HKGCC welcomes the proposals laid out by Chief Executive Carrie Lam on 25 November in her fourth Policy Address. The initiatives to help Hong Kong through these difficult times, as well as support our development and further integration within the Greater Bay Area, are timely measures that will boost the economy and our future prospects.

GBA opportunities

The GBA initiative undoubtedly presents tremendous opportunities, particularly as the Mainland economy leads the way in recovering from the Covid-19 impact.

Chamber Chairman Peter Wong said: “The Greater Bay Area is the single most important opportunity for growth for Hong Kong, and the region can support our economic recovery.  We have been suggesting that the Government capitalize on opportunities in the GBA through a wide range of proposals, so we are pleased to see the Government tapping into the business community’s reservoir of ideas to support Hong Kong and the GBA’s development.” 

A wide range of measures to facilitate smoother travel and cooperation between Hong Kong and other cities in the GBA will be important in boosting cross-border cooperation. The quota-free scheme for Hong Kong private cars travelling to Guangdong via the Hong Kong-Zhuhai-Macau Bridge, combined with improving infrastructure, and rationalizing land boundary control points are things that the business community has long been calling for. 

Measures to better connect Hong Kong with other cities in the GBA will also help Hong Kong entrepreneurs tap into the Mainland domestic market with the support of one-stop business services, which also include business promotion, development and matching services. The expansion of the scope of the SME Export Marketing Fund for two years to cover large-scale exhibitions targeting the local market is something which the Chamber’s SME members have been advocating to help their businesses. 

Many of the Chamber’s members are already active in the GBA market. Speaking at a Chamber webinar last month, Felix Lee, Executive Director of UHP Healthcare Holdings Limited, said that moving into the region early has been a huge benefit and the company has seen a remarkable ten-fold growth since the GBA initiative was launched. 

“We are fortunate to be an example of a Hong Kong company that decided to have a foot in the market first and let the market drive our innovation,” Lee said. “It is important for Hong Kong companies to stay very focused and identify the opportunities and know where they stand.”

Besides its growing middle class, the GBA is also home to a rapidly expanding contingent of high-net-worth individuals, many of them from family businesses. So the Chief Executive’s announcement of a dedicated team under InvestHK to support the Family Office segment is something that the Chamber has been advocating, and should boost Hong Kong’s appeal. Edmond Lau, Senior Executive Director at the Hong Kong Monetary Authority, informed members at a recent Chamber event of the huge potential of the Family Office market for Hong Kong.

“The Asia Pacific has seen rapid growth in the financial wealth of high-net-worth individuals, which more than doubled from about US$11 trillion in 2010 to US$22 trillion in 2019,” Lau explained. “With the unique advantages that we offer, Hong Kong is well positioned to capture this potential growth.”   

To help businesses to access the GBA opportunities, HKGCC is cooperating with the Hong Kong Trade Development Council and Guangdong Province to provide advice and support. 

Prospects for Hong Kong’s youth

Improving the prospects for the city’s young people is crucial in planning for our future. The Greater Bay Area Youth Employment Scheme, which will provide funding for 2,000 graduates to work in the GBA, will not only provide more job options for local young people but will also help relevant businesses to access talent from Hong Kong’s top universities. The Chief Executive also announced subsidies for NGOs to help start-ups and young entrepreneurs in the GBA. These schemes will provide fruitful career paths for many more of Hong Kong’s innovative young people, and help them to fulfil their entrepreneurial dreams. 

“We hope these measures will help young people in Hong Kong tap into the vast potential that the GBA offers and allow them to advance their careers in this exciting market,” said Wong. “We will be happy to support these measures with the various stakeholders and will be working with our members to see how we can help maximize the success of these initiatives.” 

These GBA policies are good news for Hong Kong’s young people and established businesses alike. But they will not be able to take effect while the border remains closed. The Chamber hopes that the Government can continue working towards developing a health code system to allow cross-border travel to resume safely and as soon as possible so that these initiatives can start as soon as possible. 

A better lifestyle

Hong Kong’s acute shortage of land is one of our city’s biggest issues. The Chamber suggested in its submission to the Chief Executive that the Government adopt a multi-pronged approach to increase the supply of affordable housing, which should help provide short- to medium-term relief to the long-standing housing shortage. Making the best use of brownfield sites, agriculture land and rezoning sites as well as the redevelopment of various areas are all necessary to feed affordable housing units into the housing supply, which is something that the Chamber has been advocating for many years.

The Government has identified the land needed for public housing for the next 10 years from a mix of brownfield sites, reallocation of former agricultural and other sites, and reclamation at Tung Chung. As the Covid-19 crisis has lowered construction costs and increased the manpower available, we should take advantage of this opportunity and move quickly. 

