# data[].attributes.body
Thanks for posting the relevant newspaper articles and preliminary macroeconomic analysis. It is important to be focused on the following:
1. How the current economic climate and the trade tension between China-US will affect the electronic industry in Hong Kong.
2. How would the post Covid-19 pandemic affect the electronic industry in Hong Kong.

Do more research on both impacts as mentioned above, analyze, consolidate and start writing the report.

Cheers!

Josh Nathan

# data[].attributes.body
Chelsea Lee (S10206043)
Claris Lim (S10205616)
Natali Lye (S10205900)
Tharshini (S10203025)
Gan Zi Xiang (S10202925)

# data[].attributes.body
Hello Team,
Thanks for sharing with me your prelim analysis of the electronics industry in Hong Kong.

I do see relevant demand and supply determinants in explaining the real world situation. In your team, you might want to discuss on the key points to include in report, and focus on researching more to expand these "highlights". I particularly like the portion about the imports of electronic parts and how this is disrupted due to the covid-19 safety restrictions.

In terms of price elasticity of demand, I see that the focus is only on smart phones. Hence, would like the team to also reach a consensus in terms of whether the focus is on electronics such as laptops and other tech gadgets or purple smartphones as this is going to affect your identification of Market Structure.

Regardless of your choice, its OK. To help with identification of market structure, continue to expand your research on the number of producers in the industry:
(1) Number of providers in HK

(2) Any dominant provider(s) in HK?

(3) Strategies to attract consumers to purchase (if applicable)
(4) Barriers to entry

# data[].attributes.headline
(i) Discuss how the country’s economic situation impact the selected industry or product 

# data[].attributes.subject
(i) Discuss how the country’s economic situation impact the selected industry or product 

# data[].attributes.body
Generally, Hong Kong’s economic growth has been steadily rising until recent years, due to the protests and Covid-19, it has gone through a recession (-1.2% Economic growth in 2019). Hong Kong relies heavily on its electronic market as its main industry as other industries, Example, Agriculture contributes less to its GDP due to its lack of natural resources. Hong Kong’s electronics industry accounts for 68.3% of total exports in 2019, the largest electronic export earner in Asia. Hong Kong is the world’s largest exporter for electronic integrated circuits, one of the world’s largest exporters for computer/mobile components and video recording apparatus. However, due to the pandemic and political unrest in Hong Kong, Re-Exports and exports to mainland China, has decreased from +10.7% to -2.9%  and +8.0% to -10.0% from 2018 to 2020 respectively. This also resulted in domestic export revenue to grow from -24.0% to +33.2% from 2018 to 2020. Hong Kong’s main export markets are mainland China, EU and ASEAN however, all international exports saw a decline due to the pandemic and political unrest. As Hong Kong is a crucial trading centre for electronic parts and components in Asia‑Pacific, the electronics industry in Hong Kong will continue to grow despite facing these challenges. Revenue Growth from Consumer Electronics showed an increase of 14.0% which accentuates the potential of the growth of the Electronics market in Hong Kong.

Sources:
-https://www.focus-economics.com/countries/hong-kong
-https://research.hktdc.com/en/article/MzExMzM1NDk1
-https://www.nordeatrade.com/dk/explore-new-market/hong-kong/economical-context
-
https://www.statista.com/outlook/251/118/consumer-electronics/hong-kong

# data[].attributes.headline
(ii) Economic significance of the Electronics industry

# data[].attributes.subject
(ii) Economic significance of the Electronics industry

# data[].attributes.body
Hong Kong’s electronics industry is the territory’s largest merchandise export earner, accounting for 68.3% of total exports in 2019. According to 2018 statistics – the latest available – in value terms Hong Kong was the world’s largest exporter of electronic integrated circuits; the second largest exporter of computer parts/accessories, telephones/mobile phones and video cameras; and the world’s third largest exporter of video recording apparatus. Hong Kong’s electronics exports rose by 10.7% in 2018. The major export markets were the Chinese mainland, the EU, the ASEAN, and the US. Exports to the Chinese mainland grew by 9.8% on the back of steady input demand of mainland’s outward processing production. Exporting diversifies market opportunities so that even if the domestic economy begins to falter, there are other growing markets for electronic goods.

