LCQ16: Development of harbourfront promenades in Kowloon

Source: Hong Kong Government special administrative region

LCQ16: Development of harbourfront promenades in Kowloon 
Question:
 
     The Secretary for Development noted in her blog last month that following the completion of the approximately 13-kilometre-long harbourfront walkway on Hong Kong Island, the focus of harbourfront development would extend to Kowloon, with the target of extending the total length of the harbourfront promenades on both sides of Victoria Harbour to 34 kilometres by or before 2028. In this connection, will the Government inform this Council:
 
(1) given that the Government has incorporated the gas offtake station off Grand Waterfront, the vicinity of the Fishtail Rock in Hoi Sham Park, and the private section of the Green Island Cement Pier into the Study on East Kowloon Harbourfront Trail to examine further connecting the relevant harbourfront sections, of the latest progress of the study on improving the accessibility of the aforesaid three harbourfront sites and the timetables for the relevant works projects;
 
(2) given that the section of harbourfront promenade at Kai Tak Metro Park (including the portion connecting to the Kai Tak Sports Park) has been opened, while other sections (including the portion connecting to the Cruise Terminal) have not yet been completed, of the implementation timetables and roadmaps for the relevant works projects;
 
(3) given that the Urban Renewal Authority (URA) has earlier launched the To Kwa Wan Harbourfront Study to examine and plan, from a macro perspective, the connectivity and accessibility between the inland areas and the harbourfront spaces of To Kwa Wan, whether the Government will study ways to optimise harbourfront spaces and enhance road connections between the MTR To Kwa Wan Station and the MTR Sung Wong Toi Station jointly with URA, so as to improve the accessibility of harbourfront promenades; if so, of the details; if not, the reasons for that;
 
(4) whether it will study the relocation of berthing spaces for barges in the To Kwa Wan Typhoon Shelter to vacate space for use as a water activity centre, thereby promoting harbourfront development; if so, of the details; if not, the reasons for that; and
 
(5) whether it will study a tourism development strategy with shopping, sightseeing and leisure entertainment as the theme to connect the harbourfront promenades from the Kai Tak Cruise Terminal to Cheung Sha Wan, so as to create a distinctive harbourfront tourist hotspot; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The Development Bureau has been working closely with the Harbourfront Commission to promote various initiatives to enhance the Victoria Harbourfront, with a view to creating a diversified, vibrant, accessible and inclusive harbourfront space for the public. The total length of the harbourfront promenades in Kowloon will reach approximately 15 kilometres upon completion of the following projects this year: the pedestrian walkway connecting the West Kowloon Cultural District (WKCD) to Tai Kok Tsui, the waterfront promenade next to the Kai Tak New Acute Hospital and the event space and public open space at the former Hung Hom Railway Freight Yard Pier site, and the length will be further increased to approximately 16 kilometres by 2028. With the approximately 18 kilometres of harbourfront promenades already opened on Hong Kong Island as well as in Tsuen Wan and Kwai Tsing in the New Territories, the total length of promenades on both sides of Victoria Harbour will be extended to approximately 34 kilometres by 2028. We will leverage the streamlined mechanism under the amended Protection of the Harbour Ordinance as appropriate for continuous enhancements to waterfront facilities, including the harbourfront promenades in Kowloon.
      
     In consultation with the Transport and Logistics Bureau (TLB) and the Culture, Sports and Tourism Bureau (CSTB), the reply to various parts of the question is as follows:
 
(1) To further connect and enhance the East Kowloon harbourfront, we will commence the Study on East Kowloon Harbourfront Trail (the Study) next month, exploring options to enhance the accessibility and facilities for waterfront sections that have not been connected yet, including the three locations mentioned in the question. We target to consult stakeholders on the relevant proposals in 2027. The directions of the Study for the aforementioned three locations are as follows:
 
(i) For the waterfront in the vicinity of the Fishtail Rock in Hoi Sham Park: We consider that being one of the only remaining natural shorelines along Victoria Harbour, the waterfront section of Fishtail Rock should be retained and there are no plans for reclamation at this stage. Currently, there is a pedestrian connection behind the Fishtail Rock connecting to the promenade of the Hoi Sham Park Extension. We will continue to explore with the Leisure and Cultural Services Department concrete proposals for enhancing the existing pedestrian connection, such as installing wayfinding signages etc., with a view to further improving the walking environment of the waterfront in the vicinity of the Fishtail Rock.
 
