Hong Kong Chief Executive Donald Tsang (right) announces recommendations by the Task Force on Economic Challenges in promoting the development of six industries. Hong Kong Financial Secretary John C. Tsang was also at the news conference.

In earlier meetings, TFEC focused on formulating immediate measures to stabilize the economy and to boost employment.  It then turned its attention to Hong Kong’s medium- and long-term economic growth prospects.  In this context, TFEC identified six knowledge-based industries with good potential and then set about engaging the community in an in-depth discussion.

The six areas of focus are: increasing access to education, developing more private hospitals, encouraging professional standards and international recognition, making Hong Kong a “green” city, increasing research and development activities and boosting cultural and creative industries.

 “Hong Kong can only sustain its long-term growth as a knowledge-based economy,” Mr. Tsang said. “To develop this, we need at least three things.

“The first is talent. We need to nurture our local talent. At the same time, we have to attract talent from around the world. The second is market. Hong Kong has a relatively small domestic market, so we need to look for customers for our goods and services in the Pearl River Delta, in the Mainland, in Asia and, indeed, in the rest of the world.  

“Third, we need to make best use of Hong Kong's brand name,” he said. “To the outside world, Hong Kong embodies professionalism, integrity, judicial independence, efficiency, a free and clean society and free flow of information. This brand name, embodying the host of ‘soft powers,’ can be leveraged to draw customers from around the globe.”

On education, Mr. Tsang said two city sites will be reserved for private tertiary educational purposes; further details will be announced by year’s end.

In addition, four sites have been earmarked for private hospital development, for which the government will invite expressions of interest later this year.

New certification council to be created

A Hong Kong Council of Testing and Certification will be formed this fall to promote the professional standards and international recognition of Hong Kong’s industry.  The council will work with industry to formulate a three-year, market-oriented development plan soon thereafter.

The Hong Kong Special Administrative Region Government also will take the lead in making Hong Kong a green city, via legislation and through specific measures, including: expanding the scope of green procurement, stopping the purchase of incandescent light bulbs and encouraging departments to procure green products through new guidelines and resources.

On innovation and technology, the government will explore new financial or tax incentives to encourage the private sector to increase investment in research and development.

“On cultural and creative industries, we will actively promote the interest and ability of Hong Kong people, particularly our youths, to appreciate art and culture, and provide more opportunities for artists to perform and display their works,” Mr. Tsang said. “We will consider how to expedite the retrofitting or redevelopment of underutilized industrial buildings for use by cultural and creative industries.

“One common limitation facing the further development of these six industries is a shortage of land resources.  We know that this may not be a problem that the market can resolve entirely on its own,” he said. “The government will adopt an open mind in tackling this limitation so that the full potential of the six industries may be realized.”

Noting that the work of the task force is drawing to a close, Mr. Tsang said government bureaus will follow up on the group’s recommendations, and progress will be reported on in October’s Policy Address.