Reflections, opportunities and challenges

As I approach the end of my tenure at Invest Hong Kong, I have been reflecting upon what has and hasn’t changed over the 34 years since I first arrived in Hong Kong 1989. And where will the opportunities lies in the years to come.

What has not changed is the dynamism of the city. It’s energy. It’s wonderful and eclectic mix of urban density, country parks, beaches; vibrant districts; and the sights, sounds and smells that are all part of the very essence of Hong Kong. What’s more, the Hong Kong spirit is as strong as ever as we move full-steam ahead. 

What has changed is the the scale and sophistication of the opportunities open to people and businesses alike in and from Hong Kong. 

In 1989, China was still in its relatively early days of opening and reform. Few people back then really foresaw the extent and speed of the mind-boggling transformation of the country that was underway notably leading to lifting hundreds of millions of people out of poverty. This is a monumental achievement.

At the same time, members of ASEAN have seen tremendous growth overall, although at the member state level this is not an even achievement and some have faced a bumpier road and periodic set-backs. But the overall direction of travel is clear. Asia will be the engine of global economic growth in foreseeable years. But there are more fundamental changes afoot.

But what of the future in a post-pandemic world? A world that seems to get more complex by the day on the geopolitical front. A world where technology is moving at a pace that is hard to keep up with. Technology that can do great good, or be put to more malign use. Technology that risks leaving some behind who don’t have access to it, or the skills and confidence to use it. This could have serious socio-economic consequences unless we ensure equitable access to all and more generally economic developments for all. 

In all of this, I think Hong Kong is in a well-positioned place. Its important role within China under ‘One Country, Two Systems’ has never been more explicit. Policy support from Beijing is high. And the development of the Greater Bay Area combined with extensive range of policy support for the development of I&T in Hong Kong is a recipe for making the region amongst the strongest clusters globally. Indeed it is one of, if not the most, exciting economic developments on the planet today. 

Business people would do well to read and absorb what is said and written by senior leaders of the country to understand what is really happening. Sadly, much media and political commentary is, and let me say this diplomatically, off the mark and less than informed. 

But back to the big picture opportunity. This is also all happening in the context of RCEP, which will further fuel growth in AsiaPacific. 

What I foresee is a fundamental shift of trade and investment flows to rebalance the old and established East West flows through rapid growth of North South flows intra Asia PAC. 

So new opportunities will abound. 

Naturally there are challenges too. Meeting net zero commitments is going to prove a challenge, but also a wealth of innovate solutions if we see bolded and swifter action by more governments. If we get this right, there is major upside. 

Geopolitics is the elephant in the room and a factor that creates uncertainty, perceived or real. If we do move to a multi polar world, which seems more and more likely every day, we need our leaders and politicians to exercise wisdom to ensure that the needs of people come first.

In another post I will share more on other really important trade and investment corridors that I think are on the cusp of rapid development. 

In summary, opportunities really do abound and by far outweigh the challenges. It’s time to look at things afresh and to delve deep and well- beyond the hyperbolic and misleading headlines and rhetoric.