CMA 2022 Annual General Meeting
President Dr Allen Shi predicts Hong Kong economy will grow moderately in 2023 after resumption of quarantine-free travel
The Chinese Manufacturers’ Association of Hong Kong (CMA) organised its Annual General Meeting today (29 September). In the meeting, President Dr Allen Shi reported the works of CMA over the past year, and shared his views on economy.
Resumption of quarantine-free travel is the key to economic recovery
Although business sentiment has shown signs of improvement after the second quarter, the external environment is challenging. The negative impacts of tightened credit conditions on business investment and economic growth are emerging.
President Shi said, “The slowing global economy, soaring global energy prices and worsening inflation amid the ongoing Russia-Ukraine conflict, interest rate increases deployed by central banks and the withdrawal of financial market liquidity, and the intensifying confrontation between China and the United States, all are unfavourable for our export prospects.”
He expects that the external merchandise trade will continue to decline at a high single-digit rate for the remainder of the year. “Improvement is likely if the cross-boundary transportation disruptions between Hong Kong and the Mainland can be solved considerably in a timely manner.” Under the influence of low base effects, CMA forecasts a slight decline in Hong Kong’s exports in 2023.
On the domestic front, the gradual relaxation of local social distancing measures and the distribution of a new round of government’s consumption vouchers can simulate consumer spending. However, the decreasing wealth effects from the residential property market and stock market resulting from the interest rate rise may have a dampening effect on consumer sentiment.
President Shi described the prospects for Hong Kong’s economy in the near future as “sailing through seas”. He said, “The recovery largely depends on the progress of reconnecting Hong Kong with the rest of the world. We predict that the whole-year growth may still hover near zero in view of the poor economic performance earlier in the year. If Hong Kong can adopt quarantine-free travellers clearance and the travel restrictions between Hong Kong and Mainland can be further relaxed, the overall economic outlook may turn cautiously optimistic, and moderate growth of around 2.5% is expected for 2023.”
Promoting re-industrialisation to help industries upgrade and transform
President Shi noted that Hong Kong’s prospect, with the support of our country, remain promising. CMA has a series of plans to support industry in connecting with national development strategies, and among them, promoting the development of re-industrialisation and assisting in innovation and upgrade of the manufacturing industry are its core tasks.
To strengthen Hong Kong’s commercialisation capability, CMA advocates the development of pilot-manufacturing transformation service. “Our subsidiary CMA Testing is actively starting to expand services in this area. We also plan to set-up a large-scale pilot plant centre in the Northern Metropolis in the future,” said President Shi.
To encourage SMEs to achieve the vision of carbon reduction, President Shi also announced that CMA will launch an ESG+ Pledge Scheme, and a kick-off ceremony will be held in November.
Assisting businesses in seizing opportunities brought by Mainland domestic sales market
At the meeting, Dr Shi also reported that CMA has launched several new initiatives to help SMEs tap into the Mainland domestic sales market over the past year, including the “Hong Kong Selection: Shopping in GBA Charity Live-streaming Activity” organised by CMA and the Hong Kong Brand Development Council. CMA also plans to lead Hong Kong companies and brands into GBA cities in the Mainland for product showcases and promotion upon resumption of quarantine-free travel.
Domestically, CMA will organise five expositions this year - including the upcoming Hong Kong Food Carnival, Hong Kong Brands and Products Expo and Online HKBPE - to promote local consumption.
President Dr Shi also expressed his hope that the government would consider incorporating the suggestions of CMA into the coming policy address. These include reserving land in the northern New Territories to build a base for Hong Kong’s advantageous industries, setting up a “buffer zone” to enable specific talents to travel freely between Shenzhen and Hong Kong, and establishing performance indicators for I&T and manufacturing industry development.
Other CMA office-bearers attending the AGM today included Legislative Council Representative the Hon Ng Wing Ka, Executive Vice President Dr Wingco Lo, Vice Presidents Mr Simon Wong, Mr Dennis Ng Kwok On, Mr Jackson Leung, Mr Calvin Chan, Mr Robert Lok, and Honorary President Dr Michael Chan.
For CMA’s Hong Kong Economic Outlook for 2023, please click here
President Dr Allen Shi delivered a speech at 2022 Annual General Meeting
The CMA office-bearers posed for a photo at 2022 Annual General Meeting
(front row, left to right) Vice President Mr Dennis Ng Kwok On, Executive Vice President Dr Wingco Lo, President Dr Allen Shi, Legislative Council Representative the Hon Ng Wing Ka, Vice Presidents Mr Simon Wong and Mr Jackson Leung
(back row) Honorary President Dr Michael Chan (second left), Vice Presidents Mr Calvin Chan (third left) and Mr Robert Lok (third right)
Resumption of quarantine-free travel is the key to economic recovery
Although business sentiment has shown signs of improvement after the second quarter, the external environment is challenging. The negative impacts of tightened credit conditions on business investment and economic growth are emerging.
