More assistance for SMEs

As you will appreciate, this year’s Policy Address was prepared amid an ongoing, unprecedented unrest in society. I and my colleagues have been making every effort to help Hong Kong ride out this storm over the past few months, so inevitably we could not devote as much time as we would like to this Policy Address. But still, as both Mr Gao (Yinxin) and Dennis (Ng) mentioned earlier on, we managed to put forward over 220 new initiatives, with many of them included not in my Policy Address text but in the Policy Address Supplement.

 

The Policy Address Supplement itself is a new attempt, because we are right in the middle of our five-year term. Replacing the traditional policy agenda, this Supplement does not only set out the new initiatives to be rolled out by the Government in the coming years, but also highlights the progress made. As I mentioned, we have passed about half of a term, so it’s a good occasion to account for what we have achieved in the last two years or so. We also highlight our beliefs in different policy areas, the progress made, and the challenges faced by Hong Kong. As far as economic development is concerned, which will be the focus of my speech in the next 10 minutes or so, my belief is to maintain Hong Kong’s competitiveness by consolidating our existing strengths, exploring new advantages, expanding economic and trade ties with the world, and fostering closer exchange and co-operation with the Mainland.  

 

Last year when I spoke at this luncheon, I described the 2018 Policy Address as a pro-business Policy Address. The chapter on “Diversified Economy” was the most substantive section in the Policy Address last year, taking up almost 22% of the words. In fact, in the first two years of my term, I put the emphasis in my Government being a facilitator and a promoter, and put in place many initiatives to facilitate the work of the business, including two tax reduction measures – the two-tiered profits tax to assist SMEs and the super tax deductions to incentivise private companies to invest in R&D. During that period, I and my Principal Officials, notably the Financial Secretary and the Secretary for Commerce & Economic Development, had led business delegations to our overseas markets and the Mainland. I still have very fond memories of our joint promotional Hong Kong events in London, Tokyo, Bangkok, etc, and in attending together with many of you the Belt & Road International Summit in Beijing and the inaugural China International Import Expo in Shanghai. Together with many of you from the business chambers, we proudly tell the Hong Kong story.

 

The situation we are facing now is obviously very different, more challenging and inevitably distressing. The challenges ahead are complicated both externally and locally. Externally, the China-US trade disputes and conflicts in the technology arena have increased the downside risks facing the global economy. The International Monetary Fund recently revised the global economic growth rate forecast for this year downward to 3%, which is the lowest growth forecast since 2009. Combining with the uncertainty of Brexit in the United Kingdom and tense geopolitical situation in the Middle East, there is downward pressure on the global and Hong Kong economic growth trends. Our economy only expanded modestly by 0.5% in the first half of this year, marking the weakest economic performance since the recession in 2009. The advance estimates on the GDP for Quarter 3 will be announced later this afternoon, and frankly there is no room for optimism. If Q3 continues to reflect a negative growth from Q2, Hong Kong will unfortunately enter a recession technically.  

 

While external uncertainties have brought up immense pressure, I would say that the local situation is much more worrying. Hong Kong has proven time and again that we can withstand external economic shocks, be it the Asian financial crisis in the late 1990s or the financial tsunami 10 years ago, but then what is happening in Hong Kong now is unprecedented. From being one of the safest cities in the world, there have been extensive conflicts and violence in various districts in Hong Kong over the past four months. A handful of rioters initiated attacks and sabotages in an organised and planned manner. They doxxed and beat people holding different views, vandalised public facilities, set fires in MTR stations and shops, and hurled petrol bombs at police officers, spreading chaos and fear in Hong Kong and seriously disrupting people’s daily lives.

 

Inevitably, the economy will be hard hit. Surveys showed that local business sentiment has turned extremely pessimistic in recent months. The impact is most obvious in some of the services industry. Visitor arrivals started to fall since the middle of July, followed by a widening drop of 30 to 40% in August and September. In the first half of October, the drop was about 50%. Retail sales volume showed an enlarged fall of 25% in August compared to last year. The catering industry is also hard hit and hundreds of restaurants may have to be closed if the situation persists. All these figures are very alarming, especially if you consider the fact that these relevant industries now employ some 600,000 people.

 

Due to the economic challenges ahead, the Financial Secretary has announced in three rounds in the past three months, that is August, September, October, a wide range of initiatives to support enterprises, safeguard jobs, stabilise the economy and strengthen livelihood. Many of the measures target at small and medium enterprises which account for over 98% of local enterprises and around 45% of total employment in Hong Kong.

 

To assist our SMEs to cope with the operating pressure in the current economic environment, we have announced to waive 27 groups of government fees and charges for 12 months to benefit a wide range of sectors from logistics, retail, catering, tourism, construction, to agriculture & fisheries. Rent reduction by 50% for six months will be provided to tenants of various government business premises. We have announced new initiatives to help our SMEs cope with liquidity problem by offering loan guarantee under more relaxed terms. We have also called on banks to support SME borrowers without undermining their credit policies and risk management principles. In addition, the Monetary Authority has adjusted its requirements on banks, which is expected to make available an additional funding of around $200-$300 billion for lending. We have also called upon real estate developers to provide rental concessions to tenants under such dire situation.

 

Targeting at the hard-hit sectors, we shall provide a six-month fuel subsidy to 61,000 taxi and mini bus drivers, 180 public transport operators and 130,000 drivers of registered commercial vehicles, and a one-off survey fee subsidy for 6,300 local commercial marine vessels. On the tourism front, together with the Tourism Board and the Travel Industry Council, a new measure will be launched in November to provide travel agencies with incentive payments based on the number of visitors or travellers they serve in order to support their operation.

 

The supporting measures mentioned cost a total of about $21 billion. Together with the one-off relief measures announced in the 2019-20 Budget- many of which have yet to be implemented because they are waiting for Legislative Council’s approval-which cost $43 billion, all the measures with a total sum of around $64 billion are expected to provide a 2% impetus to our economy.

 

Although the launch of the various rounds of supporting measures may cause fiscal deficit, we consider that we need to spend the money, and we do have the ability to spend. Our economic fundamentals are robust, as evidenced by a sustained current account surplus, strong fiscal reserves, abundant foreign exchange reserves, and a huge net international investment position. The Government will not hesitate to utilise our financial reserves to implement timely and suitable countercyclical measures, so as to stimulate the economy and relieve people’s hardship. Now that we have so many business leaders in the audience, I will ask you to contact and liaise with my colleagues, so that we can proactively engage business chambers to listen to your concerns and suggestions for explicit and tangible measures that we can introduce further.

 

In addition to policy initiatives and support measures, I have emphasised in the 2019 Policy Address the importance of a sustained economic growth. We will continue to play the role of facilitator and promoter, making efforts to increase land supply, nurture talent, promote external affairs, improve the business environment and implement tax concession measures with a view to enhancing the competitiveness of Hong Kong. For example, to attract companies to develop ship leasing business in Hong Kong, we will implement the measure announced in last year’s Policy Address by introducing a bill into the Legislative Council next year to provide tax concessions for qualified ship lessors and qualified ship leasing managers. On top of that, I announced in this year’s Policy Address Supplement that we plan to introduce tax concessionary measures to encourage more commercial principals of the maritime industry, such as ship managers, ship brokers and ship agents, to set up presence in Hong Kong. I appeal to industry leaders to come up with similarly effective proposals to help Hong Kong excel.

