Source: Hong Kong Government special administrative region
Following is a question by Dr the Hon Starry Lee and a written reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (March 26):
Question:
There are views that the Kai Tak Sports Park (KTSP), being the most-recently completed key facility in the Kai Tak Development Area, is developed on a world class scale with multi-functional positioning. The community hopes that the authorities will make use of the KTSP as a starting point to drive development of the Kai Tak Cruise Terminal (KTCT), the “Youth Post” hostel and even the entire Kai Tak area, and transform Kai Tak into a hub featuring diversification and integrated development of sports, culture, tourism and youth, by consolidating resources and facilitating cross-domain collaboration. In this connection, will the Government inform this Council:
(1) of the specific plans in place to drive the co-ordinated development of the KTCT, the “Youth Post” hostel and the entire Kai Tak area centring around the KTSP, such as the specific measures in terms of policy formulation, resource allocation and cross-departmental collaboration;
(2) of the plans in place to improve the external ancillary transport facilities for the “Youth Post” hostel and the KTCT, so as to strengthen the connectivity of the two facilities with the KTSP, and facilitate the cross-district movement of tourists and members of the public;
(3) of the measures in place to promote business collaborations of the KTSP with the KTCT and the “Youth Post” hostel, so as to attract cross-location spending from tourists and members of the public, and foster the overall economic benefits to be brought to the Kai Tak area;
(4) of the plans in place to make use of technology to consolidate resources of the KTSP, the KTCT and the “Youth Post” hostel, so as to offer seamless guided tours and proposed itineraries to enhance the overall experience of tourists and members of the public, and to provide consolidated information on the activities to be held at the KTSP, thereby promoting cross-facility interactions; and
(5) of the strategies in place to build a distinctive cultural brand of Kai Tak, with the KTSP as the core, integrating the tourism flows of the KTCT and the creative energy of the “Youth Post” hostel, so as to enhance the cultural uniqueness and the international appeal of the district?
Reply:
President,
The Kai Tak Development Area, spanning a total planning area of over 320 hectares, features a mix of community, housing, business, tourism and infrastructural uses. The Kai Tak Sports Park (KTSP), the Kai Tak Cruise Terminal (KTCT) and “Youth Post” hostel are all situated in the area. The KTSP is the largest sports infrastructure project in Hong Kong’s history, which boosts sports development and injects impetus into related industries such as recreation, entertainment and tourism, and mega-event economy. The KTCT is an infrastructure built for berthing large cruise ships, bringing cruise passengers to Hong Kong from around the world. To expand spaces and network for youths, the Chief Executive’s 2024 Policy Address announced that the Home and Youth Affairs Bureau (HYAB) will convert the Kai Tak Community Isolation Facility into a youth development facility, which includes setting up a “Youth Post” hostel and creating spaces for youth cultural, arts and sports exchanges, with a view to promoting mutual exchange among Mainland, overseas and local young people, and creating spaces to stimulate creativity.
In consultation with the Development Bureau (DEVB), the HYAB and the Transport and Logistics Bureau (TLB), the consolidated reply to the question raised by the Dr Hon Starry Lee is as follows:
(1) and (3) In preparing the work plans for the KTSP and the KTCT, the Culture, Sports and Tourism Bureau (CSTB) will consider how the two major infrastructures could complement each other, with a view to creating synergies by fully leveraging the respective facilities.
The KTSP provides Hong Kong with diversified as well as the largest and state‑of-the-art venues for hosting various sports and entertainment events and offers a one-stop sports, leisure, catering and shopping experience for citizens and tourists. With its official commissioning on March 1, the KTSP will become a new hub for hosting major sports and entertainment events, creating favourable conditions for further promoting the mega-event economy. The KTSP will attract tourists to spend in Hong Kong by hosting various large-scale sports, culture or entertainment events, and provide cruise passengers with more options for onshore activities. Hotels in the vicinity of the KTSP will also offer an additional choice of accommodation for travellers (including cruise passengers before or after their voyages). The CSTB, in collaboration with the cruise industry through the Hong Kong Tourism Board (HKTB), has also developed a new shore excursion itinerary in Kowloon East covering the KTSP, the “Live out the Cinematic Charm of Hong Kong” Twilight of the Warriors: Walled In Exhibition being held at AIRSIDE shopping mall in Kai Tak, Kowloon Walled City Park, Chi Lin Nunnery and Nan Lian Garden, offering tourists with a greater variety of shore excursions.
On the other hand, the CSTB will further use the KTCT for other commercial purposes, such as conventions, exhibitions and activities. In particular, we hope to utilise spaces within the terminal during non-peak season when fewer cruise ships are at berth, with a view to elevating the function of the KTCT as a cruise terminal for all. Specifically and amongst others, through the HKTB, the terminal has been selected as the venue of the prestigious global cocktail award ceremony “The World’s 50 Best Bars” scheduled to be held in October this year.
In respect of “Youth Post” hostel, the HYAB issued a tender document on December 20, 2024, to select, through open tender, a suitable organisation for operating the youth facility under a short-term tenancy. The HYAB is assessing the tenders received, including proposals from applicant organisations on how they will set up and operate the youth facility. The HYAB expects that the assessment and award of tender will be completed in the first half of 2025, and the concerned facility will progressively begin its operation within 2025. The HYAB has required the applicant organisations to submit, in their tenders, proposals on how to operate and utilise “Youth Post” hostel. Upon the award of tender, the HYAB will further discuss with the awarded tenderer on ways to better utilise “Youth Post” hostel and other relevant facilitation and publicity measures, including collaboration arrangements between the awarded tenderer and relevant government departments and/or organisations, with a view to promoting mutual exchange among Mainland, overseas and local young people as well as youth development. The CSTB is also in close communication with the HYAB regarding the collaboration between “Youth Post” hostel and the KTCT. After the tender is awarded, we will further connect the awarded tenderer of “Youth Post” hostel with the respective operators of the KTCT and the KTSP fully commissioned recently to explore further opportunities.
In addition to the KTSP, there are a few large retail facilities within the Kai Tak Development Area near Kai Tak MTR Station. A harbourfront promenade will also be constructed connecting the KTSP and the KTCT, not only providing a panoramic view of Victoria Harbour, but also clusters of retail and dining outlets. The CSTB will channel operators of the concerned facilities to explore ways to provide greater convenience and enhanced experience to cruise visitors, boost business opportunities of the KTCT, and attract citizens and tourists to the area. Seizing the opportunities brought by the gradual intake of nearby residential developments, the CSTB will invite expression of interest for the whole ancillary commercial area and rooftop park of the KTCT to revitalise the spaces in the KTCT. Interested vendors and organisations are welcome to submit feasible proposals including but not limited to conventional retail business.
