Talking Points
Making Our Regulations Fit For Purpose

The rule of law and a free economy tend to be top of the list when people talk about why Hong Kong is such a great place to do business. But in recent years, the balance seems to have tilted towards the "rule" aspect. Regulations are proliferating, which in turn is restricting the freedom of businesses to grow.


We certainly support the rule of law. But we feel that a little bit more attention should be paid to ensure that all of our regulations are fit for purpose. This is particularly important as technology rapidly transforms how we live and work.


Some of Hong Kong's laws that affect e-commerce and our ongoing digital transformation are bafflingly archaic. We are already playing catch-up with our rivals when it comes to the digital economy; outmoded regulations mean we risk falling further behind.


Another problem is that Government departments work in silos, so sometimes a single issue is covered by a number of different bureaus. 


The silo issue is a common complaint around the world – in large corporations as well as governments. But we feel that more coherent oversight would help address this issue. For cross-bureau projects, for example, a single department should take the lead and act as coordinator.


Our lack of a Regulatory Impact Assessment (RIA) framework is another reason why some of our rules are working against the interests of business. RIA is a process used by other developed economies to test the impact of laws and regulations before they are introduced. 

 

In the U.K., an initial cost-benefit analysis is done by the relevant government department. The results are then subject to a thorough assessment by the Regulatory Policy Committee, which is an independent body. The Committee also reviews each piece of legislation after five years. This seems to us to be a sensible and workable approach. 


Here in Hong Kong, we need to ensure all our regulations are working for the growth of the city. We hope to see the introduction of a mandatory and independent RIA framework in the near future. 

Top

Over the years, we have helped businesses overcome adversity and thrive locally, in Mainland China and internationally.

If you want to take advantage of our network,insights and services, contact us today.

VIEW MORE