Smart Traffic Fund approves three projects

Source: Hong Kong Government special administrative region

Smart Traffic Fund approves three projects(2) The development of an autonomous driving perception model capable of recognising road works and temporary traffic arrangements in Hong Kong by applying “vision-language-action” technologies; and
(3) The study of large-scale deployment of regional dynamic traffic signal systems in Hong Kong by leveraging microscopic simulation models and real-time traffic signal control technologies.Issued at HKT 16:44

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Online auction of vehicle registration marks to be held from June 25 to 29

Source: Hong Kong Government special administrative region – 4

     The Transport Department (TD) today (June 10) said that the next online auction of vehicle registration marks (VRMs) will be held from noon on June 25 (Thursday) to noon on June 29 (Monday) through the auction platform E-Auction (e-auction.td.gov.hk). Interested bidders can participate in the online auction only after they have successfully registered as E-Auction users.
 
     A spokesman for the TD said, “A total of 220 Ordinary VRMs will be available at this online public auction. The list of VRMs (see Annex) has been uploaded to the E-Auction website. Applicants who have paid a $1,000 deposit to reserve an Ordinary VRM for auction should also register as an E-Auction user in advance in order to participate in the online bidding, including placing the first bid at the opening price of $1,000. Otherwise, the VRMs reserved by them may be bid on by other interested bidders at or above the opening price. Auctions for VRMs with ‘HK’ or ‘XX’ as a prefix, special VRMs and personalised VRMs will continue to be carried out through physical auctions by bidding paddles and their announcement arrangements remain unchanged.”
 
     Members of the public participating in the online bidding should take note of the following important points:
 
(1) Bidders should register in advance as an E-Auction user by “iAM Smart+” equipped with the digital signing function; or by using a valid digital certificate and an email address upon completion of identity verification. Registered “iAM Smart” users should provide their Hong Kong identity card number, while non-Hong Kong residents who are not “iAM Smart” users should provide the number of their passport or other identification documents when registering as E-Auction users.
 
(2) Bidders are required to provide a digital signature to confirm the submission and amount of the bid by using “iAM Smart+” or a valid digital certificate at the time of the first bid of each online bidding session (including setting automatic bids before the auction begins) to comply with the requirements of the Electronic Transactions Ordinance.
 
(3) If a bid is made in respect of a VRM within the last 10 minutes before the end of the auction, the auction end time for that particular VRM will be automatically extended by another 10 minutes, up to a maximum of 24 hours.
 
(4) Successful bidders must follow the instructions in the notification email issued by the TD to log in to the E-Auction within 48 hours from the issuance of email and complete the follow-up procedures, including:
 

  • completing the Purchaser Information for the issuance of the Memorandum of Sale of Registration Mark (Memorandum of Sale); and
  • making the auction payment online by credit card, Faster Payment System (FPS) or Payment by Phone Service (PPS). Cheque or cash payment is not accepted in the E-Auction.

(5) A VRM can only be assigned to a motor vehicle registered in the name of the purchaser. Relevant information on the Certificate of Incorporation must be provided by the successful bidder in the Purchaser Information of the Memorandum of Sale if the VRM purchased is to be registered under the name of a body corporate.
 
(6) Successful bidders will receive a notification email around seven working days after payment has been confirmed and can download the Memorandum of Sale from the E-Auction. The purchaser must apply for the VRM to be assigned to a motor vehicle registered in the name of the purchaser within 12 months from the date of issue of the Memorandum of Sale. If the purchaser fails to do so within the 12-month period, in accordance with the statutory provision, the allocation of the VRM will be cancelled and a new allocation will be arranged by the TD without prior notice to the purchaser.
 
     The TD has informed all applicants who have reserved Ordinary VRMs for this round of auction of the E-Auction arrangements in detail by post. Members of the public may refer to the E-Auction website or watch the tutorial videos for more information. Please call the E-Auction hotline (3583 3980) or email (e-auction-enquiry@td.gov.hk) for enquiries. 

Labour Department investigates fatal work accident in Mong Kok

Source: Hong Kong Government special administrative region

Labour Department investigates fatal work accident in Mong Kok 
     The LD immediately deployed staff to the scene upon receiving a report of the accident, and is now conducting an investigation to look into its cause.
Issued at HKT 16:53

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LCQ4: Enforcement actions against possession of alternative smoking products

Source: Hong Kong Government special administrative region – 4

     Following is a question by Professor the Hon Chan Wing-kwong and a reply by the Acting Secretary for Health, Dr Cecilia Fan, in the Legislative Council today (June 10):

Question:

     The provision under the Tobacco Control Legislation (Amendment) Ordinance 2025 (the Amendment Ordinance) prohibiting the possession of specified alternative smoking products (ASPs), such as e-cigarette capsules and heat sticks, in public places took effect on April 30 this year. In this connection, will the Government inform this Council:

(1) of the respective numbers of (i) complaints or referrals received, (ii) inspections conducted and ASPs seized in the operations, (iii) fixed penalty notices issued, and (iv) prosecutions instituted by the Tobacco and Alcohol Control Office of the Department of Health for offences related to the possession of ASPs since the Amendment Ordinance came into effect;

(2) whether any non-local visitors have been prosecuted or issued with fixed penalty notices for contravening the Amendment Ordinance; if so, of the details; and

(3) whether the authorities have assessed the effectiveness of the Amendment Ordinance in preventing members of the public from smoking and encouraging them to quit smoking; if so, of the details; if not, whether they will conduct relevant surveys?

Reply:

President,

     In consultation with the Department of Health (DH), the reply to the question raised by Professor the Hon Chan Wing-kwong is as follows: 

     The Hong Kong Special Administrative Region Government has all along advanced tobacco control efforts in a science-based, public opinion-oriented, multipronged and progressive manner. As early as 2016, the World Health Organization (WHO) invited Parties to the Framework Convention on Tobacco Control to adopt regulatory measures to ban or restrict the manufacture, import, distribution, display, sale, and use of e-cigarettes. The Government’s strategy towards alternative smoking products (ASPs), including e-cigarettes, heated tobacco products and herbal cigarettes, is to nip the problem in the bud and prevent ASPs from gaining a foothold in Hong Kong, while fundamentally combating the use of ASPs for drug consumption. To this end, the Government introduced the Smoking (Public Health) (Amendment) Ordinance 2021, which was passed by the Legislative Council (LegCo) in 2021. One of the measures was to prohibit the import, manufacture, promotion, sale and possession of ASPs for commercial purposes starting from April 30, 2022. To further strengthen the control on ASPs, the Government introduced the Tobacco Control Legislation (Amendment) Ordinance 2025 (Amendment Ordinance) and was passed by the LegCo in 2025. The Amendment Ordinance includes a ban on possession of specified ASPs such as e-cigarette capsules and heat sticks in public places. Building on the four-year-old comprehensive ban on the import and sale of ASPs, this prohibition on possession in public places prevents the local circulation of ASPs, which are long banned from import and sale, and also stops the new generation from falling into an addiction.

