vol. 2 2016 thistle magazine

VOLUME 2 2016

A World with the New Consumer

Innovate Jardines Launchedpage 03

Astra Daihatsu Retains the Leadpage 18

Fun in Walk Up Jardine Housepage 26

www.jardines.com

Download the app for Thistle magazine

Evolving Consumer ExpectationsThe Group examines how disruptive forces can be harnessed to create new opportunities and better serve the consumers.Page 10

Contents

Pride in Performance Winners 2016 Give it a Go Page 04

Fun for Families and Kids in Walk Up Jardine House Page 26

Stars Galore for Mandarin Oriental HotelsPage 23

SEATS Trainee Inspires Others to Follow 5

A World with the New ConsumerPage 10

From the Centre 03Innovate Jardines LaunchedPride in Performance Winners 2016 Give it a Go

Perspective 10A World with the New Consumer

Taking the Lead 16Hongkong Land Adds to Regional PortfolioJOS and Innovix Distribution Add Value

Recognizing Performance 22Sustainability Wins for GammonStars Galore for Mandarin Oriental Hotels

Showing Spirit 26Fun for Families and Kids in Walk Up Jardine HouseJardine Scholars Head for Oxbridge

Developing Talent 32Developing People for the FutureFood for Thought at Dairy Farm Forum

Enterprising Matters 36Building Sustainable Success

Thistle Volume 2 | 2016 01

Moving Ahead of the Curve

While not all the ideas will prove to be successful, we must be prepared to give

them a try.

Managing DirectorBen Keswick

In this new business world where the pace of change continues to accelerate, it is vital that we as a Group not only keep up but where possible, move from being ‘behind the curve’ to ‘ahead of the curve’. My launch of Innovate Jardines hopes to achieve just that – to keep our businesses relevant and to inspire, incentivize and promote innovation.

Innovate Jardines is being led by a leadership team tasked to drive new ideas and facilitate cross fertilization across the Group supported, where appropriate, by external experts. Our goal is to give individuals the freedom for Fresh Thinking and putting their ideas into action. While not all the ideas will prove to be successful, we must be prepared to give them a try and look at any failure as an opportunity for learning. A successful initiative is often built on trial and error.

Innovation across the Group is essential to ensure that our businesses retain their market-leading positions. This is of particular significance as the challenging trading conditions seen in the Group in 2015 have continued into 2016. This was reflected in our Interim Management Statement for the first quarter, where earnings are modestly down on last year. Our balance sheet, however, remains strong, and we remain active in the most promising markets in the world that continue to benefit from the growing middle class around the Region. We have great brands, great businesses, and most importantly, great people, so I have every confidence in our continued success.

Ben Keswick

02

MD’s Desk

Innovate Jardines, a programme designed to inspire, incentivize and promote innovation across the Group has been launched by Jardine Matheson Group Managing Director Ben Keswick.

At the live webcast launch on 12th July from a Zung Fu motor dealership showroom in Hong Kong, Mr Keswick said that the world is changing at an accelerating pace and there is a pressing need to embrace change in this technological age.

“It is critical for the long-term success of our businesses that we identify ways to tackle the challenges – and seize the opportunities – that these disruptive forces are bringing,” said Mr Keswick, who was joined in the webcast by Innovate Jardines Manager Hugo Marland and Elton Chan of Zung Fu.

Innovate Jardines will drive new ideas and facilitate cross-fertilization among Group businesses. At its heart are two important related initiatives.

Innovate Exchange, an internet-based platform to which everyone in the Group will have access, will discuss new technologies and disruptive influences and share the ideas being submitted to Innovate Challenge.

In turn, Innovate Challenge will pose a series of business challenges designed to seek out exciting new initiatives to change the way businesses work

and create value. The very best of these ideas will be provided with seed capital by an Innovation Fund, and if the prototype is successful, it will be taken forward by the respective Business Unit.

The Group’s motor dealership operations have led off the first cycle of challenges, with 20 of our top motors executives from around the Group coming together to identify the biggest threats and opportunities facing their industry today. From the discussions, the motors team selected customer loyalty and the use of data as the first challenges where ideas for business innovation are needed. Other sectors of the Group will participate in following cycles of challenges in due course.

Following the launch of the challenges at the webcast, Innovate Jardines received hundreds of ideas from Motor Dealership colleagues from across the Group.

“Innovate Jardines has got off to a tremendous start with a great response from our businesses. I am confident that we have the depth of expertise and potential for Fresh Thinking that will enable all of us to benefit from Innovate Jardines. We will use the experiences to make us stronger than our competitors, while remaining at the forefront of our sectors in the new business world,” concluded Mr Keswick.

Innovate Jardines Launched


From the Centre

Winners 2016 Give it a GoThe winners of the 2016 Pride in Performance Awards all demonstrated the important quality of ‘Giving it a Go’ in their businesses.

Congratulating the five category winners at the awards ceremony, which was held at Mandarin Oriental, Hong Kong, Jardine Matheson Group Managing Director Ben Keswick said that doing things in a new way or trying out something for the first time might be cause for some apprehension.

“Yet once we have taken that first step, there is no looking back. We just need to face the future and give it a go.”

Praising the exceptional performance across all the entries, Guest Judge Steve Monaghan, Head of Edge at pan-Asian life insurance group AIA, said that as humans it is natural to be creative and to demand change and progress, but that corporations often seem to put up barriers that make that very difficult.

“I find what is really necessary are platforms like Pride in Performance to give people voice and the capability to tap what is actually inherent within us,” he said.

By harnessing the power of digital platforms, Gammon is driving

efficiency and productivity to a new level in design, planning, quantification and construction.

04

From the Centre

Readers can access the PIP Awards website by scanning the above QR code.

Left: Jardine Matheson Group Managing Director Ben Keswick and Pride in Performance Awards’ Guest Judge Steve Monaghan announce that Gammon has won the Grand Prize.

Single-minded VisionHongkong Land’s ambitious plan to incorporate its four Central retail buildings – Landmark Atrium, Alexandra House, Chater House and Prince’s Building – under a single brand, LANDMARK, has proved a runaway success. Key to this was the skilful execution of its single-minded vision to communicate LANDMARK as the region’s most sophisticated luxury and lifestyle destination, and the multi-faceted marketing strategy orchestrated to achieve the rebranding. The marketing campaign has since won 14 awards for originality and creativity, and total rental income from the four properties increased from US$134 million in 2011 to US$195 million in 2015.

Innovative Ideas Achieve ResultsA series of innovative reforms aimed at cutting manufacturing costs and achieving a global standard of operational excellence helped Daihatsu sole agent and car manufacturer Astra Daihatsu Motors (ADM) to improve both productivity and profits. ADM’s SS4C (‘simple, slim, compact, clear, clean and care’) project covered a range of initiatives and contributed to a total of US$8 million in cost reductions during 2015, while the innovative application of new technology achieved enhanced performance. Today ADM ranks among the best of Toyota’s global group of companies and its SS4C concept has become a benchmark for the industry.

Clients First for Superior GrowthIn 2012, JLT Aerospace, which is the world’s leading airline insurance broker, set two ambitious targets. One was to achieve UK revenues of US$50 million and the other, a sustainable trading margin of over 20% over the next four years. By the end of 2015, a year earlier than targeted, and despite a hostile pricing environment, UK Aerospace revenues were estimated at US$58 million, margins at 24% and trading profits were up US$8.7 million. Key to this superior growth is JLT Aerospace’s relentless client-first culture, which is demonstrated in its bespoke solutions and capability of negotiating the best possible terms for clients.

Grand Prize for GammonThe judging panel considered that Gammon, Grand Prize and new Technology Transformation category winner, represented an outstanding entry for the way that it has explored and adopted new technologies to maintain its leadership position in the construction industry. The use of drones, robots and radio frequency identification systems have given Gammon a strong competitive edge in winning contracts exceeding US$5.14 billion and delivered cost savings as well as improved management of materials and inventory. By harnessing the power of digital platforms, Gammon is driving efficiency and productivity to a new level in design, planning, quantification and construction.

Initiatives Engage CustomersIn conjunction with the opening of its first store in Indonesia, Dairy Farm business IKEA embarked on a series of initiatives to engage with customers. Of these, the Blue Bag Project aimed to provide access to clean water and sanitation for one of North Jakarta’s poorest communities by donating all the sales revenue of IKEA’s reusable blue bag towards the installation of 100 septic tanks. In just 15 months, more than 230,000 blue bags were sold, generating US$155,000 and winning the support of government officials and local communities.


Left: Jardine Matheson Group Chairman Sir Henry Keswick with Vice Premier Wang Yang in Beijing.

Group Chairman On the Go in China and Southeast AsiaJardine Matheson Group Chairman Sir Henry Keswick had a full itinerary during his annual visits to mainland China and Southeast Asia.

In mainland China where the Group now manages over US$8 billion of investments with a business footprint that spans across 23 provinces and municipalities, Sir Henry visited eight cities, travelling as far north as Beijing and as far south as Sanya. During the tour, Sir Henry met with state-owned enterprises, leading entrepreneurs and visited Group projects such as property developments, retail outlets and dealerships.

