Category: MIL-OSI

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Jimmy Ng and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (October 14):
 
Question:
 
     The Government has been promoting the development of vocational and professional education and training (VPET) for many years. With the Government’s support, the Vocational Training Council (VTC) has implemented the Pilot Incentive Scheme to Employers (PISE) under the Training and Support Scheme (the Support Scheme) to encourage employers to provide workplace learning and assessment for learners, thereby enhancing their work performance. It is learnt that there are public concerns as to whether the Government will further promote and support the development of VPET. In this connection, will the Government inform this Council:
 
(1) as far as the Support Scheme is concerned, (i) of the respective numbers of employers and learners participating in the Support Scheme in the past three school years, with a breakdown by industry; (ii) whether it will increase the training places and raise the ceiling on the monthly subsidy for learners under the Support Scheme; if so, of the details; if not, the reasons for that; (iii) whether it will provide more incentives for employers to encourage more industrial and commercial enterprises to participate in the Support Scheme; if so, of the details;
 
(2) as far as the PISE is concerned, (i) of the respective numbers of employers and learners participating in the PISE in the past three school years, with a breakdown by industry; (ii) whether it will study raising the ceiling on the subsidy for employers under the PISE; if so, of the details; (iii) whether it will consider extending the PISE to cover VPET courses organised by institutions other than the VTC; (iv) whether it will study formulating industry-recognised standards for skills tests; if so, of the details; (v) whether it will further extend or regularise the PISE; if so, of the details; if not, the reasons for that; and
 
(3) whether it will consider launching more new schemes to strengthen VPET and apprenticeship training; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     In line with the strategic deployment of the National 15th Five-Year Plan to promote the integrated development of education, technology and talent, the Hong Kong Special Administrative Region Government’s First Five-Year Plan clearly states that the Government will advance the high-quality development of vocational and professional education and training (VPET). To this end, the Education Bureau (EDB) continues to adopt the strategy of “fostering industry-institution collaboration and diversified development” under a multi-pronged approach to promote VPET as a pathway parallel to conventional academic education, encouraging industry-education collaboration and the collaboration between schools and businesses, providing diversified learning and employment opportunities, thereby nurturing more high-quality talent equipped with applied skills.
 
     The reply to the Hon Jimmy Ng’s question is as follows:
 
(1) The Government has supported the Vocational Training Council (VTC) to launch the Training and Support Scheme (the Support Scheme) on a pilot basis since the 2014/15 academic year (AY), and has regularised it since the 2019/20 AY. The Support Scheme aims to provide structured classroom learning and on-the-job training, as well as a stable income for trainees undergoing on-the-job training, so as to attract and retain talent for industries with a keen manpower demand. The Support Scheme currently covers six professional fields, namely Engineering and Technology; Transportation; Design, Jewellery, Creative Industry; Healthcare Services; Testing and Certification; and Hospitality, and offers 1 200 training places each financial year.
 
The numbers of employers and trainees participating in the Support Scheme in the recent three AYs (i.e. 2024/25, 2025/26 and 2026/27 AYs) are as follows:

Professional field	Industry and relevant programme	Number of employers*/trainees
		2024/25	2025/26	2026/27#
Engineering and Technology	Building Services and Management	42/201	44/222	35/187
	Construction	32/95	38/87	22/50
	Electrical Engineering	43/289	49/242	60/261
	Mechanical Engineering	14/120	23/137	14/112
	Electronic and Information Technology	32/158	31/115	25/86
	Environment and Conservation	0/0	1/2	2/4
Transportation	Automobile	16/105	20/89	11/64
	Aviation	0/0	0/0	0/0
Design, Jewellery, Creative Industry	Design and Printing	3/3	1/2	0/0
	Jewellery and Watches	1/2	1/2	0/0
Healthcare Services	Healthcare Services	8/18	2/4	4/7
Testing and Certification	Testing and Certification	8/17	3/4	7/12
Hospitality	Hotel and Catering	Not applicable^	0/0	0/0
	Culinary Arts and Science	Not applicable^	0/0	0/0
Total		199/1008	213/906	180/783

* Participating employers may employ trainees in more than one industry.
# The figures of 2026/27 AY are up to September 30, 2026.
^ No relevant programme is offered in that year.
 
     The Support Scheme has received positive responses since its launch. The training places and monthly allowance ceiling that are currently offered can generally meet the demand, and industry participation has been satisfactory. The VTC has also maintained close communication with the industries to ensure that the Support Scheme aligns with industry needs and the development of emerging industries while providing sufficient training places. The VTC will continue to closely monitor the implementation of the Support Scheme and feedbacks from the industries, and will review and make appropriate adjustments timely when needed.
 
