Advertisement
Opinion | How Hong Kong can take its place as the Asian century’s financial linchpin
- To fulfil its destiny as the top Asian financial clearing house, Hong Kong must broaden its horizons and have a truly regional vision
- The city needs to build regional connectivity, including with Asean, offer all the required financial products and services, and be nimble in digital finance
Reading Time:3 minutes
Why you can trust SCMP
The recent visits by Chief Executive John Lee Ka-chiu to key markets in the Association of Southeast Asian Nations is an opportunity to re-engage with the Asean region so vital to Hong Kong’s future success. As a member of the Hong Kong business community, I was pleased to join him on this trip to strengthen our ties with this fast-growing region.
Advertisement
Southeast Asia’s output has nearly doubled since 2010 to reach almost US$4 trillion. In its latest forecast, the International Monetary Fund upgraded its growth projections for the Asean-5 – Singapore, Malaysia, Vietnam, Indonesia and the Philippines – from 4.3 per cent to 4.6 per cent this year, which is 53 per cent faster than the global average.
For years, the economy of Southeast Asia was defined primarily by the resources industry and high-volume, low-margin manufacturing, but more than three decades of growth have bought prosperity to the region’s 690 million people, making Asean a powerful force in global consumption. Investors who once came to the region to make goods for export now also manufacture for Southeast Asian consumers.
Supply chains will continue to shift within Asia as China moves up the value chain, making “South-South” connectivity increasingly important, especially as consumers elsewhere in Asia save and spend more.
Advertisement
The Asean region is Hong Kong’s second-largest trading partner after mainland China. Total merchandise trade between Hong Kong and Asean amounted to HK$1.3 trillion (US$167 billion) last year, representing 13.7 per cent of Hong Kong’s global total.
Advertisement