Domestically, the banking sectors in most emerging markets are also better positioned. In Asia, for instance, loan-to-deposit ratio (adjusted for reserve and statutory liquidity requirements) is estimated at 92 percent (excluding Japan). In China it is 82 percent. Naturally the banks in Asia could lend a lot more with their current capital base. This is in sharp contrast with banks in the Eurozone, where the loan to deposit ratio is estimated at 145 percent. In other words, European banks on average today cannot lend one euro without raising new capital; whereas banks in Asia still have a lot of dry power should they need to

lend more.

Fundamentally for emerging markets the challenge in 2012 will be the extent to which they can mobilise domestic demand (investment and consumption) in order to sustain high-paced growth, even as their exports are affected by a slowdown in the developed markets (and especially those in the Eurozone). The proportion of total economic output that results from domestic activities is technically defined as “real effective domestic demand”. The

Dr. Yuwa Hendrick-Wong recently presented at the BritCham event held on 12 January 2012 (see page 50 of this magazine)



higher the real effective domestic demand, the less dependent the economy is on external demand. Estimating real effective domestic demand is, however, a tricky business -- the readily available trade data do not provide an accurate picture. In a region such as Asia, trade data are especially skewed by high levels of trade in components for assembly manufacturing. The only accurate way to estimate the real effective domestic demand of an economy is to conduct an input-output analysis to estimate the total value-add accrued domestically, which is a complicated and laborious undertaking. Fortunately such an exercise was conducted by researchers in the ECB in 2009 on Asia. India is the least dependent on external demand as its real effective domestic demand is estimated at 80 percent of GDP. Surprisingly China’s real effective domestic demand is also relatively high, estimated at 69 percent. For the rest of Asia, it is estimated at around 60 percent of GDP.

With its real effective domestic demand close to 70 percent of GDP, it is relatively easy for China to expand domestic

economic activities to maintain real GDP growth in the range of seven to eight percent in 2012. To the extent that China is successful in doing so, the rest of Asia will benefit accordingly. This is because China has become either the number one or number two market for most of the region’s exporters. Indeed China’s contribution to growth in exports from the rest of Asia outweighs those from the US and EU in 2010. For example, growth in demand from China contributed 29 percent of total growth in exports in Korea, versus 12 percent from the US and 17 percent from the EU. For Thailand, the contrast is equally stark. China accounted for 13 percent of Thai export growth, against

7 percent from the US and six percent from the EU.

What could China do in 2012 in the event of a serious decline in demand in the Eurozone? China responded to the 2008/09 crisis by increasing bank lending massively, mostly to investment entities set up by local governments and to state-owned enterprises, in 2009. However, the banks are in no position today to repeat a similar feat now. The government has actually been tightening money supply in order to bring down inflation and part of the tightening has seen a series of increases in the reserve requirement ratio of the banks. Banks are also bracing themselves for a substantial increase in non-performing loans as it is expected that most of the lending made in 2009 will turn into bad loans in the next few years.

It appears that China does have a “Plan B” in the event that the global economy takes a turn for the worse in 2012. The central government is certainly able and willing to increase fiscal spending, focusing

on infrastructure investment which can support growth in employment and income immediately, while improving economic efficiency over the longer term. The central government’s debt burden is relatively low; its net liability in 2010 is estimated at only 22.3 percent of GDP. More importantly, its tax revenue has been increasing by an average of 33 percent a year in the past five years. Hence the central government is certainly in a strong position to spend more in 2012 if it needs to.

Local governments are however in no position to spend more. Not only are their net liabilities higher (at 26.8 percent of GDP), more significantly elsewhere we see that 80 percent of their bank borrowing in the last few years has been securitised by cash flows generated from their investment projects. While this helps banks to lower the risk of loans turning bad, it also reduces local governments’ fiscal power. Thus, in 2012, it will be entirely up to the central government in China to sustain strong economic growth.

The three cross currents of the US, Eurozone and global emerging markets will determine what the global economy looks like in 2012. While interconnected, they are also moving in different directions, driven by divergent factors. Under these conditions, we will see that high volatility in equities and commodities is certain and a catastrophic implosion in the Eurozone is a distinct possibility! Despite these conditions, emerging markets are likely to be able to stay resilient. Economic resurgence in the US cannot be entirely ruled out in spite of the heightened political risk in its election year ahead.

Andrew Vine – CEO – The Insight Bureauwww.insightbureau.com

P A G E 1 0 b u i l d i n g n e t w o r k s • c o n n e c t i n g b u s i n e s s • c r e a t i n g o p p o r t u n i t i e s

FEATURE

INVESTING IN ASIA IN TIMES OF UNCERTAINTY

Adapted from Coutts 2012 Asian Investment Outlook

Global Risks Shadow Asian Outlook

T he European debt crisis is likely to continue to cloud the investment

outlook for Asia in 2012. Even if Europe is able to convincingly tackle its current problems, investors in Asia need to adjust to how global economies have permanently changed in the years since the onset of the 2008/09 financial crisis and how this altered environment will now drive long-term investment returns.

In particular, an ongoing deleveraging of Western economies, together with generally lower expectations for secular long-term growth, suggests that the West will remain vulnerable to economic shocks in the years ahead. We are encouraged that policy makers around the world seem to understand the challenges currently presented to the global economy. The shocks, political polarisation and limited

policy options available to the West continue to pose risks that could potentially hinder the long-term rebalancing of global economic activity towards Asia.

In Asia itself, the cyclical backdrop has been improving. Growth and inflation rates have slowed in recent months, creating a regional backdrop that is more conducive to investment. Imbalances, as currently evident in regional property sectors, together with the wide disparity of incomes, suggest a slowing growth outlook in 2012.

Prospects For Capital Gains In 2012Should Western economies grow at or near their current trend growth rates of around one to two percent, Asia should

be able to make a gradual transition from supplying Western economies to selling increasingly to home markets. Falling inflation, easing monetary and fiscal policy, and strengthening currencies should allow domestic Asian demand to partially offset the loss of growth in key external markets in the US and Europe.

Indeed, Asian equities (as reflected by the MSCI Asia excluding-Japan index) are underpricing such an outcome. In fact, since 1995, Asian equities have only traded significantly below current valuation levels in periods of crisis in the global or regional economy – the 1997 Asian financial crisis; the 2001 bursting of the global tech bubble; the 2003 SARS crisis; and the 2007-2009 global financial crisis. This undervaluation is also why the European crisis is a key concern for investors even at current valuation

levels. If Europe and the US relapse into a greater crisis or recession, Asian investors could see a 15 to 20 percent decline in their investments (such a fall would leave valuations consistent with the 2001 and 2007 to 2009 crises) from current levels.

2012 Asia ex-Japan Growth OutlookAsian economies will slow down visibly as we look into 2012, as the effects of 2011’s policy tightening and weak European growth take hold. Inflation has probably peaked and as a result, we expect regional policy makers to shift towards easier monetary policies. Inflationary pressures should continue to ease in 2012, as the benefits of this year’s moves to surge monetary policy in many countries takes hold. We have already seen food and fuel prices dip from their peaks earlier this year. However, already low real interest rate levels suggest that central banks in the region will not move to cut rates too proactively. Asian policy makers will therefore seek to maintain stability and will not try to dramatically prompt a re-acceleration of activity in 2012. As a result, we expect GDP growth in Asia (excluding-Japan) to track at near seven percent a year, slowing from the 7.5 percent we expect for 2011.

Building an Asian Asset PortfolioIn the past, investors in Asia have focused on capital gains as a way of driving portfolio returns. Strong equity market rallies between 1990 and 1996 and, subsequently, between 2004 and 2007, served to reinforce this approach.

However, since the Asian crisis of 1997 to 98, Asian equities have seen the drivers of return become more varied. Dividends have been the most consistent drivers while in recent years, currencies have also provided opportunities to augment total returns on Asian asset portfolios.

ASEAN Economic and foreign Exchange OutlookIn 2011, ASEAN economies avoided many of the GDP-growth downgrades that their



peers in the region suffered. Driving this tactic was the effective use of currency and other domestic policy tools. These contained inflationary pressures early in the year. Later in the year, their large domestic economies buffered the impact from the global slowdown in economic activity.

ASEAN currencies suffered in the same fashion as the rest of Asia as a result of the European sovereign debt crisis in the second half of the year. Although the domestic economies were relatively insulated from the resulting market turbulence, continued reliance on foreign capital flows remains an important risk for investors into ASEAN.

The strong capital flows between the European, Malaysian and Indonesian banking sectors prompted a five to six percent weakening of the Ringgit and Rupiah against the US dollar in the second half of 2011. This is comparable to the weakness seen in more trade-sensitive currencies of Singapore, Korea and Taiwan. In contrast, countries with weaker capital or global trade links, including Thailand and the Philippines, only saw a one-1.5percent weakening of their local currencies over the same period.

As a result, while investors into ASEAN should continue to benefit from the large size of their domestic economies and flexible fiscal and monetary policy, further devaluations in their currencies remains a key risk, especially should the situation in Europe continue to deteriorate. Assuming the European crisis stabilises, we expect ASEAN currencies to broadly track the US dollar and weaken against regional counterparts including the Singapore dollar, the Chinese yuan, and the Australian dollar.

Against this backdrop, we expect ASEAN economies to see stable GDP growth of near 5.5 percent a year in 2012. Such a scenario allows for a small acceleration in financial activity in Thailand following the recent floods. In addition, expansionary fiscal policy in Malaysia should underpin growth and be a key driver of the economy in the next two years.

Inflationary pressure should become more moderate in 2012 across the ASEAN region. However, government policy action in the latter part of 2011 suggests that inflationary risks remain especially in Indonesia.

Equity Market OutlooksASEAN (excluding Singapore) equity markets have weathered the crises of 2011 well. Equity markets fell modestly while the Philippine equity market has shown positive returns for the year. ASEAN equity markets outperformed others in the region in the first half of 2011, as domestic government policy shouldered much of the impact of high global oil prices. Moreover, large domestic economies in Indonesia and the Philippines both provided support to earnings as global growth expectations fell.

Though the earnings picture should remain attractive, a more mixed valuation picture suggests selectivity in ASEAN is needed for this year. Indonesian valuations remain high, even after adjusting the premium-returns Indonesian corporations have earned since 2002. Equity valuations in Thailand sit

historically cheap following the floods in late 2011. Earnings expectations are optimistic going into 2012 and they will likely require downward revisions early this year which may weigh on performance.

Above-average dividend yields and a defensive sector-mix positions Malaysia as a potential refuge for investors in the face of regional and global volatility. Within itself, Malaysia’s Economic Transformation Plan (ETP) and the prospect of national elections will be key activity-drivers next year. However in periods of global uncertainty, Malaysia’s defensive sector mix (which includes the gaming and lottery sectors), added to the country’s listed companies pay the highest and most stable dividend payouts in Asia, may together prove to be a source of refuge for investors.

A busy political calendar in 2012

Asia this year will hold a number of important elections, some of which may result in changes of political leadership.

Elections are scheduled in China, Taiwan, Hong Kong, Korea and India; and it is widely expected that an early election may be called for in Malaysia.

Looking beyond the region, the election of key members for the National Congress of the Communist Party of

China in October this year will pave the way for an important generational leadership change in March 2013.

The political and electoral systems differ among Asian countries. Political uncertainty is higher in Korea, Malaysia and India, as elections may bring new ruling administrations with reverse policy propositions. Conversely political uncertainty is low in China and Hong Kong, with the upcoming elections resulting in an unlikely major changes of policy directions.

Country Date Election Political Event

Taiwan 14-Jan-12 Presidential and Legislative yuan elections

Hong Kong 25-Mar-12 Chief Executive election September-12 Legislative Council election

Malaysia maybe 1Q2012 General elections

India Feb-Mar-12 State elections March-12 Union Budget (the second week of the month) July-12 Presidential election November-12 State elections

China October-12 National Congress of Communist Party meeting March-13 National People’s Congress meeting

Korea 19-Dec-12 Presidential election

Asia’s 2012 political calendar

Source: Bloomberg


FEATURE

ENTER THE DRAGONby Philip Poole and Bill Maldonado

I t’s striking how perspectives can depend on where you live and the

culture you hail from. Take the dragon, for example. In European folklore it’s a fire-breathing scaly beast, feared by the people for its unpredictable destructive power. Conversely in Asian traditions, it’s associated with wisdom, bravery and longevity; revered as a benevolent guardian and a source of good fortune.

As we have just marked the Lunar New Year, investors would be forgiven for steeling themselves against the threats a European-style dragon represents. Confidence, which plunged in 2011 as Europe’s debt crisis escalated and US politicians squabbled over deficit proposals, is not likely to recover any time soon. That said, we believe investors in Asia should welcome the Year of the Dragon with a sense of optimism. While we cannot promise that volatility is going to vanish, we see opportunities ahead for those with the courage to diversify their portfolios and to take some risks within a medium- or long-term strategy.

Busting the mythsThe first step is to face the realities this year will present. The Eurozone is already

in recession and may take several years to fix its problems. The US is looking in better shape, but gross government debt is still rising and tensions will remain high on Capitol Hill in the run-up to the presidential and congressional elections. Growth in Asia is likely to slow too, primarily because this region cannot entirely decouple itself from the rest of the world.

What some people seem to be forgetting though is that slower growth does not mean no growth. The new growth may not break records, but the 8.6 percent GDP expansion we forecast for China this year, and the 7.5 percent for India, are still well into positive territory. Most Western economies would be delighted to come close to this.

As readers struggle to decipher the political and economic headlines, we believe many equity investors are overlooking the tried-and-tested benefits of valuation analysis. A glance at the MSCI Asia excluding-Japan Index’s 15-year average shows it is now cheap by historical standards, even though we are not living a rerun of the 2008 financial crisis, the SARS

epidemic or the dotcom bubble. Europe is probably the largest source of systemic risk today. Asian corporate profitability has not collapsed, and we do not expect it to.

There is a case to be made that investors have become excessively pessimistic about the prospects for some of Asia’s leading economies. Given that China’s CSI benchmark and India’s BSE fell by 23.7 percent and 18.9 percent respectively last year, does it seem logical that the Eurostoxx should have dropped less or that the S&P500 should have risen. We would argue that some profitable Asian companies are now undervalued, and so their shares have the potential to rise over the medium to long term.



Eyes on emerging marketsThe reason we mentioned why investors should be courageous is because stocks perceived to be defensive have in many cases now lost their allure. It stands to reason that if everyone buys into companies making tinned soup then at some point those companies become overvalued. To strike the right balance, therefore, we recommend investors take informed risks after studying price-to-book and forward price-to-earnings data. Indeed, our analysis shows that investors buying at a price-to-book of about 1.5 times – the current average of the MSCI excluding-Japan – would have an 85 percent probability of gains if they hold qualifying stocks for a year.

With about US$120 billion of emerging-market assets under management, we are constantly seeking and testing new investment themes. At the moment, we are attracted to emerging-market industrials, materials, financials and energy; so-called cyclical sectors. Among the reasons we believe in growth in these sectors is that

we have seen central banks in countries including China, Brazil, Indonesia and Thailand cut interest rates (or reserve ratios) to stimulate growth as concern about inflation recedes. Many such countries still have scope to ease further and to fund development projects with bond sales, while in many Western countries, rates are already near zero and public debt is significant.