(2) Currently, there are four franchised bus routes and one green minibus route servicing the KTCT, connecting Kai Tak MTR Station, a number of MTR stations in the vicinity, the West Kowloon High Speed Rail Station, as well as the Yau Tsim Mong area. The franchised bus services concerned also connect the KTCT with the KTSP, facilitating intra-district travel by tourists and citizens. “Youth Post” hostel under planning is adjacent to the KTCT. The Government will build a pedestrian crossing between the two facilities to facilitate the use of relevant public transport services by residents and visitors of “Youth Post” hostel.
The Transport Department has already planned to introduce two new franchised bus routes servicing the KTCT, i.e. Citybus Route 20X and Route 22S, providing express services to Hung Hom and Tsim Sha Tsui direct and connecting services to and from the Kai Tak MTR Station respectively. They will come into service at an appropriate juncture subject to the progress of development and population intake of the Kai Tak Runway Area. The Government will continue to closely monitor the development progress of various projects in the Kai Tak Development Area and plan appropriate public transport services to meet the travelling needs of the public and tourists.
Moreover, the TLB is implementing the Smart and Green Mass Transit System in Kai Tak (the Project) in full swing for connecting the Kai Tak former runway area to the Kai Tak MTR Station, thereby strengthening connectivity of the residential and commercial developments, tourism, culture and recreation, sports and community facilities within the area, as well as the connection with the railway network. The Project proposes to have stations at the KTCT (adjacent to “Youth Post” hostel), Kai Tak Sky Garden, the proposed Kai Tak Metro Park, the KTSP and Kai Tak Station Square, etc, enabling the citizens and tourists to access various parts and facilities along the Kai Tak former runway area. The TLB targets to invite tender for the Project in the second half of 2025 for awarding the contract in 2026.
(4) As one of the four strategies set out in the Development Blueprint for Hong Kong’s Tourism Industry 2.0, the Government will strengthen the promotion of smart tourism through the use of information technology, such as electronic platforms, big data and artificial intelligence (AI), to further enhance the smart level of tourism services. More smart elements will also be added to tourist attractions to provide tourists with a more convenient, efficient and user-friendly travel experience. On integration of tourism resources, the HKTB will enhance the one-stop travel information platform, Discover Hong Kong, to provide tourists with more comprehensive, reliable, and up-to-date travel information, including attractions, dining, activities and merchant offers. The aim is to offer tourists a seamless digital experience throughout their journey from itinerary planning, visiting Hong Kong to returning to their place of residence. The HKTB will also develop a Live Travel Map on Discover Hong Kong. Tourists can access the website using a mobile device or desktop computer, and obtain real-time travel information and recommendations covering different parts of Hong Kong (including the vicinity of Kai Tak) by entering keywords or selecting the relevant categories of information. In addition, the HKTB will kick start preliminary development of the Smart Itinerary Planner. The first phase will include integration of travel information, development of a back-end system, and training of an AI model to verify the accuracy of its answers. In the long run, a customised itinerary planning tool based on age, interests and travel purposes will be developed to provide personalised itinerary suggestions.
On the other hand, the operator of the KTSP will provide visitors with one-stop services through its mobile app, including promotion information on leisure and catering options as well as various events. The CSTB will continue to work closely with the operator, relevant departments and the HKTB, with a view to further enhancing visitors’ experience.
(5) The DEVB has adopted a series of visual identity elements to represent the Kai Tak Development Area, effectively conveying the design concept of the entire development. These elements include the slogan, logo, typography, colour scheme, and barcode pattern associated with the “Current of Vitality” theme. They are applied to construction site hoardings and integrated into the architectural designs of various projects to establish a clear connection with the Kai Tak Development Plan.
These visual identity features have been implemented across various projects, such as the Kai Tak Fire Station at Cheung Yip Street, the sewage pumping station at Prince Edward Road East, as well as various public street facilities and recreational amenities, including rain shelters, roadside benches, trash bins, bicycle racks, and information poster stands.
The DEVB has also established a set of design guidelines to ensure that relevant development projects can incorporate these elements into public facilities during the detailed design phase. This gradually brings the “Current of Vitality” design concept to life across the Kai Tak Development Area, creating a unified connection throughout the area. The goal is for residents or visitors to immediately sense this visual connection and develop a sense of belonging as soon as they enter Kai Tak. This aims to make the Kai Tak Development Area and its surroundings a visually cohesive space that embodies a consistent brand identity.
Source: Hong Kong Government special administrative region
The Water Supplies Department (WSD) announced that a WSD-registered consumer of a subdivided flat in To Kwa Wan, Kowloon, was convicted today (March 26) of failing to comply with the Water Authority’s request to provide relevant information or documents for a suspected case of overcharging for water, in contravention of regulation 47A of the Waterworks Regulations. The consumer pleaded guilty to the offence at the Kowloon City Magistrates’ Courts.
A spokesman for the WSD said that the Waterworks (Amendment) Ordinance (amended WWO) 2024 has strengthened the power of the Water Authority in evidence collection and information disclosure during the investigation of suspected cases of overcharging for water. The Water Authority can request the landlords, their agents, etc, to provide the tenancy agreement, receipt or payment record for charges for water. Failure to comply with such a request can be an offence and the offender is liable on conviction to a maximum fine of $10,000 and a further fine of up to $1,000 for each day the offence continues. It is anticipated that there will be more prosecution cases. The maximum penalty for overcharging tenants of subdivided units (SDUs) for water has been raised to $25,000 to deter this illegal act. Moreover, providing false or misleading information to the Water Authority is also an offence with a maximum penalty of a $25,000 fine and six months’ imprisonment.
The WSD spokesman strongly appealed to landlords to apply for the installation of separate water meters for their SDUs, which can greatly reduce the risk of contravening the amended WWO. The WSD encourages the public to report any illegal act of overcharging SDU tenants for water for follow up and investigation by the department. The public can call the WSD Hotline 3468 4963 or WhatsApp 5665 5517 to apply for the installation of separate water meters for SDUs. The WhatsApp hotline also handles matters relating to water overcharging in SDUs. Alternatively, the public can call the WSD Customer Enquiry Hotline 2824 5000 to report water overcharge cases. After calling the hotline and choosing a language, they can press “7” for reporting to staff directly.
