Contents

List of Figures ...... I

List of Tables ...... II

Abbreviation ...... III

Executive Summary ...... V

1. Overview ...... 1

1.1 Overview ...... 2 1.2 Structure of Report ...... 3 2. Study Goal and Objectives of the Final Report ...... 5

2.1 Study Goal ...... 6 2.2 Objectives...... 6 3. Methodology ...... 7

3.1 Study Process and Methodology ...... 8 3.2 Phase ONE: Inception Report ...... 9 3.3 Phase TWO: Working Paper ...... 9 3.4 Phase THREE: Final Report ...... 10 4. What is Smart City? ...... 11

4.1 Defining Smart City ...... 12 4.2 Smart City Wheel ...... 14 5. Theoretical Challenges and Opportunities for Developing Smart City ...... 17

5.1 Challenges of Smart City ...... 18 5.2 Opportunities of Smart City ...... 20 6. Local Policy and Review ...... 24

6.1 Current Smart City Related Strategies in Hong Kong ...... 25 6.2 Challenges ...... 32 6.3 Opportunities ...... 36

7. International Case Study ...... 39

7.1 Introduction ...... 40 7.2 Justifications ...... 40 7.3 Summary of the Smart City Initiatives adopted in Singapore, Seoul and Tokyo ...... 41 7.4 Lessons ...... 43 8. Recommendation ...... 50

8.1 Vision & Objectives ...... 51 8.2 Strategy ...... 52 8.3 Raise Living Quality ...... 55 8.4 Improve Economic Foundation ...... 67 8.5 Support a Proactive Public Administration ...... 73 8.6 Encourage Regional Interaction ...... 82 8.7 Roadmap ...... 87 9. Conclusion ...... 89

9.1 Conclusion ...... 90 Reference ...... 92

Appendices ......

List of Figures

Figure 1 Smart City @ Kowloon East...... 2 Figure 2 Study Progress ...... 8 Figure 3 Smart City Wheel ...... 15 Figure 4 Smart Nation initiative of Singapore ...... 41 Figure 5 Smart Seoul ...... 42 Figure 6 Kashiwa-no-ha Smart City ...... 42 Figure 7 Cross-sectoral Cooperation Process ...... 48 Figure 8 Electronic Health Record Sharing System of Hong Kong ...... 56 Figure 9 E-Med of United Kingdom...... 57 Figure 10 Standard Chartered Office in central with intelligent networks to save energy costs ...... 62 Figure 11 Waste reduction ...... 65 Figure 12 Waste-to-energy plant (incinerator) ...... 65 Figure 13 Plasma gasification (process) ...... 66 Figure 14 NTT Communications Hong Kong Financial Data Center, with Tier 4 ready infrastructure . 68 Figure 15 Hong Kong Data Center, one of the Tier 3 data centres ...... 68 Figure 16 Strategy I: Coworking space ...... 69 Figure 17 The Information & Communications Technology Experience Centre, Singapore ...... 70 Figure 18 Current layout of data.gov.hk ...... 75 Figure 19 Current layout of ozp.tpb.gov.hk ...... 75 Figure 20 Aerial photo showing the Location of Lok Ma Chau Loop ...... 82 Figure 21 Kwu Tung North Development ...... 83 Figure 22 Location of the Liantang Boarder Control Point ...... 84 Figure 23 Siu Ho Wan ...... 85 Figure 24 Roadmap ...... 88

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List of Tables

Table 1 Smart Economy Initiatives ...... 25 Table 2 Smart Environment Initiatives ...... 26 Table 3 Smart Government Initiatives ...... 27 Table 4 Smart Living Initiatives ...... 28 Table 5 Smart Mobility Initiatives ...... 29 Table 6 Smart People Initiatives ...... 30 Table 7 Smart Regional Initiatives ...... 31 Table 8 The 10 Smartest Asia/Pacific Cities ...... 40

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Abbreviation

A&E Accident & Emergency GMP Green Master Plan AEA Asian Entrepreneurship Award GNSS Global Navigation Satellite System API Application Programming Interface GT Green Technology ASE Asia Submarine-cable Express GTO Government Technology Organisation ASEAN The Association of Southeast Asian HK203 Hong Kong 2030+: Towards a Planning Nations 0+ Vision and Strategy Transcending 2030 ASTRI Hong Kong Applied Science and HKGC The Hong Kong General Chamber of Technology Research Institute C Commerce BIM Building Information Modelling HKPC Hong Kong Productivity Council BT Biotechnology HKSTP Hong Kong Science and Technology C Parks Corporation CBD Central Business District HKU The University of Hong Kong CCMF Cyberport Creative Micro Fund HKUS The Hong Kong University of Science T and Technology CEDD Civil Engineering and Development ICP Internet Cache Protocol Department CEF Continuing Education Fund Information and Communication Service ICSP Providers CEPA The Mainland-Hong Kong Closer Information and communication ICT Economic Partnership Arrangement technology CGCC The Chinese General Chamber of Infocommunications Development IDA Commerce Authority CIA Central Intelligence Agency ILP Individual Learning Portfolio CIPD Chartered Institute of Personnel and Infocommunications Media Development IMDA Development Authority CLP CLP Power Hong Kong Limited iN2015 Intelligent Nation 2015 CPU Central Policy Unit PMO Prime Minister’s Office CSD Census and Statistic Department PPP Private-Public Partnership DCFU Data Centre Facilitation Unit PTI Productivity Training Institute EDB Economic Development Board IT Information Technology EFLS Environmentally Friendly Linkage ITB Innovation and Technology Bureau System eHR Electronic Health Record Innovation and Technology Fund for ITBFL Better Living EKEO Energizing Kowloon East Office ITC Innovation and Technology Commission EMS Energy Management System ITE Institute of Technological Education EPD Environmental Protection ITF Innovation and Technology Fund Department EPM Employment Programme for the Innovation and Technology Fund for ITFBL Middle-aged Better Living ESS Enterprise Support Scheme ITS Intelligent Transport System EU Europe Union Innovation and Technology Support ITSF Fund F&B Food and Beverage Innovation and Technology Support ITSP Programme FCI The University of Tokyo Kashiwa- no-ha Campus Future Centre ITU International Telecommunication Union Initiatives Fintech Financial technology JTC Corporation; formerly Jurong Town JTC Corporation FRS Fibre Ready Scheme KCC The Korea Communications Commission GIS Geographic Information System MAS Monetary Authority of Singapore

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MNC Multi-national Corporation STARS Singapore Urban Transport Solution Science, Technology, Engineering and MOE Ministry of Education STEM Mathematics MOU Memorandum of Understanding SWC Smart Work Centres NENTND North East New Territories New Guangdong – Hong Kong Technology TCFS A Development Areas Cooperation Funding Scheme NextGen Next Generation National TD Transport Department NBN Broadband Network NextGen Next Generation National Infocomm TEP TX Entrepreneur Partners NII Infrastructure Traffic and Incident Management NGO Non-governmental organization TIMS System NSA National Security Agency TMA Tokyo Metropolitan Area NT Nanotechnology UGC University Grant Council NTU Nanyang Technological University UI User interface University-Industry Collaboration NUS National University of Singapore UICP Programme O2O Online-to-offline UITP Unified Internet Training Programme P2P Peer-to-peer URA Urban Redevelopment Authority Professionals, Managers and PMEs UX User experience Executives WaterW SMA Seoul Metropolitan Area Water Wireless Sentinel iSe SMG Seoul Metropolitan Government WDA Workforce Development Agency SMP Sectoral Manpower Plans WIN Water Intelligent Network Youth Employment and Training SNPO Smart Nation Programme Office YETP Programme SSG SkillsFuture Singapore

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Executive Summary

This report defines Smart City as the utilisation of ICT and intelligent human resources to improve the city’s overall efficiency and enhance the living quality of its citizens and suggests that the concept of Smart City can serve as a policy option to promote the improvement in social, economic and environmental aspects and resolving the existing urban issues.

The first part of the analysis provides a conceptual understanding of the idea of smart city and identifies the theoretical challenges and opportunities. The literature review has pointed out that privacy invasion, oligopoly and cyber vulnerability are considered to be the key challenges in smart city development. Meanwhile, the benefits of smart city development can bring about effective city management, enhancing city resilience and improvement of city competitiveness.

Evaluation of the local context was conducted in the second part. Hong Kong has shown positive developments in promoting technological innovation in recent years. There are three major characteristics of local policy, including an expanding range of initiatives, promotion of a new economic order and nurturing ICT-based talents. Notwithstanding these trends, it is important to consider that smart city development in Hong Kong is still in its early stage. By reviewing the local context, the challenges and opportunities in Hong Kong’s smart city development are also identified. There are five challenges that include: a lack of clear policy direction, low input in the R&D, bureaucratic tradition, a lack of regulatory adjustment and inactive partnership between public and private sectors. Meanwhile, three opportunities are identified, including solid technological foundation, enlargement of talent base and increasing regional cooperation.

In addition, the case studies of smart city development in different international cities has been conducted in which five key lessons were drawn, namely: the provision of a structured and comprehensive strategy, solid foundation for ICT industry, establishing cross-sectorial cooperation and making relevant regulatory adjustment.

Based on the review of the local context and international practices, the study develops a policy vision of smart city: “Liveable Intelligent Metropolis - Towards a Smarter Hong Kong” In order to achieve this vision, the study also develops a strategy known as “RISE”: Raising living quality, improving economic foundation, supporting a proactive public administration and encourage regional cooperation:

R - Raise living quality: a series of quality-of-life-enhancing measures such as promoting health ageing, enhancing quality of public health service, promoting smart transport system, and introducing sustainable waste and energy management.

I - Improve economic foundation: a series of economic competitiveness-building measures such as cultivating the development of ICT industries, establishing more data centres and work-places, nurturing talents.

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S - Support a proactive public administration: a series of governance-building measures for developing smart city, such as organizing an advisory committee, reforming the existing legal and regulatory measures

E - Encourage regional cooperation: a series of regional collaborative measures to strengthen the synergy between mainland, especially Pearl River Delta, such as developing cross-boundary spatial projects and promoting cross-boundary trading in innovation economy.

The above suggestions are based on the challenges that Hong Kong is facing in its smart city development and on the policy experiences of international cases. All these strategies carry implications for different stakeholders, likes the general public, the government and the private sector. These strategies have to be carried out on a gradual and continuous basis. The hope is that these strategies can create a new and better Hong Kong.

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Source: InfiSIM, 2016

1. Overview

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1.1 Overview

1.1.1 In recent years, many global cities have started exploring the possibilities of employing technological innovations to address the social, environmental and economic aspects of cities. City authorities have started to map out their smart city strategies and plans in order to enhance the quality of life and economic competitiveness. Hong Kong, being one of these global cities, has had a rather long policy discussion on its smart city development. As early as 1998, the Hong Kong Government published the first Digital 21 Strategy which set out the blueprint for the expansion of information and communications technology (ICT). Recently, a detailed study which identifies the challenges and opportunities of turning Hong Kong into a smart city was published by the Central Policy Unit (CPU, 2015) while the Kowloon East District is proposed as a pilot area to test the feasibility of developing Hong Kong into a Smart City. These policy documents and government initiatives emphasised the need for Hong Kong to harness the opportunities brought about by technological advancement in order to enrich quality of life and Figure 1 Smart City @ Kowloon East enhance productivity. Source: Energizing Kowloon East Office

1.1.2 While the idea of smart city has been mentioned in Hong Kong’s policy agenda for a relatively short period of time, a comprehensive policy research which can provide an in-depth study of the opportunities and challenges involved, and also a set of evidence-based policy recommendation under the local context are still missing. A study to fill up this knowledge gap is needed. This report has three specific purposes. It offers a consolidated overview about the existing initiatives carried out by different world cities, accounts for the existing achievements and obstacles in Hong Kong in its course of smart city development, and develops a comprehensive development vision and strategy for the metropolis.

1.1.3 This report is divided into four major parts. The first part aims to provide a comprehensive review of the concept of “smart city”. The second part will audit the current development and related policies to figure out the challenges and opportunities faced by Hong Kong in its smart city development. The third part will offer an overview about the overseas experience in relation to smart city development; it is hoped that this section can provide experience and insights which Hong Kong can learn from. Based on the preceding parts, the fourth part aims to develop a holistic development strategy including both spatial and non-spatial implications that help Hong Kong to

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be better prepared for further developments. Policy recommendations and justifications will be provided to support this proposed development strategy.

1.2 Structure of Report

1.2.1 The structure of report is as following:

Section 1 provides the introduction to the report. Section 2 introduces the study goal and objective of the report. Section 3 provides the methodology and related details of the paper. Section 4 offers a comprehensive review on the concept of Smart City. Section 5 evaluates the theoretical challenges and opportunity brought by Smart City. Section 6 review on local context and point out the opportunity and challenge. Section 7 presents the findings from international case studies. Section 8 recommends the Smart City development strategies. Section 9 summarises the report findings.

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2. Study Goal and Objectives of the Final Report

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2.1 Study Goal

2.1.1 The concept of the Smart City has recently gained global attraction. In order to seize the opportunities presented by this new paradigm and to manage future uncertainties and risks, this study will explore tangible and intangible qualities of the concept in order to seize opportunities and manage challenges with regards to the local context. Through an in-depth investigation, the aim is to provide insights for facilitating the formulation of policy strategies and spatial development plans which will assist Hong Kong in becoming a smart city.

2.2 Objectives

2.2.1 To achieve the study goal of formulating smart city planning policy suggestions and spatial development plans, several objectives have been created. They are as follows:

a To identify and review the relevant government planning and development initiatives in transforming Hong Kong into a Smart City.

b To examine and analyse the opportunities and obstacles in applying the Smart City concept in Hong Kong.

c To investigate and explore relevant international Smart City case studies.

d To recommend and propose feasible planning strategies and solutions for the Smart City concept in the local context.

e To suggest regional smart city initiatives with cities in the Pearl River Delta Region.

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3. Methodology

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3.1 Study Process and Methodology

3.1.1 The diagram below indicates the work flow, including the specific tasks involved and deliverables generated. This section outlines the tasks completed and key findings in the Inception Report and the Working Paper, as well as provides a detailed methodology of this Report.

Figure 2 Study Progress

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3.2 Phase ONE: Inception Report

3.2.1 As part of the Inception Report, the team set the goal, objectives and formulated the approaches to be used in this study. In the Report, desktop research on literatures and key terminologies was carried out. The team critically reviewed academic papers and related publications on the concept of Smart City, including more specific concepts such as Smart Working, Smart Living and Smart Public Services, and other related concepts namely sustainable development, smart growth, Big Data/IoT, digital city and city resilience. Desktop research is also significant for studying planning strategies and policies in Hong Kong. Hence, the team identified and reviewed relevant documents related to developing Hong Kong into a smart city. In addition, a set of proposed interview questions has been drafted.

3.3 Phase TWO: Working Paper

3.3.1 Following the framework set in the Inception Report, the Working Paper started with a thorough analysis on the local policy and have then identified the local opportunities and challenges. The observation and roles on different stakeholders have also been addressed. Afterwards, the Team focused on analysing the implementation in Smart Working in the local and international context, followed by in-depth quantitative and qualitative studies to investigate into the factors leading to the phenomenon, while the other two sub teams worked on Smart Public Services and Smart Living. Desktop research, field study, individual interviews and focus group discussions have been conducted, the details are as follows:

3.3.2 Desktop research: Initial desktop research is conducted to identify publications relevant to the Paper. Firstly, academic publications and consultancy reports are reviewed in order to construct the conceptual background of the study. A multi-disciplinary approach is adopted in identifying the relevant materials. Secondly, an in-depth international case studies on Singapore, Tokyo Metropolitan Area (TMA) and Seoul Metropolitan Area (SMA) had been conducted to highlight the lessons learnt from their practices on Smart City development. Meanwhile, the other teams conducted case studies on Barcelona and cities with the Pearl River Delta (PRD).

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3.3.3 Field study: A 5-day exploratory field study was conducted in Singapore from 6th March to 10th March 2016. The purpose of the field study is to develop a first-hand understanding about the implementation of Smart City initiatives in the urban context. In the course of the field study, selected institutions and companies involved in Smart City development were visited, namely Urban Redevelopment Authority (URA), Land Transport Authority of Singapore (LTA), iExperience by Infocommunications Development Authority (IDA), Future Cities Laboratory by National University of Singapore (NUS), Mapletree Investments Pte Ltd., and Sopra Steria Singapore.

3.3.4 Individual interviews: The individual interviews were conducted between 2nd March 2016 and 24th March 2016. Interviews involve asking questions which allow the researchers to gather first-hand information about a particular issue or phenomenon (Warren, 2004). In this study, individual open- ended interviews were conducted with the interviewees from different sectors and industries. They shared valuable experiences and views towards the concepts of Smart City.

3.3.5 Focus group discussions: To solicit further views from different stakeholders, two rounds of focus group discussions were conducted on 13th March 2016 and 16th March 2016 respectively. Focus groups are intended to create an opportunity for participants to discuss on a topic that is assigned by the researchers (Morgan, 2008). In this study, structured focus group discussions were conducted in order to understand the local working culture. The collected views from these informants contributed significantly to an in-depth understanding on the current working environment and culture in Hong Kong

3.4 Phase THREE: Final Report

3.4.1 In the Final Report, the team will briefly recap and summarises the research analysis from complementary Working Papers, including Smart Public Services, Smart Working and Smart Living.

3.4.2 A comparative analysis and highlighted lesson learnt from international best practices of five cities, including three studied cities, Barcelona and cities with PRD, will be conducted to provide references for the proposal.

3.4.3 Finally, based on the analysis of the information gathered in the Inception Report and Working Paper, a clear vision statement for the development of Hong Kong into a Smart City will be set out, and feasible strategies and measures focusing on living, economy, public administration and regional cooperation will be formulated for the preparation of the future strategic planning in Hong Kong.

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4. What is Smart City?

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4.1 Defining Smart City

4.1.1 Cities are complex structures made up of various elements, including people, activities, and infrastructure. As more and more of the world’s population migrate into cities in search of better employment opportunities, extended social connections and higher standard of living; the onus is on cities to reinvent themselves to accommodate such social pursuit, hence drive the introduction of the smart city concept.

4.1.2 The notion of Smart City has become increasingly popular in recently as we observe a fundamental shift in the way cities are planned. But what exactly are smart cities comprised of? How do we define such a seemingly simple term?

4.1.3 Smart cities are often associated with the ubiquitous and pervasive implementation of ICT within the city. However ICT alone does not automatically make a city smart. IBM’s definition of a smart city includes three characteristics: instrumented, interconnected and intelligent (Dirks & Keeling, 2009). Instrumented refers to the sources in which real-time data can be captured from the world around us. These sources can be located either in the physical world (i.e. traffic information, microclimate, etc.) or in virtual space (i.e. online user patterns, social media, etc.). Data collected via networks and various information technology (IT) systems across various agencies, both public and private, to improve the management of city services is known as interconnected. Together, these aspects extend the city beyond its physical infrastructure to include the nascent urban virtual domain (Harrison et al., 2010).

4.1.4 Furthermore, instrumented and interconnected data must be intelligently analysed. The data which has been collected and combined, must provide new insights that can help improving services provision, for example, making use of intelligent visual modelling or optimization services to help planning a more efficient route for emergency vehicles. While comprehensive in defining the IT characteristics of a smart city, this definition fails to address an important component of all cities, people.

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4.1.5 People bring life into the city. It is human activities that shape the city which in turn shapes us. This is especially true in a smart city, where the presence of a creative class is just as important as the implementation of ICT infrastructure. The creative class consists of innovative, creative and entrepreneurial citizens who use ICT within the city, as a means for, “mobilising and realising ideas and innovations” (Florida, 2004; Kitchin, 2014). By doing so, seeking to improve the quality of life. Furthermore, a knowledge-based economy emerges which is founded upon a neo-liberal approach to city governance and development that encourages the adoption of market-led, technological solutions (Kitchin, 2014; Hollands, 2008). Smart cities therefore represent a shift in urban governance to a more entrepreneurial form, that is being shaped by big corporations (Hollands, 2008).

4.1.6 A sustainable approach is part and parcel of the smart city notion. Our planet has finite resources, therefore smart cities must be able to address the social and economic needs of its citizens while respecting the environment. Additionally, this must be addressed in a manner that does not compromise future generations (World Commission on Environment and Development, 1987; Mori & Chistodolou, 2012). While the previous components work together to create a socially and economically sustainable smart city, environmental sustainability is also just as important. As Zygiaris (p.219, 2013) suggests, “Technological breakthroughs, people, and innovation processes build upon green city to bring a sustainable future. Conclusively, green economy rationalises the decision for smart city investments. Therefore smart cities are intrinsically linked to the green city concept in which Green city initiatives provide the foundations which ICT can work towards creating a more environmentally friendly future.

Conclusion

4.1.7 Altogether, the aforementioned elements are essential components of the current smart city paradigm. ICT is the face of smart cities, it is what people most commonly associate with the concept and to a certain extent, it is what ties the various components of the smart city together. The emergence of a creative class among the smart city’s citizens can take advantage of the advances in ICT and technology to improve the quality of lives and adopt said advances as a tool for creation and innovation. Citizen empowerment has also led to a new political economy where

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market-led, technological solutions have become the norm. In addition, environmental sustainability is a key motivator in the Smart city concept. Increased awareness for future generations have been embedded in the urban fabric and thus forces smart cities to also be sustainable. With all these elements in mind, smart city incorporates the ubiquitous and pervasive implementation of ICT, which allows creative class citizens to utilize such technology to not only improve the quality of life, but to create a new economy. With this in mind we define our Smart City as one which, “involves the utilisation of ICT and intelligent human resources to improve the city’s overall efficiency and enhance the living quality of its citizens. All of this is to be achieved in a sustainable manner that respects the three pillars of sustainability: social, economic and environmental”.

4.2 Smart City Wheel

4.2.1 The path towards building smart cities is never without challenges. A suitable framework helps benchmark cities in the development process, and also identifying challenges and opportunities (Cohen, 2012).

4.2.2 The Smart City Wheel suggested by Boyd Cohen (2012) has commonly been adopted by scholars and institutes in formulating and evaluating smart city development strategies (CPU, 2015). Smart Environment, Smart Government, Smart Living, Smart Mobility and Smart People were identified as the six key components of Smart City and is now commonly known as the Smart City Wheel. Key tasks and aims of smart city development in many world cities have been proposed according to these key components.

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Figure 3 Smart City Wheel Source: Cohen, 2012

4.2.3 As indicated in the Wheel, a smart city shall embrace development in the following six key components:

4.2.4 Smart Economy - Innovation, entrepreneurship, productivity and international appeal are important factors in achieving smart economy. And the stimulation of these factors can strengthen the flexibility, attractiveness and competitiveness of the city. (Amsmarterdam City, n.d.)

4.2.5 Smart Environment - A smart city should strike a balance between planning for growth and resources conservation (Smart Brantford, n.d.). Technologies are adopted in green urban planning to promote green environment. The technology use also involves the effective management of resources to achieve environmental sustainability (CPU, 2015).

4.2.6 Smart Government - The communication between government and citizens are strengthened through the use of new online platforms, such as ‘e-governance/ or ‘e- democracy’ (Giffinger, et al., 2007). They enhance the accountability, transparency and responsiveness of government, and thus be able to address the community needs and aspirations effectively (Central Policy Unit, 2015).

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4.2.7 Smart Living - Quality of life and living environment are emphasized, which include but not limited to health, safety, culture tourism, education, housing etc. (Giffinger, et al., 2007) Interactions between people and with the environment are enhanced through technologies and online platforms to bring upon a healthy, vibrant and balanced lifestyle. (Central Policy Unit, 2015).

4.2.8 Smart Mobility - A smart city shall be accessible by residents and visitors. Transport system linked with ICT infrastructure and open data can provide a comfortable, efficient, multifaceted and safe environment (Amsmarterdam City, n.d.). On top of infrastructural development, the software also plays a key role.

