Inaugural Speech by Steven J DeKrey,
2008 AmCham Chairman

Face to Face With AmCham:
40 Years in Asia’s Business Capital
Inaugural Speech by Steven J DeKrey, 2008 AmCham Chairman

Twelve years ago, almost to the day I departed Florida en route to my new position at HKUST. During my layover in San Francisco I met an American businessman at a lounge. After I excitedly explained to him where I was moving to and about my dreams of building MBA programs for Asia, he shook his head in dismay.
He replied, saying, “Don’t you feel like a traitor, why would you move to Asia to help ‘them?’”
I looked at him and, very unusual for me, was speechless. With no appropriate response in mind, I looked at my watch and took my leave, mumbling something about catching my flight.
After arriving at the HKUST Business School, days after that encounter, I asked the Founding Dean, Yuk-Shee Chan, how I could best connect to Asian business leaders. Without hesitation he recommended that I become an active member of the American Chamber of Commerce. I joined days later, met Frank Martin, and found a home.
Our Chamber is fortunate to have a strong board of about 25 governors, a great group of some twenty-five committees, and an awesome AmCham staff, led by President Jack Maisano.
I look forward to an exciting year working closely with all of our leaders and members to consolidate AmCham’s gains from its 40 years’ history. Active participation in AmCham events and in the intellectual life of the Chamber is key to maintaining our organization’s leadership position in the Hong Kong community.
The economic environment of Asia and of Hong Kong has changed considerably since I moved here 12 years ago. Between 1997 and 2004, Hong Kong slipped into and then slowly worked its way out of the painful impact of deflation, induced by the Asian Financial Crisis.
China, meanwhile, has become a global economic powerhouse. Hong Kong has been much affected by China’s rise and has benefited from the major changes that have taken place in China over the past decade. China’s Individual Travel Scheme has freed an outpouring of millions of high-spending tourists into the territory. Its CEPA free trade agreement has freed several industries of tariffs and non-tariff barriers to trade in both goods and services. And its relaxed domestic financial controls have allowed Hong Kong to become the world’s fastest-growing center of IPO’s for mainland companies and its only external ‘banker’ of RMB transactions.
From an economic and business perspective, Hong Kong entered its second decade under Chinese sovereignty in good shape, with excellent prospects for a strong future.
Validating that is AmCham’s own annual Business Outlook Survey, within which 98 per cent of respondents said they are “satisfied” and “very satisfied” with Hong Kong’s performance in 2007 and a similar percentage see a bright business outlook going forward. Over half will be growing their staffs.
Economic growth will continue. Cross-border opportunities look set to expand. Hong Kong continues to develop as a major international financial hub and an important tourist destination.
Best of all, Hong Kong will continue to be a great place for foreign companies to do business. Our Chief Executive, Donald Tsang, made a point to emphasize that in his formal Policy Address, last October.
And what about AmCham? Being a business school dean and a management professor, I like to start corporate descriptions with a ‘mission statement.’ AmCham’s has two parts and has guided us for almost 40 years:
Foster commerce among the US, Hong Kong and China and enhance Hong Kong’s stature as an international business center.
AmCham has matured and changed over the past 39 years. It has developed itself as a key source of information and guidance for American businesses trying to understand how Hong Kong can act as a gateway to doing business in Mainland China. Our many informed speakers, seminar panels, publications, and business briefings were and remain very popular sources of information for our members and the Hong Kong community.
AmCham has a strong voice representing American businesses in dealing with concerns related to cross-border business and Hong Kong’s role as a center for international trade, transportation and financial services – a voice that speaks business truths to the powers of governments in Hong Kong, Mainland China, Macau and back in the United States.
AmCham also works to help keep Hong Kong a fundamentally safe place to do business, for Americans and all business people. AmCham closely cooperates with Hong Kong Customs and our own government to encourage and help facilitate Hong Kong’s now leading role as a model in the Container Security Initiative program, intended to protect world trade flows from terrorist disruptions. As an active member of OSAC and as lobbyists in Washington Doorknocks, we continue to participate in supporting the enhancement of efforts to provide local and regional security without unnecessary sacrifice to business success, here or in the United States.
Changes to US tax laws have put additional strains on the competitiveness of American businesses, raising the costs of hiring Americans overseas and we have responded with robust information programs conducted within 24 hours of the law’s change, development of global links with other Americans responding to the changes and development of our own US tax blog, which I invite you to visit at www.amcham.org.hk/publicaffairs.
AmCham continues to be a major force in dealing with Hong Kong-government related issues raised by our membership, as well as those raised in Beijing and Washington DC. Examples in 2007 included matters of expatriate children’s school places, competition policy and food labeling in Hong Kong and export controls in Washington.
We work closely with the US Consulate General in identifying issues important to members in specific industries – and in actively pursuing new opportunities to be of service to Hong Kong’s efforts to retain its many and distinctive advantages as a regional and world business capital.
2008 will be an exciting and busy year. For Hong Kong, there will be an election for the next Legislative Council and for the United States, a new President. There will be ongoing discussions on universal suffrage here and there will be serious concerns about future US-China policy in the electioneering process and on the part of whomever is elected as our next president. We must all fight against the growing tide of protectionism.
Ongoing issues
2008 will also be an active year for AmCham. We will continue to address issues related to improving Hong Kong as a great place for foreign companies to do business, with a focus on how to improve the quality of working life here. Toward that end, we will produce and publish a ‘Business Center Progress Report’ on the SAR’s efforts to become more of a ‘World City’ and Asia’s business capital.
