Hong Kong’s innovative technology sector has more than proved its steadfastness and resilience, casting aside the COVID-19 blues and escalating Sino-US tensions as it strives to navigate challenging times in taking on the global health crisis.
Unlike many other industries that have been mauled by the pandemic, entrepreneurs and industry leaders find the innovation and technology field robust, with vast opportunities in the long run despite an uninspired, uncertain world economy rattled by the coronavirus.
“As an international center with a strong network to the East and West, Hong Kong’s strengths in infrastructure and communication ability, and our position as a data hub still stand despite the external challenges,” said Peter Yan King-shun, chief executive officer of Hong Kong Cyberport Management Co, which manages an innovative digital community with more than 1,500 startups and technology firms.
As an international center with a strong network to the East and West, Hong Kong’s strengths in infrastructure and communication ability, and our position as a data hub still stand despite the external challenges
Peter Yan King-shun, chief executive officer of Hong Kong Cyberport Management Co
The newly enacted National Security Law, he said, will see the city maintaining a stable economy in the long run and offering an ideal environment for tech enterprises to thrive.
In the past few years, the SAR government has been investing heavily in innovation and technology sectors with the goal of transforming Hong Kong into a world IT pivot.
In 2018 and 2019 alone, the authorities pledged more than US$13 billion to develop IT, according to InvestHK — the government unit founded in 2000 to lure economically and strategically important foreign investment to the city.
The COVID-19 crisis, aggravated by the onslaught of a more severe third wave of local infections in July, has served as a catalyst for companies to accelerate digitalization, while innovative tech firms are working flat out to come up with solutions to deal with the situation.
A catalyst of digital trends
Charles Ng, associate director-general of investment promotion at InvestHK, sees some strong enterprises riding out the pandemic that will change the way people do things in the future.
He said startups should solve problems or improve people’s lives as this is how they deliver value, and they must persevere in their mission.
Ng also pointed out that the process and criteria of startup investment have not changed. Large investors in venture capital firms are interested in innovative solutions to resolve pain points and areas that drive growth like gaming, virtual events, education platforms and healthcare solutions that can take advantage of the COVID-19 situation.
The world is going through a transition to the “new norm” as the coronavirus has fundamentally disrupted the global supply chain, Yan said. “There’ll definitely be pain in the process as businesses retune themselves.”
Yan suggested that tech companies look afar to create new opportunities and rid themselves of relying on the traditional methods of doing business.
Since early this year, tech companies have joined the war on the coronavirus leveraging their advantages in research and development, as well as adaptability.
Roborn Technology — a local startup specializing in a motion control system with technologies such as 5G, artificial intelligence, internet of things and cloud computing — launched its body temperature-checking robots in February, followed by the latest UV light disinfection robot now being deployed at medical centers, restaurants, hotels and property management agencies.
Concerning the US move to restrict exports of high-tech products to Hong Kong, Mark Mak Hin-yu, co-founder and chief technical officer of Roborn Technology, told China Daily his company hasn’t been affected much as it has diversified its supply chain without relying on modules from a single country or region.
For instance, the transmission control modules Roborn uses for 5G robots are produced by Chinese mainland tech titans ZTE Corp and Huawei Technologies. Roborn’s infrared cameras used in its anti-pandemic robots come from Europe, the United Kingdom, South Korea and the mainland.
Roborn’s core research and development center is in Hong Kong, while its production line, purchasing and sales centers are spread out in the Guangdong-Hong Kong-Macao Greater Bay Area.
The company joined a promotion campaign launched by the Hong Kong Trade Development Council to explore potential business opportunities with the Association of Southeast Asian Nations and share Hong Kong’s solutions in fighting the pandemic.
Mak said the campaign has helped them tap deeper into the ASEAN markets, along with the mainland and European markets.
In the coming months, the robotic company plans to launch an outdoor UV disinfection robot geared entirely to combating the public health crisis.
The new outdoor UV disinfection robot is supported by the SAR government’s Public Sector Trial Scheme — Special Call for Projects for the Prevention and Control of COVID-19 in Hong Kong launched in March. The program offers successful applicants maximum funding of HK$2 million (US$260,000) for each project of a 12-month duration.
Roborn has been keeping its finger on the pulse of government-supported policies and projects, which Mak said have helped the company to expand its markets and R&D in tough times. He said Hong Kong and countries in the region have a high demand for innovative technologies. Although the SAR has a rather small local market, its strengths lie in its intrinsic connectivity with the mainland and countries and regions involved in the Belt and Road Initiative where Hong Kong businesses could tap into.
For Hong Kong to stay competitive, he urged the IT sector to continue diving into R&D to create competitive products.
Rice Robotics — another local startup founded last year — develops autonomous indoor service robots to be used in hotels, malls, hospitals and office buildings. The “Rice” robot went into service earlier this year as the pandemic raged, while another robot developed by the same company called “Jasmine” does indoor air disinfection.
“Our business has experienced a boost during the pandemic as our robots directly tackle the issue of minimizing human contact and also disinfect premises,” said Rhaime Kim, general manager of Rice Robotics.
With an R&D center based in Hong Kong, Rice sources most of its robot parts in Asia and specifically targets the Asia-Pacific market.
“We see our operations continuing to thrive in the future because autonomous robots are on the rise and we’re excited to be part of that change,” Kim said.
Based in the SAR with an office in Science Park, Rice Robotics partners with the local community and is in close contact with professionals, she said.
“It’s exciting because they’re exactly the type of people who’re interested in robotics that we’re looking for. And, we’re happy to build up our team here.”
Wong Nai-ching, head of New Asia College at the Chinese University of Hong Kong, said Hong Kong, which has several world-class universities, should make full use of its competitive edge in terms of talent.
Due to COVID-19 and rising tensions between the US and China, some prospective doctoral students with admission offers from top universities may not be able to begin their studies as planned.
Wong hopes there will be opportunities arising from the crisis, and Hong Kong can take in more top science students.
He laments that academics and researchers in Hong Kong are spending too much time on paperwork, such as funding applications and reports, with little time for real scientific research.
The mainland, he points out, has been working on policies to simplify the paperwork for researchers and academics, and Hong Kong should do likewise.
