Experts said that the government should formulate proactive polices to promote the Internet economy, finance technology, creative industry and high-tech manufacturing activities, which can create more jobs and help rebalance the city's economy. Parker Zheng / China Daily

Govt urged to play a more active role in promoting high-tech industry

Some economists interviewed by China Daily said they agreed with Chief Executive (CE) Leung Chun-ying that the government should play a more direct role in promoting the development of the high value-added technology industries in competition with other neighboring economies.

In an interview with Xinhua published on Sunday, Leung reiterated his view, put forward earlier in his 2012 election manifesto, that the traditional "positive non-intervention" economic policy is outdated in this highly competitive regional economic environment.

"One of the reasons why I propose this new idea is that the governments of Hong Kong's many rival economies have been quite active in dealing with economic and livelihood issues," he added.

If Hong Kong is to compete with its rivals, including Singapore and South Korea, the government has to reconsider what role it should and could play, Leung said.

That role, Leung said, should be one of a proactive leader and coordinator with the business sector, citing Singapore's advantages as a member of the Association of Southeast Asian Nations and South Korea's success in developing its creative industry.

The Singaporean government recently initiated the restructuring of the city state's economy by shifting the focus to the development of high-tech and capital-intensive industries and high value-added services. According to International Monetary Fund data in April, Singapore's per capita GDP (gross domestic product) reached $82,762 in 2014, compared to the Hong Kong's $54,722.

Billy Mak Sui-choi, a professor at Hong Kong Baptist University's Finance and Decision Sciences Department, said that the government should do more in infrastructure development and increasing land supply to nurture the growth of new industries and lessening the cost burdens in startups.

"The administration should formulate proactive polices to promote the Internet economy, finance technology, creative industry and high-tech manufacturing activities," Mak told China Daily.

"These new industries can generate synergistic and diversification benefits that can help rebalance the Hong Kong economy, which as become too reliant on the finance and property sectors. Also, diversification can create more jobs in the city," Mak said.

Chong Tai-leung, a finance professor at Chinese University of Hong Kong's Economics Department, said that the government's proactive role in economic development should concentrate on upholding the three cornerstones of the success of Hong Kong.

"Hong Kong is without any natural resources, and if it wants to thrive as an international financial center, it must protect freedom of movement in talents and capital. To make it happen, Hong Kong should devote more resources to education, maintain its low-tax regime and uphold the rule-of-law tradition," Chong told China Daily.

The Chief Executive in the Xinhua interview said that the administration will lend more support to the city's small- and medium-sized enterprises.

"People from Singapore often told me that they envy Hong Kong for having produced many successful businessmen. I told them that Hong Kong also has many medium- and small-sized enterprises which are highly successful in overseas markets. We should support them and promote their overseas businesses," Leung said.

The Chief Executive added that the government will open more overseas economic and trade offices to promote Hong Kong.

The administration has set up a total of 11 economic and trade offices overseas, according to the Xinhua report.

oswald@chinadailyhk.com

(HK Edition 08/11/2015 page8)