 

We will also continue our efforts in attracting foreign investment. Indeed, we are very encouraged by the result that over 9,000 Mainland or overseas companies have presence in Hong Kong as reflected in our latest survey as at June this year. Among them, over 1,500 are regional headquarters, representing a 9.1% increase over 2017. There is also a very encouraging growth of over 40% in the number of start-ups in Hong Kong during the two-year period between 2017 and 2019, bringing the total number to over 3,000.

 

It is essential that we continue to expand overseas and Mainland markets, and we have done a lot in the past two years. We doubled the number of free trade agreements signed with other economies, and established our 13th overseas economic and trade office in Bangkok, Thailand. We are working hard with a view to opening our 14th Economic & Trade Office in Dubai, and we hope to bring you some good news on that very soon. We will organise delegations and invite Mainland and Hong Kong enterprises to conduct joint promotional activities in the Belt & Road economies.  As highlighted in my 2019 Policy Address, we will seek policy support of the relevant Central Government authorities for facilitating Hong Kong enterprises to set up businesses in the Mainland’s overseas Economic & Trade Co-operation Zones in some of those Belt & Road countries. For the Mainland, we are seeking the policy support of the relevant Central authorities for, among others, tax concessions for Hong Kong enterprises and streamlining of the relevant approval process, with a view to enhancing their competitiveness to tap this vast consumption market.  For the SMEs who need a bit of help in going out, the Dedicated Fund on Branding, Upgrading & Domestic Sales, that is BUD Fund, and the SME Export Marketing Fund have already been enhanced to provide support.

 

I am sure all of you would support the initiatives that we have put in place. In fact, I note that the chambers have all issued positive statements in response to my Policy Address, for which I am extremely grateful. However, I also note one point in common in your statements, which was repeated by Dennis in his opening remarks. You all want to see the violence in society to stop. Indeed, during our recent communication with the business sector including overseas enterprises, many of the business people said they did believe that the unique position and advantages of Hong Kong offer numerous investment and development opportunities. However, they were worried about the violent acts and damage to infrastructures, which led them to defer their investment plans.

 

On this, I would like to emphasise the Government’s determination to stop violence, and our commitment in ensuring the comprehensive and effective implementation of the “one country, two systems” principle in Hong Kong. Despite the difficult external and domestic environment, Hong Kong retains its core strengths as an international financial centre with an unrivalled geographical location, the rule of law, an independent judiciary, the free flow of information and a wide pool of professional talents. Hong Kong’s institutional strengths and core competitiveness are still intact and widely recognised by many international agencies. Our financial system continues to run smoothly. Just last month, the Global Financial Centres Index once again ranked Hong Kong among the world’s top three financial centres, behind only New York and London. The Swiss-based World Competitiveness Yearbook recently named Hong Kong the world’s second-most competitive economy. And, earlier this month, the World Economic Forum’s Global Competitiveness Report ranked Hong Kong third, up from last year’s seventh place.

 

It is true that Hong Kong is going through a testing time, and I appeal to all of you to work together with us, to stand up against violence, so that social order can be restored. Once that is achieved, the Government will collaborate with relevant organisations, chambers of commerce and professional bodies to devote more efforts and more resources to carry out promotional work and other measures to rebuild international confidence in Hong Kong.

 

At the same time, I and my team are looking to address the deep-seated conflicts in society as revealed by the social unrest. We will continue to talk to people, and through continuing dialogue, I believe we will not only find a peaceful way forward, but also make Hong Kong even stronger than before.

 

Chief Executive Carrie Lam gave these remarks at the Joint Business Community Luncheon held at the Convention & Exhibition Centre on October 31.

via Moroccan Trader More assistance for SMEs

Priority is to end violence

The International Monetary Fund (IMF) released earlier this month its latest “World Economic Outlook,” downgrading growth in 2019 to 3%. That is the slowest pace we have seen since the global financial crisis more than a decade ago. The IMF puts the blame on – and I quote – “a sharp deterioration in manufacturing and global trade, with higher tariffs and prolonged trade-policy uncertainty damaging investment and demand for capital goods.”

 

To be discreet, weakened trade relations between the United States and Mainland China are central to the IMF’s concerns – and, I should think, the concerns of all of us in this room.

 

At the 2017 Asia House conference, I mentioned the worrying signs of rising protectionism. At the time, I was speaking of economic inequality, noting that the gains of globalisation were not being broadly enjoyed, that we needed to find ways of making economic development more inclusive. I certainly did not anticipate the turmoil and the conflict now facing international trade and the global economy, but I am quite sure I am not alone in that.

 

The overall outlook, again to quote the IMF, “remains precarious.” Hardly good news for global trading, and certainly not for Hong Kong, a major entrepot for trans-Pacific trade and commerce, an economy powered largely by small and medium enterprises. In the first half of 2019, Hong Kong’s economy grew by just 0.5%. Full-year results are likely to be no better. In terms of trade for the first nine months of 2019 as a whole, the value of total exports of goods dropped by 4.6% over the same period in 2018. Concurrently, the value of imports of goods decreased by 6.5%. Apart from trade, related service sectors, including shipping and logistics, have also been affected by the global slowdown. As uncertainties in the external environment will likely persist for some time, the near-term outlook remains dismal.

 

Added to the external challenges are our internal social disruptions, which are so unfamiliar to Hong Kong – a law-abiding city which is one of the safest in the world. Triggered by objection to a legislative proposal aimed at plugging a legal loophole and strengthening mutual legal assistance on criminal matters including the surrender of fugitive offenders, what started off as peaceful protests, a hallmark of Hong Kong’s rights and freedoms, have turned into violent acts by rioters, despite the Government’s withdrawal of the bill. The increasingly violent reality since June is hurting Hong Kong’s economy. The continuing unrest has crippled our retail trade, as well as catering, transport and numerous other businesses associated with the tourism industry. In the first half of this month, the number of visitors dropped by about 50% compared to last year. As for retail, the latest figure we have is that retail sales in August fell by some 25% from a year earlier, which is the steepest year-on-year decline for a single month on record.

 

It is a distressing time for Hong Kong trade and business. Equally so for the community at large, for the Hong Kong SAR Government and for myself. Nothing justifies violence and our first priority must therefore be to end violence and restore law and order as soon as possible. Hong Kong Police, which has displayed courage and restraint as well as every agency in the government, are working in concert with determination to achieve that single objective. Once calmness returns, we are committed to finding solutions to some of those deep-seated problems revealed by the extensive protests over these past four months, including probably the social divide and insufficient inclusive growth I touched upon in my speech two years ago.

 

For that purpose, I have been in direct dialogue with the community, speaking and listening to individuals and groups, large and small. I have also undertaken to invite community leaders, experts and academics to conduct an in-depth and independent examination of the social conflicts in Hong Kong and the deep-seated problems that must be addressed.

 

For example, two weeks ago, I delivered my annual Policy Address, presenting significant measures focused, in particular, on housing and land supply – two of the biggest challenges we face in creating long-term harmony and inclusivity here in Hong Kong.

 

We are also responding to the very real economic hardships business here is struggling with. In August, September and again just last week, my Government has announced substantial support measures. Taken together, they add up to over $20 billion. The initiatives are designed to help small business through this trying time, designed, too, to help the people of Hong Kong cope with the community-wide crisis.

 

The actions I mentioned are not meant to be the solution to the problems that Hong Kong is facing today. Indeed, for any of our actions to achieve the desired effect, it is important that we hold fast to the principles that have made Hong Kong one of the world’s most successful financial and trading economies.