Of note were his meetings with central level officials such as Secretary for the Central Commission for Discipline Inspection Wang Qishan; Vice Premier Wang Yang; MOFCOM Vice Minister Wang Shouwen; and Chairman of China Council for the Promotion of International Trade Jiang Zengwei. Sir Henry also met with Beijing Party Secretary Guo Jinlong, Shanghai Party Secretary Han Zheng and Chongqing Vice Mayor Chen Lvping, who himself visited Jardine House last November.

The trip gave Sir Henry a good firsthand insight into how Group businesses are faring in China and how the Group should position itself to capture further opportunities. In addition, it gave him the chance to interact with government officials and learn more about current policies, such as the 13th Five Year Plan, urbanization and state-owned enterprise reforms.

Sir Henry also had a busy time in Southeast Asia where his first stop was Indonesia. There he and his delegation toured the PT Astra Honda Motor Plant 4 in Karawang, West Java, property projects Menara

Astra and Anandamaya Residences in the heart of Jakarta’s Central Business District, and the IKEA store in Tangerang. Sir Henry also met with Minister of Trade Thomas Lembong, Co-ordinating Minister for Political, Legal and Security Affairs Luhut Panjaitan and Jakarta Governor Basuki Tjahaja Purnama.

Next on the itinerary was Singapore where Sir Henry met with business leaders and partners as well as Deputy Prime Minister & Co-ordinating Minister for Economic & Social Policies Tharman Shanmugaratnam. From there he travelled to Thailand where he toured the Siam City Cement Company Plant in Saraburi Province as well as the ICONSIAM development, site of the new Residences at Mandarin Oriental, and had meetings with business leaders and partners.

Sir Henry’s final stop in Southeast Asia was Myanmar where he visited the recently opened Pizza Hut store in Golden Valley, Yangon and met with investment partners and representatives of the Group’s businesses in the country.

Jardine Matheson Group Chairman Sir Henry Keswick gets a firsthand view of the production process at the PT Astra Honda Motor Plant 4 in Karawang, West Java.

06

From the Centre

Lord Leach’s wise counsel, always offered with grace and

humility, was invaluable.

Group ChairmanSir Henry Keswick

Lord Leach of FairfordLord Leach of Fairford has died aged 82 following a short illness.

A director of Jardine Matheson and a number of the Group’s other listed companies, Rodney Leach joined Jardines in 1983 following a career in investment banking. He brought with him an outstanding intellect and great business acumen, giving him a unique ability to go straight to the heart of a complex problem and identify a masterly solution.

Early on in his 33 years with the Group, Rodney Leach helped to re-establish Jardines’ financial strength and create a corporate structure that would stand it in good stead. He then went on to apply his talents to the many corporate actions and business initiatives that have seen the Group go from strength to strength, making a pivotal contribution to its development.

Group Chairman Sir Henry Keswick said that Rodney Leach had made a magnificent contribution to the Firm, and that he had found his wise counsel, always offered with a grace and humility that belied a steely determination, invaluable over the years. This sentiment was echoed by Managing Director Ben Keswick who added that this and Lord Leach’s clarity of thought coupled with a wry sense of humour would be greatly missed.

Outside Jardines, Rodney Leach was a highly effective campaigner in the long-running debate over British involvement in Europe. In 1998, he founded Business for Sterling to co-ordinate efforts against Britain joining the Euro and in 2005 he set up Open Europe, which became the leading independent think-tank focused on European affairs. He was created a life peer, as Lord Leach of Fairford, in 2006, having been nominated in recognition of his European campaigns.

Rodney Leach, who was still working a full day into his 80s, had been a brilliant sportsman, as well as an avid competitive bridge player. He is survived by his second wife Jessica and by five children from his first marriage.


Group Chairman Predicts Asia Brands will Drive Growth in 2025

Jardine Matheson Group Chairman Sir Henry Keswick is one of 25 prominent Asia experts to have contributed to ‘Asia 2025’, a new book that looks ahead ten years published by UK-based centre of expertise Asia House.

The book contains a collection of 25 informed opinion pieces by influential thought leaders, international government figures, academics, CEOs and Chairmen from some of the world’s leading multinationals. The unique essays cover topics that include digital Asia, the rise of the Asian multinational, the harmonization of regulations, energy security, climate change, and other important developments the Region will face over the next decade.

It is an exciting time to be a part of the

Region’s story and the idea of a bigger and

more brand-focused Asia is a positive for the

global economy.

Group Chairman Sir Henry Keswick

Sir Henry’s piece, which is on ‘Business and Trade: Changing Market Dynamics and Institutional Arrangements – growth sectors, opportunities, challenges, governance’, looks at the rise in Asia’s share of the global economy, the emergence of the Asian consumer, the rise of made-in-Asia brands, the role of Chinese conglomerates in outbound investments and how to sustain long-term success.

In it he writes that when he began his career with Jardines in the 1960s, Asia’s share of the global economy was just 20%, yet by 2025 it is expected to surpass 40%. The Region’s markets and business conditions have also changed rapidly and, writes Sir Henry, the next decade will be no different.

Sir Henry believes that it is an exciting time to be a part of the Region’s story and that the idea of a bigger and more brand-focused Asia is a positive for the global economy.

“It implies a Region that focuses on ideas as much as costs. It points to greater competition as well as choice. It is the type of development that has underpinned growth in Europe, the United States, and the world’s other established markets, and so leaves me enthusiastic about Asia’s own commercial prospects,” he concludes.

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08

From the Centre

Words of Wisdom for Young EntrepreneursJardine Matheson Group Deputy Managing Director Adam Keswick had some words of wisdom for young entrepreneurs when he attended the 16th annual China Entrepreneurs Forum at Yabuli in Heilongjiang Province, which had the theme ‘Entrepreneurs’ Confidence and Motivation’.

News in Brief

Golden Era FocusDuring his annual visit to China in his role as Chairman of the China-Britain Business Council, Jardine Matheson Group Director Lord Sassoon met with leading officials and attended the 20th anniversary China International Capital Corporation Forum, which was held at the Beijing Diaoyutai State Guesthouse.

During the Forum, Lord Sassoon met with Finance Minister Lou Jiwei and gave a keynote speech on the UK-China relationship in the new Golden Era.

He also visited Shaanxi and Hunan provinces.

Right: Lord Sassoon in discussion with, left, China’s Finance Minister Lou Jiwei during the China International Capital Corporation Forum, which was held in Beijing.

Great Hall Meeting with China’s Vice PresidentMatheson & Co Director Lord Powell met China’s Vice-President Li Yuanchao in the Great Hall of the People during a recent visit to Beijing. Discussions included the Chinese economy and other current issues. The Vice President also commented positively on the Jardine Matheson Group’s role in Hong Kong.

The internet is not the only way to start a business –

traditional industries still offer plenty of opportunities.

First on the agenda for Mr Keswick, who was accompanied by Hongkong Land Chief Executive Y K Pang and Jardine Matheson (China) Chairman David Hsu, was The Youth Forum where he was invited to discuss the motivations of six young entrepreneurs in starting their own businesses. He also joined in a panel discussion with leading private equity investors on the challenges of picking a winning idea out of many, and how to manage that opportunity.

Entrepreneurship is a ‘hot’ topic in mainland China and Mr Keswick made some unique points to the entrepreneurs present.

“Firstly, the internet is not the only way to start a business – traditional industries still offer plenty of opportunities,” he said. “Secondly, entrepreneurship does not have to mean owning your own business. Space should be given within enterprises and organizations for the younger generation to be entrepreneurial and realize their dreams. It would be a visionary act if business leaders at Yabuli could offer such a platform within their companies.”

Deputy Managing DirectorAdam Keswick


A World with the New Consumer

As consumer demands evolve, retailers are adapting to meet the increasing expectations and capitalize on opportunities that could future-proof their businesses. This means that consumers are primed to benefit with more choices, insights and power.

With growth in the retail industry expected to either come from digital or be influenced by it, two emerging trends are changing the way retailers engage with their customers. One is the so-called ‘New Consumer’ with heightened expectations of the shopping experience. The other is omni-channel and adaptive retail, a dual-business model designed to offer customers the same experience wherever and whenever they interact with a brand. Nowhere is the opportunity considered larger than in Asia where 85% of predicted growth in the global middle-class will come from the Region by 2030. Asian retailers are increasingly seeing the potential of these opportunities.

85% of predicted growth

in the global middle-class will

come from the Region by 2030.

10

Perspective

each channel and address deficiencies. An example is India’s largest online grocer, BigBasket, which is opening dozens of collection centres across the country to narrow the distance between farmer, processor-packer and customer.

Leveraging digital capabilities, physical stores are adopting new formats and functions. Some have become interactive meccas where customers engage in immersive and innovative experiences. Shoppers at the London flagship store of luxury fashion house Burberry can use multimedia to design their own trench coat right there in the store.

