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Hong Kong has always been a zealous believer in the free market and its fair process of selecting winners. Government officials tend to prevent accusations of colluding with the private sector by avoiding allocation of resources for specific industries. Even when the government introduces industry-specific funds, applicants always have to swim through a sea of red tapes which have deterred many bright and hopeful entrepreneurs. This bureaucratic culture may be one of the reasons why Hong Kong never had our own Elon Musk.

Taking a step back, how may Hong Kong people support Hong Kong brands？ As consumers, the easiest way available is to purchase local products and services that are good in quality. The author of this article uses earphones and briefcases that are designed in Hong Kong. Customer feedback and cash help local products perfect themselves. This means of support is strictly in line with the philosophy of the free market.

Since Hong Kong people can support local brands, should the government similarly support local brands through procurement？ There is a strong moral case for spending Hong Kong people’s tax dollars on Hong Kong businesses.

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[4][5][6][7]

If Hong Kong can stipulate preferential treatment for small and medium-sized enterprises when it comes to government procurement through promulgated legal stipulations, civil servants will no longer feel the need to pick products or services provided by big corporates as a means to avert risk. Meanwhile, local small and medium-sized enterprises are bound to benefit and gradually grow in a market environment. When Hong Kong’s entrepreneurs and small and medium-sized enterprises are rewarded for their hard work, they will have the financial means and motivation to pursue excellence. If this can turn into a sustainable virtuous cycle, we can expect our Hong Kong brands to attain international acclaim like Tesla does.

1. Jerry Hirsch, “Elon Musk's growing empire is fueled by $4.9 billion in government subsidies”, LA Times, Published on 30th May 2015.

http://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html

http://www.fstb.gov.hk/tb/en/wto-agreement-on-government-procurement.htm

2. Hong Kong Monetary Authority - Press Release, “Exchange Fund Position at end-December 2016”, Last revised on 25th January 2017.

http://www.hkma.gov.hk/eng/key-information/press-releases/2017/20170125-3.shtml

http://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2017/20170125e3a3.pdf

3. US Small Business Administration, “What is a Small Business Set Aside”.

http://www.sba.gov/contracting/government-contracting-programs/what-small-business-set-aside

4. Ibid.

http://www.legislation.gov.uk/ukpga/2015/26/contents/enacted/data.htm

Frédéric Gouardères, “Fact Sheets on the European Union (Industrial policy and research policy): Small and medium-sized enterprises”, European Parliament, Published on December 2016.

http://www.europarl.europa.eu/atyourservice/en/displayFtu.html？ftuId=FTU_5.9.2.html

https://www.success.tid.gov.hk/english/aboutus/sme/service_detail_6863.html