Hong Kong’s healthcare – a free-of-charge public system complemented by a high-quality private sector – is the envy of many countries. But as the population ages and increases, the public side is struggling and the private side is having to turn patients away. Dr Walton Li explains the need for expansion in the private sector, and discusses how Hong Kong Sanatorium and Hospital attracts the finest doctors, nurses and support staff with its excellent training programmes and cutting-edge technology.
The New Economy: How has the healthcare sector evolved in Asia and Hong Kong in particular?
Dr Walton Li: Well Hong Kong’s healthcare is the envy of many countries because how our public system can take care of the population at free of charge. In recent times however with the increase in the population, the ageing of the population, and also increased patient demands, it’s certainly put a strain on the healthcare system. In the past the private healthcare system might be quite effective in complimenting and helping the public system, but in the recent years even the private system, like Hong Kong Sanatorium and Hospital has to regularly turn away patients because of our full occupancy. So we certainly hope that the government can expedite our expansion plan so we can provide more service capacity in order to help with the healthcare system for all of Hong Kong.
The New Economy: How do you ensure Hong Kong Sanatorium and Hospital services and practices meet patients high expectations?
Dr Walton Li: Well, you know, the key of course is how we can attract the top doctors in Hong Kong and how we do that of course is we have to give the patients and the doctors a top facility and the best equipment and we try to help the doctors by providing them well trained teams of nursing and supportive staff. We also therefore monitor for the patient satisfaction and through this monitoring system that provides a constant feedback so that we can continually improve on our services.
The New Economy: How important is it to have the latest medical technology at Hong Kong Sanatorium and Hospital?
Dr Walton Li: Well as you know the, for medical advancement, medical technology really goes hand in hand with it. So the technology, I think is extremely important. I would like to have our doctors to be working with the latest technology because it keeps them at what we call the cutting edge of medical science. The doctors all want to be at the cutting edge and the patients want us to be at the cutting edge of medical science. So I, yes, I think the medical equipment is extremely important in our development.
The New Economy: And you offer a range of training programmes. What are they key ones and who do they benefit?
Dr Walton Li: Traditionally, the medical students and medical offices all have exposure just to the public institutions and public services, however, we know that fifty percent or more of the doctors eventually go out into the private service and that’s why our Sanatorium and Hospital has been working with the university and other public institutions to allow for example the medical students to rotate through our hospital for two weeks so that they can have a perspective of the private medicine and of course we have some collaborative training programmes with the university and other public hospitals particularly in general surgery and ophthalmology and in orthopaedics. But the benefit also is for the hospital and for our doctors because in order for us to be involved in this teaching and training facility to be recognised as training centres by the academy of medicine and the various colleges, we have to set up our appropriate infrastructure for teaching, for professional development. So it involves the teachers from our departments, it involves our nurses, so it is at the whole surface atmosphere at the hospital. Not just to be involved in patient treatment, but also in the training and in education as well.
The New Economy: And you’ve committed to improving social wellbeing. What projects have you been involved in?
Dr Walton Li: Those of us in the healthcare profession, whether doctors or nurses, we are in this healthcare because we like to help people, we want to make a difference. So for example every year we do the Oxfam trail walk where we raise a lot of funds and in the training process they walk up and down the mountains so we also participate in other activities like visiting the elderly, we also do some charities. It provides the opportunity and a platform to work with other credible organisations and other community service organisations so that it provides our staff a chance to be working with the community doing charity work at the same time enjoying themselves with other, all sorts of activities.
The New Economy: You’re currently celebrating your ninetieth anniversary and Hong Kong Sanatorium and Hospital aspires to become the medical centre of excellence in Hong Kong. How do you plan to achieve this goal?
Dr Walton Li: Well being a private hospital by itself, in order for us to do that we have to move beyond just doing the healthcare service as I said and that’s why we like to set various platforms for interactions with university, local universities and international universities. Platforms for teaching, training, and even research, with these universities. So for us to move forward to the Centenary we will be progressively building these platforms for exchange and that is how we like to do it in this wise fashion, leading up to our centenary.
Bermuda has a global reputation as a top place to do business. It is the number one reinsurance jurisdiction in the world, and is well known for its for fund and asset managers. Business Bermuda is the membership organisation dedicated to facilitating companies’ entry to the country; Cheryl Packwood tells The New Economy how it can help business owners and investors form vital partnerships.
The New Economy – What are the advantages of investing in Bermuda?
Cheryl Packwood: Bermuda is a premier jurisdiction. We have some of the highest sovereign debt ratings for an offshore jurisdiction of our size. We are a transparent jurisdiction when folks try to lump us in the category of tax havens we always shout No and we are right to shout no because we are not a jurisdiction that you can come in and hide money. We are a jurisdiction that has real business. We are the number one reinsurance jurisdiction in the world. We are a well known funds jurisdiction asset management jurisdiction and that is because of our reputation globally as a top place to do business.
The New Economy: And what should investors be aware of? Are there any risks at all?
Cheryl Packwood: In terms of investments, the risk is associated with your strategy. Bermuda is not a risky jurisdiction. We have no had the bank failures or the failiures of any major companies. We did not have major exposure in the Madof scandal that took place a few years ago. And that is because Bermuda prides itself on who invests in Bermuda. We look very carefully at who comes in to our jurisdiction precisely because we do not want to be associated with major scandals. We want to ensure that the money is really behind the name that they claim is really there. And that has stood Bermuda in good stead and to that degree no, the risk is only associated with your own business strategy.
The New Economy: So exactly how does business Bermuda spread the word about investment in Bermuda?
Cheryl Packwood: Business Bermuda is a membership organisation. We are run out of the private sector with a grant from the government for promoting Bermuda globally. We go to conferences, we host our own events, both here in London and in New York and now we’ve branched out to the rest of the world. We’ve’ held events in Bahrain, Hong Kong, Singapore and we just came from Shanghai and Beijing where we also hosted events and we were a major sponsor in the CCPIT conference; the Chinese outward investment conference. That was so exciting to be there and to feel like we, I was opening China for Bermuda. So Bermuda is very much becoming recognised, known quantity in the world. Precisely because of what Business Bermuda does and the award that we’ve received today from you, The New Economy, is a tribute to all the hard work that we’ve done. Thank you.