(2) The Government has supported the VTC to implement the Pilot Incentive Scheme to Employers (the Pilot Scheme) under the Support Scheme since the 2019/20 AY. The Pilot Scheme mainly encourages employers to conduct systematic assessment on workplace learning for trainees participating in the Support Scheme. Through assessing and observing directly trainees’ abilities and performance, employers could keep track of trainees’ learning progress and make timely adjustments to the training content based on the assessment results, thereby effectively enhancing the trainees’ overall performance. To encourage employers’ participation in the Pilot Scheme, the Government provides participating employers with a subsidy of up to $36,000 per trainee, with 1 000 places offered each AY.
 
     The numbers of employers and trainees participating in the Pilot Scheme in the past three AYs# (i.e. 2023/24, 2024/25 and 2025/26 AYs) are as follows:

Professional field	Industry and relevant programme	Number of employers*/trainees
		2023/24	2024/25	2025/26
Engineering and Technology	Building Services and Management	35/61	32/48	34/27
	Construction	37/89	37/67	22/20
	Electrical Engineering	49/97	38/119	33/91
	Mechanical Engineering	15/42	10/55	16/65
	Electronic and Information Technology	42/100	26/79	28/46
	Environment and Conservation	2/0	0/0	1/2
Transportation	Automobile	15/44	15/50	14/30
	Aviation	5/7	2/0	0/0
Design, Jewellery, Creative Industry	Design and Printing	3/0	3/3	0/0
	Jewellery and Watches	1/0	0/0	1/0
Healthcare Services	Healthcare Services	11/8	6/6	8/0
Testing and Certification	Testing and Certification	5/8	5/9	5/3
Hospitality	Hotel and Catering	Not applicable^	Not applicable^	0/0
	Culinary Arts and Science	Not applicable^	Not applicable^	0/0
Total		220/456	174/436	162/284

# As the 2026/27 AY has just commenced and the Scheme has not yet been implemented, the relevant figures are not yet available.
* Participating employers may employ trainees in more than one industry.
^ No relevant programme is offered in that year.
 
     According to the survey conducted by the VTC, most participating employers were satisfied with the Pilot Scheme and indicated that it enabled them to better understand trainees’ abilities. Most trainees indicated that the Pilot Scheme allowed them to demonstrate their learned skills in the workplace, and agreed that the assessment results could enhance the effectiveness of on-the-job training. On the whole, the Pilot Scheme has received positive responses since its launch. The VTC will continue to closely monitor the implementation of the Pilot Scheme and feedbacks from the industries, and will review various arrangements timely, including whether to extend the Pilot Scheme to cover more industries and their relevant programmes.
 
     In addition, under the Qualifications Framework (QF), Industry Training Advisory Committees have been established for 23 industries. They have respectively developed “Specification of Competency Standards” (SCS) tailored to different job functions and roles, setting out the skills and knowledge practitioners must possess, as well as the competency standards they must attain to perform various job functions in the industries. These SCS serve as key reference for talent development, curriculum design and qualifications recognition. Among them, 19 industries have established Recognition of Prior Learning mechanisms based on their SCS, enabling practitioners to have their work-based knowledge, skills and experience formally recognised through relevant tests or assessments, thereby obtaining corresponding QF-recognised qualifications.
 
(3) In recent years, the VTC has strengthened VPET at the secondary school level to help students gain an earlier understanding of the industries and career pathways. With the support of the EDB, the VTC has launched the following two pilot schemes to enable students to gain earlier exposure to VPET, discover their interests and broaden their VPET articulation pathways:
 

1. The Pilot Diploma of Vocational Baccalaureate Programme was launched in the 2018/19 AY, offered by the Youth College under the VTC. It is a three-year vocationally-oriented programme with reference to international standards. Upon completion, students will be awarded an internationally recognised diploma, and may choose to directly articulate to local or overseas undergraduate programmes, to Higher Diploma programmes offered by the VTC, or pursue a career in their respective industries. The Programme has been regularised starting from the 2026/27 AY; and
2. The Pilot Project on Diploma of Vocational Education (Senior Secondary Curriculum) (DVE(SSC)) was launched in the 2023/24 AY, allowing senior secondary school students to pursue VPET-related programme embedded in the Hong Kong Diploma of Secondary Education (HKDSE) curriculum. Upon completion, students will be awarded, alongside their HKDSE qualification, a DVE(SSC) at QF Level 3, enabling them to apply for relevant higher diploma programmes offered by the VTC. The Project has been extended for three AYs starting from the 2026/27 AY.

 
     As regards apprenticeship training, in view of the persistent shortage of local technical professionals, the Government will continue to promote the Apprenticeship Scheme through the VTC, providing structured apprenticeship training and clear progression pathways. To encourage more young people to join the Scheme and enter the relevant trades, the 2026 Policy Address announced that the provision of an additional monthly training allowance of $1,000 to registered apprentices since 2024-25 will be extended for two years to 2028-29.

