CE’s speech in delivering “The Chief Executive’s 2025 Policy Address” to LegCo (5)

Source: Hong Kong Government special administrative region

Chapter V 

Integrate into the Overall National Development

77. As the world’s second-largest economy, our country contributes more than one-third of global economic growth, representing the greatest opportunity for Hong Kong’s development. We will fully integrate into the overall national development, capitalising on national strategies such as the GBA and high-quality co-operation under the B&R Initiative. In addition, this year is the preparatory year for the national 15th Five-Year Plan. Leveraging Hong Kong’s unique advantages, we will contribute to the national development, and deepen international exchanges and co-operation by connecting with the Mainland and the world. We will also attract more enterprises to use Hong Kong to expand overseas, thereby creating business opportunities and economic returns.

(A) “Bringing in and Going Global”: Hong Kong as a Platform for Overseas Expansion

78. China’s external direct investment exceeded RMB 1 trillion last year, underscoring the growing global demand for “Made in China” products. Mainland enterprises are accelerating their pace to “go global”.

79. With a shift in strategic focus, Mainland enterprises are proactively exploring emerging markets. The Government will capitalise on the advantages of Hong Kong as an export platform to unlock new areas for economic growth. Mainland enterprises going global can establish Corporate Treasury Centres (CTCs) and regional headquarters in Hong Kong for cross-boundary settlement, remittance, financing and related functions. They can also tap Hong Kong’s professional high value-added supply chain services in fields such as accounting and law to help them explore overseas markets. In addition, they can leverage Hong Kong’s strengths in marketing to connect with global buyers and build international brands.

80. In last year’s Policy Address, I announced that we would develop Hong Kong into a high value-added supply chain service centre, attracting more enterprises to establish a presence in Hong Kong and expanding our headquarters economy. In 2024, Hong Kong was home to more than 1 400 regional headquarters of non-local enterprises, over 300 of which were from the Mainland.

81. I will establish a one-stop platform by mobilising Hong Kong’s overseas offices, including those under InvestHK and the Hong Kong Trade Development Council (HKTDC), as well as Hong Kong offices in the Mainland, and set up the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) to encourage Mainland enterprises to use Hong Kong in expanding their businesses overseas. The Secretary for Commerce and Economic Development will steer the work of GoGlobal Task Force and co-ordinate various bureaux, departments and agencies in formulating proposals for enterprises looking to go global. Details are as follows:

(i) The HKMA will encourage the banking sector, especially banks in the Mainland, to establish regional headquarters in Hong Kong, where Hong Kong’s strengths can help them expand into markets such as Southeast Asia and the Middle East, thereby providing more comprehensive cross-boundary financial solutions.

(ii) To attract more Mainland enterprises to establish CTCs in Hong Kong, we will complete a study on tax concessionary measures to be further enhanced in the first half of 2026.

(iii) The HKMA has signed a memorandum of understanding with the Public Investment Fund of Saudi Arabia to establish a US$1 billion new investment fund, catering to enterprises in Hong Kong and other GBA cities looking to expand into Saudi Arabia.

(iv) The HKMA will collaborate with organisations such as the Hong Kong Association of Banks, the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries to lead delegations of banking representatives and SMEs to explore business opportunities in Southeast Asian markets such as Vietnam, pooling industry strengths to support the “going global” platform.

(v) The Government will leverage the strengths of Hong Kong’s exhibition industry and consolidate our position as the ideal platform for Mainland brands to “go global” and for “bringing in” brands from around the world. We will also support the trade to organise more events conducive to brand development.

(vi) We will promote the development of carbon audit services to assist enterprises going global to meet international requirements and standards on green trade in respect of carbon emission reduction.

82. The Government will assist the local media to expand their network beyond Hong Kong, telling the good stories of Hong Kong.

(B) Deepen International Exchanges and Co-operation

83. We will actively invite the Asian Infrastructure Investment Bank to set up an office in Hong Kong. The Hong Kong Exchanges and Clearing Limited (HKEX) will also deepen co-operation with Southeast Asian exchanges, attracting Southeast Asian issuers to seek secondary listings in Hong Kong and encouraging asset management companies to issue products in their local markets, thereby spurring asset allocation in our market.

84. The Belt and Road Office will co-ordinate local public organisations and institutes to help train the personnel of B&R countries. It will also strive for more opportunities to match commercial projects in B&R markets with Hong Kong professional service sectors.

85. We support our country to promote the participation in green co-operation with B&R countries by, among other things, jointly setting up a B&R Green Development Co-operation Platform in Hong Kong with the B&R Initiative International Green Development Coalition. The Environmental Protection Department will set up a B&R sustainable green development training centre in Hong Kong in 2026, providing training courses for the personnel of B&R countries. The Hong Kong Jockey Club (HKJC) will support the initiative with funding of $100 million. In addition, we will support local professional organisations� to promote green building assessment tools among B&R countries.

86. The Government will invite members of the Silk Road Maritime Association� to hold a summit during Hong Kong Maritime Week next year, promoting its participation in the B&R shipping brand.

87. This year and next, we will organise the World Internet Conference Asia-Pacific Summit and InnoEX; the inaugural Hong Kong Fixed Income and Currency Forum; the INTERPOL General Assembly; the GBA Conference on Inheritance, Innovation and Development of Traditional Chinese Medicine; the Association of National Olympic Committees General Assembly; the Asia-Pacific Association for International Education Conference and Exhibition; and the first Research Summit of the Research Grants Council. We will also establish the Hong Kong International Correctional Services Response Tactics Training Academy to enhance international exchanges and professional training. The Government will support local universities and professional organisations in their bids to host more international academic and professional conferences and publish influential academic journals. The Government will also participate in and promote I&T collaboration with various international and regional organisations, such as the International Organization for Standardization.

(C) Development of the Greater Bay Area

88. As one of its core cities, Hong Kong plays a vital role in driving the GBA’s development. It also plays an irreplaceable part in our country’s reform and opening up. The Government will continue to lead the entire community to dovetail with national strategies and integrate into the country’s overall development in a more proactive manner. We will also strengthen mutually beneficial co-operation with Guangdong and Macao and deepen co-ordinated development.

