Preface

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During late 2007 we saw the emergence of the global crisis, which in recent times swept the all sectors of the financial markets across the United States , with a flow on effect to global markets.

Initiated by what is now referred to as the “sub prime mortgage crisis”, this flow on effect saw a rapidly developing; roll on effect, that impacted on all financial markets and institutions globally. Global companies such as Lehman, Babcock & Brown to name just two, have ceased to exist – the two largest mortgage insurers in the United States, Fannie Mae and Freddy Mac, along with AIG, and recently the Citigroup, have required massive injections by the US Government to stabilize their domestic market, and at the time of writing this article, we have yet to learn if the action taken will resolve the problems or only delay them further.

In 2006, I mentioned, “Hong Kong's economy has rebounded from the dark days of only three years ago, and the city remains a major gateway to and out of the mainland China . During this continuing period of sustained growth, the credit and collection professions play an increasingly important role, as it is the continued and upward extension of credit that enables the economic growth to be sustained.”

If sound credit management practices had been utilized, the sub prime crisis would not have occurred, and it is our credit management practitioner members, who have the skills and professionalism to prevent future such events from occurring, when their skills are recognized by boards and senior management and they are given the authority to implement sound prudent practices.

From January to September 2008, the total bankruptcy petitions decreased from 8,416 to 8,077 and bankruptcy orders decreased from 8,755 to 8,152 respectively, which indicate slight drops of 0.04% and 0.07% as compared to the same period in 2007.

From January to September 2008, the total winding-up petitions decreased from 448 to 455 and winding-up orders decreased from 343 to 341 respectively, which indicate slight drops of 0.015% and 0.005% as compared to the same period in 2007.

In the third quarter of 2008, the Gross Domestic Product (GDP) increased by 1.7% in real terms over a year earlier, moderating from the 4.2% growth in the second quarter of 2008. On a seasonally adjusted quarter-to-quarter comparison basis, GDP decreased by 0.5% in real terms in the third quarter of 2008.

Hong Kong 's economy shortened a seasonally adjusted rate 0.5 percent in the third quarter from the three months through June, after shrinking 1.4 percent in the previous period. The deteriorating business environment has forced companies to either close factories or fire workers to reduce costs. In mid November, the government cut its forecast for economic growth this year to between 3 percent and 3.5 percent from the previous estimate of between 4 percent and 5 percent. Expansion was 6.4 percent in 2007.

A deteriorating job market has also dampened consumer confidence, which fell in the second half of this year to the lowest level in four years, a leading survey company said.

Household consumption rose 0.2 percent in the third quarter from a year earlier, the slowest pace in five years.

Despite the above, the Association saw a satisfactory growth in our membership from our start in December 1999 with 4 to nowadays over 120 members coming from various industries comprising experienced and high caliber professionals. I t is again my honor to represent the Executive Council and Executive Committee to deliver this statement and report to members on the Association's achievements and future goals.

Review and Acheivements

Executive Council and Executive Committee

The 8-person Executive Committee, with the support of our 3 diligent staff, has been leading the Association and running the overall business and management, and day-to-day operation. The Association's plan and development are mainly conducted through 8 sub-committees, which include Annual Award; Certification; Education; IT, Membership; Public Relations; Survey and Who's Who supported with our Secretary and Treasurer in managing a sound financial and accounting system. All issues and decisions were the result of discussions, day-to-day communications and monthly focused meetings. The differences in perspective and opinion from committee members and staffs are fully reflected in every single meeting, which resulted in a productive consensus leading to the continuous growth of the Association.

Members and Recruitment

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As mentioned earlier, the Association started with a membership of 4 and now has over 120 members consisting various businesses and industries from banking and finance, electronics, telecommunication, law practice, accounting and auditing, shipping and transportation, manufacturing, trading, debt collection agencies, credit reporting agencies, credit consulting and the world's major credit insurance companies. This diversity continues to bring macro and balanced suggestions and views on different issues and plans. The membership growth is no doubt attributed to the hard work of our Membership Committee and the increasing exposure of our Association.

Website

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As usual, the hit rate of our website continues to grow with more than 7,500 hits a month from the members, general public and overseas. Again, I would like to encourage our members and non-members to visit our website where industry information, development and links are available.

Certification Program - Credit & Collection Professional

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The Credit & Collection Professional (CCP * ) certification program had certified 8 credit and collection professionals from various industries. The coming CCP examination will be held in March 2009.