The New Economy: Who is your typical client?
Cheryl Packwood: Bermuda’s typical clients are real investors who want to do real business trying to increase their value, increase their holdings, increase their assets. We did a study on Bermuda’s economic impact on the United States and then in future years we took that study and looked at Bermuda’s economic impact on the UK, on parts of Asia, parts of Europe, and we came to discover that for example in the United States, over 300 thousand jobs are created as a result of setting up companies in Bermuda. We help the rest, an economy or a jurisdiction increase their wealth, increase the jobs. Our two way trade with the UK has increased 250% just since we started doing that study. These are incredible figures and it shows that we’re partnered with the rest of the world. We’re not just a tiny little jurisdiction saying ‘we want your money, we want your money’ and that is what is so important about Bermuda.
The New Economy: And how can Business Bermuda help those looking to invest in Bermuda?
Cheryl Packwood: Business Bermuda provides a first hand experience to the business client. We are a first point of entry, if you will, to come in to Bermuda because we are a membership organisation of the private business community; that’s he lawyers, the bankers and the accountants. And we’ve grown now to include international businesses, all the different telecoms technology companies, the fund administrators, all of these different entities are part of our membership. Whatever your needs are we can set you up with the exact person that you need to speak to. And we will know which lawyer and which firm you should talk to and we can give you a variety of names of lawyers or accountants or whomever to speak to and decide for yourself who is it that you get along with best. We provide the government with legislative policy in terms of changing or mending business legislation, regulation, policies. To keep ahead of the game or to keep in line with global regulations and legislation requirements our membership on that on a daily basis with government and in committee, which is an amazing offering that we provide and we do it because we want to create a viable environment to do business, not just viable but a terrific environment in which your client can do business once they are in Bermuda.
The New Economy: Cheryl Packwood, thank you very much for your time.
Cheryl Packwood: Thank you very much. This is a true honor and to be recognised for all the hard work that we do, again, I am honoured that you have given us this award. Thank you very much.
Caixa Geral de Depositos is not only a cornerstone of the Portuguese economy, but a model of sustainability – financially, socially, and environmentally. The New Economy visits CGD’s Lisbon headquarters to discover exactly how the bank has become such a shining example of responsible banking.
António Nogueira Leite: We are virtually a partner with most of Portugal’s largest companies.
Francisco Viana:Strength, reputation, trust and sustainable development: this is our positioning.
Jorge Guimarães: We are a good example of success throughout the country to save energy.
The New Economy: The headquarters of Caixa Geral de Depositos in Lisbon is many things. A place of work for more than 3,000 members of the staff. An efficient building: the first in Portugal to achieve A+ rating for energy use. And in its own way, a work of art.
But above all, it is also home to a bank that is a cornerstone of the Portuguese economy.
António Nogueira Leite: CGD is Portugal largest financial group. We have been around for 135 years.
We have commercial banking activities in Portugal, in which we are the largest commercial bank. We have also an important investment bank that operates not only in Portugal but also overseas. We have 40 percent of Portugal’s insurance market, through our insurance companies. And we have a presence worldwide in 24 countries.
We are a partner of virtually every Portuguese family, because we – out of a population of slightly over 10 million – we have over four million clients. And we are virtually a partner with most of Portugal’s largest companies and also with many Portuguese SMEs.
The New Economy: In challenging economic times, sustainability sometimes takes a back seat but not at CGD. Here, sustainability is more than just an aspiration.
The New Economy: Let’s look at how CGD delivers on its vision of sustainability. How do you put sustainability into practice in the bank’s day to day operations?
António Nogueira Leite: We are very committed to that principal through different angles. In our daily commercial operations, we try to design our products and to address our clients, sharing a vision of the sustainability of their economic activity, of their personal decisions, of our partnering with them.
But also we have activities in terms of trying to reduce our contribution, for example in CO2 emissions. We have a very comprehensive programme of air preservation and of diminishing emissions of CO2. We try as much as possible to use our energy from renewable sources: as you know, we have the largest solar plant in our roof.
The New Economy: Nowhere is the commitment to renewable energy sources more visible than on the roof of CGD’s headquarters: where the bank has installed, 1,600 square metres of solar thermal panels.
The project is known as ‘Solar Central’ and is the biggest solar thermal installation in Portugal. Solar Central has already made a major impact on energy consumption in the building.
Jorge Guimarães: We are a good example of success, after four years of managing a central solar plant and also for the photovoltaic experience. We are quite happy and the results can be shown to everybody.
So it helps at first – saving energy. So in our case, three percent of our consumption. Of course during summer, we have a system with an absorption chiller that enables us to produce cold water that Caixa is using over summer time.
During winter, we have the production of hot water in order to help the climatisation and the water system, the sanitary system and other uses of hot water.
The New Economy: Of course, it is important to remember that 85 percent of Portugal’s energy needs come from imported fossils fuels. So initiatives like Solar Power Central could be pointing the way to the future.
Jorge Guimarães: We are quite happy with the results: that enable us to save energy and also to stimulate our customers – our bank customers – to apply these kinds of systems in their houses, or in their organisations. And in this way, to help the country to save energy.
The New Economy: To see how Solar Central saves energy in this enormous and elegant structure you have to travel several floors below ground.
Engineer Sergio Albino, who works in the energy efficiency team, showed me around Solar Central’s technology, six floors below street level.
This system is the largest and most sophisticated of its kind in Europe, supplying air and water to the building at the desired temperature whatever the season.
A network of pipes carries air throughout the building, while four tanks are each capable of storing and delivering a 100,000 litres of water. This is efficient energy management on a huge scale.
Back above ground, this is what you might call mission control: the room that monitors and controls energy management in CGD’s headquarters.
Here the performance of 20,000 individual point of energy use can be called up on screen at the touch of a button.
Sunshine is one of Portugal’s natural resources. The sun isn’t just good for the tourism and leisure industries: it’s a source of renewable energy for companies which are serious about sustainability.
CGD has established micro-generation systems on the roofs of some of its branches. But this is just one aspect of its policy of taking sustainability into the communities it serves.