4.2.9 Smart People - Smart people refers to the social and human capital of the city. The capital is not only limited to the education and level of qualification of people, but also refers to the quality of interactions, such as participation in daily activities, openness towards other places, integration with society etc. (Giffinger, et al., 2007).

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5. Theoretical Challenges and Opportunities for Developing Smart City

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5.1 Challenges of Smart City

5.1.1 Smart City is not a flawless concept. There are certain limitations that are worth considering before formulating related strategies and policies.

Privacy Invasion

5.1.2 Privacy invasion, is considered as the most noticeable problem of smart city. One of the major characteristics of a smart city is to make good use of big data collected from various channels for institutional and organisational purposes, including technocratic governance, economic and policy development, and citizen engagement in the development of smart city. Big data is thus regarded as “essential constitute material to realising a smart city vision” (Kitchin, 2014, P. 2). Smart city ,emphasising the collection of big data and widespread adoption of different intelligent appliance, may help improve quality of life and urban development, yet it can possibly bring citizens under strict observation and scrutiny, altering the cityscape into a “panoptical environment” (Neirotti, De Marco, Cagliano, Mangano, Scorrano, 2014, p.34). Big data, comprising of personal and private information, may become the “troubling manifestation of Big Brother” (Boyd & Crawford, 2012, P. 664), allowing authorities to deprive citizens’ freedom and uplift state control. Kitchin (2014) further interpreted the data control centres, which are responsible for binding fragmented data into an organised system, as tools to facilitate the surveillance by the authorities. The data collected and recorded by the authorities are usually kept for a long period of time, resulting in a long-term surveillance and dataveillance (Dodge & Kitchin, 2007a).

5.1.3 Public suspicions have been aroused about the real intention of the institutions and organisations for collecting data from individuals after numerous incidents of misuse of privacy-related data. For instance, the US government halted the controversial untold surveillance on mobile data containing the phone records of millions of Americans in 2015 after it was revealed two years prior in 2013 by Edward Snowden, a former employee of Central Intelligence Agency (CIA), revealing documents from National Security Agency (NSA) (SCMP, 2015b).

Increase of City Vulnerability

5.1.4 Cities can become vulnerable due to a greater reliance on technology. Smart City heavily depends on software and the Internet for operation and management. With rapid development of technology, the Internet gradually replaces the real world. Townsend (2013, Ch.3) expressed his hesitation on code/space (intangible space created in the world constructed by software and computer programmes allowing people interactions and communication) that software and systems are highly insecure since they are in nature

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buggy and open to failure, and thus smart city being inherently vulnerable and easily destructible. Failure can be caused by numerous types of cyberattacks, including unauthorised system shutdown by external forces, alteration of systems and contained information, and data extraction from the system banks (Kitchin, 2015). An inherent fragility is created by a reliance on code/space in which the city can be easily paralysed when errors occur. This cast doubts on whether Smart City can really help construct a more resilient and secure urban space.

Aggravation of Oligopoly

5.1.5 Advocacy of the smart city concept may also be hampered as it can possibly bring about unfavourable oligopolies. Smart city is supposed to welcome the participations of technological companies of any scale, from small individual firms to transnational giants, and the development of ICT. However, in reality, the technological development vital for the realisation of building smart cities are dominated and controlled by a few multi-national technology corporations whom also happen to be the biggest supporters of Smart City concept (Hollands, 2008, p.314; Kitchin, 2012, p.10). Developing smart city to boost domestic economic development and offer local job opportunities may be an over-optimistic idea by the government since the transnational technological companies are highly mobile (Schiller, 2000, Ch 2). Kitchin (2012) suggested that smart city was indeed “an underlying neoliberal ethos” (P.2) which fortified market- led solutions for urban governance and promoted more capital accumulation by adopting ideas mainly from the giant business. Greenfield (2013, Ch. 1) criticised the governance of smart city for being openly influenced by corporations for their own benefits, consequently they were found to less effectively improve the urban space. Moreover, once urban governance begins to depend on corporations, undoing the accustomed practice will prove to be extremely challenging (Bates, 2012).

Intensification of Social Polarisation

5.1.6 Smart City development is also criticised as the cause of splintering urbanism. Splintering urbanism refers to economic and social polarisation of urban places (Graham and Marvin, 2004, p. 343). More than influencing economic and social aspects, smart cities could also produces clearer cultural and spatial segregations between the knowledge community and IT illiterates who are usually the underprivileged groups (Hollands, 2008, p.314). This may result in a digital divide as the differences in skills and understanding among the population in accessing and applying digital technologies lead to the polarisation of the population (Van Dijk, J., & Hacker, K, 2003). The impact of the smart cities goes beyond generating inequalities of work and housing. Social polarisation caused by Smart City may further result in

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creating unjust city space. Eventually, unskilled citizens will gradually be excluded from the smart city altogether.

5.1.7 Identifying the pitfalls of Smart City can remind us to thoroughly consider the limitations of the concept when drafting plans. The concepts can be realised more comprehensively when the possible loopholes are tackled.

5.2 Opportunities of Smart City

5.2.1 Notwithstanding the potential limitations, Smart City is still widely advocated and practiced by many cities since it provides various opportunities for urban development. In other words, smart city development benefits cities from numerous aspects, ranging inpolitical to educational aspects.

Efficient City Management

5.2.2 One of core aims of Smart City, increasing the efficiency of management and administration by adopting technologies can be evidently observed in city management. In contrast with the traditional way of city management, which is time-consuming and tedious, Smart City management is efficient and responsive (Washburn, 2014).

5.2.3 The most prominent change is the use of real-time data. City governments are keen on analysing real-time data to investigate how a city operates and thus seek better management measures (Kitchin, 2014). Real-time data could assist city management in various aspects, including transportation, water resources and security. By collecting data through different means such as online platforms, sensors and cameras, the city’s real-time conditions can be monitored without the physical presence of human actors at the locations (Dodge and Kitchin, 2007b).

Enhance City’s Resiliency

5.2.4 Smart City could also strengthen the city’s resiliency and its capability of tackling urban problems. Smart cities make use of real- time data to reduce damages caused by unfavourable conditions (Kitchin, 2014). For instance, the city of Rio de Janeiro in Brazil launched the Rio Operation Centre in a citywide smart data analytic centre, which collects and monitors various real-time data including traffic, weather, emergency service and utility provision (IBM, 2011). The Rio de Janeiro police and other emergency services could promptly analyse the existing conditions by studying the real-time data collected, in order to manage accidents more efficiently and decrease losses (Singer, 2012).

5.2.5 Real-time data and advanced technologies can also be applied to predict possible hazards through scenario modelling, allowing cities to take proactive responses (Haque, 2012). The Rio Operation

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Centre also could also forecast potential hazards including landslides and flooding, tin which the results were publicised to related government departments and citizens. The new forecasting and emergency alert system allow the city be well-prepared to the expected disasters and enabled prompt and proactive action (IBM, 2011).

5.2.6 Enhancement of the city’s capability to handle urban problems and challenges is another merit of Smart City. Prominent urban challenges, such as ageing population and climate change are hoped to be alleviated through the utilisation of technological innovations (Lee, Hancock & Hu, 2014). For instance, ageing population are a common phenomenon of more developed cities and hence create huge burdens on society. By adopting smart city strategies, the problems brought by ageing population could, to a certain extent, be mitigated and minimised by technological advancement. An improved healthcare technology and emergency system can also provide better care of elderly through the provision of efficient and cost-saving services (Washburn, 2014).

5.2.7 Smart City does not only contribute to minimising the harm from increasing natural hazards by analysis of real- time data, but it also helps to mitigate climate change proactively. Technological innovations can effectively lower the adverse impacts of human activities on the environment. For instance, Pamlin (2008) points out that due to the improvement of telecommunication technology and proper policy support, vehicular usage in the Unites States and many European countries have been reduced, which in turn reduces the use of gasoline and greenhouse gas emissions (Pamlin, 2008).

Enhance City’s Competitiveness

5.2.8 Smart City development could enhance economic competitiveness through nurturing technological innovations and ICT industries. Technological advancement brings a more flexible and efficient working and business operational environment which can help eliminating costs and increase profit. Moreover, since the city’s competitiveness is mainly driven by innovation and creativity (Bakıcı, Almirall & Wareham, 2013). Smart City stresses on the importance the development of ICT, innovative and R&D industries in the (Cohen, 2012). New industries cultivated by smart cities development could gradually emerge as a significant force to enhance city competitiveness.

5.2.9 Moreover, one of the most considerable challenges of city development is to strike a balance between enhancing competitiveness and achieving sustainability (Herrschel, 2013). Smart City which stresses on the development of ICT industries may be able to assist city to achieve such a balance (Paskaleva, 2011). Europe 2020, a vision set by the European Commission (2010), emphasises that economic development shall be smart, inclusive and sustainable. These aims could be achieved by focusing on the development of knowledge and innovative industry, promoting a

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greener, more competitive, resource-efficient economy and fostering a stronger social and territorial connectedness (European Commission, 2000).

Encourage Public Participation

5.2.10 Public engagement, which is vital for a city’s development, could be greatly fostered by adopting smart city initiatives, through improving collaborations and cooperations between government and citizens (Haque, 2012). The enhanced data openness emphasised by Smart City could facilitate public engagement and promote social interaction (Lee, Hancock & Hu, 2014).

Enhance Quality of Education

5.2.11 Smart City development facilitates education through the use of technology innovations. Increased information flow brought by smart city development could encourage the creation of various educational materials, improvement of education experience and reduction of education cost (Washburn, 2014). For instance,

Boston, has incorporated the promotion of the 21st Century Learning Programme to allow students and citizens obtaining a more convenient, life-long and integrated learning experiences (Department for Business Innovation and Skills, 2013). The Programme consists of several measures, for example, Boston One Card which permits the Boston Public School students to access rich educational resources at schools, community centres and libraries, aiming to “provide seamless educational opportunities for young people” (p.29). The long-term cost of education can be lessened by adopting technology innovations to education. Moreover, social barriers could be reduced and learning motivations could be enhanced by applying technological innovations (Bakıcı, Almirall, & Wareham, 2013; Nam and Tardo, 2011).

Better Resource Management

5.2.12 Resource management possess as a prominent challenge for all cities. Desirable strategies and technologies which could reduce resource consumption and achieve high resource- efficiency are greatly welcomed by cities (Washburn, 2014). By applying smart technologies, resources including water, food, electricity and other materials can be better monitored and allocated.

5.2.13 Numerous cities have been implementing “smart grid”, a smart system which helps accurately monitor the resources, mainly water and electricity. By connecting to various sensors, data bank

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and other systems, smart grid would be able to record and reduce resource consumptions by analysing the consumption pattern (U.S. Department of Energy, n.d.). For instance, Malta has adopted the concept of smart grid by integrating Smart Computing technologies into the water and power management systems, hence electricity losses and water leaks could be effectively reduced. In this respect, citizens and businesses could monitor the consumptions and effectively adjust the usage pattern accordingly (Washburn et.al, 2014).

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6. Local Policy and Review

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6.1 Current Smart City Related Strategies in Hong Kong

6.1.1 Government plays a major role in initiating Smart City strategies in Hong Kong. A brief description of local policies and strategies on Smart City development is illustrated according to the six major components of Smart City, namely Smart Economy, Smart Environment, Smart Government, Smart Living, Smart Mobility and Smart People in this section (Cohen, 2012). Regional initiatives will also be identified.

6.1.2 Smart Economy -With respect to Smart Economy initiatives, Hong Kong has achieved high-end manufacturing, financial support for start-ups, small and medium-sized enterprises (SMEs), and infrastructural support.

Table 1 Smart Economy Initiatives

“Re-industrialisation” To promote smart production and develop high-end manufacturing, re- industrialisation would be a potential source of economic growth in Hong Kong in the coming years (HKSAR, 2016a).

Initiatives on Hong HKSTPC located in Tai Po is promoting smart production and research. Kong Science and Besides, it will be further developed in different stages, providing an Technology Parks additional floor area of 70,000 square metres for start-ups and other Corporation (HKSTPC) technology companies by 2020 (HKSAR, 2016b).

Initiatives on Cyberport The number of incubation scheme quotas and the provision of co- working spaces are increased to cater for the developmental needs for the information and communication technology (ICT) industry. Cyberport Creative Macro Fund (CCMF) is launched to provide financial assistances to ICT start-ups (HKSAR, 2016a).

Initiatives on helping The Government has introduced multiple measures to support SMEs, SMEs including extending the application period for the “special concessionary measures”, reducing the annual guarantee fee rate by 10 percent and removing the minimum guarantee fee (HKSAR, 2016b).

Innovation and The Government has embarked HK$2 billion to set up funding to co- Technology Venture invest with the private venture capital to support the local technological Fund start-ups with private venture capital (HKSAR, 2016a).

Innovation and ITSP supports midstream and downstream research and development Technology Support (R&D) projects conducted mainly by universities, industry support Programme (ITSP) organisations, R&D centres and trade and industry associations, etc. (ITF, 2016).

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6.1.3 Smart Environment - With regard to Smart Environment, the focus areas include sustainable urban planning, smart buildings and resources management.

Table 2 Smart Environment Initiatives

Sustainable Urban Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending Planning 2030 (HK2030+) promulgated in 2007 has set sustainable development as the overall objective (CPU, 2015).

Greening Master Plan GMP serves as a guide for the planning, design and implementation of (GMP) greening in all districts (Civil Engineering and Development Department (CEDD), 2015).

Hong Kong Blueprint Hong Kong Blueprint for Sustainable Use of Resources was issued in 2003 for Sustainable Use of to set out clear goals and a 10-year timeline for the resource management Resources strategy of Hong Kong (CPU, 2015).

Water Intelligent The Government has iinstalled sensors in water supply networks to Network (WIN) reduce the risks of main bursts and leakages, thereby ensuring the efficient use of freshwater resources (HKSAR, 2016b).

Building Information The Government has introduced BIM on a pilot basis for generating a Modelling (BIM) three-dimensional digital representation of building data throughout the life cycle of a building (HKHA, 2012).

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6.1.4 Smart Government - Smart Government should provide strategic plans to promote Smart City, online public services, transparency and accessibility of information, and online data to the general public.

Table 3 Smart Government Initiatives

Innovation and ITB was established in 2015 to formulate a holistic framework and Technology Bureau policies for the development of Smart City (HKSAR, 2016a). (ITB)

GovHK GovHK is a government information portal and public service platform to facilitate citizens to obtain information on various kinds of public services and activities, make appointments for documents and licence applications and pay government bills, etc. (CPU, 2015).

Geospatial Information Lands Department has developed the Geospatial Information Hub and Hub and GeoInfo Map GeoInfo Map to provide accessible information to facilitate spacial analysis and assessment by various government departments and the general public respectively (CPU, 2015).

data.gov.hk data.gov.hk is a one-stop online portal to provide various digitised open data to facilitate value-added reuse by the public and enterprises (CPU, 2015).

Data Centre Facilitation Founded in 2011, DCFU provides one-stop helpdesk service and helps Unit (DCFU) liaising with other government departments for attracting and assisting operators to set up data centres in Hong Kong (OGCIO, 2011).

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6.1.5 Smart Living - In the Smart Living domain, the Government has offered support to enhance the quality of life of citizens by providing an environment that could facilitate improvement on public health and with easily accessible Internet connection facilities.

Table 4 Smart Living Initiatives

Free Wi-Fi hotspots Free Wi-Fi hotspots make it easier for citizens and visitors to access free Wi-Fi, the number of free Wi-Fi hotspots will be extended to 34,000 within three years. For instance, the provision of public transport interchanges, public housing estates, tourist locations and parks, with enhanced speed and security (HKSAR, 2016a).

Innovation and ITFBL will be set up to finance projects that have employed innovation and Technology Fund for technology, hoping to improve the quality of life of citizens (CPU, 2015). Better Living (ITFBL)

R&D on healthcare Research and development on biotechnology, healthcare and medicine remain as the key focuses of the HKSTPC to help alleviate the burden possess by the healthcare system and to promote healthy ageing (CPU, 2015).

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6.1.6 Smart Mobility - Smart Mobility covers three major aspects, namely traffic information systems, green modes of public transport and efficient logistics systems.

Table 5 Smart Mobility Initiatives

“Walkable Kowloon The Government has launched the pilot project of “Walkable Kowloon East” East” to improve the local pedestrian and traffic environment, thus enhancing pedestrian and vehicular access by using technology such as Environmentally Friendly Linkage System (EFLS) (Energizing Kowloon East Office (EKEO), 2012).

Area Traffic Control To manage all traffic lights and to conduct real-time monitoring via CCTV Systems networks, traffic lights are adjusted according to the actual traffic conditions to divert traffic flow and enhance efficiency (CPU, 2015).

Transport Information Transport Information System is a central database to collect, process System and disseminate comprehensive transport information. It also provides road users and the general public with four major services, including Road Traffic Information Service (CPU, 2015).

Road Cargo System To streamline customs formalities and enhance border control efficiency (ROCARS) by allowing shippers to register cargo information in advance via the online system before transporting the cargoes through boundary control points (CPU, 2015).

Autotoll system It is widely adopted on major trunk roads and tunnels to provide automatic electronic toll collection service to facilitate traffic flow (CPU, 2015).

Traffic Detectors Traffic detectors are installed along the strategic routes to provide the public with accurate real-time traffic information and enhance transport efficiency (CPU, 2015).

Promote the Use of The Government will promote the use of electric vehicles and increase Electric Vehicles the provision of charging facilities. There will be more retired batteries which can still be reused for energy storage (CPU, 2015).

“Universal The programme was introduced in 2014 to retrofit barrier-free access Accessibility” facilities to the existing public walkways (CPU, 2015). Programme

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6.1.7 Smart People - Smart People is one of the key elements in Smart City. Initiatives consist of general ICT education, funding for R&D in universities and nurture ICT talents.

Table 6 Smart People Initiatives

Enriched IT In 2015, the Enriched IT Programme in Secondary Schools was launched Programme in with a view to nurture IT professionals to facilitate Science, Technology, Secondary Schools Engineering and Mathematics (STEM) education in Hong Kong (OGCIO, 2011).

The Academy of Established in 2015, with the aim to promote development and Sciences of Hong Kong advancement of science and technology (The Academy of Sciences of Hong Kong, 2016).

Overseas Research The world-renown Karolinska Institutet of Sweden will set up its first Facilities overseas research facility at the Science Park. Besides, the Massachusetts Institute of Technology will also establish its first overseas Innovation Node in Hong Kong (HKSAR, 2016a).

The Association of The scheme is launched by the Hong Kong Economic and Trade Office in Southeast Asian Singapore in 2014. Students could gain first-hand knowledge on the Nations (ASEAN) economic and socio-cultural environments of the ASEAN countries Internship Scheme through participating in the scheme. The total number of participating tertiary institutions will extend to 11 from 2016 onwards (HKSAR, 2016b).

Midstream Research The Government will inject HK$2 billion to provide for universities to Programme for initiate midstream research on and the respective application on the key Universities technology areas (HKSAR, 2016b).

University-Industry UICP aims to promote close collaborations between private companies Collaboration and universities in R&D, as well as fostering university-industry linkages Programme (UICP) (ITF, 2016).

R&D Cash Rebate R&D Cash Rebate Scheme aims to enrich the research culture among Scheme private companies and encourage them to strengthen partnership with designated local public research institutions (ITC, 2016).

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6.1.8 Regional Initiatives - Regional Initiatives refer to the cooperation among local tertiary institutions, local private companies and the neighbouring cities located in the Pearl River Delta.

Table 7 Smart Regional Initiatives

Smart City Research The Hong Kong University of Science and Technology (HKUST) and Digital Institute China Holdings Limited, the largest integrated IT service provider in China, signed a framework agreement to build the Smart City Research Institute, hoping to foster the development of smart city in Hong Kong and Mainland China (HKUST, 2015).

Expansion of HKSTPC The Government will identify sites near the Liantang/Heung Yuen Wai site area Boundary Control Point for the development of Science Park and industrial estates to cater the growing demand on HKSTPC site (HKSAR, 2016a).

The Qianhai Shenzhen- The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Hong Kong Modern Zone was established with the aim of serving as an experimental Service Industry business zone for better interaction between the Mainland China and Cooperation Zone Hong Kong in the financial, logistics, and IT services sectors (China Briefing, 2014).

Scheme for Cross- The scheme, in cooperation with Shanghai in 2012, enables Hong Kong boundary Study Tour students to understand the prospects and dynamics of the financial for Post-secondary markets in Mainland (HKSAR, 2016b). Financial Talents

Guangdong – Hong The scheme, initiated by the Innovation and Technology Commission Kong Technology (ITC), aims at strengthen collaborations between universities, research Cooperation Funding institutes, trade and industry associations, professional bodies, and local Scheme (TCFS) companies in technological research (ITC, 2013).

Shenzhen/ Hong Kong Shenzhen/ Hong Kong Innovation Circle was announced in May 2008, Innovation Circle was the first major project under the Innovation Circle umbrella, as a joint project between Shenzhen, HKSTPC, and DuPont to establish a Solar Energy R&D Support Center (Segal, 2014).

6.1.9 Overall, Hong Kong has implemented abundant measures in the areas of Smart Government and Smart Mobility, to name but a few, the extensive coverage of electronic public services and the use of public transport and intelligent transport system. In order to facilitate the development of Smart City, Hong Kong government is expanding the range of initiatives in Smart Environment and Smart

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Living such as increasing the number of free Wi-Fi hotspots and improving public health services to enhance quality of life of citizens. Moreover, the government has been promoting digital economy in Hong Kong, such as supporting the upgrade of local industry and transforming them into high value-added businesses, in order to foster economic diversification and enhance competitiveness in Hong Kong.

6.1.10 In addition, Hong Kong government has put a lot of effort to nurture ICT talents. Measures such as promoting STEM education in secondary schools, providing funding for universities to carry out R&D, and encourage collaboration between universities and the ICT industry have been adopted. By expanding the talent base, the development of Smart City in Hong Kong could be effectively initiated.

6.2 Challenges

6.2.1 Cities often encounter various policy challenges in the course of smart city development. The main challenges that Hong Kong has encountered includes (a) the lack of a good policy definition and direction, (b) the low resources input into research and development, (c) Inactive partnership between public and private sectors, (d) the complexity of bureaucratic tradition and the limited intra-governmental communication, and (e) the lack of regulatory adjustment. These challenges are not mutually exclusive but influence one another.

Lack of Policy Definition and Direction

6.2.2 The absence of a clear policy definition for Smart City has aroused confusion on the potential impact on Smart City development. A good working definition is crucial for formulating policy agenda for Hong Kong and identifying relevant resources necessary for policy implementation. The term “Smart City” has been repeatedly mentioned in different government documents like the Policy Address and the Budget. However, a comprehensive strategy that provides clear directions and objectives for policy-making has not been formulated. For instance, Digital 21 initiative, a strategic plan for developing smart city in Hong Kong, provide an ambiguous vision of “advancing our achievements and seizing new opportunities: building on Hong Kong’s position as a world digital city” without setting concrete goals and objectives (HKSAR, 2007, Section 2.8). Meanwhile, the recent research report by the Central Policy Unit (2015), after providing an overview about the development of smart cities in different part of the world, still cannot provide a good foundation for policy making. For instance, the Report has not provided discussion as to how the six dimensions (smart economy, smart mobility, smart environment, smart citizen, smart living and smart government) of smart city can be adopted in the context of Hong Kong (CPU, 2015, pp. 3-4).

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6.2.3 While the term “Smart City” has appeared in various government documents like the Policy Address and the Budget, the Hong Kong government still fails to articulate explicitly what the smart city aspiration is in the city. One of our interviewees, a professor from University of Hong Kong, pointed to the lack of critical understanding about what smart city means. He commented that “smart city is a very broad concept and has different spectrum; we should firstly ask what kind of

smart city we want Hong Kong to become” (Interview Record, 15th March). This results in a high degree of uncertainty as to how smart city development can connect to the wider political economy.

