Government releases report of Task Force on Review of Government Procurement Regime and announces outcome of relevant disciplinary investigation

Source: Hong Kong Government special administrative region

     The Government released today (January 20) the report of the Task Force on Review of Government Procurement Regime (in Annex), as well as the disciplinary investigation regarding the incident in the procurement of bottled drinking water and relevant follow-up actions.
      
Report of Task Force
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     The Task Force report summarised the recommendations from the Task Force chaired by the Secretary for Financial Services and the Treasury (SFST), Mr Christopher Hui, upon a thorough review of the government procurement regime, and having made reference to the management letter submitted by the Audit Commission on its review of the tender exercise for the procurement of bottled drinking water. The measures focused on four broad directions, namely institutional change, reshaping work culture, enhancement in cross-departmental information exchange, and application of technologies and artificial intelligence, with a view to holistically refining the tendering and procurement regime and procedures.
      
     Following the six quick-win measures announced in October last year, the Task Force put forward various further enhancement measures. Starting from January 1 this year, a financial vetting requirement has been introduced to the tendering of goods contracts with a value exceeding $15 million, making it on par with the prevailing practice of conducting financial vetting for service contracts with a contract value exceeding $15 million. Having regard to the nature and scale of procurement as well as practical operational needs, procurement officers may also set the tenderer’s experience as an “essential requirement” in a more flexible manner, in order to ensure that tenderers are capable of fulfilling contractual obligations. The Treasury has also promulgated internal guidelines to assist officers responsible for conducting financial vetting to identify possible red flags of fraud, so that they will be more vigilant and take timely follow-up actions.
      
     Moreover, following the revisions to the Standard Terms and Conditions of Tenders and Contracts (STC) in October last year that specifically empower procurement officers to disqualify a tenderer if they consider the tenderer not capable of fulfilling the contract terms, and to terminate a contract immediately if they reasonably believe that a contractor has made a material misrepresentation during the contract period, the Government has further updated the STC to stipulate that the Government may terminate a contract immediately on public interest grounds.
      
     To progress with the times and leverage technology, the Government Logistics Department (GLD) will adopt an AI tool to assist in information search on tenderers and contractors on a pilot basis in the first quarter of this year. Subject to the outcome of the trial, the AI tool will be extended to other procuring departments for adoption, so as to enhance the Government’s overall operational efficiency in conducting due diligence checks.
      
     Mr Hui said, “We have long been acting in the interest of the public and handling the incident regarding the procurement of bottled drinking water with openness and transparency. Our commitment to enhance the government procurement regime is ongoing and will never stop. We will continue to refine the Government’s procurement work with a resolve to reform, so as to obtain goods and services at the best value for money and ensure prudent use of public money through effective procurement procedures that adapt to the needs of the modern business environment.”
      
Outcome of disciplinary investigation and relevant follow-up actions
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     In late October last year, the SFST invited Ms Alice Lau, Administrative Officer Staff Grade A1, to conduct a disciplinary investigation into the incident with a view to ascertaining if any officers should be held accountable for the incident and, if so, the nature and level of their responsibility, such as whether any officers had contravened government or departmental rules and regulations in the process, or failed to act or perform up to the standards commensurate with their ranks and experience.
      
     After reviewing relevant documents, the investigation team led by Ms Lau identified over 20 officers from the Financial Services and the Treasury Bureau, the GLD, and the Food and Environmental Hygiene Department and requested from them written statements. The investigation team also interviewed some of the officers concerned based on the contents of the statements.
      
     Following an in-depth and comprehensive collection and analysis of facts, the investigation team found that three GLD officers failed to perform up to the standards commensurate with their ranks and experience in the procurement of bottled drinking water exercise. They demonstrated a lack of vigilance and judgement, thus failing to identify obvious irregularities and seize the opportunity to follow up as appropriate and report to their seniors in a timely manner. This resulted in the department missing the chance to detect the false documents and take appropriate actions earlier.
      
     Based on the findings of the above investigation, there is prima facie evidence at this stage suggesting that two of the three GLD officers, including one directorate officer, had failed to appreciate the significance of obvious irregularities and report such irregularities to their seniors in a timely manner. The Government will initiate formal disciplinary proceedings against them and mete out punishment based on the findings of the disciplinary inquiry. Besides, the deficiencies in the work performance of the two officers will be reflected in their appraisals, and the Government will not grant an increment to the officers who have not reached the maximum salary point of their ranks.
      
