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‘Make in India’ roars: Hong Kong shifts industrial base from China to India

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Image source: mediaroom.hktdc.com

Hong Kong: Even as it promotes Hong Kong as the gateway for Indian companies to the Chinese markets, the Hong Kong Trade Development Council (HKTDC) is promoting India as an alternative manufacturing base for its industries based in China, states a research report.

“In recent years, the sustained rise in production costs on the Chinese mainland has eroded the profit margins of many Hong Kong companies with labour-intensive factories located on the Chinese mainland, prompting them to seek alternative production bases elsewhere,” the report states.

“In a nutshell, India offers many advantages as an alternative production base, along with the added advantage of having a domestic market of great potential,” notes the report.

Most of the manufacturing units in Hong Kong migrated to China to take advantage of the low costs after the region was handed over to the latter by the British in 1997.

Some of the multi-storeyed buildings that once housed garment units are now used as offices or are lying vacant.

With manufacturing units shifting base, Hong Kong has turned into a business services hub.

According to HKTDC’s report, India was the world’s second biggest exporter of textile and garment products in 2014, shipping goods worth $36 billion, behind China’s exports worth a whopping $399 billion.

The report also cites the lower import tariff levied on Indian goods by the US and the European Union (EU).

India has been an active player in Asia, securing free trade agreements (FTAs) inside and outside the region. India has also been in talks on an FTA with the EU.

Further, US import tariff rates for Indian yarn-related products range between zero percent and 2.7 percent. The weighted average import tariff rates of the EU and US on non-agricultural products from India are 4.5 percent and 2.5 percent, respectively.

On the demographic profile, the report states that the Indian median age of 27 is way below China’s 37, ensuring a good supply of young workers for many years to come.

“As an aside, China recently announced the abandonment of its one-child policy in response to the country’s ageing population, though the effect would not be appreciable over the short-to-medium term,” the report added.

According to HKTDC, the Indian wage levels are comparatively lower than what is paid in China. Furthermore, labour productivity in India is going up while that in China has been declining.

The report also cites the presence of industrial estates with plug and play facilities in India for Hong Kong manufacturers to relocate their factories rather than getting bogged down in land acquisition and other issues.

The HKTDC report cites the huge domestic market available in India for Hong Kong manufacturers apart from the country being an alternative production site for overseas markets.

Meanwhile, businessmen in Hong Kong said that the region is the best route to do business with the Chinese.

“We know the people who have shifted operations out of Hong Kong to China. It is better for Indian companies to set up an office here than landing directly in China,” Noordin A Ebrahim, director of Masterful Ltd, told reporters.

Referring to credit rating agency Moody’s Investors Service to cut Hong Kong’s long-term debt outlook due to its close link to China, Ebrahim said: “I feel it is a political judgement rather than financial.”

Ebrahim is of the view that China would not do anything to shake the confidence of the Hong Kong business community and would like to see that peace continued to prevail in the former British colony.

Hong Kong has transparent and rules-based systems, very low taxes and knowledgeable work force, he added.

“Knowledge of the local market is important while branding products for China and other markets. Hong Kong-based brand consultants would provide the same for Indian companies,” David Lo, chairman, Hong Kong Designers Association, told agencies.

“The Closer Economic Partnership Arrangement (CEPA) between the mainland (China) and Hong Kong would result in the liberalisation of trade in service between the two regions from June 2016,” Yvonne So, director, corporate communication and marketing at HKTDC, told reporters.

“Overseas companies can take advantage of CEPA by outsourcing to, or partnering with, a CEPA-qualified manufacturer or services provider in Hong Kong,” she added.

