LCQ18: Promoting building rehabilitation and redevelopment of old districts

Source: Hong Kong Government special administrative region

     ​Following is a question by the Hon Yang Wing-kit and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (July 15):

Question:
 
     There are views that the problem of ageing buildings in Hong Kong is becoming increasingly acute, and that the Government should actively promote building rehabilitation and accelerate the pace of redevelopment in old districts, so as to facilitate the replanning of such districts and improve the living environment of the public. In this connection, will the Government inform this Council:
 
(1) given that the Urban Renewal Authority (URA) adopts a “dynamic management” strategy to appropriately adjust the planning and pace of implementation of different projects in the light of market situations and building conditions, whether the Government knows the specific assumptions adopted by the URA when conducting financial stress tests to maintain its financial soundness, as well as the respective objective quantitative indicators (e.g. the projected amount of loss, the minimum cash flow threshold or the rate of decline in the property price index) used for assessing whether projects should be deferred or scaled down;
 
(2) in respect of large-scale redevelopment projects with high acquisition costs, such as the “13 Streets” project in To Kwa Wan, whether the Government knows if the URA will consider co-investing with developers for joint participation in such projects and flexibly adjusting tender conditions (including lowering upfront costs and optimising the profit-sharing ratio), and whether the Government will expedite the implementation of, and expand the application of the new planning guidelines on plot ratio transfer to large-scale urban redevelopment projects, so as to increase market incentives for participation in redevelopment;
 
(3) given that the Government currently relies on various non-recurrent schemes to promote building maintenance, whether the authorities will study the establishment of a permanent building rehabilitation fund that will receive capital injections from the Government and operate on a sustainable basis, with a view to promoting the transition from corrective maintenance to preventive maintenance; if so, of the details; if not, the reasons for that;
 
(4) whether the authorities will update the Hong Kong Planning Standards and Guidelines to cater for the redevelopment of old districts, including updating the requirements for parking spaces and electric vehicle charging facilities applicable to residential and retail uses, and mandating a proportional increase in community care facilities for the elderly and public green spaces in large-scale redevelopment projects, so as to address population ageing; if so, of the details; if not, the reasons for that; and
 
(5) given that the promotion of smart communities and models such as “single site, multiple use” involves multiple departments and complicated approval procedures, whether the Government will consider establishing a higher-level, cross-departmental steering committee to be led by an official at the Secretary of Department level and tasked with the specific responsibility of rationalising the approval processes for redevelopment and rehabilitation in old districts; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The Government has all along been adopting a two-pronged strategy of rehabilitation and redevelopment to arrest urban decay, and the Urban Renewal Authority (URA) is our important partner in the urban renewal work. The URA has been taking forward the urban renewal work under the “planning-led and district-based” approach as promulgated under the Urban Renewal Strategy. The URA will re-plan the traffic routes, pedestrian facilities as well as greening and leisure areas, etc, within the district when implementing urban redevelopment projects, with a view to enhancing the planning benefits of the projects. Meanwhile, for building rehabilitation, the Government has allocated a total of $19 billion since 2018 for the URA to implement various building rehabilitation support schemes.
 
     Having consulted the URA, our reply to various parts of the Hon Yang Wing-kit’s question is as follows:
 
(1) Under the Urban Renewal Authority Ordinance (Cap. 563), the URA is required to exercise due care and diligence in handling its finances, thereby maintaining a sound and healthy financial position in the long run. To cope with the challenges posed by the economic environment and property market situations on sustaining urban renewal, the URA will adopt a dynamic management approach to review, from time to time, the redevelopment projects which have commenced and/or are planned to commence the relevant redevelopment procedures and suitably adjust the planning and implementation pace of different projects to cope with the market situations and building conditions so as to allocate resources in a flexible manner. The URA will take into account a basket of factors, including its cash flow and financial conditions, global economic conditions, local property market trends, and the complexity and scale of the projects, etc, in assessing whether to adjust the pace of implementation of different projects, with an aim to striking a balance among maintaining its financial stability, effectively promoting the regeneration of old districts and addressing the expectations of the local community, to achieve its mission of carrying out urban renewal in a sustainable and orderly manner.
 
     While the URA Board and its management are responsible for the URA’s day-to-day operational and financial management, the Government would oversee and provide steer over the URA’s work through means such as appointment to its Board, approval of the annual business plan/five-year corporate plan, and regular high-level liaison meetings with the URA. To maintain the momentum for urban redevelopment, the Government has been providing financial support to the URA, such as granting land resources to the URA at nominal land premium (the total amount of land premium forgone by the Government arising from this measure since the URA’s establishment is over $25 billion); granting Government, Institution or Community sites in the vicinity of suitable URA redevelopment projects to increase the overall development potential of the redevelopment project; as well as granting two sites at Bailey Street, Hung Hom and in Tseung Kwan O Area 137 to the URA by private treaty at nominal premium last year to help finance the redevelopment projects, etc.
 
(2) Upon title consolidation, the URA in general will put the redevelopment sites to the market for bidding by developers, so as to take forward the redevelopment projects in collaboration with the private sector. Before new projects are put to tender, the URA will, via the Development Facilitation Services, enhance the information transparency and communication with the market in a two-way manner. The URA can flexibly adjust the tender terms where necessary so as to enhance the project arrangements and increase the confidence of developers in submitting bids, such as introducing staged payment arrangement for tender amount, etc.
 