     For the remaining GLD officer, the Government will reflect the officer’s inadequacy in vigilance, judgement, and analytical power in his/her appraisal report and will not grant an increment to him/her. Written advice will also be served, requiring the officer to demonstrate significant improvement in the above competencies in the future.
      
     Having found that there were officers who failed to report the irregularities to their seniors, the investigation team did not find any act of negligence on the part of the former Director of Government Logistics in the incident. However, the fact that all of the three aforementioned GLD officers at different ranks did not perform up to the standards commensurate with their ranks and experience in the incident reflects some prevalence of such substandard performance in the GLD. The report of the Task Force also revealed that there was room for improvement in the GLD’s procurement work, with the need to heighten officers’ guard against government loss and to put in place a more proactive and prudent procurement process. In this regard, the SFST has written to the former Director of Government Logistics, pointing out that more should have been done during his tenure as the Head of Department to enhance staff’s capabilities and develop their sensitivity and proactiveness. 
      
     The incident has drawn extensive attention from the public and brought serious disrepute to the Government. In this light, after consulting the Honours and Non-official Justices of the Peace Selection Committee, the Government has decided to reverse the previously announced decision to award the Silver Bauhinia Star to Mr Carlson Chan, and he has been informed.

Semi-urgent and non-urgent cases drop significantly by 20 per cent; Accident and Emergency Departments focus resources on critical and emergency care

Source: Hong Kong Government special administrative region

Semi-urgent and non-urgent cases drop significantly by 20 per cent; Accident and Emergency Departments focus resources on critical and emergency care 
     From January 1 to 18, 85 676 patients attended the 18 A&Es under the HA, representing a significant decrease of nearly 15 per cent compared to the same period last year. Among the cases, 4 889 patients were triaged as critical and emergency cases, showing an increase of 7.7 per cent compared to the same period last year. Thirty-eight thousand one hundred fifty-five patients were classified as urgent cases, representing a decrease of 8.4 per cent year on year. The remaining 42 632 patients were classified as semi-urgent and non-urgent cases, marking a substantial decrease of 21.3 per cent compared to the same period last year. The latest A&E statistics are analysed as follows:
      The Chairman of the HA Coordinating Committee in A&E, Dr Axel Siu, said, “The latest statistics of A&Es, including attendance numbers, semi-urgent and non-urgent cases, and treatment efficiency for urgent patients, all indicate that resources of A&Es are now better directed towards critical and emergency patients. Non-urgent patients or patients with other medical needs are changing to seek more appropriate healthcare services other than A&Es, achieving the original intention of the public healthcare fees and charges reform. A&Es can better concentrate resources and treat patients with urgent medical needs more effectively. We are very pleased to see that the reform has successfully achieved its positive and intended outcomes.”

     Dr Siu reiterated that A&E is positioned to serve critical, emergency and urgent patients. Individuals with minor conditions or episodic illnesses, such as common colds, are encouraged to visit Family Medicine Clinics, private doctors, or 24-hour outpatient services of private hospitals. Following the implementation of the public healthcare fees and charges reform, the HA has regularised the A&E refund arrangements, which can facilitate less urgent patients in opting to other healthcare institutions after triage. From January 1 to 18 this year, a total of 952 A&E patients applied for refund.Issued at HKT 17:42

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Development Bureau invites market to submit expressions of interest for student hostel development on three formed sites

Source: Hong Kong Government special administrative region

Development Bureau invites market to submit expressions of interest for student hostel development on three formed sites           
     In July 2025, the DEVB and the Education Bureau (EDB) jointly launched the Hostels in the City Scheme. By relaxing some development controls, it has facilitated private developers/operators in converting commercial buildings into student hostels to meet the needs of post-secondary students. Subsequently, it was announced in the 2025 Policy Address that the Scheme would be expanded to also cover new hostel developments.
      
     The Scheme has been met with an encouraging response, with 24 applications received involving around 5 000 beds in total, most of which were in urban areas. Apart from two applications that concern new student hostel development on private land, all applications were for the conversion of existing buildings, the majority of which involved wholesale conversion. Out of the 24 applications received, 22 have been confirmed to have complied with the eligibility criteria (Note) as laid down under the Scheme, with the remaining two under processing. Proponents of these 22 cases are starting to apply for development approvals under relaxed development controls, while the relevant government departments are processing at full steam the planning applications (Note: 18 out of 22 cases do not require a planning application) and the building plans received.
      
