This undated file photo shows a view of the Victoria Harbor in Hong Kong. (PHOTO / CHINA DAILY)
Innovative technology is proving to be a game changer for both entrepreneurs and investors in these trying times, and Hong Kong is actively nurturing a resilient startup ecosystem, according to officials and business leaders who spoke at a forum on Tuesday.
“In the post-pandemic era, technological advancement moves at lightning speed. Innovation technology, as many would agree, is now the game changer of almost every sector,” said Sun Dong, Hong Kong secretary for innovation, technology and industry, during the Cyberport Venture Capital Forum (CVCF) main forum.
Sun said that this inevitable phenomenon nicely echoes the theme of the forum: “Venture Forward: Game changing through innovation”.
Businesses are looking at new technology to improve efficiency amid the challenging environment. So generative AI, green technology and ESG (environmental, social, governance) are becoming interesting areas for company to explore, Chu said
Sun shed light on the fact that in today’s landscape, numerous economies have proactively implemented policies to stimulate technological breakthroughs and transformation. “Hong Kong, of course, is no exception,” he said.
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He said that in the recent Policy Address, Chief Executive John Lee Ka-chiu unveiled a series of fresh initiatives covering a range of pressing topics. These include advancing “New Industrialization,” facilitating research and development (R&D) and its commercialization, and fostering the development of artificial intelligence (AI).
“Notably, with regards to Cyberport, an AI supercomputing center will be established in phases commencing from next year. This initiative aims to meet the substantial computing power demand from R&D and relevant sectors while promoting industry development,” Sun added.
Irene Chu, head of new economy and life sciences at KPMG China, gave a presentation titled “State of Market: Trends & Outlook” following the CVCF’s main forum. “The good thing is that although we’re still experiencing a high interest-rate environment, the pressure on inflation is easing. Some of the supply-chain constraint and pressure that we have seen previously are lessened. And that helped many businesses as they continue to look for opportunities to grow,” she said.
Chu said that if one was discussing the labor market a year ago, a common theme was how difficult it was to find talent. But from more-recent statistics, the hiring rate is actually coming down. What’s more, this trend is not confined to a particular region but is a global phenomenon spanning the US, Europe, and Asia, she said.
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Businesses are looking at new technology to improve efficiency amid the challenging environment. So generative AI, green technology and ESG (environmental, social, governance) are becoming interesting areas for company to explore, Chu said.
Peering ahead into the next 12 months, Chu said she believes that venture-capital investments will gradually adopt a more focused approach toward specific sectors. As she has already highlighted the resilience of green energy, sustainability, and AI, it seems these areas will take center stage.
The KPMG partner also believes that one will persistently encounter waves of disruptions in the long run, whether they arise from energy transition, regulatory adjustments, or brief yet impactful shocks. Nevertheless, it is precisely within this context that companies must harness new technology to bolster their competitive edges, she said.
In his concluding remarks, Sun highlighted the huge accomplishments of the Cyberport communities, which have successfully attracted a substantial investment exceeding HK$36.7 billion ($4.69 billion) so far. Such growth also continued in the previous year, as Cyberport startups secured funding surpassing HK$1 billion.
Sun underscored the critical role played by the integration of information and technology (I&T) development, startup incubation, financing, and long-term growth in ensuring the smooth and efficient functioning of the entire ecosystem.
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Similarly, Chu expressed optimism about Hong Kong’s startup ecosystem. She emphasized that Hong Kong places significant emphasis on nurturing the overall health of the ecosystem, with each key segment playing a vital role. This includes academic institutions, corporate entities, and, notably, the government. Chu said she believes that the government has consistently shown strong support for the startup ecosystem.
Furthermore, Hong Kong’s importance as an international financial center should not be overlooked, she said. It serves as a platform that enables Hong Kong to distinguish itself, not only for its own benefits but also as a conduit connecting international investors with the innovative ventures and companies within the region. Chu echoed this perspective on the role of Hong Kong as an international financial center and its potential impact on the Chinese mainland.