Other stores are linking to the retailer’s distribution network and serving as distribution and pick-up centres. In Beijing, Tmall Supermarket is piloting same-day delivery service for customers who order online before 11 am. In 2014, Walmart complemented its online channels when it opened its first warehouse offering same-day or scheduled grocery pick-up. Many leading players are re-evaluating their stores and distribution network to identify improvement opportunities.

Building Customer LoyaltyToday’s shoppers expect easy and delightful experiences that are tailored to their lifestyles. Contemporary consumers are also more difficult to predict, increasingly segmented, and are devoted to powerful brands and excellent shopping experiences. To win their loyalty, retailers must not only provide customers with great service, adequate on-hand inventory and clean stores, they must also offer a personalized shopping experience through data-driven applications.

Successful retailers are embracing data and analytics capabilities to enable personalized customer experiences and pricing based on such factors as loyalty, purchase history and demographics. They are applying predictive analytics to provide tailored service offerings and leveraging location-based services to embed themselves within customer lifestyles. The British supermarket chain Waitrose, for example, is letting its customers pick any ten items of their choice and receive a 20% customized loyalty discount on these items every time they shop either in-store or online.

As consumers today are more informed and connected, they also desire a seamless shopping experience across channels – website, mobile, in-store and partners; meaning that retailers face a fundamental shift in the customer/company relationship.

Reaching out through Omni-Channel StrategyThe emergence of digital shopping channels and e-tailers does not mean the end of brick-and-mortar retailers. While high-profile businesses such as RadioShack and Abercrombie & Fitch have reduced significantly their number of physical stores, online brands are setting up ‘shop-in-shop’ stores and large flagships to keep pace in the omni-channel world. Microsoft and Google have established a physical store presence in some markets, suggesting the need for retailers to redefine channel strategies to improve their competitiveness.

While brick-and-mortar stores provide customers with a hands-on and more intimate shopping experience, online and mobile shopping offers the constant access that stores cannot. Retailers are seeing the need to address blind spots inherent to

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Next Wave of DisruptorsOver the past decade, disruptive technologies have been driven by advances in mobile computing, social media and cloud-based services. What was once considered cutting edge, such as the ability to buy an item online and return it in-store, is now expected from any retailer wishing to remain relevant. Five categories of emerging technologies that are disrupting the retail industry today are the Internet of Things (IoT), wearables, cognitive computing and machine learning, digital fabrication and digital payments.

IoT offers significant opportunities to improve efficiencies by connecting and automating elements of existing supply chain, inventory and logistics systems. Running smart stores with connected devices and sensors enables retailers to better understand consumers’ in-store behaviour. The premium chocolate company Godiva has installed smart meters in its stores to count shoppers, aiding in improving staffing levels and measuring interest in displays. Mondelez International, a food and beverage conglomerate, is creating ‘smart shelves’ that capture basic demographic information from customers in checkout lines, where they are offered targeted promotions.

While many consumers are donning intelligent eyeglasses, watches, footwear and apparel, wearables is one category in which business-to-business enterprises are leading the way in adoption. On the retail front, wearable devices equip employees with the technology needed to work better and improve operational efficiency. One large retailer uses a wearable computer that enables in-store and cross-store communication. Among other output, data collected is used for timework studies and to better understand employee interaction patterns.

Evolving software, an influx of big data,

advances in processing power and

the development of cognitive technology is helping machines to make informed

‘decisions’.

Cognitive computing is dedicated to making computers more user friendly, and machine learning enables systems to emulate the human thought process. For the retail world, it’s all about bringing richer, more personalized experiences to customers. Some retailers are experimenting with virtual dressing rooms and interactive ‘window shopping’. Japanese fashion retailer Uniqlo has piloted ‘Magic Mirror’ technology to let customers virtually change the colours of clothes they’re trying on. At its store in Germany, the sports apparel retailer Adidas created a virtual shopping window where customers can drag products into a shopping bag, download them to their smartphones, and complete the transaction on the company’s e-commerce system. Such processes will anticipate the needs of customers over time as devices become more sophisticated at understanding

12

Perspective

requests. Evolving software, an influx of big data, advances in processing power and the development of cognitive technology is helping machines to make informed ‘decisions’.

With regard to digital fabrication, many retailers and manufacturers are exploring ways to leverage 3D printing to meet individualized demand by deferring production to the latest point possible in the supply chain. Not only can it provide personalized design, it can revolutionize the supply chain by allowing for mass customization without increasing storage and shipping costs. Staples, an American office supplies retailer, has added 3D printing to its copy services, creating everything from phone cases to musical instruments. The adoption of 3D printing is accelerating and poised for massive growth.

Digital is also making a profound transformation in the payments landscape. Consumer use of smartphones as a mobile payments device has increased significantly from 2012 to 2015 — by 24% in the United States. Digital payment solutions can improve retail operations by reducing checkout times and enabling other efficiencies. Concurrently, it opens up the direct-to-consumer channel for manufacturers and allows them to develop insights into consumer behaviour without relying on retailers.

Hongkong Land digital initiativesWhen your shopping mall has tenants representing many of the world’s finest brands in retail, dining and hospitality, there must be an ongoing commitment to driving their business growth through world-class innovation.

Despite the growth in e-commerce, Hongkong Land believes that the major luxury brands that make up the bulk of its tenants will continue to need a physical presence in key locations in support of their market positioning. At LANDMARK, its luxury mixed-use destination in Central District, Hong Kong, Hongkong Land is carrying out major digital initiatives with both retailer and consumer in mind.

A revamp of www.landmark.hk has been one of the first fruits of Hongkong Land’s digital labour, and also the most visible. The upgraded, mobile-enabled LANDMARK website was part of an ambitious brand campaign that covered outdoor, print and digital channels. Current digital projects include early development of a loyalty programme for LANDMARK’s patrons. Data pertaining to shopper spending and redemption behaviour is being collected for a state-of-the-art loyalty programme designed to establish a direct relationship with customers. Hongkong Land is also looking to digitization to enhance the event experience at LANDMARK. By collecting data on customer behaviour now, a fast and efficient online RSVP system will soon be on offer to patrons of selected prestige events.

On the horizon is an upgrade of a people counting system that reveals data such as which areas are prone to congestion and are busiest at certain times of the day. The developer is also applying this upgrade at its large-scale WF CENTRAL project in Beijing. Back in Hong Kong, shoppers and tenants of LANDMARK will soon benefit from new digital services on a relaunched mobile app. A host of other digital-related advancements are planned at these and other mixed-use Hongkong Land properties, ensuring Hongkong Land stays relevant, drives growth and boosts efficiency.


Future-Proofing Strategies

With technology disrupting value chains in many ways, accurately predicting its impact is considered impossible. The next best thing for retailers hoping to future-proof their business may be through investing in four key areas: strategy, digital operating model, partnerships and culture.

When it comes to strategy, leaders realize they must be in a position to respond quickly to new technologies. That requires closer ties between IT and business functions to ensure that technology investments are aligned to business needs. Knowing when to get out is just as important as knowing when to invest. Not every investment will have a positive impact on the business, of course, which is why more companies are adopting ‘fail fast’ approaches to technology investments.

Under the digital operating model, retailers align all major functional areas – R&D, product development, manufacturing and supply chain – to a common approach in order to deliver strategically required digital capabilities. The supply chain requires more agility to thrive in the digital world with shorter lead times and uncertainty of demand. Li & Fung, a Hong Kong-based consumer goods design, logistics and

Dairy Farm Seizes OpportunitiesAs disruptive forces impact the retail industry, Dairy Farm is embracing challenges and opportunities and adopting a culture of innovation, which includes digital fabrication and digital payment.

Partnering with major technology innovators, Dairy Farm is on a transformational journey to move all of its key buying and supply chain functions onto a common operating model and system. The objective is to understand and serve customers better while operating the company’s retail business more efficiently. As digital transformation and innovation are becoming more integral to Dairy Farm’s core business, the group plans to focus on providing customers with the best in-store experience.

Dairy Farm is also progressing ways of introducing e-commerce initiatives into its operations. Guardian is trialling e-commerce solutions in the Health and Beauty sector in Singapore, while IKEA has launched an e-commerce option in Hong Kong, soon to be followed by Indonesia and Taiwan. Existing e-commerce offerings for Dairy Farm’s supermarket operations are being revamped and a range of e-commerce solutions are being evaluated, such as click and collect. In mainland China, Dairy Farm’s affiliate, Yonghui, has tied-up with internet platform JD.com to complement its store-based activities.

Dairy Farm is active in the area of digital payment. For example, 7-Eleven’s mobile app has allowed the company to enhance its customer offerings and personalized marketing. The recent launch of Apple Pay in Hong Kong also means that customers can use their iPhones to shop seamlessly at any of Dairy Farm’s stores in the territory.

Dairy Farm’s private label team is leveraging 3D printing technologies to streamline the packaging selection and development process. When developing new private label health and beauty products, 3D printing is being used to create different shapes and sizes of containers and bottles to quickly determine the most attractive and appealing products to consumers. This alleviates the wait for manufacturers to go through the plastic moulding process.

