Hong Kong Policy Address 2024: What to look out for in this year’s speech
Hong Kong Free Press
Hong Kong’s leader John Lee will deliver the third Policy Address of his term on Wednesday, with the focus set to shift from national security to reviving the economy and improving health services and housing – including a clampdown on the city’s notorious subdivided flats.
In last year’s address, Lee vowed to “fulfil [Hong Kong’s] constitutional duty” by completing legislation for safeguarding national security as stipulated in the Basic Law, before the end of 2024. It did not take that long to realise what Lee later described as a “historic mission.”
The Safeguarding National Security Ordinance, known as Article 23, was unanimously passed by the opposition-free legislature and enacted on March 23, buttressing a national security law imposed by Beijing in 2020.
Speaking after its passage, Legislative Council President Andrew Leung said: “From now on, Hong Kong will be a better place to live, visit, do business and develop.” However, the law has been widely criticised by foreign governments and rights organisations, and the US in September warned that all firms and individuals in the city were “subject to the broad and vague provisions” of Hong Kong’s sweeping security laws.
This year’s Policy Address comes amid ongoing economic difficulties and weak domestic consumption that have hit many businesses across different sectors in the city. Against this backdrop, Lee has already indicated that the speech will focus on “developing the economy and improving people’s livelihood.”
Exactly how, though, remains to be seen. HKFP rounds up some policies that may be revealed as reported by local media ahead of the annual speech.
Economy
Lee told reporters in July that his third Policy Address would target economic growth after the enactment of Article 23 laid the groundwork for the city’s stability.
According to Bloomberg, Hong Kong intends to cut taxes on hard liquor in an attempt to revive its lagging nightlife economy. The city’s 100 per cent tax on spirits is one of the highest alcohol duties in Asia.
The size of the cut is expected to depend on how premium the alcohol is, with more premium liquor to see lower taxes. The government hopes to increase spending on premium liquor, Bloomberg reported last month.
Pro-Beijing parties were among those calling for such cuts in submissions to the government outlining what they hoped to see in the Policy Address. Both the pro-Beijing Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) and the Business and Professionals Alliance recommended the taxes be slashed entirely, while the New People’s Party suggested a tiered system depending on the price of the liquor.
Lawmaker Peter Shiu, who represents the wholesale and retail sector, said he hoped the government would reduce the tax to 20 per cent.
Lawmakers said they believed lower alcohol taxes could have a positive impact on Hong Kong’s restaurant industry, which has yet to see business return to pre-pandemic levels.
Housing
Lee is expected to announce new regulations to phase out “low-quality” subdivided flats on Wednesday, a year after he announced the plan during last year’s Policy Address. A task force has proposed minimum living standards.
Hong Kong had around 108,200 subdivided living spaces in 2021, including subdivided flats, cubicles, bedspaces, space capsules, loft spaces and rooftop dwellings, according to official data. Anti-poverty NGO the Society for Community Organization (SoCO) has estimated that nearly 250,000 people live in such accommodation.
During a 2021 visit to Hong Kong, Beijing’s top official on Hong Kong affairs Xia Baolong said he hoped the city would eradicate its subdivided flats and cage homes by 2049, echoing Beijing’s characterisation of the city’s housing crisis as a “deep-rooted problem.”
Lee is expected to announce new standards for a liveable space, chief among them a new lower limit on floorspace believed to be between 70 and 100 square feet. Minimum requirements for hygiene, ventilation, and fire safety, as well as the amount of time landlords will have to comply with the new regulations, may also be on the agenda.
While the Federation of Public Housing Estates and the DAB have both suggested a grace period of three years for the regulations to take effect, SoCO has called for a six month window. Ming Pao has reported that landlords will have 12 months to complete improvement work and will have to bear the cost.
