3 days ago
- Business
- South China Morning Post
Will Hong Kong government's more hands-on approach to development pay off?
News that the government has
withdrawn tenders for two sites to speed up development of the Northern Metropolis comes as Hong Kong is still celebrating the anniversaries of various economic initiatives from a previous era. There could not be a better illustration of the changes in the city's approach to economic development.
On Monday, the Development Bureau announced that it was withdrawing from two sites that had previously been open to private sector bidders. A three-hectare lot in Yuen Long will instead be given to the wholly government-owned Hong Kong Science and Technology Parks Corporation, which already runs an innovation park on adjacent land. The site will be used to build a microelectronics industrial ecosystem. Meanwhile, an eight-hectare site in Hung Shui Kiu will be developed as an industrial estate run by a government-owned company to be established pending a bureau policy study.
In both cases, the administration is clearly taking much more of a leadership role and hands-on approach. This contrasts with the philosophy prevailing immediately after the establishment of the Hong Kong Special Administrative Region in 1997.
At that time, then financial secretary
Donald Tsang Yam-kuen set up a Business and Services Promotion Unit as part of his own office to play a much more proactive role than the laissez-faire approach that had largely applied under British administration.
The unit was created to draw up and implement programmes to help businesses – basically, cutting red tape – and to support the development of Hong Kong's service sector. Each programme had its own advisory committee comprising business leaders and academics, with support from relevant government departments.
Financial secretary Donald Tsang (left) is helped by his assistants as he shows copies of Hong Kong's 2000-2001 budget to the press on March 7, 2000. Photo: Dustin Shum
Tsang encouraged leading members of the private sector to put forward suggestions for strengthening and improving the economy in general as well as the operating environment in specific sectors. The unit would then study how best to improve the situation with the help of external consultants if necessary.