A virtual pop-up store operated by Guardian at City Hall MRT station in Singapore.

14

Perspective

distribution company, has in recent years run a series of 3D printing initiatives. In 2013, it carried out Asia’s first in-store 3D printing retail experience at a Toys‘R’Us outlet in Hong Kong, which could save on logistical and storage costs.

Through acquisitions or partnerships with non-traditional players, retailers can disrupt their traditional value chains. Relationships with consumers are proving invaluable with addressing disruption opportunities.

The foundation for a culture of innovation is laid when it is emphasized as a core element of corporate strategy. Providing access to collaboration tools, new technologies and research, as well as incentivizing employees to take a fresh look at their own operations and creative approaches to problem solving, further encourages new approaches that extend well beyond current business practices.

Standalone strategy and operating models are obsolete in modern-day retail because retailers cannot successfully run channels separately. There is general agreement that retailers need to be adaptive and agile in order to capitalize on the disruptions and view them as opportunities to lead in the marketplace.

The foundation for a culture of innovation is laid when it is emphasized as

a core element of corporate strategy.


An artist’s rendering of Parkville, the Hongkong Land

joint venture in Shanghai.

Hongkong Land continues to grow its regional portfolio with new projects underway in Cambodia and Shanghai.

In Cambodia, EXCHANGE SQUARE, Hongkong Land’s debut mixed use development in Phnom Penh, has been topped out and leading ASEAN bank CIMB Bank PLC has confirmed it will become an anchor tenant and open its new head office in the Grade A office and retail building.

EXCHANGE SQUARE, which will offer 39,700 sq. m. of space in the initial phase, is located in the centre of Phnom Penh’s emerging financial district and continues Hongkong Land’s long-established strategy of growing the group’s commercial portfolio in business hubs across Asia.

“We are confident that EXCHANGE SQUARE will be a catalyst for increasing business and retail activities in the area,” said Hongkong Land Executive Director Robert Garman.

Hongkong Land’s entry into the Shanghai market in 2015 means that it now has 12 residential projects in five mainland China cities.

Parkville in the Yangjing area of Pudong is a joint venture with Hong Kong-listed CIFI Group and comprises residential, retail and office components with a total developable area of approximately 351,000 sq. m., which will be completed in phases. Construction of phase one, a residential development of high-rise apartments and townhouses named ‘Park Mansion’, is due for completion during the first quarter of 2017. Nearly all of the high-rise apartments and around half of the townhouses were sold within two months of their launch.

“We have a strong portfolio and the addition of this project puts us in a solid position to capture the demand emerging from China’s economic restructuring,” said Hongkong Land Head of Residential projects in China Ling Changfeng.

Hongkong Land Adds to Regional Portfolio

16

Taking the Lead

At JTH Group, JOS and Innovix Distribution in Hong Kong have been demonstrating how they can add value in their partnerships with clients.

At media event ‘#Big Data Rocks Hong Kong’, JOS announced its partnership with Tableau, a global leader in rapid-fire business analytics software, and demonstrated how the easy-to-use technology can enable businesses and governments to make better decisions. JOS has already established a cross-industry client base using the technology.

Meanwhile, Innovix Distribution has been applying its 60 plus years of expertise to help Pure Storage expand into Hong Kong and Macau. Pure Storage was founded in 2009 with a disruptive technology that uses FlashArray to significantly improve

performance and efficiency over traditional IT storage devices. With over 80 brands and product lines across Asia, Innovix Distribution is also generating cross-selling opportunities with Pure Storage.

At the same time, JOS in China has been pushing the concept of ‘smart retail’ with its partners and has piloted a number of solutions for the industry. These have included a forum on ‘Technological Innovations Leading the Future of Retail’ in Shanghai where JOS briefed more than 50 participants on their latest solutions. Among these were the use of mobile payments, cloud computing and big data technology to enhance brand image, improve business processes, and optimize the offline shopping experience.

A graphic from JOS’ new partner Tableau

demonstrates how its easy-to-use, rapid-fire visual

analytics can benefit businesses, using the Hong Kong housing market and

consumer index data as examples.

JOS and Innovix Distribution Add Value

Beware of the Dark Side!

“We need to keep reminding ourselves to be vigilant – if something doesn’t look right, it probably isn’t,” warns Mr Keswick.

All business units are encouraged to remain vigilant and to raise awareness of digital fraud attacks. This is stressed by Group Audit and Risk Management, which oversees the Group’s cyber security. In a risk alert on Fake President Fraud, it gives prevention tips which include encouraging employees to report suspected cases, always following standard working protocols, verifying the legitimacy of a request, questioning urgent or confidential requests, and looking out for unusual grammar or email addresses.

Jardine Matheson Group Managing Director Ben Keswick has warned of the need for the Group to be vigilant against digital fraud attacks, or what he describes as ‘the dark side’ of technology.

Mr Keswick says that like all companies, the Group faces constant digital attacks, which have become increasingly sophisticated and relentless. In particular he refers to recent phishing attacks known as ‘Fake President Frauds’ where criminals impersonate senior executives and request transfers to alien bank accounts, or incidents where hard drives become encrypted and a ransom is then demanded in exchange for the system being decrypted.


Right: Cold Storage Singapore Chief Executive Officer Victor Chia briefs, second right, Singapore’s Deputy Prime Minister Tharman Shanmugaratnam on the Sime Darby store’s productivity initiatives.

‘Scan-Pay-Go!’ at Cold Storage SingaporeCold Storage in Singapore has introduced its first integrated self-checkout counters, enabling both cash and card payments and paving the way for improved efficiency and higher productivity.

The new counters were launched at the Sime Darby store where several other initiatives have also been implemented leading to significant manpower savings and a productivity improvement of more than 60%. These include an integrated storefront and back-end cash management system to simplify the cash handling process and electronic shelf labelling. Meanwhile, 27 out of 60 Cold Storage stores are now equipped with regular self-checkout counters. These have reduced the number of cashiers needed per mid-sized store by some 44%, while also cutting customers’ waiting time by 40%.

“This is all good news for Cold Storage customers and reaffirms our push for consumer-centric and innovation-led initiatives at Dairy Farm Singapore,” said Cold Storage Singapore Chief Executive Officer Victor Chia.

Astra Daihatsu Retains the LeadIn what is a highly competitive marketplace, PT Astra Daihatsu Motor (ADM) has retained its place in the top two positions in automotive sales in Indonesia, a ranking it has held for the last seven years.

In 2015, ADM sold 167,808 units in the wholesale and 166,567 units in the retail sales markets, giving it a market share of 16.6% and 16.2% respectively. This success was led by sales of the Gran Max, Great New Xenia and Ayla models.

“This achievement ignites our spirit to keep on delivering the best services,” said ADM Marketing Director Amelia Tjandra.

ADM, which is a partnership between Astra, Daihatsu Motor Company Ltd and Toyota Tsusho Corporation, is the sole agent for Daihatsu cars in Indonesia supported by an extensive distribution network handling sales and after-sales service under the management of Daihatsu Sales Operation (DSO). ADM is currently the largest producer of four-wheel vehicles in Indonesia with models including the Xenia, Terios, Gran Max, Luxio and Ayla. In addition to these models, DSO also markets the Daihatsu Sirion, which is imported by ADM from Malaysia.

In 2015, in line with industry trends, Daihatsu launched product line improvements to the Sirion, Terios and Xenia models.

This achievement ignites our spirit to keep on delivering the

best services.

ADM Marketing DirectorAmelia Tjandra

18

Taking the Lead

140 Years of History at Mandarin Oriental, BangkokMandarin Oriental, Bangkok is celebrating 140 years of history with a series of bespoke literary, music, fashion, art and culinary events throughout 2016. The first of these was a gala event presided over by Her Royal Highness Princess Sirivannavari Nariratana of Thailand and attended by 500 guests, who enjoyed a gala dinner on the Riverside Terrace, a moving tribute to the hotel’s history and spectacular fireworks over the Chao Phraya River.

The gala also marked a far-reaching restoration of the historic 140-year-old Authors’ Wing and Garden Wing of Mandarin Oriental, Bangkok designed to significantly enhance the facilities and services of the award-winning hotel, and to restore the celebrated heart of the property to its original splendour. It includes the Royal Suite, Bangkok’s grandest presidential suite with six bedrooms encompassing 600 sq. m. and 12 brand new suites with balconies in the Garden Wing. The highly acclaimed La Normandie French fine dining restaurant has been rejuvenated, while the renowned Authors’ Lounge has been further extended.

During the gala, Ankana Kalantananda, the hotel’s longest serving employee who joined the property in 1947, received recognition and warm applause.

JLT Flies HighJardine Lloyd Thompson (JLT) Specialty’s Aerospace team is flying high with its appointment as the sole aviation reinsurance broker for China-based HNA Group.

HNA Group is one of the largest airline groups in the world, carrying nearly 80 million passengers each year and with a fleet valued in excess of US$23 billion.

