This Nov 19, 2020, photo shows a general view of Hong Kong. (ANTHONY WALLACE / AFP)

The trend of digitalization is expected to continue into the post-pandemic times, and companies need to embrace digital transformation to survive, Hong Kong government officials said on Friday.

The government has allocated over HK$100 billion to support I&T sector over the past three years

“No matter how the pandemic develops, the operating pattern of Hong Kong companies needs to change. Businesses that used to rely on physical-store performances must expand their online presence,” said Edward Yau Tang-wah, secretary for commerce and economic development.

Yau suggested companies adapt to the trend of more integration between their online and offline businesses. “We have to accept the trend” of digitalization, he added.

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Digitalization is one of the most pronounced trends in the government’s budget for the 2021-22 fiscal year, presented on Wednesday by Financial Secretary Paul Chan Mo-po. The government will allocate HK$375 million (US$48.3 million) to the Hong Kong Trade Development Council in the coming three years to develop virtual platforms to enhance its capability to organize online activities and proceed with digitalization.

“Even when the pandemic subsides, a physical-cum-virtual hybrid model will likely be the new norm. It is therefore of utmost importance to help enterprises accelerate their digital transformation,” HKTDC Chairman Peter K N Lam said on Wednesday in his response to the 2021-22 Budget.

Yau also said the HKTDC will initiate more engagement through its online and physical business-to-customer platforms to help Hong Kong business startups promote their innovations and products and to gauge the preference of consumers.

 “I am convinced that the promotion of information and technology is the right direction for the long-term development of Hong Kong,” Yau said on Wednesday. “The current-term government spares no effort in promoting I&T development. … One cannot make bricks without straw. We need quality infrastructure to attract I&T talent, and facilitate the operation of I&T enterprises,” he said.

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Chan said on Wednesday that a HK$12 billion budget for Hong Kong’s innovation and technology development will expedite the city’s digital transformation during and after the COVID-19 in order to enhance its role as a tech hub. The government has allocated over HK$100 billion to support I&T sector over the past three years.