António Nogueira Leite: We also look at the country around us and we participate in trying to promote social values. We are part of a project with Euronext NYSE in Lisbon. The Euronext New York Stock Exchange operation in Portugal has a partnership with us for a social values exchange, in which we help promote projects aiming at enhancing social responsibility and social projects within the country.
And we have also been promoting and sustaining the willingness of all of our workforce to participate in community work and in volunteer participation in several social projects. We have over 33,000 hours of social work by our workers, last year.
So we look at sustainability through – I would say – through all possible angles, we can look at.
The New Economy: CGD is an integral part of Portugal financial life; its brand is a familiar presence in cities and towns. The bank’s sustainability policies are helping to build and strengthen the brand’s connection with customers.
Francisco Viana: Our goals at the present time are to focus on innovation, creativity. Building a segmented range, designed and targeted to the need of customers; but also to deliver a more consistent and inclusive financial offer, to achieve higher levels of service and satisfaction, increasing the efficiency of our relationship with customers first, and the general community.
It is an incredible time for brands, due to the challenge of making them improve themselves and innovate. In the current context, and in CGD’s values and visions, we find inspiration in sustainability to build a brand more intimately connected to the Portuguese, and one that make us believe in a different but better future.
Strength, reputation, trust and sustainable development: this is our positioning and how we create distinctiveness and awareness to our activity.
The New Economy: And, of course, the bank has an important function in promoting financial literacy among its customer base.
Francisco Viana: Investment in financial literacy, ongoing since 2008, represents one of the broader aspect of integration within civil society. And it reflects our concern for the future: informing citizens and SMEs about more responsible financial management, in the medium and long-term.
CGD presented Kidzania Park, with a branch for children, where they can engage with banking and learn basic rules for managing their money, savings, and planning their future.
In turn, on the Soluções de Poupança portal, we teach younger children in a fun way to save both money and natural resources. Educação mais financeira is an entity of an educational exhibition that runs in the country, through schools, public libraries and other public spaces. It not only talks about financial education but also it gives a younger and more senior audience, the skills to deal with their personal finances, make choices and informed decisions.
I will also like to underline the relevance of the Saldo Positivo site, which has received over 250,000 unique visitors. Created in 2008, it was the first financial literacy portal in Portugal, promoting the need to educate for conscientious and informed consumption, pointing out solutions for day to day management.
Today we also have the same model for SMEs and freelancers: preparing them for more efficient and effective management at this demanding juncture; essential for the recovery of the Portuguese economy.
We believe in the future for Portugal based on ethics and solidarity, perseverance and inspiration; because we trust the ability of the Portuguese to turn difficulties into extraordinary opportunities for growth.
The New Economy: Even in the post room at the bank’s headquarters, there is a practical commitment to greater sustainability.
The move to paperless communication has reduced but not quite eliminated the daily output of shredded paper and cardboard. But here, the money received from recycling these materials goes towards a social fund for employees. It’s one small initiative, but adds to CGD’s reputation for sustainability.
CGD was recently awarded Best Sustainable Banking Group in Portugal by The New Economy; and by the end of 2011 your environmental performance was rated as the best in the Iberian financial sector. What’s your take on these recent highlights in sustainability?
António Nogueira Leite: First our recognition of the effort. And in that sense, since the organisation has been committed with different players and different people guiding the organisation through a long-term commitment towards sustainability, it’s very nice for all of us, and especially for the entire organisation, that we are recognised.
But that is not the reason why we see sustainability as something that we should pursue as an everyday activity. But it’s clearly a stimulus for us to excel, and to probably improve, as I said in the previous answer, in the areas where we can still learn from the best performers from the best in class. So, it is clearly a motivation to do better in the future.
The New Economy: Banking can be a complex industry, but there is one simple relationship that really counts: the one between the bank and its employees.
At CGD there has been a conscious effort to provide staff with the best training, the best resources, and the best environment in which to work. All this, allied to an equality of opportunity.
Henrique Melo: I would like to give you a small example of how we treat our staff, how we help them to develop, and naturally the opportunities that are created without distinction.
Seven years ago, the percentage of men and women was more or less the same. A few more men than women, with around 51 percent men and 49 percent women. Seven years later, there are now 54 percent women and 46 percent men.
And women are taking charge of the development of the business. And to underscore that, it is really the case that the opportunities we create company-wide are opportunities for all people that are looking to further their own career development, their skills and roles. We have men and women in all roles throughout the company with no discrimination whatsoever.
The New Economy: CGD provides and unrivalled medical service to its employees and their families, at a much reduced cost, compared to private health insurance. This access to a full range of specialist medical care is a major benefit.
At the bank’s headquarters, there is also top quality catering available to thousands of employees. In this restaurant, staff from every department, in every level of the company, enjoy a varied menu. It is part of the bank long-term investment in its people.
Henrique Melo: Our products won’t guarantee our future. It is people who will guarantee our future. That is why investing in people, knowing how to connect people, and caring for people, developing their skills and talents – focusing them on the future – are also important with regards to development.
For us the success of our bank is dependent on the success of our people. Our people are the key to our success; they are the key to our future. Our bank is 135 years old. This long life – we owe it to our employees, as they are, in reality, responsible for our success; they are the key to our development.
The New Economy: Safety and security training is a key part of staff development at CGD. The training is much more extensive and sophisticated than the simple first aid programmes offered by other large companies and institutions.
Safety exercises put the staff through their paces in a variety of challenging scenarios, equipping them to deal with any emergency. The idea is to make employees not just safer at work but also safer at home with their families.
Henrique Melo: To us family is very, very important – we give preference to anything to do with supporting families. We seek to offer conditions that allow our employees to truly maintain strong relations with both the business and their family and that they do not forget about their family when coming to work – the health of our employees and their families.
We offer housing loan support and support when purchasing a home. We help out with the purchasing books and with scholarships. In short, we offer everything that employees might need to obtain a balanced family life.
With regard to the difficulties our employees face, whether personal problems or money problems, we have techniques, specialists, to support our employees. Social carers, psychologists, who are available no matter what the circumstances, to support our employees.
For us this represents a serious commitment. A balanced family life is fundamental to a balanced employee, and balanced employees, create a space inside themselves. They effectively have greater capacity to perform for the company.
