Chief Executive John Lee Ka-chiu unveiled in his latest Policy Address on Wednesday a series of measures to accelerate Hong Kong’s new industrialization.
The Hong Kong Special Administrative Region government will set up the New Industrialisation Development Office, which, to be led by the commissioner for industry, will support strategic enterprises to develop in Hong Kong, assist the manufacturing sector in upgrading and transformation, and provide support for startups. The government will also provide HK$10 billion ($1.28 billion) in funding under the New Industrialisation Acceleration Scheme. These policies send very positive signals to the market with promising opportunities.
The new measures promoting new industrialization have received enthusiastic support from the industry and business sectors in Hong Kong. To name just a few of the up-and-coming initiatives, the government will set up the Hong Kong Microelectronics Research and Development Institute next year, and expedite the establishment of a supercomputing center. The Research, Academic and Industry Sectors One-plus Scheme will provide government funding for transformation of R&D outcomes from startups. To promote the downstream development of new industrialization, there will be financial assistance for enterprises in the fields of life and health technologies, artificial intelligence and data science, advanced manufacturing, and new energy technologies. The government looks to establish the third InnoHK research cluster, focusing on advanced manufacturing, materials, energy and sustainable development, in addition to the two existing InnoHK clusters, which focus on healthcare technologies and AI.
These measures show the government’s resolve to promote new industrialization through innovation and technology (I&T), which will strengthen Hong Kong’s advantages under “one country, two systems”, stimulate market vitality, and accelerate the development of an international I&T hub. Hong Kong has what it takes to become a poster child in the nationwide drive to promote new industrialization, and contribute to the country’s modernization and high-quality Belt and Road cooperation.
The Hong Kong Productivity Council (HKPC) is an integral part of Hong Kong’s I&T ecosystem and a key facilitator for new industrialization. It fully supports the new policy blueprint, and will take actions in four main areas to support new industrialization.
First, support enterprises with advanced technology, FutureSkills and government funding. The Northern Metropolis (NM) is a new engine for growth. Adopting an “industry-driven and infrastructure-led” approach, the NM will forge a major hub for Hong Kong to integrate into national development. It’s exciting that the government will unveil the action agenda for the NM. The I&T zone there will cover the San Tin Technopole, including the Hong Kong-Shenzhen Innovation and Technology Park of Hetao.
As one of Hong Kong’s largest and strongest research institutions in applied R&D, the HKPC maintains close cooperation with major stakeholders in Hong Kong and the whole Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to support innovation and industrial development and nurture talent. The HKPC has a wealth of expertise in tackling R&D challenges for industrial application, helping enterprises commercialize R&D achievements and providing customized technological solutions.
The HKPC has four offices in the GBA, including a subsidiary located in the Hetao cooperation zone in Shenzhen, which will play a bigger role as Hetao’s development picks up steam. The HKPC is also considering opening other offices in the GBA to help more mainland enterprises “go global”. Starting from July, the HKPC has organized a series of GBA Industry Network Clusters consultations with participants covering 26 industries and 41,000 companies. The exercise helps the HKPC gather insights about the pain points and needs of enterprises, and provide solutions in collaboration with local government authorities to address the issues identified and help enterprises stay competitive.
The Policy Address also mentioned that the government will establish the inter-departmental E-commerce Development Task Force and launch “E-commerce Easy” under the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD) to enable enterprises to make use of HK$1 million for e-commerce projects within the cumulative funding ceiling of HK$7 million. The HKPC is the implementation agency and provides secretariat services for BUD and several other government funding programs. It will continue helping enterprises make full use of government funding and explore new opportunities. The SME ReachOut team under the HKPC will also be upgraded to SME ReachOut 2.0 by launching “SME LevelUp Workshops” to provide e-commerce strategies and marketing consultations.
Second, deepen Hong Kong-Chinese mainland cooperation, enhance Hong Kong’s strengths as an international city, gather global resources to drive innovation, and contribute to high-quality Belt and Road cooperation. The HKPC has been a pioneer in strengthening ties between Hong Kong and the mainland, especially in I&T cooperation. It also channels global innovative resources into the GBA. Numerous top-notch research institutions from the mainland and abroad have established branch offices at the HKPC. In May, the HKPC signed an agreement to collaborate with the National Innovation Center par Excellence, which is headquartered in Shanghai. As the chairing organization of the Guangdong-Hong Kong-Macao Greater Bay Area Productivity Promotion Service Alliance, the HKPC takes the lead to build platforms for translating R&D outcomes into practical application. It also helps industries tap opportunities from emerging markets such as Association of Southeast Asian Nations and contribute to Belt and Road cooperation.
Third, promote green, sustainable development. It is encouraging to hear about the Strategy of Hydrogen Development in Hong Kong proposed in the Policy Address, which will help public transportation become greener, and boost the development of green-economy, new-energy and renewable-energy industries. The HKPC welcomes the government’s move to start preparatory work for the necessary legislative amendments related to the production, storage, transportation and application of hydrogen fuel.
The Automotive Platforms and Application Systems (APAS) R&D Centre under the HKPC recently released Hong Kong’s first hydrogen economy report, sharing insights about the latest global technology advancements and opportunities for Hong Kong. The report aims to help the HKSAR government formulate a long-term strategy for the application of hydrogen fuel in land transportation and other initiatives to promote the hydrogen fuel industry, to work toward the goal of achieving carbon neutrality by 2050. APAS will follow the government’s policy direction to foster the development of new-energy, hydrogen-energy and autonomous-driving technologies, and help more Hong Kong and mainland enterprises gain a greater foothold in the international market.
The HKPC will also press ahead with efforts to strengthen Hong Kong’s edge in areas such as green technology, ESG (environmental, social, corporate governance), green infrastructure, new-energy vehicles, and green transportation. We will deepen collaboration with universities, research institutions and business associations at home and abroad, and organize more green training courses for the industry to embrace green, sustainable new industrialization.
Fourth, support young people’s development, expand the talent pool, and provide more opportunities for upward mobility. The Policy Address also announced the establishment of the physical office of the Hong Kong Talent Engage, following the launch of the online platform last year. Attracting global talent is a key catalyst to accelerate Hong Kong’s I&T development and new industrialization. The HKPC is committed to growing the talent pool, and will launch training programs to nurture more talent and help enterprises meet the growing demand for high-tech personnel.
The HKPC Academy will provide more exchange programs and courses for young people to help them gain a deeper understanding of the country’s achievements in science and technology and the development of the GBA. This will enhance Hong Kong young people’s affinity for the country and their home city. At the same time, they will have more opportunities for upward mobility, as the I&T ecosystem in Hong Kong and level of new industrialization keeps advancing.
During the national meeting on promoting new industrialization held in Beijing in September, President Xi Jinping stressed the importance of new industrialization to achieve high-quality development. Government authorities across the mainland have begun to introduce supportive policies, to pursue innovation-driven industrial development, transform and upgrade traditional industries, enhance the competitive edge of advantageous industries, promote emerging industries, and make strategic plans for future industries. New industrialization is a journey during which green, low-carbon, and sustainable development will prevail.
As the momentum for new industrialization keeps growing, Wednesday’s Policy Address provides the city’s answer to the country’s call for action. It will open a new chapter in Hong Kong’s practice of “one country, two systems”, under which Hong Kong will make greater contributions to the country’s development in new industrialization, and will also benefit from unprecedented opportunities to unfold with the country’s development.
The author is chairman of the Hong Kong Productivity Council.
The views do not necessarily reflect those of China Daily.
