Operations Review – Trading Services

Another Year of Outstanding Achievements

Amidst a bumper harvest of achievements in 2023/24, several developments stood out. First, we have concluded a new Service Level Agreement (SLA) with the Leisure and Cultural Services Department for the maintenance and repair of 150 vehicles, which were formerly maintained by private contractors, reflecting our quality service and competitiveness.

Also significant was the initiation of dialogue with the Hospital Authority (HA) on drawing up an SLA, covering not only all of its new Schedule 1 hospitals, butnew Schedule 2 hospitals as well. This will enable us to offer our services as early as the design stage of the hospital projects, including making recommendations on smart hospital features, carrying out technical audits, and supporting the testing and commissioning of the hospitals, with a view to better preparing for the future operation and maintenance (O&M) services of electrical and mechanical (E&M) facilities. Discussions are in the pipeline, and we are looking forward to foster a new service partnership with the HA in 2024.

Another development was that our I&T solutions, initially provided to clients as value-added services taking on our role as the Government’s Innovation Facilitator, have become business opportunities in their own right. An example is the Smart Prison solution incorporated in the redevelopment of the Lai Chi Kok Reception Centre to transform the aged centre into a modern correctional facility. The fact that many clients now regard I&T projects as essential investments for future development proves our efforts fruitful.

During the year, we won, once again, multiple local and international awards spanning technology, engineering, sustainability and public service. Of note, we clinched seven gold, ten silver and four bronze medals for our I&T projects at the 49th International Exhibition of Inventions of Geneva held in 2024. We also received top accolades in the Hong Kong Most Innovative Knowledge Enterprise (MIKE) Award 2023 and the Global MIKE Award 2023, which recognised our efforts in implementing knowledge management and fostering an innovation culture.

Furthermore, our 2023 Staff Satisfaction Survey reported a staff satisfaction rating of 7.7 on a scale of 10 and a response rate of 55%, both reaching record highs. It is said that satisfied employees lead to satisfied customers. We will endeavour to achieve higher ratings in our next Customer Opinion Survey scheduled for late 2024.

Building a Smart City with a Vibrant Economy

The EMSTF has strived to assist in realising the goal of building “a vibrant economy for a caring community” put forward in the Chief Executive’s 2023 Policy Address. Our smart city projects and E&M support services have enhanced the operational efficiency of our clients while meeting community needs.

Expediting post-epidemic economic recovery has been the Government’s priority in recent years, and one of the initiatives was organising activities to attract tourists and local visitors. During the year, we provided for various events, including the Lunar New Year fairs held at 15 venues in February 2024, temporary electricity and lighting supply, intelligent footfall monitoring and crowd control systems, and on-site E&M support to ensure smooth implementation of the events. We also provided emergency support to the Waterfront Carnival in Wan Chai in September 2023 by resolving a power supply issue for stalls. Technical support was provided to other Night Vibes Hong Kong events in several districts to help create a dynamic atmosphere and boost Hong Kong’s night-time tourist economy.

For motorists, the HKeToll system launched since May 2023 was a breakthrough in implementing free-flow tolling at various government-tolled tunnels. We assisted in ensuring the accuracy and stability of the system, taking the city’s vehicle tunnel operational efficiency and user experience to a new level.

Other smart city projects have brought better safeguards for people and infrastructure. The Government-Wide Internet of Things (IoT) Network (GWIN) has become the backbone for deploying various IoT systems. These IoT systems include a Smart Drainage solution that monitors flooding in subways and alerts pedestrians; the Smart Flood Monitoring System that monitors sea-level changes and flood conditions to protect critical infrastructure facilities from extreme weather; and worker safety solutions for the Smart Site Safety System. In addition, the Hiker Safety System that we developed with the aim of saving lives uses the GWIN infrastructure to transmit emergency signals and location data from hikers in remote areas. Unmanned aerial vehicles, or drones, are also now being deployed to patrol remote areas and inspect infrastructure and equipment at height to boost efficiency and reduce the risk of frontline personnel.

Many of these projects have already been featured on a new platform called E&M InnoCatalogue, which has been added onto our E&M InnoPortal to help clients and the trade quickly find the proven solutions they need. The E&M InnoCatalogue, which currently showcases over 50 successful projects, can help expedite the growth of start-ups, enhance Hong Kong’s I&T ecosystem and expand the I&T market.

AI Assuming Key Role in Strategic Plan

2023/24 was the first year of the EMSTF’s third Five-year Strategic Plan, which aims to achieve “E&M 3.0 – Intelligent E&M”. We are delighted to report on the good progress, with some milestones reached ahead of schedule.

In fact, having seen the emergence of artificial intelligence (AI) in 2022, we included it in our third Five-year Strategic Plan as an integral part. AI will take on a key role in myriad E&M systems for energy optimisation, realisation of predictive maintenance and a wide range of other client service enhancements. During the year, our AI Steering Group launched the AI Master Action Plan with a four-pillar framework, namely enhancing staff competence, implementing trial projects, fostering collaboration of all kinds, as well as formulating standards and guidelines. We have also set up a new AI team to help all Strategic Business Units incorporate AI into their O&M services. Besides, the first staff AI Competition for Energy Efficiency and Conservation was successfully completed, bringing about 28 trial projects with highly encouraging results. With the rapid development of AI around the globe, we believe that applications of AI-enabled solutions and other new technologies will only keep increasing, paving the way for intelligent E&M.

