Hong Kong Leader Commits to Boosting Economy and Livelihoods

Hong Kong’s leader, John Lee, on Wednesday pledged to strengthen the city’s economy, improve livelihoods, and enhance its role as a global hub. Among several initiatives, he announced measures aimed at expanding the gold trading market.

The former deputy police chief reaffirmed the city’s projected economic growth of 2% to 3% for 2025 and emphasized Hong Kong’s role as a springboard for mainland Chinese businesses seeking international expansion. This marked his fourth policy address since taking office.

Lee stated that his “ultimate goal” is to improve livelihoods by providing “better housing for the public, higher incomes for workers, improved care for the elderly, and more opportunities for youth.”

Hong Kong’s small and open economy has felt the impact of China’s slowing economic growth, along with escalating trade tensions between Beijing and Washington.

The policy address comes at a time when Beijing is seeking to revive growth amid weak consumer demand and a longstanding property crisis.

Although the nearly three-hour speech did not dwell on major new initiatives such as housing, it featured detailed discussions on government accountability and national security.

Lee said the government is accelerating the development of “new growth areas” by creating an international gold trading market, promoting financial technology, and expanding green and sustainable finance.

He added that the Hong Kong Monetary Authority (HKMA) and the banking sector, especially in mainland China, would be encouraged to establish regional headquarters in Hong Kong and expand into Southeast Asia and the Middle East.

The government also plans to grow the aviation sector by offering recycling and trading services for high-value components and developing a sustainable aviation fuel supply chain.

Additionally, Hong Kong will attract more pharmaceutical companies to conduct and operate clinical trials and treatments for rare diseases, advanced cancer therapies, and other high-end medical products.

Greater Integration

Lee announced that the government would fast-track the development of the Northern Metropolis project, aimed at providing housing for around 2.5 million people and creating a new business district near the mainland border.

Situated between Shenzhen and Hong Kong, the Northern Metropolis was a focal point of former leader Carrie Lam’s 2021 plan to turn the area into an innovation and technology hub.

This development will be located near the Greater Bay Area, a Chinese government initiative connecting Hong Kong, Macau, and nine cities in Guangdong province.

Lee also outlined plans to boost Hong Kong’s status as a global education center by increasing the number of non-funded student places for non-local students from 40% to 50% of local enrollments.

To promote a pet-friendly environment, the government will implement licensing rules allowing restaurants to welcome customers with dogs, noting that more than 240,000 households keep over 400,000 cats and dogs as pets.

“This creates a huge consumer market,” Lee said, adding that pet-friendly dining establishments will open up new business opportunities.

To encourage childbirth, Lee announced that taxpayers would be eligible to claim a total of HK$260,000 in allowances for each child during the first two years after birth.