Category: Transport

MIL-OSI Asia-Pac: Government appoints Professor Tsui Lap-chee as expert advisor to Task Group on New Medical School

Source: Hong Kong Government special administrative region

The Government announced today (February 26) the appointment of Professor Tsui Lap-chee as an expert advisor to the Task Group on New Medical School.

     The Secretary for Health, Professor Lo Chung-mau, said, “Professor Tsui is an internationally renowned expert in the field of molecular human genetics, the incumbent Chair of the College Council of the Hong Kong Chu Hai College and the former President and Vice-Chancellor of the University of Hong Kong, with extensive experience in leading both the higher education sector and the area of academic research. The next stage of the work of the Task Group will be to assess the proposals submitted by universities interested in establishing the new medical school according to the devised parameters. I am very confident that Professor Tsui will definitely be able to provide invaluable advice to the Task Group in its new stage of work, particularly in the consideration of the governance and scientific research development strategies of the new medical school.”

     The Chief Executive announced in his 2024 Policy Address that the Government supports the establishment of a third medical school by a local university, with a view to nurturing more talented medical practitioners in support of the local healthcare system to provide quality service, while at the same time driving Hong Kong’s development into an international medical training, research and innovation hub. The Government invited seasoned local, Mainland and overseas academics for medical teaching and university management, professionals, the Chairman of the Medical Council of Hong Kong and the President of the Hong Kong Academy of Medicine, together with relevant Directors of Bureaux and Heads of Departments of the Government, to form the Task Group. The Task Group is responsible for devising the direction and parameters for the new medical school, as well as selecting a suitable university for setting up the new medical school.

     â€‹Since its establishment in October 2024, the Task Group has formulated the directions and parameters for establishing the new medical school, and issued a letter of invitation in December last year to local universities interested in establishing the new medical school for submission of proposals by March 17 this year. In the next stage of the work of the Task Group, concrete criteria for assessing proposals will be formulated to ensure that a qualified and eligible university will be selected in a transparent and fair manner for the establishment of the new medical school. It is anticipated that the Task Group will complete its assessments and make recommendations to the Government within this year.

     The biography of Professor Tsui is as follows:

     Professor Tsui is an expert in the field of molecular human genetics with outstanding achievements in the realms of genetic research and medical innovation. Professor Tsui served as the 14th President and Vice-Chancellor of the University of Hong Kong and is the Founding President of the Hong Kong Academy of Sciences. He is also currently the Chairman of the University of Hong Kong Foundation for Educational Development and Research, and Emeritus University Professor at the University of Toronto.

     The membership of the Task Group with effect from February 26, 2025, is as follows:

Co-chairmen
————
Secretary for Education
Secretary for Health

Alternate Co-chairmen
——————
Permanent Secretary for Education/Under Secretary for Education
Permanent Secretary for Health/Under Secretary for Health

Expert advisors
————
Chairman of the Medical Council of Hong Kong
President of the Hong Kong Academy of Medicine (or representative)
Professor Nivritti Gajanan Patil
Professor Joseph Sung Jao-yiu
Professor Zhao Yupei
Professor Tsui Lap-chee *
Mr Philip Tsai Wing-chung

Official members
————
Permanent Secretary for Development (Planning and Lands) (or representative)
Permanent Secretary for Innovation, Technology and Industry (or representative)
Secretary-General of the University Grants Committee (or representative)
Director of Health (or representative)
Chief Executive of the Hospital Authority (or representative)
Deputy Secretary for Education (1)
Deputy Secretary for Health 3
Commissioner for Primary Healthcare (or representative)

* New appointment

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ22: COVID-19 Vaccination Programme

Source: Hong Kong Government special administrative region

LCQ22: COVID-19 Vaccination Programme
LCQ22: COVID-19 Vaccination Programme
*************************************

Following is a question by Professor the Hon Chan Wing-kwong and a written reply by the Secretary for Health, Professor Lo Chung-mau, in the Legislative Council today (February 26):Question: To safeguard public health, the Government is implementing a territory-wide COVID-19 Vaccination Programme (the Vaccination Programme) free of charge for eligible persons. In this connection, will the Government inform this Council:(1) of the respective numbers of received vaccination doses and vaccination rates under the Vaccination Programme in the past two years; among them, the respective numbers of received doses and vaccination rates for initial and booster doses;(2) of the respective numbers of received booster doses and booster vaccination rates in the past two years for various priority groups eligible for free booster vaccination, i.e. (i) older adults aged 50 or above (including those living in residential care homes), (ii) persons aged 18 to 49 years with underlying comorbidities, (iii) persons with immunocompromising conditions aged six months and above, (iv) pregnant women, and (v) healthcare workers;(3) of the financial expenditure incurred by the Government in implementing the Vaccination Programme in each of the past two years;(4) whether it knows the number of deaths due to COVID-19 infection in the past two years, and the number of COVID-19 vaccine doses received by the deceased prior to their death; and(5) since the restoration of normalcy after the pandemic, what measures the Government has put in place to promote COVID-19 vaccination among the public, particularly high-risk groups, in order to effectively prevent COVID-19?Reply:President, With the ever evolvement of the SARS-CoV-2 virus, the prevention and treatment capacities of the local healthcare system and society as a whole have been enhanced significantly. COVID-19 has been managed as an upper respiratory tract illness by the Government since early 2023. Despite this, the World Health Organization (WHO) highlights that high-risk persons should receive COVID-19 booster doses at appropriate times to lower the risks of serious illness and death. With reference to the recommendations from the WHO as well as the Scientific Committee on Vaccine Preventable Diseases and the Scientific Committee on Emerging and Zoonotic Diseases (JSC) under the Centre for Health Protection of the Department of Health (DH), the Government is currently providing the JN.1 lineage COVID-19 vaccines for eligible individuals aged six months or above. As the vast majority of the public had past COVID-19 infection, according to the recommendation of the JSC, the Government has simplified the arrangements for initial vaccination, which replaced the previous three-dose definition for initial vaccination, since August 19, 2024. Under the new arrangement, in general, persons aged five or above (regardless of their history of infection with COVID-19) are considered to have completed initial vaccination by receiving one dose of mRNA COVID-19 vaccine. Persons aged six months to four years who have been infected with COVID-19 are considered to have completed initial vaccination by receiving one dose of mRNA COVID-19 vaccine. For those who have not been infected, they should receive two or three doses of vaccines in accordance with the recommendations of the vaccine manufacturers to be considered as having completed initial vaccination. In addition, the JSC recommended that high-risk priority groups, including individuals aged 50 or above and those with chronic diseases, should receive a booster dose at least six months after the last dose or COVID-19 infection (whichever is later), regardless of the number of doses received previously, in order to enhance protection. Between 2023 and 2024, the activity level of SARS-CoV-2 virus followed a cyclical pattern, with minor waves occurring every four to six months. For example, the virus became active in early January 2024 with a positive rate of 6.8 per cent among respiratory specimens, peaking at 16.8 per cent in early March before decreasing to lower levels in June. The subsequent wave peaked at 9.06 per cent from late July to early August before subsiding. As of the week ending on February 8, 2025, the positive rate for COVID-19 testing remained at a low level of 0.46 per cent. Regarding the monitoring of variant strains, the JN.1 and its descendant lineages were the most prevalent variant strains. The reply, in consultation with the DH and the Hospital Authority (HA), to the question regarding the COVID-19 Vaccination Programme raised by Professor the Hon Chan Wing-kwong is as follows:(1) As at January 31, 2025, a total of more than 21 million doses of COVID-19 vaccines were administered under the COVID-19 Vaccination Programme. In 2023 and 2024, about 586 000 and about 222 000 doses were administered respectively. The definition for initial vaccination was updated since August 19, 2024. Starting from August 19, 2024, about 61 000 doses of COVID-19 vaccines were administered, including about 1 000 initial doses and about 60 000 booster doses. The estimated proportion of people that completed COVID-19 initial vaccination in Hong Kong is about 94 per cent.(2) According to the recommendation of the JSC, since April 20, 2023, citizens have to declare themselves as priority groups to continue receiving free boosters. Therefore, the DH only maintains records of the actual number of vaccinations for individuals who declared themselves as belonging to a priority group on or after April 20, 2023. From April 20, 2023 to 2024, around 342 000 booster doses of COVID-19 vaccines were administered for the self-reported priority groups. The vaccination figures broken down by the priority groups are as follows:

Self-reported priority group
Number of booster doses administered

Persons aged 50 or above and adult residents living in residential care homes
332 000

Healthcare workers
6 000

Persons aged 18 to 49 years with underlying comorbidities
3 000

Persons aged six months or above with immunocompromising conditions
1 000

Pregnant women
Less than 400

Total
Around 342 000

Note: Due to the lack of data on the population size of some priority groups, the vaccination rate cannot be calculated.(3) The expenditure figures of the COVID-19 Vaccination Programme for the 2023-24 and 2024-25 (as at January 31, 2025) were $230 million and $124 million respectively.(4) According to the data of the Deaths Registries, a total of 2 944 cases died of COVID-19 between January 2023 and December 2024, with over 98 per cent involving adults aged 50 or above, and among them, nearly 80 per cent had not received COVID-19 vaccination within six months prior to death. In addition, among those fatal cases with available information, nearly 90 per cent had history of known chronic diseases. The data showed that timely booster doses of COVID-19 vaccines for high-risk persons help lower the risk of severe illness and death.(5) Since the launch of the COVID-19 Vaccination Programme, the Government has set up an online booking system which is available around the clock. Members of the public may make a booking through the system for COVID-19 vaccination at Private Clinic COVID-19 Vaccination Stations, Children Community Vaccination Centre, designated general out-patient clinics under the HA, as well as designated Student Health Service Centres, Maternal and Child Health Centres or Elderly Health Centres under the DH. The Government also provides vaccination for adult residents of residential care homes (RCHs) for the elderly and RCHs for persons with disabilities through outreach services under the Residential Care Home Vaccination Programme. The Centre for Health Protection has been disseminating health messages on prevention of communicable diseases and maintaining personal and environmental hygiene through various channels, such as TV and radio announcements in the public interest, social media, printed media, Health Education Infoline, media and radio interviews, advertisements on public transport, outdoor and digital media. The messages also cover the COVID-19 Vaccination Programme. The Centre for Health Protection will continue to strengthen relevant publicity and health education through various channels. The DH has also encouraged and assisted the elderly in the community, especially elderly singletons, to receive necessary vaccines including COVID-19 vaccine via district networks, such as District Services and Community Care Teams. District Elderly Community Centres and Neighbourhood Elderly Centres under the Social Welfare Department, District Health Centres (DHCs) and DHC Expresses under the Health Bureau, as well as Elderly Health Centres under the DH, will also provide assistance to the elderly in need to make online bookings for COVID-19 vaccination. In addition, the HA provides COVID-19 vaccination services at its 18 designated general out-patient clinics, 13 designated specialist out-patient clinics, the Children Community Vaccination Centre located at the Hong Kong Children’s Hospital, as well as its staff vaccination depots. The HA also encourages eligible long-stay patients to receive COVID-19 vaccination to reduce the risk of severe cases and fatalities.

Ends/Wednesday, February 26, 2025Issued at HKT 15:20

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MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ19: Improving the Government’s human resources planning

Source: Hong Kong Government special administrative region

Following is a question by the Hon Mrs Regina Ip and a written reply by the Secretary for the Civil Service, Mrs Ingrid Yeung, in the Legislative Council today (February 26): Question: It is learnt that the number of posts in the civil service establishment dropped from around 193 000 as at March 31, 2022 to 191 742 as at September 30 last year, while the civil service strength fell from around 176 000 to 172 499. On the other hand, there are views that the Government may further enhance its administrative efficiency by making good use of innovative technology and improving the existing human resources planning. In this connection, will the Government inform this Council:(1) whether the Government will review the existing establishment structure and integrate posts with similar or overlapping functions as appropriate; if so, of the details and the implementation timetable; if not, the reasons for that;(2) given that as indicated on November 20 last year in its reply to a question raised by a Member of this Council, the Government had started to provide a generative AI document processing copilot application (the AI application) developed by the Hong Kong Generative AI Research and Development Center for internal trial use by government staff to perform document processing work like drafting, translation and summarisation of documents, of the following information regarding the AI application: (i) the government departments using the AI application on a trial basis, (ii) the percentage of government documents drafted with the assistance of the AI application out of the total number of government documents and (iii) the Government’s savings in time and manpower costs after using the AI application;(3) whether the Government will further utilise the AI application to handle more routine document processing work so as to further release manpower; if so, of the details and the implementation timetable; if not, the reasons for that;(4) whether the Government has currently formulated policies and measures to streamline the government structure and enhance administrative efficiency; if so, of the details; if not, the reasons for that; and(5) whether the Government will consider setting up a high-level steering committee to assist itself in reviewing on a regular basis the establishment and functions of various government departments, as well as the application of various innovative technologies in government departments, and to make recommendations on the addition or deletion of posts within the establishment; if so, of the details and the implementation timetable; if not, the reasons for that?Reply:President, Regarding the question raised by Hon Mrs Regina IP, we have consulted the Innovation, Technology and Industry Bureau, and our consolidated reply is as follows: (1), (4) & (5) The Civil Service Bureau (CSB) has been committed to enhancing the efficiency and effectiveness of the civil service, encouraging various policy bureaux/departments (B/Ds) to regularly review and appropriately deploy their manpower to effectively implement government policies and initiatives. To strictly control the civil service establishment and ensure the sustainability of public finances, the Government has implemented the zero-growth policy in the overall civil service establishment since 2021-22. B/Ds have improved their work efficiency through re-organisation of work and internal redeployment, etc. It is anticipated that by March 31, 2025, the civil service establishment will have reduced, on a cumulative basis, by approximately 2 000 posts from the level as at end-March 2021. The adjustment of the civil service establishment must adhere to the two principles of stability and sustainable development, balancing the manpower requirements of B/Ds to effectively provide existing and new services and the need to streamline the civil service. The current term Government will continue to strictly control the growth of the civil service establishment and optimise the use of manpower resources through the application of technology, for serving the society and citizens with dedication. We have all along been mindful of the functions of different grades and ranks as to whether they are very similar or largely overlap, and will make adjustments or consolidation accordingly. We are also mindful of the need to update and adjust the functions of certain grades due to technology advancement. For instance, the demand for typing services has significantly dropped following the prevalence of the use of computers. As a result, the Government stopped the recruitment of Typists more than two decades ago and gradually re-appointed the serving Typists as Clerical Assistants through the In-service Appointment Scheme (IAS) and the provision of appropriate training. Apart from the continued delivery of clerical services, those Clerical Assistants re-appointed from Typists also provide frontline customer services and carry out various supporting work at B/Ds. After multiple rounds of IAS and through natural wastage, the number of Typists, which once exceeded 3 000 at its peak, has been successfully reduced to some 120 at the end of last year. The functions of the Typists now remaining have also been adjusted. In addition to handling Chinese and English clerical work through the use of word-processing softwares, they perform data entry or other clerical duties in law enforcement departments or departments which process large amounts of personal data (e.g. Inland Revenue Department). Individual civil service grades whose future manpower needs are uncertain, such as those with surplus staff or those undergoing institutional reviews, are classified as “Controlled Grades” by the CSB. These grades require the CSB’s approval before open recruitment, which is not lightly granted unless they have clear prospect for development and the demand for manpower is obvious and certain. Under these “controlled” circumstances, B/Ds must seek alternative solutions to handle the responsibilities of these grades, including integrating the duties of the “Controlled Grades” with other grades. The above-mentioned work has been carried out by the Government on a long-term basis without a fixed timeline. The operation of B/Ds and the work of civil servants must keep pace with the times. The Supplement to the Chief Executive’s 2024 Policy Address has set out the initiative of promoting the adoption of management measures and digitalisation among B/Ds to reprioritise and re-organise their work, capitalise on technology solutions, and streamline work processes, with a view to optimising the use of the civil service manpower resources. With assistance from the Digital Policy Office (DPO), the CSB will drive these initiatives among B/Ds in 2025, with a view to deploying human resources more appropriately and enhancing the efficiency and effectiveness of the civil service. The DPO will continue to lead various B/Ds in applying innovative technologies and accelerating the development of digital government. The DPO will also actively support the above-mentioned measures of promoting digitalisation for optimising the use of civil service manpower resources, thereby enhancing government efficiency and services.(2) & (3) The Government has started the pilot use of a generative artificial intelligence document processing copilot application (the Application) developed by the Hong Kong Generative AI Research and Development Center (HKGAI) under InnoHK since mid-2024 to assist government officers in handling document processing tasks such as drafting, translation, and summarisation of documents. The DPO has invited all B/Ds to arrange their officers of different grades to participate in this pilot use exercise. The Application is currently at the development stage. The purpose of conducting the pilot use exercise is to collect the government officers’ feedback on using the Application according to their operational needs, thus facilitating HKGAI in further training and optimising its large language model and the Application. The DPO does not, at the current stage, maintain information on the percentage of documents processed in the pilot use against all the government documents, as well as the time and manpower costs saved. In the longer term, the Application will help reduce the manpower required for government officers to handle general document processing tasks, allowing manpower to be deployed to other areas of need, thereby creating maximum value. The DPO will continue to co-ordinate with various B/Ds to extend the pilot use of the Application to more government officers in handling the tasks of drafting, translation, and summarisation of documents, and through the collection of user feedback, to assist HKGAI in optimising the Application’s performance in handling document processing work.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ16: Developing family-friendly tourism

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Nixie Lam and a written reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (February 26):

Question:

     It has been reported that the family-friendly tourism market has been developing gradually in recent years, and family travel has become a popular choice. There are views pointing out that while Hong Kong has various family-friendly tourism resources, such as theme parks, playgrounds, museums and country parks, the overall resources have not been consolidated, the planning of which is rather fragmented, and there is a lack of systematic ancillary facilities for family-friendly tourism. In this connection, will the Government inform this Council:

(1) whether it has plans to consolidate the family-friendly tourism resources in Hong Kong, introduce a clear and user-friendly map of family-friendly tourism resources to centrally display various types of facilities (e.g. theme parks, playgrounds, museums, country parks and outdoor activity venues), and provide one-stop information services for family tourists, with a view to helping parents plan their trips more conveniently; if so, of the mode to be adopted (e.g.‍ whether mobile applications or online platforms will be included), the implementation details and the timetable; if not, the reasons for that;

(2) whether it will further improve the family-friendly ancillary facilities (including family-friendly toilets, lactation rooms and child-safe facilities) in the family-friendly attractions, as well as the transport links between the attractions, so as to provide a convenient and comfortable experience for family tourists; and

(3) as there are views that the potential of Hong Kong’s family-friendly tourism market has not yet been fully realised, how the Government will enhance the quality of existing facilities and introduce innovative family-friendly tourism products (e.g. organising more interactive exhibitions and parent-child activities combining education and entertainment, and providing more suitable indoor and outdoor children’s spaces); whether it will introduce preferential policies or subsidies in support of family-friendly tourism, so as to attract more family tourists to choose Hong Kong as their vacation destination?

Reply:

President,

     As an international city and a tourism hub with diverse culture, Hong Kong has world-class resources in the areas of culture, sports, tourism, ecology, etc. and has long been one of the most popular tourism destinations in the world attracting many family visitors every year. Hong Kong has the edge to further develop family tourism in terms of tourism products and facilities. Strengthening Hong Kong’s status as the premier tourism destination for family visitors is one of the strategies under the Development Blueprint for Hong Kong’s Tourism Industry 2.0 promulgated by the Culture, Sports and Tourism Bureau (CSTB) last year.

     In respect of the questions raised by the Hon Nixie Lam, the consolidated reply is as follows:

     In terms of tourism products, there are various family-friendly itineraries and products available in the market, such as theme parks, family hiking trails, beaches in close proximity to the city, a variety of cultural and historical experience centres, museums. The Government has also been encouraging and facilitating the tourism industry to develop more family-friendly itineraries and products to showcase the unique characteristics of Hong Kong with a view to attracting more family visitors to Hong Kong. The two theme parks in Hong Kong, i.e. Ocean Park (OP) and Hong Kong Disneyland Resort (HKDL), constantly provide family visitors with offers of discount tickets and hotel packages, and introduce a wide range of suitable activities to provide family visitors with unique travel experiences. The gifting of another two giant pandas, An An and Ke Ke, by the Central Government last year, together with Ying Ying, Le Le and their twin cubs, has made Hong Kong home to the largest number of giant pandas outside Mainland China at present. Our promotion of panda tourism as a priority is particularly appealing to family visitors. Besides, this year marks the 20th anniversary of HKDL, and there will be a year-long celebration which will be highly attractive to family visitors. Additionally, the Government encourages different organisations to launch diversified activities targeting at family visitors. For example, the Leisure and Cultural Services Department (LCSD) offers a variety of family-friendly facilities, including innovative play spaces for children and places to learn about plants and animals, which are highly sought after among parents and children. Examples include Hong Kong Park, Kowloon Park, Hong Kong Zoological and Botanical Gardens, Sham Shui Po Park, Cha Kwo Ling Promenade, Tuen Mun Park. The LCSD also organises The International Arts Carnival and “Summer Family Cine Fest” from July to August every year, as well as Fun@Museum Carnival and fun days during Muse Fest HK every November. Further to the Adventure Night @HKPM: Family Sleepover and various family workshops held in the Hong Kong Palace Museum and M+ respectively last year, the West Kowloon Cultural District Authority (WKCDA) will roll out a family arts event WestK FunFest 2025 from March to April this year.

     In terms of information dissemination, to facilitate itinerary planning by family visitors, the Hong Kong Tourism Board (HKTB) has listed on its one-stop travel information platform, DiscoverHongKong.com, various points of interest that are suitable for family visitors, including the dedicated page, “Hong Kong attractions for families of all ages”, which consolidates various attractions suitable to family visitors like theme parks, Hong Kong Wetland Park (HKWP), on an interactive map; and featured articles recommending itineraries for family travel, providing transportation guide and offering recommendations on indoor family activities such as playgrounds, malls, workshops. The dedicated webpage also covers “12 museums for family days out in Hong Kong” and “Best family-friendly picnic spots in Hong Kong” to offer unique travel experiences to family visitors.

     In the meantime, the HKTB will continue to enhance its one-stop travel information platform to consolidate other important travel-related websites and applications (covering, for example, information relating to leisure and cultural facilities of the Government, hiking trails and camping), with a view to providing family visitors with more comprehensive, reliable, and up-to-date travel information and citywide offers. The HKTB will develop Live Travel Map and the Smart Itinerary Planner, which will provide visitors with real-time recommendations of nearby attractions, activities, offers, personalised itinerary suggestions that cater for their interests and preferences, and thereby providing them with unique travel experiences. These smart tourism initiatives are conducive to facilitating and enhancing the experiences of all visitors, including family visitors.

