January 2004 - Association of Dutch Businessmen
January 2004 - Association of Dutch Businessmen
January 2004 - Association of Dutch Businessmen
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>January</strong> <strong>2004</strong><br />
MITA 373/03/2001<br />
COMPANY PROFILE:<br />
JTC Corporation<br />
Happy New Year to all<br />
ADB members!
PROLOGUE<br />
First and foremost let me wish you and your family a prosperous <strong>2004</strong><br />
in good health.<br />
Secondly I would like to share with you our Best Wishes for Prince Willem-Alexander and<br />
Princess Maxima with their newborn Princess Catharina-Amalia. On behalf <strong>of</strong> the ADB<br />
I have added our congratulations onto the website <strong>of</strong> the Royal Family.<br />
Tom de Jong<br />
After an exciting year with major events like the Iraq war and , closer to home, the SARS<br />
outbreak, <strong>2004</strong> will hopefully be a year <strong>of</strong> more stability and sustained economic growth,<br />
although Shell’s scenario type thinking has learned us that straight line thinking is not<br />
always appropriate.<br />
The last event in 2003 was a visit to the VOPAK installations on Jurong and Sebarok together<br />
with an overview <strong>of</strong> the regional activities by John Paul Broeders, the reginal Director.<br />
It was particularly good to see that a <strong>Dutch</strong> company in Bulk Storage and Logistic Services<br />
has manged to secure top spot in the world in this field.<br />
During the following dinner I mentioned that two boardmembers, Lieke Rijken and Rob Nijst,<br />
will be leaving us and return to Holland for new assignments with their respective companies.<br />
I would like to thank both <strong>of</strong> them for their long standing contributions to the ADB board.<br />
They made significant contributions over a long period <strong>of</strong> time as Secretary and Financial<br />
controller to the board <strong>of</strong> the ADB. I wish them succes in their new jobs in the Netherlands.<br />
At the same time I would like to welcome Wim Samlal from VOPAK as the new controller to<br />
the board. To fill a vacancy as well as replacing Lieke we have found Charlotte Ruegg and<br />
Frans van de Bospoort willing to take a role in the board. Charlotte works at the National<br />
University Hospital and Frans represents NIB Capital Bank in Singapore.<br />
It is good to note that in such an agile environment like Singapore we have again been able<br />
to find people willing to take on additional roles on top <strong>of</strong> their <strong>of</strong>ten busy work commitments.<br />
ADB remains committed to provide an intersting programme <strong>of</strong> activities , which give our<br />
member an opportunity to network outside their normal work environment.<br />
Hope to see many <strong>of</strong> you at the forthcoming ADB events, starting with the new year’s<br />
borrel on <strong>January</strong> 5th, <strong>2004</strong>.<br />
Tom de Jong<br />
President<br />
Jeroen Keunen Lieke Rijken Rob Nijst Nick van Holstein Ruud Lantinga<br />
1<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
A monthly publication <strong>of</strong> the<br />
<strong>Association</strong> <strong>of</strong> <strong>Dutch</strong> <strong>Businessmen</strong><br />
ADB BOARD<br />
Tom de Jong<br />
President<br />
Nick van Holstein Vice-President<br />
Charlotte Ruegg Honorary Secretary<br />
Wim Samlal<br />
Honorary Treasurer<br />
Jeroen Keunen<br />
Member<br />
Ruud Lantinga<br />
Member<br />
Frans van de Bospoort<br />
Member<br />
EDITORIAL COMMITTEE<br />
Sascha Roosen<br />
Olaf Botermans<br />
Dorien Knaap<br />
Francine Smissaert<br />
Carolien Timmermans<br />
Michael van Ommeren<br />
Walter Moone<br />
Mark Tilstra<br />
SECRETARIAT<br />
Carolien Timmermans<br />
Mailing Address:<br />
22 Camden Park, Singapore 299814<br />
Telephone: 9030 9145 Fax: 6738 9962<br />
email: adb@pacific.net.sg<br />
Website : www.adb.org.sg<br />
Email : webmaster@adb.org.sg<br />
Editorial contributions for the next issue<br />
may be sent or handed over to the ADB<br />
Secretariat, before or on the day <strong>of</strong> the<br />
monthly ADB meeting. The contents <strong>of</strong><br />
this newsbrief are partly based on information<br />
received from third parties. The<br />
Committee does not take responsibility<br />
for the correctness <strong>of</strong> the articles.<br />
Subscription/member fee: 100 S$ yearly.<br />
Registration at the ADB Secretariat.<br />
ADVERTISING RATES<br />
1 issue 6 issues 12 issues<br />
Colour page n.a. S$3,300 S$6,250<br />
B/W full page S$550 S$1,500 S$2,800<br />
B/W 1/2 page S$300 S$ 800 S$1,450<br />
For more information on sponsoring or<br />
advertising, please contact the ADB<br />
Secretariat.<br />
Produced by MCN Creative Associates Pte Ltd<br />
Printed by Khoo Sun Printing Pte Ltd<br />
MITA 373/03/2001<br />
Contents<br />
PROLOGUE 1<br />
REVIEW<br />
‘The linking pin for the petrochemical industry’ 3<br />
COMPANY PROFILE<br />
JTC Corporation – 35 years <strong>of</strong> creating and<br />
shaping 5<br />
DOING BUSINESS IN…<br />
How personal perseverance and humble<br />
beginnings can lead to big business 10<br />
10 QUESTIONS TO...<br />
2 x 5 = 10 questions to…Rob Nijst and<br />
Lieke Rijken 12<br />
HEIR, THRONE & KINGDOM<br />
Princess Amalia has arrived 14<br />
COMPANY NEWS 15<br />
KNOW YOUR TAX<br />
Bosal case 16<br />
FINANCIAL INSIGHT<br />
China: Threat or engine <strong>of</strong> growth? 18<br />
DUTCH DESK 21<br />
WHEELS<br />
Love and Carriage 22<br />
EMBASSY INFO 24<br />
ASSOCIATION INFO 24<br />
2<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
REVIEW<br />
‘The linking pin for the<br />
petrochemical industry’<br />
A visit to Vopak Terminals Singapore By Walter Moone<br />
▲ Vopak Company Visit<br />
Crossing Singapore<br />
‘Is Jurong Island in<br />
Malaysia?’ one <strong>of</strong> the<br />
attendants <strong>of</strong> this month’s<br />
excursion to Vopak Terminals<br />
Singapore laughs when he is<br />
asked to leave the bus and<br />
proceed to the security<br />
checkpoint. It is not a strange<br />
thought as the S$ 30 million checkpoint at the<br />
entrance <strong>of</strong> Jurong Island looks like a border<br />
crossing, with heavily armed security guards, metal<br />
detectors and all visitors required to carry their<br />
passports. Vopak, which operates its Sakra tank<br />
terminal on Jurong Island, gave the ADB members<br />
a unique opportunity to visit this normally difficult<br />
accessible industrial island. Next to a tour on<br />
Jurong Island the excursion visited Vopak’s<br />
industrial terminal on Sakra and the oil distribution<br />
terminal on Sebarok.<br />
Chemical hub on Jurong Island<br />
As the ADB delegation entered the causeway to<br />
Jurong Island Robert Dompeling, general manager<br />
<strong>of</strong> Vopak Terminals Singapore, highlighted the<br />
history and set up <strong>of</strong> this highly successful<br />
industrial concept. Jurong Island originally<br />
consisted <strong>of</strong> a flurry <strong>of</strong> tiny islands. The industrial<br />
development started in the early 70’s when the<br />
Vopak Terminal Sakra, the Industrial<br />
Terminal on Jurong Island<br />
three pioneers <strong>of</strong> the Singapore petroleum<br />
industry opened their facilities on three <strong>of</strong> these<br />
islands; Esso in Pulau Ayer Chawan, Singapore<br />
Refinery Company in Pulau Merlimau and Mobil<br />
Oil in Pulau Pesek. With these refineries the<br />
fundament was created for the development <strong>of</strong><br />
related downstream industries that further<br />
process the materials produced by these refineries<br />
and crackers. In the 1990’s Jurong Island<br />
Corporation reclaimed more land and provided the<br />
required infrastructure to further develop the<br />
chemical hub, including a causeway to the<br />
mainland. Today, Jurong Island is home to leading<br />
petrochemical companies, like ExxonMobil,<br />
Celanese, Dupont, Mitsui Chemicals,<br />
Chevron Oronite, Shell and<br />
Sumitomo Chemical, their<br />
total investment exceeding<br />
S$ 21 billion.<br />
Vopak as linking pin<br />
on Sakra<br />
Most <strong>of</strong> the companies on<br />
Sakra deliver feedstock and<br />
final products to each other.<br />
In the middle <strong>of</strong> this chemical<br />
cluster the Vopak terminal in<br />
Sakra acts as the spider in the web delivering<br />
feedstock to plants and receiving their end-products,<br />
which in turn are delivered to other chemical<br />
producers or are exported to their end users.<br />
At the Sakra terminal the ADB delegation visited<br />
the central control room and the jetty, where at<br />
the time <strong>of</strong> the visit a large chemical ship <strong>of</strong> 45,000<br />
deadweight ton - the maximum the Vopak terminal<br />
in Sakra can handle – started discharging Methanol<br />
to the feedstock shore tanks <strong>of</strong> one <strong>of</strong> the<br />
customers. Terminal manager Teo Seow Ling and<br />
operations manager Ku Chong Chang highlighted<br />
the characteristics <strong>of</strong> an industrial terminal.<br />
All infrastructure on the terminal – e.g. tanks,<br />
pipelines, pumps, etc - is dedicated to the<br />
customers. As Vopak is feeding the raw material,<br />
usually hazardous chemicals, directly in the<br />
customers’ production process tight control <strong>of</strong><br />
the process and stock and enhanced awareness<br />
<strong>of</strong> safety issues is key.<br />
3<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
REVIEW<br />
The<br />
competitive<br />
advantage<br />
Vopak seeks is<br />
in providing<br />
high quality<br />
services, while<br />
maintaining<br />
equally high<br />
safety<br />
standards that<br />
local players<br />
cannot <strong>of</strong>fer on<br />
several<br />
locations.<br />
Facilitating the Oil Trade on Sebarok<br />
After the Sakra visit the ADB members boarded<br />
the ferry that was kindly provided by Shell to travel<br />
to the Sebarok terminal. Sebarok is a small island<br />
located behind Sentosa. The main inhabitant <strong>of</strong><br />
Sebarok is Vopak with over a million cubic meter<br />
<strong>of</strong> storage capacity for petroleum products. The<br />
Sebarok terminal was Vopak’s first terminal in Asia<br />
and was established in 1983. Terminal manager<br />
Randy Cheong demonstrated during a tour <strong>of</strong> the<br />
island that an oil terminal is completely different<br />
from a chemical terminal like Sakra. Tanks are<br />
substantially bigger and the jetties can handle ships<br />
up to 210,000 ton deadweight and a draft <strong>of</strong> 16<br />
meter. Traders in gasoline, fuel oil and jet fuel<br />
occupy the tanks.<br />
Regional network<br />
After the merger <strong>of</strong> Van Ommeren and Pakhoed in<br />
1999 Vopak became the biggest independent tank<br />
storage provider in the world, operating<br />
20 million cubic meter <strong>of</strong> storage<br />
capacity in 71 countries. Thirty<br />
percent <strong>of</strong> the worldwide sales<br />
is created in Asia. On the<br />
Sebarok island John Paul<br />
Broeders, president <strong>of</strong><br />
Vopak Asia, presented<br />
Vopak’s strategy for its 15<br />
terminals in 8 countries in<br />
the region. Main components<br />
<strong>of</strong> the strategy comprise<br />
creating a regional network,<br />
targeting the same key<br />
customers, aiming one common<br />
brand image with standardized quality <strong>of</strong><br />