Low Input in Research & Development (R&D)

6.2.4 The implementation of smart city initiatives requires substantial input and investment in R&D. But the track record of Hong Kong in this area is not promising. Compared with Singapore, the total spending on R&D of Hong Kong is relatively low in both public and private sectors. While the public sector spent 0.8% and private sector spent 1.3% of GDP investing into R&D in Singapore, Hong Kong only spent 0.4% and 0.3% respectively (Our Hong Kong Foundation, 2015). From the overseas experience, R&D is very often embedded in the industrial development of the economy (Legislative Council Research Office, 2013). Given that Hong Kong has not yet developed its own R&D policy, it is not surprising that this cannot be fully integrated into the economic cycle of the city.

Inactive Partnership between Public and Private Sector

6.2.5 The lack of platform and weak partnership between the public and private sectors has limited the prospect of developing new innovations in Hong Kong. Firstly, the existing collaboration approach between the two sectors in Hong Kong tends to be ad hoc and lack strategic thinking. The absence of public-private partnerships in funding innovation is a case in point. Indeed, there has been an expanding range of start-up funding schemes introduced by the Hong Kong Government and private sectors, such as Technology Business Incubation Program. Yet, according to a co-founder of an insurance start- up (Interview Record, 16th March), the scope of the existing funding schemes offered by Hong Kong government and private firm overlap significantly. In addition, most of these schemes over emphasize on starting the business, but lack attention towards product consolidation and long term investment, for example angle investment which are essential for sustaining the growth of start-ups in later stage is needed.

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6.2.6 Secondly, the entrenched mode of laissez-faire economy has led to a rigid division between the private sector involvement and the public sector involvement. For instance, there are worries that the expansion of the public sector involvement in smart city development can affect its existing market share. A Legislative Councillor (Interview Record, 24th March), and a planner from the Planning Department (Interview Record, 22nd March), mentioned the project of expanding free Wi- Fi coverage as an example to illustrate this problem. Given that there are tremendous cost involved in applying for a license to provide mobile data service, existing telecommunication companies would resist any attempt by the public sector to introduce free Wi-Fi coverage. Another example is the growing business concern among different transport service providers in the provision of real-time data to the public.

The Complexity of Bureaucratic Tradition and the Limited Intra-Governmental Communication

6.2.7 The existing bureaucratic tradition has led to complex intra-governmental communication. According to the comment of one government official responsible for Smart City projects in Hong Kong (Interview Record, 17th March), while government departments have developed different “smart initiatives”, they rarely coordinate with one another. According to the interviewee, the communication channel within the Hong Kong government is too complex and often experience difficulties getting messages to the relevant departments. Approvals from the bureau level are required before any interdepartmental communication can take place. The communication loop within the government structure has led to confusion and time delays in project implementation. Also, agreed by another interviewee, a Legislative Councillor, government departments and bureaux seldom coordinate among themselves (Interview Record, 15th March).

6.2.8 Secondly, the data-sharing practice within the public sector in Hong Kong remains under- developed. Although there has been an increasing realization that data-sharing in the public sector is essential for smart city development, such practice is not popular. As explained by one of the interviewee (Interview Record, 22nd March), there are no protocols for standardising data. On one hand, the data collected by one department may not be compatible with other departments. As a result, the data collected for or from a specific project may not be useful for other departments. On the other hand, even if they had made use of the same data platform, there would be no channels to share it across departments. An example to illustrate this is the geographic information system (GIS) datasets that are commonly used in Planning Department, Lands Department and Highways Department are not shared or have been imposed with limited accessibility. Most importantly, each government departments may have vested interest in its own dataset. An example is that the checking of land lease possession being an important source of revenue for The Land Registry.

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Lack of Regulatory Adjustment

6.2.9 There is a lack of regulatory adjustments in view of the changing technological market. Firstly, there is a big grey area in the existing legal regime, which deters potential players to enter into the market. As admitted by a start-up operator, it is fairly easy for him to fall into the legal pitfall when there are no relevant provision of regulation for those innovation products. Meanwhile, some of the start-ups claimed that it is difficult to start a financial technology (Fintech) related business in Hong Kong because the legal framework has not yet been developed (KPMG, Thomas Reuters & DLA Piper, 2015).

6.2.10 Secondly, there is limited legal room to allow the importing of foreign technological innovations into Hong Kong. For example, the recent legal controversy associated with Uber Technologies Inc. (Uber) reflects the growing difficulties with the existing legal system to accommodate a new mode of “deep integration of data-driven systems in every facet of city life” (Sadowski and Gregory, 2015). While China has already paved the way “to legalise Uber-style ride-hailing services by scrapping long-standing taxi regulations”, we fail to foresee similar legal developments in Hong Kong (Li, 2016). Also, Mr. Charles Mok, the Legislative Councillor from the functional constituency of Information Technology, pointed out that Airbnb, Inc. (Airbnb) which is a popular online platform for vacation rentals, has violated the existing Hotel and Guesthouse Accommodation Ordinance (Cap 349) (Apple Daily News, 2015). Anyone, who intends to provide accommodation services, is required to register under the existing Hotel and Guesthouse Accommodation Ordinance. Another example, as expressed by another interviewee, the limited expansion of hydroponics illuminates a grey area of the existing legal regime in governing new agricultural products. There is limited room to flexibly adopt new knowledge and technologies in opening up new markets.

6.2.11 Thirdly, the underdeveloped legal infrastructure governing cyber security has been a discouraging factor for smart city development. Internet governance in Hong Kong is very fragmented and is formed by a patchwork of laws (such as Electronic Transactions Ordinance) and a series of government IT security policy and guidelines. These guidelines, however, have not been updated in response to the changing industrial condition (the date of the latest update indicated is 2012). Laws governing data collection and retention, protection of civil liberty, and criminal dealings are not considered as mature or could be effectively implemented. For example, it was found that less than 3 per cent of reported computer crimes are brought to the court (Norris, 2010). A lawyer commented that the existing anti-cybercrime regime only “addressed the problems that existed in the early 1990s before the internet boom in the millennium ... [and] there has been relatively little progress in legislative development in relation to cybercrimes since 1993” (Norris, 2010). The recent huge data breach at local toymaker VTech suggests that there remains widespread indifference towards the need for legal compliance of cyber laws (Perez, 2015a). Meanwhile, there

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is a great deal of uncertainty in harmonising domestic legislation with those of other jurisdictions and international standards (SCMP, 2003). This could pose a challenge in the investigation of multi- jurisdictional legal cases.

6.2.12 To sum up, the five challenges discussed above have underscored the lack of institutional and policy capacity for developing Hong Kong into a smart city. There is an institutional inertia to encourage the entrance of new markets or to develop a human capital basis for smart city development. Meanwhile, despite the Government has reiterated its vision to develop Hong Kong into a smart city, the lack of strategic and collaborative thinking in the public sector remains an obstacle for smart city development.

6.3 Opportunities

Solid Technological Foundation

6.3.1 A strong ICT foundation is imperative for the development of Smart City. Over the years, Hong Kong government has worked hand-in-hand with telecommunication companies to enhance the technological competitive edge of the city. As a leading player in the ICT field, the city has the potential to evolve and become one of the smartest city in the world.

6.3.2 Some large-scale infrastructures might have gone unnoticed, they are, yet, contributing and benefiting our daily internet communications, facilitating our activities as a result. These unseen connections such as the nine submarine cable systems or the ten satellite operations provide reliable and smooth internet browsing experiences to users (OGCIO, 2016). For instance, the Asia Submarine-cable Express (ASE) was launched in 2012 that it connects Hong Kong with Japan, Philippines, Singapore and Malaysia, being one of the fastest submarine cable in the world (NTT Communications, 2014). With more efficient and reliable linkages to neighbouring countries, more companies can seize the opportunity to develop data centres in Hong Kong. Among these companies, the Tokyo-based NTT Communications provides a good example. The company, under the telecommunication giant, Nippon Telegraph and Telephone, has recently completed a HK$4 billion investment on a data centre expansion project in Tseung Kwan O Industrial Estate. The company is already operating other data centres in Kwai Chung and Tai Po, but their executive vice- president mentioned that their company observed a strong demand from the market for more data centres (Perez, 2015).

6.3.3 Good connection does not only exist between Hong Kong and other countries, it also exists within Hong Kong. Referring to the latest statistics, the mobile subscriber penetration rate in November 2015 has reached 227.2%, indicating averagely one citizens owning more than two mobile devices, while the household broadband penetration rate has reached 83.8% (OFCA, 2016). In terms of

Internet connections, Hong Kong ranks 5th in the average Internet connection speed and 2nd in the

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peak Internet connection speed in the world (Akamai, 2016). These promising figures do not only show a huge demand for internet access, but also a potential for further exploration of different smartphone applications or different uses of big data. In addition, people in Hong Kong can view, publish and access the content of the Internet without any screening and censorship. The Government also has taken the first step in collaborating some government data via the data.gov.hk website (data.gov.hk, 2016), as suggested in the Policy Address 2016, more opening of data from public and private sector is expected (HKSAR, 2016a). Together with the attempt to further expand the Wi-Fi hotspots around the city, the network coverage and connection are certainly advancing, offering an ideal platform for ICT industry to excel in the coming years.

Enlargement of Talent Base

6.3.4 Hong Kong’s potential to develop into a smart city does not only comes from solid infrastructure, of equal importance is the development of human capital. In fact, Hong Kong has a pool of ICT talents who are willing and ready to take on the journey towards building a smarter Hong Kong. According to the latest update from the Government, there are around 83,000 professionals participating in different business sectors, with 38% in the software design and development sector for example (ITC, 2015). It is also stated that there are more than 2,200 ICT students graduating from tertiary institutions every year. These graduates would bring in new ideas and innovations to the industry. This year, the Government has stepped up their commitment in cultivating young innovative minds by providing a tuition fee subsidy to students admitted to construction, engineering and technology in the Vocational Training Council (VTC) (HKSAR, 2016b). The Government is also actively encouraging science and engineering graduates to participate in R&D projects supported by the Innovation and Technology Fund (ITF). By January 2015, there are already 1,800 intern positions provided by these projects.

6.3.5 Other than nurturing a new breed of young ICT talents, the Hong Kong Productivity Council (HKPC) for instance has provided a wide range of training courses to enhance competitiveness of general workers regardless of their fields (HKPC, 2016). Some of their latest programmes, for instance, a diploma in 3D printing technology, have opened up a wider potential for enterprises to deliver new and innovative products to the market and have inspired workers to deliver smarter solutions in their respective industries. Cyberport and HKSTPC are also playing their role in offering various seminars and programmes to disseminate the latest ideas and innovations to companies and workers.

6.3.6 Through learning and exploring, one could train his or her creativity and innovative mind. Creativity is hard to measure, but several of our interviewees had expressed positive attitude towards Hong

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Kong citizens’ acceptance and willingness to learn about the latest inventions and technologies. This provides the grounds in which the city can push forward new ideas.

Increasing in Regional Cooperation

6.3.7 Cooperation and linkages with Mainland, specifically cooperation with the neighbouring cities in the Pearl River Delta, is growing. Hong Kong, being a regional leader, plays the role as a business gateway to the market in China. According to Hong Kong Trade Development Council (HKTDC) (2016), Hong Kong is not only the largest source of overseas direct investments in the Chinese market, but also the regional headquarters and offices of 3,798 foreign companies, and 70% of them conduct businesses in China in 2015. These efforts, together with the opportunities brought by The Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA) and the latest Belt-and-Road initiative, signify the ever-growing

cross-boundary opportunities. The opportunities are further recognized in the 13th five-year plan in China, with Beijing showing support for innovation and technology in Hong Kong, and exchanges over the border (Cheung, 2016). In a more liberal market exchange, Hong Kong will continue to play the role of regional financial hub, strengthening the economic cooperation between cities.

6.3.8 Utilising the human resources and market in mainland China, Hong Kong could continue to contribute its own research success. Over the years, the TCFS funded 66 projects with around HK$168 million of funding from the Hong Kong government; this has encouraged the collaboration of research (ITC, 2015). Adding on to this is the cooperation between Hong Kong and Shenzhen on the academic field. Different tertiary institutions have set up research branches in the High-Tech Zone in Nanshan, to foster the exchange of talents and resources.

6.3.9 Another major development illustrating strong regional linkage in recent years is the Qianhai development in Shenzhen. They have a vision to create a modern service industry zone to demonstrate Guangdong-Hong Kong innovation cooperation (Qianhai International Liaison Services Limited, 2014). In the interview, the University of Hong Kong (HKU) Professor left a remark on the Qianhai development, stating the great potential for Hong Kong young talents to showcase their innovative ideas in the area. In fact, this development project is not only supported by HKSTPC, but also some of the biggest commercial chambers in Hong Kong, such as the Hong Kong General Chamber of Commerce (HKGCC) and the Chinese General Chamber of Commerce (CGCC). As a result, it is possible that the area can become a testbed for new technologies and products.

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7. International Case Study

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7.1 Introduction

7.1.1 Smart City is no longer an imaginative utopia. In fact, over 100 smart city projects have been initiated globally, while many major cities in the world have adopted Smart City strategies to solve some of the major global challenges such as the aging population, climate change and high density. Hence, Smart City development has emerged as a feasible and popular trend in city planning.

7.1.2 While all cities possess unique characteristics and cultures, they also shares common opportunities and challenges, hence international case studies have been conducted in the hope that they will provide a comprehensive compendium for the development of Smart Working strategies. In the working paper, the team has conducted in-depth case studies on Singapore, Seoul Metropolitan Area (SMA) and the Tokyo Metropolitan Area (TMA). Additionally, other teams have conducted supplemental case studies on Barcelona and cities within the Pearl River Delta (PRD), thus providing a comparative overview of some of the best practices internationally on smart cities development. The objective of this section is to highlight the lessons learnt from the international best practices.

7.2 Justifications

7.2.1 Singapore, Seoul and Tokyo have been meticulously shortlisted as the subject of our case studies, due to their renowned success in their Smart City Initiatives, the similarities between Hong Kong and the three cities in terms of their socio-economic structures and their approach to Smart Working.

7.2.2 Renowned Success - Singapore, Seoul and Tokyo has been selected as the subject of our case studies due to their renowned success in their Smart City initiatives. According to the indicators development by Dr. Boyd Cohen, the three cities have topped the 10 Smartest Asia/Pacific Cities rankings.

Table 8 The 10 Smartest Asia/Pacific Cities

Ranking City 1 Seoul 2 Singapore 3 Tokyo 4 Hong Kong 5 Auckland 6 Sydney 7 Melbourne 8 Osaka 9 Kobe

10 Perth

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7.2.3 Major Competitors in the Asia Pacific Region - The geographical proximity and similarities in the level of development between Hong Kong, Seoul, Singapore and Tokyo have made the comparative studies between Hong Kong, Seoul, Singapore and Tokyo the most appropriate choice. In fact, fierce competition among the four cities to become the most important international financial centre in the Asia Pacific region has occurred since 1990s. In this respect, it is crucial to keep track of our major competitors to secure Hong Kong’s position as Asia’s World City.

7.2.4 Similar Economic Pattern - Notwithstanding the fierce competition, the similarities in economic pattern between the four cities have also made the comparative study a valuable reference for Hong Kong. For instance, Hong Kong and Singapore share similar economic structures in terms of GDP sectors, with the service industry as the most dominant component. All four cities also share similar inflation patterns. Moreover, Hong Kong, Seoul, Singapore and Tokyo are prone to regional economic shocks, for instance the 1997 Asian Financial Crisis.

7.2.5 Common Asian Culture - Hong Kong, Seoul, Singapore and Tokyo also share a common Asian culture such as high-effort work mentality. Meanwhile, the cities have also historically interacted with each other.

7.3 Summary of the Smart City Initiatives adopted in Singapore, Seoul and Tokyo

7.3.1 Singapore adopts a top-down planning model for the overall coordination of smart city development, this includes: strategic positioning, masterplanning and practical implementation. Given the limited land resources and high density environment, Singapore’s smart city initiatives strive to develop a well-connected society through the development and adoption of ICT in various aspects of the city. In this respect, Intelligent Nation 2015 (iN2015), the long-term blueprint for smart city development, embraces “Innovation, Integration and Internationalization” as the overarching themes. The goal is to combine Singapore’s economy, citizens, governance, mobility, environment and living with smart elements. To this end, the Smart Nation Programme Office (SNPO) under the Prime Minister’s Office (PMO) and the Infocommunications Development Authority (iDA) under the Ministry of Information, Communications and The Arts (MICA) was established to coordinate and implement the plan.

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7.3.2 Smart city initiatives in Seoul’s metropolitan area focuses on the development of an integrated city management and ICT penetration application. Building on the u-Seoul project, Smart Seoul 2015 was established in 2011, in which the focus was shifted from the application of ICT in individual municipal facilities to the development of an integrated city management framework; while also providing adequate ICT education to citizens of all ages. Similar to Singapore, Seoul’s smart city initiatives are government driven. To this end, the Vice-Mayor, who also served as the Chief Information Officer of the Seoul Metropolitan Government, is responsible for the coordination and formulation of the Smart Seoul strategy.

Figure 5 Smart Seoul Source: International Telecommunication Union

7.3.3 Smart city initiatives in Tokyo’s Metropolitan Area focuses on the Kashiwa-no-ha Smart City Initiatives, which adopts a targeted development and market-led approach. To this end, fostering energy security, boosting local development in social and economic terms and enhancing regional and local competitiveness have been selected as the targeted goal of Kashiwa-no-ha’s smart city initiatives. Meanwhile, local private corporations take on an active role in initiating and implementing smart city strategies. Through smart environment, industry and health initiatives, Tokyo hopes to transform into an environmental-symbiotic City, a city of New Industry Creation and a city of Health and Longevity.

Figure 6 Kashiwa-no-ha Smart City Source: Mitsui Fudosan Co.,Ltd

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7.4 Lessons

7.4.1 After conducting in-depth international case studies on Singapore, SMA and TMA; the study of Barcelona and cities within PRD, which were conducted by the other teams, have also been reviewed. Overall, It was identified that the provision of: A structured and comprehensive strategy, a solid foundation for the development of ICT industry, strong cross-sectoral cooperation and the creation of relevant regulatory adjustment are crucial steps in achieving smart city development.

Structured and Comprehensive Strategies

7.4.2 “Structured and Comprehensive strategies” is defined as the creation of comprehensive plans by government, which offers a clearly defined vision that encourages internal departments to follow suit. In Singapore, Smart Nation is the national vision set by the Government (Prime Minister’s Office Singapore, 2016). Various government departments endeavour to realise this vision by following the strategies drafted in the Master Plan for Singapore. The Master Plan includes strategies for different departments, illustrating how the national goal can be achieved by having all government agencies work towards a clearly defined objective, under the lead of SNPO. Similarly, the significance of 2030 Seoul Master Plan does not only refer to spatializing smart working strategies, but more crucially, to gather the contributions from different government departments, following the same vision, for Smart City development.

7.4.3 In Hong Kong, creating a holistic strategy is one of the biggest challenge. As mentioned as in the previous “Local Policy and Review” section, there is generally a lack of coordination in Hong Kong’s development of Smart City. Without a cross-department/ bureau office to monitor the progress, different departments follow their own interpretation of the concept and eventually carry out piecemeal and scattered programmes. The establishment of the EKEO is an attempt to resolve this issue.

7.4.4 With an aspiration to become the first smart nation in the world, Singapore has established a SNPO under the Prime Minister’s Office (PMO) to oversee the entire development process (PMO, 2016). Various government departments endeavour to realise the vision by following the actions drafted in the Master Plan for Singapore. Similarly in Barcelona, “Smart Barcelona” was initiated by its mayor in 2011 and thus the City Council is responsible for the overall strategy formulation (BCN Smart City, n.d.). Under the City Council, are the Project Management Committee and Smart City Personal Management Office to manage and monitor the entire process (Adjuntament de Barcelona, 2012). With strong governmental leadership, the dissemination of orders and instructions are effective. An office set up at a higher level could also serve the purpose of

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coordinating the efforts from relevant government departments and ensure that various targets are met.

7.4.5 The establishment of an office will not lead to success unless coupled with a clear vision and feasible development strategies for departments to follow. For instance the Seoul Metropolitan Government (SMG) has launched the Smart Seoul 2015 strategic plan with a vision to make “Seoul, a city of happy citizens and a city beloved by the world” through the application of smart technologies (SMG, n.d.). SMG will incorporate and push forward the spatial framework and assignment of specialized industrial clusters into the establishment of the 2030 Master Plan. The integration enables smart ideas and initiatives to be implemented and carried out in the 2030 Master Plan. While in Singapore, with an aspiration to become the world’s first smart nation, the government updates their master plan regularly. The promulgation of the comprehensive development strategic plan – Intelligent Nation 2015 and later succeed by Infocomm Media 2025 have set out visions and strategies that can be followed by various government departments (Infocomm Development Authority of Singapore, n.d.; Ministry of Communications and Information, 2016). In the development of a Smart Nation, one vision “involves pulling together its world-ranked universities and medical facilities, multi-billion annual research and development (R&D) investments, a fast-growing community of tech start-ups and large pools of investment capital” and “centres on the government and private sectors using technology holistically to bring about better lives and greater business opportunities” (Forbes.com LLM, 2016). These visions promoted by their respective cities, address and respond to the critical urban issues faced by the people and society. Tailor-made and fitted to the local context, these visions and strategies are developed upon the competitive edges of the city, and provided a timely solution to existing problems.

Provision of Solid Foundation for ICT development

7.4.6 Upon developing a structured and comprehensive strategy, provision of solid foundation for ICT development should be the next step. In fact, one of the strengths of Hong Kong is the introduction

of quality technological infrastructure, in fact, Hong Kong ranked 9th in ICT Development Index, indicating that Hong Kong has relatively high ICT capabilities (ICT Development Index, 2015). To this end, Hong Kong can build on its strength and further improve the technological infrastructure, allowing the city to take full advantage of ICT services and ensure its contribution to wider smart city development. Furthermore, Hong Kong still has room for improvement in terms of ICT talent cultivation. Although the government does provide resources in nurturing local innovations, it falls

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short in providing targeted support for “the urgent need to cultivate talent for the ICT industry” (Hong Kong Computer Society, 2016). Moreover, people in Hong Kong are still relatively conservative in utilizing e-services and new mobile applications, thus there is an urgent need in enhancing community acceptance of the wider service application of ICT through education and training. Therefore, it is important for government to lay solid foundations in terms of robust technological infrastructure, data transparency, ICT education and training and adequate financial support in order to enable the establishment of smart city. International case studies on Singapore, Seoul, Tokyo, Barcelona and cities within the PRD all demonstrate this provision of solid foundation for ICT development.

7.4.7 Technological foundational infrastructures such as free, city-wide wi-fi network coverage and affordable ICT services are essential for the establishment of a Smart City. In Singapore, the Government attempts to lay a strong bedrock for Smart City development by fortifying ICT infrastructure. For instance, the Next Gen NII initiative serves as its official attempt in offering improved nationwide broadband network infrastructure including both wireless and wired. In Barcelona, the Superblock project and 22@Barcelona were initiated as pilot projects that provides wide-range of technological infrastructures including: charging facilities for electric vehicles, smart refuse collection points, smart car parks, water management system, green traffic modes, as well as extension and activation of open space and greenery. The above examples demonstrate the importance of providing accessible and affordable smart infrastructures to the public.

