Living and Breathing Sustainability - Building a New CBD in Shanghai - Jardines
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VOLUME 1 2020 Living and Breathing Schindler Singapore’s Sustainability Jewel Supporting Covid-19 Building a New CBD Frontline Teams in Shanghai
Living and Breathing Sustainability One of the world’s largest international airports would appear to be an unlikely breeding ground for innovative sustainability programmes but Hactl is challenging that notion with creative initiatives that are improving their bottom line, corporate reputation and team spirit. Page 10
Contents Outlook and Opportunities: Key Areas of Focus for 2020 Goodbye Page 04 Paper – Hello to Workday Our New HR Platform Page 32 Astra Agro Takes the Lead in Digital Transformation Page 15 Vinamilk Named One of Asia’s Top Exporters Page 24 The Pulse 04 Senior Management Changes Re-energise the Group Collaboration Powers Fast Lane Innovation Perspective 10 Living and Breathing Sustainability Front Runners 14 Mandarin Oriental Now in Abu Dhabi and Set to Open in Madrid Boosting Green Power on Construction Sites Celebrating Success 22 Maxim’s Group Hongkong Land Cements ‘Platinum’ Status as Sustainability Leader Reaffirms Strong Group Companies Shine at Hong Kong’s ‘Oscars’ Support for For Our Future 28 MINDSET Exciting New Directions for MINDSET in 2020 Supporting ASEAN’s Best and Brightest Page 28 Our People 32 Goodbye Paper – Hello to Workday Our New HR Platform Learning More about Millennial Car Buyers in a Creative Way Thistle Volume 1 | 2020 01
Chairman’s Desk Business Unusual The year so far has been an anxious and uncertain time for colleagues, their families, and our many business and community partners. As a Group, we will Covid-19 has become a global pandemic, placing huge physical, continue to take financial and emotional strain on societies across the world. Faced with these difficulties I would like to thank Group colleagues for their decisive action, dedication, hard work and professionalism in continuing ‘to get the job done’ across our diverse businesses. wherever we can, I want to also reassure you that as a Group, we will continue to take to protect the safety decisive action, wherever we can, to protect the safety and interests of our teams and customers – we are truly in this together. and interests of our While all of our businesses have been impacted in the first quarter, teams and customers the effects have varied by sector and geography. Businesses reliant on the free movement of people have particularly suffered – – we are truly in including hotels, restaurants and our aviation businesses. Our property businesses have also been impacted by Covid-related this together. restrictions, resulting in suspended construction activity and rent relief being offered to tenants. Covid-19 has however, led to some changes in customer behaviours Executive Chairman and – for instance people are dining in more and are doing more Managing Director shopping online – and food retailing and e-commerce aspects of our Ben Keswick businesses have therefore benefitted. The virus outbreak has also impacted our respective markets at different times with the Chinese mainland and Hong Kong affected early in the quarter, followed by Southeast Asia and while we are seeing some recovery in our property and motor businesses in the Chinese mainland, many Southeast Asian markets – especially Indonesia – remain in lockdown. While the future is hard to predict right now, we have demonstrated a tremendous ability to ride out storms – to emerge stronger – throughout our 188-year history and I believe that Covid-19 will be no different. It will take a united effort and I would like to express my sincere thanks and gratitude again to employees across the Group, as well as our suppliers and other key stakeholders for your unwavering support and commitment. I would also like to offer my best wishes to you and your loved ones and hope that you all continue to stay healthy and safe in the months ahead. Ben Keswick Thistle Volume 1 | 2020 03
The Pulse Outlook and Opportunities: Key Areas of Focus for 2020 Ben Keswick, Jardines Executive Chairman and Managing Director, delivered his 2020 Strategic Direction via webcast in March. His core message was that in the current environment the Group must keep a keen eye on managing costs and preserving cash. In doing so, the Group will be in a position to invest in areas that will further strengthen Group businesses for the long term. Much of this activity will centre around the four pillars of our Momentum Shift – People, Collaboration, Innovation, and Sustainability. Here are five key takeaways from his webcast: 1. Resilient throughout 2019 In terms of innovation, Considering the headwinds faced in 2019, that included the US-China trade war and modernising core functions social unrest in Hong Kong, Ben said it was a testament to the Group’s resilience that a solid performance was delivered – the results overall, were only 4% down and processes to improve from the 2018 numbers. efficiency and cost, and using Hongkong Land delivered a further year of record profits and there were also solid digital technology to results from JEC and Gammon, offset by weaker performances from Restaurants accelerate growth, are priorities and Hactl. for 2020. Jardine Motors saw good profit growth, driven by a higher contribution from the investment in Zhongsheng. Ben Keswick In Indonesia, Astra delivered a resilient performance with strong contributions from its financial service businesses and newly acquired gold mining operations, offset by weaker performances from heavy equipment, coal mining and agribusiness. Challenging market conditions in Hong Kong impacted Dairy Farm’s financial performance in 2019 – with Mannings and Maxim’s most affected – but its ongoing transformation programme is beginning to deliver positive operational results. In terms of results by geographies – as in 2018 – the 2019 profits were well diversified again, throughout Asia. 04
Underlying Profit Contribution 3. Long-term priorities remain unchanged US$m 2019 Change 2018* The Group’s long-term priorities remain the same with a firm focus on Jardine Pacific 164 2% 160 the four pillars of the Momentum Shift – People, Collaboration, Jardine Motors 196 12% 175 Innovation, and Sustainability – which were announced last year. And while good progress was made in the past 12 months, with new Hongkong Land 460 5% 438 initiatives in the respective areas, Ben said the internal rate of change Dairy Farm 210 -11% 235 needs to keep up with the external rate of change, and he challenged Mandarin Oriental 27 -39% 45 all businesses to step up the pace. Jardine Cycle & Carriage (ex. Astra) 84 -17% 101 Several exciting projects in the 2020 pipeline including the launch of a Astra 455 -2% 465 new learning and communication platform to make on-demand Jardine Lloyd Thompson - -100% 77 learning simpler, which will significantly improve Group-wide Corporate & Other Interests (7) 83% (41) communications. In terms of innovation, modernising core functions Underlying Profit 1,589 -4% 1,655 and processes to improve efficiency and cost, and using digital technology to accelerate