The two-day Digital Economy Summit that took place last month was a revelation in how far Hong Kong has progressed over the past decade, as well as the steps being taken for its transformation into a smart city.

I was honoured to give the opening speech at the symposium, which attracted business leaders and experts from various fields. The panellists sparked all manner of absorbing discussions on the future of smart city development, artificial intelligence (AI), new industrialization, Web3 and fintech, among other mega trends.

Explaining the Government’s targeted approach to turn plans into reality, Financial Secretary Paul Chan announced that Hong Kong will open an office this year to promote the development of the digital economy through the planning and launch of targeted digital policies. The launch of the office counts among 12 recommendations put forth by the Digital Economy Development Committee.

As the authorities work to realize these plans, I believe training and upskilling the existing workforce, while continuing to attract talented professionals from overseas, goes hand in hand with the pursuit of such high-quality development.

Because international competition in the digital field is fierce, collaboration between the Government and local businesses is essential to create opportunities for employees to acquire high-value skills. This would go a long way in preparing the city’s workforce to stay competitive in the ever-changing job market. While benefiting individual careers, it would also contribute enormously to the economic growth of the city.

Hong Kong is developing cross-border data flow with the Mainland. In December 2023, the Government introduced a pilot scheme to ease the flow of personal information in fields such as credit referencing, banking and healthcare across the Greater Bay Area. Upon completion of the scheme and assessment by the authorities, the initiative will be extended to other sectors, too. The “one country, two systems” governing principle also gives our city access to international data.

Such measures will further boost cross-border data flow and services while supporting Hong Kong’s research and development in various areas. Integral to all this is the Mainland’s role in the field – the scale of China’s digital economy in 2023 was estimated to be more than RMB 50 trillion, accounting for over 40% of its GDP.

Crucial to our metamorphosis into a smart hub is the digital transformation of SMEs, which are the backbone of Hong Kong’s economy. To that end, the Government is supporting SMEs through various initiatives. Embracing technology will greatly help SMEs in shoring up productivity, which in turn will lead to growth as Hong Kong sharpens its competitive edge in the digital economy.

Patrick Yeung
ceo@chamber.org.hk