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Make Wise Use of Resources and Team Up for a Brighter Future

The public consultation for the new Budget has officially commenced today. We hope to better understand the perspectives, ideas and opinions of members of the public, so that we can build consensus on the directions of the Budget. In light of a continuously uncertain external environment, a complex and changing global political and economic landscape, and the structural adjustments taking place in Hong Kong's economy, we must manage public finances more prudently. Meanwhile, it is equally important to accelerate the development of our economy. At the present stage, both development stability are crucial to our progress.

We welcome members of the public to share their views on the new Budget (Note). As we work together, Hong Kong will reinforce its strengths and achievements, and accelerate advancement towards better goals amid the challenging external conditions and the evolving socio-economic circumstances.

To promote the better development of Hong Kong, we have been striving to identify new areas of economic growth, develop new markets and step up our efforts to promote innovation and technology (I&T). In addition to fast-tracking the development of I&T as an industry, we are also committed to enhancing productivity across various sectors through technological empowerment. These efforts are bearing fruit, laying a more solid foundation to expedite Hong Kong's high-quality development in the future.

As we approach the end of the year, the Central Government has continued to roll out robust measures to stabilise the economy and facilitate business operations. Coupled with various initiatives to support Hong Kong, market sentiment has gradually improved in recent months. In October, the total retail sales value recorded a month-on-month increase, and restaurant revenues had also remained largely stable. Two weeks ago, after the resumption and expansion of multiple-entry Individual Visit Scheme for Shenzhen residents, the number of Mainland visitors to Hong Kong increased significantly. Last weekend, the average number of Mainland visitors exceeded 130,000, up over 15% from the average number in the previous month, and more than 20% compared to the first weekend of December last year. The number of visitors from Southeast Asian countries has also returned to nearly pre-pandemic levels. The local retail, dining and tourism sectors are becoming notably more vibrant. The Kai Tak Sports Park is scheduled to be officially opened in March 2025, and there will be more large-scale international events and conferences held in Hong Kong in the first quarter next year. We believe they will further stimulate the market and enhance positive expectations for investment in Hong Kong.

In fact, while strolling along the streets or visiting shopping malls, one should have already noticed that renowned or new brands from the Mainland and overseas have set up or expanded their business in Hong Kong. Whether it is popular fashion brand from Korea, famous gallery from Switzerland, or enterprises in the catering business from around the world, these additions will provide tourists and local consumers with richer, higher quality and novel choices and experiences.

Many Mainland and overseas enterprises have pointed out that they decided to expand in the city because of the diversity of the clientele in Hong Kong, and their pursuit of quality products and services. These fit their business development needs well. Moreover, Hong Kong, serving as a key link between the Mainland and international markets, can attract consumers from around the globe. Hong Kong is an ideal international showroom for them to build and enhance their brands' image, and explore new markets.

Yesterday, I attended the opening ceremony of the 58th Hong Kong Brands and Products Expo, and took the opportunity to tour and shop around.

Yesterday, I visited and shopped at the Hong Kong Brands and Products Expo to support the exhibitors.

Yesterday, I visited and shopped at the Hong Kong Brands and Products Expo to support the exhibitors.

In addition to the retail and catering sectors, the financial services industry, being a traditional pillar of our economy, is also under a bright spotlight. For instance, the asset and wealth management sector has seen robust growth, with net fund inflows increasing approximately 3.4 times last year to around HK$390 billion. In the last quarter, the number of licensed asset management companies in Hong Kong increased by 5% year-on-year, and the number of open-ended fund companies surged over 132% compared to the previous year. Driven by positive expectations, many international asset management firms and banks are expanding their manpower and scale in Hong Kong, including renting larger office spaces.

On the other hand, the local I&T ecosystem is becoming increasingly vibrant. According to the latest data, the number of startups in Hong Kong has reached a new high, with the proportion of startups with non-local founders rising to 28%. Many founders of startups from the Mainland, Europe and the United States, as well as other Asian regions, have recognised Hong Kong's unique advantages in I&T development, along with its comprehensive fund-raising market and government policy support. They are keen to realise their ambitions here.

In fact, the total number of companies in Hong Kong with parent companies located outside Hong Kong has also reached a record high. This reflects that, despite ongoing geopolitical pressures, both Mainland and international enterprises remain confident in Hong Kong. They have chosen this city as an important base for their regional and global operations. This has indicated that our efforts to promote Hong Kong's advantages and share its true stories with the world are bearing fruit.

These new companies, whether startups or large enterprises, and regardless of whether they are in the traditional or emerging industries, will contribute to Hong Kong's economic development through investments and creation of more job opportunities. They have cast a vote of confidence in Hong Kong's future.

By focusing our efforts on economic growth and creating more opportunities and wealth for the community, we can establish favourable conditions and a conducive environment for addressing various issues in the society. Challenges are inevitable at every stage of development. While facing them head-on, we should also set our sights on bigger opportunities and brighter prospects. Our experience over the past few decades suggests that Hong Kong has always remained resilient during highs and lows, and found the right direction and opportunities despite changes and challenges. In this spirit, we will break new grounds for development and scale new heights.

Note: Members of the public can share their views through various channels, including the website at www.budget.gov.hk or the dedicated Facebook page for the Budget, or by email (budget@fstb.gov.hk), phone (2810 3768), fax (2147 5770) or post (Budget Consultation Support Team, 24/F, Central Government Offices, 2 Tim Mei Avenue, Tamar, Hong Kong).

December 15, 2024