HK competitive despite slip

May 24, 2018

Financial Secretary Paul Chan: The World Competitiveness Yearbook has published their ranking this year, and this year Hong Kong has slipped from the previous place 1 to place 2. But we remain to be a very competitive economy because when compared to the one ranking in first, the USA, the scores are very close. In assessing the competitiveness of the economy, they look at four areas. One is economic performance, the second is government effectiveness, the third one is business effectiveness and the fourth one is infrastructure. Our ranking in terms of business efficiency and government efficiency, we still rank number one. In terms of economic performance, as you know, we did very well last year. But in the US last year, President Trump has announced cutting profits tax and also boosting investment in infrastructure. So in terms of business sentiment, the business sentiment in the US according to the surveys with the business sectors there, they rank before us. The second area that we are a little behind is in terms of infrastructure. It is not the usual infrastructure like transportation but technological infrastructure and scientific infrastructure. As you may have seen in the past two years, we have devoted substantial resources in innovation and technology with a view to improve our infrastructure and the ecosystem. We are working very hard on that. We will continue to invest on that and work very hard to enhance the overall infrastructure of Hong Kong in terms of technology, in terms of attracting people, and in terms of building a better ecosystem for the innovation and technology sector.

Hong Kong is still a very competitive economy despite slipping from first place to second in a competitiveness ranking this year.

Financial Secretary Paul Chan made the statement today after the International Institute for Management Development published its World Competitiveness Yearbook 2018, in which Hong Kong was ranked as the world's second most competitive economy, behind the US.

He said Hong Kong scored 99.2 in the report, very close to the US' 100.

Mr Chan said among the four competitiveness factors assessed, Hong Kong still ranked number one in business and government efficiency.

In terms of economic performance, he said Hong Kong did very well last year.

"But in the US last year President Trump announced cutting profits tax and also boosting investment in infrastructure.

"The business sentiment in the US according to the surveys with the business sectors there, they rank before us."

Another area Hong Kong falls behind is infrastructure. However, Mr Chan said the report is not referring to infrastructure like transportation, but technological and scientific infrastructure.

He said the Government has devoted substantial resources to innovation and technology in the last two years.

"We will continue to invest on that and work very hard to enhance the overall infrastructure of Hong Kong in terms of technology, in terms of attracting people and in terms of building a better ecosystem for the innovation and technology sector."