MR CHAN KIN-POR (in Cantonese): In light of the rapid development of technology, the development of innovation and technology in the next decade, in particular artificial intelligence, will bring dynastic changes to our economy and life in a fashion similar to the industrial revolution which released immense productivity to the world. Therefore, as we can see, various places over the world, including Japan, South Korea, Taiwan, Singapore and the Mainland, are all endeavouring to develop new technologies. They not only engage in innovation and technology, but also strive to promote re-industrialization with the help of technology. In comparison, Hong Kong has had a late start and slow development, indeed falling way behind the major international trend.
The structure of industries in Hong Kong economy is seriously lopsided, relying heavily on such pillar industries as finance, professional services, etc., while not many other industries have achieved success. Hong Kong is living off its past gains and so young people do not have the opportunity to move upwards, and this is the main reason for general grievances in society. Moreover, it is doubtful if we can still live off our past gains in the event of a large-scale reform of the global economy. Therefore, for the sake of the long-term development of Hong Kong, the promotion of the development of innovation and technology should brook no further delay.
In 2015, we endorsed the establishment of the Innovation and Technology Bureau in a meeting of the Finance Committee. As the Chairman of the Finance Committee, it was the first agenda item for which I cut off the filibuster. I often wonder if the Legislative Council passed the motion when the Government first proposed the establishment of a Technology and Communications Bureau in 2012, how would the environment for innovation and technology be in Hong Kong now? The opposition camp filibusters at any rate. It takes a long time for the harm they have inflicted on Hong Kong to surface, but it will be too late then. We have already wasted some years. Now I just hope that the new-term Government can have the room to spread its wings and catch up with the trend.
I believe the Secretary has made a comprehensive plan, but to implement the plan, we must create a desirable environment by, among others, amending outdated legislation and at the same time changing our outdated mindset. The Government used to follow the policy of positive non-intervention, or the “big market, small government” policy at the later stage. It means that the Government would only create a favourable business environment, without taking the lead to promote development of industries nor actively attracting investments, which is a most passive approach. These practices are outdated. Our competitors around us, such as the Government of Singapore, often take the initiative to strive for investment from companies all over the world, thus attracting many overseas companies to set up branches then.
I hope the new-term Government will no longer wait for a stroke of luck and also the Financial Secretary and the Secretary for Innovation and Technology can make bold moves to proactively solicit investments in Hong Kong from multinational innovation and technology enterprises, so as to promote the development of the local innovation and technology industry. As a matter of fact, in recent years, many technology enterprises in the Mainland have achieved considerable success. Some of them have even made a name for themselves internationally, including companies trading in mobile phones, mobile phone parts and mobile games, and engaging in electronic commerce, etc. Some of them are listed in Hong Kong and maintain a strong connection with Hong Kong. If we can introduce favourable policies or more tailor-made support services, we may attract more companies to Hong Kong. In the long run, it may create new horizons for the innovation and technology industry in Hong Kong and even drive the development of our re-industrialization.
We ought to understand that the innovation and technology industry definitely brings new opportunities to young people in Hong Kong. According to a media report, an internationally renowned mobile phone company in the Mainland has hired 170 000 employees whose annual salary per capita amounted to RMB800,000 two years ago. It was estimated that 10 000 employees earned more than RMB1,000,000 a year. If the report is true, the situation is astonishing. Therefore, I consider it worthwhile to formulate favourable policies to strive for investments in Hong Kong from Mainland innovation and technology enterprises, so as to enhance Hong Kong’s competitiveness and build a better future for our young people.
Another salient point made in the original motion is to change outdated legislation, that is to remove regulations and restrictions for the development of innovation and technology. In recent years, with Internet technology growing mature, the business model of sharing economy has gained increasing popularity. While certainly offering great convenience to consumers, it may cast a strong impact on the original operators in the same industries, especially those who have made long-term investments in the industries. Mr YIU Si-wing pointed out in a question he asked last month that some people operate, through sharing economy platforms, unlicensed guesthouses, posing unfair competition to the hotel industry.
In my view, the development of innovation and technology is very important. Regulations and restrictions can be removed when necessary, but on the premise that it is legal and reasonable. Moreover, a balance must be struck among the interests of various stakeholders while not violating the spirit of contract. If legislation is changed to allow some industries which originally require licensing, such as the hotel industry or taxi trade, to be operated on sharing economy platforms, law-abiding operators will, as a result, face unfair competition and encounter great difficulties in running their business. Also, unlicensed operators are not subject to any regulation, thus rendering consumers not protected.
Lastly, I hope the Government can inject more resources into the development of financial technology because, after all, the finance industry is the cornerstone industry of Hong Kong. At present, the international finance industry is developing towards application of technology. We must waste no time and catch up in order to maintain our status as an international financial centre. At the same time, the Government should devise a comprehensive plan because the development of technology will definitely reduce manpower demand. Therefore, while developing financial technology, consideration must be given to how best to assist surplus workers so that they will not be sacrificed by the development of financial technology.
I so submit.