Asia

Hong Kong-based Ho & Partners Architects Engineers & Development Consultants Ltd. (hpa) is responsible for the architectural planning and project management of a large-scale joint development project between the Manila municipal government and the Philippines’ UAA Kinming Group Development Corp. Located in the Philippine capital’s central district, the 407-hectare New Manila Bay City of Pearl will comprise Class A office buildings, exhibition venues and multi-use residential areas, offering comprehensive services covering entertainment, leisure, tourism, education and sports facilities. 

Also appointed as the architect of the project’s first phase of construction, hpa will adopt an integrated hardware and software system combining smart energy-saving grids, water and light-rail transportation, as well as self-sustaining solar and tidal energy to achieve ecological balance in production, storage, transportation and energy consumption for the smart city as a whole, with carbon positivity as the long-term goal.

New Manila Bay is a key development project between China and the Philippines under the Belt and Road Initiative. In February 2017, the Manila municipal government, the Philippine Reclamation Authority and UAA Kinming Group Development Corp signed a memorandum of understanding for the New Manila Bay reclamation project. In March, lead designer of the project and Deputy Managing Director of hpa, Nicholas Ho, and a number of interested developers from Hong Kong and the Chinese mainland travelled to Manila for the launch ceremony of the reclamation project. During the event, Mayor of Manila Joseph Estrada said that the President of the Philippines, Rodrigo Duterte, fully supports the project and hopes it will broaden Manila’s development prospects by creating thousands of employment opportunities, improving public services through boosting city tax revenue and driving long-term economic development for the country in the long run.

The New Manila Bay project is expected to be completed in seven phases over 20 years, in which the initial three-year reclamation project will begin in August 2017, while the first phase of the construction project will be announced in early 2019. Ho explained that since Manila lacks large-scale public facilities and business areas that meet international standards, the local government and other agencies concerned hope the project can help bring international experience and technologies to the city. Besides speeding up the construction process and ensuring the construction and management of the project meet the latest global standards, the project is also expected to serve as a reference for future development of green cities in the Philippines. 

Highlighting the advantages that Hong Kong architectural design companies have in  undertaking large-scale international projects, Ho said Hong Kong’s limited land resources have encouraged local designers to include value-adding features in projects through design and layout planning, as well as making clever use of community infrastructure and facilities to create an efficient and user-friendly environment. Ho explained that Hong Kong’s architectural design industry has always been motivated to explore new frontiers and many of their projects have received international green building certifications, demonstrating their expertise and experience in green design and sustainable project management. 

Ho said that as the Belt and Road Initiative is implemented, many Chinese and other international corporations and investors are becoming more enthusiastic about infrastructure and real estate development in the Philippines, as well as other Belt and Road countries. Further to this, he noted that Hong Kong companies can make use of their global business networks, gain experience with clients from the mainland and around the world, and develop an understanding of international standards and practices to excel in their roles as connectors and facilitators for Belt and Road development. 

hpa has ample experience in architectural planning and project management, having participated in a number of large-scale planning, public facilities, commercial and residential projects worldwide including in Hong Kong, the Chinese mainland, Southeast Asia, India, Korea and the Middle East. These projects include the Hong Kong Mass Transit Railway (MTR) Kowloon station, new campus of the Hong Kong Baptist University, Liaison Office of the Central People’s Government in the Hong Kong S.A.R., North Lake New Zone in Handan, Hebei, and township development in New Delhi, India. With their understanding and experience in designing, planning, and managing green buildings and smart cities, hpa will bring the New Manila Bay project to international standards and showcase the Hong Kong designers’ ability to create flexible and high-efficiency land planning projects.

Global design firm Benoy delivered Indonesia’s first international-standard theatre, arts and culture centre, Ciputra Artpreneur in 2014. Developed by Ciputra Group, one of the leading developers in Indonesia, the project aims to promote and raise awareness for Indonesia’s artists and creative entrepreneurs. Located in the heart of Jakarta, the project comprises 14,000 square meters of performance and art facilities including a 1,200-seat theatre, flexible and permanent exhibition galleries, a museum and multifunctional rooms for artists and performers.

Benoy’s Hong Kong team was involved in the project as design consultant and interior designer, and worked closely with theatre consultant Philip Soden of Australia and engineering consultant Beca Carter of New Zealand. The Hong Kong team contributed to optimising acoustic and visual experience within the proscenium-style theatre, and designing the Main Gallery, which features interchanging walls to accommodate major exhibitions or a series of smaller shows simultaneously. Its adaptability has set an example for the city as to how to diversify development in the future.