Sources:
-https://research.hktdc.com/en/article/MzExMzM1NDk1
-https://hkmb.hktdc.com/en/1X00401Z/hktdc-research/Electronics-Industry-in-Hong-Kong
-https://www.thehartford.com/business-insurance/strategy/expansion-exporting/benefits-export-business

# data[].attributes.body
-https://www.hkeconomy.gov.hk/en/situation/development/index.htm
-https://www.eastasiaforum.org/2020/12/19/covid-19-shock-takes-its-toll-on-hong-kongs-economy/
-
https://www.china-briefing.com/news/the-changing-status-of-hong-kong-as-a-global-financial-center-op-ed/

# data[].attributes.body
-https://www.cnbc.com/2020/11/26/hong-kong-gdp-economy-and-special-trading-status-with-us-under-biden.html
-https://youtu.be/orNk9HNGhYI

# data[].attributes.body
-https://tradingeconomics.com/hong-kong/unemployment-rate#:~:text=The%20seasonally%20adjusted%20unemployment%20rate%20in%20Hong%20Kong,by%20around%2013%2C500%20to%20244%2C300%20in%20September-November%202020
-https://sg.news.yahoo.com/hong-kong-jobless-rate-edges-090951058.html

# data[].attributes.body
-https://podcasts.google.com/feed/aHR0cHM6Ly9wb2RjYXN0LnJ0aGsuaGsvcG9kY2FzdC9yYWRpbzNfbW9uZXlfdGFsay54bWw/episode/aHR0cHM6Ly9hcmNoaXZlLnJ0aGsuaGsvbXAzL3JhZGlvL2FyY2hpdmUvcmFkaW8zL21vbmV5X3RhbGsvbTRhLzIwMjAxMTE4Lm00YQ?sa=X&ved=0CAUQkfYCahgKEwig-9bU4-DtAhUAAAAAHQAAAAAQqkE
-https://podcasts.google.com/feed/aHR0cHM6Ly9wb2RjYXN0LnJ0aGsuaGsvcG9kY2FzdC9yYWRpbzNfbW9uZXlfdGFsay54bWw/episode/aHR0cHM6Ly9hcmNoaXZlLnJ0aGsuaGsvbXAzL3JhZGlvL2FyY2hpdmUvcmFkaW8zL21vbmV5X3RhbGsvbTRhLzIwMjAwOTE4Lm00YQ?sa=X&ved=0CAIQuIEEahgKEwig-9bU4-DtAhUAAAAAHQAAAAAQhGE

# data[].attributes.body
-shorturl.at/djzMY

-https://www.focus-economics.com/country-indicator/hong-kong/inflation
-https://tradingeconomics.com/hong-kong/inflation-cpi

# data[].attributes.body
Electronic Industry rising in Singapore

# data[].attributes.attachment_link.readable_text
2 related media assets (image or videos) available. Click to see the gallery.

(Updated: )
Share this content

SINGAPORE: Despite the impact of the COVID-19 pandemic on Singapore's economy, the electronics sector has continued to grow, with more than 130 companies in the industry offering more than 2,800 jobs, traineeships and training opportunities since April.

Of these, about 1,880 are for jobs, according to the Ministry of Manpower's (MOM) latest jobs situation report released on Monday (Oct 19). About 95 per cent of the jobs were for professional, manager, executive and technician (PMET) roles.

The majority were for technical roles, such as manufacturing engineering technicians, electronics or mechanical engineers and industrial and production engineers.

There were also non-technical roles, such as buyers and purchasing agents, sales and marketing executives, as well as business development managers.

ELECTRONICS INDUSTRY CONTINUES TO EXPAND
Salaries for these roles range from S$1,800 to S$8,500, depending on the skills required, the ministry said.

