HKPC unveils strategies for transforming Hong Kong’s manufacturing sector

The report highlights measures that will reshape the industry amidst ongoing challenges.

The Hong Kong Productivity Council New Industrialisation (HKPC New Industrialisation), in collaboration with Deloitte China, unveiled key findings from the “Hong Kong Manufacturing Industries Development Study Report.”

Hong Kong’s manufacturing sector faces four major challenges: rising competition, global supply chain restructuring, small order volumes with customisation becoming the new normal, and sustainability demands.

Based on HKPC New Industrialisation’s analysis, enterprises must take "three major directions and ten major measures" to achieve transformation and upgrading in the manufacturing industry and develop New Productive Forces.

The first major direction is “pioneering new manufacturing models”. Under this direction, HKPC outlined three key measures: implementing digital transformation, enabling green manufacturing, and promoting flexible production through "microfactory" models.

Under the second direction, “exploring new growth engines”, HKPC identified four measures: optimising product development markets, expanding upstream and downstream industrial chains, commercialising patents, and commercialising production technologies.

Lastly, for the third direction, “realising value chain transformation”, enterprises should focus on measures such as developing product design capabilities, establishing brand diversification strategies, and expanding the scope of product or technology applications.

In addition, HKPC recommends seven industrialisation strategies, including developing “microfactory” models according to local conditions, strengthening the functions of Hong Kong headquarters, and cultivating the Intellectual Property (IP) industry.

The other strategies include developing green manufacturing services, accelerating the recruitment of technical talent, creating a large language model for the manufacturing industry, and promoting a new image of the manufacturing industry.