Hong Kong lags in digital technology despite top infrastructure, says survey

A high-speed internet connection is not enough to lift companies into the digital age as the failure of Hong Kong companies to create fruitful digital partnerships with other firms has meant the city lags behind Singapore in its application of digital and online technologies to boost business, a survey has found.

The survey, conducted by the Economist Intelligence Unit and commissioned by telecommunications firm Telstra, placed Hong Kong in fourth place in Asia behind Singapore, South Korea and Japan for digital transformation – defined as the use of digital technology to improve processes and operating models.

“Hong Kong also has very good digital infrastructure... though the partnerships, the ecosystem that Hong Kong companies create with government, with each other, cross-border and with other countries could do with some improving,” said Darrin Webb, chief operating officer global and managing director for North East Asia for Telstra.

EIU surveyed 660 senior executives in 11 Asian markets across six industries alongside 210 executives in the UK, US and Australia to serve as a comparison. Singapore was the only Asian market in line with the three Western countries surveyed, ranking behind the US and ahead of the UK and Australia.

Countries and regions were ranked on digital infrastructure, human capital and industry connectivity to create EIU’s first Asian Digital Transformation Index.

Digital infrastructure was defined by the survey to include access and usage of information and communication technology, 4G coverage and smartphone penetration. Industry connectivity includes access to open data, collaboration between companies and access to e-commerce.

China ranked in seventh place overall.