Source: Hong Kong Government special administrative region
Following is a question by the Hon Martin Liao and a written reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (March 26):
Question:
On developing Hong Kong into an international innovation and technology centre, will the Government inform this Council:
(1) as there are views pointing out that there is more than sufficient room for trial and error for start-ups in Hangzhou, including a failure-tolerant institutional design at the policy level, government subsidies for research and development (R&D) and a science and technology innovation fund on the funding front, and multi-capital in the market to patiently accompany their growth, whether the Innovation and Technology Industry-Oriented Fund set up by the Hong Kong Special Administrative Region (HKSAR) Government will formulate reference guidelines to increase the weighting of multi-dimensional indicators, such as innovative capability, growth potential and R&D intensity of enterprises, when guiding patient capital investments;
(2) as there are views that Hangzhou’s continuous progress in implementing “one visit at most” service is a result of Mainland departments streamlining administration and delegating power, as well as deepening reforms of the administrative vetting and approval system, whether the SAR Government will draw on Hangzhou’s administrative and entrepreneurial experience to conduct a comprehensive review of the efficiency and quality of the services provided by government departments, including the speed of vetting and approving applications for supporting funds and the efficiency of resource docking, and urge the relevant government departments and public organisations to formulate guidelines to enhance efficiency; if so, of the details; if not, the reasons for that;
(3) as the 2025-2026 Budget proposes to establish the Hong Kong AI Research and Development Institute, with the expansion of application scenarios being one of its focuses, and as there are views that industry-specific vertical large models can promote “Artificial Intelligence (AI) Plus” and empower various industries on the condition of vertical large models being integrated with industry-specific data and knowledge, what plans the Government has put in place to mobilise the innovative power of enterprises and guide leading enterprises, small and medium enterprises, data service providers, etc. to step up the supply of high-quality industry-specific data elements; and
(4) as it is learnt that Hangzhou and its surrounding regions are able to provide start-ups with comprehensive industrial chain support (e.g. Deepseek’s industrial chain is entirely based in Hangzhou, while Hangzhou Yushu Science And Technology Co., Ltd. relies on the resources of Hangzhou and two of its neighbouring cities, namely, Yiwu and Shanghai), what measures the SAR Government has put in place to promote co-operation with other Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area in terms of resources for the AI industry in order to improve the AI industrial chain?
Reply:
President,
In respect of the question raised by the Hon Martin Liao, my reply is as follows:
(1) The Innovation, Technology and Industry Bureau and the Innovation and Technology Commission are currently preparing for setting up the $10 billion Innovation and Technology Industry-Oriented Fund (ITIF) to channel more market capital to invest in emerging and future industries of strategic importance. According to our current plan, the ITIF will cover five thematic areas, and one or more sub-fund(s) will be set up under each thematic area. Each sub-fund will have a fund duration of up to 12 years, fully realising the characteristics of patient capital which focuses on long-term investments with a higher risk tolerance. This will contribute to the on-going support for the growth, expansion and maturity of the innovation & technology (I&T) industry.
The Government will participate as a Limited Partner of the sub-funds and make contributions to each. Fund managers selected through an open application will become General Partners of the sub-funds and shall be responsible for setting up the sub-funds in the form of a limited partnership fund. They shall also raise market capital for the sub-funds, manage the daily operation of the sub-funds, as well as invest in suitable projects in accordance with the investment framework.
Based on a market-oriented operation, we hope that fund managers will leverage their professional investment capabilities to identify I&T enterprises of high potential, conduct comprehensive evaluations, and make reasonable investment decisions in compliance with relevant investment requirements. This will provide appropriate financial support to I&T enterprises and promote the long-term development of the related industries.
(2) The Digital Policy Office (DPO) is committed to driving various bureaux/departments (B/Ds) in the adoption of I&T to enhance operational efficiency and improve public services. The DPO also provides advice and consultancy services to various B/Ds in areas such as digital technology and innovative technology applications, data sharing, business process re-engineering, design thinking, change management, etc., with a view to accelerating the development of digital government, thereby continuously enhancing government efficiency and service quality.
In respect of promoting e-government services, all licences and government services involving application and approval (about 1 480 items in total) and forms (over 3 800) have been fully digitalised by mid-2024, i.e. enabling submission of application, payment and collection of documents by electronic means for relevant licences and services. If in-person submission or collection of documents is required by law or international practice, applicants will only need to visit relevant government offices no more than once.
In 2024-25, through the “Be the Smart Regulator” and “Streamlining of Government Services” programmes, the DPO worked with 47 B/Ds in proposing some 180 business facilitation and streamlining measures for about 400 licences and services, such as obviating the need for businesses and general public to submit information repeatedly for their licence and government service applications by leveraging cross-departmental data exchange, and shortening the time required for handling and approving applications by automating the verification processes, etc.
In addition, B/Ds are rolling out over a hundred of digital government and smart city initiatives progressively, including the application of artificial intelligence (AI) and chatbot technologies to improve government hotline services; application of data analytics, geospatial analysis and visualisation dashboard technologies to improve service management; and adoption of video analytics to enhance security surveillance at public cargo working areas.
(3) High-quality data are essential for promoting the training of large language models (LLMs), research and development (R&D) of industry-specific vertical LLMs, and industry applications. The Government has all along been implementing the open data policy and actively encouraging public and private organisations to open up more data for innovative applications by the industries. Currently, the Open Data Portal has published over 5 500 datasets, covering various industries and sectors including finance, education, transportation, community and social welfare, law and security, etc. The Common Spatial Data Infrastructure has also published over 1 000 spatial datasets, covering different aspects such as planning, lands, buildings, transport. These two platforms help the industry develop more and better industry-specific vertical LLMs and innovative solutions by leveraging the datasets and integrating them with LLMs, industry data and technologies available in the market. Meanwhile, the facilitation measure on the “Standard Contract for the Cross-boundary Flow of Personal Information Within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong)” has been extended to all industries to further promote more cross-boundary services to benefit the public and businesses, while facilitating data flow in the Greater Bay Area (GBA) and expediting the development of digital economy and smart city.
In addition, the Hong Kong Artificial Intelligence Research and Development Institute, to be established as announced by the 2025-26 Budget, will also spearhead and support Hong Kong’s innovative R&D and industrial application of AI, and facilitate upstream R&D, midstream and downstream transformation of R&D outcomes and application scenarios of AI.
(4) The Government has been co-ordinating and promoting the development and application of information and communications technology, including AI, with Guangdong through the Hong Kong/Guangdong Expert Group on Co-operation in Informatisation (EGCI). The EGCI will strengthen the co-operation between Guangdong and Hong Kong in AI R&D, outcome transformation and application development, and implement co-operation initiatives to complement the development of the GBA into an international technology innovation centre.