     As the number of smokers of conventional cigarettes declines, the tobacco industry has packaged nicotine addiction products as ASPs, and is promoting them to young people and non-smokers in an attempt to expand its market in order to sustain its profits. These products are deliberately designed to be stylish, compact, and even toy-like, complemented by bright colors and tech-oriented packaging, in order to lower the guard of young people and lure them into trying ASPs or even switching to conventional cigarettes. In reality, this is a “sugar coating”. When the coating is peeled away, we discover its true nature – “poison”. The WHO has clearly stated that there is insufficient evidence to show that heated tobacco products are less harmful than conventional cigarettes, while e-cigarettes release many toxic substances that can cause cancer or damage the nervous and respiratory systems. Even more concerning is that ASPs are highly concealable. They are small in size, produce no naked flame when used, and can be easily tucked away in a pocket after use, making them hardly noticeable to others. This makes them an ideal vehicle for criminals to distribute drugs, and etomidate is the most compelling example. The use of ASPs does not help reduce the use of traditional cigarettes. Instead, it increases the likelihood that users will use multiple tobacco products simultaneously. Nevertheless, when promoting these aptly named “sugar-coated poison”, the tobacco industry markets them with selling points such as “harm reduction” and even “smoking cessation aid”. Hence we must crack down on these products across the multiple fronts from source of supply, to distribution and sale.

     Since the possession ban of ASPs in public places took effect on April 30, 2026, the Tobacco and Alcohol Control Office (TACO) of the DH has conducted over 4 000 inspections as of May 31. During the same period, 40 related complaints and referrals were received and 51 fixed penalty notices (FPNs) were issued for the said possession offence. None of these cases involved aggravating factors requiring prosecution. Among those who received FPNs, one person did not register with a Hong Kong identity card. Since whether an offender is a tourist and the purpose of his/her visit to Hong Kong are not factors for consideration during enforcement, the TACO does not keep records of the number of tourists among the offenders. Separately, the TACO seized a total of 69 ASPs during the operation, of which e-cigarettes accounted for 52 per cent, with the remainder being heat sticks. Moving forward, the TACO will continue to strengthen inspections using a risk-based strategy, with a view to cracking down on related illegal acts.

     Through the implementation of a comprehensive tobacco control strategy, we have achieved tangible results. According to the Thematic Household Survey (THS) on the pattern of smoking conducted by the Census and Statistics Department from July to October 2025, Hong Kong’s smoking prevalence dropped to 8.5 per cent in 2025, hitting a historic low. As regards ASPs, following the implementation of the import ban in 2022, among others, the proportion of persons aged 15 and above who used e-cigarettes daily dropped from 0.2 per cent in 2023 to 0.1 per cent in 2025, with the actual number falling from 11 600 to 7 900. The same proportion for heated tobacco products dropped from 0.1 per cent in 2023 to a level beyond accurate estimation. These figures were recorded prior to the implementation of the possession ban of ASPs, as well as other tobacco control measures under the Amendment Ordinance including the expansion of statutory no-smoking areas, reflecting the deepening of a smoke-free culture in society. 

     The survey results also show that smoking prevalence among young people remained at extremely low levels, indicating that the new generation no longer accepts smoking behaviour. Adolescence is a critical window for preventing smoking addiction from taking hold. Research indicates that reducing young people’s exposure to e-cigarettes in social settings can help reduce their likelihood of trying e-cigarettes and weaken the misconception that the use of e-cigarettes is normal behaviour. The possession ban is a crucial step toward denormalising ASPs. We will continue to conduct THS every two years and the impact of the possession ban and the new phase of tobacco control measures on smoking behaviour will then be reflected in the next round of THS in 2027.

     In addition to legislation, the “10 measures for tobacco control” announced by the Government also include the strengthening of smoking cessation services as well as publicity and education. The DH has been subventing a number of non-governmental organisations to provide free smoking cessation services, and educates the public on the harm caused by tobacco, so as to ensure the message reaches all segments of society. During the Quit in June campaign, the DH distributes free one-week smoking cessation drug trial packs and Chinese medicine ear points patches through more than 300 community pharmacies, smoking cessation clinics, District Health Centres (DHCs) / DHC Expresses, DH clinics, and designated Chinese medicine clinics. This year, an AI-assisted smoking cessation counselling service was also launched. Following the campaign each year, the number of calls to the smoking cessation hotline has significantly increased, indicating an uptick in smokers’ intentions to quit. The Government will continue to monitor the implementation and effectiveness of various tobacco control measures, making timely policy adjustments as we move towards the goal of a smoke-free Hong Kong.

     Thank you, President.

LCQ6: Development and regulation of stablecoins

Source: Hong Kong Government special administrative region – 4

     Following is a question by Professor the Hon Michael Ngai and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (June 10):

Question:

     The Hong Kong Monetary Authority (HKMA) officially granted stablecoin issuer licences to two entities in April this year. Regarding the development and regulation of stablecoins, will the Government inform this Council:

(1) as it is learnt that regulated Hong Kong Dollar-referenced stablecoins will be launched progressively in mid to second half of this year, and given the keen market demand for regulated stablecoins, whether the authorities will actively co-ordinate with the licensed entities and major financial infrastructure institutions to enable the early launch of the relevant stablecoins onto the market; if so, of the specific measures and the earliest estimated time of launch; if not, the reasons for that;

(2) whether it knows HKMA’s progress in processing other applications for stablecoin issuer licences, as well as the long-term planning on the screening criteria and the timing for granting additional licences in the future; and

(3) how the Government will promote the interconnectivity and synergistic development among stablecoins, central bank digital currencies and tokenised assets, with a view to fully accelerating the digital transformation of Hong Kong’s financial industry?

Reply:

President,

     The Stablecoins Ordinance (Cap. 656) came into effect in August 2025 to provide for a licensing regime for issuers of fiat-referenced stablecoins in Hong Kong. Subsequently, the Hong Kong Monetary Authority (HKMA) received a total of 36 applications during the initial application period. Following a comprehensive review of these applications in accordance with the specific requirements set out in the Stablecoins Ordinance, the HKMA granted stablecoin issuer licences to two entities in April 2026.

     Having consulted the HKMA and the Securities and Futures Commission (SFC), my reply to the three parts of the question is as follows:

(1) Prior to the official business launch, the above two stablecoin issuers licensed by the HKMA (licensed issuers) must complete the testing of technology platforms and systems, implement risk management measures (including management and safekeeping of reserve assets, price stabilisation mechanisms, redemption arrangements, technology security, etc), arrange human resources, etc. The HKMA has maintained close contact with the licensed issuers to ensure that all pre-launch preparations are proceeding as planned.

     Based on the current business plans as proposed by the two licensed issuers, we expect Hong Kong-regulated stablecoin to be launched as early as the middle of this year.