(ii) For the waterfront gas facility site off Grand Waterfront in To Kwa Wan: Currently, the gas offtake station and the jetty for transfer of naphtha, the raw material for the production of gas, are still in operation. The Study will consider viable pedestrian connection options whilst minimising the impact on the gas facility. During the process, we will consult the landowner and ensure that the relevant arrangements comply with the quantitative risk assessment recently completed by the Civil Engineering and Development Department on different pedestrian connection options.
 
(iii) For the waterfront area near the Green Island Cement Pier in Hung Hom: Connecting the concerned waterfront area is more complex due to the fact that the industrial buildings in the lots therein are under multiple ownership with various owners, and certain parts of these lots have access to the sea according to the relevant leases. The Study will consider various non-reclamation options, including first improving the walking environment of the existing inland pedestrian walkway, as well as exploring the feasibility of developing the pier site for purposes consistent with harbourfront development. Should the non-reclamation options be proven not feasible in the end, we will study the possibility of a boardwalk with small-scale reclamation, and ensure that the design will accommodate the rights of relevant owners to access the sea as appropriate.
 
(2) The total length of the developable harbourfront promenades along the former runway area of Kai Tak is 4.7 kilometres, of which 4.1 kilometres (including the section connecting to the Kai Tak Sports Park) have been connected and opened to the public. The remaining 0.6 kilometres of the harbourfront promenade will be handed over to the future franchise company of the Smart and Green Mass Transit System in Kai Tak which will undertake its construction concurrently with the development of the site.
 
(3) One of the study directions of the To Kwa Wan Harbourfront Study conducted by the URA (the URA Study) is to strengthen the connection between the inland area and the harbourfront. The URA Study explores the benefits arising from the improvement of the environment of old district and the road network through urban renewal projects, and formulates three major road networks to channel pedestrian circulation and vibrancy towards the harbourfront, which include enhancing the road connectivity between the harbourfront and MTR To Kwa Wan and Sung Wong Toi Stations:
 
(i) For connection between the “Lung Shing” area and the Kai Tak Development Area (KTDA): The URA Study proposes connecting the URA’s Kai Tak Road/Sa Po Road Development Scheme and the Nga Tsin Wai Road/Carpenter Road Development Scheme to the underground shopping area in the KTDA and MTR Sung Wong Toi Station via the Government subway. Upon completion of the projects concerned, it is expected that this will bring an enhanced and accessible walking environment to the public, such that the “Lung Shing” area can directly link to the KTDA, the Kai Tak Metro Park at the northern end of the former Kai Tak runway, and the adjacent harbourfront, thereby connecting the inland areas with the waterfront and the water bodies.
 
(ii) For recreational and waterfront spaces centred around “District-based Redevelopment New Community” (New Community): The URA Study proposes that the improved walking environment, the newly added pedestrian streets, and the footbridge connecting to MTR To Kwa Wan Station, etc. within the URA’s first New Community project in To Kwa Wan (comprising eight connected urban renewal projects along Bailey Street, Wing Kwong Street and Ngan Hon Street) should be utilised to connect the Kau Pui Lung Road/Chi Kiang Street Development Scheme at the north of the New Community with Hoi Sham Park via MTR To Kwa Wan Station and the footbridge as well as the pedestrian street within the New Community. This will strengthen the connection between public open space in the district, as well as the inland green belts and the waterfront.
 