     In terms of supporting facilities, the Government has all along been encouraging the hotel industry and various tourist attractions to continuously improve their supporting facilities, including family-friendly facilities such as hotel rooms with family elements and themed on giant pandas and kids. Some hotels are already equipped with family-friendly facilities such as playgrounds, kids clubs and toy rooms.

     Moreover, various tourist attractions are well-equipped with family-friendly facilities and services. For example, OP and Water World, HKDL, HKWP, different LCSD venues, the two museums in West Kowloon Cultural District, Ngong Ping Village, provide visitors with family-friendly facilities such as family toilets, changing rooms, nursery rooms. Some attractions also offer strollers and baby carriages rental service. Different attractions will continue to enhance their family-friendly facilities and services having regard to the preferences and needs of family visitors.

     The CSTB will, together with the HKTB, relevant bureaux and departments as well as the trade, continue to explore means to further promote the development of family tourism, develop and promote itineraries and products with unique Hong Kong characteristics, as well as provide suitable accommodation, supporting facilities and tailor-made travel experiences. We will target at not only family visitors but also MICE (Meetings, Incentives, Conventions, and Exhibitions) and business travellers attracting them to visit Hong Kong with their families, with a view to developing Hong Kong into a premier tourism destination for family visitors.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ21: Addressing the problem of manpower shortage

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Jimmy Ng and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26):

Question:

     In the report on the 2023 Manpower Projection published by the Government in November last year, it was projected that the manpower shortage in Hong Kong would be widened to 180 000 by 2028. In particular, skilled technical workers, manual labourers and service industry workers would experience manpower shortage. It was projected that there would be a shortage of 147 000 to 162 000 workers in total by then. Some members of the industrial and commercial sectors are worried that the problem of manpower shortage will limit the development of relevant sectors, and they have urged the Government to introduce more targeted measures to address the problem. In this connection, will the Government inform this Council:

(1) of the respective numbers of quotas used under the various sector-‍specific labour importation schemes so far; whether the authorities will study increasing the quotas for such schemes to address the problem of manpower shortage, as well as expanding the relevant schemes to cover more sectors with manpower shortage; if so, of the details;

(2) as the Government launched the Enhanced Supplementary Labour Scheme (ESLS) in September 2023 under which the general exclusion of the 26 job categories as well as unskilled or low-skilled posts from labour importation would be suspended for two years, of the number of labour importation applications approved under the ESLS so far and the number of workers involved, together with a breakdown by 26 job categories; whether the authorities will extend the ESLS or even regularise it; if so, of the details; if not, the reasons for that;

(3) as it is learnt that applications under the ESLS and sector-specific labour importation schemes are in general required to be subject to a manning ratio of imported labour to full-time local staff (i.e. 1:2), but such a requirement may be waived under special circumstances, whether the authorities have waived the manning ratio requirement in respect of individual applications under such schemes in the past; if so, of the details; whether consideration will be given to relaxing the manning ratio requirement of such schemes; if so, of the details;

(4) whether consideration will be given to relaxing the requirement that wages of workers imported under the ESLS and sector-specific labour importation schemes should not be lower than the prevailing median monthly wage of a comparable position in the market; if so, of the details;

(5) as employers participating in the ESLS and sector-specific labour importation schemes are currently allowed to deduct up to 10 per cent of the wages of imported workers as the accommodation fee for the period that the imported workers occupy the accommodation provided by their employers, whether the authorities will consider raising the percentage; if so, of the details; and

(6) whether it will introduce more new measures to address the problem of manpower shortage in the future; if so, of the details?

Reply:

President,

     To cope with the challenges brought by manpower shortage and on the premise of ensuring employment priority for local workers, the Government has enhanced the mechanism for importation of labour. On June 19, 2023, the Labour and Welfare Bureau introduced the Special Scheme to Import Care Workers for Residential Care Homes (Care Workers Scheme) for the residential care home (RCH) sector. On July 17, 2023, the Development Bureau (DEVB) and the Transport and Logistics Bureau (TLB) respectively launched sector-specific labour importation schemes for the construction and transport sectors. In addition, the Labour Department (LD) has implemented the Enhanced Supplementary Labour Scheme (ESLS) since September 4, 2023 to enhance the coverage and operation of the Supplementary Labour Scheme (SLS) including suspending the general exclusion of the 26 job categories as well as unskilled or low-skilled posts from labour importation for two years.

     In consultation with the DEVB and the TLB, our reply to the Hon Jimmy Ng’s questions is as follows:

(1) Since the launch of the Care Workers Scheme and sector-specific labour importation schemes, a total of around 23 800 quotas for importation of workers were approved as at January 31, 2025. A breakdown by labour importation schemes is as follows:

Labour Importation Scheme
Quota ceiling
Quotas approved

Care Workers Scheme
15 000
Around 7 200 (Note 1)

Labour Importation Scheme for the Construction Sector
(Construction Sector Scheme)
12 000
9 109 (Note 2)

Labour Importation Scheme for the Aviation Sector
(Aviation Sector Scheme)
6 300
5 823

Labour Importation Scheme for the Transport Sector – Public Light Bus (PLB)/ Coach Trade
(Transport Sector Scheme)
1 700
(PLB: 900
Coach trade: 800)
1 700

Note 1: Including the new quotas approved since the implementation of the Scheme in June 2023 and the quotas for renewal in respect of care workers previously imported through SLS.
Note 2: Quota allocation is on a rolling basis, i.e. quotas will be released for new application after the completion of the relevant construction projects. As of end-2024, there were a total of 9 109 approved and active quotas under the Scheme.

     For the Care Workers Scheme, the Government reviewed the manpower situation of care workers in the RCH sector and in July 2024 announced that it would provide additional 8 000 quotas in the coming three years. Having regard to the overall demand for and supply of care workers in the RCH sector, the Secretary for Labour and Welfare will make timely adjustments to the number of overall quotas, as well as the number and pace of quotas allotted in each batch, with a view to responding flexibly and swiftly to changes in the manpower supply and demand in the RCH sector. Regarding the Construction Sector Scheme, on the premise of ensuring priority for local workers’ employment, the DEVB will carefully consider the allotment of the remaining quotas based on the labour market condition and construction project needs, and take note of the updates on manpower forecast to continuously monitor the use of quotas. In respect of the Aviation Sector Scheme, the TLB will make reference to a number of relevant factors such as the results of the latest airport manpower survey conducted by the Airport Authority Hong Kong, the implementation of the Scheme, stakeholders’ views, etc. to decide the future direction of the Scheme. Besides, TLB and the Transport Department are reviewing the implementation of the Transport Sector Scheme and assessing the manpower demand of the sector in the coming few years. We shall announce the way forward of the Schemes in good time subject to the review results.

(2) From September 4, 2023 to January 31, 2025, 6 762 applications involving 47 474 quotas of imported workers were approved under ESLS. A breakdown of the number of quotas of imported workers approved by the 26 job categories, unskilled/ low-skilled posts and other posts is at Annex.

The LD has been closely monitoring the implementation of ESLS and has commenced the review of ESLS. The LD will fully consider the views of stakeholders including employer associations and labour organisations in mapping out the way forward.

(3) According to the general requirements of the sector-specific labour importation schemes and ESLS, employers shall fulfill a manning ratio of 2:1 for full-time local employees to imported workers. Under the Construction Sector Scheme, individual applications with special circumstances, such as applications involving special trades/ disciplines with very limited local supply (e.g. overhead linesman (high voltage)), will be exempted. For ESLS, exceptions include farm workers for which the standard of manpower requirement is specified by the Agriculture, Fisheries and Conservation Department. On the Care Workers Scheme, subvented RCHs and contract RCHs may for every two full-time local employees apply to import a maximum of one care worker only (i.e. a 2:1 ratio), and private RCHs and self-financing RCHs may for every full-time local employee apply to import a maximum of one care worker only (i.e. a 1:1 ratio). The Government has no plan to further relax relevant requirements.

(4) to (6) To safeguard employment priority for local workers, applicant employers of respective labour importation schemes must undertake local open recruitment and give priority to employing suitable local workers to fill the vacancies at a salary not lower than the prevailing median monthly wage of a comparable position in the market. At the same time, employers approved to import workers are required to sign a Standard Employment Contract (SEC) with imported workers, and shall pay a salary not lower than the median monthly wage of a comparable position. Besides, in accordance with SEC, the employer may deduct the actual cost of accommodation in respect of a period that an imported worker occupies the accommodation from the wages payable to the worker for the corresponding period or 10 per cent of the amount of wages (excluding any overtime pay) payable to the worker for the corresponding period, whichever is the less.

     As explained in items (1) and (2) of the reply, the Government has been closely monitoring and reviewing the implementation of labour importation schemes. Relevant bureaux have been implementing appropriate measures in light of the situation to enhance the arrangement and operation of the Schemes. The LD has also commenced the review of ESLS. In addition, the Government will continue to adopt a multi-pronged strategy, including promoting training and retraining, providing appropriate employment support and driving technology adoption for productivity uplifting, to address the manpower shortage problem.

     The Government is also exploring the introduction of a new channel under the General Employment Policy and the Admission Scheme for Mainland Talents and Professionals to attract a specified number of young non-degree talents possessing relevant professional technical skills and experience to apply for entry into Hong Kong to join the skilled trades facing acute manpower shortage.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ13: After-school care and support services for students

Source: Hong Kong Government special administrative region

LCQ13: After-school care and support services for students
LCQ13: After-school care and support services for students
**********************************************************

Following is a question by the Hon Kenneth Leung and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26): Question: In order to enable students in need to stay at school outside school hours for care and learning support and allow their parents to take up jobs, the Government has proposed in the 2024 Policy Address to extend the School-‍based After-School Care Service Scheme to cover over 110 primary schools in the 18 districts across the territory. In parallel, the Education Bureau has set up the School-based After-school Learning and Support Programmes to support schools in providing after-school learning activities for needy students. Alongside in the community, after-school care services run by non-governmental organisations (NGOs) provide homework guidance, skill development and social activities for primary school children. In this connection, will the Government inform this Council: (1) of the respective numbers of (i) Primary One to Primary Six students and (ii) primary schools in various districts, as well as (I) ‍participating schools/centres (with the number of their service places) and (II) beneficiaries (with the utilisation rates) of (a) the School-based After-School Care Service Scheme, (b) the School-‍based After-school Learning and Support Programmes and (c) the after-school care services run by NGOs over the past two years (set out by District Council district in the following table);

District Council district
(i)
(ii)
(a)
(b)
(c)

(I)
(II)
(I)
(II)
(I)
(II)

……

Total

(2) in respect of the three types of after-school care and support service/scheme/programme mentioned in (1)(a) to (c), of the following information for each of them over the past two years: (i) ‍the overall expenditure, (ii) the average amount of government funding received by each school/centre in respect of the relevant service/scheme/programme and (iii) the amount of subsidy per student; (3) in respect of the three types of after-school care and support service/scheme/programme mentioned in (1)(a) to (c), of the respective numbers of beneficiaries under each of them over the past two years who were from (i) single-parent families, (ii) families receiving Comprehensive Social Security Assistance and (iii) ‍families receiving full grant under the Student Financial Assistance Schemes for primary and secondary school students, as well as the respective percentages of students with special educational needs under each type of service/scheme/programme; (4) of the current number of after-school care service units mentioned in (1)(c) which offer pick-up and drop-off arrangements for students so that students can be sent to such units after school for care services; whether the authorities have provided resources to assist these service units in offering pick-up and drop-off arrangements; if not, of the reasons for that; (5) given that many dual working parents have indicated that one of the difficulties they encounter is bringing their children to and from schools, whether the authorities will, in the long run, consider developing student escort platforms or services in the community using different modes such as innovative technology and neighbourhood support, so as to facilitate dual working parents in picking up and dropping off their children; and (6) as there are views pointing out that while the three types of after-‍school care and support service/scheme/programme mentioned in (1)(a) to (c) are mainly targeted at underprivileged families at present, dual working families in general have a need for such services too, whether the authorities will conduct a comprehensive review and consolidate such service/scheme/programme, so that they can be extended to cover dual working families; if so, of the details; if not, the reasons for that?Reply: President, The Labour and Welfare Bureau, the Education Bureau (EDB) and the Social Welfare Department (SWD) have implemented the School-based After School Care Service Scheme since the 2023/24 school year. Under the Scheme, participating schools will provide venues, and the Community Care Fund will provide funding for non-governmental organisations (NGOs) to provide services for students in need (particularly those from single-parent families) to stay at school after-school hours for care and learning support in a safe and familiar environment, thereby allowing their parents to take up jobs. In addition, the EDB implements the School-based After-school Learning and Support Programmes (SALSP) to support needy students to participate in after-school learning activities with a view to facilitating their whole-person and all-round development. The SWD provides the Fee-waiving Subsidy Scheme (FWSS) under After School Care Programme (ASCP) to support primary students from low-income families to receive the ASCP service operated by NGOs. After consulting the EDB, our consolidated reply to the Hon Kenneth Leung’s question is as follows: (1) SALSP and ASCP, implemented by the EDB and the SWD respectively, are existing programmes, while the School-based After School Care Service Scheme is a new scheme implemented by the Government in the 2023/24 school year. The information on the utilisation of the aforementioned three types of scheme/programme is set out in Annex 1. The School-based After School Care Service Scheme was implemented at 59 primary schools located at seven districts offering some 3 000 service places in the 2023/24 school year, and expanded to cover more than 120 primary schools in all 18 districts across the territory offering about 6 000 service places in the 2024/25 school year. Subject to actual utilisation and outcome of the Scheme, the Government plans to encourage more schools to participate in the Scheme, without capping the number of places, in the 2025/26 school year. As regards SALSP, which has been implemented since the 2005/06 school year, its aim is to support needy students to participate in after-school learning activities with a view to facilitating their whole-person and all-round development. All public sector schools (including special schools) and schools under the Direct Subsidy Scheme can make application and there is no school quota. The main target beneficiaries of SALSP are Primary 1 to Secondary 6 students in receipt of Comprehensive Social Security Assistance (CSSA) or full grant under the Student Financial Assistance Schemes (SFAS). Participating schools could exercise discretion to benefit those students who are not in receipt of CSSA or full grant of SFAS but identified by schools as needy. The discretionary quota is capped at 25 per cent of the number of eligible students of the respective schools. Also under SALSP is the Community-based Projects, activities of which are organised in the respective districts by non-governmental organisations (NGOs) and collaborating schools. Eligible students may participate in various activities under the School-based Grant and Community-based Projects at the same time. As such, the actual number of beneficiaries and utilisation rate are not applicable to the School-based After-school Learning and Support Programmes. The EDB encourages schools to flexibly deploy the School-based Grant and other related funding to enhance synergy, thereby organising diversified after-school learning activities for needy students. (2) In respect of the School-based After School Care Service Scheme and ASCP, (i) the overall expenditure, (ii) the average amount of funding allocated to each school/centre under the scheme/programme and (iii) the amount of subsidy for each student, over the past two years (2022-23 and 2023-24) are set out in Annex 2. As for SALSP, the amount of School-based Grant that a school receives is calculated based on its number of students in receipt of CSSA or full grant under the SFAS as at the end of March of the respective school year, as well as its number of approved classes in the following school year. When calculating the amount of the grant, the rate for each of the above student is $400. Should schools have an 80 per cent or above utilisation rate of the School-based Grant in the previous school year, the rate of $600 per eligible student will be adopted as an incentive. As for the Community-based Projects, the applications submitted by NGOs are assessed on the basis of the content and nature of the activities, as well as the number of students and sessions involved, etc, and therefore the amount of funding for each activity differs. Eligible students may participate in various activities based on their needs and interests. In the 2022/23 and 2023/24 school year, $140 million and $137 million were provided to primary schools and NGOs respectively. (3) In respect of the aforementioned three types of scheme/programme, the respective numbers of beneficiaries that were (i) from single-parent families, (ii) receiving CSSA and (iii) receiving full level of assistance under the Student Financial Assistance Schemes, and the respective percentages of students with special educational needs (SEN) over the past two years (2022-23 and 2023-24) are set out in Annex 3. (4) ASCP aims at providing care services for children whose parents are unable to give proper care to them during after-school hours because of work or other reasons. It is operated by NGOs on a self-financing and fee-charging basis, providing care and support services for primary school children, including homework guidance, parental guidance and education, skill learning and social activities. The SWD provides financial assistance for the low-income families in need through the Fee-waiving Subsidy Scheme. The SWD does not maintain information of the service unit providing escort service for children attending ASCP. (5) and (6) The Government will complete the evaluation of the School-based After School Care Service Scheme in the 2025/26 school year to decide on the way forward.

Ends/Wednesday, February 26, 2025Issued at HKT 14:30

NNNN

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ2: Cases of child maltreatment

Source: Hong Kong Government special administrative region

     Following is a question by Dr the Hon Tik Chi-yuen and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26):

Question:

     The Mandatory Reporting of Child Abuse Ordinance (the Ordinance) will take effect on January 20 next year. According to the data of the Child Protection Registry Statistical Report, the number of maltreatment cases involving children with disabilities is rising rapidly. For example, the number of children with disabilities who had been subjected to sexual abuse increased from 125 in 2022 to 175 in 2023. There are views pointing out that this trend attracts little media coverage or attention, and the actual situation of child maltreatment is not well-known. In this connection, will the Government inform this Council:

(1) as there are views pointing out that some victims of child maltreatment cases choose to cover up the incident and refrain from reporting to the Police or the Social Welfare Department’s Family and Child Protective Services Unit, given the “secondary damage” caused to them by the fact that they have to recall the course of the incident when facing judicial proceedings (e.g. taking statements and giving evidence in court proceedings), how the Government will deal with such situation upon commencement of the Ordinance; whether it will consider amending the legislation to mitigate the secondary damage caused to the victims; if so, of the timetable; if not, the reasons for that;

(2) given the increase in the number of child maltreatment cases (especially sexual abuse), whether the Government has conducted any in-depth investigation into this trend; if so, of the main reasons for such trend according to the findings of the investigation; whether it has formulated preventive measures targeting schools or youth groups;

(3) as it is learnt that children with mental and physical disabilities are the major group of victims of child abuse cases involving children with disabilities, whether the Government has provided additional resources or protective measures to address the special needs of this group of people;

(4) as the Secretary for Labour and Welfare has pointed out that the anticipated number of reported child abuse cases will increase substantially after the commencement of the Ordinance, whether the Government has sufficient resources to support child victims, such as enhancing the relevant psychological counselling, placement and rehabilitation mechanisms;

(5) whether it will consider setting up a dedicated committee or organization to monitor the effectiveness of the implementation of the Ordinance, coordinate the relevant policies and initiatives, and regularly disclose to the public the data on case reports and the effectiveness of its efforts in handling the cases; and

(6) as it has been reported that the Budget is going to propose a reduction in the funding for social welfare organisations, how the Government will tackle an increasing number of child maltreatment cases in the light of reduced funding and shortage of social workers, and whether it has estimated the average number of relevant cases that each social worker will need to handle after the reduction in funding?

Reply:

President,

     The Mandatory Reporting of Child Abuse Ordinance (the Ordinance) mandates specified professionals in the social welfare, education and healthcare sectors to report serious child abuse cases, creating a comprehensive and effective protection web for children and sending a strong deterrent message to potential perpetrators that their abuse behaviours will be easily exposed. The consolidated reply to the Member’s question, in consultation with Education Bureau (EDB) and Security Bureau (SB), is as follows:

(1) Various government departments and the Judiciary have been protecting child victims and witnesses through administrative procedures, guidelines and measures to encourage and facilitate them to report and give evidence in child harm/abuse cases and to lessen their trauma in the process. The Social Welfare Department (SWD), in collaboration with the Hong Kong Police Force (HKPF) and the Judiciary, has taken a number of measures to protect children. For example, during criminal investigations, the relevant departments may arrange children to give evidence through video-recorded interviews (VRI) in appropriate circumstances. These VRIs are conducted in a comfortable home-like environment by specially trained police officers, social workers, and/or clinical psychologists. The video-recorded evidence can be admitted as valid evidence at the trial, saving the children from recounting the incidents in the courtroom, thereby alleviating their embarrassment and trauma. During trials, the children can enter and exit court rooms through special access. In addition, they can also testify in another room by means of live television link in the company of trained witness-support persons to avoid facing the defendant and the public directly, thereby alleviating their psychological stress. In addition, the HKPF and the Department of Justice jointly established the Vulnerable Witness and Child Protection Task Force in 2022 to speed up and improve the evidence collection, prosecution and follow-up investigation work with collective efforts. The SWD and the HKPF will continue to organise training courses and review the procedures for handling sexual violence cases to enhance the skills and sensitivity of different professionals in order to effectively assist child victims and ensure that they receive appropriate protection and support.

(2) Through the Child Protection Registry, the SWD has been collecting and compiling statistics on information of registered cases involving children who have been harmed/abused or currently at risk of being harmed/abused. The annual statistics are uploaded onto the SWD’s website for public reference. There were 1 367 newly registered child protection cases in 2021 and 1 457 cases in 2023, representing an increase of about 6.6 per cent in three years. Among them, there were 448 sexual abuse cases in 2021 and 509 sexual abuse cases in 2023, representing an increase of about 13.6 per cent. According to the SWD’s analysis, possible reasons for the increase in registered cases include: growing public awareness on child protection and more proactive reporting of cases as a result of the legislative exercise of the Ordinance as well as publicity and public education on child protection in recent years; more children are using social media, messaging apps, chat applications, or online games in recent years; and children having more opportunities to interact with others in resumption of normalcy after the epidemic.

     On publicity and education in the community, the SWD has been launching the publicity campaign on “Strengthening Families and Combating Violence” to raise public awareness on child protection and prevention of domestic violence and encourage those in need to seek help early through large scale publicity events and district-based activities. In 2022, the SWD has produced a series of videos on “Heart and Hut Classroom: Online Sexual Abuse Pitfalls” and broadcasted on social media to remind young people and parents of the risk factors, prevention and handling of online sexual abuse. The HKPF has been organising the “Let’s T.A.L.K. Child Protection Campaign” every year since 2021 to raise public awareness of child protection through a series of publicity and promotional activities. In addition, the HKPF organised a multi-disciplinary seminar on “Child Sexual Abuse in the Cyber World” on March 21, 2024, together with experts and representatives from relevant sectors and discussed with more than 500 parents, principals, teachers, social workers, Police officers and child service workers online and offline on how to effectively protect children from online sexual crimes, thereby enhancing their understanding of children’s online safety and their awareness and response capabilities to protect children from such crimes, and promoting collaboration among different professions.

