Budget 2023/24
2023-24 Budget: Tourism industry calls for sufficient financial support to revitalise businesses
- 2023-02-24
- Society
- By: Man TSEEdited by: Bella Ding、Zimo ZHONG、Yuchen LI
- 2023-02-24
Hong Kong is set to spend HK$350 million in organizing international events to attract tourists and offers fully guaranteed loans to revive tourism businesses. The funds are primarily for promoting major tourism events, including the first-ever Hong Kong Pop Culture Festival and the Hong Kong Wine and Dine Festival, Financial Secretary Paul Chan Mo-po said on Wednesday. The Hong Kong Tourism Board will spend another HK$200 million hosting more international meetings, incentive travels, conventions and exhibitions in the fields of finance, innovation and technology and medicine. “Hong Kong has long been a world‑renowned events capital. Organisation of mega events, international conferences and exhibitions is especially crucial to drawing high value-added visitors,” Chan said. This is the first Budget under the current-term government’s administration and after the resumption of quarantine-free travel with the Mainland and the international community. Hello Hong Kong campaign, launched on Feb. 2, will distribute 500,000 free air tickets and various cash vouchers to attract worldwide tourists. Li Wai-pong, the operation manager of Hong Kong Travel Bus Company said that Hong Kong may not have the capacity to cater for visitors due to the labour and resource shortage in the tourism industry. “It will cost me around HK$90,000 each bus to repair the travel buses before operation,” said Li, “No transport operator could afford it without the financial help from the government, especially after a three-year business suspension.” The government announced the fully guaranteed loans worthing HK$2.7 billion for transport operators and travel agents on Wednesday, to support cross-boundary passenger transport and the tourism industry. Li said that this scheme’s effectiveness in supporting companies’ reopening is limited, since many companies can no longer afford new debts. The deficiency of manpower also exists among travel agencies. “Only 10% of our leaving bus drivers are willing to come back to …
New round of consumption vouchers and increased football betting tax centre Budget 2023’s discussion
- 2023-02-23
- Society
- By: Nga Ying LAUEdited by: Le Ha NGUYEN、Mei Ching LEE
- 2023-02-23
Hong Kong Financial Secretary Paul Chan Mo-po released the budget speech for fiscal 2023-24, the first under the administration of Chief Executive John Lee Ka-chiu, on Wednesday with major public concern surrounding the fresh round of consumption vouchers and raising the football betting duty of Hong Kong Jockey Club amid the government’s deficit. Eligible citizens will receive HK$5,000 electronic consumption vouchers in two instalments, HK$3,000 in April and the remaining in the middle of the year. The amount of consumption vouchers is reduced from HK$10,000 due to an expected deficit of HK$140 billion in the financial year 2022-23, said Chan. “HK$5,000 is the best we can do,” said Chan when asked why the amount of this year’s consumption voucher was lower than last year's during a press conference on Wednesday afternoon. Non-permanent residents who have come to Hong Kong through different admission schemes or to study will receive vouchers in half value, i.e. HK$2,500 in total. But whether inbound persons admitted recently to the Top Talent Pass Scheme with rich work experience and good academic qualifications are eligible to receive the vouchers is yet to be confirmed. The budget also introduced the annual special football betting duty of HK$2.4 billion on the Hong Kong Jockey Club (HKJC) for 5 years starting from 2023/24, a cumulative total of HK$12 billion. HKJC, a local non-profit unit providing horse racing, sporting and betting entertainment, slammed the policy in its latest statement, saying that “any permanent hike in betting duty rates will irreversibly create structural problems, which will only benefit illegal and offshore betting operators. The soccer betting duty was originally set at the rate of 50% of gross profit. According to HKJC, even the original rate is already the highest in the world. “Most importantly, such increase will adversely impact the Club’s ability …
Key takeaways of 2023-2024 Budget
- 2023-02-23
- Politics
- By: Bella Ding、Yixin Gao、Kin Hou POONEdited by: Bella Ding
- 2023-02-23
Paul Chan Mo-po, the Financial Secretary of Hong Kong, delivered the 2023-2024 Budget speech on Wednesday, announcing policies to support the economic recovery of the city while considering the financial affordability of the government. Here are the key takeaways you should know about this year’s budget plan.