89. We will continue to deepen our co-operation with Guangdong and Macao, forging closer convergence of our respective rules and mechanisms to enhance the flow of people, goods, data and capital. Relevant measures include:

(i) Develop the HKIA Dongguan Logistics Park. Upon security screening and cargo acceptance in Dongguan, Mainland cargo can be transported directly to the HKIA for transhipment, significantly reducing operating costs. This is the most successful model of GBA co-operation. Phase 1 development’s permanent facilities will be completed in stages, starting from the end of this year. The preliminary study for Phase 2 development is also set to commence this year, including the introduction of more high value-added logistics and cross-boundary e-commerce facilities.

(ii) Promote a panel of GBA arbitrators and a platform for GBA commercial mediation and arbitration to lower enterprises’ costs of cross-boundary dispute resolution.

(iii) Extend cross-boundary ambulance transfer arrangements with the governments of Guangdong and Macao, including two-way ambulance transfers and expansion to cover designated hospitals in Zhuhai and Nansha.

(iv) Enhance Cross-boundary Credit Referencing and the Shenzhen-Hong Kong cross-boundary data validation platform to facilitate Hong Kong banks’ credit assessment of Mainland residents and enterprises in Hong Kong.

(v) Continuously enhance the Payment Connect, expanding to use cases for remittance related to people’s livelihood. The Government will improve disbursement arrangements for portable cash assistance next year, so that Hong Kong elderly recipients retiring in Guangdong and Fujian Provinces may opt to receive Government assistance directly through their bank accounts with designated Mainland banks.

(vi) Work with exchanges in the GBA to develop commodity trading, carbon trading and other businesses. The HKEX, a controlling shareholder of the Qianhai Mercantile Exchange, will continue to strengthen mutual co-operation for the development of the offshore spot soybean market. Core Climate, the carbon marketplace of the HKEX, will collaborate with pilot carbon markets in the GBA to explore cross-boundary trade settlements on a trial basis.

(vii) Boost collaboration between the HKIC and the Guangdong Government to help Hong Kong’s enterprises with high technology content, such as biotech and health tech start-ups, to strengthen cross-border industry chain development. Nansha will be the key base for the first phase.

(viii) The Financial Services and the Treasury Bureau (FSTB) is working with Shenzhen and Qianhai to promote digital finance development and support deeper integration of technology and finance between Shenzhen and Hong Kong. Measures are expected to be announced later this year.

â�µ The Hong Kong Green Building Council and the BEAM Society.

â�¶ The Silk Road Maritime Association was co-founded in 2018 by three large enterprises, the China COSCO Shipping Group, the Fujian Provincial Communication Transportation Group and the Xiamen Port Holding Group. The association aims to build an international integrated logistics service focused on shipping and foster economic and trade co-operation and development of countries and regions along the Maritime Silk Road. To date, the association has more than 330 members, including shipping companies, port enterprises, logistics companies and trade establishments, as well as members from upstream and downstream industries such as finance, insurance and technology.

(To be continued.)

CE’s speech in delivering “The Chief Executive’s 2025 Policy Address” to LegCo (3)

Source: Hong Kong Government special administrative region

Chapter III  

Accelerate the Development of the Northern Metropolis

43. The Northern Metropolis, our city’s strategic development area bordering Shenzhen, covers a land area and planned population intake accounting for about one-third of Hong Kong’s total. It therefore represents a substantial source of economic value and development potential, creating many jobs and boosting productivity. While the Government has been accelerating the development of the Northern Metropolis for the past three years, I remain deeply concerned about its progress, given the sheer size of the area and the magnitude of the investment required.

44. To further develop our economy and improve people’s livelihood, we must speed up the Northern Metropolis development. Accordingly, I have decided to raise the level of decision-making by establishing the Committee on Development of the Northern Metropolis under my leadership³. The committee will be tasked with streamlining administrative workflows and removing unnecessary barriers and restrictions. Embracing a new mind-set, we will adopt safe, cost-efficient, and time-saving construction methods, materials, and equipment from different jurisdictions. We will also introduce dedicated legislation to accelerate the development of the Northern Metropolis.

(A) Establish the Committee on Development of the Northern Metropolis

45. With the overall planning of the Northern Metropolis, it is now the optimal juncture to expedite the development of the area, bringing in industries and major projects. I will establish and chair the Committee on Development of the Northern Metropolis, under which the following three working groups will be set up:

(i) Working Group on Devising Development and Operation Models: led by the Financial Secretary, the working group will formulate development and operation models for industry parks in the Northern Metropolis, taking into account their nature and scale. This will include setting up one or more dedicated companies, or statutory or non-statutory bodies, for various industrial parks, devising public-private partnership approaches such as the Build-Operate-Transfer model. It will also explore shifting from “highest bidder wins” to industry-linked “two-envelope approach” for tendering. We will devise a range of financing schemes, including equity, bonds, government injections, and “provision of land as a form of capital participation”. The Development Bureau (DEVB) is conducting policy study to set up an industry park company for about 23 hectares of industry land at Hung Shui Kiu. The recommendations will be announced this year after reporting to the working group.

(ii) Working Group on Planning and Construction of the University Town: led by the Chief Secretary for Administration, the working group will study the development mode for the Northern Metropolis University Town. It will set up a research task force to conduct field trips on the successful models of university towns elsewhere, seeking views from presidents and representatives of local, Mainland, and other internationally renowned universities. It will also explore the possible way forward to deeply integrate industry development with the academic sectors where Hong Kong has an edge, alongside the strategies for attracting leading universities and research institutes in the Mainland and overseas to establish a base in Hong Kong.

