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Cr Ong Post Travel Report, Economic Forum, Malaysia Page 1 of 8 COUNCIL REPORT Agenda Item 7.1 15 December 2009 CR ONG POST TRAVEL REPORT, ECONOMIC FORUM, MALAYSIA Report by Councillor Ken Ong Purpose 1. To report to the Council on the travel undertaken by Cr Ken Ong to Kuala Lumpur, Malaysia associated with the inaugural World Chinese Economic Forum (WCEF) for the period 16 and 17 November 2009. Recommendation 2. That Council: 2.1. note the report and the incorporated summary of benefits and outcomes of Cr Ong’s participation in the World Chinese Economic Forum; and 2.2. request that management review the suggested actions contained in the report and provide an assessment to Councillors in the form of a briefing paper. Background 3. On 29 October 2009, the Lord Mayor approved the proposal for Cr Ong to participate in the WCEF between 16 and 17 November whilst on private travel in Kuala Lumpur, Malaysia. 4. Cr Ong was invited to participate in the WCEF as a guest speaker for one of the sessions titled ‘The Chinese Diaspora Worldwide – Entrepreneurship and Corporate Social Responsibility: Key Challenges Ahead’. Due to time constraints, this proposal was unable to be submitted to the Finance and Governance Committee as the next scheduled meeting was due to take place during the forum. In accordance with the Councillor Expenses and Resources Guidelines, the approval of the Lord Mayor was sought and obtained. Key issues Details of travel 5. Cr Ong attended the WCEF on 16 and 17 November 2009. 6. The WCEF event was organised by the Asian Strategy and Leadership Institute (ASLI) which was set up by the former Prime Minister of Malaysia, Tun Dato Seri Dr Mahathir Mohamad when he was in office. 7. The WCEF was attended by a large number of senior Chinese business people, Government representatives including Ministers, MPs, Mayors (from China), Academics and Professionals from Malaysia, Singapore, Hong Kong, China, Taiwan, Indonesia, Australia, New Zealand, Canada and the United States of America. There were over 500 participants at this WCEF event. 8. Copies of some of the media articles relating to the WCEF are included in Attachment 1. Page 2 of 8 Councillor Expenses and Resources Guidelines 9. The Manager Governance Services has confirmed that the travel accords with the requirements of the travel guidelines outlined in the Councillor Expenses and Resources Guidelines. Outcomes/benefits 10. Involvement in the WCEF allowed the Council to participate in discussions, exchange information and establish further links in forums that may assist business development in the Asian region. Some of the key observations, outcomes and benefits include the following: 10.1. there were many presentations covering China’s economic growth, business opportunities, the role of the Chinese Diaspora, new green technologies as well as trade opportunities between China and other countries in the region; 10.2. on the item discussing China’s position as the World’s third largest economy, the focus of China’s trade away from Europe and the USA raised hopes of more opportunities for the South East Asian region. For new investments and projects in China, the Mayors of the municipalities are the key to doing business in their cities; 10.3. the Chinese Diaspora should be used to set up a global network which could be utilised to increase business linkage and share ideas and opportunities which are mutually beneficial; 10.4. the Malaysian Government promoted its role as a regional hub for transport and freight of goods in Asia. There were discussions of the role of the Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC) and East Asia in terms of linkages and the China – ASEAN free trade zone which is due to be signed by the end of 2009; 10.5. issues faced include the lifting of tariffs which were opposed by some business Councils in ASEAN and Trade Unions also opposed this. There was also discussion of region wide Business Councils to address concerns; 10.6. China’s economic representatives discussed the need of other countries to understand local China business culture in response to comments about dealings which Chinese local government and businesses. China is now promoting opportunities in the North East and Western regions of China and encouraging more delegations to China; 10.7. other initiatives proposed include greater support for Small and Medium Enterprises (SME’s) and Small Medium Industries (SMI’s) by Governments to expand into the region with open markets. This will provide opportunities and benefits to SME’s and SMI’s and enhance ties; 10.8. in most topics covered, the Chinese Diaspora was seen as the key to developing the business linkages and building