【Hong Kong Got Industries!】 Hon Sunny Tan: Focusing on Innovation & Technology and Attracting More High-End Manufacturing to Hong Kong Over 40 Companies Participate in HKPC’s “Hong Kong Got Industries: Strategic Alliance Showcase” Prominently Supporting “Made in Hong Kong” with Notable Achievements

(Hong Kong, 8 January 2024) To better acquaint the public about Hong Kong's progress and achievements in new industrialisation development, HKPC held the "Hong Kong Got Industries: Strategic Alliance Showcase" today. Professor Sun Dong, Secretary for Innovation, Technology and Industry, and Hon Sunny Tan, Chairman of HKPC, officiated the event. The event brought together entrepreneurs from over 40 multinational and local Hong Kong companies across industries. These leaders shared how HKPC’s successful efforts enabled them to progress forwards new industrialisation.

The "Hong Kong Got Industries: Strategic Alliance Showcase" convened a dynamic assembly of industry leaders, Government officials, and academic experts. Attendees enthusiastically extolled the value of engaging with stakeholders across sectors and the inspirations arising from meaningful interactions. They commended the HKSAR Government for enhancing funding schemes supporting new industrialisation and applauded HKPC’s instrumental assistance in securing funds and implementing innovation and technologies (I&T) to transform and upgrade their business operations. The collaborative and constructive exchanges at the event have been cited as a driving force for continued advancement and maturity of new industrialisation.

Hong Kong Surges Ahead with New Industrialisation, Catalysing High Quality Economic Development and Curating Itself as an International I&T Centre

In staunch support of the nation’s strategic push for economic diversification through new industrialisation, the HKSAR Government has actively promoted corresponding policies in recent years. These concerted efforts have yielded encouraging results; the index of industrial production for manufacturing industries as a whole rose by 4.4% in the third quarter of 2023¹. This auspicious development marks a significant milestone in reinvigorating the economy and cementing Hong Kong's position as a global epicenter of I&T.

During his speech at the event, Professor Dong SUN, Secretary for Innovation, Technology and Industry, expressed gratitude for the HKPC's more than half-century of work enhancing productivity in Hong Kong's various industries through advanced technologies and innovative services. HKPC has been instrumental in driving the territory's new industrialisation efforts in recent years. He was pleased to see how, through the support of HKPC and funding schemes, Hong Kong enterprises have significantly improved production efficiency by upgrading and transforming their operations with technology. This has helped bolster the reputation of the “Made in Hong Kong” brand while showcasing the achievements of new industrialisation initiatives.

Professor SUN mentioned that the “Hong Kong Innovation and Technology Development Blueprint” released by the Government in 2022 identified implementing new industrialisation as a key priority. In Policy Address announced last year, the Chief Executive also outlined measures to continuously advance new industrialisation, such as optimising the “New Industrialisation Funding Scheme”, establishing a HK$10 billion “New Industrialisation Acceleration Scheme”, and creating a “New Industrialisation Development Office”.

Professor SUN also announced the official launch of optimisations to the “New Industrialisation Funding Scheme” that allow participating companies to have three projects in total simultaneously to receive total maximum funding of HK$45 million. He encouraged attendees to act promptly and submit applications.

Hong Kong's New Industrialisation Spotlights I&T, Attracting More High-end Manufacturing Suited for Local Development

Hon Sunny Tan stated that Hong Kong's new industrialisation is not about reintroducing land- and labour-intensive manufacturing, but rather focusing on areas such as the Internet of Things, artificial intelligence (AI), new materials, and smart production processes. The aim is to attract high-end manufacturing suitable for Hong Kong's development by promoting the transformation and upgrading of traditional manufacturing industries through I&T to enhance their competitiveness. As a partner in the HKSAR Government’s initiative to propel Hong Kong’s new industrialisation, HKPC has been collaborating with local enterprises, having implemented over 1,200 smartification projects in the Greater Bay Area (GBA), encompassing smart upgrading in more than 25 industries.

Hon Sunny Tan further noted that the GBA, with its extensive spectrum of application scenarios and formidable capacity to commericialise scientific research outcomes, furnishes tremendous opportunities for Hong Kong. The city’s advanced manufacturing and modern service sectors are poised to occupy significant roles in the GBA’s industrial value chain.

