A recent announcement by the Hong Kong government of the planned allocation of up to HK$500 million ($64 million) to upgrade 200 public toilets has sparked a comparison between the filthiness of Hong Kong public toilets and the cleanliness of the ones in Singapore.

While it is anybody's guess where the Sino-US trade row is heading, we are now quite sure it has taken a significant toll on Hong Kong. Due to weaker growth in both domestic demand and exports, Hong Kong's year-on-year GDP growth in real terms in the first quarter of 2019 slowed down to only 0.6 percent - the lowest in a decade. The import and export of goods and port container throughput, which are most susceptible to the trade conflict, suffered a further decrease as well. Total exports of goods dropped by 4.1 percent while the imports of goods decreased by 4.6 percent. The port container throughout recorded a decrease of 7.9 percent in May. In fact, the trade war has a similar effect on other export-oriented economies, such as Singapore, whose economic growth slowed down to 1.3 percent in the first quarter and Shanghai, whose growth eased to 5.7 percent.

Political disputes arising from the proposed extradition law amendments have only added to Hong Kong's woes. While its effect on long-term economic development is still unclear, social discord has had an adverse impact on Hong Kong's business environment and international image. Therefore, it is imperative that Hong Kong get back on track soon. That means the community should now refocus on economic development and livelihood issues.

Underpinned by a strong port and maritime sector, Hong Kong remains one of the predominant international shipping centers. And the shipping sector continues to play a significant role in our overall economic development. Thus, there is every reason for Hong Kong to further develop this sector.

I recently visited Shanghai along with other members of a Hong Kong Shipowners Association delegation. The trip included visits to the Shanghai municipal government, the Pudong district and Hongkou district governments, as well as shipping associations, research institutions and corporation headquarters. Coincidently, the Shanghai government announced a new batch of initiatives for further reform and opening up with the objective of achieving high quality development in Pudong district. Therefore, I had the opportunity to better understand Shanghai's strategic planning for the development of its shipping industry and explore the possibility of cooperation between Hong Kong and Shanghai on shipping in the future. One of the initiatives is to enhance the global competitiveness of Pudong's high-end shipping service sector. This is with the aim of developing Pudong into an international shipping management center by strengthening system innovation in the areas of ship registration and management, shipping insurance, maritime arbitration and so on. The initiatives are also aimed at turning Pudong into a financial leasing industry center, headquarters economy center and international professional service industry center.

There are bright prospects for Hong Kong and Shanghai, both among the top-10 busiest container ports in the world, to cooperate in the area of shipping in future.

The Shanghai trip has deepened my belief that China is capable of sustaining two international shipping centers, given its huge economic capacity and relentless efforts to promote the Belt and Road Initiative; there is also huge potential for cooperation to be explored and tapped by the two cities. Thus, the governments and business sectors of the two cities should keep looking at how to learn from each other in the area of shipping, to put into their respective advantages to good use. This will help to establish them as shipping platforms of China, to participate in global competition.

Chief Executive Carrie Lam Cheng Yuet-ngor said in her first Policy Address in 2017 that the SAR government would proactively play the roles of a "facilitator" and "promoter". Indeed, over the past two years, the SAR government has launched a series of measures to provide convenience to the shipping industry, including upgrading the service of the Hong Kong Shipping Register, making full use of the Hong Kong Economic and Trade Office in foreign countries and on the Chinese mainland to provide quick services to shipowners, in order to allow Hong Kong-registered vessels to embark on their journey soon. Moreover, the SAR government has injected an additional HK$200 million into the Maritime and Aviation Training Fund to sustain and enhance existing training schemes and scholarships and to launch new initiatives for the maritime sectors. This is to gradually build up a vibrant, diversified and competitive pool of shipping professionals and technical personnel. In addition, in order to promote Hong Kong's development in the area of ship financing and maritime insurance, preferential tax measures are gradually confirmed. All these measures reflect the SAR government's responsiveness to the demands of the industry.

In mid-November, the government will organise the fourth "Hong Kong Maritime Week", which the Hong Kong shipping industry has already started preparing for it. There are about 40 proposed activities, covering finance, insurance, port, logistic, legal, technical, cultivation of talent and other areas related to the shipping industry. The Maritime Week is a unique platform for Hong Kong to present its shipping industry. It will be held about one month after the chief executive delivers her policy address for this year. The SAR government, as an organizer of the event, should make use of the opportunity and, through organizing different activities, demonstrate and explain the measures regarding shipping industry development as suggested in the policy address. It should also listen to opinions and suggestions of different stakeholders, work together and formulate a visionary, outstanding and comprehensive development strategy soon.

The business and professional service sectors, including the shipping industry, hope the SAR government will put in more effort to play its "facilitator" and "promoter" roles after settling the dispute over the extradition law amendments. In the face of an unstable global economy, unclear outlook for the US-China trade row and the rising risk of an economic downturn in Hong Kong, the SAR government should create more business and development opportunities for its residents and corporations, with unshakable confidence and courage to overcome these challenges.

(HK Edition 07/22/2019 page10)