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To Be Part of a Better Future Recognising the Opportunities

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To Be Part of a Better Future Recognising the Opportunities Recognising the Opportunities to be part of a Better Future PwC’s Interpretation and Recommendations on the “Outline Development Plan for Guangdong- Hong Kong-Macao Greater Bay Area” Table of contents Research and development (R&D) of an innovative and leading technology capital A powerful bay area with global competitive edge ..........................2 World financial centre that plays a decisive role Leveraging Hong Kong’s advantages to promote regional development ....................................................................................4 Infrastructure connectivity One-hour living circle of the Greater Bay Area is close at hand ......6 Citizen-centric smart city cluster System platform for information inter-flow and data sharing ..........8 Globally competitive business environment Consolidating the foundation of a world-class city cluster ............10 Conclusion ...................................................................................12 At the beginning of the Lunar New Year in 2019, a magnificent chapter of great efforts to develop the innovation and technology the future development of China’s economy was unveiled. The long- industries, nurture emerging industries, establish itself as the awaited Outline Development Plan for Guangdong-Hong Kong-Macao centre for international legal and dispute resolution services in Greater Bay Area was announced, marking the official start of the the Asia-Pacific region, and develop into an international implementation of the Greater Bay Area development strategy. The metropolis with enhanced competitiveness. development plan for the Greater Bay Area is related to not only a population of 70 million people in the 9+2 cities in Guangdong, Hong 2. Macao: To develop into a world-class tourism and leisure centre Kong and Macao, but also covering an area that contributes to and a commerce and trade cooperation service platform one-tenth of the country’s economic size, and the breadth and depth of between China and Lusophone countries, promote an the new wave of China’s reform and opening-up, as well as tens of appropriate level of diversified economic development, and thousands of enterprises in multiple industries and sectors. develop into a base for exchange and cooperation where mainstream Chinese culture and diverse cultures coexist. PwC responded to the “Outline Development Plan” to provide advice and suggestions for the development of the Greater Bay Area by 3. Guangzhou: To fully leverage its leading function as a national gathering experts from various fields of the Greater Bay Area Working core city and an integrated gateway city, comprehensively Group to carefully study the outline and conduct a comprehensive strengthen its functions as an international commerce and business interpretation and insight analysis. We hope that being the industry centre and integrated transport hub, enhance its first analysis report of PwC after the issuance of the “Outline function as a technological, educational and cultural centre, and Development Plan”, this report can provide the business community develop into a global metropolis. with valuable references for review of the situation and for identifying and planning for business opportunities. 4. Shenzhen: To leverage its leading role as a special economic zone, a national economic core city and a national innovation The “Outline Development Plan”, which covers technology, finance, city, expedite its transformation into a modern and international infrastructure, smart city cluster and business environment has city, while striving to become a capital of innovation and formulated 5 strategic orientations: creativity with global influence. 1. A vibrant world-class city cluster. To develop the seven node cities, it is important to support Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing in 2. An international innovation and technology hub with global fully leveraging their own strengths, deepen reform and innovation, influence. enhance the composite strengths of these cities, and form key node 3. Important support for the construction of the “Belt and Road” cities with individual characteristics, complementary positioning and initiative. strong competitiveness, to enhance coordination in development, strengthen interaction and cooperation with the four core cities, drive 4. Demonstration zone for in-depth cooperation between the the development of towns nearby with distinct characteristics, and Mainland and Hong Kong and Macao. jointly raise the development quality of the city cluster. 5. A quality living circle that is suitable for living and travel. How will the Guangdong-Hong Kong-Macao Greater Bay Area achieve the strategic positioning goal of the “Outline Development At the same time, the 9+2 cities have their own pecking order: To Plan” in the next 15 years and develop into an “international build on the four core cities of Hong Kong, Macao, Guangzhou and innovation and technology hub with global influence”? “By 2035, the Shenzhen as core engines for regional development, and to develop Greater Bay Area will form an economic system and development the key node cities of Zhuhai, Foshan, Huizhou, Dongguan, model with innovation as its main pillar. Its economic and Zhongshan, Jiangmen and Zhaoqing. technological capabilities will leapfrog to a new level, and its international competitiveness and influence will be further enhanced.” 1. Hong Kong: To consolidate and enhance Hong Kong’s status as In addition to having fast and rapid infrastructure, a globally an international financial, transportation and trade centre as well competitive business environment as an intangible asset, a world as an international aviation hub, strengthen its status as a global financial centre that plays a decisive role to provide a constant offshore Renminbi (RMB) business hub and its role as an stream of demand for capital, and a citizen-centric smart city cluster, international asset and risk management centre, promote the must be supported by continuous R&D and innovation by various development of high-end and high value-added financial, social forces such as enterprises, governments and scientific commercial, trading, logistics and professional services, make research institutions. In the “Outline Development Plan”, 5 A vibrant world-class city cluster strategic orientations were formulated 01 for the Guangdong-Hong Kong-Macao An international innovation and technology hub Greater Bay Area: 02 with global influence Important support for the construction of the 03 “Belt and Road” initiative Demonstration zone for in-depth cooperation 04 between the Mainland and Hong Kong and Macao A quality living circle that is suitable for living 05 and travel PwC’s Interpretation and Recommendations on the “Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area” | 1 Research and development (R&D) of an innovative and leading technology capital A powerful bay area with global competitive edge Under the new pattern of global economic development, major Obviously, not all technology industries have advantages in the cities are exploring the path of industrial upgrading. In order to Greater Bay Area. It is extremely important to put together meet the development needs of emerging industries, municipal prevailing resources and focus on the key items. The governments are taking approaches to ride the wave of technology industries mentioned in the “Outline Development industrial upgrading such as systematic industrial Plan” include: rapidly growing new pillar industries such as transformation and repositioning to gradually bring technology new-generation information technology, biotechnology, innovation to the forefront of future development. high-end equipment manufacturing and new materials. The 9 Pearl River Delta (PRD) municipalities have initially formed a Through continuous R&D and innovation, Shenzhen has seen sector structure consisting of strategic emerging industries, the emergence of the world’s leading and unicorn technology advanced manufacturing and modern service industries as the enterprises in many industries in just 30 years. These are main backbone, and will continue to promote the aggregation perfect examples of successful enterprises in the Greater Bay of innovative elements and the optimisation of sector structure Area that value R&D and innovation. Founded in Shenzhen, in the future. these companies have grown and are now active on the world stage. They are inseparable from the external environment of With strengthened interactions through the cooperation the Guangdong-Hong Kong-Macao Greater Bay Area. This mechanism in the Greater Bay Area, Hong Kong’s status in also proves that the area possesses the conditions and R&D and innovation will be further consolidated. Hong Kong foundation for developing into a global technology hub. has unique qualities for attracting and retaining talent from around the world. In addition, apart from Shenzhen being at The “Outline Development Plan” drafted by central Chinese the forefront of R&D investment intensity worldwide (as a government organisations, is more to take advantage of the percentage of GDP), Hong Kong is also committed to doubling present market trends, in order to effectively maximise the its R&D spending to HK$50 billion and actively improving its impact of the various collaborative forces in the market. R&D capabilities. The foundation to developing the Greater Bay Area into an Industry 4.0 to promote the application of intelligent international innovation
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