Something is happening at the grassroots level with various complementary and simultaneous initiatives and white paper plans on the opportunities and potential that NewSpace can offer Hong Kong.

NewSpace is an emerging part of the global economy that is involved in the commercial exploitation of the space environment. Think SpaceX from Elon Musk and the thousands of microsatellites launched over the last few years with strong commercial intent for services like the global internet.

That now includes the new Chinese-led Thousand Sails mega-satellite constellation that began in earnest with a Long March 6A launch in August. With the first 18 satellites sent up, of the 100 expected by the end of the year, the project led by Shanghai Spacecom Satellite Technology plans to compete directly with Musk’s Starlink network in coverage, capability, and price.

This is an economy that is already worth $500 billion and is predicted, as I’ve mentioned in previous pieces, to break the magical $1 trillion boundary by the end of the decade, according to investment bank Morgan Stanley, and perhaps $1.8 trillion by 2035, as forecast by the World Economic Forum. It is big and globally significant.

It is also clear that these Hong Kong-based grassroots efforts have arisen due to a lack of clear policy, engagement, direction, and support from our Hong Kong Special Administrative Region government about this issue.

The last HKSAR Policy Address mentioned “space” six times, but only in urban space — not that above our heads! This was mentioned in Carrie Lam Cheng Yuet-ngor’s last Policy Address during her tenure as chief executive. Are we going backwards here?

Indeed, there appears to be a disconnect between Hong Kong’s aspirations and plans for the overall region and the future Northern Metropolis as a green, ESG (environmental, social and governance)-enabled, global smart city beacon and the lack of understanding of what is needed for us to get there.

The HKSAR is ranked a dismal 20th globally in the International Institute for Management Development’s respected Smart City Index 2024 and is falling further behind, while our major competitor, Singapore, is ranked first in Asia. We need a vertically integrated, ground-to-space, smart city sensor ecosystem to reverse this lamentable position. Sadly, this does not currently exist.

Furthermore, all this should be seen against the HKSAR’s major policy objectives for the Northern Metropolis and the green lights the Chinese mainland is sending us in the aerospace arena. Examples include the University of Hong Kong (HKU) and the Hong Kong Polytechnic University (PolyU) being given access to moon rocks from the Chang’e 5 sample-return mission (and soon hopefully Chang’e 6), a confirmed Hong Kong taikonaut, and access to the country’s space missions like the participation of HKU’s Laboratory for Space Research in the Chang’e 7 wide-field telescope camera project under the auspices of ILOA, the Hawaii-based International Lunar Observatory Association, and so on.

We seem stuck on amber at the traffic lights of progress in this mainland priority, high-tech, NewSpace sector. This is set against the backdrop of the rapidly growing presence of commercial NewSpace companies like AdaSpace, Spacety, JTSpace, Star Vision, Feilong, and Silkworm in Hong Kong.

Entrepreneurial NewSpace activity and policy must combine effectively. As the grassroots voices currently make clear, this area needs a robust and positive policy overhaul from the HKSAR government. If this occurs, our wonderful city can take better advantage of the regulatory and legal processes associated with space use, smart city remote-sensing, and artificial-intelligence and internet-of-things imperatives

We are not yet grasping the high-tech opportunities in NewSpace to grow and enhance our technical and scientific capabilities. Indeed, in PolyU’s current Innovation and Technology Index, the HKSAR ranks only seventh across China.

There are many reasons for this low ranking. Still, it is clear that although we have what it takes to achieve a bold, high-tech vision for Hong Kong, the current Hong Kong Innovation and Technology Development Blueprint needs to look up to what space can deliver through infrastructure such as remote-sensing satellites fit for the 21st century.

A policy pivot is required, not just an endorsement but active support. The area of NewSpace is falling under the radar but is ripe for exploitation. It can rapidly help turbocharge our city up global rankings. Things may be finally stirring, given the welcome recent announcement of the one-off call under the Innovation and Technology Support Programme for grant applications under aerospace.

One area in which Hong Kong outperforms other Chinese cities is our status and impact as a global fintech powerhouse based on a robust, internationally respected banking and investment infrastructure framework. We are well placed to facilitate major capital investments and IPOs, and deploy regulatory, legal and compliance expertise and capacity in support of the NewSpace economy. This is firmly based on our effectively free market and international reputation. We could play a significant role but must maximize what we have. Some specific mainland mentoring and guidance would be of enormous benefit here.

To sum up, we are entering a rapidly changing landscape. Opportunities abound for what is an increasing Chinese mainland and global strategic priority, but they are better recognized in Singapore and Shanghai than here. Hong Kong is lagging. Entrepreneurial NewSpace activity and policy must combine effectively. As the grassroots voices currently make clear, this area needs a robust and positive policy overhaul from the HKSAR government. If this occurs, our wonderful city can take better advantage of the regulatory and legal processes associated with space use, smart city remote-sensing, and artificial-intelligence and internet-of-things imperatives.

The author is a professor at the Faculty of Science and director of the Laboratory for Space Research at the University of Hong Kong.

The views do not necessarily reflect those of China Daily.