HK Market Has the Strength to Ride out Global Headwinds
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FOOD SAFETY, SECURITY Hong Kong grapples with overdependence on imports that pose extra challenges in maintaining integrity from farm to fork > GBA2-3 Friday, September 25, 2020 HONG KONG EDITION | CHINA DAILY Inno-tech the way forward Scientific and technological research is critical to confront the threat from the COVID-19 pandemic and to deal with economic, social and health crises. Experts say Hong Kong needs to do much more to catch up with neighboring and regional economies. He Shusi reports. ong Kong’s innovation and neering, physics and biotech, he said, adding percent in Singapore. technology development has that government involvement will encour- “This shows the SAR’s lack of scale in been buffeted by months of age more private capital by making inves- pouring money into scientifi c research,” said HK market has the strength social unrest, the coronavirus tors realize the potential of a project and Chow Man-kong, deputy director of the Pan Hshock and setbacks arising from simmering become more willing to share the risks. Sutong Shanghai-Hong Kong Economic Pol- tensions between the world’s two largest In her maiden Policy Address in 2017, icy Research Institute at Lingnan University. economies. Chief Executive Carrie Lam Cheng Yuet- to ride out global headwinds But there’s a silver lining. The global pub- ngor vowed to double the expenditure Sharpening edges lic-health emergency has prodded some of on R&D to HK$45 billion a year, raising Amid a complex geopolitical situation, By HE SHUSI in Hong Kong two largest economies might spark the Hong Kong’s leading tertiary educational spending from 0.73 percent of the city’s gross Hong Kong must spend more on R&D and [email protected] return of more Chinese scientists and institutions into stepping up research on domestic product to 1.5 percent by the end transform scientific research effectively researchers from the US. Hong Kong can public health and virus control. For exam- of her fi ve-year term. to unleash the city’s potential strength in In between crises, Hong Kong has become an attractive alternative for them, ple, the Hong Kong Polytechnic University turning itself into a technology-equipped secured an edge in innovation and tech- as an international metropolis integrated announced in February the development of Unforeseen challenges economy, and to stay competitive in the nology development in terms of fundrais- with Chinese and Western culture under an automated, multiplex diagnostic system But the prolonged social unrest that erupt- digital age, said Chow, who’s also Lingnan ing for tech companies, talents and digital the “one country, two systems” principle, for detecting pathogens responsible for up ed in mid-2019 and the COVID-19 onslaught University’s deputy director of the China transformation of local companies. Chan said. to 40 infectious respiratory illnesses, includ- this year have seen Hong Kong’s economy Economic Research Programme. Under the cloud of Sino-US tensions, To lure overseas or mainland tech tal- ing COVID-19, within an hour through a shrink by 9 percent in the second quarter, He pointed out that Hong Kong’s R&D the wave of secondary listings by tech ents, the SAR government introduced the single test. while the government has projected a con- activities rely heavily on government invest- enterprises in Hong Kong is expected to Technology Talent Admission Scheme in The work that took four years and cost traction of 6 to 8 percent for the full year. ment and lack private sector participation. continue in the coming years, spurred by mid-2018, granting eligible talents fast- HK$20 million ($2.58 million) was mainly In a recent interview with China Daily, In 2017, private companies funded half of the their unpleasant treatment on Wall Street track visa arrangements. The initial plan funded by local biotech company Avalon Secretary for Innovation and Technology R&D projects in the city, while the percent- and sanctions, experts say. was to provide 1,000 quotas annually. BioMedical and was backed by Shenzhen’s Alfred Sit Wing-hang acknowledged that the age was 90 percent in Shenzhen and 77.6 By May, 248 China concept stocks had Although the government has opti- Pingshan district government, which pro- turbulent situation poses challenges to the percent on the mainland as a whole. gone public in the United States, with mized the plan twice to broaden eligibil- vided a 3,000-square-meter plant for the city’s inno-tech development. Hong Kong’s public and private sectors technology, media and telecom companies ity, only 365 quotas had been used by researchers to realize mass manufacturing He noted that venture-capital funds should invest heavily in big data, artifi cial making up 70 percent of the total. Chinese June this year. To win over more