Hong Kong’s five-year plan to retain capitalism, uphold ‘one country, two systems’ principle
A long-term plan could give businesses greater certainty over the government’s priorities and more confidence to invest in the mega-project, according to analysts.
FILE PHOTO: Shoppers admire the financial Central district skyline of Hong Kong, China July 9, 2015. REUTERS/Bobby Yip/File Photo
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HONG KONG: Hong Kong will unveil its first five-year plan on Wednesday (Sep 16), marking a shift towards longer-term policymaking as it sets out development priorities through 2030.
But the city will retain its capitalist system even as it seeks closer alignment with the mainland, Chief Executive John Lee said on Monday.
For years, the Hong Kong leader’s annual policy address has been the government’s main platform for setting out its priorities and new measures.
This week, it will be accompanied by something new – a five-year roadmap covering areas from finance and technology to housing, regional integration and the Northern Metropolis.
LONGER-TERM PLANNING
Lee has said the five-year plan will set Hong Kong’s strategic direction, while each annual policy address will spell out measures, track progress and adjust policies to changing conditions.
The plan is being drawn up alongside China’s 15th Five-Year Plan and covers the same period.
Lee said the city will continue to uphold the “one country, two systems” principle.
Christine Loh, chief development strategist at the Hong Kong University of Science and Technology, said longer-term planning also requires Hong Kong to consider how the world could change over the next 10 to 20 years, and what infrastructure and talent the city will need to prepare for the future.
Aligning its planning cycle with the mainland could also help Hong Kong identify areas where their development priorities complement each other, she added.
The Northern Metropolis is where Hong Kong’s five-year ambitions could become most tangible.
The government wants to transform land in the city’s north into a new economic hub for technology and innovation, on Shenzhen’s doorstep.
The project aims to eventually house 2.5 million residents and provide 650,000 jobs.
It will also be an important test of whether closer integration with the Greater Bay Area can generate new industries and jobs in Hong Kong.
But financing the project will be a challenge.
The government has said it will cost at least HK$224 billion (US$28.6 billion), while global ratings agency S&P estimates the bill could be about 60 per cent higher.
With public finances under pressure, private capital will be critical.
GREATER CERTAINTY
Analysts say a five-year plan could give businesses greater certainty over the government’s priorities and more confidence to invest in the mega-project.
Kenny Shui, vice-president of think-tank Our Hong Kong Foundation, said it has traditionally been difficult for the private sector to anticipate how such long-term developments will unfold.
“But with the five-year plan, I can set up different goals, different targets, and also see the progress, so that I can further adjust my resources there,” he added.
A long-term plan will also require different parts of the government to work towards common goals.
“The plan probably will cover population, housing, innovation, technology, finance. But all are managed by separate bureaus, which means they operate in silos,” said Shui.
“So I think the Hong Kong government needs to devise something like integrated outcomes, because these areas require coordination.”
Another challenge is whether the city’s traditionally generalist civil service has enough specialist expertise in areas such as technology and green development, Shui said.
While a five-year framework provides a longer planning horizon, officials will also need flexibility to respond as markets and technologies change.
Source: CNA/ca(oc)
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