For the first time sicne 1997, the business community in Hong Kong is actively questioning whether the SAR's pre-eminence as a financial and commercial centre will continur or will the high cost of doing business here demand a rethink about its role in Asia.

Whilst trying to exploit this downturn in confidence, Singapore's spin doctors of its organized economy are ensuring that big business is encoraged to consider the city state as a place that knows how to come out of a crisis faster than its Asian rivals.

Everyone is watching the US economy and the impact which a declining dollar will have on Asia: a weak dollar helps Hong Kong through its pegged currency but hurts other economies dependent on exports to the US.  Statements about recovery are appearing but bearish sentiments are equally evident.

In such turbulent times, companies who during the last crisis already downsized, rightsized and re-dimensioned are now looking at alternative ways to bring the cost base into line with the new economic reality.

Procurement, an embryonic discipline in a society where everyone is an entrepreneur, is fast appearing on corporate radar screens as a potential conributor to lower cost operations.

The entry of China into the World Trade Organization has raised its profile globally as a low cost source of supply.  Meanwhile, mainland Chinese companies are anxious to improve their competitive performance in readiness for entry into global markets.

Strategic Procurement is emerginng as a way to add value in both regards.

The outsourcing bug has also been caught by many Hong Kong companies...a departure in an economy more used to vertical integration.  The trend towards Business Process Outsouring is now established in Asia with the first major regional procurement process being put in place and others soon to be announced.

Whether these initatives will truly meet the expectations of outsourcer and/or the outsource provider remains to be seen.  There has been a propensity for Asian businesses to focus upon lowest price rather than best value so only time will tell just how well this new development will be managed.