Bay area will prove its worth

In a forum sponsored by China Daily Hong Kong Edition on Monday, Chief Executive Carrie Lam Cheng Yuet-ngor shared her vision for the Guangdong-Hong Kong-Macao Greater Bay Area with an audience of more than 300 business leaders, academics and elites from other sectors. She talked about the potential opportunities Hong Kong can tap into from the ambitious project. This can help Hong Kong further its economic development by making good use of its competitiveness as a "super-connector". Being in its infant stage - the planning stage - which is characterized by a lack of details and tangible achievements, the regional development project has, understandably, seen many skeptics. But if only the skeptics care to see things from a long-term perspective, they would see the same kind of opportunities Lam has envisioned.

The reckoning of the potential opportunities the bay area could eventually provide Hong Kong isn't abstract at all if only we focus on the things which complement Hong Kong's economy and the economies of other cities within the cluster. The biggest complementarity can be found in the supply of land and human resources.

Partly because of land scarcity, a shortage of labor and a lack of diversified talents (other than those in the financial and professional services sectors), Hong Kong so far has failed in its attempt to diversify its narrow economic base. As a result, the city's much-talked-about economic structural transformation, which is considered essential for tackling some of the city's deep-seated social problems as well as maintaining its long-term economic prowess and prosperity, has achieved no meaningful progress yet. These bottlenecks could be readily smashed should Hong Kong tap into the huge supply of both land and human resources in the mainland side of the Greater Bay Area city cluster.

Another hindrance Hong Kong is struggling to surmount in its journey to achieve economic diversification is that the city relatively lags in technology and innovation development in areas other than international finance. Shenzhen, a well-known cornucopia for innovation and technology talents, would offer Hong Kong an expedient solution for this problem should the two forge closer ties and cooperation under the bay area framework.

Of course, Hong Kong also has much to offer in the making of a great city cluster in the Pearl River Delta region. The city still enjoys competitiveness as an international financial center unrivalled by any mainland city. The city still has a distinct edge over all mainland cities when it comes to interacting with the rest of the world. All these edges make for a "super-connector" role. By aptly positioning itself and playing a suitable role in the city cluster project, Hong Kong will give full play to its competitive advantages while tapping into the complementary strengths of the partner cities to the benefit of all.

(HK Edition 10/10/2017 page10)