GBO FORUM

Mr. D David T.J. Chan
Harvard University Business School
President of World Trade Asset Market Inc.
Chairman of World Trade Assets Market Limited
Director of World Trade Assets Association
Director of World Trade Assets Institute


NEW CENTURY, NEW ECONOMY AND NEW MARKET
World Trade Assets Market Inc. (WTAMI)

The 21st century is a new century of political multi-polarization, cultural diversity and economic globalization as well as a century full of challenges. A new century brings a new economic era that needs a new capital market. World Trade Assets Market Inc. is a new trade market to accommodate the requirements of a new century and new economy.

In the 20th century industrial period, several capital markets such as stock market, bond market and exchange market, etc. were successfully developed in the economic field. Nations and their state-owned enterprises and private entities benefited hugely from funds generated from capital market invested in the areas of construction, production and operation. Repeatedly invest in capital market with funds accumulated result in expansion of world assets in quantity and quality. This is inevitable in the development of a capital market.

The 20th century industrial age’s management system cannot cope with the fast political, economic and cultural developments of the new 21st century.

 How to handle privatization of state-owned assets.
 How to handle trading of private assets.
 How to assist industrialization of new high technologies.

People in economic, investment and financial communities that follow new economic theory will consider converting intangible assets to tangible assets, converting tangible assets to securities and monetizing portfolio and complementing the capital market and improving the capital market system at the same time establishing innovative capital market. Only when all these are successfully done can privatization of state-owned assets, trading of private assets and industrialization of new high technologies can be solved. To achieve this, it is necessary to have an asset trade market. Assets trades in the capital market began to increase in the previous’ century but investment banking business on mergers and acquisitions had not strengthened its market. When the new century arrived in 2000, World Trade Assets Market Inc. (WTAMI) was established by people in the financial industry to unite worldwide those involved in asset transactions through adopting a membership association. WTAMI applies electronic network technology in world assets trade information and standardizing and marketing world assets trade with knowledge in laws, financial affairs, technologies, management and operation in considerable size. This is the viable operation of World Trade Assets Market Inc.

Foremost, a new century needs a new economy, while a new economy requires an assets market. The assets market will promote and develop the world towards peace and prosperity. Now, I want to give you an introduction to market positioning, operation system and trade procedures of WTAMI.

1. MARKET POSITIONING
 State-owned assets: Currently, operation system and management methods set up by governments have not been able to meet requirements of development of the new economy. The best way out is to privatize state-owned assets. And WTAMI recognizes privatization of state-owned assets through separation of ownership and control and assets disposal in the industry.

 Private assets: In the previous century, there were successful stock markets, however, over ninety-five percent of companies were not able to operate taking advantage of this capital market. WTAMI is utilizing the existing capital of small and medium sized enterprises and applies merger or acquisition to realize promotion and business expansion.

 Scientific and technological assets: Modern technologies also need industrialization. WTAMI applies intellectual property sharing to assist capital market operation of technological enterprises to realize their market potentials.

2. OPERATION SYSTEM
 Unite world operators and investors involved in assets trade to organize a membership association to form the primary market, World Trade Assets Market Inc., as purchasers in assets trade.

 Organize regional assets markets in the secondary markets that are responsible for receiving membership applications from enterprises and organizing them as sellers in assets trade..

 Market at all levels with professional members; providing professional services to arrange assets trade procedures such as collection, sorting and recommendation (by brokers) of assets (including investment application documents), assets assessment (accountants), assets statutory requirements (investment banks) and assets deal conclusion (lawyers), etc.

3. TRADE PROCEDURES
 Electronic transaction: WTAMI has established World Trade Assets Market Bulletin Board (WTAMIBB) to provide up-to-date assets trade information to its worldwide members and to attract purchasers.

 Business talk: The market arranges representatives authorized by purchaser and seller to orderly carry out project assessment, investigation, negotiation and concluding the deal in accordance with relevant rules.