services and developing long-term relationships<br />
with customers. Vopak Asia puts this strategy<br />
into operation by <strong>of</strong>fering regional account<br />
management, implementing common standards<br />
on safety, health, environment and quality and<br />
Leaving Honorary Secretary Lieke Rijken<br />
and Tom de Jong<br />
Leaving Honorary Treasurer<br />
Rob Nijst receives his farewell gift<br />
from President Tom de Jong<br />
<strong>of</strong>fering tailored supply chain solutions, using<br />
partnerships for land based logistics (trucks,<br />
drumming, etc).<br />
One <strong>of</strong> the attendants raised the question why<br />
not more people embark on the tank terminal<br />
business, as the concept looks very pr<strong>of</strong>itable and<br />
is simple at the same time. John Paul Broeders<br />
acknowledged that indeed Vopak has to compete<br />
with local players in every port they operate.<br />
However, the competitive advantage Vopak seeks is<br />
in providing high quality services, while maintaining<br />
equally high safety standards that local players<br />
cannot <strong>of</strong>fer on several locations.’ Hence the reason<br />
Vopak targets mainly the multi-national companies<br />
that require a high quality service level. At the same<br />
time this poses a challenge in the Asian region as<br />
Vopak primarily operates in joint ventures. ‘The<br />
advantage <strong>of</strong> having a joint venture with local<br />
partners is that we have easy access to government<br />
and port authorities if it concerns licenses and<br />
regulation’, explained Broeders, ‘The<br />
downside is that it takes a lot <strong>of</strong><br />
effort to convince these local<br />
partners <strong>of</strong> the importance <strong>of</strong><br />
operating as a regional<br />
network and to invest in the<br />
quality and safety that<br />
comes with this’. Another<br />
question from the audience<br />
was if Vopak also invested<br />
in ERP s<strong>of</strong>tware to help<br />
accomplish a standard service<br />
level across the various operating<br />
companies. Broeders explained<br />
that a corporate ERP system was<br />
now in operation in the major hub locations <strong>of</strong><br />
Vopak in Houston, Rotterdam and Singapore. In the<br />
Asian region rollouts are in progress or scheduled<br />
in Malaysia, Thailand and Caojing. The ERP system<br />
has to serve as a basis to establish tighter<br />
relationships with customers through web- and<br />
ERP-to-ERP applications.<br />
The Shell ferry brought the attendants back<br />
to the mainland where the successful excursions<br />
was concluded with a drink and buffet at Villa<br />
Frangipani. It was in these lush Balinese<br />
surroundings that ADB president Tom de Jong took<br />
the opportunity to thank Robert Dompeling and<br />
John Paul Broeders for organising and hosting the<br />
excursion. Tom de Jong also bid farewell to two<br />
long sitting board members who will continue their<br />
careers outside Singapore, Lieke Rijken and Rob<br />
Nijst. The president thanked both for their<br />
outstanding contribution to the ADB and wished<br />
them all the best in the new challenges ahead <strong>of</strong><br />
them. As a last note <strong>of</strong> the evening Tom de Jong<br />
introduced Wim Samlal, director finance <strong>of</strong> Vopak<br />
Asia, as the new treasurer in the ADB board.<br />
4<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
COMPANY PROFILE<br />
JTC Corporation –<br />
35 years <strong>of</strong> creating and shaping<br />
Singapore’s industrial landscape<br />
Standard low rise factory<br />
Introduction<br />
JTC Corporation is Singapore’s leading planner,<br />
promoter and developer <strong>of</strong> high quality industrial<br />
facilities and business parks. Since 1968, it has been<br />
a key architect in shaping Singapore’s industrial<br />
landscape and in supporting the growth <strong>of</strong><br />
industries and manufacturing in Singapore. It has<br />
a track record <strong>of</strong> developing close to 7,000 hectares<br />
<strong>of</strong> industrial land and over 4.5 million square<br />
metres <strong>of</strong> ready built space.<br />
Wide Array <strong>of</strong> Industrial and<br />
Business Facilities<br />
JTC <strong>of</strong>fers a wide range <strong>of</strong> facilities for all types<br />
<strong>of</strong> industries and activities. From<br />
small <strong>of</strong>fice spaces for startup<br />
companies to large land plots for<br />
heavy manufacturing, companies<br />
can invest with confidence in a JTC<br />
facility. Currently, JTC manages 38<br />
industrial and specialised parks,<br />
including three wafer fab parks, a<br />
chemicals hub at Jurong Island,<br />
a biomedical manufacturing hub,<br />
a biomedical research and<br />
development facility (Biopolis),<br />
two business parks as well as start up facilities.<br />
Together, they house some 7,000 local and foreign<br />
companies. JTC is also the master developer for<br />
one-north at Buona Vista– a 200-hectare new<br />
economy hub incorporating research laboratories,<br />
<strong>of</strong>fices, homes, parks and educational institutions<br />
for entrepreneurs, scientists and researchers.<br />
Indeed, JTC has played a pivotal role in<br />
accelerating Singapore’s industrialisation drive<br />
and is poised to take on new challenges even as it<br />
celebrates its 35th anniversary in 2003. The future<br />
looks to become even more exciting as JTC gears<br />
up to transform the industrial landscape <strong>of</strong><br />
Singapore into a hip and happening place to worklive-play<br />
and learn. Older industrial estates in<br />
Singapore which were built up in the early years<br />
will be rejuvenated, taking on the vibrancy and<br />
dynamism that characterises new economy hubs.<br />
JTC will also continue to focus strongly on its<br />
customers, develop pro-business policies, create<br />
innovative products and provide best in class<br />
customer service to help companies doing<br />
businesses in Singapore become more competitive<br />
Adopting a customer-focused mindset has<br />
always been part <strong>of</strong> JTC’s winning formula. Living<br />
by this creed, development <strong>of</strong> its industrial parks<br />
revolve around the concept <strong>of</strong> creating synergy for<br />
customers. Clustering <strong>of</strong> companies that are similar<br />
in nature or complementary to one another has<br />
resulted in substantial savings for JTC customers.<br />
Jurong Island is a shining example to showcase the<br />
success <strong>of</strong> the cluster concept. Typically, output<br />
from one plant becomes feedstock for another,<br />
allowing them to feed <strong>of</strong>f each other symbiotically.<br />
One organisation who has recognised the<br />
benefits <strong>of</strong> clustering on Jurong Island is Vopak<br />
Terminals Singapore Pte Ltd, owned by Royal Vopak.<br />
This <strong>Dutch</strong> company plays an integral role in Jurong<br />
Island’s chemical value chain, providing essential<br />
chemical logistics services to companies through<br />
its Industrial Terminal. This allows companies to<br />
better focus on their core business operations,<br />
while reducing capital outlay in jetty and tankage<br />
construction.<br />
5<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
COMPANY PROFILE<br />
operate in a pro-business environment to retain the<br />
competitive edge against other global players. Cutting<br />
out red tape is an essential part <strong>of</strong> the process to<br />
create a pro-business environment. JTC had kickstarted<br />
the process early last year through a rule<br />
buster exercise to review and remove archaic rules<br />
that are redundant and impede business operations.<br />
Moving on, we will continue to regulate with a lighter<br />
touch and revise our policies so that customers have<br />
even more latitude in their business dealings.”<br />
▲ High rise factory<br />
This strategy is similarly being replicated in<br />
JTC’s Tuas Biomedical Park and Airport Logistics<br />
Park (ALPS), where pharmaceutical and third party<br />
logistic companies enjoy cost savings from the<br />
use <strong>of</strong> shared facilities such as utilities and waste<br />
treatment plants.<br />
While firm foundations have already been laid<br />
by JTC for its hard infrastructure and facilities, it<br />
is also building up its “s<strong>of</strong>tware” and looking into<br />
ways and means to work in even closer partnership<br />
with its customers.<br />
Pro Business Policies in a Changing<br />
Environment<br />
Mr Chong Lit Cheong, Chief Executive Officer <strong>of</strong> JTC<br />
elaborates, “The industrialists <strong>of</strong> today need to<br />
Exceeding Customer Expectations<br />
While creating a pro-business environment is<br />
important, customer service is also taken very<br />
seriously at JTC. It is evident that the Corporation<br />
is keeping its ears close to the ground, through its<br />
formation <strong>of</strong> a Customer Panel last year. Out <strong>of</strong><br />
the 55 recommendations, submitted by its<br />
Customer Panel, JTC has shown its firm<br />
commitment to its customers’ needs by accepting<br />
41 <strong>of</strong> them. In addition, it is also e-enabling its<br />
services and strengthening its IT infrastructure to<br />
help customers save time and costs. Process time<br />
for some <strong>of</strong> the e-services found on its customer<br />
portal Krypton have been slashed from the previous<br />
five days to five minutes, bringing greater<br />
convenience to its customers.<br />
Future Plans<br />
Changes in the new economy have also propelled<br />
the Corporation to look beyond its traditional roles<br />
<strong>of</strong> a landlord to embrace new roles and functions<br />
aimed at creating a pro-business environment for<br />
industrialists.<br />
A tale <strong>of</strong> courage and determination – The Jurong Island Story<br />
Situated <strong>of</strong>f the western coast <strong>of</strong> Singapore is Jurong Island, home to some <strong>of</strong> the world’s<br />
leading petrochemical companies like BASF, ExxonMobil and DuPont. With 72 lessees on the<br />
island, it is one <strong>of</strong> the largest ethylene production centre and third largest oil refinery centre in<br />
the world. The 72 companies have invested close to $22 billion in Jurong Island.<br />
Jurong Island had its humble beginnings in the 1960s, when chemical companies such as<br />
Esso Singapore, Singapore Refining Company and Mobil Oil Singapore began their operations<br />
in some <strong>of</strong> the small and scarcely populated islands located just south <strong>of</strong> Singapore.<br />
In the 1980s, the chemicals industry was identified as one <strong>of</strong> the pillars, which had<br />
potential to contribute significantly to economic growth in Singapore. This gave rise to the<br />
idea <strong>of</strong> amalgamating the seven southern <strong>of</strong>fshore islands to form one colossal island through<br />
reclamation. The process <strong>of</strong> joining seven separate islands into a site for a world-class<br />
chemicals hub began in 1991. When fully completed in 2005, Jurong Island will span a total<br />
<strong>of</strong> 3,200 hectares.<br />
6<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
COMPANY PROFILE<br />
Work communities <strong>of</strong> the<br />
future @ one-north<br />
one-north is Singapore’s icon <strong>of</strong> the knowledge<br />
