Hong Kong urged to speed up digital shift to protect global trade status Industry leaders have called for an urgent overhaul of Hong Kong’s trade ecosystem, stressing that the city must accelerate its shift from paper-based processes to digital solutions to defend its status as a global hub against rapidly advancing rivals. The call to action came on Monday at an event co-hosted by the Trade Development Council and attended by more than 200 small to medium-sized enterprises (SMEs) attended. Speakers at the “Digital Trade Masterclass” warned that the city could not afford to be complacent, as other regions, including mainland China and developing countries such as Thailand, were making rapid progress in digitalising their trading systems. The consensus was that embracing digitalisation was no longer a choice but a necessity, especially as local traders navigated the crosswinds of the US-China rivalry. The government is preparing to submit a legislative proposal next year to legally recognise electronic trade documents. The move is based on the UN’s Model Law on Electronic Transferable Records, a framework designed for the digital age. Council chairman Frederick Ma Soi-hang, recalling his early career in banking, underscored the need for change. “Fifty years ago when I worked in banking those bills of lading were on paper,” Ma said. “We must change this aspect. It must be digitalised so that our competitiveness in the world can not only be maintained but can surpass many other places.” Local traders were facing mounting external pressures, speakers said. Ivy Tse, co-chief executive officer of the logistics platform FreightAmigo, noted that since the United States proposed its “reciprocal tariffs” on countries, many businesses had been grappling with the fallout. About 60 per cent of regional traders were now shouldering tariff costs of 20 per cent or more, she said. The geopolitical friction added another layer of complexity to an industry already struggling with operational inefficiencies. Pamela Mar, managing director of the International Chamber of Commerce Digital Standards Initiative, cautioned that while Hong Kong had great advantages, it could not be complacent. She pointed to the rapid progress in digital trade systems being made on the mainland as well as in developing countries such as Thailand as evidence of a fast-moving landscape. “Finance, trade and logistics make up over 45 per cent of Hong Kong’s economy, so accelerating digitalisation in these sectors will have a positive economy-wide impact,” Mar said. The Hong Kong Monetary Authority is spearheading a project to centralise logistics data. Kenise Sin, a senior data analyst at the authority’s financial infrastructure department, said “Project CargoX” aimed to help banks accelerate the financing process. “The first [goal] is to solve the biggest pain point for banks by providing track and trace real-time data, allowing the bank to know where the goods are, ensure the authenticity of the goods, and then accurately estimate the value of the cargo to lower the financing risk.” Technology firms also showcased a new generation of platforms using blockchain and artificial intelligence to digitalise bills of lading and create trusted “digital footprints” for SMEs to secure loans. Andy Lam Siu-hong, a deputy secretary for commerce and economic development, said the government was committed to upgrading the city’s business infrastructure to keep it ahead of the game. “Together, we shall unleash the potential of our businesses by fostering trust, transparency and efficiency between trading partners across boundaries, and to reinforce Hong Kong’s edge as the world’s leading trade and logistics hub,” Lam said. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3319877/hong-kong-urged-speed-digital-shift-protect-global-trade-status (ICE HONG KONG)

Fonte notizia: South China Morning Post