On October 16, Hong Kong’s Chief Executive John Lee delivered his policy address, the annual blueprint that outlines the government’s plans for the next year or so. His two-and-a-half-hour speech was Lee’s third and shortest policy address of his tenure, but he still managed to cover a lot of ground regarding the economy, tax adjustments, future land development, education plans, housing schemes, tourism boosts, and more. Read on for some of the highlights of Hong Kong’s 2024 policy address.
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Hong Kong has one of the highest alcohol duties in Asia, but Lee announced that from today onwards, liquor with an import price of over $200 will have the duty reduced from 100 percent to 10 percent for the portion above $200. Meanwhile, tax duties for liquor with an import price of $200 or below will remain unchanged.
It’s always been notoriously difficult to become a homeowner in Hong Kong, even with government schemes in place, which have been plagued with increasingly long waiting lists over the years. To help the younger generation get on the property ladder, Lee announced the Housing Authority will allocate an extra ballot number to young family applicants and one-person applicants aged below 40 who wish to purchase subsidised flats under the Home Ownership Scheme. Those applying with the ‘white form’ – signifying the applicant is not living in public rental flats and fulfil asset and income requirements – will have a higher chance of buying subsidised housing.
Furthermore, the quota for subsidised homes in the second-hand market will increase by 1,500 slots, dedicated to young family and one-person applicants aged under 40. The ratio of public rental flats to subsidised homes will also be changed from 7:3 to 6:4 in the next few years, so Hongkongers’ chances of purchasing subsidised housing is higher. Applicants who fail to win the ballot in the last two sales will be given an extra ballot in the next one.
Hong Kong’s subdivided flats can be shoebox nightmares, and Lee has announced stricter regulations on these accommodations. Owners must ensure that these basic housing units meet legal requirements, such as having windows, toilets, and a minimum size of 86 sq ft, or face criminal charges. Tenants of subdivided housing will not be subjected to these penalties.
Following commendable performances of our city’s athletes in the recent Olympics and Paralympic Games, the government is looking forward to positioning Hong Kong as an attractive destination for international sporting activities. Aside from the upcoming completion of the Kai Tak Sports Park, Lee said there are more sports venues in the works, such as a swimming complex for international competitions and a similar arena for fencing.
The government will further develop elite athletes and coaches by reviewing athletes’ financial support and exploring a standardised accreditation for coaches.
The Culture, Sports, and Tourism Bureau will present the tourism blueprint later this year, but for now, we are told that measures include promoting more of Hong Kong’s countryside, coastal, and rural areas. For example, the site of the old quarry on Lamma Island will be developed into a resort and outdoor recreation area, and the development of the South Lantau eco-recreation corridor will be accelerated.
Yacht tourism is also a possibility in the Aberdeen typhoon shelter, the old Lamma quarry site, and the coastal area off Hung Hom station. The quota restrictions on daily visitors to the Sha Tau Kok border town will also be relaxed. In other news, Lee also announced that Hong Kong will launch measures designed to attract more tourists from the Middle East.
Under the New Energy Transport Fund, approximately $750 million will go towards subsisting taxis and franchised bus companies to purchase electric vehicles. Trials for hydrogen fuel cells in electric heavy vehicles will also be subsidised. Furthermore, the government will set a target for sustainable aviation fuel consumption, and as well as develop supply chains for green maritime fuel, promoting the increased usage of low-carbon hydrogen energy instead.
The project for the Kau Yi Chau artificial islands is underway, and will undergo assessment for environmental impact by the end of this year, with the government aiming to complete approval by next year, Lee says. The plan is to spend $580 billion to reclaim and develop the land west of Victoria Harbour into three islands, which will become a logistics hub and house approximately half a million people in 210,000 flats.
The government has a huge project in the pipeline to develop 30,000 hectares of land close to the New Territories’ border with mainland China. The plan is to turn this into a housing and economic hub, and Lee now expands that 80 hectares have been earmarked for a university town, with a development conceptual framework to be unveiled in the first half of 2026.
See the details of Lee’s policy address on the official government website.
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