MIL Asia Pacific Publishing Engine

Source: Hong Kong Government special administrative region

     The Government released today (August 15) the Half-yearly Economic Report 2025, together with the revised figures on Gross Domestic Product (GDP) for the second quarter of 2025.
 
     The Acting Government Economist, Dr Cecilia Lam, gave an account of the economic performance in the second quarter of 2025 and the latest GDP and price forecasts for 2025.
 
Main points

＊    The Hong Kong economy continued to expand solidly in the second quarter of 2025, supported by strong exports performance and improved domestic demand. Real GDP grew by 3.1% year-on-year in the second quarter, picking up slightly from the growth of 3.0% in the preceding quarter. On a seasonally adjusted quarter-to-quarter basis, real GDP rose further by 0.4%.

＊    Notwithstanding the ongoing uncertainties to global economy and trade brought about by the United States’ (US) trade policy, resilient external demand, together with some rush shipments in response to the US’ temporary easing of tariff measures, supported Hong Kong’s total exports of goods to see accelerated year-on-year growth of 11.5% in real terms in the second quarter. Meanwhile, thanks to strong growth in inbound tourism, sustained expansion in cross-boundary traffic, and vibrant financial and related business service activities amid the buoyant local stock market, exports of services continued to expand notably by 7.5% in real terms over a year earlier.

＊    Domestically, private consumption expenditure resumed moderate growth of 1.9% year-on-year in real terms in the second quarter after four consecutive quarters of decline. Meanwhile, overall investment expenditure increased further by 2.8% in real terms over a year earlier, thanks to a surge in expenditure on machinery, equipment and intellectual property products.

＊    The labour market saw some softening in the second quarter. The seasonally adjusted unemployment rate rose to 3.5% from 3.2% in the preceding quarter. The underemployment rate also increased. Employment earnings grew solidly further over a year earlier.

＊    The local stock market maintained upward momentum in the second quarter as market sentiment improved after the situation of trade tensions eased somewhat. The residential property market showed some stabilisation during the quarter. Flat prices held broadly stable, and rentals stayed resilient.

＊    Consumer price inflation stayed modest in the second quarter. The underlying Composite Consumer Price Index (Composite CPI) increased by 1.1% over a year earlier, following the 1.2% increase in the preceding quarter. Price pressures on major components were largely contained. Including the effects of the Government’s one-off relief measures, the headline Composite CPI increased by 1.8% over a year earlier, higher than the 1.6% increase in the preceding quarter. 

＊    Looking ahead, the Hong Kong economy is expected to maintain growth for the rest of 2025. Steady economic growth in Asia, in particular the Mainland, together with the sustained increases in local employment earnings, the robust stock market, and the stabilisation of residential property market will bode well for various sectors of the Hong Kong economy. The Government’s various measures to boost consumption, attract investment and diversify markets will also provide further support to the Hong Kong economy. Yet, the tariff rates announced by the US in early August stay elevated, and its tariff policy on some commodities remains quite uncertain. The impact of these developments on international trade flows and also the US’ inflation and economic activities may surface gradually later this year. Furthermore, the uncertainty surrounding the pace of interest rate cut in the US will also affect local investment sentiment. Hong Kong’s economic growth momentum going forward will, to a certain extent, depend on how these factors evolve. 

＊    Taking into account the actual outturn in the first half of the year and the latest developments of the global and local situation, the real GDP growth forecast for 2025 as a whole is maintained at 2%-3%, the same as that in the May round of review. The Government will continue to closely monitor the situation.

＊    On the inflation outlook, overall inflation should remain modest in the near term as pressures from domestic costs and external prices should stay broadly in check. Considering that the inflation situation in the first half of the year was broadly in line with earlier expectations, the forecasts for the underlying and headline consumer price inflation rates for 2025 are maintained at 1.5% and 1.8% respectively, the same as those in the May round of review.
 
Details
 
GDP
 
     According to the revised figures released today by the Census and Statistics Department, real GDP grew by 3.1% year-on-year in the second quarter of 2025 (same as the advance estimate), having increased by 3.0% in the preceding quarter. On a seasonally adjusted quarter-to-quarter comparison, real GDP rose by 0.4% in the second quarter (same as the advance estimate), after a 1.8% increase in the preceding quarter (Chart).
 
     The latest figures on GDP and its major expenditure components up to the second quarter of 2025 are presented in Table 1.  Developments in different segments of the economy in the second quarter are described below.
 