Three batches of sites for the Northern Metropolis University Town will be available for use in 2026 (Hung Shui Kiu), 2028 (Ngau Tam Mei) and 2030 (New Territories North New Town) respectively at the earliest. The working group will make recommendations on the positioning and vision regarding the development of these sites to devise a clear, industry-led approach. The land in the Hung Shui Kiu/Ha Tsuen New Development Area (NDA), for example, will integrate with nearby, high-end professional services as well as vocational and professional education and training facilities for joint development. The land in Ngau Tam Mei can dovetail with the overall innovation and technology (I&T) development of the San Tin Technopole and the Loop, among others, life and health technology industries, and to be used for joint development with the third medical school and an integrated medical teaching and research hospital.

(iii) Working Group on Planning and Development: led by the Deputy Financial Secretary, the working group will be responsible for managing the end-to-end process from planning to implementation, co-ordinating and consolidating such aspects as planning, engineering, land, transportation and environmental protection, to promote industry anchoring, create job opportunities and enhance productivity. A dedicated project supervision office will be established under the working group to strengthen the co-ordination and supervision of the approval process, imposing time limits and phased reporting, to accelerate progress.

(B) Remove Barriers and Ease Restrictions to Streamline Administrative Procedures

46. The Government will streamline administrative procedures, removing barriers and restrictions. Relevant measures include:

(i) Introduce the Fast Track Processing System, adopting superior construction methods from different places, and integrate successful construction technologies, materials and equipment from the Mainland and overseas, in a bid to reduce construction costs and time.

(ii) Implement a “phased development” approach on a trial basis with reference to the Mainland’s “1.5-level development” concept. Specifically, pilot low-density facilities, such as retail, entertainment and convention and exhibition facilities will be developed initially to attract businesses, bringing income and footfall to the area to create momentum before long-term development is rolled out. We will invite market feedback on such approach of phased development for the commercial sites in Hung Shui Kiu.

(iii) Adopt diverse models such as in-situ land exchange and large-scale land disposal to promote market participation and expedite development.

(iv) Employ flexible land-grant arrangements, encouraging enterprises to set up businesses and invest in the area. Sites granted as tenancy instead of land lease may have a term exceeding seven years to provide greater flexibility. Depending on industry policies, open tendering, restricted tendering or direct land grants may be adopted.

(v) Allow land owners in the Northern Metropolis to voluntarily surrender land planned to be resumed by the Government to offset the amount payable for in-situ land exchange or large-scale land disposal in NDAs. This will promote market participation in the development.

(vi) Adopt a “pay for what you build” approach to reduce the cost of land premiums in the Northern Metropolis. In lease modifications, subject to the condition of the land parcels involved, owners will be allowed to pay the required premium according to the actual built floor area and use, rather than the maximum floor area based on the maximum plot ratio under the current planning regime. We will also consider allowing developers to pay land premiums in phases, according to the development scale.

(vii) Commence a land use review for Au Tau, to capitalise on the development potential brought by the Northern Link. We will consider a larger proportion of private housing in the area around Sha Po at Au Tau Station for development into an NDA. We will engage the Mass Transit Railway Corporation Limited (MTRCL) to conduct the review, announcing its results next year.

47. Where appropriate, we may also apply the above administrative measures to areas outside the Northern Metropolis.

(C) Dedicated Legislation to Accelerate the Development of Northern Metropolis

48. I will introduce dedicated legislation to accelerate the development of Northern Metropolis, empowering the Government to devise simplified statutory procedures for issues including setting up statutory industry park companies and providing them with dedicated channels for funding; managing the cross-boundary flow of people, goods, capital, data and biological samples in designated areas, to attract research institutes and high-end manufacturers to establish a presence in Hong Kong; speeding up the approval of building plans; relaxing permitted uses in outline zoning plans (OZPs) and fine-tuning development parameters; and expediting compensation payment for land resumption.

(D) Expedite the Development of the Loop

49. The Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (the Co-operation Zone) is located on both sides of the Shenzhen River, comprising Shenzhen Park and Hong Kong Park. Leveraging the advantages of “one zone, two parks”, the Co-operation Zone will promote collaboration between the two parks in the development of I&T.

50. The construction of the first three buildings in Phase 1 of the Hong Kong Park of the Co-operation Zone (Hong Kong Park) has been completed. Tenants from life and health technology, microelectronics, new energy, AI and other pillar industries are gradually moving in. The construction of the other five buildings will be completed progressively from 2027.

51. The Government will roll out parcels of the remaining land in Phase 1 this year. We will complete Phase 2 planning for the development scale and distribution of industries to finalise Hong Kong Park’s overall layout and consider offering work spaces flexibly to companies under the “moving in while construction is underway” approach. That will enable them to move in earlier without having to wait for the completion of the entire park’s construction.

(E) Development Outline for the San Tin Technopole

52. The San Tin Technopole, spanning some 210 hectares� of land for I&T, will serve as a strategic base for the I&T industry. The Government will publish the Conceptual Outline of the Development Plan for the Innovation and Technology Industry in the San Tin Technopole this year. It will cover top-level planning, industry positioning and layout, the co-ordinated development of land parcels, and the strategies for channelling market resources to invest in the development.

(F) Expedite Transport Infrastructural Development

53. To dovetail with the development of the Northern Metropolis, construction works of Kwu Tung Station and Hung Shui Kiu Station are proceeding in full swing for completion in 2027 and 2030 respectively. Adopting an innovative mind-set, the Government has signed the Part 1 Project Agreement with the MTRCL. It will concurrently develop the Northern Link Spur Line in combination with the Main Line, achieving simultaneous commissioning by 2034 or earlier.

54. Cross-boundary railway projects will lead to the comprehensive integration of metro networks in Hong Kong and Shenzhen, significantly enhancing the GBA’s infrastructure connectivity and boosting industry’s confidence in setting up operations. We are pressing ahead with the Hong Kong-Shenzhen Western Rail Link (Hung Shui Kiu-Qianhai) project and have invited expressions of interest from contractors and operators on the Hong Kong section of the project.

³ The existing Steering Committee on the Northern Metropolis will be discontinued.
â�´ Not including the 87-hectare Hong Kong Park.

