Effort needed to tackle labour shortage in artisanal, technical and trades-related professions, says Towngas director
The South China Morning Post posted five key questions to interviewees in the Moving Forward series, seeking their insight on the city’s future. Here are the views of Hong Kong and China Gas (Towngas) Managing Director Alfred Chan Wing-kin
Do you think Hong Kong is still an ideal place to do business?
Hong Kong is still a blessed city for business. Despite a slowdown, the mainland’s economic growth is still at 6.5 per cent, which cannot be found in many places. China will still be a relatively dynamic place economically in the next decade. Hong Kong people need to adjust their mentality to the “new normal” when tapping into the mainland’s resources and opportunities. Although political infighting has increased, I don’t think it has damaged the fundamentals of the business environment. Hong Kong is still a safe place with low crime and low unemployment. Hong Kong still has rule of law, low corruption, good corporate governance and sound protection of intellectual property. Hong Kong is still a great stepping stone for mainland investors to purchase properties, assets and businesses.
How is your company coping with the economic downturn in Hong Kong and the mainland?
We faced a marked slowdown in gas demand on the mainland last year due to the economic slowdown and an erosion of gas’ competitiveness from the sharp drop in international oil prices and lagging cuts in regulated gas prices.
But after a 25 per cent price cut in November, our gas sales growth has rebounded to 12 per cent in the first quarter from 2 per cent last year. To boost sales, we are developing new markets arising from the expansion of China’s middle class, such as winter home heating in eastern China and gas-powered clothes drying in southwestern and eastern China.
An average family that adopts gas heating uses 10 times the gas volume of those who only use gas for cooking and bathing in the winter.
Besides, to cut costs, we have been automating the production of our gas pipes fittings. To save pipe inspection and maintenance costs, Towngas has been using drones at high-rises to check for gas pipe wear, rusting and gas leakage, besides deploying self-read smart gas meters to cut labour hours on the mainland. These initiatives require innovative thinking and fastidious implementation.
