National Champion

June 2008 National Champion Johnson Choi wins one of the SBAs top awards by supporting ethnic businesses National Champion - Johnson Choi wins one of the SBAs top awards by supporting ethnic businesses Johnson Choi is helping bridge the gap created by cultural and linguistic differences. As told to Kyle Galdeira As president of the Hong Kong-China-Hawaii Chamber of Commerce, (HKCHCC) Choi serves as a vital link between Hong Kong and Hawaii promoting economic opportunity and a healthy business climate. In April, Choi received the Small Business Association’s National Small Business Champion of the Year award for his work with minority businesses. Choi shared his thoughts about Hawaii’s ethnic small businesses: On challenges faced by new immigrant businesses: Some challenges include a lack of English-language skills as well as an inability to understand the penalty for not complying with rules and regulations. Also, there is a risk of being taken advantage of by other businesses, who know well that most ethnic business owners are afraid to deal with the authority and laws, which they might not fully understand. On the most common opportunities for ethnic small businesses: Most ethnic businesses focus on food or art and crafts. As a result, you have seen some of the fusion, merging the cooking and cultures of the East and West. On what these businesses means for Hawaii: They provide cultural diversity for the state, and the diversity could provide a cultural experience for local Hawaii residents and visitors alike. Also, it provides the opportunity to gain first-hand experience for Hawaii companies by interacting with ethnic owners, i.e. from China, and learn how business is conducted there before committing serious capital, time and resources overseas. On his long-term goals: Hawaii has become a state so dependent on federal money. Travel-related businesses have produced relatively low-paying jobs and the brain drain from Hawaii has continued since 1990. We are hoping to make Hawaii a friendlier place to do business. On the most memorable challenge overseas: For more than 20 years, the way trade promotion was conducted from Hawaii was wine, dine and hula girls, even when the trade mission was not focused on the tourist trade. The result is most businesses in Asia look at many of us, who are serious about trade and business, as coming to Asia just to have a good time. Click on the picture for full view Direct link to online Hawaii Business Magazine Hawaii Business Magazine online PDF format We are informed by Mr. Steven C Preston, Administrator of the United States Small business Administration (SBA) Washington DC that Johnson Choi, President of the Hong Kong.China.Hawaii Chamber of Commerce (HKCHcc) has won the Top SBA Award in our category, the "2008 Minority Small Business Champion of the Year" as defined by the SBA is "To Honor Individuals Who Have Fulfilled a Commitment to Support and Assist Minority Entrepreneurs & Small Business Owners" (Note: HKCHcc have won the "Hawaii award" as well as the "Regional Award" – topping the other Minority Small Business Champs in 50 States and Guam to qualify to compete and winning the "national" award, the top honor in our category). The award with be presented during the SBA National Business Week at the Mandarin Oriental Washington DC April 21 – 23. Winners will be meeting with President George Bush at the White House on April 23rd, 3 - 5pm http://www.nationalsmallbusinessweek.com/schedule/ *** Webcasting - SBA will be webcasting all of the award events*** and the forums!! click on this link to log onto the website the day and time of the event and you will see a link to the webcast. Among the featured speakers confirmed are Secretary Mike Leavitt, U.S. Department of Health and Human Services; Ambassador Susan C. Schwab, United States Trade Representative; Newt Gingrich, former House Speaker; David Latimore of the Initiative for a Competitive Inner City; John Bryant of Operation HOPE, and other prominent business leaders, CEOs and politicos. Small Business Week 2008 cosponsors include: Sam’s Club, Administaff, Raytheon, IBM, Chevron, Ewing Marion Kauffman Foundation, Cisco, Lockheed Martin, Salesforce.com, Lowe’s, Banco Popular, Minority Business Development Agency, General Services Administration, MyBizHomepage, Dun & Bradstreet, National Association of Development Companies, Direct Selling Education Foundation, Association of Small Business Development Centers, National Small Business Association, Federal Allies Institute, Initiative for a Competitive Inner City, Consumer Energy Alliance, National Federation of Independent Business, and SCORE Honolulu man honored in D.C. Honolulu businessman Johnson Choi was honored by the Small Business Administration as 2008 Minority Champion during a ceremony today in the nation's capital. Choi was one of 10 small-business owners and leaders of small-business support organizations nationwide recognized for their support of entrepreneurs. The SBA Champion Awards were presented as part of the annual observance of National Small Business Week. Choi, president of the Hong Kong-China-Hawai'i Chamber of Commerce, works with many Asian immigrants to start businesses, particularly in the area of exporting. He won at the state and regional level before claiming the national title. "The SBA is proud to honor these men and women as true champions of small business, whose tireless efforts have provided tangible and significant support to small businesses and to their communities," said SBA Administrator Steve Preston. Video 1/3 Video 2/3 Video 3/3 CNN Shadow TV click on the small picture for "full" view

