Anne Kerr, chair of the British Chamber of Commerce in Hong Kong, is on Straight Talk this week to talk about how UK businesses in Hong Kong are doing and are expecting going forward a year post COVID, and how she sees these businesses are viewing opportunities our city has to offer in the future.

Check out the full transcript of TVB’s Straight Talk host Dr Eugene Chan’s interview with Dr Anne Kerr:

Chan: Good evening! This is Straight Talk with Eugene Chan. Dr Anne Kerr, the chair of the British Chamber of Commerce in Hong Kong is with us to talk about how we can anticipate the future of UK business development in Hong Kong. Dr Kerr is managing director for the Greater China Business Sector of Mott MacDonald, a management, engineering and development consultancy headquartered in the United Kingdom. She arrived here as a graduate more than 30 years ago, and has been involved in many strategic projects, which have shaped Hong Kong's development, including the current development of our international airport. Welcome, Anne!

Kerr: Thank you very much. Indeed, Eugene, it's such a great pleasure to be here.

Chan: Great to have you, Anne. Maybe you can start sharing with the viewers by telling us about your past, and your role as the chair of the British Chamber of Commerce in Hong Kong.

Kerr: Thank you very much indeed. So, really interesting that I came to Hong Kong, as you said, as a graduate, and was involved in the Chamber of Commerce. I was looking at the opportunities for networking for connecting outside of my immediate, professional sector. So, the Chamber of Commerce was suggested to me as a good place to make new friends, connect with people from other sectors that were relevant as well, to the way that we do business. So, for the last 27 years, I've been involved in committees and in the various committees for the Chamber, and have also been vice chair, and currently am the chair of the Chamber of Commerce. So, I have had quite a large portion of my professional career associated with the Chamber of Commerce, and had huge amount of joy and enjoyment, and also a massive amount of interaction with people from Hong Kong, from the UK and from many other places, learning about trade, business and opportunities.

Chan: Right, Anne. Since you've been in Hong Kong for over 30 years, and you’re like 27 years with the Chamber, it’s quite a remarkable support, or actually a contribution to the actual Chamber. Maybe you can tell the viewers how many actually … do you have the numbers, say how many UK businesses are actually currently operating in Hong Kong? And what type of businesses do they mainly do? And what is the level of investment they are doing in Hong Kong? Are they just doing it at a very primitive level? Or really sort of a very major investments in Hong Kong?

Kerr: Interesting question, because there are many different types of people who are involved in operations in business in Hong Kong, we have over 640 businesses associated with the Chamber who are headquartered in the UK and who are operating in Hong Kong and in other places. We have many other businesses that are small and medium enterprises, who are coming here to do trade, who are doing commercial activities, who are innovation, entrepreneurs, who are doing startups. About 4,500 startups are in Hong Kong, many of whom actually emanate from the UK. In terms of the investment, it's quite significant investment that is being put into Hong Kong, because Hong Kong is seen as the center in many places, and in many cases, the center of investment into Chinese mainland as well as westwards back into the Western world.

Chan: So, since we all know that Hong Kong has very strong ties with the UK because of the history, and of course, the British Chamber of Commerce is sort of a very notable organization in Hong Kong, how many people do you think are actually associated with the 640 plus businesses in Hong Kong? I mean, do you think a lot of Hong Kong population sort of operate or employed by the businesses?

Kerr: So, over the years, people have given different statements as to the percentage of people who are associated and aligned with British businesses. And at times, people were talking about 40 percent of the working force that’s associated with British businesses. I'm not quite sure of the current numbers, and I wouldn't like to be quoted on that as being a figure for today. But I would say that there's a large number of people who have an association. I think it's also important to understand many people have been to universities or schools in the UK and have an affinity. So, what we're looking at the moment is the association with alumni, and also people who have some connection. Many people are also looking at how they can operate from Hong Kong into the UK as being a very good trading partner. So, it's a two-way flow. Actually, so many, many people have got some connection or another.

Chan: Right, Anne, I’ll have to go back to your position as the chair at the British Chamber of Commerce in Hong Kong and I'm sure most business chambers will try to facilitate networking opportunities for both Hong Kong visitors to the UK and vice versa. And how effective has that been in recent years? I mean, you've been here like 27 years, things have changed in Hong Kong and the world? Let's face the reality. Has it become easier or become more challenging?

Kerr: Many questions in that question I think.