economy that would provide an intellectually<br />
stimulating and creative physical environment<br />
for entrepreneurs, scientists and researchers<br />
to congregate, interact and exchange ideas.<br />
With a focus on knowledge-intensive activities<br />
in critical growth sectors – biomedical,<br />
infocomms and media industries – it is slated<br />
to be a vibrant hotspot for innovation and test<br />
bedding.<br />
Covering almost 200 hectares, it will be<br />
developed in three phases over the next 15 –<br />
20 years and will integrate residential units,<br />
commercial hubs, tertiary and research<br />
institutes, sports facilities as well as green<br />
lungs. It is strategically located in the Buona<br />
Vista area (southern part <strong>of</strong> Singapore) near<br />
the National University <strong>of</strong> Singapore and<br />
Singapore Science Park and aims to be a focal<br />
point for research and development and<br />
technopreneurial activities.<br />
The name, one-north, capitalises on<br />
Singapore’s unique geographical location – one<br />
degree north <strong>of</strong> the equator, in the globe and<br />
its aspirations to be connected to the region,<br />
the world, and be innovative. one-north has<br />
very positive associations – new, first, winning<br />
and leading. The Chinese name “Wei Yi” is a<br />
direct and expressive interpretation <strong>of</strong> the<br />
English name one-north. Its meaning may<br />
also be translated as “the only one”.<br />
“In the early years, our pioneers had taken<br />
bold strides in developing the Jurong Industrial<br />
Estate. Following in their footsteps to challenge<br />
norms and traditional conventions, JTC continues<br />
to think out-<strong>of</strong>-the-box in coming up with<br />
revolutionary ways to benefit industrialists. To<br />
ensure that JTC continues to support Singapore’s<br />
growth for the next 35 years and beyond, we have<br />
drawn up an industrial blueprint for the future,”<br />
says Mr Chong.<br />
One <strong>of</strong> the highlights in JTC’s industrial<br />
blueprint for the future is a more vibrant industrial<br />
property market. To achieve this, JTC is adopting<br />
a ‘private sector first’ approach to encourage<br />
greater private sector participation. Signs <strong>of</strong> this<br />
new approach have already surfaced through its<br />
latest development projects such as one-north,<br />
where up to 80% <strong>of</strong> the project will be developed<br />
by private sector developers over the next 15-20<br />
years.<br />
JTC’s continual advancement has mirrored<br />
Singapore’s own rapid economic development. As<br />
Singapore steps forward into the future, JTC’s<br />
journey ahead will surely be as exciting as her<br />
past.<br />
JTC’s<br />
continual<br />
advancement<br />
has mirrored<br />
Singapore’s own<br />
rapid economic<br />
development. As<br />
Singapore steps<br />
forward into the<br />
future, JTC’s<br />
journey ahead will<br />
surely be as<br />
exciting as her<br />
past.<br />
Stack-Up factory — Woodlands Spectrum<br />
9<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
DOING BUSINESS IN…<br />
Aeilco Janz. Zijlker<br />
In the 1860s, a young man left the Netherlands,<br />
disappointed in love. His destination was<br />
Batavia, at that time capital <strong>of</strong> the <strong>Dutch</strong> East<br />
Indies, to start a new life. His name was Aeilco<br />
Janz. Zijlker, descendant <strong>of</strong> a distinguished farmers<br />
family from Nieuw Beerta, in the province<br />
<strong>of</strong> Groningen. Through the years, Zijlker<br />
worked his way up to be manager <strong>of</strong> the<br />
East Sumatra Tobacco Company. In 1880,<br />
when he was working on a plantation in<br />
the north <strong>of</strong> the island <strong>of</strong> Sumatra, he<br />
was overtaken by a by a tropical storm.<br />
Sheltering in a tobacco shed, he witnessed<br />
a watchman light a bamboo torch from wet,<br />
sticky twigs. At first he thought the torch<br />
was made <strong>of</strong> a wood containing resin. He<br />
asked the watchman about the substance<br />
and the next day he was shown a big pool<br />
with black liquid. He recognised the smell<br />
<strong>of</strong> lamp oil, which was at that time,<br />
imported to the Indies. The watchman told him<br />
the liquid had been around for centuries and was<br />
used for all kinds <strong>of</strong> purposes by the locals. Zijlker<br />
took some samples <strong>of</strong> the liquid and send it to<br />
But Aeilco Zijlker was determined to make<br />
his venture a success. He first tried to secure the<br />
spot where he had found the petroleum. He visited<br />
the landowner, the emir <strong>of</strong> Langkat, to ask for a<br />
concession. This would be granted, if Zijlker would<br />
be able to raise enough money for exploration.<br />
After that, Zijlker needed <strong>of</strong>ficial permission from<br />
the <strong>Dutch</strong> government to explore. This was not<br />
easy, but Zijlker managed to raise money through<br />
a consortium <strong>of</strong> banker’s and trading houses in<br />
Batavia, to finance his prospect for the petroleum<br />
in his concession area. In 1883 he travelled to the<br />
Netherlands. Through his brother, Derk Zijlker, at<br />
that time a Member <strong>of</strong> Parliament, he met the<br />
Minister <strong>of</strong> Colonies, who gave him a recommendation<br />
for the governor-general in Batavia. This helped<br />
him to receive the permission <strong>of</strong> the <strong>Dutch</strong>-Indies<br />
government. Zijlker returned to Sumatra to secure<br />
the concession from the emir <strong>of</strong> Lankat. The<br />
concession was granted to Zijlker, but only after<br />
paying a large amount <strong>of</strong> money for royalties.<br />
The consortium in Batavia was turned into a<br />
company, the Provisional Sumatra Petroleum<br />
Company. The consortium raised 25.000 guilders<br />
How personal perseverance and humble<br />
Batavia to have it examined. After a while he<br />
received the information that the liquid was<br />
petroleum and was very usable as lamp oil.<br />
Zijlker realised he had a big opportunity at his<br />
hands. But Zijlker would not be the first <strong>Dutch</strong>man<br />
to find petroleum in the <strong>Dutch</strong>-Indies. Already in<br />
1596, Jan Huygen van Linschoten had discovered<br />
‘fountain <strong>of</strong> flowing balm’ in Sumatra. Later the<br />
VOC would trade the balm as a medication for stiff<br />
legs. Large exploitation <strong>of</strong> petroleum had only<br />
become interesting after chemists discovered how<br />
to distil kerosene, paraffin and naphtha from the<br />
oil. The first petroleum well was exploited in<br />
Pennsylvania in the US in 1859. This was the start<br />
<strong>of</strong> what would become one <strong>of</strong> largest and successful<br />
industries <strong>of</strong> that country. In the <strong>Dutch</strong> Indies, the<br />
government legalised the exploration <strong>of</strong> oil wells<br />
by a special decree, in 1866. This meant that a<br />
well could only be exploited if there was pro<strong>of</strong><br />
that it would be pr<strong>of</strong>itable. After the issue <strong>of</strong> the<br />
decree, several individuals and companies had<br />
started exploration all over the <strong>Dutch</strong>-Indies, but<br />
without much success. The government was very<br />
strict and it turned out to be very hard to raise<br />
capital for undertakings like this.<br />
to start the exploration. Zijlker himself tipped in<br />
another 50.000 guilders. The drilling had to be<br />
tendered to miners <strong>of</strong> the government. In 1884,<br />
drilling started at Telaga Tiga. After a month they<br />
had reached a depth <strong>of</strong> 51 metres. Weeks later, at<br />
a depth <strong>of</strong> 96 metres petroleum was found. For a<br />
short time the well produced 200 litres a day, which<br />
was one fifth <strong>of</strong> an average oil well in the United<br />
States. But after four months, when the drillers<br />
had reached 116 metres, the well started producing<br />
water. It was decided to start drilling at another<br />
place, called Telaga Toenggal. Here, almost<br />
immediately petroleum was found, but the<br />
production was not enough to act as pro<strong>of</strong> to<br />
receive permission for exploitation. Zijlker, who<br />
by now had put in a lot <strong>of</strong> effort and spent most<br />
<strong>of</strong> his money, was very disappointed in the cooperation<br />
<strong>of</strong> the <strong>Dutch</strong>-Indies government. Another<br />
four years were spent to search for usable wells,<br />
but without much success. One day, the drillers<br />
went back to Telaga Toenggal. It turned out the<br />
well had started producing again. This time, the<br />
production turned out to be enough pro<strong>of</strong><br />
Zijlker travelled to the Netherlands to find<br />
investors to exploit the well. He was lucky, he<br />
10<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
DOING BUSINESS IN…<br />
travelled on the same ship as the retired director<br />
<strong>of</strong> the Bank <strong>of</strong> Java, N.P. van den Berg. During the<br />
trip, Zijlker convinced Van den Berg <strong>of</strong> the<br />
prospects <strong>of</strong> his petroleum venture in Sumatra. In<br />
the Netherlands, Van den Berg introduced Zijlker<br />
to bankers Gerard Dunlop and Edouard Boissevain.<br />
They were prepared to invest each for more than<br />
400.000 guilders. Zijlker and his brother also took<br />
part, so that in the end a total <strong>of</strong> 1,3 million<br />
guilders were raised. On June 16 1890 a new<br />
company was founded, the Royal <strong>Dutch</strong> Company<br />
for Exploitation <strong>of</strong> Oil Resources in the Netherlands<br />
Indies. Zijlker brought in his concession for which<br />
he received 171.000 guilders and shares. Zijlker<br />
travelled back to Sumatra to find other areas in<br />
Sumatra for exploration.<br />
It took another two years before the well in<br />
Talaga Toenggal <strong>of</strong>ficially started producing. But<br />
getting production started had not been easy.<br />
Workers at the spot had to improvise with little<br />
means and were troubled by tropical storms,<br />
mosquitoes and disease. Production started slowly<br />
because the lack <strong>of</strong> capital. The petroleum was<br />
refined at the spot in a new built refinery. The<br />
In February 1907, the Royal <strong>Dutch</strong>,<br />
which by that time exploited several<br />
oil fields and refineries, merged with Shell,<br />
a British company which had tankers and also the<br />
ability to market the oil, into a new company<br />
called the Royal <strong>Dutch</strong> Shell.<br />
Drilling at Telaga Said 1893 At the drilling floor<br />
beginnings can lead to big business<br />
most important product <strong>of</strong> the company during the<br />
first ten years was Crown Oil, which was sold all<br />
over Asia, but especially to Singapore and Penang.<br />
Only after raising new capital by selling more<br />
shares, production could be increased and activities<br />
broadened. This first well would later be known as<br />
Telaga Said I, and was the first production site <strong>of</strong><br />
the Royal <strong>Dutch</strong>. It would produce oil for more than<br />
half a century. During the 1890s a sales department<br />
was erected, and the company started to build its<br />
own tanker fleet to transport the oil. In 1894 the<br />
