Mainland holds key to Hong Kong growth story
City should tap rise of consumption and outward investment across the border to sharpen edge amid concerns over a slide in competitiveness
Pessimism over a slide in Hong Kong's competitiveness is deepening in the business community, but some of its leading figures say the city can shore up its position by tapping opportunities created by mainland consumers and outward investment.
"The rise of consumption in China - I see this as a huge opportunity for Hong Kong," Tung Chee-chen, the chairman of Orient Overseas (International), told the annual business summit of the Hong Kong General Chamber of Commerce yesterday.
Tung and other business figures were commenting as a chamber survey released at the forum found a record 68 per cent of the respondents believed the city's competitiveness was declining.
The proportion of respondents in the annual survey holding this view has been rising steadily since 2008. Only 4.5 per cent of them think the city's standing is improving, according to the poll of 369 Hong Kong companies, including trading firms and financial services companies.
"You're going to see a gradual erosion of Hong Kong's long-term competitiveness. I hope I'm wrong," said Andrew Brandler, a former chief executive of utility CLP Holdings, who expressed one of the more bearish opinions at the summit.
David O'Rear, the chamber's chief economist, said: "A lot of that has to do with wages, which are rising."
The survey found 61.3 per cent of the responding companies raised wages this year and 49.2 per cent expected increases next year.