External trade
 
     Total exports of goods saw accelerated year-on-year growth of 11.5% in real terms in the second quarter of 2025, following an 8.4% increase in the preceding quarter. Resilient external demand, together with some rush shipments in response to the US’ temporary easing of tariff measures, rendered support to export performance. Analysed by major market and by reference to external merchandise trade statistics, exports to the Mainland posted further double-digit growth. Exports to ASEAN markets accelerated further, and those to most high-income Asian economies saw increases of varying degrees. Exports to the US turned to a decline, and those to the European Union fell further. On a seasonally adjusted quarter-to-quarter basis, total exports of goods rose by 2.9% in real terms in the second quarter.
 
     Exports of services continued to expand notably by 7.5% in real terms in the second quarter over a year earlier, after growing by 6.3% in the preceding quarter. Exports of all major service groups showed further increases. Specifically, exports of travel and transport services rose further thanks to strong growth in inbound tourism and sustained expansion in cross-boundary traffic. Exports of financial services and business and other services also continued to grow, supported by vibrant financial and related business service activities amid the buoyant local stock market. On a seasonally adjusted quarter-to-quarter basis, exports of services edged down by 0.5% in real terms in the second quarter.
 
Domestic sector
 
     Private consumption saw some stabilisation in the second quarter of 2025, showing a turnaround after a year of subdued performance amid the changes in residents’ consumption patterns. The continued increase in employment earnings, the decline in local interest rates, the buoyant local stock market, and the stabilisation of residential property market have provided support. Private consumption expenditure turned to an increase of 1.9% in real terms in the second quarter over a year earlier, after declining by 1.2% in the preceding quarter. On a seasonally adjusted quarter to quarter basis, private consumption expenditure increased by 3.4% in real terms. Meanwhile, government consumption expenditure increased by 2.5% in real terms in the second quarter over a year earlier, after rising by 0.9% in the preceding quarter. On a seasonally adjusted quarter to quarter basis, government consumption expenditure increased by 0.9% in real terms.
 
     Overall investment expenditure in terms of gross domestic fixed capital formation increased by 2.8% in real terms in the second quarter over a year earlier, further to a 1.1% increase in the preceding quarter. Expenditure on acquisitions of machinery, equipment and intellectual property products leapt by 38.4%, with private sector spending showing particularly strong growth. Yet, expenditure on building and construction continued to contract by 9.5%. Costs of ownership transfer shrank by 8.7% from a high base last year. 
 
The labour sector
 
     The labour market saw some softening in the second quarter of 2025. The seasonally adjusted unemployment rate rose to 3.5% from 3.2% in the preceding quarter. The underemployment rate also increased to 1.4% from 1.1%. The median monthly employment earnings of full-time employees in nominal terms grew solidly further by 6.3% in the second quarter over a year earlier.
 
The asset markets
 
     The local stock market maintained upward momentum in the second quarter of 2025. Despite a sharp sell-off alongside other major markets following the US’ announcement of the so-called “reciprocal tariffs” in early April, market sentiment improved subsequently as trade tensions eased after the US temporarily suspended many of these tariffs. The Hang Seng Index (HSI) recouped lost grounds and sustained the uptrend to close the second quarter at 24 072, up 4.1% from end-March. Since entering the third quarter, local stock market has stayed vibrant, with the HSI surpassing the level at the end of the second quarter in recent days.
 
     The residential property market showed some stabilisation in the second quarter. Market sentiment continued to improve amid easing external uncertainties, particularly after the sharp declines in the Hong Kong Interbank Offered Rates in May which subsequently lowered mortgage rates. Overall flat prices held broadly stable, rising back by 1% during the second quarter. Largely driven by the notable declines in mortgage rates during the quarter, the index of home purchase affordability improved further to around 55%, which was comparable to the long-term average. The number of transactions, in terms of the total number of sale and purchase agreements for residential property received by the Land Registry, rebounded appreciably by 37% over the preceding quarter to 16 574 in the second quarter, only 7% lower than the high level a year ago. Overall flat rentals stayed resilient, with a further increase of 1% between March and June. The non-residential property market stayed weak in general in the second quarter. While prices and rentals remained soft, trading activities of all major market segments picked up.
 
