The city is embracing a tech-driven future. It’s time for businesses in all sectors to let go of the past and do the same.
To say Hong Kong has been through a lot in recent years would be an understatement. Buffeted by the stagnant property market, slower than expected trade recovery and sanctions from the U.S., the city is adapting to a new reality, even as real GDP grows (3.3% year-on-year in the second quarter).
In terms of business, Hong Kong’s position at the centre of Asian finance is evolving as new regional hubs emerge. The city’s cultural identity and talent pool are also changing as more professionals from the Chinese mainland move in.
Are these dynamics something to regard with apprehension? I would argue that they signal an opportunity for Hong Kong to become something even more than the vibrant place it has always been to develop in areas of business that were previously sidelined and become a more significant player in global innovation.
To look back and try to hold on to what is familiar is to be human. But change is a valuable and inevitable part of life. To look forward is to feel the thrill of the undefined, of unexplored possibilities, and of new potential successes. More than that, it is necessary for survival.
Traditional growth industries reborn
Finance and property will remain economic pillars, but technology is becoming the unifying growth driver. Companies in these and other key sectors cannot afford to remain traditional in their operations. Thankfully, Hong Kong is increasingly embracing the chance to transform and grow through technology.
The city already ranks top in Asia and second in the world in terms of its emerging start-up scene. Ecosystems such as the Hong Kong Science and Technology Parks Corporation (HKSTP) bring Hong Kong closer to innovation in the Greater Bay Area and globally. A perfect example is HKSTP’s Global Booster Programme, where five Hong Kong startups secured over US$15 million in business contracts and investments in Silicon Valley within months. (Full disclosure: HKSTP is a client of The Hoffman Agency.)
Fintech and AI at the core
Technology offers a platform for Hong Kong to expand its role as a financial leader. The Hong Kong Monetary Authority (HKMA) is at the forefront of blockchain and tokenized asset developments with one of the world’s first central bank digital currency (CBDC) pilot schemes.
AI is also set to be a key part of Hong Kong’s financial future. In August, the HKMA rolled out what it calls a ‘generative artificial intelligence sandbox’, the goal being to create a safe space for banks to initiate and test the application of generative AI to their business.
Other moves designed to turn Hong Kong into a tech hub include investments in selected innovative companies through a dedicated fund, the Hong Kong Investment Corp (HKIC). The Centre for Artificial Intelligence and Robotics aims to enable breakthroughs, while HKAI Lab helps start-ups turn AI innovation into viable businesses. This is just some of the infrastructure in place to realise the vision of a new Hong Kong.
Green tech moves up the agenda
Support for start-ups, R&D and green technology is becoming part of Hong Kong’s makeup, in line with advancements in mainland China, which is a leading producer of electric vehicles and renewable power. The city is admittedly not famous for its eco credentials, but increased investment and infrastructural support for this area is seeing homegrown innovators offer their solutions to the world.
One example is Archireef. The company is a pioneer in marine restoration, using 3D-printed tiles to help restore coral reefs. Numerous other green technology companies are currently busy innovating, aided by the likes of HKSTP and Cyberport. Many have similar potential to move beyond Hong Kong’s borders.
Government funding signals commitment. In his October Policy Address, Hong Kong’s chief executive announced a HK$10 billion I&T industry-oriented fund; an I&T Accelerator Pilot Scheme with a reserve of HK$180 million; and plans to earmark HK$750 million to subsidize taxi and bus companies to purchase EVs.
Brand communications in high-tech Hong Kong
Reports warning of Hong Kong’s demise are missing this invigorating side of the picture. As Mark Mobius noted earlier this year, Hong Kong does need to think differently about its strengths and what it can offer the world — and is doing so. For enterprises both local and international, tech-centric or otherwise, this is a chance to be part of a consequential new chapter in the city’s progress.
For businesses to make the most of this changing environment, clearly communicating your own story and how your organization fit into this new chapter of Hong Kong is vital. The following three actions will make a big difference:
- Invest in your local operations. Communications talent development, meaningful localised communication strategy and genuine contribution to the development of Hong Kong are essential to build trust and affinity with local customers, partners and government stakeholders. Cookie-cutter solutions do not work, especially for brands that are new to the market.
- Diversify your strategy and selection. PR and corporate communication teams can no longer bet on earned media alone. Always have an integrated paid-owned-earned strategy, focus on quality rather than volume of coverage, and allocate money to amplify the more important stories. A standalone PR team can only go so far; an integrated communications team or consolidated effort is the only way to win.
- Embrace the changing media landscape. While some media titles have exited the scene, new ones are proliferating. They include up-and-coming video channels set-up by ex-reporters and production teams, industry experts who have started their own column or blog, and even emerging vertical and trade media in specialized areas like fintech, digital health, and business development in the Greater Bay Area. While these new platforms are not yet ‘tier-one’, they could be one day. Be brave to experiment and optimized your strategy along the way.
Hong Kong has always rewarded clarity of vision and the courage to venture into new territory. This, together with the city’s sense of entrepreneurialism and ‘can-do’ attitude, is unlikely to change. The world of business is no place for nostalgia. Now is the time for businesses in all sectors to look ahead, focus on the factors within their control, and prepare to seize the opportunities that Hong Kong’s tech-driven future represents.
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