new businesses between the countries of the region; 10.9. there were also many presentations that discussed corporate social responsibility which included the issue of environmentally sustainable practices and design. This issue is still in infancy stage with the recent introduction of the Green Building Index which appears to be based on the Australian Green Star rating. There are opportunities for Australian businesses and in particular Melbourne businesses to develop and establish a presence due to its leadership position in the region; 10.10. the organisers, ASLI, have discussed the possibility of staging the 2011 WCEF in Melbourne as many of the ASLI executive studied in Melbourne in the 1970’s and 1980’s; and 10.11. such an event in Melbourne will require the involvement of federal, state and local government support, as well as key leaders of the local Chinese business communities. 2 Page 3 of 8 Suggested Actions 11. In advancing opportunities arising from participation in WCEF, the following suggested actions are proposed for assessment and advice from management: 11.1. invite the ASEAN Delegation to visit Melbourne; 11.2. possibility of setting up a local Chinese Australian Business Council which are actually managed and led by local Chinese community members, with Chinese Australian Government members as patrons; 11.3. invite key ASLI executives and the Chinese Government equivalent to Melbourne for talks in preparation for the 2011 event; and 11.4. investigate business delegations to China that will result in export opportunities and foreign direct investment into Australia. Cost 12. There was no cost to Council. The conference organisers funded two night’s accommodation and other expenses were funded privately by Cr Ong. Attachment: 1. WCEF Media Articles 3 Page 40 of 8 THE MALAYSIAN RESERVE TUESDAY, NOVEMBER 17,2009 CORPORATE MALAYSIA China aims to be world's EVERGREEN FIBREBOARD I3HD 2nd largest trading power 3009 The nation has been the third largest trading power in the world since 2005, with total imports and exports volume reaching US$2.56 trillion in 2008, 17.8% higher than the previous year by LEE CHERNG WEE CHINA is on its way to b, come the world's second lar1 est trading nation if its grows momentum continues. "It is normally expecte that foreign trade growt 3009 3 8' rates would be 1.5 to tw times that of China's econon REVENUE RM223.71 million RM330.77 DIII1on ic growth. That means if Ch NET PROFIT/LOSE 138492.37 mil ' n RM89.95 m Hon (From left) ASLI CEO Datuk Dr Michael Yeoh, Dr Koh, Lee and Mah Sing group MD/ chief executive Tan Sri na's economy grows by 8% 1 Leong Hoy Kum at the World Chinese Economic Forum yesterday EARNINGSSt.OSSPERSHARE 44.38 sen 43.22 snn 10% per year in the coming I to 15 years, its foreign trad DIVIDEND - . would grow by 12% to 20' per year. "It is not a dream that Ch 3 Q09 3Q 8 na would overtake German , i , REVENUE LI1lR'.11/1 6 rn, I,441 RMI00.75 billion 1 and become second large: 1 trading power in the forese, NET PROFIT/LOSS 6,51626 rn,II.n RM7.18 million able future," said Zou Mir IEARNINGS/LOSS PER SHARE 6.66 sen grong, executive vice chai 15 sen man of the China Nationi DIVIDEND Committee for Pacific Ea nomic Cooperation (CNPEC yesterday. Zou added that China foreign trade may decreas 15% this year as its trad tional export market: namely the US, Europe an Japan, contract too quickl: But the decreasing rate is Ix ing narrowed month b month, and the trade vo 3 Q09 3Q08 ume may be stabilized i L. 2010, he said in a presents REVENUE RI.E41.17 rE5E.on HM38 45 m5hon tion during the World Ch INE7 PROFIT/LOSS RM2.24 million RMI.24 raion nese Economic Forum i _.. EARNINGS/LOSS PER SHARE 0.315 sen 0.37 sen Kuala Lumpur yesterday. previous year. in the world behind the U Institute (ASLI). 1 China has been the thir CNPEC expects China's and Japan. In the press conferenc DIVIDEND largest trading power in th economy to grow 8.2% this "China has continuousl, Minister in the Prime Mini world since 2005, with tots year and 9.5% next year. In stepped up its participatioi ter's Department Tan Sri YSP SOUTHEAST ASIA HOLDING ISHD imports and exports volum 2008, China's gross domestic in regional economic cooper Koh Tsu Koon said the forur 3 Q09 3QOB' reaching US$2.56 trillion i product (GDP) stood at ation. The building of China came at the right time aft, 2008, 17.8% higher than th US$4.4 trillion, third largest Asean Free Trade Area is gc Chinese President Hu Jintac UE 6E134.25 mill on 433 9 mlilion ing full steam ahead. Nex visit to Malaysia recently, wi NET PROFITILOSS RM3.39 RM3.44 mann year is the first year to imple nessing the signing of fis EARNINGS/LOSS PER SHARE ment the programme.
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