Prices
 
     Consumer price inflation stayed modest in the second quarter of 2025. The underlying Composite CPI increased by 1.1% in the second quarter over a year earlier, following the 1.2% increase in the preceding quarter. Major components generally saw modest to moderate changes as compared with a year earlier, as domestic and external price pressures stayed broadly in check. Including the effects of the Government’s one-off relief measures, the headline Composite CPI increased by 1.8% in the second quarter over a year earlier, higher than the 1.6% increase in the preceding quarter. The headline inflation rate was higher than its underlying counterpart in the second quarter, mainly due to the smaller electricity charges subsidy provided by the Government and lower ceiling of rates concession compared with the same period last year.
 
Latest GDP and price forecasts for 2025
 
     Looking ahead, the Hong Kong economy is expected to maintain growth for the rest of 2025. Steady economic growth in Asia, in particular the Mainland, together with the sustained increases in local employment earnings, the robust stock market, and the stabilisation of residential property market will bode well for various sectors of the Hong Kong economy. The Government’s various measures to boost consumption, attract investment and diversify markets will also provide further support to the Hong Kong economy. Yet, the tariff rates announced by the US in early August stay elevated, and its tariff policy on some commodities remains quite uncertain. The impact of these developments on international trade flows and also the US’ inflation and economic activities may surface gradually later this year. Furthermore, the uncertainty surrounding the pace of interest rate cut in the US will also affect local investment sentiment. Hong Kong’s economic growth momentum going forward will, to a certain extent, depend on how these factors evolve. 
 
     Taking into account the actual outturn in the first half of the year and the latest developments of the global and local situation, the real GDP growth forecast for 2025 as a whole is maintained at 2%-3%, the same as that in the May round of review (Table 2). The Government will continue to closely monitor the situation. For reference, the latest growth forecasts by private sector analysts range between 1.8% and 3.0%, averaging around 2.4%.
 
     On the inflation outlook, overall inflation should remain modest in the near term as pressures from domestic costs and external prices should stay broadly in check. Considering that the inflation situation in the first half of the year was broadly in line with earlier expectations, the forecasts for the underlying and headline consumer price inflation rates for 2025 are maintained at 1.5% and 1.8% respectively, the same as those in the May round of review (Table 2).
 
     The Half-yearly Economic Report 2025 is now available for online download, free of charge at www.hkeconomy.gov.hk/en/situation/index.htm. The Report of the Gross Domestic Product by Expenditure Component, which contains the GDP figures up to the second quarter of 2025, is also available for browse and download, free of charge on the homepage of the Census and Statistics Department, www.censtatd.gov.hk.

Source: Hong Kong Government special administrative region

Source: Republic of China Taiwan

According to the statistics, 1,246 foreign direct investment (FDI) projects with a total amount of US$7,812,686,000 were approved from January to July 2025. This indicates a decrease of 3.19% in the number of cases, but an increase of 53.93% in FDI amount compared to the same period of 2024.

With regard to inward investment from Mainland China, 13 cases were approved with an amount of US$100,863,000 from January to July 2025. This indicates a decrease of 43.48% in the number of cases, but an increase of 500.55% in the FDI amount compared to the same period of 2024.

In terms of Taiwan’s outbound investment (excluding Mainland China), 496 projects were registered from January to July 2025 with a total amount of US$19,860,730,000, indicating an increase of 16.16% in the number of cases, but an decrease of 38.66% in the amount, as compared to the same period of 2024.

As for Taiwan’s outward investment to Mainland China, 128 applications have been approved from January to July 2025, indicating a decrease of 40.74% compared to the same period of 2024. The approved investment amount is US$772,818,000, 74.84% less than the same period in 2024.

Source: Hong Kong Government special administrative region

　　The Government announced today (August 15) that the proposal from the Foundation for Art and Culture Limited (FAC) has been accepted to operate, manage, conserve and revitalise Haw Par Mansion situated at 15A Tai Hang Road, Wan Chai, Hong Kong for arts and culture use.
 
　　The FAC will sign a Service Agreement with the Government for a term of three years and will operate Haw Par Mansion on a non-profit making and self-financing basis for arts and culture use, so as to complement the arts and culture as well as the heritage conservation policies of the Government, to develop Haw Par Mansion as a unique icon of international arts and cultural exchange in Hong Kong, and to contribute to the realisation of Hong Kong as an East-meets-West centre for international cultural exchange. 
 
The FAC will revitalise Haw Par Mansion and introduce diversified arts and cultural programmes, including exhibitions, film screenings, performances, workshops as well as artist residency programmes in collaboration with local, Mainland and international artists and organisations, and it is expected to commence operation in the second half of 2026.
 