 

Those principles are clear and immutable. First, we must adhere to the “one country, two systems” principle that distinguishes Hong Kong from any other economy in the world. Indeed, events unfolding in the past few years clearly affirm that we must both adhere to the “one country” principle and respect the differences of the “two systems”.

 

Second, the rule of law – the cornerstone of Hong Kong’s remarkable success – must be safeguarded at all costs. That includes strict and impartial enforcement of the law, and acceptance of its preeminence by the people of Hong Kong.

 

Third, we must continue to embrace the institutional strengths that have shaped our international success so well for so long. I’m talking here of such fundamental values as our independent judiciary, our robust regulatory bodies, our clean government, our free press, the free flow of capital, people and information, and our longstanding commitment to human rights.

 

We must, as well, find a way of returning trust to a divided community. This is of course incumbent upon this speaker and my Government. And we will not rest – I will not rest – until we have found a peaceful, harmonious and inclusive path to the future for Hong Kong. If you ask me if I have confidence in that vision, I do. That indomitable spirit of Hong Kong will see us through this testing time.

 

So, yes, we are contending with two very considerable changes since we last talked. What has not changed, I am pleased to tell you, is the stability of Hong Kong’s financial system. Our currency remains freely convertible, and our banking system, flow of funds and stock market are all functioning as you would expect of a global financial capital. It is why, just last month, the Global Financial Centres Index once again ranked Hong Kong among the world’s leading financial centres, behind only New York and London.

 

Our deep pool of multi-talented, multilingual professionals drive Hong Kong’s financial services. Alongside their wide-ranging expertise, what makes Hong Kong’s financial services sector so universally accepted and respected is our unwavering belief in the primacy of free and open trade, Hong Kong, after all, is a founding member, and steadfast supporter, of the World Trade Organization.

 

That unshakable commitment is why, earlier this month, the World Economic Forum’s Global Competitiveness Report ranked Hong Kong third – up from seventh in the world last year. It is why the Washington-based Heritage Foundation has named Hong Kong the world’s freest economy for 25 years in a row. It is why we finished second in this year’s World Competitiveness Yearbook, produced by the Swiss-based International Institute for Management Development. It is also why Hong Kong ranked third globally among 190 economies, moving up one place from last year, according to the World Bank’s Doing Business 2020 Report published last week.

 

What has not changed is Hong Kong’s international connectivity and the high degree of autonomy of the HKSAR in conducting her external affairs. Hong Kong is singularly blessed in serving as the multilevel, multilateral business bridge between the Mainland and the rest of the world. It presents us with opportunities available to no other economy and my Government has leveraged on this strength by reaching out and creating connections wherever we can find them. Hence our promotional slogan “Connect and Excel”.

 

When I last spoke before you, Hong Kong had just forged a Free Trade Agreement (FTA) and related Investment Agreement with ASEAN, the Association of Southeast Asian Nations. The agreements have now entered into force for Hong Kong and six of ASEAN’s Member States, and we expect full ratification of the two Agreements by all ASEAN Member States before year’s end. ASEAN is Hong Kong’s second-largest merchandise trading partner, just behind the Mainland of China. Last year, our bilateral trade in goods amounted to some US$130 billion, up more than 14% compared to 2017. Hong Kong, not surprisingly, is home to over 600 ASEAN companies.

 

ASEAN’s huge infrastructural investment, together with its fast-expanding economy, will generate far-reaching opportunities for Hong Kong companies, and the companies that partner with Hong Kong. We are working to fast-track that promise by expanding our ties with the 10 nations of ASEAN. In February this year, we set up a new Hong Kong Economic & Trade Office (ETO) in Bangkok, Thailand. It is our third ETO among ASEAN member states, joining offices in Singapore and Jakarta.

 

Our ambitions extend well beyond ASEAN. So, too, do our free trade agreements. We now count eight FTAs, having concluded free trade agreements with Georgia in June last year and Australia just seven months ago. We are also working to join the Regional Comprehensive Economic Partnership, a free trade agreement between ASEAN and six of its FTA partners.

 

We are also exploring trade options with the United Kingdom following the launch, two years ago, of our Strategic Dialogue on Trade Partnership. That includes the possibility of an FTA down the Brexit road, wherever that road may take the UK. It certainly makes compelling business sense. In 2018, the UK was Hong Kong’s second-largest trading partner among the European Union’s member states, while Hong Kong was the UK’s eighth-largest trading partner outside the EU.

 

What has not changed, ladies and gentlemen, is the Central Government’s support for our economic integration with Mainland China. Hong Kong is playing an active part in our country’s two far-reaching initiatives: the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Belt & Road. In each of these national developments, Hong Kong sees long-term opportunities.

 

The Greater Bay Area brings together Hong Kong, Macau, the two special administrative regions, and nine of southern China’s most prosperous cities in a cluster development. This enormously promising market counts a population of 71 million and a collective GDP of US$1.6 trillion. That is similar to the GDP of Australia or the Republic of Korea.

 

The Greater Bay Area will be built on co-operation rather than competition. Each of the 11 cities will lead the way in its fields of expertise. For Hong Kong, the window to the world for the Greater Bay Area, we will drive the region’s financial services and trade development, as well as transport and innovation and technology. The GBA development is premised on one country, two systems, three customs territories and three currencies. This is unprecedented around the world and calls for boldness and innovation in trying out a new path.

 

On finance, companies in the Greater Bay Area will look to the Hong Kong Stock Exchange to raise capital through IPOs and bonds – green bonds included. Hong Kong is emerging as a centre for green finance. Total green bonds issued in Hong Kong amounted to US$11 billion last year. And in May this year, the Hong Kong SAR Government issued its inaugural green bond, attracting orders more than four times its issuance size. In addition, we are looking to expand channels for two-way, cross-border renminbi fund flows. That would only accelerate financial co-operation within the Greater Bay Area.

 

Hong Kong’s services prowess extends well beyond financial services. Our accountants, lawyers and legal and dispute resolution experts, as well as education, construction and medical professionals, among many others, are world-class. They will help open up the Greater Bay Area to a world of business opportunity.

 

Innovation and technology (I&T) will be at the heart of the bay area development, and Hong Kong is destined to play a key role in this sector with our renowned universities and our pool of research talents. My Government, in just over two years, has invested about US$13 billion or about HK$100 billion in I&T programmes and initiatives, including two research clusters now rising at the Hong Kong Science Park. One will target artificial intelligence and robotics; the other will focus on healthcare technology. And, in partnership with Shenzhen, we are developing a major innovation and technology park in Hong Kong, near the boundary with Shenzhen.

 

My Government has been working with Guangdong and Macau to market the Greater Bay Area overseas, including promotions in Tokyo in April this year and Paris last year. We will do the same in Australia in the coming year.

 

Hong Kong’s recognised fundraising expertise and financial services talent will also help power the Belt & Road Initiative. We have the experience and the international connections to match international fundraisers and investors with project owners from the Mainland and around the world. Our financial options are extensive, ranging from IPOs and post-listing arrangements to bond issuance, load syndication and much more. And, as the renminbi grows as a currency of choice for Belt & Road projects, we will also play a vital role in its use and management. Hong Kong, after all, operates the largest pool of offshore renminbi funds in the world, as well as the largest offshore renminbi foreign exchange and interest-rate derivatives markets.

