In the past few years, competition has greatly intensified, largely from the Mainland which enjoys the advantages of a rich supply of IT engineers, relatively cheap cost of labour and a huge consumer market.Competition is especially keen in IT technologies, online games and entertainment, where Hong Kong companies find it difficult to compete both on price and flexibility to adapt to local tastes.

Competition is a two-edged sword, as it also presents good opportunities. With globalisation and a fast-growing Mainland economy, the survival tactics for Hong Kong companies would include partnering with our counterparts in the Mainland, enabling us to leverage their IT talent pool and collaborate to produce rich product range. As Hong Kong is an international city, we are well positioned to join hands with overseas IT business partners to tap the Mainland market where demand continues to be strong. On the other hand, we should utilise the unique position of Hong Kong as a financial centre to play the significant role of helping Mainland IT companies raise funds and access international capital markets, as well as to break into overseas markets.

Hong Kong companies cannot be complacent. We must prepare and equip ourselves to create and capture the unique opportunities arising out of our proximity to the huge mainland Chinese market.