The HKGCC International Business Summit 2024 convened at a pivotal moment in the world economy. In her opening remarks, Chamber Chairman Agnes Chan noted: “The global economic landscape is undergoing profound changes as the centre of economic gravity – and to a certain extent, political gravity – shifts eastwards.” 

Under the theme “Shifting Economic Center of Gravity: Hong Kong’s Role,” this year’s summit, held on 28 November, looked at how Hong Kong can thrive in an ever-changing global landscape. Chan reflected on the insights of former Financial Secretary Sir Hamish Macleod at the inaugural business summit 30 years ago, whose advice on seizing opportunities during challenging times remains relevant today.

In his keynote speech, Financial Secretary Paul Chan expressed confidence that Hong Kong would flourish amid geopolitical fragmentation and rising tensions, particularly between China and the United States. “Where there are opportunities, money comes,” he emphasized, praising the city’s resilience against challenges.

Chief Executive John Lee echoed these sentiments in his luncheon address. Highlighting Hong Kong’s position as the world’s freest economy among 165 nations in 2023, he underscored the city’s essential role as a hub for international and local businesses pursuing growth opportunities, particularly in the Mainland and the broader region. 

He also outlined Hong Kong’s outreach efforts to connect with governments, businesses and investors in the Middle East and Southeast Asia, reinforcing the city’s status as a vital link in the global marketplace.

Tapping Opportunities in Diverse Markets 

The first panel, “ASEAN and Middle East: New Engines for Global Growth,” captivated attendees with a deep dive into Hong Kong’s pivotal role as a bridge between Asia, the Mainland and the world.  

Hong Kong has nurtured valuable trade and economic relationships with ASEAN (Association of Southeast Asian Nations) for years, solidifying its position as the city’s second-largest goods partner. Last year, total trade reached an impressive US$145 billion.  In 2022, ASEAN was Hong Kong’s sixth-largest source of inward direct investment and the third-largest destination for outward investments. Additionally, the city is home to around 650 offices representing parent companies in ASEAN, showcasing its strategic importance in the region. 

Distinguished panellists, including Dato’ Gan Khai Choon, Founder and Chairman of The Malaysian Chamber; Benjamin Hung, President of International at Standard Chartered; Iain Lindsay, Advisor to the Bahrain Economic Development Board; and Dee Poon, President of Brands and Retailing at Tessellation Group, discussed the burgeoning influence of the Global South, which encompasses over 85% of the world’s population, in the global economy. 

The allure of Southeast Asia as a destination for foreign direct investment (FDI) is undeniable, thanks to its strategic location and improving infrastructure, noted panel moderator Johannes Hack, President of the German Chamber of Commerce. 

Hung said the word “Asia” was small but encompassed a vast tapestry of diverse cultures, markets and potential for investment. He added that bilateral ties with Hong Kong would benefit from exchanging a cross-section of talented professionals with an international mindset. 

Reinforcing this viewpoint, Dato’ Gan spotlighted the predominantly young demographics in these countries whose preferences reshape markets. Sectors like e-commerce and digital services are experiencing dynamic growth, unlocking new opportunities in finance, retail and logistics. 

The region’s rapidly growing manufacturing base is also attracting global interest due to its strategic positioning near significant shipping routes. This accessibility facilitates trade with Asia-Pacific, Europe and North America.

Dee passionately argued that innovation and creativity should increasingly focus on Asia, where a thriving ecosystem of home-grown brands is emerging. With Asia serving as the world’s manufacturing hub, it is also the frontline in the costly battle for sustainability. Pursuing sustainability requires significant investment and collaboration between private and public sectors to address the urgent threat of climate change.

Amid these developments, the global economy faces challenges from potential trade tensions, particularly with the Trump 2.0 administration’s pledge to impose high tariffs on China and U.S. neighbours Mexico and Canada. 

Flagging China’s pivotal role as the world’s second-largest economy and a manufacturing powerhouse, Hung said the country is at the forefront of critical industries like electric vehicles. It accounts for nearly 70% of global EV sales, with 9.5 million produced in 2023. The challenge, he explained, lies in balancing trade while navigating supply chain disruptions, costs and evolving demand. 

