Hong Kong SAR, October 17, 2024 – John Lee, Chief Executive of the Hong Kong Special Administrative Region, delivered his third Policy Address today, entitled “Reform for Enhancing Development and Building Our Future Together.” The Address outlines a series of strategic initiatives aimed at generating new momentum for economic growth, enhancing the quality of life, and improving the well-being of Hong Kong’s citizens.
Mr Lee stated, “This Policy Address continues to build on the ‘four proposals’ put forth by President Xi Jinping in his speech on 1 July 2022. It outlines our vision for reform and transformation, alongside key performance indicators and measures to support our goals.
“Reform is a continuous journey. Over the past two years, my administration has prioritised economic growth and improving the livelihoods of Hong Kong residents. This Address seeks to deepen those reforms, while exploring new avenues for growth.”
Strengthening Hong Kong as a Global Financial, Shipping, and Trade Hub
Hong Kong’s reputation as a global centre for finance, shipping, and trade remains a cornerstone of its development. These sectors are interconnected and continue to grow in a synergistic manner.
On the financial front, the Policy Address details plans to strengthen Hong Kong’s role as a leading international financial hub. Efforts include reinforcing Hong Kong’s position as the world’s largest offshore Renminbi business centre, expanding the asset and securities markets, and establishing Hong Kong as a global gold trading hub. To support this, world-class gold storage facilities will be developed, alongside enhancements to trading and regulatory frameworks, which will drive demand for services such as collateral and loan businesses.
In the shipping sector, the Hong Kong Maritime and Port Board will be restructured into the Hong Kong Maritime and Port Development Board, with additional funding allocated to boost research capabilities and strengthen international promotional activities. These efforts will encourage Mainland and overseas maritime enterprises to establish operations in Hong Kong, supporting the sustainable development of the maritime industry. The government will also promote Hong Kong as a green maritime centre and explore tax incentives to attract international commodity exchanges, creating a vibrant trading ecosystem, particularly for non-ferrous metals.
For the trade sector, a high-value-added supply chain service centre will be established. Through improved export credit services and leveraging opportunities under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), the government aims to attract Mainland and international enterprises to set up headquarters in Hong Kong. Expanding Hong Kong’s global trade networks will remain a priority, with a focus on emerging markets. Additionally, the government will reduce liquor import duties to further boost trade and the development of high-value industries.
Driving Innovation for High-Quality Economic Growth
The central pillar of Hong Kong’s future economic success lies in harnessing new quality productive forces through technological innovation. The government is committed to accelerating Hong Kong’s transformation into an international innovation and technology (I&T) hub. A $10 billion I&T Industry-Oriented Fund will be created to encourage market investment in emerging industries of strategic importance, including life and health technology and artificial intelligence. Furthermore, an I&T Accelerator Pilot Scheme will be launched to attract professional start-up service providers, fostering robust start-up growth.
Additionally, the government plans to establish a Working Group on Developing Low-Altitude Economy, which will identify opportunities for growth in low-altitude applications. Specific infrastructure and networks will be developed in collaboration with Mainland counterparts, with the goal of advancing this innovative sector.
The Policy Address also highlights Hong Kong’s commitment to renewable energy, including green maritime fuel, sustainable aviation fuel, and hydrogen energy. In healthcare, reforms will be made to streamline approval mechanisms for drugs and medical devices, positioning Hong Kong as a global health and medical innovation hub.
Establishing Hong Kong as an International Talent Hub
To enhance the effectiveness of talent policies, the Committee on Education, Technology and Talents will be established to drive the integrated development of education, technology, and talent acquisition. Reforms to the talent admission system will attract a pool of high-quality professionals, while the “Study in Hong Kong” initiative will be promoted to draw international students. A pilot scheme will also support increased private and self-financed student hostel options. Additionally, plans for the Northern Metropolis University Town aim to position Hong Kong as a leading hub for higher education and attract global talent.
Promoting Culture, Sports, and Tourism to Diversify the Economy
A key focus of this administration is the integrated development of culture, sports, and tourism. The establishment of the Culture, Sports and Tourism Bureau demonstrates this commitment. The West Kowloon Cultural District will be further developed as a centre for arts and creative industries, while the Kai Tak Sports Park will become a hub for international sporting events. The government will also unveil a Tourism Industry 2.0 blueprint, with a focus on promoting cultural, sporting, and eco-tourism to revitalise Hong Kong’s tourism sector.
To support small and medium-sized enterprises (SMEs), various initiatives will be introduced, including relaunching the principal moratorium and injecting $1 billion into the BUD Fund (Dedicated Fund on Branding, Upgrading, and Domestic Sales) to facilitate enterprise upgrades. A Working Group on Promoting the Silver Economy will be formed to explore opportunities in meeting the needs of the elderly and opening new business avenues.
Advancing Northern Metropolis Development and Strengthening GBA Collaboration
The Northern Metropolis will play a vital role as a growth engine for Hong Kong. A government-backed company will establish a pilot industrial park in the area, with plans for its growth and operation. The Steering Committee on the Hong Kong-Shenzhen I&T Park in the Loop will oversee the strategic planning of the project, with a development outline expected to be published later this year.
Improving Livelihoods and Enhancing Well-Being
The Policy Address also introduces new measures to improve living standards, particularly in housing and healthcare. The government will legislate to tackle the issue of subdivided units and will enhance the housing ladder to enable more residents to achieve homeownership.
In healthcare, reforms will strengthen public health services, promote primary care, and support healthy fertility. A new medical school will be established, with an integrated medical teaching and research hospital in Ngau Tam Mei.
Mr Lee concluded, “This Policy Address deepens the reforms introduced during my tenure as Chief Executive. It presents comprehensive measures to stimulate economic growth and improve the well-being of our people. By working together to innovate and reform, I am confident that Hong Kong will reach new heights, driving prosperity and improving the quality of life for all citizens.”