(2) The HKMA has already initiated further engagement with the remaining licence applicants. On the basis that these applicants fulfil the minimum criteria under the Stablecoins Ordinance, the HKMA will assess these applications against stringent standards in a consistent manner, primarily evaluating whether applicants are able to (1) propose practical and feasible use cases that contribute to the development of the overall industry ecosystem; (2) propose a robust and sustainable business operating model (including consideration of the risk management capabilities and experience of the applicants); and (3) comply with the laws and regulations in Hong Kong and other relevant jurisdictions.

     Meanwhile, the HKMA has communicated to the relevant licence applicants that it has no definitive inclination regarding the future direction and timing of licensing at this stage. That will depend on various considerations, including whether the applications fulfil the licensing criteria, market demand for stablecoins, actual use cases and international development trends (including discussions on the regulatory aspect), as well as the operation and market reception of the licences just granted after their business launch.

     Nevertheless, it should be emphasised that given the risk associated with issuance activities, the need for user protection, as well as the capacity and sustainable development of the market, the licensing threshold will remain high. Should additional licences be granted in future, the overall number of licences will remain very limited.

(3) The Government issued the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong in June 2025, setting out our vision for a trusted and innovative digital asset ecosystem that prioritises risk management and investor protection, while delivering concrete benefits to the real economy and financial markets. Key focuses of the Policy Statement 2.0 include expanding the suite of tokenised products, as well as advancing use cases and cross-sector collaboration, including exploring the use of stablecoins as a payment tool.

     Under the policy direction of the Policy Statement 2.0, and together with the implementation of the Stablecoins Ordinance, the Government and financial regulators are further driving the development and interaction of stablecoins, digital currencies and tokenised assets.

     In particular, the use cases of the two licensed issuers include using regulated stablecoins to enable real-time on-chain tokenised asset transactions, unlocking opportunities for the tokenised asset market and enhancing market liquidity. In addition to issuing stablecoins, both licensed issuers have participated in the HKMA’s pilot projects on central bank digital currencies and tokenised deposits. With collaboration partners comprising local telecommunications, payments, and digital asset firms, they are well positioned to achieve greater synergy in exploring the potential of and complementing the strengths of different new payment tools, as well as enhancing interoperability between these payment tools and tokenised assets. The HKMA will continue to maintain close contact with the licensed issuers to ensure the implementation of the relevant use cases as planned, while encouraging them to further explore the application of regulated stablecoins in the digital finance ecosystem, with a view to creating value for real economic and financial activities.

     In addition, with the support of the SFC as well as the financial and technology sectors, the HKMA has established the Ensemble Architecture Community. Together, they are actively taking forward work on promoting and implementing the local standards to support interoperability among central bank digital currencies, tokenised money and tokenised assets, thereby promoting the seamless movement of money and assets within the ecosystem, as well as providing the industry with clearer direction for future development. Building upon the successful outcomes of the Ensemble Sandbox, the HKMA launched EnsembleTX in November last year, enabling real-value transactions involving tokenised deposits and digital assets within a controlled pilot environment. The initial focus is on empowering market participants to utilise tokenised deposits in tokenised money market fund transactions, and to manage liquidity and treasury needs in real time.

     At the same time, the SFC has been steadily implementing the ASPIRe roadmap. This includes developing detailed and practical regulatory guidance to facilitate the application of tokenisation in assets and financial products subject to regulatory clarity and controllable risks, thereby promoting the integration of traditional finance and Web3.

     Looking ahead, the Government and financial regulators will continue to build a clear and risk-based regulatory framework as guided by the principle of “same activity, same risks, same regulation”, with a view to promoting the healthy, responsible and sustainable innovation and development of the digital asset ecosystem in Hong Kong, thereby further strengthening Hong Kong’s status as an international financial centre.

     Thank you, President.

LCQ10: Progress in legal sector’s expansion into Hainan market

Source: Hong Kong Government special administrative region – 4

     Following is a question by Professor the Hon Alex Fan and a written reply by the Secretary for Justice, Mr Paul Lam, SC, in the Legislative Council today (June 10):
 
Question:
 
     On March 26, 2025, the Hainan Provincial People’s Government and the Hong Kong Special Administrative Region (HKSAR) Government signed the Hainan Provincial People’s Government and Hong Kong Special Administrative Region Government Memorandum of Cooperation (MoC), under which both sides agreed to deepen collaboration in five areas, namely trade and investment, finance, safe and orderly flow of data, tourism and talent exchanges. According to Article 12 of the MoC and its Annex, “List of recognised Hong Kong professional qualifications”, Hainan Province recognises the professional qualifications of Hong Kong solicitors (limited to representatives in the representative offices set up by the HKSAR law firms in Hainan), solicitors seconded by the Hong Kong side of the partnership association and Hong Kong solicitors employed by such partnership association, as well as Hong Kong solicitors and barristers working as consultants in Mainland law firms in Hainan. The MoC allows them to provide relevant professional services to enterprises and residents in Hainan Free Trade Port based on their Hong Kong professional qualifications, subject to the requirement that they “shall not undertake any Mainland legal matters”. In this connection, will the Government inform this Council:
 
(1) of the number of (i) representative offices set up by Hong Kong law firms in Hainan, (ii) solicitors seconded by the Hong Kong side of the partnership association, and the respective numbers of (iii) Hong Kong solicitors and barristers employed as legal consultants in Mainland law firms in Hainan since the signing of the MoC; whether the Government has compiled statistics on the business areas in which Hong Kong legal professionals provide their legal services in Hainan and the revenue involved;
 
(2) given that the MoC allows Hong Kong solicitors to provide services based on their Hong Kong professional qualifications but they “shall not undertake any Mainland legal matters”, how the relevant restriction is specifically enforced; whether the HKSAR Government and the Department of Justice of Hainan Province have formulated clear practice directions or frequently asked questions in this regard; if the contract in question adopts any law other than the Mainland law (e.g. Hong Kong law) as the applicable law, whether Hong Kong solicitors providing services in Hainan based on their Hong Kong professional qualifications can take part in the drafting and review of such contracts, and whether Hong Kong solicitors can provide legal services relating to the design of the organisational structure of cross-boundary investment in Hainan; and
 
(3) given that Article 5 of the Several Provisions on the Development of International Commercial Arbitration in Hainan Free Trade Port and Article 86 of the newly revised Arbitration Law of the People’s Republic of China expressly allow foreign arbitration institutions to establish representative offices in Hainan Free Trade Port, whether the Government is aware if any Hong Kong arbitration institutions have applied or are applying to establish representative offices in Hainan to date; whether the Government is aware of any specific obstacles involved (such as the actual operational threshold of the registration process, restrictions on business areas, taxation arrangements and reputation requirements, etc); whether the Government will take the initiative to ascertain the willingness of Hong Kong arbitration institutions and law firms to establish a presence in Hainan and the difficulties encountered, and liaise with the Department of Justice of Hainan Province and relevant departments to assist Hong Kong arbitration institutions and law firms in implementing the specific arrangements for establishing a presence in Hainan; if so, of the details and timetable; if not, the reasons for that?
 
