The Positioning of Hong Kong SMEs in Greater Bay Area
“Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” is published in 2019, the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area) consists of the Hong Kong Special Administrative Region (HKSAR), the Macao Special Administrative Region (Macao SAR) as well as the municipalities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing in Guangdong Province (“the nine Pearl River Delta municipalities”), covering a total area of 56,000 square kilometres with a combined population of approximately 70 million at the end of 2017. The Outline combines Hong Kong, Macao and the nine Pearl River Delta municipalities in the Pearl River Delta of Guangdong Province for planning. For scientific research, it is necessary to promote the “Guangzhou-Shenzhen-Hong Kong-Macau Technology Innovation Corridor”.
In the financial aspect, it proposes cross-border finances and listing financing, and position Hong Kong as “International Finance, Shipping, Trade Center and International Aviation Hub”. The nine cities of the Pearl River Delta municipalities, with Dongguan and Shenzhen as center, and will take strategic emerging industries as pilot, and structuring with advanced manufacturing industry, combined with industrial chain of other Bay Area cities to form a strategic emerging industrial cluster.
Hong Kong’s economic development is dominated by financial services, tourism, trade and logistics, as well as professional, industrial and commercial support services. Can Hong Kong take advantage of the development of Guangdong, Hong Kong and Macau’s Greater Bay Area to develop emerging industries? The details of the Outline have yet to be realized, but many Hong Kong SMEs have long been rooted in Guangdong Province for many years and Guangdong Province is the production areas of many enterprises. The current “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” can encourage SMEs and innovative technology companies to develop in the Mainland, jointly promote the development of innovative technology, and at the same time help the transformation and upgrading the traditional production, to achieve effectiveness of production. The Outline promotes the “Guangzhou-Shenzhen-Hong Kong-Macau Technology Innovation Corridor”, which can encourage and support traditional enterprises to transform and upgrade their production, such as including information technology and big data analysis into their product process, to increase production efficiency and overall competitiveness.
Relatively speaking, the tax system in the Mainland is more complicated than that in Hong Kong. Hong Kong enterprises want to develop in Greater Bay Area. Tax would be of great concern if Hong Kong people have to work in Greater Bay Area. The Government has already indicated that it will consider tax subsidies for Hong Kong people to work in the Greater Bay Area. Although the details and technical issues of the Outline have yet to be realized, Hong Kong will play a number of important roles in the industrial chain of Greater Bay Area. Hong Kong enterprises should also be well equipped to meet the opportunities brought about by the development of Guangdong, Hong Kong and Macau.