7.4.8 The international case studies have also demonstrated the need to provide accessible and decipherable data to facilitate social innovations, thus laying the data foundation for smart city development. In Seoul, the Open Data Plaza is established to provide over 1500 visualized data in 10 different classifications. Seven types of data formats are provided, including sheet, chart, amp, file, link and open application programme interface (SMG, 2015a), to allow for general public access to the data. Furthermore, in Barcelona, Agent-Based Modelling and Geographic Information System (GIS) are established as a platform to provide public access to spatial information. Citizens are provided with a one-stop portal to access to specialized information such as geography, historical orthophotos or even biomass distributions. Information like this can be used for the interests of environmental protection, urban facilities utilization and purposes. In a different case, PRD is now building a smart spatial information platform which retrieves data from network sensors based on the ICT, the data is then processed and standardized; hence promote information sharing. With accessible and decipherable data, information flow can be enhance and thus encourage smart innovations.

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7.4.9 Moreover, people are the backbone of cities. Nurturing human talents that could drive Smart City development is an essential step in laying solid technological and man-power foundations for smart city development. To this end, a population that is adaptable to smart transformation are hence vital to the success of smart city development. It would therefore be favourable for the government to provide further ICT education and training. In Singapore, SkillsFuture, a programme that offers training, education and support for all citizens including students, fresh employees, experienced employers and business operators, is aimed at enhancing the competitiveness and adaptability of all citizens. Specifically catering towards the older generations are Silver Infocomm Initiatives. In the hopes of fostering digital inclusion, these initiatives have been launched to equip elderlies with the necessary digital skills needed to utilized ICT-related services that can improve the quality of life of all members of society.

7.4.10 Government also plays a key role in fostering innovation. Their provision of adequate financial support to ICT startups and ICT-related R&D could contribute to the wider smart city development by building the capacity for ICT usage and promoting ICT inclusiveness. For instance, TX Entrepreneur Partners (TEP) in Tokyo provides monetary, hands-on, community and mentoring support for entrepreneurs and business ventures to develop advanced technologies. This is a good example in regards to the working mechanism of providing financial support to ICT startups and ICT-related R&D.

7.4.11 Robust ICT infrastructure, accessible and decipherable data, skilled talent base and financial support to ICT startups and ICT-related R&D all contribute to the bedrock of smart city development. Hence, Hong Kong should strive to lay a solid foundation for ICT development so as to build capacity for wider smart city development.

Cross-Sectoral Cooperations

7.4.12 Cross-sectoral cooperation is defined as the cooperation among different stakeholders involved in smart city development, namely, government, private sector and academia. From the international case studies, cross- sectoral cooperation is prominent in area of smart infrastructure investments, policy formulation and R&D. In Hong Kong, despite the recent move to establish a multi-stakeholder cooperation between government, industry, academia and research institute (官產學研) plus the emergence of Smart City consortium; general public and the private sectors’ influences on smart city planning remains limited.

7.4.13 Cross-sectoral cooperation is well demonstrated through joint investment of smart infrastructure. In Singapore, the Urban Redevelopment Authority (URA) and Esri, an international

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supplier of GIS software, have been cooperatively developing a 3D planning tool, the Esri CityEngine. In Tokyo, the TX Entrepreneur Belt, a technological cluster of Japanese research institutes, national universities and incubation facilities are jointly invested by both the private and public sector.

7.4.14 Apart from joint investment of smart infrastructure, close multi-stakeholders cooperation can also be utilized in the smart city strategy formulation and implementation process. For instance, the city of Shenzhen had signed a contract with Tencent Inc. to develop smart city initiatives. Moreover, in Tokyo, the Kashiwa-no-ha Campus City gathers the latest research findings and knowledge from the University of Tokyo, Chiba University and other research institutes to provide valuable insights

to Smart City Projects (i.e. an organization formed by consortiums of private corporations). In turn, Smart City Projects then proposed smart working solutions to the Japanese national government, local government, real estate developers, relevant companies and the public for further comments and implementations, hence creating a “CoCreate Eco-System” (i.e. a joint approach to sustainability) in which all stakeholders participate in the Smart Working related strategies formulations. The Cross-sectoral cooperation process is illustrated in Figure 6 (Smart City Project, n.d.). The “CoCreate Eco-System” does not only enhance community spirit, the proposed initiatives could also directly address to the needs of the stakeholders. Hence, the Kashiwa-no-ha smart city initiatives clearly illustrate how multi-stakeholders’ cooperation can be comprehensively adopted in smart city policy formulation and implementation.

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Figure 7 Cross-sectoral Cooperation Process

7.4.15 Furthermore, cross-sectoral cooperation can also be demonstrated through R&D effort. In Singapore, multi-stakeholder collaboration in R&D has been established. For instance, the Land Transport Authority and Steria Asia Ate Ltd have signed a contract of collaboration to support Singapore Urban Transport Solution (STARS) initiative, which aims to promote Singapore as a research centre for urban transport solutions. Moreover, in Barcelona, R&D platforms, i.e. Smart City Campus, Spark Lab and Industry Ring, have been constructed to blend industry, academia and the research sector efforts on the development of smart city technologies.

Relevant Regulatory Adjustment

7.4.16 To strike a balance between innovation and economic stability, laws and regulations should be constantly adjusted in order to facilitate the development of smart city. Unfortunately, the laws and regulations in Hong Kong are rigid, and fails to keep updated with the latest technological innovations. For instance, the operation of Uber, an online taxi-hailing service, is illegal in Hong Kong. Uber drivers have been accused of driving without an operation permit or third-party insurance. In this case, the absence of relevant regulatory adjustment would discourages technological innovations such as online car sharing services. Meanwhile, according to one interviewee of a Fintech startup, the lack of relevant regulatory adjustment hindered the development of innovative solutions such as crowdfunding. Despite the rigid legal framework, Hong Kong still lags behind in ensuring cyber security and is ill-prepared to address a cyber crisis. For instance, online security in Hong Kong merely consists of companies and organisations in Hong Kong installing anti-malware software, there is no pro-active tracking of hackers’ activities. Furthermore, the issue of personal security has also aroused public attention in recent years. Some companies and organisations have sold their customers and clients’ information to third party buyers for commercial benefits. These examples strengthen the case, that laws and regulations in Hong Kong should be reviewed and adjusted to provide favourable environment for technological innovations and enhance the protection of personal security.

7.4.17 Smart city development will inevitably bring proliferation of ICT technologies and new technological innovations. New innovations can disrupt existing industrial practices. Hence, laws and regulations should be constantly updated to adapt to the latest technological context. For instance, referring to the case study of Barcelona, Spain has established three regulations in response to smart city development (Spanish Association of Standardisation and Certification (AENOR), 2015). In addition, regulations should be adjusted to provide innovative solutions to Fintech startups. Singapore has relaxed the regulations and adopted limited intervention on the Fintech industry (StartUpBeat, 2016).

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7.4.18 Moreover, the issue of cyber security should also be addressed. Admittedly, technological innovations brings merits to our daily lives, however, it also inevitably make the city more vulnerable to cyber-attack. Hence, laws and regulations should be reviewed in order to strengthen our protection from cyber-attacks. For instance, the international case study of the Seoul Metropolitan Area illustrates the establishment of the Cyber Threats Joint Response Team, whose purpose is to tackle potential cyber-attacks. The team consists of three sub-groups, with the Ministry of National Defence overseeing the military and defence, the Central Administrative Agencies overseeing the public sector and the Ministry of Science, ICT and Future Planning overseeing the private sector. Hence, providing comprehensive protection against potential cyber- attacks (ITU, 2015).

7.4.19 Furthermore, despite the fact that big data bring advantages to society, it also exposes opportunity for leakage of personal data and create threats on privacy. Hence, regulations should also be constantly adjust to address to the issue of personal security amidst the context of smart city development. With reference to Barcelona, Spain has established several initiatives on privacy protection. For instance, regulations has been set to monitor the development and adoption of Program Specific Information (ePSIplatform, 2015).

7.4.20 The lessons learnt from international case studies have demonstrated that the provision of a structured and comprehensive strategy and a solid foundation for the development of ICT industry, establishing cross- sectoral cooperation and making relevant regulatory adjustment are the crucial steps in achieving smart city development. Hence, we have incorporated these elements in our formulation of Hong Kong’s smart city strategy.

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8. Recommendation

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8.1 Vision & Objectives

Vision

8.1.1 After conducting a thorough research on the concept of Smart City, and analysed the development locally and internationally, the Team has come up with a vision for the development of Hong Kong into a smart city.

“Towards A Smarter Hong Kong – Liveable Intelligent Metropolis”

8.1.2 In the development of smart city, it is important to note that under different contexts, different cities will develop their own visions, objectives and strategies. The reason being smart city is not a goal, but the means in which we can achieve a better living environment for city dwellers. As a result, the application of different smart technologies, or innovative ideas is considered as tools to alleviate or even solve some of the existing urban problems. Therefore, the vision and the objectives, and later the strategies developed by the Team follow this goal.

8.1.3 The vision delivers a message that through using various ICT technology, we will be able to improve the standard of living of Hong Kong. The word “liveable” represents the idea that the city shall become a place that is more comfortable for all to live in, while the word “intelligent” implies not only the use of new technologies and innovations but also the involvement of smarter people. In fact, under Hong Kong’s context, these two words provide some insights into addressing some of the urban issues that Hong Kong is currently facing. These problems includes the aging population, heavier load on transport system and also healthcare services, limited capacity on waste management, stagnant economic growth, skewed economic structure, bureaucracy, to name but a few.

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Objectives

8.1.4 With a hope to improve the current urban issues and to achieve a liveable intelligent metropolis, the Team has come up with four objectives.

 To create a socially and environmentally sustainable community for citizens  To further develop the ICT industry in order to strengthen the economic competitiveness  To encourage a more efficient and effective government  To promote a stronger linkage between Hong Kong and the Pearl River Delta

8.1.5 These objectives covers the social, environmental and economic sustainability in our society and addresses also the improvement in the public administration as well as some stronger linkage with the neighbouring cities for long term city development.

8.2 Strategy

8.2.1 Based on the four objectives, the Team has come up with the strategy –

8.2.2 RISE is an acronym where each individual letter represents a strategy, these are, in respective order: Raise living quality, Improve economic foundations, Support a proactive public administration and Encourage regional interaction. Through the implementation of measures and solutions provided under the Strategy, the Team has an aspiration that Hong Kong will get up and become a liveable intelligent metropolis. In the following paragraphs, RISE will be explain in detail.

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8.2.3 Raise living quality means to provide better living quality by raising the convenience and efficiency in various areas including transportation, housing, healthcare, and utilities to be carried out in a sustainable manner.

8.2.4 In order to raise living quality, the city shall create a data collecting intelligent network with proper analysis and delivery of data. The network shall also be coupled with user feedbacks in order to make timely adjustment and responses. With a comprehensive data collection system, it allows users to better plan and manage resources.

8.2.5 By attempting to improve the healthcare system, transportation infrastructure and building a green community, the city will become more resilient, responsive and adaptive in face of existing and coming challenges such as aging population, traffic congestions and global warming.

8.2.6 The economy of a smart city revolves around an ICT based foundation. Through supporting the development of ICT, it shall act as the driver of innovation and growth, and make businesses regardless of their fields, to stay competitive.

8.2.7 The development of the ICT industry is essential in a smart city as it provides the technological foundation for other industries to develop upon. In order to unleash the full potential of the industry, the infrastructure has to be improved so that it raises the capacity for the flourishing and growth of more players within the industry. Furthermore, the city shall attract and cultivate more ICT talents in order keep the development sustainable. With a stronger base, other industries can further explore the possibility in using ICT to upgrade their systems in the companies in order to stay competitive.

8.2.8 The building up of a solid foundation is key at the times of economic turmoil. As global economy gradually become more volatile, Hong Kong will be adversely affected. By developing the ICT industry, it will give rise to a wider range of business opportunities and diversify the economic structure, maintaining or even raising the competitiveness of the city.

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8.2.9 Government is the leader in the formulation and delivery of vision, strategies and plans. It also plays the role of a mediator to coordinate and collaborate efforts from various stakeholders and with a specific role to address the general public.

8.2.10 Experiences from around the world have demonstrated the importance of the government taking the lead in the development of Smart City. With a strong leadership in building the vision, objectives and corresponding strategies, and close monitoring of the implementation progress, the government shall coordinate all efforts from various departments and promote the cooperation between different stakeholders, including involving the general public in particular. The government shall take a more active role to review the legal framework to keep the regulation updated with some of the latest innovations, without hampering the interest and limiting the growth potential for the emerging market.

8.2.11 Embark on the existing and potential interaction between Hong Kong and the Pearl River Delta to create a synergy and mutually beneficial environment through the exchange of human resources, knowledge, and ideas.

8.2.12 The smart city development potential does not limited within the city. A strong partnership with other cities will exchange the interchange of ideas and talents for the continuous growth. Due to the time constraint and resource limitation of the Study, the Team only explored the growing linkage with the Pearl River Delta Region. Yet, the Team believes that the partnership and knowledge exchanges shall expand towards cities around the world with a higher priority on those which have successfully undergone the process of transformation. Singapore, Seoul, Barcelona are some of the examples.

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8.3 Raise Living Quality

8.3.1 Smart city development should strive to raise the overall living quality of all citizens in society. To enhance efficiency and sustainability in the area of healthcare, transport and building facilities, the team has proposed the wide adoption of intelligent network to collect and analyse data to facilitate the drafting of effective policy and improvement measures. The details of the proposed measures are illustrated below.

Establishing Smart Healthcare

Current Situation

8.3.2 Hong Kong’s healthcare system is one of the best among world (Bloomsberg, 2015; The World Bank, 2016), the outstanding performance of the local medical schools and the equitable health care services have laid a strong foundation for a healthy population. Despite its world-class status, the healthcare system in Hong Kong still faces with great challenges. Three major challenges have been identified:

8.3.3 Ageing Society – With an increasing ageing population, the demand of healthcare services in Hong Kong is thus increased. The hospitalisation rate of elderly (aged 65 or above) is about four times higher than those who aged below. Hence, it is foreseeable that demand for healthcare service will drastically increase with the estimated elderly population increases from 15% in 2014 to 30 % in 2034 (Census and Statistics Department, 2016).

8.3.4 Shortage in Manpower – The supply of human resources in the public medical sector is far from enough. The public hospitals are consistently in short of around 250 doctors, the patient-doctor ratio is consistently high (Tsang & Wong, 2015), which resulted in excessive waiting experienced by patients. With an imminent retirement tide of the baby boomers, enormous pressures will be placed on the public healthcare system. It is extremely difficult to maintain the current quality of services with limited workforce.

8.3.5 Hospital Facilities Deficiency – Both public and private hospital are facing shortfall of beds. The servicing capacity of beds in several public hospitals are stretched to the limit. Meanwhile, lack of investment on public healthcare services has led to hardware deficiencies, in fact some medical equipment have already been used for more than 10 years and succumbing to technological obsolescence.

Proposals

Electronic Health Record (eHR) Analytic and Sharing System

8.3.6 The eHR analytic and sharing system is a platform which allows the sharing of health record between different healthcare services providers, so allowing the comprehensive health record of registered patients to be available to various healthcare services providers. On top of that, the

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information obtained shall be utilised to facilitate preventive healthcare services and resources management.

8.3.7 In fact, a similar system, eHR sharing system, has already been introduced in Hong Kong. The system allows the sharing of eHR among the selected healthcare providers in both public and private sectors (ehealth, 2016), the healthcare providers can retrieve the eHR shared by other providers, and hence eliminate those redundant testing and procedures.

Figure 8 Electronic Health Record Sharing System of Hong Kong Source: ehealth, 2016

8.3.8 The eHR analytic and sharing system could be built by basing on the existing eHR sharing system. While the existing eHR sharing system has provided a platform for the sharing of eHR, it can go further to analyse the patient’s’ condition and medical record by using anonymous record screening techniques, which help to spot out the most suitable treatment for the patients. Hence, the shared records help the healthcare providers to make better treatment decisions. Considering the scarcity in healthcare resources, effective and efficient use of resources is crucial in sustaining the healthcare system. By determining the best treatment plans for the patients, wastage can be reduced and hence ensuring the quality of healthcare services.

8.3.9 Moreover, since a comprehensive health record can be generated through eHR analytic and sharing system, preventive healthcare can be development. In this respect, some potential health problems or illnesses can be identified at an early stage, and thus serves as preventive. Through suitable preventive healthcare, chances in getting diseases and illness shall be reduced. Due to the degradation of body functions, chronic diseases are commonly found in elderlies. With eHR analytic and sharing system, abnormalities could possibly identified and make timely treatment. Through improving the primary healthcare services, the demand on hospital services can be reduced by screening out patients.

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8.3.10 Moreover, the vast data stored in the eHR analytic and sharing system shall assist the planning of healthcare services. By analysing patients’ data, it can easily identify and determine the needed healthcare services base on the characteristics and patterns of spatial distribution of patients. Since the density of patients and their needs are easier to identify, the limited resources like hospital facilities and doctors can be distributed in a most efficient way.

8.3.11 Aside from efficient resources allocation, eHR analytic and sharing system has also provide ground for research and development in healthcare aspects. Research and development are facilitated and the efficiency is enhanced by more available data. In long term, a more responsive healthcare system is developed and benefit all in the society.

Distance Healthcare Services

8.3.12 Healthcare services are not limited in hospitals or healthcare centres only with the advancement in ICT and application of IoT. A number of city and country have Figure 9 E-Med of United Kingdom Source: E-Med, 2016 already adopted distance healthcare services into the system through online medical consultation, like the Tele-Health in Singapore or the E-Med in the United Kingdom.

8.3.13 The distance medical services can screen out some patients in going to the hospital. One of the challenges of Hong Kong’s medical system is the abuse of hospital services like accident & emergency (A&E) (Ge & Tsang, 2016), through introduction of an online medical consultation, it shall possibly reduce hospital traffic, which allows valuable hospital spaces to be freed up for the patients in real needs.

8.3.14 The distance medical services shall also provide convenient healthcare services, allowing for greater flexibility as medical consultation are no longer constrained to hospital and clinics. While patients with chronic diseases have to consult doctors regularly, with online consultation services, this regular check can be done online in a more efficient manner.

8.3.15 The record of online healthcare services shall be incorporated into the eHR analytic and sharing system, so the healthcare provider can trace back the treatment record of the patient. And it also act as part of the preventive services. The system shall identify the potential diseases through regular body check, as distance healthcare services has made regular check for most people. In long term, this shall reduce the overloaded hospital services.

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Implications

8.3.16 As mentioned, by introducing eHR analytic and sharing system, it shall facilitate the resources allocation, more resources shall be devoted into clusters have higher demand. In short term, the pressure of healthcare provision in some seriously overloaded clusters shall be alleviated, since eHR are shared among different healthcare providers, patients can be referred to other providers for better and timely services. In long term, instead of allocating the hospital resources according to population, the hospital resources shall allocated according to the patients’ needs, especially specialist service.

8.3.17 Since the proposed system is based on the existing eHR sharing system, the cost of implementation shall be low. Although establish a territory-wide eHR sharing system which included all healthcare provider can be costly, it improves the quality of preventive healthcare services. The cost efficiency of preventive healthcare services is much higher than treatment services (World Research Foundation, n.d.). Since the majority of healthcare services are provided by public sectors in subsidized by the Government (Food and Health Bureau, 2008), and healthcare is always one of the expenses of the Government. By enhancing the primary and preventive healthcare, the expenses of Government on healthcare services shall be more effective.

8.3.18 Cross-sectoral cooperation shall also be further promoted through eHR analytic sharing system. As the eHR are shared among the healthcare providers, private-public partnership (PPP) is encouraged to provide greater higher quality of treatment. The eHR analytic and sharing system has provided an opportunity for the researchers and clinician to develop new ways to improve patient care (IBM, n.d.).

8.3.19 Yet, since eHR contains a lot of personal information, privacy issue is one of the major concerns of the general public. Currently, eHR sharing system will seek for patient permission to access the eHR. However, if the sharing system has extend to other purposes, it is not possible to seek for permission whenever using the information. So a mature regulatory mechanism is essential to protecting the right and privacy of patients.

8.3.20 Through distance medical services the spatial demand on healthcare providers, like hospital and clinic can be reduced, deficiency of hospital facilities shall be reduced a bit through increasing the capacity of healthcare services in a different forms.

8.3.21 The working style and environment of doctors may change in distance healthcare services provision. Doctors may have to conduct online medical consultation, and their working environment may not constrained by hospital and clinic as well, consultation services can be provided in any place where network is available.

8.3.22 Yet, there are still a number of uncertainty in distance medical services. Patients and doctors have no direct interaction, the decision made could be affected. Some concern the credibility of online

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medical services providers is not as promising as those traditional ones. The online healthcare services shall only use for minor illness or some regular body check.

Further Develop the Intelligent Transport Network

Current Situation

8.3.23 Hong Kong owns one of the best transportation network in the world. With the highly efficient public transport system that is comprised of mass railway, taxis, buses, minibuses and ferries, the transportation performance of the city remains at an extremely high level. The high-density environment and development pattern, with more than 7 million people living on a quarter of a 1,100 km2 of developed land mass, has supplemented the usage of public transport. According to the figures, around 12.5 million passenger journeys are generated everyday via the public transport system, and this also means 9 out of 10 of the passenger journeys are made via this system (Transport Department, 2010). Among the public transport usage, railway acts as the backbone to provide reliable and environmentally friendly journeys.

8.3.24 Despite the highly efficient public transport network, the city does face a growing and intensifying problem of traffic congestion. From 2010 to 2015, the amount of motor vehicles licensed has risen from 608,000 to 728,000 – nearly a 20% increase in the amount of road vehicles, which is mostly due to the increased amounts of private cars and motorcycles (Census and Statistic Department, 2016). Further complicating the problem is the increase in the amount of public roads does not match with the growth rate of cars. In fact, from 2010 to 2015, the total length of public roads only grew from 2,076 km to 2,101 km, meaning a 1% increase in the public roads.

Proposals

8.3.25 Transportation is an integral part of our daily activities. Having a strong system will without doubt facilitate our daily activities. Through the use of smart technologies and innovations, the city will be enhance the existing robust public transportation network and may also solve some existing traffic problems. A smarter mobility network will improve not only the traveling experience, but also the environment in the long run as traveling will become more sustainable and efficient. In the future, travellers will be better informed and be able to make the better decisions before each journey. Travelers will also experience less frustration due to less traffic congestions. Through the use of sensors, it shall also ensure a safer environment for travellers and pedestrians. In the follow paragraphs, the Team will discuss some possible smart measures in response to the current transportation problems in Hong Kong.

8.3.26 In order to pursue a more efficient network and the above-mentioned benefits, building a stronger Intelligent Transport System (ITS) is of paramount importance. ITS includes: the application of technology to better manage traffic, provide more information and warnings to vehicles, and also includes the use of information and communication technology (ICT) for railway and other forms of transports (ETSI, n.d.). In fact, currently in the Transport Department (TD), there are some

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attempts in the development of ITS. Besides some older measures like Automatic Toll, Octopus cards, or the traffic control and surveillance system, TD is currently developing a Traffic and Incident Management System (TIMS) aiming to better manage traffic and provide timely report on transport incidents through the use of existing traffic control and surveillance systems (Transport Department (TD), 2015; 2016).

Upgrade existing ITS

8.3.27 However, an ITS requires the collection and analysis of big data. At the backend, sensor data collection, and further expansion of the traffic surveillance system are important to collect information of citizens’ traveling behaviours. Hong Kong may also consider adopting the Singapore approach by applying the Global Navigation Satellite System (GNSS) for more accurate and higher precision tracking of road traffics (Land Transport Authority and Intelligent Transport Society Singapore, 2014). There is also a rising trend in the use of anonymous information from mobile phone data as these data contains the ‘origin, destination, route and mode of transport, and journey time’ (ARUP, n.d.). The collection of data is vital because after analysing the data, departments will be able to address the traffic issues more effectively and will also be able to make predictions on road traffic. Besides, a lot of potential measures to improve the traffic condition, such as the electronic road pricing system, or giving higher priority to public transport on roads by manipulating the traffic light system, rely greatly on the analysis of the data. Therefore, there is an urgent need to collect and analysis data in order to make better plans or simulation models for public transport and road systems.