 Delivery of assets: make safe and reliable payments via Bank for International Settlement according to instructions in agreement signed by the purchaser and the seller: deliver assets (shares) entrusted to a custodian bank by the seller to the purchaser (investment member), at the same time deliver funds entrusted to a custodian bank by the purchaser to the seller (assets member).

World Trade Assets Market Inc. is a worldwide international assets trade platform. Enterprises and investors who can make full use of the market for international capital raising and for intangible and tangible assets trade will be successful in privatization of state-owned assets, trading of private assets and industrialization of new high technologies.

www.gboforum.com

Dr. Ng Lin Fung
Chairman and Managing Director
of International Po Fung Finance
Holdings Limited


Opportunities from the Singapore-Hong Kong Financial Cooperation in the China – Asean Economic Development

Currently, both Singapore and Hong Kong have faced the same challenge whether they would be able to continue growing and benefits from the China - Asean Free-Trade Zone Agreement. Both countries should develop win-win strategies cooperation.

The proposed 5 key value-added points for Singapore-Hong Kong Financial Cooperation are as follows:

1. Developing a Business Trading Cooperation connected “bridge”: During the transitional period of set-up the China - Asean Free-Trade Zone Agreement, both China and Asean will need the foreign investments support and their financial expertise/assistance to assure the investments, trading and business cash flow are operating effectively and efficiently, especially China have invited foreign investors to China market and encouraged the local enterprises move to overseas market. Therefore, both Singapore-Hong Kong are playing important roles to support the business relationship within China – Asean with their financial market expertise and experience.

2. Fostering a “closest” Business Relationship: Based on both Singapore-Hong Kong their strategic locations, Singapore have a stronger and closer relationship with Asean and most of these Asean enterprises have their offices in Singapore. Whereas, Hong Kong is close to China mainland and most of Sino-entities have their offices in Hong Kong as well. Therefore, Singapore-Hong Kong financial market services have maintained a close business relationship with China - Asean and have developed a “closest” financial cooperation relationship.

3. Set-up Business Fundraising “resources”: Both Singapore-Hong Kong have accumulated substantial experiences and resources in term of financial market and have well-established financial market systems and financial instruments with experienced professional services team. Therefore, the China – Asean could leverage these financial market resources to expand businesses. In fact, Hong Kong was second largest IPOs fundraising market and banks financing market centre in year 2004. Both Singapore-Hong Kong Securities Exchange should assist China - Asean businesses to raising capital through IPOs listing and establish Securities Exchange Trading Cooperation Counter similar to the world’s first securities co-trading linkage between Singapore SGX and Australia ASX which formed on 20 Dec 2001 to allows investors in the respective markets to trade selected securities in each other's market directly, through brokers in their own markets.

4. Creating more Interactive Business “conventions”: Since both Singapore-Hong Kong have well-versed experiences in financial market development process and have knowledge of international financial market operations and also understand the professionals of China – Asean, Singapore-Hong Kong should organize more international business conventions and seminars activities to enhance the relationship with China – Asean and develop trust, cooperation and confidence of business relationship with China – Asean to improve the regional business cooperation.

5. Providing Professional “services:” Singapore-Hong Kong are one of the most well-development countries in the region. Their professional services are highly recognized internationally. With strong financial market credibility, China – Asean would benefit from their professional services to work with international market more effectively and efficiently.

Certainly, Singapore-Hong Kong financial cooperation would operate effectively based on the above-mentioned 5 key factors (Bridge; Closest-Relationship; Resources; Conventions; Services) in China-Asean Economic Development.

International Po Fung Finance Holdings Limited is Company to provide all sorts of international trade finance and capital market fundraising services, which including bank loans, IPOs, investment trust fund and business trade finances.

www.gboforum.com

Mr. Willy Tan Hwee
Investment Banker
(Int'l Loan Syndication)

Business Loans

If you are planning to start your own small/big business, you are probably going to need a bank loan to get started.
It is very rare for a business to get going without a loan. Business loans help you to cover your original costs like raw materials, supplies, premises, marketing, etc. A loan will help to fund all your start-up costs in setting up your business.

