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CE’s speech in delivering “The Chief Executive’s 2024 Policy Address” to LegCo (10)

(C) Take Forward the Construction of Transport Infrastructure

Promote Major Transport Infrastructure Development

183. The Government is actively following through the Major Transport Infrastructure Development Blueprint for Hong Kong, under which the Hung Shui Kiu Station and the NOL Main Line are to commence construction this year and next year for tentative completion in 2030 and 2034 respectively. In parallel, cross‑boundary railway projects are pressed ahead at full speed, including the Hong Kong‑Shenzhen Western Rail Link (Hung Shui Kiu‑Qianhai) and the NOL Spur Line, to enhance linkage between Hong Kong and Shenzhen.

Build Smart and Green Mass Transit Systems

184. Devoted to take forward the three smart and green mass transit systems, and for compressing the time required for construction, we invited suppliers and operators to submit expressions of interest for the East Kowloon and Kai Tak projects this August.  We will invite expressions of interest for the Hung Shui Kiu/Ha Tsuen projects later this year. Through innovative implementation mode and construction methods, we aim to complete the Kai Tak project three years ahead of the original target completion date.

(D) Deepen Reform of the Healthcare System

185. To enhance the health of the people of Hong Kong, improve healthcare protection and quality, and capitalise on our healthcare professions’ strengths, the Government will conduct a comprehensive review on the positioning and objectives of the healthcare system. The review will cover the following areas: reforming the functions and division of work among the Hospital Authority (HA), the Department of Health (DH) and the Primary Healthcare Commission (PHC Commission), strengthening health promotion and disease prevention in primary healthcare, and improving public healthcare services. In parallel, we will reform private healthcare services in terms of their quality, cost‑effectiveness and price transparency, providing the public with high quality, cost‑effective and affordable healthcare service options. We will also support manpower training and technology innovation, helping to uphold the global standing and regional advantage of Hong Kong’s healthcare professions. This will also be conducive to the development of Hong Kong into an international health and medical innovation hub, an advanced medical service centre in Asia, a place where medical professionals cluster, as well as a bridge for East‑and‑West healthcare exchanges.

Advance Primary Healthcare Development

186. The Government will promote the development of primary healthcare on all fronts, including:

(i) formulating legislation to strengthen the regulatory framework of primary healthcare and authorise the PHC Commission to set up quality assurance and monitoring mechanisms;

(ii) developing a community drug formulary and launching a community pharmacy programme to help the public obtain affordable, primary‑healthcare drugs through central purchasing and the community network;

(iii) devising health promotion strategies by adopting a life‑course framework to formulate health management plans for the public according to age and health conditions;

(iv) revamping maternal and child health and family‑planning services to strengthen pre‑pregnancy counselling and parental education and promote healthy fertility;

(v) strengthening the Whole School Health Programme to recommend targeted school‑based measures for physical activities, meals and other matters for each school to improve students’ physical and psychological well‑being;

(vi) upgrading more District Health Centre Expresses into District Health Centres (DHCs), and expanding the service network, and integrating the services of Woman Health Centres and Elderly Health Centres;

(vii) expanding the Chronic Disease Co‑Care Pilot Scheme to cover blood lipid testing; positioning the HA’s general out‑patient services as the comprehensive, primary healthcare service providers for the underprivileged;

(viii) formulating risk‑based screening programmes for prevalent cancers on a gradual basis, including breast cancer screening, exploring the use of AI to assist lung cancer screening, and implementing hepatitis B screening to prevent liver cancer;

(ix) launching a Primary Dental Co‑Care Pilot Scheme for Adolescents to encourage the prevention of dental diseases, as well as a Community Dental Support Programme to enhance dental services for underprivileged groups. This would include elderly persons in financial hardship, replacing the Community Care Fund Elderly Dental Assistance Programme, and introducing preventive dental services for pre‑school children; and

(x) continuing efforts in tobacco control.

Enhance Public and Private Healthcare Services

187. The Government will strengthen the HA’s public healthcare services, including:

(i) reviewing the structure and levels of the HA’s fees and charges to encourage prudent use of services and direct resources to patients who need them most and for those with serious or critical conditions, while increasing support for patients with financial difficulties and strengthening the financial sustainability of the targeted subsidisation of public healthcare services;

(ii) strengthening the centralised procurement of drugs and medical devices by various clusters of the HA system in order to enhance their bargaining power and to expedite, in a more proactive manner, the introduction of new drugs, meeting efficacy and cost‑effectiveness standards to the Drug Formulary;

(iii) formulating a directory for inherited and rare diseases by using the Hong Kong Genome Institute’s genomic data, thereby facilitating early diagnosis and treatment by clinical teams, while supporting relevant research and clinical trials to promote precision medicine;

(iv) fully integrating the paediatric services of various clusters at Hong Kong Children’s Hospital and developing more advanced healthcare services to make the best use of the Children’s Hospital;

(v) finalising the projects and timetable of the Second Hospital Development Plan to dovetail with the development of the Northern Metropolis and to address the needs of local districts;

(vi) setting up, in accordance with national accreditation standards, the first stroke centre and the second chest pain centre;

(vii) enhancing the triage system and referral arrangements for specialist out‑patient services, including setting up inter‑specialty, integrated, out‑patient clinics to avoid the need for multiple referrals; and

(viii) increasing the service capacity for cataract surgeries by at least 20%.