growth, are priorities for 2020. *Restated Greater China 4. Boosting bench strength to better embrace the future Ben also provided some personal insights on recently announced senior management changes. After eight years as Group Managing Director, Ben will hand over the role to John Witt on 15 June, but will still retain the role of Executive Chairman. Graham Baker, previously 58% Chief Financial Officer of Smith+Nephew, will join as Group Finance Director (stepping into John’s former role), and more details about the changes are covered in The Pulse section. He said the changes will further energise the Group, increase management bench strength and better position the Group to respond to short-term demands decisively, with clear thinking 42% around longer-term strategy. Entrepreneurial companies embrace the future and the changes will help ensure the Group continues to have the right environment for this to occur, but not at the expense Southeast Asia of the characteristics that shape the Jardines culture such as how the Group treats its people, engages with customers and business 2. Focus on what we can control partners, and contributes to the wider society. Although it is tempting to feel helpless in times of crisis, Ben urged 5. Leading by example leaders to be even more proactive and to capitalise on existing Finally, there was a call for all leaders to be personally accountable, strengths, to emerge stronger when things improve. and lead by example, to energise teams, and support their efforts to The current challenging times have led to rapidly changing customer accelerate change and not be daunted by challenges – or bumps in the behaviours – especially online sales – and now was a good time to road ahead. Ben also thanked all colleagues for their contributions in accelerate innovation and transformation projects already in the 2019 and offered special thanks to their families and loved ones for pipeline, to capture new sources of revenue growth. Agility is equally their support and care in tough times. important, and he said Jardine Restaurant Group have – in recent months – pivoted their social media marketing focus from dining-in campaigns to promoting out-of-store options. For Pizza Hut Hong Kong this resulted in the proportion of delivery and take out sales increasing by 20% to make up close to 80% of all sales in February. Momentum Shift Pillars People Collaboration Innovation Sustainability Thistle Volume 1 | 2020 05
The Pulse Senior Management Changes Re-energise the Group John Witt, the current Group Finance Director, will take on the role of Graham Baker will replace John as Group Finance Director. He joins Managing Director from June 15. the Group from the FTSE-50 global medical technology company, Smith+Nephew, where he has been a board member and Chief In his new role, he will be responsible for leading the Group, Financial Officer since March 2017. Prior to joining Smith+Nephew, he developing and implementing strategies including capital allocation, worked for 20 years at AstraZeneca PLC in a range of senior roles in business planning and performance, and ensuring that the Group the United Kingdom and internationally and, then, as Chief Financial remains focused on attracting and retaining industry-leading talent. Officer of generic pharmaceuticals Group Alvogen. John, who joined Jardines in 1993, brings a breadth of experience to his new role, having held a range of senior positions across core businesses and geographies. Since joining the Jardine Matheson Board in 2016, he has played a key part in driving the Group’s strategic decisions and priorities. He will also be on the boards of Jardine Matheson, Jardine Strategic, Hongkong Land, Dairy Farm and Mandarin Oriental, and the board of commissioners of Astra, and will continue his important role as chairman of the Astra Excom. As Executive Chairman, Ben Keswick will lead the Jardine Matheson Holdings Board to develop the long-term strategic direction of the Group and in approvals for key business priorities. He will also spend more time developing existing relationships and building new ones John Witt Graham Baker with key business partners, governments and shareholders. He will also continue to oversee succession planning at the most senior levels and work closely with John to further develop the Group’s sustainability agenda. Lord Powell Meets Senior Thai Leaders Jardine Matheson & Co Director Lord Powell and the Jardine Matheson Country Chairman for Thailand, Subhak Sirawaska, met General Surayud, Chairman of the Privy Council during a recent visit to Thailand. Lord Powell also met Chuan Leekpai, the current President of the National Assembly of Thailand and Speaker of the Thai House of Representatives, and former Prime Minister Lord Powell with Chuan Leekpai. while in Bangkok. Lord Powell greets General Surayud. 06
Lord Sassoon Attends China Investment Corporation’s IAC Meeting Members of the IAC met last September in Shanghai, China. Jardine Matheson Group Director Lord Sassoon attended the China Investment Corporation’s annual International Advisory Council (IAC) meeting held in Shanghai, China, last September. The China Investment Corporation is China’s Sovereign Wealth Fund, with gross assets of US$940 billion. This was Lord Sassoon’s first meeting as a member of the IAC. The IAC members also met with Shanghai Party Secretary Li Qiang and paid a visit to United Imaging Healthcare and JD’s ‘Asia No. 1’ Logistics Centre. Lord Sassoon Co-Leads China-Britain Business Council Visit to China In his role as President of the China-Britain Business Council (CBBC) and Director of Jardine Matheson Group, Lord Sassoon introduced the new CBBC Chair, Sir Sherard Cowper-Coles of HSBC, to Chinese government leaders on a visit to Guangzhou, Shenzhen and Beijing in early November last year. In Beijing, they met with Vice Premier Hu Chunhua, as well as two Ministers (State Administration of Market Regulation Minister Xiao Yaqing and People’s Bank of China Governor Yi Gang) and four Vice Ministers (Ministry of Commerce First VM Yu Jianhua, Foreign Affairs VM Qin Gang, International Department Chinese Communist Party VM Li Jun, and Chinese People’s Institute of Foreign Affairs President Wang Chao). Lord Sassoon and Sir Sherard also met with Guangdong Governor Ma Xingrui and Guangzhou Party Secretary Zhang Shuofu in Guangzhou, as well as Shenzhen Mayor Chen Rugui in Shenzhen. Lord Sassoon visited China’s Vice Premier Hu Chunhua in Beijing, China last November. Thistle Volume 1 | 2020 07
