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Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, shared about the Hong Kong economic policies in an interview with EDigest. He pointed out that Hong Kong's economic "upstream" faces numerous issues, such as loans, rent, and raw material supply. These factors have kept the operating costs high for "downstream" businesses. Resolving these problems in a society that upholds small-government free-market principles is undoubtedly a tremendous challenge.

Carolyn Wright speaks with Professor Heiwai Tang, Associate Dean at HKU Business School in part one of a two part discussion about their recent Green Paper on accelerating Hong Kong’s economic growth.

本港稅基狹窄，較易受經濟周期性影響，有意見指港府應全面檢視稅務制度，擴闊稅基。港大經管學院副院長（對外事務）、馮國經馮國綸基金經濟學教授鄧希煒認為，當本港經濟環境改善，便應研究開徵消費稅，可考慮以1%至2%起步，相信市民有能力負擔，並探討是否針對部分消費項目及徵收的對象。

Over the past five years, the Greater Bay Area has demonstrated remarkable economic resilience, achieving steady growth despite the setback from pandemic and global uncertainties. The region's GDP has consistently expanded to over 13.5 trillion RMB, cementing its status among the top 10 economies worldwide. This GDP value places the Greater Bay Area on par with market hubs such as Canada and South Korea. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, shared about the Greater Bay Area's development potential in an interview with Phoenix TV. While GDP has risen, collaboration among cities has not been as close as expected earlier due to the pandemic, slowing integration progress. However, Prof. Tang expressed confidence that by strengthening cross-border partnerships, leveraging cities’ unique capabilities, and creating synergies, the region can tap vast economies of scale and unlock ample opportunities. In terms of talent visa, Professor Tang emphasizes the importance of seamless connectivity between Hong Kong and the Greater Bay Area. He believes a cooperative environment that welcomes global talent will continuously invigorate the region with fresh perspectives and ideas, propelling the region’s development forward in a sustainable manner.

在亞洲，上海和新加坡的總部經濟發展尤為出色。上海利用其在製造業、科技和物流方面的優勢，吸引如美國特斯拉（Tesla）、德國博世（Bosch）、日本三井住友銀行（Sumitomo Mitsui Banking Corporation）、英國阿斯利康（AstraZeneca）等國際業界龍頭在當地建立總部。新加坡則積極實行人才新政和創新，以驅動發展。

Developing Headquarters Economy brings in new industries and high value-added economic activities, along with diverse talent and investments. Hong Kong has a robust legal system and business environment, and it serves as an important gateway for China, a market with a population of 1.4 billion, to access the global market. However, there are only 1,336 corporate headquarters, which is just 30% of Singapore's figure.

After 3 years of the pandemic, Hong Kong's economy is still struggling to recover, despite supportive government measures. Professor Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, gave an interview to HKET iMoney and mentioned that over the past three years, Hong Kong has been lagging behind in terms of competitiveness and the quality of service industry. On the contrary, mainland China and neighbouring countries invested and improved on infrastructure quality and digital economy development. Furthermore, there is a decline in the quality of service in the retail and restaurant sectors, resulting in public dissatisfaction. Combined with cautious consumer spending due to the economic downturn, Hong Kong residents are more inclined to spend their money in neighbouring regions to seek better services and experiences. This preference for spending elsewhere further hampers the recovery process. Other interviewees believe, as the economy gradually recovers after the pandemic, businesses should consider adapting to market demands by adjusting their production and operational models, or even transforming their business strategies. Such proactive, solutions-oriented mindset will undoubtedly help mitigate risks and increase profitability. Additionally, the government should expedite the approval process for funding initiatives for SME, thus accelerating the process of productivity enhancement and the market explorations beyond Hong Kong.

Due to the aforementioned socioeconomic issues faced by the city, among other reasons, hundreds of thousands of Hong Kong’s working-age population and their families have emigrated abroad. Simultaneously, hundreds of thousands of people, some attracted by the Hong Kong government’s ambitious talent programs, have arrived in Hong Kong in the past year. What are the implications of these population flows on the city’s labor force and talent pool? Dr. Alan Kwan, Prof. Heiwai Tang, and Dr. Michael B. Wong have analyzed LinkedIn profile data and government statistics to evaluate Hong Kong’s labor market and economic prospects.