On 30 August 2024, CEIBS Global EMBA programme welcomed an audience of nearly 300 people to the inaugural event of its latest series – Building Bridges. Hosted in Shenzhen, the China and Southeast Asia Symposium was the beginning of the 12-part series’ world-spanning journey to explore what defines the business landscape between China and the rest of the world.
Through a series of keynote speeches, panel discussions and open dialogue sessions between the audience and on-stage speakers (made up of expert analysts from industry, government and diplomatic channels, and leaders from both MNCs and Chinese companies) the symposium gave everyone in attendance a chance to better understand the complex realities that drive relations between China and its ASEAN neighbours.
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In his opening speech, CEIBS Vice President and Co-Dean Professor Zhang Weijiong pointed out that there is a great deal of turbulence and tension in the world today. Chinese enterprises preparing to "go global" must pay attention to the rapid changes in population demographics, scientific and technological progress, as well as sustainability and ESG (environmental, social and governance) global trends. He stressed that cooperation between China and Southeast Asia, giving play to their respective competitive advantages, is a win-win arrangement that allows both entities to prosper together.
Opening Remarks by Prof. Zhang Weijiong
Strength in Diversity – In Diversity, Strength
After introducing the event and its agenda, the initial keynote speech was ably delivered by the MC, CEIBS’ own Professor Bala Ramasamy, who is also the Director of the Global EMBA programme and an Associate Dean of the school. In his speech – Understanding Southeast Asia – Professor Ramasamy laid out the main reasons why the rest of Southeast Asia is perpetually “looking both ways” as its individual nations consider the ongoing rivalry between China and the United States.
The region is of crucial interest to both superpowers, while its leading economies are quietly gathering various forms of strength and influence of their own. With GDP growth rates that equal or even outstrip that of China, ASEAN represents economic vibrancy, new opportunities for trade and innovation.
The region comprises 11 countries, each with its own unique government system, population makeup, urbanisation rate, religious customs and economic conditions. For Chinese companies looking to establish themselves in the region and cultivate strong ties, carefully considering this diversity will be key. The professor stressed that Chinese companies should not only seek self-reliance, but also embrace an attitude of corporate social responsibility by promoting local development and prosperity. Not only is this the foundation of responsible business, it can also provide all manner of competitive advantages in varying scenarios.
Keynote Speech by Prof. Bala Ramasamy
Looking beyond the Current Cycle – Assessing China’s Logistical Muscle
With this wider context mapped out, the second keynote took a closer look at a specific element that is crucial to understanding the China/Southeast Asia business relationship – logistical storage.
This speech, Charting China Supply Chain Volatility, was delivered by Eddie Huang, a CEIBS MBA alumnus and the Greater China President of Prologis, a global leader in logistics real estate. Eddie previously served as chief strategy officer of SF Group, the largest express and supply chain service provider in China and Asia (3rd largest globally).
Mr Huang first presented an overview of how China’s logistics storage market has been hit with severe overstocking and oversupply conditions, which have led to the current situation where Chinese warehouses have an average vacancy rate of 20%-30%. After the demand spike during COVID, demand has slumped and has yet to “normalise” in the post-COVID years.
For the symposium’s attendees, this was a fascinating insight into the immediate and long-term thinking of companies outside China looking to make use of its logistical capabilities as strategically as possible.
Keynote Speech by Mr. Eddie Huang, Greater China President of Prologis; CEIBS Alumnus
“In the current cycle, no industry or company is invulnerable. Everyone must think survival-of-the-fittest and not succumb to inertia. Go overseas, find new opportunities – this is a must. No Chinese company can escape the attraction of a global market, and China’s technology and management capabilities will support this kind of expansion.”
Sensitivity, Due Diligence, Cooperation – Why and How Should Chinese Companies Look Towards Southeast Asia?
The symposium also held two panel discussions, both involving a joint exploration of the macroeconomic landscape of Southeast Asia, while also enabling practical sharing from business leaders and policymakers whose daily work is to live and breathe the China/Southeast Asia relationship.
Panel 1 – Why Southeast Asia? What does it offer?
Host – Prof. Bala Ramsamy
Panellists:
Jillian Lim, Executive Vice President and Chief Data and Digital Strategy Officer, Economic Development Board, Singapore; CEIBS Alumna
Kesrin Ariyapongse, Vice Secretary General, Thai Chamber of Commerce in China
Liky Sutikno, Chairman, Indonesia Chamber of Commerce in China
Panel I
In the first panel, the three representatives from the Singaporean, Thai and Indonesian governments examined the regulatory landscape, supportive policies and broader developments that make Southeast Asia so appealing to companies looking to expand, especially those headquartered in China.
Jillian Lim, Executive Vice President and Chief Data and Digital Strategy Officer, Economic Development Board, Singapore; CEIBS Alumna
“We welcome people from outside Singapore to work here because as an island country, we need a steady influx of international talent to support our industries and overall development. We offer excellent, government-backed talent matching programmes, providing training opportunities and direct talent replacement options. Plus, our work visa setup is flexible, accommodating and built on the practical needs of Singapore and the international companies it hosts.
