In this era of widespread AI adoption, connectivity serves as the crucial backbone for seamless data flow, empowering cities to drive digital transformation through the effective use of data-driven insights. Amid this technological evolution, Tara Neal, Executive Editor of The Fast Mode, spoke with Derek Chim, Head of Startup Ecosystem and Development at HKSTP, to explore the significance of connectivity and the convergence of market opportunities in the APAC region, as well as how Hong Kong is advancing this momentum within the global tech landscape.
Tara: What makes connectivity a pivotal element in driving today’s digital transformation?
Derek: Connectivity serves as the backbone of any smart city. From mobility and energy to public services and logistics, every aspect of modern urban life depends on scalable, seamless infrastructure that connects systems, devices, and people.
Think of it this way: if AI is the brain that processes data, and smart devices are the sensory organs collecting environmental input, then connectivity is the circulatory system. It ensures everything moves—securely, instantly, and intelligently. Without strong, resilient connectivity, even the most advanced AI or IoT solution can't function at scale.
At HKSTP, we don’t just support startups working on smart city tech—we empower them to build the backbone that makes digital transformation possible. From the underlying network infrastructure to the AI-driven solutions it powers, we’re enabling breakthroughs in sectors as diverse as logistics, urban planning, and industrial automation. Some standout examples include:
- eSIX Limited: Combines 5G, Wi-Fi, satellite and more into one ultra-reliable, low-latency connection—ideal for maritime communication, factories, or retail where downtime isn’t an option.
- Altai Technologies: Uses AI-powered Super WiFi making industrial-grade connectivity up to 1,700 metres to keep robots and sensors connected in real time—reducing downtime and boosting safety across industrial environments.
By backing pioneers like these, HKSTP is helping transform Hong Kong—and beyond—into a hub for connectivity-first innovation.
Tara: Could you share some emerging market opportunities related to connectivity, especially in APAC?
Derek: In the Asia-Pacific region, home to some of the world’s most advanced smart cities, the growing adoption of AI necessitates high bandwidth and low latency connectivity solutions. The GSMA projects that by the end of 2030, 5G is projected to contribute nearly US$130 billion to the APAC economy, providing the speed and low latency needed for next-generation applications.
One significant opportunity lies in smarter warehouses powered by robotics and reliable connectivity. As warehouses and logistics hubs automate operations with fleets of mobile robots, they rely on uninterrupted communication to navigate, coordinate tasks, and respond in real time—any signal drop can disrupt entire workflows. That’s why one of our park companies, Altai Technologies, offers industrial-grade Super Wi-Fi with ultra-fast handover speeds—10 times faster than standard roaming—ensuring seamless connectivity across large facilities.
We’re also seeing connectivity redefine what’s possible in public safety. Picture a lone yacht drifting beyond the coverage of typical networks. In emergencies, every second matters—but calling for help can be nearly impossible in the dead zones. That’s where eSIX and AIqua, both part of the HKSTP network, come in. They recently teamed up to protect offshore yachts, combining robust 5G connectivity with AIqua’s ultrasonic drowning detection system—allowing real-time monitoring and automated emergency response, even in isolated marine settings.
Tara: How is HKSTP leveraging these opportunities to engage with the global market?
Derek: At HKSTP, we provide platforms and connections that help startups transform ideas into globally competitive businesses, enabling them to seize opportunities beyond the APAC region. One of the ways we do this, is by opening up international opportunities that give our startups real exposure and traction in overseas markets.
In early March this year, we showcased 24 pioneering tech companies at Mobile World Congress (MWC), the largest global event for connectivity and communication technology. Our pavilion attracted 7,500 visitors and generated nearly €4 million Euros in potential revenue, facilitating international partnerships and accelerating growth.
Another recent example is the GO AUSTRIA Spring 2025 programme, where we brought six startup teams to Vienna for two weeks of market exploration tailored for later-stage tech ventures. This initiative included pitch training, funding advice, legal guidance, and participation in ViennaUP, Austria’s biggest startup festival.
Our ongoing collaborations with Advantage Austria have already helped nearly 20 Hong Kong startups tap into Europe since 2017.
- E3A Healthcare, focused on women’s and newborn health, joined the programme in 2023. They’ve since secured a €1 million Euros R&D grant and entered a strategic partnership with Vienna-based Saphenus Medical Technology.
- Manifold Tech, another 2023 & 2024 alumi, develops real-time 3D and robotics technologies for the construction industry, connected with two European distributors and is now set to further expand in the regions.