(To be continued.)

CE’s speech in delivering “The Chief Executive’s 2025 Policy Address” to LegCo (2)

Source: Hong Kong Government special administrative region

Chapter II  

Steadfastly and Successfully Implement “One Country, Two Systems” and Strengthen Our Governance Systems

(A) Resolutely Implement the “One Country, Two Systems” Principle “One Country, Two Systems” Remains Unchanged

10. As President Xi Jinping pointed out, “One Country, Two Systems” possesses its distinctive institutional strengths and strong vitality, is a good system that sustains the long-term prosperity and stability of Hong Kong and Macao. It is a good system that facilitates endeavours to build China into a great country and achieve national rejuvenation, and it is a good system for ensuring peaceful coexistence and mutual benefit between different social systems. So we must stay committed to this cause.

11. We will continue to fully, faithfully and resolutely implement “One Country, Two Systems”, “Hong Kong people administering Hong Kong” and a high degree of autonomy. “One Country, Two Systems” is the best institutional arrangement for maintaining Hong Kong’s long-term prosperity and stability. The more firmly the “One Country” principle is upheld, the greater the strength the “Two Systems” will be unleashed.

12. Being a global metropolis, Hong Kong has remained an open, inclusive, safe and stable city underpinned by the rule of law since our return to the Motherland 28 years ago. With an ever-expanding influence internationally, Hong Kong is rated the world’s freest economy, as well as an advanced and business-friendly city. These fully demonstrate the notable institutional strengths and great vitality of “One Country, Two Systems”.

13. Hong Kong has solid backing from the Motherland, enjoying far-reaching opportunities brought by national development, from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to the Belt and Road (B&R) Initiative. Meanwhile, as an international city with its distinctive role of connecting to the rest of the world, Hong Kong also has infinite room for development.

14. The Hong Kong Special Administrative Region (HKSAR) Government will, as always, maintain the constitutional order of the HKSAR as stipulated under the Constitution and the Basic Law, ensuring the steadfast and successful implementation of “One Country, Two Systems”.

Safeguard National Security

15. The fundamental premise of “One Country, Two Systems” is to safeguard sovereignty, security and development interests of our nation.

16. Since the implementation of the Hong Kong National Security Law five years ago, we have overcome turmoil and unrest, and maintained safety and stability in our society. Hong Kong has transitioned from chaos to order and is now advancing from stability to prosperity. The HKSAR Government will continue to steadfastly safeguard national sovereignty, security and development interests, while thoroughly adopting the Holistic Approach to National Security. We will remain vigilant at all times, prevent and mitigate risks, and ensure the long-term stability and safety of Hong Kong.

17. We will continue to enhance the legal system and enforcement mechanism for safeguarding national security, doing our utmost to ensure that laws are observed and strictly enforced to bring offenders to account, so as to prevent, suppress and impose punishment for acts and activities endangering national security.

18. The Government will spare no effort in promoting national security education. Since its opening a year ago, the National Security Exhibition Gallery has already attracted over one million visitors. More than 3 300 national security education district tutors have been trained to promote national security messages in the community.

Implement “Patriots Administering Hong Kong”

19. With the improved electoral system and district governance system of the HKSAR, the principle of “patriots administering Hong Kong” has been fully implemented. The HKSAR Government has held six important elections, including the recent Election Committee Subsector By-elections.

20. The HKSAR will devote all efforts in preparing for the general election for the eighth-term Legislative Council (LegCo) to be held on 7 December this year, ensuring that the election is conducted in a fair, just, honest, safe and orderly manner.

Improve Governance at District Level

21. As part of the reforms to improve district governance, the Government set up the Steering Committee on District Governance and the Task Force on District Governance in July 2023. They are chaired by the Chief Secretary for Administration and the Deputy Chief Secretary for Administration respectively, with the aim of strengthening co-ordination to address issues such as environmental hygiene, community beautification, facility development and community services more effectively.

22. The Home and Youth Affairs Bureau (HYAB) and the Home Affairs Department (HAD) will continue to lead District Councils (DCs), the “three district committees”¹ and Care Teams to proactively harness local strengths to foster compassion and vibrancy within the community.

(B) Patriotic Education

Commemorate the 80th Anniversary of Victory in the Chinese People’s War of Resistance against Japanese Aggression and in the World Anti-Fascist War

23. This year marks the 80th anniversary of victory in the Chinese People’s War of Resistance against Japanese Aggression and in the World Anti-Fascist War. The HKSAR Government has organised a series of large-scale commemorative activities, including exhibitions, film screenings and library events, for the public to gain a deeper understanding of the spirit of unity and resilience displayed by Chinese people in the fight for peace. We will collaborate with Shenzhen to promote a new red educational route, under the theme of “Chinese Cultural Celebrity Rescue” history, so as to enhance understanding among people of Hong Kong and tourists of the history of the War of Resistance in Hong Kong.

24. We will comprehensively review and conduct restoration and protection work on historic sites relating to the participation of the Communist Party of China in the War of Resistance in various districts, with a view to integrating them into tourism routes and educational activities.
Promote Chinese Culture

25. The Government will give full play to the role of the Chinese Culture Promotion Office. This includes curating the Chinese Culture Festival and exhibitions of the General History of China series as signature projects, and spearheading the establishment of a museum to showcase the development and achievements of our country, as well as the Chinese Culture Experience Centre. The Office will also continue to launch a broad spectrum of community-oriented initiatives to promote Chinese culture.

Promote Activities and Facilities on Patriotic Education

26. The Government will promote patriotic education facilities in the Mainland, making them the patriotic education bases of the HKSAR to encourage more students and young people to visit.

27. We will establish close connection with patriotic groups to unite efforts in organising more patriotic education activities.