2023-24 Budget: Government lowers decade-old ad valorem stamp duty for ordinary first-home buyers
- 2023-02-23
- Society
- By: Yuhe WANGEdited by: Bella Ding、Jiaxing Li、Rex Cheuk
- 2023-02-23
The Hong Kong government announced the adjustment in the value band of ad valorem stamp duty to relieve the burden on ordinary families to purchase residential houses. Under the updated tax band, the threshold for the HK$100 stamp duty will increase from HK$2 million to HK$3 million while the stamp duty for houses worth between HK$6.6 million and HK$9 million will decrease from 3.75% to 3%. Only first-time ordinary buyers could be benefited. “It is anticipated that this measure will benefit 37,000 buyers,” said Paul Chan Mo-po, the Financial Secretary of Hong Kong. Chong Tai-leung, an economics professor at the Chinese University of Hong Kong, said that the new policy would improve the environment of the property market in 2023. The government announced the detainment of 12 residential sites for the 2023/24 land sale programme, providing more purchasing opportunities. However, Chong said the hundred-dollar stamp duty is only for units under HK$3 million, while the stamp duty rate for flats over HK$10 million remains unchanged. “The policy may only stimulate the property market under HK$3 million, which are usually the nano flats and remote village houses,” said Chong. Starter Homes Pilot Scheme for Hong Kong Residents, included in the 2020-2021 Budget, intends to relieve the house-purchasing burden of ordinary families, mainly by providing low-price flats. Kenneth Chiu Hung-wan, the regional sales director of Centaline Property Agency Limited said the demand for starter homes will show gradual growth this year under the adjusted stamp duty policy. Chiu expects the local property market will rebound by 5% to 10% this year after the city’s finance Chief announced a 15% decline in flat prices last year. The current demand-side management measures for residential properties, curbing external demand and reducing investment demand, remain unchanged. The Hong Kong Authorities announced the full border reopening starting …
2023-24 Budget: Hong Kong government distribute consumption vouchers to consolidate economic recovery
- 2023-02-23
- Business
- By: Ho Yi CHEUNGEdited by: Bella Ding、Lok Yi CHU
- 2023-02-23
The government announced a "moderately liberal" fiscal stance in the following financial year, issuing consumption vouchers to promote private consumption and stimulate economic growth during the post-pandemic era. Hong Kong permanent residents and new arrivals aged 18 or above, as the first section, will receive HK$5,000 electronic consumption vouchers, half of the amount received last year, while persons who live and study in Hong Kong through admission schemes as the second section will receive the voucher at half value. "As economic activity regains momentum and after considering the fiscal deficit, we will continue the consumer voucher scheme to support the retail industry and consolidate the economic recovery,” said Paul Chan Mo-po, the Financial Secretary of Hong Kong at the press conference. The government has implemented the consumption voucher scheme with HK$5,000 and HK$10,000 to over 6 million eligible citizens of the first category respectively to boost domestic consumption in the last two years. Hong Kong’s private consumption expenditure in the fourth quarter of 2022 reached HK$514.3 billion with a year-on-year increase of 1.9%, according to the Census and Statistics Department. Leung Chak-tim, the owner of Quarter Bar, expected that consumer vouchers cannot stimulate the business of the food and beverage sector as his bar has similar figures on revenue before and after the distribution of vouchers. “There are more policies as barriers stifling revenue growth during COVID-19, like social distancing,” said Leung. The volume index of retail sales for food, alcoholic drinks and tobacco recorded an overall decline of 4.2% in 2022, according to the Census and Statistics Department. “Rental expenditure is 30% of our total cost. If we are unable to increase the revenue, we prefer the government to implement subsidies for restaurants and shops as a way to cut costs,” added Leung. Tsang Mei-kuen, a housewife, said …
Budget 2023: Light public housing remains controversial
- 2023-02-22
- Society
- The Young Reporter
- By: Juncong SHUAI、Yuqi CHUEdited by: Chengqi MO
- 2023-02-22