The Pulse Inspecto has helped reduce the site inspection process time from 14 days to 4.5 days. Inspecto to the Rescue Restoring trust in the construction site inspection process was one to help our people adopt the new technology. It’s not easy to learn of the major factors behind Gammon’s decision to develop its new new things when you’ve been paper-based for 30 years, but we Inspecto solution platform. Vincent Mok, Gammon’s Senior knew that changing our practices would help to speed up the entire Manager Business Applications shares his insights about the process. platform (a first of its kind for Jardines), that utilises Blockchain to On learnings, launching Inspecto reiterated what we already knew improve transparency and quality assurance. – that we cannot do it alone. Without partnering with the startup to What is Inspecto and why was it developed? handle the technical part that was new to us then, and the readiness of our stakeholders to collaborate, we couldn’t have come up with Inspecto is a digital solution developed specifically for the the solution so quickly. construction industry to ensure quality control in site inspection – an important process that gets repeated throughout a project What difference has Inspecto made? build, and involves lots of stakeholders and supporting documents. Before Inspecto, it took on average 14 days to complete an We built Inspecto in March 2019 to build trust among our inspection request – from submission, to inspection, to final contractors, consultants and clients. Back then, there were news endorsement – but by digitising the process, we’ve reduced it to 4.5 reports about bad practices in the industry every day including days. backdating and forging of documents. Inspecto was our solution to How was Blockchain used in this project and what are the benefits? this problem. It digitalised the old paper-based inspection process using Blockchain technology. Inspecto captures – in a central digital platform – all the information, documents, on-site photos and timestamps for each Who was involved in the development of Inspecto? action in an inspection request and turns each piece into an We worked with all parties – contractors, consultants and clients – immutable block in a chain. All parties can then access it, and and identified the essential functions we all needed. As a result, we everything can be traced and verified to significantly increase were able to launch the pilot in just two months. The technical part quality and trust levels. was new to us, so we bought in a startup and designed the What response have you had from partners and customers? Blockchain together. We sought feedback, made enhancements, added features, and 12 months on, all our major projects are now Very positive. I think Blockchain solutions will be widely adopted using Inspecto. It was a very agile approach. across the rest of the construction sector in Hong Kong because it addresses concerns shared by all parties. What were some of the challenges and learnings encountered in development? We faced two challenges. First, we had to consider the competing requirements of all the different stakeholders. Second, we needed 08
Collaboration Powers Fast What have been some of the highlights so far? Lane Innovation Seeing innovation coming to life is really satisfying, as is bringing together change champions, innovation teams, and ecosystem partners to advance prototypes. I also like talking to customers to understand the things that excite them. Building our team spirit and empowering the team to challenge the status quo is another highlight. I don’t consider myself to be an innovator, my strength is bringing together various partners and giving them the opportunity to create. We need collaborations, to see From their Innovation Factory space in Hong Kong, the SpeedWorks how ideas connect, and make innovations happen. team develops transformative business models and platforms for What are the strengths of your team? Jardine International Motors (JIM). Since 2018, its drive for innovation has been led by Helena Lee, Head of Innovation, Jardine International The team’s very multicultural and diverse. Many have customer-facing Motors. Prior to her new title with JIM, Helena was Head of and operational experience with a ‘get things done’ attitude. At the SpeedWorks. Here she shares her thoughts about the team’s role, heart of it – the most important thing is that they like where they and the impact they want to make in the long-term. work, have a passion for their job, and can see every problem as an opportunity to innovate. Helena, what is SpeedWorks and what are your objectives? How are you expanding SpeedWorks across Jardine International SpeedWorks evolved from Zung Fu where we used to say ‘hey let’s do Motors? this at SpeedWorks pace’ to encourage teams to go for it, to be experimental, and agile. The ‘Intrapreneur’ programme – running bootcamps and hackathons to identify internal change champions – was the first focus for us. Creating innovative products and services for our customers – to turn ‘mobility woes into wows’ – is our mission. We believe delivering new Partnering with Innovate Jardines to tap the corporate accelerator customer experiences – matching their lifestyle needs – aligns with initiative, Startup Autobahn, and working with start-ups has also the JIM vision of providing exceptional journeys to our customers. worked well. Moving forward, we want to experiment with new business models to look beyond our traditional dealership model. We When we talk about providing exceptional journeys, it’s more than will also continue to partner with tech and lifestyle experts and hope selling and repairing cars – we want to include our innovation and to launch exciting new programmes soon. service in our clients’ daily lives – from their morning commute, to weekends and vacations. We want to connect our luxury customers Traditionally, the auto sector is male dominated – how did you across the Jardines network, and beyond. make your mark? Moving into our new Innovation Factory space enables us to embrace It never crossed my mind that a role or industry is geared towards design thinking and co-create with customers. We hope to invite more male or female. I believe as long you try your best in the challenges ecosystem partners – start-ups, tech experts, Jardines Group and opportunities you are given, you will succeed. And being companies, and other companies – to work with us and leverage the respectful of people regardless of gender, backgrounds, skills, and talent both inside and outside the company, to respond to our perspectives is essential when promoting workplace diversity. competitive and ever-changing environment. Helena Lee (second from right) is a passionate supporter of hackathons – such as the recent Hack.Asia in Singapore – and other collaboration focused initiatives that produce fresh ideas and pathways to make them happen. Thistle Volume 1 | 2020 09
Perspective Living and Breathing Sustainability Green team: Hactl volunteers set their sights on a sustainable future. A major international airport and cargo hub would appear to be an unlikely breeding ground for creative sustainability programmes. But Hong Kong Air Cargo Terminals Limited (Hactl) – Hong Kong International Airport’s largest independent cargo handler’s employees are certainly challenging that notion. Hactl has pioneered many sustainability programmes that have positively impacted the company’s bottom line, corporate reputation and team spirit. On top of its current solar power project, recycling and awareness programmes, carbon reduction initiatives and community outreach, Benny Siu, Hactl’s Senior Manager of Safety, Sustainability and Quality Assurance – and in-house ‘green evangelist’ – wants to develop a rooftop farm and more. In this interview, he talks about Hactl’s sustainability approach, standout programmes, and how it has become ingrained in the Hactl culture. 10