One stop platform/Application

8.3.28 After the collection of data, another major step towards smarter mobility is the delivery of these real-time data. In Hong Kong, buses operate in a franchise system which several bus operators take up the whole market, while the railway system is solely operated by MTR. Opening up of real-time data by these companies will generate better traveling experience to passengers. Recently, Hong Kong Tramways has stepped up their efforts by working with a local transport mobile application company to share real-time operational data with the public for free (Leng, 2016). The news report also mentioned that Hong Kong Tramways will make a re-schedule of their service based on the data collected previously. In fact, the mobile application manager has been working on an application to integrate all modes of transports into one platform, but has also expressed the reluctance of many service operators to share their data which was of commercial value according to them. Even in the mobile application of some of these operators, the real-time information is also missing. Only pre-set

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schedules are available. Rather than relying on private initiatives to ask operators to open up real- time data, the government should make necessary steps by negotiating with these operators. Ideally, the government will act as a mediator between various operators and encourage collaboration between these operators, in order to create a one-stop platform or application which integrates all relevant real-time data such as road condition, public transport information and usage. Instead of each operator running their own applications, one single application with a user- friendly interface can speed up the searching process and give citizens the chance to make the best decision. Such improvement will further encourage an optimised use of public transportation and potentially be able to slow down the growth on private cars.

Implications

8.3.29 With the further development on the ITS, the government will have to play a bigger role in leading the improvements. Improvements and expansion on the sensors and surveillance cameras or even the consideration on further using satellite technologies will certainly involve injecting more money, thus leading to greater tax burdens in return. However, given the existing infrastructure, the government should consider upgrading the current systems first before rolling out new devices to minimise the monetary impact. Other than financial considerations, the government will also need to put extra efforts in coordinating a platform for transport service operators to meet and discuss on the opening up of real-time data. Knowing that some operators has already expressed their reluctance on data sharing, the negotiation process may be lengthy and may require the government to consider giving more incentives to the operators.

8.3.30 As for the transport service operators, opening up of data and further collaboration between them may affect their business interest. For instance, different bus operators see each other as competitors, and thus the data become valuable asset to them. In light of that, new business partnership may arise among these operators to coordinate and provide a platform that is shared by all.

8.3.31 While the government and private sector may have more financial considerations, the general public will certainly cast doubt on the privacy issue. With a closer monitoring or even tracking of road traffic, drivers would have some hesitations on being identified and tracked down by the system. Therefore, it is important to ensure the public is aware of the changes in the monitoring system and be responsive in face of comments and complains.

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Build a Green Community

Current Situation

8.3.32 Promoting green living does not only enhance environmental sustainability, but also raises living quality by providing a more comfortable and resource-efficient living environment. In Hong Kong, domestic households are major sources of water and energy consumption. According to Research Office of Legislative Council Secretariat (2015) Hong Kong’s per capita water consumption was 209 litres per day in 2012, much higher than other global cities like and London and Singapore. Besides, the energy consumption of local households ranked second among all purposes in 2015, coming after commercial operations (Census and Statistical Department, 2016).

8.3.33 Building green community thus becomes necessary for Hong Kong to sustain its development. Green communities can be achieved through two major measures, green towns and smart buildings, with the adoption of advanced technologies.

8.3.34 “Smart building is one of the marks of a smart city” (CPU, 2015, p.28). As the form of buildings can create adverse environmental impacts, applications of technology can help the constructions and households to attain more efficient use of resources, including water and electricity consumption. Currently, Hong Kong has been working on developing smart buildings, some examples include the application of Building Information Modelling to construct more sustainable buildings and establishment of BEAM Plus as an environmental assessment scheme for building management. Some building have been constructed and operated smartly to save energy costs and reduce adverse environmental impacts. For example, Standard chartered Office successfully reduced the consumptions of electricity and water by installing sensor systems and intelligent LED lighting (figure 6). Nonetheless, Hong Kong could go further in encouraging a greener and more sustainable community by more adoption of smart technologies to raise the living quality of residents.

Figure 10 Standard Chartered Office in central with intelligent networks to save energy costs

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Figure 6 Standard Chartered Office in central with intelligent networks to save energy costs Source: SCMP, 2015

Proposals

Green Town

8.3.35 Unlike small-scale projects, developing a green town requires the implementations of more comprehensive and thorough planning and design strategies to achieve the aim of striking a balance between economic development and environmental preservation (Global Environment Centre Foundation, 2005). Rather than only applying piecemeal strategies to improve one or few fields of resource management, green town development can offer a holistic plan for the new community.

8.3.36 Taking the experience of Singapore as an example, smart technologies such as environmental modelling in the early stages could allow the planners and other professionals to create a better plan with optimal utilisation of natural resources and reductions of unnecessary resource uses. For instance, by placing outdoor amenities at appropriate locations, implementation of excessive lighting fixtures could be reduced. The modelling could further identify suitable locations for setting renewable energy generation devices (Channel Newsasia, 2015).

8.3.37 Green towns could further decrease the harmful impact on environment by leveraging the existing geographical advantage. Green towns should be planned and developed based on local context and people’s lifestyles, attaining a balance between satisfying the needs of people while protecting the environment. For example, the plan of Punggol in Singapore has included a traversing waterway to provide a better and greener living environment and more recreational activities to the residents (High Commission of the Republic of Singapore, 2012). In Japan, the transformation of industrial town into eco-friendly town focuses on improving the degrading environmental and waste reduction (Global Environment Centre Foundation, 2012). This does not only create a greener environment but reduces the use of resources, but also uplifts the living environment of residents. Apart from green technology, educations for the people, allowing them to more actively participate in go-green practices are also emphasised in green town planning (High Commission of the Republic of Singapore, 2012).

8.3.38 Learning from the experiences of Singapore and Japan, appropriate technological adoption is fundamental for creating a green town, the importance of other aspects including investigation of local contexts and public education must also be considered.

Smart Building

8.3.39 The Smart grid is an increasingly popular innovation aimed at reducing resource usage. Conventionally, water and energy supplies are merely one-way service with low flexibility to ever-

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changing demands and consumption patterns. By inserting sensors and monitors, the system can record the consumption and connect the power plants and other resource-providing facilities with the users. The utility provider can adjust the supply and thus the resource generation according to the analysed data, responding quickly to the demand (Office of Electricity Delivery and Energy Reliability, n.d.). The two-way communication and the control system can allow more effective and coordinative resource allocations, hence reducing harmful impacts caused by resource mismanagement.

8.3.40 More than benefiting the territorial resource management, Smart Grids also brings advantages to the building scale. Energy Management System (EMS) and smart metres are technological devices that connect with Smart Grids to collect data related to resource uses. The collected data does not only be transferred to the resource provider, but also the users. Educating the consumers is a significant function of Smart Grids, allowing them understand the impact of their own behaviour on the environment. Smart metres can analyse and evaluate the consumption patterns of its consumers, offer alternate choices and enables them to make better decisions on how and when to use resources automatically (Geisler, 2013). Hence, Smart grids will eventually improve the domestic performance on resource saving and will help to reduce the water and energy costs.

8.3.41 In Hong Kong, the concept of green towns could be implemented in new town planning. Although the plan of North East New Territories New Development Areas (NENT NDA) discussed green designs such as preservation of wind corridors, applications of energy-saving utilities and vertical greening (Planning Department, CEDD and ARUP, 2013), it could go deeper by considering other aspects like eco-friendly mobility and better waste management. New town planning is a desirable opportunity to test new concepts and green technologies.

8.3.42 The implementation of smart building is more flexible in that technologies and smart devices can be installed upon the existing buildings. Public housing which is managed by the government are good pilot sites to adopt the smart building technologies. New public housing estates in Kai Tak, including Kai Ching Estate and Tak Long Estate are particularly recommended since Kai Tak is one of the areas included in “Smart City in Kowloon East” (Development Bureau, 2012). Therefore, smart city measures could be more effectively conducted and evaluated.

Implications

8.3.43 Construction of green towns and smart buildings greatly benefits the general public who in turn, obtain a better living environment. Smarter buildings and community do not only create a greener and more sustainable environment, but also comprehensively addresses the needs of different stakeholders. ICT talents and companies could gain more business opportunities and new fields of technology explorations due to increased number of new innovation applications.

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Solid Waste Management

Current Situation

8.3.44 Large, high-density cities are prone to producing equally large amounts of waste and Hong Kong is no exception. Since 1986, economic and population growth has contributed to the increasing amount of waste produced in Hong Kong (Environmental Protection Department (EPD), 2016). To address this issue, the Environmental Protection Department (EPD) has established, “a Chemical Waste Treatment Centre, three strategic landfills and a network of refuse transfer stations” (EPD, 2016). Furthermore, the EPD has tried to improve the sustainability of older landfills have been phased out, treated and restored for the purpose of different recreational uses (EPD, 2016). The most pressing problem that Hong Kong now faces is unsustainable growth of waste going to the region’s three landfills. The landfills were designed to last until 2020, but have since been projected to be completely filled by 2015 (EPD. 2005).

Proposals

8.3.45 In addition to sustainable measures like reuse and recycling, waste management in smart cities should be addressed through a two-part waste reduction approach. First, waste must be minimized at the initial stage. This can be done through the implementation of IoT technology in places like grocery stores, which can help improve asset and material tracking, thereby allowing for dynamic stock adjustments (Linklabs, 2015). The benefits of this is that less waste is created initially, thereby reducing the amount of potential waste. By reducing the initial amount of waste, the burden to dispose Figure 11 Waste reduction waste later will be greatly reduced. Source: Ecube Labs, 2016

8.3.46 The second part of waste reduction consists of the disposal method of generated waste. While Hong Kong employs the use of landfills, technologies like incinerators should be incorporated to reduce the amount of waste that ends up in the landfills, therefore prolonging a landfill’s life. New technological innovations have allowed incinerators to be more environmentally friendly and efficient. Figure 12 Waste-to-energy plant (incinerator) Source: Keppel Corperation Limited, 2010 Furthermore, new methods of waste disposal

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like plasma gasification have begun to gain more traction. Plasma gasification helps not only to reduce the amount of waste, but also to produce recyclable commodities like slag as well as fuel in the form of synthetic gas (Waste Management World, 2009).

Figure 13 Plasma gasification (process) Source: GiRo Waste to Energy, n.d.

Implication

8.3.47 Whilst the first section of the waste reduction approach does not require any specific spatial needs, the second part has particular requirements. First and foremost a sizeable piece of land upon which an incineration/plasma gasification plant can be built on. This is particularly challenging in Hong Kong where land is scarce. Furthermore, this land should be at distance from residential or commercial zones/activities to minimize any potential hygienic issues. A potential site for waste reduction facilities can include the land adjacent or on an existing landfill. This helps to not only maximize the efficiency of disposing the waste, but landfill sites should have already been carefully considered in terms of impact to the surrounding sites.

8.3.48 The implications of reducing the amount of local solid waste are twofold. While government has to address the cost of implementation and process of finding an appropriate site, the long-term benefits (i.e. less overall waste, prolonged landfill lifespan, etc.) should be justification enough. Citizens will have to contribute by wasting less though reduction and recycling, but they also benefit from a healthier environment with less waste contamination.

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8.4 Improve Economic Foundation

8.4.1 The economy of a smart city involves an ICT based foundation. Through supporting the development of ICT, it shall act as the driver of innovation and growth to enhance city competitiveness. To improve the economic foundation, the team has proposed a series of measures including setting up data centre, providing flexible ways of work and nurturing ICT talents. Following are the details of the proposed measures:

Data Centres

8.4.2 The economy is changing, not only are new industries entering the market, but old sectors are also being revamped. This could be attributed to the pervasive rise of Information Communication Technology (ICT). Ubiquitous in nature, ICT has forced players in the economy to enter a digital space traditionally occupied by technological firms. Unbeknown to many, is that this shift to a digital space has significant physical implications. For example, cloud services which you can freely access on multiple devices, requires a server which hosts your particular cloud data. This server is most likely located in a larger data centre. The provision of data centres have become an important part in improving the economic foundations of a smart city. So how does Hong Kong fare in providing such crucial infrastructure?

Current Situation

8.4.3 Building on its strength as a major financial, trading and logistics hub, Hong Kong recognises that companies in the aforementioned economic sectors will look to set up data centre facilities. Hong Kong presents an ideal place to set up Data Centres because of the high degree of information freedom, whilst being so geospatially close to Mainland China. Additionally, Hong Kong has some of the most reliable electricity suppliers in the world, with 99.999% reliability and a fully-developed, advanced telecommunications infrastructure (OGCIO, 2016). In terms of the spatial implications of developing Data Centres, it appears that the local government is fully committed to the development of Data Centres. In addition to approving applications for the conversion of industrial buildings into Data Centres, the government has set aside space in the Tseung Kwan O Industrial Estate specifically for the development of data centres (Enterprise Innovation, 2016). The Tseung Kwan O Industrial Estate is home to over ten Data Centres run by large ICT companies like IBM and NTT Communications (Enterprise Innovation, 2015; Ko, 2012) (figure 11 & 12). The biggest concern for Hong Kong in developing more Data Centres is the spatial requirements. Simply put, there is a lack of land in Hong Kong, as such there is little space for dedicated data centre land. Instead, other alternatives are currently being explored, like industrial buildings. Currently there are fifteen, Tier 3 Data Centres housed in industrial buildings (OGCIO, n.d.).

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Figure 14 NTT Communications Hong Kong Financial Data Center, with Figure 15 Hong Kong Data Center, one of the Tier 3 data centres Tier 4 ready infrastructure Source: HKNET, n.d. Source: HKNET, n.d.

Proposals 8.4.4 While Hong Kong has made an impressive push in attracting the development of Data Centres, there is more that can be done. In particular the provision of Tier 4 Data Centres should provide an incentive for global companies. Redundancy is key in establishing a Tier 4 Data Centre. Lessons can be taken from Singapore’s Data Centre Park where 13 hectares of land has been set aside for the development of Data Centres. The park itself allows for dual power feeds, redundant sources of cooling and network path diversity (Jones, 2014). To minimize the loss of power during transmission, an on-site power plant is included in the plans while a high capacity fibre-optic network is also provided for the Data Centre Park (Infocomm Development Authority (IDA), 2013).

Implications

8.4.5 As mentioned above, the main obstacle Hong Kong faces in facilitating the development of Data Centres is finding a sizeable piece of land. For Hong Kong to create a Data Centre Park, a sizeable lot of land must first be found. Second the provisions of power and cooling are also of vital importance. While Hong Kong has two extremely reliable power companies supplying electricity to the entire city, an on-site dedicated power plant would definitely aid the development of Tier 4 Data Centres. Similarly, cooling has to be adequately provided, either in the form of freshwater or seawater. The difference in cooling source will also affect the location of the Data Centres as fresh water cooling systems require space for a water tower, while seawater cooling systems should ideally be located in proximity to the shore to minimize the amount of piping needed to channel the water. Additionally, fast broadband network connections must be provided for data centres to function at peak efficiency. While industrial buildings are also being considered as spaces to house new Data Centres, these buildings will have to be retrofitted with the proper infrastructure. Furthermore, improper physical layout and location of the industrial sites might hinder the development of higher tier Data Centres, so careful considerations must be taken when identifying suitable industrial buildings.

8.4.6 In terms of the implications on stakeholders, Data Centres hold enormous potential for the local Government. If properly implemented, Data Centres can attract multinational corporations (MNCs) to Hong Kong and encourage them to host their data locally. Furthermore, as more companies flock to Hong Kong, there is the possibility that Hong Kong will transform into an entrepôt of data, giving the city an economic edge in the age of ICT. As for private firms, the provision of more Data Centres

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can only be more beneficial. As mentioned before, more MNCs will set up their offices locally, thereby stimulating the local economy.

Flexible Working Environment

Current Situation

8.4.7 Given the significance of SMEs and startups in the development of smart city, it is important for Hong Kong to put efforts in helping the companies to set up and expand their businesses. Currently, there are various measures ranging from incubation programmes to technology and innovation funds. The government has released its 2016-2017 Budget this year with a series of support measures including tax cuts, business registration fee waiver from registrations and a Pilot Technology Voucher Program to support SMEs and startups (HKSAR, 2016). Notwithstanding, with a growing trend of co-working space which promotes high flexibility and work-life balance, it seems that the government should put wider focus in supporting and encouraging more employers to adopt flexible ways of working.

8.4.8 Co-working space serves as an alternative option for SMEs and startups, with more affordable rents when compared with the soaring rentals of traditional offices in Hong Kong. Effective communication, which is one of the key success factors at work, is promoted by the co-working space working style. By enjoying a more sociable way of working in a workspace shared by companies of different types and sizes, it could foster connections among tenants. The encouraged interactions could facilitate synergy and generate business opportunities with potential partners.

8.4.9 As reflected by our interviewee who was an Operation Manager of one of the co-working spaces in Hong Kong, 30 companies operating flexible and short-term co-working spaces could be currently found in Hong Kong. However, the market information is incomplete as there is a lack of platform providing the information of all available co-working spaces in Hong Kong. With an absence of such information platform, it might hinder interested startup clients from selecting the best location for their businesses.

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Figure 16 Strategy I: Coworking space Source: PaperClipHK, n.d.

Proposals

Establish an Information Centre

8.4.10 To facilitate the information flow regarding the co-working space market, the government is suggested to establish an information platform to ensure the potential space users could identify suitable locations for setting up their businesses. The providers of co-working space should be required to register to the responsible departments so that the government could ensure the credibility and provide updated information to the platform. Besides, the government should also record its existing initiatives such as funding schemes and technical support programmes on the information platform, so that the SMEs and startups could make use of the assistance offered by the government when necessary.

Smart Work Centre

8.4.11 In light of the need to render the community a more flexible and balanced working style, the government of Singapore, together with the help of Regus, has launched the Smart Work Centre (SWC) at three public libraries to facilitate people at work in differing ways. In these multi- functional SWCs, the tenants could enjoy a fully equipped working environment in which they could make good use of the individual working desks as well as meeting spaces when necessary. Electronic supports, such as high-speed Wi-Fi, video-conferencing services, and printing devices, are also available for free use (IDA, 2016).

Figure 17 The Information & Communications Technology Experience Centre, Singapore Source: SMARK, 2016

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8.4.12 Learning from Singapore, the Hong Kong government could strategically launch the SWCs at public libraries within major residential areas where residential homes are proximate, and thus the employees could greatly reduce commuting time to their offices. Easy-access to library resources is another benefit of SWCs establishment. By located within the public libraries, users are able to search the relevant books, audio visual materials and information resources which could assist their professional development when necessary. In addition, the firms could utilise the SWCs, which are flexible and allow short-term rental, as extra working space for short-term additional workforce during peak seasons of their businesses. To cater the emerging new ways of work, the government should launch the SWCs in major residential hubs in the coming five years as a trial, with a view to provide a new form of flexi-work option, as well as to help SMEs and startups solve rental and distance management issues.

Implications

8.4.13 Both co-working spaces and the SWCs could allow the workforce to be more flexible and to achieve better work-life balance. For the SWCs initiative, it gives alternatives to the employers offering their staffs to obtain more flexible work arrangements, by providing professional office facilities closer to homes. For instance, it could allow working mothers to better fulfill their family commitments (IDA, 2016). For co-working space, it compromises the boundaries between work and leisure. With a higher flexibility, users could control their working hours and set a more efficient work schedule, hence, to improve the work-life balance.

8.4.14 The SWCs could also help with talent attraction with a more engaged workforce. As companies could grow without geographical constraints by using the SWCs, the employers could reach out to untapped talent pool that was not available to them previously due to the long travelling time required between their homes and offices. The increased level of workforce participation thus benefits the economy of Hong Kong.

Cultivate ICT talents

Current Situation

8.4.15 Talent resourcing is a vital element in facilitating smart city development. While there is an existing base of ICT talent in Hong Kong, the shift to a more ICT oriented industry will require a larger ICT savvy workforce. The trend in Hong Kong is that people tend to work in the finance, business, law or service industries. Therefore there is a lack of people who work in the technology industry. Some surveys reveal that only 0.9% of employees in Hong Kong work for technology companies, and only 10.9% of graduates in the fields of science, technology, engineering and mathematics (STEM) work for ICT companies (Our Hong Kong Foundation, 2015).

8.4.16 Even though the Enriched IT Program in Secondary Schools is enacted by the Education Bureau to finance 100 schools for wireless network construction and electronic facilities (Education Bureau, 2013), Furthermore, Hong Kong has launched the School Web Care Campaign and Unified Internet

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Training Programme (UITP) to reduce the digital gap. However, it is reported that secondary school students who attend ICT courses have decreased by more than 50% since 2012; the other initiatives have also failed to meet the needs of the general public, especially those who are interested in ICT. (HKSMB, 2013; Internet Professional Association (iProA), 2011)

Proposals

Provide more training in ICT industry

8.4.17 An ICT talent base is essential in the development of smart cities. ICT will be ubiquitous and pervasive in a smart city, as such, the city needs people who can understand and fully utilize ICT. To foster this ICT talent base, Hong Kong can introduce a new initiative in which government, in partnership with industry leaders provide life-long learning opportunities as well as the training and resources needed to stay relevant in an ever changing economic landscape. In terms of the educational system, training can also start before the tertiary education to learn fundamental computer skills. The Education Bureau can provide consistent learning opportunity for elementary and secondary schools. In addition, the study content should be continuously reviewed to make sure that students can up-to-date with the latest technology.

Implications

8.4.18 For continuous learning, the government and private sector have to provide the resources need for the training program. This will help to cultivate an ICT talent base that will be well suited to address the increasing use of ICT in the economy. This talent base can then serve a mentorship role for the next generation, thereby encouraging a cycle of continuous learning.

8.4.19 Educational and research institutions will also play a key role in the provision of ICT talents. First, there will be a need for the aforementioned institutions to self-educate themselves in terms of newer technologies. This will involve new subsidies and funding to encourage and develop such an educational base. After they have acquired the skills and knowledge, they can then impart this unto their students or peers. Moreover, this early exposure to ICT will help students to quickly adapt and be more accepting of changes brought upon by said technology.

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8.5 Support a Proactive Public Administration

8.5.1 To ensure comprehensive implementation of smart city strategies, the setup of an advisory committee is proposed to coordinate the overall smart city development. Opinions from the major stakeholders will be collected and passed on to the Chief Executive in policy formulations. A clear vision is hence developed in developing Hong Kong as a smart city. Furthermore, an encouraging legal and regulatory environment is also crucial in encouraging innovation and enhancing creativity.

Establish a Smart City Committee

Current Situation

8.5.2 As mentioned in previous section, bureaucracy is one of the issues hindering smart city development in Hong Kong. ITB was established in 2015 for formulating policies related to innovation and technology, including Smart City development (Information Services Department, 2015). However, the ITB is one of the bureaus under the leadership of the Financial Secretary which posses limited influences on the agendas set in different bureaus. Under this circumstance, it is difficult for the ITB to map out a holistic and comprehensive plan.

8.5.3 Therefore, organising an advisory committee which is formed by the representatives from different departments is hereby proposed. A clear vision and direction is crucial for developing Smart City, this requires collaborative effort from various government department. In fact, EKEO is an attempt to establish joint effort from different government departments under the Development Bureau, yet, collaboration at a higher level is needed in order to carry out a territory wide development project.

Proposals

8.5.4 Smart City Committee should advise the Chief Executive directly on the formulation of the smart city vision and policy direction. From the experience of Singapore and Barcelona, a high level government body can effectively facilitate the formulation and implementation of Smart City development strategies. With strong leadership, policy implementation could be smoothened. The Committee set up at a higher rank could also serve the purpose of coordinating efforts from various departments and ensure targets could be met.

