Author Archives: hksar gov

     The Lands Department (LandsD) announced today (February 16) the arrangements for applications for lease modification including in-situ land exchange (hereinafter generally referred as “land exchange”) for development of land falling within the remaining phase of Kwu Tung North and Fanling North New Development Areas (NDAs). Interested parties may refer to the LandsD Practice Note No. 1/2022 which is available on the department’s website (www.landsd.gov.hk) regarding the application requirements.
 
     A Practice Note was issued in February 2014 (Practice Note No. 1/2014 as varied and supplemented by Practice Notes Nos. 1/2014A and 1/2014D) to set out the application requirements for land exchange for sites planned for private developments within the NDAs, giving priority to land exchange applications within Phase 1 development of the NDAs. Two applications in Phase 1 development were subsequently approved, with construction in progress.
 
     The Government plans to initiate the procedures to proceed with resumption of land within the remaining phase of the NDAs around mid-2023. With this in mind, the LandsD issued Practice Note No. 1/2022 today, specifying that the deadline for receiving applications in respect of sites in remaining phase of the NDAs will be August 15 this year; and that the deadline for acceptance of binding basic terms offer (with premium) will be June 30, 2023. In case any applications received cannot be concluded within this specified deadline, the Government will proceed to initiate the procedures of land resumption in taking forward the development in order not to delay the overall works programme. 
 
     The Practice Note also provides the following updated information and requirements:
 

• Two updated reference plans showing the sites open for land exchange applications in the remaining phase of the NDAs.

 

• With the “people-oriented” philosophy and under a flexible arrangement, the Government has indicated earlier that it would allow eligible households affected by clearance in the remaining phase of the NDAs to voluntarily apply for early surrender of and departure from their squatter structures, and to make early application for the ex-gratia compensation and rehousing. Applicants who succeed in their land exchange applications are therefore required to reimburse to the Government the compensation paid and/or the cash value of the rehousing element, in case eligible occupants occupying the lots to which their land exchange applications relate have opted for and accepted the Government’s compensation and rehousing arrangement.  

 

• There is a prevailing requirement for land exchange applicants to provide eligible clearees with compensation or rehousing comparable to one that would be offered by the Government for its development clearance exercises, and to submit an undertaking to the Government where necessary. To better safeguard the performance of this requirement, land exchange applicants may be required to make a deposit with the Government before execution of the land exchange.

     Prior to the issue of this Practice Note, the LandsD has been receiving land exchange applications within the remaining phase of the NDAs. The department also announced today that so far a total of six out of 13 such land exchange applications received have been accepted for further processing. This means the six applications are regarded as having fulfilled the planning criteria promulgated by the Government after due consideration by an inter-departmental panel chaired by the Development Bureau and will be taken forward to the next stage of processing involving finalisation of the lease provisions and premium assessment (with the option of standard rates with details due for announcement by the end of March this year). The relevant information of the six applications, which together involve an estimated supply of some 6 000 private housing units, has been published at the LandsD’s website. These applications, together with those to be received before the deadline of the application period, will be processed in accordance with the updated Practice Note. As and when other applications are accepted for further processing, the information will be published accordingly.

     Under the Enhanced Conventional New Town Approach, the Government will resume and clear all private land planned for developments, and carry out site formation works and provide infrastructure before allocating the land for various purposes including disposal of land for private developments. Prior to land resumption, the Government may allow in-situ land exchange applications from private land owners of sites earmarked for private developments, subject to their meeting of the criteria and conditions as specified by the Government. read more

     The Government yesterday (February 15) exercised the power under the Prevention and Control of Disease (Compulsory Testing for Certain Persons) Regulation (Cap. 599J) to make a “restriction-testing declaration” (declaration) effective from 7pm, under which people (hereafter referred to as “persons subject to compulsory testing”) within the specified “restricted area” in Sheung Shui (i.e. Ching Long House, Ching Ho Estate, Sheung Shui, excluding The Boys’ and Girls’ Clubs Association of Hong Kong Jockey Club Fanling Children & Youth Integrated Services Centre (Ching Ho Branch) on G/F, see Annex.) are required to stay in their premises and undergo compulsory testing. Persons subject to compulsory testing are required to stay in their premises until all such persons identified in the “restricted area” have undergone testing and the test results are mostly ascertained. The Government today (February 16) decided to extend the period of operation and aims at finishing the exercise at around noon tomorrow (February 17). Persons subject to compulsory testing are required to stay in their premises and undergo two tests under designated arrangement (including the one conducted yesterday), until all such persons identified in the “restricted area” have undergone testing and the test results are mostly ascertained, and upon the agreement of the Secretary for Food and Health having regard to all the circumstances and the public interest of Hong Kong.