Improving connectivity

The fruits of the Government’s commitment to upgrading the city’s transport network are highlighted by the new “Invigorating Island South” initiative to revitalize Aberdeen and Wong Chuk Hang, which has been enabled by the opening of the South Island Line in 2016.

So we welcome the development of the Northern Link Railway, which will connect the East and West Rail lines and enable more housing along the new route. The planned tunnel between Tuen Mun West and Chek Lap Kok will also increase the potential for residential development in the northwestern New Territories as well as providing a link to the airport.

Future cooperation between Hong Kong and Zhuhai airports has been facilitated by the bridge that now links the two cities. New developments include automated parking that will enable people from the Mainland to fly out of Hong Kong without needing to go through immigration, and will reinforce Hong Kong’s role as a global aviation hub. There will also be new facilities to strengthen the city’s aviation training capacity.

“It is very encouraging to see that the Hong Kong Airport and its transport ecosystem appears to be given national prominence as an international aviation hub for now and the future,” said Kenneth Bell, CEO of Tradeport Hong Kong and Chairman of the Chamber’s Shipping & Transport Committee.

“Improving the efficiency of our connectivity with the area’s economy and population will be critical to further develop our advantageous location in the southern part of the Greater Bay Area. It is hoped that further implementation of the automation and training initiatives mentioned, for example, will maintain Hong Kong’s aviation and logistics sectors as engines of economic growth and employment opportunities for many years to come.”

Jack So Chak-kwong, Chairman of the Airport Authority, welcomed the plans as strengthening the airport’s role as a “double gateway” to the GBA and the world. 

Greener transportation and improving access to the outdoors will benefit all Hong Kong people, so we look forward to seeing the new planned pedestrian routes, including along Victoria Harbour and between Admiralty and Tamar. These links will open up more of Hong Kong to enable walking for pleasure as well as more efficiency in getting around our compact city.

Connectivity is not just about physical infrastructure, but also a world linked by technology. 

The new “iAM Smart” will initially enable public services such as applying for vehicle licence renewal to be done online, before being rolled out for commercial use. We look forward to seeing it in action and helping our members to learn more in the future.

Rebuilding Confidence

With expectations that effective Covid vaccines will soon be available, next year should see a return to relative normality. However, the global economy has suffered a huge blow and some major economies are still battling very high numbers of Covid cases. 

The travel sector has been hit particularly hard, although the speed at which flight tickets between Hong Kong and Singapore were snapped up – before the travel bubble was suspended – gives reason for some optimism. 

“It will take some time before we know what the ‘new normal’ will look like after the travel restrictions and social-distancing measures ease,” said Chamber CEO George Leung. 

“We will closely monitor the developments in different sectors and markets to ensure we keep our members up-to-date with the latest information. The road to recovery may be difficult, but by working together we will be better prepared to face the post-pandemic world.” 

As we look towards a brighter tomorrow, it is important to restore confidence in the future of Hong Kong both among local young people as well as the international community to regain our reputation and drive Hong Kong’s future development.

“With clarity on policy, and an effective vaccine expected to be rolled out early next year, now is the time for us all to start rebuilding Hong Kong so that we bounce back as quickly as possible,” concluded Wong.

New Horizons for Hong Kong’s Youth

The GBA Youth Employment Scheme aims to encourage Hong Kong youngsters to develop their careers in the nine Mainland cities in the Greater Bay Area. Key aspects include:

• Open to Hong Kong companies with operations in both Hong Kong and Guangdong Province
• Target of 2,000 Hong Kong university graduates
• Including 400 jobs in I&T sectors
• Subsidy for I&T jobs of up to $18,000 per person per month (on salaries of $26,000 minimum)
• Subsidy of up to $10,000 for other jobs, on salaries of $18,000 minimum
• Subsidies to be paid for 18 months
• Total Government investment of $430 million
• Additional $100 million to support 400 entrepreneurs and start-ups

In Brief: Select Proposals from the Policy Address

• Subsidies for 2,000 GBA jobs for new graduates
• Quota-free scheme for private vehicles travelling to the GBA via the Hong Kong-Zhuhai-Macao bridge
• Enhance connection between Hong Kong and Zhuhai airports
• Relaxing restrictions in the REIT market 
• Promoting Hong Kong as hub for the family office sector
• Streamline administrative procedures 
• End of Double Stamp Duty on commercial buildings
• “iAM Smart” platform for online services such as vehicle licences
• “Invigorating Island South” plan
• Aiming for zero Covid-19 cases