188. The Government will also enhance the quality and efficiency of healthcare services, including:

(i) establishing a professional platform for developing evidence‑based clinical protocols and exploring the feasibility of devising service quality and efficiency standards for public and private healthcare sectors;

(ii) developing quality indicators for public and private healthcare systems and exploring legislating for private healthcare price transparency to enhance service efficiency and address the issue of medical inflation, with the plan to consult the healthcare sector next year; and

(iii) amending relevant legislation to require all healthcare providers to deposit essential health data in the personal eHealth accounts of members of the public, enabling the latter to have more complete electronic health records and enhance continuity of medical care.

Bring in More Healthcare Professionals

189. We will promote the use of the legislation passed earlier to proactively admit more non‑local doctors, nurses and dentists to enhance manpower. The Government will introduce a bill on the admission of qualified non‑locally trained supplementary medical professionals next year.

Support Establishment of a Third Medical School

190. In addition to increasing training places of the existing two medical schools, the Government supports the plan, by local universities, to establish a third medical school, increasing the number of doctors and supporting the city’s development as an international health‑ and medical‑innovation hub. A task group will be set up, inviting universities interested in establishing the new medical school to submit proposals. The Government will set aside sites in the Northern Metropolis Ngau Tam Mei to develop the new medical school campus and build an integrated medical teaching and research hospital.

Promote Development of Chinese Medicine

191. To develop Hong Kong into a bridgehead for the internationalisation of Chinese medicine (CM), the Government will make use of Hong Kong’s advantages in its healthcare system, regulatory regime, standard‑setting, clinical research and trade, and other areas. We will publish the CM Development Blueprint next year, and take forward the following measures:

(i) exploring the application of big data to foster international research collaboration on herb‑drug interaction to discover more evidence of clinical significance, promoting the internationalisation of CM;

(ii) expanding integrated Chinese‑Western medicine services to cover more diseases in which CM has an advantage, including respiratory diseases and knee osteoarthritis, and to progressively extend the cancer care programme to all hospital clusters;

(iii) rolling out the first Chinese Medicine Hospital and the permanent premises of the Government Chinese Medicines Testing Institute, which are expected to be completed and begin phased operation next year; and

(iv) organising the first edition of the Hong Kong Chinese Medicine Cultural Festival to promote the culture of CM in collaboration with the industry.

Promote Mental Health

192. The Government will extend integrated services based on a medical‑educational‑social collaboration model to promote mental health. Relevant measures include:

(i) formulating a stepped care model for mental health – We will develop a multi‑disciplinary framework with tiers, from dealing with general emotional problems in the frontline to handling cases requiring follow‑up and more serious mental illnesses cases.  The framework sets out the roles of different professionals (such as teaching staff, social workers and healthcare workers) and their division of work in the provision of mental health services for cases in each tier, enabling them to work together and perform their respective roles smoothly;

(ii) raising community awareness of mental health – An annual promotional theme will be set for the Mental Health Workplace Charter, and recognition will be given to participating organisations for achieving targets. We will also promote the 4Rs Mental Health Charter in schools to promote the mental health of students, teaching staff and parents in a more holistic manner;

(iii) enhancing support for children and adolescents – We will extend and enhance the Three‑Tier School‑based Emergency Mechanism, and launch the “Mental Health Literacy” resource packages for senior secondary and lower primary levels. A real‑time, online youth‑emotional‑support platform will be set up in the second quarter of next year;

(iv) facilitating the integration of persons in mental recovery into the community – We will set up Transitional Support Service Teams for Persons in Mental Recovery, offering support to discharged patients waitlisted for halfway house service. The Social Welfare Department (SWD) will also set up an additional Integrated Community Centre for Mental Wellness; and

(v) strengthening teacher training and parent education – We will strengthen teachers’ capacity in the early identification of, and support for, students with mental health needs, and assist parents in acquiring the knowledge and skills in addressing children’s mental health.

(E) Build a Caring and Inclusive Society

193. I attach great importance to building a harmonious and stable community, one that is caring and inclusive, providing targeted assistance to the underprivileged and families in need. Social welfare tops public expenditures of all policy portfolios, with more than $300 million spent on social welfare each day. This underlines the Government’s emphasis on social welfare.

