Pandemic offers the opportunity for firms to adopt technology
- The trend is global; while many economic sectors have been harmed, business at major tech companies such as Google, Facebook and Amazon has been thriving
Hong Kong has failed to reach its potential in creating a vibrant economic sector based on innovation and technology, despite government efforts and incentives to attract companies, entrepreneurs and talent. Years of endeavour have only led to moderate success in drawing start-ups and hi-tech firms. Much-needed evolution of the economy has not happened and the traditional key industries of finance, trade and logistics, tourism and professional services still hold sway. But the coronavirus and the challenges it has brought have forced change that may prove lasting and, it is to be hoped, prompt the shift to a digital future.
The coronavirus severely hit the retail, tourism and accommodation sectors and restrictions on social gathering have forced, for the time being, changes for restaurants, pubs and bars, fitness centres and cinemas. Job cuts have led to the worst unemployment in a decade. The government hopes a large number of the 30,000 jobs it wants to create as part of a relief package to generate employment and get the economy back on track will involve technology and innovation talent. With businesses adapting to the new reality and having found benefits from digitalisation of work practices and operations, there will be particular demand for hires in innovation, data, business analysis and project management.
Mainland China, which has a markedly more digitised economy than Hong Kong’s, has experienced a massive upsurge in online business during the outbreak. The trend is global; while many economic sectors have been harmed, business at major tech companies such as Google, Facebook and Amazon has been thriving.
Hong Kong’s economic model has to evolve if it is to have sustainable growth and prosper. Authorities recognise that; Financial Secretary Paul Chan Mo-po said when delivering the budget in February that technology and innovation were “an important growth engine for future economic development”. Covid-19 has presented an opportunity and authorities, entrepreneurs, business leaders and investors have a vital role in building a strong tech industry.