Source: Hong Kong Government special administrative region – 4

Following is a question by the Hon Tommy Chung and a reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (October 14):

Question:

There are views relaying that given the lack of flexibility in the existing Standard Employment Contract and supporting policies, employers of foreign domestic helpers (FDHs) are facing a number of problems. In this connection, will the Government inform this Council:

(1) whether it will study introducing a statutory probation period (e.g. two to three months) in the employment contracts of FDHs, reviewing the arrangement under which employers are required to provide free passage so that FDHs have to pay for their airfares in proportion to their length of service, and limiting the agency fees charged for re-hiring to a specific percentage of the amount paid for initial hiring so as to protect the rights and interests of employers; if so, of the details; if not, the reasons for that;

(2) whether it will formulate in collaboration with the Equal Opportunities Commission the practical guidelines on compliant departure and contract termination targeting FDHs to provide objective medical assessment standards and standard mediation procedures for situations where FDHs are unable to perform duties due to serious illness or other reasons; if so, of the details; if not, the reasons for that; and

(3) whether it will amend the legislation to stipulate that FDHs who are dismissed upon conviction for criminal offences will immediately forfeit their eligibility to any statutory compensation, payment in lieu of notice and passage allowance, while the Immigration Department will also prohibit them from coming to Hong Kong to work again; if so, of the details; if not, the reasons for that?

Reply:

President,

The Government attaches great importance to the reasonable rights and interests of both foreign domestic helpers (FDHs) and employers, and is committed to balancing the concerns and interests of both parties, while maintaining Hong Kong as an attractive work destination for a sufficient number of FDHs, so as to meet the community’s increasing domestic care needs. Having consulted the Immigration Department (ImmD) and the Equal Opportunities Commission (EOC), my reply to the question is as follows:

(1) Under the Standard Employment Contract (SEC) for employing FDHs, either party may terminate the employment contract by giving the other party not less than one month’s notice in writing, or paying one month’s wages in lieu of notice. If an FDH wilfully disobeys a lawful and reasonable order, misconducts himself/herself, is guilty of fraud or dishonesty, or is habitually neglectful in his/her duties, the employer may also summarily dismiss the FDH under the Employment Ordinance (Cap. 57) (EO) without notice or payment in lieu of notice. Therefore, under the existing arrangements, employers may already terminate employment contracts in accordance with the EO and the terms of the SEC where necessary. The Government considers that there is no need to introduce into the SEC an additional provision prescribing a probationary period.

     The SEC also provides that the employer shall be responsible for the FDH’s passage for returning to his/her place of origin upon termination or expiry of the contract. This arrangement is one of the necessary conditions for allowing employers to recruit domestic helpers from overseas to work in Hong Kong. Its purpose is to ensure that FDHs who come to Hong Kong will not be left stranded in Hong Kong due to a lack of means for travel, thereby avoiding potential public order and other social problems. Other labour importation schemes also require employers to bear the same responsibility. The Government has no plan to amend this requirement.

     At present, employers may hire FDHs through employment agencies (EAs) or on their own. The fees charged by EAs depend on their scope of services and their agreements with employers. These are a matter of market practice, and it is not appropriate for the Government to prescribe the mode and level of relevant fees. To strengthen the protection of the rights and interests of FDH employers as consumers, the Labour Department (LD) revised the Code of Practice for Employment Agencies in May 2024, requiring EAs to clearly state whether, if an FDH prematurely terminates the contract, they will provide a refund, a replacement FDH or other arrangements, and whether additional fees will be charged, with a view to enhancing the transparency of charging and service arrangements and enabling employers to make informed decisions when choosing EAs. EAs breaching the Code of Practice for Employment Agencies may be subject to disciplinary actions by the LD.

(2) The EOC has formulated the Code of Practice on Employment under the Disability Discrimination Ordinance, which provides practical guidance for employers and employees in all types of occupations (including FDHs and their employers), explaining how to prevent disability discrimination in the workplace and how to effectively implement the Disability Discrimination Ordinance (Cap. 487) (DDO) in the workplace. Upon receipt of a complaint of disability discrimination, the EOC will handle it in accordance with the established procedures, which include, with the consent of the parties concerned and having regard to all relevant information, assisting FDHs and their employers to clarify the issues in dispute and reach a settlement through conciliation.

     Under the DDO, it is unlawful for an employer to discriminate against or dismiss an employee on the ground of the employee’s disability. Nevertheless, the law does not stipulate that employers are prohibited from dismissing the employees concerned under all circumstances. An exception may apply if the employer can present objective evidence to prove that the employee concerned is unable to perform the inherent requirements of the job due to the employee’s disability. If an employee is still able to perform the inherent requirements of the job, but requires adjustments to the working arrangements, the employer may consider providing appropriate accommodation having regard to the specific circumstances of the case. Such accommodation may include flexible working arrangements to allow the sick employee to attend medical appointments, take rest, etc. An exception under the DDO may also apply if the accommodation required would impose an unjustifiable hardship on the employer.

     The Government encourages employers and FDHs to make reference to the Code of Practice on Employment under the Disability Discrimination Ordinance and work together to foster a mutually beneficial work environment for both parties.