About Hactl Founded in 1976 Total site area 174,600 sq.m. Number of employees Total floor area 395,000 sq.m. 2,400 Recycling rate: Paper 95% Plastic 98% Air Cargo Handling (physical cargo handling, ramp handling and documentation handling) Reduction in Carbon Intensity Service offered (2015-2018) 28% Up to 3.5 million Carbon emission/ tonnes (P.A.) 100kg cargo handled Handling capacity Carbon Intensity Hactl enjoys an enviable reputation as a leader in sustainability across the Group and in Hong Kong – can you run through some of the main projects? Hactl is a long-time supporter of activities to minimise the environmental impact of our operations and we are proud of the awards that we have won that recognise our efforts. Green Terminal is our flagship. It was launched off the back of our Year of Green Terminal initiative in 2018, where we installed 81 water dispensers and distributed reusable water bottles, lunch boxes and eco tote bags to our 2,400 staff. We also staged the Benny Siu in action. ‘Don’t Wait Act Now’ fashion show featuring upcycled Hong Kong International Airport is one of the busiest clothing, modelled by management and staff, which airports in the world – what opportunities and was a programme highlight. challenges does this present in terms of sustainability And last year, we installed a 160 kilowatt solar power initiatives? system, comprising 516 panels, on the SuperTerminal 1 Yes, the nature of our business and our unique to power some of our operations. geographical location offers some very special We also run an annual Green Week initiative where challenges and opportunities. Our recent project, like-minded partners and social enterprises come Sustainable Tree is a good example. Last year, we had to share their sustainability successes and learnings to remove some eucalyptus trees from our rooftop as with our staff and tenant users. Last year, we invited they were a potential aviation safety concern. Rather other Jardines Group companies in Hong Kong to join than chop them down, we wanted to replant them, but Green Week and we look forward to more we had to find a replanting area close to the airport collaborations in the future. because the trees could not be transported too far. Eventually we contacted a local NGO who connected us with schools in nearby Tung Chung, where we planted the trees. The remaining trees were shredded for mushroom cultivation workshops run for the students – this was a great example of community outreach and we continue to visit these schools. In terms of opportunity, the space and openness of the airport is well suited for solar and wind energy projects and following our recent solar power initiative, we hope to introduce more soon. We have also installed an electric vehicle (EV) charging station which is available for Hactl vehicles and EVs used by Hactl tenants. A focus on EVs and renewable energy is a high priority because we often record high Dressed to impress: the ‘Don’t Wait Act Now’ upcycled fashion show. levels of air pollution due to heavy traffic in the air and roads around the airport. Thistle Volume 1 | 2020 11
Perspective Full house: Hactl’s Green Film Festival is a sell-out! Does Hactl have a dedicated sustainability team and is ramp vehicle use and emissions, cut fuel costs, and sustainability used as a benchmark when the company improved resource utilisation. sets annual objectives? Between 2011 to 2019, we reduced energy consumption My team is responsible for sustainability as well as by over 20%. This statistic makes a major difference to a safety and quality assurance. But we don’t see company which operates 24/7, in one of the largest air ourselves as the only experts on the topic – that’s why cargo terminals in the world and uses a lot of heavy we pro-actively engage other colleagues and internal equipment. We want to lead by example, and we are and external specialists so we can learn from them. always happy to talk about and work with a wide range of partners – internal and external. We have three groups, including our initial Green Team, to manage the Green Terminal initiatives. The team What are Hactl’s sustainability areas of focus for the consists of senior staff who are experienced in driving next 12-18 months and beyond? new initiatives, and youngsters who are creative and Organic farming is a hot topic and we recently invited passionate, and bring energy and new ideas to the local farmers to share their tips on organic farming. This table. really struck a chord with colleagues and we plan to There is also a Green Support Group which includes redesign a part of our rooftop to become an organic representatives from all departments. Their role is to farm and leisure space. promote new initiatives to their colleagues and give us We are also renovating our workspaces – which haven’t feedback on what is working well and what needs to changed much over the past 20 years – into a modern change. And we also have an Environmental, Health and workspace with many sustainability elements in it. Safety Committee that focuses on operation activities Moreover, echoing the Paris Agreement and the UN – especially related to the different environmental Sustainable Development Goals, we are planning for a aspects of our business. long-term decarbonisation strategy to make our And yes, when we set business objectives today, sustainability efforts even more comprehensive and sustainability is a very important benchmark for us. We integrated across our daily operations and future respect both qualitative and quantitative measurements projects. and always remind ourselves to be driven by our mission, not just by the targets set. How does driving such a strong sustainability agenda benefit Hactl’s business? We have found over the years that being eco-friendly makes good business sense. We reduce operational costs when we reduce energy use and waste. This has been particularly obvious since our adoption of company-wide mobile computing, which has reduced 12
Is employee engagement a big factor in your programmes? Hactl’s Sustainability Accolades Very much so, we have platforms for colleagues to share their ideas and lead new initiatives – their creativity and 2019 energy is incredible. Asian Freight, Logistics and Supply Chain Awards In 2018, we ran the Green Terminal mini-movie – Best Green Air Cargo Terminal Operator competition and six teams from various departments produced wonderful mini-movies to promote Organiser / Asia Cargo News sustainability messages to their colleagues. Tree 2018 planting is another very popular activity – participants are even willing take part in this event even during Hong Kong International Airport Environmental holiday periods – we are very proud and lucky to have Management Recognition Scheme – Grand Award such devoted colleagues who show the true Hactl spirit! Organiser / Hong Kong International Airport Do you live a sustainable life outside of the office? And do you have any easy green tips we can adopt at home? 2017 I get asked this a lot. My suggestion has always been Hong Kong International Airport Carbon Reduction Award the same, don’t overthink it, just start from what you – Champion in the ‘Above 10,000 tonnes’ category can do! Everyone needs motivation, so why force yourself into things you cannot do right now? Organiser / Hong Kong International Airport To adopt a new lifestyle, you have to learn to enjoy it, and it could be spending a weekend on an organic farm 2016 - 2017 or volunteering with a local NGO. Payload Asia Awards – Green Award Last year, I went to Hong Kong’s New Life Farm with a colleague to learn about organic farming. We also Organiser / Payload Asia organised a volunteer service at Food Angel, a charity which repurposes food waste in a sustainable way and 2015 creates meals for disadvantaged people. Once you Hong Kong Awards for Environmental Excellence – understand the brilliance of having a greener lifestyle, Transport and Logistics – Gold Award you will naturally be more aware of what you can do, and do more. Organiser / Environmental Campaign Committee, Environmental Bureau HKSAR Clean energy: Solar power installation in Hactl’s building. Thistle Volume 1 | 2020 13