Targeted Poverty Alleviation

194. The Government has adopted the strategy of targeted poverty alleviation by directing resources to those most in need. This approach is well‑received by the community. We will focus on the following key areas:

(i) expanding the Strive and Rise Programme – We will launch the third cohort of the programme this year to recruit 4 000 mentees. We will also encourage youth leaders of the Alumni Club to organise activities for self‑development, enhance training for mentors and related initiatives;

(ii) extending the Pilot Programme on Community Living Room (CLR) – We will set up three additional CLRs next year in areas clustered with SDUs. They are expected to benefit about 1 300 target households, serving about 200 000 attendances a year.  Including the four CLRs already launched, they are expected to serve about 3 050 SDU households, drawing about 470 000 attendances a year;

(iii) enhancing the School‑based After‑School Care Service Scheme – Beginning this school year, the number of primary schools covered by the Scheme will increase from 50 to over 110, enabling students in need to stay at school outside school hours for care and learning support, allowing their parents to take up jobs. Subject to actual utilisation and outcome of the scheme, we plan to encourage more schools to participate in the scheme, without capping the number of places, in the 2025/26 school year; and

(iv) subsidising elderly recipients of the Comprehensive Social Security Assistance (CSSA) to reside in residential care homes for the elderly (RCHEs) in the Guangdong Province – We will launch a three‑year pilot scheme next year to subsidise elderly CSSA recipients retiring in Guangdong to reside in designated RCHEs in the Guangdong Province. Each eligible elderly person will receive a monthly subsidy of $5,000, subject to a quota of 1 000.

Care for the Elderly

195. The Government attaches great importance to caring for the elderly in need and has been constantly strengthening elderly services.  The total number of vouchers under the Residential Care Service Voucher Scheme for the Elderly will be increased by 20% to 6 000, allowing more frail elderly persons to be admitted to RCHEs of their choice and receive subsidised care services without waiting.

196. We will enhance the Residential Care Services Scheme in Guangdong to provide more choices and support for elderly persons who opt to stay in RCHEs in the province. Relevant measures include:

(i) increasing the number of participating RCHEs from the existing 4 to 11 in November 2024;

(ii) sharing part of the elderly participants’ medical expenses in Guangdong; and

(iii) engaging organisations to provide care services for participating elderly persons to help them adapt to living in Guangdong.

197. We are providing, through the Special Scheme to Import Care Workers for RCHs, additional manpower support for local residential care homes (RCHs) and enhancing their staff quality. We are also conducting a holistic review of the skill and qualification requirements of RCH staff providing health and rehabilitation services, including the creation of promotion ranks for incumbent health workers and the relaxation of the academic qualification for the Certificate in Progression Training for Care Workers programme. The review is expected to be completed by the end of this year.

198. The Government is also discussing with the banking sector possible ways to enable Hong Kong elderly persons retiring in Guangdong and Fujian Provinces to receive portable cash assistance from the Government more conveniently through banks.

Support Carers

199. The Government is committed to supporting carers. In addition to providing carers’ allowance, respite services, a one‑stop information gateway and the 24‑hour Designated Hotline for Carer Support 182 183, we launched the District Services and Community Care Teams – Pilot Scheme on Supporting Elderly and Carers in Tsuen Wan and Southern District this March. Trained by the SWD, Care Teams of the two districts identify and reach out to households in need, and provide support to the elderly and carers who seek help from the Designated Hotline. The scheme has achieved good results. In the past six months, the Care Teams visited 4 700 families and referred about 900 cases to social welfare organisations for follow‑up. Next year, we will extend the scheme to across the territory, supporting elderly persons and carers in all 18 districts.

200. We will also explore the setting up of an inter‑disciplinary and inter‑organisation database. It will cover carers of elderly persons and carers of persons with disabilities (PWDs) and the use of identification tools designed by university teams for the detection of high‑risk cases and early intervention and support.

Strengthen Support for Persons with Disabilities

201. We will further enhance the rehabilitation services for PWDs, including:

(i) establishing 14 Integrated Community Rehabilitation Centres across the city with the provision of 1 280 additional service places, to support PWDs based on their individual needs and rehabilitation progress through an integrated, case‑management approach;

(ii) creating 90 additional peer‑support posts to enhance peer assistance for PWDs and their carers;

(iii) setting up an additional District Support Centre for PWDs in New Territories East; and

(iv) providing about 1 040 additional places for day, residential and pre‑school rehabilitation services, and exploring the establishment of Special Child Care Centres on vacant kindergarten premises.

202. To encourage and support PWDs to engage in employment, the Government will introduce the “Caring Employer” medal, commending employers who actively engage PWDs; promote the establishment of more social enterprises engaging PWDs; and enhance the services and training models of sheltered workshops and integrated vocational rehabilitation services centres, building a better vocational rehabilitation and training ladder for PWDs.

Promote Women’s Development

203. There are many women in Hong Kong playing leading roles. To promote women’s workplace development, we will establish a network run by leading women from all walks of life and launch a mentorship programme “She Inspires”. Under the programme, female university students will be paired with mentors from the senior management of different sectors.

Support Working Parents

204. To support working parents, I announced the setting up of 10 aided, standalone, child care centres last year. The Government will set up one more child care centre providing 100 additional places for day child care services. Service places under the Neighbourhood Support Child Care Project will be increased by 25%, to 2 500, with the estimated number of beneficiaries increasing to 25 000.

