HK must not rest on its laurels: Chan

Hong Kong still leads the world in the competitiveness rankings and its economy is expected to see more robust growth this year, making it more important for the city to consolidate its advantages and seize the fresh opportunities amid fierce international competition, Financial Secretary Paul Chan Mo-po said on Sunday.

Writing in his official blog, Chan said the SAR recorded the highest year-on-year growth in six years, in the first quarter of this year and, if the momentum is sustained, it may even see better overall economic performance than in 2016.

According to the World Competitiveness Rankings conducted by the Switzerland-based International Institute for Management Development (IMD), Hong Kong has retained it top position among the 63 economies assessed. The topranking countries and regions saw a major reshuffle, with Luxembourg and the United Arab Emirates making it to the top 20 this year, the Netherlands rising to the fifth spot and Sweden slipping to ninth place.

Chan said this shows the intensity of global competition, warning that if Hong Kong slackens, others may soon catch up and surpass the city.

He said Hong Kong’s competitiveness should not be taken for granted and is achieved through the joint efforts of the whole society. To keep its competitive advantages, Hong Kong should strengthen the foundation for economic development, be proactive in seeking new opportunities and stay humble to overcome inadequacies, so that buoyant economic growth can be sustained and people will enjoy better lives.

Also writing in his Sunday blog, Chief Secretary for Administration Matthew Cheung Kin-chung noted that the government had recently approved eight new measures to help people in need, including the elderly, patients, women and low-income working families, and improve their living standards.

Six out of the eight new programs were announced in this year’s Policy Address in January and have been approved after a few months, Cheung said.

The swift approval of these policy initiatives resonate with the IMD rankings, with Hong Kong taking the first place in both government and business efficiency — two of the four major factors assessed by the institute. The other two are economic performance and infrastructure.

Chan said Hong Kong’s pre-eminence in govern- ment and business efficiencies attests to its soft power, including the rule of law, a sound public financing system, simple and low tax rate, a business-friendly environment and a wellrounded financial system. This has earned world recognition, resulting in so many international enterprises choosing to set up offices in the city.

Innovation will be a strong driver for future growth. For the first time this year, the IMD published a separate report ranking the assessed economies’ digital competitiveness. Hong Kong climbed four places to be among the seven most competitive countries and regions with the ability to adopt digital technologies.

The improved ranking is the result of Hong Kong’s efforts in recent years to create an environment that encourages and spawns innovation and creativity, Chan said.