 

Hong Kong will also contribute to capacity building in some of the Belt & Road countries to enhance people-to-people bonds in this major global initiative. Our anti-corruption agency, universities, training academies, etc are already providing advisory and training support to participants from the Belt & Road countries. In my latest Policy Address, I announced that the Government will assist local enterprises and professional services to not only explore these new overseas markets, but also to consider setting up businesses in the Mainland’s Economic & Trade Co-operation Zones along the Belt & Road by extending to Hong Kong enterprises the incentives and facilitations currently enjoyed by Mainland enterprises.

 

So ladies and gentlemen, despite our deeply concerning community issues and the rather negative perceptions of Hong Kong overseas as we have been unfairly portrayed, let me end by emphatically saying that Hong Kong will continue to play a pivotal role in global trade, and my Government will double our efforts to reconnect.

 

Chief Executive Carrie Lam gave these remarks at the Asia House Future of Trade conference on October 30.

via Moroccan Trader Priority is to end violence

Dialogues with young lawyers: SJ

Young people are the future masters of our society, their visions are important to us. The Law Society of Hong Kong earlier arranged a group of young lawyers to meet with me in two evenings. In the two-hour meetings with a small group of some 10 or 20 lawyers, we had a very frank and sincere conversation on the current situation in Hong Kong and the initiatives of this year’s policy address.

 

It is of utmost importance to take into account the views from the youth when we are thinking about how to ride out the storm. I explained to them the Government’s position in the meetings. Some of them shared a similar view with the Government but some took a different stance. I appreciated their thoughts which I would explore further with my colleagues. Although it is unlikely that a single meeting will give to an instant solution, I think it does provide a basis for the Government to formulate policies in future in a bid to finding a way out.

 

I also took the opportunity to give them a brief introduction on our initiatives in this year’s Policy Address. The initiatives under the purview of the Department of Justice were indeed submitted to the Chief Executive for consideration after we had consulted the legal sector. This reflected that we attached great importance to the suggestions made by different sectors in the community. I wish that those from the legal sector can frankly let me know their views when we have the chance to meet in future. I will do my best to put any feasible suggestions into practice.

 

In the Policy Address, we plan to provide support for our legal talents to participate in international legal bodies such as the Hague Conference on Private International Law and UNCITRAL. We came up with this idea after hearing from the legal sector that our legal professionals should be encouraged to showcase our strengths in the legal service to the rest of the world. We will support them to take up important positions in renowned legal organisations. While they can experience for themselves different legal systems, I also wish that they can become Hong Kong’s ambassadors to promote our legal systems and competitive edges.

 

Another new initiative, “Vision 2030 for Rule of Law” is also in the pipeline. As a long term commitment, we aim to promote and reinforce the rule of law through academic and professional exchanges, research and capacity building. We have taken into account the views that more publicity has to be arranged to demonstrate the importance of the rule of law.

 

The Pilot Professional Exchange Programme mentioned in the Policy Address has been formally rolled out. We invite qualified lawyers to participate in a short attachment to the DoJ to facilitate exchanges of knowledge and experience with government counsel. This would help us keep abreast of developments in the legal industry. Reference was made to a proposal from a legal body when we formulated this programme. At the meetings with the young lawyers, I also encouraged them to take part in this exchange. More details can be found on the DoJ’s website.

 

I am enthusiastic in continuing to meet with people from different sectors of the legal profession. While some may be skeptical about the effectiveness of having dialogues, I think it would be much more difficult in reaching a consensus in the absence of basic communication. The chaos has been going on for four months. I hope that violence could be stopped. I also look forward to engaging with the public in constructive dialogues to break the impasse.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on October 28.

 

via Moroccan Trader Dialogues with young lawyers: SJ

More support for ethnic minorities

As a free and pluralistic society, Hong Kong embodies rationalism, inclusiveness, harmony and diversity. Such core values not only make the people of Hong Kong proud, but also serve as the cornerstone for maintaining the long-term prosperity and stability of Hong Kong. We should dearly cherish these characteristics as they are the result of the hard work of generations of Hong Kong people.

 

The population of ethnic minorities (EMs) has increased by about 70% over the past decade. Excluding some 390,000 foreign domestic helpers, the EM population now stands at about 263,000, making up about 3.8% of the whole population of Hong Kong. About 30% of them (about 80,000) are South Asians (including Indians, Pakistanis and Nepalese). Like Hongkongers, generations of EMs have established their roots in Hong Kong with many of them born and bred here, calling the city their home.

 

EMs have largely achieved self-reliance through employment and their labour force participation rates (LFPR) are relatively high. The LFPR of male EMs is about 79.9% (which is higher than that of the overall male population of 69.7%), while the LFPR of female EMs is about 51.2% (which is on par with the overall female population. It is worth noting that female Nepalese maintains a high LFPR of 63.2%). As an important source of manpower supply for Hong Kong, their potential should not be overlooked.

 

The Government has all along been committed to building a caring and inclusive society and providing comprehensive support for EMs to facilitate their enjoyment of equal opportunities and integration into the community. The Steering Committee on Ethnic Minority Affairs chaired by me endeavours to enhance cross-bureau and inter-departmental co-ordination in supporting EMs.

 

During the past few months, I met with different EM communities and visited EM centres to listen to their views. Among them, students and youths expressed to me their difficulties in learning Chinese and concern over their career prospects.

 

In the various initiatives implemented by the Government to provide support to EMs, many of them were conceived from suggestions from EMs. Our bottom-up approach in encompassing stakeholders’ views in policy formulation is a good example of our new proactive approach and down-to-earth response in addressing our people’s needs. Our measures to support EMs in this year’s Policy Address include:

 

To help schools implement the Chinese Language Curriculum Second Language Learning Framework and build an inclusive campus, starting from the 2020-21 school year, all schools admitting non-Chinese speaking (NCS) students will be provided with additional funding. Those schools admitting a relatively small number of NCS students (i.e. ordinary schools admitting less than 10 NCS students and special schools admitting less than six NCS students) will be provided with a new two-tiered subsidy with additional funding, the amount of which will increase from the current level of $50,000 to $150,000 or $300,000. It is estimated that about 400 eligible schools will benefit in the 2020-21 school year; The Education Bureau (EDB) will continue to provide teacher professional development programmes, school-based professional support services, and learning and teaching resources, etc., and will also explore how to gauge the progress of NCS students in learning the Chinese language through longitudinal studies; Starting from the 2020-21 school year, the EDB will commission tertiary institutions or non-governmental organisations to offer parent education programmes specially designed for parents of NCS students to help them support their children’s learning and understand the multiple pathways available to their children; An Ethnic Minority District Ambassador pilot scheme will be launched in nine districts with higher EM population in 2020-21. A total of 46 EM service ambassadors will be recruited to enhance EM services provided by district centres/service units as well as to provide more employment opportunities for EMs; Arrange translation and production of more publicity and educational materials in EM languages to enable EMs to make better use of the services offered by the Department of Health, and enhance the effectiveness of health education on communicable diseases, non-communicable diseases and mental health, etc.; and The disciplined services will enhance their recruitment and outreaching work to encourage EMs to join the services and will, through school outreaching and Junior Police Call activities, have more interaction with EM children and adolescents.

At the same time, out of the comprehensive package of measures announced by the Government last year to enhance support for EMs (which involved an expenditure of over $500 million and covered initiatives in education, employment, social welfare and social integration), many of the measures have been implemented or will be rolled out progressively. They are expected to yield considerable results (Table 1).