A few steps from the Kai Tak MTR station, an extensive but barren ground is enclosed by barbed wire, incongruent with the surrounding high-rise residences and shopping malls. The land is earmarked for the construction of light public housing. As one of eight sites designated by the government, Kai Tak is expected to provide 10,700 units for people waiting for more long-term public housing. “It’s hard to imagine over 10,000 people will flood into this area in the future. I’m afraid it’ll be a mess at that time,” said Alex Tsang, a resident living in the Kai Tak neighbourhood for three years. Anger spread among Kai Tak residents once the site selection for light public housing was announced in January. In today’s budget address, Financial Secretary Paul Chan Mo-po said the government is committed to the construction of 30,000 flats by 2027. “I can understand the government's intention to build light public housing, but the site selection is wrong,” said Tsang. “Kai Tak should be a part of the CBD , but the temporary housing scheme will last seven years, nobody knows what will happen in the future.” The Light Public Housing scheme proposed by Chief Executive John Lee in his maiden policy address last year aims to give a better living environment to people waiting for permanent public houses. “As the supply of housing land is not evenly distributed across each year, and land creation takes time, there is still a shortage of land ready for public housing development in the short run,” said Chan in today’s budget speech. The first batch of housing is expected to cost HK$14.9 billion. Building light public housing costs 25% more than public rental housing, according to Liber Research Community, an independent think tank in Hong Kong. “Some light public housing is planned …
Budget 2023: Government allocates HK$7 billion to greener city efforts
- 2023-02-22
- Health & Environment
- By: James Ezekiel Kalaw MODESTOEdited by: Mollie Hib
- 2023-02-22
Hong Kong Financial Secretary Paul Chan Mo-po announced HK$7 billion towards building a greener Hong Kong this morning. The environmental proposals include a focus on decarbonisation, electric vehicles, food waste and countryside conservation. The Green City project, introduced in last year’s budget, will further be developed by continuing the city’s mission to be carbon neutral by 2050. Chan said that the government aims to reduce Hong Kong’s carbon emissions by 50% before 2035. The government will also form the Council for Carbon Neutrality and Sustainable Development to advise on decarbonisation strategies, Chan said. Chan said that the government will continue “building a liveable city” through additional plans, like introducing electric transportation, enlarging the scope of food waste collection points and funding countryside conservation and revitalisation projects. However, despite this year’s proposals by the government, some environmentalists remain critical of the plans. Hong Kong Biodiversity Museum Director, Benoit Guenard, 42, said that stimulating people’s interest in being environmentally conscious is important to get individuals more involved in protecting the environment. Guenard also said that the government should allocate more funding towards developing institutions, such as public museums. “I think it’s a pity that Hong Kong has not reached that level of realising how valuable these kinds of institutions are,” he said. The museum director said that government funding towards the HKBM only occurred two years ago since its opening in 2014 in Pok Fu Lam. ”It is important to let people foster an understanding of being environmentally aware,” said Stephen Ng Chung-on, 64, senior manager of Jockey Club Museum of Climate Change. “Public education is always the key to improving people’s understanding of many things,” said Ng. “It can be easy to propose and make projects because the government has the capability. But the people must also grasp what is the …
Budget 2023: Hong Kong introduces new investment entrant scheme to attract talent
- 2023-02-22
- Society
- By: Junzhe JIANG、Yuhan WANG、Xiya RUIEdited by: Kei Tung LAM
- 2023-02-22
Hong Kong’s Financial Secretary, Paul Chan Mo-po plans to attract capital investors to settle in Hong Kong. The Hong Kong government will introduce the Capital Investment Entrant Scheme, said Chan in his budget speech this morning. Applicants who invest HK$10 million in Hong Kong’s asset market are eligible to apply for the scheme, but investing in property is excluded, Chan said. The Hong Kong government will establish a new committee to promote the policy and assist the applicants to start and expand their business in Hong Kong. According to IMD World Talent Ranking 2021, Hong Kong dropped from 18th to 26th in attracting and retaining talent, while Singapore rose to 15th. The scheme may have little impact to attract investors because Hong Kong lacks competition, compared to other popular immigration countries, Chung Man-kit, an economics professor from Hong Kong Baptist University, said. “Many people believe Singapore is the greatest alternative for