A long-complacent Hong Kong must ditch outdated formulas to move forward

We have for too long relied on the opportunities facilitated by our close mainland ties, leaving us vulnerable
Hong Kong must recalibrate its trajectory, diversify its economy and secure a sustainable future in the global arena

Bernard Chan

Published: 9:30am, 9 Feb 2024

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The Policy Dialogue Series was launched under the auspices of the University of Science and Technology and Education University in 2018 to address Hong Kong’s complex issues and public policy challenges. It is deeply rooted in knowledge-sharing and pursuing open and constructive dialogue, fostering collaboration and innovation, proposing practical solutions and encouraging trade investment.

I was invited to attend the sixth edition. The theme explored Hong Kong’s capacity to maintain and develop as a vibrant and liberal channel between mainland China and the international community in an increasingly polarised world.

We examined several of Hong Kong’s critical challenges, many intensified by external factors, particularly the tensions between Beijing and Washington. Hong Kong is caught in the cross hairs of an increasingly insular United States determined to counter China’s economic and geopolitical ascent. These tensions are compounded by global economic uncertainties and persistent military conflicts, which have far-reaching implications worldwide.

Like the rest of the world, Hong Kong has undergone significant change, but it remains a vital bridge between the East and West. However, it is imperative that we understand and adapt to the requirements and demands of those with whom we seek to connect in this changing environment.

Catalysts that drove change in recent years include the 2019 social unrest, and the Covid-19 pandemic and lockdowns, which resulted in substantial economic and reputational damage. Additionally, the introduction of the national security law in 2020 raised concerns about the city’s autonomy and protection of civil liberties. The resulting enactment by the US of the Hong Kong Human Rights and Democracy Act, and the ongoing economic threats supported by some US-allied Western nations have affected Hong Kong.

These aggravating factors created a perfect storm, forcing business and political leaders to reassess, reimagine and embark on a process of reinvention to safeguard our economic future and the well-being of all our citizens.

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It has become evident that, over the years, we have grown complacent, relying heavily on the vast opportunities and financial gains facilitated by our close ties with mainland China. However, this overreliance has left us vulnerable and exposed to the risks associated with being heavily dependent on a single market.

Cultivating relationships and investing in emerging markets, particularly in Asean and the Middle East, is critical. These regions offer significant growth potential and provide alternative trade, investment and collaborative opportunities. We neglected them for too long, but fostering mutually beneficial partnerships is essential.

Furthermore, our failure to invest in improving our offerings to visitors and raising service standards have significantly hindered our competitiveness. While we enjoyed a steady flow of tourists in the past, we became complacent and neglected to improve and innovate. We are now paying the price.

The unfortunate events surrounding the much-anticipated arrival of Lionel Messi and Inter Miami last weekend have marred Hong Kong’s reputation, as the event ended up being overhyped, overpriced and underachieving. It left locals and visitors who had travelled here feeling short-changed and bitterly disappointed.

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WHY HONG KONG HATES MESSI

When we are struggling to match regional rivals, the completion of Kai Tak Sports Park will be pivotal in positioning Hong Kong as a premier sports and entertainment hub. But a world-class event schedule must be outlined quickly to maximise the opportunities and help rebuild our image.

What is apparent is that we can no longer rely on outdated formulas. This critical moment demands that we seize the opportunity to reassess our approach, identify areas for improvement and implement the necessary changes across various sectors without delay.

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Fostering a culture of innovation, entrepreneurship and risk-taking is crucial. We must invest more in education and talent development to equip our workforce with the skills and knowledge needed to thrive. Simultaneously, we should streamline regulations, reduce bureaucracy and encourage a business-friendly environment by supporting start-ups and small businesses.

Embracing sustainability and green initiatives will also play a vital role in positioning Hong Kong as a leader in sustainable development and in attracting environmentally conscious businesses and investors. We have the capacity to innovate.

As we move forward, our younger generations must understand and recognise the significance of their role in shaping the future and the need for their active involvement and commitment in driving progress.

The good news is that the crisis is forcing us to take bold and decisive actions. Hong Kong can recalibrate its trajectory, diversify its economy and secure a prosperous and sustainable future in the global arena.

Bernard Chan is a Hong Kong businessman and former Executive Council convenor