SEPTEMBER 2016 www.kepcorp.com/ekeppelite Committed to growth 5 Sustainability steward 10 Making a difference 28 Conserving our biodiversity MCI (P) 032/02/2016 6 5 20 Contents SUSTAINING GROWTH Realising value 4 Tapping insights 22 Committed to growth 5 Logistics leadership Industry engagement 6 Growing with Brazil 23 Bolstering the Board 8 EMPOWERING LIVES Acing the course 24 Saigon showcase 9 Dedication to defence Bridging lives Forging closer ties 25 Sustainability steward 10 Netting the prize 26 Building partnerships 12 Warm welcome for new Keppelites Crisis-preparedness 14 Keppelites Around the World Embracing the Indonesian way of life 27 Enhancing corporate governance 15 NURTURING COMMUNITIES SPECIAL FOCUS Making a difference 28 Conserving a freshwater forest wetland in the city 16 Brazilian rhapsody 29 Hallmarks of excellence 19 Carnival in the Eco-City Taking the helm Sharing mid-autumn cheer 30 Promoting corporate social responsibility 20 Green advocate Keppel Volunteers Moon-gazing fun 31 Spurring Innovations Specialised capabilities 21 BACK PAGE Specialised conversion 32 Cover image: Mr Lawrence Wong (second from right), Minister for National Development and Second Minister for Finance; Dr Lee Boon Yang (far right), Chairman of Keppel Corporation; Mr Loh Chin Hua (third from right), CEO of Keppel Corporation; and Mrs Christina Ong (left), Chairman of NParks, planted a Keppel Tree at the Keppel Discovery Wetlands at Singapore Botanic Gardens. Published for people in the Keppel Group by the Group Corporate Communications Division, Keppel Corporation Limited, 1 HarbourFront Ave, #18-01 Keppel Bay Tower, Singapore 098632. Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore 159456. Editorial Advisor Ho Tong Yen Editor Say Huan Yuan Editorial Committee Ang Lai Lee, Brian Higgs, Casey Chiang, Cheryl Goh, Chua Sian Howe, Donald Sng, Eileen Tan, Elizabeth Widjaja, Gabriela Hott Soares, Grace Chia, Guo Xiao Rong, Han Sufen, Hayley Teo, Hoo Yao Lin, Ivana Chua, Jayne Yeo, Kevin Ho, Liang Hui Hui, Lee Wan Jun, Mia Liu, Priscilla Chong, Razali Maulod, Ricky Ling, Roy Tan, Serena Toh, Song Jia Jia, Sue Ann Huang, Tang Yi Bing, Teo Soo Kiam, Teri Liew, Tracy Pham, Woon Pek Yong, Yolanda Guo Keppelite I September 2016 CO REG NO: 196800351N Editorial A learning culture Many of us spent much of our youth in Underscoring Keppel’s commitment to nurture classrooms acquiring new knowledge. Then, some human capital, the Group makes significant of us may have believed that we would learn a investments to refine the skills and competencies set of skills that would serve us well throughout of our people. Training programmes across the our working lives. That may have been true many Group are customised to cater to different career decades ago. We now know that our skill sets stages and industry needs. Since its inauguration have a short and increasingly shorter lifespan as in April 2015, Keppel Leadership Institute has the world is changing at an accelerating pace. provided a spectrum of enriching courses and Douglas Thomas and John Seely Brown, authors of events as well as collaborative spaces for thousands the book, A New Culture of Learning, hypothesised of Keppelites from Singapore and overseas. There that today, “the half-life of a learned skill is five are also avenues for open dialogue with senior years”. This means half of what we learnt five years management that enable Keppelites to tap on the ago may now be irrelevant and almost everything expertise and experience of our leaders, such as we learnt 10 years ago may be obsolete. the annual Global Keppelites Forum, as well as the recent Keppelthon and Leaders Dialogue organised At an organisational level, a strong learning by Keppel Young Leaders. culture is a critical corporate asset and a source of sustainable competitive advantage. To be agile and However training is not just an organisational able to respond to ongoing change and disruptions responsibility. On an individual level, we must take readily, organisations need to value innovation, ownership and be responsible for our own learning training and development. and development. Beyond structured learning through courses and workshops, we need to adopt At Keppel, we are resolved to imbue a spirit of an open mindset and be constantly curious. We enterprise and culture of innovation to help us be can learn and grow by finding more efficient and resilient and future-ready. Even as we right-size our productive ways to do our jobs, innovate solutions, operations and resources during these challenging and not be afraid to challenge the status quo. times, we continue to invest prudently in research and development, improve our productivity and Whether individually or as a company, we will strengthen our core competencies. stay ahead of the game only if we can continue to keep abreast of new technologies to capture We are committed to nurture our talent pool and value, enhance the way we do things and sharpen