The Middle East is another exciting frontier, home to an astounding 42% of global sovereign wealth assets alongside the North African (MENA) region. Hong Kong’s merchandise trade with the Gulf Cooperation Council member states surged 15% from 2022 to 2023, showcasing the city’s growing economic ties. 

Moreover, in March 2024, Hong Kong signed an Investment Promotion and Protection Agreement (IPPA) with Bahrain, marking its third agreement with a Middle Eastern nation after those with Kuwait and the United Arab Emirates. 

Hack noted that these nations are actively seeking to diversify their economies beyond oil and gas, moving towards more resilient and sustainable growth models which offer plenty of investment prospects for Hong Kong businesses. Countries like the UAE and Saudi Arabia are investing heavily in solar and wind energy to reduce their reliance on oil. 

Lindsay revealed that Bahrain is transforming into a business hub for global investors. Its capital, Manama, is becoming an emerging centre within the Gulf region, drawing comparisons to Dubai due to its strategic initiatives and expanding economic landscape. 

While Hong Kong has established strong links with ASEAN – particularly with the impending inclusion in RCEP (Regional Comprehensive Economic Partnership) – the city must enhance its footprint in the Middle East and promote greater visibility of the “Hong Kong brand,” he added.  

Dato’ Gan also underscored Hong Kong’s vital role as a trade and investment facilitator between emerging markets like Malaysia and Thailand and established economies. He also suggested opening Chinese schools in ASEAN countries and vice versa to deepen cultural and educational ties.

Hung echoed his views, stating that as a cosmopolitan city and an international financial hub, Hong Kong boasts unparalleled infrastructure, a diverse talent pool and a robust regulatory framework. As such, its positioning as a world-class financial centre is crucial for its future. 

Dee further emphasized the importance of viewing Hong Kong not as a competitor to other financial hubs like Singapore but as a unique super-connector that offers immense value in the evolving global marketplace. 

A Future Transformed by Technology

In the session on “How New Technologies are Reshaping Our Future,” Iñaki Amate, Chairman of the European Chamber of Commerce in Hong Kong; Anne Kerr, Managing Director for Greater China at Mott MacDonald; Kenny Lam, CEO of Two Sigma Asia-Pacific; and Nisa Leung, Managing Partner at Qiming Venture Partners, looked at how technologies like artificial intelligence, blockchain and big data are transforming sectors such as healthcare and education. 

Steering the discussion, moderator Brian Wong, Assistant Professor at The University of Hong Kong, drew parallels to the Industrial Revolution, when machines were seen as threats to jobs, mirroring today’s concerns about AI. 

Lam acknowledged the fear surrounding AI but emphasized that within this vast field lie numerous sub-tools with the potential to dramatically reshape business practices when used responsibly within solid regulatory frameworks.

With workforces fearing AI could threaten their livelihoods, Amate said the future was not just about giving in to technological transformation but embracing it mindfully, especially by corporations. 

Discussing the immense potential of AI and technological advances in biotechnology and healthcare, Leung underscored how innovation could unlock significant value across diverse industries to leverage technology for the good of humanity. 

Expanding on this, Kerr highlighted Hong Kong’s reputation as a hub for R&D excellence and innovation and its world-renowned universities. Leung agreed, championing the integration of AI fundamentals and data science into curricula so students can thrive in tech-driven careers. 

Leung said Hong Kong must also continue to serve as a value-adding super-connector. She emphasised that by supporting Mainland organizations eager to expand into Europe and beyond, the city can use its position to bridge global markets as regulations around AI and data continue to evolve. 

However, the rapid pace of technological change also brings challenges. Kerr pointed out that ambiguous regulations, data privacy concerns, over-regulation and the urgent need for reskilling are realities that cannot be ignored. Furthermore, the extensive resources required for AI systems can increase energy consumption in data centres, potentially offsetting efficiency gains elsewhere. 

Lam spotlighted another pressing concern – the competition for AI talent. The soaring demand for skilled professionals in this field is outpacing supply, making recruitment a formidable task. He also cited the impact of geopolitical issues on the exchange of technologies.

The call to action was clear: collaboration between governments, industries and businesses is essential to harness technology responsibly. More importantly, discussions about adopting these technologies should include a diverse range of people, including youths and young entrepreneurs, to level the playing field.

