Internet rewires Hong Kong, contributes 5.9% to economy
By Enterprise Innovation Editors | 2011-05-08
The Internet had contributed an approximate 5.9% or HK$96 billion to Hong Kong’s economy in 2009, in a new development that underscores the Internet’s importance in a country’s economic development.
The report offers an inside look at the Internet’s profound impact on Hong Kong’s core industries, such as trade and financial services. The Internet has rewired businesses in these sectors, allowing them to change the way they interact with customer as well as to streamline and grow their operations around the world. The Internet has also empowered Hong Kong’s millions of small and medium enterprises, which account for 50 percent of the economy, to grow beyond Hong Kong’s borders and market their products and services to global customers.
The report is the first in Hong Kong and in Asia to identify the size and growth of the Internet economy. It was commissioned by Google Hong Kong but was researched and written independently by BCG. The aim of the report is to understand how the Internet helps power Hong Kong’s economy and society.
Samson Tam Wai Ho, JP., member of Hong Kong’s Legislative Council for Information Technology, said: “With over 4.8 million Internet users and 82% household broadband penetration in Hong Kong, the Internet is improving Hong Kongers’ quality of life and generating huge potential for businesses. Looking ahead, I encourage closer collaboration among all stakeholders; including government, industry and academia, to create a nurturing environment for the Internet economy to develop, thus ensuring a leading role for Hong Kong in Asia’s digital future.”
David Dean, global leader – technology, media and telecommunication practice, The Boston Consulting Group, said: “People think of Hong Kong as a trade and financial center and not necessarily as a leader in e-commerce. Yet it’s clear from our research that the Internet is an integral part of Hong Kong success as a global trading hub. Hong Kong is now truly a “connected” harbour and the Internet will be crucial to its future economic success.”
Daniel Alegre, president of Google in Asia-Pacific, said: “Hong Kong’s bet on the Internet has clearly paid off -- not just in terms of broadband speed and accessibility but in real economic benefits to core industries like trade and finance as well as millions of small and medium enterprises. It’s clear from this report that an investment in the Internet is an investment in the broader economy.”