The report noted that electronics was the only industry within the manufacturing sector that saw an increase in total employment locally, hiring 1,000 people even amid the largest contraction on record in the second quarter of 2020.

"This was partly due to the surge in demand for digital goods and services to help individuals stay connected, even with travel restrictions, safe distancing measures and remote working arrangements in place," said MOM in its report.

"Besides increasing capacity to meet demands for electronics components, firms are also transforming to focus on higher-value manufacturing activities by using technology such as Internet of Things, artificial intelligence, robotics and automation."

Speaking to reporters during a visit to semiconductor firm Globalfoundries' premises in Woodlands, Minister for Trade and Industry Chan Chun Sing said that the semiconductor industry contributes about 7 per cent of Singapore's gross domestic product, up from less than 1 per cent in 1990s.

"As of September 2020, we have already recorded more than S$5.7 billion in fixed assets investment and more than S$376 million in total business expenditure in the electronics sector. This will create more than 1,100 jobs in the next three to five years as the investments are fulfilled," he said.

OPPORTUNITIES IN THE ELECTRONICS INDUSTRY

Some job seekers may think they require a technical background to apply for a job in the electronics sector, said Manpower Minister Josephine Teo.

"It is true that quite a lot of the job roles are technical in nature. But it doesn't mean that if you don't have a background in electronics, you cannot find your way into this sector," added Mrs Teo.

"You may have been in a technical role, but in a different sector. There are ways in which your skills can be transferred, with the addition of domain knowledge, you can equally access the opportunities in electronics.

"At the same time, there are also job roles at the PMET level within electronics that do not always require a technical background."

MOM said it is "not necessarily true" that employers in the electronics industry only hire job seekers from the same sector or those with technical skills.

"Many mid-career individuals from other industries have been able to successfully enter (or re-enter) the industry," said the ministry, adding that the sector offers non-technical roles that job seekers without engineering backgrounds can apply for.

"Employers also value transferrable skills and wealth of experience of mid-career individuals," MOM said.

Those who are keen to join the electronics industry but lack the relevant skills can "bridge skills gaps" through Workforce Singapore's (WSG) career conversion programmes.

WSG offers 10 Professional Conversion Programmes (PCPs) and Place-and-Train Programme, which impart different skills, from engineering, supply chain and logistics, manufacturing, operations to technical skills.

Job seekers with limited or no prior experience can tap on of company-hosted traineeships and attachments under the SGUnited Traineeships and SGUnited Mid-Career Pathways Programmes to gain exposure to the work in the industry.

Roles offered include lab technologist trainee, plant data automation trainee and production technology trainee, among others.

MOM also highlighted training courses under the SGUnited Skills Programme, such as the semiconductor technology programme offered by Singapore Polytechnic and the converged infocomm infrastructure programme offered by Nanyang Polytechnic.

Between April to September this year, more than 220 people have been placed into jobs and traineeships in the electronics sector, the report said.

MOM said 180 people found jobs or took on new roles, about half of whom were above the age of 40. More than 40 people have enrolled in traineeships since June.

In the first nine months of this year, about 51,700 job seekers have received basic career advisory or job search assistance through WSG's and the National Trades Union Congress (NTUC) Employment and Employability Institute's (e2i) career matching services.

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
"This 49 per cent year-on-year increase in the number of job seekers assisted is due to increased outreach through an expansion of WSG and NTUC's e2i touchpoints, as well as increased demand of jobseekers wanting to make career transition," said MOM.

# data[].attributes.attachment_link.title
Electronics sector continues to grow despite COVID-19, offered more than 2,800 opportunities since April: MOM

# data[].attributes.attachment_link.description
(Updated: ) Share this content SINGAPORE: Despite the impact of the COVID-19 pandemic on Singapore's economy, the electronics sector has continued to grow, with more than 130 companies in the industry offering more than 2,800 jobs, traineeships and training opportunities since April.