Strengthening Hong Kong-UK Links

In an inspiring conclusion to the summit, Sir Sherard Cowper-Coles, Chairman of the China-Britain Business Council, took the stage to share observations from his recent trip to the Mainland. He highlighted the sentiments expressed by European politicians and business leaders regarding the opportunities emerging in Asia. 

Having served as the head of the Foreign and Commonwealth Office’s Hong Kong Department from 1994 to 1997, Sir Sherard emphasized the urgency and significance of fortifying UK-Hong Kong connections.  

The session was further enriched by a thought-provoking fireside moderated by former Chamber Chairman YK Pang, covering topics ranging from historical contexts to the potential for enhanced cooperation between China and the UK. 

Sir Sherard also addressed recent unfounded accusations from U.S. hawks targeting Hong Kong’s financial sector, suggesting these were more about eliciting a reaction than reflecting genuine concerns. Wrapping up the day’s events, he said Hong Kong’s role as a strategic player between the Mainland and the world was never more critical than it is today.

Highlights of the Chief Executive’s Address

• Under the “One country, Two systems” principle, Hong Kong has long been a super connector, creating opportunities in both traditional and emerging markets. 
• Hong Kong enjoys mutually beneficial trade and economic relations with ASEAN. ASEAN is our second-largest goods partner, with total trade reaching US$145 billion last year.
• Hong Kong’s FTA with ASEAN led to the Economic and Technical Cooperation Work Programme, whose extension the Hong Kong SAR Government supports with enhanced financial contribution. This will strengthen our people-to-people ties and enhance the region’s overall competitiveness.
• The next step in growing ties with ASEAN is for Hong Kong to join RCEP, the world’s largest FTA, which includes all 10 ASEAN member states. 
• Merchandise trade with member states of the Cooperation Council for the Arab States of the Gulf grew 15% from 2022 to 2023 y-o-y.
• Investment Promotion and Protection Agreement signed with Bahrain following agreements with Kuwait and the United Arab Emirates.
• In 2012, we signed an FTA with Chile. The FTA signed with Peru in 2024 reinforces the message to other Latin American economies that Hong Kong is eager to build closer economic ties. 
• To tap into the Mainland market, look no further than the Greater Bay Area. Our Mainland counterparts can take advantage of the wide range of professional services offered in Hong Kong.

Highlights of the Financial Secretary’s Address

• Against a backdrop of geo-economic fragmentation, trends such as “de-risking”, “on-shoring” and “friend-shoring” are reshaping the landscape of trade, investment, capital flows and talent flows. 
• The risks are looming larger, as US President-elect Donald Trump pledged to impose tariffs on China as well as Mexico and Canada.
• The United Nations’ Sustainable Development Goals, which seek to eliminate poverty and hunger and build sustainable and resilient cities and communities, remain far off track.
• To tackle misconceptions and biases about Hong Kong, we must proactively engage and tell the actual Hong Kong story. We need more people visiting Hong Kong so that they can see the opportunities for themselves.
• We are opening up more emerging markets. The Hong Kong delegation to Saudi Arabia in 2024 witnessed the listing of two ETFs investing in the Hong Kong stock market. 
• Hong Kong will soon establish Economic and Trade Offices in Kuala Lumpur and Riyadh. The Hong Kong Stock Exchange will also open offices in some of these markets. 
• Mainland companies are encouraged to establish international or regional business headquarters, corporate treasury centres and supply chain management centres in Hong Kong.
• To boost innovation and technology, the Government is supporting research and development, nurturing startups, fostering cross-industry collaboration, attracting strategic enterprises, and partnering with GBA cities. 

HKGCC would like to thank all speakers and guests who attended and helped make the summit successful, especially the 15 HKGCC member companies that sponsored it. 

Platinum Sponsors: EY; Hong Kong Air Cargo Terminals Limited; Jardine Matheson Limited

Gold Sponsors: Bank of China (Hong Kong) Limited; CK Group; CLP Power Hong Kong Limited; HSBC; John Swire & Sons (H.K.) Limited; MTR Corporation Limited; New World Development; Sino Group; Standard Chartered Bank (Hong Kong) Limited; Sun Hung Kai Properties Limited; Wheelock Properties; Yue Hwa Chinese Products Emporium Limited. 

The AI booth at the Summit was run by PONS.ai.