Motion： “Actively responding to economic transformation and maintaining a favourable business environment”
Deputy President, economic transformation is crucial to the long-term development of a country or region. A favourable business environment can attract investments, facilitate innovation, nurture talents, thereby enhancing the overall competitiveness of the economy and helping it achieve transformation more effectively. These two elements work in conjunction with each other and are both indispensable. I am very grateful to Mr Jeffrey LAM for proposing this motion, urging the Government to assess the situation and create a favourable business environment for Hong Kong’s economic transformation and development.
Hong Kong’s business environment has long been remarkable on a global scale. In the latest edition of Global Financial Centres Index Report, Hong Kong regains its third global ranking and ranks first in the Asia-Pacific region. With the emergence of new economic growth areas, we have to adopt a more open attitude to leverage the strengths of various industries, professions and technologies, and foster collaborative development with an integrative mindset.
In order to actively respond to economic transformation and maintain a favourable business environment, there is an urgent need to strike a balance between regulation and development. As suggested in Mr Rock CHEN’s amendment, while reviewing the effectiveness of existing policies and regulatory measures, the Government should also examine ways to make the business environment more open, give enterprises ample room to grow, improve efficiency, enhance the vetting and approval process, and reduce compliance and operating costs. The regulation in Hong Kong must comply with international rules, but we also have to examine the actual practices of other competitors. We definitely do not need to window-dress, nor do we have to be a demonstration zone for regulatory theories. On the contrary, we should look at the actual effectiveness of regulatory measures.
Big data, artificial intelligence and other cutting-edge technologies are a powerful driving force for economic development. The Government has always emphasized the importance of innovation and technology (“I&T”). However, according to the Hong Kong Enterprise Digitalisation Index Survey released by the Hong Kong Productivity Council at the end of 2023, the enterprise digitalization index of Hong Kong stood at only 35.9, which indicates a “basic” level. Although Hong Kong enterprises are aware of the importance of digitalization and have started to apply digital technology in individual business procedures, digitalization is still in its infancy. On the contrary, digitalization is thriving in the Mainland. The value-added output of core industries in the digital economy in Shenzhen has exceeded RMB1 trillion, accounting for 40% of its GDP in 2023 and providing jobs for over one million people. The positive impact of digitalization on regional development is evident. Its growth can drive the prosperity of related industries. Hence, Hong Kong must take effective actions to accelerate digitalization.
At the same time, Hong Kong enjoys strong support of the motherland and is closely connected to the world with a diverse and expansive market. As a “super-connector”, the Government should actively promote trade flows among different markets, so that enterprises established in Hong Kong may develop their business domestically as well as in other regions. The Greater Bay Area development enhances connectivity among cities, while the Belt and Road initiative facilitates trade between countries. As an active participant in these two national strategies, the SAR Government should play a more proactive role in discussing with the governments of other regions, so as to provide enterprises with as much assistance and support as possible in terms of people flow and supply of goods.
Integrated development urgently requires interdisciplinary talents. Universities should grasp the demand for talents in the market and provide suitable talents for economic development. Given the increasingly robust trade between Hong Kong and non-English-speaking countries, talents proficient in minority languages can facilitate communication and cooperation between Hong Kong and those places. Currently, there is a lack of courses specialized in minority languages in Hong Kong universities. To cope with the needs of economic transformation, there is a need to offer relevant elective courses to increase the proportion of minority languages in the curriculum, with a view to enhance students’ proficiency in foreign languages.
Economic transformation involves the promotion of I&T development, education and training, environmental protection and sustainable development, international and regional cooperation, etc. Therefore, the creation of a favourable business environment is not the responsibility of just one policy bureau. Various government departments must adopt a holistic perspective and strengthen their cooperative mindset, so as to collaborate in the process of Hong Kong’s economic transformation and join efforts to create a sound administrative environment.
Deputy President, the world is changing every day. Hong Kong must evolve in order to adapt to the changes in the situation. All sectors of society must join hands to realize complementarity of edge and achieve the effect of “one plus one is greater than two”, so as to make the business environment more favourable and more conducive to economic development.
I support the original motion and the amendments proposed by the two Members. I so submit.