After 3 years of the pandemic, Hong Kong's economy is still struggling to recover, despite supportive government measures. Professor Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, gave an interview to HKET iMoney and mentioned that over the past three years, Hong Kong has been lagging behind in terms of competitiveness and the quality of service industry. On the contrary, mainland China and neighbouring countries invested and improved on infrastructure quality and digital economy development. Furthermore, there is a decline in the quality of service in the retail and restaurant sectors, resulting in public dissatisfaction. Combined with cautious consumer spending due to the economic downturn, Hong Kong residents are more inclined to spend their money in neighbouring regions to seek better services and experiences. This preference for spending elsewhere further hampers the recovery process. Other interviewees believe, as the economy gradually recovers after the pandemic, businesses should consider adapting to market demands by adjusting their production and operational models, or even transforming their business strategies. Such proactive, solutions-oriented mindset will undoubtedly help mitigate risks and increase profitability. Additionally, the government should expedite the approval process for funding initiatives for SME, thus accelerating the process of productivity enhancement and the market explorations beyond Hong Kong.
27 Feb 2024
Finance