     As for the planning tool of transfer of plot ratio, the Town Planning Board promulgated relevant planning guidelines for the pilot scheme in the districts of Yau Ma Tei and Mong Kok in July 2023, allowing the transfer of plot ratio between sites within the same district to provide incentives to the market to expedite the pace of urban redevelopment projects. The URA also adopted the concept of transfer of plot ratio in its Sai Yee Street/Flower Market Road Development Scheme in Mong Kok, which was commenced in 2024, by consolidating and transferring the development potential of several small and scattered sites to a larger site for mixed development, so as to enhance the planning gains and the commercial viability of the project. The Chief Executive’s 2025 Policy Address has also stated that in order to further incentivise the market to make use of the planning tool of transfer of plot ratio to expedite urban renewal, the Government will relax the existing arrangement to allow cross-district transfer of plot ratio and relax various arrangements under the original scheme, and this proposal will also apply to the URA’s projects. The Government has conducted consultation on this Policy Address’ proposal, during which relevant stakeholders’ views were collected, including the URA Board, professional bodies and industry associations, etc. Relevant stakeholders in general supported our proposed direction. Our target is to finalise and implement the relevant measures in the third quarter of this year. 
 
(3) The Government has since 2018 introduced a number of building rehabilitation subsidy schemes in partnership with the URA, including the Operation Building Bright 2.0 (OBB 2.0). There is broad consensus that the OBB 2.0 helps support owners in carrying out major building maintenance works. Owners’ continued commitment to proper building maintenance will effectively extend the lifespan of buildings and alleviate pressure for redevelopment. The Government believes that it is worthwhile to continue providing subsidies to owners in need, and therefore announced in the 2026-27 Budget a comprehensive review of the OBB 2.0, which will draw on the past experience to formulate a new subsidy scheme. An amount of $3 billion has been earmarked for this purpose. We will complete the review and formulate the details of the new subsidy scheme by early next year, during which the Government will also consult the Panel on Development of the Legislative Council. Our review work will take into account the following:
 
(a) how to set more targeted eligibility criteria to enable more precise matching of resources with building maintenance needs (such as owners of “three-nil” buildings and those of old and dilapidated private buildings with lower financial ability);
 
(b) how to strengthen the implementation of the regulatory mechanism to ensure that subsidised households, with the support of the enhanced version of Smart Tender (Note), can complete the maintenance works as soon as possible; and
 
(c) how to encourage property owners to maintain regular building maintenance, thereby preventing the problems and the burden of having to carry out major repairs in the future from accumulating.
 
(4) The Hong Kong Planning Standards and Guidelines (HKPSG) stipulate the criteria for determining the scale, location and site requirements of various land uses and facilities covered by the policies of various Government bureaux/departments. In response to ageing population, the Social Welfare Department proposed amendments to Chapter 3 of the HKPSG according to the recommendations in the Elderly Services Programme Plan in 2018, where population-based planning standards for elderly services and facilities were added and updated, including the floor area requirements and planning ratios for district elderly community centres, neighbourhood elderly centres, community care services, and residential care services, so as to align more effectively with the goal of strengthening elderly services. Furthermore, Chapter 4 and Chapter 8 of the HKPSG set out the planning standards and criteria for greening and parking spaces/EV chargers respectively. The Planning Department will help facilitate if relevant bureaux/departments review the criteria and raise updates based on their latest policy considerations.
 
     The URA has been providing necessary community facilities when taking forward its urban redevelopment projects, such as providing a 100-place elderly facility in the Bailey Street/Chi Kiang Street Project which is currently under tender, and providing a 20 metre-wide waterfront promenade and a 25 metre-wide at-grade open-air waterfront plaza for public enjoyment in the Ming Lun Street/Ma Tau Kok Road Development Scheme and the To Kwa Wan Road/Ma Tau Kok Road Development Scheme, etc.
 
(5) We acknowledge that the co-ordination with other Government departments during the implementation of the URA’s urban redevelopment projects is highly important. On this, the Development Bureau (DEVB) has an Urban Renewal Unit, which is responsible for overseeing the overall operation of the URA, as well as co-ordinating the communication and collaboration of the URA with other departments, so as to take forward the new ideas and projects of urban renewal. The Development Projects Facilitation Office under the DEVB also provides assistance to the URA’s redevelopment projects (such as the Kwun Tong Town Centre Project), so as to co-ordinate various departments in processing the approval applications for developing the URA’s projects.
 
Note: The DEVB, in collaboration with the URA, targets to launch the enhanced Smart Tender services in the fourth quarter of 2026 to strengthen the support for owners’ corporations and owners in engaging compliant consultants and contractors to properly carry out building maintenance works. The enhanced Smart Tender services currently being developed will include establishing more rigorous “pre-qualified lists” of consultants and contractors, and the URA to perform the gatekeeping role by conducting the tendering and tender evaluation for owners in engaging consultants and contractors, etc.