Protect Children

205. The LegCo has enacted the Mandatory Reporting of Child Abuse Ordinance to require professionals in the social welfare, education and healthcare sectors to report serious child‑abuse cases. To strengthen parental education, the SWD will launch a pilot scheme to set up four Community Parents and Children Centres to promote parent‑child interaction and pass on positive‑parenting skills to parents through play‑based services, supporting families in need.

Provide Support for Ethnic Minorities

206. To help ethnic minorities (EMs) better integrate into the community, I announced the setting up of two additional support‑service centres for EMs last year, which will begin operation by the end of this year. The Government will engage one more support service centre to provide interpretation and translation services for EMs next year, reducing language barrier concerns. The EDB will strengthen Chinese learning support and parental assistance for non‑Chinese speaking (NCS) students (including EM students), providing after‑school Chinese‑language courses, enhancing the Online Chinese Language Self‑learning Resources and organising cross‑school, teacher‑learning communities. The EDB will also provide parental education activities for the parents of NCS children.

Care Teams

207. Care Teams are the Government’s key service teams under the improved district governance structure. Fully launched across the city last year, all 452 Care Teams have been working diligently and providing a wide range of caring and support services for the community. To date, they have visited about 230 000 elderly households and other households in need, and provided over 22 000 counts of simple household care or other support services. Their service have been well‑received by the public. The Government will regularise the funding provision for Care Teams and increase funding by 50% in the next term of service in support of their work.

(To be continued.) read more

Result of tenders of RMB Sovereign Bonds held on October 16, 2024

The following is issued on behalf of the Hong Kong Monetary Authority:

     Result of the tenders of RMB Sovereign Bonds held on October 16, 2024: 
 

Tender Result
*********************************************************************
Tender Date : October 16, 2024
Bonds available for Tender : 2-year RMB Bonds
Issuer : The Ministry of Finance of the People’s Republic of China
Issue Number : BCMKFB24001 (Further Issuance)
Issue and Settlement Date : October 18, 2024
Maturity Date : March 15, 2026 (or the closest coupon payment date)
Coupon Rate : 2.20 per cent
Application Amount : RMB 7,626 million
Issue Amount : RMB 3,000 million
Average Accepted Price : 100.68
Lowest Accepted Price : 100.63
Highest Accepted Price : 100.91
Allocation Ratio (At Lowest Accepted Price) : Approximately 36.36 per cent
 
Tender Result
*********************************************************************
Tender Date : October 16, 2024
Bonds available for Tender : 3-year RMB Bonds
Issuer : The Ministry of Finance of the People’s Republic of China
Issue Number : BCMKFB24002 (Further Issuance)
Issue and Settlement Date : October 18, 2024
Maturity Date : March 15, 2027 (or the closest coupon payment date)
Coupon Rate : 2.28 per cent
Application Amount : RMB 8,799 million
Issue Amount : RMB 3,000 million
Average Accepted Price : 101.14
Lowest Accepted Price : 101.01
Highest Accepted Price : 101.37
Allocation Ratio (At Lowest Accepted Price) : Approximately 27.05 per cent
 
Tender Result
*********************************************************************
Tender Date : October 16, 2024
Bonds available for Tender : 5-year RMB Bonds
Issuer : The Ministry of Finance of the People’s Republic of China
Issue Number : BCMKFB24003 (Further Issuance)
Issue and Settlement Date : October 18, 2024
Maturity Date : March 15, 2029 (or the closest coupon payment date)
Coupon Rate : 2.39 per cent
Application Amount : RMB 12,456 million
Issue Amount : RMB 2,000 million
Average Accepted Price : 101.86
Lowest Accepted Price : 101.72
Highest Accepted Price : 102.49
Allocation Ratio (At Lowest Accepted Price) : Approximately 56.00 per cent
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CE’s speech in delivering “The Chief Executive’s 2024 Policy Address” to LegCo (9)

VIII. Improve People’s Livelihood in Pursuit of Happiness

 (A) Housing: Continuously Enhance Speed, Quantity, Quality and Efficiency

Increase Public Housing Supply

157. Housing is an issue of great public concern. Despite the relatively slow pace of creating land for housing development in the past, the problem of back‑loaded public housing supply has started to turn around through the unremitting efforts of the Government. While we have identified land for providing sufficient public housing units to meet the long‑term demand and enhanced the speed as well as efficiency of housing development, land creation and housing construction take time. To bridge the short‑term supply gaps in these few years, I announced in 2022 the introduction of the innovative LPH with the provision of 30 000 units, in order to reduce the Composite Waiting Time for Subsidised Rental Housing (CWT).

158. This measure has been bearing fruit. Coupled with LPH, the total public housing supply in the coming five years (2025‑26 to 2029‑30) will reach 189 000 units, which is about 80% higher than that of the first five‑year period since the current‑term Government took office (2022‑23 to 2026‑27). In the past two years, the average waiting time for PRH dropped by half a year, from the peak of 6.1 years to the current 5.5 years. Following the gradual completion of LPH next year, the CWT could be shortened by one and a half years to 4.5 years in 2026‑27.