The appointment consolidates JLT’s place as the number one aerospace insurance broker in the world by number of airline operators represented and further cements the group’s market-leading position within the Asia Pacific region.

“This is a very significant client win for JLT,” explained JLT Aerospace UK Chief Executive Officer Bill Smith. “HNA Group’s decision to appoint JLT is a huge vote of confidence in our ability to not only deliver cost savings, but to provide market-leading client service. We are honoured to have been entrusted with the responsibility for arranging and servicing HNA’s reinsurance programme.”


Giant Malaysia Expands Distribution CentreGiant Malaysia, the country’s largest national retailer, is expanding its state-of-the-art Distribution Centre in Sepang Selangor, adding an extra 1.44 hectares of space and streamlining its distribution process across 145 stores. The extension will also create jobs with 107 new employees expected to join the 300-strong skilled workforce during 2016.

The development will assist small-to-medium enterprises (SMEs) in reaching out to a bigger consumer base with retail sales from these providers expected to grow from 15% to 20% by year end. Malaysian-made products are delivered to the centre for dispersal to Cambodia and Singapore, giving SMEs easier access to these markets at lower costs.

During 2016, Giant plans to grow its 600 own brand products to 1,000 while its efficient chain system continues to give consumers better product pricing, longer expiry periods, and fresher offerings.

“The entire facility will take care of Giant Malaysia’s growth capacity for the next 12 years, reflecting our long-term investment in Malaysia,” said Giant Malaysia & Brunei Regional Director Tim Ashdown.

Astra Honda Motor Revs Up Big Bike Line

PT Astra Honda Motor (AHM) has launched a brand new line up of its CBR500R big bikes in Indonesia, as well as a revamp of the CB500F, CB500X ABS and CB650F ABS models. The new designs retain their compactness, but have additional aesthetic features.

The CB500 series has proved very popular since AHM entered the big bike market in Indonesia. Earlier this year, AHM introduced the new CB500 series with a huge evolution in its exterior and main features, along with a new colour for the CB650F.

The CBR500R model has adopted the previous CBR1000RR’s basic set-up, but with a body that has aggressive and sporty characteristics. It is available in two colours, namely Gunpowder Black and Millennium Red.

20

Taking the Lead

JEC Helps Clean Water Jardine Engineering Corporation’s (JEC) expertise in waste water projects is reflected in the award of a new contract and the completion of two – one in Hong Kong and the other in the Philippines.

In the new contract, JEC will provide Electrical and Mechanical facilities for a further expansion of Shek Wu Hui Sewage Treatment Works adopting ‘Membrane Bioreactor’ technology.

The full commissioning of Harbour Area Treatment Scheme Stage 2A marked the end of the largest environmental infrastructure project in Hong Kong’s history, serving more than five million residents. JEC’s involvement included the upgrading of eight preliminary treatment works and also facilitated the re-opening of closed local beaches.

In the Philippines, Libingan ng mga Bayani Sewage Treatment Plant, which is located beneath a public park, is the first large underground sewage treatment plant in the country. It treats 75 million litres of waste water daily, benefiting the residents of Metro Manila.

Zung Fu Drives Ahead with Foton and HyundaiYan Tin Motors Limited, a wholly owned subsidiary of Zung Fu and the exclusive dealer of Foton Light Goods Vehicles in Hong Kong, has opened its first 4S store there. The store, which is located in Yuen Long, comprises a showroom and after-sales service, parts and survey areas.

Meanwhile, Zung Fu has unveiled the all-new Hyundai Elantra with the theme, ‘The City is Our Playground!’ at an event held in Ocean Terminal. Hyundai has sold over four million units of the previous generation of Elantras worldwide.

Hyundai Hong Kong also chose the occasion to announce its partnership with online car rental platform Carshare, which has a membership profile of 20,000 car enthusiasts and over 2,000 cars available for short-term leasing.

“Carshare offers a great platform to introduce Hyundai’s new models at attractive rates whilst maximizing Hyundai’s exposure,” said Hyundai Hong Kong General Manager Derek Lee.


Sustainability Wins for Gammon

Gammon’s commitment to sustainability has been recognized in the form of two significant awards.

In the face of fierce competition, Gammon carried off the ‘Sustainability Achievement of the Year Award’ at the Royal Institution of Chartered Surveyors (RICS) Hong Kong Awards 2016 for its HK$6 billion (US$773 million) Midfield Concourse Works project at Hong Kong International Airport. This involved the construction of a five-level midfield concourse, including 20 aircraft stands, taxiways, and tunnel and road extensions.

The RICS Awards showcase the most inspirational initiatives and developments in construction, land, property and the environment with the jury of nine industry leaders seeking teamwork, professionalism, innovation, excellence, and overall contribution to the built environment. Projects entered had to be completed in 2015 and highlight the sustainability goals achieved and the challenges overcome.

Gammon’s Midfield Concourse Works project integrated sustainability into engineering decision-making, and developed project-specific innovative

solutions. Among these were the use of Building Information Modelling, mechanized construction and an on-site concrete batching plant.

Meanwhile at the 2015 Asia Sustainability Reporting Awards organized by CSR Works, Gammon won the ‘Asia’s Best Supply Chain Reporting’ award and was also a finalist for Carbon Disclosure Reporting.

Gammon has pioneered sustainability in Hong Kong and was the first construction company to publish a sustainability report, which it did in 2003. Gammon engages suppliers and focuses on integrating their production processes, increasing capabilities, improving efficiency and reducing waste in order to create value for customers and the community. It is also the first and currently only construction company in Hong Kong to widely use B5 biodiesel in construction equipment; has introduced more durable and recyclable high-density polyethylene barriers; and uses over 95% FSC/PEFC certified sustainable timber and plywood for formwork.

Recognizing Performance

Gammon has won the ‘Sustainability Achievement of the Year Award’ for its Midfield

Concourse Works project.

22

Stars Galore for Mandarin Oriental HotelsThere were stars galore for Mandarin Oriental Hotel Group (MOHG) in the annual round up of prestigious awards.

At the 58th annual ‘Oscars’ of the hotel industry, the Forbes Travel Guide Five & Four Star Awards, a record 18 MOHG hotels received awards, with three new additions to the Five Star category – the group’s newest hotel, Mandarin Oriental, Milan, and Mandarin Oriental, Paris and Mandarin Oriental, Guangzhou. MOHG’s flagship property, Mandarin Oriental, Hong Kong, once again achieved a record of ‘five’ Five Star ratings across all three categories for the hotel, spa and three of its restaurants, the only hotel in the world to receive this accolade.

In the annual ‘World’s Best Hotels’ rankings in Institutional Investor magazine, Mandarin Oriental, Tokyo took the coveted number one spot as ‘Best Hotel in the World’ as well as the ‘Best Hotel in Asia’ with a perfect score of 100. A further 13 Mandarin Oriental properties ranked in the Top 100 list.

In the Michelin Guides 2016 published to date, ten MOHG restaurants have been rated, bringing the current total number of Michelin-starred restaurants in the group’s portfolio to 11 with a total of 16 Michelin stars. This is more than any other hotel group in the world.

Auto2000 Medan Amplas Brings Home Kaizen HonourPT Toyota-Astra Motor (TAM) founder dealer, Auto2000 Medan Amplas, took home the ‘Excellence Kaizen’ and ‘Best Innovation’ awards in the ‘Dealer Operation’ and ‘Express Maintenance’ categories respectively at the 2015 Asia Pacific CS Kaizen Evolution (CSKE) Cup, which aims to encourage ‘Kaizen’, the practice of continuous improvement, and was held in Thailand.

Organized by Toyota Motor Asia Pacific (TMAP), the Asia Pacific CSKE is a Kaizen sharing activity among Toyota distributors in nine countries – Indonesia, Thailand, Singapore, Taiwan, Pakistan, India, Philippines, Vietnam and Malaysia.

One of Auto2000 Medan Amplas’ winning factors was its successful development of EM-e (Express Maintenance Ergonomic), which requires a small kiosk and two mechanics along with service standard tools rack, inspector desk and tools cabinet, all designed for practical comfort.

TMAP Customer First Group Senior Vice President Salkar Mahesh Narasinva said he hoped the breakthrough idea could soon be made available to distributors in the entire Asia Pacific region.

For the first time, Mandarin Oriental, Guangzhou has received Forbes Travel Guide Five & Four Star Awards.

An Auto2000 workshop mechanic services a vehicle.


Dairy Farm Singapore (DFSG) excelled at the 2015 Excellent Service Award, a national award managed by the Singapore Retailers Association and supported by SPRING Singapore, a Government agency responsible for helping Singapore enterprises grow.

DFSG staff at Cold Storage, Giant, Guardian and 7-Eleven carried off a total of 156 outstanding awards, representing a significant increase from the year before. Of these, there were two Star awards, 12 Gold and 142 Silver.

“While the awards single out individuals, their personal efforts are a positive reflection on, and an uplifting and inspiring example for, their entire teams,” said DFSG Human Resources Director Jocelyn Chan. “We take this opportunity to congratulate the respective business brands on their high count of awards.”

