HKTDC boosts Hong Kong's competitive edge in high-value services

HONG KONG, July 28, 2025 - (ACN Newswire) - Digitalisation is reshaping the global economy, and companies must embrace digital transformation to capitalise on new opportunities. The 2025-26 Budget announced that the Hong Kong Special Administrative Region (HKSAR) Government would make reference to the Model Law on Electronic Transferable Records (MLETR) advocated by the United Nations Commission on International Trade Law (UNCITRAL) and consider legislative amendments to facilitate digitalisation of trade documents. The legislative proposal will be submitted to the Legislative Council next year. The MLETR is a global standard advocated by the UNCITRAL to provide a legal framework for electronic trade documents. Aligning local legislation with standards of the MLETR is a major endeavour in promoting trade digitalisation. In line with these efforts, the Hong Kong Trade Development Council (HKTDC) and the International Chamber of Commerce Digital Standards Initiative (ICC DSI) co-hosted the “Digital Trade Masterclass” at the Hong Kong Convention and Exhibition Centre to examine the MLETR’s potential impact on Hong Kong’s cross-border trade. Industry experts shared practical insights on digital transformation, helping equip businesses with the information they need to enhance their high value-added service capabilities. More than 200 SMEs participated in the event.

As an international financial and trading centre and a leading re-export hub, Hong Kong is able to capitalise on its unique advantages to reinforce connectivity, serving as a bridge linking the mainland and global markets. It provides high-standard professional services, robust financial infrastructure and an innovative environment for international trade. The HKTDC works closely with the HKSAR Government to highlight the city’s strength in delivering high value-added services across the trade supply chain.

Speaking at the event, Prof Frederick Ma, Chairman of the HKTDC, said that with the changing trade landscape, there was no better time to reinforce Hong Kong’s competitive advantages. “Hong Kong is actively developing its digital trade ecosystem, with a focus on innovation, efficiency and international collaboration, to consolidate its competitive advantages. As digital trade becomes more common, we are committed to making sure Hong Kong businesses continue to thrive. It is also a great opportunity to reinforce our city’s role as a leading supply chain hub. The HKTDC is dedicated to helping businesses leverage innovative technologies to equip businesses to be future-ready. Our Asian Logistics, Maritime and Aviation Conference (ALMAC) examines trends in global trade and supply chains, innovation and digitalisation, while our support programmes, including Transformation Sandbox, help enterprises scale up their capabilities in key areas, including digital transformation and supply chain solutions, to empower SMEs and start-ups to benefit from digital trade.”

Pamela Mar, Managing Director of the ICC DSI, believes Hong Kong, as an international trade and logistics hub already aligned with global standards, will lead Asia’s future digital trade development by remaining competitive and resilient amid a shifting global landscape. “Finance, trade and logistics make up over 45 % of Hong Kong’s economy, so accelerating digitalisation in these sectors will have a positive economy-wide impact.”, said Pamela Mar. “Hong Kong is well-positioned to become a leader in this space by aligning global standards and building on its strength as a trusted hub. The adoption of MLETR is a vital step, providing legal certainty for electronic documents like bills of lading, while streamlining processes and enhancing traceability. But legal reform is only the beginning — even greater gains lie in the private sector stepping up its digital transformation, which can be enhanced by Web3 technologies.”

Andy Lam, Deputy Secretary for Commerce and Economic Development of the HKSAR Government, said, “The HKSAR Government is committed to fostering an efficient business environment and maintaining the international competitiveness of Hong Kong. Facilitating the digitalisation of trade documents is part of this strategy. We anticipate that the industry would actively provide feedback and allow the Government to formulate a legal framework that is in line with the needs of the industry, on which basis the industry may propose different technical solutions. On the other hand, the Government is also pressing ahead with Phase 3 of the Trade Single Window, which will not only facilitate the industry in their submission of business-to-government trade documents such as import and export declarations, but will also connect with the Hong Kong Monetary Authority (HKMA)'s Commercial Data Interchange (CDI) to facilitate banks in accessing relevant data to process trade financing.”

Industry experts discuss challenges in trade digital transformation

Accelerating digital transformation across every link of the supply chain introduces unique challenges. At the Masterclass, the conference brought together specialists in digital trade finance, electronic bills of lading, digital freight and logistics, and digital retail supply chain management to share their practical experience and insights working on digital transformation.

Kenise Sin, Senior Data Analyst in the Financial Infrastructure Department at the HKMA, explained: “SMEs’ access to trade finance has long been hindered by different pain points in the process. For instance, the heavy reliance on paper-based documents has led to inefficiencies and difficulties in tracking and verifying the transactions.” She added that HKMA aims to formulate a digitalisation roadmap for sea, road and air transportation cargo data by the end of this year, integrating cargo data sources across jurisdictions with the HKMA’s CDI, to enhance data sharing. In the coming two years, the HKMA will also work with the Airport Authority Hong Kong, the Transport and Logistics Bureau as well as pilot banks to leverage cargo data and CDI to improve digital trade finance.

Erik Kwok, Head of Technology and Operations at Air8 — which develops a supply chain finance platform for cross-border trade — echoed these concerns: “Many small to medium-sized exporters struggle to secure funding due to inadequate data for credit assessments, hindering their ability to compete globally. These obstacles are compounded by insufficient support for risk management strategies, leaving SMEs vulnerable in a rapidly evolving market.”

Another guest speaker, Candy Chan, Product Manager at IQAX, outlined how digitalising bills of lading can save both time and costs, boosting the efficiency of the entire trade ecosystem. She said many banks, freight forwarders, and customs systems still operate on fragmented digital platforms and lack interoperability. Blockchain, she argued, can bridge these silos: “Each trading partner has unique operational needs when adopting blockchain networks in digital platforms. In cross-border trade, trading and shipping documents are exchanged, and digitalised documents within a blockchain network can solve trust issues within and across networks, backed by MLETR.”

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About HKTDC
The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong's trade. With over 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit:www.hktdc.com/aboutus.