We expect growth in emerging markets to be increasingly driven by domestic consumption and by urbanisation. By this,we mean companies providing goods

and services aligned to these trends are likely to benefit. Not only will these be companies selling directly to the end consumer or government, but those further back in the supply chain, such as raw-commodities producers.

In defence of bondsMany of our arguments about attractive

equity valuations apply similarly to corporate debt – both investment grade and high-yield. Again the flight to safety last year that saw investors dump corporate credit in favour of government-risk has left the bonds of some profitable companies undervalued. Learning from the recent credit crunch, many companies in Asia and

beyond have stockpiled cash, building their balance sheets as a preemptive defensive measure. Should the Eurozone crisis escalate and continental European banks curb lending again, these companies will be much better equipped to fund themselves from internal resources than the state they were in the dark days after Lehman Brothers had collapsed.

As Asia’s debt markets mature, new opportunities such as the emergence of Dim Sum bonds are emerging. While it is true that this Hong Kong market is in a lull at the moment, we think it will recover and

prosper because we believe China is on a growth trajectory and that the renminbi will become an international currency. Chinese companies will enter this market to tap international investors and companies from Europe and the US will build their credentials with Asia’s investment community. Already we see credit quality rising as greater choice enables investors to be more selective about the bonds they buy.

In summary, recognition of the challenges ahead does not mean we should cower like mediaeval villagers faced with a European-style dragon. Instead we should take our inspiration from the auspicious dragon of Asian mythology, selecting our investments carefully in readiness for the eventual return to market stability.

About the Authors:Philip Poole is Global Head of Macro and Investment Strategy and Bill Maldonado is Chief Investment Officer Asia-Pacific, HSBC Global Asset Management


FEATURE

TURNING ADVERSITY INTO OPPORTUNITY

by Mr Tay Hong Beng, Head of Tax, KPMG in Singapore

A dversity can be the seed of opportunity. KPMG’s proposals for

the upcoming Budget 2012 are centred on a combination of strategic objectives underpinned by decisive short-term measures to help businesses ride out the global uncertainty and for them to seek opportunities for the future.

Mr Tay Hong Beng, Head of Tax, KPMG in Singapore says, “Singapore steered through the 2009 global financial crisis relatively unscathed due to the Singapore government’s bold and decisive measures.”He added, “This year, we have gone beyond reflecting the wishes of the business community. We first polled a cross-section of businesses at KPMG’s Pre-Budget forum in late 2011, and then worked out a series of proposals for the government’s consideration. We believe these will help Singapore forge ahead when the economic outlook improves.”

Trends in the macroeconomic environment of Asia may see countries experiencing slower economic growth due to global economic uncertainty. However, economic adversity could also present opportunities for Singapore to turn itself into the most natural investment location for businesses.

At the Pre-Budget forum, an audience poll of 83 guests identified high business fees and labour costs as a key business challenge:

• 30 percent indicated higher labour costs and 25 percent said operating costs were key short-term business challenges

• 45 percent hope to see more measures to keep business-costs down unveiled in Budget 2012

• 29 percent feel that more double-tax agreements and better terms for

existing agreements are needed to help Singapore better position itself as a gateway to Asia

• 25 percent see tax exemption on all foreign-sourced income as similarly necessary

• 38 percent wanted more deductions and incentives instead of a lower corporate tax rate.

Mr Tay said, “Companies in Singapore are also facing rising costs, thinning margins and intensifying competition. In the immediate timeframe, measures to cushion the impact of the economic uncertainty are essential. However these measures should support other efforts of promoting longer term high quality economic growth.”

The four key themes KPMG hopes to see in Budget 2012 are:



I: positioning Singapore as an Asiangateway

II: growing Singapore enterprisesIII: enhancing innovation in SingaporeIV: providing measures for individuals

The highlights of these proposals are enclosed with the details for I to III being set out in the appendix.

I. Singapore as an Asian gatewaySingapore stands at the cusp of an Asian time and locations, and is in a position to take advantage of demographic and geographic shifts of economic power.

Mr Tay says, “Rapidly ageing populations in the developed economies, fallout from the Eurozone and troubles in the US provide worries about future economic prospects. However, these troubles are also seeing economic power shift towards Asia. This shift represents unique opportunities for Singapore to become the preferred centre for investments into Asia.”

To strengthen Singapore’s position as an Asian gateway, an important fiscal measure is to develop a tax regime that provides more certainty. “With regulatory regimes and business transactions becoming more complex, global and regional businesses appreciate business locations that minimise tax uncertainty. If Singapore improves aspects of its tax system that will improve tax certainty, and combines this with its already low corporate tax rates, Singapore would become a very attractive business location.” The proposals for tax certainty are as follows:

1. Keep the corporate tax rate at 17 percent but provide more deductions and incentives. With one of the lowest corporate tax rate in the world, Singapore has no pressing need to reduce corporate tax rates. However, more widely-available deductions to recognise current economic realities would boost Singapore’s attractiveness.

2. Enhance Singapore’s tax treaty network by updating old tax treaties and expanding the network to new countries. Singapore could also champion a multilateral treaty to exempt any form of withholding taxes within the ASEAN or even Asian region.

3. Encourage multinational companies (MNCs) to expand in the region through Singapore by removing tax uncertainties such as through treating gains from disposals of subsidiaries held for at least two years as capital gains. This is helpful for businesses operating extensively in the region.

4. Review existing tax incentives to ensure continued relevance: For example, the 15 percent concessionary tax rate under the Regional Headquarters incentive needs to be reviewed as the corporate tax rate is now 17 percent.

5. Expand the list of incidental GST exempt supplies to include interest income arising from inter-company loans. This could promote the establishment of finance and treasury centres in Singapore.

6. Promote shipping activities in Singapore by expanding the automatic exemption from Singapore withholding tax for interest and related payments beyond loans for financing the construction or for purchase of shipping vessels.

7. The country can plan the following to grow the financial sector by:

• Attracting more fund management activities and investment-advisory services to Singapore: Enhance the tax regime for fund management activities such as by recognising tax residence for trusts and partnerships, lowering the concessionary rate of tax for fund managers, increasing the scope of qualifying investments and s impl i fy ing application procedures for the fund management tax incentives.

• Encourage more Islamic financing activities in Singapore: Liberalise the tax alignment rules for Islamic financing to include all Syriah-compliant financial instruments and closing the competitive gap with other Islamic hubs.

• Promote Singapore as the premier REIT hub by levelling the playing field between REITs holding commercial properties directly and those holding these indirectly from a GST perspective.

II: Growing Singapore enterprises“Small businesses are highly susceptible to economic swings. While short-term measures to cushion the impact of the global economic uncertainty are critical for the survival of these small companies, longer-term measures should target organic growth of Singapore enterprises,” says Mr Tay. We find out more about the proposals to grow Singapore enterprises.

8. It is useful to support local enterprises through building a “Singapore-first” fund to invest in Singapore-based SMEs. This support is aimed at providing funds and know-how to help promising Singapore-based businesses become globally competitive companies.


FEATURE

9. It is vital to nurture and expand promising Singapore brands. Provide tax incentives granting tax deductions or writing down allowances for internally-generated intellectual property based on a market valuation of the intellectual property rather than expenditure incurred.

10. Sustained growth can be achieved through support for organic growth of companies. Since previous budgets addressed merger and acquisition (M&A) issues, Budget 2012 could address organic growth issues through methods such as providing tax deductibility for listing expenses.

11. The city-state should offer temporary exemption for the remittance foreign income so that foreign-sourced income can be used by Singaporean businesses for reinvestment into their business.

12. Facilitate restructuring of businesses by extending the stamp duty relief on the transfer of assets between associated companies to individual shareholders and extending the corporate amalgamation tax scheme to individuals.

13. To support job creation and demand, reintroduce the Jobs Credit Scheme to encourage the hiring of older workers and unemployed Singaporeans. This would support businesses and ease the transition from a reliance on foreign workers.

14. Implement measures to help Singaporean businesses with rising costs, such as property tax rebates for commercial property owners and rental rebates for tenants in JTC Corporation and Housing and Development Board.

15. Extend corporate and individual tax rebates and SME cash rebates to help businesses cope with cost pressures.

III: Enhancing innovation in SingaporeKPMG’s proposals are aimed at raising the level of private sector R&D expenditure, ahead of Singapore’s aim to reach R&D spending of 3.5 percent of GDP by 2015.

Mr Tay adds, “While fiscal incentives alone cannot decide where companies locate innovation-related activities, Singapore’s own innovation incentives must nevertheless stay competitive and relevant. Japan is exploring ways to make its research and development (R&D) tax credits programme more attractive, Taiwan is offering R & D tax credit for any set-off against the corporate tax payable and Thailand has stepped up the incentive with a 200 percent deduction on qualifying expenditure carried out by approved R & D service providers. Furthermore, investments in innovation ultimately improve long-term capabilities of Singapore businesses, which can translate to more widespread and inclusive economic growth.”

16. The following measures can help to encourage productivity and innovation activities across all businesses in Singapore:

• Support innovation efforts of start-ups and smaller businesses by allowing these businesses to convert tax



benefits under the PIC to cash benefits at a rate of at least 50 percent of eligible expenditure.

• Support innovation efforts of larger companies by extending the Productivity and Innovation (PIC) scheme to expenditures above the current S$400,000 annual cap, with lower enhanced deduction rates applying to these higher quantums.

• Recognise innovation efforts in non-traditional R&D clusters. For example, many innovative processes in the service industry utilise IT to provide new or improved customer experiences, which may not qualify for PIC benefits under current rules. The PIC should be liberalised to allow expenditure on such activities to be eligible.

• The scope of expenditure under the PIC should be widened, such as the range of courses and eligible expenses relating to internal

training, and in the case of R&D, the eligible expenditure should include direct overheads. In addition the direct use of plant and machinery is introduced to better reflect the resources required to undertake relevant activities.

17. Encourage greater p r i v a t e s e c t o r R&D by providing tax concessions to attract R&D centres to Singapore. This can be

boosterd by extending the enhanced R&D tax deduction schemes to R&D centres of multinational companies as their corporate R&D labs are an important component of Singapore’s R&D ecosystem.

18. Rebrand the R&D incentives as “innovation” incentives to reinvent the perception among businesses, especially those in the service sector, that qualifying activities must involve high-tech or laboratory based activities.

19. Enhance Singapore’s attraction as an innovation hub by allowing “automatic” writing down allowances for economic interests in intellectual property. To put Singapore on par with tax-favoured intellectual property management jurisdictions, writing down allowances should be granted automatically to purchases of intellectual property with only

economic rights.

IV: Measures for individualsDesigned to encourage rootedness in individuals, reducing the income gap and recognising new social trends, the proposals for these goals are:

20. Encouraging individuals to work and excel by:

• increasing the Earned Income Relief (EIR) and

Handicapped EIR by S$5,000 for all age groups

• expanding the zero percent tax bracket from S$20,000 to S$30,000 to help the

sandwiched class

• making permanent the tax deduction of 2.5 times for donations.

21. Supporting the family unit by:

• increasing spouse relief to $5,000

• extending the foreign maid levy relief to male taxpayers with a non-working spouse and at least three dependent children aged 16 years and below

• providing relief for qualified education expenses incurred for dependent children.

22. Encourage retirement planning by:

• enhancing Life Insurance relief by removing the CPF contribution limit

• enhancing the Supplementary Retirement Scheme (SRS) by removing the taxation upon withdrawal and raising the annual contributions caps. If the SRS is fine-tuned, there would be no need to liberalise Section 5 pension plans.

23. Liberalise the ‘Not Ordinarily Resident Scheme’ by:

• lowering the 90-day minimum for overseas business travel to 75 days in the ‘Not Ordinarily Resident’ (NOR) taxpayer scheme where time apportionment concessions can be enjoyed, and remove the five-year maximum NOR qualifying period. More expatriates stay longer now due to regional responsibilities and these concessions can help with attracting and retaining talent.


A CHOICE BETWEEN INTERNATIONAL AND LOCAL PRIVATE MEDICAL

INSURANCE By Tony Valin, Country Manager, Singapore, InterGlobal

FEATURE

S ending an employee on an expatriate posting is an expensive commitment

for employers and with many of them facing difficult economic times, some may be tempted to reduce costs by limiting employment packages. One possible option could be to choose lower cost local-market health insurance over specialist and international private medical insurance. However, employers should be aware that differences in the scope of coverage and conditions could make this a false economy in the long term.

The fast-growing Asian economies continue to attract thousands of expatriates, often seconded by international companies hoping to develop markets, offer specialist knowledge or aiming to learn about local market conditions and economies.

Employers with an international workforce recognise that their expatriate employees have particular needs, including access to suitable housing, work permits and visas as well as support in adapting to a new culture. One of the top demands of all expatriates, however, is to have easy access to top quality healthcare.

For people living in their home country, accessing health care is usually relatively straightforward. People know how their national medical system works; they will be familiar with accessing primary care and will know whether they pay for care at point of access or whether it is free. They will also know whether treatment is state-funded or whether they need their own medical insurance.

Moving to a new jurisdiction however can make access to healthcare far more complex. Systems will be unfamiliar, access to quality facilities may be limited or even non-existent in some remote areas and in some countries, proof of the ability to pay may be required before even the most

basic of acute emergency care is provided.

It is no wonder then that expatriates and frequent international travellers value international private medical insurance highly. It is guaranteed that they will be able to access emergency and routine healthcare for themselves and their families wherever they are in the world. It usually also ensures that they will have emergency medical repatriation back to their home country if they suffer a serious injury or illness. In these difficult economic times, however, when every cost is under review, it is likely that some employers will now be considering whether there are alternatives to international private medical insurance and the possibility of looking into alternative means of providing coverage.

A possible option is to buy a domestic private medical insurance policy for the country where the expat employee is going to be based. It will be preferable and cost-effective to buy a local plan than use a full international private medical insurance policy. For example, all foreign residents in Japan with a valid visa, allowing them

to stay for a year or more, can join the Japan National Health Insurance scheme (kokumin kenkou hoken/kokuho).

There are however significant differences between international private medical insurance plans, which are designed with the expatriate in mind and are portable between different jurisdictions, and domestic health insurance plans designed to suit the needs of permanent residents of a country.

The attraction for employers to consider a local plan is inevitably cost. The perceived wisdom is that it is probably less expensive to buy a local private medical insurance plan for an employee on an expatriate contract in Jakarta, than it is to buy a full international private medical insurance plan covering the Asia-Pacific region.

There is some truth in this argument as the upfront cost is likely to be less. For most expatriates, however, the disadvantages easily outweigh the cost benefits. The main problems centre on access to the right quality of hospitals, emergency evacuation



and responding to and coping with the issue of pre-existing or chronic medical conditions.

Local private medical insurance plans are designed to do exactly what they say; to provide access to local healthcare. That is fine provided the local healthcare is of a high quality. Using the example of Indonesia again, our expatriate might prefer to fly to Singapore to access the very best regional healthcare rather than receive treatment locally. How likely is it that a domestic private medical insurance scheme would allow a member to fly to a different country to access healthcare, whereas otherwise seen as a normal benefit in an international private medical insurance plan?