LCQ12: Improvement measures for flooding problem in northern New Territories

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Yiu Ming and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (July 15):

     It has been reported that many places in the northern New Territories (particularly the areas around Ta Kwu Ling, Sheung Shui, Fanling and Yuen Long) were hit by severe flooding from the evening of May 20 to the early hours of May 21, 2026 due to rainstorms, even causing power outages for dozens of households. Moreover, as the Hong Kong Observatory issued the Black Rainstorm Signal twice on June 18, the Drainage Services Department had to deploy emergency response teams and the “Mobile Powerful Pumping Robot” to handle flooding cases in the northern New Territories. In this connection, will the Government inform this Council:

(1) of the respective numbers of reports on flooding cases, requests for assistance and complaints in relation to flooding in the northern New Territories received by the Government over the past three years, and how the authorities followed up on the relevant flooding cases;

(2) whether the Government has assessed the black spots and causes of the aforesaid flooding incidents in the northern New Territories (including Ta Kwu Ling), e.g. road surfaces being higher than the surrounding ground after brownfield site formation, problems concerning drainage system connections and insufficient capacity or blockages of rural channels;

(3) whether the Government has assessed whether the current stormwater drainage systems and flood prevention facilities in the northern New Territories are sufficient to cope with extreme rainfall events (e.g. rainfall intensity exceeding 100 mm in an hour); of the Government’s specific medium- and long-term projects to enhance the drainage capacity in areas such as Ta Kwu Ling, Ping Che, Sheung Shui and Fanling;

(4) whether the Government will establish stricter drainage standards and regulatory measures (e.g. requiring brownfield operators to provide independent drainage systems and conduct regular maintenance) in respect of drainage problems arising from rural and brownfield development, so as to prevent rainwater from flooding onto roads and into village houses;

(5) of the measures the Government has taken to enhance flood warning systems in the northern New Territories, as well as evacuation arrangements for residents and post-disaster relief support, including whether it will review the thresholds for issuing Special Announcement on Flooding in the Northern New Territories and the efficiency of information dissemination; and

(6) whether the Government will capitalise on the Northern Metropolis development to incorporate the flooding and drainage problems in the northern New Territories (including Ta Kwu Ling) into the overall development and infrastructure improvement plan, including whether it will, in the planning stage of new development areas, simultaneously upgrade stormwater drainage systems, drainage channel capacity and flood prevention facilities, to ensure that new development projects will not exacerbate existing flooding risks while resolving the problems at existing flood black spots?

Reply: 

President,

     Hong Kong experienced severe rainstorms over the past three years. In 2025, five Black Rainstorm Warning Signals were issued, breaking the highest annual numbers on record since the introduction of Rainstorm Warning System in 1992. This year, as at end of June, three Black Rainstorm Warning Signals have already been issued. Even in the face of heavy rainstorms, Hong Kong’s stormwater drainage system demonstrated its effectiveness in flood control, enabling the community to resume normal operation within a short period of time.

     The reply to the Hon Yiu Ming’s question regarding the northern part of the New Territories (especially for the areas of Ta Kwu Ling, Sheung Shui, Fanling and Yuen Long), with relevant policy bureaux and departments consulted, is as follows:

(1) In the past three years (from January 2023 to June 2026), the Drainage Services Department (DSD) received over 7 000 requests for assistance or complaints from the public regarding flooding, water ponding, drainage system blockages, clearing of weeds and silt, and environmental issues in the North District and Yuen Long District. During this period, the DSD confirmed 108 flooding cases in the districts concerned. Upon receipt of flooding reports, the DSD immediately deploys emergency response teams and provides urgent support, assisting in clearing blocked drains and floodwater.

(2) On the evening of May 20 and on June 18, 2026, the areas of northern New Territories were hit by intense rainstorms. On May 20, the heavy rain was mainly concentrated in the North District, with the maximum hourly rainfall exceeding 100 millimeters and the total rainfall of over 300 mm, causing flooding in some roads and low-lying villages. On June 18, the Hong Kong Observatory issued two Black Rainstorm Warning Signals. The heavy rain was again concentrated in the northern New Territories, with certain areas recording a maximum hourly rainfall of over 90 mm and a total rainfall exceeding 260 mm. Both rainstorms resulted in flooding in some roads and low-lying villages. According to the analysis by the DSD, most flooding cases were caused by silt, leaves, branches, and other debris being washed into drainage inlets by stormwater runoff, obstructing drainage facilities and reducing their drainage capacity. In addition, flooding in Ta Kwu Ling on May 20 was due to sudden and intense rainfall, which caused water flowing into the upstream and tributaries of the Ping Yuen River to exceed the discharge capacity of these natural streams, resulting in severe flooding along the river. On June 18, flooding at some places occurred due to the combined effects of high tide at river outlets and continuous heavy rain, which prevented rainwater in low-lying areas from draining away in time.

(3) Since the 1990s, the DSD has progressively completed a number of major drainage improvement works in the northern New Territories, including river training works for major rivers such as the Shenzhen River, Ng Tung River, Sheung Yue River, Shek Sheung River, Ping Yuen River, Ma Wat River, Shan Pui River, Kam Tin River, and the Yuen Long Bypass Floodway. In addition, a total of 21 village flood pumping facilities were constructed for various low-lying villages in the North District and Yuen Long District. Following the completion of these improvement measures, widespread occurrence of severe flooding in the North District and Yuen Long District has been alleviated.

     Furthermore, the DSD completed the river improvement works and construction of drainage channel at the downstream section and tributaries of the Ping Yuen River near Shui Lau Hang and Ng Chow Road in Ta Kwu Ling in 2006 and 2008 respectively. Moreover, since 2020, it has commenced the following projects, scheduled for phased completion between 2023 and 2030, to enhance the drainage capacity in the rural areas:
 

  • “Drainage improvement works at Yuen Long – stage 1”: Construction of drainage channels and stormwater drains at Tai Tseng Wai, Shui Tsiu San Tsuen, Ho Lik Pui and Shan Ha Tsuen;
  • “Drainage improvement works at Yuen Long – stage 2”: Drainage and stormwater channel improvement works at Tai Wo, Shan Ha Tsuen, Ha Che, Sung Shan New Village, and Lin Fa Tei;
  • Yuen Long Barrage Scheme: Construction of an automatic flood barrier at the downstream section of the Yuen Long Nullah; and
  • “Drainage improvement works at North District – phase 1”: Construction of an underground stormwater storage tank and a stormwater pumping station at Kong Ha and Sha Tau Kok Town; and construction of drainage channels, flood walls, and stormwater drains in villages including Kong Ha, Sha Tau Kok, Shek Kiu Tau, Hang Tau, Kai Fong Garden, Kwu Tung Road, and Tin Ping Shan Tsuen.