Chan: Yes.

Kerr: If I may pick up on the connections and the benefits, I think the benefits that the Chamber can offer to the business community and also to society in Hong Kong is that we do a variety of things. One is our advocacy. So, we always prepare our Policy Address for the Hong Kong government. So, one of the things that we look at is the committees that we operate, we've got over 20 committees that are specialist committees, including financial services, because the financial markets are so incredibly strong, and so important for our members and also for the economy. So, looking at the financial services, we provide input into the Policy Address, we also provide input from climate change from other aspects in terms of logistics, in terms of cargo, in terms of tourism, marketing, other aspects in terms of infrastructure and development, looking to see how we can assist, aid and provide our perspectives, because many of the members are not just working in the UK or Hong Kong, but many of the people are working across the world. So, we're seeing current trends, we're seeing what are the future trends and opportunities. So, we think that the Policy part is a very important part of our advocacy work, we also do a lot of engagement with governments. So, we work very closely with the Hong Kong government, in terms of sharing what we understand our sentiment, etc, we engage with the UK government, we engage with the Channel Liaison Office, Ministry of Foreign Affairs. And, so, we have been building up over the years and I think more effectively, over the last few years, we've been building up very, very strong relationships with all governments to help provide all the information and also to inform on a broader basis, rather than having mono-prismatic views.

Chan: Right, Chair, I'm going to ask you one direct question this time, rather than questions and questions. How would you describe the current state of UK business presence in Hong Kong? Is it increasing, managing the same level or actually decreasing?

Kerr: The UK business presence in Hong Kong is very, very constant. It goes up and down and it fluctuates. But at the moment, it is very much, I would say, on a small positive green shoot in an increase.

Chan: Right. Okay, and how would you … How would your members feel about the Hong Kong market? What are the actual confidence levels in Hong Kong? Because we all know that Hong Kong has been through some challenging times, like many places in the world, we know changes are imminent. This challenge is sort of bigger than before, because, based on our current economy and our businesses, things are changing. Some Hong Kong people are not as confident as before, this is a reason why we invite you to the show and tell us how the … your members see Hong Kong right now.

Kerr: It is a question that were asked many, many times. And we have just been speaking about this this week, about the confidence in the market. And I would say that it depends on which sector you're dealing with. In general, the general perspective is that there are green shoots. And generally, we would say that there are positive signs, the degree of positivity is the thing that is dependent on which sector you're in. So, for example, in food and beverage, in retail, these are still areas of the economy that are recovering from the brutal shift that we've had over the last few years because of pandemic and so forth. But remembering we've only just really had just over a year of being out of restrictions and measures associated with the pandemic, and the recovery takes some time, everywhere in the world has had difficulties and challenges. So, I think that Hong Kong is showing itself and I think members also recognize Hong Kong is showing itself to being what it's very good at and that is resilient and bouncing back. The bounce might not be as big and as fast as we all had expected and hoped, I think, in the middle of last year, but it is coming.

Chan: We know that there have been challenges and you said some are recovering faster, some are still sort of … I think the F&B industry we know it's struggling a bit compared to the others. So, what are the niche in Hong Kong, that you think UK businesses are still staying here, I mean, knowing that it's going to work eventually? Because even if you are going to anticipate things could be better, there must be some good foundation that you think Hong Kong has the opportunity.

Kerr: Common Law.

Chan: Right.

Kerr: English, as one of the business languages, multiple languages also are helpful. And there are many languages that are used and operated in Hong Kong. But also, the fact is that English is one of the very strong common languages for business. That really does give a lot of confidence. Because people can communicate very easily. And it's all about, in business, it's all about communication. It's about building trust. And so trusted relationships, we have seen many trusted relationships have been built, and have remained very strong with foundations.

Chan: Right, I'm going to ask you one last question before we go to the break. We know that there has been in the news that a lot of expatriates have left Hong Kong, because of… during the COVID time, because our restriction was a bit harsh to many families. So, some people left because of the families and all that. Have you seen the numbers actually continue to leave Hong Kong or you’ve seen the other way around?

Kerr: So, as you have mentioned, I have been here for many, many years. And all the time, we have seen people go, we've seen people come, we saw people leaving during the pandemic, absolutely. Because mostly these were families. And there were some difficulties with families for schooling and so forth. But we have seen people coming back, absolutely seen people coming back. And what's also interesting, these might be new families that are coming back, with younger families with younger children. But they also are families who have been relocated in other places during COVID times, and they are returning to Hong Kong, because it is such an incredible place, to live, to work, to raise your family to enjoy life, and to have fun.

