HKUST PPOL Newsletter Spring 2024

Hong Kong’s Economic Challenges and Opportunities: Human and Financial Capital, Innovation and Technology 17 On 28 October 2023, Prof. Anthony Cheung, former Secretary for Transport and Housing, Advisor and former President at EdUHK, Adjunct Professor of PPOL, HKUST; Prof. Lui Tai-lok, Adjunct Research Chair Professor, former Vice President (R&D) at EdUHK; Prof. Yun-wing Sung, Associate Director of the Joint Shanghai-HK Development Institute, Associate Director of the Economic Research Centre, HKIAPS, Adjunct Professor, Department of Economics, CUHK; Dr. Wendy Wen Hong, LegCo Member for the Election Committee Constituency, and Prof. Fox Zhiyong Hu, Acting Head and Associate Professor, Department of Social Sciences and Policy Studies at EdUHK discussed the Policy Dialogue Series topic of “Hong Kong’s Economic Challenges and Opportunities: Human and Financial Capital, Innovation and Technology”. Prof. Cheung began the Dialogue Series by stating that the economy is the current greatest challenge that Hong Kong faces; however, the causes and solutions of such a challenge are not entirely economic. After being adversely impacted by the 2019 political unrest and Covid-19 pandemic, the anticipated speedy recovery was not materialised, and stuck in a double whammy of the sluggish worldwide economic situation, the sufferance of image and branding issues has become a new normal for Hong Kong. Internally, Hong Kong is facing a bottleneck of three major factors of production, i.e., land, labour, and capital. Prof. Cheung pointed out that Hong Kong is in need of reindustrialization and transformation of the eco-system to groom an I&T hub and diversify its economic base. By putting Hong Kong under the context of Asia, Prof. Cheung showed Hong Kong’s economic outlook from its stock market performance, property market downturn, foreign direct investment decline, over-dependence of investment from mainland China, and vulnerability to the economic situation of mainland resulted in fundraising level hitting the lowest in 11 years and so on. To Prof. Cheung, Hong Kong’s competitiveness and historical advantages are declining. He pointed out that Hong Kong’s future lies in a rising China and a rising Asia, but isolation from the West cannot be afforded. Prof. Cheung then addressed the serious challenge of brain drain that Hong Kong is now facing; he pointed out the fact that 95% of talents under the Top Talent Pass Scheme come from the mainland may indicate that Hong Kong is not a very attractive destination for talents from other parts of the world, and what PUBLIC POLICY DIALOGUE SERIES

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