Opinion | John Lee’s policy address is wise to prioritise Hong Kong’s digital future

Chief Executive John Lee Ka-chiu’s 2022 policy address brimmed with optimism, buoyed by hopes that a long-awaited border opening would see Hong Kong usher in a new era of growth. Even as China began to open up, the city seemed poised to reprise its role as an international hub and recover from three years of pandemic disruption. Yet one year on, the reality has turned out to be more challenging than anticipated.

Geopolitical divisions, superpower competition and Russia’s invasion of Ukraine have all contributed to macroeconomic instability. Closer to home, sluggish equity markets and falling property prices have further hampered economic momentum.

For too long, the city was fixated on land sales and tourism as innovation and entrepreneurship awaited more concerted attention. While those core pillars served us well in the past, the pandemic disruption revealed the need for greater diversification.

Take this past Chung Yeung Festival as one example. More than 800,000 people travelled to the mainland instead of spending money locally, reversing pre-pandemic travel patterns. We must accept the reality that bargain prices and a panoply of options across the border have enticed locals to splurge outside Hong Kong.

This shift in residents’ consumption patterns reflects the city’s systemic inertia. Our reliance on the same old growth pillars must now be recalibrated in the glare of intensifying regional competition and technological shifts.