Hong Kong Can Be Catalyst to Lead Belt and Road

SINGAPORE, Aug 2: Hong Kong-ASEAN Free Trade Agreement (FTA), which is likely to be inked by the end of 2017, is mutually beneficial for both the Hong Kong Special Administrative Region of China and ASEAN member countries, said Mrs. Carrie Lam, Hong Kong Chief Executive during a visit to Singapore on Aug.2, 2017. Hong Kong’s active role in the Belt and Road Initiative added to the justification of the view, she added while meeting the press after launching ceremony of a photo show together with Singapore’s Senior Minister of State for Culture, Community and Youth Sim Ann and Chinese Ambassador to Singapore Chen Xiaodong.

Speaking about Hong Kong’s role in regional development, Lam said “Singpore and Thailand are Hong Kong’s largest and second-largest trading partners in ASEAN, and I want to thank the governments of the two countries for their support in facilitating an anticipated free trade agreement between Hong Kong and ASEAN, which would hopefully be signed by the end of this year after a three-year discussion”.

Lam said that she advocated more pragmatic fiscal policies and more investments on education and infrastructure.

The chief executive would meet Prime Minister Lee Hsien Loong and other Singaporean government officials during her two-day visit to the city state before leaving for Thailand.

Mrs. Lam has advocated active role of Hong Kong, a city home to more than seven million people and generates more than 90 per cent of its GDP from services, in building the Belt and Road Initiative.

“I want my government to be also a facilitator and promoter, and that would require a lot more work in conducting government-to-government relationships,” said Mrs Lam in Singapore, a maritime hub in South East Asia.

She further added: “I also advocated that we could adopt a more proactive fiscal policy in investing more liberally in education, infrastructure, and overseas promotions and to provide tax incentives for some of the things we want to happen, like more investment in research and development by the corporations.”

“Guided by the enduring principle of ‘one country, two systems’, Hong Kong has emerged as a global business and financial hub. We stand alongside Singapore as a leading international city in Asia”, said Mrs Lam.

She added that Hong Kong was poised for a new growth spurt.

“Massive cross-boundary infrastructure projects – including a huge bridge linking Hong Kong with the western part of Guangdong and an express rail link that will connect Hong Kong with mainland China’s high-speed rail network – will be completed within the next two years, creating new opportunities for progress,” said Mrs Lam. “We are also devoting more space and resources for commercial, residential, sports and cultural development.”

Hong Kong territory is going to play a significant role in China’s Belt and Road initiative and the China-led Asian Infrastructure Investment Bank, Carrie Lam, said while speaking at the Wharton Global Forum in May, 2017.

Carrie Lam also said Hong Kong’s robust financial markets can be a venue for raising funds for infrastructure. 

“One of the world’s major financial centers, Hong Kong, is also China’s international financial center,” said Lam.

“We have the expertise to support the operation of AIIB.” 

The Philippines is a member of the AIIB and has tapped the Beijing-led lender to fund some of its major infrastructure projects.

Lam also pledged to make Hong Kong’s taxation system more competitive, establishing a two-tiered system, to encourage small and medium-sized enterprises to flourish and promote innovation in the city.

Experts believe the Belt and Road will be the catalyst to drive home Hong Kong’s status as the professional services hub in Asia because the island city’s shipping; finance and law; technology; ports and logistics; and competitiveness are remarkable.

Some say Hong Kong would be better placed than Singapore, especially given the context of the new transport network being introduced by the Belt and Road plan because of proximity to mainland China; maritime routes; cost of living; business legislation; public finance; skill levels; and employment law.

“For Hong Kong, “One Belt, One Road” offers a historic opportunity to leverage its status as China’s most cosmopolitan city – a modern financial hub combining efficient infrastructure, well-regulated markets and Western-style legal institutions with deep understanding of Chinese culture and business practices”, writes Kevin Sneader, chairman of McKinsey & Company, Asia in SCMP newspaper.

“Hong Kong could also act as convenor – bringing people together, encouraging the exchange of knowledge and ideas, showcasing best practices for infrastructure building and promoting universal technical standards”, he adds.

Commenting on exporting services from Hong Kong, Kevin Sneader, writes “Hong Kong, with its globally recognised universities, can help to promote understanding among belt and road countries, and equip the next generation of managers, technicians, engineers and architects with the skills they’ll need to ensure the region’s new infrastructure functions safely and efficiently”.

More broadly, Hong Kong can help to export to belt and road countries its systems and know-how for project management, accounting and legal compliance, he further adds.

Kevin Sneader concludes by saying that business and government leaders should harness the power of that brand and export it to countries with which the mainland has committed to expand economic ties.

Some observers see the island-state’s status as the maritime capital of the world because of the size of the shipping industry.

Hong Kong’s professional expertise can pave way to smoothly execute projects offering immense business opportunities under the framework of Xi’s “One Belt, One Road” which encompasses 65 countries in Asia, Europe and Africa with 4.4 billion people and massive market.

By Muhammad Arif: Source: Monitoring