Reform the only answer to securing Hong Kong’s prosperous future

Reform has become the buzzword in Hong Kong, a term that has been associated with China for the past four decades. With Hong Kong’s economy sputtering and US president-elect Donald Trump returning to the White House, rapid change is badly needed. Where can Hong Kong find its new uniqueness to navigate through the turmoil?

Hong Kong must put its past successes behind it and focus on the future while emphasising structural changes. While this long-term development strategy is crucial for the city, it will take time to articulate and implement. Therefore, we need to address specific issues that were once considered impossible but now require urgent attention.

First, Hong Kong has long been known for its adherence to laissez-faire capitalism, which emphasises minimal government intervention in economic affairs. The time has come to undertake radical changes to find the right balance between government intervention and free-market principles. This will be a key challenge for policymakers in Hong Kong as the city navigates complex geopolitical changes.

There has been a noticeable shift in the approach to government intervention on economic issues in the United States, where neoliberal capitalism prevailed for decades. In recent years, some have argued for greater government involvement in industrial policy, strategic planning and targeted investments in key sectors to promote competitiveness.

The US Chips and Science Act serves as a good example of this shift. Through the Chips Act, the US government is providing financial support to semiconductor manufacturers to build new fabrication facilities and invest in research and development. This is seen as crucial for ensuring a stable and secure semiconductor supply chain, promoting technological leadership and enhancing national security.

In today’s Hong Kong, consolidating and enhancing the city’s traditional status as an international financial, shipping and trading hub with new thinking and a fresh approach is important. Developing the city as a regional education and hi-tech hub requires a combination of forward-looking initiatives and top-down government intervention.