Concern groups have also called for a strengthened enforcement regime, saying landlords cannot be relied on to report on themselves, while tenants fear to risk eviction by reporting their landlords. Various groups have called for comprehensive rehousing arrangements. SoCO has suggested that tenants already in the public housing queue get a three-year advance to be allocated a subsidised rental flat, while those not in the queue should be granted rental subsidies.
SoCO has also called for a complete ban on cage homes, coffin homes and the like, alongside a phased ban on substandard sub-divided units.
Tourism
Hong Kong has been allocating resources to organise mega events and to boost tourism after the city lifted all Covid-19 restrictions in early 2023. Lawmakers and representatives from the sector have advocated more initiatives to attract tourists.
Local media outlets reported that Lee would introduce “Muslim-friendly” facilities to cater for tourists from the Middle East and some ASEAN countries.
Vincent Cheng, a lawmaker with the DAB, said Hong Kong should set up more prayer rooms at the airport and develop travel guides specially for Muslims.
On Wednesday, the Travel Industry Council of Hong Kong announced its suggestions. Its chair Gianna Hsu said arrival numbers had recovered to about 70 per cent of pre-pandemic levels.
Hsu urged the government to roll out policies and allocate resources to train more tour guides, especially for cultural tours. Hsu also suggested lowering the thresholds for tour guide licences by exempting people from completing the pre-examination training courses.
The council urged a ban on unlicensed tour guides and travel agencies from mainland China providing services in Hong Kong.
Healthcare
Ming Pao reported that the Policy Address would touch on the development of community pharmacies, as the Hospital Authority seeks to promote primary healthcare to reduce the burden on public hospitals.
The paper said the long-term goal was to allow residents with chronic but stable conditions like diabetes or high blood pressure to get prescriptions at community pharmacies.
Sources told Ming Pao the government was reviewing whether existing commercial pharmacies could be seen as community pharmacies.
Last month, the Hospital Authority launched a new service for certain patients to collect medications at more than 100 community collection points by partnering with large chain pharmacies. The service comes with a medication delivery fee of HK$65 per prescription.
On the issue of higher public healthcare fees, Ming Pao’s sources said the government was still reviewing this to ensure that any changes were in line with public opinion.
Last month, Lee said district health centres would form an important part of enhancing the city’s primary healthcare network, ultimately providing diverse services, including traditional Chinese medicine, community rehabilitation, vaccine education and administration. At present, seven districts have health centres.
State-run newspaper Ta Kung Pao reported on Wednesday, citing sources, that the Elderly Health Care Voucher GBA Pilot Scheme would likely be broadened to cover more cities in the Greater Bay Area.
Currently, Hong Kong residents holding the vouchers may seek integrated services at five medical institutions in Guangzhou, Nansha, Zhongshan, Dongguan and Shenzhen. They can also access dental services in two Shenzhen institutions.
Sources also told Ta Kung Pao that Hong Kong’s electronic health mobile application, which experimented with cross-boundary access in July, would be extended to cover more institutions in mainland China.
Reforms?
Multiple local media outlets said reform would be a keyword of Lee’s address following China’s Third Plenum in July, which highlighted the Communist Party’s strategy to “deepen reform” for the country.
A resolution passed at the plenum said Hong Kong should serve as “three centres and one hub” – as an international financial, shipping, and trade centre, as well as a hub for “high-end international talent.”
The Policy Address would spend a considerable time discussing these three centres. But Lee was expected to focus on enhancement rather than proposing dramatic reforms, government sources told local media.
Last month, Lee said reforms must be “tailored to the local conditions and the times” after meeting Xia, Beijing’s top official overseeing Hong Kong affairs, in the capital.
“We must judge what reforms need to be built from scratch… what reforms need to build on the strengths of the past; and what reforms need to be consolidated and enhanced,” Lee said in Cantonese during a weekly press conference.
Lee’s second Policy Address last year lasted a record three hours and 20-odd minutes. He also read out his speech while seated, unlike his four predecessors. Ming Pao reported that Wednesday’s speech would not be longer than last year’s.
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