     A DEVB spokesman said, “The 2025 Policy Address has recommended that suitable sites for student hostel development be put up through land sale, besides facilitating the market in converting existing commercial buildings and building hostels on existing private land. This would be the first time for us to use land disposal in the open market to encourage the development of student hostels.”
      
     All three sites included in this EOI exercise are located in urban or extended urban areas with better traffic accessibility and more mature community and commercial facilities in the vicinity. These sites are zoned “Commercial” on the respective Outline Zoning Plans, meaning developing student hostels according to the Scheme would not require further planning applications. The relevant land has already been formed with basic infrastructure. 
      
     The spokesman said, “The three sites are all readily developable land where zoning and development parameters are suitable for student hostel developments. Those who are awarded the sites through tender could promptly develop these sites into student hostels and help respond to the demand for post-secondary hostel accommodation. Subject to the response received from this EOI exercise, the Government can make available one or more of the three sites supporting student hostel development for land sale through open tender in 2026-27 at the earliest.
      
     In order to properly serve the policy objective of promoting the development of an education hub through increasing the supply of quality hostel places, the DEVB is initially planning to restrict under the lease the use of the sites to student hostels only and impose a restriction against alienation of individual rooms, meaning alienation is only allowed for the entire development as a whole, so as to ensure the hostel facilities on each of the sites are cohesively owned and operated. The Building Covenant period is now proposed to be 48 months. Respondents to the EOI exercise are invited to indicate their interest in bidding for one or more of the sites, share their preliminary plans for the hostel operation, and provide views on the land disposal arrangements including the above proposed alienation restriction and the Building Covenant period. The Government’s preliminary estimate is that around 4 500 beds can be provided in total on the three sites, but the actual bed numbers will depend on the design of the project proponents. Development parameters of the three sites are summarised in Annex A to the invitation document of this EOI exercise. Some salient features of the sites are highlighted as follows:
      
Site in Kai Tak
      
     The site in Kai Tak is located at the former South Apron area of the Kai Tak Development Area, near the Kai Tak Sports Park and adjacent to the New Acute Hospital that is expected to commence operation this year. Nearby MTR stations include Kai Tak Station and Kowloon Bay Station. Its site area is around 0.74 hectares (ha) and is subject to a maximum plot ratio (PR) of 5.8, a building height restriction (BHR) of 80mPD, a maximum site coverage of 65 per cent, and a maximum gross floor area (GFA) of around 43 000 square metres (sq m).
      
Site in Siu Lek Yuen, Shatin
      
     The immediate area of the site in Siu Lek Yuen is intermixed with commercial, residential, and other uses and is in proximity to the MTR City One Station and Shek Mun Station. Of around 0.11 ha, the site is subject to a maximum PR of 9.5, a BHR of 120mPD, and a maximum GFA of around 10 000 sq m.   
      
Site in Tung Chung East
      
     The site in Tung Chung New Town Extension is located close to the MTR Tung Chung East Station that is expected to commence operation in 2029. Its site area is around 0.25 ha and is subject to a maximum PR of 9, a BHR of 160mPD, and a maximum GFA of around 23 000 sq m.
      
     The invitation documents for EOI have been uploaded onto the DEVB’s website (www.devb.gov.hk/en/issues_in_focus/planning-lands/invitation-for-expression-of-interest-for-student/index.htmlIssued at HKT 15:15

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Independent Committee in relation to fire at Wang Fuk Court in Tai Po to hold direction conference on February 5

Source: Hong Kong Government special administrative region

The following is issued on behalf of the Independent Committee in relation to the fire at Wang Fuk Court in Tai Po:
 
     The Independent Committee in relation to the fire at Wang Fuk Court in Tai Po announced today (January 20) that it will hold a direction conference on February 5 (Thursday) to give directions on the arrangements for subsequent hearings to be conducted by the Committee.
      
