Policy Address: Deepening Reforms for Our People and Leveraging Our Strengths for a Brighter Future
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Mr Lee said, "This year marks the conclusion of the National 14th Five Year Plan period and the preparatory year for the 15th Five Year Plan. This Policy Address serves as a roadmap for Hong Kong to strive for a vibrant economy, pursue development, and improve people's livelihood - accelerating our advancement from stability to prosperity. It also outlines a strategic plan for Hong Kong to proactively align with national development strategies and achieve breakthroughs in forging a new landscape.
"My ultimate objective in governance is to improve people's livelihood with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people. The well-being of our people is intimately linked to the health of our economy, making economic growth the key driver of livelihood improvement. Growth creates job opportunities and wealth, which will in turn generate additional resources for public services, enabling the Government to deliver more and better services. Improvement in people's livelihood will then spark new social demands that stimulate market development, further promoting economic growth. The economy and people's livelihood are mutually reinforcing: each strengthens the other."
Strengthen governance systems
In order to enhance the overall management standard of the departments and strengthen the accountability of the Heads of Department (HoDs), the Policy Address introduced the establishment of the HoDs Accountability System. It aims to render the accountability in policy formulation and implementation better articulated with each other, drive HoDs to establish effective management teams and operating systems, identify deficiencies, clarify responsibilities and take administrative or disciplinary actions as appropriate when issues arise. The functions of the Public Service Commission will be expanded to conduct independent investigation of serious issues, widespread or repetitive systemic problems or matters related to the role of HoDs. The Civil Service Bureau will conduct a study to develop a more rigorous performance appraisal system for civil servants.
The application of artificial intelligence (AI) in the work of the Government can effectively enhance efficiency. The Government will set up an AI Efficacy Enhancement Team to co-ordinate and steer government departments to apply AI technology effectively to their work, explore process re-engineering and promote technological reform in departments.
Deepen reform and develop industries
To accelerate the development of the Northern Metropolis, the level of decision-making will be raised by establishing the Committee on Development of the Northern Metropolis chaired by the Chief Executive. Administrative workflows will be streamlined, while unnecessary barriers and restrictions will be removed. Dedicated legislation will also be introduced to empower the Government to devise simplified statutory procedures for accelerating the development of the Northern Metropolis.
Industries are the cornerstone of economic development. The Financial Secretary will lead relevant policy bureaux, departments and public organisations in formulating packages of preferential policies, including land grants, land premiums, financial subsidies, and tax incentives, to attract high value-added industries and high-potential enterprises to set up in Hong Kong, thereby promoting high-quality development.
New industrialisation-related industries, such as aircraft recycling and new energy, will be introduced and developed. The Government will promote the development of the life and health technology industry and set up the Hong Kong Centre for Medical Products Regulation and the Office for Introducing Innovative Drugs and Medical Devices, helping pharmaceutical companies bring innovative drugs to the markets. The Government will also promote the development of the AI and data science industries, and expand the application of the AI in government services and business operations.
With 1 180 kilometres of shoreline and 263 islands, Hong Kong is well positioned to become a yacht hub in Asia. The Government will enhance amenities for the yacht industry, provide additional yacht berths and improve immigration clearance procedures to promote prime yacht tourism and develop the yacht economy.
Integrate into overall national development and consolidate Hong Kong’s status as an international hub
The Policy Address sets out the establishment of a one-stop platform by mobilising Hong Kong's overseas offices. The Task Force on Supporting Mainland Enterprises in Going Global will be set up to encourage Mainland enterprises to use Hong Kong in expanding their businesses overseas. Relevant policy bureaux, departments and agencies will formulate proposals for enterprises looking to go global.
On finance, the Government will expedite the building of an international gold trading market by supporting more institutions to establish gold storage facilities in Hong Kong, with a target gold storing capacity of over 2 000 tonnes in three years, propelling Hong Kong into a regional gold reserve hub. The Government will also encourage gold traders to set up or expand refineries in Hong Kong, establish a central clearing system for gold in Hong Kong and offer a greater variety of gold investment vehicles.