Deepening Collaboration

Following our memoranda of co-operation (MoC) with various local and Mainland universities and research institutes, we signed two new MoC in 2023, one with the Shenzhen Association for Science and Technology to establish a new strategic partnership, and another with the Guangdong Provincial Academy of Building Research Group Co., Ltd. and the Guangdong Province Construction Technology and Standardisation Association to jointly promote the development of green building E&M systems technology and AI standards.

While most of our current collaboration with the Mainland focuses on technical training and I&T, we will also seek co-operation in other areas where the Mainland has the edge. These include electric vehicles (EVs), hydrogen fuel cell vehicles, batteries, photovoltaic panels and other renewable energy. There are also many well-established Multi-trade integrated Mechanical, Electrical and Plumbing (MiMEP) plants in the Mainland, which are our target for co-operation.

AI is another area of strength of the Mainland, and we look forward to deepening our collaboration with Greater Bay Area entities on AI and data analytics development. Meanwhile, our officers have visited and participated in conferences and competitions on cutting-edge technologies in cities such as Barcelona, Geneva and Melbourne during the year to share Hong Kong’s success stories and learn from global experience.

Caring for the Environment and Putting People First

Energy saving and decarbonisation continued to be our another focus work area, with the objective of assisting Hong Kong in achieving carbon neutrality before 2050. Examples of our work include implementing more energy-saving projects for E&M facilities in government buildings and procuring more EVs for the government fleet. We even became the Government’s technical advisor in 2023 for a trial project on the use of hydrogen fuel cell heavy vehicles, assisting in introducing new-energy vehicles to Hong Kong.

AI-enabled energy optimisation solutions gained momentum in the year: for instance, our in-house-developed ChillStream^® was applied to chillers at the Public Health Laboratory Centre and HA hospitals, generating significant energy savings for our clients. Furthermore, to protect the environment, we have been gradually replacing refrigeration equipment that uses refrigerants with high global warming potential (GWP) with those using low GWP refrigerants. We have been also trialling the use of reclaimed refrigerants to reduce waste. On the part of renewable energy, the EMSD Headquarters Building will participate in a pilot scheme on Building-integrated Photovoltaics outlined in the Financial Secretary’s latest Budget Speech, while the scheme will explore the applications of photovoltaic technology and materials on the facades of government buildings to help Hong Kong realise carbon neutrality.

To build a caring community, we have to put people’s needs first. This has always been a priority during our planning of various smart city projects mentioned above. A good example offering immediate benefits took place at the Central Government-aided Emergency Hospital, which successfully launched radiology, endoscopy, sleep test and microbiology services in 2023, and significantly shortened the wait time of HA patients. We assisted in the E&M works that enabled the hospital to launch the new services on time and serve the public good.

Outlook for 2024/25

The EMSTF aims to raise productivity, through initiatives such as application of I&T, in 2024/25 by one per cent, to reduce the fees paid by our clients. On the business growth, we are optimistic. The EMSTF looks forward to concluding an SLA with the HA on providing technical advisory services for its new and redeveloped hospitals and extending the SLA to cover O&M and advisory services later on. Moreover, the Three-runway System at the Hong Kong International Airport and its associated infrastructures will progressively commence operation from 2024/25, opening up new business opportunities. Our team will also give technical support to the 15th National Games to be held in November 2025, with Hong Kong co-hosting eight competition events. We shall help upgrade the city’s sports venues and facilities in preparation for this grand event.

As in the past years, our Technical Trainees (TTs) will continue to compete in world-class competitions. Two TTs of the EMSD have qualified for representing Hong Kong in the Refrigeration and Air-conditioning and Electrical Installations trades, and will enter the 47th WorldSkills Competition in Lyon this September. Meanwhile, we are planning to upgrade our eight Operation and Maintenance Best Practices Booklets and Handbooks in view of the increasing application of AI, MiMEP and other new technologies.

Gratitude and Appreciation

Since joining the EMSD in 1995, I have been privileged to have witnessed the EMSTF’s transformation into a successful, customer-oriented E&M service provider and the Government’s Innovation Facilitator over the years. Vital to our turnaround and our ongoing steady performance has been the guidance of the Executive Board and policy bureaux, the excellent work of our staff, and the full support of trade associations, industry partners, academia, professional bodies, training and research institutions, and many others. We owe them our heartfelt gratitude. We also sincerely thank our clients for their trust and our partners in Hong Kong, the Mainland and overseas countries for their support.

I am grateful and honoured for the opportunity to have served the EMSTF, and I wish the EMSTF scaling new heights under the third Five-year Strategic Plan and living up to public expectations.