As the world progresses towards Industry 4.0, “re-industrialisation” has also become a buzzword in Hong Kong as the city strives to diversify its economy and seeks new engines of growth. The concept is to leverage the use of emerging technologies to spawn high-value-added industries and supply chains. All this whilst establishing synergies and seizing the opportunities coming from the Greater Bay Area.
At the “Hong Kong Economic Summit 2022”, sponsored by HSBC, experts shed light on some fundamental aspects of this strategy for the city that offer opportunities:
Existing industrial estates, originally designed for labour-intensive production, must be upgraded and retooled for the innovation industries. For example, Tseung Kwan O Industrial Estate will have an Advanced Manufacturing Centre added, aspiring to attract manufacturers of satellites, electronics, medical equipment and logistic companies amongst others to move in.
Re-industrialisation, Internet of Things (IoT) and FinTech all depend on ICT infrastructure. Hong Kong is a forerunner in 5G development and has a high mobile penetration rate. These provide a good foundation for Hong Kong’s small-and-medium-sized enterprises (SMEs) to embark on digital transformation.
Talent sourcing is crucial, especially in the process of re-industrialisation. Hong Kong’s innovation and technological development has reached a stage that calls for grooming more talent in addition to building the best industrial environment. Currently, Hong Kong has between 40,000 and 50,000 individuals trained in research and innovation and has between 3,000 and 5,000 start-ups. In comparison, there are 200,000 in Shenzhen and 50,000 – 60,000 start-ups.
In the 2021 Policy Address from the Hong Kong government the creation of a Northern Metropolis to co-pilot Hong Kong’s economic growth was proposed. The proposal places a strong emphasis on grooming start-ups and tech firms, hoping to create an economic belt of innovation and technology industries locally that thrive in synergy with their counterparts from neighbouring Shenzhen.
Want to find out more about the insights from experts and industry leaders on the key trends on re-industrialisation? Click this link to review the contents of “Hong Kong Economic Summit 2022” (available in Chinese only).