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Government inertia is strangling Hong Kong's can-do spirit

Mike Rowse says new business ideas across different sectors are now routinely rejected in the 'world's freest economy', and our myopic government is to blame

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In Singapore, budget airlines account over 25 per cent of the market. Photo: Reuters

Touring a city while seated on the upper deck of an open-top bus sounds a bit fuddy-duddy, but is actually quite a good way of getting an overview of a destination's major attractions. While thus engaged this summer in London, Washington and New York on vehicles owned by one particular operator, I naturally cast my mind back to when the same company sought to open shop in Hong Kong a decade or so ago.

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The initial reaction of our transport authorities was interesting: you can't have such an operation here, you need a licence and we don't issue licences for such a purpose, our streets are very crowded etc. Sound familiar?

After many months of badgering, and with the support of my old department InvestHK, eventually there was a change of heart and some licences were duly issued to our client, the Big Bus Company. Hong Kong thus escaped the ignominy of being the only major tourist destination not to permit such an operation.

Which brings us to the case of Uber. I will not dwell long here because the subject has already been covered by just about every other columnist and there has been overwhelming public support for the American company, notwithstanding its typically brash ways. Uber built a better product and local consumers voted with their feet, and their wallets.

But while Singapore was examining its licence regime to see what changes were needed so that consumers there could enjoy the service, the authorities here were busy organising raids on the company's office, arresting staff and some participating drivers. To hell with what the customer wants, they seem to be saying, we must protect the interests of taxi licence holders.

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It is not only in land transport matters that Hong Kong has been slow to welcome new products and services. Take the case of Jetstar Hong Kong, recently refused a licence to operate by the Air Transport Licensing Authority.

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