Expatriates will also face the difficulty of being stuck. A domestic plan will not get them back to their home country when they need long-term or specialist care. For a Japanese expatriate to be stuck at a hospital in Hanoi, when their family would prefer to have them home in Tokyo, repatriation is impossible on a domestic plan, but again possible on most international plans.

Leaving aside the difficulties of accessing the right type of care, the expatriate lifestyle means that many expatriates move from country to country as their employer needs their skills in different locations. A marine engineer could move from the ports of India to the Japanese shipyards and then on to Hong Kong or Singapore. A domestic plan would instantly become redundant as the expatriate moves from country to country and the domestic plan could even delay their ability to move if new arrangements cannot be quickly set up in their new host country. An international private medical insurance plan however will cover all the countries within an expatriate’s geographic range of coverage and no newer arrangements are needed as work takes them from one country to

another.

Finally there is the issue of pre-existing conditions. If an expatriate in Mumbai suffers a heart condition, the domestic plan will most likely cover the cost of their treatment. That expatriate however will then have a serious pre-existing condition on their medical records, which will make it difficult for them to change the insurer if and when they wish to leave India.There are also a number of jurisdictions where ‘local’ private medical insurance plans really are only suited for the local population. This would provide too limited coverage for an expatriate with China being a good example.

China is not a cheap location for expatriates to receive medical treatment and the country has some of the most expensive hospitals in the world. Its medical system is also geared to the needs of the local population and many expatriates would struggle to access healthcare outside of the Western-style private clinics in the major cities.

Domestic health insurance plans are typically sold by the large local insurance companies and generally offer health insurance cover in China only, providing relatively limited benefits for an inexpensive premium. These plans are geared to the needs of the local population and will almost certainly be inadequate for expatriates seeking Western-style care.

Another albeit very limited alternative to private medical insurance is to rely on reciprocal healthcare agreements between different countries. Reciprocal arrangements for healthcare are complicated and vary from country to country, these are reasonably common across Europe, but are far more limited in Asia. Australia has, however, signed a number of reciprocal healthcare agreements, including ones with Finland, Italy, Malta, Netherlands, New Zealand, Sweden and the United Kingdom. Australian residents visiting these countries are generally entitled to healthcare under the host country’s public healthcare system.

The fundamental point to remember about reciprocal arrangements is that the person who is looking to benefit from the arrangement will still need to be paying

compulsory taxation in their home country. If or when an expatriate member of staff is to be paid and taxed in the country to which they are posted, no reciprocal care is likely to be available.

Where reciprocal arrangements exist, the rights to automatic medical care vary and may be costly. Expatriates may receive no more than basic emergency treatment and may find that any additional treatments are not available. There is certainly no access to emergency medical repatriation to the expatriate’s home country.

The upshot is that while reciprocal arrangements may sound superficially attractive, in practice they are limited in their scope and may well present employers with more difficulties than benefits.

There are alternatives for international private medical insurance for expatriate employees, but their scope of coverage is limited and employers proposing an alternative would have to make themselves clear in explaining these limitations to their staff. Some reciprocal arrangements provide access to limited emergency treatment and a local insurance plan may respond as well as an international plan in the short term. The drawbacks however are serious and could leave an expatriate employee stranded with limited coverage in a foreign country. A self-funded air ambulance might be the only realistic option to return home.

Expatriate staff are vital for international companies, and it is only by providing a full international private medical insurance plan that employers can be confident of their expatriate employees being properly protected for medical emergencies and routine healthcare treatment.

About the Author: Tony ValinCountry Manager, Singapore, InterGlobal


FEATURE

2012: A YEAR IN GLOBAL EMERGING MARKETS

by Allan Conway, Head of Emerging Market Equities, Schroders

I n the coming year, the outlook for emerging markets is likely to be

sensitive to exogenous macroeconomic developments — the largest single risk comes from the Eurozone, as politicians struggle to save the Euro project. However economic fundamentals in emerging markets remain strong and valuations already anticipate a lot of bad news. It is important the structural case for emerging markets remains intact and, even in the event of a break-up of the Eurozone, we would view any associated weakness in emerging markets as a strong buying opportunity for long-term investors.

Before looking ahead to what 2012 might hold for emerging markets, we need to put 2011 in context. The first point to address is why emerging markets have underperformed in 2011.

Explaining EM underperformance in 2011If the structural story remains intact, why have emerging markets — underperformed in 2011? The main reasons, were the declining US dollar, inflation and global growth. From the beginning of 2011 until spring that year, the US dollar was weakening, which should have been beneficial for EM. However, this was when investors were concerned about rising inflation in developed markets (DM) due to strengthening food prices and robust economic activity so returns disappointed.

Following this change, after a period of stability, the US dollar began to strengthen, reflecting the sharp rise in risk aversion as global growth-forecasts came under pressure from the deterioration in the Eurozone. US dollar strength and weakening growth prospects also meant bad news for EM. It was expected that EM came under pressure with returns that were also negatively impacted by emerging-market debt investors hedging their currency exposure, overall negative sentiment towards equities, and general profit-taking.

Valuations attractive, but tail-risks remainWhere does that leave us? Simply put, it is at very attractive valuation levels that are still vulnerable to significantly elevated tail-risk. This risk is related to exogenous sources through European sovereign debt and uncertainty about US fiscal policy.

Hence, what do we do? The first point to remember is that EM economies and markets have clearly decoupled from DM, but only if one looks over a reasonable time period. As the chart below shows, EM have delivered much stronger economic growth than DM ones over the last ten years and also seen much stronger stock market returns.

However, over any short-term periods, markets in particular can be highly correlated, especially during periods of financial stress. In the near term, this is likely to continue due to all the uncertainty in the developed world that has been well documented. Rather than trying to fathom the next machinations of European or US politicians, we want to focus on what is actually happening in the emerging world. Specifically, we will look at current valuation levels and the sensitivity of EM earnings to growth prospects.

First, a simple point about valuations. By any measure, emerging-market equities are cheap. As the charts below show, compared to history or developed markets, emerging markets are trading on attractive 12-month forward PE, price-to-book and market-cap-to-GDP ratios.

MSCI EM Price to Book value

How sensitive is earnings growth to GDP?In particular, the 12-month forward PE is nine times and is based on forecast earnings growth of around 12 percent. Hence, a key question to address is how sensitive EM earnings growth is to changes in GDP. It is useful to also ask what conclusions can be drawn regarding the prospects for emerging equity markets this coming year.

Source: Schroders, FactSet, IBES, MSCI, data shown to 20 October, 2011

Source: FactSet, data shown to 31 October, 2011

Source: UBS, data shown to October 31st 2011

Source: FactSet, data shown to 31 October, 2011



What is clear is that EM nominal GDP is slowing down due to a combination of falling inflation and slowing global growth. As might be expected, EM sales growth is closely linked to nominal GDP. So as nominal GDP slows, sales growth will come under pressure. The above table shows three scenarios from the Schroders Economics team. Despite being under

the base case of a Eurozone credit crunch, we expect real GDP for the emerging markets to be 4.5 percent next year. The ‘muddle through’ scenario should result in emerging GDP growth of 6.0% and it is only a disorderly break-up of the Euro that could lead to emerging growth of 2.5 percent and therefore below the critical 4.0 percent level.

In short, the near-term outlook for emerging markets continues to be extremely difficult to predict but with most outcomes dependent on exogenous macrodrivers. In the past, when emerging markets have been this cheap, they have usually rallied 60 to 75 percent over the next 12 months. Even under a worst-case scenario, we estimate EM earnings would fall by around 20 percent to 30 pecent, leaving the MSCI Emerging Markets index trading at its estimated long-term average. Obviously if the Eurozone was to break up, then all equity markets would almost certainly trade lower and EM economies would be no different.

Source: Schroders, November 2011. About the Author: Allan Conway joined Schroders in October 2004 as head of Emerging Market Equities. He is a fellow of the Securities Institute (FSI), Member of the Institute of Chartered Accountants (ACA). He previously worked at WestLB Asset Management and LGT Asset Management.


Digital banking to be the norm by 2015

PwC report – to a clearer digital vision to engage customer and secure customer relationship primacy

ECONOMIC & BUSINESS INSIGHTS

D igital banking is set to overtake branch networks as the most

popular and primary way in which customers interact with their bank by 2015. the finding is according to a new PwC report ‘the new Digital tipping Point’, which suggests that banks will be missing a vital new source of revenue growth if they are too slow to respond to the digital innovations that have radically changed business models and redefined customer experience. this missed opportunity is despite strong demand for digital banking products from consumers and the fact they are willing to pay for these.

PwC conducted research with over 3,000 banking customers across a mix of nine developed and emerging markets. the survey revealed that customers are demanding innovative digital offerings such as social media notifications, electronic wallet for loyalty cards and financial tools. Consumers across the different regions surveyed are willing to pay for these capabilities from a range of £2.0 to £10 a month if they believe these digital capabilities offer more convenience and value.

mark Jansen, Partner, Financial Services industry Practice, PwC llP Singapore, said:

“banks have generally been slow to embrace the digital innovation customers compared

to other industries, such as retail or travel. as generation y grows up with using digital media, it will be more important for banks to match their digital expectations to generation y. mobile devices today are equipped with more functionality than they ever did, and alongside the rise of social media and collaboration tools, are transforming a whole new experience in customer engagement.”

the research reveals that increasingly more consumers are using online and mobile channels to access financial products. 69 percent of those surveyed said they

currently use the internet to purchase financial products. While a lower number of respondents (33 percent) currently use their mobile to purchase financial products, mobile banking is expected to follow a usage curve similar to internet banking, with China, india and the United arab emirates currently leading its

adoption. in terms of customer profile, it is not surprising that generation y leads the way, with 67 percent of respondents saying they currently use or are considering using, mobile channels for banking. (generation y refers to people born in the 1980s and 1990s.)

Despite new technology opening up banking to a number of new players, there is little evidence to suggest that they will be successful in taking over the entire customer relationship from banks. the survey reveals that the majority of respondents (61 percent) still trust their banks over other providers to provide their current account. however, the report suggests that new entrants, such as mobile payment providers, will continue to act as a catalyst for change in the retail banking space. banks may also need to partner with technology, mobile and other non-traditional banking providers in order to deliver the digital experience customers now expect.

greg Unsworth, Singapore technology, infoComm, entertainment and media leader at PwC llP adds,

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“Singapore has one of the world’s highest -penetrated markets for internet and mobile usage as apparent from our global entertainment and media outlook conducted annually from 2011 to 2015. it is not surprising that customers in Singapore have also come to expect a richer digital

experience. they have better access to information and choices, not just from “the experts” but also from peer groups and ‘word-of-mouth’ sources, and they have a bigger voice in the social media space to offer their opinions.”

michiel van Selm, Director, Financial Services industry Practice, PwC llP Singapore added,

“banks here need to deliver more innovative and richer digital experiences to tap on the loyalty of customers, especially generation y, as they start to reach the peaked age of financial consumption. investing in digital offerings is no longer a way to reduce cost. banks need to look at ways to use digital media to create more value for customers to remain relevant in the market. this strategy will be relevant especially for banks that aim to expand their market share in asia outside of their traditional markets.”

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D elegates from the British Chambers and British Business Groups in Brunei,

Cambodia, Indonesia, Malaysia, Philippines, Thailand, Singapore and Vietnam met in Phnom Penh to share latest updates about economic developments and opportunities for British business in South East Asia. All presentations are available for members to download from the members resource centre. Just log on to www.britcham.org.sg , key in your password and choose Resource Library.

Other agenda items were • An overview about objectives of the

newly created UK-ASEAN Business Council presented by Executive Director Tim Standbrook. Tim outlined that the council is in the process of being created and confirmed that its focus is on increasing the opportunities for UK based companies to export and invest in SEA.

• British Passport renewals - it has been 18 months since the service was taken away from Embassies and High Commissions and members

in all markets face problems with the now lengthy time consuming process. BiSEA addressed a joint letter to the Prime Minister and the British Chamber in Hongkong wrote a letter to Secretary of State for Business, Innovation and Skills Vince Cable. Visibility of the issues has been achieved but government responses are palliative.

• UK Bribery Act – the new legislation is affecting members in all SEA markets all be it with various levels of complexity.

All delegates confirmed that exchanging and sharing of member programmes, offerings and issues is important and valuable but also felt that more emphasis ought to be given to highlighting values and benefits to our respective member communities. The Singapore team agreed to produce a position paper for discussion, confirmation and approval at the next meeting held in Singapore in the 2nd half of 2012.

7TH BISEA CONfERENCE IN PHNOM PENH – JANUARy 13TH

AND 14TH, 2012

i


tax on ProPerty gainS – What haPPenS When yoU moVe

baCk to the Uk?By Martin Rimmer, Tax Manager – Asia Pacific, The Fry Group

i n my work with british expatriate clients, it is apparent that property is the asset

class of choice. it is estimated 99 out of 100 clients own property somewhere in the world, and most of those clients own some form of property in the Uk. in 15 years of client work, i can remember only one occasion when someone did not aspire to property ownership at all. Pretty much everyone sees the Uk as being the location of choice, mostly for personal reasons and for the fact that many seem to be happy with how the british real estate market has done in the last 15 to 20 years or so.

the tax considerations involved in residential property ownership in the Uk are fairly straightforward. in broad terms, for someone who is not a resident in the Uk for tax purposes, any tax-adjusted profit generated from renting Uk property needs to be assessed for income tax purposes. the profit can be reduced by mortgage interest and a host of other allowable deductions. if you are a british citizen or an eea national, the profit is first set against your personal allowance, with the balance being taxed at 20 percent, 40 percent or 50 percent in more extreme cases. you probably also have to file a tax return.


if you have been or will be non-resident for five complete Uk tax years, you can be exempted from Capital Gains Tax in most (but not all) cases, if you exchange contracts whilst you are still non-resident.

if you are domiciled in the Uk (see my article in the october/november edition), the fact that you own property in the Uk as compared to any other asset anywhere else, does not make a blind bit of difference to your basic Inheritance Tax position. though i would suggest that you have a

properly drawn Uk will ready.

if you buy real estate in the Uk, you will b e s u b j e c t t o S t a m p D ut y L and Tax at rates varying from one percent for properties v a l u e d a t b e t w e e n £150,000 and

£250,000, and five percent for properties purchased for £1.0 million or more. however, stamp duty on purchase can be avoided with a little careful planning, though in the main, most elect to pay the tax. it is a deductible expense for capital gains tax purposes, which helps.

hence it is all quite manageable and uncomplicated whilst you are here. however, when you move back to the Uk, the biggest challenge faced is re-entering the capital gains tax system – which is a tax at 28 percent (in most cases) after the

deduction of a nominal allowance. Simply put, if you are planning to move back to the Uk and own property which has accumulated gains, there are a number of options which can help you to avoid the tax charge which would otherwise be imposed if you did nothing and sold the property after becoming resident in the Uk. needless to say, those options cease to be available once you arrive in the Uk, and some options require action in the tax year prior to your move. if you are planning on moving back to the Uk within the next 12 to 18 months, there is an urgent call to action now so that steps have to be taken before this april. that bit of forethought could save you a substantial amount of capital gains tax.

