Before the release of the Budget next month, the Government estimated a consolidated deficit of approximately $100 billion for the 2024/25 fiscal year. In light of this fiscal challenge, collaboration between the authorities and the business community is essential to promote Hong Kong and stimulate the economy.

With the Trump administration taking over, Sino-U.S. relations and geopolitical tensions bring uncertainties that impact our externally oriented economy and raise concerns for economies around the world. 

As an international metropolis known for its flexibility, freedom and openness, Hong Kong is well prepared to meet these challenges by proactively expanding into emerging markets such as ASEAN countries and regions along the Belt and Road.

In fact, Hong Kong has always been a bridge connecting the Mainland and the world. Under the “One Country, Two Systems” governing principle, the city boasts a common law system and a simple low tax regime. It remains an important international hub for foreign businesses and investors. Recently, several foreign enterprises have expressed intentions to expand their operations here, while companies that relocated overseas in recent years are gradually returning to our shores. 

This clearly demonstrates that Hong Kong continues to retain its unique and irreplaceable advantages. In the face of a complex and ever-changing external political landscape, the most effective strategy is to focus on bolstering our economy.

Despite the fiscal deficit, the Government should not concentrate solely on reducing spending. Instead, it should take the initiative to establish more economic and trade offices in emerging markets, providing one-stop services for foreign businesses and skilled professionals interested in coming to Hong Kong. Additionally, organizing more mega-events, large-scale exhibitions, and forums will help promote the city while attracting businesses and talent and injecting new impetus into economic growth.

In addition to the Central Government’s supportive measures and proactive efforts by the Hong Kong authorities to facilitate economic development, the business sector – a critical driver of the city’s economic progress – can also play a vital role by participating in significant events to explore new opportunities. 

Moreover, businesses should seize the prospects arising from the Northern Metropolis to develop high-tech industries while daring to expand into emerging markets like the Middle East and ASEAN. By leveraging their overseas networks, the business community can effectively promote Hong Kong’s unique advantages both domestically and internationally, thus contributing to the city’s economic growth.

Jeffrey Lam
jeffrey@jeffreylam.hk