     To further enhance the drainage capacity of the natural tributaries of the Ping Yuen River in Ta Kwu Ling, the DSD plans to implement the Drainage Improvement Works in Ta Kwu Ling. Since most of the improvement works are located within the proposed “Priority Development Area” of the New Territories North New Town, the proposed drainage improvement works will be integrated into the development. In view of the flooding incident that occurred in May this year at the upstream and tributaries of the Ping Yuen River, the DSD is currently undertaking short- to medium-term flood prevention measures and works. For details, please refer to section (6).

(4) In the planning for rural and brownfield development, various government departments will examine the proposals in different aspects, including reviewing the drainage facilities, and ensuring that they comply with the relevant design standards or regulations so as to minimise flooding risks. If a development project (including rural and brownfield development) requires approval of the Town Planning Board and the proposed works will affect the drainage conditions, the project proponent needs to submit a drainage impact assessment together with the town planning application, and propose and adopt mitigation measures to ensure that the flooding risks in the relevant areas will not be increased.

     During adverse weather, flooding may still occur in certain low-lying village houses or villages with underdeveloped private drainage systems. In addition to implementing major drainage improvement works and regularly maintaining the drainage systems, the Government also requires the co-operation of the public to adopt precautionary measures, such as using sandbags, installing demountable flood barriers, and setting up temporary pumps to reduce the associated flood risks. During heavy rain, the DSD deploys additional manpower as necessary, arranging emergency response teams to handle flooding incidents. When required, emergency response teams will be stationed at flood-prone areas, enabling prompt inspections and clearing of blocked channels to reduce flood risks.

(5) The development and movement of heavy rain could be rapid and highly random. When heavy rain with more than 70 mm is expected to fall in an hour in an individual district of Hong Kong, i.e. the rainfall of an individual district is equivalent to the level of black rainstorm, but the heavy rain at the time has not yet spread to most parts of Hong Kong, the Observatory will issue a Localised Heavy Rain Advisory, indicating the affected areas and rainfall amounts, alerting the public that these areas may experience flooding caused by heavy rain and urging them to take corresponding precautionary measures.

     For the northern New Territories, the Observatory has a Special Announcement on Flooding in the Northern New Territories, with issuance thresholds similar to the Localised Heavy Rain Advisory (Note). As part of the announcement, the areas in the northern New Territories which are affected by heavy rain, e.g. Ta Kwu Ling, Sheung Shui, Sha Tau Kok, Pat Heung, Kam Tin, San Tin, Ngau Tam Mei, will be listed along with the rainfall amounts, reminding residents to guard against potential flooding in low-lying areas of those districts. 

     The Observatory will provide the public with heavy rain information as early as technologically feasible. In addition to disseminating the above information through television, radio, the Observatory website and social media platforms, the Observatory will directly push heavy rain information to users via the “MyObservatory” mobile application, including the aforementioned Localised Heavy Rain Advisory and Special Announcement on Flooding in the Northern New Territories, listing areas affected by heavy rain so that the public can take immediate action in adverse weather. The Observatory will continuously review weather warnings and advisories related to heavy rain, including the Special Announcement on Flooding in the Northern New Territories to provide timely and clear information to the public.

     When the Special Announcement on Flooding in the Northern New Territories is issued, the DSD Mainland North Region Emergency Control Centre will be activated and District Officers of North District and Yuen Long District will activate their District Emergency Co-ordination Centres. When required, emergency response teams will be stationed at flood-prone areas, enabling prompt inspections and clearing of blocked channels to reduce flood risks. The North District Office and the Yuen Long District Office will liaise closely with the Fire Services Department (FSD) and the DSD, and open temporary shelters as necessary for providing supplies and support to affected persons.

     In addition, the DSD has installed river gauging stations covering flood-prone areas in northern and north-western New Territories. When any river water level exceeds its alert level, the DSD will notify the FSD, the Home Affairs Department, the relevant District Officers and the Security Bureau (SB). 

     Upon receipt of the DSD’s notifications or public reports of flooding, the District Offices will disseminate information to affected residents through District Council members, members of the “three district committees”, Rural Committees, village representatives and Care Teams, and visit the sites to gain a better understanding of the situations if circumstances permit and when necessary. The District Offices will also contact and liaise with relevant government departments to undergo urgent clearance work after flooding, including removal of fallen trees and clearance of blocked drains.

     The SB will, having regard to the actual circumstances, consider activating the Emergency Monitoring and Support Centre to strengthen the co-ordination of the response efforts of various bureaux/departments. The FSD, the Hong Kong Police Force (HKPF) and the Civil Aid Service (CAS) will also activate, as and when required, the High Command in New Territories North Command of the FSD, the New Territories North Regional Higher Command of the HKPF and the Central Command Centre of the CAS to implement targeted deployment and carry out rescue operations in connection with flooding incidents, with a view to mitigating the threat of flooding. These resources will be strategically deployed in the flood-prone areas having regard to the DSD flood information issued to relevant Government departments.

