Hong Kong faces a pressing need to redefine its approach to innovation and risk. To thrive amid evolving global dynamics, the city must embrace a shift away from the pervasive fear of failure that is stifling creativity and curtailing risk-taking, hindering the potential of individuals and businesses alike.
In a world where betting on oneself has become the cornerstone of value creation, Hong Kong must foster a climate that encourages bold decisions and recognises the educational value of setbacks.
Consider Elon Musk’s audacious journey with electric vehicle maker Tesla, whose shareholders recently awarded him a historic US$56 billion payout – emblematic of the rewards tied to unwavering self-belief against staggering odds.
In Hong Kong, Li Ka-shing’s journey from a plastic flower factory to a global business empire, through calculated risks during economic downturns, illustrates the transformative power of embracing potential where others see peril.
Similarly, Lalamove founder and former professional poker player Chow Shing-yuk’s willingness to bet his entire real estate holdings on a start-up created a revolutionary freight and logistics business. His Lalatech Holdings is seeking what is expected to be a major public listing in Hong Kong.
These inspiring stories are a call to action for Hong Kong to embrace systemic change in its perception and management of failure.
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How Li Ka-shing became Hong Kong’s richest man
How Li Ka-shing became Hong Kong’s richest man
This change is urgently needed amid Hong Kong’s waning role as China’s financial gateway. The city’s once-celebrated position as Asia’s premier international arbitration centre is also being overshadowed by Singapore, as geopolitical shifts prompt international firms to seek dispute resolution elsewhere.
These developments signal a critical juncture: Hong Kong must reassess its strategic advantages. The city should adopt a balanced perspective and view its future through the lens of pragmatic realism, acknowledging both its formidable assets and significant challenges.
Hong Kong is grappling with a property downturn, with over HK$2.1 trillion (US$270 billion) lost since 2019, reflecting a crisis of confidence. It also faces a retail crisis with the incursion of online retailers and the allure of a cheaper and better time across the border, as seen from a record 9.3 million residents leaving in March, the month of the Easter holiday, mostly on trips to the mainland.
Amid these challenges, Hong Kong still boasts world-class education, top-tier medical facilities, private property protection, a simple taxation system and a strong legal framework. The critical question is whether these assets are enough to prevent a talent drain and maintain competitiveness in a rapidly changing world.
The establishment of Hong Kong Investment Corporation (HKIC) is significant in addressing these challenges. The government-owned investment fund can spearhead substantial economic transformations by harnessing and deploying substantial funds.
Insights can be drawn from Singapore’s sovereign wealth fund GIC and its investment company Temasek Holdings, which have strengthened Singapore’s financial clout and fostered a strategic ethos of risk-taking and global investment.
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Why Singapore benefits from the US-China tech war
Why Singapore benefits from the US-China tech war
Temasek and GIC exemplify how robust strategic frameworks and calculated risks can dramatically shape the economic trajectory. HKIC must not merely manage resources but actively generate wealth, elevating Hong Kong’s global profile.
By betting on itself through HKIC, Hong Kong can activate a bold, self-reinforcing cycle of investment and innovation. This approach not only embraces and leverages failures but also positions the city to capitalise on new opportunities.
This aligns with Hong Kong’s ambitions in emerging sectors such as fintech and Web3, demonstrated by its use of regulatory sandboxes, which allow businesses to experiment in a controlled, risk-free environment.
Hong Kong’s approach to attracting events also needs revitalising. The failure to draw Taylor Swift’s Eras Tour underscores the need to move beyond traditional tactics. The record-setting concert by Cantopop icon Andy Lau on Douyin, which drew 350 million viewers, shows how digital platforms are redefining what a world-class event looks like.
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Cantopop: a genre for Hong Kong that went global among music lovers
Cantopop: a genre for Hong Kong that went global among music lovers
Moreover, the trend of residents preferring to spend money in Shenzhen must be countered by more innovative local businesses. By encouraging a climate of risk-taking and experimentation, Hong Kong can rejuvenate its local markets, offering distinctive experiences and enhancing vibrancy.
Hong Kong can redefine its global allure and economic vibrancy. By championing a resilient mindset that thrives on creativity and risk, and leading by example, the city can reclaim its status as a premier global hub. A spirit of adventure in everything – from finance to the fine arts – is crucial as Hong Kong navigates a rapidly changing world.
This isn’t just about surviving; it’s about thriving – transforming challenges into opportunities that not only resonate within our vibrant metropolis but also echo far beyond its borders, reinforcing Hong Kong’s unique position on the world stage.
Jeffrey Wu is a director at MindWorks Capital