Arup, an international firm of designers, planners, engineers, consultants and technical specialists offering a broad range of professional services, has been active in Hong Kong for more than four decades. The firm recently worked with China Communication Construction Company Ltd. (CCCC) to conduct an economic and engineering investigation to examine the economic viability and technical feasibility for the construction of the Karnaphuli River-crossing Tunnel, Bangladesh’s first underwater tunnel that connects the two halves of the commercial city of Chittagong.

The consortium comprising CCCC and Arup achieved the highest technical and commercial scores in the international procurement process for the feasibility study and preliminary design package, giving confidence to the project sponsor that the scheme would be viable.

Arup’s Hong Kong Geotechnics Group took the leading role in socio-economic impact assessment, finance modelling, procurement strategy, operation and maintenance plan, environmental impact assessment and resettlement plan. The group was also responsible for all documentation and reporting.

Located at the estuary of the Karnaphuli River, the proposed 3.5km, dual two-lane shield-driven tunnel will serve both urban and transit traffic and will relieve the traffic pressure on the existing two bridges. It will also help expedite the industrial growth and urbanisation on the east side of the river. The Chinese President Xi Jinping attended the inauguration during his visit to Bangladesh in October 2016. The project began construction in 2017 and is expected to complete in 2022.

EY attaches great importance to the “One Belt, One Road” market, and its China Overseas Investment Network (COIN) spans ASEAN, South Asia, Middle East, Russia and Commonwealth of Independence States (CIS), Africa and Europe along the Belt and Road, providing one-stop services in assurance, tax, transaction and advisory areas. With its unique geographical advantage, outstanding bilingual skills and a high level of professional service, EY Hong Kong coordinates its Chinese and overseas teams together with integrated resources to provide an efficient and high quality service. EY Hong Kong has posted large numbers of its professionals on the Chinese mainland as well as in global locations to strengthen its services for Chinese enterprises.

EY has assisted a leading provider of automation and control technologies and applications based in China to acquire a group of companies based in Southeast Asia that provide mechanical and electrical solutions for industrial automation and rail transportation industries. Following the acquisition, its client has established a strong foothold in the fast growing Southeast Asia industrial automation and rail transportation fields, as well as leverages on a readily available channel to cross sell their existing products in this region. This transaction also allows its client to access a pool of capable, multilingual and professional workforce particularly in Singapore and Malaysia.

EY COIN network in the Middle East and North Africa (MENA) region also assists Chinese clients in different tax areas including transfer pricing development, local tax compliance and other tax operation matters. For instance, they provided full support to a Chinese energy enterprise with regional head office in the UAE for tax compliance and regulation in MENA region, which has driven the enterprise to reduce cost whilst at the same time demonstrating high value-added to its key business activities.

The National Armed Police Force (APF) Academy project, 20km southwest of the city of Kathmandu, involves site formation, road works and construction work for more than ten buildings with a gross floor area of 15,353m2 on a site spanning 16.8 hectares. The agreement on this China-aided construction project was signed between the Government of the People's Republic of China and the Government of Nepal on June 2013.

Hong Kong consultancy Fruit Design & Build Ltd (FDB) was appointed by the Ministry of Commerce of the People's Republic of China as engineering consultant for the project. Its main duties include the monitoring of domestic equipment and materials, approval/monitoring of constructor’s organisation, approval of the commencement of works, quality management, approval of mid-term and final acceptance of works, safety production management, and approval of funding and design variation.

Before work began, FDB sent a resident site staff team to Nepal to closely monitor the progress and quality of site work including the delivery of construction materials, worker recruitment, the provision of accommodation and the set-up of a site office. Construction began on 16 April 2015 and is expected to be completed in 25 months.

On 25 April 2015, a powerful earthquake measuring 7.8M on the Moment Magnitude Scale struck the area. Its epicentre was the village of Barpak, 150km northwest of the construction site. After the earthquake, all structures on the site remained stable.  This was specially highlighted by National People’s Congress Standing Committee Chairman Zhang Dejiang in his speech at the Belt and Road Summit in May 2016 as an example of the superior quality of Hong Kong’s professional services, and proof that such services have a big role to play in Belt and Road development.

Saigon Pearl, a luxury residential, business, shopping and entertainment development, is one of the largest projects of its kind in Ho Chi Minh City. The project is another effort by Sunwah Group to embed another iconic development into a much-loved skyline in Ho Chi Minh City after Sun Wah Tower and to introduce high-rise quality living to local people.