President Shi said, “The slowing global economy, soaring global energy prices and worsening inflation amid the ongoing Russia-Ukraine conflict, interest rate increases deployed by central banks and the withdrawal of financial market liquidity, and the intensifying confrontation between China and the United States, all are unfavourable for our export prospects.”
He expects that the external merchandise trade will continue to decline at a high single-digit rate for the remainder of the year. “Improvement is likely if the cross-boundary transportation disruptions between Hong Kong and the Mainland can be solved considerably in a timely manner.” Under the influence of low base effects, CMA forecasts a slight decline in Hong Kong’s exports in 2023.
On the domestic front, the gradual relaxation of local social distancing measures and the distribution of a new round of government’s consumption vouchers can simulate consumer spending. However, the decreasing wealth effects from the residential property market and stock market resulting from the interest rate rise may have a dampening effect on consumer sentiment.
President Shi described the prospects for Hong Kong’s economy in the near future as “sailing through seas”. He said, “The recovery largely depends on the progress of reconnecting Hong Kong with the rest of the world. We predict that the whole-year growth may still hover near zero in view of the poor economic performance earlier in the year. If Hong Kong can adopt quarantine-free travellers clearance and the travel restrictions between Hong Kong and Mainland can be further relaxed, the overall economic outlook may turn cautiously optimistic, and moderate growth of around 2.5% is expected for 2023.”
Promoting re-industrialisation to help industries upgrade and transform
President Shi noted that Hong Kong’s prospect, with the support of our country, remain promising. CMA has a series of plans to support industry in connecting with national development strategies, and among them, promoting the development of re-industrialisation and assisting in innovation and upgrade of the manufacturing industry are its core tasks.
To strengthen Hong Kong’s commercialisation capability, CMA advocates the development of pilot-manufacturing transformation service. “Our subsidiary CMA Testing is actively starting to expand services in this area. We also plan to set-up a large-scale pilot plant centre in the Northern Metropolis in the future,” said President Shi.
To encourage SMEs to achieve the vision of carbon reduction, President Shi also announced that CMA will launch an ESG+ Pledge Scheme, and a kick-off ceremony will be held in November.
Assisting businesses in seizing opportunities brought by Mainland domestic sales market
At the meeting, Dr Shi also reported that CMA has launched several new initiatives to help SMEs tap into the Mainland domestic sales market over the past year, including the “Hong Kong Selection: Shopping in GBA Charity Live-streaming Activity” organised by CMA and the Hong Kong Brand Development Council. CMA also plans to lead Hong Kong companies and brands into GBA cities in the Mainland for product showcases and promotion upon resumption of quarantine-free travel.
Domestically, CMA will organise five expositions this year - including the upcoming Hong Kong Food Carnival, Hong Kong Brands and Products Expo and Online HKBPE - to promote local consumption.
President Dr Shi also expressed his hope that the government would consider incorporating the suggestions of CMA into the coming policy address. These include reserving land in the northern New Territories to build a base for Hong Kong’s advantageous industries, setting up a “buffer zone” to enable specific talents to travel freely between Shenzhen and Hong Kong, and establishing performance indicators for I&T and manufacturing industry development.
Other CMA office-bearers attending the AGM today included Legislative Council Representative the Hon Ng Wing Ka, Executive Vice President Dr Wingco Lo, Vice Presidents Mr Simon Wong, Mr Dennis Ng Kwok On, Mr Jackson Leung, Mr Calvin Chan, Mr Robert Lok, and Honorary President Dr Michael Chan.
For CMA’s Hong Kong Economic Outlook for 2023, please click here
President Dr Allen Shi delivered a speech at 2022 Annual General Meeting
The CMA office-bearers posed for a photo at 2022 Annual General Meeting
(front row, left to right) Vice President Mr Dennis Ng Kwok On, Executive Vice President Dr Wingco Lo, President Dr Allen Shi, Legislative Council Representative the Hon Ng Wing Ka, Vice Presidents Mr Simon Wong and Mr Jackson Leung
(back row) Honorary President Dr Michael Chan (second left), Vice Presidents Mr Calvin Chan (third left) and Mr Robert Lok (third right)