Hong Kong's budget suggests speeding up the development of the Northern Metropolis Several individuals have proposed an Northern Metropolis development authority be set up, suggesting that strong top-tier guidance might accelerate the process.
But how exactly would such an authority expedite development? What considerations are involved? More importantly, how would it attract investment and address funding shortages in an era of geopolitical tensions and economic downturns?
In recent years, the government has streamlined bureaucracy and relaxed regulations, reducing unnecessary procedures and offering greater flexibility . These have helped to shorten project timelines .
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge , our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
But the Northern Metropolis is a massive undertaking involving multiple policy bureaus. For instance, the Innovation, Technology and Industry Bureau is tasked with charting the course for innovation and technology development, as well as identifying the land needs. Meanwhile, the Development Bureau prepares the land and the Transport and Logistics Bureau provides transport infrastructure.
From conception to implementation, such projects still often take over a decade. In a fast-changing world where technology evolves rapidly, if bureaus continue to operate in silos - making decisions independently before passing the project along - the development risks becoming outdated even before the work begins.
Creating a development authority as a statutory entity might solve this issue. This organization would manage the planning, designing, constructing, and operating of initiatives within the Northern Metropolis, thereby reducing unnecessary procedures. Aligning transportation infrastructure with the schedule for developing these areas could enable the timely unlocking of land value, which in turn could enhance investors' trust.
A standalone development agency might provide the government more financial leeway as well. Conventionally, financing for major infrastructure projects depends on legislative body approvals, private-public collaborations, or appropriations. bond issuance . A fresh organization paves the way for alternate methods of raising capital.
For instance, the administration might provide land and a share of forthcoming taxes from the Northern Metropolis to the governing body in return for holding control over the equity. The leftover stakes could then be made available internationally, drawing long-term investment from Mainland China as well. Belt and Road Initiative Countries. By including particular clauses, the government could ensure a majority on the board, maintaining control over decisions.
The development agency has the option to lease land and infrastructure as needed for practical purposes or collaborate with strategic allies. Managed by experts adhering to market-driven practices, this entity will operate autonomously, facing its financial gains or losses independently. Such measures aim to boost operational effectiveness and reinforce market trust within the Northern Metropolis.
The government might find guidance in the creation of Hong Kong. Airport Authority This entity is overseen by the Airport Authority Ordinance. As a fully government-owned statutory organization, it operates with commercial objectives, mainly producing income through service charges at Hong Kong International Airport.
According to Section 5(2) of the ordinance, the Airport Authority has the ability to undertake commercial or industrial ventures on leasehold lands within airports with the aim of generating profits. This approach might also be applied to a potential Northern Metropolis development agency, enabling such an entity to produce earnings through the creation and management of infrastructure and businesses.
Another example is Singapore's Sentosa Development Corporation Established as a statutory body under the Ministry of Trade and Industry, SDC was tasked with developing Sentosa Island. Serving as the master planner, SDC’s mandate includes overseeing the planning, operation, and promotion of Sentosa as a resort destination catering to both residents and visitors. Additionally, business units were set up to handle the day-to-day running of the island.
However, the magnitude of the Northern Metropolis would exceed that of Hong Kong’s airport and Singapore’s Sentosa Island, featuring an immensely varied and intricate array of elements requiring thorough consideration. Initially, the development agency needs to function under current legal guidelines and bureaucratic setups to prevent clashes or redundant configurations. The intricacy involved in merging this project into pre-existing infrastructures might slow down its advancement instead of accelerating it unless managed with great precision.
Furthermore, the administration will have to activate the Land Resumption Ordinance To obtain private property for the Northern Metropolis. However, should this land fall under a commercial development agency, it might fail to meet the ordinance’s “public purpose” criterion. There is public doubt regarding land acquisition and possible favoritism, which could diminish confidence in the project even more.
The Northern Metropolis isn't solely for innovation, commerce and industry - it also encompasses housing, social welfare and environmental conservation. A commercial approach risks sidelining public welfare and environmental needs.
Without robust oversight, a profit-oriented authority might prioritise revenue-generating projects such as commercial hubs over affordable housing or green spaces, exacerbating social inequalities.
Ultimately, whether a Northern Metropolis development authority is a boon or bane hinges on the execution. This is not a decision to be rushed. Presenting detailed proposals to the public can foster debate and ensure the Northern Metropolis serves both economic ambitions and society's needs. Only through such scrutiny can Hong Kong maximise the benefits of this transformative project while mitigating its risks.
More Articles from SCMP
The house bill limiting collaborations between U.S. and Chinese universities is progressing, with Democrats remaining quiet.
China’s commitment to neighboring countries, exporters offloading goods mid-journey: SCMP Daily Highlights
TikTok Shop highlights potential issues in the U.S., encourages expansion into the European market as Trump increases duties on smaller packages threefold.
China's CATL maintains confidence in Hong Kong with intentions to list this quarter, according to sources.
The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
Copyright © 2025. South ChinaMorning Post Publishers Ltd. All rights reserved.