     At the direction conference, the Chairman of the Committee, Mr Justice David Lok, will give directions on the subsequent hearings, including identifying individuals or organisations, or their legal representatives, who intend to attend the hearings; the language to be used, the manner of submission of witness statements and documents, etc; and will consider other matters relating to the hearings. There will not be any presentation of evidence or examination of witnesses at the direction conference.
      
     The direction conference will be held at 10am on February 5 in Cantonese at the Multi-purpose Room, 3/F, City Gallery, 3 Edinburgh Place, Central. Simultaneous interpretation in Putonghua and English will be arranged in the City Gallery.
      
     The direction conference will be open to the public. To allow more members of the public to observe the conduct of the conference, the proceedings will be broadcast simultaneously in transmission areas set up on the ground floor of the City Gallery and in the Lecture Theatre of the Hong Kong Central Library. Some members of the public will be arranged to observe the conference in these two areas. A total of about 400 seats will be available for the public, with separate arrangements for the media.
      
     To avoid members of the public queuing up outside the venue for a long time, and to allow those who wish to observe the conference to have certainty of whether seats have been secured before the day of the conference, interested individuals are required to make an online reservation through the submission of a pre-registration form in advance. The Secretariat of the Committee will allocate seats on a first-come, first-served basis according to the system’s record of the time that the pre-registration forms are received. Details of the online reservations will be announced separately.
      
     In addition, the scope of the Committee’s work is extensive, and the issues are numerous and complex. In order to review the incident and related issues more comprehensively and from different perspectives, the Committee will invite members of the public and organisations to provide information on the causes and circumstances that led to the fire and its rapid spread at Wang Fuk Court in Tai Po, and related issues. Details of the method, timing, and scope of submission of information will be announced separately.
      
     The Chief Executive has established the Committee to review the causes of the incident and related issues of Wang Fuk Court fire in Tai Po, and to make recommendations to prevent similar incidents from occurring again. The Committee formally commenced its work on December 19, 2025.

Man sentenced to six months’ imprisonment for illegally importing alternative smoking products

Source: Hong Kong Government special administrative region

     A man was sentenced today (January 20) at the West Kowloon Magistrates’ Courts to six months’ imprisonment for illegally importing 40 000 alternative smoking products. The Department of Health (DH) welcomed the verdict, stating that imprisonment serves as a significant deterrent. The DH also reminded members of the public and visitors not to bring alternative smoking products such as e-cigarettes, heated tobacco products or herbal cigarettes into Hong Kong, and not to use any alternative smoking products.
      
     The Tobacco and Alcohol Control Office (TACO) of the DH was notified by Hong Kong Customs yesterday (January 19) that 40 000 alternative smoking products were intercepted in the luggage of the aforesaid man arriving from Guangzhou. TACO immediately arrested and prosecuted the individual.
      
     Since the amendments to the Tobacco Control Legislation (Amendment) Ordinance 2025, which conferred arrest powers on TACO inspectors, took effect on September 19, 2025, TACO has prosecuted 15 cases involving importation of large quantities of alternative smoking products. Seventeen persons have been convicted and sentenced to imprisonment ranging from two to six months.
      
     According to the Import and Export Ordinance (Cap. 60), a person who imports alternative smoking products, including electronic smoking products, heated tobacco products and herbal cigarettes, commits an offence and is liable on summary conviction to a fine of $500,000 and imprisonment for two years; or liable on conviction on indictment to a fine of $2 million and imprisonment for seven years.
      
     Moreover, under the Smoking (Public Health) Ordinance (Cap. 371), no person may promote, manufacture, sell, or possess for commercial purposes alternative smoking products. An offender is liable to a fine of $50,000 and imprisonment for six months.
      
     TACO will continue to closely monitor and enforce the law to combat related offences.
      
     The DH also cautions the public that alternative smoking products are addictive and are not effective smoking cessation tools. E-cigarettes may increase the risk of cancer, respiratory diseases, and cardiovascular diseases. Smokers are urged to quit smoking as early as possible for their own health and that of others. For assistance, please call the DH’s Integrated Smoking Cessation Hotline on 1833 183, and or visit www.livetobaccofree.hk for information on quitting. 

Interest in hostel sites sought

Source: Hong Kong Information Services

The Development Bureau today invited the market to submit expressions of interest (EOI) within two months for post-secondary student hostel development at three commercial sites in Kai Tak, Siu Lek Yuen (Shatin) and Tung Chung East.

