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Lo Hoi-ying

Hong Kong’s leader has defended measures in his policy address to boost the economy and improve livelihoods, stressing that businesses must also do their part to remain competitive and survive, even with government aid.
Chief Executive John Lee Ka-chiu said on Saturday that the section on livelihoods was the longest and broadest in scope in his policy address when asked about residents who had yet to benefit from the government’s economic policies.
“You need to develop the economy first to have the resources to improve people’s livelihoods,” Lee said on a radio programme discussing the blueprint and Hong Kong’s inaugural five-year plan, which he also announced on Wednesday.
“First, we must grow the overall economy so that everyone benefits, but as the pie grows bigger, there are indeed certain groups that may need extra help.”
He pointed to funding for small and medium-sized enterprises (SMEs) to help them expand into more markets, develop e-commerce and enhance their capabilities through technologies such as artificial intelligence (AI).
But Lee said that, in a survival-of-the-fittest society, effort was needed from “both sides”.
“While the government works hard, business operators might also need to think of ways themselves because, after all, this is a highly competitive society,” he said. “Individuals still need to make their own efforts to improve themselves.”
He said the government would assist businesses by providing funding, expanding their potential markets and encouraging them to “think about what the world values right now”.
In his policy address, Lee announced 10 measures to support the development, upgrading and transformation of SMEs.

These include the Hong Kong Export Credit Insurance Corporation extending its offer of 20 free buyer credit checks for another year, until September 2027, to continue supporting its insured markets.
However, Eric Ho, the 44-year-old owner of Sai Wah restaurant in Wan Chai, told the South China Morning Post that he was still struggling to survive after he and his partner spent HK$6 million (US$764,780) setting up the business in 2023, following the Covid-19 pandemic.
“At that time we were all upbeat about opening up Hong Kong to the world so we splashed the money on the restaurant. We all thought that there would be an economic revival,” he said.
Despite its roughly 70 seats and a workforce of more than a dozen people, Ho soon found that the growing trend of Hongkongers crossing the border into mainland China to spend was taking a toll on the restaurant’s business.
“During weekends, local diners also disappeared. Apparently, they all went north to spend and consume on the mainland,” he said.
Ho also blamed a lack of tourists for the business’s difficulties.
“The external environment is really not good. Our operating costs are high, including staff wages, food costs and the consistent rent hikes,” he said.
“The wages of imported labour are higher than those of local staff, posing a burden on us.”

Ho said he hoped the government would introduce measures to attract more overseas visitors and stabilise the imported labour scheme so wages could be kept at market rates rather than aligned with the median monthly wage of local workers.
In his policy address, Lee also referred to chapters on improving urban management and addressing traffic and water-pipe problems, saying such measures were relevant to residents’ well-being.
“When we talk about livelihoods and welfare, we hope there are no burst water pipes, our traffic remains smooth and our overall urban management is improved,” he said.
“We don’t want sudden power outages, nor do we want severe traffic congestion. All of these belong to public welfare.”
Asked how authorities would restore public confidence after the deadly Wang Fuk Court fire, Lee pledged systematic reforms and said his policy address had outlined several priority measures.
“But I can firmly tell you those are not all of the measures,” he said. “After the independent committee submits its report in October, the recommendations will be actively followed up to launch more comprehensive reforms addressing all issues at once.”
Additional reporting by Cannix Yau


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Chief Executive John Lee defends policy address, saying government aid can help but businesses must also adapt in competitive market


Chief Executive John Lee defends policy address, saying government aid can help but businesses must also adapt in competitive market.


Hong Kong leader says firms must strive to survive despite government support

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Chief Executive John Lee defends policy address, saying government aid can help but businesses must also adapt in competitive market

Chief Executive John Lee defends policy address, saying government aid can help but businesses must also adapt in competitive market