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Hong Kong economy
OpinionComment
Ryan Ip
Jason Leung Yeuk-ho
Ryan IpandJason Leung Yeuk-ho

Opinion | Hong Kong needs new economic thinking to match San Tin Technopole’s promise

  • Just creating the huge innovation and technology hub won’t be enough on its own to diversify the economy
  • Innovative ideas on public-private partnerships, business incentives, land allocation and more are necessary for the plan to achieve its lofty goals

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The San Tin area in the northern New Territories. The San Tin Technopole is a centrepiece of the government’s plans to diversify Hong Kong’s economy and turn the city into a global innovation and technology hub. Photo: Winson Wong
Ryan IpandJason Leung Yeuk-ho

Hong Kong’s economy has undergone significant structural changes since the early 1980s, becoming one of the world’s most service-oriented economies. While the service sector accounted for more than 93 per cent of gross domestic product in 2020, the share of manufacturing stood at a mere 1 per cent, a far cry from the 23 per cent recorded in 1980.

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The significant decline in manufacturing and heavy reliance on the service sector has led to an imbalance in Hong Kong’s industrial structure and a narrow economic base.
To reverse this trend, the government has laid out a clear policy intention to develop the innovation and technology (I&T) industry in Hong Kong, with the San Tin Technopole at the heart of this vision. Providing 300 hectares of land, the flagship project will cover 7 million square metres (75.3 million square feet) of gross floor area for I&T uses and is expected to create more than 120,000 jobs.
However, it would be a gross oversimplification to assume that infrastructure alone can yield the desired outcome. Making the San Tin Technopole a success will require shifts in our approach to development, attracting investment and land allocation. Only when both the hardware and software are in place can Hong Kong be ready to build a vibrant and thriving I&T ecosystem.

Public-private partnerships for infrastructure projects are not new. Take the case of Sha Tin: while the government took up the major land assembly, the private sector was brought in to carry out reclamation and site formation works. On completion, 70 per cent of the reclaimed land reverted to the government for public housing and infrastructure development while the remaining 30 per cent was used for private housing development.

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While some may see this approach as akin to government-business collusion, we should recognise the public-private partnership model for what it is and acknowledge its benefits in bringing in private funds, efficiency and innovation.

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