(iii) For connecting the Civil Servants’ Co-operative Building Society and the “Five Streets” Project: At present, URA’s Shing Tak Street/Ma Tau Chung Road Civil Servants’ Co-operative Building Society Redevelopment Project, Ming Lun Street/Ma Tau Kok Road Development Scheme, and To Kwa Wan Road/Ma Tau Kok Road Development Scheme (i.e. the “Five Streets” Project) are located at the two ends of Ma Tau Kok Road respectively. To strengthen the access to the harbourfront, the URA Study explores revitalising and beautifying the streetscapes along Ma Tau Kok Road to improve the overall walking environment. It also proposes that a diversified at-grade harbourfront plaza of no less than 25 metres wide should be provided between the residential and commercial buildings planned within the projects, facilitating direct access for the public to walk from To Kwa Wan Road to the waterfront.
 
(4) The TLB indicates that the To Kwa Wan Typhoon Shelter (TKWTS) is one of the two statutory typhoon shelters in the eastern waters of Victoria Harbour that allow the entry of local vessels (including working vessels and pleasure vessels) not exceeding 50 metres long. Under the current legislation, with a few exceptions (for example, if a vessel carries dangerous goods or has exceeded the permitted length of typhoon shelters), all local vessels may enter and remain in any typhoon shelters at any time. Typhoon shelters serve as sheltering facilities for local vessels to take refuge during typhoons and inclement weather. According to the records of the Marine Department, the highest occupancy of the TKWTS reached 100 per cent during the passage of Typhoon Ragasa last year.
 
     The TKWTS is located at the centre of Hong Kong waters and near the urban area, making it very convenient for working vessels at berth to support the marine works and major events at sea in different districts. As Hong Kong will have ongoing marine works such as the expansion of the Aberdeen Typhoon Shelter and major events at sea in the future, the TKWTS and the working vessels at berth therein play an indispensable role in supporting marine works and operations, as well as transporting large modular components and bulk items.
      
     Regarding the proposal to relocate the barge berths at the TKWTS, in view of the current usage of the typhoon shelter, if the vessel berths at the TKWTS were to be relocated, a suitable site would first have to be identified for providing new berths. This is to ensure that sufficient sheltered berthing spaces are provided within Hong Kong waters for the safety of local vessels during inclement weather and to prevent disruption to efficient port operations.
 
(5) The CSTB states that it will continue to make better use of the harbourfront promenades and water bodies to create more mega events and tourism experiences, such as the “Water Parade” and “Merry Balloon Hong Kong” along Victoria Harbour last year. The Hong Kong Tourism Board also organises the Hong Kong Wine & Dine Festival in Central Harbourfront Event Space and Hong Kong International Dragon Boat Races along the Tsim Sha Tsui East promenade every year. In addition, the GreenWay in the KTDA for shared use by pedestrians and cyclists has been gradually opened to the public, and can create synergy effect with the Kai Tak Cruise Terminal, giving cruise passengers more options for shore excursion in the nearby area.
 
     In fact, the concerned harbourfront sections in Kowloon are home to a number of landmarks attracting many visitors, including the Kai Tak Sports Park, the museum cluster in Tsim Sha Tsui, the WKCD, etc. In addition, the waterfront sites therein to be opened this year include the harbourfront event space at the former Hung Hom Railway Freight Yard Pier site as well as the pedestrian walkway linking the WKCD and Tai Kok Tsui. The former will offer visitors with panoramic views of Victoria Harbour and the stunning skyline of Hong Kong Island, while the latter will help bring visitors to the harbourfront along Cheung Sha Wan and enhance accessibility to the WKCD. In the long run, we plan to develop the sites around Hung Hom Station and waterfront areas into a new waterfront landmark combining tourism, entertainment and leisure elements, as well as to construct yacht berthing facilities and provide water-based leisure facilities etc., enhancing the appeal of Victoria Harbour for visitors.
      