Hong Kong – Your Best Partner and Risk Manager in China

Honolulu-Hawaii Friday June 6th: Hong Kong.China.Hawaii Chamber of Commerce (HKCHcc) and InvestHK Business Luncheon featuring Simon Galpin, Associate Director-General, Invest Hong Kong, HKSAR Government - “Hong Kong – Your Best Partner and Risk Manager in China” - Opening Remarks by Johnson Choi, President of the HKCHcc

Good afternoon House Speaker Calvin Say; Governor George Ariyoshi and Mrs. Jean Ariyoshi, Mark Anderson, Deputy Director of Hawaii DBEDT; Our Co-sponsors Jill Takasaki Canfield, Executive Director of Pacific Asian and Affairs Council and Vance Roley Dean and David Yang, Associate Dean of Shidler College of Business at UH Manoa, Ladies and Gentlemen, Aloha.

Thank you for coming to our business luncheon allowing us to share with you why “Hong Kong is Your Best Partner and Risk Manager in China” to be presented by Mr. Simon Galpin, Associate Director-General of InvestHK, HKSAR Government after lunch.

We have been working with the HKSAR Government through HKETO SF, InvestHK and Others since 1996 helping a long list of Hawaiian Companies and in many cases partnering with Companies in California, New York and London successfully launching their products, services, media, technology and investment in Hong Kong and/or through Hong Kong into China and throughout Southeast Asia.

Hawaii and Hong Kong have certain things in common:

1) Both have practically no natural resources, almost everything have to be shipped in.
2) Hong Kong is smaller than the Island of Kauai, but 5Xs of the population of the State of Hawaii; Like Hawaii, Hong Kong has transformed from Manufacturing/Agriculture into Service & Technology based economy. HK has emerged to become a key financial center in Asia.
3) Like Hawaii, Hong Kong receive healthy income from tourists, more than 26 million people visited Hong Kong in 2007 and growing.
4) It is a shopping haven as almost everything entered HK duty free like the Hawaiian Host Chocolates, the Kona Coffee, the high end Koa furniture, the Big Island Papaya and yes Wine made in Hawaii and around the world.
5) You can sell your products in China without entering China. There are more than 15 million tourists from China visiting Hong Kong each year. It is an ideal place to test your product appeal to the China market.

Couple of mark differences between Hong Kong and Hawaii is Hong Kong tax is probably 1/10 of those in Hawaii when you add Federal, State and General Excise Tax combined; and Hong Kong is very business friendly enjoyed by more than 100,000 Americans currently working and living in Hong Kong. The 133 miles 150 stations Mass Transit System and State of the Art Airport in Hong Kong is probably the best in Asia cost more than US$50 billions and growing all built without any tax increase.

One very important role Hong Kong.China.Hawaii Chamber of Commerce has been playing as an organization is to promote understanding between the People of United States and our Asian counter with special focus in Hong Kong and China. To develop a business relationship, companies should have some basic understanding of the Host culture, adequate preparation, advance information on regulatory requirements and financial commitments. We are hoping to be here to bridge the gap and provide you with useful hand on information helping you to move forward to minimize the risk of business and political landmines.

Our offices in Honolulu, San Francisco, Hong Kong and Shanghai are able to assist our members by providing them with local intelligence and logistic supports through partnership such as InvestHK, United States Commercial Services, American Chamber of Commerce in Hong Kong and Shanghai.

An institution, an organization, a Chamber of Commerce cannot function without good and knowledgeable management team. They are the people that run the day to day operation. I am fortunate and bless with the support from many of you in the room as well as my Officers and Directors that make my daily challenging work very rewarding.

We will break for lunch now. After lunch, I will introduce our speaker. Enjoy it, thank you.

