AFTER THE CRISIS: FINDING THE SILVER LINING IN THE BUSINESS EVENTS INDUSTRY

1. AFTER THE CRISIS: FINDING THE SILVER LINING IN THE BUSINESS EVENTS INDUSTRY 29 June 2011

2. SUMMARY - KEY INSIGHTS FROM AIPC SURVEY BUSINESSSTRATEGY CENTRE PERFORMANCE ECONOMIC RECOVERY • Business partnerships and networks to grow revenue • Incentives to attract clients looking for value added services • Important to engage in local non-economic development efforts (CSR) • Rise in gross revenue for Asia’s centres • Rise in ancillary services revenue • Event clients seeking one-stop shop solutions CENTRE INVESTMENTS TRENDS & CHALLENGES • Growing number of multi-format events • Shorter booking windows; Increased negotiation; Higher quality F&B required • Greatest challenges lie in competition and travel costs • Centres are planning for expansion and renovation • More clients incorporating virtual meetings into physical events • Important to make product relevant to market needs • Stronger recovery in Asia • IMF and S&P Asia Pacific GDP Projections • Rising business costs and competition

3. UPGRADING PLANS & DEVELOPMENTS IN ASIA Thailand China Malaysia & Singapore IMPACT Muang Thong Thani 160,200 sqm (MICE 71,500 sqm) Subterranean Penang Int’l Convention & Exhibition Centre (To be completed by mid 2014) 70,000 sqm (MICE : 70,000 sqm) Meijiang Convention & Exhibition Centre (opened in 2010) 100,000 sqm (MICE 89,000 sqm) Chongqing International Expo Centre (To be completed in 2012) 602,000 sqm (MICE 381,680 sqm) Bangkok International Trade & Exhibition Centre (BITEC) 56,000 sqm (MICE 50,400 sqm) Max Atria at Singapore Expo (To be completed By March 2012) 8,000 sqm 2008 2014 Hong Kong & Macau South Korea India The 2nd KINTEX in Korea (To be completed in Sep 2011) 54,624 sqm (MICE : 54,624 sqm) Hong Kong Convention & Exhibition Centre Phase III Extension 91,00 sqm (MICE 91,000 sqm) Kolkata Intl Convention Centre 607.000 sqm (MICE 607,000 sqm) SongdoConvensia Korea 572,511 sqm (MICE 140,000 sqm) Las Vegas Sands (LVS) Cotai Strip Expansion 600,000 sqm (MICE 230,000 sqm) New Delhi India Expo Centre XXI 26,000 sqm (MICE 26,000 sqm)

4. EMERGING CENTRES OF GROWTH EMERGING CENTERS OF GROWTH GREATER CHINA China, Hong Kong, Taiwan • Population size of 1.6 billion people • Outbound travel has grown to about 95 million people a year • Asia Pacific region continues to be the most popular destination for Greater China travelers SOUTHEAST ASIA Singapore, Malaysia, Thailand, Vietnam, Indonesia • Population size of 600 million people • Outbound travel has grown to about 78 million people a year • Australasia remains as one of the top regional destination SOUTH ASIA India, Pakistan, Sri Lanka • Population size of 1.2 billion people • Outbound travel has grown to about 60 million people a year • Asia is most popular area for South Asia travelers Asia currently makes up 60% of the world’s population (i.e. 6.5 billion people), and is a strong growing force fueling the world’s economy.

5. KEY INDUSTRY DRIVERS OF GROWTH • Leading industries makes Asia an excellent ground for trading centers & investment opportunities • A third of foreign direct investments are attracted to these key sectors • Key sectors supported by educated, industrious populations FOOD PRODUCTION & PROCESSING ENERGY HEALTH & MEDICAL CARE BANKING & FINANCE ELECTRONICS TRANSPORT & LOGISTICS TEXTILE & GARMENT INFO COMM TECHNOLOGY

6. RISING AFFLUENCE IN ASIA RISING AFFLUENCE GDP Per Capita at current prices (US$) Source: World Bank, World Development Indicators 1960 1970 1980 1990 2000 2010 • Asia’s rising young & educated working population is the biggest positive factor (India’s mean age: 27 ; China’s mean age: 38; South-East Asia’s mean age: 28) • Strong GDP per capita growth signals increasing disposable incomes; and influences savings and investment behavior • Large interested buyer base

7. GROWING TRADE & MARKET ACCESS FREE TRADE AGREEMENTS • 18 Regional and Bilateral FTAs • Great market connectivity through reduction of tariff and non-tariff barriers • Preferential access to service sectors • Stronger IP regulations • Protect Organisers’ ideas and investments against non-commercial risks KOREA EUROPE USA CHINA JAPAN INDIA ASEAN PANAMA AUSTRALIA Other Key Free Trade Agreements (On Regional Basis) ASEAN-China (ACFTA) ASEAN-India (AIFTA) ASEAN-Australia-New Zealand FTA Australia (SAFTA) Trans-Pacific (TPFTA) NEW ZEALAND