(6) The design of drainage systems and flood prevention facilities in the new development areas of the Northern Metropolis will follow the DSD’s Stormwater Drainage Manual, which has already incorporated the data and guidelines related to climate change to address the impacts of rising sea level and changing rainfall patterns. In light of the torrential rainstorm in September 2023, the Government has updated the design rainfall parameters in the manual.

     In the medium to long term, while planning and designing the new development areas of the Northern Metropolis, the Civil Engineering and Development Department also assesses the drainage impact of the new development on upstream and downstream areas, including villages. Where necessary, the capacity of existing drainage facilities will be enhanced. For example, diverting stormwater that would otherwise flow into nearby villages directly into newly constructed stormwater drainage systems within the new development areas, thereby reducing flood risk. The planning and design of the new development areas will also apply the sponge city concept, incorporate elements of “blue-green drainage infrastructure”, and improve drainage systems and river management. Measures include widening and revitalising existing rivers and constructing stormwater storage facilities to increase temporary storage capacity and divert peak flows, thereby alleviating flood risk in downstream villages and development areas while enhancing overall flood resilience. At the same time, high-quality recreational spaces will be created to provide residents with a livable environment.

     In the short to medium term, for rivers in the Ta Kwu Ling area (such as the Ping Yuen River), the DSD is currently implementing flood prevention improvement measures and works, including (1) carrying out dredging works in the Ping Yuen River and its upstream tributaries; (2) deploying super powerful pumping robots to station at Ta Kwu Ling to facilitate immediate pumping of river water to the wider downstream section when the water level of the river exceeds the alert threshold; and (3) constructing stormwater storage tank, pumps and rising mains.

Note: The threshold for the Localised Heavy Rain Advisory is based on the recorded and forecast regional rainfall when heavy rain with more than 70 mm of rainfall in an hour in individual districts of Hong Kong.

LCQ8: Application of AI in government departments and public organisations

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Tommy Chung and a written reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (July 15):

Question:  
(1) A token is the basic unit used by AI systems to process text, and is commonly used to reflect data processing volume and the related demand for computing power. Currently, government departments, scientific research institutions and enterprises directly procure services from local, Mainland or overseas suppliers based on their business needs. Their token consumption data is scattered across different platforms and proprietary networks. As a unified standard for the calculation method of tokens when different models process the same text has yet to be established in the global AI industry, the Government currently has no statistics or projections on the local daily average token consumption and capacity.

LCQ13: Development and training in legal services sector

Source: Hong Kong Government special administrative region

LCQ13: Development and training in legal services sector 
Question:
 
     There are views that the legal services sector is one of the key pillars of Hong Kong’s economic development, playing a vital role in gross domestic product (GDP), overall employment and the export of professional services. Gaining a comprehensive understanding of the development trends and talent development in Hong Kong’s legal sector will help further strengthen the city’s international competitiveness. In this connection, will the Government inform this Council:
 
(1) whether it has assessed the legal services sector’s overall contribution to GDP over the past five years (including the total value of its services and its share of GDP), with the total value of services and the share of GDP set out by litigation services, non-litigation legal services, arbitration, mediation and other professional legal services;
 
(2) in respect of professional training, whether the Government will introduce specific measures to enhance the legal services sector’s knowledge of the six major emerging pillar industries (i.e. integrated circuits, aerospace, biomedicine, the low-altitude economy, new energy storage and intelligent robot) and the six future frontier industries (i.e. quantum technology, biomanufacturing, green hydrogen and fusion energy, brain-computer interfaces, 6G communications and embodied intelligence), so as to facilitate the sector’s provision of legal services to such industries in the future;
 
(3) whether it has compiled statistics on (i) the total number of persons employed in Hong Kong’s legal services sector, broken down into practising lawyers, legal assistants and legal executives; (ii) the number of corporate legal advisors in Hong Kong, set out by industry (such as finance, technologies and multinational enterprises); (iii) the number of arbitrators and mediators in Hong Kong, as well as their respective caseloads and the number of international cases in which they have been involved in each of the past five years; and
 
(4) given the constantly evolving models of legal service provision and the gradual replacement of certain manual processes by legal technology, whether the Government has compiled statistics on the number of personnel in the legal sector who have left the sector to pursue careers in other industries over the past five years; if it has, which industries have they mainly moved into?
 
Reply:
 
President,
 
     Our consolidated reply to the various parts of the Hon Nick Chan’s question is as follows:
 
     According to data from the Census and Statistics Department, the following shows the value added contributed by the “Legal, accounting and auditing services” and their share in the Gross Domestic Product (GDP) in the past five years on record (i.e. 2020 to 2024):
 

      In addition, professional and effective legal services, coupled with a well-established and robust legal system, facilitate the reduction of trade barriers, lowering of transaction costs and provision of a stable and predictable environment for doing business. These factors in turn indirectly increase the overall substantive contribution to the GDP by different industries.    
 
     The following shows the public data on the legal profession (solicitor and barrister) collated by the two legal professional bodies and reflects the point of time at which the Department of Justice (DoJ) accessed them.
 
     According to the website of The Law Society of Hong Kong (Law Society), the breakdown of the number of members of the Law Society with practising certificates is as follows:
 

      According to the website of the Hong Kong Bar Association (Bar Association), the number of the Bar Association members with practising certificates over the past five years were 1 758 (December 2025), 1 716 (January 2025), 1 672 (November 2023), 1 612 (December 2022) and 1 595 (December 2020) respectively.
 