# data[].attributes.body
Economic reasons for falling price of electronic products

# data[].attributes.attachment_link.title
Reasons for falling price of electronic goods - Economics Help

# data[].attributes.attachment_link.description
With any new technology - especially electronic goods (TVs, computers, cameras), we tend to see a sharp fall in price over time. Initially, the new technology is very expensive, and a high percentage of disposable income, but over time, prices tend to fall considerably. There are a number of reasons...

# data[].attributes.body
Description of the electronic sector

# data[].attributes.attachment_link.readable_text
What Is the Electronics Sector?

The electronics sector produces electronic equipment and consumer electronics and manufactures electrical components for a variety of products. Common items in the electronics sector include mobile devices, televisions, and circuit boards. Industries within the electronics sector include telecommunications, networking, electronic components, industrial electronics, and consumer electronics.

Key Takeaways

Growth in the Electronics Sector

The electronics sector is growing rapidly as a result of increasing demand from emerging market economies. As a result, many countries are increasingly producing more electronics, and investment in the foreign production of electronics has increased dramatically.

Electronics sector growth is accelerated by increased consumer spending around the world. As developing economies grow, consumer demand for electronics also grows. Countries that produce electronics now have strong consumer bases that can afford new electronic products. At the same time, increased competition is driving the costs of electronics production down, making products even cheaper for individuals.

China has been a significant electronics producer for a long time and is now also a major market for consumer and industrial electronics. Asia's proportion of the market for electronics is expected to represent approximately half of the global market within the next several decades. This increase means better profitability for the industry at large in the future.

The supportive role of the electronics sector in providing equipment and components for other industries is also a factor of growth as consumers demand more automobiles, energy-efficient homes, and medical technologies.

The most profitable sector within electronics, the semiconductor industry, has grown to become worth more than $412 billion globally as of 2019. Semiconductors are used in most electronic products, including cameras, computers, automobiles, mobile phones, refrigerators, bulbs, washing machines, and televisions.

Challenges in the Electronics Retail Market

Electronics retail, however, is becoming increasingly competitive and fragmented from experiencing a unique set of challenges. Many electronics brands are now offering their products at their own stores as a means of becoming more profitable. These stores compete with flagship retailers, such as Best Buy ( BBY), for customer traffic.

Online stores, such as Amazon ( AMZN), also compete for customer spending and offer products not available in traditional stores. As the variety of electronics products increases, stores struggle to offer enough of the more popular products to consumers and concede some of the market share to online retailers.

Though purchasing volumes are increasing, many larger companies are in a period of decline as the sector becomes fragmented with a greater number of companies offering electronic products.

Volatility in company valuations is increasingly becoming normal for electronics retailers as the industry matures and experiences a shifting landscape. Changes resulting from store closures, mergers and acquisitions, and declining prices are pressuring the electronics sector to become more efficient and more profitable.

The Bottom Line

Though the electronics sector is growing, primarily the semiconductor industry, due to increased consumer spending in emerging markets, the sector continues to become fragmented and competitive as the landscape changes, new technologies are introduced, and new entrants enter the market. As a result, the stock prices of electronics companies are likely to experience some volatility.

# data[].attributes.attachment_link.description
The electronics sector produces electronic equipment and consumer electronics and manufactures electrical components for a variety of products. Common items in the electronics sector include mobile devices, televisions, and circuit boards. Industries within the electronics sector include telecommunications, networking, electronic components, industrial electronics, and consumer electronics.

# data[].attributes.body
Why is Apple so expensive

# data[].attributes.attachment_link.title
Why is Apple so expensive? | CNBC Explains

# data[].attributes.body
How the electronic industry is like in Singapore

# data[].attributes.attachment_link.title
MySkillsFuture Industry Video - Electronics

# data[].attributes.body
Expansion of electronic sector in Singapore

# data[].attributes.attachment_link.title
Singapore's electronics sector expands in August after six months of contraction

# data[].attributes.body
Reasons for the rise of electronic and technology market in China

# data[].attributes.attachment_link.title
Why Are So Many Electronics Made In China?

# data[].attributes.body
Waveform : The MKBHD Podcast

# data[].attributes.attachment_link.description
Listen to Waveform: The MKBHD Podcast on Spotify. A tech podcast for the gadget lovers and tech heads among us from the mind of Marques Brownlee, better known as MKBHD. MKBHD has made a name for himself on YouTube reviewing everything from the newest smartphones to cameras to electric cars.