 

To sustain the development of Hong Kong and improve people’s livelihood, we must put our heads together. Let us work hand in hand with EMs in Hong Kong to build a harmonious and inclusive society.

 

Support Measures for Ethnic Minorities (Table 1)

Policy Area

Measures

Education

Enhance the subsidy for kindergartens admitting non-Chinese speaking (NCS) students; Continue to commission tertiary institutions to provide professional support services for schools on Chinese language learning and teaching of NCS students; Provide additional funding support for public sector mainstream schools admitting NCS students with special educational needs; and Support NCS students in their learning of Chinese History.

(Resources to be spent in the four financial years starting from 2019-20: about $294.4 million)

Support for Employment

Enhance the manpower of the Labour Department to launch a pilot programme in conjunction with non-governmental organisations (NGOs) to provide employment services for EM job seekers through a case management approach; The Civil Service Bureau (CSB) has completed a comprehensive review on the Chinese language proficiency requirements (LPRs) for all civil service grades, with an increase in the number of grades that have lowered/ ill lower such requirements by 22 to a total of 53. The CSB will remind Heads of Departments/ Head of Grades to regularly review the Chinese LPRs of grades under their purview to ensure that such requirements are relevant to and commensurate with satisfactory performance of the job. The Employees Retraining Board has expanded the Chinese language courses and designated industry-specific training courses and allows more flexibility in student enrolment; Enhance recruitment and outreaching efforts to encourage EMs to consider a career in the disciplined services; and More than 10 students have completed their internship in the Government’s short-term internship programme for non-ethnic Chinese (NEC) university students this summer at a monthly allowance of $10,500. The CSB will review the programme and consider increasing the number of internship places and inviting nomination of more NEC university students to participate in the programme.

(Resources to be spent in the four financial years starting from 2019-20: about $30.1 million)

Social Welfare

Commission NGOs to set up designated outreaching teams to proactively reach out to and connect EMs in need to mainstream welfare services; Strengthen prevention and support services for EMs against domestic and sexual violence; Set up specialised EM units in five parents/relatives resources centres for persons with disabilities; and Provide additional subsidy for special child care centres and early education and training centres with pre-school EM children with special needs admitted.

(Resources to be spent in the four financial years starting from 2019-20: about $129.3 million)

Promote Cultural Sensitivity and Social Integration

The Constitutional & Mainland Affairs Bureau will improve the Administrative Guidelines on Promotion of Racial Equality by 2019 for application to all government bureaus and departments and related organisations providing services for EMs; The Civil Service Training & Development Institute has provided more cultural sensitivity/equal opportunities training for civil service new recruits and front-line staff; The Home Affairs Department (HAD) has enhanced the translation services in the CHEER Centre and introduced new translation service in Vietnamese; The HAD has implemented the District-based Programmes for Racial Harmony since August this year to encourage interaction and exchange between the EM and local communities; Enhanced services of the support service centres for EMs have been introduced; and More activities have been organised by the disciplined services to strengthen engagement with EM adolescents.

(Resources to be spent in the four financial years starting from 2019-20: about $154.7 million)

 

Chief Secretary Matthew Cheung wrote this article and posted it on his blog on October 27.

via Moroccan Trader More support for ethnic minorities

HK retains core strengths

I would like to come back to Hong Kong and review with you many of the key ingredients that have enabled Sweden and Estonia to be successful in financial innovation.

 

First, like Sweden and Estonia, Hong Kong is a leading digital economy, consistently achieving top rankings in digital readiness and Internet access capabilities. Hong Kong currently has 11 submarine cable systems and overland systems. Our broadband networks cover nearly all commercial and residential buildings, and our household broadband penetration rate is around 93%. Our mobile penetration rate of 276% is also among the highest in the world. Free public Wi-Fi service is available in most public places such as major parks, tourist attractions and leisure and cultural facilities.

 

So we are all fortunate to be living and studying in a city with one of the most sophisticated telecommunications infrastructure in the world. This is the foundation for you to become digitally connected and have global access to ideas and information.

 

Secondly, in terms of education, our government recognises the need to equip our students with the skills required in the 21st century. For fintech specifically, the Hong Kong Monetary Authority operates the Fintech Career Accelerator Scheme, which aims to provide practical experience for undergraduate and postgraduate students through internships in fintech companies in Hong Kong and Shenzhen. These initiatives are in addition to the Government’s pilot programme for talent training in the wealth and asset management and insurance sectors for existing professionals. And that was rolled out in 2016.

 

Six of our universities are offering fintech degree undergraduate or postgraduate programmes. I encourage all of you to be intellectually curious, whatever degrees you are pursuing, and be observant of the opportunities brought about by the new economy. Indeed, both formal and informal education are important for gaining knowledge and experience as you develop your career in financial services and fintech.

 

Thirdly, like Sweden, Hong Kong is a small and open economy vulnerable to the influence of the external environment. Hong Kong is a place where you can develop an international outlook and perspective. In fact, I am pleased to note that one in four university students in Hong Kong participates in exchange programmes lasting at least one semester during their time in university.

 

The Government has been operating a new Funding Scheme on International Youth Exchange since 2017, and we are also launching the Belt & Road Scholarships to encourage outstanding students along the Belt & Road economies to pursue studies in Hong Kong. This provides students in Hong Kong the opportunity to make acquaintances and understand the culture and business environment along the Belt & Road. Hence, I encourage all of you to keep abreast of international developments and develop a truly global mindset.

 

Here I should add that the Guangdong-Hong Kong-Macao Greater Bay Area provides a key driver for Hong Kong to develop innovation and technology with the tech community in Shenzhen and the rest of the Greater Bay Area. Hong Kong universities are very strong in basic research whereas the tech companies in Shenzhen are very good in commercialisation of tech ideas and innovations. So there can be great synergy here and I encourage you to make good use of such collaboration opportunities.

 

I&T investment

After talking about the three factors of tech infrastructure, education and international outlook and opportunities, let me turn now to our government investment in innovation and technology.

 

While the Swedish and Estonian governments had an early start towards digital government and smart city, our Government has for some years also placed innovation and technology at the heart of the policy agenda.

 

This administration has committed over $100 billion to promoting research and development, nurturing local talent, attracting international expertise and supporting technology enterprises. These include $10 billion to establish two world-class research clusters in the Hong Kong Science Park. One is on healthcare technologies and the other is on artificial intelligence and robotics technologies. This initiative has received enthusiastic responses from many top universities around the world.

 

In fintech, the Cyberport community is one of the largest fintech clusters in Asia and is pressing ahead in areas such as InsurTech, or insurance technology, RegTech, or regulatory technology, and LawTech, or legal technology. So I would really encourage all of you to take advantage of the many new initiatives in innovation and technology here in Hong Kong.

 

Impressive achievements

Finally, let me share with you two international rankings released just this month that reflect Hong Kong’s impressive achievements as Asia’s World City. In the World Bank’s Doing Business 2020 Report released just two days ago, Hong Kong was ranked third in the ease of doing business out of 190 economies. This puts us behind New Zealand and Singapore, and ahead of Denmark and South Korea in 4th and 5th places. Our high ranking reaffirms our efforts to cut red tape and enhance regulatory efficiency and reflects our favourable environment for businesses to flourish.

 

Similarly, in the World Economic Forum’s Global Competitiveness Report published this month, Hong Kong was ranked 3rd globally among 141 economies, up four places from last year and ranked just behind Singapore and the United States. Among the different measures, Hong Kong was ranked within the top five for institutions, infrastructure, information and communications technology adoption and macroeconomic stability.

