Christopher Cheng owns a handful of successful companies, from traditional manufacturing industries to the latest online applications services. Although the new economy does present businesses with new opportunities and challenges, he feels it by no means signifies the end of some old economy industries. Editor Malcolm Ainsworth caught up with Mr Cheng and asked him how he plans to use the new economy to strengthen his businesses.

You are involved in many industries. Some, like your clothing and publishing businesses, are traditional industries. Have you invested in any new-economy businesses?

We have, but almost all of our investments in the new economy are relevant or related to something we are running, whether it is our clothing, real estate, publishing or telecommunications businesses.

For example, we have invested in an application service provider (ASP) that provides solutions to people in clothing companies -- both in Hong Kong and in the States. Because we know the clothing industry and the kind of efficiency that can be achieved through using this product we know people will use this service. We have also invested in a company offering a securities solution package to companies involved in e-commerce.

Are you interested in pursuing B-to-C?

A number of companies now offer audio books on the Internet, but we think that we can do a better job. Our executives have come up with a very reasonable and safe Internet plan that teams up publisher and distributors like the U.K.'s WHSmith or Amazon where we will in future distribute books on the Internet using MP3 technology.

How has the new economy affected your businesses and what impact do you think this will have on Hong Kong businesses?

The new economy is changing the way we communicate with people, buy components and sell to our customers. I am sure some inefficiencies will be eliminated ?including certain intermediaries -- but this does not give us the 20-30 per cent savings as some people claim in the press -- at least not in the immediate future. But, for sure, it can save us 5-10 per cent of our sourcing, selling and administrative costs.

And Hong Kong?

On the one hand, I do believe that the new economy will stimulate the old economy because better information flow, increased efficiency and improved customer service or convenience. On the other hand, I also believe that the old economy is still very relevant to the new economy. Let's take for example Amazon and Barnes & Noble. Everybody knows this story. When Amazon started, a lot of people said it would replace Barnes and Noble. But it was inevitable that Barnes and Noble would acquire technology and set up a new division in cyberspace. They won't just sit there and let Amazon steal their business. The same is true of any business.

In the end, I believe there are opportunities in both the old and new economies. An old economy business can improve itself and increase its efficiency by taking advantage of new economy technologies and adopting its customer service concepts, etc. As long as they keep themselves updated, most of them won't be replaced by some Internet start-ups. They can, of course, also participate in the new economy through investments.

But will the first movers retain their advantage?

Amazon found out that selling books in cyberspace does not negate the necessity of building up a physical infrastructure to service their business on a global scale. It also found out that marketing in an overcrowded cyberspace does not come cheap. So the new economy businesses, just like the old economy businesses, have to invest in a physical infrastructure and in marketing, among other things.

My view is that whether you are a new company involved in B-to-C or and old economy business, in a few years time you will both evolve and will likely be doing the same thing and that is trying to attract the customer attention through the most effective channel and service customers' needs in the most efficient manner.

At the end of the day, it is the calibre of management that will determine which company will ultimately succeed.

Your CV is very impressive -- you hold many public offices. How do you manage your time and your business?

The government rotates people around so I've done a lot because of rotation. How to manage time? Well, time is a resource and it is a matter of allocation and sticking to your plan.

Which aspect of public service do you enjoy the most?

I believe a mature society requires the participation of each citizen, so I am only doing my duty. In addition, where my public service involves my own area of expertise, I quite enjoy bridging the communication between the government and the community.

How do you manage to find time to run your businesses?

I'm more involved on the strategic issues and decisions now. I don't do much on the day-to-day running of operations. I have very good management teams.

Hong Kong and Singapore are regularly compared to each other. Do you think such comparisons are justified?

You are very active in the Chamber, what do you enjoy most about the work?

One is that we are often consulted on government policy, and that we put forward our views on business issues through the Chamber's Chief Economist Ian Perkin. I also enjoy very much the discussions between the chairman and chairpersons on public policy. The second thing is, as you know, we have a lot of good public functions. There are times when I have to host these and very often these speakers are very interesting and I enjoy the stimulating conversations we have.

Do you think the Chamber is doing enough to help companies capitalise on the new economy?