Reply:
 
President,
 
     In response to the questions raised by Professor the Hon Alex Fan, the reply is as follows:
 
(1) Currently, one Hong Kong law firm has established a representative office in Hainan before the Hainan Provincial People’s Government and Hong Kong Special Administrative Region Government Memorandum of Cooperation (MoC) was signed. Hong Kong law firms have also established three partnership associations with Mainland law firms in Hainan, where five Hong Kong solicitors have been seconded by the Hong Kong law firms. Besides, 16 Hong Kong solicitors are employed as legal consultants by Mainland law firms in Hainan. The Government does not have statistics on the business scope and relevant income in respect of Hong Kong legal professionals’ provision of legal services in Hainan.
 
(2) Under the framework of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), Hong Kong solicitors and barristers can provide legal services on the Mainland, while the scope of legal matters that can be handled by them is subject to restrictions under the relevant laws and regulations of the Mainland. These restrictions are reflected in the references to Hong Kong solicitors and barristers providing legal services based on their Hong Kong professional qualifications in the Hainan Free Trade Port under items 44 and 45 of the Recognised Hong Kong Professional Qualifications List annexed to the MoC.
 
     According to the Measures for the Management of Hong Kong Legal Practitioners and Macao Practising Lawyers Employed by Mainland Law Firms as Legal Consultants (Measures for the Management of Legal Consultants) and the Measures for the Management of Representative Offices set up by Law Firms of the Hong Kong and Macao Special Administrative Regions on the Mainland (Measures for the Management of Representative Offices) promulgated by the Ministry of Justice, Hong Kong legal practitioners employed as legal consultants in Hainan, as well as representative offices of Hong Kong law firms in Hainan and their representatives, are not allowed to handle Mainland legal matters. Further, according to the Trial Measures on Hong Kong Law Firms and Macao Law Firms Operating in the Form of Partnership Association with Hainan Law Firms (Hainan Trial Measures on Partnership Association) promulgated by the Department of Justice of the Hainan Province, Hong Kong solicitors seconded to or hired by partnership associations in Hainan are not allowed to handle Mainland legal matters either. Whether Hong Kong law firms and legal practitioners can take part in the drafting and reviewing of contracts as well as provide cross-boundary investment framework planning services in Hainan as mentioned in the question would depend on the actual circumstances; provided that the above-mentioned restrictions under the laws and regulations of the Mainland are complied with, Hong Kong law firms and legal practitioners would be able to provide the relevant services.
 
     As to the actual enforcement of the above restrictions, Hong Kong law firms and legal practitioners are subject to management and supervision or annual review by the judicial administrative authorities of the Mainland in accordance with the provisions of the Measures for the Management of Legal Consultants, the Measures for the Management of Representative Offices and/or the Hainan Trial Measures on Partnership Association. In case Hong Kong law firms and legal practitioners handle Mainland legal matters in violation of the requirements under the said laws and regulations, they may be subject to sanctions by the relevant authorities of the Mainland.
 
     With a view to facilitating the legal sector’s and the public’s understanding of the initiatives under CEPA which concern legal services, relevant information, including frequently asked questions, is available on the DoJ’s website. For details, please visit www.doj.gov.hk/en/mainland_and_macao/cepa.html.
 
(3) Arbitral institutions in Hong Kong operate independently, and may develop their business of their own accord, without government intervention. If a Hong Kong arbitration institution plans to establish offices in Hainan or other regions, it is not required to report to the Government. Therefore, the Government currently has no information as to whether any Hong Kong arbitral institution has already applied, or is in the process of applying to establish offices in Hainan, or whether there are any specific obstacles in this regard.
 
     The Government has always supported and encouraged Hong Kong arbitral institutions to establish branches or offices on the Mainland to provide professional arbitration services to the country, while deepening Hong Kong’s position as an international legal and dispute resolution services centre. For example, when the Hong Kong International Arbitration Centre established representative offices in Shanghai in 2015 and Beijing in 2024 respectively, the then- and current Secretary for Justice respectively attended the opening ceremonies and delivered speeches in Shanghai and Beijing in person.
 
     The Government has maintained close co-operation and regular communication with the Hong Kong legal and dispute resolution sector (including law firms and arbitral institutions). Should it be learnt that a Hong Kong arbitration institution or law firm encounters difficulties in establishing offices in Hainan, the Government will render suitable assistance, such as liaising with the Department of Justice of the Hainan Province and relevant authorities.

LCQ8: Promoting national defence education

Source: Hong Kong Government special administrative region

LCQ8: Promoting national defence education 
Question:
 
     The country revised, adopted and implemented in September 2024 the National Defence Education Law of the People’s Republic of China, which stipulates that national defence education is the foundation for building and consolidating national defence and an important way to enhance national cohesion and improve the overall quality of the citizens. There are views that national defence education, being a core component of patriotic education and national security education, is crucial for strengthening the sense of national identity, the sense of national pride and the awareness of national defence among Hong Kong people, particularly young people. In this connection, will the Government inform this Council:
 
(1) of the number of local youth national defence and military experience activities funded or co-organised by the SAR Government, as well as the respective number of participants, their age distribution and the amount of government funding allocated, in each year from 2023 to 2025;
 
(2) whether the Working Group on Patriotic Education (Working Group) has established more indicative strategies for promoting national defence education in local primary and secondary schools and tertiary institutions under its work plans for 2026 and 2027; whether the Working Group has future plans to collaborate with the Hong Kong Garrison and/or Mainland institutions to increase the number of places for local or Mainland military experience camps, so as to meet the demands of more schools and youth groups; if so, of the details; if not, the reasons for that;
 
(3) whether the SAR Government has future plans to step up communication and collaboration with the Hong Kong Garrison or relevant Mainland authorities to secure the visit to Hong Kong of more advanced national military equipment for exhibition or public viewing on major festive occasions such as the Chinese People’s Liberation Army Day or National Defence Education Day, so as to enhance Hong Kong people’s understanding and awareness of national defence; if so, of the details; if not, the reasons for that;

(4) of the exchange programmes participated by tertiary institutions and primary and secondary schools in Hong Kong to the Mainland for thematic studies on national defence, military affairs or aerospace technologies under the Education Bureau’s programme of Mainland study tours of the Citizenship and Social Development Subject or other government-funded projects, as well as the numbers of participants therein, in the past three years; how the Government assesses the actual educational effectiveness of these study tours; and
 
(5) in the era of big data and digitalisation, whether the Government has plans to increase resource investment in frontier technology (such as artificial intelligence, virtual reality, augmented reality and metaverse technology), as well as to collaborate with scientific research institutes to develop simulation systems suitable for classroom national defence education, with a view to enhancing young people’s interest in national defence technology and the effectiveness of national defence education through immersive and interactive methods; if so, of the details; if not, the reasons for that?
 