Front Runners Mandarin Oriental Now in Abu Dhabi and Set to Emirates Palace, Abu Dhabi. Open in Madrid Mandarin Oriental Hotel Group (MOHG) took over the management of the Leisure and wellness facilities include a new heated indoor pool, vitality legendary Emirates Palace, Abu Dhabi in January 2020, and is also set to pool, steam room and fitness centre, in addition to a ‘private sanctuary’ unveil its much-anticipated property in Madrid this summer. treatment room for signature beauty and massage treatments. Introducing Mandarin Oriental Ritz, Madrid The hotel’s historic ballroom and functions spaces will also be restored making them the perfect destination for weddings, private dinners and The iconic Hotel Ritz, Madrid is set to open in Summer 2020 as the parties. Mandarin Oriental Ritz, Madrid, following its most extensive restoration in its 110-year history. The revamp is designed to significantly enhance Mandarin Oriental, Emirates Palace, Abu Dhabi, United Arab Emirates the hotel’s facilities and services, while maintaining the unique character (UAE) of its Belle Époque architecture. MOHG recently signed a contract to manage the iconic Emirates Palace in The hotel has always been an integral part of society in Spain’s capital, Abu Dhabi. The hotel will be rebranded as a Mandarin Oriental property and has hosted royalty, politicians, corporate leaders and celebrities. It’s following a phased renovation to be undertaken over the next two years, situated within the ‘Golden Triangle of Art’, an area defined by the most during which time the hotel will remain open. important museums in the city – the Prado, the Thyssen-Bornemisza The restoration includes significant upgrades to guestrooms and and the Reina Sofía Museum of Modern Art. recreational amenities, as well as new food and beverage facilities. The redesign of its public spaces has focused on restoring the hotel’s The hotel sits on a 1.3-kilometre stretch of private beachfront alongside many fine interior architectural features, while incorporating a number of the Arabian coast. Facilities include 394 guestrooms and suites, 12 valuable artistic pieces from the property’s collection. The hotel’s 153 restaurants and bars, 40 meeting rooms, and a concert grade auditorium guestrooms including 53 suites encapsulate a classic but contemporary and ballroom. Leisure facilities include a marina, two swimming pools, a residential style. There are also several one-of-a-kind specialty suites, spa and two fitness centres. featuring unique design elements inspired by the hotel’s historic connections to the city, Spanish culture and art. A spacious Royal Suite The hotel is in the heart of this vibrant city, close to the Grand Mosque and and the Presidential Suite feature magnificent views over the Prado the Abu Dhabi National Exhibition Centre. The Emirates Palace property is museum. MOHG’s second hotel in the UAE, following the opening of Mandarin Oriental Jumeira, Dubai in early 2019. Michelin-starred Quique Dacosta, one of the most celebrated chefs in Spain, will design, develop and oversee all culinary operations at the It’s anticipated that the work will be completed by 2022. hotel’s five restaurants and bars. 14
Astra Agro Takes the Lead in Digital Transformation Indonesian agribusiness PT Astra Agro Lestari Tbk (Astra Agro) is leading the way forward in the nation’s digital agriculture revolution with technology that connects the people in the field How Digital is Transforming with the company’s decision-makers. Astra Agro’s Operations Astra Agro President Director Santosa kick-started the project in 2017 when he was appointed to digitise the company’s palm oil 1. plantations and processing factories, to enhance competitiveness, Real time operational data efficiencies, and reduce costs. available to all leaders and support Standard operating procedures, especially harvesting processes teams were then streamlined with new technology and monitoring 2. systems, and the company today focuses on five key platforms – sensors and IoT, data analytics/machine learning, robotics, Fast diagnosis of operational problems and fast implementation connectivity, and mobile and desktop apps. of fixes “Evolution not revolution, was the approach Astra Agro adopted,” 3. Muhammad Guruh the company’s Head of Innovation in AgTech said, adding that the early work centred around research, and Fresh mindset and attitude identifying the best digital solutions to meet objectives, within budget. 4. Meet DINDA, AMANDA, MELLI DINDA, AMANDA, and MELLI are three Astra Agro-developed apps Improved productivity that now play a vital role in the daily operations of the agribusinesses’ palm oil plantations and factories nationwide. 5. DINDA (Daily Indicator of Astra Agro), is used by the company’s field assistants to monitor daily performance at the various Improved business processing and plantations and plants. This information is processed and operational control management displayed on a real-time dashboard at the Astra Agro head office 6. in Jakarta. Weekly data is analysed by the company’s Operation Centre, Reduced operating costs and which sends regular feedback and recommendations to site increased operational efficiencies operators. “It’s become easier for top management to track performance nationwide and send recommendations quickly, to improve efficiencies and decision-making,” Muhammad said. AMANDA (Aplikasi Mandor Astra) helps plantation foremen to track their daily activities, along with facial recognition technology to enhance coordination nationwide. Another app, Mills Excellence Indicator (MELLI) allows supervisors to input mill parameters, and report mill performance in real time. Head of Human Capital at Astra Agro, Eko Prasetyo Wibisono said that while technology now underpins the company’s business continuity, and plays a key role in improving cost management and efficiency; its digital transformation journey is only just beginning. “A world-class operation runs on two wheels – the wheel of innovation, and operational excellence. We expect that digitalisation will continue to accelerate the speed of both wheels in the months and years ahead,” Eko said. MELLI digitalisation room, at Astra Agro head office in Jakarta. Thistle Volume 1 | 2020 15