     A Government spokesman said, “Recently, sewage discharged from Ching Long House, Ching Ho Estate, was tested positive for COVID-19 and over 30 preliminarily tested positive cases as well as one indeterminate case have been identified under the ‘restriction-testing declaration’ operation conducted yesterday, which is worrying. In view of the significant risk of infection at Ching Long House, Ching Ho Estate, we consider it necessary to undertake determined action by extending the ‘restriction-testing declaration’ operation made earlier under Cap. 599J to February 17 to prevent the virus from further spreading.”
    
     The Government has set up temporary specimen collection stations at the “restricted area” and requested persons subject to testing to undergo testing as designated on February 15 and February 16. Arrangements have been made for persons subject to testing to undergo a nucleic acid test at specimen collection stations where dedicated staff will collect samples through combined nasal and throat swabs. Persons subject to testing must stay at their place of residence according to the instructions of government officers to avoid cross-infection risk. The Government will arrange for door-to-door specimen collection for people with impaired mobility. As a mutant strain is involved, and having considered relevant infection risks, for prudence’s sake, vaccinated persons and persons who have recently been tested are also required to undergo testing.

     The Government spokesman said, “We understand that this exercise will cause inconvenience for the public. We sincerely appeal for the co-operation of residents of Ching Long House (including those who are at work and not currently at the premises) to return to their household and to comply with the testing arrangement. In addition, any person who had been present at the above building for more than two hours from February 2 to February 15, 2022, even if they were not present in the “restricted area” at the time when the declaration took effect, must undergo compulsory testing on or before February 17, 2022. As a mutant strain is involved, for prudence’s sake, vaccinated persons and persons who have recently been tested are also required to undergo testing. The Government will make a public announcement when the declaration expires officially.”

     In order to maintain public and emergency services within the “restricted area”, the Government and relevant working staff (such as healthcare officers and other officers of the Hospital Authority, testing service providers engaged by the Government and cleaning service providers) are allowed to enter and leave the “restricted area” on condition that personal information and contact details are given as well as certain infection control instructions are followed (including undergoing testing before leaving the “restricted area” without the need to wait for the test results). In the cases in which employees are unable to go to work because of the declaration, the Government hopes their employers can exercise discretion and not deduct the salaries or benefits of the employees.

     If staying in the “restricted area” will cause unreasonable hardship for individuals who are not residents in the area when the declaration takes effect, government officers may exercise discretion and allow those persons to leave the area after considering the individual circumstances. Such persons must have followed the instructions to undergo testing and must leave their personal information for contact purposes.

     The Housing Department has set up a hotline (Tel: 2129 8029) for residents restricted by the declaration to make enquiries and seek assistance. The Social Welfare Department will also provide assistance to the affected persons.

     The Government appeals to persons subject to compulsory testing for their full co-operation by registering and undergoing testing, and waiting for the results patiently at home. The Government will strictly follow up on whether the persons concerned have complied with the compulsory testing notices and the “restriction-testing declaration”. Any person who fails to comply with the compulsory testing notices commits an offence and may be fined a fixed penalty of $10,000. The person would also be issued with a compulsory testing order requiring him or her to undergo testing within a specified time frame. Failure to comply with the compulsory testing order or the “restriction-testing declaration” is an offence and the offender would be liable to a fine at level 4 ($25,000) and imprisonment for six months. read more

     Following is a question by the Hon Shiu Ka-fai and a written reply by the Secretary for Commerce and Economic Development, Mr Edward Yau, in the Legislative Council today (February 16):
 