Reply: 
     The Government has been making relentless efforts to build mainstream values characterised by patriotism with affection for our country and Hong Kong and in conformity with the principle of “one country, two systems”. It has also been actively organising a diverse range of public and school education activities to promote patriotic education and national security education, with a view to enhancing citizens’ and students’ sense of national identity, national pride, and awareness of safeguarding national security. Among these, national defence education constitutes an important component of patriotic education and national security education.
 
     In response to the question raised by the Hon Wu Ying-peng, the Culture, Sports and Tourism Bureau, the Home and Youth Affairs Bureau (HYAB), the Security Bureau and the Education Bureau (EDB) provide a consolidated reply as follows:
 
(1) to (5)
 
Collaboration with the Chinese People’s Liberation Army Hong Kong Garrison
 
     In celebration of Hong Kong’s return to the Motherland, the Chinese People’s Liberation Army (PLA) Hong Kong Garrison organises barracks open days around July 1, with a view to further enhancing communication and exchanges with different sectors of the local community. In 2021, the PLA Hong Kong Garrison Exhibition Center was set up at Ngong Shuen Chau Barracks. An exhibition themed “Dreams of the East” is staged in its three thematic exhibition halls, namely “the Chinese Dream”, “the Dream of a Strong Military” and “the PRC HK Garrison”, along with a weaponry and equipment area displaying historical photos, antiques and models of the PLA’s military equipment. Through the visits, members of the public can deepen their understanding of the remarkable achievements of the country, the nation’s military history and the work of the Hong Kong Garrison.
 
     As one of the highlight events of the Youth Festival, the HYAB has organised visits to the PLA Hong Kong Garrison Exhibition Center for local youth (including leaders and members of youth uniformed groups/non-governmental organisations, youth hostel tenants and Youth Link members) since 2023. This initiative, benefiting over 700 participants in total, aims to enhance young people’s understanding of our country’s military history and the work of the Hong Kong Garrison, strengthening affection for and sense of belonging to the country. The visits are organised by the HYAB mainly through its existing resources, thus the expenditure involved cannot be singled out. Over the past three years, the District Offices (DOs) under the Home Affairs Department have organised a total of four visits to the PLA Hong Kong Garrison Exhibition Center, drawing nearly 200 participants, the majority of whom were young people aged 12 to 35. These visits were arranged by the respective DOs using their existing resources and manpower, and no additional funding was involved.
 
     The EDB has also issued circular memorandums to primary and secondary schools, encouraging schools to arrange visits to the PLA Hong Kong Garrison Exhibition Center so as to enhance primary and secondary students’ sense of national identity, national pride and national defence awareness, and to enable them to deeply appreciate the importance of safeguarding national security. At the same time, the EDB jointly organises the “Military Summer Camp for Hong Kong Youth” with the Hong Kong Garrison and the Concerted Efforts Resource Centre for secondary students each year. The numbers of students joining the “Military Summer Camp for Hong Kong Youth” from the 2023/24 to 2025/26 school years are set out as follows:
 

School year 
     In addition, there have also been warship visits to Hong Kong in recent years. For example, the Shandong Naval Taskforce, and the 83rd taskforce of the PLA’s Navy visited Hong Kong for exchanges in July and October 2025 respectively. These activities enabled the Hong Kong community to gain a better understanding of the achievements of our country’s military development and construction, and have enhanced Hong Kong citizens’ sense of identity and their pride in the country. The ​Hong Kong Special Administrative Region (HKSAR) Government will provide the necessary assistance as needed to facilitate the PLA’s preparation for related activities, and will also assist in arranging members of the public to participate in these activities, so that the public could personally experience the country’s remarkable accomplishments in national defence and military development. The HKSAR Government will continue to communicate with the PLA and support the discharge of their work.
 
Organising diversified activities
 
     The Government also makes good use of significant dates to promote relevant education. For example, 2025 marked the 80th Anniversary of Victory in the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War. The Government organised a series of commemorative activities. Among them, the EDB launched various learning activities to enable students to remember history and cherish peace. The EDB also issued a circular memorandum encouraging schools to arrange for students to watch the military parade on September 3 last year – the Victory Day of the Chinese People’s War of Resistance Against Japanese Aggression – so that students could learn the indomitable spirit of the Chinese nation in its War of Resistance and understand the latest development of national defence.
 
     The Hong Kong Museum of the War of Resistance and Coastal Defence (MWRCD) under the Leisure and Cultural Services Department (LCSD) was converted from the Hong Kong Museum of Coastal Defence on September 3, 2024. Focusing on the history of the War of Resistance, as well as the coastal defence and military development of Hong Kong, the MWRCD highlights the core theme of safeguarding the homeland through “War of Resistance” and “Coastal Defence”. The MWRCD also organises various types of public and school programmes to enhance the public and students’ national confidence and patriotism, while deepening their understanding of the significant role played by Hong Kong in the history of national defence.
 
     The HYAB subsidises youth uniformed groups for organising family-related activities each year to promote family values. The funded activities include visits to military facilities for members of the uniformed groups and their families to foster harmonious family relationships and deepen their understanding of our country. One such visit was organised in 2023, 2024 and 2025 respectively. The numbers of participants, age range of participants and the funding provided by the Government are set out below:
 

YearAged over 18: 84Aged over 18: 44Aged over 18: 57 
Organising Mainland study tours and exchange activities
 
     Since 2009, the Hong Kong Space Museum under the LCSD has been organising the “Young Astronaut Training Camp”. This annual programme selects 30 local secondary school students to travel to Beijing, Jiuquan, Xi’an and other locations during the summer holidays to participate in astronaut training programmes and learn about the country’s development and achievements in aerospace technology. According to the survey results of the programme, the training camp has enhanced students’ interest in aerospace technology and astronomy, enabled them to experience the country’s scientific achievements first-hand, and successfully inspired some students to pursue university studies in aerospace engineering, astronomy and physics, thereby nurturing future talent for the scientific research sector.
 
     In the past three years, the HYAB also organised young people to participate in activities themed on visiting barracks and the China International Aviation and Aerospace Exhibition, etc in Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area, and sponsored Mainland exchange projects with the themes of national defense, military affairs or aerospace technology through the “HYAB Funding Scheme for Youth Exchange in the Mainland”. The total beneficiaries were over 4 300. Upon completion of the exchange projects, the HYAB would gauge the views of participants on the project through evaluation questionnaires or other means, so as to monitor the effectiveness and quality of the projects.
 