I believe that Children are our Future

Honolulu Hawaii USA: May 16 2008 Keynote Speech to 300 guests – Titled “I believe that Children are our Future” Presented by Johnson Choi at the Dole Cannery HACTE “Hawaii’s Future Fortune 500 Luncheon”

Mr. Soma, President of the Hawaii Association for Career and Technical Education, Fellow UH TIM Alumni, honor guests, friends and students.

Leaders from the East and the West frequently saying “Children are our future” and Singer Whitney Houston has a song start out saying "I believe that children are our future". When I was at the white house meeting with President George Bush a little over two (2) weeks ago, our President also talk about the future of our Children and Small Business who is providing more than 75% of the new jobs in the United States.

We must help our Children to understand and believe that they are the stake holders and future for Hawaii. We as businessman, businesswoman, educator, politician, union leader and voters must take a practical approach to provide the necessary tools for our Children to excel to bring positive impact to the State of Hawaii. A well educated work force is crucial on the ability of a City, a State and a Country to compete and survive in the increasing competitive world economy.

What is Hawaii’s future in the context of the boundaries of our State surrounded by water?

I have witnessed the changes since I arrived in Hawaii in 1974, the Big-5s of Hawaii, the Alexander and Baldwin, the Amfac, the Castle and Cooke, the C Brewer and the Theo Davis. Today, Alexander and Baldwin is the only Hawaii Company running the successful Matson Container ship with the protection of Jones Act and developing valuable Hawaii Real Estates.

When I attended Kauai Community College and Leeward Community College, the tuition per semester was only $25. When I transferred to University of Hawaii School of Travel Industry Management, the tuition per semester was only $145. The tuition fee charged by Chaminade University of Honolulu was $60 per credit hour for my MBA degree in 1977.

When I attended the UH School of Travel Industry Management in the 70s lead by Dean Emeritus Chuck Gee, in order to prepare us for future Hotel and Restaurant Management position, we are required to attend food and beverage courses, Food Lab, 800 hours of practical work experience as part of the degree requirement. The School had given us the tools and the means for UH TIM graduates to compete and win good paying jobs against Schools such as Cornell and University of Denver. TIM Night which was the hallmark of UH TIM until 2005 had connected our alumni in Hawaii, Asia, North America and Europe helped brought in 100s of thousands to the School. Two years after it was discontinued, our survey still show 89% of our alumni support TIM Night with the majority of the of the faculty and staff felt the same way. The pride of the UH TIM School is the Sunset Library, the computer lab and the Gee Technology Center that make us shine funded by 100s of thousands of dollars donated by 100s of UH TIM Alumni and donors around the world wanting to leave a permanent mark on UH Campus. Almost 1/3 of the donation has strong ties or came from alumni connected to major financial centers in Asia such as Hong Kong, China, Taiwan and Japan.

I was the Vice President of a software company in Hawaii in the late 1990s. During a visit to a software company located at the Silicon Valley who wrote the computer code for the Intel Chips. The Company has 2,300 employees. The CEO and Founder of the Company have told the investment bankers in the room that his Company asset is the people. They go home every night. If his people do not return, his Company will be gone tomorrow. Buildings and Hardwares could be replaced easily, but not the people who work and loyal to him. Therefore for a University, it is not the Dean, but the Professor, Staff and alumni that make a School shine; for a State, it is the people and many of you in the room, our Children who help chart the destiny of the State of Hawaii.

Today, Hawaii depend heavily on Federal money, they are the billions of military funded projects, millions of military related research projects going to the University and private sectors. Therefore if you are contractors, developers and scientists attached to this federal money, you will continue to live a good life, earning high income.

Despite the talk of 100s of thousand of tourist from Countries like China to visit Hawaii in the coming years, today, Hawaii is ill prepare to receive foreign tour groups, except Japan. Lack of new hotel developments limit our ability to offer management position to graduates from our Universities. A fresh graduate to begin his/her career is Asia could make management 3x faster putting in the same time and efforts. The pay could be 200% higher when you take into account of cost of living and favorable tax breaks offered by the Federal Government.

You could also consider working for the Government. The challenge is your ability to find jobs in the private sectors as most private sectors employers do not like to hire former government employees.

What is Hawaii’s future in the context of our country, the United States of America?

It will depend on how long we can keep the Federal money coming.