# data[].attributes.body
There are an increase in the number of buyers of electronic gadgets in the market in Hong Kong because of the higher income per capita and purchasing power of the population (Number of buyers)

Increased popularity of electronic gadgets due to advertising, high rise in internet usage and the new technologies available (Taste and preferences)

Changes in income for buyers, people in Hong Kong have increased affluence (Money income)

When a new electronic gadget is introduced to the market, people might predict that it will be popular and want to get their hands on it, which increases the demand for the product

Demand factors in Hong Kong : There is an increase in the number of population in Hong Kong from 2017-2019 and this has led to more buyers in the market. It had increased from 7 391.7’000 to 7520.8’000(number of buyers)

There is an increase in the electronic industry due to the high demand especially with business establishments as more businesses are using technological gadgets such as computers to help with the management of their business. The percentage of business establishments using the computer has increased from 79.6% to 80.9%.

As for individuals due to the trends in Hong Kong, more people are purchasing electronic gadgets one such example is the Smart Tv (large-screen digital TVs with connectivity for internet surfing ), Virtual reality, augmented reality and mixed reality and 5G all. All of the trends have gained popularity due to advertising and these have caused more consumers to purchase more electronic gadgets such as the digital tv, Iphone 12 and many more.( taste and preferences)

The Hong Kong GDP( at current market price ) has increased from 2015 to 2019 from 2398.3 HK billions to 2865.7 HK billions, this has resulted in more people having more income to purchase electronic gadgets. (money income)

When the price of related goods of electronics devices decreases such as more wifi companies leading to cheaper wifi and mobile data, more people would purchase more electronic gadgets as they find it cheaper to afford for it now. (price of related goods)

# data[].attributes.body
Produces electronic equipment and manufactures electrical components for a plethora of products.

Common products produced are: mobile devices, televisions, and computers.

There are multiple industries within the electronics market itself, such as telecommunications, electric components, consumer electronics, and more.

The most profitable industry in the electronics market is the semiconductor industry, which engages in the design and fabrication of semiconductors.

Semiconductors are used in majority of the electronic products ranges from cameras to refrigerators to light bulbs

# data[].attributes.body
Smartphone market is elastic, where there is high responsiveness to changes in prices since it is not a necessity, and there are already a lot of phones out there in the electronic market.

Therefore, if prices were to go up, fewer people would buy new phones/upgrade their existing phones.

Consumers with inelastic demand, such as those who keep up with the latest technology and are willing to pay higher prices, allow firms to sell their products at a premium price.

Once the firms have sold their products to such consumers, they can then lower their prices to sell to a wider audience who are more price sensitive.

# data[].attributes.body
Disruption of the electronics supply chain due to the Covid-19 pandemic.

Covid-19 control measures hinders migrant workers from completely returning to work which slows down production of electronic supplies.

Chinese firms play a crucial role in the global supply of low- to mid-end electronics parts and components, thus other countries might get affected due to the sudden shortage of supply of electronic production.

Due to the outbreak in South Korea, together with countries' reliance on South Korea for the electronic parts and components, its shortage would consequently delay production recovery in Chinese electronics firms.

Demand for electronics may decline as consumers in these regions may want to reduce spending on non-necessity items especially during this period of uncertainty.

Hong Kong accounts for almost 19% of the world’s export of electronic circuit components.

Hong Kong ‘free’ global trading center is at risk due to the removal of the ‘one country two systems’ framework.

There might be potential hiccups to business operations due to the uncertainty faced by Hong Kong.

To prevent the occurrence of any disruptions from Hong Kong’s electronic supply chain, especially for massive companies, they might consider shifting out of the Hong Kong market.