encourage our people to grow to reach their full our competitive edge. potential. Keppelites are encouraged to upskill and pursue professional development opportunities. Globally, each Keppelite received 23 hours of training on average in 2015. Keppelite I September 2016 4 Sustaining Growth Growth Realising value Keppel Land China and Alpha Investment Partners (Alpha) have divested their 80% stake in Sparkle Bright Holdings Limited (Sparkle Bright) which owns Life Hub @ Jinqiao (Life Hub), a mixed-use development in Shanghai, China, to Star Champ Development Limited, a wholly-owned subsidiary of the Chongbang Group (Chongbang). Chongbang owns the other 20% stake in the development. The total consideration of the divestment is US$516.9 million. To capture greater value, Keppel Land China and Alpha worked with the mall operator to introduce new concepts and unique design layouts to Keppel Land China held a Life Hub to entrench its position as a leading lifestyle mall 42.5% interest in Sparkle Bright, while Alpha Asia recycle assets to seek higher high occupancy levels with of return of over 20% on the Macro Trends Fund II and a returns.” a good mix of international sale of the development. This co-investor held the and local retailers. Asset is testament to our ongoing remaining 57.5% interest. Located in Shanghai’s Pudong enhancement works include efforts in ensuring that Keppel Land China and District, Life Hub, which the upgrading of facilities our investment discipline Alpha are wholly-owned commenced operations in as well as reconfiguring achieves the best returns for subsidiaries of Keppel end-2009, features about the basement to optimise our investors.” Land and Keppel Capital 114,730 sm gross floor area pedestrian flow. respectively. Keppel Land (approximately 1.2 million The retail mall is 97% leased China’s 42.5% share sf) of retail shops as well as Ms Christina Tan, CEO of while the office tower is fully of the consideration for a 10-storey office tower with Keppel Capital and MD of occupied. the divestment is about a retail podium. Alpha, said, “With rising US$219.7 million. affluence, there has been The Group expects to Since acquiring the property a shift in consumption and recognise a gain of Mr Ang Wee Gee, CEO of in 2013, Keppel Land shopping habits in Shanghai. approximately $73 million Keppel Land, said, “Keppel China and Alpha have To capture greater value, we from the divestment. keppelite Land China’s collaboration been working with the mall introduced new concepts with Alpha reflects how operator to continuously and unique design layouts different business units are enhance the tenant mix to Life Hub to entrench its working closely together and shopping experience. position as a leading lifestyle to harness the collective The active and innovative destination mall. strengths of the Keppel asset management and Group. The divestment is enhancement efforts have “Thanks to these value- in line with Keppel Land’s contributed to the retail adding efforts, we have been strategy to continually mall achieving consistently able to realise an internal rate Keppelite I September 2016 Sustaining Growth 5 Committed to growth In line with its strategy to mixed-use development will Keppel Land will hold a Regional Investments, grow its portfolio in Myanmar be about US$48.6 million 40% stake in the serviced Keppel Land, said, “We are with a focus on Yangon, (approximately $68 million). residences and office confident of the long-term Keppel Land entered into The collaboration follows components of Phase potential of Myanmar, and are a conditional joint venture Keppel Land and Shwe Two of Junction City, committed to participating agreement with Shwe Taung Taung’s first joint venture comprising a gross floor in and contributing to the Group, one of Myanmar’s to develop Junction City area of about 50,000 sm. growth of the country. reputable conglomerates, Tower, a 23-storey Grade A The development will house to develop premium serviced office building in Phase One the first Sedona Suites in “Yangon continues to residences and offices in the of Junction City, which was Myanmar comprising about attract more multinational next phase of development topped off in May 2016. 260 serviced apartments. companies and foreign for Junction City in Yangon’s When completed early next Construction of Phase Two direct investments. We central business district. year, Junction City Tower will of Junction City is expected believe that our developments offer a net lettable area of to commence in 2018. will meet the needs for Keppel Land’s investment about 33,400 sm of prime quality accommodation and in the next phase of the office space. Mr Ng Ooi Hooi, President, business spaces.” Junction City is strategically located at the intersection of Shwedagon Pagoda Road and Bogyoke Aung San Road, and will comprise Grade A offices, the five-star Pan Pacific Hotel, a lifestyle retail and entertainment centre as well as serviced residences.