The New Economy: The impressive original paintings which adorn the entrance hall at CGD’s headquarters are reminders of the enduring values of artistic expression.
This remarkable building also houses a full sized auditorium; one of Lisbon’s leading venues for concerts, plays and recitals. The auditorium is the centrepiece of a vibrant cultural centre – something which extends CGD’s presence in the wider community.
The New Economy: What is your assessment of Caixa’s performance in the community?
Francisco Viana: CGD’s responsibility is not limited in the ability to achieve good financial results. CGD’s history comprises continuously the promotion of best practices in response to the challenges of Portuguese society – in different times and situations – always seeking to be present in direct support, or social responsibility initiatives.
The work undertaken under the sustainability programme, has earned several distinctions: both nationally and internationally. And it has also been recognised by the European Saving Banks Group, with an invitation to join the committee for corporate social responsibility, which also includes the representation of the European commission.
The New Economy: The dealing room at CGD is a great place to take the pulse of the global economy. All businesses are facing challenging times. CGD is looking to the future on the basis of sustainable and responsible business – a clear set of principles with which to work.
The New Economy: Of course banking is your business; how do you define responsible banking in terms of sustainability?
António Nogueira Leite: I would say something which seems very obvious, but if you look at history, it has not been so obvious in people’s actions. It’s that careless lenders are as hazardous for society as careless borrowers. And therefore we clearly have a very serious commitment to being very responsible lenders, to being very responsible investors and to make sure every decision we take now is a decision, that will in itself, as far as we can see when we take it, be a sustainable decision.
So we are not short-term minded, we always try to solve adequately the trade off, between the need to take short-term decisions, and the long-term view that has to guide our actions.
We’ve seen CGD great work on sustainability but where does the organisation take it from here in terms of commitments for the future?
António Nogueira Leite: Well, basically two things: one thing is to keep strengthening the work that we have already done. And on the other hand it is to exchange experiences and views, with the best in class that we have around the world. Try to see where we can improve, where we can also provide our experience as guidance for others. I mean, we are humble, but not so humble that we do not recognise that we have been excelling in some areas.
But also be very careful and be very attentive to everything that is developing. And to knew areas in which we can invest and we can put our efforts in order to be as sustainable as we can be; in every moment in time for the future.
Rapid socio-economic development in southeast Europe has put significant pressure on countries’ healthcare systems, at a time when costs are escalating. Dionysios Xenos outlines how med eHealthCY can help health organisations become more efficient through training in best practices and IT; and how countries can benefit from the company’s eHealth Network software.
The New Economy: What are the most important developments in the healthcare industry in Southeast Europe, both in the private and public sectors?
Dionysios Ksenos: There have been rapid and decisive developments in Southeast Europe, creating a new environment when it comes to healthcare.These countries and their health systems are in need of technical expertise, of knowledge and of IT in healthcare organisation. These are things that these countries do not have and so they must address these developments.What needs to be addressed? The cost. They must bear the cost of providing health services, which is very high.Secondly, they must integrate health into other sectors as well.And they must take advantage of their two great assets: the sun and the sea. Therefore, they need to enter the field of medical tourism. Third, countries that are located in Southeast Europe and belong to the EU will be required to implement the EU Directive on Cross Border Healthcare within the next months. This means they will be able to provide patients with a choice of doctors within Europe. As a result of the aforementioned factors, these countries must quickly reorganise their health systems.And this can only happen through participation in the eHealth Network. That is all.
The New Economy: Were there any regulatory changes or reforms that changed the field of healthcare and brought it in level with European standards?
Dionysios Ksenos: In the aforementioned countries, there have been no developments and no other reforms in the field of healthcare. Generally, these countries are undergoing a transition period between the old systems and a new era of modernization and democratization.These countries ‒ or most of these countries, I do not mean to generalize ‒ need to improve their health systems.Why? Because health in these countries, and generally in any country, is a factor in social and economic stability. So first they need to rationalise their health systems.And second, they need to bring in the required technical expertise and knowledge.They must reduce the cost of these, so they can get in line with European and international standards.
The New Economy: How can eHealth Cyprus stay on top of developments while ensuring that its customers can keep up to date with these changes?
Dionysios Ksenos: Ours is a company that is constantly learning. The intellectual capital of the company is its employees. That is what the company is. The company is not the chairs, tables or machines. It is its employees. This human capital gives us the ability to keep learning, keep improving and keep monitoring the developments in technology, particularly in health technology; it enables us to produce knowledge and pass that knowledge on to our clients, helping our clients get better, and benefit in the long term. Because if our clients benefit, we also benefit by extension.
The New Economy: What types of services does eHealth Cyprus offer and who are these services intended for?
Dionysios Ksenos: The company provides consulting services for health organisations located in any of the aforementioned countries. When I say consulting services, this involves the transfer of knowledge and technical expertise on health organisation management, on financial management, on IT, on information technology, on the process of preparing business plans. More broadly, it involves finding solutions to how we can change the operating model of health organisations and enter a new era, the era of the new economy.That is the first step of the process. The second is educational services.That means providing education and training to health professionals working in any type of health organisation. This is aimed at transferring knowledge to each and every employee. When it comes to doctors, we are teaching them how to use information technology, how to familiarise themselves with new technologies, how to use management processes and how to take advantage of the new developments in management at their respective health organisations.When it comes to our company, we are learning how to manage these changes – what we call the process of “change management” – that we are going through with some health organisations. This is the most important factor that hinders the process of implementing these changes within health services and organisations.We are figuring out how to achieve better financial management and make the most of the available resources.The third step is developing specific applications. There are health sectors that have to do with very specific people, such as, for example, rare diseases and chronic diseases.We can develop software for these rare and chronic diseases that can help doctors to better manage the illness. We are undertaking software development for information systems.We are developing new applications and, moreover, we have a great range of data for data analyses in health organisations; by enabling health organisations to access this information and data, we aid them in the process of decision-making. Finally, we of course also provide eHealth services (electronic health services).
The New Economy: Do you have any expansion plans? Where do you see your company in the next five years?
