Opinion | Hong Kong needs new economic thinking to match San Tin Technopole’s promise
- Just creating the huge innovation and technology hub won’t be enough on its own to diversify the economy
- Innovative ideas on public-private partnerships, business incentives, land allocation and more are necessary for the plan to achieve its lofty goals
Hong Kong’s economy has undergone significant structural changes since the early 1980s, becoming one of the world’s most service-oriented economies. While the service sector accounted for more than 93 per cent of gross domestic product in 2020, the share of manufacturing stood at a mere 1 per cent, a far cry from the 23 per cent recorded in 1980.
Public-private partnerships for infrastructure projects are not new. Take the case of Sha Tin: while the government took up the major land assembly, the private sector was brought in to carry out reclamation and site formation works. On completion, 70 per cent of the reclaimed land reverted to the government for public housing and infrastructure development while the remaining 30 per cent was used for private housing development.
While some may see this approach as akin to government-business collusion, we should recognise the public-private partnership model for what it is and acknowledge its benefits in bringing in private funds, efficiency and innovation.