159. I am eager to house PRH applicants as early as possible. The Advance Allocation Scheme I proposed when I took office has so far helped more than 2 000 families move in their flats five to nine months in advance, saving nearly $50 million of rental expenditure on the part of the beneficiaries. By 2027‑28, about 10 000 additional units will be completed, enabling PRH applicants to move in earlier than originally anticipated.

160. In addition, the first batch of some 2 100 LPH units, located on Yau Pok Road, Yuen Long, will be completed for intake in the first quarter of next year. We expect to complete a total of about 9 500 units next year, moving towards the target of completing about 30 000 units by 2027‑28.

Devise a System on the Renting of Subdivided Units in Residential Buildings to Tackle the Issue

161. The Task Force on Tackling the Issue of SDUs has already submitted a report. The Government has decided to put in place, through legislation, a system on the renting of SDUs in residential buildings. SDUs meeting the required standards will be named as Basic Housing Units.

162. Current SDUs differ significantly in their conditions regarding fire safety, ventilation, floor area, availability of individual kitchens and toilets and whether they are separated or combined, among others. As such, it is necessary to set minimum standards to eradicate inadequate SDUs. At present, there are some 110 000 households living in SDUs, indicating a genuine demand for these units. As the aggregate rent received from several units subdivided from a single flat is much higher than the rent of one whole flat without subdivision, it gives owners a strong financial incentive to operate rental SDUs. Under appropriate regulation, the market demand for SDUs will be satisfied by Basic Housing Units that meet the required standards.

163. Substandard SDUs in residential buildings must be converted into Basic Housing Units that meet the required standards. Upon conversion, these units must be confirmed by professionals their compliance with the required standards and apply for recognition. Otherwise, there would be criminal liability on the part of owners to rent out substandard SDUs, while the tenants concerned will not be held liable. We will allow time for owners of existing SDUs in residential buildings to carry out the necessary works.  A grace period will be prescribed by law, during which enforcement actions will not be taken against the illegal renting of substandard SDUs. To this end, the Government will set up a registration system, enabling registered owners to be entitled to the grace period. The registration system only accepts applications from owners of pre‑existing SDUs in residential buildings under rental. New SDUs entering the market must apply for recognition as up‑to‑standard Basic Housing Units before renting out, hence no grace period is needed for their conversion. Given that only new SDUs recognised as up‑to‑standard Basic Housing Units are allowed to be rented out, and that pre‑existing registered SDUs must be converted into Basic Housing Units in conformity with the required standards or they will face orderly eradication if the owners concerned continue to rent out substandard SDUs illegally after the grace period, the number of substandard SDUs in residential buildings will gradually go down to zero.

164. The Government will allow an adequate grace period for pre‑existing SDU owners and households to make necessary arrangements, and handle SDUs in residential buildings by batches in an orderly manner having regard to the market supply of Basic Housing Units and taking into consideration the supply of and policy on public housing. The Secretary for Housing will be empowered by law to decide, upon expiry of the grace period, when to take enforcement actions against substandard SDUs by batches in an orderly manner in light of actual circumstances.

165. The Government proposes that the standards of “Basic Housing Units” should include the provision of windows, an individual toilet, a floor area of no less than 8 square metres, etc. The Deputy Financial Secretary and the Secretary for Housing, being the head and deputy head of the Task Force respectively, will announce the details and seek the views of the LegCo and stakeholders for drawing up the legislative proposals and related measures, such as the timetable for registration.

Enhance the Housing Ladder

166. The HKHA will further enhance the housing ladder in addressing the aspiration of the public for home ownership, including:

(i) adjusting the ratio between PRH (including Green Form Subsidised Home Ownership Scheme (GSH) units) and subsidised sale flats (SSF) – The HKHA is reviewing public housing projects to be completed in the middle or near the end of the next decade, with an aim to gradually adjust the ratio between PRH and SSF from the current 7:3 to 6:4;

(ii) increasing the chance of applicants who have made repeated attempts to purchase SSF – Starting from the next GSH and HOS sale exercises, an extra ballot number will be allocated to applicants who failed to purchase an SSF in the last two consecutive sale exercises of the same type of SSF; and

(iii) expediting the circulation of PRH units – The HKHA will tighten up the Well‑off Tenants Policies by raising the additional rent and lowering the income limits for well‑off tenants, so that public resources are appropriately allocated to applicants in need. Meanwhile, the ratio between Green Form and White Form in respect of HOS flats will be revised from 4:6 to 5:5 to encourage more PRH tenants to buy HOS flats.

Combat Public Rental Housing Tenancy Abuse

167. In recent years, the HKHA has been strengthening its efforts to combat PRH tenancy abuse. The number of PRH flats recovered by the HKHA due to tenancy abuse and breach of tenancy agreement or housing policies over the last two years adds up to 5 000, equivalent to building a medium‑sized housing estate. The results are prominent. The HKHA will launch the “Cherish Public Housing Resources Award Scheme” in January next year to offer rewards to persons who provide concrete intelligence that leads to identification of substantiated tenancy abuse of PRH.

