Timothy J. Peirson-Smith

Opinion | Hong Kong needed a more aggressive policy address from John Lee

From housing, SMEs and the elderly to the environment and Hong Kong’s reputation, more hard-hitting reforms and targeted policies are required

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Chief Executive John Lee Ka-chiu visiting Shun Lee Estate in Kwun Tong on November 15, 2023. The public may feel that the policy address did not fully tackle the housing challenge, which remains a source of frustration for many. Photo: Jelly Tse

Timothy J. Peirson-Smith

Published: 4:31pm, 17 Oct 2024Updated: 5:13pm, 17 Oct 2024

Hong Kong Chief Executive John Lee Ka-chiu’s latest policy address sought to tackle the city’s pressing challenges, with a focus on rejuvenating the economy and improving livelihoods. While he made strides in some areas, significant challenges remain.

One focus was to bolster Hong Kong’s status as an international financial and trading hub, aligning with the goal set by Beijing. Lee reiterated the city’s commitment to leveraging its unique advantages under “one country, two systems” to enhance its global financial standing. This includes measures to attract and nurture high-end talent and foster innovation, signalling a push towards a future- oriented economy.

But will these measures be sufficient to navigate the external pressures in a challenging geopolitical environment, especially as perceptions of Hong Kong remain mixed?

In addressing these concerns, Lee announced initiatives aimed at supporting small and medium-sized enterprises (SMEs), many of which have been hit hard by the economic transition amid rising closures. Measures include allowing SMEs that had borrowed money under government-backed loan schemes to apply for a principal moratorium for up to 12 months and injecting HK$1 billion (US$128.69 million) into a fund to support the brand development and international expansion of non-listed firms.

The sheer scale of business closures – over 94,000 last year and a continuing trend – however, raises doubts about whether these efforts are robust enough to reverse the downturn.

Lee’s policy address also sought to address social issues, particularly those linked to Hong Kong’s ageing population. Aware of the strain on public resources and healthcare due to the growing number of elderly residents, Lee introduced measures aimed at building a sustainable silver economy.