Industry leaders have called for an urgent overhaul of Hong Kong’s trade ecosystem, stressing that the city must accelerate its shift from paper-based processes to digital solutions to defend its status as a global hub against rapidly advancing rivals.

The call to action came on Monday at an event co-hosted by the Trade Development Council and attended by more than 200 small to medium-sized enterprises (SMEs) attended.

Speakers at the “Digital Trade Masterclass” warned that the city could not afford to be complacent, as other regions, including mainland China and developing countries such as Thailand, were making rapid progress in digitalising their trading systems.

The consensus was that embracing digitalisation was no longer a choice but a necessity, especially as local traders navigated the crosswinds of the US-China rivalry.

The government is preparing to submit a legislative proposal next year to legally recognise electronic trade documents. The move is based on the UN’s Model Law on Electronic Transferable Records, a framework designed for the digital age.

Council chairman Frederick Ma Si-hang, recalling his early career in banking, underscored the need for change.