     The Law Society’s and the Bar Association’s websites do not provide the breakdown of the number of legal assistants, legal executives and corporate legal advisors.
 
     Regarding the data on attrition within the legal profession, the DoJ does not have the relevant information. In fact, according to the Law Society’s and the Bar Association’s data, the number of members of the Law Society and the Bar Association with practising certificates respectively has been steadily increasing over the past five years.   
 
     Regarding legal education and professional training, the DoJ has been actively engaged in the development of legal education and training in Hong Kong through the Standing Committee on Legal Education and Training (SCLET), and has maintained good communication with the legal sector and the three law schools to keep abreast of the latest supply and demand of legal talent. The DoJ would continue to support the local law schools, the Law Society, the Bar Association and the SCLET in continuously reviewing and improving local legal education and professional training, thereby cultivating more outstanding and highly adaptable legal talent for Hong Kong.
 
     In addition, the Hong Kong International Legal Talents Training Academy 
     For example, the Academy, together with the United Nations Commission on International Trade Law (UNCITRAL), successfully organised the Conference on Climate Change and International Trade Law in March 2025, and the 6th UNCITRAL Asia Pacific Judicial Summit 2025 – Judicial Conference themed “Building Towards End-to-End Trade Digitalization” in November 2025 in Hong Kong, exploring the application of international instruments to areas including climate change, digitalisation in trade and transportation. In addition, in August 2025 the Academy organised the Mainland Civil and Commercial Legal Practice Training Course 2025 specifically for the local legal sector, inviting counsel from state-owned enterprises in emerging technology sectors to share their needs and challenges in legal services and going global, enabling Hong Kong’s legal and dispute-resolution community to stay abreast of international developments and market trends across different legal domains. Looking ahead, the Academy will continue to monitor regional developments, especially the demand for professional
talent 
     With regard to arbitration and mediation services, at present, arbitrators and mediators in Hong Kong are not subject to mandatory licensing or accreditation regimes. In addition, arbitration and mediation cases are subject to the principle of confidentiality. Therefore, the DoJ does not collate the relevant statistics.
 
     Hong Kong is home to many prestigious international arbitral institutions. A number of institutions headquartered overseas or in the Chinese Mainland have also chosen to establish branches here. Some statistics in arbitration can be found in information released by arbitral institutions voluntarily. For example, the Hong Kong International Arbitration Centre (HKIAC) has established its panel and list of arbitrators. As of July 3, 2026, there were 511 and 540 arbitrators on its panel and list of arbitrators respectively.
 
     According to the 2025 statistics released by HKIAC, a total of 582 cases were submitted to HKIAC in 2025. Of those cases, 388 were arbitration cases and nine were mediation cases. 84.3 per cent of all arbitration cases were international in nature, i.e. at least one party was not from Hong Kong.
 
     Some statistics in mediation can be found in public information released by the Hong Kong Mediation Accreditation Association Limited (HKMAAL) and the Hong Kong Judiciary. HKMAAL is an industry-led mediation accreditation and regulatory body. As of July 3, 2026, there were a total of 1 889 general mediators in the mediator panel published on HKMAAL’s website.
 
     According to the statistics released by the Hong Kong Judiciary, the number of cases with mediation minutes filed in the Court of First Instance in the past five years were 303, 211, 192, 201 and 175 in each of the years from 2021 to 2025 respectively. The number of cases with mediation minutes filed in the District Court in the past 5 years were 459, 339, 338, 380 and 311 in each of the years from 2021 to 2025 respectively.
Issued at HKT 14:35

NNNN

Inmates congratulated on DSE results

Source: Hong Kong Information Services

Four young inmates have met the general entrance requirements for local universities in this year’s Diploma of Secondary Education Examination, the Correctional Services Department announced today.

Fourteen inmates, from correctional institutions at Sha Tsui, Pik Uk and Lai King, received results today. They sat a combined total of 83 examination papers and obtained level 2 or above in 66, or 79.5%, of these.

A candidate at Sha Tsui Correctional Institution (STCI) scored 22 marks across five subjects – the highest score of the 14 inmates. This included achieving level 5* grades in Chinese Language and Tourism & Hospitality Studies and an “Attained” in Citizenship & Social Development.

STCI Superintendent Poon Ho-lam highlighted that sitting their exams not only boosted the young inmates’ self-confidence, but also helped them to find a clear direction in life.

He urged them to maintain a proactive and earnest attitude, and to meet challenges ahead with determination.

Mr Poon called on the public to give rehabilitated people fair opportunities and accept and support their reintegration into society.

12 lease modifications recorded in Q2

Source: Hong Kong Information Services

The Lands Department announced today that it registered 12 lease modifications and one lot extension in the Land Registry during the quarter ending June 2026, generating a total land premium of approximately $881.462 million.

Among the 13 registered transactions, four were technical changes involving no premium.

Six of the land transactions are located on Hong Kong Island, three are in Kowloon and four are in the New Territories. 

No private treaty grants or land exchanges were registered during the quarter.

Taiwan FDI Statistics Summary Analysis (June 2026)

Source: Republic of China Taiwan

According to the statistics, from January to June 2026, 1,163 foreign direct investment (FDI) projects with a total approved amount of US$ 8,900,647,000 were recorded. This represents a 14.47% increase in the number of cases, and a 20.84% increase in the FDI amount compared with the same period in 2025.

