Laissez-faire no more: Hong Kong’s aggressive tech hub plans come not a moment too soon

A mantra of ‘small government, big market’ has held Hong Kong back while its regional peers have made impressive strides in innovation

But now an industrial policy is finally taking shape, with Beijing’s support and backed by a raft of measures and generous funds

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Government ministers of key bureaus, including the Secretary for Innovation, Technology and Industry Sun Dong (far left), meet the press to explain details of the plan to attract talent, at the government headquarters in Admiralty, on December 23, 2022. Photo: Jelly Tse

Regina Ip

Regina Ip Lau Suk-yee is convenor of the Executive Council and chairwoman of the New People’s Party.

Published: 8:15am, 19 Mar 2023

Public attention on Financial Secretary Paul Chan Mo-po’s budget for 2023-24 has been riveted on the issue of consumption vouchers. Pundits have overlooked a watershed development, first announced in Chief Executive John Lee Ka-chiu’s policy address delivered last October, and given full financial support in Chan’s budget, to put into effect what will be Hong Kong’s first-ever industrial policy.

As long-standing industrial policy agnostics, the Hong Kong authorities have never adopted an industrial policy, even though national industrial strategies have been practised by scores of Asian economies to jump-start their recovery after World War II.

Singapore, often held as a mirror of where Hong Kong comes up short, has a policy of keeping about 20 per cent of its economy in manufacturing. It has pushed ahead aggressively to lure hi-tech industries to its country, with considerable success.

In contrast, Hong Kong has for a long time remained locked in a simplistic “small government, big market”, “maximum support, minimum intervention” mantra.