Digital economy and sustainable growth the shape of things to come
Grenville Cross says summit shows tech is empowering both private and public sectors
The Digital Economy Summit 2024 (DES) was held at the Hong Kong Exhibition and Convention Centre on April 12 and 13. It was jointly organized by the Hong Kong Special Administrative Region government (Investment, Technology and Industry Bureau and the Office of the Chief Information Officer) and Hong Kong Cyberport, and supported by the China Internet Development Foundation (CIDF).
Before the COVID-19 pandemic, the event — then as now a trailblazer — was known as the Internet Economy Summit, and it was revived in 2023 as the DES. The name change reflected the online and offline capabilities associated with a digitized economy, given that the internet economy focuses on using online technologies or the internet, and is basically a subset of the former.
This year’s DES theme was “Smarter Technovation for All: Forging a Sustainable Future”. It provided policymakers, business leaders, industry pioneers, innovators and technology professionals with a forum to exchange ideas and develop their thinking on the way forward.
Apart from examining the use of technology to reshape the digital economy, the DES considered how to ensure a sustainable future. Although the term is often bandied about with little analysis, sustainable development involves harmonizing economic growth, social inclusion and environmental protection. These are essential for the welfare of individuals and societies, and Hong Kong is committed to the fulfilment of all three.
The DES was undoubtedly timely, as the digital transformation that the global economy is undergoing is proceeding at full throttle. The leading international accounting firm, Deloitte, has said the “backbone of the digital economy is hyperconnectivity”, meaning that people, organizations and machines are closely connected. This can arise through the internet, mobile technology or the internet of things, which connects the digital and physical worlds by collecting, measuring and analyzing data to predict and automate business processes.
One obvious consequence of a digitalized economy is that it challenges traditional practices, including how businesses operate, how companies interact and how consumers obtain services, information and goods. For example, the digital economy news site, TechCrunch, has explained how “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. … Something interesting is happening.”
When people discuss the digital economy, they have in mind what Deloitte calls “economic activity that results from billions of everyday online connections among people, businesses, devices, data and processes”. Although this can benefit mankind, it has to be properly channeled. At the DES, therefore, there was detailed consideration of how innovative techniques and the latest technology are reshaping the urban landscape and the digital economy, from the perspectives of sustainability, connectivity and resilience.
In his opening remarks, the financial secretary, Paul Chan Mo-po, said, “The digital economy has clearly emerged as a new driving force for global economic development” and pointed out that China is “a leader in this respect”. He disclosed that, this year, Hong Kong will create a high-powered office to devise policies to digitalize the local economy, promote smart-city development and provide greater connectivity with the Chinese mainland. If more digital services are created, people and companies will undoubtedly use them, and the development of the digital economy will be facilitated by the 50 trillion yuan ($6.91 trillion) digital market just across the border.
Hong Kong needs to step up to the plate by unleashing its potential, and this will ensure it does not miss out on the economic rewards that await the intrepid. As Chan explained, “Hong Kong must move fast to stay ahead of the game”, and he identified 12 core recommendations for Hong Kong’s digital economy. The recommendations, some already in train, are broad-based. They are designed to strengthen digital infrastructure, facilitate the local and crossboundary flow of data, expedite digital transformation, and develop a sustainable talent policy.
Chan highlighted the importance of encouraging public and private sector organizations to share their data as part of his strategy. The Commercial Data Interchange (run by the Hong Kong Monetary Authority) will be extending its ambit to enable expanding businesses to secure loans by consenting to share data with partnering banks. This initiative is already up and running, and, by the end of 2023, it had facilitated over 13,000 loan applications, collectively worth about HK$12 billion ($1.53 billion).
As Hong Kong operates under the “one country, two systems” governing policy, it enjoys unique advantages when it comes to data trading. This includes what Chan called “unfettered access to international data”, a significant aspect of its global connectivity. In 2023, moreover, Hong Kong signed a memorandum of understanding with the Cyberspace Administration of China, and the parties agreed to promote the cross-boundary flow of data in the Guangdong-Hong Kong-Macao Greater Bay Area. This process is also underway, and the plan now is to take the exchanges to a higher level.
Thus, the deputy director of the Cyberspace Administration of China, Wang Song, highlighted the need to make the most out of data as a key step in developing a digital economy. He said he looked forward to greater collaboration between the two jurisdictions, which would include the facilitation of “more practical cooperation projects to make digitization part of the industrial supply chain” and the promotion of the “interconnection of digital economy infrastructures”.
The DES attracted a galaxy of talent, and there were visions aplenty. Whereas, for example, the mayor of the Hefei Municipal People’s Government, Luo Yunfeng, explained how Hefei had successfully harnessed technological innovation to drive high-quality development, Huawei’s Global Cyber Security and Privacy Protection Officer, Sean Yang Xiaoning, focused on how to construct a collaborative and trustworthy digital environment. While the president of Alibaba Group (Strategic Development), Chris Tung, provided insights on how to develop a better future by deploying cloud technologies and artificial intelligence (AI), the chief operating officer in the Asia-Pacific, Japan and China Region of Cisco Systems, Fernando Gil de Bernabe, explained how innovation could be achieved in a way that ensured a securely connected future.
On the DES’ second day, the Smart Finance Forum focused on smart-city development, and the audience was provided with insights into how smart-city initiatives enhance the quality of urban life and a more sustainable environment. There were frank discussions about digital payments, AI, green finance and central bank digital currencies. New perspectives were exchanged on policies, regulatory frameworks and green investment opportunities, and these were often enlightening.
In his speech, the deputy financial secretary, Michael Wong Wai-lun, explained how “transformative potential could be unleashed in Smart Finance, where digital innovation and the financial industry converge”. He highlighted the government’s initiatives in the “three key areas of fintech, international green finance center, as well as green fintech ecosystems”. These, he said, demonstrated its commitment “to embracing innovation, promoting sustainable finance and developing the digital economy”.
The DES also highlighted Cyberport’s successful promotion of Hong Kong as an international hub for green technology and finance, thereby helping to consolidate the city’s status as a superconnector. Its chairman, Simon Chan Sai-ming, explained that the “acceleration of sustainable finance also serves to support the transition to net zero carbon goals in Hong Kong and beyond, consolidating the role of our city as an international greentech and greenfinance hub”. He said that Cyberport would continue its collaboration with “industry, academia and research sectors to take our green commitments forward through financial innovation,” and his positivity resonated with the audience.
The DES attracted over 4,000 participants, some virtual. In a nice gesture, the second day was opened up to tertiary and secondary school students, for the first time. They must have found it a real eye-opener, and they will have acquired, at first-hand, an appreciation of how a smart city operates.
As the DES demonstrated, Hong Kong is committed to using technology intelligently, but also in a safe way. Digital transformation is accelerating the development of the private and public sectors, meaning technology is empowering them both. As every effort is made to digitalize the economy and promote connectivity, the objective remains a sustainable future. After the DES, the way forward will be clearer, and this will benefit everybody in Hong Kong.
The views do not necessarily reflect those of China Daily.