picagroup.com.au

“With a projection to grow by three to four per cent in 2018, we are cautiously optimistic regarding the Hong Kong economy and the government’s proposal to reduce profit tax could also help boost overall sentiment. According to the World Bank and the IMF, China’s economy is expected to grow by around 6.5 per cent and backed by such a strong market, Hong Kong will benefit from this. Though trade tensions between China and the US pose uncertainty to the global economy, we believe that the Central government will strive to reduce the impact brought by potential trade conflicts. For Hong Kong’s property market, the demand for residential property remains high and while there is a possibility the Federal Reserve will raise interest rates, strong monetary liquidity and the fiercely competitive mortgage market in Hong Kong should make the banks less likely to follow”.

“New policies enacted by the HKSAR government, which include plans to offer affordable homes, together with an expected gradual easing of demand-supply balance of flats resulting from a projected increase in flat production in the coming few years, may impact the market. As a company, we have always focused on long-term sustainable development and as such we welcome a more healthy market on which we can further build our businesses. The development of the Guangdong-Hong Kong-Macao Bay Area will present another opportunity for Hong Kong and neighbouring cities. With the completion of the Hong Kong-Zhuhai-Macao Bridge, connectivity will be vastly enhanced and further strengthen Hong Kong’s position as a regional hub”.

With developments in Hong Kong, Mainland China and Asia; in what areas of your business are you seeing the most growth?

“Stable growth is being recorded across our core business segments. Last year our flagship project in mainland China, HKRI Taikoo Hui, came into full operation and our CDW Building in Hong Kong was converted to a quality commercial complex. We expect these two projects to generate stable rental revenue for the Group. Meanwhile we are also optimistic towards the residential property market in Hong Kong, Yangtze River Delta, Bangkok and Tokyo. Recently we acquired two new land lots in Jiaxing, mainland China and we are also planning a large- scale residential property project in Bangkok”.

“For our hospitality businesses in Hong Kong, Shanghai and Bangkok, these popular cities attract visitors from around the world and we are confident that our hotels in these three cities can leverage on this trend. In Japan, we will continue to look for suitable opportunities”.

How important is Japan to your business and do you expect your Japanese business portfolio to increase?

“Our investment properties in Japan provide good rental income and a reasonable yield of approximately five per cent. Our key business strategies are to distribute our business equally across three geographical areas: Hong Kong, mainland China and the rest of Asia while maintaining a balanced income from our different business segments, especially property development and investment. Our business in Japan is a perfect fit into these two main strategies and we will continue to look for suitable investment opportunities in Japan as we believe our Japan business will provide stable growth”.

Where do you see the Hong Kong-Japan relationship heading in the future?

“Hong Kong and Japan have a long-term close trade and business relationship. Japan is Hong Kong’s fourth largest export market and fourth largest source of imports, while Hong Kong is the largest export destination for Japanese foodstuffs. In light of Hong Kong’s position as a regional trade centre, many Japanese companies are using Hong Kong as their regional headquarters or regional offices to oversee their business activities in other Asian economies, including mainland China. We expect the relationship between Hong Kong and Japan to grow. Overseas and Mainland companies continue to value Hong Kong as the prime location for regional operations in Asia, mainly because of its simple tax system and low tax rate, free flow of information, free port status, geographical location and corruption free government. According to the latest government statistics, twenty per cent of companies were confident and indicated that they may expand their business in Hong Kong over the next three years. The Hong Kong Trade Development Council (HKTDC) will continue to play a pivotal role in facilitating trade and business between Hong Kong and other countries, including Japan”.

What message do you have for our readers in Hong Kong, Japan and the rest of the world regarding HKRI’s continued commitment to customers and partners across the Asian region?

“HKR International Limited just celebrated its fortieth anniversary and we are glad to say we have attained a number of remarkable achievements as we turn a new page in this milestone year. We have transformed from a property developer into a conglomerate with diversified businesses across Asia. We shall continue to develop quality lifestyle projects leveraging our core competencies of innovation and creativity. We strive to build livable communities for our customers and continue to uphold our values of respecting our environment and individuals and pursuing excellence and quality in all our projects and the markets we operate in”.

