The further opening up of mainland China after its accession to the World Trade Organisation means that Hong Kong will have to become even more competitive in the long-term, says Hong Kong Financial Secretary, The Hon Sir Donald Tsang. In his keynote address to The Economist Conferences’ Hong Kong Regional Business Group meeting yesterday, Sir Donald reported that while economic figures are encouraging, Hong Kong is still vulnerable to many external factors and will have to work hard to maintain its position as a regional technological and financial hub. Hong Kong needs to look to the quality of its business people and the cost of doing business in order to survive.
Developed in association with The Better Hong Kong Foundation, yesterday’s forum brought together more than 200 senior regional executives based in Hong Kong to address a range of key issues from the financial, human resources, China relations, technology and tourism areas. Speakers at yesterday’s event included Mr David Li, Chairman and CEO of the Bank of East Asia; Mr Tony Latter, Deputy Chief Executive of the Hong Kong Monetary Authority; Mr Liu Ming-Kang, Chairman of China Everbright; The Hon CY Leung, Convenor of EXCO; and Mr Mike Rowse, Commissioner for Tourism, Hong Kong Tourist Association.
“As Hong Kong recovers from its worst-ever recession, the competition from Singapore and Shanghai as business operating centres is increasing,” says the forum chairman, Mr David O’Rear, Regional Economist for The Economist Conferences. When discussing Hong Kong as a regional hub, it is impossible to ignore the impact of China’s growth. With the huge strides made in the Mainland in recent years, we must recognise that Hong Kong’s very survival as a regional centre depends on driving down the cost of doing business in Hong Kong.”
Human resources in Hong Kong was a key issue addressed at the Forum. Finding the right people to drive Hong Kong’s business growth – and retaining them – is critical,” continues Mr O’Rear. “Service-oriented economies, such as Hong Kong’s has now room for under-achieving students and has no low-skill job sector to absorb their labour. Thus, the ultimate health of the economy depends on us providing a high quality education that our business requires.”
The growth of the internet and interactive technology based businesses and their impact other key business sector was also an important topic during the forum. “Because venture capitalists look to the high risk, high reward opportunities, they are now focused on the internet and dot coms,” says David O’Rear. This is, to a degree, taking potential investors away from other industries in Hong Kong. As a response, the Hong Kong Government is moving into a very unusual role – that of a business investor. It remains to be seen if our bureaucrats are better venture capitalists than the professionals.”
Sponsors for yesterday’s forum were representative of the key issues discussed. “We were delighted to work with Arthur Andersen, China.com Corporation, HIH Insurance, Korn/Ferry International who share our interest in developing Hong Kong’s position in the region,” concludes Mr O’Rear.
About the Hong Kong Regional Business Group (HKRBG):
The HKRBG is an exclusive programme for regional directors based in Hong Kong. Part of an international network, it aims to provide thought provoking analysis and commentary on issues that affect strategic business planning and the bottom line of companies operating in Asia.
The Better Hong Kong Foundation is a privately funded, non-profit, non-political organization, formed by leading Hong Kong business people. The Foundation aims to reinforce Hong Kong’s role as the regional leading financial, shipping, trading and communications centre. It also serves to enhance greater international understanding between East and West. The Foundation is committed to facilitating communication between Hong Kong and China and the international community.