Last month Chief Executive John Lee led a successful mission to Singapore, Indonesia and Malaysia, which reinforced our connections with the three ASEAN members and explored a host of new business opportunities for Hong Kong. Moreover, it also allowed us to continue sharing our good stories with the international community.
The week-long trip marked Lee’s second visit to Southeast Asia since taking office last year. These outreach initiatives have resulted in a raft of bilateral agreements, built new partnerships, and created plenty of goodwill.
Given the gradual shift in power dynamics from the West to the East, ASEAN offers vast development potential. Lee has predicted that the region is on track to take over as the world’s biggest economic engine. With a population of over 660 million, ASEAN registered economic growth of 5.5% last year, marking an average 4% annual increase in the past 10 years. It was Hong Kong’s second-largest trading partner in 2022. Trade and Industry Department data shows that total merchandise trade amounted to a whopping HK$1.29 trillion, accounting for 13.7% of the city’s total.
Singapore and Hong Kong are often seen as competitors, but this should not come in the way of grasping opportunities for mutual investment and growth. After all, Singapore is Hong Kong’s largest trading partner within ASEAN. On the mission, the two financial centres signed seven Memorandums of Understanding, underlining collaboration across sectors like trade, research, fintech and financial services. Lee also stressed that Hong Kong and Singapore must continue as staunch advocates of free trade, especially in the face of rising protectionism.
In Jakarta, no fewer than 15 MoUs were signed, covering green finance, meteorology, aerospace, sustainable finance and maritime services. Hong Kong, which was Indonesia’s third-largest source of foreign investment in the first half of the year, is also working to diversify its markets in an effort to become more conducive for Islamic finance.
One of the mission’s goals was to garner support for Hong Kong’s inclusion in the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free-trade pact covering 15 Asia-Pacific countries including all 10 ASEAN nations. Seeing that Hong Kong has a free trade agreement with ASEAN, it could be said that the foundations are already in place. As a super connector to the Greater Bay Area and China and via the Belt and Road Initiative, the city also acts as a springboard for businesses looking to invest and diversify.
In a world shaken by geo-political risks, supply chain upheavals and weak demand, the need now more than ever is to expand international collaboration and economic cooperation. The HKSAR Government’s ASEAN mission has done just that, and businesses that we met during the trip were also eager to connect with us. I hope that members, during their business trips and meetings with visitors, can also spread good stories to dispel misinformation and reinforce Hong Kong’s reputation as a future-forward business hub.
Betty Yuen
chairman@chamber.org.hk