Chief Executive John Lee today (Dec. 17) announced that the Financial Secretary has begun consultations for the new Budget, and he expects a wealth of feedback to help address current economic and fiscal issues in Hong Kong.
Lee emphasized that the government welcomes all opinions, which will be carefully considered to balance overall interests, aiming to create a robust budget.
Lee stated that addressing fiscal issues primarily involves "increasing revenue and reducing expenditure" while enhancing local economic development. Regarding increasing revenue and cutting costs, the Financial Secretary has indicated that policies will be actively developed based on Hong Kong's actual situation to formulate a solid budget. Efforts to boost local economic development will focus on improving investment, consumption, and exports.
On investment, Lee assured that the government would ensure approximately HK$90 billion in investments each year to sustain long-term economic growth. He acknowledged current uncertainties in private investment but expressed confidence that continuous national policies and measures will gradually yield positive results, supporting overall local economic growth.
Regarding tourist spending, Lee noted recent positive numbers in tourism. Since Shenzhen resumed its Multiple-entry Individual Visit Scheme, the number of mainland visitors has increased, leading to a rise in weekend foot traffic and improved market conditions. He mentioned that the watch industry has benefited from a 10-20% increase in sales due to the new policy. Lee believes that the number of visitors to Hong Kong will continue to rise during the Christmas and New Year period.
In terms of local consumption, Lee pointed out that while physical store sales have decreased, online shopping has seen an increase, with a reported 8.4% rise in online retail in October. He highlighted a local beauty brand that has seized the opportunity to reorganize its physical store presence and enhance high-end customer service, attracting new clientele.
Lee stressed the need for reform and innovation during this economic transformation, mentioning that Hong Kong has advantages in high-end products and services that can be leveraged for new development.
On exports, Lee noted that Hong Kong's export figures continue to grow despite global uncertainties. He anticipates that Hong Kong's GDP will maintain an upward trend this year, with a year-on-year increase of 2.6% in the first three quarters.
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