Besides, the two I&T flagships in Hong Kong (viz. the Hong Kong Science and Technology Parks Corporation and Cyberport) have been actively expanding their partnership network in the GBA to assist enterprises in respective technology parks to expand their businesses in the GBA and attract enterprises in the region to set up operations in the parks. Taking Qianhai as an example, Cyberport signed a co-operation agreement with the Qianhai Authority in January 2021 and deepened the co-operation agreement in August 2024. So far, two enterprises from Qianhai have settled in Cyberport, including one focusing on AI animation production. In addition, about 10 Cyberport enterprises are exploring to set up businesses in Qianhai, and nearly half of them are related to AI including start-ups that apply AI in education technology, e-commerce and insurance technology. On the other hand, the Hong Kong Science Park Shenzhen Branch commenced operation in 2023 to enable institutes and enterprises interested in starting their business in the GBA to establish a presence there. As of December 2024, a total of 58 enterprises and R&D centres were admitted, with approximately 40 of them involved in AI-related businesses.
The Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone is one of the major co-operation platforms in the GBA. The Hong Kong Special Administrative Region Government promulgated the Development Outline for the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (the Development Outline) in November 2024, setting out the vision and mission, planning, development directions, strategies and targets of the Hong Kong Park. As set out in the Development Outline, the Hong Kong Park will focus on the development of core frontier technological fields including AI; strengthen the supporting infrastructure required for the development of AI technologies; and establish a cross-boundary data flow management mechanism, so as to attract Mainland and overseas enterprises engaging in AI to the Loop to set up and expand their businesses therein.
Source: Hong Kong Government special administrative region
LCQ16: Pilot Rehabilitation Programme for Employees Injured at Work Question:
The Government launched a three-year Pilot Rehabilitation Programme for Employees Injured at Work (the Pilot Programme) on September 23, 2022, to facilitate injured workers’ early recovery and return to work. In this connection, will the Government inform this Council:
(1) of the current staff establishment and strength of the Work Injury Rehabilitation Office (WIRO), which is responsible for implementing the Pilot Programme, as well as the average number of cases followed up by each of its case manager;
(2) of (i) the number of reported work injury cases received by the Labour Department (LD) in each of the past three years and this year to date and, among them, (ii) the number of cases identified as eligible for participating in the Pilot Programme (and its percentage), and (iii) the number of cases participating in the Pilot Programme (and its percentage in the total number of cases eligible for participating in the Pilot Programme), and set out in Table 1 a breakdown by (a) construction industry, (b) catering and hotel industry (the industry covered since May last year), and (c) transportation and logistics industry (the industry covered since May last year);
Table 1
Case category(3) in respect of the cases participating in the Pilot Programme mentioned in (2)(iii), of (i) the types of work injury sustained by the injured workers involved, and (ii) the time taken between they agreed to participate in the Pilot Programme and received their first medical consultation from the case doctors, together with a breakdown by industry (i.e. (i) construction industry, (ii) catering and hotel industry, and (iii) transportation and logistics industry);
(4) given that in the reply to a question raised by a Member of this Council on the Estimates of Expenditure 2024-2025, the Government has indicated that the authorities will (a) analyse and compare the data of the participants of the Pilot Programme against (b) the data of the injured employees who sustain similar work injuries but have not participated in the Pilot Programme, so as to assess the effectiveness of the Pilot Programme, of the respective numbers and ratios of cases in which the employees referred to in the aforesaid (a) and (b) have recovered after treatment, as well as the respective average time taken for recovery, together with a breakdown by industry (i.e. (i) construction industry, (ii) catering and hotel industry, and (iii) transportation and logistics industry);
Return-to-work status(6) of the respective numbers and nature of enquiries and complaints received by the authorities about the Pilot Programme since its implementation; and
(7) whether it will consider extending the Pilot Programme to cover more industries, including those with higher risks of work injury such as the manufacturing and retail industries, as well as extending or regularising the Pilot Programme, so as to benefit more injured workers in need; if so, of the details; if not, the reasons for that?
Reply:
President,
The Labour Department (LD) launched the Pilot Rehabilitation Programme for Employees Injured at Work (Pilot Programme) in September 2022. The Pilot Programme adopts a case management approach to provide timely and coordinated private out-patient rehabilitation treatment services for participating injured employees to facilitate their early recovery and return to work. Starting from May 9, 2024, the industry coverage of the Pilot Programme has been expanded to the catering and hotel industry and the transportation and logistics industry in addition to the original construction industry, with the aim of benefiting more injured employees. (2) and (3) According to the Employees’ Compensation Ordinance (ECO), an employer must notify the Commissioner for Labour of any work accident within 14 days after the accident occurs or after it comes to his knowledge. The LD and the WIRO will, based on the reported work injury cases, preliminarily identify injured employees who are suitable for the Pilot Programme, proactively invite them to participate in the Pilot Programme and arrange interviews to ascertain their eligibility for and willingness to participate in the Pilot Programme. Thereafter, the case manager will schedule an appointment for the employee to meet with the case doctor. Once the case doctor ascertains after clinical assessment that the employee’s injury is suitable for treatment under the Pilot Programme, the relevant rehabilitation treatment will begin immediately. The injuries of the participants mainly involve contusion/bruise, sprain/strain and fracture, etc., accounting for about 80 per cent of all cases.
^@@(19%)(21%)(27%)(43%)(42%)(35%)(45%)(47%)* Numbers of non-fatal employees’ compensation claims involving incapacitation of employees for more than three days as a result of work injuries reported under the ECO and received by the LD ^ The Pilot Programme was launched on September 23, 2022. @ The Pilot Programme was expanded to the catering and hotel industry and the transportation and logistics industry on May 9, 2024.
Table 2
Time from preliminary identification to first medical consultation(Rate)(4) The LD has conducted a preliminary evaluation on the first two years of operation of the Pilot Programme (i.e. from September 2022 to September 2024), and compared the data of the injured construction employees participating in the Pilot Programme against that of the injured construction employees who sustained similar work injuries but did not participate in the Programme. The findings show that the participants had a higher rate (75 per cent vs 62 per cent) of reaching maximum medical improvement (i.e. recovered) upon treatment during the evaluation period and the median time required for recovery was also shorter (123 days vs 192 days), which met the objective of the Pilot Programme. Besides, the majority of participants were satisfied with the case management and rehabilitation treatment services provided under the Pilot Programme. Since many cases in the catering and hotel industry and the transportation and logistics industry are still being followed up, the LD will analyse the participants from these two industries in the future evaluation.