“Recognizing the difference we might make, we are committed to continuously investing in the environment and our people and over the years we have laid a solid foundation for our future development. While new and changing conditions may result in challenges, we are confident that with the wealth of experience which we have accumulated, our pioneering spirit and our vision to create healthy, stylish and distinctive living experiences, the Group is well equipped to embrace these challenges and will continue to excel in our business operations”.

www.hkri.com

With Manila’s residential market remaining strong, Ortigas and Co. is looking to grow while remaining a niche player in the industry.

“Our relationships with our customers and key stakeholders are at the heart of what we want to accomplish”, says Ysmael. “We will engage our customers and appeal to their emotions through our product and service offerings, while adhering to our commitment towards excellence and innovation. We are redefining our corporate culture through clear measurable deliverables aligned with our business objectives and corporate values, merit-based incentives,competency-based training and development, and increased accountability to enable us to execute well on our plans and deliver on our promise”.

With Japanese investment in Metro Manila’s mass-transit network set to include stations in Ortigas Center and Capitol Commons, Ortigas and Co. is well positioned to work with Japanese partners and play a role in strengthening the Philippines-Japan relationship.

www.ortigas.com.ph

What can we expect in 2018?

“With footholds in multiple sectors of the economy, the Yuchengco Group of Companies prides itself on collaborations and partnerships which create successes for all parties.

From the banking sector, to energy and education, we seek foreign partners who are in a position to drive business and improve the lives of our customers by providing top-of-the-line services that meet global standards. In this way, we are not only ensuring the growth of our businesses, but also provide our foreign partners with access to the market and ensure they are in a position to expand their respective businesses.”

Which sectors are proving to be growth drivers for the domestic economy?

“Our goal and main directive has always been to remain competitive. The diversity found across the Yuchengco Group of Companies provides us with the opportunity to grow and improve our activities in various sectors.

We are seeing growth in sectors such as education where our school, Mapua University, recently attained university status and is recognized as one of the best IT, engineering and technology universities in the country. We are proud of our achievements in terms of the school’s reputation with local and international accreditation authorities. We encourage our students to strive to be the best and work hard to develop partnerships with both corporate and educational institutions across the globe.

The energy sector is also showing promising signs of growth. Our firm Petroenergy Resources Corporation, is leading the way in terms of investing in the mass distribution of clean, renewable energy across the country.

Progress is also being made in the country’s construction and infrastructure sectors where EEI Corporation, our leading global construction service provider, continues to grasp opportunities across the country within the Philippines’ infrastructure sector.

Our banking unit, Rizal Commercial Banking Corporation (RCBC), continues to expand through various ventures. We are focused on innovating and providing better products to meet our clients’ needs as well as providing funding for key projects.”

With collaborations and alliances with several prestigious Japanese groups, how would you describe YGC’s ties to Japanese corporates in 2018?

(Cesar) “Our ongoing relationship and partnership with Japan is crucial to YGC’s own expansion and progress. In gaining the confidence of the Japanese market, our businesses are able to flourish. For example, RCBC is currently the leading financial institution for Japanese firms operating in the Philippine Economic Zone Authority (PEZA). Our existing collaborations allow us to further promote direct investments and business relationships between Philippine and Japanese entrepreneurs and corporations.

One such example is the expansion of the partnership between the bank’s credit card-servicing entity, RCBC Bankard, and JCB International. The 20-year partnership just recently produced the bank’s newest top of the line privilege card, the RCBC Bankard JCB Platinum Card, which provides world-class privileges and state-of-the-art features to the modern traveler of today.

What message do you have for our readers regarding the future of the Philippines as a place to do business and what plans do you have to ensure YGC remains a leading player within the economy?

“As a developing country, the Philippines’ economy continues to grow and attract foreign investors. Our country is home to a hospitable environment for business expansion, a fact that appreciated by foreign corporations. Aside from this, there is the advantage of our highly accessible human resources and competitive manufacturing hubs.

YGC is leveraging our strengths in many growth areas of the economy. We will intensify the way in which we provide our services to meet the needs of our customers’ lives. In addition to the introduction of new products and innovative solutions, we will also be focusing on the environment by continually investing in clean and renewable energy sources.

Our companies will continue to play a significant role in the banking and finance, insurance, construction and real estate, education, information technology and automotive sectors as we contribute to the development of the Philippines.”