Background and details of the CCP and related examination are listed on the Association's website www.hkccma.com . Alternatively, members can send email to ccp@hkccma.com to obtain the program details, application requirements and fees.

For non-members, please visit our site to download the membership application form, so as to take the opportunity to certify yourselves. This is the only certification program for credit and collection practitioners in Hong Kong and mainland China to certify yourselves, and b e recognized .

*HKCCMA is the exclusive certification body of the CCP program for Hong Kong .

ACA International, USA (the world's largest credit and collection industry association and has been estab lished for over 62 years.

Seminar & Exhibition

The Association held a seminar of "How to become a Practical Credit Manager" Part I on 8 September 2008 with the speaker Mr. Stephen Lo, Director of Credit Management-Asia Pacific of Bayer Material Sciences Ltd and our Executive Councilor. The seminar talks on “the first line of defense in the credit process - credit application” . It gave the attendees an insight of the importance of credit application and what the main criteria in credit application are. Seminar and career talk are educational events the Association has been focusing in the past few years. The Education Committee will continue organizing this type of event for the members in the future.

The Association will be participating the "World SME Expo" organized by Hong Kong Trade Development Council at Hong Kong Convention and Exhibition Centre from 10 December to 12 December 2008. The Association, represented by Mr. Bobby Rozario, our Vice Chairman, will give a talk on “How to avoid bad debts in overseas markets when suffering in the current global financial crisis?” The response is expected to be overwhelming in this economic climate. HKCCMA will continue to participate in the coming “World SME Expo” and other appropriate events and exhibitions to continue educating the general public on credit and collection.

Mix At Six

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The Association held three “Mix-At-Six” functions in April, July and October 2008, which provided a mix and mingle evening function for members and non-members. Mix-At-Six has been a relaxing business and intelligence exchange, and friendship build-up function since its commencement some years ago.

China Development & Outlook

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The Executive Committee of HKCCMA continues to work towards the participation in the development of a professional association in mainland China . Research and contacts with several organizations across the border in major cities like Shenzhen, Guangzhou , Shanghai and Beijing are maintained with a view to moving forward the industry professionalism into mainland China that will provide an impetus in the growth and recognition for credit management in this region. HKCCMA will continue assisting to elevate the awareness of senior management across Hong Kong and mainland China of the important role of our credit professional members.

Who's Who, Credit & Collection Practitioners in Hong Kong and Guangdong 2008-2009 (“Who's Who”)

The Association published its forth edition of "Who's Who” in October 2008. Complimentary copies are available for members, listing participants, advertisers, patrons, the general public (including but not limited to professional/consultancy firms, personnel/recruitment agencies, libraries, financial institutions, universities etc.), and overseas industry associations.

Recognition

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Premiere Global Services - HKCCMA Credit Practitioner of the Year 2007-2008

This yearly award is to recognize the winner's achievements in the credit and collection area in the aspects of industry contribution; education; training; management and operation and customer service in the year 2007 to 2008. The Award Presentation Ceremony will be held in the upcoming Annual General Meeting on 3 rd December 2008, Wednesday.

This year's Judge Panel consists of the following extremely high-caliber professionals and executives:

Mr. Ringo Ho (Managing Director – Future Electronics HK)
Mr. Simon Lee (Senior Instructor (Accounting /Finance) School of Hotel and Tourism Mgt – The Chinese University of Hong Kong )
Mr. William Lee (Lecturer - School of Accounting and Finance The Hong Kong Polytechnic University )
Ms. Rosina Leung (Managing Director – Head Treasury and Trade Solutions Global Transaction Services Citicorp International Ltd)
Mr. Lawrence Tsong (Managing Director, Asia Pacific – TransUnion)
Mr. Benedict Wong (Chairman – HKCCMA)
Mr. Patrick Rozario (Principal - Business Risk Services Grant Thornton)

Thanks go to the excellent Judge Panel as they performed a very difficult task in the vetting and selecting process. On behalf of the Association, I congratulate the Award Winner. I would also like to thank again the sponsor Premier Global Services, for their generosity in sponsoring this event the second time, which is a valuable support to the Annual Award program.

Acknowledgement

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Upon the completion of the AGM on 3rd December 2008, the Association will step into the ninth-year from its establishment . I take this opportunity to thank each of the executive councilors, executive committee members and various committee chairs and members for their leadership and contributions in the past year. With their support along with those from the existing and new members, they provide a strong backbone to the Association leading to our continuous growth.