As a local charitable institution, the FAC is dedicated to promoting arts and culture in Asia and fostering cultural exchange between East and West. 

　　The Government announced in September 2024 that it would conduct an Invitation for Proposal exercise to identify the most suitable non-profit-making operator for Haw Par Mansion. A total of five proposals were received by the deadline of January 27, 2025. An assessment panel was formed to assess and consider the proposals received based on pre-determined assessment criteria.
 
　　Haw Par Mansion is currently open to the public for free through docent tours arranged by the Antiquities and Monuments Office (AMO) of the Development Bureau. The booking of docent tours is expected to last until the end of November 2025 tentatively. Please refer to the website of the AMO for details. The FAC will continue to provide free docent service to the public after the commencement of its operation of Haw Par Mansion.
 

Source: Hong Kong Information Services

The Government announced today that the scope of services for the Community Dental Support Programme (CDSP) will be expanded next year to further enhance subsidised preventive and curative dental services for the underprivileged with financial difficulties.

 

In addition to providing the existing services of oral health assessments, medication for dental pain relief, X-ray examinations and dental fillings or extractions, new service items, including dental scalings, root canal treatments, removal of bridges or crowns and removable denture fittings, will be introduced from January 1 next year. 

 

Subject to the assessment by the attending registered dentist, each participant can receive dental scaling services and a root canal treatment for one tooth every 365 days.

 

Regarding removable denture fittings, each participant can receive the service up to two times, with an interval of at least five years in between.

 

To ensure the proper use of limited resources to achieve greater cost-effectiveness, and to allow the underprivileged to receive the most effective treatment services, the removable dentures fitting service will only be available to eligible persons with fewer than 20 remaining teeth. Such individuals must first be assessed by a dentist as having difficulties in eating or chewing and their eating abilities could be effectively restored by the fitting of removable dentures.

 

The CDSP will also expand the beneficiaries list to cover the homeless, allowing them to be certified and referred by registered social workers in designated non-governmental organisations (NGOs) to participate in the CDSP, even when they are unable to provide the required financial proof to meet the eligibility criteria.

 

Under a co-payment arrangement, apart from government subsidies, participants have to pay a fee to the NGO providing the service.

 

The Department of Health launched the CDSP on May 26 with 32 NGOs providing services to eligible participants at 78 service points. As at August 6, a total of 1,892 eligible persons had received subsidised dental services, which included 2,549 dental fillings and 906 extractions. The ratio of the two is approximately three to one, reflecting that the CDSP has successfully guided service users towards tooth retention when the dentist considers it suitable, aligning with the Government’s initiatives on oral health and dental care.

 

The CDSP will supplant the Community Care Fund Elderly Dental Assistance Programme (EDAP) which will cease to accept applications from January 1 next year. Eligible elders must submit their application for the EDAP through their service unit on or before December 31, and attend the first consultation no later than January 31 next year.

 

Click here for more details.

Source: Hong Kong Government special administrative region

Source: Hong Kong Information Services

The Public Health & Municipal Services (Amendment) Ordinance 2025 will come into effect on Sunday, strengthening the statutory power of the Food & Environmental Hygiene Department (FEHD) to deal with various environmental hygiene problems.

 

The move will enable the department to handle problems such as water seepage in buildings, water dripping from air conditioners, the occupation of public places by miscellaneous articles, shopfront extensions, and so on, more effectively.

    

With the amendment ordinance, the hours public officers are allowed to enter premises to deal with public health nuisances, such as water seepage in buildings and water dripping from air conditioners, are now extended to between 7am and 10pm.

 

Failing to allow a public officer to enter the premises within 14 days after the issuance or attachment of the Notice of Intended Entry by the department without reasonable excuse is an offence.

 

The FEHD can also issue a Notice of Elimination of Vermin to a person responsible for the management of the premises such as owners’ corporations and property management companies, regarding the common parts of the premises, allowing timely handling of vermin in common parts of a building.

 

In cases where the FEHD conducts vermin disinfestation work for infested premises without serving a vermin elimination notice, it may recover the expense incurred from the responsible person of the premises concerned. The department can also place devices and equipment in vermin-infested premises for conducting tests or assessing vermin proliferation.

 

As for the occupation of public places by miscellaneous articles causing obstruction to scavenging operations, the ordinance shortens the removal time to a period of no less than 30 minutes. The FEHD can exercise discretion by setting a reasonably longer time according to the circumstances.