For example, suppose that you own an investment property in the Uk, purchased 15 years ago for £375,000 and is now worth £750,000. you sell it to the tenants after moving back to the Uk. the Cgt liability is on the whole gain, even though it accrued almost entirely whilst you were non-resident. the following calculation assumes the best case scenario:


Net Proceeds after Costs £750,000less: original Cost -£375,000Chargeable Gain £375,000less: annual exemption -£10,600Gain Subject to Capital Gains Tax £364,400

tax @ 18% -£35,000 £6,300tax @ 28% -£329,400 £92,232

Total Tax Due £98,532

the situation is improves slightly, but not significantly, if you live in the property for (say) 6 months before sale:

Net Proceeds after Costs £750,000less: original Cost -£375,000Gross Gain before reliefs/allowances £375,000less: relief for occupation as main home -£75,000Chargeable Gain £300,000less: annual exemption -£10,600Gain Subject to Capital Gains Tax £289,400

tax @ 18% -£35,000 £6,300tax @ 28% -£254,400 £71,232

Total Tax Due £77,532

Capital gains tax liability on Uk property (above)



it is fair to say that a host of other reliefs become available if you had lived in british property as your Principal Private Residence before moving to Singapore, and particularly if you reoccupy it as a main home after returning to the Uk. however, it is wrong to assume that capital gains tax does not apply just because a property is the only one you own in the Uk or because you have lived in it for a period. the rules are just not as simple as that, and it is worth getting a proper assessment of the accumulated Cgt liability.

having identified that there might be a charge to capital gains tax if you sell your property after moving back to the Uk, what are the options, and why the rush to take action before the end of the tax year?

First, you could sell the property whilst you are non-resident. Whilst it is preferable to sell in the tax year prior to your return to the Uk, in truth you can do so fairly safely in the year of return, provided you are non-resident at the point of exchange (which is the point at which the capital gain is realised for tax purposes). this is a cheap approach in terms of the tax saving, but means that you have a host of other costs to meet if you decide to buy another property — including stamp duty and estate agents fees.

Secondly, you could resolve not to sell the property, or to sell it during a future period of non-resident status. again this

works perfectly well, but is perhaps a little inflexible, especially if you need the money at some point or plan to downsize whilst resident in the Uk.

third, you could give your property away as part of your inheritance tax planning. this needs to be done in the tax year prior to your move, and you should be aware that you must not be able to benefit from the asset in any way, shape or form after the event.

Fourth, you could reconcile yourself to the tax being due and then reinvest the proceeds in ways which are tax-efficient in the Uk – such as through the enterprise initiative Scheme or similar. this doesn’t avoid the tax per se, but can provide for a valuable rebate of that tax if certain conditions are met.

Finally you could look at transferring your property into a specially-created short term trust. this must be done in the tax year prior to your move. in a nutshell, the gift of the property into trust whilst you are non-resident causes the accumulated gain to be realised (a bit like selling it whilst non-resident). you are not taxed on that gain, and the trust acquires the property at its then market value. you can then either move into it after returning to the Uk, or continue to rent it out to tenants. however the effect has been to revalue the property for capital gains tax purposes whilst at the same time allowing you to keep hold of it

and use it as you wish. after a year or so the trust is wound up and the property is returned to you. there might be a small charge to capital gains tax on any growth in value whilst the property has been in trust. however, when you receive the property, it is once again revalued for tax purposes to the current market value. if you subsequently sell it, its cost for tax purposes is the value you received it at from the trust.

this revaluing is a particularly attractive option for those who want to live in a property which has accumulated gains or who want to keep hold of a particularly good investment which rents well. For those contemplating a move back to the Uk during 2012 or 2013, it is imperative that action is taken now and the trust safely established before april 6 this year. Fortunately it is not too late to do so, though you will need to move quickly.

as you can see, capital gains tax planning for property can be a little demanding, but it is a navigable problem for those who give the matter some forethought. as ever, i would be happy to have a chat with you to run through your options in good time.

About the Author:Martin Rimmer is tax manager – asia Pacific at the Fry group and is based in Singapore.

the Fry group is a Private Client specialist in Uk taxation planning and wealth management. For more than 110 years, it has focussed on the particular financial needs of british expatriates and is the trusted long-term adviser to many clients in Singapore and around the world. the Singapore office is located at #13-03, 6 battery road. more information is available at www.thefrygroupsg.com


DOING BUSINESS IN ASIA; OppOrtUNItIES fOr thE UK

by Sarah Croft, Director, Trade, UK Trade & Investment

INSIDE BRITAIN

U K trade & Investment (UKtI) has identified 20 priority high growth

and emerging markets. these are: Brazil, China, Colombia, Egypt, hong Kong, India, Indonesia, Malaysia, Mexico, Qatar, russia, Saudi Arabia, Singapore, South Africa, South Korea, taiwan, thailand, turkey, UAE, and Vietnam.

the importance of Asia in this mix cannot be understated. half of these priority markets are in our region. UK exports to these markets plus Japan, during the last year, were worth £25 billion (approx S$50 billion SGD)

foreign Secretary William hague has said:“there can be no doubt of the importance of Asian markets, as the world’s focus shifts from West to East. By 2030 spending by Asian consumers is expected to be around $32 trillion annually or about 43% of worldwide consumption. So the economic compass of British businesses should be pointing firmly East, and we are determined to support them in their efforts”.

recent British Government activity in support of Asian markets includes:

• the launch of a UK-A S E A N B u s i n e s s Council this November, to sit alongside the China-Britain Business Council and UK-India Business Councils to help

• Negotiations for EU free trade agreements with India, Japan, and Singapore

• Setting targets to double trade with India, and increase trade with China to $100 billion, by 2015

• t h e e s t a b l i s h m e n t o f n e w Government-to-Government trade dialogues with Singapore and Indonesia.

• A shift of resources including: strengthening frontline staff in China by up to 50, and in India by 30; and a substantial expansion in Indonesia.

Coming Up:

Inspirational Business: A search is being launched in february 2012 to find and promote the most inspiring British businesses currently exporting to Asia.

‘Smart cities of the future in Asia: The opportunities for UK business’: this UK trade & Investment research report will benchmark the most dynamic cities across Asia in terms of their levels of smart development, and present the opportunities for UK business. It will cover a wide variety of sectors, and initiatives including the built environment, education, energy & environment, health, technology, and transportation and cover Japan, South Korea, Indonesia, taiwan, thailand, Malaysia, philippines, hong Kong, Singapore and Vietnam. for further information, including interim findings covering four of the markets, launched at techWorld 2011 in November visit: www.ukti.gov.uk


OppOrtUNItIES IN INDONESIAthe world’s fourth most populous country has an affluent and aspiring middle class of some 45 million. Indonesia is the largest economy in Southeast Asia and predicted to be the seventh largest in the world by 2050.

KEY SECTORS Fashion and consumer goods – Indonesia’s middle class is driving demand for international brands, and there is scope in the market for more products from the UK.

Education - Opportunities include joint research programmes and institutional linkages; vocational education; training for the corporate sector.

Financial Services – there is potential in the Islamic financial services and Sharia banking sectors; particularly in the areas of product/human capital development and technology.

Infrastructure development – A variety of projects offer significant opportunities.

these include an expansion of handling capacity at tanjung priok port and at the Soekarno-hatta and Ngurah rai airports, and the first phase of the Jakarta Mass rapid transit project.

Healthcare – Demand for quality healthcare is increasing, generating more demand for medical and surgical devices and training and education for healthcare professionals, health food supplements and It solutions for the private healthcare sector.

Mining – Opportunities include partnerships with local companies for the supply of mining equipment to major projects and for the supply of consultancy and engineering services.

Oil and Gas – the upstream sector offers a range of opportunities including the exploitation of ageing wells and the enhancement of production in marginal fields, deep-sea exploration and development, the exploitation of Coal Bed Methane and the supply of support products, manpower and services. Power – Indonesia welcomes foreign investment in the power sector and tenders for five Ipp projects are expected to issue during 2012 and 2013. As Indonesia diversifies its energy mix, there are growing opportunities in renewable energies, particularly in the geothermal and biomass sectors.

Security – Opportunities include maritime security, border control, access control, physical and data protection.

OppOrtUNItIES IN VIEtNAMVietnam’s GDp has doubled every 10 years since 1986. Its economic growth has been second only to China. Since accession to the World trade Organisation (WtO) in 2007, Vietnam has opened up its markets to foreign businesses and investors. With a population of 88 million, 65 percent of which are aged under 35, the country has one of the most vibrant economies in Asia. As average income continues to rise, Vietnam has a growing domestic market for consumer goods. Strong economic growth, coupled with rapid urban and industrial expansion means that many of the country’s physical infrastructures require urgent re-development.

KEY SECTORS Ports - With a 3260km coast line and proximity to international shipping routes, Vietnam has an ambitious master plan for

INSIDE BRITAIN



the development of its ports sector up to 2030. Opportunities exist for companies able to offer management, planning, design, consultancy and civil engineering services and companies that are suppliers of security

Power - Vietnam’s demand for electricity over the next five years is set to increase at a rate of 12-15 percent. the Vietnam power market is also undergoing a roadmap of price adjustment to make it more competitive for foreign investors looking to operate in this sector.

Telecommunications and related ICT industries are among the fastest growing in Vietnam. the total revenue of the ICt sector in 2010 was US$ 15 billion, achieving an annual growth rate of over 25 percent. remarkably the software industry is expanding at approximately 35-40 percent a year, and foreign firms will soon be able to invest for the first time in Vietnamese mobile phone service companies.

Retail sector - the total retail goods and services revenue hit US$78 billion in 2010, representing a 20 percent increase over 2009. Vietnam has an estimated 20 million middle-class consumers with a purchasing power equivalent to that of Benelux.

Financial and Legal Service - With the rapid liberalisation, privatisation and globalisation of the market, Vietnam has become a preferred destination for an increasing number of international financial investors.

Education - plays a central role in Vietnamese culture. the sector occupies approximately 20 percent of all state budget expenditures and accounts for 5.5 percent of GDp. Opportunities exist in teacher training, supplying classroom equipment, consulting and collaborating on joint course programmes or curriculum

and establishing UK university campuses or international schools.

Rail - Vietnam has a 2,600km heavy-rail network, which is in need of investment so that it can be upgraded and extended. the government is also committed to the development of light and underground rail systems in hanoi and ho Chi Minh City. Some 19 different metro rail projects are currently under consideration for the two cities.

OppOrtUNItIES IN MALAYSIAthe Malaysian government has embarked on an ambitious programme of change and liberalisation under the New Economic Model and Economic transformation programme, aimed at making Malaysia a high-income nation by 2020. this opens up a host of opportunities for the UK, particularly in infrastructure, education and services.

KEY SECTORS Aerospace - this sector has been targeted by the Malaysian government as one of the main drivers for growth in Malaysia. there are plans to make Malaysia a regional hub for aircraft maintenance, repair and overhaul.

Infrastructure and Construction – As a key element of the transformation programme, the government has allocated around £24billion for infrastructure spend

including a rail (Mrt) system for the Klang Valley, a new financial district for Kuala Lumpur and other developments.

Defence and Security – the UK and Malaysia share a strong defence relationship. the UK continues to assist the Malaysian Armed forces in a number of areas such as equipment, training and services.

Education and Training - At any one time, there are around 40,000 people in Malaysia studying for UK qualifications. Both Nottingham and Newcastle universities have a campus in Malaysia and several other UK institutions are set to open facilities over the next two years.

Financial and Business Services – Kuala Lumpur is a significant centre for financial and professional services, a sector that has been opened up in recent years with further liberalisation expected. Malaysia is the leading Asian centre for Islamic finance.

Healthcare - there is a major drive in Malaysia to set up medical centres and state-run hospitals and to upgrade the country’s facilities and medical systems.

ICT - the Malaysian electrical and electronics sector has attained world-class capabilities and is the largest contributor to the country’s manufacturing output, employment and exports. the local ICt industry is currently contributing about 7.5 percent of total GDp.

Oil and Gas - Malaysia has substantial crude oil and gas reserves. Upstream, there are over 70 fields in production and more than 250 platforms in operation. the downstream sector boasts over 50 refineries, petrochemical plants and gas processing plants. Opportunities exist in deep water, subsea, enhanced oil recovery and marginal fields.

About the Author: Sarah CroftDirector, tradeUK trade & Investment


OUT OF THE BOX

EFFECTIVE LISTENING “Nobody EVEr LISTENEd ThEmSELVES

ouT oF a job”by Lyndon Jones, Founder Chairman, Association of Business Executives and

Dr Penny Hood, A Principal Lecturer at the Lord Ashcroft International Business School, Anglia Ruskin University

Training Managers in Effective Listeningmanagers today can choose from a variety of courses aiding participants in improving their reading, report writing and speaking. yet comparatively few managers receive training in listening skills. This is surprising in view that a great deal of managers’ time is spent in listening to situations.

The principles of written communication usually diverge sharply from oral communication. a page can always be re-read if the reader has not understood it – a speaker’s words cannot. on the other hand, the speaker can see their audience and can gauge from their expressions whether they have been understood. a point may be re-phrased and repeated for clarity.

There are package courses on effective listening marketed to the public. For example, in one package which is a one-day programme, participants are presented with a series of listening situations, each made more realistic by the presence of background noise, speaker bias and emotional overtones — all distractions found in everyday listening situations. From these situations they are required to:

• Capture and summarise critical information from what they hear, and constantly analyse what is being said.

• retain mental ‘keyboard’ outlines of spoken information.

• Sift main and supporting points from a speaker’s words and screen cut irrelevances.

• organise lengthy instructions, conversations and lectures into major points.

another exercise in effective listening involves participants engaging in role play. among the techniques more widely used are restatement and paraphrasing.

Incidentally if you are conversing with a person who feels such role playing is childish, it can be useful to ask them ‘If you don’t really understand what the other person means, what are the chances that your reply will make sense to them?’

a variant of restatement or paraphrasing is summarising. This differs in that it encompasses all the key points which have been made in the discussion. It is not limited only to what was said in the last contribution by one of the participants. In any exchange, a number of points may have been made. hence summarising

can be important because it enables us to sum up the speaker’s main ideas together with the supporting details.

Steps can be taken to improve one’s own listening. one such step is by listening to the radio. you can try to identify the main theme by separating it from the digressions and supporting subject matter. you ought to evaluate the argument. you should notice any words that spark antagonism or evoke your sympathy. Take note of any appeals to prejudice or any statements that are cleverly worded to sound logical when they are not. you can also try to restate the gist of the talk for someone who did not hear it, or put it in a written letter.

Action PlanThe following are useful to sharpen one’s listening abilities when preparing for an important meeting:• List preoccupations most likely to

distract you – what can be done to prevent these from becoming distractions? resolve those distractions, helping you to prevent your mind from drifting.

• Check for possible distractions, including interruptions, noise level and convenience/suitability of meeting place. Take the necessary steps to avoid these.

