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2024 December
Comprehensively Improve People’s Livelihood and Revitalise Economy for Brighter Future

The Policy Address recently delivered by Chief Executive John Lee, his third while in office, focused on boosting economic growth and improving people’s livelihood. Algernon Yau, Secretary for Commerce and Economic Development, said that the Commerce and Economic Development Bureau is set to roll out a succession of key policies to bolster economic growth and enhance people’s livelihood and well-being, aiming to lay a solid foundation for the development of Hong Kong.

At forefront of economic rankings and continuing to leverage unique advantages

Yau stressed that Hong Kong serves as an important hub for cultural exchanges between the East and the West. It also helps the free flow of production factors such as capital, goods, talents and information, which are fundamental strengths in fostering economic growth.
 
 
 
Indeed, in the recently published Economic Freedom of the World 2024 Annual Report, Hong Kong ranked top in “Freedom to trade internationally” and “Regulation”, and its ranking in “Sound money” rose to third globally. Meanwhile, Hong Kong ranked fifth and fourth respectively in global competitiveness and capital inflow in the World Competitiveness Yearbook 2024. Yau believes that these data not only reflect Hong Kong’s economic strength, but also affirm its vital position in global trade.
 

Duty rate reduction for liquor to boost high‑end F&B trade

Referring to the Government’s policy adjustment for liquor trade, Yau said that many foreign liquor merchants he was previously in contact with have expressed strong interest in the lowered duty rates for liquor and have made pertinent inquiries. “We are not encouraging people to drink liquor, but rather we want to promote the growth of associated industries via this policy.”

 

Yau explained that Hong Kong successfully removed all wine duty-related customs and administrative controls in 2008, and this successful experience could serve as a valuable reference for the growth of liquor trade. “This is an important initiative to establish Hong Kong as a liquor trading hub in the Asia-Pacific region and to drive diversified business activities.”

Actively cultivate silver economy and help enterprises seize business opportunities

As the ageing of Hong Kong’s population intensifies, the silver economy becomes a key focus for the Government’s future development direction. According to the Ageing Asia Silvery Economy Index, Hong Kong ranked fourth globally and second in the Asia-Pacific region, showcasing the huge consumption capacity of its elderly population.

 

Yau said that the recent Policy Address announced the establishment of a Working Group on Promoting Silver Economy. This group is tasked with conducting thorough research on the elderly population’s needs and devising appropriate policy measures. “We will implement measures in five key areas: ‘silver consumption,’ ‘silver industry,’ ‘quality assurance of silver products,’ ‘silver financial and security arrangements,’ and ‘silver productivity,’ to cultivate the silver economy and offer the necessary guidance to the business community.”

 

He added that Hong Kong has become an ageing society, which means it will face huge demands for food, clothing, housing, transportation, social welfare and medical care. “We aim to help companies identify business opportunities in promoting elderly products, silver financial arrangements and security, silver productivity, etc., and cater to the needs of the senior population.”
 

Support SMEs and establish high value-added supply chain service centre

Amidst global economic shifts, SMEs face numerous challenges to their survival and growth. Yau said that the Government has always been determined to support these enterprises in upgrading and respond to their needs through various policies. “The Chief Executive, in the Policy Address, announced an injection of HKD1 billion into the BUD Fund to assist SMEs in upgrading their business operations and penetrate new markets. The geographical coverage of E‑commerce Easy will be expanded to the 10 ASEAN countries to support enterprises in penetrating the ASEAN market through digital transformation, and provide targeted funding support for enterprises to implement green transformation projects.”

 

In view of the changes in the global trade landscape, Yau said that Hong Kong possesses certain advantages in offshore trade and supply chain management. As more and more supply chains migrate to the Global South and the “Belt and Road” Initiative countries, Hong Kong can leverage its geographical and policy strengths to entice companies from the Mainland and abroad to establish regional headquarters here. “Being the world’s third-largest financial hub and the foremost offshore RMB centre, Hong Kong’s strengths are significant in drawing international investors to access the Mainland’s capital market via Hong Kong.”

 

Hong Kong’s economic policies not only focus on current development needs, but also on sustainable growth. Yau is convinced that policy measures to comprehensively improve people’s livelihood will undoubtedly inject fresh impetus into economic rejuvenation and improvement of people’s livelihood in Hong Kong.