talents, of the testing machine. poured HK$1.24 billion into Hong Kong’s intelligence, biotech and fi nancial technol- concept stocks excluding tech giants Ali- further incentives must be in place to The facility is likely to start production budding companies in 2014, and invest- ogy to promote the upgrading and transfor- baba, JD and NetEase — which have listed benefi t those intending to come to Hong next year, according to Terence Lau Lok- ments soared 13-fold to HK$17 billion in mation of traditionally competitive indus- in Hong Kong — command a combined Kong, where living costs are much higher ting, director of PolyU’s Innovation and 2018. However, investments plunged to tries, and to nurture a new development market value of about $900 billion. than Shenzhen, Chow stressed. Technology Development and adjunct pro- HK$9.9 billion last year. pole, Chow urged. As long as Hong Kong remains a politi- In an interview with China Daily, fessor at the Department of Applied Biol- But Sit expressed confi dence in achieving In terms of funding, it should be govern- cally stable market trusted by investors, Mohamed Butt, executive director of the ogy and Chemical Technology, who led the Hong Kong’s goal on R&D expenditure, while ment-led investment with corporate partici- it’ll become mainstream in the next three Hong Kong Productivity Council, said research team. pledging to o£ er greater fi nancing support pation to e£ ectively diversify risk and attract to fi ve years for TMT companies to fl oat in the nurturing of local talents is equally The Hong Kong Special Administrative and favorable research facilities, plus more more private capital, he said. Hong Kong, said Chow Man-kong, deputy important. Region government also extended a helping opportunities to network with investors and At the same time, universities and director of the Pan Sutong Shanghai-Hong He said the partially government-fund- hand recently, pumping more than HK$4 manufacturers in the Bay Area and other researchers can take on the role of “tech- Kong Economic Policy Research Institute ed organization has been telling local million into the project under the Public Chinese mainland cities, to help Hong Kong nological investors” to share some of the at Lingnan University. companies to apply for the Reindustri- Sector Trial Scheme to allow local public research teams commercialize their work. dividends, Chow suggested. Capital returns The special administrative region is alization and Technology Training Pro- hospitals to try out the system. Hong Kong By early August, the Research Grants from the transformation and application of qualified to be a major destination for gramme that subsidizes local companies Science Park — geared to cultivating and Council, which was set up in 1991 to study scientifi c research can be given back to inves- the fi nancing of emerging or innovative and trains their sta£ in advanced tech- promoting high-technology startups — the needs of higher educational institutions tors, Chow said. companies, and to breed a fi nancial mar- nologies, especially those related to the let Lau’s team use its facilities to produce in academic research, had approved HK$170 He also urged the government to create a ket catering for the new economy, he said. city’s Industry 4.0 plan, which promotes reagents for the tests. million to support local universities in con- wealth fund akin to Singapore’s Temasek or For financial services providers and the automation of manufacturing and ducting studies on COVID-19 under the the Qatar Investment Authority, and expe- professionals in Hong Kong, it’s worth industrial practices. Exemplary cooperation Health and Medical Research Fund. dite the plan to draw part of its HK$220 bil- preparing for such a scenario, he said. The council has recently been pro- Lau said the project showed how coordi- “In recent years, the government has lion Future Fund under the Growth Portfo- The rising demand can also create more moting Industry 4.0 and Enterprise 4.0, nation between the public and private sec- strengthened R&D input at public univer- lio, and invest in innovation and technology training and education opportunities to helping local companies to realize smart tors in Hong Kong and Shenzhen can work sities, and we’re happy to see that,” said and new-economy-related projects. cultivate relevant talents, Chow said. supply chain and production, develop from research and development through to Lau. “But compared to our neighbors, such The government should accelerate coop- Since the Hong Kong Stock Exchange inno-tech transfer of products and launch the outcome. He hopes it can be a fi ne exam- as Shenzhen, there’s still much room for eration with Guangdong province, especially began allowing companies with a weight- related training courses. ple of facilitating greater cross-boundary improvement.” Shenzhen, under the Bay Area blueprint.