     In respect of preventive work targeting schools or youth groups, the EDB has all along been assisting schools in the prevention, early identification and appropriate intervention of suspected child abuse cases through various measures. These measures include issuance of circulars and guidelines requiring schools to devise relevant mechanisms, procedures and measures to handle such cases; strengthening school social work service to assist schools in the early identification of suspected abused students and potential issues in their families; encouraging schools to implement Comprehensive Student Guidance Service, under which all teachers collaborate with school social workers, other student guidance personnel or specialists to provide comprehensive and extensive guidance service to students in need; as well as supporting schools to adopt a whole school approach, through cross-sector collaboration among professionals from different disciplines in schools (including student guidance personnel, school social workers and school-based educational psychologists), to intervene and follow up as early as possible, and to provide students with appropriate support. At the same time, the EDB actively promotes the “Positive Parent Campaign” to foster parents’ positive attitude and understanding in nurturing their children, so as to enable students grow up healthily and prevent child abuse incidents. In addition, the EDB has been working closely with the SWD and the HKPF to organise various training activities with a view to strengthening school staff’s knowledge, skills and abilities in handling suspected child abuse cases.

(3), (4) and (6) The Government has allocated an additional provision in 2023-24 for enhancing the Government’s enforcement and support capacity, providing appropriate training to practitioners in the relevant professions and strengthening the promotion and public education work on child protection, with a view to supporting the implementation of the mandatory reporting regime (MRR) for child abuse cases.

     The Government has further allocated an additional provision in 2024-25 to increase emergency places for residential child care service and strengthen professional support for child abuse victims and their families to prepare for the potential increase in the reported child abuse cases upon the implementation of the MRR. Among which, two new residential child care centres will commence operation before the Ordinance comes into effect, offering a total of 96 additional service places each year and are expected to provide emergency placement for 384 children in need (in the estimation that each place of residential child care centre can take care of 4 children on average per year).

     The SWD will also strengthen the professional support to actual or suspected child abuse victims (including pre-primary children with special needs) and their families. Starting from March 2025, the SWD will subsidise non-governmental organisations to implement various child protection support services, including Home Visitation Support, therapeutic/psycho-social groups, educational and family enrichment activities, to complement the work of social workers of the Family and Child Protective Services Unit of the SWD or related casework service units in providing focused support services for children and families in need.

     Child protection (including pre-primary children with special needs) work and cases are being handled and followed up in a multi-disciplinary manner (including social welfare, education, law enforcement, healthcare). Professionals from different service units, including social workers, work together to provide professional support to children and families in need. The SWD does not maintain information on the average number of child protection cases handled by each social worker.

(5) The Labour and Welfare Bureau, the EDB, the Health Bureau and the SB have formed a Cross-bureaux Working Group to make preparations for the implementation of MRR in January next year. The SWD and the HKPF are jointly developing the internal work flow and mandatory reporting platform to facilitate mandated reporters in making reports and collecting relevant data, ensuring efficient and effective follow-up on reported cases. Relevant bureaux and departments will continue to monitor the operation of MRR and the trend of the number of reports after its implementation. The number of cases reported through the MRR will be incorporated into the statistics of the Child Protection Registry and disseminated to the public.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ3: Enhancing prevention of potential non-refoulement claimants at source

Source: Hong Kong Government special administrative region

Following is a question by the Hon Carmen Kan and a written reply by the Secretary for Security, Mr Tang Ping-keung, in the Legislative Council today (February 26):

Question:

     The Immigration Department officially launched the Advance Passenger Information (API) System on September 3 last year to prevent undesirables, including potential non-refoulement claimants, from boarding flights heading to Hong Kong. In this connection, will the Government inform this Council:

(1) whether the authorities have, since the launch of the API System, compiled statistics and kept information on the number of undesirables prevented from boarding flights heading to Hong Kong each month, the distribution of their nationalities, points of embarkation, and the airlines they chose; if so, of the details (set out in a table); if not, the reasons for that;

(2) of the number and names of aircraft operators which have connected to the API System since its launch, and their percentage in the total number of aircraft operators operating inbound flights to Hong Kong (set out in a table); among the aircraft operators which have connected to the API System, of the number of those which have successfully prevented undesirables from entering Hong Kong by providing API, and the reasons why some aircraft operators have not yet connected to the API System;

(3) as there are views that the authorities should take the opportunity to review the entire mechanism of preventing undesirables from boarding flights heading to Hong Kong by the time when all aircraft operators are required to connect to the API System after the 12-‍month transitional period, whether the authorities have, in the light of the operational experience gained during the transitional period, reviewed the direction of optimising the aforesaid mechanism; if so, of the details; if not, the reasons for that;

(4) given that the API System can only prevent undesirables from coming to Hong Kong by flights, whether the authorities have stepped up efforts to prevent entry of such persons through other channels; if so, of the details; if not, the reasons for that;

(5) given that as stated in the 2024 Policy Address, the Government has since October 16, 2024 relaxed the criteria for nationals of Cambodia, Laos and Myanmar applying for multiple-entry visas for travel and business, and extended the validity period of multiple-entry visas from two years to three years for these countries (as well as Vietnam which has enjoyed the relaxation since 2023), of the number of undesirables from these four countries coming to Hong Kong each month since the implementation of the relaxation, and whether there is a rising trend;

(6) as there are views that with the relaxation of the visa-free entry policies by the Mainland earlier on, undesirables may possibly come to Hong Kong via the Mainland (including by legal and illegal means), how the authorities step up co-operation with the Mainland in preventing entry of such persons to Hong Kong via the Mainland; and

(7) as there are views that there are signs of an increasing number of foreign domestic helpers (FDHs) who prematurely terminate their employment contracts and subsequently lodge non-refoulement claims in order to extend their stay in Hong Kong for the purpose of applying for government subsidies or engaging in illegal employment, etc., of the number of such cases in each of the past five years, the nationalities of the FDHs involved, and the average number of days of their extended stay in Hong Kong (with a tabulated breakdown by quarter); of the measures put in place by the authorities to prevent and curb the abuse of the non-refoulement claim mechanism by such individuals?

Reply:

President,

     To meet the aviation security requirements of the Convention on International Civil Aviation and to align Hong Kong with other aviation hubs worldwide, as well as to enable the Immigration Department (ImmD) to further enhance its passenger clearance and enforcement capabilities to prevent undesirables, including potential non-refoulement claimants, from boarding flights heading to Hong Kong, the ImmD has implemented the Advance Passenger Information (API) system since September 3, 2024, requiring aircraft operators to comply with the Immigration (Advance Passenger Information) Regulation (Cap. 115Q) (the Regulation) by transmitting advance information to the ImmD about flights and passengers heading to Hong Kong.

     To allow sufficient time for aircraft operators to connect to the API system and to ensure the system will run in a smooth and orderly manner, the rollout has been carried out in phases. A transitional period of around 12 months was also adopted. The offences and defences, and the miscellaneous provisions under Part 4 and 5 of the Regulation will come into effect after the transitional period, starting from September 1, 2025.

     In consultation with the ImmD and the Labour Department (LD), my reply to the various parts of the question raised by the Hon Carmen Kan is as follows:

(1) to (3) Since the rollout in phases of the API system on September 3, 2024, as at February 21, 2025, 82 airline operators have been connected to the system, including Hong Kong-based airline operators, such as the Cathay Pacific Airways, the Hong Kong Airlines, the Greater Bay Airlines and the Hong Kong Express Airways, etc. As for the nearly 70 remaining airline operators, the ImmD will continue to maintain close communication with them with a view to ensuring that relevant system connection works will be completed in an orderly manner before September 1, 2025. The list and number of airline operators connected to the API system, and the percentage out of the total number of relevant airline operators are at Annex.

     In just a few months of operation, the API system has been effective in successfully identifying and denying boarding of flights by ineligible persons, including persons who had lodged non-refoulement claims in Hong Kong but were eventually rejected and repatriated to their places of origin. As regards the relevant figures, as well as the nationality distribution, the places of departure and the airlines chosen for the cases concerned, it is considered not suitable to disclose such information due to security reasons as sensitive internal procedures are involved.

     The ImmD will make reference to the operational experience of the API system during the transitional period and maintain close communication with the airline operators and relevant stakeholders, with a view to continuously reviewing and optimising the system and the related operational procedures.

(4) and (6) In addition to the API system, the ImmD will continue to examine arriving passengers in a stringent manner at all control points and enhance intelligence exchanges with law enforcement agencies in Hong Kong and other places through various channels to prevent the entry of undesirable persons into Hong Kong.

     On the other hand, the Government will also continue to spare no efforts in preventing entry of illegal immigrants (IIs) into Hong Kong. In view of the general resumption of international flights on the Mainland after the pandemic, the Mainland visa-issuing authorities abroad have resumed issuing visas to Mainland China to foreigners since March 2023. Coupled with rumours inducing IIs to come to Hong Kong, the number of non-ethnic Chinese (NEC) IIs intercepted had once increased in the second half of 2023. The Mainland and local law enforcement agencies have worked together to strengthen intelligence exchange; tighten the issuance of visas to Mainland China and control over the entry of NEC tourists into the Mainland; investigate syndicates organising cross-boundary illegal immigration; conduct interception at black spots in the Mainland and joint patrols at sea to deter NEC IIs from entering Hong Kong.

     With the concerted efforts of various parties, the number of NEC IIs intercepted in Hong Kong dropped significantly by 84 per cent from the peak of 364 in October 2023 to a monthly average of 57 in 2024, and the number of NEC IIs intercepted further reduced to 37 in January 2025. The ImmD will continue to maintain intelligence exchange with the law enforcement agencies in Guangdong, Hong Kong and Macao through the established anti-smuggling collaborative mechanism, and timely conduct joint enforcement operations to deter NEC IIs smuggling into Hong Kong on all fronts.

(5) Following the relaxation of criteria for Vietnamese nationals applying for multiple-entry visas for travel or business on October 25, 2023, to foster closer ties with countries of the Association of Southeast Asian Nations (ASEAN), the ImmD has extended the relaxation to include nationals of Cambodia, Laos and Myanmar starting from October 16, 2024. Meanwhile, the validity period of multiple-entry visas for nationals of these four ASEAN countries has also been extended from two years to three years. Since the commencement of relevant measures and up to end-January 2025, the ImmD has issued some 4 700 multiple-entry visas to applicants from those four countries. The ImmD does not maintain the number of persons refused entry by nationality.

     The ImmD has all along been playing a stringent gatekeeping role to ensure that only applicants meeting the relevant requirements will be granted visas. During immigration examination on arrival, in addition to considering whether the visitor possesses a valid travel document (including visas (if necessary)) and meets normal immigration requirements, the ImmD also decides whether to allow entry of relevant visitor with due consideration to the actual circumstances, having regard to the laws of the Hong Kong Special Administrative Region and prevailing immigration policies.

(7) Over the past five years, the number of non-refoulement claims raised by former foreign domestic helpers (FDHs) are tabulated below, with breakdown by nationality and quarter:

Year
Indonesian
Filipino
Others
Total

2020
1st quarter
13
13
8
34

2nd quarter
28
15
8
51

3rd quarter
22
11
6
39

4th quarter
52
35
23
110

Full Year
115
74
45
234

2021
1st quarter
161
47
37
245

2nd quarter
305
109
79
493

3rd quarter
86
41
27
154

4th quarter
106
30
13
149

Full Year
658
227
156
1 041

2022
1st quarter
41
13
3
57

2nd quarter
134
36
16
186

3rd quarter
186
46
21
253

4th quarter
157
52
22
231

Full Year
518
147
62
727

2023
1st quarter
133
45
21
199

2nd quarter
139
25
10
174

3rd quarter
134
26
21
181

4th quarter
135
31
16
182

Full Year
541
127
68
736

2024
1st quarter
128
32
13
173

2nd quarter
89
23
15
127

3rd quarter
101
31
14
146

4th quarter
111
38
19
168

Full Year
429
124
61
614

     â€‹The Government actively combats the abuse of premature termination of employment contracts by FDHs to change employers (commonly known as job-hopping), including stringently vetting employment visa applications from FDHs who have frequently changed employers. In May 2024, the LD also promulgated a revised Code of Practice for Employment Agencies to request employment agencies to clearly brief FDH job seekers on the relevant immigration regulations, and not to adopt business practices such as providing monetary incentives to induce FDHs in employment to prematurely terminate their employment contracts. The Government has also all along been maintaining close communication and co-operation with Consulates-General of the major source countries of FDHs. The relevant Consulates-General agreed to step up efforts in providing correct information to their nationals about the non-refoulement claim mechanism and the fact that illegal employment is a serious offence liable to imprisonment in Hong Kong.

     Under the Government’s multi-pronged strategy in handling the relevant issue, the situation of former FDHs raising claims has improved. The number of claims raised by former FDHs in 2024 was reduced by 41 per cent compared to the peak in 2021, while the portion to the total claims received in the respective year also dropped from 41 per cent to 22 per cent. The Government will continue to actively co-operate with relevant stakeholders and step up publicity and education. The ImmD does not maintain the breakdown of other statistics mentioned in this question.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ7: Commercial premises under Hong Kong Housing Authority

Source: Hong Kong Government special administrative region

     â€‹Following is a question by the Hon Chan Hak-kan and a reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (February 26):

Question:

     Regarding the leasing status of commercial premises under the Hong Kong Housing Authority (HA), will the Government inform this Council:

(1) of the respective vacancy rates of shopping centres and markets under HA in the past three years (set out in a table);

(2) of the respective areas of HA’s commercial premises designated in each of the past three years for (i) leasing to government departments, (ii) handover to government departments for allocation on its behalf, and (iii) leasing to non-governmental organisations at concessionary rent, together with the respective vacancy rates of such areas (set out in a table); the respective ratios of the areas leased out or utilised under these three arrangements to the total area of the commercial premises;

(3) given that nine of HA’s shopping centres do not have western medical clinics, whether HA will consider inviting Chinese medicine practitioners to set up clinics in these shopping centres to increase healthcare services in the respective districts;

(4) given that HA has earlier launched the “Well Being•Start-Up” Programme in its shopping centres, which offers rent-free shop premises to young people, of the current status of implementation of the programme; whether HA will consider renewing the tenancies of such commercial tenants after the programme ends, and whether it will seek other business premises to continue the implementation of the programme; if so, of the details; if not, the reasons for that; and

(5) whether the authorities have reviewed if the trade mix of HA’s shopping centres can provide an adequate and comprehensive range of social services for the respective districts (e.g. to address the problem of ageing population in public rental housing estates); if they have, of the details; if not, whether they will undertake such a review from the perspective of usage?

Reply:

President,

     The reply to the question raised by the Hon Chan Hak-kan is as follows:

(1) The policy objective of the Hong Kong Housing Authority (HA) is to provide affordable rental housing to low-income families with housing needs. The HA also provides, where appropriate, various ancillary facilities such as retail facilities and actively introduces different trades of goods and services to bring shopping convenience to residents, with a view to catering for and meeting their basic needs in daily life. As at end-December 2024, the overall vacancy rate (Note) of the HA’s commercial premises was 3.87 per cent, indicating an improvement compared with the rate of 3.95 per cent in the previous quarter (at September 2024). Compared with the rate of about 7.8 per cent in the private sector in the same period (at December 2024), the leasing status of the HA’s commercial premises was relatively better. At present, about 85 per cent of the HA’s retail facilities have maintained a vacancy rate lower than four per cent despite the impact brought by the changes in consumption patterns (such as going north for spending and shopping online) of some residents. In many of the HA’s shopping centres, including Ching Long Shopping Centre, JoysMark, Ying Tung Shopping Centre and Ping Yan Shopping Centre, most of the commercial premises, if not all, have been leased out. As for the HA’s markets, all the shopstalls in many of the markets have been leased out, including Choi Hung Estate Market, Ping Shek Estate Market, Ying Tung Market, Mun Tung Market and Tin Yan Market.

     The vacancy rates of shopping centres and markets under the HA in the past three years are set out as follows:

Vacancy Rateã€€(As at January 31 of each year)

HA’s Retail Facilities
2023
2024
2025

Shopping centres
1.2 per cent
2.52 per cent
3.73 per cent

Markets
7.01 per cent
10.71 per cent
13.32 per cent

(2) When planning for public housing projects, the HA follows relevant government policies as well as planning requirements and liaises with relevant departments to reserve space for the provision of suitable welfare, community and recreational as well as sports facilities to serve the residents.

     The non-domestic space in public housing estates (PHEs) is limited and the demand of residents for various non-domestic facilities to cater for their daily needs, such as retail shops, community, education and welfare facilities, car parks and ward offices, is keen. Over the past three years, no commercial premises under the HA have been designated for leasing to government departments or handover to departments for allocation on the behalf of the HA. As for leasing of non-domestic premises at a concessionary rent to eligible non-government organisations (NGOs) for the provision of welfare or community services to residents, the HA strives to provide suitable premises in PHEs as welfare premises. We will keep in view the use of non-domestic properties in PHEs and will update information on vacant welfare premises available for direct application by NGOs on a monthly basis. The information will also be uploaded onto the HA/Housing Department’s websites, allowing eligible NGOs which are interested in leasing welfare premises to make applications.

(3) and (5) The HA has all along been letting out its commercial premises through invitation of tenders in accordance with business principles, and the rental amount is assessed based on the prevailing market value. It has been the HA’s established policy to accord priority to business trades that are able to meet the basic needs of residents, such as pharmacies and Chinese and western medical clinic services catering for the daily needs of the elderly.

     Currently, among the nine HA’s shopping centres which are not equipped with western medical clinics, apart from Tin Ching Shopping Centre, there is at least one Chinese medical clinic and/or a pharmacy with provision of Chinese medicine consultation services, providing healthcare services to residents at their convenience. As for Tin Ching Shopping Centre, in its vicinity, there is a Jockey Club Tin Shui Wai Community Health Centre in the Tin Ching Amenity and Community Building, which provides healthcare services such as Chinese and western medical consultation and treatment as well as health checks. In the past, the HA had attempted for many times to invite tenders for the vacant premises in the shopping centre for Chinese and western medical clinics or relevant trades, but the tenders were unsuccessful. To better utilise the resources, the premises concerned were eventually leased out for other trades and all of the premises in Tin Ching Shopping Centre are now occupied.

     The HA has been collaborating with charitable organisations and NGOs to provide regular and convenient mobile Chinese medical or physiotherapy services in PHEs. Equipped with various medical equipment such as lifting platforms for the disabled, the “mobile Chinese medical vehicles” provide healthcare services including a range of medical services such as acupuncture, to residents in PHEs where Chinese medical or physiotherapy services are not available. From November 2023 to October 2024, the “mobile Chinese medical vehicles” have provided to 33 PHEs a total of more than 1 800 days of Chinese medical or physiotherapy services.

     The HA will review the trade mix of its commercial facilities from time to time and will conduct appropriate and timely feasibility studies on the conversion of vacant premises for other suitable trades. The HA will adopt flexible marketing and leasing strategies and respond duly to the ever-changing market trends and customer expectations, with a view to providing more shopping choices and a wide variety of services to the residents and local community. In estates with a higher population ratio of elderly residents, the HA will take the initiative to approach potential tenants/organisations which target at serving the needs of the elderly and invite them to operate trades such as sale of rehabilitation and medical products, pharmacies, clinics and community centres to cater for the daily needs of the elderly. In addition, the HA has set up a hotline to provide leasing information on its commercial premises to facilitate potential tenants to contact the HA directly. To increase the chance of successful letting, QR codes have also been posted at shopping centres and markets, enabling potential tenants to browse the latest tender notices and subscribe to tender information related to commercial premises. Over the past year (from February 2024 to January 2025), the HA has successfully leased out over 200 shops and market shopstalls, with a certain portion of shops catering for the needs of the elderly for healthy lifestyles. These shop premises were successfully leased out after marketing efforts and formulation of/change for suitable trades in response to market trends. Examples include the Chinese and western medical clinic(s) in Lai Kok Estate, Ching Tao Court, Fuk Loi Estate and Shek Kip Mei Estate, the shop(s) selling rehabilitation and medical products in Tin Ching Estate, as well as the community service centres (with Chinese medicine services) run by NGOs in Shek Mun Shopping Centre and Shui Chuen O Plaza. This demonstrates the positive impact of the abovementioned flexible, effective and comprehensive leasing strategies.

(4) To encourage and support young people in pursuing their entrepreneurial dreams, the HA launched the “Well Being • Start-Up” Programme last year, offering rent-free shop premises in its shopping centres for young people to trial their business plans. If the participants make a profit from the programme, 20 per cent of the net profits will go to the HA to fund and sustain the development of the programme. The programme has been well received since its launch, with about 180 applications received. Currently, 17 selected teams are operating in different shopping centres under the HA. In view of the widespread support from young people and various sectors of the community for the programme, the HA is now actively considering the expansion of the programme. Private shopping arcades and landlords in the commercial sector will be encouraged to provide more chances for young people to start their businesses, make use of the vitality and innovative ideas of young people to provide residents with a more diversified choice of goods and shopping experience, and provide young people with more resources and opportunities to start their businesses and realise business plans with great potential.

     Note: Overall vacancy rate is calculated by: vacant lettable indoor floor area/lettable indoor floor area x 100 per cent.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Commerce and Industry Minister Piyush Goyal joins Maharashtra CM Devendra Fadnavis for key distribution ceremony of 15 self-redeveloped housing societies in North Mumbai

Source: Government of India (2)

Commerce and Industry Minister Piyush Goyal joins Maharashtra CM Devendra Fadnavis for key distribution ceremony of 15 self-redeveloped housing societies in North Mumbai

1000 bed hospital construction progressing swiftly in North Mumbai and another 1000 bed hospital to come up in West Kandivali:Shri Goyal

Posted On: 26 FEB 2025 11:14AM by PIB Delhi

Union Minister of Commerce and Industry, Shri Piyush Goyal, along with Maharashtra Chief Minister Shri Devendra Fadnavis, distributed keys for the 15 self-redeveloped housing societies in North Mumbai on 25 February 2025. Addressing the gathering, the Minister assured that the Central Government would extend full support to the Maharashtra Government’s initiatives in urban redevelopment and infrastructure development.

Shri Goyal conveyed Prime Minister Shri Narendra Modi’s message, stating that the government remains committed to providing pucca houses to the homeless and those currently living in kachha houses in the same locality. He highlighted that this initiative aims to secure the future of families, ensuring a stable home for children and future generations.

Speaking on the development in North Mumbai, Shri Goyal mentioned that the region has been witnessing significant infrastructure advancements in recent times. He noted that the construction of a 1000-bed hospital near the Magathane metro station is progressing swiftly, and another 1000-bed hospital is planned for construction in West Kandivali, which will enhance healthcare access and services in the region.