(5) Under the Pilot Programme, if participants have not returned to work within two months after recovery, the case manager will obtain updates on their return-to-work (RTW) status in the subsequent three months. As at February 2025, a total of 1 354 employees’ injuries have reached maximum medical improvement upon treatment (i.e. recovered). Their RTW status is as follows:
Return-to-work status(Rate)(43%)(51%)(57%)(46%)(Rate)(9%)(3%)(7%)(8%)(Rate)(12%)(34%)(26%)(17%)(Rate)(28%)(7%)(9%)(21%)(Rate)(9%)(6%)(1%)(7%) (6) As at February 2025, the WIRO received 232 enquiries mainly seeking information on the Pilot Programme’s content and eligibility for participation. There were also three complaints that mainly concerned the performance of individual rehabilitation professional or case manager.Issued at HKT 13:30
Source: Hong Kong Government special administrative region
Following is a question by the Hon Jeffrey Lam and a written reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (March 26):
Question:
Last month, an information security incident occurred in Invest Hong Kong (InvestHK) in which its computer systems were attacked by malicious ransomware, affecting its internal Customer Relationship Management system, intranet, website operations, etc. Regarding the occurrence of cybersecurity incidents in government departments and public organisations, will the Government inform this Council:
(1) of the following information on malicious ransomware attacks on government departments and public organisations in the past three years: (i) the number of cases, (ii) the government departments and public organisations involved, (iii) the number of cases involving leakage of personal, customer or internal data, and (iv) the number of culprits arrested in connection with such cases;
(2) given that Hong Kong is actively attracting businesses and talents, whether the Government has received public complaints or enquiries about the aforesaid information security incident of InvestHK; if so, of the number; whether the Government has assessed if the information security incident has dampened investors’ confidence in the information security of InvestHK, or even investors’ interest in investing in Hong Kong; and
(3) of the measures the Government has put in place to strengthen the security of the computer and information systems of government departments and public organisations, and the expected time for conducting a review of the effectiveness of such measures, so as to continuously ensure the security of the relevant systems of such departments and organisations?
Reply:
President,
In respect of the question raised by the Hon Jeffrey Lam, having consolidated the information provided by the Security Bureau and the Commerce and Economic Development Bureau, my reply is as follows:
(1) According to the Government Information Technology Security Policy and Guidelines, when an information technology (IT) security incident occurs, the concerned bureaux and departments (B/Ds) must report it to the Government Information Security Incident Response Office under the Digital Policy Office (DPO), and notify the Office of the Privacy Commissioner for Personal Data (PCPD) and/or the Police depending on the nature of the incident.
In 2022, 2023 and 2024, the DPO received 5, 3 and 2 incident reports respectively that involved ransomware attack of government IT systems. None of these incidents resulted in any data leakage. In view of the nature of the incidents, the sensitivity of the information and security considerations, the departments concerned considered it as inappropriate to publish relevant details, in order not to increase the risk of malicious intrusion into government systems. Upon receipt of the incident reports, the DPO had promptly assisted relevant departments in handling the incidents and provided technical advice to enhance their information security.
As for public bodies, neither the DPO nor the Hong Kong Computer Emergency Response Team Coordination Centre has received any notification of information security incidents from public bodies relating to ransomware attack in the past three years. However, we note that individual public bodies have taken the initiative to make public announcement on relevant incidents having regard to the nature and specific circumstances of the case. To enhance the information security of public bodies and strengthen the incident handling mechanism, the Government has since August 2024 required public bodies to notify the relevant B/Ds of incidents relating to their designated IT systems. As at mid-March this year, the Government has not received any relevant report.
Depending on the circumstances of the case, there is a possibility that a ransomware attack may constitute a breach of “criminal intimidation” (section 24 of the Crimes Ordinance), “criminal damage” (section 60 of the Crimes Ordinance), “access to computers with criminal or dishonest intent” (section 161 of the Crimes Ordinance), or other related offences. The Police does not maintain breakdown statistics on the number of arrests for ransomware attacks.
(2) On February 22 this year, Invest Hong Kong (InvestHK) identified an information security incident which involved a malicious ransomware attack to part of InvestHK’s computer systems. Upon identification of the incident, the Department took immediate measures to tighten security of its IT systems to prevent further ransomware attacks. In line with the established procedures, it has on the same day also reported the case to the Police, the DPO, the PCPD and the Security Bureau respectively. According to InvestHK’s investigation findings, there was no evidence indicating leakage of personal information. No further suspicious activities have been identified since then. As at mid-March this year, the Department has not received any public complaints or enquiries related to this information security incident. After the incident, InvestHK promptly issued press releases to clearly explain the situation to the public and its clients. It is believed that the incident has not affected investors’ confidence. InvestHK has all along been observing the Government’s procedures in its information and cybersecurity work. It will continue to cooperate with the DPO and adopt experts’ recommendations in tightening its IT security systems, so as to prevent similar incidents from happening again.
(3) To enhance the IT security of B/Ds and public bodies, the Government has implemented several enhancement measures which require B/Ds and public bodies under their purview to strengthen the project governance and security of IT systems, including key initiatives such as:
(i) Strengthen oversight responsibility: all B/Ds must appoint a senior directorate officer or the head/ deputy head of the management team of relevant organisation to oversee information security work, and immediately assess and strengthen their existing cybersecurity measures, in order to guard against cyberattacks.
(ii) Regular tests, assessments and audits: all B/Ds and public bodies must arrange additional stress tests and security tests by an independent third party before rollout of their IT systems, and perform security risk assessments for their IT systems at least once every two years. Security risk assessments shall identify and determine the level of IT security risks of an IT system based on risk sources (e.g. vulnerabilities, threats), events (e.g. incident scenarios), and risk impact and likelihood, so as to help prioritise the identified risks for risk management and updating of response measures.
(iii) System health check, penetration test and compliance audit: the DPO introduced a centralised cybersecurity health check platform to conduct regular and continuous health checks and penetration testing on the government’s public-facing IT systems to enhance B/Ds’ ability to identify potential security vulnerabilities, thereby strengthening the prevention of information and cybersecurity incidents. The DPO also launched a new round of government-wide information security compliance audit in 2024, and will select eight government IT systems for in-depth information security compliance audit in 2025.
(iv) Real-life cybersecurity attack and defence drills: starting from 2024, the DPO will organise annual real-life cybersecurity attack and defence drill, and invite different B/Ds and public bodies to participate. The drills will simulate real-life cyberattacks to test the response and resilience of IT systems in the event of cyberattacks, with a view to enhancing the technique, experience and overall defence capabilities of B/Ds and public bodies through the drills and fortifying the defence line.
(v) Step up staff training: the DPO and the Civil Service College jointly organise thematic seminars under the Innovation and Technology leadership series for the senior management of all B/Ds, and provide latest cybersecurity trends and preventive measures to enhance their information security knowledge.