As for the human resources available, she cited Hong Kong’s nine major universities having more than 75,000 full-time undergraduate students and 8,000 taught and researched full-time postgraduates. (Venkatachari Jagannathan, IANS)

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Dangal continues its Victory march, becomes the Highest Grossing Bollywood Film in Hong Kong

"Dangal" currently has an overseas total of $217.17 million and worldwide collection of $297.68 million (including India)

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Dangal movie
  • Dangal becomes the highest grossing Bollywood film in Hong Kong with a collection of 23.45 million Hong Kong dollars
  • “Dangal” has crossed the lifetime collection of Aamir’s 2009 film “3 Idiots”
  • The film has been backed by Disney India and Aamir Khan Production.

Mumbai, Sep 23, 2017: Bollywood superstar Aamir Khans sports drama film “Dangal” is continuing its victory march at the box office worldwide and has become the highest grossing Bollywood film in Hong Kong with a collection of 23.45 million Hong Kong dollars.

As confirmed by the film’s spokesperson, “Dangal” has crossed the lifetime collection of Aamir’s 2009 film “3 Idiots”, which minted 23.41 million Kong Kong dollars in the country.
“The film released in 46 screens in Hong Kong and Macau which is four times more than the regular screen count for a Hindi mainstream release,” said Amrita Pandey, Vice President – Studios, Disney India.

Also read: Despite Testy Ties, Bollywood Movie ‘Dangal’ that addresses Social Themes and Stars Actor Aamir Khan captivates Audiences in China

“The local audience’s overwhelming response reaffirms that an inspiring story backed by the right team, distribution planning, superior storytelling with such strong performances — can win hearts and transcend boundaries, and ‘Dangal’ exemplifies that,” Pandey added.

The film has been backed by Disney India and Aamir Khan Production.

Based on the life of Mahavir Singh Phogat, an amateur wrestler, who trains his daughters Geeta Phogat and Babita Kumari to be world-class wrestlers, the film also features Sakshi Tanwar, Fatima Sana Shaikh and Zaira Wasim.

“Dangal” currently has an overseas total of $217.17 million and worldwide collection of $297.68 million (including India).

(IANS)

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UN Brings the World Together to Fight Violence Against Women and Girls; 1 in Every 3 Women Currently Face Gender-based Oppression Globally

A third of all women experience violence at some point in their lives, and that figure is twice as high in some countries, according to the United Nations

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Violence against women
Head of U.N. Women Phumzile Mlambo-Ngcuka speaks on stage at WE Day U.N. at The Theater at Madison Square Garden, in New York City (VOA)

United Nations, September 21, 2017 : World leaders meeting at the United Nations on Wednesday launched a half-billion-dollar effort to end violence against women and girls, a crime suffered by 1 in 3 in their lifetimes.

The effort will fund anti-violence programs that promote prevention, bolster government policies and provide women and girls with improved access to services”, organizers said.

It will take particular aim at all categories of violence against women- human trafficking, femicide and family violence.

A third of all women experience violence at some point in their lives, and that figure is twice as high in some countries, according to the United Nations.

“Gender-based violence is the most dehumanizing form of gender oppression. It exists in every society, in every country rich and poor, in every religion and in every culture,” Phumzile Mlambo-Ngcuka, head of U.N. Women, said as the United Nations held its annual General Assembly.

“If there was anything that was ever universal, it is gender inequality and the violence that it breeds against women,” she said.

In other forms of violence against women and girls, more than 700 million women worldwide were married before they were 18, and at least 200 million women and girls have undergone female genital mutilation in 30 countries, according to U.N. figures.

The initiative of 500 million euros (US$595 million) was launched by the U.N. and the European Union, which is its main contributor, organizers said.

“The initiative has great power,” said Ashley Judd, a Hollywood actress and goodwill ambassador for the U.N. Population Fund (UNFPA) who participated in Wednesday’s announcement.

ALSO READ Violence against Women and Girls Imposes Large-scale Costs on Families, Communities and Economies, says UN Secretary-General Ban Ki-moon

“There are already so many effective, research-based, data-driven programs,” Judd told the Thomson Reuters Foundation ahead of the announcement. “Financing for existing programs is a beautiful thing.