Founded in 1974, Sansin Sangyo offers a wide selection of scaffolding and state-of-the-art solar panel systems. Meanwhile, KYC Machine handles the manufacturing and selling of construction machines and plant equipment such as concrete mixers, concrete batching plants, crushing plants, belt conveyors, and other environment related products.

As one of the leading construction companies in the Philippines, EEI is involved in the installation and construction of large-scale infrastructure projects such as power generating facilities, oil refineries, chemical production plants, cement plants, food and beverage manufacturing facilities, semiconductor assembly plants, roads, bridges, rails, ports, airports and other infrastructure alongside high-rise residential and office towers, and hotels building. It also operates one of the country’s modern steel fabrication plants.

“By utilizing our global network and resources, we are able to provide our services to the Philippine public through Malayan Insurance,” Nagano explained. In turn, Tokio Marine has provided expert knowledge to Malayan Insurance in order to improve its processes and structures. This allows Malayan to enhance and upgrade its services to its clients. “This creates synergy, and synergy is important for the future growth and expansion of Malayan Insurance,” he added.

Nagano also shared that Tokio Marine has begun initiatives in order to stay ahead in the industry. Among the main initiatives are geographic and business risk diversification, tapping emerging markets such as the Philippines, and research and utilization of new technology. “Technology will change our industry in many aspects, such as products, services, distribution, and internal operations,” Nagano said, “So we must strive to keep up with these changes.”

Aside from this,Tokio Marine has begun to develop new products to cater to new needs in the market, such as insurance coverage for autonomous cars, as well as “living needs” insurance, which is a hybrid of life and non-life insurance.

With these innovations and efforts, the joint venture between the two companies only stands to strengthen and grow. “By working closely with Malayan Insurance, we can create new products and services for the Philippine insuring public,” Nagano said.

The city’s infrastructure includes well-maintained roads, a priority power arrangement delivering a stable supply of electricity, engineer-approved control systems and 24-hour security surveillance.

Of the 160 tenants, 80 percent are Japanese companies, including Toyota Motor Manufacturing, Yamaha Indonesia Motor Manufacturing, Astra Daihatsu Motor and Sharp Semiconductor Indonesia.

“In the last five years, we have begun to see more investments from the consumer goods and food sectors,” said president director Hisashi Akita. Indeed, Procter & Gamble, Uni-Charm, Kao Corp. and Ajinomoto Co. are just some of the notable companies located in KIIC.

With a strong community led by KIIC’s management and a proactive tenant-led association, KIIC tenants transcend industrial links and collaborate regularly to improve productivity and contribute to society.

“There are many Japanese businesses and families already moving closer to our area,” said Akita.

“Ongoing infrastructure projects are improving connectivity and driving economic growth in the surrounding area,” said Akita.

Developments include Patim- bang Deep Sea Port, Jakarta-Cikampek Elevated Toll Road, West Java Kertajati International Airport and the Jakarta Bandung High Speed Railway.

Just 56 kilometers from the center of Jakarta, KIIC also boasts a golf course, sports center, extended stay hotel, shops, restaurants, banks, clinics, petrol stations and other facilities to support their customers’ businesses.

Already in its fourth phase of expansion since 1993, KIIC has developed an additional 160 hectares of land to meet the growing demand for industrial space. As more international businesses establish operations in and around the city, KIIC is looking to expand its footprint and continue to deliver solutions to international businesses.

www.kiic.co.id

In the last three years, the company has made significant investments across the region. In March 2017, Kenedix Asia acquired fifteen per cent units of ‘AmanahRaya REIT’,a top-ten listed Malaysian REIT, and forty nine per cent of ‘AmanahRaya-Kenedix REIT Managers’.

“We acquired the ‘Vista Tower’, a sixty three floor Grade-A office building inthe CBD of Kuala Lumpur in September 2017”, says Uchida. “We then solved investment structural issues andsold the property to AmanahRaya REIT in January of this year to increase our REIT and diversify our portfolio of assets under management”.

In 2015, Kenedix Asia acquired the ‘V-Tower’ property close to the Japanese Embassy in Hanoi, Vietnam. The following year, the company bought a twenty percent stake in ‘AIRA Property’, the real estate development arm of Thailand Stock Exchange listed financial group, AIRA Capital.

