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While the world is wallowing in problems currently being experienced because of the sub-prime crisis and its consequential or contagion effects on borrowing, property, share market prices etc., business activity in general in the Asia Pacific region continues to thrive.

And, while the sub-prime effect is filtering through particularly in the availability of capital for transactions, the region has still been able to shrug off the effect of the crisis and continue to power its economic engine.

We have the economies of China and India with GDP rates in excess of 10% and 8% whilst most of the other countries within the region are experiencing GDP rates in excess of 5%. It is becoming increasingly apparent that the Asia Pacific region will drive growth in the world economy in the 21st century. There are a number of factors that will contribute to this occurring including:

	The demographics of the region, which typically include high populations -- often with high growth rates in comparison to more developed countries.
	The capacity to develop economies off a low base and take advantage of the opportunities this presents. This manifests itself in comparatively low labour rates and high levels of flexibility of labour, i.e. the ability of China to absorb millions of agricultural workers into its urban labour environment annually.
	The comparative stability of the political systems within most countries within the region.
	The embracing of the concept of economic growth by both the political systems and the general population of most countries within the region.
	The high levels of capital availability to fund investment and development within the region as witnessed by the huge amount of capital reserves currently held.
	Globalisation of world trade patterns and operations as multinationals increasingly base part of their operations within the region. The openness of the world economy allows for exchange of intellectual property and ideas from more developed countries to the Asia/Pacific region.
	The vast consumer potential in this region. As the region’s middle class continues to develop the increase in consumer demand will be enormous.

The Asia Pacific region is flexing its muscles as is evident in major overseas investments undertaken from within India and China of large multinational companies. It is no more evident than in China’s being the host city for the upcoming Olympics. China will be presenting the Olympics as a gala event embracing their success, advances and achievements of the last 20 years.

We in this region will also be meeting the 27th April 2008 in Macau for our Asia Pacific conference with some excellent technical papers, a renewed vigour for driving cooperation within the region and improving the transparency of skills in this region.  As I am stepping down as regional chair at this meeting, I'm sure my successor will inform you of the outcomes which promise to be very valuable for us all.  I have enjoyed my time as chair of the region. I will continue as a regional Board member and look forward to even more development in the coming months.

David Kenney
Chairman, Asia Pacific Region
Hall Chadwick
Sydney, Australia
dkenney@hallchadwick.com.au

China
GNS China
GNS CHINA has written an article on “Changes to China’s Employment Contract Law”.  China passed a new Employment Contract Law on June 29, 2007, which became effective on January 1, 2008.  This article can be found on the AGN website – Route:  Members / Regions / Asia Pacific / Learn More About Us / More Information / China / Changes to China’s Employment Contract Law.

New Zealand
MARKHAMS AUCKLAND
Effective 1 April 2008, Markhams Auckland is delighted to announce the admission of Tarsha Hazleman, as a fifth partner in the practice.

Tarsha has over 10 years of public practice experience gained at Markhams and other Auckland firms. She specialises in the provision of taxation and advisory services to her clients. Tarsha also has considerable assurance expertise, including undertaking due diligence work for merger and acquisition activities.

Markhams Auckland is pleased to be able to promote from within the firm, reflecting Tarsha’s ability and enthusiasm, as well as our growing tax consulting practice.