Hong Kong must deepen links with Shenzhen to retain and attract talent
- From convincing Chinese tech giants to move their headquarters to Hong Kong to capitalising on the Northern Metropolis’ strategic location, there is much the city can do as part of the Greater Bay Area
- Hong Kong must also reckon with young people’s changed career expectations and ensure they have the skills to access opportunities
Realising a new vision for Hong Kong will require having the right people in the right place at the right time. Here’s how I believe we can make that happen.
Yet over the border in Shenzhen, core digital economy industries made up more than 30 per cent of the city’s gross domestic product last year, driving its economic aggregate to over US$440 billion. There is clearly an opportunity for Hong Kong here that we should be seizing.
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One expedient way of doing so is to encourage Chinese tech giants to move their headquarters to Hong Kong. This would help to create a favourable business environment for technology companies and start-ups, while also providing new employment opportunities for local and overseas talent.
The US city of Austin provides a useful model. It cemented its status as a tech hub after convincing software giant Oracle to relocate its headquarters from California. The city is now home to secondary offices of many of the country’s largest tech companies, including Apple, Google, Amazon, Meta and SpaceX.
In the long run, however, Hong Kong will need to increase investment in scientific research and development to 1.5 per cent of GDP. Given its world-class educational institutions, Hong Kong should take the lead in cooperating with platforms in Greater Bay Area cities to establish large-scale cross-border biotech research institutions, share funds and facilities, and promote inter-institutional cooperation. We can also leverage our strengths in medical tech and in connecting China and foreign countries to further promote China’s technological breakthroughs in frontier fields.
Making the most of the Northern Metropolis’ strategic location will require smart planning.
On one hand, the area must support new industrial development. For the I&T sector, there will be the San Tin Technopole, with the Nanshan and Shenzhen I&T zones close by. This triangle of tech hubs will facilitate the growth of a cross-regional I&T ecosystem. In addition, the logistics industry, currently scattered across the New Territories, can be consolidated and modernised through improved land planning.
On the other hand, the government expects that the area will provide more than 900,000 residential units, accommodating about 2.5 million people. This will help to stabilise, if not suppress, property prices, and with a strong public transport network, people will be able to commute more easily to and around the area.
The Covid-19 epidemic has disrupted job markets worldwide. While the unemployment rate has fallen from its peak, many companies are experiencing a shortage of talent.
Here in Hong Kong, the government could increase the allowance for rental and salary tax reimbursements to encourage companies to adapt their work structure.
In the longer term, we need to update our education system and equip young people with the necessary skills to realise their potential and achieve upward mobility.
Once Hong Kong and Shenzhen are truly integrated, Hong Kong’s business, innovation and technology environment will be more prosperous, and the city will be able to attract global talent, as well as the return of those who left, as it did in the past.
Winnie Tang is an adjunct professor in the Department of Computer Science, Faculty of Engineering; the Department of Geography, Faculty of Social Sciences; and the Faculty of Architecture, at the University of Hong Kong