• observe and note the person’s main objective which they hope to accomplish from the meeting including hidden agenda items.

• If you dislike or distrust the person with whom you must engage in conversation, list the reasons for your feelings.

Concluding CommentsThink about the following:

• Who is someone who really listens to you?

• What does that person do or have which makes you regard them as a good listener?

• how do you feel about this person?• how do you feel about this person

when you are talking to them and while they are listening to you?

Finally check if you are concentrating and ask yourself, ‘am I really listening or am I just waiting for a chance to talk?’



PoSTurE aNd ErGoNomICSBy Dr Soni

a s children we were often told, “don’t slouch, sit up straight”. Today we

know having poor posture can have adverse effects on our nervous system which can lead to chronic problems like carpal tunnel syndrome, headaches, neck-shoulder pain and back problems. Critical to these problems is the importance of how we organise our workspace (ergonomics) which can cause stress and strain on our bodies.

regardless of whatever activity or which position we are in, there is an optimal position our body can take to decrease stress on our muscles, spine and other joints of the body. If we are looking at posture in a purely natural state, that is without any external forces like chairs, our posture is essentially determined by our bone structure and muscles and their ability to counteract the force of gravity.

In a perfect world, everyone would be in neutral posture all the time. In reality, the position our body varies depends on what line of work we are in or the task we are performing. Poor posture is frequently blamed on:

• Lack of exercise• Weak muscles• obesity• Lack of body awareness

although the above are recognised as contributing factors, these are only some of the causes of poor posture. If you find that any of these issues are of concern, there may be undue and underlying stress that you don’t need to endure.

Why Should You Care

• having proper ergonomics at your workplace is crucial to having proper posture.

• To help prevent repetitive Strain Injuries (rSI), such as Carpal Tunnel Syndrome.

• To help prevent other ailments such as headaches, eye strain, back and neck strains.

• To help reduce stress and increase productivity.

Whether you work at a construction site or as a computer programmer, ergonomics plays an extremely important role in helping you to do your job efficiently with the least amount of stress and strain possible.

What Can You Do In the Office

Keyboardsyour shoulders should be straight, upper arms hanging straight down close to your body and elbows at a 90-degree or greater angle. your forearms and hands should be flat and your hands relaxed, leaving your wrists in a neutral position. There are various ergonomically-designed split keyboards that are increasingly popular as they help with your wrist position.

MouseWhen looking for a mouse, look for one that is not too big or small but one that fits snugly under your relaxed hand. The bottom of your hand should be able to feel the mouse and the point where your hand turns into your wrist should be on the table.

Monitoras a general rule, you should keep it in front of you, such that you do not have to turn your head either way and the monitor should be at an arm’s length in distance. another important component of your monitor to consider is glare. Poor positioning related to your windows or lighting could result in eyestrain and headaches.

Chairan adjustable chair is the most important part of your workstation, because it affects your posture more than just about anything else. you want to have a chair that allows you to customise the fit. The ideal position is one that allows you to sit up slightly, tilted forward with your back comfortably neutral against the back of the chair and your hips slightly higher than your knees. your feet should be flat on the floor or on a foot rest.

Phonesa headset is an absolute necessity if you are on the phone a lot. Try taking steps to make your workstation ergonomically correct, but cradling the phone on your neck for long phone calls will not help.

Timeour body is not designed to be in a fixed place and position for long periods of time. It is important to schedule breaks from repetitive activities and practise stretches that reduce fatigue in your muscles. as a general rule of thumb, you should get up at least once every 30-40 minutes and stretch and walk around a bit to keep the circulation in your legs going. It is a good habit to get up and get some water.

What Can You Do

Consultation of your current posture’s health will allow risk factors or weak points to be identified. There are exercises you can do to strengthen your postural muscles and improve your balance. If you are suffering with health issues or have troubles with your sitting during the day, consult a health professional for advice. alternatively for more information on ergonomics, request dr Soni to help evaluate your workstation and enrol you in a spinal hygiene class.


2 012 promises to be an exhilarating ride, and a huge year for uK plc, with the

fantastic showcasing opportunities which both hm The Queen’s diamond jubilee and then the London olympics present. here in Singapore, we will also be graced by the visit of Their royal highnesses The duke and duchess of Cambridge later in the year: another fabulous opportunity to highlight the GrEaT in Great britain and celebrate all that is good about the uK Singapore bilateral relationship.

In my last piece for The orient, I talked about our plans to take forward the uK Sin-gapore Economic and business Partnership (or EbP). Since then, we have held the first of what I hope will be a series of meetings with business here to explore ways to use that partnership constructively. We are fo-cusing on mapping the relative strengths and weaknesses of both countries’ ties with others regionally, along with sectoral strengths so as to work out where we can team up to help each other win business. This is part of the 3rd country collaboration the EbP commits us to pursue. We’ve also held the first meeting of the EbP Working Group with representatives from Singa-pore’s ministry of Trade and Industry (mTI), on a similar theme.

meanwhile the trade and investment teams at the bhC, led by Sarah Croft and Phil hick-son respectively, have been performing strongly, with both teams already surpass-ing their targets for this financial year as I write at the beginning of February. We are under no illusions that continuing this high performance against the troubled current global economic backcloth will be easy. despite the uK’s strenuous efforts, we are by no means out of the woods yet, and face the prospect of years of low – or even no – growth. The more british companies we can persuade to “look East” as a potential export destination, the better. In my visit to the uK in early February, I took part in our latest it-eration of the asia Task Force – a road show which seeks to encourage and help SmE’s in particular begin exporting to Singapore and other asian destinations. We are very

grateful to rbS for sponsoring this year’s series of road shows. uK business Secretary Vince Cable addressed the centrepiece con-ference in London on 9th February.

I am glad that 2012 is the year of the drag-on. I think we are all – even here in the most buoyant part of the world economy – go-ing to need some of the dragon’s famous traits to maximise the opportunities 2012 presents and ride its likely storms. These traits are bravery, decisiveness, energy and ambition. dragons also are more willing than others to take risks. In talking to SmE’s in London and elsewhere I explained that uKTI’s role is to help them to make that leap into the Singapore market, and those be-yond, with their risks minimised. We do this by helping companies to scope the market before taking the plunge; by making intro-ductions when they come to visit; and by explaining the pitfalls. We can also help them to find out about the other S.E. asian markets from here, through our “one-Stop Shop” service.

Following the asia Task Force, we were delighted that Lord Green, our minister of State for Trade and Investment and former Chairman of hSbC, was here in Singapore to lend support to british exhibitors at the Singapore airshow. he also had the oppor-tunity to be the Guest of honour at an event we co-hosted with rolls royce, who in the same week officially opened their superb new Seletar campus, with Singapore Prime minister Lee hsien Loong as Guest of hon-our. Lord Green also represented the british Government at ceremonies commemorat-ing the 70th anniversary of the Fall of Sin-gapore, when the sacrifice of those who fought to defend this very special place and its values were honoured. These ceremo-nies were sobering but inspiring. however tough the economic times we face, let’s be grateful we’re not caught up in the horror that Singapore endured 70 years ago. I’ll be reaching for that final dragon-like qual-ity: perfectionism, to make sure we at uKTI leave no stone unturned to help uK compa-nies succeed in Singapore!

HIGH COMMISSION NEWS

www.ukinsingapore.fco.gov.uk • www.uktradeinvest.gov.uk

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February ’12

CHAMBER NEWS

brITISh ChambEr oF CommErCE, SINGaPorE

dear members,

I hope you had a good start to 2012 and to the year of the dragon! 2012 is now in full swing and it is rather uncertain what to expect from it particularly related to developments in the Euro zone and the uS.

The February orIENT issue’s key topic is Emerging markets; quite fitting as most established businesses in Europe and uS look to asia for growth. In this context Singapore has established itself as part of the developed world, faced with a stagnant domestic workforce and an aging population; GdP growth rate estimated for 2012 is a cautious 1 to 3 %. The Chamber is going to monitor developments closely and will keep the events calendar flexible with frequent updates about the economy and issues important for doing business in Singapore.

Early march we will inform about the Singapore budget 2012 and what it offers to support business in areas like cost of doing business and investments. In close collaboration with uKTI we are going to keep you updated about developments and actions resulting from the Economic and business Partnership agreement between the uK and Singapore.

President Steve Puckett and I attended the britain in South East asia (biSEa) conference in Phnom Penh in mid january. Key areas of focus were membership satisfaction and value creation, uK bribery act and its impact in SEa markets where corruption is an issue and british Passport renewals. For a more detailed report please see page 24.

Internally, we have just kicked off the annual business awards initiative, once again chaired by board member Emma boyd, dis-cussing and re-visiting concept and objectives with the main focus to further increasing exposure for nominees, finalists and win-ners. From now to launch of nominations we are going to give regular updates on our main website at www.britcham.org.sg and the dedicated awards website www.bccbusinessawards.com.

one of our members, Carolyn Lints from hill dickinson Singapore stepped forward to take the lead in re-activating the Profes-sional Services business Group; yet another great initiative to continue to drive traction in the Chamber’s business Group commu-nity. a kick off session with interested members who wish to get involved is planned for end of February and you’ll get an update about the action plan shortly after that.

To conclude I would like to inform you about the latest edition to the management Team: ms Vipanchi dinavahi joined the Cham-ber on the 2nd of February to take on the role of marketing and Communications manager. her main responsibilities will be the orIENT, the Website, member Communication and Chamber Pr. Internally she is going to work very closely with Loon yong En, who stepped up during akansha’s absence as well as with the rest of the team. Externally, she is going to liaise with Committee chairs and business Group heads to ensure that respective web pages are updated and filled with relevant and useful content.

I hope to see you at one of our upcoming events and wish you a prosperous and successful year of the dragon!

brigitte holtschneiderExecutive directorbritish Chamber of Commercewww.britcham.org.sg



brITCham NEW mEmbErS

Sterlingdulwich College (Singapore) PteNick MagnusHeadmaster

IP real Estate Investments Pte LtdGrant ReynoldsDirector

Corporate PlusKeppel Corporation LimitedWang Look FungDirector, Group Corporate Affairs

CorporateColliers InternationalStephen HoSales Director

dart Energy (cbm) International Pte LtdNicholas DaviesExecutive Chairman

EuroSports LotusKC ChongDirector - Brand, Operations

International baccalaureateSebastien BarnardRegional Communications & Marketing Manager AP

KbC advanced Technology Pte LtdDavid TurnerExecutive Vice President - Asia

mGPa (Singapore) Pte LtdRichard Hugh AndrewHead of Asset Management, Asia ex-Japan

odgers berndtson Pte LtdSan ChauPartner

olswang asia LLPRob BratbyManaging Partner

Corporate SME4sl Group asia Pte. LtdAdrian DennyCEO

Landmark asiaKirstie NicholsonManaging Director

Spinal balance Pte. Ltd.Vrun SoniDoctor of Chiropractic

WaTaTaWa Consulting Pte LtdWilliam RylanceFounding Partner

Overseas CorporateTGW holdings LtdSteve CorbettOperations Director

red Gate Software LtdSimon GalbraithJoint CEO

IndividualCara CullenLaurence Smithroger WuSaptak Santra


2012 brITCham EVENTS

Annual Corporate Golf TournamentThursday 31st may 2012

Annual General MeetingThursday 10th may 2012

F1 NetworkingThursday 27th September 2012

BritCham Business Awards 2012Thursday 4th october 2012

Business Group Working LunchEntrepreneur and Small business Group Working LunchThursday 8th march 2012

BritCham Ball 2012Saturday 1st december 2012

Mark Your Diary

YBC Mentor SeriesWith hE antony Phillipson, british high CommissionerWednesday 29th February 2012

BritCham CSr PanelCorporate Social responsibility: building business resilienceFriday 24th February 2012

BritCham Breakfast Club Feb/Mar 2012recruiting the 2020 WorkforceTuesday 28th February 2012Taking complexity out of Foreign account Tax Compliance act (FaTCa)Wednesday 7th march 2012Iskandar malaysia Project: building a collaborative eco-business systemThursday 15th march 2012

CHAMBER NEWS



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MEMBERS - STERLING NEWS

C onstruction managers, learning & development experts and Product

Control candidates top the list of skills in demand this year, according to the latest Hays Quarterly Report. Published by recruiting experts Hays, the report reveals that candidates are assessing new job opportunities following their bonus payouts while employers are looking at strategies to retain top talent. the

Hays Quarterly Report lists the skills in most demand and employment trends in Singapore for the January to march quarter. It covers the accountancy & finance, banking, construction, finance technology, HR, It, insurance, life sciences, office professionals, oil & gas, sales & marketing and supply chain sectors. See www.hays.com.sg/report

I P Global is an end to end property investment company that sources premium real estate in emerging and developed

markets. It provides a fully integrated service, from guiding the clients to the appropriate project, settling the legal documents and administration, helps their clients secure leverage for their investment, manages the asset and eventually assists with the eventual resale when the client wishes to exit their investment.IP Global was established with the specific aim of meeting the investments needs of busy professionals through a team of

international property consultants with an intricate understanding of global property markets. Investing in each and every development that they launch means that they practice what they preach; putting their money where their mouth is. to date, IP Global has over USd800 million of assets under management on behalf of our clients around the globe. markets that IP Global have invested in span from the Uk to malaysia, from Japan to brazil; their property portfolio caters to a diverse range of budgets, risk appetites and investment goals. www.ipglobal-ltd.com

nEw PRInCIPAl At AIS

C ognita welcomes dr nick miller, the new Principal at the Australian International

School (AIS), Cognita’s largest school in Asia with over 2,400 students.

dr miller took over the reins from Peter bond at the start of the new school year in January. He brings with him over 20 years’ experience leading international schools around the world including, YmCA

Hong kong Christian College and St John’s International School in brussels, a leading Ib school in Europe.

nick and his wife Alison are settling well into Singapore and school life and are delighted to be part of the vibrant AIS community. www.cognitaschools.com

www.helpinghandgroup.com

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MEMBERS - STERLING NEWS

ROYAl SkAndIA lAUnCHES nEw QROPS PROPOSItIOn In ASIA

bbC wORld nEwS And bbC.COm COmmISSIOn A SECOnd SERIES OF

HORIzOnS, SPOnSOREd bY dUPOnt

R oyal Skandia has launched a new product called the Aurora Quantum

lite Qualifying Recognised Overseas Pension Scheme (QROPS) , designed for investors with transferrable Uk pensions of up to £75,000. the arrangement, which will be subjected to a one-off set up fee of £295,

will have an ongoing annual charge ranging from £295 onwards.Rachel Griffin, head of product law and financial planning at Royal Skandia, comments: “Feedback from advisers indicates that clients with smaller pensions also want to benefit from the flexibility of QROPS but need a more cost

effective solution. Clients want to continue to contribute towards their retirement whilst consolidating their existing pension arrangements and both Aurora Quantum and Quantum lite can now address these needs.” www.royalskandia.com

A dam Shaw to serve as lead presenter with Saima mohsin joining as co-

presenter

Singapore, 6 February 2012. bbC world news and bbC.com have commissioned twofour to produce a new series of the

popular programme Horizons that will premiere in April 2012. Horizons is a 30-minute weekly programme, sponsored by duPont, which explores the ways in which we will live and work in the next decade.

the second series of Horizons will continue the journey across the globe in search of the ideas and businesses that may succeed over the next decade in tackling the planet’s biggest challenges. www.bbc.com

When making investment decisions it makes sense to be guided by the experts.