Take Forward Public Rental Housing Redevelopment

168. The HKHA is proceeding with 11 redevelopment projects. We will announce the findings and details of the study on the redevelopment of Choi Hung Estate later this year, and release the redevelopment plans for Sai Wan Estate and Ma Tau Wai Estate next year.

Stabilise the Supply of Spade-ready Sites for Private Housing

169. According to the Long Term Housing Strategy, the supply target for private housing in the coming decade is projected to be 132 000 units. The Government will make available land over the next five years to provide about 80 000 private housing units.

Relax the Maximum Loan-to-Value Ratios of Property Mortgage Loans

170. Taking into account the latest economic and financial environment and on the basis that the stability of the banking system is maintained, the HKMA will adjust the maximum loan‑to‑value ratio for residential properties to 70%, regardless of the value of the properties, whether the properties are for self‑use or held by companies, and whether the purchasers are first‑time home buyers, while the maximum debt servicing ratio will be adjusted to 50%. For non‑residential properties, the maximum loan‑to‑value ratio and maximum debt servicing ratio will be adjusted to the respective same levels.

Further Improve Building Safety and Building Management

171. Through the Building Management Professional Advisory Service Scheme, the Home Affairs Department assisted in the formation of about 100 owners’ corporations in the past two years in nine districts with more “three‑nil” buildings. The scheme has been expanded to cover all districts across the city in mid‑2024, with the contract period extended to three years.

172. Next year, the Government will implement a pilot scheme on “joint property management” in selected areas, under which the same property management company will be engaged to provide joint management services for aged building clusters in the vicinity, enabling “three‑nil” and aged buildings to have access to basic property management services at affordable fees.

173. To enhance deterrence against failure to comply with notices or orders by required time and against the erection of large‑scale unauthorised building works (UBWs), the Government will put forth proposals to amend the Buildings Ordinance and launch a public consultation later this year. Among other things, we will propose increasing the types of exempted works and minor works under the Buildings Ordinance, so as to handle minor illegal structures of lower risks in a pragmatic manner. The relevant legislative amendment proposals will be introduced in 2026.

174. To foster an elderly‑friendly building environment, the Government will put forward a series of proposals on elderly‑friendly building design for phased implementation.

(B) Create Land to Build More Housing

175. The Government remains determined to sustain efforts in land production. We will assess the situation and take forward various projects in a steady and paced manner. According to the latest forecast, the supply of developable land, i.e. spade‑ready sites, from Government‑led projects will reach about 3 000 hectares in the next decade. The Government will take into account the latest market changes when disposing land, ensuring a stable and healthy development of the market.

Cut More Red Tapes and Lower Costs

176. The Government is making vigorous efforts in streamlining land development procedures. We have promulgated an internal circular, expressly stating that all approving departments are required to take a facilitating role and strive to streamline the relevant procedures when processing applications. The initiative is well‑received by the industry. We will continue to cut red tapes and streamline procedures. Relevant measures include:

(i) leveraging industry resources to enhance speed and efficiency – We will outsource drone inspections of external walls of buildings and UBWs as well as associated analyses, to private companies. We will also engage professionals to handle the vetting work of small‑scale or temporary structures through self‑certification;

(ii) reducing construction costs – We will strengthen the role of the Project Strategy and Governance Office under the DEVB to complete a strategic study on construction costs by the end of this year and propose improvement measures such as increasing direct procurement of construction materials and products by the Government, reviewing the building design standards, and facilitating local application of cost‑effective construction materials and technologies from the Mainland and overseas; and

(iii) expanding project co‑ordination – We will expand the purview of the Development Projects Facilitation Office under the DEVB to facilitate co‑ordination with departments in expediting the approval of land use and related matters for the development of I&T and other industries in the Northern Metropolis, in addition to vetting of large‑scale private residential and commercial developments.

Facilitate R&D and Application of Construction Technologies and Align Hong Kong Standards with Guobiao

177. The DEVB established the Building Technology Research Institute (BTRi)  this August. Apart from conducting R&D on innovative materials, construction methods and technologies, the BTRi also devises standards, conducts testing and provides accreditation to spearhead innovation in the industry. A Modular Integrated Construction (MiC) Manufacturer Certification Scheme will also be launched in synergy with production bases in the Mainland, so as to leverage the complementarity of the construction industries in Guangdong and Hong Kong.

178. We will also review and enhance Hong Kong’s building standards, which have been in place for many years, through the BTRi by making reference to overseas building standards and Guobiao (GB), with a view to promoting local application of high‑quality and cost‑effective construction materials from the Mainland and overseas. Moreover, when high‑quality GB construction materials and technologies are applied locally, it will also be beneficial for GB to explore international markets. We will also closely liaise with our counterparts in the Guangdong Province to take forward the formulation of the GBA Construction Standards.

179. The HKHA will make wider use of MiC 2.0, the second generation MiC approach jointly developed with research institutions, and streamline the on‑site installation procedures to safeguard construction safety. Tender documents will also expressly state the works procedures permissible for the use of construction robotics to enhance site safety and construction efficiency.