Front Runners Hongkong Land to Develop and Build a New CBD in Shanghai Hongkong Land (HKL) has secured a prime 23.1 ha. mixed-use site on the West Bund of Shanghai – one of the city’s most prestigious riverside locations – at a cost of approximately US$4.4 billion. Located alongside the Huangpu River South Extension area in the Xuhui District of Shanghai (known as the West Bund Project), the total site area measures 231,300 sq. m. and has an accountable gross floor area of 1.1 million sq. m, which will be used for Grade-A offices, a retail mall, hotels, residences, and a convention centre, in addition to cultural and sports facilities. “This is a big deal for Hongkong Land”, said Robert Wong, Chief Executive of HKL. “It’s essentially building a new CBD in Shanghai, which will be larger than our Central Portfolio in Hong Kong when it is completed in 2027. This project will enable New site acquisition – West Bund, Shanghai. HKL to utilise its unique experience in building and managing core financial districts, with well-connected office buildings, within vibrant urban settings.” This exciting project is also in line with HKL’s strategy of acquiring prime sites in key gateway cities across Asia for long-term growth and development. Boosting Green Power on Construction Sites Reduced air and noise pollution, construction downtime, and better cost-efficiencies are some of the prime benefits offered by a new electric-powered generator – named the Enertainer – launched by Gammon and a Hong Kong start-up, Ampd Energy. Enertainer is a first-of-its-kind battery storage and power generation system designed specifically for the construction sector in Hong Kong. Looking to the future, Gammon and Ampd Energy believe it has the potential to replace the noisy, dirty diesel-powered generators that are widely used today. Compared to a diesel generator, the Enertainer is nearly silent, emits zero fumes, and produces significantly less CO2 emissions. It also enhances productivity thanks to its auto-recharge feature and ability to operate for extended hours without the risk of noise prosecution. Enertainer – Next-generation clean power for construction sites. And unlike diesel generators, which must be run continuously, the Enertainer only delivers power when it’s needed. It also provides information about the utilisation of equipment on site, allowing project teams to improve planning and management. 16
Giant Goes Big and Bold in Store Redesign A bold new colour scheme – inside and out – is the first thing to grab shoppers’ attention when they enter Giant Malaysia’s hypermarkets, superstores and supermarkets. The renovations were part of a major 10-month makeover programme, completed at the end of last year. The revamp creates a modern shopping environment to better showcase Giant’s impressive product range, and makes shopping easier, faster and more convenient. Colour-coded signs simplify and clarify in-store product sections, and Flat Price Zones – featuring products set at fixed prices from RM1 to RM15 (US$0.24 to US$3.56) – are some innovative new additions. A Value Deals Block offering discounted products is also expected to be popular, as are new play zones for children. Shoppers will find it easier to navigate the hypermarket stores Fresh new look stores are a testament to Giant’s commitment to providing communities with a greater variety of fresh and quality products, at the best value. thanks to a new systematic layout design. Easy payment and a cashless transaction system – run in partnership with Touch ‘N Go and Boost – are offered in all stores. And product-wise, stores will feature more electrical goods and gadgets, as well as a new Giant homeware brand that includes cooking equipment, cutlery, and utensils. ASTRA Infra Advances Cipali Toll Project ASTRA Infra, LMS, CPPIB and UEM Group are working together to develop the Cirebon to Jakarta toll road which is expected to bring significant benefits to both cities. PT Astra Tol Nusantara (ASTRA Infra) has added to its Speaking about the deal, ASTRA Infra Group CEO Djap Tet Fa said, infrastructure portfolio by becoming the majority shareholder of “The partnership with CPPIB validates ASTRA Infra’s reputation as Indonesia’s PT Lintas Marga Sedaya (LMS), the concession holder a partner of choice for both domestic and foreign investors. This of a 117km. toll road connecting Jakarta to Cirebon. transaction also shows that there is significant interest from foreign investors to support national infrastructure development The move follows the recent signing of an agreement to purchase projects in Indonesia.” 55% of the shares owned by PLUS Expressways International Berhad. ASTRA Infra’s investment is part of the company’s ongoing focus on extending its infrastructure portfolio, especially in building toll ASTRA Infra, through its subsidiary PT Baskhara Utama Sedaya roads and toll road operations. (BUS), made the bid in partnership with the Canada Pension Plan Investment Board (CPPIB), who purchased the remaining 45% of LMS shares. ASTRA Infra, CPPIB and BUS will build the Cipali toll road together, a move that will optimise opportunities arising from increasing traffic and development of the area between Jakarta and Cirebon. Thistle Volume 1 | 2020 17
Front Runners COSAC-eLoading Solution Streamlines Ramp Operations COSAC-eLoading is the latest piece in our LEAN operation regime jigsaw. It expands Every second counts for the teams who unload and load the many the scope of COSAC-Plus to cover all freighter aircraft which visit Hong Kong. Hong Kong Air Cargo operational areas, resolves a number of Terminals Limited (Hactl) often handles more than 100 cargo-carrying historic inefficiencies in our ramp aircraft daily, and up to 16 at the same time, working through the processes, eliminates unnecessary night in all weather conditions. Even as the loaders work, there are often last-minute changes to the cargo booked onto a flight. paperwork and provides our teams and our customers with high quality Given these conditions, the cargo loading instruction is a vitally important document because it lists the cargo booked on the flight, information. and specifies the position in which each pallet or container must be loaded – taking into account the optimal use of space, weight and balance requirements, and any special needs of the cargo (for Hactl example, temperature-critical goods are loaded last and unloaded Senior Manager, Performance Enhancement first). Eric Poon Communication Challenge The old, paper-based system made last-minute changes difficult; any information updates from the ramp control office to ramp teams – and vice-versa – had to be communicated by walkie-talkie or Hong Kong is home to one of the busiest airports in the world delivered by messenger, leading to possible delays and errors. and Hactl’s ramp teams often: The Solution Unload and reload up to 240 tonnes of The Hactl Performance Enhancement team recently collaborated with cargo per aircraft in all weather conditions their Information Services and operational colleagues to develop a new ramp operating system, to