(3) As there are many types of criminal offences and their severity varies, they cannot be generalised. However, as I have just mentioned, if an FDH, in relation to his/her employment, is guilty of fraud or dishonesty, for example, where he/she is convicted by the court of stealing property from the employer’s home, the EO currently already provides that the employer may summarily dismiss the FDH without notice or payment in lieu of notice. However, the employer is still required to provide the FDH with return passage to his/her place of origin. This arrangement is one of the necessary conditions for allowing employers to recruit domestic helpers from overseas to work in Hong Kong, and is intended to ensure that FDHs who come to Hong Kong will not be left stranded in Hong Kong due to a lack of means for travel.

     The ImmD has all along been assessing employment visa applications from FDHs in a rigorous manner, and will consider each application having regard to its individual circumstances. An FDH must meet the eligibility criteria set out in the Guidebook for the Employment of Domestic Helpers from Abroad, including having no known record to the detriment of him/her, and must also meet the normal immigration requirements, such as being of clear criminal record, before his/her application will be considered for approval. If an FDH has any adverse record or has committed any breach, the ImmD will normally refuse his/her application.

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Chris Ip and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (October 14):

Question: 
(1) of the number of complaints received by the authorities and the number of drivers with points incurred since the implementation of the Taxi-Driver-Offence Points system, with a breakdown by the nature of the offences; the number of drivers who have been disqualified from driving a taxi due to accumulated points;
 
(2) as there are views pointing out that drivers of red taxis plying for hire at public transport interchanges provided with both New Territories and urban taxi stands generally expect to pick up passengers travelling to urban areas, whether the authorities will, by drawing on the operational model of cross-harbour taxi stands, set up dedicated taxi stands at some interchanges for passengers bound for urban areas; if so, of the details; if not, the reasons for that; and
 
(3) as there are views that point-to-point transport demand in the New Territories will continue to increase in the future, whether the Government will, apart from adjusting the number of ride-hailing vehicle licences, review the number of taxi licences in a timely manner or enhance the existing service arrangements for urban and New Territories taxis; if so, of the details; if not, the reasons for that?
 
Reply: 
(1) The TDOP system has officially come into effect on September 22, 2024, covering 11 relatively serious taxi-driver-related offences under the legislation. A taxi driver who is convicted of any of these offences or is liable to pay a fixed penalty will incur the corresponding points. In accordance with the law, a taxi driver must not, without reasonable excuse, willfully refuse or neglect to accept a hire, nor refuse or neglect to drive the taxi to any place indicated by the hirer (refusing hire). The Police has all along been handling cases involving refusing hire seriously, and will seek advice from the Department of Justice and initiate prosecution if there is sufficient evidence. Any person who commits refusing hire will incur with the maximum of 10 points under the TDOP system.
 
     As of October 2, 2026, a total of 229 taxi drivers had incurred points, of which 125 cases were for refusing hire. Out of all the 229 drivers with points incurred, three drivers have been disqualified from driving a taxi (for a period of three months) owing to an incurrence of 15 points or more. Breakdown is set out at Annex I.
 
     In addition, from the implementation of the TDOP system to August 2026, the Transport Department (TD) had received a total of 5 944 taxi-driver-related complaints, of which 605 cases involved refusing hire. Breakdown is set out at Annex II. Upon receipt of complaints, TD will conduct investigations and refer them to the law enforcement agency for follow-up depending on the nature of the cases. TD will also issue letters to the taxi owners or drivers concerned to request explanations, reminding them to comply with the legislation and pay attention to their service attitude, with a view to keeping up service quality.
 
(2) In accordance with the law, New Territories (NT) taxis have designated operating areas, which mainly cover the north-eastern NT (i.e. north of Sha Tin) and the north-western NT (i.e. north of Tsuen Wan), and their fares are lower than those of urban taxis. On the other hand, urban taxis can pick up passengers and take them anywhere (except Tung Chung Road and roads in South Lantau). 
(3) The Government has been upholding the public transport-oriented policy with railway as the backbone, complemented by well-networked mass transport modes (such as franchised buses and the Light Rail) to provide efficient services for the public. On the other hand, public light buses and taxis play a supplementary role, with the latter providing personalised point-to-point services, currently accounting for about 6 per cent of the overall public transport patronage.

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Vincent Cheng and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (October 14):

Question:      
     The TD will work with the water taxi operator to closely monitor its operation, and enhance water taxi services in response to passenger demand.

