S’pore, HK eye collaborations on tech start-ups

SINGAPORE — Hong Kong and Singapore, well-positioned to leverage the growing opportunities within Asia as gateways to the region’s two big markets of China and South-east Asia, respectively, are looking to step up collaborations, especially in nurturing a new breed of entrepreneurs in the digital era.

“There are extremely opportunistic partnership possibilities between the two Asian gateways leading into two major markets,” said Mr Teo Ser Luck, Minister of State (Trade and Industry), today (July 24) at the Hong Kong-Singapore Partnership forum.

Proposing a joint launch platform for technology start-ups, he said: “Singa­pore has built an ecosystem for tech start-ups. We don’t believe in just giving grants; what we do is provide an environment to grow and access venture capital and business non-governmental organisations. Our advantage is connectivity to the world.”

“We are already seeing results. The start-ups in Hong Kong are equally innovative and driven. We can try to bring them together and, if we have a Singapore-HK launch pad in Hong Kong as well as in Singapore, where start-ups can jointly work, complement their ideas and use this joint platform as a springboard, we may expect bigger results,” he added.

Highlighting Hong Kong’s focus on entrepreneurs, its Chief Secretary for Administration, Mrs Carrie Lam, said the territory was giving special attention to start-ups supported through various incubation programmes, and not just looking at big investments and job creation.

Turning to Singapore’s achievements and its commonalities with Hong Kong, Mrs Lam said: “Every Singaporean success creates an equal measure of delight and apprehension in Hong Kong — delight in the global triumphs of an economy built on limited space, a modest population and few natural resources beyond a splendid harbour and the will of its remarkable people, and apprehension, as every Singaporean accomplishment raises the bar for Hong Kong.”

“The best competition, to be sure, inspires cooperation. And Hong Kong and Singapore have long been steadfast business partners,” she added.

Total trade between the two economies has grown by more than 40 per cent over the past decade to reach S$61.3 billion last year, making Hong Kong Singapore’s sixth-largest trading partner. As of end-2013, Singapore’s cumulative foreign direct investment into Hong Kong reached S$41.7 billion, making the territory the fourth-largest investment destination for the Republic.

Singapore is also Hong Kong’s largest trading partner within the Association of South-east Asian Nations (ASEAN), which is negotiating a free-trade agreement (FTA) with the territory.

“We have just concluded the fourth round of negotiations in Singapore earlier this week. When completed, the FTA will help deepen ties and boost trade and investment between Hong Kong and ASEAN,” Mr Teo said.

Referring to the 2015 Index of Economic Freedom rankings published by Washington-based Heritage Foundation, in which Hong Kong maintained its top position for the 21st year running, Mrs Lam said: “Despite being the runner-up, Singapore scores higher than Hong Kong on a number of economic freedoms, such as management of government spending, monetary freedom and labour freedom.”

She added that Singapore has done better than Hong Kong in managing labour and land resources. Noting that both cities face similar demographic challenges, such as a shrinking workforce, ageing population and low fertility rate, she said: “In terms of attracting talent from around the world and importing supplementary labour to support the economic development of your nation, Singapore has indeed done an excellent job.”

She also said that while Hong Kong is bigger than Singapore in size, the land reserves built by the Republic through extensive reclamation have addressed a key resource constraint.