     We will continue to follow a pragmatic development approach that is beneficial to the community in order to provide residents and tourists with more harbourfront spaces and facilities, making waterfront activities more diverse and showcasing the vitality and vibrancy of Victoria Harbour.
Issued at HKT 18:55

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LCQ19: Monitoring maintenance works of residential buildings

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Tang Ka-piu and a written reply by Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (Feb 25):
 
Question:
 
     Some residents of On Kay Court in Ngau Tau Kok have reflected that the works consultancy firm engaged by On Kay Court for the major maintenance works of the housing estate is the same as the one engaged by Wang Fuk Court in Tai Po, and the persons in charge of the firm are now involved in judicial proceedings, thus plunging the works at On Kay Court into a standstill and a supervision vacuum and arousing residents’ concern about safety and works progress. In this connection, will the Government inform this Council:
 
(1) whether the Government and the Urban Renewal Authority will, in view of the situation concerning the maintenance works at On Kay Court above, consider intervening by adopting the following measures: (i) deploying qualified civil servants or designating independent professionals as works consultants; (ii) ‍entrusting qualified third-‍party organisations to monitor the work of the existing works consultancy firm or introducing other special options as support, and (iii) if it is necessary to engage a new contractor, stepping up the monitoring of the new contractor to ensure that the services it provides are professional, safe and compliant with the law and prevent the works from being left uncompleted;
 
(2) as it has been learnt that the Owners’ Corporation (OC) of On Kay Court will have to hold a general meeting regarding its major maintenance arrangements, but some residents are worried that the inadequate participation of certain owners (especially non-occupier owners who have leased their units) will affect the quorum of the meeting and the decision-making progress, whether the Government has conducted any assessment in this regard and adopted any measures to assist the housing estate in relaunching the works;
 
(3) whether the Independent Checking Unit under the Housing Bureau has participated in the screening of works contractors and consultancy firms by OCs of housing estates developed by the Hong Kong Housing Authority (HA), as well as the assessment and monitoring of the business competence and integrity of the relevant companies;
 
(4) whether it plans to undertake reforms in order to strengthen the Housing Bureau’s support for housing estates under the Tenants Purchase Scheme (TPS) and the Home Ownership Scheme (HOS) in the areas of building management and maintenance works or even directly intervene in these aspects; if so, of the specific measures and the timetable; if not, the reasons for that;
 
(5) of the total number of TPS and HOS estates in Hong Kong which have received a repair order issued by the Government under the Mandatory Building Inspection Scheme in the past five years, with a breakdown by maintenance works progress (i.e. works in progress, works completed and works not yet commenced); of the number of housing estates among them which have engaged the same works consultancy firm and contractors as Wang Fuk Court;
 
(6) as HA possesses property ownership in some HOS and TPS estates, whether HA will assume a more leading role in building maintenance works projects in the future by exercising its voting rights as an owner and directly participating in the relevant decision-‍making process; if so, of the details; if not, the reasons for that;
 
(7) regarding those HOS estates which have been completed for quite some time but have not yet formed their OCs, whether the Government will take targeted follow-up measures and initiate the provision of legal, administrative and technical support for them, so as to expedite their formation of OCs and in turn facilitate the maintenance and repair of such housing estates;
 
(8) of the total amount of subsidies offered to eligible owners every year since the introduction of the Mandatory Building Inspection Subsidy Scheme; and
 
(9) whether it has inquired into the number of housing estates which have received works consultancy services from the works consultancy firm involved in the major maintenance project of Wang Fuk Court in the past two years, and whether those projects have applied for and received government funding; if so, of the housing estates involved; as the works of those housing estates may be plunged into a standstill as in the case of On Kay Court, of the support and response arrangements put in place by the Government in this regard?
 