Dairy Farm Singapore Excels

Participation in key events such as the Singapore Motorshow contributed to

Cycle & Carriage’s success in 2015.

Highest Levels of Competence from Cycle & CarriageCycle & Carriage (C&C) Singapore’s high standards have been recognized at the annual Citroën Brand Day in Paris where, for the first time, the company carried off the ‘Best Importer – President Award’ in the Southeast Asia category. Citroën distributors from around the world share best practices and learn about new initiatives at the event.

One of the key winning criteria for the award is sales volume and this was aptly demonstrated in the 152% increase in sales of Citroën passenger cars achieved by C&C last year. Branding and marketing activities, which included participation in the Singapore Motorshow and other events, all contributed to creating sales opportunities.

Meanwhile, C&C Bintang’s Batu Caves service centre, which is also one of the largest after-sales outlets for Mercedes-Benz vehicles in Malaysia, has been named by Daimler AG, Germany as one of the highest-ranking ‘Centre of Competence’ for collision repairs in the world. This followed a scheduled re-audit in which the service centre scored 98.9%.

24

Recognizing Performance

Zung Fu China Carries Off Top TitlesZung Fu China carried off the top titles at the 2015 Mercedes-Benz Sales Master Champion National Competition.

Outperforming over 6,000 competitors from more than 400 Mercedes-Benz dealerships in mainland China, eight staff from Zung Fu China reached the National Final, where Sales Consultant Peixia Chen and In-house Trainer Chunsheng Guo took the top titles of ‘Sales Master Champion’ and ‘Master Trainer Champion’ respectively.

The Sales Master Champion National Competition represents the very best standards of Mercedes-Benz customer service, putting contestants’ knowledge, skills and ability to deliver brand value to the test.

“Zung Fu China’s achievements in this competition are true recognition of its high standards of customer service,” said Zung Fu Chief Executive Benjamin Birks.

Three Jardine Matheson Group companies have received top awards at the 2015 Hong Kong Awards for Environmental Excellence. The annual awards, which are presented by the Environmental Campaign Committee, recognize organizations’ efforts in promoting environmental practices and management.

For the sixth time, Gammon won a Gold Award in the Construction category, this time for its ‘green’ initiatives on the Tuen Mun-Chek Lap Kok Link in Hong Kong, its largest ever solo contract. Innovations such as reusable pre-fabricated steel works, passive acoustic monitoring systems and responsible procurement significantly reduced environmental impact, whilst saving time and costs.

Another Gold Award was scooped up by Hong Kong Air Cargo Terminals Limited (Hactl) in the Transport and Logistics category for its integration of environmental excellence into the workplace. This includes the use of electric vehicles, B5 biodiesel and paperless systems for efficient operations.

For the first time and in the same category, integrated logistics services business Tradeport Hong Kong received a Bronze Award for its

implementation of green measures. These include an

LED lights replacement programme and the use of

electric forklift trucks. For the last three years prior to winning the

Bronze Award, Tradeport Hong Kong had won

Certificates of Merit at the same event.

Group Companies Scoop Green Awards

Hactl uses electric vehicles, B5 biodiesel and

paperless systems for efficient operations.


On Mental Health from the Jardine Ambassadors

There was fun for all at the annual Walk Up Jardine House, which raised an impressive HK$3.3 million (US$425,000) for MINDSET.

Over 500 Jardine Matheson Group executives and employees, business associates, families and friends joined forces to make the event a success. This included 70 service users from Caritas, Castle Peak Hospital, MINDSET Place and New Life Psychiatric Rehabilitation Association, as well as more than 50 students from MINDSET’s Health in Mind programme.

A new Fancy Hat Competition attracted an enthusiastic response from people of all ages while a group of children who acted as ‘Young Ambassadors’ from the non-governmental organizations (NGOs) presented ‘Fancy Hats’ to the officiating guests. In addition to competitive races, there was also a range of fun and interactive activities for families and children from music therapy to story-telling workshops designed to enhance emotional wellbeing. The awards for the most funds raised were won by Dairy Farm and The Continuity Company Ltd.

Fun for Families and Kids in Walk Up Jardine House

The event attracted many positive and encouraging comments from both participants and the NGOs. Among them were the following:

“When the horn blew, my son raced up the 947 stairs to the top in one go, which gave him great satisfaction. I hope we can participate again next year to re-live that wonderful feeling.”

A mother recovering from mental illness

“I was thrilled to participate in the ceremony to place the specially designed fancy hats on the heads of the guests of honour. I also felt very proud of myself for being able to run all the way up to the 49th floor with my mother lagging behind me!”

Man Man, a Young Ambassador

26

Showing Spirit

Activities Empower Health in Mind StudentsStudents participating in the 2015-16 Health in Mind (HIM) programme have been empowered as mental health advocates through a series of activities.

First-year students attended two workshops designed to help them acquire facts on mental illness, while 130 second-year students joined with Jardine Ambassadors and service users in a Sports Day to cultivate both their team and ‘can do’ spirit.

A highlight for second-year students was the Joint School Talent Show when they shared their knowledge through drama and lyrics. Performances reflected the students’ hard work and creativity and what they had learnt about mental health during the HIM programme.

Speaking about the benefits of the Talent Show, Kwai Chung Hospital Senior Clinical Psychologist Dr Cherly So said that it provided a great opportunity for HIM student advocates to use different types of performance to express what they had learnt about mental disorders, associated stigma and social inclusion.

From their songs, dance and drama, the student advocates could also implicitly impart accurate information on issues such as depression, anxiety disorders and psychosis. They also gained a deeper understanding of how people with mental disorders can suffer when they experience isolation and lack of social support. Most performances in the Talent Show ended with a message of positive change in attitudes and beliefs as well as acceptance of people with mental disorders.

“The warmth and care shown to us by the Jardine Ambassadors makes me feel that I am not alone, but supported by many people in the community. This event provided an excellent opportunity for the general public to learn more about people in recovery from mental illness.”

Ms Leung, a MINDSET Art Expression ‘Photo story’ course student

“I regard Walk Up Jardine House as a very successful event. It not only promotes social inclusion, but is also a great platform to encourage acceptance of people in recovery.”

Fanny Ip, Psychiatric Nurse, Castle Peak Hospital Community Psychiatric Service

“Mental illness is nothing to be ashamed of but bias and stigma shame us all. Social acceptance of the mentally ill is very important in supporting those on the road to recovery. Through their active participation in this event, Jardine Matheson Group staff and the general public demonstrate their enthusiasm for promoting mental health and creating a harmonious society.”

Donald Lo, Case Manager, Castle Peak Hospital Community Psychiatric Service

“I never thought that I could join a public event like Walk Up Jardine House as a photographer. It enhanced my self-confidence and removed the labelling of myself as a ‘patient’. I now feel I am a member of the community!”

Ah Man, a MINDSET Art Expression ‘Photo Story’ course student


Singapore Sets Up Flagship Learning Hub

We are excited to now be working with SAMH to

provide a facility that will advance the support for

those in recovery.

JLT Raises Awareness of

As part of Jardine Lloyd Thompson’s (JLT) efforts to increase awareness of its commitment towards MINDSET, the group presented a cheque to MINDSET Singapore at the JLT Asia Conference, which was held in Singapore.

The cheque was handed over by JLT Asia Deputy Chief Executive Officer Warren Downey to Colyn Chua of MINDSET who expressed her appreciation of JLT’s generous support of MINDSET’s various community programmes.

Additionally, MINDSET showcased some of the handicrafts and art pieces completed by beneficiaries to JLT delegates and insurers who were attending the conference.

“JLT’s donation reinforces our unwavering commitment to giving back to the communities that we operate in,” said Mr Downey.

To mark its fifth year, MINDSET Singapore has established a specialized training centre, ‘MINDSET Learning Hub’. The flagship project, which will be operated by the Singapore Association for Mental Health (SAMH), will provide Workforce Skills Qualifications programmes, a national credentials system, for persons-in-recovery from mental illness. This aims to equip individuals with the necessary skill sets to secure employment.

MINDSET will disburse S$2 million (US$1.49 million) to the project over five years with the first S$400,000 (US$298,000) eligible for dollar-for-dollar matching by the Singapore Government as part of the nation’s 50th year celebrations.

“We are excited to be working with SAMH to provide a facility that will advance the support for those in recovery,” said MINDSET Singapore Chairman Alex Newbigging.

MINDSET Learning Hub will comprise four classrooms and four job-simulated training environments. Programmes will commence in July with the first batch of trainees expected to graduate in October 2016. Employability skills including interview techniques will be taught by Jardine Ambassadors.

Art pieces produced by MINDSET Singapore

beneficiaries were showcased at the JLT Asia

Conference.

MINDSET Singapore Chairman

Alex Newbigging

communication

Programmes at MINDSET Learning

Hub include training in:

résumé writing

interview techniques

28

Showing Spirit

College to Facilitate Recovery Through EducationMINDSET is to fund the establishment and running of a ‘College’ which will provide supported education for people in recovery from mental illness to help them develop their potential.