Regarding inward investment from Mainland China, 9 cases with a total approved amount of US$1,455,000 were recorded from January to June 2026. This reflects a 18.18% decrease in the number of cases and a 98.56% decrease in the investment amount compared with the same period in 2025.

In terms of Taiwan’s outbound investment (excluding Mainland China), 326 projects were registered from January to June 2026, with a total amount of US$ 36,257,797,000. This represents a 21.26% decrease in the number of cases, but a 98.01% increase in the investment amount, compared with the same period in 2025.

As for Taiwan’s outward investment to Mainland China, 123 applications were approved from January to June 2026, marking a 21.78% increase compared with the same period in 2025. The approved investment amount totaled US$ 400,344,000, representing a 30.31% decline compared with the same period in 2025.

Remarks by President Lee Jae Myung at the Korea–Mongolia Business Forum

Source: Government of the Republic of Korea

Sain baina uu! (How are you?)

Your Excellency President Khurelsukh Ukhnaa, distinguished business leaders from the Republic of Korea and Mongolia,

It is a great pleasure to be here with you.

Ulaanbaatar, the capital of Mongolia, has long served as a bridge between Northeast Asia and Eurasia. It is meaningful for me to be able to meet all the business leaders here today. You are the ones who will spearhead exchanges and future cooperation between our two countries.

When I think of Mongolia, the first words that come to mind are “close” and “similar.”

Our two nations share a remarkable affinity.

From languages with similar sentence structures, to traditions of honoring elders and extending warm hospitality to guests, and even to traditional games such as ssireum and gonggi that bear a striking resemblance to one another, our peoples are connected by many shared cultural bonds.

Above all, as I look around this room today, I can hardly tell our Korean and Mongolian guests apart – so much so that I feel as if I were attending an event in Korea.

This emotional bond has naturally fostered mutual interest and affection between our peoples, at an everyday level.

Did you know that these days, young Koreans call Ulaanbaatar “Mongtan,” a portmanteau of Mongolia and Dongtan, a rising affluent satellite city of Seoul?

That speaks volumes about how easily one can find Korean convenience stores and hypermarkets here in Ulaanbaatar and how Korean cosmetics have become some of the most beloved products among Mongolian consumers. Seoul, for its part, is also home to a vibrant Mongolian community in the Dongdaemun district that is popular with many Koreans.

Recently, Mongolian athletes were featured in the Korean competition show Physical: Asia, on Netflix. Showcasing their mental toughness and physical prowess, they drew great interest and became a sensation in both countries.

In this way, the deep friendship and trust that have permeated our peoples’ daily lives are leading to meaningful achievements in a wide range of areas, including the economy, industry and people-to-people exchanges.

Bilateral trade, which stood at US$2.7 million when our two countries established diplomatic ties in 1990, reached approximately US$700 million last year, growing by an impressive 260-fold.

Today, some 60,000 Mongolian nationals reside in Korea, and more than 360,000 people visit one another’s country each year.

Notably, the fact that one in ten Mongolians has worked in Korea makes me think that the peoples of our two countries have become indispensable and cherished partners.

Distinguished business leaders from Korea and Mongolia,

I would like to outline the future direction of our cooperation, which will be built on the achievements of our long-standing exchanges and partnership.

First, let’s further expand win-win models like Mongtan. Simply put, Mongtan is a model of mutually beneficial cooperation: A Korean retail company provides its technology and expertise, while a Mongolian company makes a direct investment, operates the business and gains its own expertise.

To build on these achievements, it is essential to expand infrastructure, such as joint logistics centers and cold chains, while also strengthening workforce development and technology exchanges.

I hope that the cooperation MOU our two governments signed today will serve as a solid foundation for expanding this mutually beneficial model.

Having started with hypermarkets and convenience stores, the Mongtan model will now be applied more broadly – to K-consumer goods such as food, beverages and cosmetics, as well as to a wide range of other sectors, including finance, healthcare, education and artificial intelligence.

Second, let’s join forces as trusted partners in the critical-mineral supply chain sector.

Mongolia is richly endowed with critical minerals – including copper, molybdenum, tungsten and rare earth elements – while the Republic of Korea possesses advanced technology, capital and logistics capabilities. Together, our two countries can create powerful synergies in the supply chain sector.

The Korea–Mongolia Rare Metals Cooperation Center, which opened in Ulaanbaatar last December, can serve as a key platform for cooperation and exchanges between businesses from both countries.

Moreover, I hope that, through the Korea–Mongolia Rare Metals Cooperation Joint Committee, which is operated by our two governments, we can create a successful example of supply chain cooperation.

Third, let’s also build a foundation for joint growth in infrastructure investment and legal and institutional frameworks.

Harnessing its abundant natural resources, Mongolia has been achieving fast annual growth of over 5 percent.

As a result, there is a significantly growing demand for infrastructure in such areas as transportation, logistics and energy.

With world-class construction and engineering technology and extensive experience in infrastructure development, the Republic of Korea is the optimal partner for helping Mongolia’s cities and industries to grow.

Korean companies are already participating in Mongolia’s first urban railway project and smart city development initiatives, jointly creating the blueprint for Mongolia’s future.

In order to help further expand this cooperation, we must establish an institutional framework that enables businesses to trade and invest freely.

The Korea–Mongolia Comprehensive Economic Partnership Agreement (CEPA), which our two countries have reached an agreement in principle on this occasion, will mark a new turning point in bilateral economic cooperation.