Regarding trading, the Government will continue to foster the development of a commodity trading ecosystem in Hong Kong and will set up the Strategic Committee on Commodities, with the aim of strengthening the top-down design and long-term strategy of the commodity policy. The process of international commodity trading will be enhanced through financial innovation. The Government will also deepen connections with the Guangzhou Futures Exchange and other commodity markets in the Mainland.
Hong Kong is expected to become the world's largest cross-boundary wealth management centre in the next few years. The Government will enhance the New Capital Investment Entrant Scheme to attract more investors by relaxing the investment threshold.
To develop Hong Kong into an international hub for post-secondary education and high-calibre talents, the Government will constructthe Northern Metropolis University Town and establish the Task Force on Study in Hong Kong to promote the "Study in Hong Kong" brand.
Hong Kong is among the world's top three arts trading centres. The Government will step up efforts to build Hong Kong into a global premium arts trading hub by developing an arts ecosystem at the Airport City, deepening collaboration with Art Basel, and engaging the industry to carry out studies on taxation, financing, talent, and related areas of arts trading.
Facilitate stable living in a caring and inclusive society
This Policy Address concludes with the most extensive chapter concerning people's livelihood. It encompasses nine critical areas which are essential to the well-being of the community, covering land and housing, transport, healthcare, social welfare, labour protection and a caring and inclusive society. An array of measures will be launched to improve people's livelihood.
Safeguarding the basic housing needs of people of Hong Kong is the top priority of the Government. On the basis that the supply of Home Ownership Scheme (HOS) flats are substantially increasing, the Government will increase the ratio of quotas between Green Form and White Form to assist more public rental housing tenants to become owners. Other measures to enrich the housing ladder include increasing the ratio of larger units in HOS and Green Form Subsidised Home Ownership Scheme projects, increasing the quota of the White Form Secondary Market Scheme, relaxing the alienation restriction period of new flats for sale as well as launching the "Flat for Flat Scheme for Elderly Owners" of the Hong Kong Housing Authority's subsidised sale flats.
Regarding healthcare, the Government will strengthen primary healthcare services by increasing the Hospital Authority's Family Medicine Out-patient service capacity, launching the Chronic Disease Co-care Platform and putting in place a range of support initiatives promoting mental health.
To support the local economy and to better cope with the city's economic restructuring, the Government will introduce 11 measures to enhance support for small and medium enterprises, including providing concessions of fees and charges, earmarking an additional $30 billion to increase expenditure on works projects and expediting the approval process of applications for outside seating accommodation of restaurants. The Government will introduce a licensing arrangement allowing operators to let dogs enter their food premises. Pet-friendly restaurants will create new business opportunities for the industry.
To tackle the challenges of an ageing society, the Government will set up a Working Group on Ageing Society Strategies to formulate the relevant strategy responses covering areas such as elderly care, healthcare, housing, culture and leisure, gerontechnology, and to promote the further development of the silver economy.
To promote fertility, the Government will further implement the multi-pronged measures by extending the claim period of additional child allowance for newborns from one year to two years. Fifteen new aided child care centres will be set up over the next three years to provide about 1 500 day care service places for children between birth and 3 years old.
Mr Lee concluded, "Hong Kong faces challenges and is also presented with continuing opportunities amid the changing world. Our country, the world's second largest economy, is our staunchest supporter and the source of our biggest opportunities. Combined with Hong Kong's international prospects, our opportunities far outweigh the challenges. By working together, innovating, and embracing reform, we will turn our beloved Hong Kong into an even better home for everyone. The Pearl of the Orient will keep shining brighter than ever before."
A Supplement offering more backgrounds and details of various policy measures has been compiled with this year's Policy Address. For related information and key initiatives of the Policy Address, please visit www.policyaddress.gov.hk.
Ends/Wednesday, September 17, 2025
Issued at HKT 17:55
Issued at HKT 17:55
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