Question:
 
     Some merchants of the wholesale and retail (W&R) sectors have relayed that, in response to online shopping becoming increasingly common due to the Coronavirus Disease 2019 epidemic, they are planning to develop local and cross-border e-commerce, including expanding their businesses into markets outside Hong Kong such as the Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area). They hope that the Government will provide support in this regard. In this connection, will the Government inform this Council:
 
(1) given that the new wave of the epidemic has dealt a blow to merchants of the W&R sectors, whether the Government will allocate $2.5 billion or more for re-launching the Distance Business Programme which was well received by enterprises, so as to support more merchants of the W&R sectors in developing local and cross-border e-commerce; if so, of the details; if not, the reasons for that;
 
(2) in respect of each of the three funds/programmes, namely (i) the Dedicated Fund on Branding, Upgrading and Domestic Sales, (ii) the SME Export Marketing Fund and (iii) the Technology Voucher Programme, for supporting enterprises in developing markets outside Hong Kong and making use of technologies such as e-commerce, of the respective numbers of applications from merchants of the W&R sectors which were received and approved by the authorities so far, the respective percentages of such numbers in the relevant total numbers of applications, as well as the amount of funding involved in such approved applications, and the percentage of such amount in the total amount of funding approved;
 
(3) whether it has assessed the effects that the four aforesaid programmes/funds may have on the development of local and cross-border e-commerce by merchants of the W&R sectors; and
 
(4) whether it will roll out other measures to support merchants of the W&R sectors in developing markets in the Mainland cities of the Greater Bay Area through cross-border e-commerce?
 
Reply:
 
President,
 
     The Government strives to support Hong Kong enterprises and assist them in applying technologies to enhance competitiveness and develop more diversified markets, most notably the huge Mainland market, through among others various funding schemes and support services. In addition, having regard to the pandemic’s impact on small and medium enterprises (SMEs), the Government has rolled out a series of relief measures as well as enhanced the Government funding schemes under the Budget and the Anti-Epidemic Fund (AEF), including assisting the trade in leveraging e-commerce to rise to the challenge of changing consumer shopping patterns amidst the pandemic as well as to develop markets outside Hong Kong.
 
     Having consulted the Innovation and Technology Bureau, the consolidated reply to the specific questions raised is as follows:
 
(1) Under the AEF, the Innovation and Technology Commission (ITC) launched the time-limited Distance Business (D-Biz) Programme to support enterprises to adopt IT solutions to continue their business and services during the pandemic.
 
     During the application period from May 18 to October 31, 2020, over 38 000 applications were received, of which around 35 000 applications were approved. Over 25 740 approved applications have proceeded to implementation, involving total funding of around $1.7 billion. Around 95 per cent of the applications came from SMEs. As at end January 2022, over 19 200 applications have completed their projects.
 
     The Government does not have any plan to re-introduce the D-Biz Programme. That said, the Technology Voucher Programme (TVP) of the ITC, a regular programme which aims to support enterprises in using technological services and solutions to improve productivity, or upgrade or transform their business processes, is similar in nature to the D-Biz Programme. Having regard to the operational experience and the trade’s views, the ITC introduced further enhancement measures for the TVP in 2020. For instance, each approved project can be funded up to three-quarters of its cost, with a cumulative funding ceiling of $600,000.
 
(2) Figures on applications from the wholesale and retail sectors for the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), the SME Export Marketing Fund (EMF) and the TVP are as follows:
 

	BUD Fund	EMF	TVP
Period covered (Since launching)	June 2012 to January 31, 2022	December 2001 to January 31, 2022	November 2016 to January 31, 2022
Number of applications received (Percentage share out of total number of applications received)	2 572 (Note 1) (21.6 per cent)	26 461(Note 1) (8.4 per cent)	4 025(Note 2) (30.3 per cent)
Number of applications approved (Percentage share out of total number of applications approved)	1 043 (24.5 per cent)	19 979 (7.7 per cent)	2 585 (29.4 per cent)
Amount of funding approved ($) (Percentage share out of total amount of funding approved)	503.95 million (21.4 per cent)	362.67 million (8.6 per cent)	396 million (29.0 per cent)

 
Note 1: Including applications withdrawn by applicant enterprises or under processing
Note 2: Including applications under processing
 
(3) The BUD Fund provides funding support to enterprises for developing brands, upgrading and restructuring their operations and promoting sales. Its funding scope covers assisting enterprises in developing e-commerce and integrating online-offline modes of sales and marketing, such as designing and establishing online sales platforms, setting up online shops on third-party online sales platforms, establishing company websites or including electronic payment functions therein, and developing and enhancing mobile applications, etc.
 
