'HK's innovation, connectivity draw in foreign firms'

Overseas firms said on Thursday they plan to further expand in Hong Kong due to the city's rapidly developing innovation and technology ecosystem as well as its connectivity with the world.

The remarks came as Chief Executive John Lee announced the city welcomed 413 global companies to set up shop or expand in the SAR in the first six months of the year, an increase of 10 percent year-on-year.

Together, they are estimated to bring in over HK$53 billion in foreign direct investment, while creating over 8,600 new jobs, according to InvestHK, the government's investment promotion agency.

Speaking in a group interview, Danish logistics giant, DSV – which has 14 locations of operation in the SAR – said it might also consider expanding into the Northern Metropolis, as it is positioned as a future logistics hub linking the city and the mainland.

"From a development perspective, I know logistics is going to be a key part of that development, and it makes sense with it being right on the border and that we have some kind of facility there," said Nina Barton, director of sustainability for Asia Pacific at DSV.

Citing the latest geopolitical changes that have weighed on the industry over the past two years, the logistics veteran also noted that the city can gain new opportunities under the shifting global trade patterns due to its strong connectivity with many parts of the world.

"I'm sure everybody has heard about the 'China Plus One, Plus Two, Plus Three' [strategies], so we have a lot more sourcing coming out of Southeast Asia, as well as India, and into Bangladesh," she said.

"Hong Kong actually can benefit from this because it's in the middle and a lot of that movement between China and into Southeast Asia via Hong Kong is pivotal. So it's a great opportunity for Hong Kong to take advantage of that as it goes into newer markets like the Middle East and Africa," she added.

Sean Abbott, director of Apac banking and infrastructure at American cross-border payment firm, Payoneer, said the city's push in developing fintech – including the government's plans to promote artificial intelligence and build data centres – is attracting firms to do business here.

"Hong Kong really is in the middle of Asia, so if you have a regional hub here, it's a really well-placed spot to promote not just the China corridor but also the Asia corridor as a whole," Abbott said.

Edited by Aaron Tam ...