 

In conclusion, I would note that despite the difficult external and domestic environment, Hong Kong retains its core strengths as an international financial centre with an unrivalled geographical location, the rule of law, an independent judiciary, the free flow of information and a wide pool of professional talents. These took over a century to build, with countless hard work, sweats and tears. We rely on young people like you to safeguard our achievements and efforts built over these years.

 

Secretary for Financial Services & the Treasury James Lau gave these remarks at the Financial Services Development Council Career Day 2019 on October 26.

via Moroccan Trader HK retains core strengths

HK a bi-directional gateway

I would first like to express my sincere gratitude to the Office of the Commissioner of the Ministry of Foreign Affairs (OCMFA) for co-organising with the Hong Kong Special Administrative Region Government this meaningful forum in Hong Kong, particularly at a rather difficult time. This once again manifests the Central Government’s recognition of Hong Kong as a well-established platform to promote the exchange of expert views and cultivate international collaboration.

 

As a co-host of this forum, I would like to extend a very warm welcome to all political leaders, business elites, distinguished scholars and heads of think tanks who have come to join this forum and share your valuable insights, especially those friends who have flown across the globe to Hong Kong to show their support. My special thanks also goes to Governor Ma and Secretary Leong, who have respectively led their delegations of Guangdong and Macau to Hong Kong to participate in this forum.

 

Last time when I was here in this same venue, actually with many of the guests in the audience, also on the topic of the Greater Bay Area, was the promulgation of the Outline Development Plan in February this year. Since then, we have a lot of advancement in the Greater Bay Area development, the most significant being the new policies announced after the second plenary meeting of the Leading Group chaired by Vice Premier Han Zheng, attended by me and Chief Executive Chui of the Macau SAR, Guangdong Party Secretary Li and Governor Ma, as well as the representatives of over 20 central ministries and commissions. To name a few, these policies include providing tax relief by Guangdong municipal governments for non-Mainland, including Hong Kong, high-end talents and talents in short supply who work in the Greater Bay Area, encouraging innovation and entrepreneurship amongst the youth of Hong Kong and Macau in the nine Mainland cities of the Greater Bay Area, facilitating vehicles from Hong Kong and Macau entering and exiting Mainland ports, and expanding the implementation scope of the connection with the Speedy Customs Clearance between Customs administrations. The Guangdong Provincial Government and the Hong Kong and Macau SAR Governments are working closely to ensure that new policy measures are smoothly and successfully implemented to further enhance the flow of people, goods and information within the Greater Bay Area. Since the promulgation of the Outline Development Plan, promotional events conducted by the three governments have taken place at the China Development Forum held in Beijing and a major Greater Bay Area Conference in Tokyo.

 

Bay area role

Let me now turn to Hong Kong’s roles in the Greater Bay Area development. Various external and domestic headwinds Hong Kong has been facing this year have reinforced my belief that the Greater Bay Area provides new impetus to our economy and creates development opportunities for our people. With the promulgation of the Outline Development Plan, a perfect niche for Hong Kong has been scoped. We remain committed to the plan we have and we would build for the long-term future of Hong Kong. Our city is well positioned and has solid institutional strengths which enable us to take a more proactive role in the Greater Bay Area. Hong Kong is well recognised as the most international city in Asia, as well as an international financial, transportation and trade centre. By our last count, over 9,000 overseas and Mainland companies have set up offices in Hong Kong, with over 1,500 using Hong Kong as their regional headquarters. Hong Kong also enjoys considerable strengths in professional services. Leveraging on these strengths, Hong Kong can help bring in foreign investments and know-how to the Greater Bay Area, and join hands with Mainland enterprises to develop markets and explore opportunities overseas, cementing our indispensable role as the bi-directional gateway between the country and the rest of the world.

 

Financial services

I would like to elaborate a bit on how Hong Kong can make use of its competitive advantage to contribute towards the development of the Greater Bay Area. First of all, Hong Kong’s status as the world’s premier international financial centre is well recognised. We are ranked third in the Global Financial Centres Index and number one in Asia. Apart from our strategic geographic location and efficient links to other major markets, Hong Kong has a financial regulatory and supervisory framework that is in line with international standards. We have the world’s sixth largest stock market by market capitalisation as at end-June 2019, while funds raised here through IPO (initial public offering) topped the world in six out of the past 10 years. Our securities, bond and insurance markets are growing to serve the needs of local, Mainland and overseas companies and their connectivity with the Mainland capital market is continually being enhanced. Definitely, Hong Kong’s financial sector can leverage on these strengths to promote the efficient flow of factors of production, particularly capital, to serve the real economy.

 

To name a few concrete examples, we will seek to further expand the scale and scope of cross-boundary use of Renminbi and enhance the connectivity among the financial markets in the Greater Bay Area, including considering measures to facilitate cross-boundary wealth management. As an international asset management centre, we already have an open-ended fund company regime in operation since end-July 2018, and starting from April 1 this year, different types of onshore and offshore privately offered funds can enjoy profits tax exemption under our tax law. We also entered into mutual recognition of funds arrangements with six economies including the Mainland, Switzerland, France, the United Kingdom, Luxembourg and the Netherlands. These are the new capacities we built to strengthen our role as the world’s premier off-shore renminbi and wealth management centre. We also strive to develop Hong Kong as a green finance centre in the Greater Bay Area. In May 2019, the inaugural green bond under the Government Green Bond Programme was issued, while in June 2018, a Green Bond Grant Scheme was launched to subsidise eligible green bond issuers in obtaining certification under the Green Finance Certification Scheme. Total green bonds issued in Hong Kong amounted to US$11 billion last year.

 

Aviation hub

The second role which we will strive to strengthen and play in the Greater Bay Area is our international aviation hub. Last year, the Hong Kong International Airport served 74 million passengers, which made us the world’s number three. In terms of air cargo, Hong Kong ranked number one last year, handling over 5 million tonnes of air cargo and airmail. The three-runway system of our international airport, which is now under construction, will help strengthen our role as the gateway between the Greater Bay Area and over 200 destinations around the world. Following our agreement with the Civil Aviation Administration of China in February 2019 which enables inter-modal code-sharing, both parties have agreed to expand the scope of flight destinations to be served by cross-boundary helicopter services to and from Hong Kong to cover the whole Guangdong Province as envisaged in the Outline Development Plan.

 

Professional services

The third area which I would like to mention is our professional services. Hong Kong is a professional services hub. Our pool of talent is deep and diverse, covering various disciplines like legal, financial, accountancy, higher education and construction-related services, and benchmarked against the international standards and practices. The Greater Bay Area, comprising some 71 million people, a territory of 56,000 sq km and with a rising middle class, provides Hong Kong professional sectors with a huge market. The city cluster also has increasing demands for quality services such as higher education and medical services, etc. Hong Kong professional service sectors can grasp the opportunities to meet these demands.

