In the past few months, there has been a great deal of discussion about the political environment in Hong Kong and its effect on business and investment. The General Committee of the Hong Kong General Chamber of Commerce is dismayed that those who express concern about some trends in the evolving political scene are often criticized as being "anti-democratic". In fact, this criticism is not only unfair, but also untrue. The Chamber believes that this is not an argument about democracy, on whose road Hong Kong is surely heading, but an entirely appropriate argument about whether certain social agenda items being put forward by some politicians have a negative impact on our business and investment environment and development.There is a feeling among many in the business community - ranging from "big business" to small and medium enterprises (SMEs) - that special interest groups, especially those in the labour and social welfare camps, are trying to pressure the SAR government to shape Hong Kong's business policies very vocally and deftly through the media and other public venues. These suggested policies more often than not require the SAR government to spend more on welfare, enact more regulations and introduce more legislation on employer/employee relations. In short, they add to the cost of doing business for the Hong Kong business community and ultimately affect employment. Nor is it helpful to try to separate the city into "business" and the "people", or "employers" and "workers". This does not reflect the true situation in Hong Kong, since few here do not depend for their livelihood on thriving businesses, whether they be a landlord, a shopkeeper, an office-worker, a labourer or a civil servant. There is a further attempt to separate "big business" from small and medium enterprises in Hong Kong, when in fact the business policies concerns mentioned above are shared by all businesses. The Chamber, for example, has over seventy-five percent of its 4000-strong corporate membership made up of SMEs, in addition to large local and international companies. The economic recession which Hong Kong is going through has exacerbated this counter-productive polarization of society. It is tough enough for all of us to survive the economic downturn, but for the sake of the future of both the economic and political development of Hong Kong, all three groups - businessmen, politicians and government - must work together to preserve our status as a top business and cosmopolitan city.How? First, let us talk about the business community. There is no doubt it must adjust. The political environment is evolving in only one direction, towards greater democracy and a more developed, pluralistic society. The so-called "good old days" are not coming back. 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.What about the politicians? There is no denying the fact that politicians must do their best to represent their constituents, and one can perhaps sometimes sympathize with their frustration at feeling ineffective in the current political structure. But more politicians must be sensitive to the greater good and be responsible to the whole of society. Asking for more public spending and handouts by the government is incompatible with our low tax structure, and incongruent with our successful traditions and incentive mechanisms. For some of them to whip up anti-business and anti-wealth sentiment is just as bad since businesses - including thousands of small and medium enterprises - and their employees generate the wealth of this city. We should not lose sight of how important to Hong Kong the "business community" is and how many people depend on those who risk their investments and energy in developing their businesses. Hong Kong is a business city; so the stronger the companies, the more everyone in Hong Kong benefits.Finally, the government plays a key role. Because this is an executive-led government with the legislative council essentially made up of the "opposition party", the government must be particularly sensitive not to appear to be imposing policies on the people. Some of the more provocative statements by politicians perhaps come from a sense of frustration with the government. The SAR government, just a short 20 months from a colonial government, must be given high marks for diligently trying to administer Hong Kong during this difficult period. However, there has to be more acceptance of responsibility for decisions, more instilling of confidence, and more massaging of policies if there is well-thought-out input from legislators or from the people as a whole. Reacting only to loud voices reinforces the inclination to air issues in a confrontational manner, which leads us down a vicious circle of pressure and public politicking. At the same time, the government must be firm in rejecting policies which are counter to Hong Kong's free market principles.The Chamber believes strongly that Hong Kong is still a great place to invest and do business. But there is a need for fresh action. Strengthening Hong Kong's role as a premier centre for international business remains critical if we are to meet our goals as a society. It is up to all of us to join in and not shy away, to communicate, to unite, and to work together for a more prosperous future.
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