EXECUTIVE SUMMARY
The world is demanding better supply chains in the midst of COVID-19, a US-China trade war, growing economic nationalism and the rise of e-commerce. In these uncertain times, businesses and governments alike look for safe, resilient partners that can offer speed, stability and efficiency.
This paper aims to explore how Hong Kong can help meet this demand for fast, efficient and sustainable supply chains. The city has the geo-strategic location and institutional advantages to add value throughout the supply chain. Already, Hong Kong’s airport is the world’s busiest air cargo handler, its port ranks within the top 10 globally, and Hong Kong is a regional base for some of the world’s biggest logistics firms.
To ensure it maintains its position as Asia’s premier logistics, aviation and maritime hub, Hong Kong is investing in innovation, infrastructure and partnerships. Supply chain and logistics startups have been given a funding boost from the government in the latest budget round, the financial sector is growing trade financing, and a dedicated logistics and supply chain research centre is developing technological innovations to facilitate more and faster trade between Hong Kong and Mainland China. The city’s airport authority is working with partners to get the latest accreditations for speciality goods and expanding its capacity in partnership with the world’s biggest logistics and delivery firms.
Hong Kong’s government is reinforcing its existing strengths—a dependable legal system, attractive tax regime, business-friendly environment and regulatory frameworks, and an existing ecosystem of service providers—with a series of policy initiatives designed to strengthen the logistics and maritime sectors. It has introduced a tax concession bill to attract ship leasing businesses and is the first offshore jurisdiction empowered to apply to Mainland Chinese courts for interim measures relating to institutional arbitration. The city is also building on its geographic location, infrastructural connections and trade links by forming maritime and aviation pacts with Mainland China and Macao to boost ties with the Guangdong-Hong Kong-Macao Greater Bay Area.
Supply chains will continue to evolve as they respond to both macro forces and consumer demand. Hong Kong will evolve too. Investing in its people, infrastructure and innovation to create digital-first, sustainable supply chains will help ensure Hong Kong retains its status as Asia’s leading logistics hub.