In July 2025, the Development Bureau and the Education Bureau jointly launched the Hostels in the City Scheme. By relaxing some development controls, it has facilitated private developers/operators in converting commercial buildings into student hostels to meet the needs of post-secondary students.

Subsequently, it was announced in the 2025 Policy Address that the scheme would be expanded to also cover new hostel developments.

The scheme has been met with an encouraging response, with 24 applications received involving around 5,000 beds in total, most of which were in urban areas.

Apart from two applications that concern new student hostel development on private land, all applications were for the conversion of existing buildings, the majority of which involved wholesale conversion.

Out of the 24 applications received, 22 have been confirmed to have complied with the eligibility criteria as laid down under the scheme, with the remaining two under processing.

Proponents of these 22 cases are starting to apply for development approvals under relaxed development controls, while the relevant government departments are processing at full steam the planning applications and the building plans received.

The Development Bureau said that the 2025 Policy Address has recommended that suitable sites for student hostel development be put up through land sale, besides facilitating the market in converting existing commercial buildings and building hostels on existing private land. This would be the first time for the bureau to use land disposal in the open market to encourage the development of student hostels.

All three sites included in this EOI exercise are located in urban or extended urban areas with better traffic accessibility and more mature community and commercial facilities in the vicinity. These sites are zoned commercial on the respective outline zoning plans, meaning developing student hostels according to the scheme would not require further planning applications. The relevant land has already been formed with basic infrastructure.

The Development Bureau said that the three sites are all readily developable land where zoning and development parameters are suitable for student hostel developments. Those who are awarded the sites through tender could promptly develop these sites into student hostels and help respond to the demand for post-secondary hostel accommodation.

Subject to the response received from this EOI exercise, the Government can make available one or more of the three sites supporting student hostel development for land sale through open tender in 2026-27 at the earliest.

The Government’s preliminary estimate is that around 4,500 beds can be provided in total on the three sites, but the actual bed numbers will depend on the design of the project proponents.

The invitation documents for EOI have been uploaded onto the Development Bureau’s website. Interested parties should submit a soft copy of their EOI by midnight on March 20.

Tai Po committee conference date set

Source: Hong Kong Information Services

The independent committee set up in relation to the fire at Wang Fuk Court in Tai Po announced today that it will hold a conference on February 5 to give directions on arrangements for subsequent hearings.

At the conference, committee chairman David Lok will give directions on identifying relevant individuals, organisations or legal representatives to attend the hearings; the language to be used; the mode of submission of witness statements, documents, etc; and more.

There will be no presenting of evidence or examination of witnesses at the conference, which will be held from 10am on February 5 in Cantonese at the Multi-purpose Room, 3/F, City Gallery, 3 Edinburgh Place, Central. Simultaneous interpretation into Putonghua and English will be arranged.

The proceedings will be broadcast live in transmission areas set up on the ground floor of the City Gallery and in the Lecture Theatre of the Hong Kong Central Library.

A total of about 400 seats will be available for the public. Interested individuals are required to make an online reservation in advance through the submission of a pre-registration form. Seats will be allocated on a first-come, first-served basis. Details of the online reservations will be announced separately.

Jobless rate steady at 3.8%

Source: Hong Kong Information Services

The seasonally adjusted unemployment rate stood at 3.8% in the October to December period of 2025, unchanged from the figures for September to November of the same year, the Census & Statistics Department announced today.

The underemployment rate rose from 1.6% to 1.7% during the same period.

Total employment was 3,667,000, down around 2,900 from September to November, while the labour force declined by around 9,100 to 3,805,200.

Looking ahead, Secretary for Labour & Welfare Chris Sun said the continued growth of the Hong Kong economy and the improvement in local consumption sentiment should stabilise the labour market.

“Nonetheless, the employment situations in some sectors may continue to be affected by their challenging business conditions,” he added.

Procurement review report published

Source: Hong Kong Information Services

The Government today released the report of the Task Force on Review of Government Procurement Regime as well as the disciplinary investigation regarding the incident in the procurement of bottled drinking water and follow-up actions.

The report on the government procurement regime summarised measures focusing on four directions – institutional change, reshaping work culture, enhancement in cross-departmental information exchange, and application of technologies and artificial intelligence (AI), so as to holistically refine the tendering and procurement procedures.

