Commerce minister Algernon Yau said on Monday that Hong Kong needs to expand its regional integration and development, citing geopolitical factors and trade unilateralism.

Yau said this is why Chief Executive John Lee recently visited the Middle East, adding that Saudi Arabia, the UAE and Hong Kong all share a need to diversify their economies.

Speaking on RTHK, Yau dismissed concerns that compared with Singapore, the SAR has been slow in seeking business opportunities in the Middle East.

The secretary said while Singapore has its own advantages, Hong Kong shouldn't be underestimated as it's a financial centre with the support of the motherland.

"It's like in athletics, starting late doesn't mean you can't catch up. It's not just about winning on the starting line," he said.

"The most important thing is whether you have the ability, whether you have strategy and have you worked hard to catch up."

Yau said because there is competition, the SAR government set up an office last year to compete for talent and enterprises.

He also said there is a need to strengthen support for the convention and exhibition industry, noting that the trade used to bring some HK$50 billion in economic benefits to the city.

Financial Secretary Paul Chan announced in last week's budget a plan to spend an extra HK$200 million on bringing international meetings and conventions to Hong Kong.