Hong Kong's ability to add value to businesses operating here will ensure the territory remains attractive for investors and that it maintains its role as a logistics hub for some years to come.

"The well-developed infrastructure, attractive tax environment and financial services, et cetera, those are the reasons that we have our head office in Hong Kong," Esquel Chairman Marjorie Yang said at the business summit.

In the late 1970s, unable to maintain a manufacturing base in Hong Kong, Esquel moved its manufacturing operations overseas. In the '80s, it wanted to upgrade production and needed better textile support, so it started making knit fabric in Malaysia.

The company now employs tens of thousands of workers peppered across the globe. But throughout its rapid expansion over the past 30 years, the company has maintained its head office in Hong Kong.

Ms Yang said she has tried to move away from Hong Kong, and even tried setting up in Singapore, but failed due to a lack of manpower there.

"Highly educated and skilled staff keep our operation in Hong Kong," she said. "We are using Hong Kong as a hub for our logistics as well as the nucleus for all of the operations."

The challenge of exchanging informa-tion, goods and financial information effectively between operations around the globe has been a major challenge for Esquel, Ms Yang said.

To facilitate this, the company has implemented an e-supply chain management system. She said most staff have welcomed the technology and are constantly inventing new ways to improve the company's competitiveness through technology, instead of just cheap labour.

"This is very important because in our kind of industry, we are still moving solid goods, and our customers -- because of the financial crisis -- are still petrified of inventory," she said. "Now, we are able to use it and through strategic partnerships with our customers link up the entire production chain and reduce inventory."

While the cost of maintaining operations in Hong Kong is a critical consideration, Ms Yang said that her main concern is that Hong Kong may not be able to produce a new generation of knit merchandisers to take over when her current staff retire.

"My concern is not so much today. I am able to maintain my head office in Hong Kong because all my value-added activities are here and I can cover my costs. But in the future we must be able to bring those people with that special expertise in here, otherwise we will be forced to do something," she said.

Besides restructuring Hong Kong's education system to produce more creative students, Ms Yang said she feels it is also vital to increase students' confidence in their ability.