immigration rather than Hong Kong because of the suspension of the previous investment immigration program,” Liu Yajun, 43, a former human resources director from the mainland who plans to migrate to Hong Kong through the Capital Investment Entrant Scheme. Liu plans to invest HK$ 10 million to purchase financial products in Hong Kong. However, Liu said she may not spend a lot of time in Hong Kong. “I may migrate to the UK after obtaining Hong Kong permanent residence,” Liu said. “Not only me, but most of my friends also use Hong Kong's investment scheme as a springboard to apply for foreign status,” Liu added. According to the Census and Statistics Department, Hong Kong has lost around 140,000 workers in the past two years. Chung, the economics professor, said Hong Kong has big drain because of lack of local development. Chung said the Hong Kong government should learn lessons …
Hong Kong to invest in IT-education in bid to attract young talent
- 2023-02-22
- By: Elif Lale AYHANEdited by: Ming Min AW YONG
- 2023-02-22
Financial Secretary Paul Chan Mo-po announced in his budget speech today that HK$300 million would be provided to public secondary schools to continue subsidies for IT extracurricular activities. There has little increase in innovation and technology employment, from 41,580 employed in the field in 2018 to 46,730 in 2021, according to the Census and Statistics Department. Tommy Kwan, a secondary school teacher at YMCA of Hong Kong Christian College, said his school has recently introduced STEAM education, a concept that the government promoted last year to include art subjects that give more exposure to other aspects of technology, like AI art. ‘‘In our first semester, we taught 3D printing with some introduction to AI. The students enjoyed learning something new,’ he said. Kwan said that STEAM activities introduce new concepts to learning. ‘‘It’s not about textbooks or exams, it’s about exposure to new technology -- how to learn, how to create,’’ he said. “The limitation is that STEAM education is now only an activity and an extracurricular activity. But eventually, if one day our school incorporates STEAM education in classes, I think it will be a celebration,’’ he added. Shirley Tang, the business administration manager of Functioneight, an IT company in Hong Kong, attributes the lack of IT talent to low salaries. ‘‘The struggle is not because people are migrating to other places, it is because people are not willing to work for a low level of duty like troubleshooting,” she said. According to Statista, there was a 0.7% decrease in IT talents in Hong Kong, from about 126,000 in 2019 to 125,000 in 2020. Some university students, such as Tanya Asnani, 19, student at HKUST, are hopeful that monetary funding can pave the way for more opportunities for IT talent through internships and volunteering. “I think money can be …
Budget Plan 2023: health care spending reduced; no more free COVID tests
- 2023-02-22
- Health & Environment
- By: Yiyang LI、Hanzhi YANGEdited by: Tsz Yin HO
- 2023-02-22
Financial Secretary Paul Chan Mo-po will cut the health care expenditure amid the easing of COVID-19 regulations and an overall financial deficit. The Hong Kong government will lower the healthcare budget to HK$104.4 billion, nearly 35% less than last year, still accounting for 19% of government spending. The funding will be mainly used to improve public medical services, such as temporary cancer services, along with building more beds and operating rooms for public hospitals. As the government has dropped all COVID policies, including mandatory PCR test requirements, free testing services will be cancelled from March.1. Only paid testing services will remain. “Very few people come for tests and our workload is much lighter,” said Tong Man-fa, 37, who works for a community testing centre in Yau Ma Tei. A paid test costs HK$240 for express service and HK$150 for standard service; the government has covered these costs since they began. “I think it’s time to shut down this place, and I return to my department,” Tong added. “The decrease in spending is a reasonable move,” said Dr Ada Fong, a doctor of Internal Medicine at Kwong Wah Hospital. She said the number of hospital admissions last year was significantly higher than this year and most of those patients were seeking COVID treatment. “Despite the reduction in spending, the quality of overall medical service should still remain,” Fong said. Chan also said in the budget that the government will invest more in strengthening televisual diagnosis to lower the queuing time. Dr Fong said that it may not be very effective as most diseases require physical checks and hospital care. “I don’t feel it’s more useful than hiring more medical staff,” Fong said.