Hong Kong ranked the 9th place in the international LPI (Logistics Performance Index) global ranking in 2016, according to the World Bank, implying the level of infrastructure market in the corresponding economic markets; furthermore, Hong Kong ranked the first place in Global Competitiveness Report held by the World Economic Forum, thanks to its ranking to superb road, port and air transport networks[i].
The infrastructure market in Asia Pacific is expected to grow 7 to 8% a year over the decade, reaching US$ 5.36 trillion a year by 2025 representing 60% of the world total[ii], representing an incessant growth in the infrastructure market in Asia Pacific, while where Hong Kong is the hub of it: Hong Kong offers one of the world-class business infrastructures including efficient and convenient local and regional transportation, advanced world class connectivity and telecommunications, world-leading sea and air cargo system, etc. [iii] While the infrastructure sector has always been regarded as one of the pillar industries in Hong Kong that drives the sustainable growth of the local economy [iv] and therefore enhance the competitiveness of Hong Kong globally.
In mature economies, the infrastructure market is not only about transportation and telecommunication; the social infrastructure is an important aspect in an aging economy like Hong Kong. Unlike the emerging market, infrastructure in mainland China, even though facing aging problems soon, Hong Kong is relatively a mature market which is relatively more urged to reconstruct and re-establish the inefficient and old facilities, but in the same time, the continuous economic growing has brought the increment of demand for new transport or/and utilities infrastructure.
In response to One Belt One Road and for Hong Kong to have the support across the political spectrum, Hong Kong government has set to join the AIIB (Asian Infrastructure Investment Bank) with 1.2 billion HK$[v] with five annual instalments of HK$ 240 million as the successful implementing of One Belt One Road requires bilateral and multilateral cooperation for policy coordination to develop and connect infrastructure, increase trade and investment, etc. (China has set up several bilateral and multilateral development institutions to facilitate this, including – amongst others – the Asian Infrastructure Investment Bank (AIIB)[vi]). Hong Kong, as a financial hub, has expressed its willing to become the region´s major fund-raising and financial platform with the context of OBOR (One Belt One Road), in particular in light of its new membership with AIIB[vii] for infrastructure market in Hong Kong. The future lies good for Hong Kong.
[i] World Economic Forum
[iii] Invest HK, the government of the Hong Kong SAR
[iv] HSBC (The Hongkong and Shanghai Banking Corporation Limited)
[v] South China Morning Post
[vi] Financial Services Business Council (FSBC) of the European Chamber of Commerce in Hong Kong
[vii] The Government of the Hong Kong Special Administrative Region Press Releases – Hong Kong to Become New Member of Asian Infrastructure Investment Bank