|
In Association with:
What the Masterclass is about?
Offset refers to the range of benefits that a seller provides to the buyer (usually a government entity) as inducement or by way of a contractual commitment in order to secure a sale.
The workshop will begin by addressing the many fundamental issues arising from and associated with the question what is Offset? This will be answered by way of contrasting the familiar considerations involved in an ordinary procurement with two actual Offset case studies, one in defence and the other, a civil procurement; government procurements being where Offset originates from. This comparison will show the justification, without overlooking one’s obligations under any plurilateral or bilateral agreement that one may have acceded to, for the need for Offset where markets cannot function properly and where one is forced to deviate from the orthodox theory which relies on the superior efficiencies of the free market.
 |
The second question, why Offset, will examine the reasons why countries turn to Offset and draw on the experiences of many countries that are ahead in its practice. Their experiences will be presented from both a qualitative and a quantitative perspective given the importance and inviolability of the value for money principle in government procurements.
The last part of the presentation will address the issues that are critical to the success of an Offset programme.
Success begins from the beginning namely, the programme’s definition followed by the design, development and deployment stages. A programme must seek out those proven best practices of other countries, and make changes if and where necessary always adapting the proven success factors to fit one’s needs, requirements and unique circumstances.
Success cannot follow simply from these alone. Even more critically, a programme must be properly executed and governed; again following proven best practices. Capabilities and capacities in Offset must also exist or be build if non-existent, by a country’s private sector in order to fully exploit Offset’s opportunities.
The use of actual examples and experiences will bring out the versatility of Offset, show what is achievable and why governments resort to it within the ambit of any plurilateral or bilateral agreements concluded; the complexities of and oppositions against Offset notwithstanding.
What is Offsets?
The raison d’être of Offset is to enable the buyer to derive value for its purchases. Values that should, if possible, extend to helping the buyer serve the larger national interests (e.g. job creation, attracting tech transfer or foreign direct investments) thereby enhancing at the same time and not compromising, the objectives of the procurement originating the Offset.
Offset however suffers severely from an often puzzling mix of good and bad information in the public domain many emanating from huge sometimes opposing and strong partisan biases. Not surprisingly Offset is also confusingly known by various other names like; industrial cooperation, industrial participation, industrial benefits, industrial capabilities, economic enhancement, and partnership for development, to name only a few.
Consider the following: The U.S. Department of Commerce found in their May 2001 report that over 120 countries require Offset of some sort in respect of their defence procurement. It is not just the number of countries but who these countries are and how successful have they been with Offset? What are the impacts these Offset practices have on others given the billions involved? And, do their require Offset for defence purchases only or for both defence as well as civil procurement? Fast forward to 2007, the U.S. Department of Commerce in its twelfth report found, from data collected, that Offset demands in respect of defence procurements are “persistent and increasing” and “may never be eliminated”.
Offset is however no silver bullet. Doing it incorrectly, may amount to protectionism or a breach of an applicable agreement concluded. Developing and executing it badly may result in failures or losses. Not applying it when the circumstances are appropriate and
(a) a government may have failed to legitimately assist one’s citizens and local corporations face the challenges of globalisation and the economic, social and political challenges that many countries face;
(b) a private sector may have failed to derive the benefits and opportunities Offset can offer (the case study to be discussed will show the relevance of Offset from the perspective of a private enterprise); and
(c) More importantly, both would have failed to each discharge their respective responsibilities (whether times are good or bad, although the need is more urgent during the latter) to extract the maximum value possible under each given circumstances. In the case of a government, such a failure would amount to a breach of an inviolable obligation when public funds or taxpayers’ monies are involved.
Such failings, if any, should raise questions when countries and companies – many of whom are technologically and industrially advanced - have and continue to demonstrate that enviable benefits are attainable if the right circumstances for the application of an Offset programme exists and when it is properly executed.
About the Masterclass Leader
DAVID HEW is a lawyer by profession with over 30 years of post qualification professional experience. He has worked in Canada, India, Indonesia, Kuwait, Malaysia, Myanmar, Pakistan, Philippine, Portugal, Russian Federation, Singapore, Sultanate of Oman, South Africa, Switzerland, Thailand, the United Arab Emirates, United Kingdom, United States of America and Vietnam.
David Hew has acted as expert to UNCTAD and consultant to UN ESCAP. He has advised in the design, development and execution of Offset programmes. He graduated from the University of Singapore in 1977 with LLB and he is an Advocate & Solicitor of the Supreme Court of Singapore admitted in 1978. Hew obtained his LLM from the National University of Singapore in 1989 and his MBA from the University of StrathClyde in 1991.