Generally, you must have a detailed business plan and at least a year's forecast to get your loan. If you are going through a bank, you will need collateral and a good credit record. You will have to provide your Income Tax assessment, credit report for yourself and your partners, if any. Market research or standing orders that will back up your first years profit estimates. Loan requirements vary according to the banks involved. There are various options when it comes to choosing the right business loan for example, cash loans, working capital, microloans, startups and loans without collaterals.

Before you decide on the loans you must consider the type of business you are operating. To start a flower shop you should consider startup capital to order your original supplies and accessories. A home-based business may not need much capital as most of business needs are already in hand. However if you are selling a product, you may need warehouses, office space, advertising and marketing costs as well as shipping and distribution costs. All you need to get the loan is the right approach and all your business and financial documents in hand.

Always be reasonable in your loan application. Don't ask for the moon when you just need a million dollars. Ridiculous proposals are received everyday from entrepreneurs who don't even know what they are asking for. For example, a Malaysian developer requested for 50 billion ringgits (US$13 billion) to develope a township in a northern state when the total domestic investment for last year (2004) was only 15.6 billion ringgits (US$4 billion).

Before you ever consider approaching a bank or any financial institution for a loan, probably you need to ask yourself whether you will lend your hard-earned money to such a borrower. If you are unlikely to risk your money then you should not expect the lender to do so. Your rate of success in getting a loan is higher if the money you borrowed will be returned under the requirements and timeframe set.

Banks are not charitable organisations. They do not give away money freely without expecting any return. To qualify for a loan, there are certain criteria and requirements to be decided by the loan committee:

1. Your personal credit standing (past and present).

2. Financial records/Book-keeping of the business.

3. Strengths and weaknesses of your industry.

4. Security - collaterals and assets.

5. Any guarantees available.

If you are unable to secure a loan from the local financial institutions, there are overseas or offshore funders who may consider extending a loan to particular industries.

Funds are available for worldwide project financing in real estate or energy industries or the IT sectors. There are funds for debt financing/refinancing, construction and infrastructure loans. Terms vary from one year to ten years with interests from 4-1/2 percent per annum to 2% monthly. Principle sum borrowed may be returned at the end of the term under non-amortization loans with interests payable every twelve months only. Minimum loan of US$3 million to US$3 billion are available. Some funders may also allow the interests to be offset from the principle at the commencement of the loan. To qualify for such loans you will need to provide an Executive Summary stating the purpose of the loan for evaluation. Above all, don't give up hope so easily. If there's a will, there's a way.

Good luck!

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Mr. Ernest Chen PBM, BBM
MD of Interconex
Management Pte Ltd

The Business of this Century is Business Brokerage

A Business Broker is a competent and professional intermediary who match-make the buying and selling of business. It is a big business and there are many business owners who want to sell and retire and there are many emerging entrepreneurs who want to start a business. There are also many investors who are always on the look out for good buy.

With WTO and FTA hammering the message of free trade, the world has no way not to follow the path. This is the way to increase trade flow between countries, this is one way to improve productivity and optimize the efficiency of manpower. FTA (Free Trade Agreement) is like a flame that spread fast and wide. The world today is gradually becoming borderless and free flow of trade can ensure success and in turn improve standard of living .The world’s two most populous giants – China and India, they are opening and attracting investment from the developed nations.

There is a great opportunity for business of businesses; this is business brokerage like mergers and acquisitions. The change has brought tremendous impact on the existing business. New players are coming in with fresh capital and new entrepreneurs are looking for business opportunities. These groups of people are hungry for businesses to buy and to invest. Many old and traditional businesses are looking for an exist and this provide an opportunity for buying and selling of businesses.

Business Brokerage is not new in the world of business but the way it has evolved and the way it is done has changed. From the higher end of this business, like the mergers and acquisitions of mega business ( for example, Proctor and Gamble who acquired Gillette for $94 billion in Jan 2005) to the lower end of $50,000 changing owner of a corner bakery shop. There are many business owners looking to exist and many entrepreneurs looking for opportunities. A business broker plays the role of match making.

The talk will focus on the change of business climate and how business broker can play a part and reap the benefit.

www.gboforum.com