Chan: Right, Anne let's take a break now. But viewers. Stay tuned, we will be right back.

Chan: Thank you for staying with us on Straight Talk. Anne Kerr, the chair of the British Chamber of Commerce in Hong Kong, is with us to talk about how we can anticipate the future of UK business development in Hong Kong. So Anne, in the first half, you have told us you've been here for many years, and there are ups and downs of people coming and going from the UK businesses. And you said the Common Law and also English language etc, are the niches of Hong Kong, especially you can base in Hong Kong and move into the mainland. That will be the main point you have made. Am I correct?

Kerr: Yes.

Chan: I am going to ask you with all the challenges happening in the world, especially in Hong Kong with geopolitics, which we are not going to go into today, we want to talk about businesses, businesses do look at where you make the most profit, where it is safe. So, has Hong Kong changed in any way compared to before? Like we had the Article 23, we had the national security legislation coming through. What are your members’ views on all that? Is Hong Kong just as attractive as, or even more attractive, than before?

Kerr: I think it is really interesting to start looking at things from the perspective of whether they have changed. Yes, Hong Kong has changed, but everywhere in the world has changed. I think also from a security perspective and from a safety perspective, I travel in many places for work, I have to say I still think that Hong Kong is one of the safest places I have ever been in in the world. I also talk to different people of different ages and also people operating in different ways, they also have the same point about Hong Kong being a very safe place to live and work. And especially, I would have to say, from a female perspective, I would not like to take a cab in some other cities around the world at 3 o’clock in the morning. But in Hong Kong, no issue at all.

Chan: And just now you mentioned in the first half that one of the works that the Chamber does is having input to the Policy Address. And you know our CE delivered his second Policy Address in October, titled “A Vibrant Economy for a Caring Community”. Were there any changes in that that impact UK businesses? And are they positive or negative?

Kerr: So, there are many aspects in the Policy Address that are very good opportunities for British businesses. And I think development is particularly important to mention in this case. So, British businesses are also not just centered around financial services, but of course, from the perspective that I come from, in development planning and in the construction industry, which operates very strongly here in Hong Kong, and employs many, many of the population. We see many opportunities coming forward. There are different opportunities, it is not just about development. There are huge development plans and the pipeline of projects is quite considerable.

Chan: Right. And you see that we have an increasing integration with the (Guangdong-Hong Kong-Macao) Greater Bay Area. How does that affect the UK businesses?

Kerr: I see some integration with the Greater Bay Area. But there is still a way to go I think. And I would suggest that perhaps the Northern Metropolis is more relevant to the British businesses than the Greater Bay Area because, again, the Northern Metropolis is part of Hong Kong, and it is part of familiar territory for working in.

Chan: Right, and how about … I mean at the other end, we are at a time to shift our focus to the ASEAN and also the Middle East. How do we see that?

Kerr: Interesting, because many of us have very strong connections within ASEAN. And as I mentioned in the first half, half of the world's population is within 5-hour flying time. So, naturally within ASEAN, strong connections, but stronger connections could be made. And again, there are very, very tight relationships in terms of development, opportunities, as well as the financial markets, and so forth.

Chan: Right. So far, you see things are quite positive for the UK businesses. And as you know, many of our officials do watch this program. Maybe if I am going to ask you, what are the most common challenges faced by our UK businesses in Hong Kong that you think the government can lend a hand to? Anything that you can think of?

Kerr: It's a very interesting question because I think actually Hong Kong is ... personally, I think it's a very easy place to do business. One of the things that we could do perhaps or we could see more of is a little bit more in terms of timelines for the opportunities coming forward. And perhaps a little bit more positivity as well. And perhaps a little bit more outward promotion of Hong Kong.

Chan: Right. I am going to touch on one more area before we go back to Hong Kong itself. We all know about Brexit. Brexit has made UK in a very challenging position as well. How has that affected the UK businesses, especially those which have operations in Hong Kong? Will you be spending more effort into this part of the world? Or you want to go back and rebuild the British economy?

