[HONG KONG] Hong Kong leader John Lee pledged on Wednesday (Sep 17) to boost the city’s economy, improve livelihoods and cement its role as an international centre, unveiling measures including developing a gold trading market.
A former deputy head of police, Lee reaffirmed the city’s economic growth forecast of 2 to 3 per cent for 2025 and highlighted Hong Kong’s role as a springboard for mainland China enterprises looking to expand abroad. It was the fourth policy address of his term.
Lee said his “ultimate objective” was to improve livelihoods, “with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people”.
Hong Kong’s small and open economy has felt the ripple effects of an economic slowdown in China and trade tensions between Beijing and Washington.
The policy address comes amid Beijing’s push to bolster flagging economic growth amid sluggish consumer demand and a years-long property crisis.
His presentation, which lasted nearly three hours, was thin on new major initiatives including housing but went into detail on government accountability and national security.
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Lee said the government was “expediting the development of new growth areas” by building an international gold trading market, developing fintech and green and sustainable finance.
The city’s monetary authority, the HKMA, will encourage the banking sector, especially in mainland China, to establish regional headquarters in Hong Kong and expand into South-east Asia and the Middle East, Lee said.
The government will also expand its aviation industry by providing recycling and trading services of high-value parts, as well as developing a sustainable aviation fuel industry chain.
The city will also attract more pharmaceutical companies to set up and conduct clinical trials and medical treatments for rare disease drugs, high-end cancer drugs and advanced therapy products.
Greater integration
Lee said the government would accelerate the development of the Northern Metropolis project, which aims to provide homes for around 2.5 million people and create a new business district near the border with the mainland.
Sandwiched between Shenzhen and Hong Kong, the Northern Metropolis was a focus of former leader Carrie Lam in 2021 when she announced plans to develop the area into an innovation and technology hub.
The development will be a stone’s throw from the Greater Bay Area, a Chinese government scheme to link Hong Kong, Macau and nine cities in the southern province of Guangdong.
Lee also said that as part of measures to build Hong Kong into a global education hub, the number of non-funded places for non-local students would be increased to 50 per cent from 40 per cent of local student places.
The government will also introduce licensing for eateries to permit customers to bring their dogs, with more than 240,000 households keeping 400,000 cats and dogs as pets, he said.
This presents “an enormous consumption market”, he said, adding that pet-friendly restaurants will create new business opportunities.
To boost births, Lee said taxpayers can claim a total of HK$260,000 (S$42,700) in allowance for each child in the first two years following childbirth.