8.5.5 The Smart City Committee should be responsible for gathering and consolidating views from various stakeholders, reviewing the existing socio-economic, legal and regulatory environment of Hong Kong and identifying challenges and opportunities for smart city development. The Committee should then develop a strategy for smart city development, identify the policy targets,

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make recommendations to the Executive Council and providing policy support to policy bureaux and departments.

8.5.6 It is of paramount importance for the Committee to address the public at the early stage of strategy development and policy formulation process. Being an important player in the Smart City development process, the general public shall be educated, consulted and engaged. Society needs time to learn, understand and absorb about the concept and latest innovations. Through holding several rounds of public engagement exercises, be they formal or informal, across the territory, the Committee may understand the concerns and opinion of the public. These valuable voices will give insights to the Committee in order to steer development works.

8.5.7 The Committee is going to be staffed by representatives from relevant government departments, legal professions and stakeholders. Regular meetings would be held on a quarterly basis. A new Administrative Officer is to be recruited which is responsible for preparing policy documents, liaising different personnel and developing publicity programmes.

8.5.8 Since the vision and direction would initiate the development of smart city so setting up a Smart City Committee must be the first step. The Smart City Committee would stimulate and promote intra- and inter sectoral collaboration. Most importantly, setting up a clear vision and direction would provide a clear framework for Smart City development.

Improve Government Data Sharing Platforms

Current Situation

8.5.9 Data sharing by the government is an important component in transforming Hong Kong into a smart city. However, there is room for improvement regarding the current data sharing mechanisms and platforms. As an interviewed Legislative councillor mentioned, the coordination and sharing of data between various government departments is seldom. This lack of coordination does not only hinder the efficiency of public services, but also hampers the comprehensiveness of the provided data. An interviewed senior government town planner illustrated that data collection and analysis within government were by department-basis and mostly projected-based. The information then becomes hard to compile because of the fragmented and piecemeal nature, as it was seldom meant to be utilised by other departments. In the cases where the same kind of data is needed by different departments, the adoption of various types of software systems and formatting, makes the data by each department incompatible with each other.

8.5.10 Besides, the accessibility of the data remains relatively low despite their online availability. Satisfactory data research experience should fulfil the Three-click rule, meaning, “users should be able to find any information within a website using no more than three mouse clicks” (Thurow, 2014). The interface design of the online platforms should also be user-friendly in order to offer an efficient and simple experience. Currently, the design and user interface of most of the Hong Kong

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government’s online platforms and data archives are quite complex, requiring the general public to spend extended time in finding useful data.

Proposals

Inter-departmental Data System Coordination

8.5.11 Standardizing the data system and format among different departments should be the first step in establishing a unified data bank. A shared internal platform could be created to allow different departments the ability to upload their collected data. The formatting should also be standardised in order to avoid incompatibility. Time and monetary costs in the long run could be reduced due to the minimization of repetitive data collection. A comprehensive data bank could also assist the analytical tasks, thereby further encouraging deeper investigations by the departments, facilitating better policymaking.

Improve Interface of Government Websites

8.5.12 Numerous data sharing platforms are offered by the government such as data.gov.hk and Statutory Planning Portal (ozp.tpb.gov.hk). The data search engine on the websites could be reengineered to be more user-friendly Figure 18 Current layout of data.gov.hk by categorising search results. Their interfaces need to be redesign to be more intuitive and provide less cluttered, efficient access routes. Together, these changes can enhance the user experience, raising the interest of the public on exploring government data. Figure 19 Current layout of ozp.tpb.gov.hk Implications

8.5.13 Data sharing by government benefits various stakeholders, not only can government reduce efforts by creating a coordinated system among different departments, but more public participation could be fostered as data becomes more transparent and accessible.

Regulatory Adjustment

Current Situation

8.5.14 Legislation is vital in enabling and facilitating innovation. However, “Law often fails to catch up with the technology development” (Tse, 2015). The laws of Hong Kong, reflect this as they do not quickly

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respond towards innovation. From the case of Uber, It illustrates the grey area in existing regulations, this new business model possibly violates the Road Traffic Ordinance (section 52(3)) that “no person shall drive or use a private car without a valid hire car permit to carry passengers for hire or reward” (Transport Department, 2009). This reflects an unfavourable environment for innovation and startups in Hong Kong, indicating that Hong Kong needs to update laws immediately to provide more room for innovation.

Proposals

Regulatory Adjustment to Make Innovation Survive and Grow

8.5.15 New technologies used by Uber, such as a mobile app payment system based on GPS tracking are beneficial for the users in term of convenience and efficiency. The beneficial results are evidence that the local government should embrace not only new technologies, but also the new business models that accompany such innovation. Therefore there needs to be adjustments made by the local government to accommodate such new paradigms. To accommodate the aforementioned adjustments, the government has to first clarify the grey area in the existing legislative framework. This will help to provide new companies with the confidence and security to invest in the local economy.

Regulatory Adjustment to Fix the Loopholes

8.5.16 The existing regulatory development cannot keep pace with the speed of technological advancement. There are plenty of regulatory loopholes, resulting in the under-institutionalisation of internet governance. Laws governing data collection and retention, protection of civil liberty, and criminal dealings are considered as obsolete, vague or otherwise not easily implemented. For example, the existing provision on “access to computer with criminal or dishonest intent” under the Crimes Ordinance (Section 161) fails to explicate under what circumstances an act can constitute a breach of the law. Furthermore, as commented by a lawyer, the existing anti- cybercrime regime only “addressed the problems that existed in the early 1990s before the internet boom in the new millennium ... [and] there has been relatively little progress in legislative development in relation to cybercrimes since 1993” (Norris, 2010). The fact that less than 3 per cent of reported computer crimes are brought to the court can be attributed to the lack of legal clarity and relevance (Norris, 2010). It is thus suggested that the Government should revisit the existing legislative framework, in particular relation to illegal access to personal data, email scams, and scams on social networks. This can enhance the degree of institutionalisation of the internet governance in Hong Kong.

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8.5.17 Meanwhile, there are standards and guidelines introduced by the Privacy Commissioner for Personal Data for governing the use of personal data (see the Six Data Principal, Office of the Privacy Commissioner for Personal Data, 2010). One key loophole is a leak of customer information. Given that the law does not require for a compulsory reporting of irregularities in data management, any accidental leak of customer information may go unnoticed and be used for criminal purposes.

Implications

8.5.18 Even though innovations may improve the way people live, it will also undoubtedly challenge traditional business models as well as the related interest groups. For example, if Airbnb .were allowed to freely operate in Hong Kong, the local hotel industry will have to adapt to this new competition. This will change the status quo which will cause private companies to put pressure on the government due to their perceived violation of interests. Therefore the challenge is for government to strike a balance between embracing new innovative industries and the traditional industries.

8.5.19 For the idea of smart city to be accepted and supported by the public, the Hong Kong Government should set out a regulatory reform which requires the private sector to implement appropriate strategies for protecting personal information. While this would involve assigning administrative resources in day-to-day enforcement actions, the benefits arising from better practices can transform Hong Kong into a strategic business centre for data management.

Participatory Planning

Current Situation

8.5.20 Town planning nowadays are characterised by the need for a more integrated planning approach and more active public engagement and inclusion of stakeholders in the planning processes, starting from plan drafting to final decision making. To enable citizen co-creation, an open government with visually available and accessible information and participatory platforms is significant in order to promote civic engagement (Lee, Hancock & Hu, 2012). In Hong Kong, public engagement usually is conducted in forms of workshops and forums. Public opinions and proposals are also encouraged in the planning process.

8.5.21 Other than promoting 官產學研 gun1 caan2 hok6 jin4, the Government shall also foster the public engagement in Smart City development. Smart City aims to create a people-oriented city to cater the diverse needs of the citizens. Therefore, their voices should be carefully addressed. The well mixture of top-down and bottom-up planning and management approaches set good cornerstone for successful Smart City development (Neirotti, De Marco, Cagliano, Mangano & Scorrano, 2014).

8.5.22 Provision of geospatial data greatly affects the participation of stakeholders in the process of town planning. In Hong Kong, all the data are kept confidential for internal government purposes except GeoInfo Map and Statutory Planning Portal (Our Hong Kong Foundation, 2015). Therefore,

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provision of geospatial data and utilisation of geoplanning systems could be considered to support more vibrant public participation and more proactive planning process.

Proposals

Encourage Participatory Planning

8.5.23 The prerequisite for enhancing public participation is high data transparency that the public have to understand the context before providing suggestions. Learning the experience from Singapore, Kashiwanoha and Korea, the government could offer online platforms to deliver relevant information and data, simultaneously accepting opinions from the citizen through these online channels. Public opinion could be raised online through the Statutory Planning Portal or the website of Planning Department.

8.5.24 Some new planning software systems could greatly assist public participation in urban planning process. Taking Geoplanner as an example, the system utilises the data sharing platforms and Geographic-Information System (GIS) with simple operations. It could collect ideas from different stakeholder, facilitating collaboration on decision making on planning and design issues (Srivastava, 2014). The government could efficiently get other stakeholders involved in planning process with adoption of such advanced planning system.

8.5.25 According to one senior government town planner, the government planners and other officers may not be familiar with new data systems due to no relevant training. In order to construct a comprehensive spatial database and utilise updated digital planning systems, the government can assist to nurture experts of operation data systems by offering training and education.

Implications

8.5.26 The empowered citizens possess more opportunities to plan and design their communities. Though discussion and negotiation of the planning process might be longer due to more involved stakeholders and the government possibly needs to spare extra costs on coordination, the higher public participation could likely reduce social conflicts and enhance the social bonds, fostering the social sustainability.

Utilities

8.5.27 Utilities are an important component of any city, they provide the foundations on which the cities operate. While there are many different types of utilities, the focus of the following discussion will centre on three main utilities: solid waste management, electricity and water. These three utilities

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are vital components of all cities, they are necessary parts of daily living and must be addressed in a smart and sustainable manner. The management of these utilities in the local context of Hong Kong has seen some success in varying degrees. The most pressing problem that Hong Kong faces is management of solid waste. All of the region’s landfills are being quickly filled up, while the lack of available land further. On the other hand, electricity and water management has been well managed in Hong Kong, but there is still room for improvements. With new ICT technology enabling smarter, more efficient and sustainable methods of providing these utilities, the next section will look at smarter ways to enhance the management of solid waste, electricity, and water.

Electricity

Current Situation

8.5.28 The provision of electricity is crucial to all cities. In Hong Kong, electricity is provided by two suppliers, CLP Power Hong Kong Limited (CLP) and The Hong Kong Electric Company Limited (HK Electric) (ISD, 2015). CLP supplies power to Kowloon, the New Territories and most of the outlying islands, including Lantau and Cheung Chau. CLP generates electricity through three main power facilities that run primarily on natural gas or coal (CLP, 2016b). Similarly, HK Electric generates the majority of its energy capacity at the Lamma Power Station through coal and natural gas; also a small portion of power is generated by alternative sources such as wind and solar (HK Electric, 2016). The energy grids of both suppliers are also connected in the case where one experiences failure, the other can provide emergency support (CITE, Information services department). Together both companies have a reliability of 99.999% (CLP, 2016a; HK Electric, 2016). While there isn’t any pressing concerns in Hong Kong regarding the supply of electricity, the system used is one based on centralized power generation, which is relatively inefficient. In the tradition centralized system, a lot of the energy is lost through conversion, transmission and distribution to the end user.

Proposals

8.5.29 There are several measures that can be introduced to make a more efficient energy grid. Gaining a lot of traction lately is the concept of a smart grid. While smart grids consist of plenty of components that are usually context specific to each supplier, they all share a similar purpose of creating a more efficient power grid through the use of ICT. Essentially, smart grids utilize ICT technology to create two-way communication between the electric company and its clients, allowing suppliers to specifically cater to the needs of said clients (CLP, 2016c). Another interesting concept being introduced in the United Kingdom is the idea of decentralised energy. Decentralised energy is essentially power generated closer to where it will be used, rather than through the centralised grid (E.ON.UK, n.d.). Decentralization allows for a

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reduction in energy loss during transmission and encourages the utilization of sustainable, micro- renewable energy sources (i.e. solar, geothermal, biomass, etc).

Implications

8.5.30 In terms of the local context, the spatial implications for the implementation of a smart grid system depends largely on CLP and/or HK Electric. Perhaps the most challenging part of implementing a smart grid system is connecting all the various clients to the network. Both power suppliers would have to retrofit existing clients with smart meters that either connect wirelessly or through a hard line connection to the network. Decentralization on the other hand has greater spatial implications. If carried out to its full potential, large transmission towers would not need to be built. Instead, decentralized energy systems requires energy generation within a small spatial scale connected by local grids. Therefore in the local context, the urban environment would have to be fitted with energy-production sources like solar panels. The biggest implication of these strategies would affect the private suppliers.

8.5.31 If smart grids are the future, then those companies who provide such infrastructure would surely dominate the market. However if the decentralized energy system were to be utilized, a restructuring of the current electricity market would be in order. Most importantly, the citizens of the city would benefit from both types of approach as they aim to create a more sustainable form of energy supply.

Water Management

Current Situation

8.5.32 In terms of water supply, Hong Kong benefits greatly from its proximity to the Pearl River Delta. Approximately 70-80% of local potable water is imported from China’s Dongjiang River, while the remaining 20-30% is comprised of water captured by the local catchment system (Water Supplies Department (WSD), 2015). While there is an abundant supply of water from which Hong Kong can draw from, rapid industrial development, urbanisation and population growth in the Pearl River Delta could threaten access to this supply. Additionally, an aging network of local water mains have caused an unnecessary wastage of water during distribution. Leakage rates reach a high in 2000, at 25% while the figures last year came in at 15%. These rates are much higher than other smart cities like Singapore, 5% and Tokyo, 3.3%. (Civil Exchange, 2015)

Proposals

8.5.33 To address the issues above, Hong Kong can draw lessons from Singapore. Self-sufficiency is the goal in Singapore, through projects like NEWater and Desalination (Straits Times, 2014). Essentially, Sewage water undergoes a process of microfiltration, reverse osmosis and Ultraviolet disinfection until it becomes drinkable or suitable for use in

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industry. Desalination technology can help Hong Kong make use of its large coastline to process sea-water for consumption. These two sources are expected to meet up to 80% of Singapore’s water needs (Straits Times, 2014). If properly implemented locally, sewage water processing and desalination in addition to the supply of local catchment water should allow Hong Kong to be similarly self-sufficient in terms of water supply. To address the issues of aging water mains, Hong Kong can look to ICT technology in which sensors can be retrofitted on the aforementioned pipes. In Singapore, this is has been done through the Water Wireless Sentinel (WaterWiSe) project in which a sensor network infrastructure continuously and accurately monitors the water distribution system (National Research Foundation, 2014).

Implications

8.5.34 Perhaps the most spatially impactful among the three utilities, the application of the aforementioned improvement measures will require careful planning to find a suitable site and avoid potential adverse environmental impacts. While there are many water treatment plants in Hong Kong, these plants currently only treat freshwater from the Dongjiang River. New water treatment facilities will need to be built to treat wastewater. Considerations including finding available space,and access to existing water mains and sewage pipes must be addressed. Desalination plants also have specific requirements. Ideally they need to be located close to a source of seawater and like the sewage water treatment facilities, they must be connected to the network of water mains. Finally, to address the issue of aging water mains, retrofitting sensors onto existing water mains will definitely cause inconveniences due to their underground nature. It is suggested that instead of retrofitting sensors, new pipes with sensors already attached be installed instead, reducing the need to change or fix the pipes at a future date. Comprehensive planning for such facilities could effectively minimise environmental costs, such as water pollution, attaining sustainable provision of water.

8.5.35 The application of these initiatives will have significant implications for government. Once again the cost and process of funding new water treatment plants and finding possible sites will not be so easily addressed, especially when the current supply of water from the Dongjiang River is more than adequate. However, the question will be whether to implement such changes first or wait until the status quo changes. Furthermore, the government must also find the resources to fix and repair the aging water main network.

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8.6 Encourage Regional Interaction

8.6.1 In the age of globalisation, it is difficult for Hong Kong to rely only on its own efforts for city development. The idea of smart city-region has been receiving increasing attention from the policy community. Meanwhile, there is an increasing recognition that a more robust smart city development agenda can be achieved through engaging those existing agencies within the same geographical region. Hong Kong should explore opportunities for regional cooperation. With rapid development in the field of R&D, Guangzhou and Shenzhen have been transformed into first-tier cities and connected to the global network of technological innovation. Regarding the importance of technological innovation as an indispensable driver for economic upgrading, Hong Kong should seize the opportunities to develop regional strategies and policies in order to promote technological integration between Hong Kong and the Mainland. Strategies suggested could be categorised into two aspects, regional cooperation and institutional collaboration. It is thus proposed that a smart region agenda be developed in order to harness the opportunities arising from the ever-increasing regional integration of the Pearl River Delta. The Strategies we suggested could be categorised into two aspects, regional cooperation and institutional collaboration.

Regional Cooperation

8.6.2 In the aspect of regional cooperation, we propose some amendments and suggestions on several existing development projects to make them fit into the development of Smart City in Hong Kong.

Lok Ma Chau Loop – Establishing a Cross-Boundary R&D Centre

8.6.3 Adjacent to Shenzhen, the Lok Ma Chau Loop (LMC) has a geographical advantage to promote regional cooperation between Hong Kong and Shenzhen. In recent years, substantial growth has been witnessed in the technology sector of Shenzhen. Several high-tech conglomerates such as Tencent and DJI have established their regional production centres in the city. Establishing a new cross-boundary R&D centre could thus provide an opportunity for Hong Kong to become embedded in the regional and national network of high-tech industrial development. The centre could offer a convenient location for conferences and minimise the travel time of the Mainland researchers. The centre could also enhance the R&D’s capacity of Hong Kong.

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Figure 20 Aerial photo showing the Location of Lok Ma Chau Loop Source: Planning Department, 2014

Proposals

8.6.4 Although the Hong Kong Government has proposed initial direction of territorial planning in the LMC Loop, it lacks a clear direction on how the area will be used to foster smart city development. Hence, we propose to make some amendments in order to integrate the Smart City development through LMC Loop development. Based on our proposal, instead of putting high-tech R&D and creative economy together, the development in the LMC Loop should focus on solely on R&D. According to the consultancy report regarding the LMC loop development released by the Hong Kong Government, 8.2 hectares (9.4% of the whole LMC loop) would be zoned as “High-tech R&D/Creative Economy”. However, the “Creative Economy” land use should indeed be excluded from this categorisation. This is not to say that high-tech R&D and creative economies are not compatible; rather, it is about scientific-technological innovations is more locational-dependent than a creative economy. It is expected that such spatial arrangements can generate a new synergy between the high-tech R&D sector and the education sector, given that the “Education” land use is going to occupy up to 26% of the whole development area.

Implications

8.6.5 From the perspective of the general public and the environmentalists, the main challenge presented by the development of LMC Loop would be its impact on the natural environment. Since the LMC Loop is located at an ecologically sensitive region, there could be many restrictions faced. As noted in the Study Report on LMC Loop development, “any proposed development options for LMC Loop should take into account environmental issues including noise, air quality (including odour from SZ River), water quality, waste management, and remediation of land contamination” (Planing Department, 2015, p. 5). The need to minimise impacts on the surrounding ecological environment deserves strong attention. Given the foreseeable production of biochemical waste, a good waste collection system has to be in place. A closed circuit water system is to be adopted in order to prevent the leakage of biochemical wastes while green landscaping is to be adopted for maintaining the visual quality of the area.

8.6.6 From the perspective of research institutes and the private sector, although the research centre can generate job opportunities and provide space for intercity cooperation, the cost involved in starting up the development can be substantial. There is a need to devise a long-term strategic fund that can encourage a more viable financial model. (See paragraph 8.6.19)

Kwu Tung North Conference and Accommodation Centre

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Figure 21 Kwu Tung North Development Source: Development Bureau

8.6.7 Kwu Tung North is one of the new development areas under the North East New Territories New development project where we believe it can be place as a supportive role of LMC Loop for boosting the smart city development. We propose to build Kwu Tung North as a conference centre which will be used to support the cross-boundary R&D centre at LMC Loop. It is expected that a new division-of-labour between LMC Loop and Kwu Tung North will emerge. The provision of a new conference facility in Kwu Tung North can provide an essential alternative to the existing conference facilities in Hong Kong which are located far away from the border area. Also, given that the Hong Kong Exhibition and Convention Centre has reached its maximum capacity, there should be a new conference centre that can provide high-end service to local and Mainland ICT players. Meanwhile, supporting accommodation services in Kwu Tung North provides options for travellers to stay in close proximity to these new regional initiatives.

Proposals

8.6.8 According to the Outline Zoning Plan of Kwu Tung North (Planning Department, 2015) , a large portion of the development area in the north will be zoned for commercial and R&D purposes. It is thus apt to make use of this development area to establish said conference facility. In addition, hotels and serviced apartments will be built in this development area, to provide accommodation services for those attending conferences organised in the vicinity.

8.6.9 According to the existing OZP, a new town is to be established in Kwu Tung North. New serviced apartments and hotels are to be built within this new town and will be served by a variety of public necessities and commercial services. With the increasing land supply for high-tech R&D development, the existing “Commercial, Research and Development” land use in Kwu Tung North can be rezoned as “Commercial” land use, thereby providing lands for the construction of serviced apartment and accommodation.

Implications

8.6.10 With the growing number of service users in this new area, provision of basic daily services and community facilities could be a challenge. The Government has to ensure that adequate provisions of services to satisfy the diversity of needs in this new town.

Heung Yuen Wai Technopole

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Figure 22 Location of the Liantang Boarder Control Point Source: CEDD, 2015

8.6.11 The Liantang Boundary Control Point (LBCP) is expected to finish in 2018, forming another entry point between Hong Kong and Shenzhen. The LBCP therefore provides a gateway to the Mainland as it is strategically connected to the existing national highway network. We proposed the existing land in Heung Yuen Wai can be used for developing a high-tech technopole which can provide cross-boundary high-end specialised services. While there exist several industrial parks in Hong Kong (such as the Tseung Kwan O Industrial Park and the Tai Po Industrial Park), spaces for high- tech manufacturing remain lacking. A new technopole can fill this missing gap.

Proposals

8.6.12 To ensure that the technopole can articulate the scientific-technological role of Hong Kong and the PRD in the global supply chain, a new planning committee staffed by government officials and international experts shall be set up to develop a plan that ensures a balanced division-of-labour between the two sides. Meanwhile, this technopole is to be managed by an independent authority. The Board of this technopole is composed of government officials, representatives from ICT-related entrepreneurs, and research institutes. This mixed composition of board members can generate a more long-term vision for the whole technopole. The government can also provide land price discount for attracting the ICT-related business to locate their office and factory in this new technopole.

Implications

8.6.13 This project can provide land necessary for promoting the development of high-tech industries. But the development HYW can encounter challenges to those in the development LMC Loop area. On one hand, as HYW does not have any infrastructure, time and money are needed to construct roads, electricity networks, water pipes and other infrastructures. This is combined with the concern about the natural environment and the worry about over-accelerated integration between Hong Kong and the Mainland, the issues which can complicate the implementation of the project.

The Siu Ho Wan Smart Logistic Complex

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Figure 23 Siu Ho Wan Source: Planning Department

8.6.14 As early as in 2004, the Hong Kong Government proposed the establishment of a logistic centre at Siu Ho Wan in the Concept Plan for Lantau (Lantau Development Task Force, 2004, p. 10). However, till now, no concrete plans have been announced. With the introduction of the One Belt One Road initiative, it is anticipated that the logistical need for moving high-tech goods along the coastal area of the South China Sea will be expanded. Hong Kong can serve as a key role in meeting such increasing need through expanding its existing logistics facilitates. In this context, we suggest a new Siu Ho Wan Logistics Centre (SHWLC) is to be established plays a crucial role in fostering the movement of high-tech goods and promoting intercity trade within the PRD and between the PRD and overseas.