The Minister applauded Chief Minister Devendra Fadnavis for leading major infrastructural projects, including the extension of the Coastal Road (Worli-Bandra) to Versova and the proposed coastal road connecting the new airport via the Atal Sethu. He stated that these projects would play a pivotal role in reducing congestion and improving connectivity in Mumbai.

Shri Goyal also commended the Maharashtra Government’s efforts in addressing critical civic issues. He pointed out that the persistent problem of road damage during monsoon seasons is being tackled through the extensive use of cement-concrete roads. Additionally, he acknowledged that the issue of untreated sewage water polluting water bodies is being effectively managed, with over ₹26,000 crore allocated to ensure proper sewage treatment before its release into the ocean.

The Minister urged stakeholders to actively participate in and create awareness about self-redevelopment projects in their respective areas. He expressed hope that such initiatives would provide North Mumbai with a new direction, fostering development and ensuring a secure future for its residents.

Concluding his remarks, Shri Goyal emphasized that the event marked a significant step towards self-reliance in urban development, reinforcing the government’s vision of making housing accessible and sustainable for all.

***

Abhijith Narayanan

(Release ID: 2106340) Visitor Counter : 52

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (12)

Source: Hong Kong Government special administrative region

Bond Issuance250. In the coming years, projects related to the NM will be rolled out progressively. Together with other important infrastructure works projects aimed at improving people’s livelihood, the capital works expenditure of the Government will start reaching its peak. In the MRF, capital works expenditure is expected to increase from the previously estimated $90 billion per annum on average to about $120 billion per annum on average in future. 251. To ensure that these strategic infrastructure works projects can proceed on schedule and deliver early benefits to the economy and the public, we will leverage market resources more flexibly, including adopting more diverse development models to take forward the relevant projects, such as more public-private partnerships, in-situ land exchanges, pilot areas for large-scale land disposal, etc. We will also raise capital by issuing government bonds, with a view to ensuring that the progress of projects crucial to the future development of Hong Kong will not be impeded by the fiscal position. 252. Issuing government bonds is one of the public financial management tools. Issuing bonds to support infrastructure development is a common practice worldwide. As long as the amount of bonds issuance is contained at a level that ensures fiscal prudence, capital can be utilised flexibly and for investing in future economic development, bringing greater returns and benefits to the society.253. Hong Kong has the prerequisite and capability to suitably increase bond issuance, thereby effectively utilising market resources. With the increase in capital works expenditure, I will expand the scale of bond issuance accordingly. It is expected that during the five-year period from 2025-26 to 2029-30, a total of about $150 billion to $195 billion worth of bonds will be issued under the Government Sustainable Bond Programme and the Infrastructure Bond Programme every year. About 56 per cent of the bonds issued will be used for re-financing short-term debts.254. We expect the borrowing ceiling of the above two bond programmes to increase from the existing level of $500 billion to $700 billion in the MRF period. The ratio of government debt to GDP will stay at 12 to 16.5 per cent, which is a prudent and manageable level, and is much lower than most of the advanced economies.255. I emphasise that proceeds from bond issuance will be used to invest in infrastructure, but not to fund government recurrent expenditure, which is the fiscal discipline that we have been strictly adhering to. Apart from leveraging market capital to support infrastructure works projects, the Government issues bonds with the aim of fostering the development of the bond market. On the other hand, economic activities and development of industries driven by infrastructure investments will generate new development opportunities and revenues to Hong Kong. Issuing longer-term bonds to support longer-term projects could also align cash flow with project requirements. Medium Range Forecast256. The MRF projects, mainly from a macro perspective, the revenue and expenditure as well as financial position of the Government. It has fully reflected the impact of the measures under the reinforced fiscal consolidation programme. For 2025-26, a real economic growth rate of two to three per cent is adopted, and that for 2026-27 to 2029-30 is about 2.9 per cent per annum.257. During the above period, the average annual capital works expenditure will be about $120 billion, while recurrent government expenditure will grow at a rate of 3.5 per cent per annum. The ratio of total government expenditure to GDP will gradually fall from about 24.4 per cent for 2025-26 to about 20.9 per cent for 2029-30.258. Regarding revenue from land premium, the forecast is made at a conservative level. For 2026-27 and onwards, it is assumed to be progressively rising to two per cent of GDP, which is lower than the 20-year average ratio of 3.3 per cent. I also assume that the growth rate of revenue from profits tax and other taxes will correspond to the economic growth rate in the next few years. Overall, the ratio of government revenue to GDP will maintain at about 20 per cent starting from 2025-26.259. In addition, the MRF reflects the proceeds from the annual issuance of government sustainable bonds and infrastructure bonds worth about $150 billion to $195 billion in total.260. Based on the above assumptions and arrangements, the deficits in the Operating Account and Capital Account in the next five years will gradually reduce every year. The Operating Account is estimated to return to a surplus from 2026-27 onwards, while the deficit in the Capital Account will fall progressively from $159.8 billion in 2025-26 to $87.6 billion in 2029-30. After taking account of net proceeds from the issuance of bonds, the Consolidated Account will return to a surplus starting from 2028-29. The above forecast has not taken into account any tax concessions or relief measures that the Government may implement after 2025-26.261. Fiscal reserves are estimated at $579.1 billion by the end of March 2030, representing 13.9 per cent of GDP, or equivalent to about eight months of government expenditure. Concluding Remarks262. Mr President, over the past year, the steady progress of our economy, along with a sustained growth momentum, has created favourable conditions for our future development.263. In the face of pressure on public finances, we have proactively taken a package of measures to strengthen fiscal management. We have every confidence and determination to overcome the challenges.264. Riding on the wave of technology transformation, we stay bold in taking forward reform and ready to embrace innovation. This will enable us to make the most of the breakthroughs brought about by technology innovation to accelerate the high quality development of Hong Kong and contribute to our country.265. We have to start with the system, removing the constraints and bottlenecks in the course of our development, while overcoming the challenges arising from imbalanced development and uneven share of the fruits of advancement. This reinforces our belief that we must respond to challenges with transformation, drive development with innovation, and lead the future with technology. 266. I have full confidence in and high expectation for the future of Hong Kong. I am confident because Hong Kong people are intelligent, creative and tireless in contributing to our economic development. More importantly, it is due to the staunch and unwavering support we receive from our country. I also owe my confidence to Hong Kong people’s profound insight into the major development trend of the future, as well as the city’s enviable and advantageous position.267. The colour of the cover of this year’s Budget is lake blue, which symbolises a blue ocean of limitless potential for future development. It also represents the deep reserves of strength and promising prospects of high-quality economic development, which resemble the deep waters that contain enormous vitality and infinite possibilities.268. Together, we can shape our future with actions, break boundaries with innovation, and pitch in to create a more prosperous, caring, diverse and international Hong Kong, unravelling a new chapter exclusively for this city and contributing to the building of China into a great country through Chinese modernisation!

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (11)

Source: Hong Kong Government special administrative region

Reinforcing Fiscal Consolidation Programme229. To uphold the principles of fiscal prudence, I recommend reinforcing the fiscal consolidation programme as put forward in last year’s Budget. The key is managing expenditure growth, making good use of the Government’s fiscal resources, and identifying new revenue resources. Our principles are:(a) to focus on strictly controlling government expenditure, supplemented by increasing revenue. Regardless of increasing revenue or cutting expenditure, the impact to the general public should be minimised. In particular, the Government will lead by example to demonstrate our commitment in cutting expenditure, whilst ensuring the delivery of high-standard public services. The Government will also continue to press ahead with infrastructure works projects in the NM and those related to the economy and people’s livelihood;(b) to maintain the competitiveness of Hong Kong’s simple and low tax regime, and to avoid considerable increase in tax rates or introducing new taxes; and(c) to uphold the “user pays” and the “affordable users pay” principles as far as practicable whilst increasing revenue. Strictly Containing the Growth of Government ExpenditureOperating Expenditure230. We will step up efforts to contain government operating expenditure. I have instructed all bureaux and departments to further review their resource allocation and work priorities, and provide public services in a more cost effective manner through consolidating internal resources, streamlining procedures and leveraging technology. 231. On the premise of maintaining efficient public services, we will implement the following measures:(a) stepping up the Productivity Enhancement Programme. On the premise that CSSA, Social Security Allowance and statutory expenditure will not be affected, the rate of reduction of recurrent government expenditure will be increased from the original one per cent to two per cent in 2025-26. This arrangement will be extended for two more years to 2027-28. Taking into account the one per cent cut in 2024-25, the cumulative rate of reduction will be seven per cent in total. Using 2023-24 recurrent expenditure as the basis, it will deliver a saving in recurrent government expenditure of around $3.9 billion, $11.7 billion, $19.5 billion and $27.3 billion in the respective financial years; (b) in view of the reduction in expenditure and enhancement in manpower utilisation, the civil service establishment will be reduced by two per cent each in 2026-27 and 2027-28. By 1 April 2027, about 10 000 posts are expected to be deleted within this term of Government; and(c) the Government will provide funding of $68.1 billion to the University Grants Committee (UGC)-funded universities in the coming three years. This funding has reflected a two per cent reduction target each year, which is in line with the magnitude of government’s recurrent expenditure cut. I must stress that this funding level is still higher than the $63.2 billion in the last triennium.232. In last year’s Budget, I have requested the relevant bureaux to review the operation of two transport subsidy schemes that incur relatively high expenditure with a rapid growth rate, namely the Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities (i.e. the $2 Scheme) and the Public Transport Fare Subsidy Scheme (PTFSS). In order to enable the continued operation of the schemes in a financially sustainable manner, we propose the following adjustments after review:(a) the $2 Scheme: On the basis that the targeted beneficiaries remain unchanged, the Government will change the concessionary fare to “$2 flat rate cum 80 per cent discount”, which means that beneficiaries will continue to pay $2 for trips with fare below or equal to $10. For trips with fare above $10, the beneficiaries will have to pay the amount of full fare after 80 per cent discount. Furthermore, the number of concessionary trips will also be limited to 240 per month. This fine-tuned proposal preserves our policy intent while striking a balance between enhancing the sustainability of the scheme and minimising the impacts to the beneficiaries; and (b) PTFSS: From June 2025 onwards, the threshold of monthly public transport expenses incurred for receiving the subsidy under the Scheme will be raised from $400 to $500. The Government will continue to provide a subsidy amounting to one-third of the expenses in excess of $500, and the prevailing subsidy cap at $400 per month will remain unchanged.233. The relevant policy bureaux will announce the details later. Upon implementation of the refined arrangements, the Government is expected to save $6.2 billion in the coming five years.234. To assist bureaux and departments in reducing expenditure and ensure the proper use of public money, I have requested:(a) the Audit Commission to organise workshops for the senior management of Government departments and public bodies. Through sharing experience and case studies on its value for money audits, the Commission seeks to foster the management’s understanding and adoption of principles and best practices in fiscal prudence and optimal use of public money;(b) the Financial Services and the Treasury Bureau to review and enhance the Government’s procurement regime. We expect that the new arrangements will be introduced in mid-2025, so as to facilitate departments to procure quality goods and services at a reasonable price through an open and fair framework; and(c) the relevant bureaux to review the expenditures on social welfare, healthcare and education. The recurrent expenditure on each of these three areas amounts to more than $100 billion in this financial year. The Government should, having regard to demographic changes in Hong Kong, optimise resources and review the sustainability of the use of resources.235. In addition, the Government puts forward that for 2025-26, the executive authorities, the legislature, the judiciary and members of the District Councils take a pay freeze. This includes the Chief Executive and politically appointed officials; the Non-official Members of the Executive Council; members of the civil service; the President, all Members and Secretariat of the LegCo; Chief Justice of the Court of Final Appeal, judges of the courts at all levels and other members of the Judiciary; and members of the District Councils.Capital Works Expenditure236. Overall construction costs have risen in recent years. The Government will strive to enhance control on cost effectiveness when pressing ahead with infrastructure works projects. I have requested the Project Strategy and Governance Office (PSGO) under Development Bureau (DEVB) to support various departments in enhancing governance of public works projects on all fronts. PSGO scrutinises project cost estimates upon inception of a project, and optimises project design in accordance with the principle of “fitness-for-purpose and no frills”. PSGO also formulates cost-effective proposals in co-ordination with the relevant policy bureaux and works departments in order to reduce construction costs. Since its establishment, PSGO has reviewed over 540 public works projects, achieving savings in construction costs by over 15 per cent. 237. Meanwhile, PSGO is co-ordinating the relevant work on reducing construction costs. This includes formulating policies for the procurement of construction materials and products, such as MiC modules and steel reinforcement, through direct procurement by relevant works departments and centralised procurement by a single department. PSGO will also study the use of new materials and innovative construction technologies by drawing reference from the Mainland and overseas practices and experience. All these efforts aim to help departments reduce project costs, enhance cost-effectiveness and ensure timely completion of public works projects.238. Furthermore, the Government is reviewing the scale and mode of delivery of district cooling systems in new development areas, such as Hung Shui Kiu/Ha Tsuen and San Tin Technopole, to tie in with the development of the area with greater cost-effectiveness. The preliminary estimate of savings in terms of works expenditure is at least $40 billion. The Environment and Ecology Bureau will report the review results in the second quarter this year.Consolidating and Optimising the Use of Government Financial Resources239. Bureaux and departments set up funds outside the Government’s accounts for specific purposes from time to time in the light of their policy needs. Currently, there are a total of 42 such funds with an aggregate balance of nearly $180 billion. Some of these funds only use investment returns to meet their expenditure (i.e. seed capital funds). With different monitoring frameworks and investment strategies, these seed capital funds lock up an enormous amount of public financial resources.240. To enable the Government to make more flexible and effective use of these resources, we have reviewed the financial arrangements of these seed capital funds. We propose bringing back first six funds with relatively large unspent balance, totalling about $62 billion, to the Government’s accounts in 2025-26, after setting aside resources to meet the necessary expenditure of these funds for the next five years so that it will not affect their sustainable operation. This will provide a more comprehensive picture of the Government’s fiscal position and enable better use of its financial resources. We will also require the relevant bureaux to examine the financial arrangements of other seed capital funds.241. We have reviewed the utilisation of the Anti-epidemic Fund. Taking into account the expenditure requirements, the Fund has a remaining balance of about $15 billion, which will be brought back to the Government’s accounts next month. This sum has been reflected in the revised estimate for 2024-25.Enhancing Public Service Efficiency242. The Government has all along endeavoured to deliver more efficient public services to citizens through leveraging technology, streamlining processes and driving the digital transformation of public services.243. We are striving to realise “single portal for online government services”, with a view to providing a one-stop shop for citizens to obtain information, apply for services and settle bills. Since the launch of the “iAM Smart” mobile application, the number of registered users has exceeded 3.2 million. “iAM Smart” connects about 500 services of the Government as well as public and private organisations and provides nearly 600 electronic government forms.244. The DPO is planning to progressively implement a “Digital Corporate Identity” Platform before the end of next year. This will enable Hong Kong enterprises to undergo corporate identity authentication and digital signature process in a secure and convenient manner when using electronic government services or conducting online business transactions. This measure will facilitate digital transformation of enterprises, and help enhance government departments’ efficiency in processing online applications.245. The Transport Department will roll out a number of electronic licensing services, including electronic driving licences, progressively from the middle of this year to early next year. The Department will continue to launch various electronic permits and integrated, user-friendly online services. It also plans to introduce a bill into LegCo on electronic driving licence in the first half of this year to provide the option of displaying driving licences through dedicated applications on smartphones.246. The Housing Bureau has selected 10 public rental housing estates as the pilot sites for smart estate management to adopt more technologies, such as Internet of Things sensors, robots, etc, in daily estate management. It will also launch a centralised estate management platform this year to enhance management efficiency and service quality.247. DEVB is driving digitalisation of public works in full swing, and applying AI technology for big data analysis to reduce the risk of project delay and cost overrun. DEVB is also driving the wider application of highly-effective construction robots in projects with functions including automated processes, remote control, AI, etc, to support construction personnel in various fields to enhance work efficiency, cost-effectiveness, site safety and works quality. 248. The Civil Service College will enhance the content on technology application in civil service leadership training, equipping departmental leaders to optimise their information technology systems, better utilise big data and AI, and arrange appropriate training for their staff.Increasing Revenue249. For some time in the past, some government fees and charges have not been adjusted in accordance with the established mechanisms. As a result, these fees and charges are not pegged to their costs and fail to reflect the “user pays” principle. I am going to introduce the following measures:(a) the rate of air passenger departure tax will be increased from $120 to $200 per passenger starting from the third quarter of 2025-26. It is anticipated that government revenue will increase by about $1.6 billion per year. The impact on air passengers is expected to be minimal;(b) an application fee of $600 will be charged under various talent and capital investor admission schemes with immediate effect. The visa fees, to be charged based on the duration of limit of stay, will be raised to $600 or $1,300. It is estimated that government revenue will increase by about $620 million per annum;(c) the Government has cancelled the tolls of some major tunnels and strategic routes three years ago and the tolls of some Government tunnels have not been adjusted for over 30 years. Considering the fact that the Government has invested heavily in building these infrastructure, the Transport and Logistics Bureau will review the tolls of relevant government tunnels and trunk roads to embody the “user pays” principle. The Government will also review the annual licence fee for electric private cars, parking meter charges, as well as the fixed penalties for traffic offences for better traffic management. Based on preliminary estimation, the relevant adjustments could generate about $2 billion additional revenue per annum;(d) we will explore introducing a boundary facilities fee on private cars departing via land boundary control points. Coaches, goods vehicles, etc, will not be affected. Taking a fee of $200 per private car as an example, the measure will bring in revenue of about $1 billion per annum; and(e) in January 2025, we submitted a bill to LegCo on the implementation of the global minimum tax proposal drawn up by the Organisation for Economic Co-operation and Development to address base erosion and profit shifting. We aim to apply the global minimum tax rate of 15 per cent on large multinational enterprise groups with an annual consolidated group revenue of at least EUR750 million and impose the Hong Kong minimum top up tax. Subject to the passage of the bill, the proposal will bring in tax revenue of about $15 billion for the Government annually starting from 2027-28.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: JAI OPETAIA AND TEAM VISITS CAMPUS OF HOPE

Source: Government of Western Samoa

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(PRESS RELEASE February 14, 2025)-Jai Opetaia is a renowned professional boxer with proud Samoan heritage. He is the reigning Cruiserweight World Champion, holding both the Ring Magazine and International Boxing Federation (IBF) titles.

On Tuesday morning, February 11, the Campus of Hope had the honor of welcoming back Jai Opetaia. This marks his second visit to the campus, where he once again shown his support and compassion by donating food supplies for the children before returning to Australia.

Accompanying Jai on this special visit were his brother and his wife, Kanesha, along with Ray and Kris Currier from Australia. For Ray and Kris, this was also a return visit to SVSG, as they had previously supported the community in 2011 by donating 50 cartons of clothes and toys to children affected by the tsunami.

During his visit, Jai expressed his gratitude for the opportunity to reconnect with the children and extended his best wishes to SVSG in celebration of its 20th anniversary. His dedication to giving back to the community exemplifies his strong connection to his Samoan roots and his desire to uplift and inspire the next generation.

The SVSG community, especially the children at the Campus of Hope, were deeply touched by the kindness of Jai Opetaia and the Currier family. Their visit served not only as a moment of joy but also as a powerful reminder of the impact that love and support can have on the lives of those in need.

As a token of appreciation, SVSG President Siliniu Muliaga Chang expressed heartfelt gratitude: “With a grateful heart, we extend our sincere thanks to Jai Opetaia, Mr. and Mrs. Currier, and their team for remembering our community before leaving the country.

Jai, your accomplishments truly inspire us all, and the children, along with the entire SVSG community, deeply appreciate your presence. It has been a pleasure to host you, and we pray that God grants you strength and success in your upcoming games and future endeavours.

To your wife, brother, and Mr. and Mrs. Currier, thank you for your kindness and unwavering support.”

END OF RELEASE.