Dionysios Ksenos: The company’s motto is “people first”. With this goal in mind, we will expand to all countries in Southeast Europe,
starting from Jordan, Lebanon, Algeria, Palestine, Turkey, Bulgaria, Romania and all the countries included in the broadest sense of the term Southeast Europe.We will suggest to these countries that they make use of the data centre services and of the software, which will be tailored to their needs. They will not be required to invest capital and raise funds now, but they will be allowed to either a) make use of the software and pay per transaction, with a transaction fee, b) pay per transaction and a fixed fee or c) pay a fixed amount for the next 25 years.
This will enable them to reduce the cost of services provision, to upgrade the quality of the healthcare offered and to remain competitive in the years to come, throughout the economic crisis.At the same time, they will be able to expand to other fields, such as medical tourism. The company also aims to enter vertical markets such as eLab, eMedical Offices, and eGovernment, that is to say, to be able to offer E-Services, electronic services within the health sector. This is very important. And we are already developing and running these.Another important service we will develop and expand to include is the eDisease Rare Disease Management. This will allow rare and chronic diseases patients to use the software and to enable them to self-manage their disease; we call this self-management. And finally, a very strategic area for us and one that we want to develop consists of the so-called healthcare games. That is, we will develop games that aim to educate physicians, children and students, including university students, on health issues. This education is crucial. Of course, will also continue to develop technical expertise and provide services, in order to put into practice what we call the “people first” approach.
The New Economy: What is the contribution of eHealth Cyprus to the development of an efficient infrastructure in the area of healthcare in the region and beyond?
Dionysios Ksenos: The company, through its proposal to promote the health project and the creation of an eHealth Network in the countries of Southeast Europe from Algeria to Romania, enables countries and their governments to implement and build an eHealth infrastructure without the cost that this implies and without buying the software; they can simply use the software and pay the cost or remuneration through one of three options. These options are either a) a transaction fee, i.e. a fee paid per each transaction made by the health organisation, b) a fixed amount and a lower transaction fee or c) a fixed amount alone for the next 25 years. This does not require health organisations to invest huge amounts but rather allows them, through the utilisation of the platform and the rationalisation and reorganisation of their systems, to create the capital that will finance the eHealth project through the project itself.
The New Economy: Dionysios Ksenos, thank you very much.
Dionysios Ksenos: Thank you for this opportunity and for the award. I would like to thank the New Economy once again.
I want to offer this award and all the effort that went into it to the citizens of Southeast Europe, because they deserve better health and a better quality of healthcare. I also want to make sure you also understand what for us is a very important message: When we talk about health, we are talking about life itself. And that is something all citizens have a right to. Thank you.
Immupharma’s specialised treatment for those suffering from the chronic disease Lupus has been cleared by the US FDA to move into Phase 3 of testing, with fast track approval once passed. Dimitri Dimitriou explains the different phases of drug development, the strategic importance of Immupharma’s partnership with the French National Research Institution, and the ongoing challenge for the pharmaceutical industry: patent expiry.
The New Economy: You’ve laid claim to having a unique corporate strategy among your peers. What is your business model?
Dimitri Dimitriou: What makes Immupharma different in this business strategy and has been the same since the foundation of the company is that we avoid early stage research. And we focus on niche therapeutic areas, specialist therapeutic areas. The key thing about avoiding early stage research is that its the first part of the drug development process which takes a long time, it’s very costly, and you need to have many scientists and doctors to keep on making discoveries. So Immupharma struck a very interesting collaboration which has given us a number of our drugs up to now with the CNRS which the French national research institution. The CNRS is the largest fundamental research institution government funded in Europe and they have the budget of about 3.3 billion euros and over 30,000 employees. So this allows so to cherry pick inventions which are discovered there which we believe have a good potential commercially, globally and inhabitable to be in specialist theraputic areas. So with targeting diseases which are not well met at all, where there aren’t many competing drugs available and we avoid having our own labs which means that we manage to keep our entire costs low.
The New Economy: So what drugs do you have in development?
Dimitri Dimitriou: We five lead drugs for the moment. 2 are in clinical trials, the other 3 are at the pre-clinical stage. We have a pipeline also with another 2 platform technologies which we can use to develop further compounds in the future. The most advanced drug is called Lupuzor and that is a very special treatment for patients who are suffering from Lupus. This is a very depilating disease which is chronic so it lasts a lifetime and there aren’t currently any treatments for the disease so people tend to take things like steroids which has symptomatic treatments. Secondly drug is an anti cancer drug which is now just finished phase 1 2a study so this the first time in humans it’s been dosed for about a year and we have seen more than 20% of patients which were previously on other treatments that had failed. With progressive disease and metastasis to stabilise. So Lupozor is much more advanced of course because we finished some time ago now phase 1 and phase 2a and also phase 2b and the greatest thing what makes us really proud of Lupuzor is that it has recently been approved by the US FDA to go into phase 3 in the United States with whats called a special protocol assessment and also fast track approval.
The New Economy: So what are the particular processes that a drug will go through in the development stage?
Dimitri Dimitriou: Drugs take a long time to be discovered so the longest part of the cycle is the pre-clinical discovery and development. So once an invention is created a compound has to go through rigorous testing pre-clinically ie lab testing and some animal tests which we have to do to ensure first of all that its not really toxic and secondly get some proofs of the mechanism of action and also of potential efficacy. So once that is complete you are allowed to test in humans. So the first study is called phase 1 and that is typically in volunteers, although in areas like cancer for example where we are testing a cancer drug, you can test patients. So if phase 1 works and you see no toxicity you go into phase 2. Now phase 2 sometimes is just one study which is just called phase 2 but sometimes you can to a small phase 2 and large phase 2 so if phase 2a in a small number of patients works well, then you go into phase 2b and you prove the concept in a larger setting. Then if they also pass then the final phase where Lupuzor is going to start now is called phase 3 and that typically proves the result which you have seen in phase 2. If that meets the end point then you have approval.
The New Economy: What can you tell us about your research partners and corporate partnerships?
