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Business the catalyst of Hong Kong's success

SAR still has a lot going for it and has nothing to fear from neighbouring cities, says the Chief Secretary for Administration

Following are excerpts from a speech by the Chief Secretary for Administration Donald Tsang at a Chamber's 140th Anniversary Distinguished Speakers luncheon on July 27.

These are good questions which I hear debated all around me. By legislators, commentators, critics, business people, academics, teachers, nurses, doctors, lawyers, taxi drivers and men and women on the top deck of the Shau Kei Wan tram. That's the great thing about Hong Kong: you never find yourself short of someone with an opinion to express or, more likely, an argument to make.

Having said that, I can understand why in the aftermath of the Asian financial crisis, many of our fellow citizens still feel bruised and battered. I can understand why they are worried by the uncertainties of the world economy and the march of globalisation. That's only natural. But have we forgotten that Hong Kong is the most international of all cities - Asia's world city? Is it not true that globalisation will naturally benefit more those economies which are open and competitive? To my mind the new opportunities which globalisation offer are abundant enough to hurdle any hazards that may come our way.

The Chief Executive, in launching this Distinguished Speakers series, went into some detail about his vision of our role in the Pearl River Delta. It's a role full of promise, so long as we are prepared to seize the synergy.

The whole of China is our backyard. This is the country which is expected to become the world's second largest economy within the space of the next 25 years. Is that an opportunity or a threat? Will poor little Hong Kong get steamrollered on the way to this astonishing achievement? Will we be left behind by Shanghai? Let me deal with that last question, as it is one that has taken on a life of its own.

It has almost become an urban myth that before too long Hong Kong's star will be eclipsed by Shanghai's; that Shanghai is a 'happening' place that is fast catching up and even now luring business away from Hong Kong. More often than not, the rapid advances in Shanghai - and elsewhere in China such as Shenzhen and Guangzhou, not to mention Singapore and Sydney - are explained in terms of 'win and lose'. As in: Shanghai is becoming much more prosperous and open so therefore Hong Kong will lose out.

This proposition is far too simplistic. Not only that, it's wrong. Hong Kong and Shanghai do, and will continue to, play complementary, rather than competitive roles. Hong Kong is and will remain the pre-eminent international financial centre for the Mainland as well as in the wider context the major hub for regional headquarters in the Asia-Pacific. Shanghai will continue to develop as the major manufacturing, financial and business centre for the domestic Mainland market. The Mayor of Shanghai sums this up rather well by describing Hong Kong and Shanghai as the twin-engine of the national economic machine, helping the nation to take off, and reach higher economic platforms in this century.

These are our strengths. This is the Hong Kong advantage. It's imperative that we protect and enhance these assets.

There is certainly a recognition of this by the Hong Kong General Chamber of Commerce. I welcomed the initiative of this, our oldest and largest business organisation, just over two years ago when the general committee set out its stall, so to speak, on the changes in the SAR's political scene. In acknowledging that the SAR political environment is evolving in one direction: towards greater democracy and a more developed, plural society, the General Committee had this to say: "Communication and dialogue with the media, with the politicians, and with the grassroots population is a requirement in the post-handover - Hong Kong people ruling Hong Kong' society. This dialogue will not be easy, since not everyone will agree with every agenda item of the business community and since politics is often messy and sometimes openly adversarial in nature. But businessmen must be prepared to roll up their sleeves and set out their case. And the business community has a good case, since the true definition of 'business community' is almost as wide as the entire six-million-plus population of Hong Kong."

Mr Chairman, I apologise if I have gone on at some length. But I did not want to let this opportunity slip to convey some important messages to this audience. First, that for all our problems, real and imagined, Hong Kong has a hell of a lot going for it; and we can capitalise on that if we rekindle some of our fighting spirit. Second, that we have nothing to fear from neighbouring cities so long as we leverage our unique advantage under One Country Two Systems. And third, that the business community needs to think about doing more to make its case in the SAR’s evolving political scene. I hope these messages have provided some food for thought."

You can read the Chief Secretary's entire speech on the Chamber's Web site, http://www.chamber.org.hk/info/speech/01072701.asp