improve communications, streamline loading, and reduce the manpower needed to process each aircraft. Together, they created COSAC-eLoading a new mobile app suite and Turnaround time is often two hours or less QR code deployment solution that integrates with COSAC-Plus, Hactl’s community system for air cargo. The new integrated solution’s key benefits include: Processing up to 16 wide-body freighters simultaneously is a common scenario • Instantaneous updates to the load plan, and live feedback from the ramp on loading progress, delivered via mobile devices • Verification of airline instructions against the flight manifest to highlight discrepancies and so reduce the potential of cargo missing its flight • A paperless process that virtually eradicates messages running between aircraft and Load Control • Automated Cargo Chain Mapping logs the position of every cargo unit before it is towed to the aircraft. When it arrives, the supervisor simply scans the unit’s QR code to mark its parking location on the ramp • A dynamic pick list showing units’ correct loading order and ramp locations, significantly reducing retrieval and loading time • A Final Check cargo report ensuring all cargo is loaded correctly Automated mapping of the cargo’s ramp location cuts loading time. 18
Pizza Hut’s a Hit with Yangon’s Shwe Pyi Thar District Pizza Fans Pizza Hut’s Cheese, Pepperoni, Hawaiian, Seafood, Meat Supreme pies and more, are fast becoming the pizzas of choice throughout Myanmar. Diners living in Yangon’s Shwe Pyi Thar district are the latest to enjoy its delicious offerings with the opening of Pizza Hut Myanmar’s (PHMM) 11th store, late last year. Operated by the Jardine Restaurant Group and local joint- venture partner City Holdings, PHMM has grown quickly since it was established in 2015, and aims to operate 15 pizzerias by the end of this year. The opening party for Pizza Hut Shwe Pyi Thar was a colourful western-movie themed event and included the presentation of an award from YUM! (the franchisor) to the PHMM team for All smiles: The PHMM team sets a record for the lowest store capex managing and delivering the most economical restaurant with an all-in investment cost of $85,000 for Yangon’s Shwe Pyi Thar district Pizza Hut. opening of its kind in Asia (total store capex of US$85,000). Grab a Coffee and Take a Moment at 7Café Hong Kong’s always on-the-go citizens certainly love their coffee which is consumed everywhere from specialist bars to cafes, restaurants and street carts. 7-Eleven believes a ‘cup of Joe’ is best enjoyed when consumers take the time to savour their coffee in a comfortable space. With this in mind, the company recently underwent rebranding and launched its new look 7Café counter in 332 stores across Hong Kong. Next level customer engagement The new look will help 7Café get closer to its target customers – nearly 47 cups of coffee distributed in 60 seconds, over a seven- including Millennials with busy, hectic lifestyles. 7Café are hour window. positioning themselves as great spots to unwind and re-energise – with the catchy mission statement ‘Grab a coffee. Take a New flavours, such as a sweet potato and red bean latte and moment’, 7Café slogan. flavoured milk were also launched, as was a three-day ‘buy one-get one free’ offer to promote 7Café’s customer-friendly The ‘kick-back and relax’ message was supported by an pricing and convenience. accompanying Autonomous Sensory Meridian Response (ASMR) video, featuring whispers and coffee making sounds, that has Hot and strong response already generated more than one million views on YouTube. The relaunch was a resounding success, generating high levels of To engage customers, immersive Instagram stories, illustrating awareness for the new 7Café and strong sales during the various moments to grab a coffee, were also developed for the promotional period. launch. And a limited edition 7Café x niko and... coffee mugs – Overall sales increased 50% and Per Store Daily sales rose by designed in collaboration with hip Japanese fashion brand, niko 50%. The campaign also generated widespread media coverage and... – were also launched to target teen and Millennial (traditional and online media) with more than 260 stories and customers. photos published. Customers also signaled a strong intension to These activities were backed by a sampling programme where visit and buy coffee – a 55% increase with a corresponding 74% 20,000 free cups of 7Café coffee were distributed via an increase in brand likes for 7Cafés, where 7-Eleven is the most interactive chatbot. The chatbot triggered a great response with extensive convenience store network in Hong Kong. Thistle Volume 1 | 2020 19
Front Runners Get Set for Summer with New Mercato Store a Haven KFC Spicy Hot Chicken for Penang’s foodies and Ice Cold Local Craft Beer KFC recently launched its own range of Colonel Craft Beers to pair with its latest crispy, hot and spicy chicken recipe and it’s a combo that’s wowing the taste buds of Hong Kong foodies and fans alike. The fast-food store has collaborated with a local micro brewery, Hong Kong Whistle, to create the Colonel Craft Beer range, which includes an IPA and Pale Ale Citra, which are only available at the KFC Concept Store in Causeway Bay, Hong Kong. Partnering is also a feature of the ‘Crispy Hot and Spicy Chicken’ recipe, which was developed with chipmaker Lay’s, using the brand’s flavour-packed chips as the Customers shopping for their everyday needs at the curated and expanded aisles in Mercato Gurney Plaza. chicken’s crisp coating. This same spicy recipe adds zing to the new KFC X Lay’s BBQ deep-ridged potato chips, available at Featuring more than 2,000 products including cheeses, meats, 7-Eleven stores (75g bag) and Wellcome supermarkets cold cuts, spices, wines, and beers from around the world, the (184g bag) throughout Hong Kong. new Mercato Gurney Plaza in Penang has something for all local foodies to discover and enjoy. “Mercato believes in bringing quality, value and a wholesome retail experience to customers, and we are excited to extend this commitment across Penang with the opening of our new store, and third outlet in Malaysia,” said Mark Scates, Dairy Farm Group Director of Store Operations, Malaysia & Singapore. “We have always put customers’ first and strive to understand customers’ preferences. We recognise that premium supermarkets have become increasingly popular, especially among middle-class Malaysians wanting a variety of imported products,” he added. In addition to premium meat such as Wagyu A5 and OBE organic beef, Mercato also has a wide range of ready-to-cook meat, seafood and ready-to-eat meals. The in-store bakery also includes a section that bakes and serves the popular D24 Durian Puffs. Mercato Gurney Plaza is the third Mercato store in Malaysia, with two others, Mercato Pavilion and Mercato Hartamas, located in Kuala Lumpur. You better beer-lieve it! KFC HK is launching its own Colonel Craft Beers partnering with a local brewery. 20
