Financial Secretary Paul Chan Mo-po delivers a speech at a summit on the digital economy's development of new opportunities, organised by the Greater Bay Area International Information Technology Industry Association on Jan 4, 2024. (PHOTO / HKSAR GOVERNMENT)

Officials on Thursday underscored Hong Kong’s resolution to develop a robust digital economy amid increasingly tough competition, saying the technology-powered sector will act as a key driver for the city’s growth. 

“As an international financial center and an innovation and technology hub, Hong Kong should proactively promote the development of the digital economy as competition in these areas is very keen and the pace of evolution is fast,” Financial Secretary Paul Chan Mo-po said at a summit held in the city.

“It can even be said that if we do not move forward quickly, we will lag far behind,” he added.

Leung Chun-ying, vice-chairman of the National Committee of the Chinese People's Political Consultative Conference, said Hong Kong’s integration into the overall development of the national digital economy should serve both the city’s and the mainland’s needs

The digital economy is a trend and an important driver of global economic development, Chan said, adding that digitalization has brought positive changes to production activities, enterprise operations and business models, helping enterprises to enhance efficiency and competitiveness and explore new business opportunities.

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“It is also driving the smartening of cities, enhancing the efficiency of public services and improving people's lives,” Chan added.

 While digitization brings opportunities, it also brings challenges. As data and electronic transactions are used on a larger scale and involve more cross-border applications, and as generative artificial intelligence becomes more popular, there are pressing problems in safeguarding data security, and dealing with legal and ethical issues arising from the use of data, Chan said.

As a key part of efforts to develop its digital economy, the Hong Kong government in 2022 set up the Digital Economy Development Committee, which has focused on digital infrastructure, digital transformation, cross-boundary flow of data and manpower issues.

Chan said the city will improve the top-level architecture for policy, governance and implementation of the digital economy, speed up digital infrastructure construction, promote the secure and orderly flow of data as well as cultivate talent in the industry.

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Addressing the same event, Leung Chun-ying, vice-chairman of the National Committee of the Chinese People's Political Consultative Conference, said Hong Kong’s integration into the overall development of the national digital economy should serve both the city’s and the mainland’s needs.

The former Hong Kong chief executive painted a rosy picture of the country's digital economy development, which will be reflected in industrial synergy, the upgrading of intelligence and the competitiveness of traditional industries, and the digital transformation across sectors.

There are also vast opportunities in data management, ranging from storage, security and sharing, particularly for cross-sectoral use.

Liu Guangyuan, deputy director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, said the vibrant development of the national digital economy has provided the special administrative region with solid support and unlimited opportunities.

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He said that Hong Kong possesses good conditions to foster its digital economy, and the city is expected to contribute its strength to the construction of the Digital Guangdong-Hong Kong-Macao Greater Bay Area.

Acknowledging that international cooperation and the development of the digital economy are facing strong headwinds due to the unilateralism and protectionism of a few countries, Liu said no attempts at containment or suppression would stop China's development and progress.