I wholeheartedly agree with David Chu's article 'An Asian answer to Silicon Valley' (South China Morning Post, January 8).
Hong Kong is one of the most expensive cities in the world in which to live. As such, it can no longer rely on low-margin manufacturing businesses.
An over-reliance on the service industry, and in particular the finance industry, over-exposes us to the cyclical turmoil of this business. A high-margin, value-added industry is sorely needed.
I can, however, foresee many problems in trying to get this going in Hong Kong, the biggest of which is investment philosophy.
There are relatively few venture-capital firms willing to supply capital to start up businesses in Hong Kong. Here, investors tend to be less patient and demand quick returns.
The speculative fervour that has dominated the local stock and property markets until recently points quite clearly to this problem.