Source: Hong Kong Government special administrative region
LCQ9: New Capital Investment Entrant Scheme Question:
The Chief Executive announced in the 2024 Policy Address enhancements to the New Capital Investment Entrant Scheme (New CIES) to further strengthen Hong Kong’s status as an international asset and wealth management centre. The enhancement measures have taken effect from the 1st of this month. Regarding the implementation of New CIES, will the Government inform this Council:
(1) of the respective numbers of applications received and approved by the authorities since the launch of New CIES;
(2) whether the authorities have compiled statistics on the types of approved investment of the integrated financial assets of the applicants since the launch of New CIES, together with a breakdown in table form by total investment amount (in descending order);
(3) as the scope of investment of New CIES has been extended to cover single residential properties with a transaction price of no less than $50 million since October 16 last year, whether the authorities have compiled statistics on the number of transactions involving the sale and purchase of such residential properties since that date;
(4) from the implementation of New CIES to the effective date of the enhancement measures, whether the authorities have compiled statistics on the total number of applicants or their dependants who have set up family offices in Hong Kong during this period; if so, of the details; and
(5) whether the authorities have plans on when to review the effectiveness of the enhancement measures, and further enhance New CIES where necessary, for example, by lowering the threshold for the permissible investment in single residential properties of no less than $50 million to no less than $30 million, so that the attractiveness of New CIES can be enhanced?
Reply:
President,
The New Capital Investment Entrant Scheme (New CIES) opened for application from March 2024, with the aim to further enrich the talent pool and attract new capital to Hong Kong. In consultation with Invest Hong Kong and the Immigration Department (ImmD), the reply to various parts of the question is as follows:
Since the launch of the New CIES to end-February 2025, the New CIES has received 918 applications, approved 868 applications for Net Asset Assessment and 386 applications for Assessment on Investment Requirements. The ImmD granted “approval-in-principle” for 756 applications, enabling the applicants to enter Hong Kong as visitors to make the committed investment, and granted “formal approval” for 341 applications. If all applications received are approved, it is estimated that they will bring more than HK$27 billion to Hong Kong.
Under the New CIES, applicants must invest a minimum of HK$30 million in the permissible investment assets, including investing a minimum of HK$27 million in the permissible financial assets and/or real estate (subject to a cap of HK$10 million), and placing HK$3 million into a new Capital Investment Entrant Scheme Investment Portfolio (CIES Investment Portfolio). Among the 386 approved applications for Assessment on Investment Requirements as of end-February 2025, no applicant has made investment in residential real estate under the New CIES. Excluding the sum for investing in the CIES Investment Portfolio, the approved investment distribution is as follows:
(HK$ Million) Except for the applicants’ investment in Hong Kong under the New CIES, the Government does not maintain the data on the investments made by applicants in Hong Kong (including residential real estate) outside the New CIES. Furthermore, before the enhancement measures took effect, it was not required for the applicant and his/her dependents to declare family office setups in Hong Kong, hence the Government does not maintain data on family offices established in Hong Kong by the applicant or his/her dependents.
To enhance the attractiveness of the New CIES and developmental strengths of Hong Kong’s asset and wealth management industry, with effect from October 16, 2024, applicants under the New CIES are allowed to invest in residential properties, provided that the transaction price of a single property is HK$50 million or above. The total investment amount in real estate (the aggregate of all residential and non-residential properties) which is counted toward fulfilling the minimum investment threshold is subject to an aggregate cap of HK$10 million. The Government also announced a series of enhancement measures to the New CIES in January 2025. Effective on March 1, 2025, the measures include:
(a) relaxing the requirements on the fulfillment of net asset requirement (NAR): An applicant under the New CIES is only required to demonstrate that he/she has net assets or net equity to which he/she is absolutely beneficially entitled with a market value of not less than HK$30 million net throughout six months (two years before the enhancement) preceding the application. Net assets or net equity jointly owned with the applicant’s family member(s) can also be taken into consideration for the calculation of the NAR for the respective portion which is absolutely beneficially entitled to the applicant; and
(b) allowing the holding of permissible investment assets through a Family-owned Investment Holding Vehicle (FIHV) or a Family-owned Special Purpose Entity (FSPE) under an FIHV: Investments made through an eligible private company wholly owned by an applicant can be counted towards the applicant’s eligible investment in the New CIES. An eligible private company refers to a holding company incorporated or registered in Hong Kong which is wholly owned by an applicant in the form of an FIHV or an FSPE under an FIHV managed by an eligible single family office as defined in Section 2 of Schedule 16E to the Inland Revenue Ordinance (Cap. 112). The enhancement will create synergy between the New CIES and establishment of family offices in Hong Kong.
The Government will continuously review the operation of the New CIES and suitably evaluate its effectiveness. Issued at HKT 14:15
Source: Hong Kong Government special administrative region
Following is a question by Dr the Hon Johnny Ng and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (March 26):
Question:
The Government established the Hong Kong Investment Corporation Limited (HKIC) in 2022 to manage the investment activities of designated government funds through identifying investment opportunities and strategically promoting development of target industries, while generating investment return. In this connection, will the Government inform this Council:
(1) of an overview of HKIC’s investments since its establishment, including the main industries supported by HKIC’s current portfolios, and how far HKIC can identify the investment targets which can contribute to the economic development of Hong Kong; whether the effectiveness of HKIC’s work has been assessed;
(2) given that the Temasek Holdings, founded in 1974, had an asset size reaching S$389 billion (HK$2.3 trillion) in March 2024, making it the eleventh largest sovereign wealth fund in the world, whether HKIC will draw on the successful experiences of, among others, the Temasek Holdings and the Singapore’s Economic Development Board Investment, and strengthen HKIC’s investment efforts while adjusting its investment directions at appropriate times; and
(3) as far as Hong Kong’s long-term economic development is concerned, whether it has considered adding a wider variety of sectors in HKIC’s investments, including high-growth industries such as Web 3.0, thereby building up future economic pillars for Hong Kong and attracting talents as well as innovative enterprises to set up their presence in Hong Kong?
Reply:
President,
In consultation with the Hong Kong Investment Corporation Limited (HKIC), my consolidated reply to the three parts of the question is as follows:
In the 2022 Policy Address, the Chief Executive announced the establishment of the HKIC to manage the investment for a total of HK$62 billion under the Hong Kong Growth Portfolio, Greater Bay Area Investment Fund, Strategic Tech Fund, and Co-Investment Fund. The positioning of the HKIC is to capitalise the power of “Patient Capital” to channel market capital and leverage market resources, with a view to attracting technology enterprises to set up their operations in Hong Kong, thereby accelerating the construction of a vibrant strategic industry ecosystem, while seeking reasonable financial return over the medium to long term.
