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Letters | Hong Kong, hammered by the coronavirus and protests, must look to the Greater Bay Area for economic growth
- Closing borders is not the solution as it only creates panic. Macau has managed to contain the spread of the virus without a border shutdown
- To reboot its flagging economy, Hong Kong must rise to its role as innovation hub in the Greater Bay Area
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Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor has now closed 10 out of Hong Kong’s 13 border crossings with the mainland to curb the spread of the new coronavirus. Unfortunately, the partial shutdown has not worked well. The total number of cases in Hong Kong has risen to at least 65. In Macau, the government successfully contained the spread of the virus without a border shutdown.
Closing the border creates panic and the illusion of a supply shortage. A rumour of a shortage of household items has caused people in Hong Kong to stockpile goods, with long queues forming outside grocery stores and supermarkets. The market has responded by increasing the price of these items, further igniting fear.
If such negative signals spread to the financial sector and other parts of the economy, we will have an economic crisis on our hands soon.
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In fact, due to the political divide and social unrest last year and the coronavirus crisis this year, the financial sector foresees an unstable business environment. The city has almost no traditional industries, partially due to the high labour cost and rents.
Hong Kong currently imports over 70 per cent of its portable water supply from Guangdong province and imports over 20 per cent of its electricity needs from the mainland. Given the city’s lack of independent resources, its development could easily stall.
The Chinese government’s development outline for the Greater Bay Area is an opportunity for Hong Kong. The region has a population of about 70 million and gross domestic product of about US$1 trillion, higher than that of New York metropolitan area.
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