Source: Hong Kong Government special administrative region – 4

Following is a question by the Hon Chan Hok-fung and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (October 14):

Question:

Over the past three years, international oil prices have risen sharply, resulting in a surge in fuel costs for Hong Kong’s licensed ferry operators (operators). Given that outlying island ferries are the only means of external public transport for the majority of outlying island residents, there are concerns regarding the impact of oil price fluctuations on public ferry services. In this connection, will the Government inform this Council:

(1) of the changes in the average price of commercial diesel used by ferries in Hong Kong over the past three years;

(2) whether the authorities know the respective overall total fuel consumption and rates of increase in fuel expenditure for each public ferry operator (for both inner harbour and outlying island routes) over the past three years; and whether they have assessed the impact of soaring oil prices on the revenue and profit position of the various operators;

(3) of the details of the various subsidy schemes introduced by the authorities for operators over the past three years (including short-term diesel subsidies), as well as the amount of subsidy per litre of diesel available to each operator, the subsidy period and the coverage of the subsidy; whether the authorities have assessed if the subsidy amounts can offset the additional costs arising from the increase in oil prices;

(4) of the number of fare adjustments, the average rate of increase and the highest rate of increase for each public ferry route over the past three years; the details of the number of ferry trips reduced, routes suspended or reduced, and adjustments to service hours during the same period as a result of cost pressures (provide the above data in tabular form);

(5) whether the authorities have assessed the actual impact of the above measures of fare adjustment and ferry trip reduction on the commuting of outlying island residents, students travelling to school, elderly people seeking cross-district medical treatment, local tourism and commercial activities; and

(6) whether the authorities will introduce short to medium-term measures to support ferry services; if so, of the timetable and details?

Reply:

President,

The Government has been paying close attention to the impact of the rising international oil prices on Hong Kong’s transport and freight industries. In the light of the sharp rise in international oil prices since March this year, the Transport and Logistics Bureau and Transport Department (TD) have been maintaining close liaison with various public transport operators (including ferry operators) to understand their operating situation. Having consulted the Environment and Ecology Bureau, the reply to Member’s question is as follows:

(1) and (2) Generally speaking, local retail fuel prices are determined by oil companies having regard to market principles, and depend on a host of factors, such as the procurement costs, transportation and storage costs, operating costs, land premium and tax. Most ferry operators generally procure diesel from oil companies/diesel distributors through contracts, and do not follow the prices displayed at petrol filling stations. At present, international crude oil prices remain volatile. The price of commercial diesel used by ferries surged starting from March this year. Despite a subsequent decline in the middle of the year, it has climbed back to a high level in recent months.

According to the information provided by ferry operators, during the period from 2024 to August 2026, the fuel consumption of the various operators remained largely stable. The average monthly fuel consumption and fuel costs per litre were as follows:
 

Year	2024	2025	2026 (as at August)
Average monthly fuel consumption (million litre)	3.2	3.2	3.3
Average fuel cost per litre	$6.4	$5.2	$7.6

Fuel expenditure is one of the major cost items of ferry operations. In particular for outlying island ferry routes with longer journeys, fuel expenses generally account for about 30 per cent to 40 per cent of their total operating expenses. The sharp rise in fuel prices has increased the overall operating costs of ferry services, placing operational pressure on operators.

The TD will continue to maintain close communication with various operators and monitor their operational and financial situations, with particular attention to the potential pressure that oil prices may have on the operators’ financial situation.

(3) In view of the outbreak of the conflict in the Middle East region, the Government implemented a two-month Diesel Subsidy Scheme (the Scheme) on April 30, 2026, under which various public ferry operators were eligible for a subsidy of $3 per litre of diesel. Based on their actual fuel consumption, the subsidy amounts received by individual ferry operators under the Scheme ranged from approximately tens of thousands to several million dollars, alleviating some of the operational pressure arising from fluctuations in diesel prices.

(4) Details of the fare adjustments made by various ferry operators and their service adjustments implemented due to cost considerations during the period from 2024 to August 2026 are set out in Annex. Generally speaking, operators will review service levels having regard to factors such as the actual operational needs of individual routes, passenger demand, and cost savings, with a view to making optimal use of ferry resources.

(5) The Government attaches great importance on the role of ferry services in meeting the day-to-day commuting needs of outlying island residents and supporting local economic activities. Overall speaking, when considering operators’ applications for fare adjustments, the TD will carefully consider various factors in accordance with the established mechanism, including public acceptability, as well as the financial position, service performance, operating data and long-term financial sustainability. of the operators. When considering applications for service adjustments, the TD will examine whether the proposed service adjustments align with changes in the transport demands in the district and holistically consider the operator’s operating conditions, including whether the proposed adjustments would help the operator make better use of resources and enhance overall operational efficiency while safeguarding its financial sustainability, with a view to ensuring that the service remains stable.

The aforementioned fare and service adjustments were made following careful consideration by the TD, with a view to striking a balance between the financial sustainability of ferry services and the travel needs of the public, thereby minimising the impact on residents as far as practicable. Taking the fare adjustments implemented on the six major outlying island ferry routes in April 2026 as an example, after assessing the applications, the TD substantially reduced the fare increase rate from the 15 to 30 per cent as applied by ferry operators to 8 per cent for multi-journey tickets and 12.5 per cent for single-journey tickets, and required the operators to introduce more diverse multi-journey ticket arrangements to alleviate the fare burden on the outlying island residents. Based on the TD’s observations, the fare and service adjustments concerned could still address the travel needs of the residents in general.