first pr<strong>of</strong>it was made <strong>of</strong> half a million guilders. A<br />
new oilfield was opened in Perlak in North-Sumatra<br />
in 1896. By then the company had really started<br />
expanding as a result <strong>of</strong> increasing demand <strong>of</strong> fuel<br />
from Europe. To meet this demand a refinery was<br />
build in Rotterdam in 1902.<br />
In February 1907, the Royal <strong>Dutch</strong>, which by that<br />
time exploited several oil fields and refineries,<br />
merged with Shell, a British company which had<br />
tankers and also the ability to market the oil, into a<br />
new company called the Royal <strong>Dutch</strong> Shell. The two<br />
companies merged their interests on a 60:40 basis<br />
while keeping their separate identities. Throughout<br />
the early twentieth century, the Group expanded<br />
with acquisitions in Europe, Africa and the Americas.<br />
These were exciting times for the oil industry, as<br />
the mass production <strong>of</strong> cars had opened up a vast<br />
new market. The 1920s and 1930s were expansion<br />
years, with Shell businesses in new regions and new<br />
industry sectors; Shell’s first foray into chemicals<br />
began in 1929. Today, Royal <strong>Dutch</strong> and Shell<br />
Transport owns investments in numerous companies<br />
in which are collectively referred to as the Royal<br />
<strong>Dutch</strong>/Shell Group <strong>of</strong> Companies. Shell operates in<br />
more than 145 countries and territories around the<br />
world and employs more than 115,000 people.<br />
Aeilco Zijlker would not live to see the success<br />
<strong>of</strong> the Royal <strong>Dutch</strong>. In December 1890, not long<br />
after the founding <strong>of</strong> the company, Zijlker suddenly<br />
died in Singapore, while travelling from Sumatra<br />
to Batavia. Singapore would be the last restingplace<br />
<strong>of</strong> this pioneer in the modern petroleum<br />
industry in Southeast Asia.<br />
By Dorien Knaap<br />
First brands <strong>of</strong> the Royal<br />
<strong>Dutch</strong><br />
Sources:<br />
H. Gabriëls, Koninklijke Olie: de eerste honderd jaar (1890-1990) (‘s Gravenhage 1990)<br />
W. Wennekes, De aartsvaders. Grondleggers van het Nederlandse bedrijfsleven<br />
(Amsterdam 1997).<br />
www.shell.com<br />
11<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
10 QUESTIONS<br />
2 x 5 =10Questions To<br />
…Rob Nijst and Lieke Rijken<br />
By Walter Moone<br />
In <strong>January</strong> two highly appreciated board member, Lieke Rijken<br />
(Honorary Secretary) and Rob Nijst (Honorary Treasurer), will leave<br />
Singapore and the ADB. In this months’ 10 Questions To’ we take the<br />
opportunity to look back at their stay in Singapore and their work<br />
for the ADB and look forward to the new challenges ahead <strong>of</strong> them<br />
and the future <strong>of</strong> the ADB.<br />
5 Questions to Lieke Rijken<br />
Can you give us a short insight <strong>of</strong><br />
1 your time in Singapore?<br />
I find it an enormous opportunity, both<br />
in a pr<strong>of</strong>essional and a personal way that I had the<br />
possibility to stay for a while in Asia. To live and<br />
work in a totally different culture, with different<br />
people, really opens your mind. You learn that<br />
things can be done differently, that people think<br />
and act differently but also that a lot <strong>of</strong> things<br />
are the same where ever you go. But also Laksa,<br />
Chicken Rice, Hang Boa, cheap taxi’s, expensive<br />
wines, the queues for the 10% discount at the petrol<br />
stations, SARS, efficient Changi and no chewing<br />
gum (very difficult for a person formally responsible<br />
for Sportlife!).<br />
What are your plans now you leave<br />
2 Singapore?<br />
First we go for a long holiday to Australia<br />
and New Zealand, then we will head to the<br />
Netherlands to continue our careers over there.<br />
What achievements as a board<br />
4 member <strong>of</strong> the ADB make you proud<br />
and are there things you wanted<br />
but failed to achieve?<br />
I am proud <strong>of</strong> the very interesting program <strong>of</strong> the<br />
last year with outstanding events. What I wanted<br />
but failed to realise (especially for me as a female<br />
board member!) is that we did not get the<br />
name changed.<br />
What tips do you have<br />
5 for the future <strong>of</strong> the<br />
ADB?<br />
The board is revising its strategy,<br />
which has some very interesting<br />
elements in it. Watch<br />
these developments<br />
closely!<br />
What will be your fondest<br />
3 memories <strong>of</strong> living in<br />
Singapore?<br />
We will miss our Black and White<br />
house, the waving palms in our<br />
garden, and having breakfast every<br />
morning on the veranda.<br />
12<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
10 QUESTIONS<br />
5 Questions to Rob Nijst<br />
Can you give us a short insight <strong>of</strong><br />
1 your time in Singapore?<br />
I started as a regional financial controller<br />
for Van Ommeren in <strong>January</strong> 1998. During the 1999<br />
merger between Van Ommeren and Pakhoed I took<br />
part in the integration team for Asia. In 2000 I made<br />
the move to business development and regional<br />
commercial activities.<br />
My involvement in the ADB board started about<br />
three years ago. In reaction to a rumour that the<br />
ADB board intended to split up the ADB in a group<br />
for older and a group for younger members I<br />
wrote an article in ‘Who the Pen fits’ claiming<br />
that the ADB was becoming an ‘éminence grise’.<br />
The article created a bit <strong>of</strong> commotion and shortly<br />
after this I was asked to join the board as<br />
treasurer.<br />
What are your fondest memories <strong>of</strong><br />
2 living in Singapore?<br />
For one the possibility to travel, both<br />
for work and leisure, but also the outdoor living<br />
and everything that comes with that – al<br />
fresco dining, the ideal location for<br />
sports like tennis and golf and never<br />
having to dress your children in warm<br />
winter clothes. Which brings me to<br />
one <strong>of</strong> the best memories, the<br />
fact that two <strong>of</strong> my children were<br />
born here. Live with my family in<br />
Singapore has been great. We were<br />
also blessed with a maid<br />
that made the <strong>Dutch</strong><br />
apple tart better<br />
than the <strong>Dutch</strong><br />
themselves.<br />
In your prologue <strong>of</strong> ADB Newsbrief<br />
3<br />
last month you mentioned your new<br />
challenge in the Netherlands. Can<br />
you tell us something about this challenge?<br />
For 6 years I worked in the growing markets in<br />
Asia. Especially in my capacity as director business<br />
development, this meant an ongoing effort to<br />
identify opportunities and to manage growth. In<br />
the Netherlands I will work in a mature market,<br />
where the emphasis will be much more on<br />
organisational development and optimisation <strong>of</strong><br />
the service level. The additional big difference<br />
will be the difference between the <strong>Dutch</strong> and the<br />
Asian labour relations.<br />
What achievements as a board<br />
4 member <strong>of</strong> the ADB make you proud<br />
and are there things you wanted<br />
but failed to achieve?<br />
As a treasurer I regard the added transparency<br />
in the financial administration as a good<br />
accomplishment. When I started as a treasurer I<br />
came across a simple administration that had grown<br />
very complex over the years. More in general,<br />
I am proud <strong>of</strong> the fact that we were able to form<br />
a high quality board and improved the quality<br />
<strong>of</strong> the monthly meetings. The visit to Vopak last<br />
month was a good example <strong>of</strong> this (smile).<br />
What I had hoped but where we have not been<br />
successful, was a growth <strong>of</strong> the number <strong>of</strong><br />
members. In itself explainable given the exodus<br />
<strong>of</strong> expatriates from Singapore, but on the other<br />
hand surprising as I still regard the ADB to be one<br />
<strong>of</strong> the best networking platforms for the <strong>Dutch</strong><br />
business community.<br />
How do you see the future <strong>of</strong> the<br />
5 ADB?<br />
In line with the vision <strong>of</strong> the current<br />
board I see the ADB as a networking organisation<br />
with a solid number <strong>of</strong> members that meet<br />
frequently to attend high quality events. These<br />
events can be presentations by excellent speakers,<br />
interesting company visits, but also business<br />
lunches. Not the number <strong>of</strong> meetings, but the<br />
quality <strong>of</strong> the events is important.<br />
However, one <strong>of</strong> the most important things for<br />
the future <strong>of</strong> the ADB is the continuing feedback<br />
from the members to the ADB board and editorial<br />
committee. Only with a high level <strong>of</strong> involvement<br />
and commitment from the members the ADB will<br />
prove to be sustainable.<br />
13<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
HEIR, THRONE & KINGDOM<br />
Princess Amalia has arrived<br />
by Brigitte Velema<br />
Sunday, the 7th <strong>of</strong><br />
December the first<br />
child <strong>of</strong> crown prince<br />
Willem-Alexander and<br />
his wife princess<br />
Maxima was born. The<br />
arrival <strong>of</strong> the little<br />
princess ended the<br />
speculations about<br />
princess Maxima being<br />
pregnant <strong>of</strong> a twin.<br />
These speculations<br />
came in to life as the<br />
mother was ordered<br />
bed rest for several months and after the sudden<br />
announcement that the delivery would probably<br />
take place more than a month before the initial<br />
given delivery date. From hindsight the original<br />
announced birth date in <strong>January</strong> was probably a<br />
month after the real expected date. This was most<br />
likely done to prevent too much media pressure<br />
on the couple in the last weeks <strong>of</strong> the pregnancy,<br />
as the Belgium crown prince and his wife practiced<br />
the same tactic.<br />
There was no twin, but a little baby girl<br />
weighing 3310 grams with a length<br />
<strong>of</strong> 52 cm. Both mother and child are<br />
doing very well and crown prince<br />
Willem-Alexander added that the<br />
mother was intensely happy with her<br />
daughter. Queen Beatrix announced<br />
the birth in the Staats Courant, just<br />
as the birth <strong>of</strong> her sons were<br />
announced in the same paper by her<br />
mother, at that time Queen Juliana.<br />
The little princess is named<br />
Catharina-Amalia Beatrix Carmen<br />
Victoria, princess <strong>of</strong> the Netherlands,<br />
princess <strong>of</strong> Oranje Nassau. Prince Willem-Alexander<br />
explained that it was difficult to decide on the<br />
names as they did not know the gender <strong>of</strong> the baby<br />
in advance, and by the time the baby was there it<br />
turned out that a lot <strong>of</strong> historical royal names had<br />
already been claimed for websites. In daily life<br />
the little princess will go by the name <strong>of</strong> Amalia.<br />
Amalia is a familiar name in the royal family’s<br />
history. Amalia van Solms-Braunfels was the wife<br />
<strong>of</strong> Prince Frederik Hendrik and the mother <strong>of</strong><br />