Dimitri Dimitriou: Well we have this very important link and collaboration or research collaboration which we have had now for I think more than ten years. It’s working very well and it allows us to keep our internal costs low by not having our own labs for discovery. If our funds research which takes place at the CNRS obviously our contribution is tiny compared to the overall budget. This allows us access to probably about 50 scientists and medical doctors in distribution which is all over France and the way the collaboration works with the CNRS is that we licence drugs exclusively to Immupharma. So Immupharma has the world wide rights for this drugs exclusively. We progress development with our own funds. We would find a partner unless we get into a stage at the end where we can commercialise ourselves then we would pay the CNRS either royalties and sales if we commercialise alone, or part of the revenues which we would receive out of another partner if we do make a deal.
The New Economy: Generally speaking how is the pharmaceutical industry positioned at the moment, and what are its main challenges?
Dimitri Dimitriou: The pharmaceutical industry right now I guess is probably not the only sector in the market. The world economy is not in a terribly good state at the moment. But the challenges which the pharma industry is facing have been probably the same over a number of years now which is patent expiries. Patent is obviously the reason why a company can capitalise on the years of research and millions of costs which have been spent on discovering and marketing a new compound but at the end the patent expires and when the patent expires anybody around the world is allowed to basically copy the drug and sell it at very very low cost because they haven’t done the research and marketing effort which is why I think there has been a fashion in the recent years that big pharma is really looking for acquiring or licensing new compounds out of other companies typically smaller ones like us.
The New Economy: You have five drugs in development, so what’s next in the next few years for Immupharma?
Dimitri Dimitriou: Well we are at a very exciting stage I think quite close to possibly a very big inflection point with the company. We had a corporate deal which we closed in 2008 and 2009 with a US company called Cephalon. It was initially an option on their part to continue for a worldwide licence with pre-agreed rights where pre-agreed terms, before we had the results of the phase 2 study which Immupharma was running on Lupuzor. So when the results came out they they exercised the option quite quickly, they paid us another $30million so so far we have received out of Cephalon $45million. Then they progressed development at their own cost. They managed to get the drug now approved by the FDA for the final phase 3. Cephalon was acquired by a large company called Teva pharmaceutical industries last year and as part of our original agreement with the contract they didn’t have the rights to assign Lupuzor on to a new entity and there was also a non complete clause which came into place. So effectively we decided, with the agreement of cephalon, that we would take the drug back so it’s great for us because hopefully we can have a second bite at the cherry.
Suape is the main shipping gateway in north-east Brazil – but as a hub for more than 100 companies across a range of economically significant industries, it is far more than just a port. Frederico Amâncio discusses what a further investment of $1bn will add to Suape’s existing $22bn structure, and the importance of developing sustainably in an area of rich environmental importance.
The New Economy: The key thing with any port of course is its location, so what makes Suape stand out in this regard?
Frederico Amâncio: Two important characteristics os Suape is the infrastructure, the deep waters and all the imported infrastructure projects and the location. Suape is located on the North east of Brazil and today is the main gateway for the north and north east brazil very close to Europe and very close to North America.
The New Economy: And it’s not just a port, its a hub for more than 100 companies. What kind of benefits does that bring?
Frederico Amâncio: We have more than 100 companies, some of them are in the logistic area but many industries like refineries, shipyards and other companies. These companies are really connected with the port operations.
The New Economy: So how is Suape growing along with Brazil’s economy?
Frederico Amâncio: Brazil is in a special moment right now. Is one of the countries that drills more in the world right now. Is the seventh economy in the world and Pernambuco, the state where Suape is located, is a region who drills more than Brazil. And the numbers of Suape are really better than all the ports in Brazil. Last year the cargo handling grew 25% in tons and continues 35%. So the port is growing much more than the economy of the state of Pernambuco, and more than the economy of Brazil. So the numbers are very very important for Suape today.
The New Economy: Indeed the numbers are large. How much has been invested into making Suape what it is now?
Frederico Amâncio: Right now there are being invested more than $1billion in infrastructure in the port of Suape. And also there are more than $22billion in private investments in Suape right now. We are talking about a new oil refinery, shipyards, a steel mill, petrochemical plant. So very important projects not just for the region, not just for Brazil but also for the port of Suape.
The New Economy: So how do you achieve that balance between growth and sustainability?
Frederico Amâncio: Sustainability is an important issue for the port of Suape. More than 59% of the area of the port of Suape is dedicated for ecological environment and preservation and we have many important projects, not just in the environmental area but also in the social area and working with the population of the region.
The New Economy: And looking ahead, how do you think we will see Suape developing in the future?
Frederico Amâncio: The port of Suape is working to become an important motor of sustainability and economic development not just for the region but also for the whole country. Suape is the most important gateway for north and north east Brazil but we want to be the best, not just the best but also the most important hub port in Brazil in the near future.
The New Economy: Frederico Amâncio, Thank you very much
Frederico Amâncio: And thank you very much for the opportunity.
Today Villacero is a global company, working at every level in the value chain of the steel industry – but when it was founded in 1955 it was just a small distributor of products, serving industries in its hometown of Monterrey, Mexico. Julio Villareal discusses the company’s journey into the international markets: starting with an advance into the US in 1980, to its truly global subsidiary operations today.
The New Economy: Julio Villareal Many congratulations on receiving the New Economy award for Best Corporate Citizen, Mexico 2012. What is the position Villacero in the worldwide steel market?
Julio Villareal: Villacero is a global company with a mission to strengthen the steel industry’s value chain. This means generating added value to its products and services while minimising economic risks t throughout the production process.The industry, consumers, service providers and the financial sector regard Villacero as an excellent partner. Villacero is an active participant in the entire value chain, providing optimal comprehensive solutions through the minimisation of risks in the products that the steel industry requires. This is accomplished thanks to Villacero’s significant investments and its vast network, supported by the most advanced technology and a professional and experienced administration of issues related to finance, logistics and international trade, whilst ensuring a strict adherence to the most ethical business practices.
The New Economy: How has Villacero expanded in to international markets?