Reply:

President, 

LCQ10: Professional grades relating to planning and construction in civil service

Source: Hong Kong Government special administrative region

LCQ10: Professional grades relating to planning and construction in civil service 
Question:
     
     There are views pointing out that in order to achieve sustainable development for Hong Kong and provide a quality living environment for people, the government team must have sufficient professionals relating to planning and construction to participate in and support such work as land development, housing supply and infrastructure construction. In this connection, will the Government inform this Council about the total number of posts (including permanent and time-limited posts) in the professional grades relating to the architectural, surveying, planning, landscape and engineering fields in the civil service establishment in the 2025-2026 financial year, with a breakdown by (i) bureau/department/office and rank (set out in Table 1), and (ii) grade (including (a) Architect, (b) Building Surveyor, (c) Estate Surveyor, (d) Land Surveyor, (e) Maintenance Surveyor, (f) Quantity Surveyor, (g) Valuation Surveyor, (h) Town Planner, (i) Planning Officer, (j) Landscape Architect, and (k) Engineer (based on the relevant grades)) (set out in Table 2)?

Table 1

Bureau/
Department/
OfficeD2Professional
RankAssistant Professional
Rank 2Table 2

Bureau/
Department/
OfficeD2Professional
RankAssistant Professional
Rank 2Reply:

President,
     
     In the 2025–26 civil service establishment, about 7 000 posts are professional grades relating to architecture, surveying, town planning, landscape architecture, and engineering. These professional posts cover various grades, including architects, building surveyors, estate surveyors, land surveyors, maintenance surveyors, quantity surveyors, valuation surveyors, town planners, planning officers, landscape architects, and engineers (including building services engineers, civil engineers, electrical and mechanical engineers, electronics engineers, geotechnical engineers and structural engineers). These posts are mainly concentrated in departments under the Development Bureau (including the Architectural Services Department, Buildings Department, Civil Engineering and Development Department, Drainage Services Department, Electrical and Mechanical Services Department, Lands Department, Planning Department, and Water Supplies Department), Housing Bureau/Housing Department, Highways Department and Transport Department. The numbers of such professional posts (including both permanent and time-limited posts) are provided in Annex I and Annex II, categorised by policy bureau/department and grade respectively.Issued at HKT 17:30

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Govt cares for the community

Source: Hong Kong Information Services

Financial Secretary Paul Chan today said the Government has earmarked resources for support work after the Tai Po fire and for community care, such as increasing the number of vouchers under two elderly care service schemes.

Delivering his 2026-27 Budget today, Mr Chan said the Government has provided comprehensive support for people affected by the Tai Po fire.

He added that the Government has just announced the long-term housing arrangements and earmarked $4 billion accordingly.

The Government also proposed to allocate $300 million to the Urban Renewal Authority to launch an enhanced version of “Smart Tender” in the second half of this year, and to provide subsidies to encourage owners to utilise the scheme’s paid services to reduce the risk of bid-rigging in building repair works. 

Mr Chan also noted that the Government will earmark $3 billion for the Development Bureau to conduct a comprehensive review of Operation Building Bright 2.0 to draw up a new subsidy scheme.

Furthermore, the Government will allocate $1 billion to extend the Lift Modernisation Subsidy Scheme.

Beginning in the next financial year, the Government will increase the number of Community Care Service Vouchers for the Elderly by 4,000 to 16,000 and the number of Residential Care Service Vouchers for the Elderly by 1,000 to 7,000, with estimated full-year expenditures of $1.2 billion and $1.97 billion respectively.

Meanwhile, the Elderly Health Care Voucher Pilot Reward Scheme will be extended by two years until end 2028.

Elderly persons who have accumulated voucher spending of $1,000 or above within the same year on specific primary healthcare services, such as examinations and chronic disease management, are eligible for a $500 voucher reward. Mr Chan said the measure will involve an additional expenditure of about $1 billion.

The Government will also implement new arrangements for portable cash assistance in the middle of this year, under which elderly participants of the Guangdong Scheme, Fujian Scheme and Portable Comprehensive Social Security Assistance Scheme may opt to receive government assistance directly through their accounts with designated Mainland banks.

Regarding support for youth, the Financial Secretary said the Government will introduce a new media thematic internship programme in the Mainland and allocate an additional $60 million toward implementing the Funding Scheme for International Youth Exchange under the Home & Youth Affairs Bureau continuously.

The Government will also provide around 3,600 short term internship placements in government departments and public bodies for post-secondary students.

