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Chamber Programmes

Creative Industries
Tapping Hong Kong's Creative Juices

Hong Kong needs to start tapping its creative juices to drive forward the economy instead of just comparing how creative industries contribute to the cultural capitals of London, Paris and New York. 

The debate about how much creative industries contribute to Hong Kong's economy has been given new round of life with the release of a study from the Centre for Cultural Policy Research, at the University of Hong Kong.

Dr Desmond Hui, the centre's director, explained at the Chamber's November 5 roundtable luncheon that creative industries (excluding government organisations) accounted for 3.8 percent, or HK$46.1 billion, of Hong Kong's gross domestic product (GDP) in 2001, down from 4.1 percent in 1996. That figure jumps to 6 percent if the government's contribution is included.

In revealing the methodology behind the study, he also pointed out that since 1996, which was a very good year for Hong Kong's economy, the ensuing years were among the worst that Hong Kong's economy has experienced, so some decline was to be expected.

To provide some perspective of how important that 3.8 percent is to the economy, he said the wholesale and retail sector contributed 3.7 percent to the territory's GDP in 2001.

Interestingly, the sector employed 5.3 percent of the workforce in 2002, up slightly from 5 percent in 1996, which is a result of 5,496 more establishments being set up over the period. Another surprising finding from the study is that 94 percent of people working in the creative industries are employees, rather than self-employed free spirits, which is often the case in the cultural capitals of the world.

Danny Yung, Artistic Director, Zuni lcosahedron, also speaking at the luncheon, said conservative Asian bankers' may make it difficult for aspiring talent to find capital to bring their ideas to fruition.

"In London, bankers are very enthusiastic about backing creative industries because they realise their potential," he said, adding that he hopes more financial assistance, such as the government's SME loan scheme, can be used to finance more creative start-ups.

Mr Hui's Speech    Mr Yung's Speech    Q & A   
Download the study

Chamber Golf Outing

Golf lovers enjoyed the fresh air, beautiful greens and fellow golfers' company during the Chamber's golf outing to Shenzhen's luxurious Mission Hills Golf Club on November 5. Some 38 golfers had a very enjoyable day out which was rounded off by a meal and prize presentation ceremony for the best golfers of the day.

View Photos >>   

SOE Reform
China Goes Corporate

The two biggest myths about China's economy are: 1) that it consists of moribund state-owned companies and dynamic private companies; and 2) that the goal of economic reform is to create more private ownership and greater corporate efficiency.

According to Arthur Kroeber, Managing Editor, China Economic Quarterly, "The goal of state sector reform in China is not to create "efficient companies," but to make state control of the economy more effective."

Speaking at the Chamber's November 3 roundtable luncheon, Mr Kroeber said this may seem wasteful, but as a fast-growing, continental economy, China can afford a lot of waste.

He theorises that the Central Government's rationale behind this is zhuada fangxiao, or "seizing the large and letting go the small." By dominating key domestic industries, these state-owned enterprises will continue to have a profound influence in China socially and just how fast private companies will be allowed to grow. But also, by virtue of their size, they will also command respect and be able to compete globally.  

To achieve these goals, "They need to adopt modern management practices to achieve basic efficiencies, but corporate efficiency is not the central goal," he said.

The rationale behind easing restrictions on small businesses (fangxiao) include job creation, generating revenue streams for local governments and reinforcing social stability. As such, Mr Kroeber said he doesn't expect a "big bang" privatisation movement in China, rather "a hundred little firecrackers."

He also predicts that the Central Government clearly intends to maintain control of the economy, rather than privatise, which will drive China's strong economic growth and assure government control.

As a result, "National champion" SOEs will emerge on the world stage, while the entrepreneurial state and quasi-state firms will create wealth, he said.

Speech    Q & A    Slides  

Full list of Chamber programmes in November >>