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President's View
The festive season is long in Hong Kong and as Chinese New Year approaches, tradition suggests that we should consider a new, clean start to the year. As it is also a typically quiet time in the office, this presents the perfect opportunity to clear desks and the backlog of e-mails.
In your in-box you might come across e-mails from our Communications Director and read about the events you have missed! We are trying to limit our e-mails to once every 2 weeks (although we don't always succeed) and we hope that this meets with the balance you need between being swamped by too many mails and the need to be kept informed. At the moment we are trying out a new e-mail sending service, which is itself having some teething problems. Some of you may have received our last e-mail twice. We hope you will bear with us during this settling in time as the service looks to be useful when it finally works.
Chapter events are the perfect forum for developing not just your career but also your personal profile in the FM community. I am aware that a number of Members within the Chapter have recently changed jobs and some of these changes have been helped by the involvement within the Chapter's events.
So, why not start the Year of The Dog by committing to come along to one of our next events? It seems as if many have already decided to do this, as our next site visit to Ocean Park is almost full!
On to another matter that I believe many of us would like to change and that is pollution. Everyone complains about air and noise pollution in Hong Kong, but who is prepared to do anything about it? A paper issued by the Center for Urban Planning and Environmental Management at the University of Hong Kong has shown that SMEs in Hong Kong are reluctant to engage in environmental activities unless obliged to do so by legislation. The paper was issued in November 2005.
Hot on the heels of this piece of information is the requirement of the Environmental, Transport and Works Bureau (ETWB) that all companies who wish to carry out contracts for the ETWB will be required to implement an environmental management plan in all public works contracts.
In this issue of the newsletter we cover both these items extensively as we feel that FMs must be at the forefront of change and that improvement to the environment in Hong Kong is a major area of change-to-come.
To close, I wish all our Members and Friends - Kung Hei Fat Choi! May the New Year bring you health, happiness and success.
Hong Kong companies are still largely disinterested in environmental issues; a recent Hong Kong University study shows. The survey, conducted by the University's Centre of Urban Planning and Environmental Management (CUPEM), found that the overwhelming majority of businesses in Hong Kong are reluctant to engage in environmental initiatives that exceed mere regulatory compliance. Moreover, government and business associations are failing to provide meaningful leadership for the private sector, it concludes.
In a recent study comparing the environmental attitudes of SMEs and larger companies, inadequate government policy and support, a low degree of environmental awareness in Hong Kong's society and a corporate culture that is very much focused on short-term monetary benefits were identified as key factors contributing to the poor development of corporate environmental management among Hong Kong companies.
Small and medium-sized enterprises (SMEs) are particularly difficult to involve in environmental initiatives. Almost 80% of the SMEs participating in the study stated that they would only consider engaging in environmental activities if they faced legal obligations to do so. Companies with more than 200 employees claimed a lack of pressure from government to be the main barrier that prevented them from engaging in activities such as environmental reporting, introducing environmental management systems or supporting local environmental initiatives. But they also thought there were insufficient incentives to be environmentally proactive.
The research suggests that Hong Kong cannot rely on voluntary agreements with industry to improve its environmental performance, and that there is no alternative to increased regulation.
The researchers recommend stronger leadership by government and business associations in order to improve the environmental performance of Hong Kong companies, and a need for a more systematic, government-backed approach."
Based on their findings, the research team arrives at four basic recommendations for future environmental policies:
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Tougher environmental legislation while maintaining the current high level of implementation and enforcement.
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Better consideration of SMEs by regulators to avoid them slipping through the regulatory framework. This implies a fuller engagement of regulators with the SME sector, not only by means of providing information and support.
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A bigger role for business associations such as chambers of commerce and the Business Environment Council in building relationships between business and government.
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Raised efforts to improve environmental education; and specifically the education, training and other support targeted at SME owners and managers. Emphasis should be put on demonstrating them how good environmental governance can lead to competitive advantage.
SMEs form over 98% of business establishments in Hong Kong. Only if their unique characteristics and needs are taken into account will Hong Kong manage to reach an environmental standard that is in line with its claim to be a World City.
This article has been based on a press release issued by Dr. Richard Welford, of The Centre of Urban Planning and Environmental Management at The University of Hong Kong. A full copy of the research report is included in FM Essentials on the web site. For more information e-mail rwelford@hkucc.hku.hk .
If the Government believes that environmental issues are good for us, they have a range of options to either entice or force us to face these issues. They can legislate or otherwise take regulatory action; they can stipulate requirements and carry out rigorous inspections and supervision, although this is a costly option; they can provide incentives and promote self-initiation and self-regulation; and lastly they can force contractual action in limited circumstances.
It is this latter action that the Environment, Transport and Works Bureau have taken in issuing Technical Circular 19/2005 in December 2005. They consider it to be equally effective with legislation in controlling contractor performance, with the benefit that higher standards can be set with greater flexibility in defining requirements. It is also more effective and efficient at controlling non-conformities than legislation. Finally the duties of inspection and supervision are assigned to staff already carrying out these duties in other areas. The measures set out in the circular apply to both construction and maintenance term contracts for public works and is effective from 16 th January 2006 .
The disadvantage is that the Government can only influence contractual requirements in projects paid for by the Government. However this is a substantial proportion of overall construction in Hong Kong , and as contractors working on Government sites develop the expertise in managing environmental issues on these sites, they will be better prepared to extend the measures to non-governmental sites. Also, as the public become more aware of the localised benefits from contractors taking such environmental measures they will be more prepared to insist on the same measures in other sites.