(6) The Government has all along encouraged ferry operators to maintain their long-term financial stability by a multipronged approach of concurrently enhancing farebox and non-farebox revenue. Meanwhile, the Government continues to alleviate the operating costs of ferry operators through different ongoing measures, such as providing Special Helping Measures to outlying island ferry routes to reimburse operators with certain operating expenses on an accountable basis, as well as reimbursing pier rentals and exempting vessel licence fees for eligible operators including those operating in-harbour routes. The Government also purchases new vessels for outlying island ferry routes under the Vessel Subsidy Scheme to enhance the quality of the fleet, operational efficiency and passenger experience. The TD established an inter-departmental task force in June 2026 to expedite the approval of ferry operators’ applications related to commercial activities and proposals to improve pier facilities, thereby facilitating the operators’ generation of non-farebox revenue, with a view to enhancing their financial sustainability. The TD will also maintain close communication with ferry operators to explore different measures that help enhance operational efficiency, facilitate operation, as well as increase revenue and reduce costs, so as to ensure the sustainable and stable operation of ferry services.

Furthermore, the Inter-departmental Task Force on Monitoring Fuel Supply led by the Financial Secretary will continue to dynamically assess the situation in the Middle East region, and fuel supply and prices, so as to ensure the stability of Hong Kong’s energy supply. Given the uncertainty of the future trend of oil prices, the Government will continue to closely monitor the development to ensure that the operation of public transport services (including ferry services) remains normal.

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Nixie Lam and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (October 14):

Question:

     It has been reported that, over the years, unlawful organisations have operated illegal gambling activities through online platforms and used concealed channels, such as stooge accounts, to handle gambling funds. In this connection, will the Government inform this Council:

(1) in the light of the distinctive nature of illegal online gambling, under which betting funds are transferred through online channels, of the measures the authorities have put in place to support financial institutions in introducing smart technology systems that can automatically detect and proactively intercept transactions relating to illegal betting, and issue risk alerts to members of the public in a timely manner;

(2) of the number of persons arrested in the past three years for money laundering activities involving the use of stooge accounts to handle money from illegal betting, and among such cases, the total number of those in which prosecutions were successful, with a breakdown by type of stooge account (e.g. bank accounts and electronic wallet accounts); and

(3) as it is learnt that criminal syndicates commonly disseminate information on illegal betting through social media, messaging applications and key opinion leaders, whether the authorities will, with reference to overseas experience, enact legislation requiring online platforms to discharge statutory duties to screen, remove and report information relating to illegal betting, and empowering law enforcement agencies to mandate platforms to remove unlawful content, ban offending accounts and block traffic, while at the same time formulating a penalty mechanism for platforms, with a view to combating the promotion of illegal gambling at source; if so, of the specific legislative approach and timetable; if not, the reasons for that?

Reply:

President,

     Illegal gambling is an indictable offence under the Gambling Ordinance (Cap. 148). Pursuant to the Organized and Serious Crimes Ordinance (Cap. 455) (OSCO), any person who knows or suspects that any property is connected with the proceeds of an indictable offence, including illegal gambling, is required to promptly file a suspicious transaction report (STR) with the Joint Financial Intelligence Unit (JFIU).

     Having consulted the Home and Youth Affairs Bureau, the Security Bureau, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), my reply to the three parts of the question is as follows:

(1) Under the existing regulatory framework, various regulated entities (including banks and stored value facility (SVF) licensees regulated by the HKMA, as well as licensed corporations and licensed virtual asset trading platforms regulated by the SFC) must establish effective and appropriate anti-money laundering and counter-financing of terrorism (AML/CFT) controls, covering customer due diligence, transaction monitoring, and suspicious transaction reporting.

     Regarding transaction monitoring, regulated entities are required to establish ongoing monitoring and transaction monitoring systems that are commensurate with the nature, size and risk profile of their businesses to promptly identify transactions inconsistent with a client’s background or financial profile. Depending on the level of risk identified, regulated entities should adopt appropriate measures, such as conducting stricter customer due diligence, verifying client instructions, restricting or suspending transactions, and refusing to execute transactions. In addition, after filing STRs, regulated entities have to co-operate with law enforcement agencies on their follow-up actions as appropriate, including restricting or suspending the operation of relevant accounts, and restraining or freezing relevant assets, in accordance with the directions of law enforcement agencies or court orders.

     The HKMA and the SFC have respectively issued detailed guidelines pursuant to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), setting out the AML/CFT controls that various regulated entities should implement to combat money laundering and terrorist financing (ML/TF) activities.

     To assist the industry in more promptly and accurately identifying and mitigating ML/TF risks, the HKMA and the SFC will continue to engage with the industry and promote the responsible use of technologies such as artificial intelligence. Specifically, the HKMA has organised various industry sharing sessions to encourage banks and SVF licensees to enhance their application of new and emerging financial technologies and assist them in applying artificial intelligence within their transaction monitoring systems, thereby enhancing their ability to detect illicit financial activities. Meanwhile, in November 2024, the SFC published the Report on the Adoption of Regtech for Anti-Money Laundering and Counter-Financing of Terrorism to share practical use cases and good practices adopted by licensed corporations in key AML (Anti-Money Laundering) processes such as customer due diligence, transaction monitoring, and management information reporting. The aim is to encourage and assist the industry in adopting Regtech (including artificial intelligence) more widely in a responsible manner according to the nature, scale and risk profile of their businesses, thereby enhancing the effectiveness of AML efforts.