8.6.15 The SHWLC is to be established in Siu Ho Wan to facilitate the movement of goods between Shenzhen, Hong Kong and abroad. It is strategically located near the Hong Kong International Airport. The regional logistic centre will also be well connected to Tung Chung, an expanding new town in Hong Kong, and other parts of Hong Kong by a sophisticated transport network. It shall also be connected to the Tuen Mun-Chek Lap Kok Link. High-tech goods from the Mainland can make use of the Hong Kong-Shenzhen Western Corridor and the Tuen Mun-Chek Lap Kok Link and to be transhipped abroad by either the Hong Kong International Airport or the port facilities in Hong Kong abroad.

Proposals

8.6.16 The SHWLC is to be divided into two zones, warehouse zone, cargo handling zone and administration zone. A three-storey super warehouse will be constructed for storing goods. The SHWLC will serve a range of traditional logistical activities such as freight consolidation, order taking, order fulfilment, warehousing and cross docking. Value-added activities such as management reporting, insurance, and quality control shall be carried out in the administration centre. The SHWLC and the SuperTerminal 1 will be connected by a dedicated road. A training facility is to be built in order to nurture talents in the field of logistics. Different Smart City concepts and initiatives will be adopted in this SHWLC, including the use of latest cloud/big data applications in the management system. The operation shall be overseen by a centralised system in order to achieve seamless inbound and outbound of goods.

Implications

8.6.17 The main challenge faced by the SHWLC includes the environmental issue. The development of the SHWLC shall involve a large-scale reclamation and construction. An environmental impact assesment shall be conducted to ascertain the possible environmental impacts arising from reclamation and construction. Green energy practice shall be incorporated in the SHWLC. A comprehensive recycling system shall also be used to minimise the production of solid waste. Meanwhile, a closed circuit water system shall be installed in order to minimise any possible impact on the water nearby the region.

Institutional Linkage

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Research Funding from Mainland

8.6.18 Hong Kong lacks an institutional culture of supporting applied research (Our Hong Kong Foundation, 2015). For instance, only HKD 533 million dollars were allocated to applied research in 2014 (ibid, 2015). Hong Kong should take this opportunity to boost up its research capacity by lining up researchers and entrepreneurs from the Mainland who have an emerging record of product development technologies (accounting for over 80% of the overall expenditure on R&D spending) (Qiu, 2014).

Proposals

8.6.19 The Hong Kong Government needs to set up a regional mechanism for research funding. Researchers from Hong Kong and the Mainland could apply for make use of the mechanism to apply for funding for applied research. Meanwhile, priorities should be given to three categories of applications: (1) those applied research projects that are related to smart city development, (2) those research projects that can promote collaboration between Hong Kong and the Mainland researchers, and (3) those research projects that can promote the regional integration between Hong Kong and the Mainland. The sources of the research funding shall come from the Hong Kong Government and the private sector.

8.7 Roadmap

8.7.1 To pursue smart city development in an organised manner, incremental approach should be incorporated. After considering the time required for construction and development, a working schedule has been designed for the proposed measures. The roadmap below illustrates the priorities set for the implementation of various proposed measures. Setting up a Smart City Committee would be the first step among all suggested initiatives. In-depth feasibility studies are required to further investigate the applicability of the suggested strategies and measures under the context of Hong Kong.

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Figure 24 Roadmap

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9. Conclusion

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9.1 Conclusion

9.1.1 The underlying assumptions of this Report is that smart city can address a range of urban problems that Hong Kong is facing including aging population, unsatisfactory living condition, and unsustainable resources managements, skewed economic structure, some bureaucracy issues.

9.1.2 Whilst there are concerns about privacy invasion, oligopolistic market structure and cyber security in smart city development, the benefits that smart city development brings can be tremendous, including effective city management, enhancing city resilience and improvement of city competitiveness. The review of the local policy records suggests that while there is an expanding range of initiatives to promote an ICT-based economic order the smart city development is still at its early stage. In particular, there are a wide range of challenges that need to be addressed in the course of Hong Kong’s development into a smart city. International case studies on Singapore, Seoul, Tokyo, Barcelona and cities within the PRD have been conducted to learn from their valuable experiences and insights.

9.1.3 The Study suggests that smart city development needs to be strategic and visionary. For this reason, the Study develops a vision - “Towards a Smart Hong Kong - Livable Intelligent Metropolis” and comes up with a strategy, known as RISE to achieve our vision:

9.1.4 Raise living quality: a series of quality-of-life-enhancing measures such as promoting healthy aging, enhancing quality of hospital service, promoting smart transport system, introducing sustainable waste and energy management.

9.1.5 Improve economic foundation: a series of economic competitiveness-building to strengthen the ICT related industry, measures such as cultivating the development of ICT industries, establishing more data centres and co-working spaces, nurturing talents.

9.1.6 Support a proactive public administration: a series of governance-building measures to facilitate the smart city development, such as building an advisory committee, reforming the existing legal and regulatory measures

9.1.7 Encourage regional cooperation: a series of regional collaborative measures such as developing cross-boundary spatial projects and promoting cross-boundary trading in innovation economy.

9.1.8 All these strategies may carry implications for different stakeholders including the public, government and the private sector. Policymakers need to take into account of their views and balance their interests. In addition, these strategies have to be carried out on a gradual and continuous basis. Therefore a road map has been drawn to organize the pursuit of smart city development. Through the RISE strategy, it is hoped that that Hong Kong will rise to the status of smart city.

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Appendices

Appendix I Staffing

1. Staff Organisation

Consider the nature of this Study, SMARK has assembled professionals from various fields to form a multidisciplinary team to carry out the Study. Members of the team will cooperate and provide inputs from their fields to form a comprehensive study. The following figure shows team’s organisation structure.

2. Staff Roles

Mr. LIM, Mark | Project Manager, Senior Planner Mr. Lim has extensive strategic planning experience for more than 25 years. He is particularly specialised in planning policy revision, proposal formulation and implementation in field of transportation, land use and regional development. He is also a member of the Royal Town Planning Institute, the Hong Kong Institute of Planners and a registered professional planner.

Mr. TEO, Jerome | Deputy Project Manager, Transportation Engineer Mr. Teo is an experienced transportation engineer in areas of infrastructure design, strategic planning and network development. He took has participated t in a number of infrastructure development projects including Central-Wanchai Bypass and Hong Kong-Zhuhai-Macau Bridge. He is a member of the Chartered Institute of Logistics and Transport in Hong Kong, Institution of Highways & Transportation, and a registered professional engineer.

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Ms. KO, Charlotte | Secretary, Legal Consultant Ms. Ko is a practicing lawyer in Hong Kong and joined in several development and planning projects as legal consultant. She has extensive experience in policy formation and planning law consultation with a range of institutional and legal frameworks for over 15 years. She is a council member of The Law Society of Hong Kong.

Ms. KE, Kane | Treasurer, Surveyor Ms. Ke has engaged several mega projects, including Cyberport. She is particularly experienced in identifying new opportunities and interpreting data from various sources. She is a member of The Hong Kong Institute of Surveyors and a registered professional surveyor.

Dr. TANG, Simone | Regional Planning Scholar Dr. Tang is an assistant professor from The University of Hong Kong. She is specialised in urban planning and development in Hong Kong and China, and the applications of geographic information systems in urban and regional planning. As an expert in regional planning, Dr. Tang has a lot of experiences in cooperating with the Planning Department of Hong Kong and the China Academy of Urban Planning and Design. Dr. Tang is a member of the Royal Town Planning Institute, the Hong Kong Institute of Planners and a registered professional planner.

Dr. WONG, Mandy | Environmentalist Dr. Wong completed her PhD degree in Department of Civil and Environmental Engineering in Imperial College, specialised in air and water quality control, as well as environmental impact assessment for the development projects. She is a member of Hong Kong Institutes of Environmentalists and a registered environmentalist.

Mr. AU, Ryan | ICT consultant With the over 10-year experience as a senior software engineer in Google Company, Mr. Au is experienced in the development of ICT and its application. He is the Chairperson of Hong Kong Information and Technology Federation, member of the Hong Kong Institute of Engineer, the Hong Kong Computer Society and a registered professional engineer.

Ms. LAU, Lily | Architect, Landscape Architect Ms. Lau is graduated from the School of Architecture and Planning at the Massachusetts Institutes of Technology. She is particularly well experienced in areas of sustainable design and parametric design. She is a managing committee of BEAM society, a member of the Hong Kong Institute of Architects, the Hong Kong Institute of Landscape Architects, a registered architect, and a registered landscape architect.

Appendix II International Case Studies’ Policies

1. Seoul Metropolitan Area

Summary of Smart Seoul Initiatives:

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Smart Infrastructure  U-Seoul net  Seoul Data Mart  3D Spatial Information  Smart Devices for all and Smart Users Smart Governance  Smart Work Centre  Community Mapping  Public Application  Mobile Seoul  Content Management System (CMS)-based Homepage  Online Reservation System for Public Services Smart People  Smart Metering Project  U-Health Care  U-Seoul Safety Service  Near Field Communication (NFC)-based Mobile Payment System  Virtual Store  School Newsletter Application  U-Shelter Bus Stop

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2. Singapore

Summary of Smart Singapore Initiatives:

Smart Economy  Development of information economy  Promote the use of e-commerce  Enhance intellectual property rights  Establish Electronic Commerce Policy Committee (ECPC)  Establish a legal framework to create a reliable environment for business activities  Government act a partner in joint ventures Smart Citizens  Compulsory ICT education  Government investment to promote computer based learning  IT Coach Programme Smart Governance  The Singapore Government Online Portal  e-Gov2015 Smart Mobility  The use of Radio Frequency Identification (RFID) technology in road pricing Smart Environment  Promote the development and adoption of green energy source  Enhance water and energy efficiency  Waste recycling  Improve air quality  Adopt environmentally sustainable materials and innovation design and technologies in the development of housing and buildings Smart Living  Reserve land for parks and development of green leisure options  Sky rise Greenery on public housing and carparks  National Biodiversity Strategy and Action Plan

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3. Tokyo Metropolitan Area

Summary of the Kashiwa-no-ha (Tokyo) Smart City Initiatives

Environmental Initiatives (Air Environmental-Symbiotic City)  Area Energy Management System (AEMS)  Kashiwa-no-ha Smart Centre  Japan’s first smart grid that shares power source  Smart energy system during disaster  Home Energy Management System (HEMS)

 CO2 Reduction Roadmap  Sustainable Housing Design  Chiba University Plant Factory New Industry Initiatives (A City of New Industry Creation)  Kashiwa-no-ha Open Innovation Lab (KOIL)  TX Entrepreneur Partners (TEP)  University of Tokyo Kashiwa-no-ha Campus Station Satellite  Future Design Centre (FDC)  Tokatsu Tachno Plaza  Asian Entrepreneurship Award (AEA)  Todai Kashiwa Venture Plaza Health Initiatives (A City of Health and Longevity)  Town Health Station  Kashiwa-no-ha Smart Health Project  Happappa Exercise Time  Research and explore solutions to an aging society  Community Partnership Preventive Medicine Project  Centre for Preventive Medical Science at Chiba University  Chemiless Town Project

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Appendix III Individual Interview – Paperclip

Date: 2nd March 2016 Position/Institution: Operation Manager Field: Private (Co-working space operator)

Proposed Questions 1. What is the current trend in co-working space in Hong Kong? And as a provider, is the market very competitive? 2. Did you encountered any difficulties and obstacles when setting up the business? 3. Why this co-working place is designed in such way? What are the differences between normal workplace and this space? 4. Can you explain the operation mode/ work style of your company? 5. How is the proportion of the company’s client age groups? Who are major clients? Would you have different strategies to attract different-styled/aged clients? 6. How can you differentiate PaperClip from Science Park and Cyber Port? 7. What is your understanding of smart working? 8. To you, in what way can ICT enhance the flexibility and efficiency of working? 9. What are the difference between the needs of the start-ups and other companies? 10. Comment on Budget 2016? Do you think start-ups can benefit from the government policies? 11. Other than maybe offering funds, how can government help your company to perform better/smarter and encourage smart start-ups? 12. What’s your future vision? 13. What do you think about Hong Kong’s development of smart city? What makes Hong Kong attractive, unique and special?

Summary of Interview Hong Kong Government investHK

 The investHK has helped by putting lots of effort in promoting Hong Kong to start-ups overseas (Australia, India, UK, US, etc.) and give advices to expats to set up business in HK  Start-up Week

 Platform to promote and ask for sponsorship  Different kind of events, workshops, preachings  Competition for global start-ups → get sponsorship from Gov.

Promotion of entrepreneurship  More and more start-up and expats are starting business in Hong Kong

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Pitfalls  Difficult in applying funding (both start-ups and co-work space)

 Too complicated applications  Unclear instructions

 Difficult in applying visa for expats  Insufficient subsidies

Co-work space  2014: only about 10 co-work space → nowadays: 40 co-work space  Demand on co-work space is going up  Paperclip provide flexible rental service in terms of duration and scale  Business centre is more popular in the past  More than office space → provide platform for sharing, communicating, networking etc.  Value added services: workshops and events are organized in paperclip

 invite big corporate and successful start-ups to share and be mentor  platform for the start-ups and entrepreneurs networking

 New concept → difficulties in promotion  Inspiring environment and atmosphere

Entrepreneurship/Start-ups  70% of paperclip members are expats  Lots of them are finance and tech related, but for paperclip, t s very diversified  More and more business natures joining the ecosystem  The age ranges broadly, from 20-50, average 20-30

 some fresh grad, some very experienced and jump out for their own business

 Usually rent for at least 6 months for long term business, but some may give a try before long term contract.  Business plan → test the market

 cooperate with large firms → some aim bought by large firm

 More local joining the ecosystem these days  University started to educate about entrepreneurship

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Relationship with China  Entrepreneurs set up office in HK → targeting China market

 low tax, multinational, easier to set up business

 Hong Kong is like centre of Asia-Pacific region → easy to go to other market

 geographically has a great advantage AT THE MOMENT

 More and more expats set up office in Shenzhen

 Shenzhen: hardware, manufacturing, It industry  once we lose the advantages in policy and regulation level (low tax, easier to set up) → can hardly compete with Shenzhen

Work Culture  Flexibility  Professional  Parents mindset: traditional professional, big corporates, investment banks

 discouraging the young generation entering the ecosystem

 Smart: know what you are doing, being passionate

 the traditional workers are blanked by the dull daily routine → lost passion

 Entrepreneur is very lonely → co-work space can allow them communicate  Leave early → working not being constrained in office space  Work-life balance  Passion → efficient → good time management → shorten working time  Traditionally have to work till 5 or 6 even highly efficient  Education → parents

Technology  Technology is very important → everything is related to technology  High demand in coders, programmers either in big corporates like Google, and start-ups  Websites, apps are needed in starting business  ICT still cannot replace the physical working space → face-to-face communication

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Appendix IV Individual Interview – Inmarsat

Date: 14th March 2016 Position/Institution: Vice President Sales Asia Pacific Field: Private (MNC)

Proposed Question 1. What is your understanding of smart working? 2. What is the vision/ working atmosphere of the company? 3. What is the structure of the company? 4. Would the company outsource the job to external companies? 5. Why did Inmarsat choose Hong Kong as a branch of the company? 6. How the technology advancement in recent years help with your work and the operation of the company? 7. Has the government given any support or assistance to you when establishing the company?

Summary of Interview Hong Kong Employee Positive  Self-discipline (work hard, willing to OT, high quality of work till the last day) → easier to manage  Labour cost is quite low globally  The ability is overall top in Asia

Negative  Lack of interaction

 Willingness in communication is low, colleagues and seniors  Mind their own business → show little concern on company’s issue

 Not ambitious while compare with mainland counterparts

 Mainlander acts more promising

 Narrow global vision

Management  Promising salary is the key to retain the employee

 For multinational firm, the pay rise is the same all over the world, so if the economy of Hong Kong is good → less attractive; economy of HK is poor → more attractive

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 Biggest challenge in managing

 Top university graduates may not in advantage → high expectation in salary + less eager to learn  Young blood is preferred → adaptable to new idea, style, tech etc.  Managed by presence

Work environment  Traditional office + home office  Home office

 Hard to assess the employees’ working → only possible for senior  Commuting time will be take into consideration (not applicable in Hong Kong).  Depends on nature of job

 Sales team is not suitable for home office because it required teamwork and efficient communication.

 Home office brings less interaction with others, likes seniors and colleagues, which may affect the internal promotion.  Easier to set up different base all over the world (again, not relevant to Hong Kong context)

 Traditional Office

 Interaction between people (VERY IMPORTANT)  Higher working efficiency while compare to home office (home office will be side-tracked easily)

Regional  Regional centre → geographical advantage

 As an international transport hub, low cost and travelling time  Poor environment, education, tax etc. → seldom long stay in China

 Market is large in Hong Kong

 Lots of giant managerial company in Hong Kong  One of the largest port in region (Singapore is actually the largest)

 Hong Kong has an international environment while compare with other cities in the region  Hong Kong people lack of international vision

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View on Hong Kong Policies  Low/no tax, Duty free (SG’s tax is low as well)

 Cost in labour force is low  Net income is much higher while compare with other region

 Mature and supportive financial policies  Mature legal system  Almost no intervene from government

 Support from government is not necessary for multinational firms

Application of ICT to Work Environment  Use WebEx for international meeting

 High risk in holding teleconference  Meeting can be hold anytime anywhere as long as internet is available

 Use Concur for financial management

 Replace the traditional way of using excel in organizing the bill  Outsourced to India to organizing the bill → international division of labour

 Use internet cache protocol (ICP) for Cloud service  Outsourcing to other company → lower cost while compare with develop by themselves  Detail planning is needed before setting up any new system

 Make sure every department takes part in the plan from the very beginning → mutual understanding

 Provide relevant training programmes to employees  Work-life balance?

 No fixed “office hour” → private life will be invaded  Even European work during weekend (contradicted to their culture)

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Appendix V Individual Interview – The University of Hong Kong

Date: 15th March 2016 Position/Institution: Associate Professor Field: Academic

Proposed Questions 1. What is your understanding on Smart City? 2. What is the current situation of Hong Kong on developing smart city? Do you think Hong Kong is making good progress? What is Hong Kong lacking? 3. What is your opinion on Hong Kong government policies and strategies on supporting and developing Smart City? 4. Do you think Hong Kong is ready to be a smart city, since smart city is more than technological advancement, but also about other aspects, e.g., culture, education system? 5. What is the major obstacle for Hong Kong to become a smart city? 6. Do you think it is worth exploring the possibility for more regional cooperation for smart developments? [Mainland China, and other countries] 7. How is Smart City development in China? Is there any good leading regions/cities?

Summary of Interview Hong Kong’s Current Situation  Local situation: status quo/structure  Wi-Fi: does not make the city smart  No big policy changes  Cannot help facilitate or encourage the development of Smart City  Technologically advanced companies and firms observed → lack of incentive to come to Hong Kong  Hong Kong has become complacent

Big Data  Access to data should be free-of-charge and open  Partial transparency of government data  Big data: now not for public but only competent people → Public: difficult to understand and thus cannot make well use of it  Privacy concerns

Smart City Planning  Spatial development improved by technology

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 Sensors in buildings during construction help to prevent structural issues  GPS signals help to relay live traffic information  Smart Cities: context specific

 Should not directly transplant or take models  Important to identify local factors

Smart City Politics  Private companies are not happy with the governmental foundations  Reminder: Government’s responsibilities lie with the public, not to private companies  Smart City development approach (i.e. free-market, top-down, etc.)  Diversity and culture of the local space

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Appendix VI Individual Interview – Legislative Council

Date: 15th March 2016 Position/Institution: Legislative Councillor (Architecture, Surveying and Planning) Field: Public Service

Proposed Question 1. How would you define Smart City? 2. What are you opinions on the role of Information and Technology Bureau in fostering the developing smart city in Hong Kong? 3. Can you comment on the current situation of smart city development under the existing policy and legislative framework in Hong Kong? 4. The government has been introducing “reindustrialisation” to enhance Hong Kong’s competitiveness. Do you think develop high-end manufacturing is feasible in Hong Kong and what is the major obstacle? 5. From your point of view, how funding provided by the government can promote the development of Hong Kong? Is there any room of improvement in the funding scheme? 6. What are the challenges of smart city development in Hong Kong? 7. What are your opinions on the role of Planning Department and professional institutes such as HKIP, HKIS in fostering the development of smart city? 8. In your opinion, how the development of smart city would affect the spatial demand and planning in Hong Kong? 9. How can private sector cooperate with the government to promote smart city?

1. How does the Smart City development interlink with the reindustrialisation trend in Hong Kong? 2. Can you comment on the current situation of Smart City development under the existing policy and legislative framework in Hong Kong? 3. Does the government provide programme and funding to support the private enterprises? To what extent do you think they are useful?

Summary of the Interview Advantages of Hong Kong  Own technological advantage  All the data is available, though managed by different departments

Major Obstacles for Hong Kong to Become a Smart City  Lack of a platform to integrate different data from different departments  Data is very scattered and sometimes incompatible with each other

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 Lack of data transparency  Limitations and restrictions for developments  Inflexible planning rules  Lack of incentive to take the initiatives

Role of Government  Should take the initiative and acts as major stakeholder  Create platform to allow public access to the data

Role of Private Sector  Possibility to explore the PPP model  Reminder: private sector always aims at profit maximisation  Looking forward to the ITB to create such platform for data sharing, and promote the use of technology for working in both public and private companies

How Urban Planning Contributes to Smart City  Now: the way of thinking is too traditional, not thinking forward enough  Planning speed cannot catch the speed of technology advancement

Spatial Changes Brought by Smart City Development  Not necessarily lead to fewer office space  May not be ready to work in total isolation or work individually  Human interaction is valuable  More flexible and diverse pace utilisation

Legislative Issues and Smart City  Law: developed from history  No technology included → law violation, e.g., Uber

Changes of Working Culture by Smart City Development  Not necessary  Working culture of Asian countries: intense and long working hours  Not necessarily lead to better quality of living  More workload than before

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Appendix VII Individual Interview – ESRI

Date: 15th March 2016 Position/Institution: Representative Field: Private (MNC)

Proposed Questions 1. Could you comment on the current data integration platform? What would be an ideal data sharing situation that can facilitate daily work? 2. Could you share with us smart practices to raise work efficiency and provide a better working environment in your company? 3. How does GIS facilitate the working performance of the companies?

Summary of Interview Work Environment  Data integration platform  Environmental friendly workspace (turning off lights during lunch hours and making sure all computers are off during long holidays)  GIS

 Provide relevant geospatial information for top management to make better decisions  Help execute business operations  Discover and solve problems creatively  Increase the efficiency of a company and reduce costs  Help discover new business opportunities and enable internal innovations  Have a better understand of customers by effectively analyzing relationships between people, places and behaviour, and revealing underlying patterns and trends

Work Support  E-channels and applications for internal and external communications and collecting market intelligence  Allocate significant resources to internal training

Communication  The millennial expresses opinions and feeling through online social media frequently such as Facebook, yet privacy issues is involved  Online social media cannot replace traditional face-to-face interaction, social life is important

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Service Provider  ESRI provides foundation technology to clients

 Provide services to KMB to build real-time information system  Can import the data/ build application if the clients make the request

 Groom the development of the industry

 Encourage the client corporate with other company/ build their the application themselves

 R&D

 Only 0.73% of the companies in Hong Kong is software company → hope the Government can input more in R&D

Smart People  Digital divide

 Not really relevant to Hong Kong  Cost of hardware is much lower these days  Cloud service  Non-governmental organisations (NGOs) in Hong Kong provide training to the elderly, deprived family, etc.