SOURCE – Samoa Victim Support Group

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February 26, 2025

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ1: Promoting development of aviation industry

Source: Hong Kong Government special administrative region

Following is a question by the Hon Holden Chow and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (February 26):Question: It has been reported that Hong Kong’s aviation industry has started to recover in terms of, among others, passenger volume and cargo handling capacity, after being hard hit by the epidemic, and Hong Kong-based airlines have been actively expanding their aviation business. There are views that with the recovery of the tourism industry and the commissioning of the Three-‍Runway System at Hong Kong International Airport (Airport), the passenger and cargo throughput of the Airport will increase substantially. Regarding the promotion of the development of the aviation industry, will the Government inform this Council:(1) whether it has compiled statistics on the number of direct flights between Hong Kong and overseas places in each of the past two years, with a tabulated breakdown by companies operating such flights;(2) whether it knows if there is a situation in which air routes between Hong Kong and the rest of the world (excluding the Mainland) have been granted air traffic rights but not yet commenced service; if there is, of the number of destinations for which local airlines (i) have been granted air traffic rights and their flight quotas and, among them, the number of those for which (ii) air traffic rights and flight quotas have not yet been utilised, with a tabulated breakdown by airlines;(3) of the measures the authorities have put in place to encourage the local airlines mentioned in (2) to fully utilise their air traffic rights or flight quotas, so as to operate more flights between Hong Kong and overseas places;(4) of the authorities’ specific expectations and requirements regarding the social responsibilities to be shouldered by Hong Kong-based aviation enterprises; the measures the authorities have adopted or will adopt to effectively enable such enterprises to better fulfil their social responsibilities and play the role of helping Hong Kong consolidate its status as an international aviation hub; and(5) whether the authorities have examined if there is a situation in which the supply of flight quotas for air routes between Hong Kong and overseas places which have been granted air traffic rights falls short of demand and hence a quota increase is required; if there is, of the relevant measures the authorities will adopt to solve the relevant problem?Reply:President, Hong Kong International Airport (HKIA) continued to demonstrate strong recovery momentum in 2024, with significant growth recorded in air traffic data. In the recent month of January 2025, HKIA reached another post-pandemic high in both flight movements and passenger throughput, representing a full recovery of passenger traffic peak to the pre-pandemic level. Compared to the same month last year, all passenger segments, including Hong Kong residents, visitors and transfer/transit passengers, experienced double-digit increase. Traffic to and from Southeast Asia, Mainland China and Japan recorded the most significant increase during the month. Meanwhile, cargo throughput continued to gain momentum, with positive growth recorded across all cargo sectors. Cargo traffic to and from the Middle East, Europe and Australasia grew the most among key trading regions during the month. In consultation with the Civil Aviation Department, the reply to the question raised by the Hon Chow is as follows:(1) In 2024, the number of direct scheduled flights (including both passenger and cargo flights) between HKIA and overseas destinations (excluding Mainland and Taiwan) increased significantly by approximately 30 per cent compared to 2023. Additionally, the number of airlines operating these flights in 2024 also recorded a notable increase, rising by approximately 20 per cent compared to 2023. Details are provided in the Annex.(2) and (5) With a view to further expanding the passenger and cargo air transport capacity and connectivity of HKIA so to meet the market demand for air services, the Government has been making good use of Hong Kong’s unique civil aviation status under “one country, two systems” to conduct air services negotiations with our aviation partners under the authorisation of the Central People’s Government. As of the end of January 2025, we have signed 80 bilateral air services documents. Over the past two years, Hong Kong has expanded bilateral air services arrangements with multiple aviation partners, increasing the capacity limits for relevant passenger and cargo services by at least 60 per cent. This allows airlines to readily increase passenger and cargo services in response to market demand. The overriding principle for traffic rights allocation is that public resources can be fully utilised to consolidate or enhance the competitiveness of Hong Kong’s aviation industry and meet future needs. The Transport and Logistics Bureau (TLB) will take into account a range of factors, including encouraging healthy competition, maintaining Hong Kong’s status as an international aviation hub, and promoting the overall development of Hong Kong’s aviation industry, in considering the allocation of traffic rights to local airlines, with a view to promoting the overall interests of Hong Kong. As for the specific details of traffic rights allocation, since the traffic rights negotiated between the Government and other countries or regions are recorded in the form of bilateral Confidential Memoranda of Understanding, which contain sensitive information such as details of bilateral negotiations, we are not in a position to disclose more of the relevant information to third parties. The TLB will continue to closely monitor the utilisation of traffic rights by local airlines to ensure that these precious traffic rights are put to good use, and will adopt a more forward-looking perspective in expanding traffic rights with our aviation partners.(3) When launching new routes or increasing flight frequencies, airlines will consider factors such as market demand and the allocation of company resources. In addition, the Government has all along encouraged local airlines to launch and increase flights to support Hong Kong’s overall development. Local airlines have responded positively. Following the launch of direct passenger services to Vientiane (Laos), Riyadh (Saudi Arabia), Sendai and Yonago (Japan), as well as Cairns and Gold Coast (Australia) last year and earlier this year, they will gradually commence direct flights to Dallas (the United States of America), Hyderabad (India), Munich (Germany), Brussels (Belgium), and Rome (Italy) later this year. They will also increase the frequency of flights between Hong Kong and North America. At the same time, the Airport Authority Hong Kong has implemented several related measures, such as the Airport Network Development Programme launched in June 2024, which provides financial incentives to encourage airlines to open new routes and increase flight frequencies on existing routes. To date, the Programme has attracted 24 airlines, covering 53 destinations.(4) The Government maintains a regular communication mechanism with local airlines to monitor their operations and ensure the healthy development of the aviation industry. With the commissioning of the Three-Runway System, the passenger and cargo handling capacity of HKIA will increase significantly. The Government will continue to maintain close communication with local airlines to ensure that they enhance their service quality continuously, providing stable and reliable services that deliver an excellent experience to passengers. At the same time, the Government has requested that local airlines’ network planning should support the Government’s strategy to enhance Hong Kong’s position as an international aviation hub and to meet Hong Kong’s strategic development needs.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (10)

Source: Hong Kong Government special administrative region

Public Finance

210. The Government has been adhering to the principle of keeping the expenditure within the limits of revenues as enshrined under Article 107 of the Basic Law and strives to achieve fiscal balance over a period of time to ensure the resilience and sustainability of our public finances.

211. Let me elaborate on the Government’s current fiscal position.

212. Government revenue and expenditure are broadly presented in two major accounts, namely the Operating Account and the Capital Account. The revenue of the Operating Account mainly comes from various types of tax revenue, investment income, government fees and charges, and so on, while its expenditure is largely attributed to the Government’s daily expenses. As for the Capital Account, its revenue is mainly land-related, while its expenditure largely involves infrastructure works projects and land acquisition.

213. In view of the different composition and nature of the Operating Account and the Capital Account, we have to manage them separately with different fiscal targets and methods. The Operating Account should be managed on the basis of keeping expenditure within the limits of revenues with the target of achieving a surplus.

214. As for the Capital Account, expenditure on infrastructure works is our investment for the future. For instance, the NM development, which will bring economic and social benefits upon completion, has to be taken forward to meet the needs for social and economic development. However, as revenue is susceptible to economic cycles, there may be a shortfall between revenue and expenditure. Under such circumstances, we can utilise the surplus in the Operating Account or our fiscal reserves as support, or make flexible use of market resources, including various forms of public private partnership and bond issuance.

215. We forecast that the Operating Account will largely achieve balance in 2025-26 and return to a surplus starting from 2026-27. The Capital Account is estimated to record a deficit in the Medium Range Forecast (MRF) period due to the accelerated development of the NM and other public works projects relating to the economy and people’s livelihood. Nevertheless, the level of deficit will decline year on year from 2026-27 onwards.

Revised Estimates for 2024-25

216. The 2024-25 revised estimate on total government revenue is $559.6 billion, lower than the original estimate by 11.6 per cent.

217. Among them, revenues from profits tax and salaries tax remain stable at $177.7 billion and $88 billion respectively, comparable to the original estimates, demonstrating the strong resilience of Hong Kong economy.

218. However, as asset market is under pressure, government revenues from land premium and stamp duties have declined. Revenue from land premium is $13.5 billion, substantially lower than the original estimate by $19.5 billion. Revenue from stamp duties of $58 billion is lower than the original estimate by $13 billion.

219. Government expenditure for 2024-25 is comparable to the original estimate. The revised estimate of total government expenditure for 2024-25 is $754.8 billion, lower than the original estimate by $22.1 billion. Of this, the recurrent expenditure is $562.5 billion, lower than the original estimate by $17.7 billion.

220. Taking into account the issuance of government bonds of $130 billion and repayments of $22.1 billion, it is expected that there will be a consolidated deficit of $87.2 billion for 2024-25. Fiscal reserves are expected to be $647.3 billion by March 31, 2025.

Estimates for 2025-26

221. Looking ahead to 2025-26, the Government will continue to provide resources for consolidating momentum on economic growth, promoting the accelerated development of I&T industries, and enhancing public services. We will also increase capital works expenditure to cater for the NM and other public works projects relating to the economy and people’s livelihood, so as to support the sustained economic development of Hong Kong.

222. The major policy initiatives announced in the 2024 Policy Address involve operating expenditure of $8.1 billion and capital expenditure of $14.1 billion. The financial implications of such initiatives have been reflected in the estimates for 2025-26.

223. Total government expenditure for 2025-26 will increase by 8.9 per cent to $822.3 billion, with its ratio to nominal GDP projected to be 24.4 per cent.

224. Recurrent expenditure for 2025-26 will increase by 4.5 per cent to $588.1 billion. Of this, substantial resources will still be allocated to livelihood related policy areas including healthcare, social welfare and education, involving a total of $348.6 billion, representing about 60 per cent of recurrent expenditure. Non recurrent expenditure will decrease by 3.4 per cent to $36.1 billion.

225. Total government revenue for 2025-26 is estimated to be $659.4 billion, while earnings and profits tax are estimated to be $301.2 billion, increasing by 8.4 per cent over the revised estimate for 2024-25. On the basis of the Land Sale Programme and the land supply target of 2025-26, revenue from land premium is estimated to be $21 billion, increasing by 55.3 per cent over the revised estimate for 2024-25. Having regard to the recent trading conditions of the stock market, revenue from stamp duties is estimated to be $67.6 billion, increasing by 16.5 per cent over the revised estimate for 2024-25. Besides, we will bring back about $62 billion from six endowment funds established outside the government accounts.

226. Taking into account the bond issuance of about $150 billion and repayments of about $54.1 billion in 2025-26, a deficit of $67 billion is expected for the year, and the fiscal reserve will decrease to $580.3 billion.

Support Measures

227. Having regard to the pressure faced by some industries and the people, and the Government’s fiscal situation, we will introduce the following measures:

(a) provide rates concession for domestic properties for the first quarter of 2025/26, subject to a ceiling of $500 for each rateable property. This measure will involve 3.12 million domestic properties and reduce government revenue by $1.5 billion;

(b) provide rates concession for non-domestic properties for the first quarter of 2025/26, subject to a ceiling of $500 for each rateable property. This measure will involve 430 000 non-domestic properties and reduce government revenue by $200 million.

(c) reduce salaries tax and tax under personal assessment for the year of assessment 2024/25 by 100 per cent, subject to a ceiling of $1,500. The reduction will be reflected in the final tax payable for the year of assessment 2024/25. This measure will benefit 2.14 million taxpayers and reduce government revenue by $2.9 billion;

(d) reduce profits tax for the year of assessment 2024/25 by 100 per cent, subject to a ceiling of $1,500. The reduction will be reflected in the final tax payable for the year of assessment 2024/25. This measure will benefit 165 400 businesses and reduce government revenue by $200 million; and

(e) provide an allowance to eligible social security recipients, equal to one half of a month of the standard rate Comprehensive Social Security Assistance (CSSA) payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance, while similar arrangements will also apply to recipients of the Working Family Allowance, altogether involving an additional expenditure of about $3.1 billion.

228. To ease the burden on buyers of residential and non-residential properties at lower values, I announce that the maximum value of properties chargeable to a stamp duty of $100 will be raised from $3 million to $4 million with immediate effect. This measure is expected to benefit about 15 per cent of property transactions and reduce government revenue by about $400 million annually.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (9)

Source: Hong Kong Government special administrative region

Accelerating Green DevelopmentGreen Industries171. Development of green industries is a major international trend and key to addressing global climate change. The combination of green finance and green technology will accelerate the build-up of multi-faceted industry clusters, thereby creating huge business opportunities and financing needs, and making contribution to green transformation and development.Green Finance172. We launched the Sustainable Finance Action Agenda last year, setting out goals for the banking industry to achieve net zero. We also launched the Roadmap on Sustainability Disclosure in Hong Kong. It provides a well defined pathway for large publicly accountable entities to adopt the International Financial Reporting Standards – Sustainability Disclosure Standards no later than 2028. This will make Hong Kong one of the first jurisdictions to align its local requirements with the Standards.173. To continuously support local green-finance talent training, we will extend the Pilot Green and Sustainable Finance Capacity Building Support Scheme to 2028. Over 5 700 applications have been approved under the Scheme.Green Technology174. The HKSTPC will develop the InnoCentre in Kowloon Tong into a leading green technology hub – “GreenTech Hub”, bringing together more than 200 green technology companies. The HKSTPC will invite financial and business institutions, universities, institutions supporting business, etc, to become partners of the admitted companies and provide support such as talent training, testing and application scenarios, and business matching.Green Shipping175. The Government will provide tax exemption for green methanol used for bunkering. Meanwhile, the Government will implement the Action Plan on Green Maritime Fuel Bunkering to develop Hong Kong into a green maritime fuel bunkering centre.Green Aviation176. To provide support for the decarbonisation of the international and local aviation industry, we are promoting the application of Sustainable Aviation Fuel (SAF) at the HKIA. The AA completed a relevant study last year. We will announce an SAF consumption target this year.Green CityWaste Reduction and Recycling177. To enhance waste reduction at source, the Government will allocate an additional funding of $180 million for increasing the number of residential food waste smart recycling bins and food waste collection facilities across the city, as well as expanding the recycling network and increasing waste recovery.Waste to Energy178. I·PARK1, Hong Kong’s first waste-to-energy facility for treating municipal solid waste, is expected to commence operation this year. Moreover, we have invited the open tender for I·PARK2, the second large-scale facility with an expected treatment capacity of 6 000 tonnes per day. It is a major step towards “zero landfill”.Charging Network for Electric Vehicles179. There are more than 100 000 electric vehicles in Hong Kong, about eight times of that five years ago. The Government will launch a $300 million subsidy scheme in the middle of the year. It is expected that the scheme will provide impetus for the industry to install 3 000 fast chargers across Hong Kong by 2030 to be used by 160 000 additional electric vehicles.Green Transformation of Public Buses and Taxis180. The Government has announced the Green Transformation Roadmap of Public Buses and Taxis and earmarked $470 million under the New Energy Transport Fund to subsidise franchised bus operators in purchasing about 600 electric buses. Also, $135 million were earmarked to subsidise the taxi trade in purchasing 3 000 electric taxis. In addition, the Funding Scheme to Trial of Hydrogen Fuel Cell Heavy Vehicles is now open for application.Smart and Green Mass Transit Systems181. Last year, the Government invited expressions of interest for the smart and green mass transit system projects in Kai Tak, East Kowloon and Hung Shui Kiu/Ha Tsuen and Yuen Long South NDAs. The Government will continue to take forward the projects with an innovative mindset, and strive to invite tenders for the Kai Tak project this year and the East Kowloon and Hung Shui Kiu/Ha Tsuen and Yuen Long South NDAs projects next year respectively. Sustainable Development of Agriculture and Fisheries Industries182. We will continue to take forward the Blueprint for the Sustainable Development of Agriculture and Fisheries to assist the upgrading and transformation of the agriculture and fisheries industries. The Government has reserved a site in Sheung Shui for the agriculture sector to set up the first multi-storey, modernised and environment-friendly livestock farm. For the fisheries sector, the first batch of marine fish-culture licences at Wong Chuk Kok Hoi and Mirs Bay will be issued in the middle of the year the earliest. We are also proactively working to establish a brand building and certification system for leisure fisheries and farming, as well as local agricultural and fisheries produce. Land and Housing SupplyLand Supply183. We need a sufficient supply of land to create the capacity for supporting the development of new industries, injecting new impetus into our economy, and providing a better living and leisure environment for our people.184. The Government will closely monitor market situation and development, and roll out sites in a paced and orderly manner. Having learned from past experience that land shortage would constrain Hong Kong’s development, we must persist with our work on planning and land creation. The pace of rolling out sites to the market can be adjusted in the light of actual circumstances. 185. The commercial property market has been facing considerable challenges in the past few years. In view of the high vacancy rates of offices in recent years and the relatively ample supply in the next few years, the Government will not roll out any commercial site for sale in the coming year to allow the market to absorb the existing supply. We will also consider rezoning some of the commercial sites into residential use and allowing greater flexibility of land use. To tie in with the relevant work, we will also extend the deadline for completing in-situ land exchange for commercial sites in the town centre of HSK/HT NDA. 186. The Land Sale List of the coming year comprises eight residential sites. There will also be railway property development projects, projects undertaken by the Urban Renewal Authority (URA) as well as private development and redevelopment projects. Taken together, the potential land supply for the whole year is expected to have a capacity for providing about 13 700 units, similar to the projected annual demand for private housing as announced in the Long Term Housing Strategy. The sale arrangements will be announced on a quarterly basis having regard to market situation and relevant circumstances.187. We will prepare land for the production of about 80 000 private housing units in the coming five years. About 65 per cent of the land comes from the NM and the Tung Chung New Town Extension. The above projection has yet to take into account the supply from development projects undertaken by the URA and other private development projects.Housing Supply188. On public housing supply, the Government has identified sufficient land for meeting the supply target of 308 000 public housing units over the next 10 years. Coupled with Light Public Housing, the total public housing supply in the coming five years will reach 190 000 units, which is about 80 per cent higher than that of the first five year period since the current term Government took office.189. On private housing supply, it is estimated that the completion of private residential units will be on average over 17 000 units annually in the coming five years, representing a decrease of about eight per cent over the annual average of the past five years. The potential supply of first hand private residential units for the next three to four years will be around 107 000 units. Infrastructure DevelopmentTransport Infrastructure190. The Government will strive to commence the detailed planning and design of the South Island Line (West) project this year. The construction works of the remaining sections of Route 6, namely the Central Kowloon Route and Trunk Road T2 and Cha Kwo Ling Tunnel, are entering the final stage. The Central Kowloon Route project is expected to be completed by the end of this year while Route 6 will be fully commissioned next year.Professional Development of Construction Industry191. I have set aside $15 million for the work of the Centre of Excellence for Major Project Leaders over the next two years to enhance the professionalism, innovation capabilities and cost-effectiveness management of the construction industry. The Centre will organise summits and various events to promote exchanges and co-operation transcending geographical and sectoral boundaries.192. To attract more young people to join the construction industry, we and the Construction Industry Council (CIC) will jointly allocate funding totalling about $95 million to continue the provision of on-the-job training subsidies to trainees enrolling in part-time construction-related degree programmes over the next two academic years. It is anticipated to benefit about 1 000 trainees.193. The CIC will allocate around $150 million to subsidise the construction industry to provide on the job training for about 2 500 graduates of degree programmes in engineering, architecture, surveying, planning and landscape architecture. This will assist more young people in obtaining professional qualifications. A Caring and Inclusive CommunitySupport for Youth194. The Government has just raised the upper age limit for participants of the Youth Employment and Training Programme to 29 and introduced workplace attachment opportunities in the GBA to help young people enhance their employability. The estimated expenditure for the Programme next year is around $100 million.195. In the coming year, we plan to offer around 4 000 short term internship placements in bureaux and departments and public organisations for tertiary students. Students who aspire to pursue a career in public service may take the opportunity to broaden their horizons and better plan for their future career development.196. The Hong Kong Housing Authority has launched the “Well Being ??? Start Up” Programme on a pilot basis, offering rent-free shop premises in its shopping centres for young people to trial their business plans. The Programme has received ardent support from different sectors of the community. The Authority will expand the programme and appeal to private landlords for support.Caring for the Elderly197. The Government will, in the next financial year, increase the number of vouchers under the Residential Care Service Voucher Scheme for the Elderly by 1 000 to 6 000 in total and increase the number of vouchers under the Community Care Service Voucher Scheme for the Elderly by 1 000 to 12 000 in total, involving an annual expenditure of about $1,710 million and $900 million respectively.198. The Working Group on Promoting Silver Economy will implement measures in five areas, namely boosting “silver consumption”, developing “silver industry”, promoting “quality assurance of silver products”, enhancing “silver financial and security arrangements”, and unleashing “silver productivity”. Relevant policy bureaux are taking forward their work.199. The HKMA will collaborate with the Hong Kong Association of Banks to formulate industry guidelines this year, with a view to encouraging banks to offer elderly-friendly electronic banking services.Support for Working Families200. As at the end of last year, about 50 000 households were receiving allowance under the Working Family Allowance Scheme, involving around 170 000 persons, inclusive of some 70 000 children. In 2025-26, the estimated expenditure for the Scheme is about $2.1 billion. The Government has increased the rates of the household and child allowances under the Scheme by 15 per cent across the board with effect from April last year.Child Protection201. The Mandatory Reporting of Child Abuse Ordinance will come into effect next January, creating a wider protection web for children. The Government will provide an additional annual provision of $186 million to increase emergency places for residential child care and strengthen professional support for child abuse victims and their families.Support for Persons with Disabilities202. The Government will set up 14 Integrated Community Rehabilitation Centres across the territory in phases to provide persons with disabilities who require medium to high level care with flexible and integrated community support services through a case management approach. Besides, 1 280 additional day community rehabilitation and home care service places will be provided for persons with disabilities, involving about $160 million additional annual expenditure.203. Starting from the third quarter of this year, the Government will regularise the Pilot Project on Enhancing Vocational Rehabilitation Services to provide training to persons with disabilities according to their personal interest and abilities to enhance their employment opportunities. The annual expenditure involved is about $100 million and it is expected to benefit about 10 000 people.Women’s Development204. The Government is committed to women’s development and launched the Women Empowerment Fund in June 2023 with an annual funding of $20 million. To date, the Fund has provided funding support to women’s groups and non governmental organisations for launching over 240 projects, empowering women to excel. This year, a two year pilot mentorship programme will be launched, pairing female university students with women leader mentors to promote women’s workplace development.District Services and Community Care Teams205. Last year, the Chief Executive announced that the Government would regularise the establishment of District Services and Community Care Teams and increase their funding by 50 per cent in the next term of service. Since the launch of the Community Care Teams, they have paid visits to about 390 000 households and provided around 43 000 times of support services. The Government will further enhance the provision of caring services.Enhancement of Public Healthcare System206. To develop primary healthcare, the Government will upgrade the District Health Centre Expresses in Central and Western District, Eastern District and Yau Tsim Mong District into District Health Centres this year, with a view to strengthening the community healthcare system.207. The Government is progressively implementing and completing the 16 works projects, which entail a total of about $190 billion, under the First Hospital Development Plan. Taking into account the latest demographic structure, planning and development situation in Hong Kong, we will review the distribution, scale and priority of projects under the Second Hospital Development Plan, and will make the announcement in due course.208. Furthermore, the Government and the HA are reviewing the structure and levels of subsidisation for public healthcare, with a view to strengthening the financial sustainability of public healthcare services and providing better support for patients with serious or critical conditions as well as those with financial difficulties. The outcome of the review will be announced this year.Combatting Illegal Betting209. In recent years, quite some members of the public have expressed concerns about the problem of illegal basketball betting in Hong Kong. According to the latest assessment of the Hong Kong Jockey Club (HKJC), the turnover of illegal basketball betting reached $70 billion to $90 billion last year. To combat illegal betting activities in an effective manner, the Government will explore regulating basketball betting activities and invite HKJC to submit a proposal.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (8)

Source: Hong Kong Government special administrative region

Talent Hub

All-out Efforts to Trawl for Talents

Attracting Quality Talents and Professionals

151. The Government makes every effort to trawl for talents, and will shortly invite top and leading talents to come to Hong Kong for development under the Quality Migrant Admission Scheme. We will also enhance the Admission Scheme for Mainland Talents and Professionals and the General Employment Policy by allowing young non-degree talents with professional and technical qualifications and experience to come to Hong Kong to join skilled trades facing manpower shortage.

“Global Talent Summitâ€§Hong Kong”

152. The Hong Kong Talent Engage (HKTE) provides comprehensive one stop support to incoming talents, promotes globally Hong Kong’s advantages and attracts talents. The HKTE plans to organise the second “Global Talent Summitâ€§Hong Kong” early next year to reinforce Hong Kong’s status as an international hub for high-calibre talent.

Belt and Road Scholarship

153. The Government will continue to attract more students, especially those from ASEAN and other B&R countries, to study in Hong Kong through various measures, including the B&R Scholarship.

New Capital Investment Entrant Scheme

154. Under the New Capital Investment Entrant Scheme, more than 880 applications have been received cumulatively, with an expected investment of over $26 billion. We will launch a series of enhancement measures shortly to provide greater flexibility under the Scheme.

All-out Efforts to Nurture Talents

155. To stimulate primary and secondary school students’ interest in I&T, I have invited the HKIC, the HKSTPC and Cyberport to co-ordinate the efforts of more than 100 technology enterprises under their purview to engage in interactions and exchanges with students to share frontier exploration and start-up experience in technology through organising product display in schools, site visits, etc, in the coming year. These technology enterprises cover various domains such as AI, robotics, and green technology.