As the only credit and collection industry association in Hong Kong and China , HKCCMA will continue to preserve a healthy credit environment through regulating, maintaining and developing the highest ethical standards, professionalism and practices within our industry and of our fellow practitioners and this mission will continues endlessly.

I would like to thank our staff Betty Huen, Andrew Kwok and Eddie Chan, as well as Executive Committee Members Bobby Rozario; Jeremy Hampshire; Stephen Lo; Ricky Chan, Francis Yeung, Xavier Farcot and Paul Tsang. My special thanks go to Mr. Jeremy Hampshire who will be retiring from the Executive Council. He has consecutively served the Association for the past three years.

On behalf of the Association, I thank our Honorary Patrons ACA International; Mr. Gary Rippentrop (CEO of ACA International) and Mr. Neil Wood (Past Chairman of the International Unit of ACA International and Chairman of GCS Group); our Honorary Legal Advisors Mr. Victor Chan (Partner of Tang, Wong, Cheung & Co); our Honorary China Legal Advisor Mr. Ricky J. F. Li (Partner of Alpha and Leader Law Firm), and our Honorary Auditor Mr. Sam Lau (Partner of S. L. Lee & Lau, Certified Public Accountant).

Way Forward

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The Executive Council

Stepping into the ninth year of establishment, the election result of the 2008-2009 Executive Council has been announced to all members in November, prior to the AGM. The new Executive Councilors will officially assume duty after the Annual General Meeting to be held on the 3 rd December 2008 at the Park Lane Hotel . The present Executive Councilors will retire along with the close of the AGM and the newly elected Executive Councilors for the 2008-2009 are:

• Ricky Chan Cheong Yip
• Xavier Farcot
• Stephen Lo Sai Kit
• Bobby R. Rozario
• Benedict Wong Chi Kwong
• Paul Tsang Cheuk Hung
• Francis Yeung Wing Hung

The Executive Committee

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The coming 2008-2009 Executive Committee will consist of the Association's Chairman and the Vice Chairman, and other Executive Councilors by appointment and acceptance basis. The 2008-2009 Executive Committee will assume its duty concurrent with the conclusion of the AGM on the 3 rd December 2008. Result of the 2008-2009 Executive Committee appointment will be announced to all members via email and website by the Chair of the Election Committee. The 2008-2009 Executive Committee, to run and manage the day-to-day business of the Association, will be reporting to the Executive Council, and ultimately to the members of the Association.

Plans and Goals

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The Association's 2008-2009 plans and goals, as discussed and approved by our 2007-2008 Executive Committee, are:

• Continue look for development and cooperation opportunity with appropriate organizations and bodies for the importation of CCP into mainland China

• Continue establishing domestic and global recognition and affiliation with industry associations and professional bodies

• Preparations on the publishing of the 2009-2010 "Who's Who, Credit & Collection Practitioners in Hong Kong and Guangdong ”. Feasibility study on a web-based version for “Who's Who”

• Organize and exchange seminars and training programs with industry associations within Hong Kong and in mainland China to develop the professionalism in the credit and collection industry

• Review the criteria and prepare open nomination for the Annual Award program “Credit Practitioner of the Year”. The new award nomination procedures and criteria will be available at the Association's website at a later stage.

• Review and organize functions and events for members and non-members, such as through sponsorship of mix and mingle functions lime “Mix-At-Six”

• Continue to provide free educational courses, seminars and workshops for members and non-members (including courses for CCP examination to assist members and non-members in achieving the certification)

HKCCMA is the only industry association in Hong Kong with members comprising experienced and diligent credit and collection practitioners, managers and executives from small to large-sized enterprises . The importance of sound credit management was emphasized by the global credit and financial crisis. Individuals, businesses and governments were awakened by the crisis and realize that if sound credit management practices had been utilized and properly implemented, the emergence and flow on effect of the crisis and crunch might have been avoided. It is our credit management practitioner members, who have the skills and professionalism to prevent future such events from occurring, when their skills are recognized by boards and senior management and they are given the authority to implement sound prudent practices.

Once again, it is my honor to have served the Association and before closing this statement, I would like to express again my sincere thanks to all our members for their support, participation and contribution.

On behalf of the Association, I wish you all the best in passing through the prevailing crisis and sluggish economy, and back to a booming business and advancing career.

Look forward to seeing you all on the 3 rd December 2008, the Association's 8 th Annual General Meeting!

Benedict C. K. WONG , FCCMA, MCE
Chairman Hong Kong , November 2008