- Reunite, currently in the 2025 cohort, formed a collaboration with an art tech company in Austria to merge their 3D and art tech into immersive, interactive experiences.
These results show how HKSTP is actively powering Hong Kong startups to scale connectivity-first innovations on a global stage.
Tara: As a former startup entrepreneur and now a leader in fostering growth, what do you consider the most important factors in nurturing telecom innovators?
Derek: I believe the most important factors are providing robust technical enablement, comprehensive business support, and facilitating global access to markets.
Startups require the right tools and space to transform ideas into scalable solutions. At HKSTP, we provide access to world-class R&D facilities, sandboxes, and test labs where they can prototype and validate technologies, particularly in emerging fields like IoT, 5G, and edge computing. Additionally, our High-Performance Computing (HPC) services equip startups with the advanced computing power essential for AI-driven R&D.
Financial resources are also crucial for startup success. With a substantial allocation of HKD 1 billion (nearly €110 million) in our Corporate Venture Fund, we support early-stage startups through direct investments and access to our extensive network. In addition, our comprehensive incubation programs cater to various stages, from ideation to elite growth, providing funding and expert guidance to help startups cultivate their businesses and prepare for global impact.
Last but not least, connecting with corporate partners, government stakeholders, and global accelerators is critical. Take our Global Booster Programme as an example, it has successfully helped Hong Kong startups expand into markets like Silicon Valley, resulting in over US$15 million in contracts and investments. This emphasis on market immersion and localization is essential for achieving international scalability.
Ultimately, it is about creating launch conditions that allow startups to develop and scale impactful technologies, whether through testing 5G applications or expanding overseas.
Tara: What are your strategic initiatives in supporting startups in their global expansion, and what notable milestones have you achieved?
Derek: HKSTP plays a central role in scaling startups globally, leveraging Hong Kong’s strengths as a connector between East and West. Our strategy focuses on three pillars: strong financial incentives, strategic location, and innovation/IP support.
Hong Kong’s business-friendly environment—ranked 3rd in global IPO fundraising in 2025 — offers no capital gains tax, no VAT, and R&D tax deductions up to 300%. Proximity to the GBA and Shenzhen enables rapid prototyping and market testing, while a top-10 global IP framework protects innovation and builds trust in cross-border collaborations.
To help startups go global, we run targeted programmes like the Global Booster Programme in Silicon Valley, offering investor access and expert mentoring, and our Innovation Mixer series that connects founders with giants like NVIDIA, Google, and Stanford.
As a leader in supporting entrepreneurs in their global expansion, I take pride in our startups making significant strides on the international stage. This not only showcases the potential of Hong Kong's tech landscape but also affirms that we are implementing the right strategies and providing the necessary resources for our startups.
One of our notable milestones was leading our largest delegation of 45 tech companies to CES 2025. This event was particularly significant, as three of our innovations received recognition from the prestigious CES Innovation Awards, including Seekr, an AI wearable by Vidi Labs, Rocket 2.0, a smart irrigation system by Full Nature Farms, and a 3-axis micro gimbal lens stabilizer by Vista InnoTech. These accomplishments underscore our commitment to fostering innovation and supporting local entrepreneurs on their journey toward global success.
Tara: Looking ahead, how do you envision the future of Hong Kong’s tech startup ecosystem in the context of global digital transformation?
Derek: Looking ahead, Hong Kong is poised to play a pivotal role in global digital transformation. The city's strengths—including a wealth of top talent, a network of visionary leaders, and world-class infrastructure—contribute to a vibrant innovation and technology (I&T) ecosystem.
First of all, Hong Kong is home to five world-ranked universities and two top 40 medical schools, ensuring a steady pipeline of skilled professionals to drive innovation. In addition, as an I&T powerhouse, the city connects startups and entrepreneurs with over 500 corporate partners and 1,000 investors worldwide, facilitating collaboration and providing essential funding and resources for growth. Hong Kong also has a strong network of State Key Laboratories and InnoHK research centers that support cutting-edge research and technology development.
As a result of these interconnected strengths, the startup landscape in Hong Kong has reached a record high of 4,694 companies in 2024, marking a 10% year-on-year growth. This surge underscores the city's attractiveness as a hub for innovation and its potential to drive significant advancements across various sectors.
By positioning ourselves to drive the momentum of global digital transformation, Hong Kong is set to remain at the forefront of innovation in the years to come.
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Autor(en)/Author(s): Tara Neal
Quelle/Source: The Fast Mode, 07.07.2025
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