Over the next three years, MINDSET will donate HK$7 million (US$900,000) for the MINDSET College, which will be run by four mental health services agencies in Hong Kong – New Life Psychiatric Rehabilitation Association, The Mental Health Association of Hong Kong, Baptist Oi Kwan Social Service and Caritas Hong Kong. As well as offering learning opportunities, it will also train up a group of course facilitators and mentors, and partnership with mainstream training institutions to offer tailor-made courses aimed at helping its ‘students’ to integrate into the formal education system.

“MINDSET College will target those people who have experienced mental illness or distress, their carers and the community at large and will aim to convey messages of hope, empowerment and opportunity to all.” explained Caritas Wellness Link (Tsuen Wan) Senior Social Work Supervisor Stephen Wong.

How to Polish Those Interview Skills

Service users from Baptist Oi Kwan Social Service, Caritas and New Life Psychiatric Rehabilitation Association have benefited from workshops run by Jardine Ambassadors on how to increase their employability.

Topics covered included interview skills, an interview practice session and tips on business etiquette.

“Our service users found the workshop they attended most useful as some of them have not worked for years,” said Caritas Occupational Therapist Harrison Kong. “It enhanced their confidence and interview performance, as well as skills in mixing with other people.”

Action-Packed Rat Race ExtravaganzaHongkong Land’s 11th CENTRAL Rat Race, which is to take place on Sunday, 16th October 2016, promises to be an action-packed extravaganza with a host of creative activities for families and the wider community.

The annual event showcases Central Business District’s excellence as a world-class business hub with participants competing in a relay-style race where they dash through the streets clad in fancy costumes and carrying a briefcase as a baton. All the proceeds go to MINDSET.

The 2016 CENTRAL Rat Race, which will focus on a typical day at the office, will also include a number of family-friendly features. In addition, a series of creative workshops is being held before the event where participants can use cutting-edge 3D technology to colour and style their own Mr Rat and learn traditional Chinese handicrafts by making their own Junior Rat paper lanterns.

“MINDSET has been fortunate to be the beneficiary of the CENTRAL Rat Race since its launch and we are delighted at the prospect of more and more people coming together to support such a worthy cause,” said Jardine Matheson Group Managing Director and MINDSET Chairman Ben Keswick.

Hongkong Land Chief Executive Y K Pang attempts to shoot an arrow at a target held by Mr Rat in a demonstration of the challenging new obstacle ‘Watch Your Back’ on Leg 4 of the 2016 CENTRAL Rat Race.

News in Brief


Jardine Scholars Head for OxbridgeA total of 23 Jardine Foundation Scholars – ten postgraduates and 13 undergraduates – will go up to Oxbridge for the next academic year.

Of the postgraduate scholars, two, both from Indonesia, will go to Oxford. Samuel Putra will study for a DPhil in Engineering Science at Trinity College and Muhammad Wickaksono will take a Magister Juris at The Queen’s College.

Of the scholars going up to Cambridge colleges, three will go to Downing. Indonesians Farhan Kholid and Sunita will study for a PhD in Physics and MPhil in Medical Science respectively and Xiang Jingting of China for a PhD in Linguistics. At Trinity, Eric Rong of China will study for an MPhil in Finance and Economics and Sai Leik, the first-ever scholar from Myanmar, will study for a PhD in Physics. Zhang Jinjin of China will take an MPhil in Asian and Middle East Studies and Olga Laurentya of Indonesia a PhD in Paediatrics at Peterhouse, and Keith Tsui of Hong Kong will study for an MPhil in Bioscience Enterprise at Magdalene.

The postgraduate scholars were selected by a panel consisting of members of the Jardine Foundation Scholarship Committee chaired by Sir Ivor Roberts, President of Trinity College, Oxford and including Professor Geoffrey Grimmett, Master of Downing College, Cambridge.

Astra/Japanese Partnership to Benefit SMEsA collaborative commitment between Yayasan Dharma Bhakti Astra (YDBA) and Fukuoka Prefectural Government is expected to benefit the development of micro, small and middle-sized enterprises (SMEs) in Indonesia, particularly in the automotive component industry.

Earlier this year, a delegation led by the Fukuoka Governor and accompanied by the Japanese Ambassador to Indonesia visited Indonesia’s Minister of Industry Saleh Husin to discuss co-operation between Fukuoka and Indonesian companies. Ties will be further strengthened later in the year when 15 SMEs visit Fukuoka under the auspices of YDBA.

YDBA assists SMEs through coaching, training, mentoring and the facilitation of market access and financing, with the aim of making them more independent. It has also established Business Development Institutes across Indonesia.

SMEs from YDBA and Fukuoka Prefecture get together in a business matching session.

Right: Sir Ivor Roberts, President of Trinity College,

Oxford and Chairman of the Jardine Foundation Scholarship Committee,

chats to three of the candidates at the 2016

Postgraduate Scholarship interviews, which were

held in London.

30

Showing Spirit

Astra Aid Extends Far and WideAstra has been making an impact on communities across Indonesia with a number of aid projects.

Through Yayasan Pendidikan Astra-Michael D Ruslim (YPA-MDR), Astra has recently renovated and furnished two junior high school buildings in the underdeveloped areas of Tanjungsari and Merbau Mataram in South Lampung, Southern Sumatra. Since its establishment ten years ago, YPA-MDR has supported and facilitated 50 schools, 600 teachers and more than 11,000 students across Indonesia, with plans to also extend its reach to East Timor.

#generAKSISEHATIndonesia, an eyewear donation programme initiated by Astra, has made its final stop in Merauke, Papua, one of the easternmost cities of Indonesia, where 1,500 glasses were distributed to children with visual impairment from 36 local elementary schools. Since 2014, Astra has donated over 9,000 spectacles to kids in need of vision aid.

Meanwhile, Astra has unveiled the latest of five planned Kid-Friendly Public Open Spaces or, in Bahasa, Ruang Publik Terbuka Ramah Anak (RPTRA). The most recent RPTRAs in Kebon Pala and Cengkareng Timur are each equipped with a playground, sports centre, educational park, indoor rooms and a library.

In another project, Astra has been grooming inspiring teachers for the next generation of leaders through two ‘Being a Great Teacher’ workshops, which were held at Pekanbaru, Riau and Kotawaringin Barat, Central Kalimantan. Participating teachers were given tips on how to teach students speed reading, produce reading materials and refresh existing materials on teaching methods, class management and portfolios.

Right: Indonesia’s Minister of Health Nila F Moeloek accompanied by Astra executives and two of the medical practitioners involved, along with some of the children who have received new spectacles.

Dairy Farm Vietnam Rides to Victory

Dairy Farm business Guardian Vietnam rode to victory in the 2016 Saigon Cyclo Challenge regaining the ‘Grand Champion’ title for Dairy Farm Vietnam, which it last won in 2014.

The 2016 Cyclo Challenge attracted 12 teams including from two other Jardine Matheson Group business units, Pizza Hut and Schindler. The annual event is held by Saigon Children Charity (SCC), which helps disadvantaged children in Vietnam to escape poverty and access education. Since its inception in 2001, Saigon Cyclo Challenge has brought sport, entertainment and fun to thousands of people each year while raising funds for the children supported by SCC.

‘We are delighted that Guardian has won back the ‘Grand Champion’ title for Dairy Farm,” said Jardine Matheson (Vietnam) Country Chairman Alain Cany. “It reflects our strong participation in charity activities, which contribute to the community in Vietnam.”


Jardine Matheson Group Head of Human Resources John Nolan together with

graduate trainees Katrina Li, Thomas Holden, Lavender Zhu and Rio Saputra.

Developing People for the Future

I’m often asked ‘what is the one thing you worry about the most?’ My answer is that the demand for talented people is far greater than the supply. This is despite the fact that in the emerging economies the population continues to grow, education standards are rising and universities are producing more high quality graduates than ever before.

In a survey of CFOs and other C-suite executives by Deloitte in 2013, nearly 40% reported that they were ‘barely able’ or ‘unable’ to find the talent they needed to execute their business goals, while in a Manpower survey last year, 38% of employers reported hiring difficulties returning to the previous record highs. So why is this and why hasn’t it been resolved?

One reason is that too many business take a short-term view and fail to invest in building people and organization capabilties for the long term. This creates a shortage of skilled workers, a lack of benchstrength in the leadership pipeline and results in companies competing with each other for the same talent. High rates of attrition, low levels of engagement and spiralling salary costs naturally follow.

Jardines has a proud history of developing and retaining people. In my first few months I’ve been delighted to meet colleagues with many years of long service, but I am also aware that there are areas where we are working hard to attract and retain key staff. As the demand for talent is likely to accelerate, our businesses must prepare for the future. Being

an employer of choice, investing in training and development, building key skills, providing high quality career and leadership development programmes, coaching and mentoring initiatives are just some areas we will develop further in the years ahead.

