The grass is greener next door

Local entrepreneurs should explore the benefits of neighbouring Hengqin New Area to initiate new businesses, the Chairman of the Asian Federation of Advertising Associations (AFAA), Raymond So, told Business Daily.
The AFAA Chairman believes that with the Hengqin New Area a primary focus of the
Guangdong provincial government for business development, local companies should explore the benefits of this special economic zone while enjoying the liberty of the MSAR.
“If I was a local entrepreneur I would register my company in Hengqin and get a branch office in Macau, enjoying a lot of subsidies and benefits,” he said.
Mr. So said that with the Hong Kong Government not “doing much to develop innovation” and with Shenzhen providing subsidies for new companies and innovation incubators, young Hong Kong people were settling in Shenzhen to start companies and live “in larger apartments with lower rents”.
“The same could happen for Macau residents, who could enjoy a better life quality in Hengqin,” he added.
He also considered that the lack of qualified human resources in the city could be resolved by attracting more qualified Hong Kong residents or Macau residents who had studied in Hong Kong.
“Hong Kong has an abundance of talent. If Macau can offer good work opportunities, compensations and career development it will attract the right people,” Mr. So said told Business Daily.

Global focus
The AFAA Chairman also advised local companies to not focus only on the local market but position themselves as South China companies with an international reach.
“In the past, maybe Macau wasn’t in an advantageous position when it came to competing with Hong Kong or Shenzhen in terms of size of business development. However, the
advancement of digital technology has levelled the playing field and Macau companies can reach the global market, with lower hurdles for expanding internationally,” Mr. So said.
He also considered that technology is a “blank canvas” for innovation, creating an equal and fertile ground for new possibilities for market disruption.
“Innovation defines the future and will be a driving force for the development of Asian
industry,” said So.
According to him, technology advancements allow innovation in unexpected areas, and he
advised entrepreneurs to consider how technology can improve existing services or create new consumer needs.
As an example, he cited the winners of the recent editions of the ECI Awards, a competition founded in New York City by the International E-Commerce Innovation Association (IECIA) to promote innovation in digital business, such as Zhai Dai Xi (Laundry For You) a smartphone app that provides on-demand laundry services.
“Zhai Dai Xi is actually changing consumer behaviour in the laundry industry and is a very good example of disruptive innovation that creates new market behaviour,” Mr. So said.
According to Mr. So the new online world allowed the appearance of sector improvement
services such as Ymm56, a mobile transportation platform that enables logistics companies to track cargo trucks and transactions, and Fabao (Pocketlawyer) an app providing legal advice through crowdsourcing.
“The logistics industry has many problems for management with owners not trusting drivers and deliverers. Ymm56 helps drivers to be better compensated and helps logistics companies be more efficient in transportation (…) Fabao shows that even legal services can be innovated through the internet, providing a platform for people to find professional legal advice,” Mr. So stated.
Innovation can even meet consumer needs in water bottles, with So giving Gululu as an example, an interactive bottle that helps parents control the amount of water consumed by their children.
“You might think this is not a great task and is a small need but it’s a great mix of tech
innovation with social media elements, with the bottle incentivising kids to consume water through an interactive cartoon character,” he concluded.