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Victor Fung says Hong Kong needs to grow its economic pie while restoring the uneven distribution of income. Photo: Felix Wong

Incoming Hong Kong leader Carrie Lam must focus on world stage, says veteran businessman Victor Fung

He says Hong Kong needs to seize opportunities under belt and road trade plan, and not be too focused on domestic politics

Hong Kong’s incoming chief executive should work to put the city on the global map by seizing the mainland’s go abroad initiative and casting aside political wrangling, says veteran entrepreneur Victor Fung Kwok-king.

Making this call to Carrie Lam Cheng Yuet-ngor, Fung also warned that if nothing was done to reverse the “inward focus” now afflicting the city, it risked “going backwards” or even descending into “a downward spiral”.

In a rare interview, Fung, a respected businessman famous for his reticence, told the Post “Hong Kong needs to work very hard” on its traditional role of being a middleman between the West and the mainland in order to grab the business opportunities from the “Belt and Road Initiative”.

The brainchild of President Xi Jinping, the strategy aims to link businesses through two trade corridors – the land-based Silk Road economic belt in the north, and the maritime Silk Road in the south – spanning over 60 countries. A summit will be held in Beijing this weekend and Hong Kong will send a delegation led by the city leader’s Leung Chun-ying.

A graphic depiction of the extent of the belt and road plan at the Asian Financial Forum last year. Photo: Reuters, Bobby Yi
“We need to be more outward looking, not just [focus] on internal political issues,” he said. “They are important, but are not the only thing in the world.”

The warning from Fung, honorary chairman of century-old listed trading company Li & Fung, came against the backdrop of a politically polarised society and an economy outgrowing its standing as a trading hub and in search of new niches.

Fung’s company has long been involved in global trade, sourcing lower-cost products and exporting them to the developed world for decades. Fung, 71, stepped down as group chairman in 2012 to become honorary chairman and remains active in various public roles and was once even rumoured to be a chief executive candidate in the 2012 race.

Fung, a member of the mainland congress – the Chinese People’s Political Consultative Conference or CPPCC – served on the World Trade Organisation panel on defining the future of trade until 2013 and has been a strong advocate of economic integration between Hong Kong and the Pearl River Delta. He was formerly chief of the Hong Kong Trade Development Council and Hong Kong Airport Authority.

“Hong Kong needs to address the housing issue, I am not oblivious to that, it’s necessary but not sufficient,” he said. “Hong Kong needs to grow its economic pie while restoring the uneven distribution of income.”

Almost one million people out of the city’s population of 7.3 million live in poverty, according to a 2015 government report.

Fung said while Lam worked on the redistribution of income, she should encourage younger people to be more interested in matters beyond Hong Kong, and to visit the mainland and countries under the belt and road plan to see “with their own eyes, and with an open mind and let them decide what is best for them”.
Victor Fung says Hongkongers could launch start-ups in the countries under the belt and road plan. Photo: Felix Wong

He said they could launch start-ups there. “Belt and Road is not a pipe dream,” he added. “It holds a meaning to everyone in Hong Kong.”

The city should also join the Asean-led free-trade agreement, the Regional Comprehensive Economic Partnership, with major countries in the region, he said.

Hong Kong as part of the Pearl River Delta was at the start of the maritime Silk Road, which goes through Southeast Asia, Middle East and Africa, he noted. “[We] should know more about Indonesia or Southeast Asia than other mainland Chinese cities. We need to be more knowledgeable on the mainland and Southeast Asia than any company in the West.”

“Don’t tell me Hong Kong can’t do that,” he said. Its future was tied to having an awareness of going global, but the priorities between domestic issues and external focus were ultimately “up to the new leadership”, he said.

This article appeared in the South China Morning Post print edition as: Carrie lam ‘must push city to be on world map’
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