     The EDB has been organising diversified Mainland exchange programmes (MEPs) and subsidising schools to organise such programmes for primary and secondary students. The itineraries cover visits relating to national defence, military affairs, aviation and aerospace technology, such as visits to the Guangzhou National Defence Education Centre, Zhuhai National Defence Mobilisation (Civil Air Defence) Education Centre, Wenchang Aerospace Supercomputing Centre and the Zhuhai Aerospace Land, as well as the National Defence Education Experience Camp held at the National Defence Education Base in Zhongshan, with a view to enhancing students’ understanding of the importance of national defence security, the strength of national military technology, and our country’s development and achievements in aerospace technology. The numbers of students joining the MEPs related to national defence, military affairs, or aviation and aerospace technology from the 2023/24 to 2025/26 school years are set out as follows:
 

 School year(rounded down to the nearest hundred) 
     The EDB launched the Mainland study tours for the senior secondary subject of Citizenship and Social Development (CS) in April 2023, and has long attached great importance to the integration of themes related to national defence, military affairs, and aviation and aerospace technology into study tour activities. These include visits to the Zhuhai Aerospace Land, Shandong Eastern Aerospace Port Command and Control Centre, and the National Big Data Exhibition Centre in Guizhou, as well as relevant training at learning sites such as the Guangzhou Activity Base and the Northwestern Polytechnical University. From the 2023/24 to 2025/26 school years, about half of the CS Mainland study tour itineraries involved national defence, military affairs, or aviation and aerospace technology, with the numbers being 13, 14 and 15 respectively and over 67 800 students participating. The numbers of CS Mainland study tour itineraries involving national defence, military affairs, or aviation and aerospace technology and the number of participating students from the 2023/24 to 2025/26 school years are set out as follows:
 

School year(rounded down to the nearest hundred) 
     The EDB has all along been using various channels, including school visits, inspections, collection of student work (such as photos, video clips and student reflections), and interviews with teachers and students to understand and review the learning effectiveness of MEPs for students and CS Mainland study tours. The EDB also collects participants’ feedback through deployment of staff for on-site participation, questionnaire surveys, post-trip sharing sessions, etc, to continuously optimise the design and arrangements of the learning activities. According to the results of questionnaire surveys, feedback from teachers and students has been very positive. They generally agree that the Mainland exchanges and study tours help deepen their understanding of our country’s development in national defence, military affairs, aviation and aerospace technology etc, extend classroom learning, and enhance their sense of national identity and national pride, as well as awareness of safeguarding national security.
 
     Starting from the 2022-25 triennium, the University Grants Committee (UGC) has stipulated that UGC-funded universities should incorporate values education, together with education on the Constitution, the Basic Law and the Hong Kong National Security Law, as an integral part of their curricula, with a view to nurturing students to be law-abiding and responsible citizens. In this regard, the  
     The UGC has consistently encouraged publicly-funded universities to promote exchanges between local students and students from the Chinese Mainland. Starting from the 2023/24 academic year onwards, the UGC has injected $100 million into the “Funding Scheme for Chinese Mainland and Global Engagement and Student Learning Experience”, enabling universities to use the funding to provide students with more learning opportunities outside Hong Kong, enhance cross-cultural exchanges on campus, and create a diverse and inclusive international learning environment. In particular, universities have funded local students to participate in exchange programmes and study tours (including in areas such as national defence and aerospace technology) in the Chinese Mainland, which help students understand the national context and strengthen their sense of national identity with and belonging towards the motherland.
 
     The Education Sub-group under the Working Group on Patriotic Education continues to receive reports from the EDB on the implementation of national security education and national defence education in primary and secondary schools as well as tertiary institutions (including the relevant parts mentioned above) and puts forward suggestions. The Government will continue to actively follow up on the relevant suggestions, and to continuously develop and optimise various related initiatives based on the learning needs and interests of young people, with a view to nurturing them into a younger generation with a strong sense of national identity, a commitment to safeguarding national security, and a love for our country and Hong Kong.
Issued at HKT 15:20

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LCQ16: Regulating non-food products in snack-like packaging

Source: Hong Kong Government special administrative region

LCQ16: Regulating non-food products in snack-like packaging 
Question:
 
     A primary school student was recently admitted to hospital after accidentally ingesting a bath preparation in candy-like packaging. It is learnt that the packaging of the product concerned lacked Chinese labelling. The incident highlights the risk of accidental consumption posed to children by some non-food products on the market with packaging that closely resembles snacks. In this connection, will the Government inform this Council:
 
(1) whether it knows the number of cases received annually over the past three years by the Hospital Authority involving hospital admissions due to accidental consumption of non-food products (particularly daily necessities or toys with packaging closely resembling food); and in which of the number of cases involving children aged 12 or under;
 
(2) as pursuant to the Consumer Goods Safety Ordinance, manufacturers, importers and suppliers are required to ensure that the consumer goods they supply comply with the general safety requirements, and the Consumer Goods Safety Regulation also stipulates that warnings on consumer goods shall be presented in both the English and Chinese languages, whether the Customs and Excise Department has, over the past three years, proactively conducted inspections of products packaged to resemble snacks or consumer goods with misleading packaging on the market; if so, of the respective numbers of non-compliance cases, prosecutions and convictions, as well as the value and quantity of confiscated items;
 
(3) in addition to the aforementioned Ordinance and Regulation, whether there are any other laws regulating non-food products packaged to resemble snacks (e.g. bath preparations, laundry pods, etc.); if so, of the details; and
 
(4) whether the Education Bureau and other relevant government departments will step up publicity and education targeting schools and parents to prevent children from accidentally consuming non-food products in snack-like packaging?
 
Reply:

President, 
(1) Over the past three years, the number of cases received by the Hong Kong Poison Control Centre of the Hospital Authority involving patients seeking medical attention after accidentally ingesting non‑food items is tabulated as follows:
 

Year(2) and (3) Any person supplying relevant products or articles to consumers, regardless of the form, packaging and sales channel, is responsible for ensuring that their safety complies with the requirements of relevant ordinances.
 
     The Consumer Goods Safety Ordinance requires manufacturers, importers and suppliers to ensure that the consumer goods they supply are reasonably safe. The Consumer Goods Safety Regulation requires that warnings or cautions on the packaging or labels of consumer goods shall be provided in both the Chinese and English languages in a legible and conspicuous manner.
 
     The C&ED is the enforcement agency of the Consumer Goods Safety Ordinance. From 2023 to 2025, the C&ED conducted 5 546 surveillance visits, and investigated 151 cases. During the above period, the C&ED prosecuted one person and 10 companies involved in 13 cases related to various types of consumer goods (Note) in accordance with the Consumer Goods Safety Ordinance and the Consumer Goods Safety Regulation. All the defendants were convicted and fined by the Court, with the amount ranging from $4,000 to $32,000.
 
(4) The EDB has all along been liaising with various government departments and non-governmental organisations to advise schools and enhance publicity on students’ health and safety matters. For instance, with the new regulatory requirements for konjac-containing jelly confectionery products taking effect on April 1, 2026, the EDB has promptly collaborated with the Centre for Food Safety to issue a letter to all schools in Hong Kong, drawing their attention to the requirements under the new regulation and advising them to promote food safety awareness among students, caregivers and staff by displaying educational materials such as posters and leaflets on safe eating habits and choking prevention.
 