Kesrin Ariyapongse, Vice Secretary General, Thai Chamber of Commerce in China
“Thailand is a country with plenty of geographical advantages. We rarely have any natural disasters, but at the same time, our location makes us well connected to other Southeast Asian countries by land and sea, so Thailand can be a regional hub. For example, if you want to expand into Vietnam, Laos or Cambodia, then Thailand is a good intermediary point. The Thai people are another great selling point; 70% of the Thai people have Chinese ancestry, this allows for easy points of connection on a cultural level.
Liky Sutikno, Chairman, Indonesia Chamber of Commerce in China
“Indonesia has a population of 280 million people. We are the most populous country in ASEAN and also the only ASEAN country in the G20, and we have great strength in natural resources and big markets, but we need advanced manufacturing and processing. Therefore, if a Chinese company has the competitive technical know-how that can utilize Indonesia's natural resources, then they can set up production facilities to export. Indonesia is a great place for their expansion.”
Panel 2 – How Can Companies Best Prepare to Expand into Southeast Asia?
Host – Hobbs Liu, Assistant President; Alumni & Development Office Director; General Secretary of CEIBS Education Foundation
CEIBS Assistant President, Alumni & Development Office Director and General Secretary of CEIBS Education Foundation Hobbs Liu hosts the panel
Panellists:
Jim Zhang, Head of OPPO Indonesia Business, OPPO Indonesia
Wilson Wong, Co-founder and CEO of Gotofreight Limited; CEIBS alumnus
Qin Yong, Vice President of Mori Building China.; CEIBS alumnus
Panel II
Building on the insights of the first panel, the second then delved into the specifics of what companies must bear in mind when preparing to launch into Southeast Asia. Bearing in mind the vast differences across the region in terms of its cultures, governmental setups, regulatory frameworks and general business philosophies, the panellists advocated for an openminded, flexible, and always culturally sensitive approach.
Jim Zhang, Head of OPPO Indonesia Business, OPPO Indonesia
"Treat your employees like they’re your people, because they are. We have been developing in Indonesia for 11 years. We have nearly 20,000 employees. We have not outsourced labour services; we manage them ourselves, but we have not had any labour disputes. This is part of our business culture. In the face of temptation and pressure, keep calm and do the right thing."
Wilson Wong, Co-founder and CEO of Gotofreight Limited & CEIBS Alumnus
"If Chinese companies want to expand into Southeast Asia, it’s better to do so collectively, collaboratively, to build a strong ecosystem, with strong synergies. Independent successes are achievable, but if we go out together, we achieve more with less risk."
Qin Yong, Vice President of Mori Building China & CEIBS Alumnus
"Cultural sensitivity is a must, the same as it is doing business anywhere. For example, in the business community of Jakarta, we don’t wear suits as our business formal attire; we wear batik clothing. This is an unmistakable show of respect for Indonesian cultural heritage. It helps us gain understanding, show our respect and commitment, and ultimately build better long-term relationships."
Southeast Asian Appeal in Practice – Aice Starts from Scratch to Become Market Leader
To give a real-world example of why Southeast Asia’s regional markets represent such a tempting expansion opportunity, and how it can be done successfully, CEIBS Associate Professor of Organisational Behaviour Mike Mai enjoyed a sit-down dialogue with Jack Wang, Co-Founder & CEO of Singapore Aice Group.
CEIBS Associate Professor of Organisational Behaviour Mike Mai hosts the dialogue
Ten years ago, Jack Wang and a select few associates decided to take their collective experience and knowledge of China’s ice cream industry and establish Aice as a new brand in Indonesia. Since then, their enterprise has grown 60 times in size, becoming the biggest ice cream brand in Indonesia, with significant market share in the Philippines and Vietnam.
Jack Wang, Co-Founder & CEO of Singapore Aice Group
Jack’s advice for building a brand from scratch in Indonesia highlighted the utmost importance of understanding and respecting one’s target audience.
“We literally took thousands of ice creams from China and put them out with street vendors for people to try. We spoke with them directly, finding out their preferences, their preferences, their consumption habits. We lived with Indonesian people on rural islands as well as the big cities. This kind of work took around three years but by the end of it, we had a comprehensive understanding of how we could fit our products to match their consumer habits, purchasing power, etc. We understood the market, and it allowed is to innovate and give them the products they wanted.”
From Shenzhen to Singapore – Building Bridges Continues
“We can all agree that if Chinese companies want to go overseas,” said Professor Ramasamy in his closing address, “there is no fixed formula. It mainly depends on which country you want to go to and what industry you are engaged in. However, our parting advice to you all is simple: dig deeper. Understand your target market and the people who live there. Dig deeper until you know everything you need to know.”
The Building Bridges series is about understanding both sides of China’s relationship with its respective partners, rivals and trading blocs. Accordingly, the 12 events of the series have been separated into 6 pairs; one looking out from China, and one looking towards it. The second part of the China/Southeast Asia pairing will be hosted in Singapore on 3rd October 2024.
Before the Shenzhen symposium came to an official close, it was the ideal forum to announce the formation of the CEIBS Global EMBA Going-Global Club. This is the latest student club in the GEMBA roster, and its leadership is eager to begin planning new events and platforms that can help CEIBS students, alumni and friends when preparing to take their company global.
CEIBS Global EMBA Going-Global Club Launch
Whether you attended the Shenzhen event or are new to the series, we hope you can join us in Singapore next month for further insights into this occasionally complex yet always fascinating relationship between China and Southeast Asia.
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