Strengthen Students’ Affection for and Sense of Belonging to the Country

28. The Education Bureau (EDB) will integrate patriotic education into daily learning and teaching. We will popularise the “Love Our Home, Treasure Our Country” series of activities, continuously strengthen the Constitution and Basic Law Student Ambassadors Training Scheme, design itineraries for students to experience the founding history of our country, and conduct focus inspections on national education. We will also continue to provide professional development and activities for teachers and students that tie in with the updated national security education, promulgate the final version of the Values Education Curriculum Framework, and optimise the curriculum frameworks for the senior secondary Chinese History and History subjects.

(C) Further Enhance Governance

Establish the Heads of Department Accountability System

29. Since assuming office, I have been constantly taking forward reforms to build a “result-oriented” government. In the World Competitiveness Yearbook 2025, Hong Kong ranked second globally in “Government efficiency”, reflecting well on Hong Kong’s civil servants being an outstanding team, and the reforms introduced by the current-term Government, alongside the concerted efforts of the civil service.

30. Nevertheless, given the large number of executive departments and officers in the Government, problems inevitably occur in individual departments. The causes behind them must be identified in good time and rectified to prevent them from undermining the overall trust that society places in the Government, and to avoid causing injustice to the overwhelming majority of our civil servants, who are dedicated to their duties.

31. I believe that effective management is of utmost importance. Senior civil servants are all responsible for management. I have therefore been considering ways to strengthen their sense of responsibility to enhance the overall management standard of the departments. After considerations, I believe that the most direct and effective way is to strengthen the accountability of the HoDs by clearly emphasising that HoDs are tasked to build a strong management team, and lead their senior civil servants to jointly manage staff and operation systems. While HoDs have always been responsible for the work of their departments, the Government has not yet institutionalised overall accountability. Establishing a Heads of Department Accountability System (the HoD Accountability System), therefore, is of critical significance. The details are as follows.

Aims

32. Establishing the HoD Accountability System has the following primary aims:

(i) To render the political accountability required of Secretaries of Department and Directors of Bureau in policy formulation, and the administrative accountability required of civil servants in implementing policy initiatives better articulated with each other, with clarification of their respective roles.

(ii) To drive HoDs to establish an effective management team and operating systems, eliminating bottlenecks and plugging shortfalls, improving workflow on an ongoing basis, and continuously enhancing departmental efficiency.

(iii) To identify the deficiencies whenever a problem occurs in a department, putting in place improvements, attributing responsibility to the appropriate parties, and taking administrative or disciplinary actions against those responsible in accordance with the civil service management regime. The consequences include warnings, reprimands, not being granted a salary increment, relegation in rank, reduction in salary, compulsory retirement and even dismissal.

The Investigation Mechanism

33. Investigations will be divided into two tiers, in accordance with the severity of the problems identified:

(i) Tier I: if the problems are of a general nature, the investigation should be taken up by the HoD concerned. They will be responsible for identifying the deficiencies of the department and putting in place improvements, taking forward administrative or disciplinary actions against the officers who have underperformed or engaged in misconduct in accordance with the civil service management regime.

(ii) Tier II: if a serious problem occurs in a department or the problem is widespread or a repetitive, systemic one, or there are indications that the HoD concerned is implicated in the problem, the investigation will be carried out by an investigation panel set up specifically under the HoD Accountability System. The panel will identify the deficiencies of the department and attribute responsibility to the appropriate parties. It should be independent from the Government, such that the investigation will be impartial and independent. It should be able to examine civil servants of all ranks to ensure that the investigation is thorough. It should be familiar with the general operation of the Government, to ensure that the investigation is completed efficiently. It should be a standing team to be called upon, ensuring its certainty and readiness.

Independent Panel of Investigation

34. To achieve the aforementioned aims, I will expand the existing functions of the Public Service Commission² to enable it to conduct investigations. Independent of the Government and in operation for many years, the commission is conversant with the management system of the civil service. Its current statutory functions include advising the Chief Executive on matters affecting the public service (including disciplinary cases of civil servants). The existing functions of the commission do not cover investigation. Extending its functions to include investigation, and inviting experts or government officials not related to the department being investigated to participate, can ensure both the independence and impartiality of the investigations concerned as well as the efficiency of the investigation, thereby achieving the four requirements set out in paragraph 33(ii).

35. The Government will make subsidiary legislation under the Public Service Commission Ordinance to implement the above proposal.

Activation Mechanism

36. When a situation as described in paragraph 33(ii) occurs in a department, the relevant Director of Bureau must report it to the Secretary of Department concerned. Upon obtaining the latter’s agreement, the Director of Bureau should activate the Tier II independent investigation mechanism. The Secretary of Department concerned can also, on their own initiative, direct the relevant Director of Bureau to activate the investigation mechanism.

Strengthen the Performance Appraisal System for Civil Servants

37. The overall performance of civil servants is fundamental to the effectiveness of departments. A fair and honest assessment of staff performance can encourage good-performers to strive for excellence, and suitably handle staff who have under-performed or misconducted themselves. In this connection, establishing an effective performance appraisal system will help HoDs enhance the overall effectiveness of the departments, raise the morale of good performers, assist those with room for improvement to improve their capability, and handle the small number of staff involved in misconduct in a fair manner.

38. The Civil Service Bureau is tasked to conduct a study developing a more rigorous performance appraisal system that reflects and differentiates the performance levels of staff more effectively.

39. Apart from assessing the performance of senior civil servants (including HoDs) in accordance with the existing mechanism, Secretaries of Department and Directors of Bureau will need to supervise the senior civil servants under their charge to properly perform personnel management work for staff at all ranks, including performance appraisal, posting, promotion and discipline.

Set up an AI Efficacy Enhancement Team

40. The application of AI in the work of the Government can effectively enhance efficiency. The Census and Statistics Department, for example, has applied AI technology to examine trade data and retrieve financial information from the financial statements and announcements of thousands of listed companies for statistical compilation. This has resulted in an exponential surge in efficiency. The 1823 services also use AI technology to recognise automatically voice enquiries from members of the public, and help draft written responses, reducing about 30% of the processing time.

41. To further enhance the efficacy of the Government, I will set up an AI Efficacy Enhancement Team to co-ordinate and steer government departments to:

(i) Apply AI technology effectively to their work.