     In respect of intelligence sharing, the HKMA and the SFC have maintained close co-operation with the Hong Kong Police Force (HKPF) and the industry to share intelligence in a timely manner, including the latest ML (Money Laundering) typologies and modus operandi, related fund flows, the use of stooge accounts, and red flag indicators of suspicious transactions, with a view to assisting regulated entities in promptly updating their transaction monitoring scenarios and risk-mitigating measures. In addition, the Fraud and Money Laundering Intelligence Taskforce, an intelligence-sharing platform comprising the HKPF, the HKMA, banks, and SVF licensees, has circulated multiple alerts to share emerging threats and the latest modus operandi regarding illegal gambling with the industry.

(2) Section 25 of the OSCO stipulates that a person commits an offence (i.e. ML) if they deal with any property that they know or have reasonable grounds to believe represents the proceeds of an indictable offense, including illegal gambling. Apart from using stooge accounts to launder money, selling or lending bank accounts to be used as stooge accounts may also constitute the aforementioned criminal offence. Over the past three years, statistics on the numbers of persons arrested, prosecuted and convicted for ML involving stooge accounts are set out in the Annex.

(3) As a matter of policy, the Government does not encourage gambling. To address the possible problems brought by gambling, the Government adopts a multi-pronged strategy including law enforcement against illegal gambling activities, public education on the harms of gambling addiction, provision of counselling and support services to people in need, and regulation over gambling activities through legislation. The HKPF has been closely monitoring the trend of illegal gambling crimes, conducting cyber patrols and gathering intelligence through different channels, and taking appropriate intelligence-led enforcement actions against these illegal activities. Besides, the HYAB established the Ping Wo Fund (PWF) in 2003 to finance both preventive and remedial measures to address gambling-related problems.

     To address problems arising from illegal online gambling, the PWF has accorded priority to providing funding support for initiatives relating to the prevention of online gambling activities since 2020. The PWF has been disseminating anti-gambling messages to the public through various channels, and will continue to remind the public that participating in illegal gambling (such as betting with an illegal bookmaker) is an offence under the Gambling Ordinance, regardless of whether it takes place online or offline, such as placing bets with an illegal bookmaker through a simple tap on mobile phone. Upon conviction, an offender is liable to a maximum penalty of a $50,000 fine and imprisonment for nine months. Furthermore, under the Gambling Ordinance, no person shall, whether online or offline, knowingly promote or facilitate bookmaking or betting with a bookmaker. Upon conviction, an offender is liable to a maximum penalty of a $5 million fine and imprisonment for seven years. Through various publicity and education programmes, we will continue to enhance public awareness, particularly among young people, on the harms of gambling addiction and the legal consequences of participating in illegal gambling, with a view to further strengthening public awareness of anti-gambling.

     Thank you, President.

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Elizabeth Quat and a reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (October 14):

Question:

     Computing power is the most crucial factor of production in the era of artificial intelligence. Regarding supporting the development of the intelligent computing industry, will the Government inform this Council:

(1) as it is learnt that the total supply of computing power in Hong Kong is currently insufficient, and that the utilisation rate of existing computing power facilities (including Cyberport’s Artificial Intelligence Supercomputing Centre) has long remained high with demand exceeding supply, resulting in an interim gap in the supply of computing power in Hong Kong before the Sandy Ridge Data Facility Cluster comes into operation, and the industry has further pointed out that even after the operation of the cluster, the computing power will still be insufficient to support development needs, of the short-, medium- and long-term measures to support the development of the industry;

(2) whether it will expedite the study on the development of a “computing power exchange” and the establishment of mechanisms for the certification, trading, settlement and pricing of computing power, so as to transform Hong Kong’s traditional financial strengths into advantages in resource allocation in the era of AI, as well as explore ways to leverage the collaboration model with other Mainland cities to open up a new channel for “tokens going global”; and

(3) as there are views that the existing planning has not fully taken into account the enormous demand for water and electricity required for developing the intelligent computing industry, whether the Government will study the construction of a “dedicated water and electricity supply corridor for the intelligent computing industry” from the Mainland to Hong Kong, and negotiate the addition of a “dedicated cooling water quota for the intelligent computing industry in the Northern Metropolis” under the existing Dongjiang water supply agreement?

Reply:

President:

     The First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) identifies AI as an important industry for the future development of Hong Kong. The Hong Kong Special Administrative Region Government will actively promote the development of computing infrastructure, fostering the healthy development of AI and the intelligent computing industry.

