In his landmark speech at the ceremony to mark 25 years since the establishment of the Hong Kong SAR, President Xi Jinping set out his expectations for the new Administration under Chief Executive John Lee. 

In my opinion, while strengthening confidence in the “one country, two systems” arrangement, President Xi’s remarks also provided direction for Hong Kong’s steady progress in the next five years. This is conducive to the new Government’s pragmatic approach to uniting all members of the community and promoting economic development.

President Xi emphasised that “one country, two systems” has proven to be an effective system that must be adhered to over the long run, and there is no reason to change it. The speech has boosted confidence among Hong Kong people and the international community in the steadfast implementation of this unique and successful arrangement. Local, Mainland and overseas investors can now be reassured that the ample opportunities available in Hong Kong will continue, as long as they abide by the law.

In fact, over the past 25 years, the Central Government has given full support to Hong Kong in maintaining its distinct position and advantages, as well as sustaining a free, open and rule-based business environment. These factors have consolidated our status as a global financial, transportation and trade centre. 

To maintain our hard-earned reputation as an international financial hub, Hong Kong must continue to leverage this support from the Mainland while engaging with the world, enhance our legal infrastructure and financial system, as well as ensure a transparent and level playing field. To this end, the new Administration should prepare for a rainy day by prioritising three areas.

First, the competitiveness of our tax regime should be enhanced to attract talent, businesses and capital to Hong Kong. Second, a comprehensive review of policies should be conducted to build a talent pool tailored for our post-pandemic economic recovery. Third, quarantine-free point-to-point travel with the Mainland, and the normal flow of people from around the world, should be resumed as soon as possible.

There is also room for improvement in the current quarantine arrangements for inbound travellers. I suggest that Hong Kong residents returning from overseas be put under hotel quarantine for the first three or four days, and then be allowed to travel point-to-point between their home and place of work for the remaining days; Hong Kong residents may undergo isolation and quarantine at home if they fulfill relevant requirements.

Since taking office, the new Government has enjoyed no political honeymoon: it has stepped straight up to start addressing the challenges, and has not avoided difficult tasks. By uniting all forces and mobilizing all positive factors wherever possible, the Government can take concrete steps to respond to people’s calls, address livelihood issues and create a more stable business environment.

I believe that – with focused efforts on economic development and industrial diversification – a brighter future is within reach for Hong Kong in the post-pandemic era.

Jeffrey Lam
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