Mr. Hew has led several workshops on Countertrade, Offset and Structured Finance and has lectured worldwide in these disciplines. His articles on these subjects have been published in several publications including Euromoney’s Trade Finance and Jane's Defense. He had taught a course on the “Legal Aspects of International Business” for Singapore’s Professional Engineers and Certified Public Accountants in their continuing professional development program. He had taught a course on the “Legal Aspects of International Business” for Singapore’s Professional Engineers and Certified Public Accountants in their continuing professional development program.
Mr. Hew completed compulsory military service as a combat officer in an armoured battalion.
In 1996 “World News” (an independent publication in the United Kingdom) presented Mr. Hew with its Hall of Fame Countertrade and Offset Lifetime Achievement Award “in recognition of lifetime services to global Countertrade and Offset trade” for his creation of and work in respect of the world’s then first international organisation of its kind (see www.apca.net).
Venue
Grand Copthorne Waterfront Hotel
392 Havelock Road, Singapore, 169663
The Grand Copthorne Waterfront Hotel Singapore reflects the way most of us would like to live: amongst resort and exquisite lifestyle decor and a relaxing atmosphere along with great comfort. As one of Asia’s premier 5-star choices, the 574-room hotel is nestled next to the Singapore River and close to the Central Business District and Orchard Road. Lifestyle and business-enabling conveniences are offered to facilitate travellers’ needs with health and leisure facilities, executive accommodation, wireless connectivity and business support services. Just as your sense of comfort is appeased, your sense of taste in this luxury hotel in Singapore will reach new peaks with dishes from our award-winning restaurants.
The hotel is ideally situated on the corner of Havelock Road and Kim Seng Road. Along the banks of the historic Singapore River, as a Singapore hotel in the Central Business District (CBD) guests can enjoy convenient access to the financial hub of the county and easily access entertainment areas of Chinatown and famous Orchard Road.
Further Information about Singapore
Located at one of the most important crossroads of the world, Singapore’s strategic position has helped it grow into a major centre for trade, communications and tourism.
Singapore has a mild tropical climate throughout the year. Temperatures reach a maximum of 32-33°C during the day, falling to a pleasant 23-25°C during evening hours. Relative humidity often exceeds 90 percent at night and in early hours of the morning shortly before sunrise. On dry afternoons it is usually between 60 and 70 percent. Rainfall is most abundant during the Northeast Monsoon season from November to January. Much of the rain falls in sudden showers.
What To Wear
The climate encourages informal dressing and few places require a jacket and tie for gentlemen. Visitors should bring the lightest of summer wear. For men, open-necked shirts and lightweight tropical slacks are ideal. For formal functions, lounge suites for gentlemen are also recommended. Lightweight summer dresses, slacks and tops will be suitable for day wear for ladies. All hotels and shopping centres are air-conditioned, so a long sleeve shirt for men and a light wrap for ladies is advisable, especially in the evening.
Population And Languages
In Singapore, you will find Chinese, Indian, Malay and Eurasian Communities living harmoniously together, their long established cultures forming a unique backdrop to a clean and modern garden city. There are four official languages: English, Malay, Mandarin and Tamil. English is spoken everywhere and it is the common business language of all.
Transportation
Public transportation, including buses and the MRT (Mass Rapid Transit) system provides access for visitors to most areas of the island. You can buy a Ez-Link card, which can be used on the MRT and buses.
There are many taxis, which can be hired from the taxi stands, roadside or booking by telephone. A booking fee is usually charged when hired by telephone. There is also a surcharge for trips starting from the Changi Airport. You may wish to take the Airport Shuttle to almost all hotels within the city from Changi Airport. The operating hours and fares of the shuttle service can be obtained at the airport shuttle counters located at the arrival hall of Changi Aiport Terminal 1 and 2. Payment is made to the driver who will accept cash, major credit cards and charge cards.
Food & Shopping
Singapore is the culinary capital of Southeast Asia, and eating out in Singapore is an experience few will forget. You can eat out at open-air food stalls or dine in the plushest of restaurants at world-class hotels. In terms of sheer variety, Singapore probably has no rival. Singapore's immigrant population and visitors from all over the world have brought a staggering array of cuisine and cooking skills as well as having created unique blends of their own.
Singapore was founded on the principle of free trade, and even today, most goods are sold duty-free. An endless range of goods from all over the world is available at prices that are often lower than those in the country of manufacture. Air-conditioned shopping complexes, department stores, emporiums and shopping arcades allow visitors to shop in comfort. Most of these places stay open till 9.30pm daily.
Tourist Information
For more information, please visit the Singapore On-Line Guide: http://www.visitsingapore.com
|
Events Home Page