156. We are also encouraging technology enterprises in Hong Kong to provide resources, technical guidance and practice scenarios for technology education such as coding and AI learning in schools, with a view to further enhancing young people’s interest and capability in I&T application through integrating theoretical learning and practical application.

Enhancing Collaboration with Cities in the Greater Bay Area

Medical Co-operation

157. The joint establishment of the GBA Clinical Trial Collaboration Platform by Hong Kong and Shenzhen is one of the benchmark collaboration projects in the GBA. We are seeking to establish the Real-World Study and Application Centre by the end of this year. With the data from the “special measure of using Hong Kong registered drugs and medical devices used in Hong Kong public hospitals in GBA”, we aim to accelerate approval for registration of new drugs in Hong Kong, the Mainland and overseas, fostering R&D, clinical trials and application of advanced biomedical technology in Hong Kong.

158. The Hospital Authority (HA), through various talent exchange programmes, invites healthcare professionals, including those from the Mainland especially the GBA, for professional and clinical exchange with local healthcare personnel to foster mutual professional enhancement and, in the long run, establish a regional healthcare talent pool.

Data Flow and Exchange

159. The facilitation measure on the “Standard Contract for the Cross-boundary Flow of Personal Information Within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong)” helps promote the safe and orderly cross-boundary flow of authorised personal information, and has been well-received by the telecommunications sector since its launch. The measure has already been opened up for participation by other sectors.

Financial Co-operation

160. The HKMA and the PBoC signed the Memorandum of Understanding on Cross-Boundary Credit Referencing Pilots last year on a pilot basis between Shenzhen and Hong Kong. The initiative has received positive feedback from the industry. We will progressively expand the pilot coverage to further facilitate cross-boundary financing for enterprises.

Youth Exchange

161. The Labour Department has since this year relaxed the requirements of joining the GBA Youth Employment Scheme to young people aged 29 or below with sub-degree or higher qualifications, and increased the limit of allowance for enterprises to $12,000 per month per person for up to 18 months.

Co-operation in Transport and Logistics

162. At the end of last year, the AA and the Zhuhai Transportation Holdings Group signed the Agreement of Shares Acquisition concerning the equity acquisition of Zhuhai Airport, which provides a reinforced foundation for passenger and cargo connectivity between the airports. Separately, 21 airlines and 125 logistics companies have participated in the sea air intermodal cargo transhipment mode under the co-operation of Hong Kong and Dongguan. It is expected that the first phase construction of the permanent facility for the Phase 1 development of the logistics park in Dongguan will be completed this year and the preliminary study of the Phase 2 development will commence shortly.

Co-operation Relating to Construction Industry

163. The Building Technology Research Institute established last year is comparing and complementing the testing and certification requirements between standards in different regions with a view to promoting local application of high-quality and cost-effective construction materials. Moreover, the Institute will closely liaise with the counterparts concerned in Guangdong Province for commencing a strategic study on standards in the GBA soon.

164. We are actively collaborating with the Guangdong Province to leverage complementary advantages of Modular Integrated Construction (MiC) methods and develop MiC as an industry in the GBA. Efforts will be dedicated to R&D, quality accreditation and international marketing of MiC.

165. We have, in collaboration with Guangdong Province, successfully established the “Professional Title” evaluation mechanism for the first batch of Hong Kong engineering professionals. The mechanism will be gradually extended to other construction-related professions with the right conditions. We will also collaborate with Guangdong Province and Macao SAR to formulate GBA standards on the skill levels for skilled workers and technicians of the construction sector, and take forward the “One Examination, Multiple Certification” arrangement. We will announce the GBA standards for the first pilot trade in due course.

Legal Co-operation

166. The Department of Justice (DoJ) is actively taking forward its work in setting up a dedicated platform for GBA lawyers to provide better support to the business development and brand building of lawyers. The DoJ will also actively promote the establishment of a GBA legal information platform to enhance legal information exchange.

Development of Qianhai

167. The Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone is one of the major co-operation platforms in the GBA. Since the promulgation of the “Overall Development Plan for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone”, Hong Kong-Shenzhen cooperation has achieved substantive progress in various policy areas. For example, the turnover of Qianhai Mercantile Exchange, a subsidiary of HKEX, exceeded RMB100 billion over the year. It operates our country’s only offshore spot trading platform for soybeans.

168. On the basis of the successful implementation of the measure of “allowing Hong Kong-invested enterprises to adopt Hong Kong law” in Qianhai, the DoJ collaborated with the relevant Mainland authorities and achieved the extension of the above measure and the measure of “allowing Hong Kong invested enterprises to choose Hong Kong as the arbitration place” to other pilot cities in the GBA, providing Hong Kong investors with a more facilitative business environment.

169. Cyberport has been actively collaborating with the Qianhai Management Authority to facilitate the landing of start-up enterprises at respective parks. So far, some 10 Cyberport enterprises are exploring setting up their operations in Qianhai, whilst two enterprises on AI and digital entertainment from Qianhai have established businesses at Cyberport.

170. Hong Kong will continue to support Qianhai in trying out new policies on a pilot basis and pursuing more policy innovation and breakthroughs, with a view to promoting the successful policies to the rest of the GBA and even the entire country.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (7)

Source: Hong Kong Government special administrative region

Healthcare IndustryTrain and Pool Healthcare Professionals126. In recent years, the Government has increased the number of medical training places on several occasions. The number of places will increase to 650 in the 2025/26 academic year. The public healthcare sector will leverage the revised legislative framework to admit non-locally trained healthcare professionals.Enhance Regulation for Drugs and Medical Devices127. The Government will, in the first half of this year, put forward the timetable for establishing the Hong Kong Centre for Medical Products Regulation and the roadmap towards adoption of “primary evaluation”. We will also formulate strategies and measures to facilitate R&D of drugs and medical devices.Third Medical School128. The Task Group on New Medical School has invited local universities interested in setting up the third medical school to submit proposals. It expects to complete assessment and formulate recommendations to the Government this year. We will set aside resources to support universities in the development of the new medical school on a matching basis.Cultural and Creative Industries129. The Government is committed to promoting the development of cultural and creative sectors as industries. A cumulative total of over 780 projects, some of which with potential for industrialisation, have been approved under the CreateSmart Initiative, involving a total funding of about $3.4 billion and benefiting more than 30 000 SMEs. To foster the vibrant development of the local creative industry chain, OASES will strategically attract to Hong Kong more cultural and creative enterprises that integrate I&T into their work.Large-scale Art Events130. The inaugural Hong Kong Performing Arts Expo concluded in October last year, featuring over 1 600 arts leaders and practitioners from more than 60 countries and regions. We will organise the second edition of the Expo next year, transforming the event into a flagship of our arts and cultural industries.131. The Government will continue to attract and support the staging of international or large scale arts and cultural events in Hong Kong through the Mega Arts and Cultural Events Fund, with a view to promoting the development of Hong Kong as an East meets West centre for international cultural exchange. We have updated the assessment criteria to require funded events to help promote tourism and bring economic benefits.Development of Film Industry132. The Government has always been a staunch supporter to the development of the film industry. A cumulative total of over $1.3 billion has been approved by the Film Development Fund to support more than 120 film projects. These projects involved more than 110 new directors and producers, and the relevant films have won more than 180 awards. The Fund has also launched the Film Financing Scheme for Mainland Market to encourage Hong Kong film companies and Mainland cultural enterprises to invest in and promote productions by Hong Kong directors.Cultural Intellectual Property133. The Government will support cultural IP creators and producers to propel more than 30 cultural IP projects cumulatively in the coming five years. We are fostering more cross-sectoral collaboration within the cultural and creative sectors so as to enhance the communication power and sales value of cultural IP products.Tourism Industry134. Tourism boosts local economic development and creates employment opportunities. To pursue the concept of “tourism is everywhere” and implement the Development Blueprint for Hong Kong’s Tourism Industry 2.0, I will allocate $1,235 million to the Hong Kong Tourism Board (HKTB) in the coming year.135. The HKTB will collaborate with more international brands to tell the good stories of Hong Kong’s tourism. For example, the HKTB signed a three-year global strategic partnership agreement with Art Basel to establish immersive experience zones of Hong Kong culture in all four annual Art Basel shows around the world, strengthening Hong Kong’s connection with the global art scene.136. We will step up efforts to promote a series of distinctive tourism products such as eco tourism, panda tourism, horse-racing tourism, etc, to enrich travel experiences in Hong Kong.137. The HKTB will continue to support the staging of more meetings, incentive travels, conventions and exhibitions in Hong Kong, which are expected to bring about 183 000 additional visitor arrivals and spending of about $1.4 billion.138. I have earmarked resources to strengthen support to the cruise industry, encouraging cruise lines to increase their number of ship calls to Hong Kong, make overnight calls and use Hong Kong as the homeport. We will provide cruise lines with more concessions to attract cruise ships to berth at the Kai Tak Cruise Terminal during the low season.Mega Event Economy139. We will continue to promote and publicise Hong Kong as a mega events capital globally, attract more tourists to Hong Kong and enhance their tourism experience during their stay.140. Kai Tak Sports Park is the largest ever sports infrastructure in Hong Kong with the 50 000-seat Stadium. Large scale sports and entertainment events will be held in the Park, thereby driving visitation and spending.141. The Government has been supporting the staging of major international sports events in Hong Kong through “M” Mark System. We will adopt a more strategic approach in continuously attracting sports events which can bring significant economic benefits to Hong Kong, and are in discussion with LIV Golf which has been held in Hong Kong for two consecutive years to explore long-term partnership. Announcement will be made shortly.Seize Opportunities Arising from Resumption of Multiple entry Individual Visit Scheme142. The Government of the HKSAR expresses great gratitude to the Central Government for resuming at the end of last year the multiple entry Individual Visit Endorsements for Shenzhen permanent residents and expanding the arrangement to Shenzhen residence permit holders. Since the implementation of the new measure, more than 700 000 visitors have travelled to Hong Kong on multiple entry Individual Visit Endorsements.143. Thanks to the new measure and with an increase in the number of overseas travellers, the city bustles with activities. Retail, catering and other sectors all reported growth in business volume during the recent Christmas and New Year holidays. The Government will make good use of the various measures that benefit Hong Kong to proactively promote the development of Hong Kong’s tourism industry.Develop Visitor Sources from the Middle East and ASEAN144. In collaboration with the HKTB, the Government will make extra efforts to develop markets in the Middle East and ASEAN to attract more high end visitors. The Government is encouraging various sectors of the community to enhance tourism support facilities, such as providing worship facilities in hotels and stepping up staff training to strengthen the industry’s understanding of the visitors’ different cultural backgrounds.Smart Tourism145. The HKTB will enhance the one stop travel information platform, Discover Hong Kong to provide a “Live Travel Map” and a “Smart Itinerary Planner” so as to provide visitors with more comprehensive and personalised itinerary suggestions, travel information and offers.Leverage Harbourfront Resources146. We are making every effort to enhance the harbourfront on both sides of the Victoria Harbour. The recently opened western section of the East Coast Boardwalk in North Point has been popular among the public. The eastern section of the Boardwalk, the Hung Hom Urban Park (Phase 2) and the open space at Eastern Street North in Sai Ying Pun will also be completed this year. We will set up refreshment stalls at harbourfront locations in Central, Wan Chai, North Point and Tsim Sha Tsui this year to enrich visitor experience.147. The Government has invited the Mass Transit Railway Corporation Limited to conduct a study to develop the waterfront and former pier sites to the south of Hung Hom Station into a new harbourfront landmark. It will include iconic commercial and residential developments, retail, dining and entertainment facilities, as well as yacht club for promoting yacht tourism. We will put forward land use proposals in the middle of this year.Education Industry148. Hong Kong’s post secondary education sector is highly international and diversified. We boast five of the world’s top 100 universities and a pool of first rate R&D talent. We will launch a new round of Research Matching Grant Scheme totalling $1.5 billion to attract more organisations to support research endeavours of institutions.149. The Government will host more international education conferences and exhibitions to highlight Hong Kong’s position as an international post-secondary education hub. We will step up promotion of the “Study in Hong Kong” brand to attract more outstanding non-local students. The quota of the Hong Kong PhD Fellowship Scheme will be increased to 400 places per year.150. Self-financing post-secondary institutions complement publicly-funded institutions in providing diversified articulation pathways for young people. The Government has launched a new round of the Land Grant Scheme and the Start-up Loan Scheme, under which land sites are granted at nominal premium with interest-free loans, so as to support capacity expansion and quality enhancement of self-financing institutions.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ11: Prevention of telephone fraud

Source: Hong Kong Government special administrative region

     Following is a question by Dr the Hon Dennis Lam and a written reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (February 26):

Question:

     The Office of the Communications Authority announced at the end of last year that starting from December 31 last year, local mobile service providers would play a voice alert message to local users for calls made from newly activated local prepaid Subscriber Identification Module (SIM) cards, stating, “This call is made from a new prepaid SIM card”, so as to further assist members of the public in staying vigilant against suspicious calls. On the other hand, it has been reported that the number of telephone fraud cases has remained high since the Government introduced the Real-name Registration Programme for SIM Cards. In this connection, will the Government inform this Council:

(1) whether it has estimated the effectiveness of the aforesaid voice alert measure;

(2) of the number of telephone fraud cases received by the Police last year and the total amount of money involved;

(3) of the respective numbers of cases received by the Police last year concerning the purchase and registration of local SIM cards using false identity documents, and the sale of SIM cards registered in the names of others;

(4) of the respective numbers of cases in which telecommunications service providers rejected SIM card registration requests and deregistered suspicious SIM cards last year;

(5) of the number of cases received by the Police last year concerning the use of artificial intelligence image synthesis technology to create falsified images and commit fraud through video calls; and

(6) the number of downloads of “Scameter+” since its launch, and the number of suspicious calls it has successfully blocked?

Reply:

President,

     The Real-name Registration Programme for SIM Cards (RNR Programme) has been fully implemented since February 24, 2023, requiring that all SIM cards issued and used locally (including SIM service plans and pre-paid SIM cards (PPS cards)) must complete real-name registration before service activation. The RNR Programme helps plug the loophole arising from the anonymous nature of PPS cards used in conducting illegal activities in the past, and assists law enforcement agencies in the detection of crimes involving the use of PPS cards (including phone deception). To combat phone deception, the Office of the Communications Authority (OFCA) has been collaborating with the Hong Kong Police Force (Police) and telecommunications operators to devise and implement a series of measures from the telecommunications services perspective to combat such illegal activities by tackling the problem at source. Regarding the question raised by Dr the Hon Dennis Lam, having consulted the Security Bureau, the Police and OFCA, our reply is as follows:

(1) and (4) To assist the public in guarding against suspicious calls, local mobile service providers have been required since December 31 last year to send voice alerts to local mobile and fixed service users for calls made from newly activated local PPS cards to raise users’ awareness of suspicious calls. The voice alerts are applicable to newly activated local PPS cards while the SIM service plans are not affected. The measure has been implemented for about two months and has been operating smoothly overall. OFCA will continue to review the implementation of the measure, and make appropriate adjustments as necessary to ensure its effective implementation.

     In addition, to ensure the effective implementation of the RNR Programme, OFCA has been requiring telecommunications operators to continuously enhance their registration platforms taking into account the implementation experiences, including the request for telecommunications service providers to adopt “iAM Smart” as the default registration method for Hong Kong identity (HKID) card holders under the RNR Programme since October last year or otherwise, telecommunications operators must manually verify the registration information submitted upon receipt of a registration request for completing the necessary procedures before activating the PPS cards. At the same time, telecommunications operators have to conduct full manual verification of the registration information submitted on the online registration platforms by all non-HKID holders (e.g. holders of valid travel documents or passports) for PPS cards. Moreover, telecommunications operators are required to conduct regular sampling checks on the registration information of registered PPS card users and manual checks on suspected cases. If users subject to sample checks are unable to verify the registration information following the instructions of the respective telecommunications service providers, the relevant PPS cards may be deregistered and cannot be used further.

     Since the implementation of the RNR Programme, as of the end of January this year, around 4.1 million PPS cards were rejected as the clients failed to provide information in compliance with the registration requirements. In addition, telecommunications operators have cancelled the registration records of about 3.2 million non-compliant PPS cards. OFCA will continue to maintain close liaison with telecommunication operators and will refer any suspicious cases to the Police for follow-up action as soon as possible.

     To further enhance the RNR Programme, the Government is reviewing the overall implementation of the RNR Programme, including the limit on the number of PPS cards, as well as prohibiting the resale of registered SIM cards. The Government plans to introduce the relevant legislative amendments to the Legislative Council within this year.

(2) and (3) The Police received a total of 9 204 telephone deception cases in 2024, involving a total amount of $2.91 billion. The Police does not keep statistics on the number of cases concerning the purchase and registration of local SIM cards using false identity documents or the sale of SIM cards registered in the names of others.

(5) and (6) The Police received a total of three fraud cases related to deepfake technology in 2024, involving fraudsters impersonating senior executives of companies to lure victims to make money transfers, and cases of deepfake technology being used to lure victims in Hong Kong, the Mainland and various places in Southeast Asia to invest in cryptocurrencies.

     In addition, the Police launched a one-stop scam and pitfall search engine, Scameter, in September 2022, and a mobile application version, “Scameter+”, in February the following year, to help members of the public distinguish suspicious online platform accounts, payment accounts, telephone numbers, email addresses, websites, etc, and to provide anti-fraud tips. As of the end of last year, “Scameter+” had been downloaded for over 874 000 times, and had alerted users to over 90 000 suspicious calls and over 600 000 suspicious websites. In addition, since September 2022 and up to the end of last year, the Police have asked telecommunications operators to block more than 8 300 local and non-local suspicious telephone numbers and nearly 30 000 suspicious website links.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (6)

Source: Hong Kong Government special administrative region

International Trade Centre105. As an international trade centre, Hong Kong capitalises on unique advantages and reinforces connectivity, and serves as a bridge linking the Mainland and global markets. It provides high-standard professional services for international trade, helping our country promote the new development pattern of “dual circulation”.Multinational Supply Chain Management Centre106. HKTDC and InvestHK jointly encourage Mainland enterprises to establish a foothold in Hong Kong and set up international or regional headquarters for managing offshore trading and supply chain, thereby assisting these enterprises in going global and planning supply chains and industry chains. HKTDC will provide them with one-stop professional consulting services to help them establish market connections and understand laws and regulations in overseas markets.107. Hong Kong serves as an important regional trade financing centre. The outstanding trade finance by banks has reached $380 billion, about 40 per cent of which provide financing for merchandise trade outside Hong Kong. The Trade Financing Liquidity Facility recently introduced by HKMA and PBoC also provides greater flexibility for RMB trade financing. In addition, the Hong Kong Export Credit Insurance Corporation will provide credit insurance for export services relating to multinational supply chain to render more comprehensive support to enterprises seeking to go global.108. The Government will make reference to the Model Law on Electronic Transferable Records advocated by the United Nations Commission on International Trade Law and consider legislative amendments to facilitate digitalisation of trade documents. We will submit the relevant legislative proposal to LegCo next year.Network Expansion109. To expand our trade network and attract more inward investment and enterprises from the Global South markets to Hong Kong, the Government is following up actively with the governments of Malaysia and Saudi Arabia on the establishment of Economic and Trade Offices in these two countries. In addition, InvestHK has established consultant offices in Cairo, Egypt and Izmir, Türkiye. HKTDC has also set up a consultant office in Cambodia.110. We are exploring the signing of investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru, and conducting negotiations with 17 countries on Comprehensive Avoidance of Double Taxation Agreements.Strengthen Co-operation with Belt and Road Countries111. Hong Kong will continue to utilise our role as a functional platform for the Belt and Road (B&R) Initiative. We, together with business and professional services sectors, will continue to further cultivate the ASEAN and Middle East markets, and explore opportunities in Central Asia, South Asia and North Africa. HKTDC will strengthen B&R project matching, particularly on green development and I&T.112. The B&R Summit is a flagship platform for Hong Kong to participate in and contribute to the B&R Initiative. The 10th Summit will be organised in September and we will encourage different sectors to hold events around the Summit period for enhancing synergies.Supporting Local Enterprises113. To support the development of local enterprises and help them go global, we will inject $1.5 billion in total into the Dedicated Fund on Branding, Upgrading and Domestic Sales and the Export Marketing and Trade and Industrial Organisation Support Fund, and streamline application arrangements. CEDB will announce details later.114. The Government has been providing loan guarantees to businesses through the SME Financing Guarantee Scheme. As at the end of last year, a total of over $288 billion of loans has been approved under the Scheme, benefitting nearly 65 000 small and medium enterprises (SMEs). To meet the financing needs of SMEs during transformation, we relaunched the principal moratorium arrangement in November last year for one year, allowing enterprises to apply for principal moratorium for up to 12 months.115. In addition, many banks have joined the Taskforce on SME Lending jointly established by HKMA and the Hong Kong Association of Banks, committing to making flexible arrangements as far as practicable to ease the cash flow burden on SMEs. The funds dedicated for SME financing in the participating banks’ loan portfolios have recently been increased to over $390 billion. 116. To further assist local SMEs in tapping into the Mainland market and increasing sales from electronic commerce (e-commerce) markets, HKTDC will launch the “E-Commerce Express” in collaboration with large-scale e-commerce platforms to provide Hong Kong enterprises with one-to-one consultation services and thematic seminars. HKTDC will also enhance its mentorship scheme together with the Trade and Industry Department. By doing so, local enterprises will better leverage e-commerce and online shopping platforms in the Mainland to boost sales. In addition, HKTDC will organise the second edition of the Hong Kong Shopping Festival.International Maritime Centre117. Hong Kong is a leading international maritime centre. The Government will continue to embrace changes and adopt an innovative spirit to create a stronger impetus for the development of the industry.Establish Hong Kong Maritime and Port Development Board118. The Government will establish the Hong Kong Maritime and Port Development Board this year to strengthen relevant research, promotion and manpower training to facilitate the sustainable development of the international maritime centre.High Value Added Maritime Services119. In the past few years, the Government has introduced a series of tax measures conducive to the development of the maritime industry. In light of changes of international tax rules, we are enhancing these measures, including introduction of tax deduction on ship acquisition cost for ship lessors under an operating lease. To drive the development of maritime services, we also propose to provide half-rate tax concession to eligible commodity traders. We will introduce a bill into LegCo in the first half of next year.Modern Logistics Development120. The Government endeavours to identify and release suitable logistics sites. The first of such logistics sites in the vicinity of the Kwai Tsing Container Terminals has just been disposed of by public tender. Meanwhile, the Government initiated a study on the development model for logistics sites in the NM in order to develop modern logistics clusters. Findings of the study are expected to be announced this year.Smart Port121. To develop smart port, the Government has set aside $215 million to install the port community system, with a view to enhancing the flow of data among stakeholders in the maritime, port and logistics industries. We will seek funding approval from LegCo this year.International Aviation Hub122. The Hong Kong International Airport (HKIA) connects to nearly 200 global destinations. Daily passenger throughput and number of aircraft movements have largely returned to pre pandemic level. Air cargo throughput has topped the global ranking for multiple years. The HKIA Three-Runway System was commissioned at the end of last year, while the related passenger facilities will commence operation by phases from the end of this year.Airport City123. The Airport Authority Hong Kong (AA) has just promulgated a development plan for expanding the Airport City. With the aviation industry as its focal point, the Airport Island as well as the land and waters in its vicinity will be utilised for the development of a new highlight project encompassing high end commercial, art, tourism and leisure activities.Facilitate C919’s Entry to International Aviation Market124. In January this year, our country’s home developed aircraft C919 was officially deployed for scheduled flights between Hong Kong and Shanghai. The inaugural flight outside of the Mainland signified a major breakthrough for home developed aircrafts to go global. Hong Kong will help C919 enter the global market. The Hong Kong International Aviation Academy will expand its training programmes to cover C919 aircraft related aspects.Aircraft Parts Processing and Trading Centre125. Under the co-ordination of InvestHK, the AA has signed a Memorandum of Understanding with a leading overseas professional aeronautic services company to explore the possibility of providing professional services such as aircraft dismantling, parts recycling and related training in Hong Kong, thereby developing Hong Kong into the first aircraft parts processing and trading centre in Asia.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (5)

Source: Hong Kong Government special administrative region

Strengthening Industries with Competitive Edge

72. It is imperative for Hong Kong to leverage on its strategic positioning as the “three centres and a hub” and make good use of the advantages of “one country, two systems”. With the resolute support of our country, we must consolidate and strengthen industries with clear advantages whilst actively nurturing and developing new industries, injecting new impetus to Hong Kong’s economy such that Hong Kong could contribute to the Chinese path to modernisation while realising faster and better development.

