Officials are exploring the possibility of tapping the massive reserves of private capital in Hong Kong to increase funding for public infrastructure projects.
The radical proposal is seen as a bid to alleviate the economic downturn and stimulate employment by using private funds for projects without worsening the budget deficit.
Secretary for the Environment, Transport and Works Sarah Liao Sau-tung told the South China Morning Post that she had started consulting the private sector after being lobbied by industry groups to do something about the recessionary conditions.
She said there was a lot of money available in the private sector which could be used to fund projects traditionally undertaken by the public sector. The facilities could then be leased to the government. In some cases, they could even be operated by a private company for the government, Dr Liao said.
She did not outline exactly what she was considering for what would be a new, deeper level of privatisation in Hong Kong, but made it clear she was exploring options.
Dr Liao said Hong Kong could follow the United States, Britain and Australia, where private contractors build and operate public institutions such as jails, schools and water treatment works.