(ii) Explore process re-engineering to keep pace with the times.

(iii) Promote technological reform in departments to improve efficacy.

42. The team will be led by the Deputy Chief Secretary for Administration, with the Secretary for Innovation, Technology and Industry and the Commissioner for Digital Policy serving as the Deputy Leader and Secretary General respectively. The team will also invite a representative from the private sector to serve as another Deputy Leader, to bring in new perspectives and front-line market experience. The team will examine with government departments their need for reform, with priority given to departments with greater interface with the public. Departments may also initiate request to the team for prioritised assistance in enhancing their efficiency.

¹ Area Committees, District Fight Crime Committees and District Fire Safety Committees.

² The Public Service Commission, consisting of a Chairman and two to eight members, is a statutory body established under the Public Service Commission Ordinance. Its functions include advising the Chief Executive regarding the public service and matters affecting the conduct and discipline of public officers; the Ordinance also empowers the Chief Executive in Council to make regulations.

(To be continued.)

CE’s speech in delivering “The Chief Executive’s 2025 Policy Address” to LegCo (1)

Source: Hong Kong Government special administrative region

     Following is the translation of the speech made by the Chief Executive, Mr John Lee, in delivering “The Chief Executive’s 2025 Policy Address” to the Legislative Council this morning (September 17):

Mr President, Honourable Members and fellow citizens,

Chapter I  

Deepen Reforms and Committed to People’s Livelihood

1. This year marks the conclusion of the National 14th Five-Year Plan period and the preparatory year for the 15th Five-Year Plan. This Policy Address serves as a roadmap for Hong Kong to strive for a vibrant economy, pursue development, and improve people’s livelihood – accelerating our advancement from stability to prosperity. It also outlines a strategic plan for Hong Kong to proactively align with national development strategies and achieve breakthroughs in forging a new landscape.

2. My ultimate objective in governance is to improve people’s livelihood with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people. The well-being of our people is intimately linked to the health of our economy, making economic growth the key driver of livelihood improvement. Growth creates job opportunities and wealth, which will in turn generate additional resources for public services, enabling the Government to deliver more and better services. Improvement in people’s livelihood will then spark new social demands that stimulate market development, further promoting economic growth. The economy and people’s livelihood are mutually reinforcing: each strengthens the other.

3. Since taking office, I have been actively promoting reforms, both within the Government and in the wider community, thereby facilitating economic growth and improving people’s livelihood. I have transformed and instilled in the Government a culture that is “result-oriented”. We have been pressing ahead with public housing production and introduced Light Public Housing (LPH). Three years ago, applicants for public rental housing (PRH) waited an average of 6.1 years for a flat; the Composite Waiting Time is now 5.1 years, a reduction of one full year. Over the same period, the median household income rose by $3,000, an increase of 11%. Since I assumed office, the economy has rebounded – turning from negative to positive and gaining momentum. This year’s growth is projected at 2% – 3%. In the past three years, Hong Kong has moved up one place to become the third-ranked global financial centre and has climbed four spots to rank third globally in overall competitiveness. In the last two years, we have risen 12 places to the fourth globally in talent competitiveness. Furthermore, Hong Kong is ranked seventh among the world’s top 10 safest cities.

4. The Policy Address this year is anchored in two pillars: the economy and people’s livelihood.

5. The Northern Metropolis is the new engine for Hong Kong’s economic development and holds immense potential. I will accelerate its development and set up the Committee on Development of the Northern Metropolis under my guidance to formulate operational models for the various development areas therein. I will also expedite the development of the University Town, streamline administrative procedures by removing barriers and easing restrictions, adopt safe, efficient and cost-effective construction practices, and introduce dedicated legislation to fast-track the Northern Metropolis development. The Government will attract and cultivate industries to create jobs and enhance productivity. Preferential policy packages will also be formulated to improve efficiency and flexibility in negotiations with enterprises that are establishing and scaling up operations, thereby creating more high-quality, high income jobs and further boosting productivity.

6. Under “One Country, Two Systems”, Hong Kong enjoys the unique advantages of attracting overseas enterprises and assisting Mainland enterprises to go global. In the past, we focused primarily on bringing in enterprises, achieving remarkable growth and success. The new opportunities ahead for Hong Kong, however, will come from helping Mainland enterprises expand abroad. This rapid shift in opportunities reflects the reshaping of the global trade order, prompting Mainland enterprises to shift from concentrating on a single market and towards proactively tapping into emerging markets. The Government will leverage Hong Kong’s strength as a platform for going global to reinforce the role of Hong Kong as an international centre, capitalising on our advantages in areas such as finance, trading, professional services, supply chain management and professional networks, creating more jobs and higher income, further promoting the headquarters economy to unlock more business opportunities. We will also develop education, technology and talent in an integrated manner, and press ahead with the integrated development of culture, sports and tourism, enabling the people of Hong Kong to live in a community with thriving economy and vibrant culture.

7. To strengthen governance, I will establish an accountability system for Heads of Department (HoDs) by systematising and institutionalising their responsibility for their departments, and enhance the appraisal system for civil servants so that a culture of continuous improvement can take root. I will also set up the AI Efficacy Enhancement Team to drive technological reform, co-ordinating and steering government departments in the effective use of artificial intelligence (AI) technology and in the re-engineering of outdated workflows. Meanwhile, I will promote the development of AI+ with strong emphasis on safety risk prevention, and implement AI government services and facilitate the wide-scale application and development of AI across different sectors in the society to boost overall efficiency. I will also put into practice the philosophy of better integration of “an efficient market” with “a capable government”, and introduce market-based business model to enhance the services of the Leisure and Cultural Services Department (LCSD).