8. THE “NEW NORMAL” - SHOCKS TO SYSTEM ASIA PACIFIC (2010-11) Socio-political • Social Unrest (Thailand) • Rural-Urban Income Disparity (China) Economic • Tainted Food Supply/Security • Pollution, Rising Prices • Over-heating & Urban Density Pressures Nature/Climate Change • Tsunami, Nuclear Meltdown (Japan) • Earthquake (Christchurch, China, Indonesia) • Flood & Drought (Australia, China) REST OF THE WORLD (2010-11) Socio-political • Middle-east Instability • Terrorist Attacks (US, Europe, India) Economic • Financial Markets Uncertainty (US, EU) • Rising Oil Prices • Cyber-attacks Nature/Climate Change • Earthquakes, Volcanic Eruptions (Haiti, Chile, Iceland) • Heat Wave (Russia)

9. CRISIS IMPACT ON COUNTRY’S ECOSYSTEM CITY STATE CITY CITY BUSINESS BUSINESS BUSINESS LIFE COMMUNITY COMMUNITY In Equilibrium Distortion exists AFTER CRISIS BEFORE CRISIS

10. IMPACT ON CITY, BUSINESS AND COMMUNITY • Loss of Infrastructure and Production Assets • Drop in GDP Growth • Loss in Investors’ Confidence • Inflation • Rising Commodities Prices CITY BUSINESS • Supply Chain in Disorder • Disruption to Business Operations and Processes • Loss of Investor Confidence • Loss in Revenue and International Market Share • Environmental Pollution • Disruption to Lifestyle, Families and Living • Negative Impact on Daily Supplies (Food, Water, etc) • Psychological Trauma COMMUNITY

11. OPPORTUNITY WITHIN A CRISIS CRISIS “Wei” “Ji” DANGER OPPORTUNITY In every crisis lies the seed of opportunity

12. INDUSTRY – ADEPT AT RIDING THE “SHOCKWAVES” THREE CALLS OF ACTION for greater resilience and faster recovery CONFIDENCE RESTORATION City State To reduce fears & uncertainties Business CONNECTIVITY ESTABLISHMENT To communicate quickly and effectively with various stakeholders Living COMMUNITY ENGAGEMENT To play a part in environmental & social sustainability

13. CLIENT S - SEEKING NEW ARRANGEMENTS In the “New Normal”… • More rigorous in crisis management / business continuity planning • Shortened booking lead times for events • Preference for flexible payment terms • Search for greater value in products and services • Tougher price negotiations • Increased emphasis on ROI of events • More events moving towards environmentally conscious • Seek sustainability within event budget • Desire positive social impact on economy, communities, and environment SUSTAIN- ABILITY FOCUS RISK AVERSION FINANCIAL PRUDENCE

14. CENTRES – OPPORTUNITIES TO BECOME FUTURE-READY • Standards & Partnerships for Operational &Service Excellence 2) Business Continuity Management (BCM) • Singapore Standard for building resilience and capability for an effective response to disruptions • Quality Management System • Safety & Operational Management for Indoor Operations • Industry Partnerships to Deliver Total Solutions • British Standard for building a business management system to minimize risk of disruptions 3) Virtual Platforms & IT Enablers 4) Community Engagement Platforms • Incorporating CSR efforts into business events & centres • Create a positive social impact on environment • Wifi-enabled solutions • Online virtual meetings and conferences • Harnessing New/Social Media

15. ILLUSTRATION : SINGAPORE EXPO CONVENTION & EXHIBITION CENTRE

16. SINGEX : CRITICAL INVESTMENTS Service Excellence Value Chain Operational Excellence Framework Our Value Chain • Global Standards Achievements Internal External Touch Points Partners Organizers • Concierge • Media • Security • Phone Enquiries Staff Visitors • Technology Supporting Clients’ Needs & Making Centres Productive • Thank You Note • F&B • Facilities • Toilets • Business Centre • Car Parking iPad • Signage • Cost Effectiveness • Energy & Water Saving Initiatives • Waste Recycling and Reduction Outcomes… • Delighted clients and visitors • Empowered staff • Effective service delivery and management

17. SINGEX : ANCILLARY SERVICES PARTNERSHIPS Offering one-stop suite of solutions through partnerships… DESTINATION MANAGEMENT COMPANIES ATTRACTIONS HOTELS • Alternative Venue Packages which includes • Venue Rental • F&B • Entertainment • Performances • Preferential Accommodation Rates • Airport / Shuttle Transfer • Other Fill Benefits • Housing Bureau Management Services • Conference & Meeting Management Services • Destination Management Services

18. Thank You The author has made his best effort to prepare this document. The content is based upon latest information whenever possible. The author makes no representation or warranties of any kind with regard to the completeness or accuracy of the contents herein and accept no liability of any kind including but not limited to performance, merchantability, fitness for any particular purpose, or any losses or damages of any kind caused or alleged to be caused directly or indirectly from this document.

19. LATEST IMF AND S&P GDP GROWTH FORECAST (Standard & Poor’s)