HONG KONG: The Hong Kong Exporters’ Association is anticipating pricing pressures for local exporters this year amid an uncertain global economic environment.
The association’s vice-chairman Benson Pau believes that export prices will be cut by 1 to 3 percent compared to previous levels, the Hong Kong Economic Journal reported Tuesday.
Although the renminbi’s slide has helped lower the wage and production costs for entities having factories in the mainland, the gains are being offset as overseas customers are demanding price cuts, he was quoted as saying.
While prices will soften, Hong Kong’s overall export order volume is expected to edge up about 1 percent, according to Pau. The industry veteran is urging local companies to focus more on the ASEAN markets, given the liberalization in the region’s tax regime and system.
At the same time, he called on the government to take more steps to give a push to manufacturing, design and innovative industries, and help local firms connect better with international markets.
Nicholas Kwan, research director of the Hong Kong Trade Development Council, also said that export prices will be softer this year but volumes will rise, resulting in relatively stable total export value.