Internally, we will build on the past two years’ efforts to enhance interaction between the Board of Governors, committee chairmen and the broader membership, with the goal of extending our lead as Hong Kong’s largest international chamber and dare I say it, becoming Asia’s most influential international chamber.
Expanding membership will be an important focus in 2008. AmCham continues to be the largest international Chamber of Commerce in Hong Kong and since our founding has welcomed all nationalities. Our core values and advocacy on behalf of issues important to our members and American businesses have significant influence and carry a strong voice.
A large, active membership is key to the success of AmCham, and we have invested in significant changes designed to build our membership and better engage current members.
The success of AmCham is in all of our best interests. I ask that each member make it a personal challenge in 2008 to introduce at least one new member, and to clear time on his and her calendar to actively participate in the busy life of AmCham and delegate appropriate staff members to do the same. With some 300 events a year, regular annual business surveys, nine publications in electronic or print formats, position papers and a very active advocacy agenda, there is no shortage of opportunity for member involvement.
We will also seek to develop the most dynamic non-government organization board in Hong Kong, with a new ‘board accountability’ procedure and updating of AmCham’s almost 40-year-old articles of association.
Finally, we will work to enhance our leadership selection process and support for committee chairs. AmCham is an organization driven by its active and business activist committees and we have 25 of them. This committee structure is our creative center that allows for continuous renewal of our organization.
Community Involvement
IPR
Hong Kong is a model of active support for the protection of IPR in Asia, but there remain anomalies in local enforcement and new issues arise with continuous changes in communications technologies. So we will work to preserve and extend laws protecting IPR in Hong Kong.
Environment
Environment remains a key area of concern and we will seek to be a private sector leader in promoting Hong Kong environmental quality. AmCham will continue to advocate for action to promote improvements here, with our third annual Environment Survey, but we will also continue to recognize efforts by our members and by the city administration to deal with the crisis of air pollution in our community. Our goal is not to complain but get results. We will use our monthly magazine and other media vehicles to highlight those member companies that have taken action on their own to improve the environment. And we continue to urge all to sign on to the ‘Clean Air Charter’ in cooperation with our partner organizations in the Business Coalition on the Environment.
Financial Services
We will seek to work closely with Hong Kong government to promote Hong Kong and to broaden the base of international financial services provided here to include a larger role for Hong Kong in the trading of RMB, as well as greater liquidity in the debt capital markets.
We will also seek to work with government to attract other types of international financial service providers to Hong Kong – such as hedge funds, private equity firms, asset management companies and others.
US Tax Laws
Changes to US tax laws in 2006 have negatively affected many American companies and Americans living abroad. This directly affects the ability of American companies to compete in a global marketplace.
We will continue our efforts, led by our Tax Committee, to have the laws changed in ways that will encourage Americans to live and work overseas. To compete in a world economy, we need more Americans with international experience and sensitivity, not fewer.
New Initiatives
Talent Center
Consistent with our mission to enhance Hong Kong’s stature as an international business center, our vision is for Hong Kong to become the source for Asia’s talent needs. We will work with our members and government to facilitate the development and location of the top talent to serve Asia’s growing demands. Much progress has been made on educational fronts and visa policies, but more can be done.
School Places
AmCham will also continue to work on provision of quality education for international children – especially the availability, or rather current unavailability, of classroom space, which has become a significant issue of concern among our member companies. The serious lack of classroom space in convenient locations – most especially on Hong Kong Island – has made it difficult for many incoming executives to find school places for their children. This affects the ability of companies to bring their top talent to Hong Kong.
AmCham has made this a high priority and will continue to work with government to find ways to allow existing international schools to expand, as a medium term solution to the problem. So far, all indications are that government is listening and the Chief Executive placed it among his priority issues in his Policy Address, late last year.
China AmChams
There are now eight AmChams in Greater China, including those in Hong Kong, Macau and Taiwan. Given a growing number of American businesses and expats with a presence there, AmCham worked with its Macau Committee to help establish an AmCham Macao in that SAR last year.
What most of the members of all of our Chambers want is a seamless service from China AmChams. We have worked toward this end for almost three years now, and have recently introduced an AmChamPlus membership program with four other China AmChams, that will allow members to access all the services of multiple China AmChams with a single membership package from their resident Chamber.
We will also participate with Beijing and Shanghai AmChams on their annual ‘Washington Doorknock’ in May and we have, for the first time, included an entry in their annual ‘White Paper,’ which will be published later this year. This is a beginning to what we see as continued integration of activities and services for AmCham members throughout China.
Fun
We also plan to have fun this year. Our members like to socialize and our annual AmCham Ball is the best party in town. This year promises plenty of film lovers’ ‘bling’ and 1940’s flair with its theme, “Hollywood Golden Years.” Join us! Mark your calendars for Saturday, March 15th and book early. This is a “must do” event on Hong Kong’s social calendar, with expected attendance by almost a thousand people.
Other than our air pollution problems, this is an efficient, safe, clean city with a great infrastructure, and a wide range of cultural and entertainment activities for all interests.
The city has energy and its people a keen business sense, making of it an excellent place to do business by world standards. We believe in open markets and global business standards, we openly share best practices. Our international business people are world citizens. I have never been called a “traitor” by anyone in Hong Kong.
I look forward to working closely with all of our members. You are the key to our future as an organization. You are our source of strength and influence in the world affairs of what has become a globalized business environment. And we have the good fortune to be the most prominent foreign business organization in what is the true business capital of Asia: Hong Kong.
AmCham is people. We depend upon your active involvement to build on almost 40 years of success the foundation for 40 more. We need good leadership in our Chamber as much as any other organization. Commit to us, as we have committed to you. Together, we have a lot to do and much to accomplish.