Moving ahead, HKPC will fully support the HKSAR Government's policies in "Competing for Talents and Enterprises", assisting more prospective companies in establishing operations in Hong Kong with professional support and connecting them to business opportunities. It will help spearhead strategic emerging industries to set up manufacturing facilities and smart production lines locally. Furthermore, it will facilitate the connections among the enterprises and local companies, especially small and medium enterprises (SMEs), by establishing business networks to better integrate into Hong Kong’s as well as the nation’s development blueprint.

Digital and Smart Manufacturing Boosts Profitability, Burnishing Hong Kong’s Esteemed “Made in Hong Kong” Brand

HKPC has steadfastly assisted local industries in their pursuit of innovation and transformation. During the event, HKPC specifically invited representatives from over 40 companies to share their success stories. These enterprises have notably capitalised on the “New industrialisation Funding Scheme” or “Research and Development Cash Rebate Scheme” facilitated by HKPC to upgrade and transform their business processes. These include high-end electronic products, food processing, high-strength building materials, emerging nanomaterials, GMP Chinese medicines, and health products. By seizing new industrialisation opportunities and technologies, many have significantly enhanced their performance and profitability.

One prominent success story is SUNNY HOSE CO. LTD (Sunny Hose), a company founded by a Japanese-owned enterprise that set up a factory in Hong Kong with the goal of achieving smart production. By integrating digital production control, data acquisition, remote monitoring, and industrial AI, Sunny Hose synergised legacy and new machinery, significantly improving efficiency and quality in its production process by over 40% waste reduction. This has not only boosted profitability and customer satisfaction, but also enabled the company to meet relevant ESG standards.

Another case of 2 PLUS 3 (HK) INDUSTRIAL COMPANY LIMITED, a proudly “Made in Hong Kong” brand. With escalating brand recognition, its production system for corn juice was operating at near-maximum capacity. Consequently, they enlisted HKPC’s assistance in establishing a smart production line to enhance capacity and output stability. Aided by HKPC and the Innovation and Technology Commission's “New industrialisation Funding Scheme”, the company increased production capacity ninefold and refined sterilisation techniques to maintain its commitment to additive- and preservative-free products. This extended machinery lifespan while reinforcing market confidence in “Made in Hong Kong,” garnering positive endorsements for the brand.

Traditional Businesses Excel in Transformation with New industrialisation and Innovation

Traditional industries can indeed inherit and evolve through new industrialisation. WO LEE GREEN SOLUTIONS LIMITED has been established since 1954 and possesses over 60 years of steel supply expertise. However, welding medium and high strength steel had relied heavily on labour-intensive manual work in harsh construction site environments, resulting in a chronic shortage of skilled welding professionals. With HKPC’s assistance, the company has adopted digitalisation technologies to transform experienced welders’ expertise into standardised visual procedures. Welders now only need to manipulate robotic arms via tablet computers to perform welding with optimal craftsmanship parameters. This not only ensures a safer working environment but also helps attract newcomers to the industry, preserving valuable technical skills for the long haul.

WAI YUEN TONG MEDICINE HOLDINGS LIMITED, a revered local business, also exemplifies how new industrialisation can boost the business to new heights. With HKPC’s support, the enterprise obtained Good Manufacturing Practice for Chinese Medicines certification and streamlined previously manual medicine packaging processes by implementing an automated system that improved efficiency sixfold. By integrating intelligent robotics, machine vision systems, mechanical structures, and control software, the system satisfies the industry’s complex and stringent Chinese medicine packaging requirements. This enables the brand to continue its legacy and foster growth by leveraging advanced technology.

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¹Provisional statistics on index of industrial production and producer price index for industrial sector for third quarter of 2023 [14 Dec 2023]: https://www.censtatd.gov.hk/en/press_release_detail.html?id=5307

Professor Sun Dong, JP, Secretary for Innovation, Technology and Industry (Middle), Hon Sunny Tan, Chairman of HKPC (Right) and Mr Mohamed D. Butt, MH, Executive Director of HKPC (Left) officiated the opening ceremony of the “Hong Kong Got Industries: Strategic Alliance Showcase”.

Professor Sun Dong, JP, Secretary for Innovation, Technology and Industry delivered an opening speech.

Hon Sunny Tan, Chairman of HKPC gave his welcoming remarks

The officiating guests joined representatives from over 40 HKPC clients and “Made in Hong Kong” local enterprises for a group photo, together witnessing the progress and outcomes of the new industrialisation transformation.