Incentives needed to attract best people to Bay Area
The Pearl River Delta has witnessed the most rapid urban expansion in the history of mankind. According to the World Bank, it has become the largest urban area in both size and population on the planet. At its heart lies a strong manufacturing base and a history of international trade. Underlying its development was the central government’s belief in the creation of wealth through a planned and integrated urbanization program alongside the implementation of policies to support the process. This belief has in turn underpinned China’s economic liberalization and reform.
The next phase of development is the Guangdong-Hong Kong-Macao Greater Bay Area. It encompasses the Pearl River Delta and presents a set of complex and new challenges which need to be properly addressed in order to enable the megalopolis to function and operate efficiently.
It requires economic policies that address regulatory harmonization, the removal of administrative barriers and the development and streamlining of integrated systems that enable people, businesses and capital to move freely and operate seamlessly within the Bay Area. The governments of Hong Kong and Macao special administrative regions are working closely with their Bay Area counterparts and the central government to ensure this happens.
The old adage that “success breeds success” is particularly relevant and comparisons are regularly made between the New York metropolitan area, the San Francisco Bay Area and the Tokyo Bay Area. All are economic powerhouses and major contributors to their countries’
continued prosperity and the key to their success is a combination of diversity and consistent innovation. The central government forecasts that GDP in the Bay Area will reach $4.5 trillion in a little over 10 years, increasing almost threefold what it was in 2016.
A local market of some 70 million people in an area which is considered a catalyst for the Belt and Road initiative and which lies within close proximity to important Southeast Asian markets offers a compelling business proposition. A massive range of business opportunities clearly designed to move the area up the value chain will result.
The Guangdong provincial government’s recent release of the suggested implementation paper along with a three-year outline development plan is an important blueprint for the vision of the Bay Area and signals clear intent on the continued prosperity through strong integration, urban planning, clear direction and a pathway for development.
Hong Kong’s immediate role lies in its capability as an international center for financial and professional services, trade, transport, tourism, logistics, shipping, science and technology. Nonetheless in order to compete with other international jurisdictions, strong corporate incentives particularly in the area of taxation will be required to attract important corporations to locate here. A strong focus on the startup community and relevant incubator programs can stimulate organic growth and encourage young entrepreneurs but innovation will be a critical driver across all sectors.
However in order to attract the best people and their families to work and live in the Bay Area, the influencing factors are opportunity, reward and lifestyle. A high standard of living and quality of life underpinned by quality education, housing and healthcare is high on the list of priorities as, of course, is the quality of the environment.
To reach these people and convey a clear message, the Bay Area needs to be strongly branded and tactically promoted to both local and international audiences. Chinese professionals working and living overseas should be encouraged to return, and the concept, the benefits and opportunities of choosing to work and live there need to be clearly conveyed to aspirational high achievers of all nationalities and from all walks of life.
This requires much more than the occasional overseas roadshows which tend to address business or political leaders. It will require a powerful, persuasive and focused marketing program that engages with predetermined target audiences to ensure that people are well-informed, aware of the opportunities, and encouraged to participate and contribute to the development of the Bay Area. A combination of digitization, big data and artificial intelligence are the tools that can enable orchestrated communication of this nature with key national and international influencers.
The people that will have the greatest impact are unlikely to necessarily be those with proved track records in a given area, but a more diverse range of individuals that possess the ability to adapt and grow into increasingly complex and ever-changing roles, which will form the backdrop for the Bay Area in the coming decades.
Employers will need to be innovative in their approach to recruiting top talent and equally innovative in the remuneration packages which should cater for the future development of employees and provide support for the family unit. The net result of employment policies that follow these lines are a more dedicated, loyal and talented workforce. The overall approach to recruitment should be a medium- to long-term goal but one that is inclusive and diverse in its outlook and reflects a value system and standards that become ingrained in the ethos of the Bay Area.
For many people in Hong Kong, future career opportunities will not necessarily lie in North America or Europe, but much closer to home, due to cultural and family roots across the city cluster of the Bay Area. This will also apply to our trading partners around the globe.