     In addition, the Department of Health (DH) promotes to the public messages on injury prevention with a view to safeguarding health of citizens. In respect of children’s safety at home, the DH published the Domestic Safety Handbook in 2019 to provide recommendations on the safe use of common household products, electrical appliances and furniture that may pose potential hazards. In addition, the Maternal and Child Health Centres and Student Health Service Centres of the DH provide health promotion and disease prevention services respectively for children from birth to five years old, as well as primary and secondary school students. These services include the promotion of relevant information during individual health counselling sessions to prevent accidents such as accidental ingestion of foreign bodies by children. Furthermore, the DH also disseminates messages on home safety and injury prevention to parents through various channels, such as public talks, health education resources, electronic publications, websites and social media platforms.
 
Note: The types of consumer goods involved include face masks, slippers, rechargeable flashlights, whitening creams, dishwashing detergents, drain cleaners, portable rechargeable fans, gardening supplies, laundry capsules and personal care products.
Issued at HKT 12:48

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LCQ14: Safeguarding spinal health of students

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Vincent Cheng and a written reply by the Acting Secretary for Health, Dr Cecilia Fan, in the Legislative Council today (June 10):
 
Question:
 
     There are views pointing out that there has been an upward trend of Hong Kong students suffering from varying degree of spinal problems (e.g. round upper back, forward head posture and scoliosis) in recent years and such patients have become increasingly younger. Earlier on, departments such as the National Health Commission have issued the “‘Five Health’ Promotion Action Plan for Children and Adolescents (2026-2030)”, which calls for increased attention to the health problems of children and adolescents, including their bone health. In this connection, will the Government inform this Council:
 
(1) whether it has analysed the reasons for the year-on-year increase in the proportion of students required further spinal assessment after receiving scoliosis screening at the Student Health Service Centres (SHSCs) of the Department of Health (DH) over the past three school years; of the respective annual numbers of students referred by DH to specialists for following up on their spinal problems over the past three school years, as well as the average waiting time of such cases;
 
(2) given that spinal assessment is not currently included in the annual assessment provided by SHSCs, and that SHSCs will only provide spinal assessment for Secondary Four to Six students as and when necessary, whether the authorities will consider providing regular spinal assessment services to students from all grades so as to achieve the effects of “early detection, early identification and early support”;
 
(3) as there are views that overweight school bag is one of the major causes leading to students developing round upper back and spinal compression, whether the authorities have considered allocating additional resources to subsidise the comprehensive provision of additional lockers in schools, so that students can make good use of storage facilities and alleviate the problems arising from overweight school bags;
 
(4) whether the authorities will promote multilateral co-operation among professional bodies, healthcare professionals, families and schools by regularly organising spinal health seminars and workshops, so as to enhance the awareness and understanding of primary and secondary school teachers across the territory as well as parents regarding students’ improper sitting postures and early signs of scoliosis; and
 
(5) whether it will explore incorporating contents such as spine care and core muscle training into the curriculum of regular physical education lessons of primary and secondary schools or formulating school programmes relating to spine protection, so as to assist students in building the habit of maintaining good posture?
 
Reply:
 
President,
 
     The Student Health Service (SHS) under the Department of Health (DH) provides health promotion and preventive healthcare programmes for primary and secondary school students according to their needs at various stages of development. It aims to safeguard the physical and psychological health of school children, and enable them to gain the maximum benefit from the education system and to develop their potentials.
 
     To attain this objective, the DH’s SHS provides free annual health assessment services for primary and secondary school students, which include growth monitoring, vision and hearing screening, health assessment questionnaires. If health or behavioural problems are identified, healthcare professionals of the DH will provide health counselling and relevant information, and refer the students to the Special Assessment Service under the SHS, specialist clinics under the Hospital Authority, or other appropriate institutions for further suitable assessment and treatment.
 
     In consultation with the Education Bureau (EDB) and the DH, the consolidated reply to the question raised by the Hon Vincent Cheng is as follows:
 
(1) According to data of the DH, the percentage of students requiring further spinal assessment and the annual number of students referred by the DH to specialists for further spinal assessment across the ten school years from 2015/16 to 2024/25 are tabulated below:
 

School year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Number of students referred by the DH to specialists for further spinal assessment 3 044 2 721 2 677 2 684 1 447 1 079 1 885 3 350 4 191 2 665
Percentage of students requiring further spinal assessment 17.2% 16.5% 15.2% 15.2% 15.6% 20.8% 16.3% 13.7% 16.5% 17.4%

 
     Regarding the past three school years mentioned in the question, the percentage of students requiring further spinal assessment ranged from 13.7 per cent to 17.4 per cent. This is consistent with the variations observed within the data range of the past ten years (13.7 per cent to 20.8 per cent), within the normal range, and not representing a year-on-year increase. Although the annual number of students referred by the DH to specialists over the past ten years fluctuated from year to year, it still remained relatively stable. The increases in the number of students during the 2022/23 and 2023/24 school years were mainly due to a decrease in the number of students receiving assessments during the COVID-19 pandemic. This resulted in an increase in both the number of students receiving assessments and requiring referrals during the two school years following the return to normalcy (i.e. the 2022/23 and 2023/24 school years). The figure has already declined substantially in the 2024/25 school year. Depending on actual circumstances such as the appointment time chosen by the students, students undergoing further spinal assessment by the DH can generally receive an assessment appointment within a few weeks.

(2) When considering disease screening, the DH takes into account several medical principles for an overall assessment. For example, a concerned disease must have an identifiable incubation period or early symptomatic period, effective treatments with medical evidence, and significant demonstrated improvement in treatment outcome through early intervention. Moreover, a screening test must be accurate, simple, safe, and acceptable to the target population. The cost of the screening program must be balanced with the overall need of medical resources.
 
     According to clinical evidence, the peak incidence of scoliosis in adolescents mainly occurs in the age group of 10 and 14 (i.e. Primary 5 level to Secondary 3 level) during the puberty development period. Screening during this period is the most effective way to identify at-risk cases early before skeletal maturity of students, which enables timely referrals and treatment. In view of the aforementioned medical principles, the DH’s SHS pays special attention to the skeletal growth of students aged 10 to 14 when providing free annual health assessment services, and arranges examinations to be conducted by healthcare professionals either annually or on alternate years depending on the circumstances.
 
     When students reach the stage of Secondary 4 to Secondary 6 (i.e. aged 15 or above), their skeletal growth has gradually matured and stabilised. The clinical risk of rapid deterioration of scoliosis decreases significantly. Therefore, the current mechanism, which arranges spinal assessments for Secondary 4 to Secondary 6 students based on clinical needs, aligns with the aforementioned medical principles and the practice to balance the cost-effectiveness of public resource utilisation.
 