“It also makes an incredibly powerful statement to show that the world is increasingly cohesive around stopping gender-based violence,” she said. (VOA)

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Journey of Indian Origin Harry S. Banga among Richest people in Hong Kong

Harindarpal Singh Banga is among the list of Top 50 richest people according to Forbes Magazine

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Harry S. Banga is one of the richest people in Hong Kong
Harry S. Banga is one of the richest people in Hong Kong. Pixabay

Hong Kong, Sep 11, 2017: He grew up in Chandigarh and never thought he would be a billionaire and one of the richest people in Hong Kong. But Harry S. Banga has done that successfully in the fields of commodities, ship management and asset management.

With a net worth of $1.02 billion, Harindarpal Singh Banga, as the chairman of the fairly young Caravel Group, not only figures among the list of Top 50 richest people (Forbes Magazine) in Hong Kong but is known as the tycoon who has staged a comeback in the commodities sector in a big way.

“It’s been a great journey. (I am) So proud of achieving what we have done. Obviously, there were a lot of ups and downs. Never realised on leaving Chandigarh that I will be where I am today. By the grace of god, it has been a wonderful and successful journey. One day I will write a book,” Banga told IANS during an interview in the swanky headquarters of the Caravel Group in the Central Plaza skyscraper in Hong Kong’s busy Wan Chai commercial area.

Banga, who started as a shippie, has reasons to feel proud.

He exited the Noble Group, in which he was a co-founder in 1988, just before it started crumbling on the business front. Setting up the Caravel Group in 2013 with an $800 million investment, Banga was soon back in the big league of Hong Kong billionaires early this year.

“We have three verticals within the Caravel Group. The first one is Asset Management. It is purely investing in liquid assets in equity, fixed income and debt investment and some private equity investment. The other part is brick and mortar business in Caravel International which has got two verticals. One is Caravel Resources under which we do the commodities business. Then we have Caravel Maritime and Caravel Fleet Management Limited.

“Today we are the third largest ship management company in the world. We have 450 ships under our management, close to $20 billion dollars of assets. Total officers and crew are about 18,000 — the majority of them from India,” he explained.

With operations spread in 19 countries across most continents, Banga says that doing business with China is easier.

“Seventy per cent of our total turnover comes from China. I have been dealing with China since 1983. Dealing with officials and corporates in China, I find them very easy to develop and do business with.

“Our business mainly focuses around China, which is the main consumer of commodities today. Today, we are the largest international trading company supplying iron ore to China. Total volume is 40 million tonnes. The originating countries are India, Australia, South Africa and Brazil. Caravel Carbon does the thermal coal business. Sixty per cent of that goes into China and 40 percent to India to power plants, cement plants etc,” he said.

Though his company has offices in India, the business dealing is limited.

“While in other countries in Europe, Australia, America it is either a green light or red light — it is all very clear. Though in the last three years it is changing, in India it is permanent amber light. So, you don’t know if it is red or green. They do come with a policy in India but it takes a long time to understand that policy,” said Banga, who was honoured with the Pravasi Bharatiya Award in 2011 by the Indian government.

“Ours (India) is not easy. We have religion issues, caste issues, language issues, states have their own issues. All these things are very challenging. New Delhi takes decisions. The implementation is in districts. It is a very different world there (in the districts). In Beijing, one guy decides, everyone implements,” he said.

Banga is worried that too many young people in India are getting education and skills, but not enough jobs are available.

“In India, we have the beauty product and health product e-retail company called Nykaa. That is one of the major investments that we have,” he added.

Born in Amritsar, Banga, 66, did his schooling and bachelor of engineering in Chandigarh before moving out in the 1970s.

“I became the youngest captain at the age of 27-and-a-half. I worked with companies in London, Geneva and Hong Kong, where I arrived in 1984,” he said.

Among other things, Banga has an eye for contemporary paintings and antiques. (IANS)