 

Take legal services as an example. The Department of Justice of Guangdong Province implemented a series of trial measures in August which will last for three years. The notable measures include the removal of the minimum capital injection ratio of 30% by Hong Kong partner firms in the partnership associations set up in Guangdong Province; legal practitioners from Hong Kong, Macau and the Mainland can be employed in the name of the partnership associations; partnership associations may handle and undertake administrative procedure legal work and years of establishment; and work performance and other qualifications of both the Hong Kong and Mainland partner law firms can be counted towards the qualification of the Mainland business of the partnership associations. These measures provide flexibility in the setting up of and employment by partnership associations. This year, we plan to consult the public on a mechanism with the Mainland for mutual recognition of and assistance in corporate insolvency matters, so as to offer better legal protection to stakeholders in Hong Kong and on the Mainland and further optimise the business and investment environments of both places. On higher education, in addition to institutions already operated by the Chinese University of Hong Kong and the Baptist University in Shenzhen and Zhuhai respectively, I took part together with Governor Ma in the ground breaking of Hong Kong University of Science & Technology’s new campus at Nansha last month.

 

Innovation & technology

The fourth area I want to highlight, which is particularly exciting, is innovation and technology (I&T). Developing an international I&T hub in the Greater Bay Area is one main task under the Outline Development Plan. With top-notch universities, a robust intellectual property regime, and extensive international connection, Hong Kong can pool together the innovation resources from around the world to support innovation-driven development.

 

Hong Kong is well positioned for driving innovation and technology creation. Three of our universities are among the world’s top 50. To further build our innovation capacity, we are going to establish two key research clusters at the Hong Kong Science & Technology Park, namely the Health@InnoHK, which focuses on healthcare technologies, and the AIR@InnoHK on artificial intelligence and robotics technologies. These platforms enable top-tier technology enterprises and R&D (research and development) institutions from around the world to set up their units in Hong Kong to carry out R&D projects.

 

Apart from the InnoHK initiative, we are working together with Shenzhen to develop the Hong Kong-Shenzhen Innovation & Technology Park at the Hong Kong-Shenzhen border. Together with the Shenzhen Innovation & Technology Zone being developed across the border by Shenzhen, this park will become an ideal place for I&T companies around the world to establish their presence to leverage on the strengths of both Hong Kong and Shenzhen. The Chinese Academy of Sciences will also establish a Greater Bay Area academician alliance in Hong Kong to promote exchange and co-operation amongst the scientists of both the Chinese Academy of Sciences and the Chinese Academy of Engineering, bringing prominent scientists in the region to advise on technological development in the Greater Bay Area.

 

Young entrepreneurs

Ladies and gentlemen, young people are our future and I firmly believe that in the Greater Bay Area development process, enormous opportunities will be brought about to Hong Kong young people. The Hong Kong SAR Government will do our utmost to help them tap these opportunities. For example, through a Youth Development Fund, we are engaging and providing subsidies for non-governmental organisations (NGOs) to assist young people in starting up their businesses in various Greater Bay Area cities with grants, support, counselling, guidance and incubation services. In May this year, Governor Ma and I launched a batch of 10 entrepreneurial bases to further promote youth innovation and entrepreneurship in the Greater Bay Area. More are expected to come and to ensure that they are providing holistic support, we are going to establish an Alliance of Hong Kong Youth Innovative & Entrepreneurial Bases in the Greater Bay Area. Organisations from Guangdong and Hong Kong with strength and proven track records, such as innovative and entrepreneurial bases, universities, NGOs, scientific research institutes, professional bodies and venture funds, will be invited to join the alliance and jointly set up a one-stop information, publicity and exchange platform.

 

As the Chief Executive of the Hong Kong SAR, I must emphasise that the above visions could only be realised under the premise of “one country, two systems”. Under “one country, two systems”, Hong Kong has and will continue to maintain an economic and legal system different from that on the Mainland. We have a very facilitating and highly internationalised business environment, free flow of capital, a trusted common law system and an independent judiciary. We also enjoy a high degree of autonomy in conducting our affairs and have established extensive and strong overseas connections. With the unique advantage of “one country, two systems” integrally preserved, Hong Kong can continue to perform its gateway function for the internationalisation of the Greater Bay Area and further opening up of our country.

 

In the discussions on the possible ways to take forward the Greater Bay Area development, there are views that Hong Kong is part of the Greater Bay Area and, therefore, our people can contribute to its development no matter whether they choose to move to other Greater Bay Area cities to explore the opportunities or just to stay in Hong Kong to continue their trade and profession. I fully agree with these views. For example, the realisation of cross-boundary remittance of science and technology funding of the Central Government and the Guangdong Government to Hong Kong can strengthen the resources and capacities for R&D in our local universities right here in Hong Kong. And exciting research projects have already been funded under this framework.

 

Riding out the storm

In recent months, what started as peaceful protests to oppose a piece of local legislation has turned into violence devastating our city. People’s daily living has been seriously affected and the economy has taken a dip. While our foremost priority is to end violence and restore law and order, we have not lost sight of the opportunities that Hong Kong should seize in order to bring our city to new heights. Therefore, in riding out this unprecedented political storm, we are holding steadfast to the principles that have given Hong Kong her unique strengths, and they are the “one country, two systems” principle, the rule of law and our institutional strengths.

 

Ladies and gentlemen, ever since the promulgation of the Outline Development Plan for the Guangdong, Hong Kong and Macao Greater Bay Area, the world has turned its eyes on this part of the world, eager to explore and reap the opportunities arising from this important initiative. At today’s forum, our distinguished guests will share very valuable insights on how the Greater Bay Area development will act as a further step in enriching the practice of “one country, two systems”, and provide a new international platform for win-win co-operation.

 

Chief Executive Carrie Lam gave these remarks at the International Forum on the Guangdong-Hong Kong-Macao Greater Bay Area on October 24.

via Moroccan Trader HK a bi-directional gateway

CE calls for reconciliation

Fellow citizens, so long as Hong Kong remains impeded by unresolved disputes, ongoing violence, confrontation and discord, our city cannot embark on the road to reconciliation and people will lose faith in the future.

 

We must reverse the prevalent pessimistic sentiments and stop the disorderly behaviour. We have to put aside differences and stop attacking each other, so that we could set sail again based on the values upheld by all.

 

With the following strengths, we will still be able to sail through adversities:

 

our long‑established core values such as the rule of law, respect for human rights, diversity and inclusiveness, freedom of expression and effective administration; our unique strengths under “One Country, Two Systems” and the comprehensive safeguards under the Basic Law; Hong Kong’s status as international financial, transportation and trade centres as well as our internationalised business environment valued and recognised by overseas and Mainland enterprises; the economic principles which respect open markets and free trade; public institutions with distinctive functions and a pool of excellent talent; and Hong Kong people’s pragmatism and rationality, as well as our mutual help and can‑do spirit.

In the past two years, the Government also forged ahead with the development of the innovation and technology industry, wisely used public funds to invest for the future, developed external affairs and liaised with various trades to jointly chart our future.

 

Although Hong Kong is now facing the most formidable challenge since our return to the Motherland, I believe that the efforts made to lay the solid foundation of Hong Kong would not be wasted.

 

So long as we have unwavering confidence, adhere to the “One Country, Two Systems” principle, stop violence in accordance with the law and restore social order as early as possible, Hong Kong will soon be able to emerge from the storm and embrace the rainbow.

 

This is the English translation of the Chief Executive Carrie Lam’s Policy Address closing remarks delivered on October 16.

via Moroccan Trader CE calls for reconciliation

Over 220 new initiatives mooted

Hong Kong has always been one of the safest cities in the world, and being civilised, law‑abiding, free, pluralistic and inclusive, and paying mutual respect are the characteristics that this Asia’s world city takes pride in. Yet in just a few months, the areas affected by the social conflict arising from opposition to the Government’s amendment of the Fugitive Offenders Ordinance have become more extensive.