     The EMF provides funding support to local enterprises for participation in export promotion activities, including exhibitions and business missions, and assists enterprises in conducting export promotion activities through electronic platforms or media such as placing advertisements, adding keyword search, uploading product information, setting up or enhancing online shops, etc., as well as providing funding support to enterprises for setting up or enhancing their own company websites/mobile applications for export promotion. Moreover, to support enterprises affected by the pandemic in conducting local market promotion activities, the Government has expanded the scope of EMF to cover large-scale exhibitions and online exhibitions targeting the local market for a period of two years since April 30, 2021. As the above two funding schemes cover various electronic channels for product promotion, enterprises in the wholesale and retail sectors conducting product promotion activities through such channels for developing e-commerce businesses may apply for funding from suitable schemes according to their needs.
 
     The D-Biz Programme covers 12 IT solution categories relating to distance business. The most popular solutions are online business, online customer services and engagement, and digital customer experience enhancement.  Beneficiary enterprises come from various sectors, of which over 5 300 approved applications which have proceeded to implementation are from the retail sector, involving total funding of around $360 million. As the Secretariat does not keep statistics of the wholesale sector, we are unable to provide the relevant figures.
 
     The TVP subsidies local enterprises/organisations in using technological services and solutions to improve productivity, or upgrade or transform their business processes, in order to enhance their long-term competitiveness. TVP funding can be used to support any technological services or solutions that assist enterprises in achieving the objectives of TVP. Solutions including big data and cloud-based analytics solution, cyber security solution, enterprise resource planning solution, logistics management systems and e-commerce platform are all conducive to the development of local and cross-border e-commerce by the wholesale and retail businesses.
 
(4) Driven by the Nation’s dual circulation development strategy, the Mainland market’s demand and imports are expected to continue to grow. In addition, the pandemic has expedited the development of e-commerce. In view of such developments, the Government has in recent years been endeavouring to assist Hong Kong enterprises in meeting the needs of the Mainland market and leveraging the business opportunities therein, through both online and offline avenues.
 
     Apart from enhancing various funding schemes, the Government also provides an additional subvention totalling $301 million to the Hong Kong Trade Development Council (HKTDC) over a span of three years from 2021-22 to 2023-24, to subsidise the development of virtual platforms, etc., to enhance its capability in organising online events and proceeding with digitalisation. Since the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is an important market to Hong Kong enterprises and the best entry point to tap into the Mainland market, the HKTDC launched in June 2021 a one-stop “GoGBA” digital platform and has established the “HKTDC GBA Centre” in Shenzhen to provide Hong Kong enterprises with market information on the GBA, as well as business promotion and matching services. The HKTDC also plans to organise a major promotional event in both online and offline modes in Shenzhen within this year to help Hong Kong enterprises promote their featured products.
 
     As some Hong Kong enterprises may not be familiar with online sales in the Mainland, the HKTDC provides a one-stop “ConsignEasy” service to help them manage logistics, warehousing, taxation and other matters related to online sales in the Mainland, and has set up physical and online outlets of “Design Gallery” in the Mainland for promoting Hong Kong-designed products. The HKTDC has also established a “Transformation Sandbox” programme to help enterprises carry out digital transformation and devise online-offline marketing plans according to their scale and needs, through exploring with different online platforms, collaborating with technology enterprises, organising workshops and providing market information.
 
     The Government will continue to step up support to enterprises and encourage them to make good use of the Government funding schemes to explore markets outside Hong Kong, including the Mainland market, through e-commerce. read more

The following is issued on behalf of the Hong Kong Monetary Authority:        The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), annou… read more