Julio Villareal: Villacero has been present in international markets for over 30 years. The company has placed special emphasis on its growth as a response to the needs of its customers and suppliers, recognising the importance of driving the activities that distinguish it towards the international arena. Since the early 1980s, Villacero took the first step of its expansion when it directed its attention towards our neighbours to the north, the US. Today, Villacero has an important presence in the US and global markets. One of the most important steps Villacero has taken in its globalisation expansion happened in 1999, when the company grew its operations towards Europe, specifically to the Hanseatic city of Hamburg, Germany, where a partnership with Coutinho Caro & Co. was established in order to expand its presence in international markets. It did so through the creation of CCC Steel, with which Villacero, just like The Beatles, found favourable conditions for the development of its global activities. The expansion process was consolidated in 2008 when Villacero decided to merge its steel trading activities to create Coutinho & Ferrostal (C&F), an independent steel trading company with an efficient and professional staff. Although it’s still a relatively new company, its origins can be traced back to 1984. C&F is present throughout 58 cities in 34 different countries, such as the UK, the US, Germany, China, Singapore, India and Brazil, among others.
The New Economy: So what are Villacero’s future investment plans?
Julio Villareal: Currently, Villacero is immersed in an investment process which started in 2011 and s expected to run until 2015, with the goal of providing a wider array of products and services to its customers.
The New Economy: And what about the companies plans in foreign markets?
Julio Villareal: As was previously mentioned, C&F has an important presence in most regions of the world. What we currently seek is to consolidate this global presence with the fine-tuning of a regional business model that strengthens the bond with our customers and suppliers. This requires the establishment of a structure based on geographic and strategic regions, and incorporating other products and raw materials as well as regional logistics and financial services. Our objective is to consolidate the sustained growth of our customers and suppliers, optimising their costs and increasing the added value of the products and services they offer in their natural markets.
The New Economy: So what’s the relationship between Villacero and the community?
Julio Villareal: In Villacero we have an ongoing commitment with our community. Our social responsibility and environmental protection programmes are a clear example of this, as is the support we provide for the welfare of our employees and their families in order to create an optimal working environment in which they have opportunities to continue excelling in their personal and professional development. This commitment was reflected in the creation of the Villacero Foundation, founded in 1988. It’s mission is to contribute to the comprehensive development of Mexican society, providing a better quality life for its citizens, creating an optimal environment and better employment opportunities, supporting education, culture and social well-being.
The New Economy: And the Villacero Foundation is a major patron of the arts?
Julio Villareal: That’s right. As part of its goal to improve quality of life in our society Villacero promotes culture and the arts. The Villacero Foundation has organised various exhibitions to bring people closer to the talents and efforts of world-renowned artists. Over the past seven years, the Foundation has organised 14 steel sculpture exhibitions in eight countries. In 2012 there will be an exhibit in Santiago, Chile. The Villacero Foundation is the main reason we are here in this great city of London receiving this award. This distinction is an acknowledgement of the people, institutions, and companies of the steel industry that have participated alongside Villacero and its people throughout these years in promoting the arts, creating a tight bond between economic development and society, with the objective of improving quality of life. I’d like to express my personal thanks to each and every one of them.
The New Economy: Julio Villareal, thank you very much
Energy companies come under hard scrutiny for corporate citizenship because of the significant damage they can cause if they don’t take their responsibilities seriously. Rico Rustombi talks about Indika Energy’s commitment to professional excellence and environmental stewardship, and how good corporate governance means creating a balance between economic and social goals.
The New Economy: What does good corporate citizenship mean to you at Indika Energy?
Rico Rustombi: Well, good corporate citizenship is about commitment, and commitment is what makes the difference. It is as simple as that: commitment to professional excellence and responsible stewardship in all its endeavour is the key.
Indika Energy believes that no company can sustain operation in the long term without effective corporate governance. It will ensure consistently solid operational performance, providing added value to its stakeholders.
The New Economy: What is Indika’s place within Indonesia’s energy sector?
Rico Rustombi: Well, Indika energy is a leading integrated energy company, providing its customers with total energy solutions in the areas of energy resources, energy services, and energy infrastructures. Which covers coal production, oil and gas epc, contract mining, coal transport and logistics, as well as power generation projects.
Our portfolio businesses combine with our local knowledge expertise and strong industry reputation enable us to provide complementary products and services to domestic and international customers; thereby positioning us to capture growth opportunities across the Indonesian energy sectors.
With this strong integration along the whole energy supply chains has been the main driver of Indika Energy. We believe that with more diversified investor base, Indika Energy is about to realise its vision to become a world-class integrated energy company, and become the pride of Indonesia.
The New Economy: You’ve been expanding primarily through acquisitions, and you recently brought PT Petrosea into the company. What’s the story there?
Rico Rustombi: Petrosea’s stellar performance has further affirmed the value and synergy brought by the group’s acquisition. Through this acquisition we expanded our energy service segment, mainly in mining contracting activities, and also harnessing the expertise in our construction and engineering capabilities, which can be channelled in support of the core business.
The acquisition of Petrosea marked the highlight of our pursuit to strengthen the business position, create synergy for growth, and completed the company’s energy value chains.
We have emerged as one of the few Indonesian companies capable of providing a complete mining solution: from pit to port using in-house resources.
The New Economy: And how vital is good corporate governance for a large company with diversified assets like Indika?
Rico Rustombi: We believe that no company can sustain operation in the long-term without effective corporate governance.
Eventually, it’s a part of a much larger picture that differentiates the performance level of companies within their respective industries.
For that reason, Indika Energy consistently strives to surpass existing standards; not only in the energy sector, but also in the environmental concerns and corporate social responsibility.
Once again, commitment is what makes the difference: here, good corporate governance is to create a balance between economic and sociological goals, as well as between individual and communal objectives.
The New Economy: You’ve touched on social responsibilities; what is Indika’s approach to this area?
Rico Rustombi: At Indika energy, corporate social responsibility is an important core value, which forms an integral part of the company’s cultures. Through synergistic strategy, our presence is not solely to enhance Indonesia’s energy sectors, but also to give back to the people of Indonesia.
Indika’s CSR programmes are focused in health, education, community development, and environmental issues. One of these programmes, to teach of Indonesia movement, what we call Indonesia manager, was initiated in 2010. It immediately mobilised 120 best scholars newly graduated from the top university in Indonesia to teach in elementary schools in more than 100 villages from east to west in Indonesia. Where quality educational facilities and educators are lacking, this programme’s goals are to empower them through better education.