As an Island State, we have limited resources. Almost everything we use in our daily life must be shipped in or flew in.

During the past 15 years, Hawaii has experience serious brain drain. Many of our best educated children left Hawaii for greener pasture in the mainland USA. Some have also moved to Asia. This is actually not unique to Hawaii. Let us use China as an example, workers from the poor country side of interior China moved to factories in Southern China for 3 – 5 times better pay. Another example is the Philippines. Many gave up their professions as Nurses and even Doctors, moved to Hong Kong to become maids for 3 – 6 times better pay.

Unless our graduates are getting better pay, we do not see the out migration to stop anytime soon.

How can we pay our graduates more? When Hawaii rank as the top 5 most expensive place to do business in the United States, it is rather difficult to attract new business to come to Hawaii.

Couple of days ago, John Rutledge, an economist for President Ronald Reagan and George Bush interviewed by the Honolulu Advertiser Newspaper has a house on Maui wondered why Billions of dollars flying around the world not landed in Hawaii. We have a growing list of wealthy individuals from around the world; many former Hawaii residents now own properties in Hawaii. For the past 10 years, I must have run into no less than 200 such wealthy individual. Each time, I have made an effort to ask them one question when they made similar comments such as John Rutledge. Their general comments are as follow:

1) My business in not in Hawaii, I come here to relax to enjoy the Sun, Sea and Surf,
2) Yes, I was born and raised in Hawaii, but now I am in my late 50s or early 60s, I think I should leave it to my Children to get involved on the future of Hawaii. My follow up question soon found out, for many of them, most of their children do not live in Hawaii. Many felt the Hawaii business climate has not improved since they left 10, 20 or 30 years ago.

Our challenge is how to attract those that come here for the Sun, Sea and Surf to stay longer to smell the roses and share their expertise with us.

For those successful returning former Hawaii residents, what can we do to encourage them to teach and share with us their formula of successes helping us to connect with the mainland USA economy beyond the Federal funding?

What is the Hawaii’s future in the context of the World economy?

We had our opportunity in the 70s to have an open sky policy for Hawaii when most airplanes must refuel in Hawaii. We had also an opportunity to ask for an exemption to the Jones Act in the 70s, allowing better and competing non-USA shipping companies to enter the Hawaii market. The challenges is for the policy makers in Hawaii to understand and to convey the message to Washington DC to help them understand that we are the only state that everything must be shipped in/out of Hawaii by Air and Ship only. Hawaii has no natural resources. We need to import almost everything from outside of Hawaii and cannot be treated same as the other 49 States.

Hawaii has an excellent reputation in tourism and our natural beauty, rank top 5 worldwide. In terms of Hawaii as a business destination, we are nowhere to be seen. Many corporations in North America and Asia do not want to hold conferences in Hawaii as shareholders have difficult times believing that serious meetings will be conducted in Hawaii. It is not unusual when we conduct serious business in Asia; we are asked “Where is the hula girl”, took the focus away from serious business discussions. Our business partners in New York and San Francisco are able to zero in serious business discussion without distractions.

We still see quotes from top Hawaii government officials saying that companies should come to Hawaii since we are the gateway to the Pacific because we are in the middle of the Pacific. It is only true geographically, no longer in business sense as we lost our advantages more than 15 years ago.

I am still seeing promotional material advocating that Hawaii’s high percentage of Asian population such as the Japanese, the Filipino, the Korea, the Chinese, and the Vietnamese and so on qualify us for direct ties and understanding to the countries I just mentioned. Since majority of our Chamber members and clients are from Asia. We found out after the 2nd generation, most of the immigrant families have no idea where their relatives are from their home country.

If the majority of the People live in Hawaii want a better life for our Children and our Grand Children, private sectors businesses must take the lead. The government and the power of government which can be addictive must step back allowing the private sectors to take its place gradually. Government should monitor, regulate and oversee without direct involvement of the day to day business operation.

Let us use the Honolulu Mass Transit as an example, if the City will use the Tokyo or Hong Kong business models, we do not have to pay the ½ % general excise tax with millions of annual deficits by allowing the private sector to build the entire system at no cost to the City in exchange for development rights at the transit stations. Development on top of the transit stations could ensure ridership. By using the Government business model, it has increase the cost for all of us doing business in Honolulu. Future operational deficit may result in increase of our Real Property tax.

