Asia Ireland Business Yearbook 2017 www.asiamatters.eu 1 Asavie wanted to simplify connectivity. We helped them meet the right people. Asavie had the ambition to innovate with the Internet of Things before most people had even heard the term. Partnering with Enterprise Ireland gave them the access to similarly brave people and the support to grow from a tech start-up, to a tech grown-up. If your business has the ambition, we’ll help you take it global. Go to ambition.enterprise-ireland.com #GlobalAmbition 2 Asia Matters© EI_GlobalAmbition_Asavie_Asia_Matters_brochure_210x273_FA.indd 1 21/03/2017 13:30 FOREWORD Realising opportunities in our deeper bonds By 2025, Asia is likely to account for almost half of the world’s economic output. At a time of significant challenge and change in our traditional trade and investment markets, the opportunities for Ireland presented by this continuing transformation are significant. Recognising this, a key pledge in the Programme for Partnership Government is the commitment to develop a new cross-sectional, whole-of-Government strategy for the Asia Pacific region. The strategy will capitalise upon Ireland’s efforts to progressively deepen ties with Asia in recent years and set the direction for Ireland’s engagement in the region over the next five years. This will ensure that we continue to support Irish companies’ activities in the region and build resilience into our economy by diversifying our export markets and broadening our FDI sources. I am pleased to say that this Government is continuing to strengthen and deepen our political relationships with counterparts in Asia. Ireland now has 13 diplomatic missions in Asia, who alongside our state agencies are working to raise Ireland’s profile in the region and promote Irish interests and strengthen ties across trade, tourism investment and education. 2016 saw several high-profile visits to the Asia Pacific region, including the State Visit of President Higgins to Vietnam and Laos. In July, Minister Flanagan represented Ireland at the 11th Asia Europe Meeting (ASEM) Summit in Ulaanbaatar, Mongolia, and had a series of meetings with Asian counterparts. There were also visits by a number of Ministers to various countries in the region to promote Ireland’s sectoral interests. These visits serve to broaden and deepen Ireland’s relations with countries in the region and an ambitious programme of both inward and outward visits is taking place for 2017. We are firmly committed to developing deep and lasting relationships in Asia that will serve Ireland for generations to come. I am delighted with the progress achieved in 2016 and look forward to seeing these ties strengthened in the coming year. Enda Kenny TD Taoiseach, Prime Minister of Ireland 3 22 Contents Brand Ireland as a competitive advantage in Asia Niall Dowling, Atomic and Asia Matters 6 Alan Dukes On why Asia Matters 40 Exporting Julie Sinnamon, 26 Volatile is the new normal CEO Enterprise Ireland Colin Ellis, Moody’s 42 Ambitious growth planned for the financial services sector Eoghan Murphy, Minister of State for Financial Services The Asia Ireland Chairman: Alan Dukes Business Yearbook Executive Director: Martin Murray is published by Director of Corporate Affairs: Samantha Hobbs 4 Asia Matters© 60 The post-Brexit Asia Opportunity for Irish agribusiness Michael Creed, Minister for Agriculture Food and the Marine 82 Tourism Ireland China provides welcome opportunity for Tourism 88 Foreign Direct Investment Martin Shanahan, CEO IDA Ireland 100 Confident Cork “Big on Life” 110 China Country Profile 104 New outward focus spells huge A twinning relationship opportunities Brendan Carr, Lord Mayor of Dublin Publisher: Martin Murray Editorial Team: Samantha Hobbs, Frank Dillon Design Team: Tapdesign, Atomic Printer: Tagline To read more visit: www.asiamatters.eu Tel: 00353 1 906 5333 [email protected] 5 INTRODUCTION focus on the western Anglophone world has served Ireland well Why Asia Matters to date but the new reality of change demands a paradigm shift in mindset. China alone is targeting $750 billion in outbound FDI by the conclusion of the current five year plan in 2020. In this context, for Ireland there is an urgent need for a heightened focus on opportunities in Asia, which accounts for 40% of global GDP and over 60% of global Alan Dukes, Chairman Asia Matters consumers who need top quality products and services. Ireland must seek increased opportunities to play an increasing role in this huge and diverse market. I would like to pay tribute to the late Dr. TK Whitaker, former Secretary General of the Department of Finance and Governor of the Central Bank, who recently passed away at the age of 100. From the late 1950s he played a pivotal role in the economic development of modern Ireland, not least by bringing about the kind of paradigm shift in economic and trade policy that we need By Alan Dukes to repeat today. Dr. Whitaker encouraged us to look beyond our shores for the economic prosperity we desired as a nation. Ireland has achieved enormous success in business partnership with the western Anglophone