Indika Energy last but not least is a corporation with a strong commitment to stewardship; not only within our business sectors, but beyond – into the community and natural environment in which we all exist together.
The New Economy: Rico Rustombi, thank you very much.
Renault and Nissan have been pioneers in zero-emission motoring thanks to their strategic alliance, and are set to capitalise as the market expands beyond the niche consumer. Nissan sold 25,000 LEAF models, and Renault has already taken 5,000 orders for its new EVs in three months. Thierry Koskas explains the changes making electric vehicles more appealing and accessible, and the behaviours they’re set to change forever.
The New Economy: Renault-Nissan has been a real pioneer in development of electric vehicles, so, what point in the curve are we at, in the adoption of the electric car?
Thierry Koskas: I think we are really at a tipping point in terms of electric car adoption. Previously the number of EVs that were sold in the world was extremely limited; now we are moving to a higher volume. For example, Nissan sold in total 25,000 Nissan LEAF. We have launched from Renault’s side the first vehicles three months ago, and we have already taken 5,000 orders, so we are now heading for big volumes. It’s really changing.
The New Economy: As you touched on, your group has produced the most popular zero emission so far, the LEAF. Why do you think that particular model has been a winner?
Thierry Koskas: I think it makes a big big difference compared to everything we’ve seen before. Reasonably cheap car, range that enables you to use the car on a daily basis, for daily trips. Very convenient. And obviously, zero emissions.
That changes a lot, compared to what we saw before. So, that makes EV now popular, whereas before it was very much a niche market.
And now another big addition to the range, in the shape of the Renault Zoe. Why do you think this kind of class of car might catch on with the customer; not so much the fleet customer, but the private buyer?
Yes, that’s going to be a winner. That’s typically a city car: four metres long, so you are really looking at, you know, every family that has a second car in the household. They can replace it with this type of car. Extremely convenient to commute, do daily trips. And as it’s released a year after the first models, that will be more advanced technically. Better range, lower price; so there will be a lot of progress on this car.
The New Economy: Is there a particular segment of the market where you expect electric vehicles to really make an impact in the next few years?
Thierry Koskas: Yes: I think the EVs will very much spread in a few typical segments like second cars. That’s a typical usage for an EV, I mean, with a car that can make 100 miles, that’s very good. Also let’s not forget vans, especially the minivan segment, where you know, you need urban delivery. Sometimes you get restrictions in some cities – you cannot go into city centres and so on, but with an electric car you can. And that will probably be one of the most promising segments we have in the future.
The New Economy: Of course the technology and the curb appeal are improving all the time, but what’s your approach to overcoming our love affair with the internal combustion engine? Persuading petrol-head consumers to go electric?
Thierry Koskas: Well I’m not really sure that we have a love affair with petrol cars! If it’s the only thing that you know, of course, you have to be in love. But at the end, as soon as you try an EV, you fall in love with it. That’s very much the feeling: to drive in silence, very good acceleration, the feeling that it’s good for the planet as well. Very convenient on a daily basis. So I think it’s very much a question of, okay: let’s try an EV, and you will soon forget your previous lover.
The New Economy: Looking ahead, one forecast from the International Energy Agency sees as many as 2.5 million electric vehicles on the world’s roads as soon as 2020. What has to happen to make that forecast a reality?
Thierry Koskas: Well actually, we think there could be more electric cars than 2.5 million in 2020. There are a few conditions though. The first one is, for the first years, we need the government’s help to develop EVs. It is more expensive at the beginning, so there is need for some support. We need also the infrastructure to spread; and we need also to ensure there is consistent progress on the technology.
With all that in mind, you know, definitely the petrol price will increase, and so EVs will spread. So, there are a few conditions, but we are extremely confident that it will happen.
The New Economy: Thierry Koskas, thank you very much.
Smart grids aren’t something that will just suddenly ‘happen’ and solve our energy problems forever, says Schneider Electric’s Jonathan Hart. The smart revolution is granular, requiring many small steps from suppliers, consumers and regulators to solve the problems of higher demand, lower emissions and ancient infrastructure.
There’s a lot of interest around the revolutionary potential of Smart Grids: but a true, ‘version two’ infrastructure model could take 40 years to implement. PowerSense can digitise and retrofit existing power infrastructure, and has worked for five years to develop exactly the right product for the industry.
When you think of the Gulf, you think of oil. But the Gulf states’ own energy needs are growing fast, and the more they use, the less they can export. Life Energy’s CEO presents the business case for greater use of renewable energy in the Middle East.
The New Economy: What role would you say renewable energy is playing in the development of the gulf regain?
Ahmed Al-Ozairi: The explanation of growth taking place in the gulf is demanding another source of energy other than the existing type of energy which is purely on fossil fuel. The growth in our region is from 6% – 8% annually on the consumption of using energy. That is 3/4 folds of the world wide consumption growth. Such a growth requires us to find another source of energy to occupy that kind of demand.
The New Economy: Think of the gulf and you think of oil as the main energy resource. So, realistically, how significant a part could renewable play in the energy mix?
Ahmed Al-Ozairi: As we know the gulf states main economy is about producing oil, that type of economy would require to produce and export rather than to produce and consume. So having to include that type of energy would help to export more and consume less and hence a better economy for the region.
The New Economy: Let’s go back to the origins of Life Energy, what inspired you to set up the company?
Ahmed Al-Ozairi: The region has always been known as a prime source of the fossil fuel. But with an ambulance of soil and wind energy available in the region, we thought that would be a perfect tie in to produce more energy.
The New Economy: So what is the road map now for the company, looking ahead?
Ahmed Al-Ozairi: Life Energy will have focus in 2 different segments. 1 of them I would call the utility segment and then there will be the industrial segments. In the beginning we will be focusing more on the industrial area and that will help in producing the energy required for such a region. After that we will be doing the energy for the other parts of the utility sector.
The New Economy: Looking ahead, alliances or partnerships with other companies might be important for you?
Ahmed Al-Ozairi: Without these partners we wouldn’t exist. Without their help we would not be able to complete our achievements. We believe we need to have technology partners, implementation partners and financial partners to be able to achieve our goals.
The New Economy: Ahmed Al-Ozairi, thank you very much.