Willem II. She used her influence to improve the<br />
position <strong>of</strong> the House <strong>of</strong> Orange. She introduced<br />
court etiquette, had 3 palaces build (including<br />
Huis ten Bosch) and took care <strong>of</strong> the finances. Her<br />
major triumph was the arranged marriage <strong>of</strong> her<br />
eldest son to English king’s daughter Mary Stuart,<br />
who later gave birth to Willem III.<br />
The newborn will get her own coins <strong>of</strong> 10 Euro,<br />
special silver and gold coins and stamps with her<br />
image. Several towns have declared that they will<br />
name a square or a street after<br />
the princess. The baby already<br />
has a coat <strong>of</strong> arms, designed by<br />
the “Hoge Raad van de Adel’. It<br />
contains two blue fields with the<br />
<strong>Dutch</strong> Lion and two gold colored<br />
fields with a hunting horn. Both<br />
symbols originate from the van Oranje Nassau<br />
family. In the middle there is a small coat <strong>of</strong> arms<br />
<strong>of</strong> the Zorreguieta family with a fortress, two<br />
cypress trees and two wolves.<br />
About an hour after the princess was born,<br />
101 salutes were fired in Den Haag, Den Helder,<br />
Willemstad (Curaçao) en Oranjestad (Aruba). This<br />
is <strong>Dutch</strong> tradition to celebrate the<br />
birth <strong>of</strong> a new future heir to the<br />
throne. The <strong>Dutch</strong> responded in<br />
generally very enthusiastic to the<br />
news <strong>of</strong> the birth. A lot <strong>of</strong> people<br />
raised the <strong>Dutch</strong> flag and within<br />
hours after the birth more than<br />
10.000 people congratulated the<br />
royal family with the birth on the<br />
website <strong>of</strong> the royal house and more<br />
than 500.000 people visited the site.<br />
On search engines on the Internet<br />
the name Catharina-Amalia quickly<br />
rose to the most searched subject. A lot <strong>of</strong><br />
people phoned each other after the <strong>of</strong>ficial<br />
announcement <strong>of</strong> the birth <strong>of</strong> the baby, as the<br />
number <strong>of</strong> phone calls made increased with<br />
50% according to KPN. SMS messages increased<br />
with 100%.<br />
It is still possible to congratulate the royal<br />
family with the birth <strong>of</strong> the princess on the website<br />
<strong>of</strong> the royal house: www.koninklijkhuis.nl.<br />
14<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
COMPANY NEWS<br />
2003, <strong>Dutch</strong> Media/Newspapers<br />
Smit salvage to rescue Greek<br />
Tasman Spirit Tanker<br />
Smit Salvage, a subsidiary <strong>of</strong> <strong>Dutch</strong> maritime services provider Smit Internationale NV,<br />
has signed a contract for the rescue <strong>of</strong> Greek tanker Tasman Spirit.<br />
Tasman Spirit sank five months ago near Karachi, southern Pakistan. The rescue<br />
operations will begin immediately and are expected to be completed in several months.<br />
No financial details were disclosed. According to Smit Salvage public relations manager<br />
L. Walder, the sum depends on the rescue operations. Smit Salvage will also remove the<br />
rest <strong>of</strong> the oil from the ship before the operation.<br />
Smit Internationale was founded in 1842 in Rotterdam. The company is divided into<br />
four divisions providing harbour towage and additional port services, terminal management,<br />
terminal operations, rescue and wreck removal, environment care and consultancy, civil<br />
construction, ocean and coastal towage services.<br />
Anglo-<strong>Dutch</strong> Shell, trade<br />
unions do not agree on CAO<br />
Shell Nederland Raffinaderij and Shell<br />
Nederland Chemie, <strong>Dutch</strong> units <strong>of</strong> Anglo-<br />
<strong>Dutch</strong> oil company Royal <strong>Dutch</strong>/Shell Group,<br />
did not reach an agreement with the <strong>Dutch</strong><br />
trade unions FNV and CNV over the new<br />
collective labour agreement (CAO) for a total<br />
2,300 workers at the plants in Pernis and<br />
Moerdijk, southern Netherlands, Shell said.<br />
Shell wanted to stick to the terms <strong>of</strong> the<br />
<strong>2004</strong> CAO between the <strong>Dutch</strong> Cabinet, trade<br />
unions and employers, which envisaged a<br />
freeze <strong>of</strong> salary increases in <strong>2004</strong>. FNV<br />
demanded a structural wage increase <strong>of</strong> 650<br />
euro in <strong>2004</strong> and a one-<strong>of</strong>f 650 euro ($791.96)<br />
result-related payment, while Shell <strong>of</strong>fered<br />
two one-<strong>of</strong>f result-related payments <strong>of</strong> 1.0<br />
pct in April <strong>2004</strong> and December <strong>2004</strong>. Shell’s<br />
<strong>of</strong>fer concerns the period between October<br />
1, 2003 and April 1, 2005. Both trade unions<br />
will present Shell’s <strong>of</strong>fer to their members<br />
in the week ending December 19, 2003. A<br />
total <strong>of</strong> 3,000 are currently employed at the<br />
Pernis and Moerdijk plants, 2,300 <strong>of</strong> whom<br />
are subjects to the CAO.<br />
KLM and Air France<br />
merger still on track<br />
KLM and Air France expect to present US and<br />
European Union regulators with their merger<br />
filing “within four to five weeks”, the <strong>Dutch</strong><br />
flag carrier said yesterday, but added that<br />
the timetable remained on track.<br />
Regulators in Brussels and Washington are<br />
expected to take six to eight weeks to weigh<br />
the application to form what would be the<br />
world’s largest airline by turnover and the<br />
third biggest by traffic volumes, KLM said.<br />
The companies are taking their time to<br />
ensure the filing is thorough enough to satisfy<br />
regulators who will look closely at pricing<br />
and route overlap, and have twice already<br />
pushed back the expected date by which<br />
documents will be submitted.<br />
“The regulators want very detailed<br />
information, for instance on (ticket) pricing<br />
and routes,” KLM said. “We are happy with<br />
the progress we are making.” The merger,<br />
announced on September 30, would then be<br />
put to shareholders for approval. The<br />
carriers expect to launch a share exchange<br />
<strong>of</strong>fer in March <strong>2004</strong>. Ian Bickerton<br />
KLM cancels test with on-board undercover<br />
security <strong>of</strong>ficers<br />
Royal Airlines KLM provisionally cancelled<br />
a test with undercover security <strong>of</strong>ficers<br />
aboard its aircraft, chairman <strong>of</strong> the pilot’s<br />
trade union, H. de Vries, said.<br />
KLM cancelled the test as the security<br />
<strong>of</strong>ficers were supposed to be armed and<br />
the company and the pilots feared that<br />
these arms may be used against the<br />
security <strong>of</strong>ficers and the crew, De Vries<br />
said.<br />
The airline company and the <strong>Dutch</strong><br />
Justice Ministry negotiated for months on<br />
the improvement <strong>of</strong> security on board <strong>of</strong><br />
the aircraft. The security <strong>of</strong>ficers have to<br />
prevent terrorist acts like the attacks in the<br />
USA on September 11, 2001. Several airline<br />
companies have on-board security <strong>of</strong>ficers<br />
on some flights.<br />
The <strong>Dutch</strong> security <strong>of</strong>ficers have passed<br />
special training in Germany and in Israel<br />
since end-2002. The so-called air-marshals<br />
were to carry weapons under their civilian<br />
clothes and to travel undercover. The<br />
presence <strong>of</strong> undercover <strong>of</strong>ficers also has to<br />
discourage terrorists to operate on board <strong>of</strong><br />
aircaft.<br />
Ahold’s <strong>of</strong>fering<br />
succeeds, assures firm<br />
<strong>of</strong> 3 billion euros<br />
Ahold NV said its shareholders had subscribed<br />
to more than 90% <strong>of</strong> an <strong>of</strong>fering <strong>of</strong> 3 billion<br />
euros in new shares. Ahold, the world’s<br />
third-largest supermarket operator in<br />
terms <strong>of</strong> sales after Wal-Mart Stores Inc. <strong>of</strong><br />
the U.S. and Carrefour SA <strong>of</strong> France, was<br />
hit by a major accounting scandal in<br />
February involving improprieties at several<br />
subsidiaries around the world.<br />
Ahold hopes the rights issue coupled with<br />
asset sales, which aims to raise 2.5 billion<br />
euros, will end the company's financial<br />
worries and will help meeting its debt<br />
obligation during the next couple <strong>of</strong> years.<br />
The <strong>Dutch</strong> retailer said shareholders<br />
had exercised their rights to 94.6% <strong>of</strong> the<br />
new shares by the close <strong>of</strong> the <strong>of</strong>fering<br />
Wednesday. Ahold’s banks placed the<br />
remaining shares in a private placement<br />
to a group <strong>of</strong> institutional investors.<br />
Shareholders subscribed to 587.3 million<br />
new Ahold shares, leaving 33.7 million shares<br />
outstanding. Shareholders also subscribed<br />
to 109.9 million depositary receipts as part<br />
<strong>of</strong> the overall <strong>of</strong>fering.<br />
The new shares have started trading<br />
in December 2003. The rights issue is fully<br />
underwritten by the banks, meaning that<br />
Ahold is assured <strong>of</strong> receiving the 3 billion<br />
euros it wants to restructure the company<br />
and bring down its debt <strong>of</strong> 11 billion euros.<br />
When Ahold announced the <strong>of</strong>fering<br />
recently, it <strong>of</strong>fered shareholders the right<br />
to buy two new shares for every three they<br />
own. The <strong>of</strong>fer price <strong>of</strong> 4.83 euros was a<br />
42% discount to the previous day’s closing<br />
price <strong>of</strong> 8.27 euros. The remaining shares<br />
in the rump placement were priced at<br />
5.78 euros, Wednesday’s closing price.<br />
Duinrell not to launch<br />
smoke-free areas<br />
Amusement park Duinrell in Wassenaar,<br />
western Netherlands, is not obliged to make<br />
its buildings smoke-free, a court in the Hague<br />
said. Earlier <strong>Dutch</strong> non-smokers’ association<br />
Clean Air Now (CAN) had asked for a smoking<br />
ban in Duinrell. CAN mainly protested<br />
smoking in the restaurants and cafeterias <strong>of</strong><br />
Duinrell, which affect employees’ health.<br />
Employers in the Netherlands will be<br />
obliged to provide a smoke-free working<br />
place for their employees as <strong>of</strong> <strong>January</strong> 1,<br />
<strong>2004</strong>, according to a new anti-smoking<br />
regulation. <strong>Dutch</strong> Health Minister Hans<br />
Hoogervorst proposed public catering<br />
companies to develop their own strategy for<br />
setting up smoke-free areas.<br />
15<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
KNOW YOUR TAX<br />
In order to level the open market playing field, the<br />
EU has been trying to harmonise the Member States<br />
tax systems for years. As far as indirect taxes are<br />
concerned, the effort has been rather successful<br />
with all EU countries adopting similar VAT systems.<br />
In respect <strong>of</strong> direct taxes (i.e. income taxes), the<br />
harmonisation has been less successful. This is caused by<br />
the fact that Member States do not like to give up their<br />
sovereign powers when it comes to direct taxation.<br />