Cycle & Carriage Myanmar Opens FUSO 3S Showroom in Yangon Double celebrations were in order when Cycle & Carriage Myanmar, together with Daimler Trucks Asia, opened their second state-of-the-art 3S facility in Yangon, on 16 January 2020. The event also marked the launch of FUSO high-performance trucks (ranging from four to 65 tonnes). It’s the first time these vehicles, offering best-in-class fuel economy and safety features are being sold in Myanmar. Speaking about the new range, Goo Tiong Kwan, Senior Manager and Head of Mercedes-Benz Commercial Vehicles and FUSO at Cycle & Carriage Myanmar said “With FUSO, we promise to offer our customers a reliable, high-performing and cost-efficient truck in any terrain, so that they can focus on growing their businesses. Our aim is to offer an exceptional trucking experience with a high return on investment for our valued customers through both (From left) Stephen Reid, Senior Manager & Head of Aftersales at Cycle & sales and proactive after-sales service.” Carriage Myanmar, Adrian Short, General Manager at Cycle & Carriage Myanmar, together with U Aung Moe Kyaw, Amit Bisht and Goo Tiong Kwan – jointly officiated the opening of the FUSO 3S showroom. Leading the official opening ceremony were U Aung Moe Kyaw, the Managing Director of Automobile Alliance Co., and Amit Bisht, Head of Regional Centre Southern Asia at Daimler Commercial Vehicles South East Asia, who were joined by key representatives from Cycle & Carriage Myanmar. The 1672 sq. m. showroom provides extensive new service facilities, sales and spare-parts support for customers. It features nine function rooms in the main showroom, and two more in the after-sales area – including a driver rest room – and five spacious work bays. JEC Upgrades Shek Wu Hui Treatment Works Jardine Engineering Corporation (JEC) Hong Kong has won a contract to help ramp up the treatment capacity, boost energy efficiency and install new technology at the Shek Wu Hui Sewage Treatment Works. As part of the Stage 1 main works upgrade, the JEC team will install new operating systems, and commission and test the electrical and mechanical sludge treatment facilities to increase the Shek Wu Hui 3 treatment capacity by 35,000m per day. The facility’s 3 current design capacity is 93,000m per day. This will 3 eventually increase to 190,000m per day when all stages of the renovation are completed. To increase energy efficiency at the facility, JEC will JEC targets greater capacity and energy efficiency with Stage 1 upgrade of the Shek Wu Hui Sewage Treatment Works. also install a thermal hydrolysis pre-treatment system, and sidestream treatment facilities (a first for Hong Kong). JEC’s Stage 1 project for the government’s Drainage Services Department is expected to be completed in 2024. Thistle Volume 1 | 2020 21
Celebrating Success Hongkong Land Cements ‘Platinum’ Status as Sustainability Leader Hongkong Land (HKL)’s entire portfolio of 12 commercial properties in the city’s Central business district have now been awarded Platinum certification – the highest rating for excellence in sustainability. HKL received certificates for its portfolio at the recent BEAM Plus Certification Ceremony 2019, organised by the Hong Kong Green Building Council (HKGBC) and BEAM Society Limited (BSL). The event recognises efforts by Hong Kong’s outstanding property designers and developers to encourage sustainability. Certification is based on the latest BEAM Plus Existing Buildings standards set by the HKGBC. Andy Yeung, HKL’s Director and Head of Technical Services & Sustainability accepted the Company’s certificates on the night. Here, he shares more about the significance of the awards and some of the reasons behind HKL’s success in developing award-winning sustainable commercial properties. Andy Yeung, Director and Head of Technical Services and Sustainability (fifth from left), Andy, congratulations on the Platinum certifications, what does it celebrates HKL’s Platinum certified portfolio of properties, in Central at the recent HKGBC and BSL award ceremony. mean for the company and your tenants? Having Platinum certification demonstrates HKL’s commitment to upgrades are needed to maintain a building’s standing. creating green buildings and sustainable developments. As we design, Since 2008, we have embarked on a series of upgrading projects and construct and manage property, we strive to minimise our social and adopted best practices in operations to reduce 30% of our carbon environmental impacts. The award also recognises our efforts towards footprint. implementing green initiatives and applications, as we adapt our practices to meet more green building management standards. We have also launched different recycling programmes to reduce Collaboration and support from our tenants was equally important in waste diverted to landfill where we have reduced waste by 30%, when helping us achieve certification for our buildings in Central. Like us, compared with five years ago. Moreover, we have provided an our tenants know we need to work together as partners to create a excellent indoor environment in terms of air quality, water quality and more sustainable world. thermal comfort for our tenants, staff and visitors. Applying innovation and technologies also helped our successful Platinum certification What are the key benchmarks for BEAM certification? clean sweep. The certification of BEAM Plus Existing Buildings is a comprehensive Sustainable design and construction is a very important issue today, green building assessment rating which measures the actual what are some of the standout green design features in the HKL’s HK performance of a building and evaluates its facility management portfolio? practices. The assessment is conducted by a group of independent third-party assessors, who appraise everything from management to Here at HKL, we recognise that developments and buildings must operations and maintenance. This includes energy and carbon, water, adopt the practice of decarbonisation. What this means is non-eco- indoor environmental quality, materials and waste, operations and friendly facilities in existing properties must be continuously management and innovation. Apart from the overall performance enhanced. Specific examples that can be found in our properties are score, excellent performance for each specific area is also taken into lift modernisation, upgrades to LED lighting and more energy-efficient consideration for a Platinum project. chillers, plug fans, and the application of innovation and IoT technologies, and centralised monitoring and control with big data In your opinion, what helped all 12 buildings gain Platinum analytics. certification? We also offer our tenants comprehensive waste recycling programmes Since BEAM is a comprehensive assessment, it requires developers to for paper, aluminium cans, plastic bottles, rechargeable batteries, implement numerous improvement works and green initiatives across fluorescent tubes, glass bottles and e-waste. Additionally, we have different assessment aspects to achieve a Platinum rating. We need to also installed food waste decomposers in our Central Portfolio to remember that with older buildings, the infrastructure was created reduce the amount of food waste diverted to landfills. with fewer requirements than today’s high standards, so a number of 22
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