Hong Kong leader John Lee says global economic engine has shifted to the East amid uncertainties
Hong Kong Free Press
The engine for global economic growth has shifted to the East amid uncertainties underpinned by the upcoming US presidential election, a volatile interest environment, and regional conflicts, Hong Kong’s leader John Lee has said.
Lee made the remarks on Sunday during the first public consultation event ahead of his third Policy Address since he took office in 2022. It is scheduled to be delivered in October.
Around 120 residents were invited to the two-hour consultation at a primary school in Tai Po, which was attended by Lee and his team of principal officials.
“Hong Kong is largely safe and stable nowadays, which makes for the best timing for us to go all out on economic development and to bring happiness to people’s lives,” the chief executive said in Cantonese during his opening remarks. When speaking about national security earlier this month, Lee said it was still “a continuous effort. There is no completion.”
A resident surnamed Law, who works in the financial industry, said the past few years had been “rough” for the sector and brokerage firms had been closing at an “unprecedented scale.”
He added that the industry had not felt the benefit of government initiatives to bring in capital, such as officials making promotional trips to the Middle East and Southeast Asia.
In response, Lee said global investors had been hesitant to make moves due to uncertainties in the world, including the US presidential election in November, the volatility of interest rates, and regional wars.
“Many industry insiders told me that [investors] do not dare to make big moves, even if they have the capital,” Lee said.
“But I think the global economic centre has moved to the East. The reasons for valuing [Southeast Asia] and the Middle East are that they are the new engines for global economic development. Growth is in our region, in Asia,” he continued.
“The transformational period is indeed a challenging time. We will boost our policy support after listening to your views and we will see how to get through such difficulties together,” he said.
In April, the International Monetary Fund predicted that Hong Kong would see an increase in GDP of 2.9 per cent in 2024. Whilst inflation pressures continue to dissipate across Asia, China’s property market correction is causing uncertainty as India’s booming economy leads growth, it said.
Women’s welfare
Other residents had made comments and suggestions regarding issues such as tourism, transport, housing, as well as support for youth and the city’s carers.
A woman surnamed Yeung said the government should consider giving the newly-arrived mainland Chinese talents tax allowances for their parents living in the mainland.
Currently, the government provides tax allowances to residents supporting their parents, who must also be ordinary residents in Hong Kong.
A Shatin resident who works in women’s welfare suggested the government could follow the mainland in providing a 10-day child-rearing holiday to parents with new-borns to create a parent-friendly environment.
Lee did not provide details of his Policy Address during the consultation session.
The government is expected to organise more than 40 consultation hearings including two on-the-ground meetings with residents ahead of the address.
Lee had said economic growth will be the focus of his third Policy Address after the enactment of a homegrown security law in March laid the groundwork for the city’s stability.
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