HKTDC says Middle East conflict will affect exports but no need for excessive worry

While the situation in the Middle East will affect exports, there is no need to worry too much, said Executive Director of the Hong Kong Trade Development Council (HKTDC) Sophia Chong Suk-fan.

Speaking on a television program, Chong said that although Hong Kong has been actively expanding into the Middle East market in recent years -- with bilateral trade increasing by more than 30 per cent compared to the period before the pandemic -- the Middle East market accounts for a relatively small portion of Hong Kong's total trade. 

However, she noted that the current instability has brought about a chain reaction, affecting fuel prices and other factors. It is necessary to wait and see how things develop before expanding into the market, she noted.

“As businesses face higher costs, we took a hit in this aspect. However, looking at the long term, the Middle East remains an indispensable market,” Chong said.

She also pointed out that instability in the Middle East may highlight Hong Kong's stability, national support, global reach, and strong foundation, giving businesses a greater sense of security and confidence to do business with Hong Kong.

Regarding whether the full-year export growth forecast of 8 to 9 percent needs to be adjusted, she said she remains cautiously optimistic, and the first Middle East-Gulf states conference hosted by the HKTDC in the third quarter could be adjusted.

"We are bringing in some projects from the Middle East, and we are also connecting them with projects in mainland China and Southeast Asia, and finding investors for them. But due to this conflict, it is difficult for me to say at this moment whether we can really continue," she said.

To align with the National 15th Five-Year Plan, HKTDC will establish a database and provide services, including accounting and legal services, to assist mainland enterprises in “going global”. More than a hundred companies have joined, Chong said.

“We host at least 30 to 40 large-scale events throughout the year at the Convention and Exhibition Center. When the mainland companies come to Hong Kong to hold exhibitions or conferences, they can connect with these professional services and use our facilities free of charge for further development, such as setting up a company in Hong Kong and developing overseas markets,” she said.

Chong also revealed that HKTDC will soon co-host a seminar in Beijing with the Hong Kong Chamber of Commerce in China to mark the start of the 15th Five-Year Plan, inviting the Financial Secretary to speak and help mainland businesses in Hong Kong understand the opportunities brought by the plan.