As Chief Executive John Lee prepares to deliver the new Policy Address tomorrow (Sept. 17), there is widespread public anticipation for fresh policy initiatives aimed at advancing Hong Kong's high-quality development.
Facing a fiscal deficit and increasingly limited public finances, many scholars and industry leaders have urged the government to avoid large-scale short-term relief measures. Instead, they advocate for strategic long-term investments that support economic transformation and deepen integration with the mainland.
"We should use our 'silver bullets' where they matter most," said multiple experts. They stress that only by building a solid foundation can Hong Kong stand out amid global economic uncertainties.
Experts: Prioritize Innovation and Northern Metropolis Development
In light of global geopolitical tensions and the rapid rise of technological innovation, experts argue that Hong Kong must focus on accelerating the development of the Northern Metropolis, investing in research and innovation, and introducing new industries to boost overall competitiveness and long-term sustainability.
Over the past three years, with strong support from the central government, the HKSAR has tackled key livelihood issues and adopted a results-oriented governance approach, winning public recognition. The slogan "develop the economy and improve people's livelihoods" has become a social consensus. However, opinions remain divided on whether improving livelihoods necessarily means issuing consumption vouchers or direct financial handouts.
Calls have surfaced for the government to reintroduce consumption vouchers. However, academics and business leaders caution that with limited resources, the government should focus on long-term development rather than short-term stimulation.
Consumption Vouchers Not Justified in Current Conditions
Law Cheung-kwok, Senior Research Fellow at the Hong Kong Institute of Asia-Pacific Studies at the Chinese University of Hong Kong, opposes issuing new consumption vouchers. He emphasized that such measures should be reserved for times of severe income and consumption shocks — such as during the pandemic.
"With unemployment at a reasonable 3.7% and wages growing steadily, there is no clear justification for issuing vouchers," Law said.
He added that Hong Kong and Macao differ significantly in fiscal structure. While Macao, with its smaller population and fiscal surplus, can afford regular handouts, Hong Kong cannot.
Business Leaders: Focus on Strategic, Long-Term Projects
Agnes Chan Sui-kuen, Chairwoman of the Hong Kong General Chamber of Commerce, said consumption vouchers were emergency measures during the pandemic and are not a sustainable solution to weak consumption.
Lau Siu-kai, advisor to the Chinese Association of Hong Kong and Macao Studies, echoed this view, stressing that the government should prioritize projects that enhance long-term economic growth and international competitiveness — particularly the Northern Metropolis. He also suggested optimizing controversial policies such as talent and labor importation, and streamlining government procedures for greater administrative efficiency.
Prof. William Wong Kam-fai, Legislative Council member and Associate Dean (External Affairs) of CUHK's Faculty of Engineering, urged the government to speed up the development of the Northern Metropolis University Town, creating an environment for incoming scientists to conduct research. He also suggested the government lead the way in developing vertical applications of large language models (LLMs) for public services such as policing, transportation, and social welfare — and in education, by creating subject-based LLMs to support smart teaching.
"In today's geopolitical climate, the Policy Address must be forward-looking and prepare Hong Kong for future development," Prof. Wong said.
Innovation and Industry Diversification are Essential
LegCo member Elizabeth Quat noted that while Hong Kong's economy is stabilizing — with strong momentum in finance, innovation and technology, and tourism — external risks remain. She called on the government to seize national development opportunities and continue to innovate. Her recommendations include:
- Financing Northern Metropolis development through bond issuance and real-world asset (RWA) strategies
- Expanding land for university campuses
- Attracting global enterprises and talent
- Investing in innovation and technology, especially in new energy and the low-altitude economy
- Supporting SMEs in adopting AI and exploring Belt and Road markets
LegCo member Edward Leung Hei emphasized the importance of long-term investment and the strategic role of the Northern Metropolis in economic development. He said the area has taken shape, but there is strong public expectation for quicker realization — including tourism development, housing supply, and fostering emerging industries like generative AI and low-altitude aviation.
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