Hong Kong’s Vision for the Northern Metropolis
The chief executive’s 2025 policy address emphasized that the Northern Metropolis is more than just a land initiative; it is being positioned as a central platform for industry and innovation-led growth. Innovation secretary Sun Dong has stressed that the government is committed to developing an international innovation and tech ecosystem in the Northern Metropolis. This aligns with the broader vision of “finance in the south and innovation in the north.” If Hong Kong wants to turn promising start-ups into globally competitive unicorns, it must move beyond rhetoric to focus more on industrial ecology.
This means attracting anchor enterprises. Unicorns rarely emerge in isolation. They grow where start-ups can work with major customers, hire experienced engineers and managers, and plug into supply chains, data infrastructure, and patient capital. Recent debates around the Northern Metropolis have highlighted the need to relax rigid land-use approval so strategic firms can be brought in faster and on terms aligned with long-term industrial value rather than short-term land revenue.
Hong Kong already has some foundations to build on. The city’s artificial intelligence (AI) ecosystem is reportedly home to nine companies. The Hong Kong Investment Corporation has also signalled the right direction by investing in local AI unicorn SmartMore, with its chief executive stressing its drive to help cultivate leading enterprises. These signs are encouraging, but still too scattered to create the density that a true innovation cluster requires.
The Northern Metropolis should therefore be used to connect four elements: frontier research, anchor firms, growth capital, and scale-up space. The emerging innovation corridor in the north offers a practical starting point. The Hong Kong-Shenzhen Innovation and Technology Park holds potential as a cradle, with its incubation programme supporting 108 start-ups. However, the government cannot simply pick winners, but rather build conditions in which winners can grow.
For international investors, the real test of the Northern Metropolis is whether Hong Kong can convert its research strengths and financial depth into a genuine industrial ecosystem. If it can attract a handful of world-class firms in AI, data infrastructure, and advanced manufacturing, local start-ups will have a far better chance of becoming Hong Kong’s next unicorns. If not, the city risks building a new district with the label of “technology,” without the economic transformation it promises.
Why Isn’t the Ride-Hailing Licence Fee Higher?
The government is finally regulating ride-hailing services. The most contested point is the number of permits allowed. But what caught my eye was the proposed annual licence fee for ride-hailing platforms of a measly HK$1.2 million (US$153,163). A simple calculation of the likely revenue of licensed platforms, assuming a booking fee of, say, HK$12 and 120,000 daily trips a year, yields a total of HK$525.6 million.
Bearing in mind that these platforms do not pay MPF (Mandatory Provident Fund) contributions to drivers, I would question why the licence fee could not be adjusted higher to protect the tax revenue of the government. The current policy seems lopsided towards big businesses and against small operators. The government surely owes an explanation to the public.
How Hong Kong Can Reach for the Stars
Lai Ka-ying, a 43-year-old police officer from Hong Kong, became China’s fourth woman taikonaut, as part of the Shenzhou-23 mission launched at 11.08pm on May 24. As a payload specialist, she serves as a role model to aerospace talent looking to pursue careers in Hong Kong. According to the smile curve theory, value added is highest in the upstream (e.g., research and development) and downstream (e.g., marketing) and lowest in manufacturing.
With an aerospace economy, Hong Kong could go from “superconnector” to “super value-adder.” The city’s government should facilitate more R&D projects between business sectors, academia, and finance to commercialise aerospace technology. The Innovation and Technology Support Programme Special Call on Aerospace Technology provided about HK$100 million to six Hong Kong universities for R&D projects. Funding should be doubled in view of the new milestone.
Northern Metropolis planning should take into consideration aerospace-led industrialisation that could benefit the civilian economy in terms of facilities, telecommunications, infrastructure, and other logistic services. Theme parks could feature more amusement rides highlighting aerospace. Small and medium-sized enterprises which produce toys, fashion, and household products could jump on the bandwagon with action figures in spacesuits, monsters from outer space, and innovative utensils influenced by space travel.
Tie-in products could command premium prices under the influence of online KOLs (key opinion leaders) and herd instinct. The low-altitude economy could take off as well, with implications for food and parcel delivery, aerial transport, security drones, and more. Dispute resolution services could also benefit as more conflicts involving satellites, rockets, and other aerial services are likely to be mediated or arbitrated in Hong Kong. All in all, the first taikonaut from Hong Kong gives the aerospace industry a shot in the arm, with likely ripple effects on innovation, urban planning, industry, and commerce.
