HKC Advocates Digital Innovation for Inclusive Global Economic Transition at APEC Ministerial Meeting

Speech by SCED at plenary session of APEC Ministerial Meeting (1)

Following is the speech by the Secretary for Commerce and Economic Development, Mr Algernon Yau, at the plenary session themed "Innovation and digitalisation to promote transition to the formal and global economy" at the 35th Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in Lima, Peru, on November 14 (Lima time):

Good morning, Chair and fellow colleagues.

Let me start off by expressing my heartfelt gratitude to Peru for the excellent arrangements and warm hospitality extended to our delegation.

At the heart of today's agenda is our commitment in APEC to deliver inclusive and sustainable outcomes that address the needs and aspirations of our people. In this regard, Hong Kong, China (HKC) highly commends Peru for its leadership in advancing this year's inclusivity agenda, especially its work in promoting transition to the formal and global economy. Although circumstances may vary among member economies, it remains a common aspiration to create an enabling environment that fosters inclusivity in one's economy. Identified as one of the key economic drivers in the Putrajaya Vision 2040, innovation and technology play a pivotal role in the transition, and I would like to highlight three points from HKC's perspective.

First, harnessing digital technologies can facilitate formalisation. From HKC's experience, digital government services can help slash the cost of doing business and promote participation in the formal and global economy. Currently, HKC is developing a digital corporate identity platform to serve as a common digital key for identity authentication, enabling businesses, small or large, to use e-government services at ease and conduct online business transactions in a secure and efficient manner. The convenience will incentivise businesses to go digital and harness the full benefits of efficiency when using e-government services and transacting with businesses.

Second, investing in digital infrastructure can create an enabling environment for businesses. HKC has invested substantially in this respect. In 2022, we launched the Commercial Data Interchange as a digital infrastructure for voluntary data sharing among banks and businesses to speed up credit underwriting. To unleash the potential of this initiative beyond corporate level, we connected earlier this year the Commercial Data Interchange with the Government's Companies Registry to enable banks to obtain directly company particulars from the Government. This has provided incentives for businesses to register, comply with regulations, and operate transparently. In addition, recognising the challenges faced by our micro, small and medium-sized enterprises (MSMEs), we have been promoting the use of online dispute resolution (ODR) to resolve cross-border commercial disputes in the region. By leveraging advanced technologies such as blockchain, smart contracts and artificial intelligence, the ODR not only enhances MSMEs' access to justice but also streamlines the dispute resolution process, thus fostering a more inclusive business environment for MSMEs. We are glad to see that one-third of member economies have joined this ODR initiative, and we look forward to further collaboration with member economies on this front.

Third, ensuring equitable and affordable access to digital technologies benefits all segments, especially women, the elderly, persons with disabilities and other vulnerable groups. Specifically, HKC adopts a targeted and proactive approach in helping the various groups overcome the structural barriers. For example, we have been providing funding support to assist persons with disabilities in acquiring computer facilities for self-employment or receiving supported employment services at home. We look forward to accelerating work on digital inclusion with member economies to unlock the potential of individuals in the transition towards formal and global economy, building on existing initiatives such as the APEC Internet and the Digital Economy Roadmap, the La Serena Roadmap for Women and Inclusive Growth, and the Arequipa Goals.

Lastly, let me once again thank Peru for its steadfast commitment in spearheading this meaningful work in APEC. HKC looks forward to the adoption of the "Lima Roadmap to Promote the Transition to the Formal and Global Economy" at the APEC Economic Leaders' Meeting, charting an inclusive transition for all.

Thank you, Chair.

Speech by SCED at plenary session of APEC Ministerial Meeting (2)

Following is the speech by the Secretary for Commerce and Economic Development, Mr Algernon Yau, at the plenary session themed "Sustainable growth for a resilient development" at the 35th Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in Lima, Peru, on November 14 (Lima time):

Thank you, Chair.

I would like to express our appreciation to Peru for its exemplary leadership in taking forward the sustainable development agenda this year. The adoption of the APEC Policy Guidance to Develop and Implement Clean and Low-carbon Hydrogen Policy Frameworks in the Asia-Pacific, as well as the Trujillo Principles for Preventing and Reducing Food Loss and Waste in the Asia-Pacific Region, is very timely, and once again demonstrates APEC's ability in formulating impactful yet pragmatic initiatives that address the environmental challenges of our time.

APEC should continue to take such collaborative spirit to implement these initiatives and advance other areas of co-operation, leveraging the strengths of the institution as well as those of member economies. On the sustainability agenda, Hong Kong, China (HKC) would like to highlight a few priority areas deserving our attention.

First, we should scale up finance and investment in innovation, research and development to support the transition to a green and low-carbon economy. As a leading green financing hub in Asia, HKC is committed to facilitating the transition in the region. Over the past three years, we issued and arranged an average of over US$63 billion in green bonds and debts annually. We have invested substantial resources in building a vibrant innovation and technology ecosystem, focusing on key sectors such as new energy and new materials. To foster cross-disciplinary collaboration, we have injected over US$50 million into the Green Tech Fund to provide funding support for research and development projects on decarbonisation technologies. In this connection, HKC recognises the significant progress made by APEC in sustainable finance and investment this year, in particular the launch of the Sustainable Finance Initiative under the APEC Finance Ministers' Process last month. We look forward to sharing our experiences and joining efforts in advancing this important work stream.

Second, we should leverage APEC as a premier platform for promoting capacity building to complement global efforts in addressing environmental challenges. HKC has launched the Strategy of Hydrogen Development domestically earlier this year with concrete actions to seize the opportunities brought about by the hydrogen economy, and is planning to host an APEC capacity building workshop on the application of hydrogen for land transport next year. We look forward to contributing further our experience and capacity-building efforts to the APEC process under the framework of the APEC Policy Guidance and relevant APEC fora.

Last but not least, we strongly believe that we should strengthen APEC's role as an incubator of ideas in developing solutions and pragmatic initiatives that contribute to our sustainability goals. APEC has long been a leader in fostering trade collaboration, particularly in facilitating and liberalising trade in environmental goods and services. Our efforts, most notably the APEC List of Environmental Goods and APEC Reference List of Environmental and Environmentally Related Services, have served as useful reference points in international discussions including in the World Trade Organization. HKC will remain a strong advocate for APEC's efforts on environmental goods and services, recognising their potential as a catalyst for accelerating the transition to a low-carbon economy through the power of trade.

As a leading regional economic forum, APEC is the ideal platform to facilitate international co-operation to promote the world's sustainable development. I would like to reaffirm HKC's commitment to collaborating with Peru and member economies to make APEC 2024 a resounding success.

Thank you.