Our Executive Investment Account has just been awarded Best Single PremiumInvestment Product (Far East) in the International Life Awards 2010. And ourInvestment Account won Best New Product (Far East) in 2009. These werevoted for by an independent panel, appointed by ‘International Adviser’, a recognised publication for global investment advice.

Royal Skandia is a premier offshore provider that truly understands yourfinancial goals. Please ask your financial adviser how you can share in our success.

share in our success in Asia

Skandia International is the divisional name for the international group of companies within the Skandia Group.Calls may be monitored and recorded for training purposes and to avoid misunderstandings.Skandia International is the registered business name of Royal Skandia Life Assurance Limited (Singapore Branch).Royal Skandia Life Assurance Limited (Singapore Branch), Level 25, North Tower, One Raffles Quay, Singapore 048583. Phone: +65 6622 5406 Fax: +65 6622 5400Registered in Singapore Number T08FC7158E. Authorised by the Monetary Authority of Singapore to conduct life assurance business in Singapore.Member of the Life Insurance Association of Singapore. Member of the Singapore Finance Dispute Resolution Scheme.Royal Skandia Life Assurance Limited – a member of the Skandia Group of companies. Registered Office/Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles.

INT11-006

INT11-006 HK advert_proof4_INT11-006 01/02/2011 17:22 Page 1

When making investment decisions it makes sense to be guided by the experts.

Our Executive Investment Account has just been awarded Best Single PremiumInvestment Product (Far East) in the International Life Awards 2010. And ourInvestment Account won Best New Product (Far East) in 2009. These werevoted for by an independent panel, appointed by ‘International Adviser’, a recognised publication for global investment advice.

Royal Skandia is a premier offshore provider that truly understands yourfinancial goals. Please ask your financial adviser how you can share in our success.

share in our success in Asia

Skandia International is the divisional name for the international group of companies within the Skandia Group.Calls may be monitored and recorded for training purposes and to avoid misunderstandings.Skandia International is the registered business name of Royal Skandia Life Assurance Limited (Singapore Branch).Royal Skandia Life Assurance Limited (Singapore Branch), Level 25, North Tower, One Raffles Quay, Singapore 048583. Phone: +65 6622 5406 Fax: +65 6622 5400Registered in Singapore Number T08FC7158E. Authorised by the Monetary Authority of Singapore to conduct life assurance business in Singapore.Member of the Life Insurance Association of Singapore. Member of the Singapore Finance Dispute Resolution Scheme.Royal Skandia Life Assurance Limited – a member of the Skandia Group of companies. Registered Office/Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles.

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M YC K

While every effort has been taken to carry out instruction to customers satisfactionNO RESPONSIBILITY liablilty will be accepted for errorsCUSTOMERSARE THEREFOREURGEDTO CHECKTHOROUGHLY BEFOREAUTHORISINGPRINT RUNS

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BRITCHAM EVENTS

Breakfast CluB: the Developing WorlD: emBraCing an explosion of Creativity

presenter: fredrik haren - speaker & author of the idea Book and the Developing World

Breakfast CluB: managing supply Chain risk

presenter: Jason teo - Chairman, tapa (transported asset protection association)

Breakfast CluB: proDuCtivity - more With more, not more With less

Doing great Work that has meaningpresenter: ray Bigger - managing Director, think8

Thursday, November 24, 2011, Shangri-La Hotel

Tuesday, January 10, 2012, BritCham Office (138 Cecil Street, #13-03)

Tuesday, January 31, 2012, Azalea Room, Shangri-La Hotel Singapore

Fredrik is one of the most talked-about names in the field of creativity. He is an accomplished author and speaker who has delivered over 1,000 presentations, lectures and workshops focusing on creativity, idea generation and entrepreneurship.

Jason Teo is the Senior Director of Business Continuity for Infineon Technologies Asia Pacific Pte Ltd.

Ray is a ‘People & Meeting Architect’. Ray has over 30+ years’ solid experience in senior marketing positions across multiple industries.

THe BRITCHAM BReAKFAST CLUB IS PROUDLy SPONSOReD By



Business group Working lunCh - What happens if the line goes DeaD?

the risks anD opportunities of putting your Business into the ClouD.

presenter: British Chamber of Commerce iCt Business group

Friday, November 25, 2011, Pan Pacific Hotel (Marina Square)

Host: Tim Pullan, Taylor VintersCase Study: Dr. Peter Lovelock, Senior Advisor to the Chairman and CeO of Singapore’s Global yellow PagesExpert Panel: Margaret Manning, CeO of Reading Room; John Galligan, Regional Director for Government Relations for Microsoft in Asia Pacific; and Bill Padfield (AMP, INSeAD, France), Chief executive Officer of Dimension Data Asia Pacific

yolande Barnes leads the Savills Residential Research team specialising in residential, development, investment and regeneration issues.

Wednesday, November 30, 2011, The Tanglin Club

Business group netWorking: is lonDon still among the WorlD-Class Cities?

resiDential real estate – a vieW from lonDon

presenter: yolande Barnes - head of uk residential research, savills


BRITCHAM EVENTS

BCC strategiC partner event: turBulenCe revisiteD 2012: an eConomiC outlook anD

Business forumpresenter: Dr yuwa hedrick-Wong

Thursday, January 12, 2012, Pan Pacific Hotel (Marina Square)

Wednesday, February 01, 2012, Ocean 3-5, Pan Pacific Hotel (Marina Square)

BritCham/ukti Briefing - What’s going on in China

presenter: Chris Wood - Deputy head of mission in Beijing

The Insight Bureau, in strategic alliance with the British Chamber of Commerce, hosted an extended breakfast forum; a timely outlook on the state of the global economy, prospects for Asia and a moderated discussion to think about the key implications for businesses.yuwa Hedrick-Wong is an economic advisor to MasterCard, ICICI and Southern Capital Group and is the HSBC Distinguished Visiting Professor of International Business at the University of British Columbia in Canada and an Adjunct Professor at Fudan University in China.

Chris Wood has been a public servant for 30 years, in different UK Government ministries including the Dept of the environment, the Cabinet Office and the Office of the Deputy Prime Minister.



2 011 was an extremely productive year for 8build,

further developing our close relationship with Kenyon Pte Ltd by supporting them on office fit out projects for the likes of

Bank of America Merrill Lynch, Barclays Capital, Macquarie Group, and Nike Inc. We have obtained the necessary accreditations to become officially recognised as a Main Contractor by the Building

Construction Authority and the Ministry of Manpower. The new year sees us ready to deliver ‘fit out’ projects in our own right. Please email [email protected] for further information

A rup recently celebrated the official completion

of one of the world’s largest climate-controlled glasshouses, Flower Dome at Gardens by the Bay. Measuring 1.2 hectares in area and 38 metres in height, Flower Dome is one of the two

conservatories in Bay South. It is cooled to temperatures between 23˚C to 25˚C to showcase flowers and plants such as baobab trees, olive trees and date palms, which are typically found in the Mediterranean and semi-arid subtropical regions.

The conservatory features a 16,000-square-metre façade, made up of more than 3,300 glass panels, and offers breathtaking views of Marina Bay. Arup provided its services in the areas of fire and façade engineering. www.arup.com

FRee PReSeNTATION ON LONDON PROPeRTy MARKeT

A STeLLAR CAST FOR AWARD-WINNING “OUT OF ORDeR”

FLOWeR DOMe AT GARDeNS By THe BAy

8BUILD ReADy TO TRADe AS ‘FIT OUT’ CONTRACTOR

BLP STReNGTHeN INTeRNATIONAL ARBITRATION TeAM

T he Directors of London rental property specialist, Benham and Reeves, will be in

Singapore from 16th to 18th February, and are hosting a free presentation illustrating how to profit from the London property market. Anita Mehra, Managing Director, reports that rental demand in London is extremely high but a severe shortage of rental property remains.

One- and two-bedroom apartments are in particular demand, with many letting in one or two viewings. Professional tenants are plentiful — currently nine to every available property. [email protected] For More Info contact:LyNNe GeeVSCeA Registration No R041835At + 65 64636026 , m + 65 92337567

O ne of Britain’s most successful TV celebrities comes to Singapore

to star in one of the most lauded performances produced by the British Theatre Playhouse — “Out of Order” by Ray Cooney. Robin Kermode has starred in “Casualty”, “eastenders”, and the legendary “emmerdale Farm”, and will take the

leading role of Richard Willey MP in this Laurence Olivier Award-winning play (for Best Comedy). The play opens on 11 April at the Jubilee Hall Theatre, Raffles Hotel, with a charity gala premiere to benefit the Business Times Budding Artists Fund right through to 15th April. Kermode has also appeared as Sir edward Ramsey in the West

end production of “The King and I” at the London Palladium and, most recently, as John Major MP in the highly successful, award-winning film “The Iron Lady” with Meryl Streep. www.britishtheatreplayhouse.com

K ent Phillips has been appointed as a partner to BLP’s Singapore office

to spearhead the firm’s international arbitration practice in the region. Kent has more than a decade of proven global expertise across a wide variety

of contentious work, and specialises in litigating and arbitrating complex cross-border disputes. From a Singapore base, Kent will advise clients with interests in South east Asia and further afield, including India and mainland China, who choose to

arbitrate in Singapore, and elsewhere in the region. This is a very significant appointment for BLP as the company continues to grow its litigation and arbitration capabilities both within the UK and internationally. www.blplaw.com


MEMBERS - CORPORATE NEWS

CISI launCheS new Global FInanCIal ComplIanCe qualIFICatIon (GFC)

t he new qualification standard is a comprehensive global introduction to all the issues a global

compliance officer may encounter. It provides a sound grounding in the international regulatory environment; the compliance function; managing the risk of financial crime;

ethics, integrity and fairness; as well as governance, risk management and compliance.

the CISI GFC qualification is particularly aimed at compliance officers and all compliance staff. www.cisi.org

Clear Channel SInGapore GoeS mobIle lIFe!

D ouglas-westwood’s world Deepwater market report forecasts a 90% growth in expenditure, compared

with the previous five-year period, with uS$232 billion to be spent between 2012 to 2016. with deepwater projects becoming increasingly capital-intensive, there is an economic challenge for e&p companies and a significant potential prize for international oilfield service and equipment vendors.

regionally, the focus for development activity will largely remain in the deepwater ‘golden triangle’, with africa and the americas representing 72% of forecast spend. latin america is likely to experience substantial growth, exceeding africa’s deepwater expenditure towards the middle of the forecast period. www.douglaswestwood.com

r aising the bar for out-of-home bus shelter advertising, Clear Channel

Singapore launched the first ever near Field Communications (nFC) network. two hundred select locations island-wide currently carry the nFC chip and a quick response (qr) code, transforming

the shelter panels into a launch pad of interactivity and engagement!

Clear Channel Singapore kick-started 2012 with a move to a new office at Suntec tower 3, and the launch of service brands mobile life! and play. www.clearchannel.com.sg

b w embraces the corporate culture of every client while working with consultants to ensure that

the best furniture solution is delivered. we strive to make the workplace better. bw has an unparalleled portfolio of products that allow us to offer a comprehensive furniture package incoporating the

latest technology and global trendes. our corporate culture is to address the client’s needs first without losing focus on the environment and community.bw’s is proud to introduce the new, exclusive haG product range to the asia marketplace in 2012.www.bwfurniture.com

p ractice your swing or play 65 of the world’s best courses on six state-of-the-art Full Swing

golf simulators, rain or shine! each shot is accurately measured and seamlessly displayed, making it closest to the real thing. Citygolf is a refreshing lifestyle experience confined solely by your imagination.

Citygolf on level 61 is a part of 1-altitude, a 16,000-square-foot lifestyle destination occupying the top three floors of Singapore’s highest building, one raffles place, which also boasts the world’s highest outdoor bar. www.citygolf.com.sg

bw FurnIture

CItyGolF – a reFreShInG lIFeStyle eXperIenCe

latIn amerICa’S Deepwater SpenD ForeCaSt to overtake aFrICa



e xpat Insurance has expanded the number of british insurance advisors to meet growing

demand for its expat advisory services. Founder, Danielle warner, commented that “Demand for our advice has grown significantly since expat Insurance was recently named runner up of ‘ best Small

business, rising Star’ in the british Chambers business awards and also voted ‘best Insurance’ by Expat Living readers. we are especially busy with individual and corporate medical insurance inquiries.”www.expatinsurance.com.sg

h allin’s ullswater subsea operations vessel recently completed the

replacement of the ardjuna Field single point mooring for pertamina hulu energi. the ardjuna Field is in the north west Java Sea, 18 miles (29 kilometres) off the Java coast. the mooring is a 250-tonne buoy

to which three subsea export hoses are attached. removal of the existing buoy and replacement with the new buoy was a complex operation involving saturation diving on the seabed and air diving at a variety of depths. www.hallin.com.sg

DaIly FInnaIr FlIGhtS For FaSteSt ConneCtIon to northern europe

hallIn marIne InStall SubSea hoSe moorInG In Java Sea

eXpanDInG eXpat InSuranCe

I n may last year, Finnair launched its daily Singapore–helsinki flights with

fast connections to over 50 european destinations, including london and manchester. Flights from Singapore stopover at the helsinki airport — which has been voted as one of the world’s most efficient airports. upon arriving at helsinki

airport early in the morning, passengers transfer and reach their destination within one to three hours, making Finnair the preferred airline for business travellers. on your return flight experience the Finnair lounge, voted as the world’s best airport lounge. relax with drinks and snacks or surf with free wi-Fi. www.finnair.com

aIr qualIty eXpert Dr attIlIo polI JoInS envIroSolutIonS & ConSultInG

a s principal Consultant, Dr attilio poli joins eSC from take air, Italy, to develop local

and east asia markets for air quality consulting services. air quality brings 20 years of experience in air quality to support businesses, by offering turn-key services for monitoring, modelling,

permitting and planning by means of state of the art science tools. he is an internationally known expert who developed the Italian national air quality forecasting service and contributed to the spread of public environmental awareness. www.envirosc.com

e xclusive analysis, a specialist intelligence company that forecasts

commercially relevant political and violent risks worldwide, has seen a rise in the number of asian companies looking for foresight into the european sovereign debt crisis, the middle east and africa. the company recently completed a trip to hong

kong and Singapore, with the heads of regional forecasting units highlighting key risks and opportunities for firms abroad. Speaking engagements included a briefing at lloyds, at Jtl, as well as for several large asian multinational corporations. www.exclusive-analysis.com

IntellIGent rISk analySIS


m 3 marine Group, one of asia’s largest independent and leading offshore

ship brokerage and marine consultancy groups, has, despite the tough market conditions in 2011, ended the year on a high note. riding on the back of having a clear understanding of the standards

required by the end user and employing top-quality professionals with high-level operational experience, we have built ourselves a solid reputation known for our prompt, quality and ‘added value’ service which differentiates us from our peers. www.m3marine.com.sg