8. This Policy Address concludes with the most extensive chapter concerning people’s livelihood. It encompasses nine critical areas which are essential to the well-being of the community, covering land and housing, transport, healthcare, social welfare, labour protection and a caring and inclusive society, under which include continuously increasing public housing supply to enrich the housing ladder; creating land for large development projects, promoting long-term economic development and addressing housing needs while increasing government land reserve; continuing healthcare reform; implementing 11 measures to support local economy, continuing the work on targeted poverty alleviation, promoting the principle of “ageing in place as the core, with institutional care as back-up”, supporting and protecting workers, and establishing the Working Group on Ageing Society Strategies to meet the challenges brought by ageing. These demonstrates my commitment to placing people’s livelihood at the heart of governance. Indeed, economic development ultimately serves the well-being of our people, enabling them to enjoy better quality of life.

9. I would like to thank the public for their valuable opinions during the consultation exercise, and for their broad support of my policy directions and strategies. This Policy Address will elaborate on our policy objectives, key measures and key performance indicators (KPIs). A Supplement offering more details on the policy measures and related matters has also been compiled.

(To be continued.)

Speech by CE at Investopia Global – Hong Kong 2025 (English only) (with video)

Source: Hong Kong Government special administrative region

  ​Following is the video speech by the Chief Executive, Mr John Lee, at the Investopia Global – Hong Kong 2025 today (September 17):
 
Your Excellency Minister Abdulla Bin Touq Al Marri (Minister of Economy of United Arab Emirates (UAE) and Chairman of Investopia), distinguished guests, ladies and gentlemen,
 
​     It is my great pleasure to be part of the Investopia Global Hong Kong today. I would like to begin by expressing my gratitude to  the United Arab Emirates, for bringing this forward-looking platform to Hong Kong. I would also like to extend a very warm welcome to our friends from the UAE and around the globe.
 
     Since its launch in 2021, Investopia has developed into a remarkable global network. It connects investors, entrepreneurs and policymakers, fostering dialogue and creating opportunities across regions. Staging this platform in Hong Kong, for the first time, is testament to the deepening partnership between Hong Kong and the UAE.
 
     The UAE is now Hong Kong’s largest trading partner in the Middle East, and Hong Kong the UAE’s seventh largest trading partner in the world. Our growing economic and trade ties are built on shared values of openness and fairness, and our vision of sustainable development.
 
     In 2023, I had the honour of leading a high-level business delegation to visit the beautiful country of UAE. More than its friendly hospitality, I was impressed by the ambition, energy and drive of the country’s booming economy.
 
     During the visit, we concluded seven co-operation agreements between Hong Kong and the UAE. Apart from formal agreements, we have also built a strong friendship with our counterparts in the UAE, unleashing tremendous potential of our co-operation. And today’s gathering, I’m pleased to say, is another big step forward in unleashing that potential.
 
     Both Hong Kong and the UAE stand as global business hubs in strategic locations. Whereas Hong Kong connects investors with China, our country, and the Asia-Pacific, the UAE links the world with the Middle East, Africa and Europe. Together, we can form an alliance of commerce that spans continents to generate investment synergy.
 
     Under the unique “one country, two systems” principle, Hong Kong is the only world city that enjoys both the China advantage and the global advantage. We are the freest economy in the world, and one of the world’s three most competitive economies. Our long tradition of the rule of law, and a common law system that dovetails with most global financial hubs, provide key assurances to a world of investors.
 
     As an international financial, shipping and trade centre, Hong Kong has the infrastructure and services that provide key support to the international trade order. Our advanced ports, airports and logistics systems enhance efficiency in trade flows, supporting cross-border e-commerce and building supply chains that are fit for the future. And with the strengthened co-operation between Hong Kong and the UAE, I am confident that we will continue to witness more dual listings, increased cross-border capital flows and collaboration in green and sustainable finance.
 
     Hong Kong offers business-friendly policies to foreign enterprises, those from the UAE very much included. By setting up your offices here, your companies can enjoy more flexibility and convenience when doing business on the Mainland, under the updated Mainland and Hong Kong Closer Economic Partnership Arrangement. Our proximity to the Mainland and various travel facilitation schemes also means that it is easy to visit your business partners on the Mainland for meetings, conferences, or simply a cup of coffee.
 
     Innovation is another promising area. Both our economies invest heavily in start-ups, global talent and ecosystems that inspire innovation and creativity. In Hong Kong, our expanding green technology sector and science parks are building momentum. These efforts connect well with the UAE’s Hub71 and other accelerators.
 
     With this shared commitment to excellence, it comes as no surprise that in the latest World Talent Ranking, both Hong Kong and the UAE soared to their highest-ever positions. Hong Kong climbed 12 positions in two years to come fourth in the ranking, while the UAE took a whopping 12-place leap over two years to come ninth.
 
     Published by the International Institute for Management Development last week, the report recognised the outstanding performance of both the UAE and Hong Kong, stating that our targeted reforms and investment have resulted in significant gains in talent competitiveness over time.
 
     Ladies and gentlemen, as we chart the path ahead, Hong Kong will continue to serve as both a “super connector” and “super value-adder” for investors from the UAE and the world. Together with the UAE, we will build deeper connections and create greater values for businesses, investors and entrepreneurs around the world in times of global economic uncertainty.  
 
     I look forward to welcoming more overseas enterprises and capital to Hong Kong in the years ahead, transforming opportunities into lasting success.
 
     I wish you all the best of business and every success here and beyond. Thank you.

Hong Kong’s ranking in Global Innovation Index rises

Source: Hong Kong Government special administrative region – 4

In the Global Innovation Index (GII) 2025 released today (September 16) by the World Intellectual Property Organization, Hong Kong’s ranking rose by three places to 15th globally among 139 economies, and remained 5th in Asia.
 
As regards the two sub-indices under the GII, Hong Kong’s ranking with respect to the “Innovation Input” sub-index rose to 8th globally, and its ranking in the “Innovation Output” sub-index leapt by nine places to 22nd.
 
