Opinion | How John Lee’s policy address sets Hong Kong up for success

Hong Kong Chief Executive John Lee Ka-chiu delivered his third policy address on October 16. As expected, he opened with an iteration of Beijing’s expectations of Hong Kong and the city’s institutional strengths under “one country, two systems”, plus the completion of its constitutional duty to enact national security legislation. Though economic competitiveness was not billed as the chief selling point, there was a noticeable shifting of gears to double down on the economy.

The growth-enhancing measures announced are timely and necessary. Hong Kong’s economy faces stiff competition from nearby cities in mainland China. The downturn in the property sector has sharply cut government revenue and greatly dimmed the outlook for the construction, engineering and related professional sectors.

When unveiling his economic programme, Lee introduced measures to strengthen Hong Kong’s status as an international financial, shipping and trade centre. Finance, shipping and trade have become priorities for the city in China’s national five-year plans.

In Lee’s address, he touted other measures to enhance Hong Kong’s strengths in a multitude of areas, from developing a “headquarters economy” to consolidating the city’s edge in international aviation, liquor trading, legal services, intellectual property rights, medical innovation and postsecondary education.

Hong Kong is a leading service provider and robust international demand for its services is fundamental to the city’s economic well-being. A number of bright spots stand out in the panoply of demand-enhancement measures. New initiatives to build Hong Kong into an international gold storage, trading and settlement centre, as well as a venue for metals and minerals trading, call for special attention, but they should not come as a surprise.