The Food and Environmental Hygiene Department plans to adopt a single-operator model for new public markets, with expressions of interest to be invited from the industry in the third quarter of this year.
The government will pilot the new arrangement at upcoming public markets, including those in Area 67 in Tseung Kwan O and the Kwu Tung North New Development Area.
Depending on the response, a tender will be launched next year for the new public market in Tin Shui Wai.
In a document submitted to the Legislative Council, the Environment and Ecology Bureau said the retail landscape for fresh food had changed significantly in recent years.
It noted that the emergence of different market formats, along with more Hong Kong residents shopping across the border, had given consumers more choices.
The bureau said public markets currently managed directly by the department face various administrative constraints in selecting tenants, adjusting rents and terminating tenancies.
Despite the department’s efforts to improve competitiveness, the overall vibrancy and occupancy rates of public markets have continued to decline. Financial records show that public markets recorded an operating deficit of about HK$700 million in the 2024-25 financial year.
The bureau said public market policies must keep pace with changing needs, embrace innovation and ensure the prudent use of public funds.
It added that neighboring mainland cities have long adopted a market-driven approach, under which the government focuses on regulation while private enterprises handle management.
Under a single-operator leasing model, operators would be able to plan and adjust the trade mix and layout according to market demand. The bureau said price levels in such markets were similar to those in traditional public markets.
