Agnes Chan pushes against consumption vouchers and calls for events and AI to revive retail

The upcoming Policy Address, set to be delivered next Wednesday, has sparked discussion, with the Hong Kong General Chamber of Commerce (HKGCC) chairwoman Agnes Chan Sui-kuen expressing reservations about the government issuing further consumption vouchers. She argued that, given the current fiscal situation, such measures are not a sustainable way to boost long-term consumer spending.

Chan highlighted a positive outlook for the city’s economy, noting its steady improvement, with the Chamber maintaining its forecast of 2.3 percent economic growth for the year. 

However, she pointed out that July’s retail sales growth of 1.8% fell short of expectations, attributing the dip to a slower-than-anticipated rise in inbound tourists and a continued trend of Hong Kong residents traveling north. 

To counter this, she suggested the government explore new initiatives, such as hosting more international events like concerts, sports activities, and outdoor events appealing to younger audiences, while also easing regulations on pet-friendly dining options. 

She encouraged retailers to innovate by leveraging artificial intelligence to enhance consumer experiences and boost appeal.

Chan also called for government action to strengthen Hong Kong’s status as an international hub by promoting a headquarters economy. 

She proposed tax incentives for eligible businesses and prioritized efforts to attract companies that have relocated from the city—such as those in the shipping industry—back to Hong Kong.

Additionally, she advised against continuing 100 percent special loan schemes for small and medium enterprises due to their high default rates. Instead, she advocated for extending the SME Financing Guarantee Scheme, which has a lower default rate, until 2027.