Commence the Environmental Impact Assessment Process for Kau Yi Chau Artificial Islands

180. The Government will take forward the Kau Yi Chau Artificial Islands project in a steady and prudent manner. We will commence the statutory environmental impact assessment (EIA) process for the reclamation works under the project by the end of this year. The target is to complete the relevant approval procedures next year. The related detailed engineering design will commence later this year.

Expedite Urban Redevelopment

181. The Urban Renewal Authority is conducting planning studies for Tsuen Wan and Sham Shui Po, and will submit renewal master plans in the second half of next year. Meanwhile, the DEVB is examining the use of newly developed land to drive large‑scale urban redevelopment projects, including the cross‑district transfer of plot ratios and the construction of more dedicated rehousing estates, etc. The target is to formulate proposals in the first half of next year.

182. To continue encouraging redevelopment and conversion of aged industrial buildings, we will extend an array of measures, which are expiring soon under the revitalisation scheme for industrial buildings, to the end of 2027, continuing to allow an increase in plot ratio of up to 20% for industrial building redevelopment projects.

(To be continued.) read more

CE’s speech in delivering “The Chief Executive’s 2024 Policy Address” to LegCo (8)

VII. Take Forward the Northern Metropolis as Growth Engine and Deepen GBA Collaboration

(A) Take Forward Development of the Northern Metropolis

138. The Northern Metropolis is the new engine of Hong Kong’s economic development. We will expedite the implementation of economic and housing‑related projects in the Northern Metropolis, while maintaining a prudent fiscal position.

139. The Northern Metropolis will gradually enter the maturity phase. In the next five years, some 60 000 housing units involving about 10 new PRH estates will be completed and ready for intake. The first batch of land at the San Tin Technopole will be put to the market, and the new Huanggang Port building with co‑location of immigration and customs clearance arrangement will be completed. In the second five‑year period, the number of new housing units will increase by about 150 000, with over 10 million square metres of gross floor area available for economic uses. The first joint‑user government building in Kwu Tung North will be put to use, and the expanded North District Hospital will be ready for service. As for transport infrastructure, construction of the Northern Link (NOL) Main Line is scheduled for completion in 2034, and the Northern Metropolis Highway (San Tin Section) is set to open in 2036. These developments will significantly boost our economic growth and bolster our R&D and technology industries, while providing a better living environment which will help attract talents and encourage them to settle in Hong Kong for good. It will also enhance the quality of life of the people of Hong Kong, improving their livelihood and well‑being.

140. The Government will seek funding for the first‑stage of San Tin Technopole’s infrastructure and begin construction works this year. The target is to deliver about 20 hectares of new I&T sites in phases, beginning in 2026‑27, for the Hong Kong Science and Technology Parks Corporation’s development and operation. In addition, the second‑phase of the Yuen Long South NDA will begin in mid‑2025. The preliminary development proposal for Ngau Tam Mei will be announced shortly, with land reserved for developing the Northern Metropolis University Town, the third medical school and an integrated teaching hospital. This will be followed by the announcement of the preliminary development proposals for the New Territories North New Town and the Ma Tso Lung area before end this year. The rezoning process for Sandy Ridge in the North District will begin this year, expanding its I&T sites to 10 hectares for use as data centres and related purposes.

141. We are exploring the establishment of a pilot industrial park by granting some of the logistics sites in the Hung Shui Kiu/Ha Tsuen NDA to a company established and led by the Government. The company will, in accordance with the Government’s industrial policies, be responsible for formulating the park’s development and operation strategies (including considering whether to accept strategic investment), taking up day‑to‑day management and attracting businesses and investment. We will announce the details in the first quarter of next year. Separately, we will consider flexible disposal approaches for industry land to meet the development needs of individual industries, with a view to driving industry development.

142. To expedite development of the Northern Metropolis, the Government will adopt, on a pilot basis, a large‑scale land‑disposal approach, under which sizable land parcels with commercial value and earmarked for provision of community facilities will be selected and granted to successful bidders for collective development. This approach can speed up development of the land parcels, enabling a more co‑ordinated design for the area. We have identified three land parcels, each of 10 to 20 hectares, as pilot sites.

(B) Promote Development of the Hong Kong‑Shenzhen I&T Park in the Loop

143. The Hetao Shenzhen‑Hong Kong Science and Technology Innovation Co‑operation Zone, located on both sides of the Shenzhen River, consists of the Shenzhen Park and the Hong Kong Park. Capitalising on the strengths of “One Country, Two Systems” with the geographic advantages of “one river, two banks”, the Government will develop the Hong Kong Park in the Loop into a world‑class, industry‑academia‑research platform, an internationally competitive R&D transformation and pilot production base for industries, a hub for pooling global I&T resources, as well as a testing ground for institutional and policy innovation.

144. I have established the Steering Committee on the Hong Kong‑Shenzhen I&T Park in the Loop, chaired by myself, to lead the HKSAR Government to formulate the overall strategy, planning and layout for the development of the Hong Kong Park. The Development Outline for the Hong Kong Park of the Hetao Shenzhen‑Hong Kong Science and Technology Innovation Co‑operation Zone will be published later this year, setting out innovative policies to facilitate the flow of personnel, materials, capital and data between the two parks, making the co‑operation zone a crucial source of new quality productive forces for our country.