A financial vetting requirement has been introduced to the tendering of goods contracts with a value exceeding $15 million since January 1, making it on par with the prevailing practice of conducting financial vetting for service contracts with that value.

Additionally, following revisions to the Standard Terms & Conditions of Tenders & Contracts (STC) that empower procurement officers to disqualify a tenderer for not being capable of fulfilling the contract terms, and to terminate a contract immediately if a contractor has made a material misrepresentation during the contract period, the STC has been further updated to stipulate that the Government may terminate a contract immediately on public interest grounds.

On the technology front, the Government Logistics Department (GLD) will adopt an AI tool to assist in information search on tenderers and contractors on a pilot basis in the first quarter this year, and the AI tool will be extended to other procuring departments for adoption subject to the trial outcome.

Secretary for Financial Services & the Treasury Christopher Hui, who chaired the task force, said the measures have been under implementation, adding that they will be put into practice continuously.

Meanwhile, the disciplinary investigation in relation to the bottled drinking water procurement incident has revealed that the performance of three GLD officers was not up to the standards commensurate with their ranks and experience in the procurement exercise.

According to the investigation, the lack of vigilance and judgement of these officers led to their failure to identify obvious irregularities and report to their seniors in a timely manner, resulting in the department missing the chance to detect false documents and take appropriate action earlier.  

There is prima facie evidence that two of the three officers, including one directorate officer, failed to appreciate the significance of obvious irregularities and report to their seniors in a timely manner. The Government will initiate disciplinary proceedings against them with punishment to be meted out, based on the findings of the disciplinary inquiry.

The deficiencies in the work performance of the two officers will also be reflected in their appraisals and no increment will be granted to the officers who have yet not reached the maximum salary point of their ranks.

The Government will reflect the inadequacy in vigilance, judgement, and analytical power of the remaining GLD officer in the appraisal report and will not grant that officer an increment. Written advice will also be served, requiring the officer to demonstrate significant improvement in these competencies in the future. 

Having identified the officers who failed to report the irregularities to their seniors, the investigation did not find any act of negligence on the part of former Director of Government Logistics Carlson Chan in the incident.

However, the fact that these three GLD officers failed to perform up to the standards commensurate with their ranks reflects some prevalence of such substandard performance in the department, therefore the Government decided to reverse the earlier decision to award Mr Chan the Silver Bauhinia Star.

Noting that the incident has drawn extensive attention from the public and brought serious disrepute to the Government, Secretary for the Civil Service Ingrid Yeung said the reversal decision was made after consulting the Honours & Non-official Justices of the Peace Selection Committee.

eHealth record function upgraded

Source: Hong Kong Information Services

The Health Bureau announced today that from January 27 Hong Kong residents can authorise designated medical institutions outside of Hong Kong to deposit radiology reports and images into their personal eHealth accounts via the “Personal Folder” function in the eHealth mobile application.

The new function will allow residents to store and utilise records from healthcare services received outside of Hong Kong more securely and conveniently, thereby facilitating greater continuity of care.

From January 27, residents can submit an authorisation application via the “Personal Folder” function before receiving radiology services at either of three designated medical institutions outside of Hong Kong, namely the University of Hong Kong-Shenzhen Hospital, Shenzhen New Frontier United Family Hospital and Zhongshan Chen Xinghai Hospital of Integrated Traditional Chinese and Western Medicine.

They will then receive an Authorisation QR Code in the mobile application. Before receiving care at any of the designated institutions, they can present the QR code along with their Hong Kong identity card to local healthcare personnel for identity verification and authorisation.

The medical institution will subsequently assist users to directly deposit radiology reports and images from their consultations into their personal eHealth accounts.

Moreover, eHealth users can apply for the service on behalf of family members using the “Caregiver” function in the mobile application.

This upgraded function supports the deposit of high-resolution radiology images, which can be challenging for some users to upload themselves.

In addition to viewing the relevant records through the mobile application, residents can also authorise healthcare providers in Hong Kong to access them through the eHealth system during follow-up care.

The bureau has set up support stations at the three designated institutions outside of Hong Kong to assist Hong Kong residents in registering for eHealth, downloading the eHealth App and using the relevant function.

Users can also view tutorial videos on the eHealth App, or on eHealth’s thematic website or social media platforms, to learn about using the new function.

Call 3467 6300 for enquiries.