     In response to the question raised by the Hon Elizabeth Quat, upon consulting the Development Bureau, the Environment and Ecology Bureau and the Financial Services and the Treasury Bureau, our reply is as follows:

(1) Hong Kong’s overall computing power has reached 5 000 peta floating-point operations per second (PFLOPS), of which Cyberport’s Artificial Intelligence Supercomputing Centre (AISC) accounts for 3 000 PFLOPS. The current utilisation rate of the AISC has exceeded 90 per cent, reflecting strong market demand for AI computing services. The Government will proactively increase the supply of computing power and enhance resource utilisation through short, medium and long-term measures.

     In the short term, the Government will make good use of existing facilities and the Artificial Intelligence Subsidy Scheme (AISS) to support the research and development, model training and application needs of local research institutes, universities and enterprises. The Committee of the AISS will review arrangements for the allocation of computing power resources and their duration of use as appropriate, having regard to the actual needs of the subsidised projects and overall status of resource utilisation, with a view to enhancing its efficiency. Cyberport will also continue to review the service capacity of the AISC and future demand, and explore feasible options for increasing its computing power.

     In the medium term, the construction of the Sandy Ridge Data Facility Cluster has already commenced. The site will be developed into a regional data facility cluster of advanced data centres and related industries. It is expected to commence its first phase of operations in 2027 and become fully operational in or before 2032, when it will provide 180 000 PFLOPS of computing power, substantially increasing Hong Kong’s computing power.

     In the long term, the Government is preparing to commission a new consultancy study on computing power to analyse Hong Kong’s future demand. Guided by the core directions of “high efficiency computing power, stable electricity supply, low-carbon transition”, the study will optimise the operations of data centres and the layout of computing power in Hong Kong, providing a basis for planning the long-term development of Hong Kong’s intelligent computing industry.

(2) In the long run, the Government recognises that Hong Kong has the strengths and potential to support the development of activities such as computing power trading and the provision of token-based AI services to overseas markets. At present, however, the priority of Hong Kong is to strengthen its computing power infrastructure. From the perspective of financial markets, establishing a comprehensive product ecosystem, including relevant trading, settlement and price discovery mechanisms requires the foundation of a mature underlying market and a sound market ecosystem.  

     At this stage, the Government will focus on developing Hong Kong’s intelligent computing industry and supporting infrastructure to strengthen the computing power supply. We will also closely monitor the latest developments in the intelligent computing industry in the Chinese Mainland and overseas, maintain communication with the industry, and explore arrangements that can enhance the efficiency of computing power resource allocation and promote the development of AI and the intelligent computing industry.

     On regional collaboration, the Government will continue to leverage Hong Kong’s roles as a “super connector” and a “super value-adder” to strengthen co-operation with other cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in areas such as computing power resources and market development. We also welcome service providers, including operators of computing power facilities in the GBA, to provide services to Hong Kong enterprises in response to market demand.

     As regards cross-boundary AI and computing services, including the provision of token-based AI services to overseas markets, their development must take into account factors such as data flows, cybersecurity, personal data protection, and applicable laws and regulations. The Innovation, Technology and Industry Bureau is facilitating cross-boundary co-operation and AI innovation through the facilitation measure of the Standard Contract for the Cross-boundary Flow of Personal Information within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong), as well as efforts to promote the secure flow of Mainland scientific research data to the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, etc. The Government will work together with the industry and relevant stakeholders to actively explore co-operation models conducive to the long-term development of AI industry in Hong Kong, further enhancing Hong Kong’s competitiveness as an international hub for AI and intelligent computing services.

(3) In planning the development of the intelligent computing industry, the Government will review the supporting water and electricity infrastructure in parallel. The planned development of the industries with high water consumption in the Northern Metropolis (NM) is mainly concentrated in San Tin, Sandy Ridge and Hung Shui Kiu/Ha Tsuen. Having considered the latest development needs of the NM, including the planning information on the intelligent computing industry from the Digital Policy Office, the preliminary assessment of the Water Supplies Department (WSD) indicates that the area as a whole has sufficient supplies of fresh water and recycled water to complement its development.

     To address the water requirements of cooling systems during the operation of intelligent computing facilities, the Government will continue to encourage enterprises to adopt water-saving technologies and make good use of different water sources, including the appropriate allocation of fresh water and recycled water for cooling purposes. To provide a stable and economical water supply, the Government will consider factors such as projected water demand and the associated timetable, cost-effectiveness, the availability of fresh water in the vicinity, and the availability of effluent from tertiary sewage treatment for producing recycled water. The WSD will upgrade water supply infrastructure as appropriate to meet specific needs. There is no need to establish a dedicated water supply corridor or quota for the intelligent computing industry at this stage.

     On electricity supply, the two power companies are required under the Scheme of Control Agreements to provide, operate and maintain sufficient electricity-related facilities and supply electricity to meet demand. The CLP Power Hong Kong Limited has undertaken construction and planning work to meet the electricity demands of Hong Kong’s future development, which would be sufficient to support the overall development of the I&T industry (including data centres).