145. The Hong Kong Park will be developed in two phases from west to east. The Government is boosting both the speed and quantity, doubling the first‑phase development’s gross floor area to 1 million square metres. Construction of the first three buildings will be completed in phases, from the end of this year. The first batch of tenants, from life and health technology, AI, data science and other pillar industries, will begin to move in next year. The remaining five buildings will be completed in the coming five years.

146. We are also exploring with the Mainland authorities the trial implementation of innovative facilitation measures, including facilitating cross‑boundary travel of designated personnel of the two parks, enabling the cross‑boundary movement of materials by using low‑altitude, unmanned aerial vehicles, and facilitating cross‑boundary fund transfers by Mainland enterprises settling in the Hong Kong Park.

(C) Leverage the Strengths of the GBA to Foster Mutual Capacity Development

147. The GBA is a strategic fulcrum of the new development pattern of our country, a demonstration zone of high‑quality development, and a pioneer of Chinese modernisation. And Hong Kong is an active participant, facilitator and beneficiary.

148. To strengthen top‑level planning and steer, I have established the Steering Group on Integration into National Development to lead the HKSAR Government and all sectors of the community to take a more proactive role in promoting the integrated development of Hong Kong and the Mainland, particularly the Mainland cities of the GBA, deepening collaboration through various co‑operation task forces between the two sides. The Government will continue to promote the GBA development by building a higher level of connectivity, facilitating policy innovations and breakthroughs, pursuing wider harmonisation of rules and mechanisms, and expediting co‑ordinated development of I&T and related industries.

Capitalise on the Mainland’s Land Resources and Hong Kong’s Advantages in Cargo Flow to Develop a Logistics Industry Circle

149. The HKIA Dongguan Logistics Park is an excellent example for the development of an innovative co‑operation mechanism. The park, built with Hong Kong investment, combines our strengths in aviation and logistics with the Mainland’s advantages in terms of land and manpower resources, leading to a reduction in operating costs and cargo handling time. We will work with the Dongguan Municipal Government to jointly develop the permanent logistics park.

Promote Collaboration in the Airport Cluster of the GBA to Expand Business Networks

150. We will combine the strengths of the HKIA and the Zhuhai Airport, enhancing the Fly‑Via‑Zhuhai‑Hong Kong direct passenger service and promoting the development of the international air‑cargo business in collaboration with the Zhuhai Municipality, to achieve mutual benefits.

Enhance the Mechanism on Recognition of Professional Qualifications

151. In collaboration with the Guangdong Province, we have established an evaluation mechanism of post titles for the first batch of Hong Kong engineering professionals. We will continue to do so for other construction professions on a gradual basis.  We are also collaborating with the Guangdong Province and Macao to create GBA Standards on the skill level for skilled workers in the construction sector, and will work with the “One Examination, Multiple Certification” arrangement so that those who pass the examinations adopting the GBA Standards can concurrently obtain vocational skill certificates issued by the three places. This will enhance the training quality of the construction industry in the GBA and nurture talents.

Mobilise Capital for Joint Investment in the GBA

152. The HKIC is proactively exploring with relevant Mainland organisations co‑operation opportunities for joint investment in GBA projects that present the potential to realise economic and social benefits, taking into account market developments.

Promote Data Flow for Public Convenience and Business Facilitation

153. The Standard Contract for the Cross‑boundary Flow of Personal Information Within the GBA (Mainland, Hong Kong), piloted in the banking, credit referencing and healthcare sectors since last year, has been operating smoothly, streamlining cross‑boundary data flow in compliance with relevant rules. We will extend the measure to all sectors, promoting more cross‑boundary services to benefit the public and businesses while facilitating data flow throughout the GBA.

Scale up Medical Collaboration in the GBA

154. We will extend the Elderly Health Care Voucher GBA Pilot Scheme to cover nine Mainland cities in the GBA, and expand the sharing of cross‑boundary medical records via the eHealth platform. We will work to enable the cross‑boundary use of data, samples, drugs and medical devices through the GBA Clinical Trial Collaboration Platform and the Real‑World Study and Application Centre in the Hetao Shenzhen‑Hong Kong Science and Technology Innovation Co‑operation Zone. That will accelerate development of the pharmaceutical industry for medical innovation. We will also foster collaboration with the GBA to promote specialist training that aligns with international standards.

Strengthen Legal Co-operation

155. We will continue to follow up on the implementation of the enhanced arrangement for cross‑boundary service of judicial documents, and promote the establishment of a GBA legal information platform and a dedicated platform for GBA lawyers to facilitate professional exchange and training.

Nurture Talents and Create Opportunities for Youth Development

156. We have been encouraging local universities to offer education services in the GBA. To date, four GBA campuses have been set up. In addition, we have set up the GBA Youth Employment Scheme to encourage Hong Kong youths to work in the region. We are exploring the provision of a reciprocal arrangement.

(To be continued.) read more