Chief Executive John Lee has stressed the need to rethink how Hong Kong should position itself amid an economic transition, while warning of challenges brought by geopolitical uncertainties.

Having served nearly two years in office, the city's leader said it's important to quickly identify ways to address changes the SAR is now experiencing.

"We must try to shorten the awakening and recognition phases as much as possible,” Lee said in a media interview.

“When we see changes, instead of remaining in the old way of thinking, it is better to recognise early that it is time to transform and acknowledge the need to make changes."

The SAR leader noted, for example, some businesses have stopped chasing sales figures and are now looking for ways to improve service quality instead .

After completing "the most important political task" of passing Basic Law Article 23 legislation, Hong Kong can now focus on the economy and people's livelihood, Lee added, noting the economy has rebounded from contractions when he first took office in July 2022.

But the Chief Executive cautioned the SAR would continue to be affected by geopolitical uncertainties, as well as foreign interference in the city’s affairs.

"[There is] no use [for foreign countries] to try to make use of Hong Kong as a political tool to try to, for example, pressure our country or pressure Hong Kong, in order to achieve their political purpose... It will backfire, because by doing that, they lose their credibility in their own citizens," Lee warned.

Sound financial development is also key to avoid political instability, Lee added, judging from his exchanges with consuls-general in Hong Kong.

Looking ahead, he confirmed plans to embark on more duty visits overseas. His cabinet will start with regions which "bring the best return", such as Asean member nations and the Middle East.

Lee also said Europe is a "big region" that the SAR must tap into, while Central Asia is another area of interest, if time permits.

"Finding time to cover that wide range of visits is a big challenge as well. There will be some division of labour… among government officials, and also… between the government and private sectors," he said.

"In respect of raising the reputation and telling the good Hong Kong story to different countries, the private sector, of course, plays an important role as well, because they have their own network.

"They have also, through their network, built up strong links with different opinion leaders as well."

Lee vowed to continue seeking support for Hong Kong's accession to the Regional Comprehensive Economic Partnership, or RCEP, as around 70 percent of the city's trade is conducted with economies under the pact.