Hong Kong's competitiveness

As recession bites and Hong Kong faces a slow, labourious recovery, now might be the time to consolidate strengths and tackle weaknesses to improve competitive advantage. Whilst Hong Kong has a high-cost structure, particularly in land prices, the current recession may well provide opportunity for companies to lay the firm foundations needed for a full future recovery.
From a macroeconomic perspective, Hong Kong's ongoing competitiveness may depend upon an increased emphasis on innovation and technology. Indeed, if Hong Kong can really prove itself in these areas, it would help to attract more inward investment from the global market leaders, given its continued commitment to low taxation.
1. Through innovation and technology

Innovation and technology, when going hand in hand, bring about profits and growth for companies.

2. Through optimising individual talents

Dr Lily Chiang, Chairman of the Chamber's Industrial and Technology Committee, believes that raising competitiveness is important at all times - not just in a recession. Dr Chiang admits the best future business opportunities lie in the Internet, multimedia and environmental protection sectors.

3. Through efficient supply chain management

Hong Kong has experienced a boom for more than two decades leading businesses to be more complacent about improving efficiency. But now, faced with tough economic times, this is the area that needs attention - according to Ms Anna Lin, Chief Executive, Hong Kong Article Numbering Association (HKANA).

4. Through management consultancy

By analysing the strengths and weaknesses of individual companies, management consultancy can serve to enhance the competitiveness of that entity.