The main target for the Technical Circular is dust emission, noise pollution, waste water contamination and waste reduction associated with construction sites. An environmental management plan will need to be developed to abate environmental nuisances on construction sites including air, noise and wastewater pollution. The same plan must reduce the construction and demolition materials to be disposed of during the course of the construction. The circular also requires unified standards for abatement measures and an extension of the current Pay for Safety scheme to cover both safety and environment.
Many of the physical measures to be taken on site under the requirements are commonsense, if your goal is inline with the target of the circular. However they cost money to implement so are unlikely to be implemented, particularly on smaller sites unless some form of incentive is provided. The incentive is the Pay for Safety & Environment scheme, which allocates some of the contract sum to preset and pre-priced items in the contract bill of quantities. If performance under the environmental management plan is achieved these sums are paid in regular payments. The contract also stipulates that the specific physical environmental measures are separately identified in the bill of quantities and priced under the competitive tender sum.
The circular is one step in the Governments plan to improve the environment in Hong Kong . The obvious target are major construction sites, however it is equally applied to term maintenance contracts for public works. This is the area that will most interest Facilitiy Managers.
This article has been based on a the notes of a seminar presented by Mr K L Chow, Chief Assistant Secretary (Works) of the Environment, Transport and Works Bureau.
We continue our series of interviews with people within the FM industry by interviewing C.H. Fan , Managing Director of Synergis Holdings Limited - a listed and leading group providing property and facility management services.
The people covered by this section of the newsletter will vary, from senior and well-known members of the industry to graduates just starting in the industry. The intention is to provide information on a cross-section of the industry covering how they first became involved in the industry, what they do, how they relax etc.
The interviews are conducted and reported by Santa Raymond for the Hong Kong Chapter of IFMA.
Q.
What do you consider describes the job you do?
A.
As with any company, the job of managing director is to explore and identify business opportunities, set up systems and ensure we have quality standards.
People deliver standards, and with 4500 people involved in 230 projects, a strong commitment to our people is essential. As you know we have won many awards, both for our services and as employers. In an external survey for assessment of best employer conducted in 2003, we were amazed that employees rated us at 99%! But we do invest in human capital, attracting graduates, and providing training and a clear career path.
We aim to partner with our client companies, and in developing close relationships deliver cost savings, as well as all round improvements. Ideal technologies help improve both strategy and operations, and we have invested $30M on our state-of-the-art technological infrastructure, including an enterprise resource planning system which integrates financial, procurement and human resources information; and also the Synergis Customer Service Centre equipped with the computerized maintenance management system.
Q.
What is your background?
A.
When I left school, I worked for the Government Housing Department. Whilst there, I studied Property Management at HKU, and after seven years I moved to the private sector.
Q.
Why did you apply for your current job?
A.
In the public sector you have to stick to the rules and regulations, and making changes becomes a major issue. In the private sector there is lots of opportunity - you can be client focused, flexible and services can be tailor-made to their needs.
When I joined Hsin Chong in 1997, the Government was beginning to outsource the management of some of its rental housing, so my experience was just what was needed, especially as we were then employing Government staff.
Q.
What are your current key projects?
A.
Since Synergis was formed, and the parent company went public in 2003, we have increased our portfolio considerably. We only had 40 projects when I started 9 years ago, with 25,000 residential units, and this is now up to 230 projects and over 140,000 residential units. Our high profile clients include private residential owners, government organisations, educational institutions, property developers, logistic companies, large local conglomerates and multi-national companies.
A major project is the Asia Airfreight Terminal at the airport. There we provide a full facility management service. Understanding air cargo business is very challenging. We focus on maintaining an uninterrupted operation environment and seeking innovative ways to achieve cost effectiveness, and we were highly recognised by the Client being 'the Best Supplier of AAT' in 2003. We are also working with the Jockey Club, leading their facility management team and using our specific expertise to help them review processes and procedures. Our wide knowledge of different businesses can be useful, as companies often only know how they normally do things.
Focusing on our three core areas of people, process and IT remains central to everything we do, but we do intend to widen our scope. In the future we will partner to increase our services. These will include more corporate real estate and project management and even interior design, as well as increased energy and hygiene management. These more strategic services will be added to our current property, facility and maintenance management services, and our workplace support ones.
Q.
What do you see as the future for FM?
A.
It is early days for Facility Management in HK and PRC. Property Management has only been going 35 years. Customers need to be educated to understand value, but it is most important that FM players maintain quality people, processes and IT in place, as these are the foundations.
There are good opportunities for HK, but the benefits of outsourcing need to be properly understood. It's not just about cost savings, it's about quality, continuous improvement, sharing best practices, and access to Global processes. The company can then focus on internal operations.
Q.
What do you do to relax?
A.
I enjoy music, and I love driving. At home I have a great hi-fi system, and I listen to jazz (a favourite is Kenny G.).
My current car is 740 BMW, which makes my 40 minutes drive to work a pleasure. Previously, I had Japanese cars, most recently a 430 Lexus, but I wanted to experience a German car.
Q.
If you didn't work with property, what would you like to do?
A.
Planning for my retirement, I would like to run a Hi-Fi café - with a good cup of coffee and cheesecake! Customers would choose their CD, and read different types of hi fi magazines. I might do it in Shanghai where there are lots of ex-patriots, but few cafes like this. I would combine making money with my hobby and interest.
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