Hong Kong Must Invest more in Digital Economy to Catch Singapore, Mainland China, Chamber of Commerce Boss Warns

Hong Kong needs to substantially increase its investment in technology and the digital economy if it is to catch up with Singapore, mainland China and India in a field that, if neglected, could hurt its standing as an international centre for trade, according to one of the city’s most senior business leaders.

“A key challenge for Hong Kong is that we have insufficient investment in our research and development in technology and the digital economy,” said , CEO of the Hong Kong Chamber of Commerce, at a summit arranged by Metro Radio on Thursday (1/12/22). “Among the developing countries, mainland China is taking the lead in terms of the sum of its investment in technology development and other digital trade research, then second is India which is [not far behind]. Singapore also invests far much more than Hong Kong.”

Leung cited World Bank data showing Singapore’s research and development (R&D) expenditure as a percentage of GDP was 1.9 per cent in 2019, compared with just 1 per cent for Hong Kong in 2020. China invested 2.4 per cent, while the average among developed markets in the Organisation for Economic Co-operation and Development (OECD) was 3 per cent in 2020.

“Even though the Hong Kong government set a goal to increase the ratio to 1.5 per cent in 2022, Hong Kong is still some way behind Singapore,” he said.