“AIRA Capital is interested in expanding into REIT’s in Thailand so this was an ideal partnership for us to undertake,” says Uchida.

As the property sector gains traction across the region, Kenedix Inc. intends to continue to explore diversified investment opportunities.

“We want to be the intermediary between investors and investments in ASEAN”, says Uchida. “We are fully committed to serving investors by tailoring our investment proposals to fit each individual’s needs and risk allowances”.

www.kenedix.com/eng/

‘The oil and gas industry has changed considerably over the years and being flexible and adaptable to change is crucial to our success in the future’, says Wiluan. ‘With Nongsa Digital Park we are developing an ecosystem for digital businesses in the region’.

In addition to having an international airport, Batam Island is only a forty minute ferry ride from Singapore. The island has a population of over one million people and is already home to world-class beach resorts. Notably, the island is also far from major earthquake zones making underground fiber-optic cable installation viable; a significant advantage when attracting tenants to the Park.

Citramas Group’s subsidiary, Infinite Studios, is a media entertainment and creative services company already employing three hundred staff in Batam. The company has already won numerous awards including The Grand Prix Nouveau Genre Award at L’etrange Festival Paris 2016.

‘Indonesia recognizes the importance the digital economy will play in the future and we are proud that Citramas Group is contributing to this vision,’ says Wiluan. ‘Our business is supported by the Singaporean Economic Board and President Joko Widodo and we will work hard to make a positive difference to the region through our commitment to innovation-driven solutions’.

www.citramas.com

Jababeka’s partnership with Sembcorp Development of Singapore was established recently and the resulting joint venture lead to the establishment of the Kendal Industrial Park (KIP). Located twenty one kilometers west of Semarang, the capital of Central Java, this 2,700 hectare integrated industrial park is currently under development and is attracting international attention. As an industrial park which meets international standards, KIP is a mixed-use development that includes industrial as well as residential and commercial areas.

Offering a young and skilled labor force with management graduates from local universities and vocational institutes and competitive labor costs, KIP is an ideal location for both Indonesian and foreign manufacturing and tech companies.

In line with Jababeka’s philosophy of creating fully integrated townships, KIP offers world-class infrastructure and supporting amenities, well-equipped plots and ready-built factories, reliable electricity, water and waste-water treatment facilities, executive housing and well-managed employee dormitories.

In addition, the Company is also developing an integrated resort-township in Tanjung Lesung that caters to the tourism, leisure and hospitality industries. Tanjung Lesung, which lies approximately 170 kilometers southwest of Jakarta, enjoys Special Economic Zone status and is one of the Government’s 10 new tourism destinations of priority in Indonesia. Newly created cities like KIP and Tanjung Lesung are expected to drive Indonesia’s economic growth further, create jobs, improve education and bring more welfare to the Indonesian people.

‘With Indonesia’s GDP close to USD 1trillion and our wealth of natural resources, we see diverse economic opportunities across Indonesia’, says Darmono. “We are skilled in identifying strategic locations with the potential to become the next development project and are focused on sites across the country in Tanjung Lesung, Morotai, and other sites with potential resources and/or strategic advantages. We are committed to contributing to the development of Indonesia’.

www.jababeka.com

As completed projects continue to bring financial returns, LSG is continuously reinvesting in new developments. With opportunities across numerous key markets, LSG is not only doing business in Hong Kong but across the globe, a strategy which ensures the Group is not confined by Hong Kong’s already densely populated 2,754 km².

“Our property pipeline is stronger than ever”, says Chew. “The biggest challenge we face in Hong Kong is the lack of available land as developments have already shaped the Hong Kong we see today”.

Since the transfer of Hong Kong’s sovereignty from the United Kingdom to the People’s Republic of China in 1997, Hong Kong property prices have soared.

Global interest in Hong Kong’s stock market has enabled Hong Kong to become an important international financial center and the territory remains a strong wealth management center.

With China, the world’s largest economy (by nominal GDP), in Hong Kong’s ‘back-yard’ Hong Kong today rivals international finance centers such as New York and London.

“We have become a much more successful and proactive player in recent years” concludes Chew. “We are proud of our achievements and look forward to accomplishing the milestones which we have set for the Group in Hong Kong and the region”.