Direct taxation is by many States considered to be an<br />
important policy instrument (e.g. fiets van de zaak etc.).<br />
Furthermore, any proposal relating to the harmonisation<br />
<strong>of</strong> direct taxation requires unanimous approval. This<br />
delays matters further.<br />
There has however been a strong proponent in<br />
furthering the harmonisation <strong>of</strong> the Member States’ tax<br />
systems and that is the European Court <strong>of</strong> Justice (ECJ).<br />
Taxpayers in the Member States can invoke the EU<br />
legislation directly and if a Member State’s tax system is<br />
considered not to be in<br />
line with EU legislation,<br />
Bosal case<br />
the Member State is<br />
required to amend its<br />
domestic legislation.<br />
The ECJ has recently<br />
used this ‘power to<br />
By Olaf Botermans destruct’ with respect to the <strong>Dutch</strong> tax system. The Court<br />
& Pieter de Ridder<br />
decided that one <strong>of</strong> the oldest features <strong>of</strong> the <strong>Dutch</strong><br />
Loyens & Loeff<br />
corporate income tax system caused an infringement to<br />
Singapore<br />
the EU treaty. The non-deductibility <strong>of</strong> costs relating to<br />
qualifying subsidiaries with foreign activities was held<br />
incompatible with the ‘freedom <strong>of</strong> establishment’ as<br />
codified in the EU Treaty.<br />
Income from qualifying<br />
subsidiaries is exempt in the<br />
Netherlands. Expenses relating to<br />
such a subsidiary are non deductible,<br />
unless the subsidiary generates pr<strong>of</strong>its<br />
which are taxable in the Netherlands<br />
(‘13 (1) expenses’). The ECJ’s line <strong>of</strong><br />
reasoning was that it should not make<br />
a difference whether the subsidiary<br />
generates taxable income in the<br />
Netherlands or any other EU State.<br />
Following ECJ’s decision, the<br />
<strong>Dutch</strong> government submitted a<br />
proposal <strong>of</strong> law to the <strong>Dutch</strong><br />
parliament on October 13, 2003.<br />
The proposal, which intends to limit<br />
the budgetary consequences <strong>of</strong> the<br />
Court’s decision contains thin<br />
capitalisation rules and a measure aimed at ring fencing<br />
prior and future year losses claimed by <strong>Dutch</strong> holding<br />
companies. These tax losses (not to be confused with<br />
commercial losses!) are the result <strong>of</strong> the fact that the<br />
income from the qualifying subsidiary will be exempt in<br />
the hands <strong>of</strong> the holding company, while on the basis <strong>of</strong><br />
Income from qualifying<br />
subsidiaries is exempt in<br />
the Netherlands. Expenses<br />
relating to such subsidiary<br />
are not deductible, unless<br />
the subsidiary generates<br />
pr<strong>of</strong>its which are taxable<br />
in the Netherlands (‘13 (1)<br />
expenses’).<br />
the Bosal case, the interest will be deductible. The<br />
proposal furthermore deletes the provision dealing<br />
with the non-deductibility <strong>of</strong> expenses relating to<br />
qualifying subsidiaries.<br />
Instead, the thin capitalisation rules disallow<br />
interest deductions on excessive debt financing.<br />
Interest on loans from related parties is in principle<br />
considered excessive to the extent that the debt-toequity<br />
ratio <strong>of</strong> the taxpayer exceeds 3:1. For purposes<br />
<strong>of</strong> calculating the debt-to-equity ratio, all loans and<br />
receivables must be netted against each other at the<br />
beginning and the end <strong>of</strong> the year. Then, the average<br />
<strong>of</strong> the two net debt positions is taken into account<br />
for purposes <strong>of</strong> calculating the ratio. Equity is defined<br />
as the average fiscal equity at the beginning and the<br />
end <strong>of</strong> the year. If the average (net) debt-to-equity<br />
ratio exceeds 3:1, the interest relating to excessive<br />
debt-financing is not deductible for corporate income<br />
tax purposes. In addition to determining the holding<br />
company’s debt to equity ration on a stand-alone basis,<br />
the debt to equity ratio <strong>of</strong> the group to which the<br />
holding company may belong may also be applied.<br />
It is important to note that these thin<br />
capitalisation rules only apply to qualifying holding<br />
companies. For this purpose, a holding company is a<br />
company which is for 90 percent or more engaged in<br />
holding participations and financing related entities.<br />
A company is not a holding company if it has at least<br />
25 full time employees engaged in non-holding<br />
activities.<br />
Under the loss ring fencing rules, losses incurred<br />
by a holding company may only be utilised against<br />
income in a year in which the<br />
taxpayer also qualifies as a<br />
holding company. In addition, in<br />
the year in which the loss is<br />
utilised, the positive difference<br />
between the book value <strong>of</strong> the<br />
receivables on related parties<br />
and the book value <strong>of</strong> the<br />
payables to related parties may<br />
not have increased when<br />
compared to the year in which<br />
the loss was incurred, unless the<br />
taxpayer establishes that such<br />
increase was not incurred with<br />
a view to utilising the loss.<br />
It is important to note that<br />
before the Bosal case, 13 (1)<br />
expenses were not deductible.<br />
As such, no tax loss would arise.<br />
Under the thin capitalisation rules, tax losses may arise<br />
as a result <strong>of</strong> the deduction <strong>of</strong> expenses falling within<br />
the prescribed debt-to-equity ratio. The resulting tax<br />
losses may provide an interesting tax shelter for<br />
income which would otherwise have been taxable<br />
in the Netherlands.<br />
The above intends to provide you with a general understanding <strong>of</strong> tax developments in the Netherlands. The<br />
above should not be regarded as a substitute for appropriate detailed advice.<br />
16<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
FINANCIAL INSIGHT<br />
China: Threat or engine <strong>of</strong> growth?<br />
Jan Lambregts<br />
Economist / Strategist<br />
Rabobank<br />
A number <strong>of</strong> threats are supposed to originate from China. Flying accusations include the<br />
export <strong>of</strong> deflation, responsibility for manufacturing employment losses in the rest <strong>of</strong><br />
the world and manipulation <strong>of</strong> its currency for unfair trade advantages, much to the<br />
detriment <strong>of</strong> the US trade balance. Should the world be worried?<br />
China’s export <strong>of</strong> deflation just one <strong>of</strong> many deflationary forces in play<br />
China’s labor cost advantage over most other countries in the world is substantial. In an attempt to retain<br />
high levels <strong>of</strong> pr<strong>of</strong>itability, many Western and Japanese companies have tried to winter the economic downturn<br />
by aggressively cutting costs through a shift <strong>of</strong> (part <strong>of</strong>) their production facilities into China. The resulting<br />
downwards pressure on global prices compounded to the weak price environment <strong>of</strong> the economic downturn,<br />
which was in turn largely the result <strong>of</strong> the investment boom that preceded it. The spectre <strong>of</strong> a liquidity trap<br />
surfaced, but appears to have passed. While it is true that the China factor added to the risk <strong>of</strong> a liquidity<br />
trap at an unfortunate time, its cost deflation would normally be considered benign to consumers and<br />
overall was a relatively limited factor compared to other deflationary forces in play.<br />
Chart 1: Export deflation accusation may turn into export<br />
inflation 1<br />
Chart 2: What about China’s employment losses after Asian<br />
Crisis?<br />
Source: CEIC, Rabobank Research<br />
Source: CEIC, Rabobank Research<br />
1<br />
Official Chinese data series<br />
regularly draw heavy criticism<br />
for their unreliability. Since<br />
these are <strong>of</strong>ten the only data<br />
sources available on China, it<br />
is hard to escape using them.<br />
In particular the charts on<br />
export deflation/inflation and<br />
employment losses above<br />
should be interpreted with<br />
caution. The charts on trade<br />
are more reliable, while the<br />
charts on export/GDP and<br />
Hong Kong visitor arrivals draw<br />
their data from other sources.<br />
China will not absorb all manufacturing activity<br />
It cannot be denied that the reallocation <strong>of</strong> production facilities to China has hurt (employment in) certain<br />
industries and forces many countries to rethink their economic development strategies. The notion that<br />
China is about to absorb most <strong>of</strong> the world’s manufacturing activity, however, is too simplistic. First, China’s<br />
newfound capitalism is built on fragile fundamentals. The country still faces enormous challenges that will<br />
likely limit its potential to endlessly absorb manufacturing activity. Second, standard economic trade theory<br />
teaches us that allocation decisions are about comparative rather than absolute advantages. So while China<br />
may be the cheapest place to produce just about anything, it can be expected to specialize in those industries<br />
in which it is relatively speaking the most efficient, leaving plenty <strong>of</strong> other areas for other countries to<br />
specialize in. True, some industries and countries will face painful decisions; yet rather than investing<br />
energy in fighting these outcomes, countries ultimately stand to gain more from focussing on how best to<br />
position and benefit from the emerging Chinese economy.<br />
China not primarily to blame for large US trade deficit<br />
Various studies have shown the Chinese renminbi, which has de facto been pegged to the US dollar since 1994,<br />
to be undervalued by a range <strong>of</strong> 15-40% (REER basis). This has prompted the US to blame China for its growing<br />
trade deficit, claiming Chinese policymakers are using the peg to gain unfair trade advantages. A casual<br />
examination <strong>of</strong> the large bilateral trade deficit <strong>of</strong> the US with China would seem to confirm this, yet that road<br />
is too simplistic. The large US trade deficit with the world is the combined result <strong>of</strong> the US consumer living it<br />
large while the rest <strong>of</strong> the world has proven both willing to supply the products and plug the resulting financing<br />
18<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
FINANCIAL INSIGHT<br />
gap. One has to give the American consumer credit for at least picking one <strong>of</strong> the cheapest manufacturers<br />
(China) to supply their products. To subsequently claim that the resulting large bilateral trade deficit with<br />
China is the sole result <strong>of</strong> currency manipulation is however a statement for US domestic political consumption<br />
rather than an expression <strong>of</strong> economic rationale. We think the undervaluation <strong>of</strong> the renminbi is likely to be<br />
close to 15%. Even then one can wonder if that really calls for a correction given China’s fragile fundamentals<br />
and enormous challenges ahead.<br />
Chart 3: China continues to run a large bilateral trade<br />
surplus with US<br />
Chart 4: EU countries running a trade surplus recently<br />
though<br />
Source: CEIC, Rabobank Research<br />
