Hong Kong should explore new markets such as Africa, and take reference from Switzerland in striking a balance among development in finance, industry, and tourism, according to Trade Development Council chairman Frederick Ma Si-hang.
His comments came a day after the government released a report on the city's business environment on Wednesday, saying that the SAR's new advantages – including innovation and technology, international law and art trading – are emerging.
Speaking on a radio program on Thursday, Ma said the report highlighted Hong Kong's strengths under the One Country, Two Systems principle, as many foreign enterprises are using Hong Kong as a gateway into the mainland, reinforcing the city's status as an international financial hub.
In light of the ongoing Sino-US trade war, which affects global investment sentiment, Ma stressed the importance of strategic planning and exploring new markets in regions like the Middle East and Africa.
"Singapore gained momentum while we were under travel restrictions as they reopened their borders earlier than we (Hong Kong) did and narrowed the margin between us. But we've seen the strength of one country, two systems," Ma said.
"Our IPOs have been strong this year after reopening our borders, while President Xi Jinping recently announced tariff exemptions for African imports, which makes it even more essential for Hong Kong to align with national policies and benefit as a SAR," he added.
Commercial sector lawmaker and executive councilor Jeffrey Lam Kin-fung, noted that foreign enterprises' confidence in Hong Kong has been rebounding, as some major international corporations have shown strong interest in launching multi-billion dollar investment projects in the city.
"Many investors are diversifying beyond single markets; while they once focused primarily on the US, the country's constantly-changing policies are prompting them to search for new destinations," Lam said. "Hong Kong is now a top choice. We need policy adjustments to support this."
A more flexible tax system to accommodate development in the Northern Metropolis as well as streamlining the city's land approval process could be helpful, while lauding the Development Bureau's proposed move to grant land to corporations directly, according to Lam.
He also proposed extending measures like the SME Financing Guarantee Scheme to help transform industries such as retail and dining, allowing them to "get back on their feet" once market confidence is restored.
