Just got a chance to read through the policy address of Hong Kong. As is usual in HK these days, every action by the government attracts criticism. But in this case, I find them mostly misplaced. The policy address lacks action steps in some respects but all in all, it hits on all the major issues - plans to improve infrastructure to lift employment and productivity, address pollution to make HK as a better place to live, medical support for the elderly, ..... I find the policy address refreshing since it coincides with my personal view of the opportunities and challenges that HK faces.
HK has many strengths and one of the most important is its position as a regional hub. While HK is the best base for regional executives, it is also an expensive place to live with its high cost and standards of living. This cost will be further exacerbated as the current population ages. The way forward is to make HK a better place to live and continues to attract highly paid expatriates and immigrants, i.e. highly paid finance executives and senior management of MNCs. This will be the future of HK and it looks like the Chief Executive is on the right idea.
Showing posts with label Politics. Show all posts
Showing posts with label Politics. Show all posts
Wednesday, October 17, 2007
Monday, August 13, 2007
HK + SZ
The Bauhinia Foundation Research Centre (智經研究中心), a thinktank close to the HK Government, has recently released a research report recommending the closer integration of Hong Kong and Shenzhen to create a new "HK-SZ metropolitan". While the idea has received mixed review from newspapers' editorials, I am very supportive of the idea. There is no question in my mind that the integration of the two cities has started some years back and the proces is already underway. One only need to spend an hour at the various border crossing to realize this fact. Everyday, more than 400,000 people cross the border by land with Shenzhen. There are businessmen with factories in southern China, professionals with clients in China, housewives looking for a good bargain and even school children going to school in HK while living in SZ. There is just as vibrant a trade in goods and like it or not, this is the future of HK and SZ as the two are intricately tied together.
For HK, its economy is too small and structurally, it has no choice but to be external facing. Historically, this has mean serving Western clients but the trend has reversed and increasingly, the clients are in China. This is the only way that HK can continue to grow, remain vibrant and maintain its current standard of living.
For SZ, it is growing rapidly but it has a tough time competing with other Chinese cities. Taking financial services as an example, SZ does not have a large pool of experienced managers and it is facing a difficult time attracting talents away from Shanghai and Beijing. I have experienced first hand that good managers would rather stay in Shanghai despite promotion and a more attractive compensation package. HK can help as it has a larger pool of managerial talent and also present a more attractive place to live when combined with SZ.
Like it or not, I believe it is inevitable that HK and SZ will co-operate and integrate more closely over time since it is in their respective best interests. My key takeaway here is that HK+SZ has a bright future ahead. With a larger economic base, HK will continue to draw the more affluent segments of the population and expatriates. This will bode well for high-end property prices and I don't see a decline in that market over the long term. For mid-end properties, they will like retain a premium over SZ properties but I suspect it will be range bound as the movement of people become easier.
Here is the link to the report: http://www.bauhinia.org/publications/BFRC-HKSZ-ES-ENG.pdf
For HK, its economy is too small and structurally, it has no choice but to be external facing. Historically, this has mean serving Western clients but the trend has reversed and increasingly, the clients are in China. This is the only way that HK can continue to grow, remain vibrant and maintain its current standard of living.
For SZ, it is growing rapidly but it has a tough time competing with other Chinese cities. Taking financial services as an example, SZ does not have a large pool of experienced managers and it is facing a difficult time attracting talents away from Shanghai and Beijing. I have experienced first hand that good managers would rather stay in Shanghai despite promotion and a more attractive compensation package. HK can help as it has a larger pool of managerial talent and also present a more attractive place to live when combined with SZ.
Like it or not, I believe it is inevitable that HK and SZ will co-operate and integrate more closely over time since it is in their respective best interests. My key takeaway here is that HK+SZ has a bright future ahead. With a larger economic base, HK will continue to draw the more affluent segments of the population and expatriates. This will bode well for high-end property prices and I don't see a decline in that market over the long term. For mid-end properties, they will like retain a premium over SZ properties but I suspect it will be range bound as the movement of people become easier.
Here is the link to the report: http://www.bauhinia.org/publications/BFRC-HKSZ-ES-ENG.pdf
Thursday, August 9, 2007
Beautiful Abe
You are Prime Minister of a power country and your party has just suffered a crushing defeat in the upper house of parliament. Not just a crushing defeat but the worst ever in the history of your party. The last guy who suffered such a defeat resigned within weeks. What is your strategy to pull you and your party out of this problem?
"Make [Japan] a beautiful country"
What the hell does it mean anyway? And what does one achieve by making a country "beautiful"? No wonder the economic recovery is short lived.
"Make [Japan] a beautiful country"
What the hell does it mean anyway? And what does one achieve by making a country "beautiful"? No wonder the economic recovery is short lived.
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