S ingapore, 9th January 2012 — a new Centre of excellence (Coe) initiative

announced by kpmG in Singapore seeks to attract world-class talent in six identified subject areas and sectors to Singapore. effective from 1st February 2012, this multi-million dollar initiative will take

the form of a dedicated team comprising a combination of 30 world-class e x p e r t s a n d o t h e r l e a d i n g professionals in their field. the six centres of excellence are:• Tax centre • Management Consulting Care

• Energy and Natural Resources Centre• Financial Services Centre • Government and Infrastructure Centre• HealthCare Centre www.kpmg.com.sg

m andarin oriental, Singapore garnered

five-star ratings for the hotel and spa in the 54th Forbes travel Guide Five and Four Star awards. recently unveiled in august 2011, the Spa at mandarin oriental, Singapore made its debut and is one of

only two hotels awarded the coveted five-star rating for spa. Discerning travellers and spa enthusiasts may now enjoy their own five-star experience with “Spa escape”, the perfect way to relax and recharge. www.mandarinoriental.com/singapore/tempting_offers

loCal ServICe From your InternatIonal health InSurer IS

valueD SayS Survey

I nternational private medical insurance (IpmI) provides business people with the

reassurance that they will be able to access top-quality healthcare when and where it is needed around the world, particularly when

it is coupled with a high level of personal, locally based service. according to a survey conducted by IpmI insurer, InterGlobal, 97% of brokers surveyed said that InterGlobal’s strength was its ability to offer

local service on a global scale. InterGlobal delivers customer service from Singapore, the uk and 11 other international offices. www.interglobalpmi.com

m3 marIne Group SuStaInS throuGh touGh eConomy

kpmG anD the eDb to launCh the kpmG Centre oF eXCellenCe

(Coe) InItIatIve In SInGapore

a FIve Star eXperIenCe

w e are delighted to announce the establishment of landmark’s first

office in asia, which opened on ann Siang road, Singapore, in november 2011. we are also very pleased to welcome victoria Chua

to our asia team. this is only one part of a double celebration, however, as 2012 marks the fifth anniversary of landmark europe. the landmark team looks forward to continuing to deliver top-quality advisory

services to our clients, from both asia and europe. www.landmarkasia.asia

FIrSt oFFICe In aSIa




p acnet, asia’s leading business telecommunications service provider, has launched pacnet CDn, its latest content delivery

network (CDn) service which accelerates the Internet experience by bringing digital content closer to the user. through an extensive network of CDn points of presence (pops) located across the asia-

pacific, the service will intelligently deliver the latest content from the CDn pop closest to the user. this will enable users to enjoy faster-loading websites, lag-free high-definition streaming media and rapid file downloads. For more information, please visit www.pacnet.com/cdn.

the GrounD breakInG muSt-See muSICal

paCnet aCCelerateS the Internet wIth new CDn SolutIon

S pring awakening tells the tale of a group of teenagers embarking on a

turbulent journey of self-discovery, each one experiencing a dramatic psychological, emotional, spiritual and sexual awakening.

meet the misfit, the Innocent, the rebel, the mama’s boy, the runaway, the abused… For these youths growing up in 1892, the only means of expressing their confusion, frustration and passion is music. rock music. Show dates: 3rd — 26th February 2012 venue: Drama Centre theatre, Singapore. tickets at Sistic. www.pangdemonium.com

Global Growth For mott maCDonalD

m ott macDonald is a uS$2.2 billion global management, engineering

and development consultancy of unrivalled diversity spanning 140 countries, across 12 core business areas, with over 14,000 staff. mott macDonald Singapore has been

operating for over 30 years with a team of 200 employees. we support a range of clients with developments in the rail, road, buildings, infrastructure and energy sectors. www.mottmac.com

n ovus media Solutions (novus) is a Singapore-based custom content

and publishing specialist which works on all platforms — from print through to digital and video. with an in-house digital agency, Firestarter as well as a strong media sales team, novus works with clients across

the asia-pacific region on all aspects of the publishing process, from content to sales, marketing and communications. with its strong team of experienced creative and communications specialists working across multiple languages, novus creates bespoke materials for brands who want to connect, or reconnect, with their customers.

Its client base includes multinationals as well as leading Singapore businesses across a wide range of industry verticals.

Founded by Simon Cholmeley and rosemarie wallace in 2009, novus is a wholly-owned subsidiary of novus Group holdings. www.novusasia.com

DynamIC multI-meDIa Group

FIrSt aSIa oFFICe openS

o lswang, one of europe’s leading law firms, has opened its first asia office in Singapore to serve the aSean region, India

and China. olswang asia, led by managing partner rob bratby, will provide corporate, commercial and international arbitration, as well as Ip legal services to international clients in the technology, media

and telecommunication industries. In-depth market knowledge obtained through decades of advising clients on the cutting-edge issues of the day has positioned olswang as a “go-to” firm for clients in those sectors. www.olswang.com


hollywooD DreamS paraDe In uSS

SaGe aChIeveS oraCle DatabaSe reaDy StatuS

r esorts world Sentosa ended 2011 on a high and celebratory note with the

unveiling of the hollywood Dreams parade in universal Studios Singapore, a massive, full-scale theme parade, which adds an even greater variety of colour and festivity to the region’s first movie theme park.

the parade made its debut on new year’s eve, electrifying the park with 14 intricately detailed floats, magnificent special effects, a custom musical score, and an assembly of over 100 performers including dancers and fan-favourite characters from the park. www.rwsentosa.com

r eliant logistics, a subsidiary of

reliant oilfield products, was established to provide support to companies when moving their valued assets, from local

scheduled shipments to international critical component replacements. as a specialist logistics company it is pivotal to provide unparalleled service levels that exceeds customer and market expectations. reliant

logistics offers the right capabilities, with efficient and superior quality services, thus allowing its customers to focus on core competencies. www.reliantlogistics.com.sg

t he Sage Group plc, which is a global supplier of business management

software and services for small and medium-sized businesses, announced that Sage erp X3 has achieved oracle Database ready

status through oracle partnernetwork (opn), demonstrating that Sage has fully tested and supports Sage erp X3 on oracle Database 11g release 2. lowered storage usage, reduction in administration tasks

and consolidation onto secure private database cloud environments can now be achieved. www.sageasiapac.com

the people behInD the SolutIon

a s your enterprise grows, you would do well to realise that the ‘shape’ of your organisation is just as important as securing

new contracts. like near- and far-sight, on the journey to a mature, secure business, a change of focus is all it takes. Force yourself to

deal with some of the “stuff” that until now has “taken care of itself” — hr standards, financial structure, legal/compliance, strategic market position, how/what you sell. www.pinstripe.asia

S ingapore Cricket Club is one of the premier Sports

and Social clubs in the asia pacific region, proudly situated in the heart of the town with 160 years of heritage. the members of the british Chamber of Commerce in Singapore are privileged to enjoy this special

membership rate of S$2,500 per annum. this promotion is a saving of S$1,000 off the usual rate for term membership, valued at S$3,500. Interested parties please call Snow at 6338 9721, ext 221 or email [email protected].

entrepreneurS, when IS buSIneSS not about buSIneSS?

brItCham member prIvIleGe




watatawa Growth ContInueS

w atatawa, the stakeholder engagement consultanc y,

has won new assignments from Singapore’s ministry of home affairs and the county’s energy market

authority. watatawa Ceo bill rylance said the appointments capped an exciting 2011, which also saw the consultancy win a number of new private-sector clients.watatawa (“walk the talk, talk the walk”) provides clients with strategy, positioning

and communications to enhance reputation and trust among stakeholders. watatawa also recently established a social media joint venture in addition to a new corporate responsibility offering. www.watatawa.asia

Gentle, holIStIC ChIropraCtorS

tanGlIn truSt SChool – CommunIty InteGratIon

StephenSon harwooD anD InDoneSIan law FIrm, ChrIStIan teo purwono &

partnerS, enter Into aSSoCIatIon

I nternational law firm Stephenson harwood and leading Indonesian

law firm Christian teo purwono & partners (Cttp), have agreed to a formal association. the association will extend the reach of both firms within South east

asia, allowing them to capitalise on the increasing interest of foreign investors in Indonesia’s vast market and the growing moves by Indonesian companies to expand internationally. Stephenson harwood’s Chief executive, Sharon white, who was also

in Singapore to participate in the office’s 15th anniversary celebrations, signed the association agreement with Jakarta-based Ctpp founder and partner Christian teo on thursday, 24th november 2011. www.shlegal.com

S tudents from tanglin trust School’s sixth form

met with students from hwa Chong Institution, Singapore, in January, to discuss and come to an agreement on how they can work together on local service projects. the

first joint project involved tanglin students, who helped hwa Chong with their food drive at Chinese new year for two voluntary welfare organisations ( vwos). the national volunteers philanthropic Centre (nvpC)

is helping to link the students to vwos in Singapore as part of an island-wide project to develop service-based learning and foster community integration. www.tts.edu.sg

w e are chiropractors that specialise in exclusive and gentle, holistic Sacro-

occipital technique (Sot) care. Get relief from those persistant aches and pains in your neck and back. many other health issues such as migraines and arm or leg numbness and

tingling can be resolved. the list of conditions that Sot Chiropractic can significantly improve is extensive using proven natural methods without any drugs or surgery. Contact us to find out how we can help you, and start living a healthy life today. www.spinalbalance.org

2012 Formula 1 SInGtel SInGapore GranD prIX tICketS now avaIlable

e arly-bird tickets for the 2012 Formula 1 Singtel Singapore Grand prix are now

available for sale at www.singaporegp.sg. In addition to group booking specials offering significant savings, the newly introduced Combination packages offer fans value for

money as they can experience different parts of the circuit over three days (21st to 23rd September). Companies can also opt to entertain guests from a range of hospitality options that offer unparalleled views, superb service and the finest cuisine and wines.


AR TS & CULTURE

E ven those without Welsh connections will agree that Wales has been a great

contributor to the UK’s culture and singing by male performers is at the heart of Welsh culture.

The St David’s Society of Singapore is holding a “Welsh Week”. Held in the first week of March, the event will feature various performances and activities. The centrepiece undoubtedly will be a visit from the Dunvant Male Choir from South Wales. Dunvant is an old industrial village five miles from Swansea and in its heyday was home to two collieries, an iron foundry, brickworks and a lavabread factory; lavabread is a local delicacy made from seaweed! Peter Phillips, an active member of the society who hails from Dunvant says, “It was a wonderful village to be brought up in with such a rich character and a real close‐knit community. The choir — together with the rugby club, the chapel and the local hostelry — was a central part of that community.”

The choir represents the best in traditional and modern choral music. It was founded in 1895 (which makes it the oldest in Wales) with its roots in the non‐conformist chapel

of Ebeneser, which stands proudly in the village square.

As a competitive choir, it has achieved outstanding success and now concentrates on performing all over the world, making itself available to charities and festivals that demand top-class performances. In recent years, the choir has enjoyed success at the Cardigan Eisteddfod and at the National Eisteddfod of Wales, St David’s.

The choir travels throughout Britain to concert engagements, often aiding charities. It has performed at many leading venues including the Royal Albert Hall,

King’s College Chapel in Cambridge, Birmingham Town Hall, Usher Hall in Edinburgh, and several of UK’s great cathedrals. In addition, the choir has made numerous recordings.

On the international front, the choir has undertaken numerous tours including to USA, Germany, Ireland and Canada. One memorable performance, “The First North American Festival of Wales” was held in Vancouver.

“We are very excited by the prospect of hosting one of the country’s leading choirs here in Singapore”, says St David’s president,

“WELSH WEEK” IN SINGAPORE

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Chris Jones, from Cardiff but a long-time resident of Singapore. “We are hoping the choir will appeal not only to the small Welsh community here but to all music lovers in Singapore.”

The main events during “Welsh Week” will be the St David’s ball at the Tanglin Club on March 3 as well as a musical evening at Eden Hall; the residence of the British high Commissioner to Singapore, His Excellency

Mr Antony Phillipson on March 8. There will also be performances at St George’s Church, Tanglin Trust School and the British Club. The week will be rounded off by a party at Asia Square’s Exchange Bar in the Marina Bay Financial district on March 9. The function at Eden Hall is part of a series of events leading up to the Queen’s Diamond Jubilee celebrations.

“The Society is indebted to a number of

corporate sponsors who have made this event possible,” says Chris, “including Coutts & Co Ltd, Jones Lang LaSalle, Markel International, John Foord, The Fry Group as well as a number of private donors. We have also received tremendous support from the British High Commission, Tanglin Trust School and the British Club and we are certain this will be a week worth remembering for the British community in Singapore.”

The programme of events is as follows: The St David’s Society supports the Children’s Aid Society in Singapore and Sok Sabay, a charity dedicated to helping families in Cambodia, donating any surplus funds to charitable causes.

St David’s Ball Tanglin Club Mar 3 2012 from 7.00pm

Lunchtime Concert for Tanglin Trust School Mar 5 2012 at 12.00pmstudents and parents

Evening Concert St George’s Church, Mar 5 2012 at 7.30pm Dempsey Road

Cocktails and Choir British Club Mar 7 2012 from 7.30pmEvening

Verse & Song Evening Eden Hall Mar 8 2012 from 7.00pm

End of Tour Party Exchange Bar Mar 9 2012 from 7.00pm

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AR TS & CULTURE

SHAKESPEARE FOR THE SOUL

G ood stories have to be told often, and told well.

Since 1993, the Singapore Repertory Theatre (SRT) has charmed close to 100,000 audience memebers every year with their critically acclaimed stagings of classic English theatre.

Take the immensely popular Shakespeare In The Park series, where over 30,000 students, couples, families, and colleagues come with picnic baskets for an annual evening of Shakespeare under the stars.

Audiences have feasted on theatre classics from the Bard: the gripping, violent worlds of Hamlet and Macbeth, to the endearing romantic comedies like Midsummer’s Night Dream, and Much Ado About Nothing. The stellar productions have received praise and recognition from the critics and audiences; winning immense support from Singaporeans, who flock in droves to Fort Canning Park every year.

This year will see the return of the celebrated outdoor theatre series with Twelfth Night staged in Fort Canning Park.

The creative team is star-studded with top British theatre talent, some who will be flown in to create an enchanted evening worth remembering.

“At SRT, we like telling stories that inspire, engage and entertain. And to that end you can’t get around the classics by great masters like Shakespeare. He is ever relevant and tell his stories about human

relations in such beautiful language. The plays may be written hundreds of years ago but are still relevant today,” said Ms Charlotte Nors, Executive Director of SRT.

Making Shakespeare a household name in Singapore is what SRT is dedicated to – and seems to be achieving. Look no further than the high-profile The Bridge Project, and you’ll see what I mean.

Three definitive stagings of Shakespeare’s works — The Winter’s Tale (2010), The Tempest (2010), Richard III (2011) — performed by a glitzy, jetsetting, star-studded cast with Simon Russell Beal, Kevin Spacey and Rebecca Hall and also directed by Sam Mendes. That is enough said.

