Reduction in civil servant salaries could set precedent for salary cuts, leading to decreased consumer willingness to spend, Andrew Leung says

The Hong Kong SAR government is facing a fiscal deficit of HK$100 billion, leading to suggestions from some voices to reduce the salaries of civil servants and even legislators to cut expenses. Legislative Council (LegCo) President Andrew Leung stated today (Jan. 4) that many private sector organizations will reference civil servant salary adjustments.

"If civil servants were to reduce their salaries, it could set a precedent that discourages consumer spending, exacerbating the issue."

Leung noted that despite the complex geopolitical situation, Hong Kong still has many good trading partners, and the number of investments in innovation and technology has recently increased. He believes that the future economic outlook for Hong Kong should be positive and urged everyone to adopt proactive measures to "grow the pie" and to have more confidence in the government.

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