The good news is we start from a good place. Many Group businesses are respected employers in their sectors and our graduate schemes and leadership development programmes are much admired. But there is much more we can do to ensure everyone in Jardines is developed to their full potential.

As one of the biggest employers in some of our markets we must show the way. In some instances this may mean investing in the development of our people ahead of the development of the business to ensure the capability of the organization is aligned to its future ambition. Indeed as Group Managing Director Ben Keswick said recently, “We must ensure that we select and groom future leaders, and that means hiring for tomorrow and not merely filling a particular role.”

Achieving these aims will not be easy, but we are committed to making it happen and it’s never too late to start building for the future.

In the words of the famous proverb ‘The best time to plant a tree was 20 years ago. The second best time is today!’

John Nolan, Jardine Matheson Group Head of Human Resources

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Developing Talent

Food for Thought at Dairy Farm Forum

Addressing senior executives at the annual Dairy Farm Forum, Dairy Farm Group Chief Executive Graham Allan said that the group’s appetite for growth is one of its defining qualities.

New Country Chairman for Malaysia

Rossana Annizah Binti Ahmad Rashid

“Over the last 18 months, we have invested heavily in our businesses to drive organic growth and committed nearly US$1.4 billion in acquisitions to strengthen our portfolio of businesses across Asia.”

Mr Allan also said that Dairy Farm should measure itself on the way it developed and nurtured its people, especially in the core functions of retail. At the same time, as a company that aspires to be truly consumer centric, particular priorities for 2016 were to strengthen consumer insight capability and ensure each retail format meets envolving consumer needs.

At a dinner held to present the ‘Pioneers Awards’, which recognize the achievements of Dairy Farm colleagues in embracing its ‘Pioneers Principles’, IKEA carried off the top award.

The Jardine Matheson Group has appointed a new Country Chairman for Malaysia following the retirement of Datuk Syed Tamim Mohamed, who had held the position since 2009.

Rossana Annizah Binti Ahmad Rashid began her career with Citibank NA in 1988 and, most recently, was Deputy Chief Executive Officer of Time Dotcom Berhad. She is an independent non-executive director of leading international provider IHH Healthcare Berhad and of Parkway Trust Management Ltd. She is also a member of the Investment Panel and Investment Panel Risk Committee of the Malaysia Employees Provident Fund.

Group Human Resources Links In to Potential RecruitsGroup Human Resources (GHR) is reaching out to potential recruits, in particular the Millennial Generation in Southeast Asia, through LinkedIn, the leading networking site for business professionals. Of LinkedIn’s 433 million members, more than 40 million are students.

GHR is using LinkedIn to develop a strong employer brand to attract the right candidates to the Group, drive traffic to its career website and to target graduate students.

“The sphere of recruiting is changing rapidly and social hiring is an emerging strategy,” explained Group Human Resources Senior Manager, Executive Development, Cynthie Neo. “There has already been an increase in candidates applying through LinkedIn as well as emails from LinkedIn members asking for more information about our graduate trainee programmes and other job opportunities.”

There was plenty of food for thought at the annual Dairy Farm Forum, which was held in Hong Kong with the theme ‘Thriving in a Changing World’ and attended by over 150 senior executives.

The intensive programme included presentations by both external and internal speakers and provided an excellent platform for participants to share best practices, review business strategies and chart Dairy Farm’s course for the future.

Speaking during the Forum, Dairy Farm Group Chief Executive Graham Allan said that the group’s appetite for growth is one of its defining qualities.


Astra Moves Closer to 2020 GoalAstra used the occasion of its 59th anniversary to reflect on its achievements and look forward to the realization of its 2020 goal to become ‘Pride of The Nation’.

Addressing the 59th anniversary gathering in Jakarta, Astra President Director Prijono Sugiarto said, “No company is immune to problems and challenges. We have to respond by adapting to change and continuously progressing.”

Mr Sugiarto also said that Astra would always encourage each employee’s engagement to drive the company’s growth. With its 3C strategy of Cost Efficiency, Capitalization on Value Chain and Capital Productivity, Astra hoped to achieve a significant increase in its future performance.

Meanwhile at InnovAstra 2016, the annual event held to celebrate Astra people who have produced innovations to optimize programmes and work systems, the 2020 Pride of the Nation goal was reflected again in the theme ‘Bringing Up The Next Landscape’.

Astra President Director Prijono Sugiarto addresses the opening event of the group’s 59th anniversary celebrations.

We have to respond by adapting to change and

continuously progressing.

Astra International President Director Prijono Sugiarto

Jardine Schindler to Lift Skills in VietnamJardine Schindler is to establish the first elevator and escalator professional training centre in Vietnam, dedicated to developing and uplifting the skills and capabilities of Schindler technicians and local contractors.

Located in Ho Chi Minh City, the training centre will include four elevator training shafts, one escalator and four simulators, as well as five fully equipped training rooms and a client showroom. It reflects Schindler’s long-term commitment to safety and quality and to developing a top-class Vietnam work force that is fundamental to business development.

“It will be our powerhouse of talent for the future and key to our strategy in Vietnam,” said General Director Schindler Vietnam Limited Raul Carbajal.

The new training centre will also complement Jardine Schindler’s Apprenticeship Programme, which was established in 2014 in co-operation with Cao Thang Technical College to train and groom the next generation of field technicians. A similar programme will be introduced this year at the Hanoi College of Technology.

34

Developing Talent

One of the student teams taking part in the inaugural JOS Innovative IT Project Awards demonstrate their solution to the judges.

SEATS Trainee Inspires Others to FollowThe experiences of a trainee on the Jardine Matheson Group’s Southeast Asia Talent Scheme (SEATS) are being posted on the website of RMIT Vietnam university newsletter and the graduate scheme’s Facebook page to inspire and attract other recruits.

Daniel Bang Nguyen was selected to join SEATS, which aims to develop leaders who can one day lead a Group business unit in Southeast Asia, after graduating from RMIT Vietnam and Hult International Business School, Boston, USA. Already he has worked as a Store Manager at Guardian followed by a stint in Dairy Farm Vietnam’s HR department as part of his rigorous management training and leadership development.

JOS Crowns Rising Technology StarsJOS, a division of JTH Group, bestowed platinum, gold and silver awards on the winners of its inaugural ‘Innovative IT Project Awards’ at the presentation ceremony held at Cyberport, Hong Kong. The competition challenged eight teams of students from Hong Kong’s universities and tertiary institutions to explore how the real-world application of advanced, innovative technologies could deliver improvements in the retail, construction, utility and transport sectors.

The Awards, which were judged by industry leaders, attracted more than 40 entries from ten universities and higher education institutions. Seventeen shortlisted teams were whittled down to eight for the final. HK$100,000 (US$13,000) of prize money was at stake, along with training and employment opportunities for the winning contestants.

JOS will offer the competition’s most outstanding individuals the opportunity to join its graduate trainee programme once they complete their studies.

“JOS Innovative IT Project Awards have inspired students to explore IT innovations and their realization and following its inaugural success in Hong Kong, we are now planning to roll out the programme to other countries in Southeast Asia where JOS operates,” said JOS Group Managing Director Mark Lunt.

The Group looks for candidates with high leadership potential, meaning the ability to set direction, bring people with them and achieve results.

“These were all characteristics we identified in Daniel,” said Group Human Resources Senior Manager, Executive Development, Cynthie Neo.


Building Sustainable SuccessMyanmar Jardine Schindler Limited (MJSL) is an outstanding example of how to create sustainable success in the challenging frontier market of Myanmar.

Founded in 1999, MJSL began as a small operation, but following Myanmar’s recent transformation towards democracy and a market economy, MJSL centred its strategy on Customer Focus, Sales Excellence, Local Talent and Social Responsibility to capture the extraordinary growth opportunities available.

Key to this was building a strong brand reputation for customer service as well as becoming the preferred employer in the industry.

“Every decision we make is based around our core value of providing exceptional customer service,” said MJSL General Manager Edmond Rocher.

The most important element of MJSL’s success has been building local capacity and developing the skills of local employees, a significant challenge given the shortage of local skilled labour. The first step was human resources planning along with financial rewards and benefits. Initiatives including free English and computer lessons and health checks were also introduced.

The results speak for themselves. By 2015, unit sales had risen by almost 350% from 2012 and had topped US$23 million, a fourfold increase. Sales profit margin had also risen from 9% to 12% and MJSL continues to dominate the market with a new sales share of almost 50%.

“By giving our people the skills to succeed, we have created a local team who will drive the organization forward as Myanmar’s growth continues,” said Mr Rocher. “Most importantly, however, we have achieved our vision to become Myanmar’s preferred employer.”

Every decision we make is based around

our core value of providing exceptional

customer service.

MJSL General Manager Edmond Rocher

36

Enterprising Matters

Please address your comments or suggestions regarding Thistle to:

Group Corporate Affairs Jardine Matheson Limited 48/F Jardine House Central, Hong Kong [email protected]

Thistle is published by Jardine Matheson Limited on behalf of the Jardine Matheson Group.

www.jardines.com

vol. 2 2016 thistle magazine

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