In recent years, Hong Kong’s economy has faced significant headwinds. We’ve seen slowing growth due to accelerated talent outflows, mounting geopolitical pressures, and weakness rippling across global markets. The loss of dynamism in key trading partners like the Middle East and the United States poses real challenges for a financial hub so interconnected worldwide.
Although Hong Kong’s economy showed signs of recovery in late 2022 and 2023, growing challenges persist. According to the latest government figures, real GDP expanded 3.2% in 2023. A concerning trend in recent years has been the sizable outflow of residents from Hong Kong. Government number shows the net outflow reached over 282,900 people in 2023.
This level of emigration is depleting Hong Kong’s talented workforce across multiple sectors. Industries like healthcare, IT and finance rely on specialized skillsets that are becoming more scarce internally as professionals pursue opportunities abroad.
From an economic standpoint, each migrant takes with them their earning potential and spending power, translating to a drag on domestic consumption and weaker outlook for job creation. Fewer consumers within Hong Kong’s boundaries also reduces the addressable market for local businesses.
Externally, weak growth in major markets like the US and Europe continues to dampen export demand. Data from the Census and Statistics Department shows Hong Kong’s exports fell 7.8% year-on-year in 2023.
These uncertain times call for innovative solutions to combat industry headwinds. At HKBNES, we recognize that technology can be a powerful catalyst to empower organizations and communities. By rolling out cutting-edge connectivity technologies and working to make the latest innovations accessible at competitive costs, we aim to support our customers in transforming challenges into new opportunities.
With relatively favorable labor market conditions, we have been carefully expanding our fiber network to strengthen Hong Kong’s digital infrastructure for the future. Over the past few years, we invested over HK$5 billion, to grow our network by 20%.
Rather than pull back during periods of uncertainty, we remain focused on our mission to empower Hong Kong’s competitiveness through technology innovations. By deepening public-private partnerships and supporting schools and NGOs with flexible solutions, we strive to play our part in enabling shared prosperity. Looking ahead, we will continue adopting a customer-centric approach and leveraging technology innovations to help both organizations and communities emerge stronger.
Hong Kong’s long-term competitiveness depends on continued investment in our digital future
The path forward remains unclear, but where willingness to change prevails over risk aversion, rewards will follow. Businesses helping communities embrace long-term progress, not short-term deterrents, will find the greatest success over time.
While uncertainties remain, supportive government policies are helping transform this period into one of opportunity. The Hong Kong government recently announced a HK$29 billion SME funding scheme to provide loans at a concessionary interest rate, offering much needed capital to power private sector growth. They have also invested billions into digital infrastructure programs as part of the city’s Smart City Blueprint, positioning Hong Kong as a regional tech hub.
Perhaps most significantly, the unprecedented developments unfolding in the Greater Bay Area are set to open huge new prospects across industries from fintech to healthcare. With a combined GDP of over $13 trillion, the GBA promises to be a global economic powerhouse. At HKBNES, we’re excited to leverage our expertise and robust fiber network to capture opportunities arising from strengthened Hong Kong-Mainland collaboration.
If we embrace these pillars of support with our renowned spirit of enterprise, I am confident of Hong Kong’s best years remain ahead. Our collective efforts to nurture skills, innovate through technology and leverage the GBA’s rise can fuel a new era of sustainable shared prosperity for our city and its people.