 

Enforcement officers are also empowered to remove and dispose of display equipment like easy-mount frames, apart from bills or posters.

 

Additionally, the ordinance introduces an offence targeting shopfront extensions in the Public Health & Municipal Services Ordinance, empowering the FEHD to remove the obstructing articles constituting unlawful shopfront extensions without reliance on police power.

 

In cases where no claim is made for the article not of a perishable nature within seven days after the exercise of the power of removal, or within 48 hours for the article of perishable nature, the article will be forfeited.

 

Click here for more details about the ordinance, including the penalties for its violations such as non-compliance with designated notices and obstruction to scavenging operations.

Source: Hong Kong Government special administrative region

     The Environmental Protection Department (EPD) today (August 15) launched the Non-Plastic Container Trial Programme, openly inviting local catering businesses to participate in the trial use of various types of non-plastic containers and provide feedback on product performance.

     The trial programme has received enthusiastic support from the trade. At present, nearly 100 catering brands (covering more than 1 000 outlets) and nearly 30 tableware suppliers have taken the lead in participating. The trade will collaborate with the Government to further explore going plastic-free in catering operations, working together to achieve the goal of “Protect the Earth, Use Less Plastic”.

     An EPD spokesman said, “Plastic is difficult to decompose and can remain in the environment for a very long time. Over time, it can even fragment into microplastics, causing far-reaching harm to the environment and ecology as well as human health. To safeguard the environment and public health, we need to gradually reduce the use of disposable plastic. However, non-plastic container alternatives are still in the developmental stage. While many products are available, they have yet to fully meet all the application needs of the trade.”

     He continued, “Through the trial programme, participating non-plastic container suppliers will offer discounts to encourage catering businesses to test and gradually expand the use of non-plastic containers based on their circumstances, without having to wait for perfect alternatives to come along. At the same time, more comprehensive data on application could be collected for the improvement of product design and supply chains.”

     The EPD will continue recruiting local catering businesses and non-plastic container suppliers to join the trial programme, testing containers made of different materials (e.g. paper, bamboo pulp, bagasse) and providing feedback based on actual operational scenarios and product performance (e.g. heat resistance, oil resistance, sealing capability). Eateries may also conduct internal testing of new alternatives before applying them at the customer level or carry out phased market trials in selected outlets. There is no need for full-scale adoption at once, and different alternatives may be tested. The EPD will continually consolidate data and industry feedback for reference by catering businesses and tableware suppliers.

     The spokesman emphasised, “Before further mandating the use of alternatives through legislation, the Government will thoroughly consider the maturity, availability and affordability of the relevant non-plastic alternatives with the goal of aligning environmental protection with industry needs and public acceptance, thereby pragmatically advancing plastic reduction.”

     The EPD calls on the catering sector to actively participate in the trial programme and contribute to environmental protection. For details and enrolment, please visit the Green Tableware Platform website (www.greentableware.hk) or email sup_hotline@epd.gov.hk for enquiries. Members of the public and relevant industry stakeholders can also share their experiences with non-plastic containers via the platform, collectively driving improvements in alternative products to expand the market with better plastic-free options.

Source: Hong Kong Government special administrative region

Source: Hong Kong Information Services

The Government announced today that the Chief Executive has reappointed Ada Chung as the Privacy Commissioner for Personal Data for five years from September 4.

 

Ms Chung was first appointed as the Privacy Commissioner in September 2020. 

 

The Government said that since her appointment, Ms Chung has fully demonstrated her extensive professional knowledge and leadership skills, as well as her unwavering dedication to the work of the Office of the Privacy Commissioner for Personal Data (PCPD), leading the PCPD in addressing various increasingly complex challenges for privacy protection.

 

In the past five years, Ms Chung led the PCPD in fully supporting the Government in amending the Personal Data (Privacy) Ordinance, and setting up a division responsible for criminal investigation and prosecution, so as to effectively combat “doxxing” acts intruding into personal data privacy.

 

To strive for a greater say on privacy protection issues in the international arena, Ms Chung also led the PCPD in strengthening connections with international and national data and privacy protection organisations, including serving as the co-chair of the Ethics & Data Protection in Artificial Intelligence Working Group and the International Enforcement Cooperation Working Group of the Global Privacy Assembly.

 

The Government added that it is confident that under Ms Chung’s leadership, the PCPD will reach new heights in further promoting the protection and respect for personal data privacy in society, and proactively tackling challenges arising from the development of emerging technologies.