Sitting on the border of District 1 of the city, the Saigon Pearl development project includes the construction of eight twin apartment buildings. To serve the local and also the neighbourhood community at large, the project also includes the construction of 40,000 square-metre retail and recreational facilities including clubhouses, a large-scale shopping complex with shops, supermarkets, cinemas and other entertainment components. Professional services, from architects to interior designers, were hired from Hong Kong to ensure the project adheres to international construction standards.

Hsin Chong was appointed as Construction Manager for the Thai Boon Roong Twin Tower World Trade Center Project in Cambodia in March 2016. Located on the bank of the Mekong River in the capital city Phnom Penh, the Twin Tower will reach 500 metres (133 storeys) into the sky when completed, making it Cambodia’s tallest building as well as one of the world’s tallest buildings.

As Construction Manager for the project, Hsin Chong will be responsible for coordination and supervision of works contractors, programme control, commercial advice, monitoring safety and quality control, managing site logistics, as well as coordinating with consultants and the local authorities.

The project also includes four residential buildings of 59 to 65 storeys, an 11-storey podium structure with three levels of basement, and another three levels of basement under the existing Hun Sen Plaza in front of the Twin Towers. The Thai Boon Roong Twin Tower World Trade Center Project will accommodate a wide range of facilities such as hotel, service apartments, offices, shopping mall, exhibition hall, cinema, restaurants and basement carpark. The planned land area is over 86,000 square metres and the gross building area is around 1.615 million square metres.

Founded in 1982 as a customs consultancy, Barsan Global Logistics (BGL) had grown to become Turkey’s largest customs company in seven years. Since 1990, the company has been involved in global transportation through land, air, sea, rail and multi-modal freight forwarding, bonded and non-bonded warehousing, and stock management.  Hong Kong has played an important role as BGL expanded its global presence, as BGL has today 33 branches in 14 countries and an annual turnover of some 400 million US dollars.

BGL expanded its network in Asia in 2001 when it established “Barsan Global Logistics HK Ltd” in Hong Kong. This Hong Kong branch has been providing research and management advisory services to companies across Asia and Europe, a large part of which is now covered by China’s Belt and Road Initiative. Ebru Busra Tunca, Director of Barsan Global Logistics HK Ltd, said Hong Kong’s Closer Economic Partnership Agreement (CEPA) with the Chinese mainland and its proximity with the dynamic economy of the Pearl River Delta are among the reasons that made Hong Kong one of the strongest logistics bases in Asia. She said Hong Kong’s “East-meets-West” culture has also been an attraction for overseas companies looking to expand their business in the region.  

BGL’s Hong Kong branch has proven to be a stepping stone to various emerging markets in Asia, and has remained an important regional office for BGL. BGL subsequently opened its Shanghai branch and became the first Turkish logistics company to establish a presence on the Chinese mainland. This was followed by new branches in Yiwu, Busan, South Korea, as well as Shenzhen and Ningbo. BGL’s steady growth and its worldwide network spanning East Asia, Southeast Asia, Central Asia, Europe and North America have demonstrated the importance of worldwide supply chain management. The company will continue to expand its network, targeting to be among the top ten logistics companies in the world by 2020.

Hong Kong was created as a trading post of the British East India Company for 19th century China trade. A new China trade is flowing, much bigger than the one before, which is what the Belt and Road signifies. It is natural that Hong Kong should again be a major node for it. Hong Kong has strong links to China and the rest of Northeast Asia. For Hong Kong to be a super connector for the new China trade, it must also develop strong links to the rest of Asia, in particular, to Southeast, South and West Asia. Hong Kong's full range of capabilities can then be brought into full play. 

Riding on the Initiative and taking advantage of ASEAN’s economic integration, Kerry Logistics continues to expand its ASEAN-wide cross-border road transportation network – KART which connects regional MNCs in ASEAN with the Chinese mainland and Hong Kong. One of the company’s successful showcases is a well-known toothpaste brand in which Kerry Logistics transports the raw materials in barrels packing (e.g. sodium salt, calcium salt) from the origin in Kunming to the client’s factory in Bangkok through the Kunming-Bangkok highway. Compared to the traditional land-sea solution – from Kunming to Guangdong by land and then to Bangkok by sea, the client can significantly shorten the transportation lead time from two weeks to less than four days.

China’s plan to revitalise the old Silk Road through the Belt and Road Initiative has inspired a Hong Kong design firm to get a jumpstart.

Hong Kong-based architectural consultancy hpa (previously known as Ho & Partners Architects Engineers & Development Consultants Ltd) has re-entered the Southeast Asian market, following the launch of a new office in the region in October 2016 by partnering with Malaysian design consultancy Carnaby Group. The 35-year-old firm built its reputation with major projects on the Chinese mainland, but is expanding further in the region. Nicholas Ho, Managing Director of carnaby hpa studio, says the time is ripe to refocus efforts on developing the fast-growing Southeast Asian market.