Source: CEIC, Rabobank Research<br />
A potential engine <strong>of</strong> growth to the world…<br />
If threats have been exaggerated, could China then be a boon to the world instead, i.e. a new engine <strong>of</strong><br />
growth? We think the potential is surely there. China’s 1.3 billion citizens present an enormous market to<br />
the rest <strong>of</strong> the world as the country’s economy and purchasing power continues to expand rapidly. China’s<br />
policymakers have clearly committed themselves to an ambitious growth program and seem determined to<br />
continue economic reforms to further free market thinking and mechanisms. Moreover, unlike the successful<br />
“Asian Tigers”, China is not overtly focussed on exports. This leaves more room for the development <strong>of</strong><br />
vibrant domestic demand, which in turn <strong>of</strong>fers export opportunities to the rest <strong>of</strong> the world. China’s ascension<br />
to the WTO at the end <strong>of</strong> 2001 initially saw a boost to Chinese exports and a rising trade surplus with the rest<br />
<strong>of</strong> the world, but ultimately also acts to open up Chinese markets to foreign exporters. Japan and Euroland<br />
are already enjoying a trade surplus with China, suggesting the US may be the exception rather than the rule.<br />
…especially to the Asian region<br />
For the Asian region (including Japan) in particular China could be an engine <strong>of</strong> growth. Geographical<br />
proximity guarantees many Asian countries <strong>of</strong> an advantage over the rest <strong>of</strong> the world when it comes to<br />
blending into new supply chains with China at the center. This also leaves Asian countries well positioned to<br />
meet growing Chinese demand for products. A wealthier China should also produce a steady stream <strong>of</strong><br />
tourists to the rest <strong>of</strong> Asia.<br />
But enormous economic and political challenges on the road limit our enthusiasm<br />
The above illustrates the potential <strong>of</strong> China as an engine <strong>of</strong> growth to the rest <strong>of</strong> the world. Unfortunately<br />
it cannot be denied that there are serious obstacles on the road. The country’s financial system is<br />
underdeveloped by modern economies’ standards and features a particularly weak banking sector. Institutions<br />
and legal systems in general require large overhauls to gear up China as a sustainable engine <strong>of</strong> growth.<br />
Bureaucracy and corruption are widespread problems that need to be addressed. While Chinese policymakers<br />
are strongly focussed on economic progress and probably have both the willingness and resolve to see<br />
through significant reforms to face challenges in the years ahead, that is not to say there won’t be any<br />
serious setbacks. The risk <strong>of</strong> such setbacks is far from academic and dampens our enthusiasm over China’s<br />
potential as a growth locomotive in the coming years substantially. The transformation <strong>of</strong> the Chinese<br />
economy is a monster project in all <strong>of</strong> its dimensions, <strong>of</strong> which the sociological one cannot be ignored. New<br />
freedoms could change the very fabric <strong>of</strong> society and present additional challenges to political leaders and<br />
sources <strong>of</strong> risk to the country’s stability.<br />
19<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
FINANCIAL INSIGHT<br />
Chart 5: China’s export/GDP ratio in line with OECD average<br />
Chart 6: Chinese tourists promising boost for Asian region<br />
Source: Worldbank Development Indicators 2003, Rabobank Research<br />
Source: CEIC, Rabobank Research<br />
The real threat to the world is for China to disappoint, rather than excel<br />
The variety <strong>of</strong> threats that is said to originate from China are more <strong>of</strong>ten accusations from countries that<br />
refuse to solve their own structural shortcomings that lie at the heart <strong>of</strong> the suggested problems. The real<br />
threat the world should pay more attention to is a serious setback in the economic development <strong>of</strong> China<br />
somewhere in the upcoming years, which could be triggered by economic and/or political factors. Not<br />
only would this hurt many countries’ economies through their increasingly close economic ties with China,<br />
but it would also do serious damage to the long-term potential engine <strong>of</strong> growth China could be for the<br />
rest <strong>of</strong> the world.<br />
20<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
DUTCH DESK<br />
2003, <strong>Dutch</strong> Media/Newspapers<br />
Tilburg Reesh<strong>of</strong> Train<br />
Station Collapses<br />
The new train station in the <strong>Dutch</strong> town <strong>of</strong><br />
Tilburg Reesh<strong>of</strong>, in Noord-Brabant province,<br />
was closed when part <strong>of</strong> the platform<br />
collapsed a day after the station was opened.<br />
According to <strong>Dutch</strong> state-owned railways<br />
authority ProRail, a large quantity <strong>of</strong> sand<br />
used for the station’s construction spilled<br />
and the pile collapsed after heavy rainfall.<br />
An unnamed building company will repair<br />
the collapsed platform.<br />
The trains will not stop at the Tilburg<br />
Reesh<strong>of</strong> station until the repair is completed.<br />
Passengers will use buses. The reconstruction<br />
<strong>of</strong> the station is expected to be completed<br />
within a day. The trains will stop at the train<br />
station on Sunday because they travel with<br />
less passenger carriages and could avoid<br />
the damaged station sections.<br />
1,100 sea containers to<br />
provide accommodation<br />
to Amsterdam students<br />
The Amsterdam executive municipal body<br />
College <strong>of</strong> Mayor and Aldermen voted in<br />
favour <strong>of</strong> converting 1,100 sea containers<br />
into students’ lodgings. The move is aimed<br />
at dealing with the current room shortage<br />
for Amsterdam students. Students will pay<br />
250 euro ($308) a month for these lodgings.<br />
The containers will be located on the<br />
H.J.E. Wenckebachweg street for a period <strong>of</strong><br />
five years and will then be moved to another<br />
location. <strong>Dutch</strong> Keetwonen foundation will<br />
be responsible for the construction <strong>of</strong> the<br />
rooms and Amsterdam housing corporation<br />
Intermezzo will maintain them.<br />
Construction works will start in the<br />
spring <strong>of</strong> <strong>2004</strong>. The first students are<br />
expected to move in the containers at the<br />
beginning <strong>of</strong> the <strong>2004</strong>/2005 academic year.<br />
Smoking ban to be<br />
introduced in<br />
<strong>Dutch</strong> Crematoria<br />
The National <strong>Association</strong> <strong>of</strong> Crematoria<br />
(LVC) in the Netherlands will introduce<br />
a smoking ban in its crematoria as <strong>of</strong><br />
<strong>January</strong> 1, <strong>2004</strong>, LVC reported.<br />
The smoking ban will be enforced on<br />
the entire premises, and apply both to<br />
employees and visitors. Employers in<br />
the Netherlands will be obliged to<br />
provide a smoke-free working place<br />
for their employees as <strong>of</strong> <strong>January</strong> 1,<br />
<strong>2004</strong>, according to a new anti-smoking<br />
regulation.<br />
Crematoria employees will have to<br />
inform visitors about the ban on smoking<br />
in advance, LVC said. All the crematoria<br />
in the Netherlands, about 60, are<br />
associated with LVC.<br />
Three northern provinces to<br />
report shortage in employees<br />
The three northern provinces will report a shortage in teachers, medical employees,<br />
police <strong>of</strong>ficers and employees in the agriculture sector in <strong>2004</strong>, a survey carried out by<br />
the Groningen University showed.<br />
The shortage is mainly a result <strong>of</strong> the ageing <strong>of</strong> employees in these sectors, the<br />
survey showed. An increasing unemployment rate was registered in the three provinces<br />
Friesland, Groningen and Drenthe.<br />
The Groningen University expects a shortage <strong>of</strong> employees in more sectors if the<br />
economical situation will improve. The northern provinces are more affected by the<br />
ageing <strong>of</strong> employees compared to the other <strong>Dutch</strong> provinces. The working population<br />
in the three provinces will decrease by more than 22,000 people until 2010, mainly in<br />
the educational and agricultural sectors.<br />
Zuid Holland proposes two regional<br />
broadcasters to go bankrupt<br />
The majority <strong>of</strong> the council <strong>of</strong> the western<br />
<strong>Dutch</strong> province <strong>of</strong> Zuid Holland proposed the<br />
troubled regional TV and radio broadcasters<br />
RTV Rijnmond and RTV West to go bankrupt.<br />
After the bankruptcy the broadcasters<br />
have to resume operations after a<br />
restructuring programme has been launched,<br />
the provincial council said. A resumption <strong>of</strong><br />
the operations will cost the province<br />
between 4.0 mln euro ($4.9 mln) and 5.0<br />
mln euro ($6.1 mln) per broadcaster, while<br />
a restructuring programme without a<br />
bankruptcy will be less expensive. RTV West<br />
will probably need 3.0 mln euro ($3.7 mln)<br />
to start a restructuring programme, RTV<br />
West director Binnendijk said.<br />
RTV Rijnmond and RTV West face<br />
financial difficulties mainly due to excessive<br />
spending, big number <strong>of</strong> employees and<br />
decreased advertising revenue, according to<br />
a survey, which was carried out by the<br />
province and published in November 2003.<br />
RTV West has to cut 35 <strong>of</strong> its 146 jobs, and<br />
RTV Rijnmond needs to cut 37 <strong>of</strong> the 147<br />
jobs to keep operational, the survey showed.<br />
The council <strong>of</strong> Zuid Holland will decide<br />
later whether to allocate subsidies to the<br />
regional broadcasters.<br />
Rijksmuseum<br />
moves Rembrandt’s<br />
Night Watch<br />
The <strong>Dutch</strong> Rijksmuseum in Amsterdam<br />
moved Rembrandt’s painting Night Watch<br />
to the Philips Wing <strong>of</strong> the museum.<br />
The Night Watch was moved for the first<br />
time since 1945. All the 17th century<br />
masterpieces <strong>of</strong> the museum, including Night<br />
Watch, will be exhibited at the Philips Wing<br />
until 2008, as the Rijksmuseum started a<br />
272 mln euro ($332 mln) renovation project.<br />
The transfer <strong>of</strong> the painting, which was<br />
not announced due to security reasons,<br />
started at 0630 local time. Conservators,<br />
art-transport specialists and technical<br />
employees placed the paining in a wooden<br />
frame, which was specially made for the<br />
operation. The frame was protected by a<br />
cover, which was equipped with sensors<br />
which had to control the temperature, the<br />
vibrations and the humidity during the<br />
transfer. Around 1200 local time, the Night<br />
Watch was transported outside the museum<br />
and brought to the Philips Wing. A large area<br />
around the museum was closed by the police<br />
forces during the move across the street.<br />
The Philips Wing will open later in<br />
December 2003. Rijksmuseum has lent part<br />
<strong>of</strong> its collection to five museums in the<br />
