As the world grapples with rising geopolitical tensions and escalating tariff disputes, businesses and individuals face increasing uncertainty. This constantly shifting landscape is driving many to rethink their strategies for resource and capital allocation, while diversifying to reduce their risks. Fostering confidence amid global volatility will be crucial to mitigate current challenges.
Hong Kong must continue to reinforce its role as a free port and further cultivate its business-friendly environment, solidifying its position as a preferred business destination for companies from around the world.
In its recommendations to Chief Executive John Lee for his Policy Address this year, the Chamber has called on the Government to adopt a three-tiered approach to capitalize on opportunities during these uncertain times.
Immediate Action: Creating Confidence
Given the economic policy uncertainty in the United States, this is an opportune moment for Hong Kong to enhance its status as an international city and attract businesses and talent. We suggest launching a targeted marketing campaign to highlight Hong Kong’s unique advantages and proactively attract overseas enterprises to set up headquarters in the city.
Growing global uncertainties, combined with intense competition in the region, make business certainty and transparency in Hong Kong more crucial than ever. To strengthen the business-friendly environment, we reiterate our call for the adoption of a comprehensive regulatory impact assessment across all government policy areas. Additionally, the Government should consider publishing bilingual judgements in both English and Chinese to further enhance the transparency of the legal system.
The retail sector is under immense pressure to adapt to new consumption trends, with the food and beverage (F&B) sector particularly affected by this downturn. To enrich vibrant city living, we propose a targeted lease discount or subsidy initiative for F&B operators, alongside easing regulations on pet-friendly dining premises. A distinctive #HongKongOnly campaign that offers authentic cultural and culinary experiences will attract both visitors and residents to stay and spend.
To reinforce Hong Kong’s global competitiveness, we must develop a headquarters economy and further strengthen the competitiveness of key industries.
Finance: In the digital asset sector, the scope of stablecoin licences can be broadened to include stablecoins pegged to the renminbi (RMB). Additionally, real-world asset (RWA) tokenization can be tapped into by establishing an “RWA Exchange Pilot Scheme” within a regulatory sandbox framework. To facilitate gold trading, an OTC Trading and Central Clearing and Settlement System could be established along with the development of 24/7 trading platforms.
Intellectual property (IP): Establishing internationally accepted IP valuation standards would facilitate investment and IP trading, while IP financing and mortgaging can be promoted by encouraging financial institutions to integrate IP assets into their lending frameworks. Furthermore, IP arbitration and dispute resolution services could also be strengthened.
Shipping: In the face of intense competition among ports in the Greater Bay Area (GBA), the authorities could seek endorsement from the Central Government to establish Hong Kong as the cold chain hub for the GBA. The efficiency of the Port of Hong Kong can be improved by facilitating the simplification of customs arrangements between Hong Kong and Mainland cities, and offering transshipment cargo exemption for strategic commodities.
Mid-term Strategy: Accelerating Smart City Transformation
Amid rapid technological advancement and economic transformation, nurturing talent to meet Hong Kong’s future needs has become imperative. While attracting global professionals remains important, prioritizing investment in local talent is essential to cultivate a skilled workforce. Our vision is to create a diverse, AI-empowered talent pool that drives Hong Kong’s innovation ecosystem.
To that end, the Government should step up efforts to attract talent from overseas markets, particularly focusing on emerging regions like ASEAN and the Middle East. Additionally, the quality and stability of the workforce can be enhanced through retraining subsidies and tax incentives for employers. We also call for supporting women to rejoin the workforce by offering career guidance, skills training and onboarding assistance.
To prepare and equip the workforce for an AI-driven future, we suggest that the Government take the lead in understanding the AI labour market and evaluating the size of the skills gap. Furthermore, we call for an AI roadmap for talent development and support for universities to increase the number of AI graduates.
By promoting data-driven innovation, we can accelerate the development of the digital economy and strengthen strategic sectors such as AI and the low-altitude economy. We suggest that the Government take a “wait and see” approach to AI regulation. In addition, expanding the recognition of digital signatures, such as in banking and shipping documents, will foster a more efficient trading environment. While data is crucial for fueling the digital economy, making more data available more effectively and enhancing regional data connectivity will open up new opportunities for businesses.
The low-altitude economy is a vital component of smart city development. We urge the Government to accelerate the planning and construction of dedicated infrastructure for Advanced Air Mobility, as well as invest in digital infrastructure, including real-time data platforms, high-precision geospatial mapping and cybersecurity frameworks.
Long-term Goal: Building Resilience
The Northern Metropolis provides impetus for the growth of innovation and technology as well as other industries, driving future growth and sustainability for Hong Kong. Despite the pressures of the Government’s budget deficit, we support continued investment in infrastructure, particularly in the Northern Metropolis.
With only 25 years remaining to achieve its 2050 carbon neutrality goal, Hong Kong must accelerate its transition to a greener future. The growing circular economy demonstrates how effective environmental policies can simultaneously improve the environment and the economy. Moreover, enhancing the quality of living will help attract and retain both local and international talent, directly strengthening our human capital.
Hong Kong's clean energy transition is crucial for achieving carbon neutrality and mitigating the impacts of climate change. To achieve net-zero power generation, we suggest that the Government arrange for future nuclear imports to ensure stable pricing and reliable energy. To facilitate energy saving in buildings, the Government should introduce mandatory energy performance disclosures for commercial buildings and tenanted premises. We also propose measures to reduce carbon emissions across various transport modes.
Road vehicles: The use of electric vehicles (EV) can be promoted by increasing subsidies for electric commercial vehicles. Besides the development of EV infrastructure, renewable diesel can be supported as a transitional solution by amending regulations and providing financial incentives.
Marine transport: Catalyzing a comprehensive green maritime fuel supply chain and trade can be achieved by implementing mass flow metering systems and establishing charging infrastructure for local electric vessels. Additionally, the Port of Hong Kong can be positioned as a hub for green fuel trading, with green fuels stored in the GBA and traded as commodities in Hong Kong.
Aviation: Encourage the use of Sustainable Aviation Fuel (SAF) by establishing a clear timetable and plans for SAF adoption, introducing a SAF levy and developing a SAF blending facility at the airport.
As demographic challenges intensify, the Government should take the lead in formulating the population growth strategy. This strategy should address barriers to childbearing, such as financial limitations, job insecurity and housing concerns, to address the decline in fertility rates. Additionally, it must consider the needs of the elderly population in terms of land use planning, housing, transportation and overall infrastructure.
To ensure the long-term, sustainable development of society, improving healthcare accessibility is essential. This can be achieved by promoting the use of e-prescriptions and developing a comprehensive blueprint for telemedicine. We also recommend converting the current mandatory 5% MPF contribution into a structure of 4% MPF plus a 1% contribution to mandatory health savings. Furthermore, the Government should explore the application of AI in healthcare, particularly in areas such as diagnostics and oncology management, to drive medical innovations.
For the complete submission, visit http://bit.ly/4oHzKtW