FHKI Welcomes 2023 Policy Address

Proposing Practical Measures for Innovation and Recovery

 

 

Chief Executive John Lee delivered his second Policy Address today (25 October).  The Federation of Hong Kong Industries (FHKI) is delighted to see that, in addition to proposing short-term measures for public relief and support for small and medium-sized enterprises (SMEs), the Policy Address also demonstrates a firm commitment to realizing the long-term vision of developing innovation and technology (I&T).  The Policy Address explores the new growth areas with an industry-oriented policy approach.  FHKI firmly believes that promoting the development of innovation and new industrialization to diversify Hong Kong's economy is a targeted solution, which aims to enhance Hong Kong's competitiveness and empower future generations with an entrepreneurial spirit.

 

Advancing New Industrialisation with Policy and Funding Support Accelerating Digital Economy and Smart City Benefits Industry Development Addressing Urgent and Market Needs of SMEs Fortifying I&T Talent Pool with Attraction and Retention Initiatives

 

Advancing New Industrialisation with Policy and Funding Support

FHKI greatly welcomes the numerous initiatives fostering I&T and new industrialisation as outlined in the Policy Address. Key measures, include, the formation of the New Industrialisation Development Office to promote new industrialisation in Hong Kong; the allocation of a $10 billion New Industrialisation Acceleration Scheme to provide matching funds to selected fields; the establishment of a third InnoHK cluster focusing on advanced manufacturing, materials, energy and sustainable development; and the establishment of a preparatory office for the Hong Kong Centre for Medical Products Regulation. These initiatives are crucial steps towards the long-term objective of establishing an authority that registers drugs and medical devices under the “primary evaluation” approach, and developing into a health and medical innovation hub.

 

The Northern Metropolis, being the new economic growth engine of Hong Kong, has long been anticipated by FHKI for a detailed government planning.  FHKI expresses great delight in the Government's forthcoming Northern Metropolis Action Agenda, which strategically divides the region into four key zone and fosters deep integration with the planning initiatives of Shenzhen and other GBA cities.  The proposal to build a gallery showcasing the Northern Metropolis to the public is also commendable. The Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone located at the convergence point of the Northern Metropolis and the Guangzhou-Shenzhen innovation and technology corridor holds great promise. FHKI agrees with the Government's collaboration efforts with Shenzhen in fostering a harmonious development across both parks. Innovative measures under exploration include providing travel convenience for R&D personnel by the use of facial recognition technology to achieve contactless clearance, facilitating cross-boundary capital flow and facilitating exchanges on data and samples (including clinical biological samples).

 

Accelerating Digital Economy and Smart City Benefits Industry Development

 

FHKI appreciates the government's decision to set up the Digital Policy Office, led by the Commissioner for Digital Policy. This office will be responsible for formulating digital government, data governance, and IT policies and proposing various measures to expedite the development of a smart city. These include issuing and verifying various electronic licenses and certificates using blockchain technology, expanding 5G networks in rural and remote areas and promoting digital technology applications within the social welfare sector. FHKI believes this will provide a larger market and database for the industry. It is hoped that the Digital Policy Office not only accelerates the digitalisation of Government services but also promotes cross-departmental collaboration and speeds up the development of digital infrastructure, such as, data centres and supercomputing centres.

 

Addressing Urgent and Market Needs of SMEs

 

FHKI fully supports the proposals in the Policy Address regarding short- and medium-term measures to assist SMEs in navigating current economic challenges. These include more flexible repayment options for the SME Financing Guarantee Scheme and raising the statutory cap on the contingent liability of the Hong Kong Export Credit Insurance Corporation to $80 billion.

 

Furthermore, FHKI applauds measures to facilitate businesses expansion into the domestic market via e-commerce, launching “E commerce Easy” under the “Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD)”.  This allows businesses to implement e-commerce projects with HK$1 million and accelerates the Single E-lock Scheme and Trade Single Window to enhance customs clearance and e-commerce shipment efficiency.  FHKI also welcomes the Government's acceptance of our suggestion to set up additional offices for business and trade (ETO) along the Belt and Road to aid SMEs in strengthening trade promotion in emerging markets.  The establishment of an Advisory Panel on Silver Economy to invest in the development of the silver economy is another positive move.

 

Fortifying I&T Talent Pool with Attraction and Retention Initiatives

 

It is of utmost urgency for Hong Kong to prioritise the cultivation of local talent in order to fuel industrial growth.  The Government's proactive response to industry demands is commendable, with initiatives that include establishing a university of applied science, elevating the status of vocational and professional education, committing to the Northern Metropolis University Town development, and advancing STEAM education in primary and secondary schools.  Efforts to attract and retain talent are intensely pursued.  These include doubling the quota for non-local students in subsidized tertiary institutions to 40%; increasing the Belt and Road Scholarship quota by 50%; providing multiple-entry visas to the Mainland for foreigners working in Hong Kong-registered companies to facilitate cross-border work; relaxing the visa policy in respect of employment for Vietnamese talents and that for Laotian and Nepalese talents for employment, training and study in University Grants Committee (UGC) funded institutions and allowing non-local students of selected full-time professional Higher Diploma programs of the Vocational Training Council (VTC) to stay in Hong Kong for a year post-graduation to seek discipline-related jobs.

 

FHKI Chairman Steve Chuang is of the view that I&T and new industrialisation are global trends to stay and driving forces for future economic development. While Hong Kong may have lagged behind in certain areas in the past, FHKI is extremely pleased to see our Government's efforts in catching up, and is greatly encouraged by all those new measures introduced in the Policy Address.  Chairman Chuang remarked, “The Chief Executive has developed this Policy Address based on industry opinions, expediting new industrialization through Government structure and financial support while cultivating and attracting talents with an all-rounded approach. The Policy Address strikes a practical yet progressive balance.  While it will undoubtedly take time to witness formidable results from the vision outlined in the Address; however, as long as our Government and various sectors of our society unite together and maintain close collaborations, progressing towards a shared common goal, I strongly believe that our Hong Kong economy will continue to prosper and grow; our industrial sectors will continue to thrive and shine!”

    

 

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