It is no wonder then that this transatlantic co-production between SRT in Singapore (the only co-commissioning partner involved in all three years), The Old Vic in London and Brooklyn Academy of Music in New York hogged headlines and captured eyeballs across the globe. The Guardian newspaper called it a “a fascinating transatlantic collaboration”, London’s Evening Standard deemed it “a significant theatrical event”.

In Singapore, over 50,000 arts lovers – old and new – trooped to the Esplanade theatre to catch The Bridge Project. The ambitious Shakespearean stagings became an attention-grabbing highlight in arts calendars.

The Bridge Project followed with a string of international collaborations that SRT has presented over the years. In 2007, SRT was the first and only Asian stop on the Royal Shakespeare Company’s world tour of King Lear and The Seagull, which was directed by Sir Trevor Nunn and starred Sir Ian McKellen.

“We need to be inspired by great writers, and by showing texts come alive we believe we foster a love for literature and storytelling,” said Ms Nors. The importance of growing an appreciation for English literature is at the forefront of SRT’s mission. After all, literature is the root of human civilisation, and part of our heritage. In what better way

2009 Much Ado about Nothing (photography by Sir Michael Culme-Seymour)

Macbeth 2011



is there to experience Shakespeare than in the theatre?

Beyond that, SRT hopes to reach out not just through the theatres, but into the classrooms. The theatre group connects with a large number of students at assembly talks, holiday classes, as well as the Shakespeare In The Park series, which is boosted by educational masterclasses and hands-on workshops that get students excited about the English theatre classics.

Young theatre-makers, playwrights and actors are being groomed in SRT’s youth arm, The Young Company, so as to nurture and expand the next stage of English theatre and literature lovers, who will, in turn, inspire future generations. A new programme nurturing young playwrights and original locally written and produced English plays will soon be launched, and provide a space for stories from the constantly-changing social landscape of Singapore.

There is a long history of partnership between the British and Singapore cultural industries. SRT itself works with at least ten top British talents every year, from actors to directors to creative team members. “We hope that the opportunity to work with the best practitioners in the world will add a new dimension of professionalism to the local theatre industry,” said Ms Nors.

For the children’s musical opening in March, The Three Little Pigs, SRT has roped in two of the hottest British musical talents, George Stiles and Anthony Drewe (frequent collaborators with esteemed London producer Cameron MacKintosh). They will be writing this musical for the young, and those young at heart.

Closer to home, SRT often works with British theatre practitioners who are based in Asia. Daniel Jenkins, for instance, who runs SRT’s The Young Company, is an actor and educator who is originally from London but has been based in Singapore for 14 years.

The arts and culture scene in Singapore is fast-changing, and dynamic. It is also becoming increasingly competitive, with theatre mammoths like Marina Bay Sands and Resorts World Sentosa bringing in big, touring musical acts.

What is important, however, is that heritage and tradition continues to grow. This emphasis on heritage is why SRT believes it is important to promote English theatre and literature to Singaporeans, and foster an appreciation for mastery of the craft.

As a non-profit charity, SRT is dedicated to creating theatre events of the highest calibre. They strive to keep their productions world-class, as an independent cultural arts company against the industry bigwigs in the arts market. They present contemporary and cutting-edge works, which are, at the same time, respectful of tradition and dedicated to the culture of the English language.

Without literature and lore, civilisation becomes but an empty shell. SRT works to

cultivate a deep appreciation of the English classics by seeding a love for theatre. They believe in staging entertaining, enjoyable shows for evenings out with friends, family, and colleagues. But beyond that, they also believe in creating an environment where meaningful appreciation for the intricacies and beauty of the English language can thrive.

“Our wish for the year of the Dragon is that British companies will step in and support our investment,” said Ms Nors. “Shakespeare In The Park has always been a great social event to bond people within organisations. And at the same time, celebrate British culture.”

So pack those picnic baskets, and head down to Fort Canning Park to enjoy a memorable evening of Shakespeare under the stars. It will make your experience a magical night to remember. Before you know it, you will be shouting, “Encore”.

Tickets are on sale for Twelfth Night via www.sistic.com.sg

Singapore Repertory Theatre Founded in 1993, Singapore Repertory Theatre (SRT) is one of the leading English language theatre producers and presenters in Asia. In addition to its repertoire of original musicals like Forbidden City: Portrait of an Empress, the company has produced a number of critically acclaimed plays that include Into the Woods, Rent, M Butterfly, They’re Playing our Song, ART and The Pillowman.

SRT was the first Singaporean theatre company to be present on Broadway in 1998 as Associate Producer of Golden Child, which went from Singapore to New York and earned three Tony Award nominations. SRT presented Royal Shakespeare Company’s King Lear and The Seagull starring Sir Ian McKellen in 2007 well as all three instalments of The Bridge Project. SRT is the producer of Shakespeare in the Park and via itsLittle Company, the biggest producer of theatre for young audiences in the region. Please visit www.srt.com.sg.

Macbeth 2011


SPOR TS

T hroughout the duration of the 2012 Games, Lancaster House, a palace on

The Mall, will be transformed into The British Business Embassy, and host a programme of prestigious events.

The Global Investment Conference on July 26 will bring together the largest group of investors from around the world under a theme of ‘Partners for Growth’.

Guests will include some 200 Chairmen and CEOs of sovereign wealth funds, fund

managers, financial firms and investors from fast-growing BRIC and emerging countries, developed economies and the UK. The event will focus on partnership opportunities for investments globally and into the UK.

Sector SummitsThe sector programme will present sessions showcasing the UK as a thought leader, a creative and innovative nation and a hub for solutions from products and services to technologies and ground breaking ideas.

The programme will be streamed live to regional and international hubs through YouTube. The programme will also see a partnership with the BBC for coverage of highlights during the Olympic Games period.

Running parallel with the sector summits will be a series of daily government-hosted lunches for global business leaders to discuss and debate key issues facing the UK and industry.

LONDON 2012: DELIVERING INTERNATIONAL BUSINESS LEGACY

by Sarah Croft, Director, Trade, UK Trade & Investment



During the Paralympic Games, the British Business Embassy will continue. The key theme will be accessibility, inclusion, assistive technologies and universal design.

British Business ClubThe British Business Club is an online, one-stop shop where members will find up-to-date details of networking events, business activity, news and potential partners around the London 2012 Olympic and Paralympic Games and other major international sporting events.

For more information and to join, please visit: www.britishbusinessclub.org

Twitter: @britbizclub

About the Author: Sarah CroftDirector, TradeUK Trade & Investment


DESTINATION

O man isn’t an obvious tourist destination. It attracts little more

than a million people a year and is often over-shadowed by its brasher neighbour Dubai. Despite this, it offers a warm welcome and perhaps a more authentic Arabic experience to visitors. I drove through its rugged mountains, camped in one of its deserts and took a cruise through its northernmost fjords.

Emblazoned across the sliding doors at the entrance to the airport at Muscat, the capital of Oman, there’s a picture of a man wearing a turban and a perfectly groomed beard. Underneath it reads, “Oman Air salutes Sultan Qaboos for 40 years of inspired leadership.”

His serene disposition appears everywhere: in museums, banks and shopping malls and on murals the height of buildings. When my guide, Nabhan Al Nabhani, introduced me to his family, his mother ushered me to her bookshelf to show me two things: a photograph of her son, but first, a framed newspaper cutting of their ruler. I even spotted him smiling down from the walls of a barasti Bedouin hut.

Before Sultan Qaboos bin Said came to power in 1970 (everyone can tell you the exact date) this country on the Southeastern tip of the Arabian Peninsula, had just five kilometres of tarmac road, one hospital and three schools for boys.

Today thanks to an ambitious modernisation programme financed by

oil, roads span across the country in all directions, schools (for both genders) number more than a thousand, and education and healthcare are free.

Oman is today keen to welcome tourists and among the handful of cities and regions that are attracting the more intrepid of travellers.

Muscat – modern, clean and full of museumsAll flights to Oman land in Muscat, the modern, clean capital. It’s characterised by smooth dual carriageways flanked with manicured grass verges and roundabouts planted with flowers. There’s not a weed in sight. Everywhere looks perfect as if you could almost be driving through a scaled-up version of an ideal model town.

The city boasts a recently opened opera house, numerous museums and the immaculately restored Muscat Gate.

The charm of Old Muscat For a sense of Old Arabia, head to the old town where you will find two small Portuguese forts, Mirani and Jalali. They overlook Muscat Bay and Al Alam, one of the Sultan’s eight palaces, backs onto the water.

Lose yourself in Muttrah’s soukA 15-minute drive northwest from Old Muscat takes you to Muttrah, Muscat’s commercial district. Its crescent bay is surrounded by camel-coloured mountains, topped by a single fort. You’re likely to

spot the Sultan’s yacht gleaming among traditional wooden dhows and naval boats in the harbour.

I took a stroll along the corniche over marble flagstones so shiny I thought they’d just been polished. At one end lies Muttrah souk, the oldest in Oman, with its labyrinthine alleyways and stalls selling Arabic coffee pots, incense burners and khanjars — carved sheathed daggers, part of the men’s traditional dress.

If something catches your eye, make sure as Nabhan advised me, that you “show your talent for bargaining.” Friendly haggling is expected – and before you know it prices come tumbling down!

The towering minarets of the Grand MosqueOne must-see in Muscat is the Grand Mosque in the Azaiba district where the carpet in the main prayer hall covers a staggering 5,000 sqm. It was woven in sections in Iran and took 600 women four years to sew it together. But it’s the crystal chandelier that steals the show — all 8 tons and 1,122 bulbs of it.

(The Grand Mosque is open Saturday to Wednesday 0800 to 1100. Make sure you dress conservatively. Women should wear a headscarf ).

Beyond Muscat, discover Oman’s great outdoors kicks in with mountains, beaches, coastline and desert.

Camp in the desert in the Wahiba SandsThe most “accessible” desert from Muscat is Wahiba Sands, home to the Bedouin and 6,000-year-old dunes. It’s about a 90-minute drive south from the capital.

When heading into the desert make sure you hire a four-by-four and an experienced guide – little did I know mine was a former rally-driving champion!

We sped across the sands at 100km an hour (there’s a hidden dirt track for the first 10km which he failed to mention) but once the dunes came into view, our pace slowed

OMAN: AUTHENTIC ARAB EXPERIENCEBy Karen Bowerman, Presenter on fast:track, BBC World News

Church of Assumption

The Corniche, Muttrah



down somewhat, and we traced the sand’s magnificent dips and curves.

While you’re in the desert you might like to try dune bashing (when four-by-fours attack the dunes from all angles). If you’re feeling a little less adventurous opt for a camel ride!

I stayed in Desert Nights Camp, in a tented hut, ate barbecued Omani lamb and sat around the campfire, marvelling at the stars.

The dunes at sunrise - russet, honey and gold The following morning as mist hung low over the tents, a group of us woke early for sunrise. We struggled to the top of a nearby dune, ankle-deep in sand, and threw ourselves, wheezing, onto the summit.

We watched, mesmerised, for more than an hour, as the sun rose and the sands turned russet, honey and gold.

The Hajar Mountains – home to Oman’s Grand CanyonBesides its deserts, Oman’s other scenic draw are its mountains. Towards the north they’re dominated by the Hajar range, home to Jebel Shams, the tallest peak at 3,048m, and Wadi Nakr Gorge, popularly known as the country’s Grand Canyon.

Roads pass traditional villages and oases rich in date palms. Don’t miss the village of Al Hamra with its date palms and well-preserved falaj (irrigation) system that channels water from the mountains.

Searching for history and heritage?If you’d rather focus on history and heritage head to Nizwa, the sultanate’s capital in the sixth and seventh Centuries and today home to one of Oman’s 500 forts. It’s about an hour’s drive southeast of Al Hamra.

Pay a visit on a Friday morning to catch the

livestock market – a rowdy, disorganised affair with its parade of cows and goats. Buyers shout out prices from the sidelines.

Behind the market lie various souks selling vegetables, silver, spices and incense. Most are now housed in modern air-conditioned buildings, so stay outside if you’re looking for local colour.

The green lushness of DhofarThe southernmost Dhofar region provides a different experience of Oman, especially during Khareef, the monsoon season from June to early September. This is also when coastal plains turn green and waterfalls stream down from the mountains.

Famous for its frankincense trees, the region was once its trading centre for the resin, bringing wealth to Arabia right up until the sixth century AD. Nowadays it’s known for its Empty Quarter, one of the largest deserts in the world.

In Dhofar, most people visit to enjoy its pristine beaches, scenery and archaeological sites which include Sumharam, the Queen of Sheba’s palace.

You can fly from Muscat to Salalah, Dhofar’s administrative capital.

Take things easy at MusandamIf you’d prefer to take things easy head to the Musandam Peninsula, Oman’s most northerly tip. It’s separated from the rest of Oman by the UAE so to avoid complications with visas and border controls it’s easiest to fly from Muscat to Khasab or take a six-hour ferry ride.

Khasab at the foot of limestone mountainsI stayed in the fishing village of Khasab at the foot of stark, inhospitable mountains. Jagged rocks tower either side of narrow

dirt tracks leading to the summit of Jebel Harim, the region’s tallest peak at 2,097m. If you can stomach the hairpin bends, the views of the fjords are spectacular.

Look out for the surprisingly lush Sayh Plateau where members of the Shihuh tribe grow palms and look after their donkeys and goats. There are also some impressive rock paintings and fossils to look out for.

A leisurely dhow cruiseMost people’s visits to Musandam will include a dhow cruise through the fjords at the tip of the peninsula. With Iran just an hour away across the Strait of Hormuz, you are likely to spot Iranian smugglers racing across the water in their speedboats. They bring goats to Khasab, sell them at the market and return with cigarettes. Port authorities turn a blind eye to this.

My cruise included a barbecue lunch of sardines and hammour fish (grouper) which tasted meaty and a bit like red mullet. We passed small inlets and snorkelled off Telegraph Island. This was where the British laid the first telegraph cable from India to Iraq in 1864.

On the way back, our skipper, a teenage lad who occasionally nudged the throttle with his foot, gave a shrill whistle. Dolphins appeared unexpectedly, diving in and out of the water around us.

When to visitThe best time to visit is during winter, October-March, when temperatures range from 25 to 36 degrees. Citizens from most GCC, EU and US countries can buy a tourist visa costing six rials upon arrival at Muscat International airport. There are new visa requirements for GCC residents who work in what the Omani government calls “second-tier” professions, so it is best to check before travelling.

Overlooking Desert Nights Camp

www.bbcworldnews.com

Karen Bowerman is the presenter of Fast:Track on BBC World News (Starhub Cable TV Channel 701). The programme airs every Saturday at 12.30pm and 9.30pm.

Bank of the

Year

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Issued by Barclays Bank PLC, authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange, Barclays Capital is the investment banking division of Barclays Bank PLC, which undertakes US securities business in the name of its wholly-owned subsidiary Barclays Capital Inc., an SIPC and FINRA member. ©2012 Barclays Bank PLC. All rights reserved. Barclays Capital is a trademark of Barclays Bank PLC. All other trademarks, servicemarks or registered trademarks are the property, and used with the permission, of their respective owners.

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