HK should invest more to support its design industry
Updated: 2012-09-20 05:39
By Hong Liang(HK Edition)
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Of all the discussions about making changes in Hong Kong, the only ones that seemed to make any sense were not the suggestions of our bureaucrats, economists or politicians, but rather from a small group of designers showcasing some of their creative works at the mall at the International Financial Center (IFC), the citadel of the city's financial industry.
Perhaps our government bureaucrats are long on paper work but short on vision; those politicians, who behave like robots, programmed either for or against the government; and the band of economic and social analysts, who are prone to stating the obvious at all times, should try to learn something meaningful by visiting the creative exhibition opening this Thursday. It would do them some good to listen to the aspirations and needs of the designers upon whose creative talent the future of Hong Kong may depend.
We have all heard about the wrongs that the unbalanced economy has done to our lives. Standing on just two pillars - finance and property - the wobbling economy is constantly buffeted by heightening social stresses arising from the widening wealth gap between the minority haves and the majority have-nots.
The obtrusive concentration of wealth and capital in the hands of a few has dimmed the hopes of many middle-class families and roused their anger as they experience a decline in real income, deteriorating job prospects and diminishing opportunities to start new businesses. What's worse, escalating property prices have put the Hong Kong dream beyond the reach of more and more middle-class families.
In the face of seething public discontent, the new Chief Executive earlier this month outlined a plan to increase the supply of affordable housing for families with monthly incomes below HK$40,000. Although his proposal was widely welcomed, it does not address the key economic issues that have created the social tension.
Many economists and some politicians have emphasized the importance for Hong Kong to remain relevant to the mainland's economic development. Although none bothered to provide specifics, Hong Kong's economy has been evolving in a similar direction. Its financial markets, for instance, are a major source of capital for many mainland enterprises and Hong Kong has invested heavily in infrastructure to facilitate the integration with the neighboring regions.
But the problems we face now show that Hong Kong needs something more than just staying relevant. It needs more diversity in the make-up of its economy.
Of course, there is no way to bring back the large-scale, labor and land intensive manufacturing industries. But the government can spend public funds to nurture high value-added industries that focus on design and innovation, and some economists insist that's what the government should be doing.
So far, Hong Kong-based designers, including many who have moved here from overseas, are doing mainly contract work for mainland enterprises designing their products. Product designer Dennis Chan, one of the exhibitors at the IFC show, is quoted in South China Morning Post saying: "(Many) foreign brands and corporations want to get into China, and I think they have realized that design is one of the keys to success (in that market). Designers in Hong Kong are here to bridge the gap. They understand Chinese culture, (while being) also very international."
But Hong Kong's design capability has largely been ignored by the city's own entrepreneurs who find it easier and quicker to make money trading in financial instruments or properties. To them, the wait for the return on investment in product development is just too long.
Sitting on a huge fiscal reserve, the government has ample resources at its disposal to set up a special fund to invest in new and promising ideas produced by local designers, to help them grow into profitable businesses. There seems to be no shortage of design talent in Hong Kong. But only the government can take the initiative by kicking off a program that will exploit this talent for the benefit of the city. Private sector investors will follow once they see there is big money to be made.
The author is a current affairs commentator.
(HK Edition 09/20/2012 page3)