(3) The EDB attaches great importance to students’ health and reminds schools to provide a learning environment that promotes students’ physical and mental health. The EDB has all along advised schools to adopt feasible measures to reduce the weight of students’ school bags through various channels, such as circulars, guidelines, letters to school heads, featured articles, online promotional resources, and the annually distributed parent leaflets. The EDB Circular No. 17/2015 on “Guidelines on Reducing the Weight of School Bags” clearly spells out a range of measures recommended for schools to reduce the weight of school bags. For example, schools should, according to their financial budget and available space, provide storage facilities for students as far as possible, and help students develop the habit of making good use of storage facilities. Student lockers have been the standard provision of new schools for the last 20 years, and schools may make flexible use of the recurrent subvention provided by the EDB to procure storage facilities for students having regard to school-based circumstances and students’ needs. 

(4) and (5) The DH has been collaborating with schools and community organisations to jointly promote relevant health messages. The DH will distribute leaflets on good posture, core muscle exercises and scoliosis to students at Primary 5 level and above participating in the service and their parents. The objective is to deepen their awareness and understanding of poor sitting posture and early signs of scoliosis. The EDB will also co-ordinate with the DH in disseminating relevant materials to schools for further publicity and education.
 
     Content related to spinal care has been incorporated into relevant school subjects, including Primary Humanities, Primary Science, Biology (Secondary 4 – 6). These curricula cover learning contents on spinal protection, helping students learn the proper standing and sitting postures, and the proper postures when reading, carrying school bags and using electronic devices. The curricula also help students develop good habits of protecting their spines. Meanwhile, the emphasis for Physical Education is on cultivating a healthy lifestyle for students.

LCQ3: Remuneration of key management personnel of Hospital Authority

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Chan Hoi-yan and a reply by the Acting Secretary for Health, Dr Cecilia Fan, in the Legislative Council today (June 10):

Question:

     The Hospital Authority (HA) is a statutory body receiving government funding for operation, and its expenditure and financial position have all along been a matter of concern in society. But at present, HA has not fully disclosed the detailed remuneration information on its key management personnel, thus depriving the public of a complete and accurate understanding of the remuneration expenditure for the relevant personnel. In this connection, will the Government inform this Council:

(1) whether it knows the total remuneration expenditure and the average rate of increase in the annual remuneration for HA’s key management personnel over the past five years by post category, including the Chief Executive, Cluster Chief Executives, and Directors and other division heads of the Head Office;

(2) given that according to HA’s annual report, the basic salaries and other short-term employee benefits of key management personnel rose by around HK$6 million in 2024-2025 over the preceding year, with a rate of increase close to 9 per cent, whether the Government knows the main reasons for this, including whether a personnel increase was involved; if so, of the posts and numbers of personnel involved respectively; and

(3) whether it knows if HA has any performance indicators for reference when determining the rate of remuneration increase for the relevant key management personnel under the existing mechanism; if so, of the details; if not, whether the authorities will consider introducing the relevant indicators?

Reply:

President,

     The Hospital Authority (HA) is a statutory body established under the Hospital Authority Ordinance (Cap. 113) (the Ordinance). The members of the HA shall form its governing body with authority, in the name of the HA, to perform the functions and exercise the powers of the HA. The Government provides funding to the HA annually for the provision of public healthcare services. Schedule 3 to the Ordinance stipulates that the remuneration and the terms and conditions of employment of HA’s employees shall be determined by the HA.

     The HA currently manages 43 public hospitals and healthcare institutions, 49 specialist outpatient clinics, and 75 Family Medicine Clinics, employing over 97 000 people. The HA needs to effectively attract and retain outstanding management talent to carry out its managerial duties. Among the employees of the HA, key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the HA, including the Chief Executive, Cluster Chief Executives, Directors and other division heads of the Head Office. Currently, there are 15 key management personnel positions in the HA. The remuneration of key management personnel is determined according to the relevant policies established by the HA Board, and they do not enjoy any variable components based on work performance. Their total remuneration mainly consists of basic salaries and other short-term benefits. These short-term benefits include allowances and one-off payments for encashment of untaken leave upon retirement or departure from service.

     The annual pay adjustment for all HA employees makes reference to the civil service annual pay adjustment and takes effect only after approval by the HA Board.

     On the other hand, in accordance with established policy, when the HA recruits new key management personnel, the remuneration for the relevant position will be reset to the starting point of the corresponding pay scale, which will result in a reduction in the remuneration of key management personnel.

     The HA has been strictly controlling the remuneration expenditure of key management personnel. Taking 2024-25 with the most recent audited accounts as an example, after excluding the additional staff costs arising from a newly created key management personnel position, one-off payments for leave encashment of retirees and salary increments granted under the established mechanism, the actual adjustment in remuneration expenditure for key management personnel in that year was 2.06 per cent, equivalent to approximately $1.42 million. In 2024-25 and the preceding four financial years, the average year-on-year increase in the total remuneration expenditure of key management personnel was only 1.6 per cent, with a decrease recorded in certain years.

     In consultation with the HA, the consolidated reply to the question raised by the Hon Chan Hoi-yan is as follows:

(1) From 2020-21 to 2024-25, the total remuneration expenditure of key management personnel of the HA increased from $77.8 million in 2020-21 to $82.6 million in 2024-25, representing an average annual increase of 1.6 per cent. During the same period, the remuneration expenditure of the then-Chief Executive increased from $6.2 million to $7.1 million, with an average annual increase of 3.5 per cent. The total remuneration expenditure of other key management personnel increased from $71.6 million to $75.5 million, representing an average annual increase of 1.4 per cent. Details are set out in Annex 1.

(2) To co-ordinate major capital works projects under the Hospital Development Plan, including the construction of Kai Tak Hospital and the redevelopment of Kwong Wah Hospital, the HA created the new key management personnel position of “Director (Development and Works)” in March 2024. The full-year financial impact of this position was first reflected in 2024-25.

     After excluding the expenditure related to the newly added key management personnel position, one-off payments for leave encashment for retirees, and salary increments granted under the established mechanism, the actual year-on-year increase in the expenditure on basic salaries and other short-term employee benefits for key management personnel in 2024-25 was 2.06 per cent, equivalent to approximately $1.42 million.

(3) As mentioned above, the HA has an established mechanism to strictly control remuneration expenditure. The annual pay adjustment of the HA makes reference to the civil service annual pay adjustment and requires approval by the HA Board. Furthermore, the HA’s established salary increment mechanism grants salary increments based on staff performance ratings. Specifically, employees are required to undergo a Staff Development Review each year to assess their work performance. Only those who are assessed as having performed satisfactorily will be granted a salary increment. In addition to undergoing the Staff Development Review, key management personnel are also required to participate in performance evaluation meetings for a more detailed assessment of their performance.

     Adjustments to the remuneration of the HA’s key management personnel have all along been made in strict accordance with the established mechanism. This remuneration mechanism balances the need to attract and retain talent with the requirement for prudent control of staff costs, helping the HA maintain a professional and stable workforce to deliver high-quality and efficient healthcare services to the public of Hong Kong. Thank you, President.