Given the opportunity working with the 4 major Universities in Hawaii (not to mentioned a number of ivory league college in Asia we work with frequently), we found each of them offer different ways to put a degree or program together. If you plan to get your college degree from one of the colleges in Hawaii, I will suggest you to talk to the alumni in the field of your interest to find out what they like or don’t like about the program they had attended. You should do one more thing, share with the alumni the courses being offer now as it could change, sometimes substantially from time to time. For example, if you want to become a hotel manager and one day manage one of the 500 new hotels being built in Asia each year. A school that only offer tourism or a course or two in transportation may not be the right school you want to go to as it will ill prepare you in the field of your interest.

Beside Hong Kong.China.Hawaii Chamber of Commerce, there are two (2) organizations you may want to consider joining. They are the Tax Foundation Hawaii and Small Business Hawaii. Tax Foundation Hawaii provide timely advise for many challenging issues we are facing today as a State and Small Business Hawaii like its name said represent the Small Businesses in Hawaii and many issues they are facing daily.

I will also encourage our student to get involved in non-profit organization and support your school. The School is only as good as its alumni. Many of the alumni with the best idea may not live in Hawaii. They have so much to offer, please do not treat them as second class citizen. I see people giving to non-profit expecting pay back, helping non-profit and your school with no expectation of pay back, avoid conflict of interest. You will find your life more enriched and rewarding.

In time of natural disaster, reach out to those alumni that live there. Let us use UH TIM School as an example, ¼ of our alumni now live and work in China, Hong Kong, Taiwan, Japan and Singapore. The good will you offer in time of need like the horrify earthquake in China last week, for every dollar you spent, you could get 100s or even 1,000s of times back to benefit your school and the State of Hawaii in the future. Think long term, do not let politics to get into your way, reach out with our Aloha spirit.

To our students, venture out to see the world, come back during the prime of your life and help Hawaii to become an even better place to live, to work and raising our children. Do not forget to give thanks to your Parents and teachers. Many have to work very hard and gave personal sacrifices to send you to high school and college.

I would like to share with you “The Paradoxical Commandments” written by Kent Keith, a White House Fellow in the 60s. I have felt very warm about it. It has shared many of my father’s life philosophy in our daily teaching and dealing with people.
1. People are illogical, unreasonable, and self-centered, Love them anyway.
2. If you do good, people will accuse you of selfish ulterior motives. Do good anyway.
3. If you are successful, you win false friends and true enemies. Succeed anyway.
4. The good you do today will be forgotten tomorrow. Do good anyway.
5. Honesty and frankness make you vulnerable. Be honest and frank anyway.
6. The biggest men and women with the biggest ideas can be shot down by the smallest men and women with the smallest minds. Think big anyway.
7. People favor underdogs but follow only top dogs. Fight for a few underdogs anyway.
8. What you spend years building may be destroyed overnight. Build anyway.
9. People really need help but may attack you if you do help them. Help people anyway.
10. Give the world the best you have and you will get kicked in the teeth. Give the world the best you have anyway.

Last, but not least, I would like to thank my Wife, Carmen, allowing me to spend no less than 20 hours per week on non-profit organizations such as the Hong Kong.China.Hawaii Chamber of Commerce, T.I.M. International Inc – the alumni association of the UH School of Travel Industry Management and others. Without her support and continuous encouragement, I will probably not able to do what I am doing.

Thank you.

Johnson Choi, MBA, RFC.
2008 SBA Minority Small Business Champion of the Year - National Winner
http://www.hkchcc.org/sba.htm
President
Hong Kong.China.Hawaii Chamber of Commerce
"Hawaii-China Guan Xi, We Get Things Done™"
Offices in Honolulu, San Francisco, Hong Kong and China
http://www.hkchcc.org
Vice Chair - Hawaii Pacific Export Council (HPEC)

Lawmaker & Big Developers are Milking the Taxpayers

Hawaii is facing the largest tax increase in the State's history. Both the State and City & County of Honolulu have substantially increase tax and user fees in 2005. The large tax increase benefit less than 10% of Honolulu taxpayer, but provide 100s of millions of potential profit to the large developers and the politically connected insiders. Elected Official pledged not to raise tax did not keep the promise!