Financial Secretary Paul Chan Mo-po (middle) attends Radio Television Hong Kong Radio 3's program "Financial Secretary Phone-in" on Feb 24, 2023 to answer questions from the public on the 2023-24 Budget. (PHOTO COURTESY OF HKSAR GOVERNMENT)

HONG KONG – Hong Kong’s finance chief said on Friday that the digital economy would be a key driver of growth and development for the city in the coming years.

Speaking on a public radio broadcast this morning, Paul Chan Mo-po reiterated that digitalization is one of the key elements to the city’s future development.

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“I think the digital economy is evolving very quickly. The way I see it is that digitalization is a very important tool, not just in itself as an industry, but it can also cut across different sectors to enhance their competitiveness and even transform their business model,” he said.

In order to offer better job opportunities and upward mobility to our people, we do think that we have to diversify our industry.

Paul Chan, Financial Secretary, HKSAR

Digitalization would help the city diversify its economy and provide more jobs, he said. 

“In order to offer better job opportunities and upward mobility to our people, we do think that we have to diversify our industry. (What we need is) not just diversification but also the quality of this development. So, innovation and technology is the way to go.”

To achieve the government’s policy objectives, he underscored the need to “have more clusters of business in this area so that jobs can be created”.

“So, in the Policy Address (announced) by Chief Executive and this Budget, we devoted resources into attracting enterprises, inviting them to come here to set up (their business) and attracting talent,” said Chan.

The financial secretary also stressed the importance of promoting and developing the green economy. Hong Kong is in a good position as many startups and companies are investing in this area, he added.

On property taxes, Chan said the special administrative region government is not considering a tax on vacant properties at the moment but it is reviewing its rating system for domestic properties.

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“We are reviewing our rating system and we are doing some internal infrastructure preparation. The aim, towards the end of this year, is that we will be able to introduce a more refined rating system and by that time, luxury properties may be levied at a higher rate,” he added.