Hong Kong’s scores in all five pillars under the “Innovation Input” sub-index were higher than the high-income group averages, with “Market Sophistication” ranking 2nd globally and “Institutions” ranking 8th globally. As for sub-pillars, Hong Kong topped the ranking in “Credit”, and ranked among the global top 10 in many areas, including “Tertiary Education” (3rd), “Knowledge Absorption” (5th), “Information and Communication Technology (ICT)” (6th), “Institutional Environment” (9th) and “Investment” (9th). Data also showed that Hong Kong’s gross expenditure on research and development (R&D) and the number of researchers continued to rise.
 
As for the “Innovation Output” sub-index, Hong Kong’s ranking in the “Knowledge and Technology Outputs” pillar jumped notably by 28 places to 30th. It ranked 17th globally in the “Creative Outputs” pillar, with the “Creative Goods and Services” (7th) sub-pillar also ranking among the global leading positions. Data also showed that Hong Kong’s number of patents and high-tech manufacturing output continued to increase.
 
A spokesman for the Hong Kong Special Administrative Region Government today said, “We are pleased to see the good progress Hong Kong has achieved in the GII. Expediting the development of innovation and technology has been a policy priority of the Government. In recent years, Hong Kong has been actively optimising the local I&T landscape. A development framework supported by ‘three major I&T parks’ and ‘five key R&D institutions’ is taking shape. Meanwhile, the Government has launched a series of conducive policy initiatives to consolidate Hong Kong’s strengths in basic research, accelerate the midstream technology transfer and commercialisation of R&D outcomes, and foster the development of the I&T industry. Developing I&T requires sustained capital investment and talent support. Hong Kong’s leading rankings in the ‘Credit’, ‘Investment’, ‘Tertiary Education’ and ‘Knowledge Absorption’ sub-pillars fully demonstrate that Hong Kong is well positioned to continuously advance in innovation. We will continue to enhance the I&T ecosystem and attract global I&T resources and talent, with a view to developing Hong Kong into an international I&T centre at full steam.”
 
The GII is a ranking of the innovation capabilities and achievements of economies around the world. Its evaluation criteria cover multiple aspects, including institutions, human capital and research infrastructure, credit, investment, collaboration, knowledge creation, absorption and diffusion, and creative outputs.
 
The GII consists of two sub-indices: “Innovation Input” and “Innovation Output”. There are five pillars under the “Innovation Input” sub-index, namely “Institutions”, “Market Sophistication”, “Business Sophistication”, “Human Capital and Research” and “Infrastructure”; and two pillars under the “Innovation Output” sub-index, namely “Knowledge and Technology Outputs” and “Creative Outputs”. Each of the above pillars is further broken down into three sub-pillars.

New fees to be implemented at Aberdeen Tunnel, Shing Mun Tunnels and parking meters

Source: Hong Kong Government special administrative region – 4

     The Transport Department (TD) today (September 16) reminded members of the public that new tolls will be implemented for the Aberdeen Tunnel and Shing Mun Tunnels starting from September 21 (Sunday). The fixed toll for all vehicles throughout the day will be adjusted from the existing $5 to $8. The new toll is expected to have minimal impact on traffic, while enabling tunnel operation to largely attain break-even.

     Separately, new charges for metered parking spaces will take effect from September 28 (Sunday). The maximum fee for metered parking will be adjusted from $2 per 15 minutes to $4 per 15 minutes, i.e. a maximum fee of $16 per hour, with a view to increasing the turnover of vehicles using metered parking spaces, so that their supply can better meet the short-term parking needs of motorists. Fees for metered parking spaces for goods vehicles, buses and coaches will remain unchanged at the existing level.

     The TD will update relevant systems to ensure the smooth implementation of new fees and remind motorists of the new fees via the HKeToll and HKeMobility mobile applications respectively. Motorists can also refer to the TD’s webpage on tunnel tolls and parking meters for details.

MOFA response to August 11 collision between a Chinese PLA destroyer and a coast guard cutter while in pursuit of Philippine Coast Guard patrol vessel BRP Suluan near Minzhu Reef

Source: Republic of China Taiwan

MOFA response to August 11 collision between a Chinese PLA destroyer and a coast guard cutter while in pursuit of Philippine Coast Guard patrol vessel BRP Suluan near Minzhu Reef

Date:2025-08-14
Data Source:Department of East Asian and Pacific Affairs

August 14, 2025 

The Ministry of Foreign Affairs (MOFA) expresses grave concern over the recent incident in the South China Sea near Minzhu Reef, during which a People’s Liberation Army Navy destroyer and a China Coast Guard cutter conducted dangerous maneuvers while in pursuit of a Philippine Coast Guard patrol vessel. This aggressive act seriously disrupted regional peace and stability and directly endangered the lives and safety of Philippine coast guard personnel.
 
MOFA is closely following ongoing disputes over islands in the South China Sea and urges all parties to exercise restraint. China, in particular, should not take any actions to escalate the current situation, jeopardize the lives and safety of seafarers, and undermine peace, stability, and the status quo in the South China Sea.
 
MOFA reiterates that South China Sea issues can only be peacefully resolved through appropriate multilateral dialogue and conflict resolution mechanisms. Taiwan and other like-minded countries will continue to monitor developments in the South China Sea and work together to uphold regional security and stability.

The Australian Financial Review just published the article “Don’t believe China’s lies about Taiwan” by Director General David Cheng-Wei Wu

Source: Republic of China Taiwan

The CCP distorts history — from WWII to UNGA Resolution 2758 — to push its false “one China” narrative. But the truth is clear:
It was the Republic of China (now in Taiwan) that fought against Japan and fascism. Communist China (PRC) did not even exist at the time.
UNGA Resolution 2758 only resolved the issue of China’s UN seat — it never said Taiwan is part of the PRC.
Australia has already spoken up: both the Australian Senate and NSW Legislative Council passed motions rejecting Beijing’s misinterpretation.
China’s manipulation of history, pressure on UN members, aggression against Taiwan, and retaliation against Australia after COVID show it is an untrustworthy regime.
For peace, stability, and democracy in the Indo-Pacific, the world must stand with Taiwan and resist CCP disinformation, false narratives, and lies.