HK CE unveils plans to revive economy in policy address

Lam said from end-2019 to end-September this year, the total deposits of banks grew by 7.3 percent while pointing out how Hong Kong had preserved its status as a global financial hub.

Lam said the Stock Connect trading schemes connecting mainland and Hong Kong bourses, will be enhanced by accelerating the introduction of new rules allowing loss-making mainland biotechnology firms to list in Hong Kong, and for stocks to be listed on the mainland’s sci-tech innovation board.

Housing

Acknowledging that the core of the housing problem in Hong Kong lies in the shortage of land for housing development, Lam said 330 hectares of land required for providing 316,000 public housing units to meet the demand for about 301,000 public housing units in the coming 10 years had been identified and expected 260 starter home units for sale in 2024. She said the redevelopment of Tai Hang Sai Estate can provide more than 3,300 units. The government plans a trial scheme to provide cash allowance for grassroots families waiting for public housing for a long time. It will start receiving applications in mid-2021 and disbursing cash allowance from July onwards, Lam said.

Her government will implement a pilot scheme to subsidize NGOs to rent suitable rooms in hotels and guesthouses with relatively low occupancy rates for use as transitional housing.

A second topside public housing project on railway facilities since the Kornhill development on the Island Line four decades ago in the 1980s is being planned at the MTR's Siu Ho Wan depot site.

Lam said the double stamp duty will be removed for non-residential property while making it clear that there was no plan to adjust stamp duty on residential property.

Welfare

Lam said recurrent government expenditures on social welfare and healthcare have increased from HK$65.3 billion and HK$62.6 billion in 2017-18 to HK$93.9 billion and HK$87.1 billion in 2020-21 respectively, with an average annual increase of 12.9 percent and 11.6 percent. In the past 12 months up to late October, the total number of CSSA unemployment cases recorded a nearly 55 percent increase. As such, new arrangement under which the total cash value of insurance policies of able-bodied CSSA applicants/recipients will be disregarded as assets for a period of one year.

The Public Transport Fare Subsidy Scheme has been extended by another six months, guaranteeing subsidy amounting to one-third of the monthly public transport expenses in excess of HK$200, capped at HK$400 per month and benefiting around 3.8 million people. Also, the MTR will continue to extend the 20 percent fare discount until March 2021. Short-term Food Assistance Service Projects (STFASPs) will be made a permanent service with an outlay of HK$415 million and the Elderly Dental Assistance Programme will be widened. On the mental health front, the government will set aside HK$300 million.

Aviation hub

Lam said the Civil Aviation Administration of China has agreed to allow cross-boundary commercial helicopter services between Guangdong and Hong Kong and the central government will allow Airport Authority Hong Kong (AAHK) to inject equity in Zhuhai airport. AAHK will commission the third runway in 2022 and the entire Three-Runway System in 2024 as planned, Lam said.

She said automated car parks will be developed on the Hong Kong Boundary Crossing Facilities (HKBCF) Island of the Hong Kong-Zhuhai-Macao Bridge, allowing self-driving visitors from Guangdong and Macao using HZMB to fly out from Hong Kong International Airport or visit Hong Kong to park their cars there.

Innovation and technology

The CE said the central government strongly supported the cooperation between Hong Kong and Shenzhen in developing an international I&T hub in the Guangdong-Hong Kong-Macao Greater Bay Area with a view to establishing "one zone, two parks" at "one river, two banks" under the auspices of "one country, two systems". Lam said the central government had greenlighted the joint development of the Shenzhen/Hong Kong Innovation and Technology Co-operation Zone (SITZ), which comprises the Shenzhen Innovation and Technology Zone and the Hong Kong-Shenzhen Innovation and Technology Park (HSITP) at the Lok Ma Chau Loop.

The CE also proposed launching a Global STEM Professorship Scheme for a period of five years at an estimated cost of HK$2 billion.