The HKIC actively leverages the guiding force of capital to promote collaboration among the investment, industry, academic and research sectors, facilitates the construction of international, regional and cross-border collaboration platform for Hong Kong, and supports the accelerated nurturing of new quality productive forces, thus enhancing Hong Kong’s long-term competitiveness and economic vitality.
Since its establishment, the HKIC has invested in over 90 projects, including enterprises with cutting-edge technologies or in key industries. These projects are medium-to-long-term investments. Key themes include Hard and Core Technology, Biotechnology and New Energy and Green Technology. with the proportions being 56 per cent, 16 per cent and 11 per cent respectively based on the invested amount. In summary, these investments contribute to the development of Hong Kong’s innovation and technology industry, and help local start-ups explore diversified markets and application scenarios. On the other hand, they attract high quality projects and companies from the Mainland and overseas to set up and develop their business in Hong Kong through the channeling force of capital.
The HKIC has clear requirements for investee companies to contribute to Hong Kong’s development in a sustainable manner, such as requiring the companies to establish offices in Hong Kong, nurture and attract talents, establish corporate venture capital (corporate VC) departments in Hong Kong and prioritise Hong Kong for their listing. Quite some investee companies have made good progress in attracting capital and talents and in exploring new markets, which has accelerated their planning for using Hong Kong as their business development platform. Certain investee companies have submitted their listing applications to the Hong Kong Exchanges and Clearing Limited.
The HKIC also actively collaborates with various investment institutions and joins hands in investing with them, promoting the continuous development and application of cutting-edge technologies in Hong Kong. As of March 2025, every Hong Kong dollar invested by the HKIC has attracted over four Hong Kong dollars from long-term capital in the market for investment.
The investments and relevant work of the HKIC are guided by the vision and needs of Hong Kong’s development. In the future, the HKIC will continue to fully support government policies and the needs of Hong Kong’s economic development, and actively work with different sectors of the society to pool resources and implement its work. The Government has always been fully supportive of the HKIC’s work and will consider the timing and arrangements for capital injection in a timely manner as appropriate.
One of the HKIC’s key strategies for 2025 is to continue to focus on three core themes, namely Hard and Core Technology, Biotechnology, New Energy and Green Technology, and also capture the adjacent opportunities arising from these themes, including “cross-sector” applications. The HKIC also focuses on expediting the deployment and application of cutting-edge technologies, bringing innovative and disruptive research outcomes into the market and to serve the society.
The HKIC has been paying attention to accelerating the exploration of the cutting-edge impetus for growth and to strategising the relevant investment implementation. For example, the first batch of capital allocated to the Investment Portfolio under the New Capital Investment Entrant Scheme, which management is supervised by the HKIC, will be invested in industries and innovative applications in areas such as low-altitude economy, gerontechnology and smart living technologies, as well as intelligent entertainment experiences.
Source: Hong Kong Government special administrative region
Housing Authority to pass on rates concession to tenants The Hong Kong Housing Authority (HA) will pass on the rates concession for the first quarter of 2025-26, as set out in the Budget Speech of the Financial Secretary in February this year, to its domestic and non-domestic tenants, starting from April 2025.
“Following approval by the Subsidised Housing Committee of the HA, the apportioned amount of rates concession will be passed on to domestic tenants on a monthly basis over a three-month period from April 1, 2025, to June 30, 2025, by offsetting an equivalent amount of the monthly rent payable by them, subject to a ceiling of $500 for each rateable property,” a spokesman for the HA said today (March 26). For tenancies that do not cover the entire month, the transfer of the rates concession will be made on a pro-rata basis.
“The rates concession passing-on arrangement will apply to all domestic lettings including interim housing licensees,” the spokesman said.
“Similarly, the Commercial Properties Committee (CPC) of the HA approved that the rates concession for the first quarter of 2025-26 for the HA’s non-domestic properties (excluding car parks) will also be passed on to the non-domestic tenants/licensees on a ‘no loss, no gain’ principle. Their monthly rates from April to June 2025 will be waived subject to a ceiling of $500 for each rateable non-domestic property,” the spokesman said.
Also, for the HA’s 18 single-operator markets, namely Ching Long, Choi Fook, Chun Yeung, Hoi Tat, Hung Fuk, Kwai Chung, Lei Muk Shue, Mun Tung, On Tai, Pak Tin, Queens Hill, Shek Mun, Shui Chuen O, Tin Yan, Yan Tin, Ying Tung, Kai Chuen and Ping Yan, the operators will also pass on the rates concession to their licensees in full.
“Given the small amount of rates concession to individual car park users and the significant administrative costs involved for its distribution to these users, the CPC endorsed the exclusion of car parks from this exercise in line with the arrangements for passing on the rates concession in previous exercises. The rates concession for car parks received by the HA will be invested in enhancing the HA’s car park facilities, such as installation of electric vehicle charging facilities at suitable sites, replacement of energy-efficient lighting to promote environmental protection and upgrading of security systems,” the spokesman said.
The maximum total amount of rates concession to be passed on to domestic and non-domestic tenants/licensees by the HA is estimated to be about $397 million and $4.5 million respectively. They will be individually notified of the detailed arrangements by the Housing Department. Issued at HKT 14:30
Source: Hong Kong Government special administrative region
Wealth for Good in Hong Kong Summit 2025 reinforces city’s role as global family office hub, driving innovation, collaboration and lasting legacies Co-organised by the Financial Services and the Treasury Bureau and Invest Hong Kong (InvestHK), the third edition of the Summit delivered an influential platform for collaboration and innovation and drew global decision-makers from regions including the Mainland, Asia, Europe, the Americas, the Middle East, Africa and Hong Kong to engage in interactive discussions exploring how wealth can drive social progress and sustainable impact.
As a flagship event of the Wealth and Investment Mega Event Week during Hong Kong Super March, the WGHK was opened by the Financial Secretary, Mr Paul Chan. He said, “Family offices play a vital role in preserving family wealth, creating lasting influences through philanthropy worldwide and leading impact investment. As an international financial centre, we have a robust network of world-class financial service professionals and offer an extensive array of investment opportunities. In this city, international foundations, charities and non-governmental organisations come together to form a vibrant philanthropy network. We are also investing heavily to propel Hong Kong’s development in innovation and technology like green tech and AI, benefiting the future of humanity. All these, together with the quality lifestyle in Hong Kong, the convergence of Eastern and Western cultures, the dazzling array of mega events, make Hong Kong the ideal place for family offices to thrive and realise their ambitions.”