Mr Chan also announced that the annual funding for the Women Empowerment Fund will be increased to $30 million from the next financial year.

To support persons with disabilities, the Government will enhance rehabilitation services by providing about 450 additional places for day, residential and pre-school services in the next financial year, involving an additional annual expenditure of about $107 million. 

For school children receiving On-site Pre-school Rehabilitation Services, the Government will provide bridging and support services during their first term in primary school, involving an additional annual expenditure of about $260 million.

Meanwhile, the provision for the Re-employment Allowance Pilot Scheme will be increased to $222 million in the coming financial year.

Regarding healthcare service enhancements, Mr Chan said the Government will further develop primary healthcare in the community by launching the Primary Healthcare Co care Network, which will extend screening to include hepatitis B and other diseases, strengthen cross disciplinary collaboration, and improve support services such as medical laboratory testing and diagnostic radiology. 

The target participation for the first five years is for around 700,000 individuals, he added.

The Government will also implement the community drug formulary and launch the community pharmacy programme in the second half of this year.

To enhance the price transparency of private healthcare services, the Government will introduce the relevant regulation to the Legislative Council this year.

Leading innovation via infrastructure

Source: Hong Kong Information Services

Financial Secretary Paul Chan today announced several measures to integrate technological and industrial innovations through key infrastructure projects, including Hetao Hong Kong Park and San Tin Technopole.

Through tripartite co-operation, the Government intends to channel land and corporate resources towards target industries for priority development in Hong Kong. Encouraging greater participation in innovation and technology by the business sector will expedite development of the Northern Metropolis.

Planning for Phase 2 of Hetao Hong Kong Park is complete and the Government will seek Legislative Council approval to inject $10 billion into the park company to accelerate development..

To create a comprehensive industrial ecosystem, the Government will establish a dedicated company this year with the aim injecting $10 billion to move forward with development of the San Tin Technopole.

 

Aerospace collaboration

The finance chief said today that Hong Kong is well-positioned to connect the Mainland’s aerospace industry with global markets by providing professional services in research and development (R&D), financing and risk management.

The Office for Attracting Strategic Enterprises will take the lead in identifying and attracting aerospace firms to establish a presence in the city. To further support the sector, the Government has requested Hong Kong Exchanges & Clearing to review listing requirements to facilitate the entry of aerospace enterprises into the local capital market.

Driving RISC-V innovation

The Hong Kong Investment Corporation is actively promoting the R&D and industrialisation of RISC-V technology through strategic investments and the establishment of the Hong Kong RISC-V Alliance.

The alliance aims to leverage this open-source technology to foster cross-industry co-operation among academia, industry and the investment sector within the Greater Bay Area and international markets.

Advancing emerging technologies

The Government is accelerating the commercialisation of new materials with two startups set to launch production lines at EcoPark this year and the third InnoHK research cluster, establishing new R&D centres focused on advanced manufacturing and sustainability.

To the foster the next wave of artificial intelligence (AI), the Government and the Hong Kong Investment Corporation are building a robust ecosystem for embodied AI.

Strategic investment

The Financial Secretary said today that the Government is currently selecting managers for its $10 billion Innovation & Technology Industry-Oriented Fund, with operations set to begin this year to channel market capital into strategic fields like life and health technology and AI.

To further bolster cross-boundary collaboration within the Greater Bay Area, the Government will also review and enhance tax arrangement for R&D expenditures.

Patient capital

The Hong Kong Investment Corporation has invested in over 190 projects to date. As the initial $62 billion capital has been largely allocated, the Government will arrange capital injections to further promote industry clustering and the development of frontier technology.

Inflation at 1.1% in Jan

Source: Hong Kong Information Services

Overall consumer prices rose 1.1% year-on-year in January, a smaller increase than the 1.4% year-to-year rise recorded in December, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate was 1% in January, also less than that seen in the previous month.