Kerr: Oh, I've been here for a very long time, as many people have. And I think that we want to stay here. Absolutely. This is our home, this is where business gets done, and this is where business gets done very effectively and efficiently. We have opportunities. I think that is why many people choose to make Hong Kong their home. Actually many people come here for the traditional two or three-year contracts and stay for a very long time.

Chan: And you know we had a Global Talent Summit recently in Hong Kong. And according to Secretary Chris Sun Yuk-han, we had close to 290,000 applications, where we have approved 180,000. And 120,000 applicants are already in Hong Kong. Do you think this type of scheme is attractive to the UK business people? Because one of the so-called criticisms by the press saying that we are getting a lot of people coming, but majority are with a Chinese background, like they could be Chinese that studied overseas, which I don't think should be a problem. But I think it would be nice to have more people from the traditional Western partners, like the UK. Is it attractive to the people in UK to come to Hong Kong right now?

Kerr: The schemes are very attractive. But if you may have touched on something slightly more delicate. The narrative in the press is not helpful because people read press, they look at the media, and so forth, and they make their judgments. What I think people should do is actually come here and have a look, and see the benefits that there are. When people come, we see quite a lot of youngsters coming in, and they are coming just to have a look and see what the opportunities are. And they are all, I think, the expression is “blown away”. And other people have been coming, we have had some ministers and other business people from UK who haven't been in Hong Kong ever in their lives. And they come, and they are absolutely amazed at what they see. So, I think the message is “come have a look and see, and don't just read the papers”.

Chan: Right. I am sure the viewers, by now, who have watched our program knowing that you personally love Hong Kong very much.

Kerr: Of course.

Chan: Even more other people think. What will be … let's move on to an area at the second part of the show of your specialty. You have been in Hong Kong for over 30 years, you are in construction. I think you were involved in the airport, the runway. When it is completed, do you think the numbers travelling to Hong Kong will reach sort of a pre-COVID level again?

Kerr: Oh, I am absolutely confident in the numbers returning to the pre-COVID levels and beyond. And actually we had about 70 percent, I think, of visitors coming in, compared to COVID times. Also, the airport is not just for people, but the airport is for cargo. And the cargo numbers going through Hong Kong airport are number one in the world. So, it has a very, very dominant position. And I absolutely believe that the airport is one of the most efficient airports. Seriously, it is one of the easiest to move through, to navigate through. And it is one of the most advanced as well.

Chan: You know we used to be number one airport in the world, I think, not recently though. Do you think it will go back up again?

Kerr: Of course, absolutely, I am absolutely confident of it.

Chan: Right. And you mentioned about cargo. I mean can you tell us more about cargo? Because Hong Kong has always been sort of a middle person between the mainland and the rest of the world. But with all these new ports opening in mainland, people say that Hong Kong’s container business has decreased a lot because we are not as competitive. Do you still see that as one of our strengths in the years to come? And how do we do that?

Kerr: So, that is a very interesting question because we always used to think … when I first came to Hong Kong, we always thought the airport and the seaport were equal in terms of their ranking. In more recent times, though, I think it is about consumer spending and what people are looking for. So, the seaport has declined slightly, and the airport has risen. And so what we are seeing is the companies like Amazon and other courier companies are putting a massive amount of throughput through Hong Kong airport, it is something like 40 percent, online sales from Amazon go through the international airport. So, I think that is about consumer spending. I think there has been a shift in the way that materials are being moved around. People are looking for something within 24 hours or less from clicking that button on the “I want to buy”. But if you are still looking at major components, then you would still use the seaport. So, I think it is “horses for courses”, as they say.

Chan: I am going to ask you the last question, the last 30 seconds of the show. What advice would you give your 20-year-old self today about moving to and living in Hong Kong?

Kerr: Get out there very fast, enjoy, and take all the advantages, and enjoy all the opportunities that you might see in Hong Kong. It is a wonderful place to be, to live, to work, to make friends, and to have business relationships.

Chan: Right. Are you going to retire in Hong Kong?

Kerr: Of course, absolutely. Thank you.

Chan: Thank you, Anne, for sharing your insights. Despite the challenges of a dynamic landscape for UK businesses in Hong Kong, the opportunities for continued growth are indeed compelling as we all know that Hong Kong is where business gets done.

As UK Prime Minister Rishi Sunak said, “The deep bond between Hong Kong and the United Kingdom will continue to be a beacon of stability and prosperity in the Asia Pacific, guiding us towards an even brighter shared future”. Have a good evening and see you next week.