In first policy address, HK chief executive stresses economic link with mainland

Hong Kong Special Administrative Region (HKSAR) Chief Executive Carrie Lam Cheng Yuet-ngor on Wednesday stressed the importance of economic links with the mainland through programs such as the Belt and Road (B&R) initiative and the Guangdong-Hong Kong-Macao Greater Bay Area development plan.

Lam said that in the coming few years, Hong Kong will enter a period when opportunities and challenges co-exist, with the B&R initiative and the Bay Area development set to bring enormous opportunities for Hong Kong’s economy.

In the wide-ranging policy speech, her first since she took office on July 1, Lam also highlighted the economy, housing and the development of innovation and technology.

Hong Kong’s economy expanded by 4.0 percent in real terms year-on-year in the first two quarters of 2017.

“Barring abrupt negative shocks externally, our overall economic growth this year is expected to be higher than 3.5 percent, the mid-point in the earlier forecast range of 3-4 percent, and better than the annual average of 2.9 percent over the past decade,” she noted.

However, Lam said diversification of Hong Kong’s economy would be necessary in order to sustain these favorable trends. The Hong Kong SAR government is determined to boost the development of emerging industries in addition to traditional industries, and considers that both innovation and technology and the creative industries have a competitive edge and much potential.

Taking into account the investment returns previously injected into the Housing Reserve, the SAR government currently has a fiscal reserve in excess of HK$1 trillion ($128.2 billion).

“We are well positioned to use our accumulated fiscal surpluses, which are wealth derived from the community, to benefit the community,” she said, adding that meeting the public’s housing demands is a priority for the SAR government.