
Secretary for Development Bernadette Linn stated today (March 12) on a television program that specific measures will be implemented this year to address the issue of high construction costs in Hong Kong. This includes central government procurement of certain building materials for multiple projects and streamlining administrative approval processes.
Linn explained that when contractors purchase materials, costs can increase due to subcontracting at each level. By having the government centrally procure materials like rebar for specific projects, bulk purchasing can lead to cost savings.
Regarding the approval processes, Linn emphasized that the government will not just make promises but will introduce concrete measures this year to reduce administrative burdens. She noted that construction design and material standards in Hong Kong haven't been reviewed for many years, and current standards are closer to those of the UK or EU. She suggested considering standards from mainland China to create a more tailored Hong Kong standard, which could open up more markets and sources, ultimately helping to lower costs.
Linn also acknowledged that relatively high wages in Hong Kong contribute to elevated construction costs. However, she stated that wages cannot be lowered to reduce building costs, as this is a social issue that requires careful handling.
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