'Boundless opportunities,' fiscal discipline in budget

Ayra Wang and Jamie Liu

The budget to be released on Wednesday will feature a turquoise blue cover symbolizing "boundless opportunities in the ocean," according to Financial Secretary Paul Chan Mo-po.

It will prioritize a strengthened fiscal consolidation strategy to address deficits exacerbated by global economic challenges and domestic pressures, Chan said on his blog.

Key measures will include stricter oversight of public expenditures, optimization of services for residents, and exploration of moderate revenue-generating options that align with the user-pays principle while enhancing Hong Kong's competitiveness.

Chan emphasized the need to leverage public resources, market forces and national support to drive growth in emerging industries, particularly in technology sectors.

"Seizing opportunities from technological breakthroughs will upgrade traditional industries, unlock new economic growth engines and inject sustainable momentum into the economy," he said.

The turquoise blue cover reflects confidence in Hong Kong's potential for high-quality development and resilience amid challenges, likening the city's journey to "a vibrant lake thriving with life despite occasional storms."

Chan reiterated that support from Beijing and collaboration with local stakeholders are vital pillars of confidence for Hong Kong as he urged adaptability to reforms and the pursuit of "first-mover advantages" in response to global shifts.

Executive councillor Jeffrey Lam Kin-fung, meanwhile, called for greater flexibility and efficiency in government policies to facilitate foreign investments. In a television interview, Lam, a lawmaker, expressed confidence that the government could reduce the deficit and balance its budget within two to three years if the city attracts more foreign investments and enterprises.

But he cautioned that rigidity in policymaking could undermine Hong Kong's competitiveness, potentially driving investors to other economies like Singapore.

"If you are slow in everything, they will leave and go to Singapore instead," Lam said.

To address this, he suggested the implementation of tax concessions for overseas businesses.

On the potential impact of US President Donald Trump's policies, Lam remained optimistic. He said: "Wherever there are crises, there are also opportunities."

Lam identified potential business opportunities in markets within the Association of Southeast Asian Nations and the Middle East, adding that many European countries view Hong Kong as a gateway to the mainland market.

Lam also said the Hong Kong General Chamber of Commerce plans to visit the United States in late April - a development that is being well-received by their American counterparts.

Regarding Northern Metropolis, Lam, representing the commercial (first) constituency, reiterated the sector's support for the project. He urged the government to adopt a more flexible approach to land sale policies, including restoring the application-based land sale mechanism abolished in 2018.