Merging of government agencies proposed to curb costs

The Hong Kong General Chamber of Commerce has suggested that the government consider merging agencies, such as the Office for Attracting Strategic Enterprises and InvestHK, to reduce spending amid a fiscal deficit, instead of raising taxes, according to a statement released on Tuesday.

The chamber is calling on the government to merge agencies with overlapping responsibilities into a single department as civil servant salary expenditure accounted for about 26 percent of the city’s recurrent expenses in the fiscal year 2023-24.

It also said that the government should refrain from raising profits and salary taxes to alleviate further pressure on businesses, given the current economic headwinds.

But the chamber did not support salary cuts for civil servants to reduce expenditure as this could have a ripple effect on the private sector, chairman Agnes Chan Sui-kuen said.

The chamber, on the other hand, recommends that the government consider offering long-term fixed-rate mortgage loans to help small and medium-sized enterprises as the city continues to face challenges from structural shifts, weak global demand, and geopolitical uncertainties.

STAFF REPORTER