The Hong Kong Productivity Council (HKPC) said new ways to increase economic productivity could help retain the SAR's status as a supply chain hub.

“New quality productive forces” — a concept introduced by President Xi Jinping and highlighted in Premier Li Qiang’s work report — refer to productivity increases helped by breakthroughs in technology, rather than in traditional industry.

Speaking at a media briefing on Tuesday, the council's executive director, Mohamed Butt, said new quality productive forces, also known as NPF, could help attract more businesses to the SAR.

"This NPF can empower the growth of new industrialisation, as well as enhance our capability to become a stronger base for exports. I think in the budget speech, the Secretary for Finance mentioned that Hong Kong needs to become an international supply chain hub," he explained.

"In conclusion, I think NPF can really bring in new people, new ideas, new businesses, and enhance our capability to become a stronger base for supply chain hub for the world."

The chairman of HKPC and lawmaker, Sunny Tan, said new quality productive forces could enhance Hong Kong's competitiveness.

"We are talking about being innovative, being able to apply new technologies in industrial development and the product development side with new products, new materials, new production processes, and also new ways of distribution," he said.

"And then, productive forces, really, it's about getting all stages, doing it right with, again, innovation and technology to enhance our competitiveness along the entire supply chain."