world. The challenge before us is to communicate the Ireland proposition and establish strong relationships in a new way that resonates as successfully within key Volatility in global markets is the new business markets in Asia. normal. With Asia likely to account for Why Asia Matters for Financial Services almost half the world’s economic output From Japanese global corporates seeking to invest cash reserves by 2025, Ireland’s engagement with Asia is prudently to Chinese enterprises rapidly scaling and globalizing, more important than ever before. there are very significant needs for sophisticated investment vehicles for Asian clients. Combined with rapidly rising consumer In this special edition of the 4th Asia Matters Asia Ireland Business classes in China, India and Indonesia along with other ASEAN Yearbook, we deliver unique insight from our members, leading countries, the demographic scale of opportunity is unprecedented. government policy makers, CEOs and thought leaders on the future Within the near future over a half of global wealth and over three of Asia - Ireland business growth in the decade immediately ahead. quarters of global customers will be in Asia. This has clear and The importance of nation branding and a lack of awareness positive implications for the financial services sector. of Ireland in Asia were recurrent themes during our recent Asia Why Asia Matters for the future of Ireland’s International Summits. We address these issues here in one of our key articles, Financial Services Brand Ireland as a Competitive Advantage in Asia. The financial Global Banking and International Financial Services have undergone services brand IFS 2020 has been a huge success and one from truly historic and far reaching transformation in recent times. This which other industries could learn. We are delighted to bring transformation has been driven by two main factors: you an account of the ambitious growth plans for that sector by First, the Global Financial Crisis has forced banks to undertake Eoghan Murphy TD, Minister of State for Financial Services in ‘back to basics banking’ with an intense focus on the cost of capital. Ireland. Second, the profound disruption of traditional banking services Our sincere thanks, as always, to the Taoiseach for his Foreword by mobile and digital entrants to the market including, inter-alia to the Yearbook and to all those stakeholders in the Asia Matters Fintech start-ups, international payment providers and leading tech community who shared their expertise. and social media companies. Why Asia Matters for Ireland If this transformation were not sufficiently disruptive for many Ireland will inevitably be affected by recent and prospective of the Global Banks and International Financial Service Providers changes in global geopolitical risk. Brexit, the new US located in Dublin’s IFSC, we now have to add into the mix two administration and diminished enthusiasm for FTA’s will be among seismic geopolitical events namely, Brexit and the Trump presidency the difficult challenges for exporting companies that need to look which are transforming economic, financial and business links to new international markets. There will clearly be challenges for between Ireland and the USA, between Ireland and the UK and both inbound and outbound FDI but there will also be potential between each of those countries and the EU, of which Ireland firmly for positive developments. The historical Irish economic model of remains a member state. 6 Asia Matters© L-R Martin Murray, Executive Director Asia Matters, HE Dr Yue Xiaoyong, Ambassador of China to Ireland, Charles Flanagan, TD Minister for Foreign Affairs & Trade, Alan Dukes, Chairman Asia Matters. What does this mean for Ireland’s International Financial Services offering to Asian Banks and Asian Financial Institutions? In my view, there is tremendous potential for substantial and positive changes in those Ireland - Asia Banking and International Financial Services relationships. China’s launch of its ‘One Belt One Road’ OBOR plan to connect Asia to Europe mirrors the historical concept of the Silk Road. This Belt Road Initiative will have significant global economic implications. I believe that Ireland will establish new connections with Asia for its International Financial Services value proposition on three distinct levels: (a) direct Ireland - Asia level, (b) Ireland – Europe - Asia level and (c) Ireland - UK - Asia level. On that basis alone, I think we can agree that Asia Matters for the future of Ireland’s International Financial Services Industry. L-R Martin Murray, Executive Director Asia Matters, Julie Sinnamon, CEO Enterprise Ireland, Alan Dukes, Chairman Asia Matters. Why Asia Matters Matters Asia Matters as Ireland’s only Asia think tank, will continue to prioritise the importance of the financial services sector and again bring our FinTech Forum to Asia. Our key circles of competency include financial services and fintech, food and agritech, ICT and disruptive innovation, FDI and global talent, higher education and research and tourism and location branding.