International Financial Centre

73. Last year, Hong Kong ranked among the top three international financial centres (IFC) and the top four initial public offering markets in the world. The Hong Kong stock market has been buoyant since the beginning of this year. Total assets under management amounted to over $31 trillion, with over half of the funding sourced from investors outside. The offshore Renminbi (RMB) liquidity pool has expanded to approximately RMB1.1 trillion.

74. The key to consolidating and enhancing the strengths of Hong Kong as an IFC lies in institutional innovation, product innovation, a critical mass of enterprises and financial connectivity. Over the past few years, institutional reforms to the capital market, including establishing listing avenues for new economy and technology enterprises with weighted voting rights structures, facilitating fundraising by overseas issuers, etc., coupled with the Government’s active efforts in attracting new capital overseas and expanding new markets, have injected impetus to the Hong Kong market and improved its liquidity. We are pressing ahead with high-quality development of Hong Kong’s international financial market to create more new growth areas.

Securities and derivatives market

Facilitating financing of overseas enterprises and specific products

75. The Association of Southeast Asian Nations (ASEAN) is an important economic region that continues to grow. A number of enterprises from ASEAN are seeking to apply for listing in Hong Kong, covering businesses in areas such as biotechnology, integrated logistics, mining, etc.

76. HKEX will step up its promotion in ASEAN and the Middle East, and actively explore areas of co-operation with countries in the region, including the listing of exchange-traded funds, to enrich the investment product choices in mutual markets and promote two-way capital flows. HKEX will also strive to increase the number of overseas recognised exchanges to facilitate more overseas companies’ secondary listing in Hong Kong.

77. In order to facilitate more private equity funds to list in Hong Kong, SFC has clarified the relevant regulatory requirements to encourage sizeable alternative asset funds with regular income streams to raise funds. In addition, HKEX will put forward recommendations to enhance the issuance mechanism of structured products with a view to providing greater flexibility for product listing and trading.

Improving trading and risk management efficiency

78. We will continue to advance reforms to the trading mechanism. HKEX will gradually introduce new functions to its post-trade system from the middle of this year and conduct system upgrades to ensure technical compatibility with the T+1 settlement cycle by the end of this year, and complete advance preparations for shortening the settlement cycle.

79. Riding on the reduction in minimum price spreads to be implemented in the middle of this year, HKEX is reviewing with the SFC the trading unit system, or the so-called “board lot” system, and will put forward proposed enhancements this year, so that trading arrangements can better meet liquidity characteristics of shares of different sizes and investment needs, as well as facilitate trading and improve efficiency.

80. We have submitted the subsidiary legislation with regard to the implementation of the uncertificated securities market regime to LegCo. The SFC and HKEX are working closely with the industry to carry out system upgrades and technical preparations, with a view to implementing the regime early next year.

81. To meet the risk management needs of investors, the SFC will consult the market on the proposal to increase the position limits for key index derivatives, so as to enhance flexibility for investors to use the relevant derivatives while safeguarding financial safety.

Taking forward reforms to the listing regime

82. To dovetail with the latest economic trends and corporate needs, we will review listing requirements and post-listing ongoing obligations, evaluate listing-related regulations and arrangements to improve the vetting process, optimise the thresholds for dual primary listing and secondary listing, and review the market structure, including exploring the establishment of a post-delisting over-the-counter trading mechanism.

Fixed Income and Currency Hub

83. The SFC and the HKMA have set up a task force to formulate a roadmap, covering the development of primary and secondary bond markets and foreign exchange markets, as well as infrastructural enhancement. We will also organise a flagship forum in the second half of this year to promote Hong Kong’s strengths in this regard.

84. The Government will conduct research into the current legal and regulatory regime related to the issuance and transactions of digital bonds and explore enhancement measures to promote the wider adoption of tokenisation in Hong Kong’s bond market.

85. The Government will regularise the issuance of tokenised bonds. The HKMA is preparing for issuing the third tranche of tokenised bonds, and will continue to encourage digital bonds issuances through the Digital Bond Grant Scheme, while actively exploring tokenising traditional bonds issued.

Asset and Wealth Management Centre

86. We have been striving to foster the development of the asset and wealth management industries. Measures implemented include enhancements to the Cross-boundary Wealth Management Connect in the GBA, Exchange-traded Fund (ETF) Connect, and the Mainland-Hong Kong Mutual Recognition of Funds arrangement.

87. We will formulate proposals on the preferential tax regimes for funds, single family offices and carried interest this year, including expanding the scope of “fund” under the tax exemption regime, increasing the types of qualifying transactions eligible for tax concessions for funds and single family offices, enhancing the tax concession arrangement on the distribution of carried interest by private equity funds, etc.

88. We will continue to attract global capital to Hong Kong and develop a vibrant ecosystem for family offices. InvestHK has assisted over 160 family offices in setting up operations or expanding their businesses in Hong Kong. We will be hosting the third edition of the Wealth for Good in Hong Kong Summit shortly under the theme “Hong Kong of the world, for the world”, showcasing Hong Kong’s strengths as a global hub for family offices.

Offshore RMB Business Centre

89. With the prudent and steady progress of RMB internationalisation, Hong Kong, as an offshore RMB business hub, will continue to enhance offshore RMB liquidity, improve the relevant infrastructure, and provide more investment products and risk-management tools.

90. The Government promotes the formation of the offshore RMB yield curve by regularly issuing RMB bonds of different tenors. The Hong Kong RMB Clearing Bank has been offering 24-hour cross-border clearing service since last year, bringing convenience to banks and customers in different time zones.

91. The current size of the Currency Swap Agreement between the HKMA and the People’s Bank of China (PBoC) is RMB800 billion. The HKMA will launch an RMB Trade Financing Liquidity Facility for banks as a stable source of relatively lower-cost funds, so as to support banks in providing RMB trade finance services to their corporate customers. The new facility has a total size of RMB100 billion.Â

92. To promote trading of more stocks in RMB and improve market liquidity, both places are conducting technical preparations at full speed to implement the inclusion of RMB trading counter under Southbound trading of Stock Connect. In addition, HKEX is taking forward the single tranche multiple counter arrangement, including adopting the same International Securities Identification Number for dual-counter stocks, so as to enhance settlement efficiency. The Government has also been conducting preparatory work to allow the stamp duty payable on the transfer of stocks at RMB counters to be paid in RMB, with a view to putting forward a legislative proposal next year.

Mutual market access and co-development with the Mainland

93. We will enhance the mutual market access mechanism with the Mainland, including the issuance of offshore Mainland government bond futures in Hong Kong, and implementing block trading of stocks and inclusion of real estate investment trusts under the mutual access as soon as possible. We will also actively explore opportunities to introduce further expansion initiatives, extend the Cross-boundary Wealth Management Connect Scheme in the GBA, improve market liquidity, and enrich the risk management toolbox.

94. The Financial Services and the Treasury Bureau, together with OASES and the HKTDC, will host the inaugural Hong Kong Global Financial and Industry Summit this year, which will pool together global enterprises, funds and technologies through financial empowerment, thereby elevating the level of international co-operation of industries. It will also attract more leading companies in advanced industries, domestic as well as overseas enterprises and investors to establish a foothold in Hong Kong.

95. To promote the connection of e-payment between the Mainland and Hong Kong, the PBoC and the HKMA are working closely to implement the linkage of faster payment systems of both places, with a view to providing round-the-clock real-time, small-value cross-boundary remittance service for residents in both places. The service is expected to be launched in the middle of this year at the soonest.

96. According to the “Second Agreement Concerning Amendment to the Mainland and Hong Kong Closer Economic Partnership Arrangement Agreement on Trade in Services”, the restriction for the Mainland branches of Hong Kong banks to conduct bank card business will be lifted starting from next month. This will facilitate them in expanding their businesses in the Mainland.

Fintech and Financial Innovation

Virtual Asset Development

97. We have been actively developing the virtual asset ecosystem in Hong Kong in recent years, and have been at the forefront by establishing a framework that balances regulation and market development.

98. “Consensus”, an annual flagship event of the sector, was successfully held in Hong Kong recently, bringing together a few thousands of industry elites and companies from across the world in virtual assets, blockchain, Web3 and fintech, etc. This is a manifestation of global confidence in Hong Kong’s vibrant development in this area. During the event, the SFC also announced a roadmap on the virtual asset market.

99. We will soon promulgate a second policy statement on the development of virtual assets to explore how to leverage the advantages of traditional financial services and innovative technologies in the area of virtual assets, enhance security and flexibility of real economy activities, and encourage local and international companies to explore the innovation and application of virtual asset technologies. The Government will conduct consultation on the licensing regimes of virtual asset over-the-counter trading services and custodian services this year.

100. We have introduced into LegCo a bill to put in place a regulatory regime for issuers of fiat-referenced stablecoins. Upon the passage of the Bill, the HKMA will expedite the vetting of licence applications.

Gold and Commodities

101. The Working Group on Promoting Gold Market Development will formulate a plan this year, covering measures to enhance storage facilities, optimise trading and regulatory mechanisms, expand exchange products, and conduct market promotion. The measures will be implemented gradually.

102. London Metal Exchange, a subsidiary of HKEX, has included Hong Kong as its approved delivery point in January this year. Local warehouse operators have expressed interest in becoming its accredited warehouses. Relevant discussion is actively underway.

Non-traditional risk transfer

103. As an international risk management centre, Hong Kong has been providing diversified risk management tools. We are proactively promoting the development of insurance-linked securities by establishing a dedicated regulatory regime and launching a pilot grant scheme. To date, we have facilitated the issuance of six catastrophe bonds in Hong Kong, with issuance amount totalling over $5.8 billion. The industry responded favourably to the pilot scheme, and we will extend it for three years.

MPF “Full Portability”

104. The Mandatory Provident Fund Schemes Authority will consult the public on specific proposals of MPF “Full Portability” this year and submit recommendations to the Government thereafter, such that MPF “Full Portability” can be launched soon after full implementation of the eMPF Platform.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ14: Protecting rights and interests of animals

Source: Hong Kong Government special administrative region

Following is a question by the Hon Edward Leung and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (February 26):Question: It has been reported that a domestic cat fell to its death from a building in Pak Shek Kok, Tai Po, earlier on. The flat in question was repeatedly found by members of the public in August and December last year with domestic cats perched precariously on the glass balcony fence. The Hong Kong Society for the Prevention of Cruelty to Animals had followed up and given advice, but was unable to effectively prevent the incident concerned. Moreover, there are views that the Prevention of Cruelty to Animals Ordinance (Cap. 169) does not have sufficient deterrent effect as the threshold for prosecution is rather high (e.g. ‍it is difficult to prove that the domestic cat was caused “any unnecessary suffering” before falling to its death in the aforesaid case). In this connection, will the Government inform this Council:(1) of the respective numbers of reports received by the authorities in the past three years of cats being in dangerous positions, and the respective numbers of cases of cats falling from a height resulting in injury and death; the number of prosecutions instituted by the Government in respect of such cases under Cap. 169, and the number of convicted cases and the average penalty imposed by the court;(2) as it is learnt that some cases of cats falling from a height resulting in injury or even death involve keepers who have not installed cat safety nets at home, have left windows open or have even kept cats on balconies, whether the authorities have instituted prosecutions and obtained convictions in such cases; whether they will consider amending the legislation to stipulate that it is an offence for any person who knowingly or recklessly performs an act prejudicial to the life or well-being of an animal, so as to strengthen the protection of the rights and interests of animals under the law; if so, of the details; if not, the reasons for that; and(3) given that the Government, in its paper submitted to the Panel on‍ Food Safety and Environmental Hygiene of this Council on ‍May 22, ‍2022, proposed to amend Cap. 169 to introduce a positive “duty of care” for animals, and it has been reported that the Government is preparing to amend the legislation, whether the Government will, at the same time, make reference to the approach in the Protection of Children and Juveniles Ordinance (Cap. 213) by authorising the Director of Agriculture, Fisheries and Conservation to take timely possession of an animal where there is reason to believe that the animal is likely to be in moral or physical danger, and to recover from the pet owner the costs of caring for it during that period; if so, of the details; if not, the reasons for that?Reply:President, The Government adopts a multi-pronged approach to curb acts of cruelty to animals. This includes exploring raising penalties for offences under the Prevention of Cruelty to Animals Ordinance (Cap. 169) (the Ordinance) to enhance deterrence, taking stringent enforcement actions against illegal acts, and continuing to enhance relevant public awareness through education and promotion activities. Having consulted the Security Bureau, the reply to the question from the Hon Edward Leung is as follows:(1) and (2) At present, the Ordinance clearly stipulates that any person who does or omits to do any act which causes unnecessary suffering to an animal is liable to the offence of cruelty to animals, and could be sentenced to a maximum fine of $200,000 and imprisonment for three years upon conviction. The Agriculture, Fisheries and Conservation Department (AFCD) and the Hong Kong Police Force (HKPF) are responsible for enforcing the Ordinance. In the past three years (i.e. from 2022 to 2024), the AFCD received 15 reports of cats in dangerous positions or suspected to have fallen from a height resulting in injury and death, among which 10 cases involved cats falling from a height resulting in injury and death. After investigating the abovementioned cases, there was no evidence to suggest that someone had contravened the Ordinance. The HKPF does not maintain a breakdown of the number of reports and cases related to cats. The Government has been studying amendments to the Ordinance, where one of the directions being explored is to impose a positive “Duty of Care” on persons responsible for animals, requiring them to take proper care of the welfare of animals (including diet, environment, health, and behaviour). Meanwhile, the AFCD has been actively promoting information on the fulfilment of the “Duty of Care” through various channels such as thematic website, social media and roving exhibitions.(3) At present, the Ordinance already empowers the HKPF and the AFCD to seize the animals involved when there is reason to suspect that an offence under the Ordinance is being or has been committed, and the AFCD will arrange for their care as necessary. In addition, we will also study amending the Ordinance to empower the Court to require a person convicted of contravening the Ordinance to pay for the cost of taking care of the detained animals.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: LCQ20: Prevention of cruelty to animals

Source: Hong Kong Government special administrative region

LCQ20: Prevention of cruelty to animals
LCQ20: Prevention of cruelty to animals
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Following is a question by the Hon Doreen Kong and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (February 26): Question: In December last year, The Ombudsman announced the launch of a direct investigation operation to probe the Government’s work on animal management and protection of animal rights and welfare. It has been reported that multiple incidents of dog poisoning have occurred one after another in Hong Kong since the beginning of this year, causing concern and panic among dog owners. In this connection, will the Government inform this Council: (1) given the dog poisoning incidents that have occurred in recent months, whether the relevant departments have set up a dedicated interdepartmental co-operation team to expedite source tracking, improve investigation efficiency, and enhance related detection work as well as publicity and education efforts; (2) given that the authorities indicated last year that they were preparing for legislative amendments to the Prevention of Cruelty to Animals Ordinance (Cap. 169), and whereas the Government stated in a paper submitted to the Panel on Food Safety and Environmental Hygiene of this Council in May 2022 that public consultation on the proposed amendments to the Ordinance had been conducted in 2019, and as there are views that the proposed amendments have not yet been included in this year’s legislative programme so far and that the progress has been rather unsatisfactory, whether there have been any delay in the relevant work, and what the specific timetable is for the authorities to amend the Ordinance; (3) given that in reply to a question from a Member of this Council on December 9, 2020, the Government indicated that it currently had no plan to set up a dedicated hotline for reporting animal cruelty cases, whether the Government will reconsider such proposal in light of the latest trends that have emerged in recent days; if so, of the details; if not, the reasons for that; and (4) as there are views that the Agriculture, Fisheries and Conservation Department has failed to properly handle reports of animal cruelty, whether the authorities will improve the Department’s complaint handling mechanism in this regard in order to curb such an undesirable trend in animal cruelty as soon as possible; if so, of the details; if not, the reasons for that? Reply: President, The Government adopts a multi-pronged approach to curb acts of cruelty to animals. This includes exploring raising penalties for offences under the Prevention of Cruelty to Animals Ordinance (Cap. 169) (the Ordinance) to enhance deterrence, taking stringent enforcement actions against illegal acts, and continuing to enhance relevant public awareness through education and promotion activities. Having consulted the Security Bureau, the reply to the question from the Hon Doreen Kong is as follows:(1) The Hong Kong Police Force (HKPF), the Agriculture, Fisheries and Conservation Department (AFCD) and the Society for the Prevention of Cruelty to Animals (SPCA) jointly implement the Animal Watch Scheme to proactively prevent and detect suspected cases of animal cruelty through multi-agency collaboration. For example, the HKPF would invite the AFCD and SPCA officers to provide professional advice at the scene of an animal cruelty case and assist thereafter where necessary. Through various channels including the Animal Watchers Programme, the “Be a Responsible Pet Owner” thematic website and roving exhibitions, the HKPF and the AFCD are respectively promoting the message of preventing cruelty to animals at the community level and online platforms; encouraging the public to report cases timely and to provide information that aids investigations; as well as raising public awareness of animal welfare.(2) The Government has been studying amendments to the Ordinance. In preparing the Bill, it is necessary to consult the relevant stakeholders again on some of the proposals, and after collating the views, we will finalise the proposals and complete the law drafting work promptly. Once the work is completed, we will introduce the proposed legislative amendments into the Legislative Council. One of the directions being explored in the legislative amendment is to impose a positive “Duty of Care” on persons responsible for animals, requiring them to take proper care of the welfare of animals (including diet, environment, health, and behaviour). In this connection, the AFCD continues to promote information on the fulfilment of the “Duty of Care” through various channels such as thematic website, social media and roving exhibitions.(3) Members of the public may report suspected animal cruelty cases immediately by calling the 999 Report Centre or 1823 to report to the AFCD. The existing channels for reporting crime are well known to the public, easy to remember and has worked well. The Government will continue to review the operational details to see if there is room for improvement.(4) Upon receipt of report of suspected animal cruelty cases, the AFCD officers will visit the scene promptly to conduct investigation, including taking photographs of the animals and the environment of the scene, examining the health conditions of the animals and collecting evidence, etc. The AFCD will arrange for a veterinarian to give professional advice at the scene if necessary. If animal cruelty is suspected to be involved in the case, the AFCD will decide whether to seize the animals concerned according to its health condition and hand over the injured animals to the SPCA for further treatment. According to the information of the Department, over 90 per cent of the reports were found to be not related to animal cruelty after investigation, but nuisance or other situations, such as frequent noise from animals or odour from the premises where the animals were kept, and this misled the reporters into thinking that the animals suffered from acts of cruelty. There are also cases involving neglect of animals but does not involve cruelty, such as the failure to provide adequate space. For these cases, the AFCD officers would give verbal advice on responsible pet ownership and improvement suggestions to the owners concerned after inspecting the scene.