 

Over 400 demonstrations, processions and rallies took place in various districts in the past four months, and more often than not, they ended up in violent protests, causing injuries to more than 1,100 people and the arrest of over 2,200. A handful of rioters initiated attacks and sabotage in an organised and planned manner. They doxxed and beat people holding different views, spreading chaos and fear in Hong Kong and seriously disrupted people’s daily lives.

 

Employees of all trades and sectors, as well as small, medium and large businesses alike are deeply worried about the prospect of Hong Kong. People are asking: will Hong Kong return to normal? Is Hong Kong still a place we can live in peace?

 

I will adhere to the following principles, be it in handling the current major crisis or continuing to discharge our governance responsibilities. First, we will adhere to “One Country, Two Systems” and safeguard the rights and freedoms protected by the Basic Law. However, any acts that advocate Hong Kong’s independence and threaten the country’s sovereignty, security and development interests will not be tolerated.

 

In the 22 years since Hong Kong returned to the Motherland, “One Country, Two Systems” has proven to be the best system for ensuring the long‑term prosperity and stability of Hong Kong. Our national leaders have made it clear on many occasions that “One Country, Two Systems” is a long‑term national strategy in line with the fundamental interests of our country.

 

The successful implementation of “One Country, Two Systems” is the common aspiration of our country, Hong Kong and people of the two places. Despite the stormy times and overwhelming difficulties Hong Kong is experiencing, I believe that so long as we accurately adhere to the principle of “One Country, Two Systems”, we will be able to get out of the impasse.

 

Second, the rule of law, which is the cornerstone of our success, is a core value of paramount importance to Hong Kong. We must make every effort to safeguard the rule of law. As the integral components of the rule of law, a law‑abiding population, strict and impartial enforcement of the laws, independent prosecutorial power and judicial independence must be respected by all and not be undermined.

 

Third, Hong Kong’s institutional strengths are built up over time by different bodies and organisations including the executive authorities, the legislature, the judiciary, the civil service, law enforcement and regulatory agencies, public service bodies, media organisations, etc. Each and every one of us has the responsibility to protect these strengths and prevent them from being eroded.

 

I would like to take this opportunity to thank everyone who has stood fast in their positions during the confrontations in recent months, including staff members of various organisations, in particular police officers, staff of the Mass Transit Railway Corporation and Airport Authority, maintenance and cleaning workers, as well as numerous Hong Kong citizens who silently stand guard over Hong Kong. With their contributions and hard work, Hong Kong is able to keep functioning.

 

Being an open and free city, Hong Kong has always upheld the principles of inclusiveness, integration and mutual respect, and has been resolving disputes by peaceful and rational means. Owing to our adherence to these values, Hong Kong has won recognition and respect in the international community.

 

While we respect different opinions and understand people’s enthusiasm in fighting for justice and rights, I believe our society will agree that continued violence and spread of hatred would erode the core values of Hong Kong, disrupt social peace and undermine the excellent systems that took years of efforts to build.

 

I therefore appeal to every Hong Kong citizen to cherish the city in which we all have a share and to safeguard the core values we uphold so that Hong Kong can return to calmness.

 

Although we have not had enough time to prepare for this year’s Policy Address, we still manage to put forward over 220 new initiatives, albeit some are in the form of policy directions or possible options. We stand ready to listen to people’s views and to enrich or adjust the contents and details of our policies.

 

This is the English translation of Chief Executive Carrie Lam’s Policy Address opening remarks delivered on October 16.

via Moroccan Trader Over 220 new initiatives mooted

Gov’t expresses outrage at rioters

The Government expressed extreme outrage at masked rioters’ recurrent violent acts in various districts today.

 

In a statement, the Government strongly condemned such acts that posed an immense threat to public safety and seriously breached the peace.

 

It added that rioter’s obviously targeted police officers for attacks as they slashed one officer’s neck with a sharp-edged object, assaulted another officer while attempting to snatch his equipment, and set a police vehicle on fire by hurling petrol bombs.

 

Rioters also threw petrol bombs at Mong Kok Police Station and posed a severe threat to officers’ safety by attacking them with bricks.

 

The Government severely condemned the rioters’ outrageous attacks, which Police will thoroughly investigate.

 

As to groundless and continuous online comments against police officers, the Government appealed to the public not to be misled. It also extended sympathies to the injured officers.

 

In response to recent online orchestrated movements across the city, the statement noted that rioters wantonly vandalised government and MTR facilities, Legislative Council members’ offices and set fires to selected banks and shops.

 

The rioters attacked other citizens and media organisations, and barricaded roads that paralysed traffic which seriously obstructed fire and ambulance services.

 

They also threw objects onto the MTR Sha Tin Station track, and vandalised the Light Rail tracks, potentially causing serious accidents and jeopardising MTR staff and passengers’ safety.

 

The vandalism prompted the service suspension of the entire Light Rail network and the early closure of several MTR stations, causing the public immense inconvenience and anxiety.

 

Additionally, some people burned a national flag in Wong Tai Sin, challenging the national sovereignty and allegedly violating the National Flag & National Emblem Ordinance.

 

The Government strongly condemned rioters’ violent acts and asserted it would curb the violence with the greatest determination.

 

It appealed to peaceful demonstrators to dissociate themselves from the rioters.

 

It also urged them to uphold the rule of law, which is Hong Kong’s core value, and work with the Government to restore public order.

via Moroccan Trader Gov’t expresses outrage at rioters

Human rights respected: SJ

The Chief Executive in Council decided to invoke the power under the Emergency Regulations Ordinance and make a new regulation of Prohibition on Face Covering Regulation to effectively reduce acts of violence and facilitate police investigation and administration of justice. We hope that it will help restore law and order and public peace in the society.

 

Prohibiting persons from using face covering would facilitate police investigation and administration of justice and would as well deter them from acting in an unlawful manner on the basis that they may act with impunity by concealing their identity. The new regulation only prohibits people from using any face covering to prevent identification at unlawful assemblies, unauthorised assemblies, public meetings or public processions in respect of which a letter of no objection has been issued. Police officers are also empowered to require a person to remove facial covering in a public place to verify their identity.

 

In devising the new regulation, the Government has given due consideration to the human rights guarantees in the Basic Law and the Hong Kong Bill of Rights Ordinance, including the rights of the freedom of expression, peaceful assembly and privacy. However, these rights are not absolute, and may be subject to restrictions that satisfy the proportionality test including whether a reasonable balance has been struck between the societal benefits of the encroachment and the inroads made into the constitutionally protected rights of the individual.

 

This measure would not deprive the right to freedom of expression and peaceful assembly, as people are still free to participate in lawful and peaceful public order events without face covering. If a member of the public in a public place is asked by police officers to remove the face covering to verify their identity, they may wear it again after the verification process is completed. Interference with a person’s rights is minimal, and in any event proportionate to the legitimate aim of protecting public safety and public order.

 

Other than the specified circumstances set out in the new regulation, people are generally free to wear face masks and the impact on their daily lives is limited.

 

The new regulation, which is a piece of subsidiary legislation, is made pursuant to the Emergency Regulations Ordinance and has to be laid on the table of the Legislative Council which may by resolution amend the regulation. Hence, there is no issue of the Legislative Council being circumvented.

 

The protests and confrontations have continued for almost four months. We hope that the new measure could help curb the spread of violence and restore social order. We also urge the understanding and support of the public in our work.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on October 13.

via Moroccan Trader Human rights respected: SJ