Netherlands during the renovation works<br />
and several exhibitions will travel to Europe,<br />
the United States and Japan.<br />
21<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
WHEELS<br />
Love and CarriageBy Olaf Botermans<br />
▲<br />
Quinny not adept<br />
at cornering<br />
Singapore is a fertile place. Many people arrive in<br />
Singapore childless, only to enter the phase <strong>of</strong> early<br />
parenthood after a couple <strong>of</strong> years. This change<br />
has a fascinating impact on the social lives <strong>of</strong> the<br />
would—be parents. Not only do they now carry the<br />
responsibility for raising a child, they also develop<br />
a whole new circle <strong>of</strong> friends with whom they can<br />
share their new and all encompassing interest.<br />
Topics which were not considered interesting a<br />
few months before become the main issue <strong>of</strong><br />
conversation.<br />
And within this newfound palette <strong>of</strong><br />
conversation, the child’s first means <strong>of</strong><br />
transportation becomes one <strong>of</strong> the most fiercely<br />
debated topics. The main advantage <strong>of</strong> carriages<br />
over other aspects <strong>of</strong> baby life such as baby<br />
clothing, is that a carriage has wheels. This feature<br />
makes it OK for fathers to discuss this topic with<br />
an attention for detail that rivals the purchase <strong>of</strong><br />
a new computer or a new car.<br />
Carriages are compared, debated, criticised<br />
and defended. Practical aspects such as weight<br />
and durability becomes a point <strong>of</strong> concern where<br />
previously average cornering speeds, low centre<br />
<strong>of</strong> gravity and tyre pressures would have been the<br />
first point <strong>of</strong> attention. It has been said that parents<br />
are raised by their children and the purchase <strong>of</strong><br />
a carriage indeed seems to indicate a mature<br />
tendency to place more emphasis on practicality<br />
and function than before.<br />
However, fashion and trends have not entirely<br />
been eradicated from the minds <strong>of</strong> caring parents.<br />
In the past ten years, carriages have become,<br />
like almost any other product, a vital ‘life style’<br />
accessory which demonstrates how active and hip<br />
the parents actually are. It all started with the<br />
three wheel carriages from Venice beach which<br />
allowed babies and toddlers to participate in their<br />
parents active lifestyles <strong>of</strong> jogging and rollerblading<br />
along beaches and forest trails. The number<br />
<strong>of</strong> life style carriages mushroomed and the days <strong>of</strong><br />
the old-fashioned carriage seemed truly gone.<br />
One <strong>of</strong> the more recent additions to this long<br />
line <strong>of</strong> parent tailored carriages is from <strong>Dutch</strong> origin<br />
and has the non-<strong>Dutch</strong> name ‘Bugaboo’. What have<br />
Catherina Zeta Jones, Zinedine Zidane, Paul de<br />
Leeuw, Princess Maxima, Julianne Moore, Marco<br />
Borsato, Frans Bauer, and Miranda (Sex in the City)<br />
in common? They all carry their <strong>of</strong>fspring in the<br />
Bugaboo.<br />
The Bugaboo Frog was designed by Max<br />
Barenbrug, an industrial designer, and further<br />
developed in collaboration with a medical doctor<br />
Eduard Zanen in an attempt to create the ideal<br />
baby stroller.<br />
In 1994, at the Design Academy in Eindhoven,<br />
Max Barenbrug developed a multi-functional<br />
stroller for his graduation project. His stroller was<br />
designed to function with a bike and convert to a<br />
back-pack. The product awarded Barenbrug to<br />
graduate Cum Laude in two graduation directions<br />
‘Mobility and Leisure’ – with a stroller and a bike.<br />
In particular, the design for his stroller was awarded<br />
22<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
▲<br />
Break ascent not a luxury when traversing<br />
rough Singapore jungle<br />
▲<br />
High speed ability <strong>of</strong> Quinny impresses<br />
the ‘Best Design <strong>of</strong> the Year’. Eduard Zanen, Max’s<br />
brother-in-law, runs a medical advice and CPR/<br />
reanimation company and has been involved with<br />
the development from the beginning.<br />
The first designs <strong>of</strong> the Bugaboo turned out to<br />
be not that sturdy, the push bar was not strong<br />
enough and would break every now and then. There<br />
were other weak points as well. According to Max<br />
Barenbrug, the original manufacturer mixed old<br />
plastics with new plastics in order to reduce costs.<br />
In order to be able to maintain strict quality<br />
control, Bugaboo set up their own manufacturing<br />
plant in Taiwan.<br />
The real success for the Bugaboo came when<br />
Barenbrug and Zanen arranged for a product<br />
placement with the comedy series ‘Sex in the City’.<br />
One <strong>of</strong> the series’ characters walks around New<br />
York City transporting her baby (Brady) in a brand<br />
new Bugaboo. After that, the Bugaboo became a<br />
phenomenon in the US with press attention from<br />
unlikely sources. The article ‘Stroller Status Wars<br />
Heat Up With Fancy Foreign Models’ appeared in<br />
the Wall Street Journal on November 1, 2002.<br />
Buyers <strong>of</strong> the exotic foreign models claim that these<br />
are better made than their American counterparts,<br />
with more-solid materials and well-thought-out<br />
design. “They’re not plasticky or rickety”. And the<br />
US would not be the US if it did not have parents<br />
worrying about whether their stroller would fit<br />
in nicely with the interior<br />
design <strong>of</strong> their home.<br />
People Magazine (US<br />
equivalent <strong>of</strong> Privé)<br />
called the Bugaboo the<br />
‘hottest stroller’ in its<br />
November 17 issue.<br />
In Singapore context,<br />
and then as far as<br />
the <strong>Dutch</strong> community<br />
is concerned the only<br />
real competition to the<br />
Bugaboo (some 9 red<br />
Bugaboos were counted<br />
Bugaboo comes with caravan option<br />
at the last ZOAT tournament) seems to come from<br />
the Quinny. The Quinny is a three wheel design<br />
and that sums up its biggest forte. The three wheel<br />
design looks good and the Quinny has an ingenious<br />
folding mechanism which allows for easy storage.<br />
However, due to the three wheel set-up, the Quinny<br />
is not particular fond <strong>of</strong> cornering. The designers<br />
<strong>of</strong> the Quinny, (the Quinny company recently<br />
became <strong>Dutch</strong> owned) have attempted to solve this<br />
problem by introducing a front wheel which carves<br />
its way into the desired direction. However, even<br />
with this modification the Quinny still has a turning<br />
circle with the size <strong>of</strong> Denmark. In favour <strong>of</strong> the<br />
Quinny, through the success <strong>of</strong> the Bugaboo it was<br />
dealt a card which may become its biggest trump<br />
yet; a Quinny is not a Bugaboo. With the Bugaboo<br />
becoming more and more popular, hip parents are<br />
turning away from the Bugaboo and looking into<br />
the sleek design <strong>of</strong> Quinny.<br />
So, where does that leave the fashionable yet<br />
responsible parent?. Both strollers performed well<br />
in our test, but the Bugaboo is more agile, lighter,<br />
and does not require wide open spaces to make a<br />
U turn. And as far as fashion is concerned, trends<br />
come and go. As a reaction to the spiffy life style<br />
strollers, some über-trendy parents have been<br />
spotted taking the little ones in a old-fashioned<br />
stroller as used by your parents. For the time<br />
being, the Bugaboo seems the stroller <strong>of</strong> choice,<br />
but tell your mother not<br />
to throw out your first<br />
means <strong>of</strong> transportation<br />
as yet.<br />
Stretch Strollers<br />
A number <strong>of</strong> manufacturers<br />
<strong>of</strong>fers a stretched<br />
version <strong>of</strong> their strollers.<br />
Quinny <strong>of</strong>fers the twoseater<br />
Fashion Tandem.<br />
Bugaboo does not <strong>of</strong>fer<br />
a limousine model.<br />
23<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>
EMBASSY INFO<br />
Elections European<br />
Parliament / National<br />
consulting referendum<br />
The elections for the European Parliament will take place in the Netherlands on 10 June<br />
<strong>2004</strong>. <strong>Dutch</strong> citizens living abroad can participate if they are 18 years old on the day <strong>of</strong><br />
election and not registered in any municipality in the Netherlands (bevolkingsadministratie).<br />
How to vote?<br />
In order to be able to vote you have to register before 28 April <strong>2004</strong>. You have to send in<br />
an election-registration form to be registered at the municipality <strong>of</strong> The Hague.<br />
• <strong>Dutch</strong> citizens in Singapore who have participated in the last European Parliament<br />
Elections, should receive the election-registration forms at the last address known to<br />
the municipality <strong>of</strong> The Hague;<br />
• From 10 December 2003, you will be able to download the election-registration form<br />
from the following websites: www.minbuza.nl/verkiezingen and www.ukomttochook.nl.<br />
• In <strong>January</strong> <strong>2004</strong>, the election-registration forms will be mailed to all <strong>Dutch</strong> citizens who<br />
have registered themselves at the Embassy at the last known address.<br />
If you are not registered at the Embassy, or have moved without notifying the Embassy,<br />
you may collect the forms at the Embassy during opening hours or send in a request by fax:<br />
6737 1940 or e-mail: sin@minbuza.nl . Please clearly state your full mailing address.<br />
The forms with the relevant documents (copy <strong>of</strong> your <strong>Dutch</strong> passport) have to be send to:<br />
Royal Netherlands Embassy (o.v.v. Verkiezingen), Tanglin P.O. Box 447, Singapore 912415<br />
For more information:<br />
✒ www.minbuza.nl/verkiezingen<br />
✒ www.nethemb.org.sg<br />
✒ www.ukomttochook.nl<br />
National Consulting referendum:<br />
On 10 June <strong>2004</strong> or at a later date, a national consulting referendum will be held with<br />
regards to the European Constitution. If your request for registering as a voter is approved,<br />
you will be registered for the referendum as well.<br />
ASSOCIATION INFO<br />
New Members<br />
Mr. Jouke Tuinh<strong>of</strong><br />
Schering-Plough<br />
Mr. Eduard Holtz<br />
Mees Pierson<br />
Leaving Members<br />
Ms. Lieke Rijken<br />
Leaff<br />
Ms. Sabrina Rubin<br />
Portelet Asia<br />
Mr. Marc Jan Giesselink<br />
Sigma Coatings<br />
Mr. Rob Nijst<br />
Vopak<br />
This Months event<br />
The Board <strong>of</strong> the ADB invites you and your partner to the<br />
ADB New Year’s Borrel<br />
<strong>January</strong> <strong>2004</strong><br />
Monday 5 <strong>January</strong> <strong>2004</strong><br />
1900 hour<br />
Venue: Residence Chairman ADB Tom de Jong<br />
69 King’s Close, Singapore.<br />
Directions: Driving on Holland Road, turn into Farrer Road. At the<br />
first traffic light turn left into Empress Road, at the end turn left again,<br />
now take the second street on your right which is King’s Close.<br />
Note: Parking is very limited. It is advisable to take a taxi.<br />
Mr. Kees Vissers<br />
Vopak<br />
24<br />
Vol.14 • No. 1 • <strong>January</strong> <strong>2004</strong>