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Ryan Ip

Andy Wong Wan Ho

Hong Kong’s budget proposes to accelerate the construction of the Northern Metropolis. Some people have suggested a Northern Metropolis development authority be established, arguing that high-level leadership could speed things up.
But how exactly would such an authority expedite development? What considerations are involved? More importantly, how would it attract investment and address funding shortages in an era of geopolitical tensions and economic downturns?
In recent years, the government has streamlined bureaucracy and relaxed regulations, reducing unnecessary procedures and offering greater flexibility. These have helped to shorten project timelines.
But the Northern Metropolis is a massive undertaking involving multiple policy bureaus. For instance, the Innovation, Technology and Industry Bureau is tasked with charting the course for innovation and technology development, as well as identifying the land needs. Meanwhile, the Development Bureau prepares the land and the Transport and Logistics Bureau provides transport infrastructure.
From conception to implementation, such projects still often take over a decade. In a fast-changing world where technology evolves rapidly, if bureaus continue to operate in silos – making decisions independently before passing the project along – the development risks becoming outdated even before the work begins.
Establishing a development authority as a statutory body could address this. It would oversee the planning, design, construction and operation of Northern Metropolis projects, minimising redundant processes. By aligning transport infrastructure with the new development area’s timeline, the authority could unlock land potential promptly, boosting investor confidence.

An independent development authority could also give the government greater financial flexibility. Traditionally, funding for large-scale infrastructure relies on Legislative Council appropriations, public-private partnerships or a bond issuance. A new entity opens the door to alternative capital-raising strategies.
For example, the government could inject land and a portion of future tax revenues from the Northern Metropolis into the authority in exchange for controlling equity. The remaining shares could be offered globally, attracting long-term capital from mainland China and Belt and Road Initiative countries. Through specific clauses, the government could secure a majority on the board, retaining decision-making power.
The development authority could also lease out land and infrastructure based on practical needs or bring in strategic partners. The authority would be managed by professionals, operating on market principles and bearing its own loss or profit. This would enhance efficiency and strengthen market confidence in the Northern Metropolis.
The government could draw inspiration from the establishment of the Hong Kong Airport Authority, which is governed by the Airport Authority Ordinance. It is a wholly government-owned statutory body that operates commercially, generating revenue primarily from fees for services at Hong Kong International Airport.
Under Section 5(2) of the ordinance, the Airport Authority can engage in commercial or industrial activities on leased airport land for profit. A similar model could be adapted for a Northern Metropolis development authority, allowing it to generate returns by developing and operating infrastructure and industries.


Another example is Singapore’s Sentosa Development Corporation, established as a statutory board under the Ministry of Trade and Industry to develop Sentosa island. As a master planner, SDC’s charter is to oversee Sentosa’s development, management and marketing, promoting it as a resort destination for both locals and tourists. Business subsidiaries were also established to manage the daily operations of the island.
But the scale of the Northern Metropolis would surpass that of Hong Kong’s airport and Singapore’s Sentosa island, with a scope far more diverse and complex, necessitating careful deliberation. First, the development authority must operate within the existing laws and administrative frameworks to avoid policy conflict or overlapping structures. The complexity of integrating it into existing systems could delay, rather than hasten, its progress if not handled meticulously.
Additionally, the government will need to invoke the Land Resumption Ordinance to acquire private land for the Northern Metropolis. But if this land is to be injected into a development authority that is commercially run, it may not satisfy the ordinance’s “public purpose” requirement. Public scepticism about land resumption and potential cronyism could further erode trust in the initiative.


The Northern Metropolis isn’t solely for innovation, commerce and industry – it also encompasses housing, social welfare and environmental conservation. A commercial approach risks sidelining public welfare and environmental needs.
Without robust oversight, a profit-oriented authority might prioritise revenue-generating projects such as commercial hubs over affordable housing or green spaces, exacerbating social inequalities.
Ultimately, whether a Northern Metropolis development authority is a boon or bane hinges on the execution. This is not a decision to be rushed. Presenting detailed proposals to the public can foster debate and ensure the Northern Metropolis serves both economic ambitions and society’s needs. Only through such scrutiny can Hong Kong maximise the benefits of this transformative project while mitigating its risks.


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Northern Metropolis

Why decision on a Northern Metropolis authority can’t be rushed

Financial Secretary Paul Chan Mo-po leading a delegation of enterprise representatives to visit the site for the Northern Metropolis on November 29. Photo: Handout from Hong Kong’s Information Services Department

Hong Kong must ensure it won’t lose control of Northern Metropolis

This photo, taken on February 27, shows an aerial view of the land allocated for the San Tin Technopole, part of the Northern Metropolis. Photo: May Tse

Screens show motorists time-sensitive toll charges for driving through the Western Harbour Tunnel in West Kowloon, in 2013. Photo: Jelly Tse

Tesla CEO Elon Musk walks next to a screen showing a Model 3 car during a ceremony in Shanghai, China, in 2020. Photo: Reuters

Why lack of clear vision is holding back Northern Metropolis’ future

The Northern Metropolis is a megaproject located near Hong Kong’s border with mainland China. Photo: May Tse

Workers collect oysters at Deep Bay in Hong Kong’s Lau Fau Shan in February last year. Hong Kong plans to transform the oyster farm area of Lau Fau Shan into a digital technology and ecotourism hub. Photo: Eugene Lee

22 Hong Kong, mainland firms express interest in pilot Northern Metropolis scheme

The Northern Metropolis is a government blueprint that aims to transform 30,000 hectares of land in the New Territories. Photo: May Tse

Hong Kong urged to make Northern Metropolis ‘special zone’ to speed up work

The Northern Metropolis blueprint aims to transform 30,000 hectares in the New Territories into an economic hub. Photo: May Tse

Starry Lee is a member of the National People’s Congress Standing Committee.  Photo: Dickson Lee

Opinion

Hong Kong Opinion

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Hong Kong

Hong Kong Economy

Society

It all hinges on execution. Detailed public consultations will ensure any such authority serves both economic and society’s needs


It all hinges on execution. Detailed public consultations will ensure any such authority serves both economic and society’s needs.


Infrastructure

Industrials

Hong Kong housing

Hong Kong politics

Greater Bay Area

Hong Kong property

Technology

Hong Kong society

Property policies

Legislative Council of Hong Kong (Legco)

Hong Kong land sale

Hong Kong International Airport

Conservation

Hong Kong economy

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


Why decision on a Northern Metropolis authority can’t be rushed

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}It all hinges on execution. Detailed public consultations will ensure any such authority serves both economic and society’s needs

It all hinges on execution. Detailed public consultations will ensure any such authority serves both economic and society’s needs