 Education

 US: “child can code” → even primary students can code  ESRI provides products to all primary and secondary school in HK → some schools have built applications successfully  Mapping skills are crucial  Government has the responsibility to input more effort in education of technologies

Planning  Technology

 As the complexity of urban area increase, technologies are required to solve the social problems (mostly locational) eg. 3D urban form → GIS

 Quantity + quality

 Quantity: How shall we acquire extra land resource? Should we develop greenfield? How? Where?  Quality

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 Redistricting: moving people from high density district to lower density region  Allocation of public resources

 Example: population density of Kwai Ching district and Tsuen Wan district

Government Policies  Policy Address: integration of different departments

 2015: EKEO  2016: ITB

 data.gov.hk

 5000 data sets → not readily available  Should align the data from different departments  Spatial data is important (there is no map based data now)

 Data centre policy

 Data linkage → cloud service

 Financial

 The recurrent cost is the major obstacle

 The Government focuses on cost saving  Maintenance cost is high

 Lack of financial support from Financial Bureau and Legislative Council → the Government plays too safe

 Other cities make huge effort in recurrent

 Application Programme Interface (API)

 Require an institutional arrangement → one institute build the API  The 2016-2017 Budget mentioned setting up SDI → API should go before SDI  Advantage of API: does not need to download the data

 Smart Living Fund

Smart City Consortium  NGO  Facilitate the development of Smart City in Hong Kong  Platform of different stakeholders to express their ideas on Smart City development to HK government

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 Connect the other international consortium of Smart City  Mainland

 Signed agreement with Mainland in 3th April  Corporate with mainland in developing Smart City  Meet the standard of ISO in Smart Cities

 Memorandum of Understanding (MOU)

 Hong Kong signed MOU with Austria on cultural co-operation  Vienna reached top ranks as a smart city

Public Participation  Requires an institutional framework and regulatory regime  GeoPlanner

 Data based  Public can visualize the possible changes → reach the consensus  HK has no GeoPlanner approach

 Citizen participation is important

 Core part of a city  Provide information through mobile device  Build city together

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Appendix VIII Individual Interview – All-in-one

Date: 16th March 2016 Position/Institution: All-in-one cofounder Member of Hong Kong Youth Entrepreneur Warriors Driven committee of Concern Group of Hong Kong Youth Entrepreneur Policy Field: Private (start-up NGO

Proposed Questions 1. Could you further share some opinion on the initiatives related Fintech & start-ups? 2. As you are involved in start-up programmes in both Hong Kong and Mainland, would you mind compare these programmes? 3. What prompts you to start your own business? Did you receive any support from the government? 4. How would you comment on the existing working policy in Hong Kong? Is there any way to make it smarter? 5. Do you think government’s initiatives on Smart City will benefit your work?

Summary of Interview# Cyberport  Targeted to Interim media or online-to-offline (O2O) (Ideas and intangible products) (virtual one like Gogovan)  Limitation of Cyberport: not many workspace,not convenient  Provide CCMF for start-ups (100k seed fund in 3 stages (10k, 45k, 45k))  Support  Offer training & introduction of the CCMF scheme  Collaborate with universities (the interviewee was from City University, the university has initiated an Innovative Commons for the student and graduate start- ups )  Problems  A lot of youth start-ups do not aware the existence of the funding programme  Both government (iStartup) and NGO (YEW) has promoted the funding programme, but there a number of start-ups are not covered by the funding programme (like language restriction, lack of experience in writing proposal, etc.) HKSTPC  Target to technology, especially on biotech, tangible and concrete product

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 Still will provide services to other platform like All-in-one (which is overlapped with Cyberport)  The location of Science Park is quite convenience while compare with Cyberport  Organized Competition: City Challenge  Not many entry (told from the fact that they extended the deadline) Start-ups Factors in operating start-ups  Cost (CCMF is not enough for Fintech)  Connections (potential partners, clients, supports etc.)  Skills (different background)  programming is very important  Lack of opportunity for promotion  Environment is more encouraging these years (promotion from government and media) Operation  Attract investors invest their start-ups (the investors tend to expand the share, which increase the value of the shares hold by the entrepreneur)  Do not have a lot revenue → barely enough for sustaining the start-ups  Cloud server (most of the successful start-ups use AWS )  Recognition is very important (branding) Problem faced  Do not enough support and opportunity  Lack of expert in programming (the start-ups nowadays tend to be O2O → require much more knowledge, like programming, user experience (UX) design, user interface (UI) design, promotion and branding)  Lots of language, updated very fast  The partner needs to know the programming  Demand of programmer is very high → cost of hiring programmer is very high as well  Hard to access primary data  Old generation mindset → have to adjust parent’s mindset and communication  But the parents are more supportive, being employed may not work (even the salary of profession is low) Problem = opportunity Workload  Fully engaged as long as you are devoted into business  Passion is the most important motivation  Sometime may even sleep at the office Funding from Corporate  Angel fund  Investment bank or insurance companies (such as AIA): as accelerator to aid themed start- ups (like Fintech)

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 Provide money and network → more resources for the start-ups

Workplace  Current location is convenience (provided by Chamber)  If physical store is involved, the cost could be very high, and finding office space (like cowork space) in HK is challenging  Do not consider co-working space  Privacy is very important, intellectual property is in a very high priority for startups → gimmick  The networking opportunity may not be that attractive for local start-ups, since they have already built up their own networks  More convenience if they have own office  Work life integration  Entertainment is available in the working space

Mainland  Way more supportive towards start-ups than Hong Kong  Very used to use mobile app, like online payment, the big company will invest a lot, or by different platforms  More programmers

Government Limitations  The regulations cannot follow the advancement of technology → grey area in regulation  Like fintech  Regulation has to protect the right of customer  The system of HK is not mature enough  Too careful  Even the government does not understand their initiatives  Lack of actions  Branding of the Government is in the high priority  The mindset of government is very outdated  Copy the other cities, or even movies  Uncertainty in whether the funding is received by the start-ups (monitor by big corporate)  Administrative issue Government’s concern  Based on the right of customers → place restriction on technology  Has a role in balancing the benefits of traditional industries and the new ones

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 the platform development usually brings destructive impacts, which is contradicted to the interest of traditional  Share economy: affect the tradition industries while bring convenience to citizens  Should HK take a step back while facing these new ideas?  Recognize the economic structure of Hong Kong is simple (only few industries: tourism, finance, retail)  Make sure the startups use the funding properly → The big corporate will monitor the use of funding

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Appendix IX Individual Interview – Energizing Kowloon East Office

Date: 18th March 2016 Position/Institution: Representative Field: Government

Proposed Questions 1. What is/are the biggest obstacle(s) Hong Kong is facing in initiating smart transportation policies? 2. Are there any potentials in the of Smart water grid in Hong Kong? What are the challenges in its implementation? 3. The population of Kowloon East will surge with the completion of the various projects in the Kai Tak Development Area, and the problem of ageing population is increasingly serious. According to the statistics of the Hospital Authority (HA), the population of the Kowloon East Hospital Cluster (KE Cluster) was 990 100 in 2011, and is estimated to rise to 1 097 000 in 2019, of which the proportion of people aged 65 or above will rise from the existing 13% to 15%.

Summary of Interview Singapore: Smart Nation  The political environment of Singapore different from than in Hong Kong  More focused and efficient policy implementation  Singapore government can do what they want but Hong Kong cannot

Smart City Initiatives  The Hong Kong Government aware the development of Smart City in the other city  Smart City should put in city scale, so when some trials have taken in Kwun Tong area with a good result, other departments implemented into a city scale and promote the idea to other places in Hong Kong  Studies conducted by other departments will also look into Smart City  ITB

 Both ITB and DB has their own aspect of Smart City, but have interface  One of the major tasks of ITB is to standardize the data  Cooperation between ITB and EKEO (ITB: technical terms; EKEO: planning and design aspects)

 Government tries to create a platform to make the data from different departments be compatible with each other

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EKEO Smart City Initiatives  Every business district has their own characteristics. Like Central, as a traditional Central Business District (CBD), is definitely can be replaced by Kowloon East.  Why Kowloon East as smart city pilot study area? Here is development opportunity in Kowloon East with a mixture of new and old communities, and of mixed land uses (may facilitate to build a diverse and vibrant community)  draw up their own framework based on the Smart Wheel (the 6 characteristics)

 focus on the environment and mobility

 Collaboration with the other stakeholders like universities and institutions, NGO, private companies by attracting and convincing to start the trials in Kowloon East  EKEO acts as a bridge between the research institutes and other government departments. Since EKEO always communicates with external technology innovations and other stakeholders. When they observed there are some practical ideas that can be useful to other departments, they can act as mediators to introduce the relevant technologies and skills to the other department as to raise their awareness and seek the possibilities of cooperations, like urban farming with AFCD

 not always have positive response or results, but at least must give a try

 Start public engagement on Smart City framework  Due to the limitation of resources, EKEO has to prioritise the proposals. More importantly, as EKEO cannot do all the practices. They try to raise the interest and awareness of other relevant stakeholders such as government departments and private sectors by raising the issues and initiating the studies and testing the ideas, e.g., the smart traffic lights  Communicate and share experience with other cities

 visit other cities or offices from other cities visit EKEO  not very ready to cooperate with other cities  very useful in getting experience

 take time (4-5 years)  Short, mid and long term strategies to achieve Smart City Initiatives

 Focus on those tangible strategies  To keep the public attended and have an eye on the efforts of EKEO

 Has no intention to review and evaluate regularly

 The ultimate goal is not how advanced the ideas and technologies are, but the quality of living

 Application of other part of HK

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 Try out in Kowloon East then bring to citywide

Government Structure  Different department has their own initiatives → like Hospital Authority, Highway Department, Environmental Bureau etc. (When we want to investigate the smart city development in Hong Kong, we have to firstly understand the Hong Kong context and government structure: Every part/department may have their own smart initiatives, like hospitals have their own smart initiatives and technology maybe on healthcare and medical services.)



 The scale of EKEO office (with 23 people) enhanced the flexibility of their work → no intention to expand the scale  Fragmented government structure

 Take many steps to push the ideas forward (pass through many procedure to other department follow up)

 Multidisciplinary offices would be set up to meet different task for some project definition study

Tourism Nodes  translate the winning scheme to applicable requirement  the node will be private development  have to apply → controlled by planning side  not cash tender

 have to have technical proposal: entertainment, health

Green building initiative  green building requirements: beam plus

 high greening ratio, extra 10%  overall 30%  accessible 20%  20% of rooftop have to have 25%

Water metres  1st place to require install smart water meter

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Mobility  Electric vehicle

 Provide charging facilities in Kwun Tong  GeoInfo of availability of charging facilities

 Corporate with the surrounding car park owners to set up real-time parking availability information platform

 no incentive is given to the private car park owner  persuasion → follow up  advice from ESRI  transport department → integrated to whole Hong Kong

Walkability  Since there will be more office in Kwun Tong area, the traffic demand will be increased  Still have some manufacturing industry  Kowloon Bay is more office like  Kwun Tong: the road is very narrow with vibrant activity

 aside from traditional traffic management, want to due with the on street loading and unloading → Change the habit

CBD  The status as CBD of Central cannot be replaced → radiant effect to surrounding area  Kwun Tong has industrial background  Tai Koo City is a private project with Swire as single developer

 Scale is very small, which is more easy

 Kowloon East

 Industrial, governemnt, private etc.  use the external environment to affect internal environment  changing gradually  6 years ago, Revitalize industrial building → faster  40-50 projects is Revitalize industrial building  keep industrial building mix new development and industrial building ← the characteristics of Kowloon East  design in public space → take care of people here

 creative industry

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 identify space for different use (like under the bridge)

 some convention will converted into start-up (Tsinghua university cooperate with HK institute to convert to the start-up)

Cooperation with private sector  EKEO like to try something new  social network

 Collaborate with stakeholders that share same vision

 Financial support to private sector

 science park --> private companies  Fairness is important. If the private company gets the support largely by the government, the intellectual property would be claimed by the government. Instead, if the support is largely offered by other means including the private sector or other industries, they can claim the intellectual property right.

 limited resource

 different method to communicate

 KMB and MTR

 realtime bus information  persuade them to start with Kwun Tong

Work life balance: smart working is more than efficiency and flexibility  strike the balance  recreation: multi-purpose sport centre  kai tak recreation is about ⅓ of the area

Smart City Consortium  idea from EKEO  start with smart city expert group → formal organization  NGO needs sponsorship from industry  concept trial

 longer list and categorise it (gov/industry/uni)  EKEO provide opportunity for them to visualise

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Appendix X Individual Interview – Planning Department

Date: 22nd March 2016 Position/Institution: Senior Planner Field: Government

Proposed Question 1. How does Planning Department cooperate with other government department to develop Hong Kong as a smart city? (Big Data, Common Database i.e. SDI (spatial data infrastructure) to combine the information in the existing Statutory Planning Portal, GeoInfo Map) 2. What are the major obstacles and opportunities in developing Hong Kong into a Smart City? How can government solve these challenges? 3. What is the next step after developing East Kowloon with smart city strategies? How can other places of Hong Kong learn from the experiences of East Kowloon? 4. How to incorporate the idea of smart city in the ongoing Hong Kong 2030+? 5. How would you comment Hong Kong’s position in the region as a “smart city” at this moment? 6. What spatial implications, in terms of land use zoning for example, would be brought by smarter working habit and change of work environment? 7. Can you comment on the cooperation between Hong Kong and Pearl River Delta to develop smart city in the perspective?

Summary of Interview Role of Planning Department in achieving Smart City  There are a lot of data needed for every planning application  Planning Department makes decision for these applications, but is not responsible for building constructions  Make sure the data flow from one department to another is important  A lot of decisions are made by private sector which the government has difficulty accessing the data

Cross-departmental sharing of data  Difference in data production between departments  Land data is produced in a project-based or task-based manner  Some data is classified cannot be made public  Some departments (e.g. Lands Department) rely on selling the data for money  The skill level between different departments is different, lead to different formats and definitions

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 When cooperating with other departments, it is important to convince them that sharing data will be beneficial  The input of data should commence at the early stage of any development projects

On cross-department cooperation model such as EKEO  EKEO is a unique system in Hong Kong at this moment, if there is an expansion of such model, they should be tailored to different context

On government working with the private sector  Need to understand the potential pitfalls of working with the private sector  Need to address the problem of public interest  E.g. if whole Hong Kong is covered with Wi-Fi, it means a direct competition with the internet service providers  But agree that the government should take a more proactive approach to set up more funding  These funding should not only support the setting up of the companies, but also help them grow to a certain size

Hong Kong’s advantages to become smarter  High penetration rate of smartphone  A lot of new mobile applications  The citizens generally accept new IT  Good infrastructure of IT  People in Hong Kong are creative, but they need how to make use of it to launch business and do marketing  There is training in universities, but it does not lead to more production and output

In the coming spatial arrangement of working environment  Multi-national corporations will still continue to stay in traditional CBD, grade A offices  Staying in CBD will facilitate the meeting of clients and customers (locational advantage)  But for creative industries, they are flexible in location, working hours  Creative industries are capable of working in non-conventional offices  Planning strategies can help the redistribution of the demand  Changes in the land use regulation can help too

Regional cooperation  Mainland to a certain extent follow the development pattern of Hong Kong

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 But law and regulation restricted full data sharing in Hong Kong  In China, the departments can share a lot of personal data, thus making analysis easier than Hong Kong  If Hong Kong is to share data, one must ask whether it is ethical and whether there is community consensus on it

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Appendix XI Individual Interview – Legislative Council

Date: 24th March 2016 Position/Institution: Legislative Councillor, Civic Party Field: Public Service

Proposed Questions 1. How would you define Smart City? 2. Do you think the laws and regulations in Hong Kong need to be changed/updated to cater the development of smart city in Hong Kong? If yes, how? 3. What is your opinion on HK government clamping down UBER? 4. How can the Information and Technology Bureau help development of smart city? 5. What do you think are the major obstacles hindering Hong Kong from becoming a Smart City? 6. Can you comment on the current situation of smart city development under the existing policy and legislative framework in Hong Kong? 7. Did you see any changes in the working environment of the law firm?

Summary of Interview Definition of Smart City  Digitalization  Without manpower  Go green

Current Situation  Smart phone age/ Facebook age  Highly integrated with smart phone and social media -> dictated the development of the future, how policy can fit in?  Hong Kong should embrace new trends  Disrupting the monopoly

 Introduced Airbnb and Uber into Hong Kong  People have more choices  Uber introduced by InvestHK, however the Government has banned its service since it is contradicting to existing regulations

 Digital divide

 People should have equal opportunities  Is it a rights or privilege to access to Internet?  How to allocate the resources to help underprivileged and avoid social inequality?

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 The role of government should be allocate resources and safeguard people’s rights

Smart City Initiatives in Hong Kong  Mismatch between the original initiative and final result -> eg. Cyberport, Science Park  The difference between Cyberport and Hsinchu Science Park  No policy for green transport eg. Bicycle  No clear vision and the vision not yet reached 2016 level  Policies should be more down-to-earth

Work Environment  Growing trend of paperless in law firms → digitalized documents  Face-to-face interaction is still preferred

Law and Regulations  Only implementation of policy  Should always protect human basic rights  Can only determine whether it is right or wrong but cannot provide guidelines

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Appendix XII Summary of Focus Group Discussion (13th March 2016)

Work Location  Franessa

 Works at traditional office space  Meetings would take place different office branch (e.g. Franessa works in the headquarters in Central, however, she is frequently required to attends internal meetings in their office in Causeway Bay)  Meeting with client in any locations (To ensure clients’ convenience, meetings can take place in any locations, for instance starbucks/ cafes are popular choices)  Home-office is allowed upon request

 Stella

 Works at traditional office space  Home-office is not allowed  Meeting with client in any locations

Home Office/ Co-working Space or Traditional Office?  Franessa and Stella

 Both prefer traditional office  Working in co-working would easily distracted from work due to the random chit chat with neighbours  Do not prefer home office because it blurred the boundary between work and daily lives, which portray a sense that one should work wherever whenever, which mean works would never end  Can consult senior colleagues and bosses whenever they encounter difficulties in traditional office. Can easily get in touch with the relative colleagues for signing of administrative paperwork

Technology Helps Working?  Franessa

 Intranet System that facilitate instant information exchange between branches located in different countries

 Stella

 Intranet System that facilitate instant information exchange between branches located in different countries  A data system that records all portfolios of the clients

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Sponsor on Learning Software  Franessa

 Regular training sessions and lectures to update with the latest technical knowledge  Required to take online assessment upon completion of the training course

 Stella

 Training workshops to facilitate the learning of the latest technical inventions

Digitalised to Change Working Style?  Franessa

 Improve communications among branches in different countries  Instant information exchanges make overtime working becomes a norm because need to answer conference call in different time zone

 Stella

 Digitization makes work no long bounded by time and location  Required to answer E-mail after office hour

Work/ Life Balance?  Franessa

 Have a work-life balance team to organize weekly activities for employees  Never join the activities because of the heavy workload  Allow flexible working hours upon request, so working father/mother could leave office early to take care of her children

 Stella

 Despite the company have a Work/Life balance team, most colleagues have no intention to join the activities  Activities are usually held on weekends, want to preserve the weekend for a good rest  Heavy workload and work overtime is a norm, no energy left for the activities

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Appendix XIII Summary of Focus Group Discussion (16th March 2016)

Working Location  Daniel

 Depends on the nature of work  May have site visit  Need to use the computers in office for confidential data

 Florence

 Similar to Daniel, go out for work when needed such as interview

 Michelle

 Digital marketing, go out to study some products

 Sara

 Home office, self-employed  Flexible working location and working schedule

Home Office or Traditional Office?  Daniel

 Prefer traditional office  Too much distraction

 Michelle

 Prefer traditional office  Home office is permitted by the company  Advantage of home office: more flexible  Applying for home office scheme so she can work more flexibly

 Nicole

 Prefer traditional office  Acceptable distance: travelling time within one hour  HR needs to meet people and sign some confidential documents and contracts that may contain personal and sensitive information, so need to go to office

 Elvis

 Own job: home office not very possible  Communicate with teachers and ask for advice directly

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 IT devices have limited effect on promoting work efficiency  Safety issue: look after the students in person but not relying on CCTV

Co-working Space  Nicole

 Do not prefer co-working space  Too flexible → no stable place to store things

 Sara

 Need absolute silence for focus  Easy to be distracted by others  Even in office: only find colleagues when necessary

 Florence

 Do not prefer co-working space  Information security  Many distractions

 Daniel

 Do not prefer co-working space  May prefered by small business operators for the communication opportunities

External Spatial Structure  Michelle

 Office: Cue table, Xbox 360, gym and other facilities  Nature of business: relies on creativity and thus more relaxing working environment

 Florence

 Office in Tseung Kwan O Industrial Estate  Office: rooftop basketball court  Close to landfill  Doubt: really can filter the germs? Colleagues seem easily getting sick  Nearly ten thousand people to work there, worth to concern  Industrial estate not much facilities, no nobody on street

 Nicole

 Office in Kowloon Bay

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 Zero Carbon Building has large green area  Not much other facilities

Technology Helps Working?  Elvis

 IT devices have limited effect on promoting work efficiency  Safety issue: look after the students in person but not relying on CCTV

 Florence

 Mobile phone is important for recording and taking photos  Can communicate and send files to the office even though she is outside

 Michelle

 Documents on Google drive: share to others

 Sara

 Online platforms: communicate with clients and promote products  Search for goods and make wholesale process easier  No spatial boundary: clients from other countries, such as Singapore

 Nicole

 Data: keeps for 7 years in hard copy  Once suggested to keep as soft copy to lower costs  Rejected the suggestion to play safe  Legal issues

Sponsor on Learning Software  Florence

 Talks on filming documentary

 Elvis

 Not much sponsor and support  Assume the workers can do anything so company needs not to hire more people  Need to be responsible for extra duties which requires special skills, e.g., making booklets  Lack of IT support

 Sara

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 applied government funding (Continuing Education Fund, CEF) to learn German  lower cost: seek alternatives when encountering technical problems

Digitalised to Change Working Style?  Daniel

 ICT has not much impact on working style

 Nicole

 Directly contacted by boss  Advantage of using communication application: more communication with colleagues,  Can understand more and achieve better working outcome  Prompt response and thus improve working efficiency

 Elvis

 Easier to communicate and better cooperation among colleagues  Teachers use E-book to teach students, no need to bring back school  Government scheme to provide online free courses that is related to teaching for teachers  Supported by HKedCity  Website has new version of ETV and teacher would use it to teach the students  Encourage to build own system and database for own school,

 Michelle

 Funding scheme for school to apply from Education Bureau for support

 Elvis

 Funding scheme is not free lunch  Need to do report or test or assessment

Working Culture  Elvis

 On-time off  Not very stressful

 Florence

 Huge workload → on-time off is quite impossible  Colleagues often work overtime, sometimes till midnight

 Daniel

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 Usually get off on-time  Periodical OT when project deadlines are approaching

 Nicole

 Seldom get off from working on time  Normally late for an half or even longer

Pressure from working  Daniel

 Project assistant: high pressure  Several projects at the same time  Have to work on some tasks that he does not know how to complete

 Michelle

 Work on tour management  Pressure from communication with other countries dues to language barrier and time lag

 Sara

 Marketing colleagues: pressure from clients  Need to bear quota and bonus  Internship colleagues: need to handle a lot of things  Express anger by small actions, like hanging up calls loudly and going to have coffee

Government promotion on work-life balance and stress reduction  Nicole

 May work if compulsory or statutory policy  Not that work as promotion

 Florence

 Should not have difference in labour regulations, such as there are two types of holidays (general holidays and statutory holidays)  Propose: standardised working hour

 Sara

 Office: standard working hours  Home office: 24 hours working  Advanced technology: brother has receive tasks from company in holiday, not much difference from home office

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Appendix XIV Work Programme

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