Next Step for Asia’s Top City: Riding the Innovation Wave to Venture Overseas
Jonathan Lamport is the Chamber's Legco Representative
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The Hong Kong General Chamber of Commerce recently released the Asian Cities Internationality Index (ACII) 2026. Hong Kong retained its position as Asia’s top international city with a score of 74.6, and firmly secured first place in the “Business and Economy” domain. However, what warrants deeper reflection from the business community is whether this competitive advantage can be sustained. In a complex and volatile external environment, “certainty” is exactly what businesses need most. The First Five-Year Plan announced last month, alongside the new Policy Address, have provided clear direction for the market.
Among recent initiatives, two policy tools targeting SMEs are particularly noteworthy. The first is the Hong Kong Monetary Authority’s enhancement of the Commercial Data Interchange (CDI), aimed at breaking down data silos. If smoothly integrated with the Shanghai trade data pilot programme and ASEAN electronic port systems, SMEs could enjoy reduced paperwork and shorter approval times for financing and settlement, making cash flow management significantly easier.
The second is the increase of the BUD Fund cap to HK$150,000 to specifically subsidise AI projects, alongside expanding the geographical scope of funding to emerging markets such as Uzbekistan and Qatar. For SMEs with limited resources and concentrated markets, this not only provides a necessary boost to pilot AI initiatives but also serves as substantial support to enter Central Asia and the Middle East as a risk diversification strategy.
However, these policy tools alone are not enough. Policy is the boat, and execution is the oar; a boat without an oar can never reach its destination. It is said that when SMEs venture into emerging markets alone, they face objective risks — such as varying regulations, currency fluctuations, and a lack of established business networks — that cannot be fully mitigated by a single entity. Therefore, the Government must assume the role of a “super facilitator”. By leveraging the momentum of large corporations expanding globally, the Government can integrate SMEs into upstream and downstream supply chains, forming a “joint fleet” to expand overseas together. Collective strength will always outmatch isolated efforts.
Rankings are scores given by others, but actual business performance is the true test of our capabilities. Overseas markets are brimming with opportunities, and the business community ultimately values execution. Streamlining the division of labour among ETOs, the HKTDC and InvestHK will significantly improve the effective execution of the Government’s new policies. This will ensure that data and capital operate in tandem, ultimately ensuring that businesses entering Hong Kong achieve new and improved milestones.
Jonathan Lamport