I am confident that lowering barriers to trade in goods and services and to investment will usher in a more stable and predictable environment, allowing businesses from both countries to expand into new markets and seize new opportunities.

In particular, as trade and investment become even more vibrant across a wide range of sectors – including consumer goods, automobiles and pharmaceuticals – we will be able to realize our vision of shared growth sooner.

Distinguished business leaders from both countries,

The national flags of both Korea and Mongolia feature the Taegeuk symbol, which represents the harmony and balance of the universe.

Though the Yin and Yang within the Taegeuk embody opposing forces, their true strength emerges when they come into harmony.

I believe the same is true of our bilateral relationship today. Korea and Mongolia each possess distinct strengths in such fields as resources, technology, the workforce and capital. Therefore, we have a limitless potential for cooperation.

I have heard a Mongolian saying that goes, “The strength of many is like a boundless ocean.”

If the business leaders here today join forces, cooperation between our two nations will deliver infinite opportunities and possibilities, much like a boundless ocean.

I am confident that this gathering will serve as a meaningful starting point for ushering in a new golden age of relations between our two countries.

Bayarlalaa! Thank you. 

Press Statement by President Lee Jae Myung on the occasion of the Korea-Mongolia Summit

Source: Government of the Republic of Korea

Your Excellency President Khurelsukh Ukhnaa, distinguished guests,

My visit to Mongolia marks the first state visit by a President of the Republic of Korea in fifteen years.

Mongolia is a key partner in Korea’s pragmatic, national interest-focused diplomacy, and Korea is Mongolia’s most trusted partner for strategic cooperation. I hope that this message is clearly conveyed to the peoples of both our countries.

The most significant achievement of this summit is that we two leaders reaffirmed a shared vision of ushering in the “Golden Age of Korea–Mongolia Relations” and adopted a joint declaration setting out the future direction of bilateral relations.

Building on more than three decades of friendship and trust, this joint declaration will serve as an important milestone as we work together to forge the true “Golden Age of Korea–Mongolia Relations.”

I look forward to Korea and Mongolia advancing our partnership through this joint declaration in ways that enhance the livelihoods of our peoples and contribute to regional peace and prosperity.

Allow me to outline the key outcomes of today’s summit.

First, our two countries agreed to further solidify political and diplomatic trust, while deepening our strategic partnership.

The two of us agreed to expand high-level exchanges and strategic communication, and to maintain close consultations while strengthening our cooperation on regional and international affairs.

Second, we agreed to expand future-oriented, practical cooperation that delivers tangible benefits to the peoples of Korea and Mongolia.

The two sides will expand cooperation in the areas of economy, trade, and investment and strengthen cooperation on supply chains, including critical minerals. Taking the agreement in principle on the Comprehensive Economic Partnership Agreement (CEPA) as a milestone, the two sides will work together toward achieving USD 1 billion in bilateral trade by 2030.

We also agreed to broaden cooperation across a wide range of sectors in a mutually beneficial and sustainable manner, including artificial intelligence and digital transformation, cutting-edge science and technology, logistics and infrastructure, agriculture and livestock farming, healthcare and medical services, and development cooperation.

Recognizing that healthcare cooperation delivers some of the most direct benefits to our peoples, we agreed to work together to improve the health and quality of life of the Mongolian people through initiatives such as the construction of Mongolia’s National Cancer Center-II.

Third, we agreed to further expand cultural and people-to-people exchanges –the bedrock of the friendship between our two peoples.

The two of us also agreed to promote people-to-people exchanges in such areas as tourism, education, employment, and culture. In line with the Roadmap for Cooperation to Promote People-to-People Exchanges, we will work together to enhance benefits and convenience for the citizens of both nations, while also deepening mutual understanding.

Moreover, we agreed to further strengthen consular cooperation, which serves as an important foundation for the development of bilateral relations, and to foster conditions that enable the peoples of our two countries to interact more freely and actively.

Fourth, we agreed to strengthen cooperation in passing on the historical ties and shared experiences between our two countries to future generations.

We will further consolidate the friendship and trust between our two peoples by jointly honoring and carrying on our shared legacy of friendship, including that of patriotic martyr Lee Tae-jun, who devoted his life to advancing modern medicine in Mongolia.

I believe that enabling future generations to inherit and further develop our precious historical ties is essential to the sustainable development of Korea–Mongolia relations.

Fifth, we agreed to further strengthen bilateral cooperation on the international stage.

President Khurelsukh and I agreed to expand our bilateral cooperation to promote stability and development in Northeast Asia.

We concurred on the need to maintain and further strengthen the tradition of cooperation and mutual support that our two countries have cultivated on the international stage. We also agreed to work closely together on global issues, including climate change and sustainable development.

In addition, we plan to strengthen cooperation within international organizations and multilateral fora, and to coordinate closely on matters related to elections in international organizations, including the International Court of Justice.

Finally, I shared with President Khurelsukh our vision for peace and cooperation on the Korean Peninsula. President Khurelsukh expressed strong agreement with my view on the importance of maintaining peace and stability on the Korean Peninsula and in Northeast Asia.

I would like to once again thank President Khurelsukh for reaffirming his steadfast support for our government’s efforts to establish lasting peace on the Korean Peninsula.

In two days, I will attend Naadam – Mongolia’s largest national festival – as the guest of honor. I hope this serves as an opportunity for the people of Korea and Mongolia to unite as one, ushering in the “Golden Age of Korea–Mongolia Relations.”

Bayarlalaa. (Thank you.)