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, stated that the well-received event reaffirmed Hong Kong’s stature as a pre-eminent global hub for family offices. He said, “This vibrant city – a beacon of opportunity, a super connector between East and West, and a thriving hub for over 2 700 single family offices – is where your vision, your capital, and your passion can flourish. Together, we stand on the cusp of a new era, one where wealth is not just preserved but harnessed as a force for good, transcending borders and generations. I invite you to join us in a shared mission: to build, to learn, and to give. These three pillars will define our collaboration, inspiring you to leverage Hong Kong’s unique ecosystem to create a lasting impact.”
The Director-General of Investment Promotion at InvestHK, Ms Alpha Lau, said, “Hong Kong is Asia’s leading global hub for wealth management, innovation, and sustainable investment. The WGHK again proved to be an exceptional platform for thought leadership, uniting global family offices to exchange ideas and drive positive change while leveraging the city’s robust financial infrastructure and connectivity. At InvestHK, we are dedicated to supporting global investors in unlocking new opportunities and making a lasting impact in Asia and beyond.”
The WGHK featured a distinguished lineup of international speakers who shared insights on the transformative power of wealth. Through insightful sharing of speakers on three sub-themes at panel discussions, participants delved into the evolving landscape of art, culture and luxury, the strategic delivery of impact philanthropy, and the expanding role of technology and artificial intelligence in driving sustainable wealth creation. There was also a fireside chat discussing on the theme “Crafting Success Across Continents and Industries”.
Many speakers today rated Hong Kong highly as an idea place for setting up family offices.
Founder of ADLEGACY, Mr Horst Bente, said, “Hong Kong has always been a special place for our family. The expansion of the company in the ’60s and ’70s to Asia came through Hong Kong. My parents and I were here when I was a little boy, so we’ve spent a lot of time in this city. To me, Hong Kong has always been the gateway to Asia. Investors are here, money is here, and obviously the talent is here. Hong Kong has a dynamic energy, brand-new facilities, and a genuine enthusiasm for sports. We want to be part of that and help create something that doesn’t exist here yet.”
The Vice Chairman of Swarovski International Holding, Mr Robert Buchbauer, said, “When I look at Hong Kong, I see a city that offers stability, predictability, and an environment that is business-friendly – key elements for any family office seeking a solid foundation for long-term growth. People in Hong Kong want to do business, and that entrepreneurial spirit hasn’t changed. It’s what makes Hong Kong so dynamic and a perfect place for legacy-focused companies like ours to explore new partnerships and paths for growth.”
The Co-founder and Chairman of Alibaba Group, Mr Joe Tsai, said, “I first discovered Hong Kong in the 1980s, and it struck me as a truly international city with an unmatched entrepreneurial energy. Even through challenging times, Hong Kong’s free-market DNA, vibrant financial markets, and supportive tax environment stand out – making it, in my view, one of the best places for businesses and family offices to thrive.”
The Summit concluded with a Gala Dinner, uniting family offices and industry leaders from around the world for an evening of connections and insight-sharing. Set against the stunning backdrop of Victoria Harbour and Hong Kong’s iconic skyline, attendees engaged in meaningful discussions about family legacies and opportunities, and appreciated the city’s energy, entrepreneurial spirit, and commitment to fostering innovation and collaboration. Issued at HKT 20:00
Source: Hong Kong Government special administrative region
Following is a question by the Hon Tommy Cheung and a written reply by the Acting Secretary for Commerce and Economic Development, Dr Bernard Chan, in the Legislative Council today (March 26):
Question:
The United States (US) Government has imposed additional duties on products from China, and Hong Kong products are likewise subject to such additional duties. As at the fourth of this month, a cumulative 20 per cent duty has been imposed on Hong Kong products. In this connection, will the Government inform this Council:
(1) of the Government’s progress in filing a complaint regarding the matter with the World Trade Organization to defend Hong Kong’s legitimate rights; whether it has estimated how long it will take to process the complaint;
(2) whether the Government will consider working with the country to take countermeasures, including imposing additional duties on certain US products and placing some US enterprises on the export control list; if so, of the details; if not, the reasons for that; and
(3) how the Government assesses the impacts of the additional duties on the exports of Hong Kong products, and of the proactive corresponding measures to minimise the negative impacts and identify new opportunities?
Reply:
President,
The United States (US)’s imposition of additional tariffs on products of Hong Kong undermines the rule-based multilateral trading system, is grossly inconsistent with the relevant World Trade Organization (WTO) rules and ignores Hong Kong’s status as a separate customs territory as stipulated in Article 116 of the Basic Law and recognised by the WTO. As announced earlier, the Hong Kong Special Administrative Region (HKSAR) Government will file a complaint against the US’s measure in accordance with the WTO dispute settlement mechanism. We are now mapping out the strategy and taking forward the relevant work progressively. Generally speaking, the time required for handling individual WTO dispute cases would depend on different factors such as the complexity of the case, the progress and outcome of the consultations between the disputing parties involved, etc. With reference to previous cases, the time required is generally measured in years, and there is no specific time limit.
The US’s additional 20 per cent tariffs on Hong Kong products would inevitably affect export of Hong Kong products to the US, particularly in the short term. That said, the domestic exports value of Hong Kong products to the US is relatively small in terms of Hong Kong’s total trade value. In 2024, the domestic exports value of relevant products to the US was about HK$5.9 billion, accounting for about 0.1 per cent of Hong Kong’s total exports value and about 0.06 per cent of Hong Kong’s total trade value. Given the foregoing, it is estimated that the US’s tariff measures on Hong Kong products would have a limited impact on Hong Kong’s overall merchandise trade. On the other hand, Hong Kong enterprises have responded to market changes through various arrangements, such as reintegrating supply chains, and exploring different emerging markets as well as different means including e-commerce in recent years. It is expected that the above measures would offset, to a certain extent, the possible impact brought about by the US tariffs.
As the founding member of the WTO, Hong Kong has been a staunch supporter of a rule-based multilateral trading system, and commended by WTO members on various occasions for our continued adoption of free and open trade policies. We are one of the most open economies welcoming trade and investments, and have never imposed any tariffs on imported goods. Notwithstanding this, to tackle unfair trade practices targeting Hong Kong and in light of the evolving international trade landscape, the HKSAR Government has been actively expanding the economic and trade network and exploring development opportunities in markets with potential, especially emerging markets. At the same time, in order to help the trade cope with the various challenges (including the impact of the US’s tariffs), the HKSAR Government has been providing assistance to the trade, including keeping them abreast of the latest developments through disseminating relevant trade information to the trade via different channels and implementing various funding schemes to assist the trade in enhancing their competitiveness and exploring diversified markets.
The HKSAR Government will continue with the relevant work. In the meantime, we will closely monitor the situation with a view to considering further follow-up.