Compared with January 2025, year-on-year increases in prices were recorded in the following categories: electricity, gas and water; miscellaneous services; alcoholic drinks and tobacco; miscellaneous goods; transport; housing; and meals out and takeaway food.

Meanwhile, year-on-year decreases were logged for durable goods; clothing and footwear; and basic food.

The Government said that the smaller increases in January were mainly due to the high base of comparison stemming from the Chinese New Year taking place in January last year, while the 2026 Chinese New Year fell in mid-February.

It added that price pressures on various major components remained largely contained in general.

Looking ahead, external price pressures are expected to largely stay moderate, but domestic costs may rise as the Hong Kong economy continues to grow. Nevertheless, overall inflation should stay mild in the near term.

HK to enhance tourism appeal

Source: Hong Kong Information Services

Financial Secretary Paul Chan said today in his 2026-27 Budget that the Government will continue to promote the integrated development of culture, sports and tourism to provide a better urban living experience for residents and visitors.

In the coming year, the Government will allocate $1.66 billion to the Tourism Board. The board will scale up its flagship events and promotions, introducing new elements, extending the duration of events, and organising more signature festive events to highlight Hong Kong’s East-meets-West uniqueness.

Building on the success of last year’s “Immersive Light Show in Central”, which featured spectacular 3D light shows, the board will launch a brand-new show focused on the theme of light festivals. It will be held at various locations at different times of the year and will replace “A Symphony of Lights”.

To attract high-end overnight visitors, the Tourism Board will step up marketing efforts in source markets with good potential, including Mainland cities outside Guangdong, and emerging markets such as Association of Southeast Asian Nations countries and the Middle East. 

Hong Kong will also continue strengthening co-operation with the Greater Bay Area and other Mainland provinces and municipalities, and exploring options for multi-destination flight itineraries with airlines.

On revitalising historic buildings, Mr Chan said the Government will earmark additional funding of $1 billion for the Built Heritage Conservation Fund to carry on its work.

Following the opening of the Eastern Section of the East Coast Boardwalk in North Point at the end of last year, the 13km-long harbourfront from Kennedy Town to Shau Kei Wan has now been fully pedestrianised.

Adhering to the incremental approach taken in enhancing the harbourfront, the Government plans to conduct a consultation on the construction of a pedestrian walkway at the praya in Kennedy Town in the second quarter of this year. Following the phased opening of a waterfront site near Hung Hom Station this quarter, Kowloon’s harbourfront promenades will extend to about 15km in length.

To support the “tourism is everywhere” ethos and promote “urban-rural integration”, the Budget proposes allocating $200 million to launch the “Northern Metropolis Urban-rural Integration Fund” as a pilot scheme. The scheme aims to encourage non-governmental organisations and relevant bodies to take forward rural tourism projects and bring economic vitality to rural villages.

With regard to sports, the Government will allocate more resources to promote sports in the community, support elite sports, maintain Hong Kong as a centre for major international sports events, enhance professionalism in sports, and develop sports as an industry.

It will inject $1.2 billion into the sports portion of the Arts & Sport Development Fund to further promote sports development, including strengthening training for team sports athletes, improving the professional standards of coaches, and bringing more diverse and higher-level sports competitions to Hong Kong.

Meanwhile, as part of its ambition to develop Hong Kong into a global trading hub for “premium” arts, the Government is due to finalise the details of its collaboration with Art Basel over the coming five years.

To strengthen Hong Kong’s position as one of the world’s top three arts trading centres, the Government has initiated a study focused on exploring areas such as financing and talent development. The study is expected to be completed this year.

Major improvement in public finances

Source: Hong Kong Information Services

Financial Secretary Paul Chan revealed that in 2025-26, the Government’s Operating Account will return to a surplus ahead of schedule and is expected to register a surplus throughout the period from 2026-27 to 2030-2031.

Mr Chan observed that overall, the Government’s public finances have seen significant improvement.

Delivering the 2026-27 Budget Speech today, Mr Chan noted that the Budget last year introduced a reinforced fiscal consolidation programme with the aim of achieving fiscal balance.