Ends/Wednesday, February 26, 2025Issued at HKT 12:00

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MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (4)

Source: Hong Kong Government special administrative region

Northern MetropolisIndustries and Spatial Distribution61. The NM is crucial to the social and economic development of Hong Kong, providing impetus for the development of the I&T industry, enabling more in-depth participation in the development of the GBA, while creating quality career development opportunities and living environment for our people. The Government will continue to accord priority in providing resources to this initiative. Major industries include:(a) I&T: The Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (Hetao Co operation Zone), together with San Tin Technopole, will provide large tracts of I&T land to leverage complementary advantages with the Shenzhen Park of the Hetao Co-operation Zone. We will also introduce new policies to facilitate cross-boundary flows of innovative elements; (b) High-end Professional Services and Modern Logistics: With the Shenzhen Bay Bridge and the Hong Kong-Shenzhen Western Rail Link connecting with Qianhai in Shenzhen under planning, Hung Shui Kiu/Ha Tsuen New Development Area (HSK/HT NDA) is positioned to become a high-end professional services hub for local, Mainland and overseas enterprises. Under the “East in East out, West in West out” strategy for cross-boundary goods movement between Hong Kong and Shenzhen, we will also plan logistics land strategically in the vicinity of boundary control points;(c) Tertiary Education: To complement the development of Hong Kong’s I&T industry and to promote Hong Kong as an international hub for tertiary education, we have reserved about 90 hectares of land in the NM for developing the Northern Metropolis University Town, including the third medical school; and(d) Culture, Sports and Tourism: Apart from reserving land for cultural and sports facilities, the NM preserves traditional villages and historical and cultural resources. We will develop culture, sports and tourism industries, including promoting eco-tourism, in accordance with the unique characteristics of different localities.Innovative and Diversified Land Development Approach62. To press ahead with the NM development and bring in industries, and to benefit the economy and people’s livelihood sooner, the Government will adopt a more diversified development approach with an innovative mindset, including piloting “large-scale land disposal”. We are inviting the market to submit expressions of interest for three pilot areas under “large-scale land disposal”, with the target of commencing tendering progressively from the second half of this year. We will also continue to identify suitable sites for private landowners to apply for in-situ land exchange for residential and industry developments.Land for Innovation and Technology UseThe Hetao Shenzhen Hong Kong Science and Technology Innovation Co operation Zone63. The Hetao Co-operation Zone is a major co-operation platform for GBA development. It provides unique advantages in areas such as policy innovation, flow of innovation elements and application of R&D projects. We attach great importance to its development.64. The Hong Kong Park will enter into operational phase this year. The first three buildings of Phase 1 are about to complete and the first batch of tenants from life and health technology, AI, data science and other pillar industries will begin to move in this year.65. I have earmarked $3.7 billion to expedite the provision of infrastructure and public facilities of Phase 1 development of the Hong Kong Park. Meanwhile, we will identify suitable land parcels for invitation of private development proposals this year with a view to expediting the development by leveraging market forces. Upon completion of the whole Hong Kong Park, its annual contribution to Hong Kong’s economy is expected to reach $52 billion, and about 52 000 job opportunities will be created.San Tin Technopole66. The San Tin Technopole is an important project for promoting I&T. Twenty hectares of land will be delivered in phases, starting from 2026-27, for development and operation by the HKSTPC. The HKSTPC is carrying out a master planning study, which is expected to be completed in the third quarter of this year.Data Facility Cluster at Sandy Ridge67. We commenced the procedures last year to re-zone a 10 hectare site at Sandy Ridge in the North District for use as data centres. The re-zoning procedures are expected to be completed in the middle of this year. We are actively making preparations for land disposal.Pressing Ahead with Land Development68. Last year, we have commenced three major projects on second phase development for the Hung Shui Kiu/Ha Tsuen New Development Area (NDA), remaining phase development of Kwu Tung North/Fanling North NDA, and the site formation and engineering infrastructure works for the first batch of land in San Tin Technopole. This year, we will start the works of Yuen Long South NDA second phase development, complete the re zoning procedures for a data park site in Sandy Ridge, and finalise land use proposals for Ngau Tam Mei as well as New Territories North New Town and Ma Tso Lung this year for commencing the environmental impact assessments and other statutory procedures. Over the next few years, there will be considerable output in residential units and industrial land in the NM.69. In order to support commercial and innovative development in the NM, we will also identify suitable sites there for constructing facilities to meet various conference and exhibition needs.Railway Development70. The construction works of Phase 1 of the Northern Link (NOL), i.e. Kwu Tung Station, have commenced for target completion in 2027. Advance works for Phase 2 have also commenced to tie in with the target completion of NOL Main Line in 2034.71. In addition, we are working with the Shenzhen authorities to jointly take forward two cross boundary railway projects. The investigation and design study of the Hong Kong Shenzhen Western Rail Link (Hung Shui Kiu-Qianhai) project and the detailed planning and design of the Northern Link Spur Line are expected to commence this year.

MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Asia-Pac: Budget Speech by the Financial Secretary (1)

Source: Hong Kong Government special administrative region

Budget Speech by the Financial Secretary (1)
Budget Speech by the Financial Secretary (1)
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Following is the full text of the Speech on the 2025-26 Budget delivered by the Financial Secretary, Mr Paul Chan, to the Legislative Council today (February 26): Mr President, Honourable Members and fellow citizens, I move that the Appropriation Bill 2025 be read a second time. Introduction 2. The Budget is presented at the halfway stage of the current-term Government. 3. Over the past year, we have seen a number of positive developments in Hong Kong. Our economy has grown for two consecutive years. The employment market has been stable, while inflation remains moderate. Our efforts to attract talent and enterprises have been remarkably successful. The successive staging of large scale international mega events has been coupled with a notable increase in visitor arrivals. And sentiment in the stock market continues to improve alongside a generally buoyant atmosphere across the city. 4. Nevertheless, Hong Kong has also experienced a lot of challenges. The international geopolitical landscape has caused disruptions to trade, supply chain, cash flow and sentiment in the investment market. Local asset prices are contained under a relatively high interest rate environment, whereas the retail and catering markets are still troubled by changes in the consumption pattern of visitors and our residents. 5. While putting Hong Kong’s economic resilience to the test, these challenges signify to us the necessity to reform, innovate and relentlessly improve in the process of economic development. Although the large-scale, counter-cyclical measures launched over the last few years in response to the pandemic have helped us achieve our goal of “supporting enterprises, safeguarding jobs, stabilising the economy and easing the burden on people”, we have experienced fiscal deficits these few years as a result. Last year, revenue related to the asset market was far lower than expected due to a host of internal and external factors, and we continue to record a higher deficit this year. 6. In this Budget, I propose a “reinforced version” of the fiscal consolidation programme, including a cumulative reduction of government recurrent expenditure by seven per cent from now through 2027-28. Strictly containing public expenditure is a must, but we should proceed in a steady and prudent manner and be careful to find a balance among the various impacts that may arise in the process. While laying a sustainable fiscal foundation for future development, this approach represents our all-out effort to minimise the impact on public services and people’s livelihood. It gives us a clear pathway towards the goal of restoring fiscal balance in the Operating Account, in a planned and progressive manner, within the current term of the Government. 7. To seize the opportunities brought about by the rapid advancement of innovation and technology, we must accelerate the development of the Northern Metropolis (NM). It is an investment in our future. Given our prerequisites and capabilities, we can suitably expand the size of bond issuance on the premise of maintaining healthy public finances and use the funds raised in a proper and flexible manner to invest in Hong Kong’s future and create value for our society. 8. In the midst of global changes, technological innovation is our core engine. We must expedite our economic development, in particular boosting new economic driving forces while enhancing the competitive edge of traditional industries at an accelerated pace. Technology reform and artificial intelligence (AI) development are remolding the global landscape, leading to the emergence of new industries, new forms of business, new products and new services. We have to seize the opportunity to make the most out of this critical window to speed up our development, establishing the new before abolishing the old. Transformation and innovation will lead our way into the future, and we are poised to fast-track the high quality development of Hong Kong’s economy. I will elaborate on this a little later. Economic Situation in 2024 9. Last year, Hong Kong’s economy progressed steadily amid a complicated and changing environment. The unstable international geopolitical situation, escalated trade conflicts and elevated global interest rates exerted adverse impact on local economic activities and confidence. Nevertheless, our country’s economy is making steady progress and has rolled out measures benefitting Hong Kong one by one. Together with the Government’s initiatives to boost the economy and interest rate cuts by the US since mid-September, they all provided support to different economic segments in Hong Kong. Hong Kong’s economy recorded moderate growth of 2.5 per cent last year. 10. The International Monetary Fund (IMF) estimated that the global economy grew by 3.2 per cent last year. Supported by the continuing expansion of external demand, Hong Kong’s total exports of goods grew by 4.7 per cent in real terms. 11. As a result of our country’s various measures benefitting Hong Kong, together with a large number of mega events organised throughout the year and the recovery of our air traffic capacity, the number of visitors increased by about 30 per cent to approximately 45 million last year, boosting the travel and transport services. Other cross-boundary economic activities also improved. Total exports of services grew by 4.8 per cent for the year. 12. As the economy grew and the Government took forward infrastructure projects, overall investment expenditure rose by 2.4 per cent. Private consumption expenditure, however, slightly declined by 0.6 per cent for the year, as a result of changes in the consumption pattern of local residents. 13. The labour market remained tight. The latest unemployment rate stayed low at 3.1 per cent. The median monthly employment earnings of full-time employees grew by a solid 4.8 per cent, year-on-year, in the fourth quarter of last year. 14. Inflation was mild in overall terms. Netting out the effects of the Government’s one-off measures, the underlying consumer price inflation rate was 1.1 per cent last year. 15. Sentiment in the asset markets improved during the year, benefitting from a series of measures of the Central Government to support Hong Kong’s capital market, as well as the rate-cut cycle of the US. The stock market saw increases in both prices and turnover volume. The Hang Seng Index rose by 18 per cent for the year, and the average daily turnover increased by 26 per cent. Funds raised by new listings increased to $88 billion. 16. The residential property market continued to adjust in the first three quarters of last year. But it stabilised after the interest rate cuts. For the year, the number of transactions increased by 23 per cent to about 53 000, while property prices fell by seven per cent. The non-residential property market remained stagnant. Economic Outlook for 2025 and the Medium Term 17. The Hong Kong economy still faces a very challenging external environment, but there are quite a few positive factors at the same time. 18. Trade protectionism affects global trade and capital flows, dampens investment and consumer confidence, and weighs on global economic growth. It is encouraging that the Mainland economy continues to grow steadily. Our country’s domestic and international circulation, expansion of high-standard opening-up, global setup of industry chains and supply chains by Mainland enterprises, etc. benefit the steady development of external trade. In addition, the Mainland economy is resilient and has a solid foundation. The Central Government’s implementation of a more proactive fiscal policy and a moderately accommodative monetary policy, along with its efforts to expand domestic demand, add momentum to economic growth. 19. The gradual easing of monetary policies by major central banks should support their economic growth. However, the economic and trade policies of the US have brought uncertainties to the pace of rate cuts this year. The European Central Bank also indicated that it would lower interest rates further if inflation broadly trends towards its target level. According to the IMF’s latest projections, the global economy will grow by 3.3 per cent this year, slightly higher than last year. 20. Against the above backdrop, Hong Kong’s exports are expected to see steady performance this year. Moreover, riding on various policies and good momentum of last year, visitor arrivals should continue to increase. Together with the recovery of other cross-boundary economic activities, these should drive continuing growth in services exports. 21. On domestic demand, investors may be more cautious due to uncertainties in the external environment. However, the expected relaxing of the global financial conditions will bode well for fixed asset investment. After last year’s adjustment, private consumption showed stabilising signs towards the end of the year. A sustained increase in residents’ income and steady development of the asset markets would boost consumption further. 22. Based on the above considerations, we forecast that Hong Kong’s economy will continue to grow moderately this year, rising by two to three per cent in real terms for the year. 23. As for prices, it is expected that domestic cost pressures might increase as the economy continues to grow. External price pressures should remain broadly in check, though geopolitical situation might bring risks. We forecast the underlying inflation rate and headline inflation rate this year to be 1.5 per cent and 1.8 per cent respectively. 24. In the medium term, monetary policy normalisation will help sustain solid growth in the global economy. The “Global South”, in particular the Mainland, will continue to be an important driver of global economic growth. 25. Geopolitics will still bring challenges to Hong Kong’s economy. However, the Mainland is promoting high-quality development through scientific and technological innovation, comprehensively deepening reform, and expanding high-standard opening-up. Hong Kong is also making every effort to promote market diversification and open up new growth areas, and the economy is expected to grow steadily. 26. Under “one country, two systems”, Hong Kong is the only place in the world that combines the global advantage and the China advantage. The current term Government has been vigorously expanding economic capacity and enhancing competitiveness, and achieved considerable results. As long as we actively integrate into our country’s development and proactively align with national development strategies, we will definitely continue to seize new opportunities arising from the economic development of our country and the world, creating a bright future. 27. We forecast that Hong Kong’s economy will grow, on average, by 2.9 per cent a year in real terms from 2026 to 2029. The underlying inflation rate is forecast to be on average 2.5 per cent a year.

Ends/Wednesday, February 26, 2025Issued at HKT 11:13

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MIL OSI Asia Pacific News –

February 27, 2025
MIL-OSI Europe: Answer to a written question – Scarce catches of lampuki ( coryphaena hippurus ) by Maltese and Gozitan fishers – P-000258/2025(ASW)
Source: European Parliament
1. The international joint inspection scheme for the dolphinfish fishery with Fish Aggregating Devices (FAD) is now in force under Recommendation GFCM/46/2023/17[1]. The European Fisheries Control Agency (EFCA) patrol vessel is deployed in the Strait of Sicily before the start of the fishing season of the FAD dolphinfish fishery to deter such cases of non-compliance. While the Commission received reports of unmarked FADs sighted at sea during this period, it has not received sightings of fishing vessels targeting dolphinfish with FADs outside the authorised period from EFCA or from national control authorities. Should the Commission receive such reports from the Maltese authorities, it would ensure thorough assessment.

2. The Commission considers that the current drafting of paragraph 23 of Recommendation GFCM/46/2023/14[2] and Article 82 of Regulation (EU) 2023/2124[3] is sufficiently clear in prohibiting common dolphinfish fisheries using FADs from 1 January to 14 August 2024.

3. The fight against illegal, unreported and unregulated fishing is a key priority of the Commission. In this context, the Commission started last year an ambitious process for strengthening the Compliance Committee (CoC) of the General Fisheries Commission for the Mediterranean (GFCM). This year, the Commission will be pilot testing the compliance tables with all Contracting Parties and Cooperating non-contracting parties (CPCs) aiming to assess the proper implementation of the management measures by all CPCs. In addition, the Commission shares the view that cases of non-compliance detected at sea should be followed up in the CoC. In May 2025, the GFCM intends to organise a dedicated seminar on inspection schemes in Vigo.

[1] https://www.fao.org/gfcm/decisions/en/

[2] https://www.fao.org/gfcm/decisions/en/

[3] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32023R2124
Last updated: 26 February 2025
MIL OSI Europe News –
February 27, 2025
MIL-OSI Europe: Answer to a written question – Infection prevention and action against antimicrobial resistance to meet the UN’s political declaration – E-002833/2024(ASW)
Source: European Parliament

Infection prevention and control (IPC) is a major pillar of the EU efforts to tackle antimicrobial resistance (AMR), given that over 70% of its health impact is linked to healthcare-associated infections (HAI)[1].

The Commission, together with the European Centre for Disease Prevention and Control (ECDC) is working on EU Guidelines for IPC in human health.

Action on IPC is also part of the EU co-funded joint action on AMR with a budget of EUR 62.5 million[2]. In addition, IPC forms an integral part of the prevention, preparedness, and response planning capacities of Member States, pursuant to the regulation on serious cross-border health threats[3].

These capacities, together with capacities on AMR and HAI, are subject to regular ECDC assessments and possible Commission recommendations to support Member State action[4].

The Commission also funds research and development activities through the research and innovation framework programmes[5] and, develops and implements, in close collaboration with Member States, innovative actions to secure the availability and accessibility of antimicrobials and other AMR medical countermeasures.

The proposal for the reform of the pharmaceutical legislation[6] is expected to offer additional opportunities for tackling AMR once adopted.

The 2023 Council Recommendation on stepping up EU actions to combat AMR in a One Health approach[7] sets various targets regarding AMR and human health that go in the same direction as the United Nations political declaration adopted in September 2024[8].

The Commission, together with EU agencies, is closely following Member States’ progress, and regularly exchanges with Member States’ competent authorities on best practices and follow-up actions in the AMR One Health Network.
- [1] https://www.ecdc.europa.eu/sites/default/files/documents/EAAD-infographic-2022.pdf
- [2] EU JAMRAI 2, https://eu-jamrai.eu/prevention-control/
- [3] Regulation (EU) 2022/2371 https://eur-lex.europa.eu/eli/reg/2022/2371/oj
- [4] As per Articles 8 and 9 of Regulation (EU) 2022/2371.
- [5] https://research-and-innovation.ec.europa.eu/research-area/health/antimicrobial-drug-resistance-amr_en
- [6] https://health.ec.europa.eu/medicinal-products/pharmaceutical-strategy-europe/reform-eu-pharmaceutical-legislation_en
- [7] Council Recommendation on stepping up EU actions to combat antimicrobial resistance in a One Health approach C 220, 22.6.2023, p. 1.
- [8] https://www.unep.org/news-and-stories/press-release/world-leaders-commit-decisive-action-antimicrobial-resistance#:~:text=New%20York%2C%2026%20September%202024%20%E2%80%93%20Global%20leaders,reducing%20the%20estimated%204.95%20million%20human%20deaths%20
MIL OSI Europe News –
February 27, 2025
MIL-OSI Europe: Answer to a written question – Burden on low-income earners resulting from rising CO2 prices – E-000025/2025(ASW)
Source: European Parliament

A just transition is a key principle of the implementation of the European Green Deal. The new emissions trading system (ETS) for fuel combustion in buildings, road transport and additional sectors (ETS2)[1] has been designed with important safeguards to start in an orderly, smooth and efficient manner.

ETS2 will complement policies and measures at national and EU level. Action at national level, which is set out in the National Energy and Climate Plans, will also be crucial in delivering the required emission reductions.

A part of the revenues raised by ETS2 will finance the Social Climate Fund[2], which is established to ensure a socially fair transition by addressing impacts on vulnerable groups, especially lower and lower-middle income households and those in energy or transport poverty. Member States are to define the vulnerable groups in their Social Climate Plans.

Together with a minimum 25% national contribution, the Fund will mobilise at least EUR 86.7 billion over 2026-2032. It will fund structural measures and investments in energy efficiency, renewable energy, decarbonisation of heating and cooling and sustainable mobility and transport, including social leasing, public transport, shared mobility and on-demand offers.

Pending the impact of these investments on reducing emissions and energy bills, there will be the option to provide temporary direct income support.

This will come alongside existing funding instruments supporting vulnerable groups, such as Recovery and Resilience Facility and Cohesion Policy Funds.

Member States must spend all remaining national auction revenues on select climate and energy purposes, prioritising social aspects. They could also further top up their contributions to their Social Climate Plans.
- [1] https://eur-lex.europa.eu/eli/dir/2003/87
- [2] https://eur-lex.europa.eu/eli/reg/2023/955
MIL OSI Europe News –
February 27, 2025
MIL-OSI Europe: Answer to a written question – Action to support civil society organisations in Member States – E-002810/2024(ASW)
Source: European Parliament
The Commission supports the key role that independent civil society organisations (CSOs) play for the well-functioning of democracies, by upholding the common values on which the EU is founded, including the rule of law and the protection of fundamental rights[1].

The Commission is working to ensure that CSOs can carry out their activities without undue interference, in an environment where they are protected, supported and empowered.

The Commission has a dedicated policy work strand on a thriving civic space[2], which includes the 2023 Recommendation to Member States on civic engagement[3].

Under the Citizen Equality Rights and Values programme[4], it has supported almost 1 500 civil society organisations in all 27 Member States with a budget of EUR 1.55 billion for the 2021-2027 financial programming period — the biggest amount ever allocated for this purpose.

The Commission will strengthen the engagement and protection of CSOs with all the necessary tools, including with a dedicated Civil Society Strategy, as announced in the 2025 Commission Work Programme.

In this context, the Commission will come forward with a dedicated Civil Society Platform to support more systematic civil dialogue and with actions to enhance the protection of CSOs and human rights defenders under attacks.

The Commission has adopted a directive[5] and a recommendation[6] on protecting persons who engage in public participation from manifestly unfounded claims or abusive court proceedings (‘Strategic lawsuits against public participation’).

The directive entered into force on 6 May 2024 and Member States shall transpose it into national law by 7 May 2026. The Commission is closely following their implementation in the Member States.

[1] See the report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, COM/2022/716 final, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022DC0716

[2] https://commission.europa.eu/aid-development-cooperation-fundamental-rights/your-fundamental-rights-eu/eu-charter-fundamental-rights/application-charter/thriving-civic-space-protect-fundamental-rights_en?prefLang=es

[3] Commission Recommendation (EU) 2023/2836 of 12 December 2023 on promoting the engagement and effective participation of citizens and civil society organisations in public policy-making processes, C/2023/8627.

[4] https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/programmes/cerv

[5] Directive (EU) 2024/1069 of the European Parliament and of the Council of 11 April 2024 on protecting persons who engage in public participation from manifestly unfounded claims or abusive court proceedings (‘Strategic lawsuits against public participation’), https://eur-lex.europa.eu/eli/dir/2024/1069/oj/eng

[6] Commission Recommendation (EU) 2022/758 of 27 April 2022 on protecting journalists and human rights defenders who engage in public participation from manifestly unfounded or abusive court proceedings (‘Strategic lawsuits against public participation’), https://eur-lex.europa.eu/eli/reco/2022/758/oj/eng
Last updated: 26 February 2025
MIL OSI Europe News –
February 27, 2025
MIL-OSI Europe: Answer to a written question – Citizens at risk of poverty or social exclusion – E-000087/2025(ASW)
Source: European Parliament
In line with the Treaties, the primary responsibility for social inclusion policies lies with the Member States. The Commission supports Member States in addressing poverty and social exclusion.

The European Pillar of Social Rights Action Plan proposed an ambitious and realistic EU target to reduce the number of people at risk of poverty or exclusion by at least 15 million by 2030. All Member States have defined national targets relating to this EU headline target.

A number of EU initiatives[1] that directly relate to poverty reduction and their implementation at national level will be key to achieve the EU target. EU funding, including the European Social Fund Plus[2] and the European Regional Development Fund[3], supports social inclusion.

The number of persons at risk of poverty or social exclusion (AROPE) has declined by around 1.6 million in the EU since the reference year of the EU target (from 2019 to 2023), with a rate of 21.4% of the population in 2023.

Trends in the Member States have been heterogenous with some increases in some Member States and declines in others. This also shows that the policies put in place by the Member States and the EU in recent years have been mitigating to a large extent the negative social impacts of the pandemic, Russia’s war of aggression against Ukraine as well as by the high energy prices and increases in the costs of living.

Looking forward, the target remains within reach, but this will require further substantial efforts. T he Political Guidelines 2024-2029[4] announced a new action plan for implementing the European Pillar of Social Rights and the first-ever EU anti-poverty strategy, which will aim to help people to get access to the essential protections and services they need, along with addressing the root causes of poverty.

[1] European Child Guarantee, Council Recommendation (EU) 2021/1004 of 14 June 2021 — https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021H1004
Directive on adequate minimum wages, Directive (EU) 2022/2041 — https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32022L2041
Council Recommendation on adequate minimum income ensuring active inclusion, Council Recommendation (EU) 2023/C 41/01 of 30 January 2023 — https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023H0203%2801%29
European Platform on Combating Homelessness, Lisbon Declaration on the European Platform on Combatting Homelessness of 21 June 2021
Council Recommendation on Access to social protection, Council Recommendation (2019/C 387/01) of 8 November 2019 — https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32019H1115%2801%29
Commission Communication on the European care strategy COM/2022/440 final — https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52022DC0440
Commission Communication on better assessing the distributional impact of Member States’ policies, COM(2022) 494 final — https://eur-lex.europa.eu/legal-content/en/ALL/?uri=CELEX%3A52022DC0494

[2] European Social Fund Plus — Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013 — https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R1057

[3] Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund — https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R1058

[4] https://commission.europa.eu/document/download/e6cd4328-673c-4e7a-8683-f63ffb2cf648_en?filename=Political%20Guidelines%202024-2029_EN.pdf
Last updated: 26 February 2025
MIL OSI Europe News –
February 27, 2025