Tell us about the merger with Malaysian design firm Carnaby Group.

We have always been interested in Southeast Asia and wanted to expand our presence there since our Singapore and Bangkok days back in 1997. So we went back in 2014, to Malaysia, with a clear vision to build a one-stop property professional services platform: we would do the architecture, interior, master planning, sales, investment advisory, branding and marketing.

But we came to the conclusion that doing everything yourself in a foreign market would be inefficient. We then met Carnaby, a 20-year-old Malaysian company that is very strong at interior design and build, property branding and marketing. We were very fortunate to find a partner with the same vision and hunger to grow.

Why did you choose Malaysia as your Southeast Asia base? 

We were inspired by China’s vision to redevelop the old Silk Road route through its Belt and Road Initiative, which covers Southeast Asia. In looking for a regional headquarters in Southeast Asia, the top thing we look for is the language. Second is a culture that is heavily dependent on the Chinese way of doing business. Third is local government. And when we go out, we need to depend on a network of friends. All these considered, it was either Singapore or Malaysia. But Singapore is too mature and competitive to enter two years ago, so we chose Malaysia in the end.

How will this partnership enhance hpa’s footprint in Southeast Asia?

Our goal is not just Malaysia, but 10 countries in Southeast Asia. We want to grow in six countries in Southeast Asia within this year.

Since merging just four months ago, we have one project each in Singapore and Myanmar. We’re aiming to enter full-fledged in six countries this year, so apart from Malaysia, Singapore and Myanmar, we are thinking of Jakarta next, Bangkok and Ho Chi Minh City.

What about business prospects in the Chinese mainland?

The mainland market took a dive two years ago. Demand is still high in first-tier cities, but the problem is with second-, third-, and fourth-tier cities, where the market is over-supplied. Even if housing prices have not fallen much, transaction volumes have dropped. This has had a domino effect on developers and companies like ours, where 60 per cent of our business comes from the mainland. Opening this Southeast Asian operation two years ago turned out to be a good move.

What makes Southeast Asia such a promising market?

In Southeast Asia any one country is not big, but Southeast Asia as one big market is very much like China 20 years, when it was a golden opportunity for Hong Kong services because their legal and professional services were not very developed and they needed Hong Kong expertise to upgrade their system.

When we went to China over 30 years ago, when no one wanted to go in, we spent four tough years, but it has been smooth sailing ever since. It opened so many doors and at the time, local competition was very low. We feel like Southeast Asia is exactly that right now.

How does being in Southeast Asia contribute to the overall goal of hpa? 

We are still very much a Hong Kong company. Our goal is to bring Southeast Asia and Hong Kong together. Hong Kong companies going to Southeast Asia and merging with local partners represent the best of both worlds because you tap into the regional resources. When we go abroad, we bring in our Hong Kong clients, China clients and investors. What they offer on the other hand is land, investment opportunity and local demand. So it’s a symbiotic relationship.

We are trying to capture the essence of the Belt and Road Initiative by doing not just architecture, but also investment advisory, which means deal-sourcing and deal-matching for our mainland, Hong Kong and Southeast Asia clients to connect both sides.

In the past, a one-stop shop only included architecture, engineering, and maybe other consulting services. But no one, to our knowledge, has attempted to offer such a range of services because they’re very different disciplines. We think it will work because the Southeast Asian market is not transparent. We’re able to create, from ground zero to completion, a full-spectrum service. We not only appeal to the local developers because of our one-stop service but also to global investors.

What is your advice for Hong Kong companies considering Southeast Asia?

For companies that depend heavily on China, it’s too dangerous to put all your eggs in one basket. China long-term will be fantastic, no question. But at the moment, it’s undergoing a calibration, which is why we must diversify.

For Hong Kong companies, we want to go to places where we have the most friends, cultural similarities and good deals. So I think Southeast Asia is definitely a good market for Hong Kong companies because we have the upper hand and they’re receptive to our ideas and gives us room to grow.

Indonesia for us is a prime target. We are very keen to open Jakarta because the country has more than 250 million people, accounting for half of Southeast Asia’s population. Jakarta is now tough to get in because the property market is just starting to grow and infrastructure is still undergoing development, so people are still not attuned to the idea of property development. It will take time for the market to mature. So we’re looking for the right opportunity. It will be the China of Southeast Asia. Timing is key. We don’t want to jump in too soon, but we don’t want to be too late.