Over the past year, on top of its full commitment to implementing the programme, the Government also saw an increase in revenue from stamp duties and profits tax, by nearly $50 billion in total, compared to the original estimate.

As a result, in 2025-26, the Operating Account will return to a surplus ahead of schedule, while the Consolidated Account will be broadly balanced after taking into account the net proceeds from bond issuance.

In the medium term, Mr Chan said the Capital Account will nevertheless still record a deficit annually, mainly due to a high level of capital works expenditure. 

As infrastructure projects are an investment in Hong Kong’s future, the Government will meet the financing needs by suitably increasing bond issuance. 

Fiscal consolidation

The Financial Secretary said the Government will follow through with the fiscal consolidation programme by strictly containing the growth of operating expenditure.

Specifically, it will take forward the Productivity Enhancement Programme as planned, to cut the recurrent expenditure by 2% in both 2026-27 and 2027-28. Such moves will deliver further savings of about $7.8 billion and $15.6 billion respectively over 2025-26.

The plan will be launched on the premise that the Comprehensive Social Security Assistance, Social Security Allowance and statutory expenditures will not be affected, Mr Chan emphasised.

The civil service establishment will be reduced by 2% in each of the coming two financial years to an estimated level of about 188,000 posts by April 1. As a result, a cumulative total of over 10,000 posts will be deleted within the current-term Government.

Mr Chan said the Government will uphold the “affordable users pay” principle in raising revenue.

The rates of stamp duty on residential property transactions valued above $100 million will be raised from 4.25% to 6.5%, affecting about 0.3% of residential property transactions. 

It is estimated that revenue will increase by about $1 billion per year. The measure will take retrospective effect from tomorrow upon passage of the amendment bill by the Legislative Council.

The Government will also optimise the use of its financial resources. Funds established outside its accounts will be consolidated with a view to bringing back about $15.8 billion to the Government’s accounts in 2026-27.

To optimise the use of the Bond Fund’s surplus, the Government will introduce a resolution to LegCo to enable the transfer of the accumulated fund surplus to the Consolidated Account in 2026-27.

In addition, Mr Chan proposed transferring $75 billion in each of the coming two financial years, totalling $150 billion, from the Exchange Fund to the Capital Works Reserve Fund. The $150 billion in transfer will support the Northern Metropolis and other infrastructure projects.

Bond issuance

The Government’s capital works expenditure is estimated to be about $128 billion for 2026-27. As the Government will accelerate the development of the Northern Metropolis and other economy and livelihood related works projects, it plans to raise the total borrowing ceiling of the green bonds and infrastructure bonds programmes, from $700 billion announced last year to $900 billion. 

During the Medium Range Forecast period, the ratio of government debt to Gross Domestic Product will rise from 14.4% to 19.9%, which, Mr Chan said, is a highly prudent level and well below that of most advanced economies.

Proceeds from bond issuance will be used to invest in infrastructure only, but not for government recurrent expenditure, he emphasised.

Fund defends HK’s financial system

Source: Hong Kong Information Services

Financial Secretary Paul Chan said today the main purpose of the Exchange Fund is to defend Hong Kong’s financial stability and its financial system.

The 2026-27 Budget proposed to transfer $150 billion from the Exchange Fund to the Capital Works Reserve Fund in the coming two years to support the Northern Metropolis and other infrastructure projects.

At the Budget press conference this afternoon, Mr Chan explained the rationale behind the transfer and emphasised that it is a safe play.

“Last year, the Exchange Fund made an investment income of over $300 billion. Now we are transferring from the Exchange Fund, about half of it, $150 billion, in two installments commencing from 2026-27.”

“Having regard to the current size of the Exchange Fund, which is over $4,100 billion, and considering that we are just taking half of their income earned last year, back to the Government, also for investment purposes, we do think this is a considered, prudent move,” Mr Chan added.

“We are very confident that given our various measures in place and the strong buffer of the Exchange Fund, we would be able to weather any volatility or even attack to our financial system.”